TABLE OF CONTENTS INTRODUCTION... 1 CAPITAL IMPROVEMENTS INVENTORY AND ANALYSIS... 1 DEFINITIONS... 2 DATA INVENTORY... 23

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1 Chapter 8 TABLE OF CONTENTS INTRODUCTION... 1 CAPITAL IMPROVEMENTS INVENTORY AND ANALYSIS... 1 DEFINITIONS... 2 DATA INVENTORY INTRODUCTION The Florida Legislature mandates that all local governments plan for the availability of public facilities and services to support development concurrent with the impacts of such development. The purpose of the (CIE) is to: Evaluate the need for public facilities in support of the Future Land Use Element. Identify capital projects needed to maintain adopted Level of Service (LOS) standards. Estimate the costs of improvements for which the local government has fiscal responsibility. Analyze the fiscal capability of the local government to finance and construct improvements. Adopt financial policies to guide the funding and construction of improvements. The CIE differs from a capital improvement program in that it needs to include only those facilities derived from other elements of the comprehensive plan. It focuses on the capital outlay required to meet existing deficiencies and to maintain adopted LOS standards. The of the City of Umatilla s Comprehensive Plan consists of two parts: The Capital Improvements Data Inventory and Analysis, and the Goals, Objectives and Policies. The data inventory and analysis is used to determine and support the necessary goals, objectives and policies through which the City shall manage the implementation of capital improvements that are necessary to meet needs of existing and future population. The Capital Improvement Goals, Objectives and Policies are provided within a separate document. CAPITAL IMPROVEMENTS INVENTORY AND ANALYSIS, 9J 5.016, F.A.C This section identifies the public facility needs as identified in the other Comprehensive Plan elements, which are necessary to meet the needs of existing and future development. These needs can be classified as either (1) new facilities necessary to meet demands generated by anticipated growth and development, (2) facilities replacing existing obsolete or worn out facilities, and (3) facilities to eliminate current deficiencies in infrastructure, service or available Chapter 8 1

2 facility capacities. Due to the nature of some of these facilities multiple year financing may be required. In addition, other improvement and program needs for government services and facilities not covered in this comprehensive plan are provided for informational purposes to identify all fiscal impacts and capacities anticipated by the City for the five year study period. DEFINITIONS The Following definitions pertain to terminology applied within the comprehensive plan. Capital Improvements. Capital improvements generally represent fixed infrastructure or equipment that has a life expectancy exceeding five years. In most cases, a capital improvement represents a one time expense to construct or install a facility. Prior to the installation of new capital improvements, land acquisitions may be necessary to accommodate proposed facilities. In addition, to determine what type, design, capacity, and service locations are necessary to meet identified needs within the comprehensive plan elements, preparatory studies or research may also be necessary prior to construction and land acquisitions. Capital improvements which shall qualify for inclusion in the Five Year Schedule of Capital Improvements will consist of at least one of the following elements: 1. Infrastructure 2. Land acquisitions 3. Service or supporting facilities and equipment 4. Preparatory services including engineering, planning & research All improvements or expenditures which do not qualify for capital improvements represent operating and maintenance activities. Capital projects not qualifying as a capital improvement will be referred to as capital outlay. Five Year Schedule of Capital Improvements: A schedule that stages or times the commencement of capital improvement projects with a year at which time funds will be available. For purposes of this Plan, the five year schedule shall run from FY 2010/ /16. Operation and Management: Expenses required to maintain or operate a capital improvement or that are necessary to finance the operation of a staffed program identified within the Capital Improvements Element. Such Expenses include, but are not limited to salaries, repairs, and maintenance. DATA INVENTORY, 9J (1), F.A.C This section presents an inventory of public facility needs, existing revenue sources and funding mechanisms as they apply to the City of Umatilla, pursuant to Section 9J (1), F.A.C. Chapter 8 2

3 PUBLIC FACILITY NEEDS, 9J (1) (a), F.A.C This subsection identifies the public facility needs as identified in the other comprehensive plan elements in support of the future land use element of the comprehensive plan. Concurrency public facility needs can be classified as either (1) new facilities necessary to meet the demands generated by anticipated growth and development, (2) facilities replacing existing obsolete or worn out facilities, and (3) facilities to eliminate current deficiencies in infrastructure, service or available facility capacities. Table 8 1 identifies capital improvements and associated expenditures needed during the short range planning period to year 2015/16. Table 8 1. Five year Schedule of Capital Improvements LOS Facility Description Target Estimated Cost Source Type Dates Wastewater Plant & Collection $2,490,186 Grant $1,069,441 system expansion 2010 Enterprise Fund Issues not affecting to LOS, but pertaining to the acquiring of possible grant money Parks and Recreation Cadwell Park Restrooms $40,000 Grants Development for $70,000 Grants events Add pavilion $40,000 Grants Larkin Park / South Ballfied Lake Geneva Stormwater Water Light of back field $61,000 Grants Restrooms $40,000 Grants Concession stand $40,000 Grants Expand play area $50,000 Grants Lakeside park $50,000 Grants development Orange Ave $788,546 EPA $433,700 improvements City $354,846 Hazard mitigation $226,238 FEMA $169,679 Alleyway City match $56,559 improvements (behind Michaels) Cadwell park $7,500 FEMA Grant flooding correction Lake Yale Basin Study (alternative $45,000 Local governments Florida Natural Chapter 8 3

