Update from 6/3/15 Workshop and
Enterprise Funds
2015-16 Budget Workshop
June 10, 2015
Thomas Barwin, City Manager
John Lege, Director of Financial Administration
Sources and Uses of Funds
Residents
Businesses
2
Enterprise Funds
• Definition – Enterprise Funds are used to account for any
activity for which a fee is charged to external users for goods
or services
• REQUIRED if any one of three:
– Laws or regulations require that costs be recovered with fees and
charges, or
– Pricing policies set fees and charges designed to recover costs, or
– Activity is financed with debt that is secured solely by a pledge of the
net revenues from fees and charges
3
Enterprise Funds
• Water and Sewer Fund
• Revenue Account
• Renewal Replacement &
Improvement Account
• General Utility Reserve Account
• Utility Stores Account
• Interest and Sinking Account
• Bobby Jones Golf Course
Fund
Hall Fund
• Van Wezel Capital Surcharge
• Solid Waste Management
Fund
• Solid Waste Equipment
Replacement
• Municipal Auditoriums
Fund
• Parking Management Fund
• Bobby Jones Golf Course
Capital Improvement
• Van Wezel Performing Arts
4
Water and Sewer Utility System
•
Revenue Account – This is the general operating account for the water and sewer system.
•
Renewal, Replacement and Improvement Account – For paying the cost of unusual or extraordinary
maintenance or repairs, the cost of renewals and replacements, the cost of acquiring, installing or replacing
equipment, the cost of improvements, and providing for the local share of any Federal or State assistance
program.
•
General Utility Reserve Account – To pay the cost of improvements, to pay the cost of purchasing or
redeeming bonds, to pay the principal and interest on any obligations subordinate to the bonds issued under
the Resolution, to make up any deficiencies in any of the Accounts and to pay the cost of any item qualifying
as an expenditure of the Renewal, Replacement and Improvement Account.
•
Utility Stores Account – To account for the operation of the utility system storeroom.
•
Interest and Sinking Accounts – To account for the accumulation of resources for the payment of principal,
interest and fiscal charges for long-term debt.
5
Water and Sewer Utility
• FY2015-16 Revenues Increase $3.4M
– Increase in Water Sales - $1.03M
– Increase in Sewer Collection Fees - $2.14M
– Increase in Other Misc. Revenues – $.21M
• FY2015-16 Expenses Decrease ($6.5M)
–
–
–
–
–
Increase in Revenue Account - $3.2M
Decrease in RR&I Account – ($.9M)
Decrease in the General Utility Reserves Account – ($9.0M)
Increase in Utility Stores Account - $.2M
Decrease in Interest and Sinking Account – ($.07M)
• Rates – Water $30.24; Sewer $49.81
• Fund Balance Projected to be $15.3M at 9-30-16
6
Water and Sewer Utility
• Approved 6% rate increase for Fiscal Year 2015-16
– Rate increase will become effective September 1, 2015
– Typical single family residential bill will increase $4.53 for FY 2015-16
– New rate continues to maintain a competitive position with surrounding utilities
• Continued effort towards maintaining a sustainable and efficient
Utility
– $60 million in Capital Projects scheduled for the next five years
– Maintain a $5 million dollar Capital Reserve
– Maintain at least a $5.4 million dollar Operating Reserve (3 months)
• Financial Management Plan
– 10 year plan anticipates no issuance of debt assuming no major inflationary
increases. (Depending on the Direction for Lift Station 87)
– Proposed plan eliminates $54 million of outstanding indebtedness by FY 2040
– Fitch rating “AA”; Moody’s Rating “Aa2”
7
Income to the Utilities
Department:
Utility Bills
Utility Service Related Fees
Interest Earned
Utility Bills:
Charges for water, reclaimed
water, sewer service
Utility Service Related Fees: Connections, Service Turn Ons,
Service Turn Offs, Late Fees
Water and Sewer Expense Summary
Operation, Maintenance, Capital (other than CIP) Costs
Water System
$11,957,404
Sewer System
11,688,495
Debt Service (including Paying Agent Fees)
4,375,943
Renewal, Replacement & Improvement (excluding CIP projects)
4,485,331
Capital Improvements Program
13,541,000
Total Water and Sewer Expenses
$46,048,173
9
FACTS ABOUT DEBT:
• After covering operating costs Debt Service is paid first before any other fund.
• Relatively fixed amount, doesn’t change unexpectedly:
FY 13-14 $5,766,926
FY 14-15 $5,767,425
FY 15-16 $4,341,943
• We are currently evaluating Request for Proposals for a Bank Loan to refund the
Series 2005 Water & Sewer Bonds. This is projected to reduce the annual debt
service payments by $45,000 per year.
• Outstanding amount of debt within proposed 2015/16 budget $50,835,000
10
OPERATION & MAINTENANCE COSTS
UTILITIES STAFF & SERVICES RECEIVED FROM SUPPORT DEPARTMENTS
ELECTRICITY – $2.0 million
CHEMICALS - $655,000
FUEL - $278,000
REPAIR PARTS - $717,000
DRINKING WATER TREATED & PROVIDED = 2.1 BILLION GALLONS ANNUALLY
WASTEWATER COLLECTED & TREATED = 2.2 BILLION GALLONS ANNUALLY
WATER MAIN REPAIRS – FY 2013/14 - 176
WASTEWATER MAIN REPAIRS – FY 2013/14 - 23
FY 13 – 14 $20,786,162 (Actual)
FY 14 – 15 $21,728,653 (Amended Budget)
FY 15 – 16 $ 21,781,241 (Requested Budget including Budget Issues)
INCREASE DRIVEN BY: Budget Issues
11
CAPITAL IMPROVEMENTS PROGRAM
 ONGOING REINVESTMENT TO MAINTAIN UTILITY EXISTING INFRASTRUCTURE $120
MILLION OVER NEXT 10 YEARS
 FUNDED BY RATE REVENUE……NO NEW DEBT
 ANNUAL RATE INCREASE OF APPROXIMATELY 4% NEEDED TO MAINTAIN FUNDING
LEVEL
FY 13 – 14
$16.3 Million
FY 14 – 15
$17.8 Million
FY 15 – 16
$13.5 Million
12
EMERGENCY PREPAREDNESS
HURRICANES AND
STORM EVENTS
MAJOR LINE
FAILURES
MAJOR EQUIPMENT
FAILURES
$5 M CAPITAL
RESERVE
_________________
3 MONTH O&M
COSTS $5.4 M
13
Water and Sewer System – Budget Issues
• Additional Personnel
– Utilities Capital Projects Manager - $39,923(net)
• $66,758 of this salary will be charged back to Projects
– Engineering Technician III
• Utilities Development & Building Permit Plans Review – $60,343
• Utilities Locates - $117,343
– Includes Locating Equipment of $27,800 a vehicle $27,000, and a computer $3,200
– Engineering Assistant $50,361
– Reliability Maintenance Planner I - $60,635
14
Bobby Jones Golf Course
This fund is used to account for the operations of the Bobby
Jones Golf Course. The golf course includes two 18-hole
championship courses, and a 9-hole executive course. Additional
amenities offered include a 12-station driving range, three putting
greens, a pitching area, continuous concrete cart paths, a quaint
golf shop and a full service restaurant/bar. The Bobby Jones Golf
Course is financed entirely by user charges.
15
16
History
• 1926: Opened 18-hole Sarasota Municipal Golf
Course designed by golf architect Donald Ross
• 1927: Dedicated by legendary amateur golfer
Bobby Tyre Jones, Jr. and renamed in his honor
• 1952: Added 9 holes = 27 championship holes
• 1967: Added 9 holes = 36 championship holes
– Known today as the American & British Courses
• 1971: Clubhouse Built
17
History
• 1977: Opened John H. Gillespie 9-hole Executive
Course, honoring Sarasota’s first Mayor
• 1988: American Course renovated by golf
architect Ron Garl
• 1992: Reuse Irrigation System installed
• 1998: Locker & Cart Barns Renovated
• 1999: American Golf Course greens re-grassed
• 2008: British Golf Course greens/tees rebuild
18
Present
• 2005-2014: 10 year Avg. Rounds = 124,000/yr.
– Prior to recession rounds were in the 140,000’s
– During recession rounds dropped to low 100,000’s
• Recovery: Winter Rounds (Jan.–Mar.)
– 2015 = 44,608
– 2014 = 39,877
– 2013 = 39,347
• Course Maintenance:
– Current agreement with ABM Landscape & Golf Services since 2005
– Set to expire Feb. 3, 2016 with possible 1 yr. extension
• Restaurant Concession License:
– ITN in progress
– Two proposals received
• Non-Golf Activities:
– High School Cross Country Track Meet
– Disc Golf Tournaments
– 4 mile walk/run competitions
Bobby Jones Golf Course Operating Account
• Potential Transfer in FY15 from Capital to Operating in the amount
of $110,000, to cover estimated deficit caused by revenue shortfall.
• Proposed Rate increase
• FY16 Increase in Revenues $12.3K
–
–
–
–
Green Fees, Cart Rentals, & Range Fees-($33.4K)
Pro Shop $19K
Equipment Rental $3K
Other Misc. Revenue, Net $23.7K
• Increased Expenses $30K
– Personnel – $5K
– Operating – $31K
– Merchandise for resale - $13K
– Return on Investment – ($19K)
• Estimated Ending Fund Balance in FY15 - $0
• Proposed Ending Fund Balance in FY16 - $42,654
20
Bobby Jones Golf Course (Concluded)
• 2015-16 Rates
– Proposed Rate Increases (estimated 105,000 rounds)
•
•
•
•
•
Greens Fees: 46¢ to $2.33
Riding Carts: 93¢
Pull Carts: 47¢ & 94¢
Specials/BJGC Summer Card: 46¢ to 94¢
Last across-the-board rate increase was in 2012
• Capital – FY16 Needs
– Upgrade Cart Barn electrical system: $11.5K
– Renovate British/American Cart Paths: $22.5K
– Annual Golf Cart Replacement: $71K
21
Van Wezel Performing Arts Hall
For 4 consecutive years, the Van Wezel has been ranked the
Number 1 Performing Arts Hall in North America in its category
(2,000 seats) by "Venues Today" the industry journal and now
Number 3 internationally.
The Van Wezel is funded through a combination of ticket sales,
other earned income such as concessions and rentals,
contributed income, grants, and sponsorships.
22
Van Wezel Performing Arts Hall
• Operating Fund
– No City subsidy since FY 2010
– Estimated to have a surplus for the 7th year in a row
– Budgeted Revenues for FY2015-16 are expected to be $1.9M higher
than those estimated for the FY2014-15 season.
• Performance Revenues are directly related to Performance Expenses
– Budgeted Expenses for FY 2015-16 are expected to be $1.9M higher
than those estimated for the FY 2014-15 season. This is mainly due to
Production/Marketing Costs.
• A budget issue of the addition of a full-time Accountant 1 is being requested
- $44K
• Capital Surcharge Fund
– Planned Expenses of $663K
– Ending Fund Balance of $686K
23
Van Wezel Performing Arts Hall
• Successes for FY15
– 87% of all Main Stage shows made a profit
– 46 shows of the 93 shows had sales over 90%
– Jersey Boys broke all Van Wezel Box Office records
• Budget/Financial Information
– Broadway Subscriptions for FY16 season are ahead of FY15 season by
27% as of this same time last year
– Highest ticket sales, over $8.3 million
– 83% of Gross Potential
– 94% Earned Income vs 6% Unearned Income
– FY15 Spending about $1.3 million in Capital Improvements
24
Van Wezel Performing Arts Hall
City Subsidy
Periods of 2007 to 2015
•
Fiscal
Year
Budgeted
Amount
Rec’d
2007
1,400,000 1,280,000
Surplus
(before
transfer)
Transfer
Amount
to Capital
Surplus
(after
transfer)
0
0
0
2008
590,830
1,013,100
0
0
0
2009
740,000
350,000
0
0
0
2010
595,000
200,000
158,000
0
0
2011
150,000
0
359,000
0
0
2012
0
0
546,000
0
0
2013
0
0
482,000
350,000
132,000
2014
0
0
458,000
350,000
108,000
2015
0
0
1,242,000 600,000
642,000
Est.
When the new director arrived the projected subsidy was $1,800,000
but was reduced to under $1,100,000 FY 2008.
25
Van Wezel Performing Arts Hall
• New Capital Projects
– Orchestra Shell (Grants: Selby & Sudakoff Foundations)
– Ladies Restroom Renovations (Grants: VWF)
– New Carpeting in Hall, Lobbies & Grand Foyer
• Accomplished Capital Projects
–
–
–
–
Sun Sails/Terrace Area
Updating of Marquee
New Sound System
New Seats
• Special Awards/Recognitions
– For the 4th time, ranked as the #1 venue in North America in
the 2,000 seat category by Venues Today (industry mainstay
publication)
– Number 1 tourist attraction in Sarasota County
– 45th Anniversary Concert with Ringo Starr
– Annual Gala with Sarah McLachlan
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Van Wezel Performing Arts Hall
• Grant Awards for FY16 (as of 06/05/15)
– Mainstage: TDC, Van Wezel Foundation, Beattie Foundation
– Education: Van Wezel Foundation, NEA, Evelyn Sadlier Jones, Russell
Foundation, Plantation Community Foundation, Woman’s Exchange,
Publix, Bladel Foundation, AT&T, Kates Foundation
• Education & Outreach
– About 25,000 students attend performances yearly
– Teacher Workshops/Master Classes
– Access to the Arts: Family Nights; Total Access; Senior Access and
Military Access
– Friday Fests – 4 per summer for the community
27
Solid Waste Fund
• Solid Waste Management plans, develops and
implements a system of solid waste collection
throughout the City that provides a level of service that
protects public health and the environment while
meeting the requirements of Local, State and Federal
regulations.
28
Solid Waste Division Budget
Presentation
Solid Waste Operations
• 4 Commercial Route Drivers (Refuse Eq. Opr. (FA)) with 6 Commercial trucks, 2 roll-off trucks and
specialized fork truck
• 9 Residential Route Drivers (Refuse Eq. Opr. (SA)) with 11 Residential trucks
• 1 Parks and Streetscape Trash collector (Refuse Eq. Opr. (SA)) and 2 part-time assistant trash
collectors with specialized collection vehicles
• 1 Maintenance Mech. II
• 1 Admin. Coordinator and 1 Senior Customer Service Rep.
• 1 Supervisor, 1 Crew leader II and 1 Crew leader I
29
City of Sarasota Transfer Station
Managed by Waste Management Inc. of Florida
Currently working on negotiating terms for a agreement to design a new Transfer Station
30
City Wide Residential Recycling
Operated by Waste Management Inc. of Florida
The Current contract agreement with Waste
Management Inc. of Florida will be up for
renewal on September 1, 2017.
They provide 2-20 gallon bins for recycling, yard
waste, bulk items, electronic waste and special
waste collection.
Also, assist with yearly community day drop off
event at North Sarasota Redevelopment office
31
Solid Waste Fund
• Solid Waste Management
Operating (Including Street
Sweeping)
– Total Revenues have increased
by $578K
• This includes a transfer in from the
Gas Tax fund of $200K and,
• 3% increase in Refuse Fees
– Total Expenses have decreased
by $147K
• Personnel has been reduced by
63K (primarily due to
reclassification of 25% support of
Public Info. Officer and 50%
support of Sustainability
Coordinator to “Transfer Out”
acct.)
• Operating and Capital costs have
been reduced by $46K
– 2015-16 Rates
• Residential Rate - $22.31 (3%
increase)
• Commercial Rate increase of 3%
• 1st rate increase in 9 years
– Fund Balance
• $2,085,931
32
Solid Waste Equipment Replacement
– Total Expenses $775,000
– Total Revenues $1,150,000
• This is a transfer from the Solid
Waste Operating Fund
• Replacement of one 2007 EVO $200,000
• Replacement of one 2008 EVO $200,000
• Replacement of Sterling
Fork/Container Truck - $125,000
• Roll out carts & containers & bulk
Containers - $250,000
– Total Fund Balance $506,103
33
Municipal Auditoriums
• The Municipal Auditorium and Bayfront Community Center were
completed in 1938 as a PWA project, and, after a second floor was
added to the Community Center in 1940, resulted in over 20,000 sf of
finished auditorium area between Tamiami Trail and the Sarasota
Bayfront. The Municipal Auditorium is a grand 'deco-moderne'
barrel-vaulted auditorium of over 16,000 sf that faces east onto
Tamiami Trail while the two-story Bayfront Community (or 'John
Chidsey Center') faces west over the Bayfront.
• The Payne Park Auditorium is a 5,000 square foot facility
constructed in 1962 and located on the west side of the City's 29acre Payne Park.
34
MUNICIPAL AUDITORIUMS
Division Budget Presentation
35
Municipal Auditorium-Recreation Club
was built during the Great Depression in
1937 as a WPA project. Her Grand
opening was on February 24, 1938
for the Sara de Sota Celebration
One of the few remaining examples of
“Moderne” Art Deco style architecture
on the West Coast of Florida
36
1969 the “old” Municipal
Auditorium-Recreation Club
is remodeled and became the
“new” Civic Center Exhibition
Hall
In the early 1990’s the City acquires Grant Funding from the
Department of State, Division of Historical Resources to renovate the
old gal; back to her original glory and design!
1995 “Municipal AuditoriumRecreation Club” was placed on
the National Register of Historic
Places.
37
For seventy seven years the Municipal Auditorium-Recreation
Club has continued to provided a place for the community to
gather and engage!
TODAY’S events include:
• Antique, Coin, Jewelry, Orchid, Stamp and Vintage
Shows
• Fund Raisers
• Galas
• Political Rallies
• Public Forums
• Dances
• Private Parties and
more!
