Given for FCCMA October 24, 2012 By George Forbes City Manager-City of Jacksonville Beach

Transcription

1 Given for FCCMA October 24, 2012 By George Forbes City Manager-City of Jacksonville Beach

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3 Dumpster presentation

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5 When developing informed consent, make sure every Potentially Affected Interest (PAI) understands: 1. There is a serious problem (or opportunity) that just HAS TO BE addressed. 2. You are the right entity to address the problem; that given your responsibility, it would be irresponsible for you not to address it. 3. The way you are going about it is Reasonable, Sensible, Responsible. 4. You are listening; you do care. If you propose a course of action that will hurt a PAI, it s not because you don t care, it s not because you aren t listening.

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9 Public Safety Environmental Protection Quality of Life Goals I want to feel safe from crime and fire and have good emergency management services I want to live in a community that protects my health by providing safe water to drink, reliable garbage collection and clean waterways through the treatment of stormwater and wastewater, while preserving the environment for future generations City Services Supporting the Goal Police, Fire, Building Inspection, Ocean Rescue Water, Stormwater, Wastewater, Sanitation Sense of Community Sense of Place and Neighborhood Vitality Responsible Government Reliable Electricity I want to live in a community that provides parks, open space and recreational opportunities for all ages that give us a sense of community I want to live in a City of vibrant neighborhoods that are clean, safe, encourage a sense of place and preserve property values I want a fiscally responsible government that maximizes the use of public funds and provides great customer service I want to live in a city that delivers reliable energy services while encouraging conservation and environmental responsibility with service that is above and beyond the expected Parks & Recreation, Special Events, Golf Course Planning & Development, Code Enforcement, Streets, Redevelopment Manager, Finance, Legal, City Clerk, Information Systems, Human Resources Beaches Energy Services 9

10 Florida ranked #5 in top ten State Business Tax Climates Index - The Tax Foundation, January 2012 State economists reduce 2012 property tax value projections The Current, New Port Richey proposes to slash 10 percent from budget Tampa Bay Times Daytona leaders ready to plug $8.7M budget deficit with layoffs, service cuts Daytona Beach News-Journal Projected budget shortfall could mean raised taxes, service cuts for Pinellas Tampa Bay Times, St. Petersburg looks to plug $12 million deficit with fewer workers, services and more fees St. Petersburg Times

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12 Declining revenue Upward expenditure pressure-health insurance, pensions Decrease of cash or budgetary surplus Increasing debt Growth of unfunded liabilities Deferred maintenance of plant/infrastructure assets Adverse economic conditions Increase in regulatory requirements 13

13 Labor costs: wages, pensions and health insurance Keeping well-trained and highly motivated workforce Revenue limitations due to the economy or legislation Cost of providing services to a large number of visitors: police & lifeguards, beach and streets cleanup, traffic and crowd control Cost of infrastructure maintenance & replacement Hurricanes or major catastrophes Intergovernmental constraints (next slide) 14

14 Federal and State regulations for Electric, Water, Sewer and Stormwater will further increase costs Revenue limits and unfunded mandates imposed by State State legislation increasing homestead exemptions Additional limits on property taxes-amendment 4 Communications Services Tax Effect of State law on pension costs Interlocal agreements 15

15 What we ve done so far 17

16 Eliminated 28 full-time positions since 2008 Reduced hours Eliminated pay plan step increases Reduced overtime Worked with health insurer and employees to keep costs down 18

17 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- $109.3M $48.3M Cut outstanding debt in half since 2001 Refinanced existing debt to get lowest possible interest rates Stick to a pay-as-you-go project policy (excludes Redevelopment) 20

18 Rolled-back millage rate for property tax Adopted millage rate = $ Overtime decreases = $119K Pension increases = $500K City health insurance cost increases = $0 Low natural gas prices will yield a $2.3M decrease in power costs resulting in lower utility bills for customers 21

19 $170K reduction in wages $100K decrease in Fire Dept. overtime Police decrease in operating costs = $49K Reduction in Tennis Center staff (saves $50K) Fireworks, Mother s Day concert and one movie eliminated (saves about $50K) 22

20 City s primary operating fund 23

21 City s primary operating fund Primary revenue source: property taxes (42%) Primary expense: police and fire (64%) Your property taxes help pay for: Police Services Fire/First Responder Services Street Maintenance Parks & Recreation Planning, Building Inspection and Code Enforcement Services 24

22 $25,000,000 $20,000,000 $19,411,582 $17,790,542 $15,000,000 $10,000,000 $5,000,000 $0 25

