HomeMy WebLinkAboutSubmittal Memo 09-28-06t3/f.3
TO :
FROM :
Honorable Mayor Manuel A. Diaz
and City Commission
Pedro nandez
City Mana• r
SUBMITTED INTO THE
ITEM8y3 OU-9-arzos.
DATE :
SUBJECT:
REFERENCES:
ENCLOSURES:
FILE :
Final Proposed 2007 Fiscal Year
Budget Appropriations
The intent of this memorandum is to outline the changes that were made to the original
proposed budget that resulted in the final proposed budget included for the City Commission's
consideration.
The original proposed budget of $501,200,952 was built with some underlining revenue and
expenditure assumptions they included:
1. A reduced operating millage rate of 8.3745 from 8.4995
2. A reduced debt service millage of 0.621 from 0.765
3. A static solid waste fee of $325 per residential household
4. A reduced residential fire fee of $31 per residential household from $46 per residential
household.
5. Ad valorem tax base growth of $7.1 Billion to $34.1 Billion (26.5% increase from
previous fiscal year).
6. Use of $6.1 million in reserve fund balance to arrive at the overall balanced budget.
7. Addition of 70 new FTE (35 Police, 30 Firefighters, 5 General Employees)
8. No contribution for capital related items.
The final proposed budget of $508,136,186 was built with the same assumptions with the
exception of the following:
1. A total of $13.0M of reserve fund balance is used to arrive at the overall balanced
budget. The additional $7M will be utilized to fund $2.4M in police and general fleet
replacement, $1.5M to fund solid waste heavy fleet replacement, $2.6M to fund the
continuation of major IT initiatives (i.e., Land Management, hardware replacements, and
ERP) and an additional $630K toward roadway infrastructure required under the parking
surcharge ordinance.
2. 2 Additional FTEs were added to department of Employee Relations with a fiscal impact
of $96K.
Overall the final proposed budget as compared to last fiscal year remains generally static
growing by a mere 3.18%. Recurring operating expenses however have actually gone down
from year to year. Funds derived from these savings were reallocated to departments that
provide direct services to the citizens (i.e., Fire, Police, Public Works, Solid Waste and Parks).
Under the policy guidance of the Mayor and the City Commission, the millage rate, solid waste
fee and fire fee have either been reduced or remain static. We continue to be diligent about
protecting the City's reserves by significantly reducing the use of fund balance and ensuring that
the City remains well above the reserve requirement. Finally, the Administration was able to
achieve a balanced budget proposal even as we face ever increasing health care cost and a
staggering pension contribution. We respectfully request your full consideration and approval of
this final proposed budget.
- D� rs3
-G4-�35�1