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HomeMy WebLinkAboutCity of Tamarac Ordinance O-2017-009Temp. Ord. #2363 September 25, 2017 Page I of 3 CITY OF TAMARAC, FLORIDA ORDINANCE NO. 0-2017--Oq 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 2018; 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 2018, all as required by Section 7.02 of the Charter of the City; and I WHEREAS, the City Commission in duly called public meetings, reviewed the budget and, having made certain amendments thereto, approved a tentative budget on September 13, 2017; and WHEREAS, the City Commission authorized a final public hearing on September 25, 2017, at 5:05 pm. at the Tamarac City Hall, 7525 N.W. 88th 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 City of Tamarac for the Fiscal Year 2018 so that the business of the city may be conducted on a balanced budget, and has also deten-nined 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 2018 be adopted; and 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 2018. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA: Temp. Ord. #2363 September 25, 2017 Page 2 of 3 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. I Section 2: That the City of Tamarac, Florida operating budget, revenues and expenditures, and the Capital Budget for the Fiscal Year 2018, 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 ' ): 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 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, which are attached hereto and incorporated herein by reference, are hereby adopted. Section 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 Temp. Ord. #2363 September 25, 2017 Page 3 of 3 applications of this ordinance than can be given affect,%vithout the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. Section 9: That this Ordinance shall become effective immediately upon its passage and adoption. PASSED, FIRST READING, 13th DAY OF September, 2017, PASSED, SECOND READING, ATT RAT TEUFt- L, r t CITY CLERK I HEREBY CERTIFY that I have approved this ORDINANCE as to form: Dj5UA--_ SAMUEL S. GOREN CITY ATTORNEY 25th DAY OF September, 2 17, In'. M. N PAVA 111.14 M L% ki 0 0 10 RECORD OF COMMISSION VOTE: 1ST Reading MAYOR DRESSLER 14-1-0 DIST 1: COMM. BOLTON DIST 2: COMM. GOMEZ DIST 3: COMM. FISHMAN DIST 4: VIM. PLACKO RECORD OF COMMISSION VOTE: 2ND Reading MAYOR DRESSLER 4PZ-7 DIST 1: COMM. BOLTON to-, DIST 2: COMM. GOMEZ DIST 3: COMM. FISHMAN DIST 4: VIM. PLACKO CITY OF . i • iATTACHMENT FY 2018 BUDGET ORDINANCE FUND TO ##2363 Taxes $ 33,339,983 Licenses & Permits 4,950,372 Intergovernmental Revenue 8,639,176 Charges for Services 1,636,685 Fines & Forfeitures 1,492,717 Miscellaneous 1,280,301 Appropriation From Fund Balance 4,840,321 Other Sources 6,725,476 T�� A •�Y h � IPG , Iu a 6 N i« Expenditures City Commission $ 692,713 City Manager 2,272,766 City Attorney 600,380 City Clerk 610,326 Finance 3,168,763 Human Resources 1,403,701 Community Development 2,090,327 Police 17,005,089 Public Works 8,360,596 Parks & Recreation 5,599,649 Information Technology 2,005,990 Intergovernmental Revenue $ 55,550 Emergency Service Fees 2,020,000 Fire Inspection / Safety Fees 627,487 Special Assessment 13,077,475 Interfund Transfers 6,624,908 Appropriation from Fund Balance 679,252 Expenditures Personal Services $ 17,223,926 Operating Charges 4,005,398 Capital Outlay 158,848 Debt Service 342,440 Other Uses 1,332,495 Reserves 21,565 ii Page 1 of 7 1 CITY OF TAMARAC, FLORIDA ATTACHMENT A FY 2018 BUDGET ATTACHMENT TO TEMPORARY ORDINANCE #2363 I Revenues Charges for Service Interest Income Appropriation From Fund Balance FY 2018 BUDGET ORDINANCE TO #2363 $ 200,000 5,075 1.132, 980 Operating Expenses $ 150,000 Capital Outlay 541,705 Licenses & Permits $ 2,717,851 Charges for Services 14,000 Fines & Forfeitures 201,000 Miscellaneous 70,000 Interest Income 4,060 