38
The Recreation Club also know as
“Bayfront Community Center “
host meetings, wedding receptions,
spiritual services in addition to
three weekly dance programs.
39
Payne Park Auditorium , formerly known as, the
Mobile Home Park Auditorium was built in the1960’s.
It serviced the social needs
of the Mobile Home
Park residents for concerts,
dances, meetings, movies,
parties, holiday gatherings
and more.
During FY 2002, the City’s
Mobile Home Park was permanently closed. However, the
Auditorium remained open for use by community organizations
and private individuals.
40
In 2013, due to declining utilization and deferred capital improvements,
the City discussed closing Payne Park Auditorium and potentially
demolishing the facility.
The citizens voiced their opinion; they did not want the building
demolished and wanted it be remain open as a rental venue for the
community.
Currently there is one annual
Lease holder that utilizes the
Auditorium once per week. In
addition to a handful of rentals
for meeting space and
private parties.
41
Municipal Auditoriums Division Operations
 All maintenance, event setup, supervision and breakdown of three independent
rental venues- Municipal Auditorium, Bayfront Community Center and the
Payne Park Auditorium.
 Produce six City sponsored Vintage Fairs to include:
 Sales of vendor space, event promotion, admission sales, event setup and
management.
 Produce one weekly Senior Dance Program
 Ticket sales, provide entertainment and refreshments
 Operate the in-house concession stand at Municipal Auditorium
 Manage hundreds of annual events leased to private individuals, corporations and
non-profits.
Staffing: 1 full-time Auditoriums Manager
50% of full-time Administrative Supervisor
2 full-time Maintenance Specialist II
1 part-time Maintenance Specialist II
42
Municipal Auditoriums
• Municipal and Bayfront
Auditoriums
– Revenue Decrease ($30K)
• Rentals – ($35K)
• Sponsored Events – $4K
• Concessions - $1K
– Expense Decrease ($49K)
• Personnel Costs – ($16K)
– Includes a budget issue for a
Crew Leader I - $57K
– Decrease cause by redistribution
to Payne Park Auditorium
• Misc. Operating Costs ($25K)
• Capital Equipment Needs
($8K)
– General Fund Subsidy $134K
• Increase of $6K
• Payne Park
– Revenue Increase $7K
– Expense Increase ($33K)
• Personnel - $52K
– Redistribution of Personnel between
the Auditoriums
• Misc. Operating Costs ($19K)
– General Fund Subsidy $61K
• Increase of $27K
• The FY2015-16 CIP contains major
reconstruction improvements for
both the Payne Park Auditorium
and the Municipal/Bayfront
Auditorium
43
Parking Management
• The Parking Management Division is responsible for managing three
public parking structures, seventeen (17) public parking lots, over
2,500 designated on street parking spaces spanning eight (8)
parking districts. The Division is responsible for the issuance and
monitoring of permits for all Taxi, Limousine, Pedi-cab and Low
Speed Vehicles transportation companies operating within the City,
and enforcement of City codes and regulations pertaining to public
parking city-wide. The Division has been developing a long-term
citywide parking plan that is sustainable and complementary to the
community, as well as addressing the fundamental goal of operating
the Parking Division as a self-sustaining enterprise fund.
44
Parking Management
• Revenue Increase from Budget $357K
– Includes an “Issue” to implement paid
parking in the Palm and State Street garages •
during special events and high traffic
periods. (25 Calendar events considered)
• Entry Fee of $5.00
• Anticipated Revenue - $111K
– Includes an “Issue” to implement a fee for
charging electric vehicles within the Palm
and State Street garages
• A flat fee of $3.50 to be charged
• Net Revenues ($8,352 less 1 time cost for
equipment of $6500) - $2K
– Parking Permit Fee Increase (from $10 to
$20 per month) - $50K
– Increase in Parking Fines - $135K
• Includes revenue generated from “Issue-Parking
Enforcement Specialist) - $53K
– Miscellaneous increases in current Parking
fees - $59K
Expense Increase from Budget $274K
– Increase in Personnel $183K
• Includes an issue for increasing personnel
– Full –time Revenue Collection Specialist for the
POD – $45K
– Parking Enforcement Specialist – $42K
– Increase in Operating Costs $80K
• The State Street Garage is budgeted to be
operational for the first full fiscal year
– Increase in Capital Costs $10K
• Includes $6.5K for Electric Vehicle $CostCharging Equipment
• Reduction in Subsidy from the General
Fund - $80K
45
Next Budget Workshop June 29, 2015 @ 5:00pm
Agenda:
1. Update from 6/10/15 Workshop
2. General Funds