The Budget Overview provides highlights of the FY2020 ...Budget Highlights The net operating budget...

Fiscal Year 2020 Annual Budget City of Lakeland, Florida

Budget Overview Section - B

The Budget Overview provides highlights of the FY2020 Budget,

including the Budget Summary, Staffing Changes, and Financial

Policies.

Photo Credit: Janneke Case Photography

Fiscal Year 2020 Annual Budget B-1

City of Lakeland, Florida Annual Budget Fiscal Year 2020

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Table of Contents

Budget Overview Section B

Budget Overview .................................................................................................................... B-3 Budget Development Calendar ............................................................................................... B-8 Budget in Brief ...................................................................................................................... B-10 Budget Summary .................................................................................................................. B-13 Ad Valorem Taxes ............................................................................................................... B-21 Position Changes by Fund & Department ............................................................................ B-22 Historical FT & PT Position Changes ................................................................................... B-23 Residents per Employee ...................................................................................................... B-24 Budget Overview and Financial Policies .............................................................................. B-25 Budgeted Funds Relationship by Program ........................................................................... B-28


Budget Overview

Introduction The FY 2020 Annual Budget was adopted on September 12, 2019. It is the numerical representation of the FY 2020 Strategic/Business Operating Plan. By allocating resources through service prioritization based on strategic alignment with the City of Lakeland Strategies, this budget sets the stage for continued success into the future.

Budget Highlights The net operating budget for FY 2020 for all funds totals $626,811,301. This represents an increase of $14,336,812 or 2.34% more than the FY 2019 budget. The FY 2020 budget is balanced, and responsive to the community needs identified in the Strategic/Business Operating Plan.

Some factors that contributed to the changes in the budget are:

• Eroding levels of revenue in the Federal, State & Local Grants, Shared Revenues,

• Charges for Services, Licenses and Permits and All Other Revenues,

• Budget development based on Citizen needs, a prioritized Strategic Plan and responsiveActionable Items.

Building the Foundation The Commission’s Annual Retreat in April 2019 focused on:

• Review of the Strategic Operating Plan (SOP)

• Key Issues Facing the Community

• Results of the Community Values Survey

• Proposed Actionable Item presentations by Department Heads including a review of long-range potential financial projects and plans.

The Retreat included information gathering and participation from Community Stakeholders and Senior Leadership Staff. The Retreat resulted in reviewing and valuing the City’s Goals and the identification of Actionable Items for meeting strategic initiatives.

True to the spirit of performance, the Strategic Operating Plan has evolved over the last several years, linking our day-to-day activities with the City Vision and level of services we aspire to achieve. Our next steps further into Performance Management will link our Goals to our Services through measurement, allowing us to benchmark against other communities and also proactively approach process improvement.

Financial Forecasting One of the most effective tools to manage future financial risk is the Financial Forecasting Model. Revenues are projected at conservative levels and compared to estimated cost increases in payroll, operating expenditures and capital outlay. The purpose of this model is to adequately prepare for future challenges, so it is always conservative in outlook. Using this tool helps keep us focused on long-term solutions, rather than short-term “fixes”, which could lead to negative financial impacts in future years. It is important to note that the City’s budget has always been balanced.


Budget Overview

Budget Format A municipal budget document should provide sufficient, meaningful and useful information to the public, elected officials and City staff. To that end, we have developed a budget document that serves four primary functions:

• Policy Document

• Financial Plan

• Operations Guide

• Communication Device

Together these budget elements define what the City of Lakeland has done, what it plans to do, how it will accomplish its objectives and measure to confirm achievement.

The budget is a program/performance-based plan that links prescribed organizational goals and objectives with the financial resources necessary to achieve them. Each of the budget’s Programs represent a “product” of the City. Contained within each Program are objectives and achievements. The program/performance budget is integrated with line item financial information to ensure optimal budget control.

This program/performance budget enables the public and the City Commission to analyze the budget by priorities based on program goals and performance objectives rather than line item costs.

In addition, this format provides information so that the public and the City Commission will have a better understanding of both the allocation of resources (workforce, expenses and revenues) among programs and the measurable work that each department will accomplish.

