2021 BUDGET AUGUST 3, 2020 BUDGET OVERVIEW CURRENT YEAR FOCUS - - PowerPoint PPT Presentation

2021 BUDGET

AUGUST 3, 2020

BUDGET OVERVIEW

• CURRENT YEAR FOCUS
• PROCESS IMPROVEMENT
• CORRECTLY IDENTIFYING DEPARTMENTAL NEEDS
• APPROPRIATELY ACCOUNTING FOR REVENUE SOURCES AND

EXPENDITURES

• EVALUATING EFFECT OF COVID19 ON REVENUES/EXPENSES

BUDGET ASSUMPTIONS

• MILLAGE RATE WILL REMAIN UNCHANGED
• DIGEST WILL REMAIN LARGELY UNCHANGED
• PERSONNEL BUDGETS INCLUDE A 3% INCREASE IN ALL FUNDS
• NUMBER OF PERSONNEL HAS INCREASED BY ½ FTE
• HEALTH INSURANCE FUNDING WILL REMAIN AT 70% OF EXPECTED CLAIMS
• UTILITY BUDGETS ANTICIPATE MODEST GROWTH IN CUSTOMER BASE
• UTILITY BUDGETS ANTICIPATE NO RATE INCREASES IN ANY FUND
• EMPHASIS ON MATCHING FUND RESERVES WITH ONE TIME EXPENSES

INITIATIVES

• STRATEGIC PLANNING
• DEVELOP A COMMUNICATIONS PLAN
• DEVELOP CITIZEN’S ACADEMY CURRICULUM
• UPDATE CITY WATER/SEWER SYSTEMS
• IMPLEMENT SIDEWALK IMPROVEMENTS
• IMPROVE THE CITY’S USE OF TECHNOLOGY
• ORDINANCE REVISION

OVERVIEW OF CHANGES IN REVENUE ESTIMATES

General Fund Water & Sewer Fund Electric Fund Gas Fund Solid Waste Fund Airport Fund CNS Cable

Budgeted Revenues by Fund

GENERAL FUND

CHANGES IN REVENUE ESTIMATES Taxes 170,000 Intergovernmental (LMIG) 7,000 Fines 35,000 Interest (5,800) Transfers (289,000) Use of Fund Balance (425,500) Net Change (508,300)

GENERAL FUND

CHANGES IN REVENUE ESTIMATES

• TAXES - $170,000 NET INCREASE
• PROPERTY TAXES - $80,000 (BASED ON MAINTAINING CURRENT MILLAGE RATE)
• MOTOR VEHICLE/TAVT - $140,000
• SPLOST -

($50,000)

• INTERGOVERNMENTAL (LMIG) - $7,000 INCREASE
• FINES - $35,000 INCREASE
• INTEREST - ($5,800) DECREASE
• TRANSFERS - ($289,000) DECREASE
• USE OF FUND BALANCE – ($425,500) DECREASE

GRANTS

• CHIP GRANT -$100,000
• APPLICATION HAS BEEN APPROVED
• REVENUES/EXPENSES ARE DEPENDENT ON APPLICATIONS RECEIVED
• AIRPORT FAA GRANT - $158,500
• 100% CARES ACT FUNDED – NO MATCH REQUIREMENT
• CONSTRUCTION OF 80X60 HANGAR

GRANTS

• CDBG -$750,000
• APPLICATION HAS BEEN SUBMITTED BUT NOT YET APPROVED
• TOTAL PROJECT BUDGET INCLUDING MATCH - $850,500
• USES SPLOST DOLLARS AS MATCHING FUNDS FOR SIDEWALKS INCLUDED IN PROJECT
• LMIG- $82,000
• CITY MATCH IS 30% OR $24,600
• ADDITIONAL FUNDS $93,400
• TOTAL PROJECT BUDGET INCLUDING MATCH - $200,000
• MATCH AND ADDITIONAL FUNDS USES SPLOST PUBLIC WORKS DOLLARS

