SUBJECT/RECOMMENDATION:
Title
Approve the City of Clearwater Annual Operating Budget for the 2020/21 fiscal year and pass Ordinance 9408-20 on first reading. (APH)
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 2020/21 millage rate and the Capital Improvement Budget are an integral part of fulfilling these requirements.
On June 26, 2020, 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 2020/21 fiscal year. The City Manager presented the preliminary budget at the City Council meeting on July 16, 2020, for Council discussion and citizen input. In addition, a Special Budget Work Session was held on July 28, 2020 for Council discussion of the proposed budget.
The following changes have been made to the preliminary operating budget and are included in the ordinances for adoption of the operating budget:
• General Fund revenues reflect an increase of $105,630 to ad valorem tax revenues based upon 2020 preliminary property tax values received on June 29th which were greater than early estimates.
• Updates made in Miscellaneous and Transfer In revenues (net zero) to account for revenues in the correct categories.
• Various General Fund department budgets are being reduced representing operating savings found to help offset the increase to the Police Department for the cost of the Police Body Worn Camera Program which was approved by Council on August 6, 2020. This results in a net expenditure increase of $105,630.
• In the Stormwater Fund, utility fee revenue is reduced by $258,380 and transfers to capital projects are reduced by $1,451,950. These changes are being made to better align with rate study revenue estimates and planned project funding.
• In the Central Insurance Fund, transfers to capital projects is increased by $27,460 to fund the AED Replacement Program formerly in the General Fund Fire Department. The use of fund reserves is increased to cover this expenditure.
• In the Special Development Fund, ad valorem tax (road millage) revenues are increased by $5,290 based upon 2020 preliminary property tax values received from the County on June 29th which were greater than early estimates.
• Special Program Fund revenues and expenditures are increased by $270,794 to account for the transfer of General Fund revenue to fund the new Police Body Worn Camera Program approved by Council on August 6, 2020.
• In Other Housing Assistance Funds, revenues and expenditures for State Housing Initiatives Partnership (SHIP) are eliminated reflecting a decrease of $1,247,740. The State’s distribution of SHIP funds for fiscal year 2020/21 was vetoed statewide.