The FY 2020 budget includes an Introduction section followed by Budget Overview, Long-Range Planning, Performance Budget, Line Item Budget, Capital Improvement Plan (CIP) and Supplementary Information sections.

Approval Process During the months of June - August, recommended operating and capital improvement program budget documents are prepared and presented to the City Manager, the Budget Review Team and ultimately to the City Commission for review. The City Commission either approves or makes changes in the recommended budgets and returns to staff for further study. Public hearings and final adoption of the budget occur in mid-September.

Monitoring Process The Finance Chief Accountants are authorized to transfer budget amounts within individual departments. Actual expenditures and operating-transfers-out may not exceed the adopted budget at the individual fund level. The City Manager has authority to transfer budgeted amounts within their respective Funds.

Appropriations which are neither expended, encumbered, nor specifically designated to be carried over, lapse at the end of the fiscal year.


Budget Overview

Amending the Budget If, during the fiscal year, it becomes evident that a particular fund is unable to provide the required level of services to the community due to unexpected higher costs of providing the service, the budget may be amended. The Director of Finance, through the City Manager, submits to the City Commission a budget amendment request. This request contains explanations written by the Director of the department needing additional funds. The request also includes a proposal for financing the additional expenditures, usually either by appropriating from the fund balance or by submitting evidence of expected surplus current year revenues. City Commission approval is required for budget amendments which alter the budget or workforce increases in any fund.

How the Budget Is Created The City Commission begins an annual process of strategic planning designed to identify the issues that must be addressed to achieve our Mission and that will persist throughout the Strategic Plan. Reviewed and updated annually, the Strategic Plan creates a shared vision for the future of the community. Long-range Strategies and Actionable Items are developed by the City Commission and reaffirmed in the Strategic Plan to emphasize the values of our customers. With the Strategies set, the operations of the City are reviewed and redirected to bring the Strategic Plan to life. Specific programs, capital purchases, staffing requirements and funding levels are developed in response to the needs identified in the Strategic Plan. The Plan is an outgrowth of the Strategies, capturing the City’s Vision in a quantifiable form, improving decision-making and resource allocation. The Strategies, combined with the Strategic Plan, form the Strategic Operating/Business Plan. This process creates a direct link between costs, Programs, Activities and Core Services. We use this model to monitor our performance by developing process maps that link budget items to activities and identify value-added and non-value-added services. In developing the fiscal year operating budget, departments analyze existing services and potential services keeping in mind the Strategic Plan Outcomes. The plan identifies added and removed services, which are then quantified in the line item budget. They reflect not only the Strategies as set by the City Commission, but also incorporate feedback from customer surveys and policy initiatives that contribute to the long-term financial health of the City. Departments set goals to meet the needs identified by the Strategies. To meet these goals, core services within the departments have specific performance measurements. As the culture of continuous improvement and performance management continues to be cultivated in the City of Lakeland, each employee will become more and more involved in understanding what the end result should be and how it contributes to the City’s Strategic Plan. In this way, the budget becomes a tool for monitoring and improving, rather than just controlling operating performance.


Budget Overview

Program Budgeting Programs are the driving force behind each Activity’s budget, setting the direction of each department. A projected budget based on the previous year’s budget, with any new Services appended and any discontinued Services removed, is developed.

From there, Key Success Indicators are developed that relate to the City’s Strategic Plan. Goals and objectives should be realistic and quantifiable, and improvements should support the efficiency and effectiveness. Current goals and objectives may be used to establish a starting point for the future.

Around April, the Finance Department distributes target budgets to each department for the upcoming fiscal year. These targets are based on projections of current year expenditures as well as prioritized Core and Support Service costs. At the same time, Capital Improvement Program physical inventory worksheets are distributed for department input.

Budget targets are developed and their relationship to achieving the Goals of the Strategic Operating Plan. Operating costs are included in this budget target. Department staff members verify all numbers and assumptions made in these categories. Departments also submit all personnel changes such as retirements, projected salary increases or changes in hours worked.

Operating Expenses The target budget contains operating expenses based on projections of the current year’s expenditures. The actual users of the supplies and services review their practices and habits involving daily expenditures for possible efficiencies or improvements. Departments review the line item account codes for accuracy of description and determine if they reflect the actual types of expenditures.

