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HomeMy WebLinkAboutCity of Tamarac Ordinance O-2011-012I Temp. Ord. #2233 September 14, 2011 Page 1 CITY OF TAMARAC, FLORIDA ORDINANCE NO. 0-2011- 12- AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, ADOPTING THE OPERATING BUDGET, REVENUES AND EXPENDITURES, THE CAPITAL BUDGET, AND THE FINANCIAL POLICIES FOR THE FISCAL YEAR 2012; REPEALING ALL ORDINANCES IN CONFLICT WITH THIS ORDINANCE; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Manager of the City of Tamarac, Florida, has presented to the City Commission the proposed operating budget, revenues and expenditures and capital budget as estimated for the Fiscal Year 2012, all as required by Section 7.02 of the Charter of the City; and WHEREAS, the City Commission in duly called public meetings, reviewed the budget and, having made certain amendments thereto, adopted a tentative budget; and WHEREAS, the City Commission authorized Public Hearings for September 14, 2011, at 7:00 p.m. and September 21, 2010, at 5:05 p.m. at the Tamarac City Hall, 7525 N-W. 88 th Avenue, Tamarac, Florida, and has caused notice of same to be published in a newspaper of general circulation in the City of Tamarac according to law; and WHEREAS, the City Commission has determined the amount of money which must be raised to conduct the affairs of the municipality for the Fiscal Year 2012 so that the business of the municipality may be conducted on a balanced budget, and has also determined the amount necessary to be raised by ad valorem taxes upon all of the property, real and personal, within the corporate limits of the City of Tamarac; and WHEREAS, the City Manager recommends the proposed budget for Fiscal Year 2012 be adopted; and Temp. Ord. #2233 September 14, 2011 Page 2 WHEREAS, the City Commission of the City of Tamarac deems it to be in the best interest of the citizens and residents of the City of Tamarac to approve the budget for Fiscal Year 2012. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA: Section 1: That the foregoing "WHEREAS" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this ordinance. Section 2: That the City of Tamarac, Florida operating budget, revenues and expenditures, and the Capital Budget for the Fiscal Year 2012, as provided for in Attachment A, and by this reference made a part thereof, be and the same is hereby adopted. If at any time during the fiscal year it appears probable that the revenues available will be insufficient to meet the amount appropriated, the City Commission shall then take such further action as necessary to prevent or minimize any deficit and for that purpose it may by ordinance reduce one or more appropriations. No appropriation for debt service may be reduced or transferred, no appropriation may be reduced by any amount required by law to be appropriated or by more than the amount of the unencumbered balance thereof. Section 3: That the City Manager, in accordance with Section 7.10 (d) of the City Charter, is authorized to make transfers within departments, and with the approval of the City Commission, transfer funds between departments, as is permitted by law. Section 4: That when the City of Tamarac receives monies from any source, be it private or governmental, by Grant, gift, or otherwise, to which there is attached as a condition of acceptance, or any limitation regarding the use of or expenditure of the monies received, the funds so received shall be accepted by the City Commission and Temp. Ord. #2233 September 14, 2011 Page 3 incorporated and appropriated in the budget by amendment, as required by law. Section 5: That every appropriation, except an appropriation for a multi -year capital improvement or multi -year grant program, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for a multi- year capital improvement or multi -year grant program shall continue in force until the purpose for which it was made has been accomplished or abandoned; the purpose of any such appropriation shall be deemed abandoned if three (3) years pass without any disbursement from or encumbrance of the appropriation Section 6: That the Financial Policies, as provided for in Attachment B, are