4 Wastewater Airport Commercial revitalization water supply) Extending water lines around airport Sanitary sewer rehabilitation Dry line installation at the SR 19 CR 42 realignment Partial parallel taxiway & aircraft parking apron Repair sewer lnes, downtown streetscape $250,000 USDA grant $32,220 DEP $250,000 Water and sewer impact fees $433,609 FAA $411,929 FDOT $17,344 City $4, $650,000 CDBG Major Improvements Proposed by State Agencies and Lake County. The only No major improvements are presently scheduled by the U.S. Corps of Engineers or State or Federal agency for the City of Umatilla during the period leading to year 2015/146 relate to safety/operational improvements at Umatilla Airport. As they are not related to level of service requirements, they are not included in this analysis. Lake County's five year schedule of capital improvements provided in its proposed comprehensive plan shows no major road improvements or other facility projects occurring within Umatilla's jurisdictional area. PUBLIC EDUCATION AND HEALTH SYSTEMS, 9J (1)(b), F.A.C School facilities and major medical centers are inventoried and analyzed to evaluate current and future impacts on the City's public services. Umatilla is located within School Planning Zone 5 and Concurrency Service Area #2. School Facilities. One public elementary school (kindergarten to 5th grade), middle school (6th to 8th grade), and high school (9th to 12th grade), all operated by the Lake County Board of Education, are located within the City of Umatilla. The following are the current capacities of Umatilla schools, based on the Florida Inventory of School Houses (FISH), a state of Florida planning tool that establishes the number of students that may be housed in an educational facility at any given time: School Student Stations Umatilla Elementary 701 Umatilla Middle 716 Umatilla High 801 Chapter 8 4

5 All three school facilities receive potable water and sanitary sewer service from the City of Umatilla. No service problems have been experienced by these schools, according to the City of Umatilla Water and Sewer Department. The geographical location of the three school sites in Umatilla are illustrated in Map 8 1. The City of Umatilla is unique in that it includes an elementary school, a middle school, and a high school within its municipal boundaries. The City gradually has increased in population over the last 10 years and the Lake County School District (District) has addressed the resulting increase in student population. The District has accomplished this by building a new facility for Umatilla Elementary School, adding classrooms to Umatilla Middle School, and converting the former Umatilla Elementary School facility into a pre kindergarten center. Remodeling is scheduled atadditions to Umatilla Middle School during 2011/2012. A proposed 9 th Grade center at Umatilla and High School are planned for has been delayed beyond the current financial planning period. Additionally, a renovation project at Umatilla High School improved the learning environment at this facility and increased the number of classrooms for students. With revenues from the Lake County voter approved penny sales tax referendum of 2001, the District was able to renovate Umatilla High School and other high schools throughout Lake County. Lake County allocated one third of a penny sales tax to the District for the high school projects. Through this additional funding source, the District was able to continue serving the City and preserved the City s history. TABLE 8 1 LIST OF CAPITAL IMPROVEMENTS CITY of Umatilla EXISTING REVENUE SOURCES AND FUNDING MECHANISMS, 9J (1) (c), F.A.C Revenues collected by the City are accounted and organized into two general categories a General Fund and an Enterprise Fund (Water/Sewer and Garbage). Revenues collected from General Fund sources are obtained ultimately through taxation and are earmarked primarily for operation, maintenance and administrative functions provided by the City. Revenue may originate from City, County, State or Federal taxes. In some cases revenues obtained from County, State or Federal taxation may only be used (restricted) to financially support certain pre designated municipal services or capital improvements. While such revenues received from the State or through Lake County may be restricted to financing specific capital improvements, some funds may be applied to almost any use at the discretion of the municipality. Chapter 8 5