23 Transfers, 4,209,564, 24% Interest and other, 282,500, 1% From other govts., 3,537,277, 20% Permits, fines and charges for services, 876,650, 5% Ad valorem taxes, 7,324,271, 41% Communications taxes, 1,560,280, 9% 26

24 St. Augustine $ Daytona Beach $ Lake Worth Statewide average* $ Fernandina Beach Ft. Walton Beach Jacksonville Beach $ New Smyrna Beach Neptune Beach Atlantic Beach $ $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 *Calculated as statewide total taxes levied divided by total statewide taxable value 27

25 City of Jacksonville 33% City of Jacksonville Beach 21% Inland Navigation 0% Water Management District 2% Duval County School Board 44% 28

26 FY2013 Millage Rates FY2013 Estimated Tax* $ City of Jacksonville Beach $563 $ Inland Navigation $5 $ Duval County School Board $1,235 $ Water Management District $46 $ City of Jacksonville $927 $ TOTAL $2,776 *Zillow, median home price of $187,500 for zip code at January 1, 2012; Includes a homestead exemption of $50,000 ($25,000 for schools). 29

27 Millage Rate Median Value* Yearly Taxes** Average Monthly Cost Monthly Reduction Annual Reduction 2012 adopted rate $ $198,600 $ $ Proposed rate $ $ $48.38 ($2.33) ($27.86) 2013 Alternate rate = current rate $187,500 $ $ $46.92 ($3.79) ($45.45) Total decrease in General Fund taxable value: $68,317,122 *Zillow, median home prices for zip code at January 1 of 2011 and 2012 **Includes a homestead exemption of $50,

28 Police & Fire 64% Planning, Bldg Maint, Bldg Inspect., Code Enforcement, Nondept. 16% Parks & Recreation 12% Roads & Streets 8% 31

29 100% 90% 80% 70% 60% 50% 40% $1,755,215 $54.86 $4.57 $1,485,256 $46.43 $3.87 $2,208,438 $69.03 $5.75 $1,093,556 $34.18 $2.85 $3,430,020 $ $8.93 Planning, Bldg. Inspection, Code Enforce., Bldg. Maint. Streets Parks Administration 30% 20% $8,039,962 $ $20.94 Fire 10% 0% City, yearly: $18,012,447 Homeowner, Yearly: $563 Homeowner, Monthly: $47.92 Police 32

30 $25,000,000 $20,000,000 $15,000,000 $18,706,308 $16,288,113 $18,012,447 $10,000,000 $5,000,000 $ Original Budget Inflation Adjusted Budget 33

31 $8,400,000 $8,200,000 $8,039,962 $8,000,000 $7,800,000 $7,600,000 $7,687,489 $7,400,000 $7,200,000 $7,000,000 $7,478,430 $7,324,271 $6,800, Police Property Taxes For property taxes to pay for the cost of police services would require a millage rate of $

32 Department 2013 % of Total Police & Fire % Streets 16 9% Parks (excludes 12 7% lifeguards) All Others 22 13% TOTAL

33 $14,000,000 $12,000,000 $10,000,000 $10,721,161 $11,469,996 $8,000,000 $6,000,000 $7,985,147 $6,542,451 $4,000,000 $2,000,000 $ Police & Fire All Other Depts. 64 cents of every General Fund revenue dollar is used to provide public safety services. 36

34 2,500,000 $2,280,658 2,000,000 1,500,000 $1,225,208 1,000, , Life, Health & Dental Insurance-All Funds 37

35 $3,000,000 $2,500,000 City Pension Contribution-All Funds $2,655,502 $2,000,000 $1,500,000 $1,000,000 $500,000 $176,967 $ The City s 2013 pension contribution will increase by 24%. 38

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37 Focus: Projects/partnerships to rejuvenate/develop Downtown and South Beach; Downtown Community Policing Initiative added in

38 BEFORE: AFTER: Downtown Core Circa 1967 Downtown Core Circa

39 BEFORE: AFTER: South Beach as it appeared in the late 1980 s - Rip Tide and South Beach Regional Shopping Center under construction. South Beach as it appeared in 2008 the Perry property at the NW corner of South Beach Parkway and JTB is the last undeveloped parcel. 42

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41 Operations paid for by user charges: Beaches Energy Services Natural Gas Water & Sewer Stormwater Garbage Golf Course Lease Facilities Intended to be self-supporting 44