hereby adopted, A copy of the Financial Policies is attached hereto and incorporated herein by reference. ISection 7: That all Ordinances or parts of Ordinances in conflict herewith are hereby repealed to the extent of such conflict. Section 8: That if any provision of this Ordinance of the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this ordinance than can be given affect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. I Temp. Ord. #2233 September 14, 2011 Page 4 Section'15: That this Ordinance shall become effective immediately upon its passage and adoption. PASSED, FIRST READING, 1 4th — DAY OF September, 2011. PASSED, SECOND READING, 21 st DAY OF September, 2011. E 8 "T� PETER RICHARDSON, CRM, CMC : CITY CLERK I HEREBY CERTIFY that I have approved this ORDINANCE as to form: I A6-dV71 eAGM EL S. GOREN U S C IT T ITY ATT06RNEY BY: MAYOR PAMELA BUSHNELL RECORD OF COMMISSION VOTE: 1 ST Reading MAYOR BUSHNELL DIST 1: COMM. SWENSON DIST 2: V/M GOMEZ DIST 3: COMM. GLASSER DIST 4: COMM. DRESSLER RECORD OF COMMISSION VOTE: 2 ND Reading MAYOR BUSHNELL DIST 1: COMM. SWENSON DIST 2: V/M GOMEZ DIST 3: COMM. GLASSER DIST 4: COMM. DRESSLER I I F CITY OF TAMARAC, FLORIDA ATTACHMENT A FY 2012 BUDGET ATTACHMENT TO TEMPORARY ORDINANCE 2233 FY 2012 OUbGFT ORDINANCE FUND TO 2233 General Fund Revenues Taxes $ 24,369.556 Licenses & Permits 5,008,226 Intergovernmental Revenue 6,361,180 Charges for Services 1.029,150 Fines & Forfeitures 439,000 Miscellaneous 1,121,500 Appropriated Fund Balance 3,144,432 Other Sources 4.625,710 Expenditures City Commission $ 712,432 City Manager 1,474,045 City Attorney 415.670 City Clerk 574.424 Finance 2.638,901 Human Resources 1.005,266 Community Development 1,411.399 Police 11.711,836 Public Works 6,958,889 Parks & Recreation 4.055,128 Information Technology 1,597,132 Non -Do artmen 13,543,632 Fire Rescue Fund Revenues Intergovernmental Revenue $ 38.280 Emergency Service Fees 2,000,000 Fire Protection Services 240,000 Investment Income 16,000 Special Assessmant 10,471.708 era n ran rs In 5,970,102 Personal Services $ 15,074,645 Other Operating Charges 1,044,785 Capital Outlay 90,000 Other Uses 2.286,460 Debt Service 220.OW Reserves 20.000 Drainage Retention Fund Revenues $ 244674 Exegriditures Reserve $ 244.674 Parks & Recreation Fund Revenues 271.421 Exgtridl,tures Reserve $ 230,921 Transfer Out 40500 Trafftways Irnprovernent Fund Revenues $ 1032377 EXR![!01h!re$ Reserve $ 1.032.377 PubliG Art Fund Revenues Charger for Service $ 35,000 Interest Income 10.000 AQgronriated Fund Balance 1,548.470 Tot:fl Pohlic. Ait Ftind R­ e, 1 59 � 470 Page I of 4 CITY OF TAMARAC, FLORIDA ATTACHMENT A FY 2012 BUDGET ATTACHMENT TO TEMPORARY ORDINANCE 2233 FY 2012 BUDGET ORDINANCE FUND TO 2233 Expenditures Contingency $ 1,590,870 Reserve 2600 Local Optlon Gas Tax 3-Cents Fund Revenues Taxes $ 442,574 ro te un Balance 435.600 gXp*l3d1tu!3X Reserve $ 878174 Building Fund Revenues Licenses & Permits $ 1,753.000 r -harges for Services 8.500 Fines & Forfeitures 75,000 Interest Income 500 Transfers in ge 648 ----------------- L-, Tolal Building Fund R�venuc, S 2.035.648 Expenditures Personal Services $ 1,484,138 Operating Expenses 190,070 Other Uses 351.440 Community Development Block Grant (CDEIG) Fund Revenues Grant Revenues $ 377,497 Toml C0BG Reve.MlrS S 377 497 Expenditures Personal Services $ 116,717 i0 5 E 260.780 maw"m Home (HUDI Fund Revenues Grant Revenues $ 120.0D0 Expenditures Operating Expenses $ 115.000 5000 CDBG Disaster RecovM Fund Revenues 13500 Reserves $ 13.500 Woodlands Neighborhood Improvement District Fund Revenues Aa.ro ted Fund Balance $ 14,721 Empenclitum 0 4 E 14,721 General Obligation (GO) Debt Service Revenues Taxes $ 220,329 Interest Incorne 600 !gu�Fund L=alarce 33.271 Expenditures Debt $am" $ 25-4200 T.tcd GO Dobt $ 254 200 1 Page 2 of 4 CITY OF TAMARAC, FLORIDA ATTACHMENT A FY 2012 BUDGET ATTACHMENT TO TEMPORARY ORDINANCE 2233 IFY 2012 BUDGET ORDINANCE TO 2233 Revenue Bond Fund Revenues Miscellaneous $ 147,000 Operating Transfers In Toml R—er-c, Bond FL411LI k-01U— 21672_§00_ S 2 911) 60P Expenditures Debt Service $ 2,819,600 Total Rc-votme Borid F uyid Exl)��iirfitkjr— 2.819 600 Capital