6 The Enterprise Fund is comprised of a Water and Sewer Fund, and a Garbage Fund. Revenues collected through the first fund are separated into operating and Non operating sources. Operating revenues consist of user fees assessed on development for water and sewer fees and connection fees to connect new customers on to City services. Non operating revenues are used to finance improvements to either the water or the sewer system. These revenues comprise utility taxes, franchise taxes, and impact fees levied on new development. A description of revenue sources specific to the General Fund and Enterprise Fund is provided below. GENERAL FUND REVENUE SOURCES General revenue sources include municipal tax revenues together with revenues received from the State or Lake County to meet general government service and facility obligations. MUNICIPAL TAX REVENUE SOURCES 1. Ad Valorem Taxes Taxes based on the value of both real and personal property. The tax amount is determined by multiplying the rate of taxation, expressed in mills (.001) times the non exempt assessed value of property within the jurisdiction of the City. The millage rate set for was mills. The millage rate for wasis Nearly all ad valorem revenues are used to finance local government operation and management. Available revenues may be applied to capital expenditures or to finance general obligation bonds. No decision has been approved by the City Council to increase the mill rate for any future fiscal year during the short range planning period. During FY 2010, the City collected $1,001,158 in Ad Valorem Taxes. 2. Local Option Gas Tax (Chapter , Florida Statutes) Counties may, according to State statute (Ch , F.S.), levy up to six cents per gallon on motor and special fuel. Funds are collected by the County and distributed to municipalities according to a formula established in an inter local agreement between Umatilla and Lake County. Revenue accrued from this source may be expended on public transportation, roadway and right of way maintenance and operation, roadway and rightof way drainage, street lighting (but not electricity), traffic signs, traffic engineering, signalization and pavement markings, bridge maintenance and operation, and debt service and current expenditures for transportation related projects. The City primarily uses this revenue to help finance operation and maintenance of the local roads. During FY 2010, the City collected $93,144 in Local Option Taxes. 3. Interest Revenues not needed immediately in the fiscal year are placed in bank accounts to earn short term interest. Investments are made through the State Board of Administration into Chapter 8 6

7 State of Florida banks within the State of Florida and in Federal securities. This flexibility allows interest revenues to be maximized. During FY 2010, the City collected $79,718 in Interest. 4. Local Government Infrastructure Surtax Through this surtax, the City of Umatilla may levy a half cent tax on the sale of goods. Proceeds accrued from this tax can be used only for the purposes of financing, planning, and constructing infrastructure. Under no circumstances may tax proceeds be used to fund operational expenses of infrastructure or used to supplant or replace user fees or to reduce local ad valorem tax burdens. Proceeds may be used to back new bond indebtedness. During FY 2010, the City collected $223,665 in Infrastructure Surtaxes. STATE AND COUNTY TAX REVENUE SHARING SOURCES 1. State Revenue Sharing Cigarette Tax & Eighth Cent Motor Fuel Tax (Chapter 218, F.S.) Revenue Sharing Funds are distributed to the City of Umatilla according to apportionment formulae set forth within State Statutes. This formula apportions funds based on a proportional share of the City's population to that of the State's. State revenue sharing funds primarily comprise state motor fuel taxes and cigarette taxes. That portion of state revenue sharing funds attributable to the eight cent motor fuel tax may only be used for transportation related functions and drainage improvements. According to the Florida Dept. of Revenue (Local Government Financial Handbook, 1990), 34.2% of each municipalities Municipal Revenue Sharing distribution must be expended on transportationrelated improvements. In addition, only the guaranteed portion of their distribution may be used for collateral on bonding. As a result of this, the guaranteed portion of the State revenue sharing funds is used in analysis accomplished herein to estimate debt capacity for the City. All revenue sharing gas taxes must be earmarked for transportation related funding and may not be used to operate public works or engineering staff and administration Cent Cigarette Tax (Chapter , F.S.) Two cents of the state tax imposed on the sales of cigarettes is distributed to qualifying municipalities according to an apportionment based on the municipalities population. Pursuant to Section (1), Florida Statutes, municipalities may consider the cigarette tax revenue as general revenue and use it for any public purpose. 3. Local Government Half Cent Sales Tax The Local Government Half Cent Sales Tax Program returns to municipalities and counties approximately 9.8% of sales tax proceeds collected state wide. This fund allows the exercise of local discretion in providing for public service needs. These funds are eligible for Chapter 8 7

8 the payment of principal and interest on any capital improvement serving municipality wide needs. During FY 2010, the City collected $393,824 total State Revenue Sharing funds. 4. Motor Fuel Tax Rebate Chapters and , F.S., provides that the portion of the state motor and special fuels taxes which is paid by Umatilla, as well as any other municipality or county, on motor fuel or special fuel used in a motor vehicle operated by it, is returned to the governing body. Expenditures from this revenue shall only be for transportation related expenditures encumbered by the municipality. 5. County Gas Tax Ch , F.S., authorizes Lake County to levy a One Cent Voted Gas Tax for every gallon of motor fuel and special fuel sold in the County. A percentage of these revenues are distributed to Umatilla and other incorporated municipalities within Lake County by an inter local agreement. These proceeds may only be expended for transportation related expenditures assumed by the municipality. Local Government Half Cent Sales Tax The Local Government Half Cent Sales Tax Program returns to municipalities and counties approximately 9.8% of sales tax proceeds collected state wide. This fund allows the exercise of local discretion in providing for public service needs. These funds are eligible for the payment of principal and interest on any capital improvement serving municipality wide needs or to reduce the local tax burden. 6. Grants The City may elect to pursue grant funds distributed by State and Federal agencies to fund capital improvements or finance certain government services. However, as limited grant funds have resulted in competitive applications procedures, funding can not be guaranteed. Only grant funds the City has been previously guaranteed or is expected to receive with some degree of certainty were used to demonstrate financial feasibility. During FY 2010, the City received $1,302,918 in State Grants. OTHERS LOCAL REVENUES Non major sources of revenue from general government charges and fees, such as charges for recording legal instruments, zoning fees, sale of maps, certification, copying, record search, and municipal officer fees, and other revenue sources such as intergovernmental revenue, fines and forfeitures, as well as such miscellaneous revenues as interest earnings, rents and royalties, special assessments, compensation for the loss of fixed assets, contributions and donations, Chapter 8 8

9 etc. Revenues collected from these sources primarily serve to finance City government operation and management services. Specific individual sources of revenue have been listed below as they apply to the City of Umatilla. ENTERPRISE FUND REVENUE SOURCES Six revenue sources generate proceeds earmarked for the Enterprise Fund utility service taxes, franchise taxes, impact fees, water fees, sewer fees, and garbage fees. While the first three are collected into a non operating budget for the Water and Sewer Fund, fees are respectively placed into operating funds for water and sewer services or for garbage service. 1. Utility Service Taxes Revenues derived from taxes levied by the City of Umatilla on the purchase of utility services are referred to as utility service taxes. The primary utility services that are taxed are: electricity, cable television, gas, and water. Companies providing utility services to Umatilla are United Telephone, Lake County Cable Vision, Florida Power Corporation, Sumter Electric Company, Peoples Gas System, and Umatilla Water and Sewer Service. The City uses utility taxes to support improvements to the water and sewer system or may transfer proceeds to the General Fund to cover either capital improvements or operating, administration, or maintenance expenditures. Available funds may be used to finance capital improvements or reduce debt obligations. 2. Franchise Fees The City of Umatilla receives a contracted percentage from all of the service companies who operate within its jurisdiction. This fee is based upon the number of subscribers and their usage of the utility. Franchise fees are imposed on electric, telephone, gas and cable television services. The City usually allocates this revenue to water and sewer capital improvements or transfers it to the General Fund to cover capital improvement or operating costs financed by this fund. Available funds may be used to finance capital improvements, cover operating or maintenance costs, or reduce debt obligations. During FY 2010, the City collected $9,918 in Franchise Fees. 3. Water and Sewer Service Fees A fee levied on residential and commercial customers connected to the municipal water and sewer systems are collected to meet costs to provide such services. Funds remaining after allocations to operating and maintenance expenditures may by applied to any capital improvement, debt obligation, or transferred to the General Fund. During FY 2010, the City collected $1,587,981 in Water and Sewer Service Fees. Chapter 8 9

10 Interest Interest earned from investment of water fees and utility taxes is also collected in the Enterprise Fund. Proceeds earned from interest may be applied to operating and maintenance costs, new or existing debt obligations, or transferred to another fund. 5. Impact Fees An impact fee is assessed on most new development occurring within the City serves to cover part of the cost to provide additional water and sewer facilities necessary to meet demands generated by that development. Fees are designated and used only for capital improvements to the water and sewer system. 6. Garbage Fees A fee is assessed on all development receiving refuse collection service from Waste Services, Inc. Approximately fifteen percent of these proceeds are returned to the City to cover administration costs. During FY 2010, the City collected $719,349 in Solid Waste Franchise Fees. SPECIAL ASSESSMENTS No special assessments are currently levied on any specific area of the City. BORROWING The high cost of some capital improvements requires local governments to sometimes employ borrowing, either through short term or long term financing. Short term borrowing, sometimes through local banks is one option available to raise revenue for 1 5 years. Longer term borrowing, usually in the form of bonds, is used to raise revenue for 5 40 years. Long term funding is also available to the City through the State of Florida Revolving Loan Program. CAPITAL IMPROVEMENTS ANALYSIS REQUIREMENTS, 9J (2), F.A.C This section presents an analysis of the fiscal implications of the identified capital improvements needs within the City of Umatilla pursuant to Sec. 9J (2) (a f), F.A.C. In order for the Capital Improvement Element to be an effective tool in implementing the comprehensive plan, there is a need for local practices and policies to guide the timing and location of public facilities. The CIE s effectiveness will also be influenced by state, regional and county agencies which have jurisdiction over the City. A number of policies and practices can contribute towards the implementation of the comprehensive plan. Some of these are currently utilized by the City. Others may become relevant or necessary for adoption in the future and should be considered in the annual revisions of this CIE. Capital Improvements Program A capital improvements program is a five year plan for capital expenditures. Included in a CIP are major one time expenses for facilities or equipment with a life expectancy of five years or Chapter 8 10