42 Federal and State regulations for Electric, Water, Sewer and Stormwater will further increase costs Water, sewer, stormwater regulatory compliance: i.e., Total maximum daily load (TMDL) for nutrient criteria-nitrogen, copper and other nutrients Infrastructure maintenance and replacement: Water & Sewer, Stormwater Electric issues: National Energy Reliability Council (NERC), lack of national energy policy; Uncertainty about cost of coming changes in the industry 45

43 780 Kilowatt Hours Sold (millions) Beaches Energy Services Above and beyond the expected Concerns: Cost of federal/state regulatory requirements, National Energy Reliability Council (NERC) standards, coming changes in the industry 46

44 Water & Sewer Fund Water Billed (million gallons) Concens: Regulatory compliance: i.e., Total maximum daily load (TMDL); infrastructure maintenance and replacement, cost of infrastructure maintenance and replacement. 47

45 Jacksonville Beach Golf Course A great product at a great price Rounds Played (thousands) 30 Golf the Beach Concerns: maintaining positive financial condition despite declining play; maintain competitive position in the area 48

46 List 3 things you learned from this presentation List 3-5 budget issues (goals, services, funding, etc.) that are important to you Thoughts about adopting the rolled-back millage rate (the rate that allows the City to obtain the same amount of property taxes that we obtained this year) Any questions you have about the budget Thank you for being here today! 49

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48 Consider options for reducing General Fund expenses

49 Beginning revenue shortage: $ (467,599) Used funds from Lease Facilities to pay for cost of budgeted capital outlay 242,600 Defunded one building inspector 41,946 Reduced budgets for Special Events, City Clerk 14,000 Moved allowed crime prevention costs to LETF 39,319 Current revenue shortage $ (129,734)

50 2011 Estimated Revenues $18,447,071 Proposed Expenses $18,576,805 Revenues minus Expenses (shortage) ($129,734)

51 See handout (next slide): Overtime reductions Eliminating authorized positions Changing facility hours and/or reducing facility hours Sharing staff

52 Ranking Dept. Current General Fund Staffing Reduction Impacts of Reduction Streets 15.7 Reduce overtime budget Divison will move to a 7-day per week work schedule to meet Special Events and weekend Downtown/Oceanfront cleanup needs throughout the year. Division will be fully staffed on Tuesday, Wednesday and Thursday subject to vacancies and Streets 15.7 Defund one Maintenance Worker position ($32,247) and reduce overtime budget ($7,753) Police 83.9 Reduce overtime budget leave. Divison will move to a 7-day per week work schedule to meet Special Events and weekend Downtown/Oceanfront cleanup needs throughout the year. Division will be fully staffed on Tuesday, Wednesday and Thursday subject to vacancies and leave. Current budget includes $400,000 in overtime; other funds are available to offset part of this reduction. This reduction will necessitate caution in the use of remaining overtime. Fire 31 Reduce overtime budget Special Events Parks- Tennis Parks- Carver Center 1 Eliminate one event Parks-Admin 4 Parks-Admin 4 Reduces staffing levels, at times, resulting in only 2 engines (instead of 3) being available for response. Reduces funding available for part-time fire inspectors ($12,000) resulting in reduced number of high-hazard inspections and reduced administratio Tennis Center - change hours; eliminate 2 Investigating the use of a key/card system to enable part-time positions; close 1-2 days per week members to use the facility when it is not staffed Carver Center - eliminate 1 part-time position and fill in from Recreation office staff Recreation office - reduce part-time position by 300 hours Recreation office & Golf Course - have Recreation Superintendent work at the golf course 300 hours per year Reductions in the Recreation office staffing will require some reduction in staffing and hours at the office; also investigating the use of key/card system for this facility Reductions in the Recreation office staffing will require some reduction in staffing and hours at the office; also investigating the use of key/card system for this facility Reductions in the Recreation office staffing will require some reduction in staffing and hours at the office; also investigating the use of key/card system for this facility

53 Public Safety Environmental Protection Parks & Open Space Sense of Place / Neighborhood Vitality Responsible Government