Equipment Fund no--nu— Interfund Transfers $ 2,441,000 Toml Ca[�It3i FC101I)ItIOFIt I'Llfid R('Vk'[1LJ— 2 441 000 Eximnditums Capital Outlay $ 708.500 C t' 1.732,600 General Capital improvements Fund Revenues Investment Inwme $ 90,000 Appropriated Fund Balance 1,625,900 0 . n Tm—fom 1. An CnA Total Go., 1 756.400 Expenditures Operating Expenses 300,000 Capital Outlay 1.306,400 150.000 Public Service Facilities Fund Rmmnues Intergovernmental $ 750,000 Interest Income 25,000 lanoe 1,195,000 60iiffia Expenditures Capital Outlay $ 1,945,000 Conbnqg=y 25 DUQ7 T o t � i I P i i i � I i c. ', i � r, i c. �' Fa,.. i I i t i es E - J)U I I d I t L I I U S $ 1 570 0011 1 CIP 05 Revenue Bond Fund Revenues Interest Income $ 20,000 Fxpendltu� Reserves $ 20.DDO Stormwater Mampril Fund Revenues Stormweter Drainage Fees $ 5,102,400 Investment Income & Misc Rev 110,000 I ot�jl Storiii—t- mmilg�-lnllt Rcvcf)LICS 5 212 400 ExDonses Personal Services $ 1,665.458 Operating Expenses 1,973,132 Capital Outlay 894,575 Debt Service 404,100 Contingency 237,435 Reserves 37-700 F.tr,1 5 2 12 400 Page 3 of 4 CITY OF TAMARAC, FLORIDA ATTACHMENT A FY 2012 BUDGET ATTACHMENT TO TEMPORARY ORDINANCE 2233 rY 2012 BUDGET ORDINANCE FUND TO 2.233 Utilities Fund Revenues Water Revenues $ 7,685,772 Sewer Revenues 12,905,875 Late Charges 150,000 Charges for Services 407,500 Miscellaneous 8,000 Investment Income 105,000 Expenses Personal Services $ 5,412,494 Operating Expenses 11,673,445 Capital Outlay 2,731,750 Debt Service 904,400 Contingency 381,458 Reserves 158,600 _TDt.11 MIMI— FUI)d FX[-1—.S 21.262 147 Risk Management Fund Revenues Charges for Services $ 1,222,616 Miscellaneous 66.000 Miscellaneous 1.309,404 Total Risk Management Fund R�venkm,5 $ 2 5W 020 Eximni Personal Services $ 369,224 Operating Expenses 1,977,196 ContinqonL-< 260,000 Total Risk Management Fund Exp�.f-r.5 $ 2.59'7.020 Page 4 of 4 Attachment B City of Tamarac, Florida FY 2012 Proposed Budget FINANCIAL MANAGEMENT POLICIES The National Advisory Council on State and Local Budgeting (NACSLB) developed a comprehensive set of recommended budget practices that has been endorsed by the Government Finance Officers Association, ICMA, academia, etc. These recommended practices provide a framework for the budget process encompassing a broad scope of governmental planning and decision -making with regard to the use of resources. Element # 4 of Principal # 2, Adopt Financial Policies addresses the need for jurisdictions to establish policies to help frame resource allocation decisions. As such, following are recommended financial management policies developed within the guidelines of the NACSLB) with the associated measurable benchmarks (use word to describe that it can be measured) for adoption by the City Commission. OPERATING MANAGEMENT Policy #1: Revenue estimates for annual budget purposes should be conservative. In this light, General Fund revenues should be budgeted in the manner delineated below. A. Property taxes should be budgeted at 95% of the Property Appraiser's estimate as of July. B. State shared revenues should be budgeted at 95% of the State Department of Revenue estimate. This includes the Communication Services Tax, Half -cent Sales Tax and State Revenue Sharing. C. Franchise fee revenue should be budgeted at 95% of the maximum estimate prepared by Financial Services Department. D. Public Service Taxes on Electric, Propane and Natural Gas should be budgeted at 95% of the maximum estimate prepared by the Financial Services Department. Policy #2.- The annual budget should be maintained in such a manner as to avoid an operating fund deficit. The annual budget should show fiscal restraint. Expenditures should be managed to create a positive cash balance (surplus) in each fund at the end of the fiscal year. Policy #3; The City should maintain a prudent cash management and investment program in order to meet daily cash requirements, increase the amount available for investment, and earn the maximum rate of return on invested funds commensurate with appropriate security. The City will use the following performance benchmarks for its investment portfolio. A. The Bank of America Merrill Lynch 1-3 