Appropriation From Fund Balance 439,340 Expenditures Personal Services $ 2,395,807 Operating Expenses 915,598 Other Uses 100,977 Reserves 33,869 Page 2 of 7 CITY OF TAMARAC, FLORIDA ATTACHMENT FY .BUDGET ATTACHMENT TO TEMPORARY ORDINANCE #2363 FY 2018 BUDGET ORDINANCE FUND TO #2363 Revenues Intergovernmental Revenue $ 194,000 Expenditures Personal Services $ 20,815 Revenues Intergovernmental Revenue $ 338,151 Expenditures Personal Services $ 87,580 Grant Revenues Personal Services $ 28,599 Operating Expenses 7,400 nthpr t )sps 233.412 Revenues Intergovernmental Revenue $ Expenditures Personal Services $ 82,910 6,121 Revenues Appropriation From Fund Balance $ 64,100 $ 64,100 Page 3 of 7 fl [l CITY OF TAMARAC, FLORIDA ATTACHMENT A FY 2018 BUDGET ATTACHMENT TO TEMPORARY ORDINANCE #2363 FY 2018 BUDGET ORDINANCE FUND TO #2363 Revenues Miscellaneous 150,000 Expenditures Impact Fees $ 75,000 Appropriation From Fund Balance 175,000 Expenditures Other Uses 250,000 Interfund Transfers $ 2,591,670 Interest Income 2,030 Expenditures Interfund Transfers $ 1,315,256 Interest Income 4,060 Appropriation From Fund Balance 238,112 T Expenditures Capital Outlay $ 1,485,646 Interfund Transfers $ 928,824 Expenditures Capital Outlay $ 928,824 Page 4 of 7 CITY OF TAMARAC, FLORIDA ATTACHMENT A FY 2018 BUDGET ATTACHMENT TO TEMPORARY ORDINANCE #2363 Revenues Taxes Federal Grant State Grant Interfund Transfers Appropriation From Fund Balance Operating Expenditures Capital Outlay FY 2018 BUDGET ORDINANCE TO #2363 $ 900,000 200,000 1,290,169 2,635,203 1,587,299 $ 70,000 6,312,671 Revenues Interfund Transfer $ 1,100,473 Expenditures Capital Outlay $ 696,973 dnA tinn Appropriation From Fund Balance $ 603,412 Expenditures Other Uses -- - $ 603,412 Interfund Transfers $ 701,240 Expenditures Capital Outlay $ 701,240 Page 5 of 7 1 1 n E CITY OF TAMARAC, FLORIDAATTACHMENT a FY 2018 BUDGET �' Revenues Interfund Transfers Appropriation From Fund Balance FY 2018 BUDGET ORDINANCE TO #2363 300,000 375,000 Operating Expenses $ 50,000 Debt Service 625,000 Stormwater Drainage Fees $ 5,712,117 Investment Income & Misc Rev 39,500 Interfund Transfers 342,467 Expenses Personal Services $ 1,797,229 Operating Expenses 2,306,847 Capital Outlay 422,000 Debt Service 399,800 Contingency 1,018,208 Reserves 150,000 Charges for Services $ 26,287,775 Interest Income 70,000 Miscellaneous 2,250 Expenses Personal Services $ 5,843,689 Operating Expenses 14,202,930 Capital Outlay 787,100 Other Uses 2,607,527 Debt Service 1,372,360 Contingency 1,446,419 Reserves 100,000 Page 6 of 7 CITY OF TAMARAC, FLORIDA ATTACHMENT A FY 2018 BUDGET ATTACHMENT TO TEMPORARY ORDINANCE #2363 FY 2018 BUDGET ORDINANCE FUND TO #2363 Interfund Transfers $ 2,590,000 Expenses Revenues Charges for Services $ 6,517,675 Expenses Operating Expenses $ 6,306,295 Charges for Services $ 1,966,793 Interest Income 35,100 Miscellaneous 15,000 Appropriation from Net Assets 946,877 Expenses, Personal Services $ 490,979 Operating Expenses 2,226,506 Contingency 246,285 Page 7of7 CITY OF TAMARAC, FLORIDA ATTACHMEAT B FY 2018 BUDGET ATTACHMENT TO TEMPORARY ORDINANCE 2363 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. NACSLB Principal 2, Element 4, "Adopt Financial Policies" addresses the need for jurisdictions to establish policies to help frame resource allocation decisions. As such, the following are five categories of recommended financial management policies developed within these guidelines with the associated measurable benchmarks for adoption by the City Commission. The five categories are Operating Management, Debt Management, Investment Management, Account Management and Financial Planning & Economic Resources and are detailed below: 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. L 1. Property taxes should be budgeted at 95% of the Property Appraiser's estimate as of July. 1.2. 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. 