54 Public Safety Environmental Protection Quality of Life Goals City Services Supporting the Goal I want to feel safe from crime and fire and have good emergency Police, Fire, Building Inspection, management services Ocean Rescue I want to live in a community that protects my health by providing Water, Stormwater, safe water to drink, reliable garbage collection and clean Wastewater, Sanitation waterways through the treatment of stormwater and wastewater, while preserving the environment for future generations Sense of Community Sense of Place and Neighborhood Vitality Responsible Government Reliable Electricity I want to live in a community that provides parks, open space and recreational opportunities for all ages that give us a sense of community I want to live in a City of vibrant neighborhoods that are clean, safe, encourage a sense of place and preserve property values I want a fiscally responsible government that maximizes the use of public funds and provides great customer service I want to live in a city that delivers reliable energy services while encouraging conservation and environmental responsibility with service that is above and beyond the expected Parks & Recreation, Special Events, Golf Course Planning & Development, Code Enforcement, Streets, Redevelopment Manager, Finance, Legal, City Clerk, Information Systems, Human Resources Beaches Energy Services

55 What outcomes are we buying? Are we delivering services efficiently? Can someone else deliver a lower cost service and meet citizen expectations? How are we relevant to citizens? Legitimacy We must be addressing a serious problem Failure to solve the problem will reduce someone s quality of life

56 As a team, consider proposals on the handout: You have $130,100 to spend. Which items do you want to buy? Rank the options: Which options best help the City accomplish its priorities? Teams should be prepared to discuss what their thought process was, how their choices will affect the City, any fairness concerns and whether avoiding layoffs was a consideration

57 Final Ranking Dept. Current General Fund Staffing 1 Streets Parks-Carver Center 1.7 Reduction Defund one Maintenance Worker position ($32,247) and reduce overtime budget ($7,753) Carver Center - eliminate 1 part-time position and fill in from Recreation office staff Potential Savings Table 1 Table 2 Table 3 FINAL $40,000 $40,000 $40,000 $40,000 $40,000 $18,000 $18,000 $18,000 $18,000 $18,000 3 Fire 31 Reduce overtime budget $50,000 $38,000 $50,000 $50,000 $42,000 4 Streets 15.7 Reduce overtime budget $40,000 $30,000 $18,000 $22,100 $30,000 Police 83.9 Reduce overtime budget $50,000 Special Events 1 Eliminate one event $20,000 Parks-Tennis 2.7 Tennis Center - change hours; eliminate 2 part-time positions; close 1-2 days per week $15,000 Parks- Admin 4 Recreation office - reduce part-time position by 300 hours $4,000 $4,000 $4,000 Parks- Admin 4 Recreation office & Golf Course - have Recreation Superintendent work at the golf course 300 hours per year $8,000 $245,000 $130,000 $130,000 $130,100 $130,000

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59 Increase citizen safety and improve the quality of life in Jacksonville Beach by reducing alcohol related incidents at alcoholic beverage establishments

60 84 Establishments Holding a 2-COP or 4-COP License

61 Identify and implement a system designed to reduce illegal activities by alcoholic beverage establishments and their patrons Develop a team approach between the City and alcoholic beverage establishments to create and maintain a safe and positive environment for residents and visitors to enjoy

62 Amend Chapter 4 (Alcoholic Beverages) of the Code of Ordinances to address illegal activities occurring in and around alcoholic beverage establishments Create a process to adjudicate violations utilizing the city s Special Magistrate

63 Examples of violations include, but are not limited to, the following: Sale of alcoholic beverages to underage or intoxicated persons Disorderly intoxication, fights, or batteries DUIs Illegal sales, usage, or deliveries of drugs Violation of the fifty-one (51%) percent food sales requirement set forth in Florida Statutes

64 Require establishments that serve alcoholic beverages for consumption on premises to close at midnight unless they obtain an Extended Hours of Operation Permit (midnight to 2:00 a.m.) from the City. All such establishments must close at 2:00 a.m. Permits will be renewable annually.

65 A restaurant holding a 4-COP-SRX state alcoholic beverage license cannot operate as a nightclub.

66 Nightclub - an establishment that holds a state alcoholic beverage license and has two or more of the following components: 1. Live entertainment or DJ services 2. Dance floor or space that is sometimes used for dancing or viewing entertainment by removing furniture 3. Cover charge for entry into the business 4. Minimum drink requirement 5. Stage or platform used for entertainment or live music

67 Written warning for first violation Additional violations within 180 days will go before the Special Magistrate for hearing and adjudication

68 Second violation - suspension of the Extended Hours of Operation Permit for a period of 30 to 90 days Subsequent violation within 365 days - suspension of the Extended Hours of Operation Permit for a period of 90 to 180 days Second and subsequent violations may also include a fine (per violation) of not more than $500

69 Identify your top three concerns or issues with the ordinance Suggestions/Alternatives Presentation by table to the group

70 Redevelopment Presentation

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77 City of Jacksonville Beach Website: