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

e o/i[fage of TERO 2020-2021 Preliminary Budget July 22, 2020

Budget Calendar July 22 nd - Budget Presentation • July 22 nd - Preliminary Millage Rate • Vote September 9 th @ 5:30 pm - Tentative • Budget Hearing including Millage Rate Vote September 23 rd @ 5:30 pm - Fina l • Budget Hearing including Millage Rate Vote 2

Preliminary Budget • 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 3

2019-2020 Revenues Prior to Covid-19, our General Fund revenues and Building Fees were exceeding projections which lessened the current fiscal year impact I Budget Estimated +/(-) over 2019-2020 2019-2020 Budget I $ 12,793,580 $ 12,396, 410 $ (397, 170) G eneral Fund Reve nue I $ 1,020,100 $ 1,127,300 $ 107,200 Building Fees 4

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) 70,000 100,000 30,000 Interest Income Total Capital Proj ects $ 6,455,700 $ 2,306, 800 $ (4,148, 900) Revenues 5

2019-2020 State Revenues 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 6

2019-2020 State Revenues Budget Estimated +/(-) over 2019-2020 2019-2020 Budget $ 928,000 $ 802,800 $ (125,200) Gas Tax State Shared Revenue $ 754,000 $ 667,300 $ (86,700) $ 2,730,000 $ 2,424,900 $ (305,100) Half-C / ent Sales Tax 7

2019-2020 Revenues Budget Estimated +/(-) over 2019-2020 2019-2020 Budget General Fund Revenue $ 12,793,580 $ 12,396,410 $ (397,170) 1,020,100 1,127,300 107,200 Building Fees - 39,290 39,290 Debt Service Revenue I 6,455,700 2,306,800 (4,148,900) Capital Projects Revenue $ 20,269,380 $ 15,869,800 $ (4,399,580) Total Revenue I 8

2020-2021 State Revenues 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 9

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) $ 2,730,000 $ 1,919,800 $ (810,200) Half-Cent Sales Tax 10

Local Taxes and Fees Fees with exposure to extended impacts to Covid-19 • Communication Services Taxes-prior year growth of 9%. 2019-2020 growth of 3% with flattening in 2020-2021 • Electric Franchise Fees -prior year growth of 2%. 2019-2020 growth of 3% with flattening in 2020-2021 11

2020-2021 Revenues Preliminary Estimates Budget Budget +/(-) over 2019-2020 2020-2021 Budget $ 12,793,580 $ 11,563, 340 $ (1,230, 240) General Fund Revenue 1,020,100 998,300 (21,800) Building Fees I - 10,000 10,000 Debt Service Revenue tal Projects Revenue 6,455,700 4,233,090 (2,222,610) Capi I $20,269,380 $ 16,804, 730 $ (3,464, 650) Total Revenue 12

General Fund Budget Budget +/(-) over 2019-2020 2020-2021 Budget Revenue $ 12,793,580 $11,563,340 $(1,230,240) 5,744,670 5,922,210 177,540 Expenditures Operating Excess 7,048,910 5,641,130 (1,407,780) 1,415,800 1,415,800 - Debt Service / Debt Reduction I 1,100,000 1,100,000 - 7,776,600 3,044,660 (4,731,940) I Capital Projects Funding $ (3,243,490) $ 80,670 $ 3,324,160 Excess (Deficit) Cumulative Allocations: $ 5,596,700 $ 5,922,300 $ 325,600 Operating Reserves $ 670,000 $ 670,000 $ - L itigation Defense Reserve Major Road Maint Reserve $ - $ 309,000 $ 309,000 $ 7,010,773 $11,341,430 $ 4,330,657 Remaining Fund Balance 13

Building Permit Fees Budget Budget +/(-) over 2019-2020 2020-2021 Budget $ 1,020,100 $ 998,300 $ (21,800) Building Fees 1,138,830 1,089,800 (49,030) Expenditures $ (118,730) $ (91,500) $ Excess (Deficit) Building Permit Fees Surplus $ 562,830 $ 501,090 $ (61,740) New State Regulations: The Village is in compliance with Florida 27,230 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. 14

Debt Service Budget Budget +/(-) over 2019-2020 2020-2021 Budget $ - $ 10,000 $ 10,000 Revenue 996,690 - (996,690) Proceeds from Sale of Asset 996,690 - (996,690) Debt Service ++ Debt Reduction Funding 1,100,000 1,100,000 - I 1,000,000 (1,000,000) Capital Projects Funding 1,010,000 $ 100,000 $ 1,110,000 $ I Excess (Deficit) Cumulative Allocations: $ 4,100,000 $ 5,289,850 $ 1,189,850 Debt Reduction 15

Capital Projects Budget Budget +/(-) over 2019-2020 2020-2021 Budget $ 6,455,700 $ 4,233,090 $ (2,222,610) Revenue 7,491,620 6,319,570 (1,172,050) Capital Projects Funding $ (1,035,920) $ (2,086,480) $ (1,050,560) Excess (Deficit) / I Cumulative Allocations: I t- $ 10,050,640 $ 7,613,870 $ (2,436,770) Remaining Fund Balance 16

Beyond FY 2020-2021Concerns • 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 17

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 18

Thank you. Questions? 19