Lastly, they provide justification for any changes from the target budget with the use of information from current year expenditures or information obtained from other sources, such as trends in next year’s contracts, service costs provided by the Purchasing Division or further explanation of budget impacts for Actionable Items.

Capital Expenses Certain capital funds maintain a ten-year Capital Improvement Plan (CIP) for required capital, R&R, Equipment and Maintenance needs. Departments evaluate all existing equipment, facilities and other capital items to determine if the useful life has been exceeded, or will be exceeded, in the coming budget year.

Each fiscal year, those funds that maintain 10-year CIP’s are updated for additional project requirements or changes in future capital needs.


Budget Overview

Budget Methodology The Budget for the City of Lakeland is a performance-based system. This type of budgeting system identifies a level of performance for each type of service (program) and the resources required to operate it as well as describes the structure of the departments and the programs into which they are divided. The Performance Budget is separated into Programs and Activities which are broken down into the following components:

Component Description

Program Description The statement must identify the purpose for the activities and how they relate to the City’s overall mission.

Core Services Products or services provided to the public (external customer) as an actual deliverable and not as a supporting service or step in the process. (Applicable to General Fund Operating Departments and Enterprise Funds)

• FTE: Number of full-time and part-time employees associated withthe completion of the Activity

• Personnel Costs: Salary and Benefits

• Operational Costs: All costs (other than personnel) attributed withcompleting the Activity

• Debt Service: Acquired debt (if applicable)

• Net Cost: Total Activity Cost

Support Services Resources or assistance in support of a Core Service or deliverables provided to a City of Lakeland operation or internal customer [e.g. technology, equipment or special resources including administrative, technical, maintenance, financial, legal or other skilled and professional categories]. (Applicable to General Fund Governance Departments and Internal Service Funds)

Same table structure as identified above for Core Services.

Performance Measurements

The performance measurements will focus on accomplishments that have or will be attained within the current year. All will be measurable by the performance indicators supplied. Each performance measure will include explicit links showing how objectives and their indicators are directly related to the Strategies they support.

Performance Measurements may be developed:

• Operationally

• As a specific City-wide Key Success Indicator

• Based on Community Values Survey Data

• Based on an Actionable Item

• From a Florida Benchmarking Consortium (FBC) measurement

Figure B-1: Performance Budget Components


Budget Overview

Fiscal Year 2020Strategic Planning & Budget Development Calendar

DATE ACTION REQUIRED RESPONSIBILITIES

Jan. 23 – Feb. 28 Community Values Survey OMB

Jan. 2 -Feb. 1 Mid-Year PMFs Submitted to OMB Departments/OMB

Jan. 2 – Mar. 31 Meet with departments and review materials and instructions for Department Capture of Measurements & KSI data

Departments/OMB

Feb. 29 – Mar. 31 Community Values Survey Data Analysis OMB

March 1 - 15 Complete ALL FY 2020 Personnel Request Forms (PMFs) and Submit to OMB

Departments/OMB

Mar. 1 – Apr. 12 HR completes necessary Personnel PMF Review and Documentation. Output provided to OMB.

HR/Departments/OMB

March 1 DH's provide list of Strategic Planning Workshop Topics to CMO

Departments/CMO

March 11 Internal Services Line Item Budgets Available for Input

Finance/Departments

Mar. 15 – Apr. 30 PMF Preview Meetings DCM, OMB & Finance

March 18 - 29 DH's City Commission Strategic Planning Workshop Presentation Rehearsals

Departments, CMO, OMB

April 16 City Commission Strategic Planning Workshop (Full Day/RP Funding Center)

City Commission, City Staff, Public

April 17 City Commission Strategic Planning Workshop (Full Day/RP Funding Center)


April 22 Senior Leadership Workshop, Day 1 (PM 1/2 day/Tiger Admin)

CMO, OMB & Senior Leadership

April 22 Line Item & CIPs Available for Entry Finance/Departments

May 2 Senior Leadership Workshop, Day 2/Business Planning Retreat Presentation Rehearsals (PM 1/2 day/Tiger Admin)

CMO, OMB & Senior Leadership

May 3 Line Item Budgets Completed/Finance Begins Review

Departments/Finance

May 7 City Commission Business Planning Retreat (Full Day/RP Funding Center)


May 8 City Commission Business Planning Retreat (Full Day/RP Funding Center)


May 10 Complete CIP Forms and notify Finance Departments

May 10 Begin review of CIP Forms Finance

Figure B-2: Strategic Planning and Budget Development Calendar - Part 1


Budget Overview

Fiscal Year 2020Strategic Planning & Budget Development Calendar

DATE ACTION REQUIRED RESPONSIBILITIES

May 31

Begin finalizing or working on Budget Development Items (refer to Handbook): 1. Hyperion System:• Workforce Forms

• Central Budget Forms• Performance Budget Forms• CIP Forms2. Table of Organization Process (N: Drive)

OMB, Finance, Departments

May & June O&M, Workforce, Core Services and TO Reconciliation to approved Budgets

Finance, OMB

One week prior to date of City

Manager Review Meeting

1. Return Electronic Meeting Deliverables to OMB2. Program Budget Development Forms

Departments

May 28 - June 28 Dept. Budget Meetings - Review Proposed Budgets & Accomplishments

Depts., City Manager, OMB, Finance

July 1 Tax Assessment delivered to the City Property Appraiser

July 12 Commission Agenda Study - Obtain guidance for Maximum Millage Rate to publish and confirm dates for Public Hearings

City Manager, Finance, City Commission

July 14 Deliver proposed Tax Millage Rate, Roll-Back Rate, Public Hearing Schedule to Property Appraiser

Finance

July 18 & 19 City Commission Budget Workshop Public, CC, CMO,

Depts., OMB, Finance

Aug 12 Publish notice of public hearing on Mayor & Commission Salary

City Clerk

Aug 16 Publish TRIM Notice for 1st Public Hearing Property Appraiser's

Office

Aug 31 Complete all Performance Budget Allocations in Hyperion

Departments/OMB

Aug 31 Provide City Commission FY 2020 Proposed Budget Components for Review before Budget Workshops

OMB, Finance

Sept 5 First public hearing on tentative budget, proposed millage rate, adopt proposed millage rate

City Commission

Sept 8 Publish notice of public hearing on final budget City Clerk

Sept 12 Second public hearing to adopt final budget and millage rate

City Commission

Prior to 10/1 Distribute FY 2020 Budget Document OMB

Figure B-3: Strategic Planning and Budget Development Calendar - Part 2


Budget in Brief

The Budget in Brief document is a summary of the program budgets utilized by the City of Lakeland to best allocate fiscal resources to respond to the desires of the Citizens and fulfill the goals of the City Commission.

Community Safety: $ 69,880,478 The Community Safety Program provides police and fire services to the residents of Lakeland through six programs: Community Police, Dispatching, Firefighting, Investigative, Patrol and Rescue Services.

Cultural & Community Services: $15,917,259 Lakeland’s three libraries, Public Information Services and the performances and events at the RP Funding Center are operated under this Program.

Economic & Community Development: $22,286,488 The Economic & Community Development Program is comprised of the Affordable Housing Programs, Building Inspection and Permitting, Code Enforcement, the Community Redevelopment Agency (CRA) Districts, Development Review and Economic Development.

Non-Departmental: $918

Environmental & Utility Services: $412,773,336 This Program is made up of the Electric Utility Production, Transmission & Distribution and Billing activities, as well as Lakes and Stormwater Management, various Solid Waste activities, Water Treatment & Distribution and Wastewater Collection & Treatment.

Parks, Recreation and Properties: $ 36,141,822 Aquatics, Cemeteries, Cleveland Heights Golf Course, Parks and Recreation and Facilities Services are the activities that make up the Parks, Recreation and Properties Program.

Transportation Services: $ 52,376,159 The Transportation Services Program covers the Leasing and Operations activities at Lakeland Linder International Airport, Parking Services downtown, and the Construction and Maintenance of all Transportation Facilities.

Legislative Activities: $ 5,932,951 The support activities for the City Commission, including City Clerk, City Commission operations and Community Relations are contained in this program.

Support Services: $ 11,501,890 This Program contains the various supporting services that facilitate the operations of the other programs, including Facilities Maintenance, Fleet Management, Governance Administration, Information Technology and Purchasing and Stores.

Adopted FY 2020 Budget: $626,811,301


Budget in Brief

Expenditures by Activity

Community Safety $69,880,478 Community Police Programs 7,553,028 Dispatching Services 6,009,563 Emergency Preparedness 147,854 Firefighting Services 13,429,882 Investigative Services 11,438,365 Patrol Services 20,804,843 Rescue Services 10,496,943

Economic & Community Dev. $22,286,488 Affordable Housing Programs 1,218,867 Building Inspection & Permitting 1,255,672 Code Enforcement 1,447,419 CRA Districts 11,845,933 Development Review Services 3,570,175 Economic Development 230,750 Local Business Taxes 290,069 Neighborhood Programs 369,578 Planning Services 2,058,025

Environmental & Utility Svcs. $412,773,336 Energy Production 213,628,659 Energy Transmission & Dist. 72,988,646 Energy Utility Billing & Cust. Svc. 18,516,306 Lakes and Stormwater Mgmt. 8,756,834 Solid Waste - Commercial 6,155,210 Solid Waste - Recycling 3,105,381 Solid Waste - Residential 7,149,437 Water Treatment & Distribution 33,701,131 Wastewater Collection & Treatment 48,771,732

Non-Departmental $918

Cultural & Community Svcs. $15,917,259 Library Services 4,578,637 Public Information Services 753,275 The RP Funding Center 10,585,347

Parks, Rec. & Properties $36,141,822 Aquatics 1,706,256 Cemeteries 1,403,763 Cleveland Heights Golf Course 2,633,281 Parks 15,942,695 Recreation & Facilities Services 14,455,827

Transportation Services $52,376,159 Airport - Leasing Activities 4,123,757 Airport - Operations 28,418,746 Parking Services 1,805,058 Transportation Facilities – Const. 3,479,497 Transportation Facilities – Maint. 14,549,101

Legislative Activities $5,932,951 City Clerk 654,263 City Commission 4,417,510 Community Relations 861,178

Support Services $11,501,890 Facilities Maintenance 2,323,274 Fleet Management 104,244 Governance Administration 8,390,639 Information Technology 667,746 Purchasing and Stores 15,987

Total Expenditures $626,811,301

Figure B-4: Expenditures Pie Chart


Budget in Brief

Revenues by Activity

Community Safety $ 5,013,627 Community Police Programs 1,260,079 Dispatching Services 87,065 Emergency Preparedness 0 Firefighting Services 1,059,523 Investigative Services 120,150 Patrol Services 2,068,814 Rescue Services 417,996

Cultural & Community Svcs. $ 7,528,344 Library Services 1,396,323 Public Information Services 20,000 The RP Funding Center 6,112,021

Economic & Community Dev. $ 15,913,464 Affordable Housing Programs 1,305,578 Building Inspection & Permitting 1,627,488 Code Enforcement 858,380 CRA Districts 8,793,093 Development Review Services 1,480,275 Economic Development - Local Business Taxes 1,721,200 Neighborhood Programs - Planning Services 127,450

Environmental & Utility Svcs. $ 459,126,712 Energy Production 240,740,751 Transmission & Dist. 76,597,545 Utility Billing & Cust. Svc. 18,691,175 Lakes & Stormwater Mgmt. 7,821,730 Solid Waste - Commercial 11,685,400 Solid Waste - Recycling 1,499,559 Solid Waste - Residential 10,361,740 Water Treatment & Dist. 39,669,001 Wastewater Collection & Treatment 52,059,811

Parks, Rec. & Properties $ 7,645,414 Aquatics 159,050 Cemeteries 686,805 Cleveland Heights Golf Course 1,356,118 Parks 1,491,140 Recreation and Facilities Services 3,952,301

Transportation Services $ 42,169,113 Airport - Leasing Activities 7,161,063 Airport - Operations 25,418,724 Parking Services 1,665,386 Transportation Facilities - Const. 3,536,344 Transportation Facilities - Maint. 4,387,596