11 more. The CIP usually contains the costs for construction and renovation of public buildings and facilities, public works projects such as storm drainage, street paving and resurfacing, and water and sewer line/plant, and purchase of major equipment such as fire trucks and automobiles. The process of preparing a CIP includes identifying and listing capital items, scheduling them, estimating costs, and anticipating revenue sources or other means or financing. The CIP should be part of the local planning process and consistent with the adopted comprehensive plan. Often the first year of the CIP is the capital budget for the current year. Current local practices that guide the timing and location of construction, extension or increases in capacity of each Public Facility 9J (2) (a), F.A.C Current local practices that guide capital improvements are categorized as either existing or available practices. These practices are examined as follows: 1. Existing Practices that Guide Capital Improvements A. Engineering Master Plan/Studies. A master plan was prepared for water services to direct the development and extension of facilities. Major investments in such public facilities by the City of Umatilla typically involve the preparation of a master plan or study by an engineering/planning consulting firm. B. Annual Budget The City's department heads identify their respective departments' capital expenditure needs which are considered for inclusion in the annual budget. C. Comprehensive Plan The City of Umatilla will revise its comprehensive plan at least once every five years. Capital improvements needs are identified within each element of the Comprehensive Plan. The Plan also accounts for the costs of the identified capital improvements and establishes the feasibility of implementing a capital budget plan to build the identified improvements. D. Fees and User Charges The City of Umatilla has the power to impose fees and user charges for public provision of goods and services for the public health, safety, and welfare. This "police power" allows the City of Umatilla to provide for certain capital costs associated with expenditures for public health, safety, and welfare from revenues obtained from fees and user charges. User fees are currently levied on water, sewer and refuse collection services provided by the City. E. Levels of Service Standards Chapter 8 11

12 Levels of Service for the City of Umatilla have been established to provide indicators of the extent or degree of service provided by, or proposed to be provided by, a concurrency facility based on the operational characteristics of the facility, and upon the capacity per unit of demand for each public facility. Within the other elements of this Comprehensive Plan, the City has adopted LOS standards for water, sewer, solid waste, stormwater management, recreation, transportation and public schools. Within the other elements of this comprehensive plan, the following minimum LOS standards have been adopted: Potable Water: gallons per day / per resident for resident gallons per day / per resident 2025> 150 gallons per day / per resident Sanitary Sewer: Solid Waste: 100 gallons per day / per resident 5 lbs. per resident per day Drainage: 1. Retention Volume Water quality treatment volume is required per Chapter 40C 4, 2, F.A.C. and Chapter 40C 4, F.A.C. and Chapter 17 25, F.A.C. Traffic Circulation: Recreation: Road Class 2. Design Storm 25 year, 24 hour duration storm event. Or the 10 year, 2 hour duration storm runoff if greater than runoff occurring at the 50 year 24 hour storm. 3. Water Quality Stormwater discharge facilities must be designed so that water quality of receiving body is not degraded below established classifications. LOS * Principal Arterial C * Minor Arterial D * Major Collector D * Minor Collector D Public School Facilities: 5.0 acres per 1,000 residents Chapter 8 12

13 Elementary: 100% of permanent FISH capacity. If core dining capacity is available in excess of FISH capacity, the school capacity shall be increased up to 125% of FISH capacity by adding seats located in temporary student stations so long as the total capacity does not exceed core dining capacity. Middle: 100% of permanent FISH capacity. If core dining capacity is available in excess of FISH capacity, the school capacity shall be increased up to 125% of FISH capacity by adding seats located in temporary student stations so long as the total capacity does not exceed core dining capacity. High: 100% of permanent FISH capacity. If core dining capacity is available in excess of FISH capacity, the school capacity shall be increased up to 125% of FISH capacity by adding seats located in temporary student stations so long as the total capacity does not exceed core dining capacity. F. Adequate Facilities Ordinance. Although thethe City of Umatilla does not have a specific Adequate Facilities Ordinance, the Comprehensive Plan contains policies which required adequate facilities to be available to serve new development. will adopt an ordinance, by 2011, which requires facilities to meet specific design and performance standards and levels of service in order for the City to permit further development or amend a zoning map. This ordinance may also require existing deficiencies to be remedied prior to or coinciding with further development or zoning map amendments. G. Concurrency Management System The City of Umatilla will continue to maintain Land Use Regulations that assure that development orders and permits are not issued unless the necessary facilities and services are available concurrent with the impacts of development. H. Mandatory Dedication or Fees in Lieu Of As a condition to plat approval, the City may require subdivision developers to dedicate a portion of the land in the development to be used for public purposes such as roads and parks. Such dedications may be extended to the City of Umatilla or to a private group such as a homeowners association. I. Moratoria The City may choose to halt or delay development for a temporary period of time on an emergency basis to allow time to provide facilities required to eliminate an identified level of service deficiency. This action, referred to as a moratorium, may be imposed on building permits, development approvals, or governmental services. Moratorium may generally be imposed for a "reasonable time" to allow for necessary planning activities pending comprehensive plan preparation, adoption, or amendments. J. Urban Service Area Chapter 8 13

14 The designation of an urban service area boundary can be used to designate areas where the municipality will provide public facilities and services. This approach can guide the timing and location of public facilities within those areas where development is desired. K. Tax Increment Financing (TIF) This is a tool which is used for redevelopment and community improvement projects within a designated area. With federal and state sources for redevelopment generally less available, TIF has become an often used financing mechanism for municipalities. The City of Umatilla has a designated Community Redevelopment Area (CRA) and TIF district. GENERAL FISCAL IMPLICATIONS OF EXISTING DEFICIENCIES AND FUTURE NEEDS BY PUBLIC FACILITY TYPE, 9J (2)(b) This section examines the ability of the City to fund the capital improvements identified in the other elements of the comprehensive plan. The purpose of the section is to determine the impact of the facilities in relation to revenues, and whether sufficient funding will be available from FY 20101/20112 through FY 20146/20157 to finance the required improvements. It is important to note that the revenue to expenditure analysis is based upon only those needs identified by other comprehensive plan elements. Any projected cash surplus will be needed to provide for the flexibility to accommodate unanticipated expenses and additional projects which may result from market conditions or future decisions by the City Council. The general fiscal implications of existing deficiencies, replacement needs, and future needs are based on improvement needs identified within the analysis subsection of the individual comprehensive plan elements. The cost associated with each facility is identified in Table 8 1 and in the Five Year Schedule of Capital Improvements, Table 8 9. Deficiencies. The Lake Sumter MPO 2025 Long Range Transportation Plan Summary Report recognizes SR 19 as a road that needs improvements, although these improvements are not cost feasible at this time. Replacements. No replacements are needed to meet LOS requirements. Summary. As demonstrated later in this element, more than sufficient funds are available to meet all costs for new and replacement facilities. After operating expenditures have been taken into consideration, over $10 million in revenues will be available to finance capital improvements amounting to $12,413,630. Accounting System The City of Umatilla s accounting system is based on the Uniform Accounting Code required by Florida Statute. This system is based upon generally accepted accounting principles, and requires standardization throughout the State of Florida. Governmental accounting systems Chapter 8 14

15 are organized and operated on a fund basis. This requires records in each fund to provide a complete accounting of assets, liabilities, reserves, equities, revenues and expenditures. In FY 2010/2011 the City is using eleven (11) funds. The primary funds are summarized as follows, and shown in detail in Table?.. General Fund The general fund consists of revenues from ad valorem taxes, franchise fees, utility taxes, licenses and permits, intergovernmental revenues and miscellaneous sources. These monies are necessary to fund the normal maintenance and operational needs of the City. Enterprise Fund (Utilities) The Enterprise Fund accounts for revenues from charges for water, sewer and refuse. The intent is to recover the cost and expenses of providing a service to the general public on a continuing basis through use charges. Revenue bonds may be issued using a portion of the facility receipts for debt service to finance large scale projects. Revenues generated from user charges which are in excess of actual annual capital and operating expenses may be used to finance necessary capital improvements. Airport Fund The Airport Fund accounts for revenues from charges and fees associated with hangar leases and tie down fees at Umatilla Airport. Revenues generated from user charges which are in excess of actual annual capital and operating expenses may be used to finance necessary capital improvements. Community Redevelopment Fund The Community Redevelopment Fund consists primarily of revenues from TIFF funds. Expenditure from these funds is restricted to projects within the CRA. A summary of the income attributable to each fund account is listed in Table 8.2. Table 8 2. Income attributable to each fund account Funds & Revenue Sources YCurrent Year 2010/11 General Fund $2,401,546 Utilities Fund $944,800 Sanitation Fund $633,800 Stormwater Fund $101,000 Utilities Impact Fund $31,070 Community Redevelopment Fund $120,146 Alt. Water Supply Fund $33,200 Airport Fund $46,956 Infrastructure Surtax Fund $223,450 Police Education $800 Police Auto Fund $3,400 Chapter 8 15