1.3. Franchise fee revenue should be budgeted at 95% of the maximum estimate prepared by Financial Services Department. 1.4. 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. 3.1. 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. 3.2. 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. CITY OF TAMARAC, FLORIDA ATTACHMENT B FY 2018 BUDGET ATTACHMENT TO TEMPORARY ORDINANCE 2363 FINANCIAL MANAGEMENT POLICIES Policy #4: The City shall maintain a minimum undesignated fund balance in the General Fund of 5% of annual expenditures, including Interfund transfers out. Reserve hinds 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. Reserved/Designated: Disaster Reserve The disaster reserves are to be used in emergency situations and as a match for Federal Emergency Management Agency (FEMA) funds. Type of Reserve FY 201-78 FY 20189 FY 204920 Disaster Reserve $1,000,000 $1,000,000 $1,000,000 Reserves shall be used to fund emergency replacements and/or damaged equipment vehicles only as categorized below: Type of Reserve FY 201-8 FY 20189 FY 204920 Facilities Maintenance $400,000 $400,000 $400,000 Land Acquisition $3,000,000 $3,000,000 $3,000,000 Economic Development $500,000 $500,000 $500,000 Technology Replacement $100,000 $100,000 $100,000 After all general fund minimum reserve balances have been met; excess undesignated reserves may be set aside to provide additional funding in any designated reserve. Water & Sewer Fund: • An operating reserve balance of three months of operating and maintenance expenses or a minimum of $5,000,000. • 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. Stormwater Fund: • 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 property/liability and ensure adequate resources are available to support the value of incurred but not reported (113NR) claims. Policy #b: The City will not commit itself to the full extent of its taxing authority. E CITY OF TAMARAC, FLORIDA ATTACHMENT R FY f •BUDGET FINANCIAL MANAGEMENT POLICIES Policy #7: The City will not fund ordinary recurring municipal services with temporary or nonrecurring revenue sources. Policy #8: The City will maintain a cost allocation process by which the General Fund is reimbursed for actual indirect costs associated with providing services to other operating funds. Policy #9: All fee schedules and user charges should be reviewed annually 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: 9.1 Total Fee Support (100%) Enterprise Funds: • Water/Sewer • Stormwater Special Revenue Funds: • Building Fund 9.2 Moderate Fee Support (40 - 100%) General Fund: * Planning • Zoning 9.3 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 Stoftnwater funds at the rate of 6% of revenue for the purpose of recovering 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 012: The City's role in social service funding should be supplemental (addressing special or unique local needs) to the I basic responsibilities of regional agencies. Funding shall first be dated to derived from these funds provided through the Community Development Block Grant (C .) 'C{ DBG'aprogram. CITY OF TAMARAC, FLORIDA ATTACHMENT B FY 2018 BUDGET ATTACHMENTTO TEMPORARY ORDINANCE 2363 FINANCIAL MANAGEMENT POLICIES 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 management program. The asset management 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 capital improvement expenditures 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. 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. ACCOUNTS 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. CITY OF TAMARAC, FLORIDA ATTACHMENT B FY 2018 BUDGET ATTACHMENT TO TEMPORARY ORDINANCE 2363 FINANCIAL MANAGEMENT POLICIES 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. 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 attraction 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. C