Year US Treasury & Agency Index which is a subset of The Bank of America Merrill Lynch US Treasury & Agency Index including all securities with a remaining term to final maturity less than 3 years, will be used as a benchmark for the performance of funds designated as core funds and other non -operating funds that have a longer -term investment horizon. The index will be used as a benchmark to be compared to the portfolio's total rate of return. B. The S & P Rated LGIP Index/All will be used as a benchmark as compared to the portfolio's net book value rate of return for current operating funds. Policy 94: Reserve funds shall not be used to fund recurring expenditures. Fund balances should be maintained at fiscally sound levels in all funds. Such levels are delineated below. Attachment B The City shall maintain a minimum undesignated fund balance in the General Fund of 5% of annual expenditures, including Interfund transfers out. FINANCIAL MANAGEMENT POLICIES Reserved/Designated: Disaster Reserve $1,000,000 FY 2011 $1,000,000 FY 2012 $1,000,000 FY 2013 The disaster reserves are to be used in emergency situations and as a match for Federal Emergency Management Agency (FEMA) funds. Capital Vehicles and Equipment $500,000 FY 2011 $500,000 FY 2012 $500,000 FY 2013 Reserves shall be used to fund emergency replacements and/damaged equipment vehicles only. Facilities Maintenance $400,000 FY 2011 $400,000 FY 2012 $400,000 FY 2013 Land Acquisition $3,000,000 FY 2011 $3,000,000 FY 2012 $3,000,000 FY 2013 Economic Development $500,000 FY 2011 $500,000 FY 2012 $500,000 FY 2013 Economic Stabilization $3,000,000 FY 2011 $3,000,000 FY 2012 $3,000,000 FY 2013 Technology Replacement $800,000 FY 2011 $800,000 FY 2012 $800,000 FY 2013 After all general fund minimum reserve balances have been met excess unciesignated reserves may be set aside to provide additional funding in any designated reserve. Water & Sewer: A. An operating reserve balance at least equal to 25% of the cost of operation and maintenance in the annual budget for the then current fiscal year. B. Any surplus revenue in excess of this operating reserve minimum balance target is utilized to pay for all or a portion of the cost of capital projects. C. An annual transfer to the Renewal and Replacement Fund equal to 5% of the prior fiscal year's gross revenues (not cumulative). D. After deposit, surplus Renewal and Replacement funds above the Renewal and Replacement Fund Requirement are available to fund capital projects and these funds are used for this purpose in each year. FINANCIAL MANAGEMENT POLICIES Attachment B Stormwater: A. A working capital reserve of 10% of annual revenues shall be budgeted in the annual budget for the then current fiscal year. This amount is not cumulative. Policy #5: The City shall maintain adequate protection from loss due to property damage or liabilities of the City. The City shall maintain a risk fund for workers' compensation and propertylliability and ensure adequate resources are available to support the value of incurred but not reported (IBNR) claims. Policy #6* The City will not commit itself to the full extent of its taxing authority. Policy #7: The City will not fund ordinary recurring municipal services with temporary or nonrecurring revenue sources. Policy #8: Actual indirect costs associated with the operations of all funds other than the general fund will be identified and accounted against the operations of those funds and be reimbursed to the general fund. Policy #9: All fee schedules and user charges should be annually reviewed for adjustment to ensure that rates are equitable and cover the total cost of the service or that portion of the total cost established by policy of the Tamarac City Commission. The following framework is recommended by the administration to be applied to user fees: A. Total Fee Support (100%) Enterprise Funds: Water/Sewer Stormwater Special Revenue Funds: Building Fund B. Moderate Fee Support (40 - 100%) General Fund: Planning Zoning C. Parks & Recreation — Fees shall be established in accordance with Administrative Policy 04-03 Parks & Recreation Fees shall be adjusted annually to maintain, at a minimum, the same