16 Total $4,540,168 COST ANALYSIS OF CAPITAL IMPROVEMENTS AND BASIS OF COST ESTIMATES, 9J 5.016(2) (c) Cost estimates for the proposed projects shown in Table 8 1 are based on 2009 dollar values. Due to inflationary factors and natural resource values associated with national, state, and regional economies, these costs are likely to increase over the extent of the planning period. The City should update project costs on an annual basis to reflect more current costs. IMPACTS OF PUBLIC EDUCATION AND HEALTH CARE SYSTEMS AND FACILITIES, 9J (2) (d) Three school facilities operated by the Lake County Board of Education are located within the City of Umatilla. Future school facilities and/or additional student stations in the northeast area of Lake County may be needed as the student population increases. The District s Five Year Facilities Master Plan for FY does not mention a need for future student capacity at Umatilla Schools. In addition to the ongoing capital improvements to Umatilla schools, the City of Umatilla is working with Lake County, other municipalities, and the District to create a school concurrency management system. In 2005, the State Legislature passed a Growth Management Reform Act (Senate Bill 360) that has significant impact on the District and City. This Act extended the requirements for concurrency to include schools. Key features of the bill are as follows: school concurrency is now mandatory statewide; school boards and local governments within each county must create school concurrency management systems by December 1, 2008, or face substantial penalties; and developers must be given the option to pay for school improvements in order to avoid a school concurrency requirement. The amount of payment must be proportional to the number of students who will come from the new development. This option is called proportionate share mitigation. USE OF TIMING AND LOCATION OF CAPITAL IMPROVEMENTS TO PUBLIC FACILITIES IN SUPPORT OF THE FUTURE LAND USE ELEMENT, 9J (2) (e) Location and timing of capital improvements projects are determined according to the following growth management and development control activities: 1. Five Year Schedule of Capital Improvements Capital improvements will be timed according to the availability of revenue or bonds to finance their implementation. Projects are programmed for implementation according to a five year schedule which identifies the year in which financing will be available. 2. Coordination of Projects with Improvement Plans of State Agencies Chapter 8 16

17 No major projects are proposed by any other State agency for the Umatilla area during the next five years. The City should coordinate any projects scheduled in the future with any projects scheduled by State agencies for the Umatilla area. 3. Levels of Service Levels of service shall be established for these public facilities concurrently with the adoption of this Capital Improvement Element. These levels of service, in conjunction with the City's Concurrency Management System, shall determine the time frame in which capital improvements shall be implemented. 4. Service Areas The determination of service areas for potable water supply, parks, and extensions of the existing road network shall establish the location of Capital Improvements in support of the Future Land Use Element. The current service area for the water system includes most of Umatilla. Development in the east part of town is not within the current water system. 5. Land Use Controls The City of Umatilla's Subdivision Ordinance provides design standards and a schedule of required utility and street improvements applicable to any development that has been divided as described in the Ordinance. For lands not considered subdivisions, the City has adequately timed the development of such lands by using normal permitting and inspection procedures stipulated within City development codes. Future development approval shall be consistent with the adopted Comprehensive Plan including the Future Land Use elements Goals, Objectives and Policies and the 2035 Future Land Use Map. Requests for annexation shall be reviewed for compatibility with existing land uses and to ensure that expansion of public facilities does not result in urban sprawl. Such development shall meet the requirements of the revised Land Development Regulations. 6. Subdivision Regulations The City of Umatilla has relied on subdivision regulations and normal permitting and inspection procedures to guide the timing and location of capital improvements to public facilities. These guides have proven to be effective. The City also uses mandatory connection of new construction to the municipality's potable water supply and central sewer facilities as additional means to time and locate additional capital improvements to the existing potable water supply. Connections to new development shall proceed consistent with the Comprehensive Plan's goals, objectives and policies and revised Land Development Regulations. Future development will occur as infill as well as from areas annexed into the City's limits. This development will be subject to guidance through levels of service requirements, mandatory hookup, and normal permitting and inspection requirements. The majority of land within the City's incorporated limits has already been platted. Unplatted land within the City is subject to the City's Subdivision Ordinance, as noted above. Chapter 8 17

