Fiscal Year 2015/2016 Proposed Budget Overview CITY OF NEW SMYRNA BEACH – JULY 30 TH, 2015

The specific purpose for which ad valorem tax revenues are being increased in FY2015/2016 includes:  General Fund to absorb $716,065 in the expired CRA’s ongoing maintenance costs for property located in the expired CRA district.  CRA share of indirect cost allocation for services provided by General Fund administrative dept’s, now absorbed by the General Fund -$222,474  Wage increase for City employees ($354,689 in General Fund); (Negotiations underway with 3 Unions)  Implementation of Phase I Compensation Study – ($86,904 in General Fund) - (Negotiations underway with 3 Unions)  Increase in right of way maintenance contract - $245K increase from  Budgeted full cost of 2 police officer positions which were budgeted for only half of FY2015- $60,600 –(2 other positions were budgeted at 100%)  Increase in proposed General Fund budget capital improvements ($145,500) and capital equipment replacement ($466,518) – Total $612,018  The Proposed Operating Millage of will generate $9.9M in tax revenue, or 45.5% of the $21.7M General Fund budget. 2 Specific purpose for increase in ad valorem tax revenues

3 FY2015 (2014Tax Roll) FY2016 (2015 Tax Roll ) APrior Year Ad Valorem Proceeds 9,011,853APrior Year Ad Valorem Proceeds 9,737,542 BLess Prior Year: 1985 CRA TIF Contribution (583,671)BLess Prior Year: 1985 CRA TIF Contribution (652,386) CAdjusted PY Ad Valorem Proceeds 8,428,182CAdjusted PY Ad Valorem Proceeds 9,085,156 DCurrent year gross taxable value for operating purposes2,731,603,621DCurrent year gross taxable value for operating purposes2,924,320,102 ELess: Current Year Net New Taxable Value(57,789,788)ELess: Current Year Net New Taxable Value(54,908,956) FLess: 1985 CRA Dedicated Increment Value (180,457,346)FLess: 2014 CRA Dedicated Increment Value (10,827,961) GAdjusted Taxable Value 2,493,356,487GAdjusted Taxable Value 2,858,583,185 HCurrent Year Roll Back Rate HCurrent Year Roll Back Rate Current Rate % Over Rolled-Back5.80%12.53% Proposed Rate % Over Rolled-Back % Rolled-back rate calculation The rolled-back rate is calculated by dividing the Adjusted PY Ad Valorem Proceeds by the Adjusted Taxable Value (C/E). Because the 1985 CRA sunsets in FY2015, the CRA’s tax base of 180,457,346 now rolls into the City’s adjustable taxable value base for the 2015 tax roll (FY2016). This results in an additional increase in the City’s adjusted tax base (which is used as the denominator when calculating the rolled-back rate). The City’s 2015 adjusted tax base now includes an increase of 180,457,346 (1985 CRA Dedicated Increment Value - 7.1%) and an increase of 146,689,521 (2015 tax roll increase- 5.4%). This methodology treats the 1985 CRA TIF dollars as new tax revenue to the General Fund.

Changes since June 26 th Proposed FY budget modified to include changes since June 26 th  $612K Capital replacement items in the General Fund budget  Proposed operating millage rate reduced from TO – (At the June 26 th Commission Briefing of FY2016 proposed budget)  July 1 st Values increased from 2,922,610,293 to 2,924,320,102 from pre-preliminary tax roll released June 1 st,  Increased new CRA’s TIF revenue from the estimated $54,792 to $77,310 - based on the July 1 st Valuation released by PA.  Increased Stormwater Assessment Revenue by $57,563  Florida Health Care rate increase reduced from 1.5% to 0% - General Fund Savings- $19,055 4

Proposed budget modified to include changes since June 26 th briefing  FY2015/2016 City-wide proposed budget-$41,618,763 (FY 2014/15 revised budget $68,889,063- This figure includes capital projects carry forwards and budget revisions during FY2015 )  FY2015/2016 General Fund proposed budget -$21,762,169 (FY 2014/15 revised budget $22,636,768)  Taxable property values increased - (+7. 4%)  Includes the transfer of 6.75 positions from the CRA to the General Fund; 4 Maintenance Employees; the Economic Development/CRA Director; Neighborhood Planner; 50% of a Community Outreach Coordinator and the City’s Marketing Manager  FY15/16 proposed budget, includes capital improvements and equipment replacements of $612,018 in the General Fund. In addition to the General Fund, Staff is recommending the use of the revenue from the sale of property located on Julia and Sams to fund the General Fund capital items as well as the FY2014/2015 capital funds due from the School Board ($250K).  Utilizing $50K of Police Pension Credit towards the pension line-item expense.  The General Fund proposed budget was prepared utilizing an operating Millage Rate of