Legislative Activities $ - City Clerk - City Commission - Community Relations -

Support Services $ 2,516,026 Facilities Maintenance - Fleet Management - Governance Administration 161,200 Information Technology 0 Purchasing and Stores 2,354,826

Non-Departmental $ 86,898,601 General Fund Services 86,503,637 Lakeland Regional Medical Center 394,964

Total Revenues $626,811,301

Figure B-5: Revenues by Activity Pie Chart


Budget Summary

Revenue Sources

Sources Revenues Charges for Services $433,217,706 All Other Revenue 39,545,571 Public Service, Communication, and Gasoline Taxes 32,277,071 Intergovernmental 34,028,070 Property Taxes 42,354,505 Licenses and Permits 4,685,816 Prior Year Surplus 40,702,562 Total Revenues $626,811,301

Figure B-6: Revenue Sources

Figure B-7: Revenue Sources Pie Chart

Charges for Services

70%

All Other Revenue

6%

Public Service, Communication

and Gasoline Taxes

5%

Intergovernmental5%

Property Taxes7%

Licenses and Permits

1%

Prior Year Surplus

6%


Budget Summary

Expenses by Account

Account Expenses Fuel and Purchased Power $123,138,182 Personnel 181,242,198 Capital Outlay 117,471,951 Debt Service 61,038,452 All Other Operations and Maintenance 16,840,582 Internal Service Charges 58,281,347 Professional and Contractual 45,804,549 Utilities 13,706,002 Insurance and Fixed Charges 9,288,038 Total Expenditures $626,811,301

Figure B-8: Expenses by Account

Figure B-9: Expenses by Account Pie Chart

Fuel and Purchased Power

20%

Personnel29%Capital Outlay

19%

Debt Service10%

All Other Operations and

Maintenance3%

Internal Service Charges

9%

Professional and Contractual

7%

Utilities2% Insurance and

Fixed Charges1%


Budget Summary

Summary of All Funds – Revenues

Proposed Budget

Less Intracity

Transactions Net

Budget Revenues

General $137,346,428 49,915,475 87,430,953 Transportation 13,812,212 25,000 13,787,212 Stormwater Utility 7,821,730 7,821,730 Public Improvement 20,510,896 575,633 19,935,263 Community Redevelopment Agency 8,793,092 8,793,092 Community and Economic Development 1,305,577 1,305,577 Fleet Management 16,540,022 16,540,022 Purchasing and Stores 3,884,739 3,884,739 Facilities Maintenance 7,101,101 7,101,101 Information Technology 22,759,039 22,759,039 Wastewater System 65,536,632 13,476,822 52,059,810 Water Utilities 51,926,504 12,257,503 39,669,001 Parking System 1,228,444 348,000 880,444 RP Funding Center 10,549,963 4,437,941 6,112,022 Lakeland Linder International Airport 33,739,377 1,159,590 32,579,787 Solid Waste Management 20,406,933 20,406,933 Lakeland Electric Utilities 452,704,307 116,674,830 336,029,477

Total Revenues $875,966,996 $249,155,695 $626,811,301

Figure B-10: List of Revenues by Funds

Figure B-11: Revenues by Funds Pie Chart

General Fund14% All Other

Governmental Funds

8%

Water / Wastewater

Utilities15%

Electric Utility54%

All Other Enterprise

Funds9%


Budget Summary

Summary of All Funds – Expenditures

Proposed Budget

Less Intracity

Transactions Net

Budget Expenditures

General $137,346,428 3,679,358 133,667,070 Transportation 13,812,212 348,000 13,464,212 Stormwater Utility 7,821,730 918 7,820,812 Public Improvement 20,510,896 6,503,203 14,007,693 Community Redevelopment Agency 8,793,092 288,207 8,504,885 Community and Economic Development 1,305,577 1,305,577 Fleet Management 16,540,022 16,540,022 Purchasing and Stores 3,884,739 3,884,739 Facilities Maintenance 7,101,101 7,101,101 Information Technology 22,759,039 22,759,039 Wastewater System 65,536,632 18,113,364 47,423,268 Water Utilities 51,926,504 16,897,615 35,028,889 Parking System 1,228,444 85,715 1,142,729 RP Funding Center 10,549,963 5,609 10,544,354 Lakeland Linder International Airport 33,739,377 1,210,232 32,529,145 Solid Waste Management 20,406,933 4,106,833 16,300,100 Lakeland Electric Utilities 452,704,307 147,631,740 305,072,567