percentage of cost recovery as in the prior year. Policy #10: Payment in Lieu of Taxes shall be charged to the Utilities and Stormwater funds at the rate of 6% of revenue for the purpose of recovedng the costs associated with administering the use of, maintenance of, and ensuring the safe use of its streets, rights -of -way and public owned properties used by the utilities and storm water funds in providing and furnishing services to its customers, Policy #11: The financial burden on the City's taxpayers must be minimized through systematic annual program reviews and evaluation aimed at improving the efficiency and effectiveness of City programs. As such, the annual budget will be based on a City-wide work program of goals, implemented by departmental goals and objectives. Policy #12: The City's role in social service funding should be supplemental (addressing special or unique local needs) to the basic responsibilities of regional agencies. Funding shall be restricted to those funds provided through the Community Development Block Grant (C.D.B.G) program, Attachment B 111 il-T—Ail, lei T—All ilif_,l Z EW #Ti 14 Z k 920TK9314-1 Policy #13: City management is responsible for recovery of budgeted and non -ad valorem revenues as planned for in the budget. Management shall maintain adequate billing and claiming processes in order to effectively manage their accounts receivable systems in conformance with the fiscal plan and sound business principles. Policy #14: The City will annually review the Capital Improvements Element of the Comprehensive Plan to ensure that required fiscal resources will be available to provide the public facilities needed to support the adopted level of service standards. Policy #15: The City will annually prepare a six -year asset improvements program. The asset improvements program will identify the source of funding for all projects, as well as the impact on future operating costs. Policy #16: Every appropriation, except an appropriation for a capital improvement expenditure and multi -year grants, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for a capital improvement expenditure and a multi -year grant shall continue in force, i.e. not be required to be re -budgeted, until the purpose for which it was made has been accomplished or abandoned; the purpose of any such appropriation shall be deemed abandoned if three (3) years pass without any disbursement from or encumbrance of the appropriation unless extended by action of the City Commission. DEBT MANAGEMENT Policy #17: The City will issue and comply with a comprehensive debt management policy. INVESTMENT MANAGEMENT Policy #18: The City will issue and comply with a comprehensive investment management policy. ACOUNTS MANAGEMENT AND FINANCIAL PLANNING Policy #19: Accounting systems shall be maintained in order to facilitate financial reporting in conformance with generally accepted accounting principles of the United States. Policy #20: An annual financial audit shall be prepared in conformance with Florida state law. Policy #21: Financial systems shall be maintained in a manner that provides for the timely monitoring of expenditures, revenues, performance and receivables/billing status on an ongoing basis. Policy #22, Forecasting of revenues and expenditures for major funds shall be accomplished in conjunction with the development of the annual operating budget in accordance with recommended practices of the National Advisory Council on State and Local Budgeting (NACSLB). Policy #23: The City shall annually seek the GFOA Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation Award. ECONOMIC RESOURCES Policy #24: The City should diversify and expand its economic base in order to relieve the homeowner from the most significant share of the tax burden and to protect the community against economic downturns. This effort should include the aftraGtion of new businesses, retaining existing businesses, enticement of new residents, and tourism. Policy #25: The City should encourage economic development initiatives that provide growth in the tax base and employment for City residents as a first priority and in the County and region as a second priority.