CITY OF COCOA BEACH

1. CITY OF COCOA BEACH FISCAL YEAR 2009 BUDGET IMPACTS March 5, 2008

2. FY 2009 BUDGET IMPACTS • Presented by: Charles H. Holland Jr., CGFO Finance Director cholland@cityofcocoabeach.com

3. OVERVIEW OF TOPIC • Description of Impacts • Methodology • Overview of General Fund • Review of Individual Items • Shortfall Analysis • Reserve Analysis • The Plan

4. DESCRIPTION OF IMPACTS • Amendment # 1 • Adds $25,0000 homestead exclusion for property values between $50,000 - $75,000, except for school taxes • Makes up to $500,000 of Save Our Homes benefit portable. • Caps assessed value increases for non-homestead property @ ten (10%) percent per year. • $25,000 exemption for tangible personal property • Economic factors (i.e. less visitors) • State shared revenue • Local option gas tax • 8th cent gas tax • Sales tax • OPEB* liability • Show current year liability • Fund accrued actuarial liability *Other post employment benefits

5. Portability – Rules somewhat complex; too soon even for preliminary estimate 10% valuation limitation – seems unlikely to have material effect

6. METHODOLOGY • Methodology • Amendment # 1 • Very preliminary estimates from Property Appraiser’s office • probability projections • Shared revenues • probability projections • OPEB liability • Actuarial study • Guidance from GASB • Review of budget (General Fund – major focus) • Capital projects analysis (cancellation & deferral) (preliminary) • Manpower – frozen positions • Expenditures – will be reviewed in formal budget process

7. OVERVIEW – GENERAL FUND HIGHLIGHTED ITEMS TO BE DISCUSSED IN DETAIL without “roll forward”

8. REVENUES $1,260,000* (rounded) $104,000** Ad Valorem taxes as 40.3% 36.1% percent of General Fund *High end of estimate detailing effect of Amendment #1 **Reflects economic downturn on shared revenues i.e. gas tax & sales tax

9. EXPENDITURES Contract increases & OPEB* Neutral (for now)** Capital (next slide) Bonds defeased *Other post employment benefits **Assumes price increases absorbed by savings

10. Personnel = nine “frozen” positions; • Capital = combination of cancelled & deferred projects • Metered Parking Fund • pays MHP revenue note • Maintenance. worker i.e. “beautification” • Public safety vehicles (an increased amount not shown because not known yet) *Maritime Hammock Preserve

11. Preliminary Review: Budgeting process not yet started.

12. REVENUE ENHANCEMENTS

13. Shortfall Analysis • Subject to: • Reviewing expenditures as a part of the established budget process, which has not yet started. (March –April) • No change in millage • Receiving more firm numbers from: • Appraiser (Notice of Estimate – June) (DR -420 July) • State (shared revenue – July)

14. Reserve Analysis • Savings in FY 2008 will provide sufficient coverage of shortfall.

15. Shortfall Analysis • Positives: • Proactive fiscal steps in FY 2008 provide cushion for projected shortfall. • Budget process not yet begun • Pitfalls & unknowns: • Capital deferrals cannot be sustained indefinitely • Gasoline prices/materials prices could be problem • Staffing reductions directly impact service capability • Economy • Further action by legislature

16. THE PLAN • Current plan; • Review budget in March/April/May • Move revenue enhancements forward • Fund FY 2009 shortfall with FY 2008 savings

17. THE PLAN • Strategic (long range) plan • Reduce GF dependence on single revenue (i.e. property tax) source. • Add new revenue sources • Analyze origins of costs • Review fees at more frequent intervals • Increase user fees to properly reflect costs (CPI = lagging indicator) • Review parking program (and other funds) • Fines unchanged since 1996 • Objective – Increase transfers to General Fund

18. Recap of Issues -- Now You Know • Description of Impacts • Methodology • Overview of General Fund • Review of Individual Items • Shortfall Analysis • Reserve Analysis • The Plan

19. Questions ?