Total Revenues $875,966,996 $249,155,695 $626,811,301

Figure B-12: List of Expenditures by Funds

Figure B-13: Expenditures by Funds Pie Chart

General Fund21% All Other

Governmental Funds

7%

Water / Wastewater

Utilities13%

Electric Utility49%

All Other Enterprise

Funds10%


Budget Summary

General Governmental Funds* - Revenues

Source Revenues Property Taxes $35,856,099 Utility Dividend 44,140,397 LRMC Lease 14,378,615 Charges for Services 19,184,071 Grants 7,514,821 Gas Taxes 5,634,000 Sales & Utility Taxes 15,784,530 CRA Tax Increment 6,498,406 Debt Proceeds 4,000,000 All Other 29,841,067 Prior Year Reserves 6,757,929 Total Revenues $189,589,935

*Non-Enterprise FundsFigure B-14: General Government Funds Revenues

Figure B-15: General Governmental Funds Revenues Pie Chart


Budget Summary

General Governmental Funds* - Expenditures

Department Expenses Police $45,032,613 Fire 21,400,509 Public Works 7,579,709 Parks & Recreation 27,275,654 Debt Service 9,362,649 Capital Outlay 18,209,527 Community & Economic Development 8,902,813 General Government 10,153,460 Street Lighting 4,362,066 All Other 37,310,935 Total Revenues $189,589,935

*Non-Enterprise FundsFigure B-16: General Government Funds Expenditures

Figure B-17: General Governmental Funds Expenditures Pie Chart

Police24%

Fire11%

Public Works4%

Parks & Rec14%

Debt Service5%

Capital Outlay10%

Community and Economic Development

5%

General Government

5%

Street Lighting2%

All Other20%


Budget Summary

General Fund - Revenues

Source Revenues Property Taxes $35,856,099 Utility Dividend 44,140,397 Charges for Services 5,739,529 Grants 1,850,376 Utility Taxes & Franchise Fees 15,784,530 State Shared Revenues 10,317,300 Licenses and Permits 4,685,816 Fines and Forfeits 2,558,891 All Other 9,117,711 Prior Year Reserves 7,295,779 Total Revenues $137,346,428

Figure B-18: General Fund Revenues

Figure B-19: General Fund Revenues Pie Chart

Property Taxes26%

Utility Dividends32%

Charges for Services

4%

Grants1%

Utility Taxes &

Franchise Fees12%

State Shared Revenues

8.00%

License and Permits

3%

Fines and Forfeits

2%

All Other7%

Prior Year Reserves

5%


Budget Summary

General Fund - Expenditures

Department Expenses Police $45,032,613 Fire 21,400,509 Public Works 7,579,709 Parks & Recreation 27,275,654 Debt Service 257,727 Capital Outlay 218,299 Community & Economic Development 7,597,236 General Government 10,153,460 Street Lighting 4,362,066 All Other 13,469,155 Total Revenues $137,346,428

Figure B-20: General Fund Expenditures

Figure B-21: General Fund Expenditures Pie Chart

Police33%

Fire16%

Public Works5%

Parks & Rec19%

Debt Service

1%

Capital Outlay

1%

Community and Economic

Development6%

General Government

7%

Street Lighting3%

All Other9%


Ad Valorem Taxes

Millage Rate

An ad valorem tax is a tax based on the value of real estate or personal property. One mill is the equivalent of $1 per $1,000 of value. During Fiscal Year 2019, the millage rate was 5.4644. The rate for Fiscal Year 2020 will continue to remain at 5.4644.