18 ASSESSMENT OF REVENUES AND EXPENDITURES, 9J (2) (f) (1 6) The following methods were used to assess the City's ability to fund the capital improvements listed in Table 8 1, pursuant to Sec. 9J (2) (f), F.A.C. Anticipated revenues and expenditures for each of the three funds managed by the City are forecasted for the shortrange planning period in order to evaluate revenues available for financing capital improvements and debt obligations. METHODOLOGY USED TO FORECAST REVENUES AND EXPENDITURES Forecasts of revenues were performed by applying projection methods most applicable to various State and local funding sources contributing to the City's General and Enterprise Funds. A conservative approach was utilized to forecast revenues and expenditures. Based on this approach, most sales taxes collected by the State and distributed to municipalities and counties were extended into the future five years at a constant rate equivalent to the /101 fiscal year appropriations. The /101 fiscal year was used as a base year from which revenue and expenditure projections were forecasted for the following five fiscal years. This base year reflects a typical fiscal year for revenues and expenditures. The 2009/10 budget included monies received from FAA for the airport (runway rehabilitation). The current budget year revenues and expenditures were compared with historical data (where applicable) of actual figures experienced during past years. Due to recent, considerable economic and state taxation uncertainties, an average 3 5% increase in used in most categories in forecasting future estimated revenue. Multipliers were developed for each revenue type to apply to the established base year to accomplish future revenues and expenditures. Generally, a status quo method was employed, which applied a multiplier to population levels for each year of the five year period. For those revenue sources or expenditure categories where a multiplier could not be derived due to uncertain impacts resulting from regional economic conditions, figures for future years reflect fiscal year 2009/10 levels or possibly were adjusted according to expectations assumed by the City Clerk or City financial officer. Operating expenditures for proposed new projects and existing administration and operation of municipal facilities and services were determined using two approaches: Analyzing actual expenditures experienced by the City in past years and comparing these with growth and development trends. Anticipated expenditures estimated by the City Clerk or Budget Officer. Chapter 8 18

19 Revenues and operating expenditures were forecasted within each budgeting fund created for the City's fiscal management system. Each Fund is separately analyzed below to estimate whether sufficient revenues will be available to finance capital improvements and services identified in the Comprehensive Plan. Based on a comparison of revenues and operating expenditures within each fund, available revenues (i.e., positive cumulative net balance) are shown in Table 8 8 together with all State and County revenue sharing funds that are restricted to capital funding or for municipal wide programs. GENERAL FUND REVENUES Table 8 2 provides current estimates and future projections of proceeds for each year in the short rang planning period according to each revenue source comprising the City's General Fund. The base year revenues are also shown. For the most part, the base year revenues mirror the 2009/10 budget year. The methodology used to derive forecasts for each revenue source related to the General Fund is described below. Ad Valorem Tax and Other City Tax Revenue Forecasts. Table 8 3 lists current estimates and future projections for the City's tax base, ad valorem tax values, ad valorem tax collection, and mill rate. The ad valorem tax value represents 100% of proceeds collected by imposing a mill rate of on the projected tax base. Property in the City is appraised at 100% value by the Lake County Property Appraiser's Office, depending on the circumstances of the evaluation. The tax base figures shown in Table 8 3 have been adjusted to reflect the impact of Homestead Exemptions and other tax exemptions applied to property. Declining property values have significantly impacted tax rates over the past 2 3 years. However, it is anticipated that they will be offset in part by additional growth within the City boundary over the next 5 year period, in particular non residential development. The projections in Table 8 3? therefore assume a cautious growth rate of 5% per year. A tax base value was projected for each year according to a status quo rate equal to that experienced for the 2009 fiscal year. The 2009 tax base was divided by the 2009 resident population to calculate an average per capita property value rate. That rate was then applied to the resident population for each of the following five years. Inflationary factors are not included in this estimate so that all values represent 2009 dollar value. Table 8 3: Five Year Projection of Ad Valorem Tax FY $836,716 FY $878,552 FY $922,479 FY $968,603 FY $1,017,034 FY $1,067,886 Projection of Other Tax Bases and Revenue Sources Chapter 8 19

20 The past 5 years have seen fluctuations in the percentage of income growth from the various sales, fuel and communications taxes and municipal revenue sharing, with an average growth over the 5 year period of 5% per year. However, due to a decline in income from some of these sources during 2009/2010 a more cautious 3% annual growth rate is assumed over the period from Table 8 4: Projection of Intergovernmental Income FY $474,362 FY $498,080 FY $522,984 FY $549,133 FY $576,590 FY $593,888 License and permit fee revenues are calculated using an estimated 10% annual growth rate. Table 8 5: Projection of License and Permit Fee Revenues FY $32,000 FY $35,200 FY $42,592 FY $46,851 FY $51,536 FY $56,690 Enterprise Fund Revenues. Table 8 6 lists revenues and operating expenditures forecasted for the short range planning period. This Fund includes proceeds collected from water, sewer, and garbage fees, stormwater fees, alternative water fees, infrastructure surcharge fees, impact fees and earned interest. Revenues in this Fund are either designated to support operating cost or to finance capital improvements. Revenues are also transferred to the General Fund. The Garbage Fund is designed to provide a balance between revenues and expenditures, i.e., cover costs for refuse collection service provided by a private business and for city administration involved in this service. Enterprise fund revenues are based on an estimated 5% annual increase in service fees, and include anticipated connection fees from new development. Table 8 6: Enterprise Fund Revenues (All Utilities) FY $1,969,520 FY $2,067,996 FY $2,171,396 FY $2,279,966 FY $2,393,964 Chapter 8 20