TERO 2020-2021 Preliminary Budget July 22, 2020 Budget Calendar - - PowerPoint PPT Presentation

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TERO

2020-2021 Preliminary Budget

July 22, 2020

• Budget Calendar

July 22nd - Budget Presentation July 22nd - Preliminary Millage Rate Vote September 9th @ 5:30 pm - Tentative Budget Hearing including Millage Rate Vote September 23rd @ 5:30 pm - Fina l Budget Hearing including Millage Rate Vote

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• Revenue projections remain

uncertain as the result of the continued impacts of Covid-19. Adjustments are anticipated as additional data becomes available.

• State estimates are anticipated in

late July and will be updated by State as needed

Preliminary Budget

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2019-2020 Revenues

Prior to Covid-19, our General Fund revenues and Building Fees were exceeding projections which lessened the current fiscal year impact

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Budget Estimated +/(-) over

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2019-2020 2019-2020 Budget G

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eneral Fund Reve nue 12,793,580 $ 12,396, $ $ (397, 410 170) Building Fees $ 1,020,100 $ 1,127,300 $ 107,200

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2019-2020 Revenues

Impact Fees, generated by new construction, are anticipated to be significantly below growth projections

Budget Estimated +/(-) over 2019-2020 2019-2020 Budget Gas Tax-1 to 5 Cent $ 393,000 $ 338,800 $ (54,200) Road Impact Fees 2,797,000 820,000 (1,977,000) Park Impact Fees 233,700 282,000 48,300 FL Dept of Transportation 766,000 766,000

• Lee County Estero Pkwy

2,196,000 - (2,196,000) Interest Income 70,000 100,000 30,000 Total Capital Proj ects $ 6,455,700 $ 2,306, $ (4,148, 800 900) Revenues

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State Revenues with most immediate significant impacts of Covid-19 with actual and projected reductions

• Gas Tax-11% in April, 32% in May and

30% projected

• Municipal Revenue Sharing-24% in

April, 44% in May and 30% projected

• Half-Cent Sales Tax -21% in April,32%

in May and 30% projected

2019-2020 State Revenues

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2019-2020 State Revenues

Budget Estimated +/(-) over 2019-2020 2019-2020 Budget Gas Tax $ 928,000 $ 802,800 $ (125,200) State Shared Revenue $ 754,000 $ 667,300 $ (86,700) Half-C / ent Sales Tax $ 2,730,000 $ 2,424,900 $ (305,100)

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Budget Estimated +/(-) over 2019-2020 2019-2020 Budget General Fund Revenue 12,793,580 $ 12,396,410 $ (397,170) $ Building Fees 1,020,100 1,127,300 107,200 Debt Service Revenue

• 39,290

39,290 Capital Projects Revenue 6,455,700 2,306,800 (4,148,900) Total Revenue 20,269,380 $ 15,869,800 $ (4,399,580) $

2019-2020 Revenues

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Preliminary estimates based upon initial actual collections which will be adjusted as additional data is received

• Gas Tax-30% reduction
• Municipal Revenue Sharing-30%

reduction

• Half-Cent Sales Tax-30% reduction

2020-2021 State Revenues

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2020-2021 State Revenues Preliminary Estimates

Budget Budget +/(-) over 2019-2020 2020-2021 Budget Gas Tax $ 928,000 $ 748,500 $ (179,500) State Shared Revenue $ 754,000 $ 535,700 $ (218,300) Half-Cent Sales Tax $ 2,730,000 $ 1,919,800 $ (810,200)

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Fees with exposure to extended impacts to Covid-19

• Communication Services Taxes-prior

year growth of 9%. 2019-2020 growth

• f 3% with flattening in 2020-2021
• Electric Franchise Fees-prior year

growth of 2%. 2019-2020 growth of 3% with flattening in 2020-2021

Local Taxes and Fees

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2020-2021 Revenues Preliminary Estimates

Budget Budget +/(-) over 2019-2020 2020-2021 Budget General

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Fund Revenue 12,793,580 $ 11,563, $ $ (1,230, 340 240) Building Fees 1,020,100 998,300 (21,800) Debt Service Revenue

• 10,000

10,000 Capi

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tal Projects Revenue 6,455,700 4,233,090 (2,222,610) Total Revenue $20,269,380 $ 16,804, $ (3,464, 730 650)

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General Fund

Budget Budget +/(-) over 2019-2020 2020-2021 Budget Revenue $ 12,793,580 $11,563,340 $(1,230,240) Expenditures 5,744,670 5,922,210 177,540 Operating Excess 7,048,910 5,641,130 (1,407,780) Debt Service 1,415,800 1,415,800

• Debt Reduction

1,100,000 1,100,000

• Capital Projects Funding

7,776,600 3,044,660 (4,731,940) Excess (Deficit) $ (3,243,490) $ $ 3,324,160 Cumulative Allocations: Operating Reserves $ 5,596,700 $ 5,922,300 $ 325,600 L itigation Defense Reserve $ 670,000 $ 670,000 $

• Major Road Maint Reserve $
• $

309,000 $ 309,000 Remaining Fund Balance $ 7,010,773 $11,341,430 $ 4,330,657

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80,670

Budget Budget +/(-) over 2019-2020 2020-2021 Budget Building Fees 1,020,100 $ 998,300 $ (21,800) $ Expenditures 1,138,830 1,089,800 (49,030) Excess (Deficit) (118,730) $ (91,500) $ 27,230 $

New State Regulations: The Village is in compliance with Florida Statute 553.80(7) (a), as the projected end of year surplus carried forward does not exceed the average of its operating budget for enforcing the Florida Building Code for the previous four fiscal years of $910,943.

Building Permit Fees Surplus 562,830 $ 501,090 $ (61,740) $

Building Permit Fees

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Budget Budget +/(-) over 2019-2020 2020-2021 Budget Revenue

• $

10,000 $ 10,000 $ Proceeds from Sale of Asset 996,690

• (996,690)

Debt Service 996,690

• (996,690)

Debt Reduction Funding 1,100,000 1,100,000

• Capital Projects Funding

1,000,000 (1,000,000) Excess (Deficit) 100,000 $ $ $ Cumulative Allocations: Debt Reduction 4,100,000 $ 5,289,850 $ 1,189,850 $

Debt Service

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1,110,000 1,010,000

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Budget Budget +/(-) over 2019-2020 2020-2021 Budget Revenue 6,455,700 $ 4,233,090 $ (2,222,610) $ Capital Projects Funding 7,491,620 6,319,570 (1,172,050) Excess (Deficit) (1,035,920) $ (2,086,480) $ (1,050,560) $ Cumulative Allocations: Remaining Fund Balance 10,050,640 $ 7,613,870 $ (2,436,770) $

Capital Projects

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• Taxable property values are

anticipated to decline

• Continued negative economic

impacts of Covid-19

• Persistent high unemployment will

lower future sales and gas tax collections and may lead to foreclosures which will lower taxable values

Beyond FY 2020-2021Concerns

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Beyond FY 2020-2021 Contingency Plan

• Operating reserves of $5.9 million

available to offset future revenue reductions

• Delay non-time sensitive capital

projects

• Discontinue annual surplus debt

reduction funding of $1.1 million

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Thank you. Questions?

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