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 Budgeted Revenues by Fund General Fund Water & Sewer Electric Fund Gas Fund Solid Waste Airport Fund CNS Cable Fund 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 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 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 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 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 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 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 • 2 ND PUBLIC HEARING/BUDGET WORK SESSION • TUESDAY, SEPTEMBER 9, 2020, 9:00AM • JOINT COMMITTEE MEETING • 3 RD PUBLIC HEARING & ADOPTION • MONDAY, SEPTEMBER 14, 2020, 6:30PM • REGULARLY SCHEDULED COUNCIL MEETING
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