General Fund Fiscal Year 2009-10 1st Qtr. Budget Review City of Key West General Fund Fiscal Year 2009-10 1st Qtr. Budget Review October 1, 2009 - December 31, 2009

Cash Reserves FYE 2009 FYE 2008 Adjusted $12.1M FY 2008-09 Operating Revenue (Loss) ($ .52M)* FY 2008-09 Operating Expenditure Gain $ 3.0M* Duck Settlement ($ 8.0M) Duck Costs ($ .58M) FYE 2009 Adjusted $ 6.0M Approx. 60 Days of General Fund Reserve * Budget to Actual - Gain / (Loss) 2

General Fund Revenues Focus on Seven (7) Major Revenue Sources: Ad Valorem Telecommunications Amusement Franchise Fees Building Permits Half Cent Sales Tax Cruiseship Activity City Parking

Ad Valorem Change from the July 2009 ESTIMATED taxable value (DR 420) to the FINAL taxable value after the Value Adjustment Board (VAB): Adjustments resulted in a total increase of $5.45M in assessed value - an increase of $13,627 over budgeted revenue. Please note the use of word FINAL. According to the MCPA’s office, there remains a few parcels which may or may not protest their assessed values, however, it is believed such valuations will not materially change the total taxable assessed value. Much improvement over last year in which there was a considerable drop in assessed value and City budgeted revenue.

Telecommunications Represents seven different state & local communication services consolidated under one tax Voice, data, audio, video, cable and any other signals transmitted by any medium Collected and distributed by State of Florida

Amusement Franchise Fees Covers Buggy Bus and Conch Tour Train Franchise Fees Quarterly amounts reflected are for the collection months Not Date Posted

Building Permits Building Permits Fees for the 1st Qtr. of FY 2010 show improvement over 1st Qtr. Activity for last two (2) trailing Fiscal Years For the 1st Qtr of FY 2010 2,351 building inspections were performed. 1st Qtr. for FY 2009 saw 2,180 inspections performed. Collections for Business Tax receipts for FY 2010 remain on track to meet budget. HARC Permit Fees & applications are slightly ahead of FY 2009 numbers.

Half-Cent Sales Tax 1st Qtr actuals represent actual collections for the first three (3) months of the current and past two fiscal years. Posting dates may differ since there is a 30-45 day delay before remittance from State. So what does this slide tell us: We have established an FY 2010 budget which is properly stated and, provided we sustain FY 2009 actual collections for the balance of FY 2010, the City should meet budget.

Cruiseship Activity Port calls and passenger counts for both Outer Mole and Pier B exceeded scheduled projections. Mallory Square construction delays resulted in a loss of 15 ship arrivals. Approx. $116K 1st Qtr. Loss.

All City Parking (Less: KWB & PnR Facility) Includes Parking Meters, Mallory Square, Smathers Beach, Residential Parking and Downtown Employee Assistance Parking Excludes Key West Bight Parking Excludes Park & Ride Facility Excludes Parking Fines

Expenditures Overall, all General Fund expenditure accounts are in line with FY 2010 Operating Budget City Manager Contingency Budgeted at $250,000 Only $5,000 used 1st Qtr. Fuel Three Scenarios Prices hold at current price per gallon – Favorable Annual Budget Variance Sustained 10-15 % increase in price per gallon – Meet Annual Budget Sustained 50 % increase in price per gallon - $100K Loss to Annual Budget School Crossing Guard Program successfully transitioned to City responsibility Jan 31, 2010 Departmental Overtime budgets are within established budget limits

General Fund FY 2010 1st Qtr Summary With the exception of Cruiseship revenues, staff foresees no unfavorable trends which would unfavorably impact budgeted revenue numbers. Provided local, state and national economic conditions track similar or better than conditions of the 2nd, 3rd and 4th quarters of last fiscal year. January and February 2010 preliminary revenue numbers show no unfavorable occurrences or trends. 2nd Quarter Review scheduled for April 20th Workshop Unlike revenues, Management has significant influence over expenditures and will continue to ensure all measures are taken to control General Fund spending. Goals for FYE 2010: Improve Fund Balance from 60 days to 75-80 days by September 30, 2010. Market City’s expiring leasable properties at favorable market rates. Understand the impact of CY 2010 property value assessments Projected to drop another 15 percent.