GENERAL FUND

CHANGES IN EXPENSE BUDGETS

• EXPENSE BUDGETS WERE REVIEWED EXTENSIVELY
• INPUT FROM DEPARTMENTS CONCERNING OPERATIONAL NEEDS
• 5 YEAR TREND DATA WAS REVIEWED
• EMPHASIS ON MAINTAINING OR REDUCING OPERATIONAL BUDGETS
• INCREASES ARE PRIMARILY CAPITAL PURCHASES OR IMPROVEMENTS

WATER AND SEWER FUND

CHANGES IN ESTIMATES

1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 09/30/2020 09/30/2021

WATER AND SEWER FUND

CHANGES IN ESTIMATES

CDBG Grant Proceeds $750,000 Availability Charges ($44,650) GEFA CWSRF Loan Proceeds $1,900,000 GEFA CWSRF ASADRA Disaster Relief $200,000 GEFA DWSRF ASADRA Disaster Relief $1,400,000

WATER AND SEWER FUND

GRANT/ LOAN PROJECTS

• GRANT - CDBG – WEST CIRCLE SEWER PROJECT - TOTAL PROJECT COST $850,500 (MATCHED

WITH $100,500 SPLOST FOR SIDEWALKS)

• LOAN/GRANT - FY 2020 GEFA CLEAN WATER STATE REVOLVING LOAN FUNDS – TOTAL

PROJECT COST $1,900,000

• 50% LOAN FORGIVENESS TOTALING $950,000
• 1.94% INTEREST FOR 20 YEARS - PAYMENTS BEGINNING APPROX. JANUARY, 2022
• FOR A MAJOR UPGRADE OF LIFT STATIONS AND RELATED INFRASTRUCTURE; EXPANSION OF SCADA

SYSTEM FOR REMOTE MONITORING AND HARDENING OF PUMPS AND ELECTRICAL EQUIPMENT

WATER AND SEWER FUND

GRANT/ LOAN PROJECTS

• LOAN/GRANT – FY 2020 GEFA CWSRF ASADRA HURRICANE MICHAEL DISASTER RELIEF –
• TOTAL PROJECT COST $200,000 WITH 20% PRINCIPAL FORGIVENESS
• 0% INTEREST 20 YEAR LOAN, PAYMENTS WILL COMMENCE APPROX. MAY, 2022
• PROJECT WILL AUGMENT THE HARDENING EFFORTS INCLUDED IN THE PREVIOUS LOAN
• LOAN/GRANT – FY 2020 GEFA DWSRF ASADRA HURRICANE MICHAEL DISASTER RELIEF –
• TOTAL PROJECT COST $1,400,000 WITH 50% PRINCIPAL FORGIVENESS
• 0% INTEREST 20 YEAR LOAN, PAYMENTS WILL COMMENCE APPROX. MAY, 2022
• PROJECT WILL INCLUDE WELLS/PUMP UPGRADES – INCLUDING REDUNDANT DISTRIBUTION

COMPONENTS/ EQUIPMENT AND LOOPED WATER MAINS AND VALVES

WATER AND SEWER FUND

OTHER REVENUE CHANGES

• AVAILABILITY CHARGES – WILL BE REDUCED BY $44,650
• REPRESENTS THE PASS THROUGH CHARGES ON 3 LOANS WHICH

REACH MATURITY DURING THE FISCAL YEAR

• THE MATURITY OF THESE LOANS WILL REDUCE OUR OVERALL PRINCIPAL

AND INTEREST PAYMENTS BY $290,000 PER YEAR

ELECTRIC FUND

CHANGES IN ESTIMATES

2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000

09/30/2020 09/30/2021

ELECTRIC FUND

CHANGES IN ESTIMATES

Electric Sales ($409,000) MEAG Year End Settlements ($250,000) Energy Purchases ($276,000) Capital Purchases ($116,500) Operating budget ($16,500) Deposits to MCT ($250,000)

ELECTRIC FUND

CHANGES IN ESTIMATES

• ELECTRIC SALES – REDUCED BASED ON TREND AND BASED ON POTENTIAL EFFECTS OF

COVID19

• THERE IS NO REAL WAY TO MEASURE ANY EFFECT COVID19 WILL HAVE ON THE ECONOMY
• ALL THE BUSINESSES THAT WERE SHUT DOWN ARE STILL NOT FULLY OPEN
• WE DON’T KNOW IF IT IS GOING TO RECUR IN THE FALL
• MEAG VOTED TO REDUCE THE YEAR END SETTLEMENT AND LOWER THE MONTHLY BILLING

