City of Treasure Island Budget in Brief Proposed City Commission Budget FY 2017 Where charm meets contemporary All Funds Budget Summary Total Proposed Budget Budget % Fund FY 2016 FY 2017 Change General Fund $ 11,026,440 $ 11,353,779 3% Penny for Pinellas 1,589,790 949,585-40% County Gas Tax 236,453 150,000-37% Transportation Trust 0 84,796 - Police Training 9,439 0-100% Police Forfeiture 4,900 6,141 25% Capital Projects 2,394,479 706,630-70% Wastewater 5,663,363 5,065,947-1 Solid Waste 1,910,870 2,437,904 28% Stormwater 2,087,539 1,423,395-32% Total All Funds Budget $ 24,923,273 $ 22,178,177-1 Expenditures by Category Personnel $ 8,652,293 $ 8,868,848 3% Operating 6,657,655 6,931,162 4% Capital & CIP Projects 8,326,042 4,834,396-42% Debt Svc/Other/Contingency 1,277,845 1,297,700 2% Transfers to other funds 9,439 246,071 2507% Total Budget $ 24,923,273 $ 22,178,177-1 The proposed FY 2017 budget is $22,178,177. The changes from the prior year are largely due to the capital projects, which differ from year to year. The overall recurring personnel costs are 3% over the prior year which includes both employee pay increases and benefits. Operating costs are 4% higher than the prior year due to cost increases in supplies and/or contracts for services. However, over one-third of this increase is attributed to the cost of bulk sewer treatment where the City of St Petersburg treats the City s wastewater. The City is planning to borrow money in the Wastewater fund for lift stations refurbishment and for the relining of the wastewater system, which will increase debt service. There is a onetime transfer to other funds associated with the reconciliation of completed projects that were funded within the Capital Projects Fund.
Adopted Strategic Plan Goals 1. Strengthen the financial stability of the City in an ever-changing economic environment. 2. Create and maintain functional and cost-effective City facilities and grounds to serve the needs of the community. 3. Proactively maintain and improve infrastructure that meets the future needs of the City. 4. Preserve, protect and promote the City s beach. 5. Closely manage the intensity of redevelopment consistent with the character and scale of the community. 6. Hire, develop, support and retain a diverse workforce that is focused on customer service and delivering high quality services to the City. 7. Preserve the City s unique and high-quality neighborhoods. 8. Rejuvenate the City s business and tourist areas. Budget Highlights Maintain same millage rate of 3.3368 Increase parking rate from $1.50 and $1.75 to $2 per hour Increase standard parking fines from $30 to $35 and improper parking fines from $40 to $45 Sewer Rates will increase.20 cents to the volumetric portion to account for the bulk sewer cost charged by City of St. Petersburg to treat the City s wastewater. Stormwater Rates being proposed to increase 12% to fund the recommended system improvements. Includes general pay adjustment for city employees of coupled with a 1 to 4% merit increase dependent on employee performance. Increases to cover insurance increases in the area of health, workers compensation, property, and flood and liability coverage. Projected General Fund available fund balance of $2.3M or 2 of expenditures next year.
Miscellaneous Fines & Forfeitures City-wide Revenues (All Funds) Inter-Fund Transfer Debt Proceeds 2% Property Taxes 24% $21,346,419 Charges for Services 44% Other Taxes 7% License & Permits 6% Intergovernmental 15% Total projected FY 2017 revenue for all funds is $21,346,419. Revenue comes from a variety of sources, including property taxes, utility and business taxes, building permits, user fees and intergovernmental funds. The largest source is charges for services, representing 44% of the total projected revenue. Charges for services are fees paid for services, such as sewer, solid waste (garbage), stormwater fees, recreational activities and Emergency Medical Services (EMS) of which the City provides on behalf of Pinellas County. Intergovernmental revenue includes the City s share of the State sales tax as well as the Penny for Pinellas sales tax revenues. This proposed FY 2017 budget includes an increase in property tax revenue, due to an increase in the property values with the millage rate remaining the same. The City s taxable property values increased 7.44% overall. Many of the city revenues have stabilized since the great recession, however, have been fairly flat with little growth. User fees for utilities are set at a level to ensure that the City can provide the service efficiently and safely, while maintaining the infrastructure necessary to provide these services.
