SUBJECT/RECOMMENDATION:
Title
Approve the City of Clearwater Annual Operating Budget for the 2017/18 fiscal year and pass Ordinance 9076-17 on first reading.
Body
SUMMARY:
In accordance with Chapter 200 of the Florida Statutes and the rules governing Truth in Millage (TRIM) compliance, the City Council must hold two public hearings to adopt the budget. The adoption of this ordinance and the related ordinances adopting the 2017/18 millage rate and the Capital Improvement Budget are an integral part of fulfilling these requirements.
On June 30, 2017, the City Manager provided the City Council with a Preliminary Annual Operating and Capital Improvement Budget that outlined estimates of revenues and expenditures for the 2017/18 fiscal year. The City Manager presented the preliminary budget at the City Council meeting on July 20, 2017, and at the August 2, 2017 Special Budget Council meeting for Council discussion and citizen input.
The following changes have been made to the Preliminary Operating Budget and are included in the ordinances for adoption of the operating budget:
• The expenditure budget for the Parks and Recreation Department is increased by $1,265,420 to include the operating budgets of the Pier 60 and Sailing Center programs which were previously a part of the Marine and Aviation Department. This is due to a management change which was made after release of the preliminary budget and has a net zero effect on the total General Fund operating budget.
• The expenditure budget for the Water and Sewer Fund is increased by $145,850 to reflect transfers to the Capital Improvement Fund which weren’t included in preliminary figures. This represents impact fee funding in capital projects that are planned in the Capital Improvement budget for fiscal year 2017/2018.
• The expenditure budget for the Central Insurance Fund is decreased by $215,680 to reflect a reduction in workers compensation costs based upon updated estimates. This change reduces the use of Central Insurance Fund reserves which were budgeted to offset the increased cost of workers compensation insurance.
• In the Special Revenue funds, both revenues and expenditures are reduced by a total of $236,780 to reflect the adjusted total of CDBG, HOME and SHIP funds in the 2017/18 Annual Action Plan approved by the City Council on August 3, 2017.
A worksheet detailing these changes made to the final budget for fiscal year 2017/18 is attached.