6 GOOD NEWS  Increase in new construction of $48,768,229 (Third highest of all Volusia County Cities) – reduced on July 1 st valuation by 2.8M from June 1 st, 2015 pre-preliminary tax roll.  Added over $6.1M in property value to the 2015 Tax Roll through annexations.  No change in FHC rates & BCBS insurance rate increased by 5.4%. Traditionally, city has experienced increases between 10% & 12%. (Human Resources has worked diligently on this item)  Plan changes made to Police & Fire Pension contracts has resulted in a reduction in the required City contribution when compared to each plan without any plan changes. The impact to the General Funds Budget for the two pension plans is still $1,904,056 in FY15/16.  Budget contains an increase in salaries across the board as well as Phase 1 Implementation of Compensation Study. – (Negotiations are underway with all 3 unions)  There are no new positions requested in FY  General Fund reserves are at 31% of FY2015 revised budget.  State-Shared revenues have increased based on the improved national and state economy.

7 Tax Rates: Description FY Current FY Proposed Percentage Change from FY to FY General Operating % 2005 Debt Service % Total City Millage % Property Taxes  FY2016 proposed budget was prepared using an operating millage rate of , which is a (0.18%) reduction when compared to FY2015’s operating millage rate of  The debt service millage rate is.4300 which is reduction of (4.9%) when compared to FY2015 debt service millage rate of.4519.

Millage Rate Ten Year History 8

General Fund Revenues by Source 9 General Fund Revenues FY2015/16 Proposed % of Total Property Tax Revenue $9,891, % Utilities Commission 3,541, % State Revenue Sharing Taxes 3,663, % Public Service Tax 1,802,1148.3% Franchise Fees 903,0974.1% Charges for Services 624,6452.9% Other Sources1,335,5806.1% Total $21,762,169100%

General Fund Expenditures by Function 10 General Fund Expenditures FY2015/16 Proposed % of Total Public Safety $11,377, % General Government 3,994, % Culture & Recreation 3,411, % Transportation - Streets 1,377,2486.3% Building & Maintenance 614,9832.8% Transfers Out to Debt Service 987, % Total $ 21,762, %

11 Fiscal Year CITY-WIDE STAFFING FY FY FY FY FY FY FY FY FY FY

GENERAL FUND DEPARTMENTS 12

GENERAL FUND DEPARTMENTS, cont’d 13

SPECIAL REVENUE FUNDS 14

15 OTHER FUNDS

FY2015/16 GENERAL FUND CAPITAL REPLACEMENT UPGRADE – PRIORITY 1 ITEMS  Information Technology (51302)  Cisco Routers - $18,000  Enterprise Licenses for VMWare 30,000  Setup redundant firewalls & connections (2) 20,000  2 Servers and small SAN 25,000 Total $93,000  Fire (52201)  Cardiac Monitor/Defibulators (5) $140,775 Total $140,775  EOC (52501)  Upgrade Internal Communications $56,857 Total $56,857

FY2015/16 GENERAL FUND CAPITAL REPLACEMENT UPGRADE, cont’d –PRIORITY 1 ITMES  Sports Complex (57501)  Toro Trap Rake $25,786 Total $25,786  Building & Maintenance (59101)  Ford Pick Up with Utility Bed $25,800 Total $25,800  Police (52101)  Police Interceptor Sedan $32,500  Total $32,500  Streets (54101)  Ford F150 Pickup Truck (2) $39,800  Tractor with Box Blade Sweeper Combo 52,000  Total $91,800 Total General Fund Capital Replacement Equipment Requests funded- $466,518

FY2015/16 GENERAL FUND CAPITAL REPLACEMENT UPGRADE, REQUESTED Capital Improvement Requests :  Streets (54101)  Barracuda Bridge $100,000 Total $100,000  Police (52101)  Training Room Podium Upgrade $16,000 Total $16,000  Sports Complex (57501)  Soccer Netting $29,500 Total $29,500 Total General Fund Capital Improvement Requests Funded- $145,500

FY2015/16 GENERAL FUND CAPITAL REPLACEMENT UPGRADE, cont’d- Capital Improvement Requests :  Sports Complex (57501)  Score Boards Replacement $66,105  Windscreen 22,120 Total $88,225  Building & Maintenance (59101)  Smith Street Building Roof $20,000 Total $20,000  General Government (51901)  2650 US Hwy 1 - Roof Replacement $98,000 Total $98,000 Total Capital Improvements requests currently unfunded: $206,225

SUMMARY  General Fund Proposed Operating Millage – (0.18% reduction when compared to FY2015 rate of )  Debt Service Millage (4.9% reduction when compared to FY2015)  Staff recommends proposed total City Millage of for FY

Budget Calendar  August 18 th Town Hall Meeting – 6pm-8pm – New Smyrna Beach Garden Club  September 9 th – Tentative First Public Hearing to adopt tentative millage – 6:00pm  September 22 nd – Tentative Second Public hearing to adopt final millage - 5:30pm 21