INSTEAD

• YEAR END SETTLEMENT WAS REDUCED TO ZERO
• DEPOSITS INTO MCT ALSO REDUCED TO ZERO
• MONTHLY ELECTRIC PURCHASES REFLECTS THE LOWER COST ESTIMATED BY MEAG

GAS FUND

CHANGES IN ESTIMATES

2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000

09/30/2020 09/30/2021

GAS FUND

CHANGES IN ESTIMATES

Natural Gas Sales ($9,211,400) Natural Gas Purchases ($8,883,500) Capital Purchases ($35,000) Operating Expenses ($26,800) Transfers ($289,000)

GAS FUND

CHANGES IN ESTIMATES

• REDUCTION IN NATURAL GAS SALES IS LARGELY DUE TO THE CLOSURE OF THE FLINT

HILLS ETHANOL PLANT

• REDUCTION IN NATURAL GAS PURCHASES IS ALSO LARGELY DUE TO THE CLOSURE OF

FLINT HILLS

• OPERATING BUDGETS, CAPITAL EXPENSES AND TRANSFERS WERE ALSO REDUCED TO

MAKE UP THE SHORTFALL

CAPITAL OUTLAY

• GENERAL FUND
• RECREATION IMPROVEMENTS- $250,000
• VEHICLES & EQUIPMENT- POLICE - $64,000
• PAVING – LMIG/SPLOST - $200,000
• STORMWATER INFRASTRUCTURE- $165,000
• SIDEWALK INFRASTRUCTURE-WEST CIRCLE CDBG PROJECT - $100,500
• CITYWIDE SIDEWALK IMPROVEMENTS - $53,500
• EQUIPMENT – PUBLIC WORKS - $12,000
• 3 VEHICLES– PUBLIC WORKS - $120,000

CAPITAL OUTLAY

• WATER & SEWER FUND
• WEST CIRCLE WATER/SEWER PROJECT (CDBG) - $750,000
• SEWER REHAB AND HARDENING – GEFA CWSRF $1,900,000
• SEWER UPGRADES AND HARDENING – GEFA ASADRA - $200,000
• GENERAL WATER SYSTEM UPGRADES - $55,000
• FIRE HYDRANT INFRASTRUCTURE - $10,000
• WELLS/PUMP UPGRADES – GEFA DWSRF ASADRA - $1,400,000
• VEHICLES - $85,000

CAPITAL OUTLAY

• ELECTRIC FUND
• INFRASTRUCTURE/TRANSFORMERS - $30,000
• NORMAL TRANSFORMER REPLACEMENT
• INFRASTRUCTURE/ELECTRICAL LINE UPGRADES - $36,000
• POLE REPLACEMENTS (AS NEEDED)
• INFRASTRUCTURE/SYSTEM UPGRADES - $60,000
• REPLACE #6 COPPER WITH 1/0 ALUMINUM
• INFRASTRUCTURE/LED LIGHTING UPGRADE - $5,000
• REPLACE REMAINDER OF LED LIGHTS
• MACHINERY - $28,500
• TRENCHER/TRAILER; LINE LOCATOR; EMERGENCY RESTORATION UNIT

CAPITAL OUTLAY

• GAS FUND
• GENERAL INFRASTRUCTURE UPGRADES - $10,000
• VEHICLES - $35,000
• EQUIPMENT – GAS METER/REGULATOR STATION - $20,000
• AIRPORT FUND
• INFRASTRUCTURE/FAA GRANT PROJECT - $158,500
• NO CITY MATCH REQUIRED – CARES ACT FUNDING
• CONSTRUCTION OF A 60X80 HANGAR

NEXT STEPS

• 2ND PUBLIC HEARING/BUDGET WORK SESSION
• TUESDAY, SEPTEMBER 9, 2020, 9:00AM
• JOINT COMMITTEE MEETING
• 3RD PUBLIC HEARING & ADOPTION
• MONDAY, SEPTEMBER 14, 2020, 6:30PM
• REGULARLY SCHEDULED COUNCIL MEETING