City-wide Expenditures by Fund (All Funds) Solid Waste Fund 1 Stormwater Fund 6.4% $22,178,177 Sewer Fund 22.8% General Fund 51.2% Capital Projects Fund 3.2% Police Forfeiture Fund.03% Transportation Trust Fund.4% Penny for Pinellas Fund 4.3% County Gas Tax Fund.7% The City uses Fund Accounting for financial budgeting and tracking. Each Fund has a unique funding source or purpose and by using separate Funds for specific operations it can provide for accountability in the use of those funds. The General Fund has a variety of different revenue streams that can generally be used for personnel, operating and/or capital needs. The General Fund supports general operations such as Administration, Finance, Personnel, IT, City Clerk, Legal departments and for direct services to include Police, Fire & EMS, Parks and Recreation, and Public Works operations. The Sewer, Solid Waste and Stormwater Funds are enterprise funds whereby the fees charged for these services on your utility bill support these operations. The Penny for Pinellas and County Gas Tax Funds provide for the City s infrastructure, capital and public safety vehicles/equipment. The Capital Projects Fund represents the Gulf Blvd Undergrounding and Beautification project; Police Forfeiture Fund are funds for police services from the sale of seized or forfeited property; and the Transportation Trust Fund are funds collected through transportation impact fees for transportation improvements that allow for increased capacity of roads/intersections. The proposed expenditures exceed projected revenues, with the difference coming from fund balance to support the capital investments within several of the capital and enterprise funds.
Budget Challenges City-wide Expenditures by Function (All Funds) Lack of adequate funding for Bascule Bridge and causeway (operating, capital maintenance and eventual replacement). Bridge operations is included in the proposed budget, however, capital maintenance is not funded. The current Penny for Pinellas extension, which provides funding for capital projects expires 2020 and will be up for renewal on the November 2017 referendum. If the extension does not pass, the funding of capital projects will have to be generated by a property tax increase or other expanded revenue to provide for capital funding. The City s infrastructure and facilities are aging, therefore, requiring significant capital funding to maintain and/or reconstruct. There is little growth in some of the larger General Fund revenue sources, therefore, it is necessary to try and grow or create new revenue streams to increase overall revenue growth and enhance revenue diversification. Sewer & Stormwater Services 29% Non-Dept (General City-wide expenditures) 5% Admin/Commission/Legal/Clerk 4% Solid Waste Services 1 Public Works 14% Community Improvement/Planning/Building 3% Finance, Personnel & IT 4% Library Service PSTA Trolley Service Parks & Recreation 8% Police/Fire & EMS 20% The pie chart above represents funding allocation by functions. The City, along with five other beach communities support the Gulf Beaches Public Library, which is part of the Pinellas Public Library Cooperative (PPLC) allowing residents to go to any of the PPLC libraries throughout the county. The City contracts with the Pinellas Suncoast Transit Authority (PSTA) to provide Trolley service in lieu of being part of the PSTA service route. This saves Treasure Island property owners a levy of $1.12M that would otherwise be charged by being part of the PSTA service route. Non-Department expenditures are those costs that are city-wide and not necessarily dedicated to support a single function, such as the utility bills, property, flood and liability insurance, banking and audit costs, and debt-service associated with the Palms and Capri bridge reconstruction and construction of the Beach Central Trail.
Key Proposed Capital Projects Total Capital Projects = $4,762,561 Gulf Blvd Undergrounding & Beautification (continues) Dune Walkover Rehabilitation (grant funded) TITV Camera and Station Equipment Replacement Replace Parking Meters and Pay Stations Replace Treasure Island Park Playground Equipment (partially grant funded) Treasure Bay Facility Improvements & Tennis court rehabilitation (courts 3-6) Replace Causeway/Sunset/Sunshine Beach Signs, Message Board Replace Community Center Tables and Chairs Annual Street Resurfacing Reconstruct Clock Tower Brick Crosswalk/Street section Replace Police Vehicle and Vessel Lift Station #1, 10 & 11 Refurbishment Sewer Main Relining Replacement of 2 automated garbage trucks, plus adding one smaller additional truck to help access beach areas Replacement of Vactor Truck Stormwater Improvements (partially grant funded) Bascule Bridge and Causeway The Bascule Bridge and Causeway is the City s largest financial challenge. There are three aspects of funding the bridge and causeway: the on-going operating, capital maintenance and the eventual replacement of the bridges. Currently, the General Fund is paying for the on-going operating cost which equates to approximately $600,000 to $700,000 annually. Staff has identified $3.1M in capital maintenance that will be needed over the next 5-years that is currently unfunded. Lastly, there is the eventual replacement of the bridge that will need to be funded some 70 years from now. However, with the price tag of millions of dollars, it is something the City needs to think about. Currently, there is.10 mills of the property tax that is set aside to fund the renewal and replacement of the bridge, the estimated balance in FY 2017 will be about $433,500. The Penny for Pinellas is a sales tax that which is dedicated to Capital Improvement projects such as facilities, stormwater, roads, bridges, parks and public safety vehicles. The Penny makes these projects possible without raising property taxes. Because the Penny is a sales tax, approximately one-third of the total Penny funds are paid for by tourists and seasonal residents. The current Penny expires at the end of 2020 and the next 10-year extension will voted on in November 2017 by referendum. 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - Total Budget FY 2016 Penny for Pinellas Funding by Project Vehicles & Equip Replacement Infrastructure Beach Parks City Facilties Budget FY 2017 Budget FY 2018 Budget FY 2019 Budget FY 2020 Budget FY 2021