Historic Millage Rates

Figure B-22: Historic Millage Rates Graph

Fiscal Year Millage

2011 4.1644

2012 4.1644

2013 4.6644

2014 4.6644

2015 4.6644

2016 5.5644

2017 5.5644

2018 5.5644

2019 5.4644

2020 5.4644

Figure B-23: List of Millage Rates by Year

0

1

2

3

4

5

6

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020


Position Changes by Fund and Department FY19-20

FY 2018 FY 2019 FY 2020 Net Change

Full- Time

Part-Time

Full-Time

Part-Time

Full-Time

Part-Time

Full-Time

Part-Time

City Commission 1 7 1 7 1 7 0 0

City Manager 14 0 14 0 15 0 1 0

Communications 8 0 8 0 7 0 -1 0

Legal 6 0 6 0 6 0 0 0

Retirement 3 0 3 0 4 0 1 0

Human Resources 25 1 25 1 25 1 0 0

Internal Audit 2 0 2 0 2 0 0 0

Risk Management 17 0 18 0 16 0 -2 0

Finance 42 1 43 1 44 1 1 0

Community Development 60 9 64 9 64 8 0 -8

Fire 171 1 177 1 178 1 1 0

Police 359 14 368 14 368 14 0 0

Public Works 115 0 116 0 117 0 1 0

Parks & Recreation 241 178 242 178 241 176 -1 -2

1064 211 1087 211 1088 208 1 -3

Comm Development/Housing Program 6 0 5 0 5 0 0 0

Fleet Management 28 0 28 0 28 0 0 0

Purchasing & Stores 16 0 16 0 16 0 0 0

Facilities Maintenance 62 0 64 0 64 0 0 0

Information Technology 81 0 81 0 80 0 -1 0

187 0 189 0 188 0 -1 0

RP Funding Center 50 305 51 305 51 305 0 0 Lakeland Linder International Airport 17 4 17 4 20 2 3 -2

Parking System 5 0 5 0 5 0 0 0

Stormwater 7 0 9 0 12 0 3 0

Solid Waste 65 0 66 0 66 0 0 0

Water 130 2 130 2 133 2 3 0

Wastewater 95 4 95 2 97 2 2 0

Lakeland Electric 547 27 538 27 531 27 -7 0

916 342 911 340 915 338 4 -2

Grand Total 2173 553 2192 551 2196 546 4 -5

Figure B-24: Position Changes by Fund and Department


Historical FT and PT Changes

The graph below represents a historical perspective of the number of positions on the City organizational charts. With changes in population, service areas and the economy, among other factors, the City adjusts the organizational structure to maintain service levels and remain responsive to the needs of its citizens and customers.

Figure B-25: Historical Full-time and Part-time Position Changes Graph

Position Changes Fiscal Year FT PT

2012 -49 -52

2013 -5.5 -7

2014 -81.5 -12

2015 24 63

2016 13 -5

2017 9 -5

2018 0 2

2019 19 -2

2020 4 -5

Figure B-26: Full-time and Part-time Position Changes by Year


Residents Per Employee

The number of residents per employee, when considered along with other factors, can reflect changes in productivity. Labor is one of the largest expenditures of the operating budget and changes in this indicator can reveal strengths or deficiencies in operations. An upward trend in residents per employee coupled with a consistent level of service can reflect increased productivity.

Figure B-27: Residents Per Employee Graph

Year Lakeland

Population*

LE Service Area

Population

Lakeland FTE’s

Residents per

Employee

2010 97,422 253,084 2,370.50 41.1

2011 97,690 253,009 2,373.50 41.2

2012 98,200 260,567 2,351.00 41.8

2013 99,630 262,288 2,374.00 42.0

2014 100,728 264,023 2,310.00 43.6

2015 100,728 271,379 2,326.67 43.3

2016 101,517 274,861 2,280.39 44.5

2017 104,185 279,331 2,442.00 42.7

2018 105,586 283,626 2,448.00 43.1

2019 107,552 288,157 2,465.50 43.6

*BEBR estimates, unless a Census year (latest 2010).

Figure B-28: Population, Full-Time Equivalents and Residents per Employee by Year

39.0

40.0

41.0

42.0

43.0

44.0

45.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Residents per Employee


Budget Overview and Financial Policies

Operating Budget Policies • The Budget shall be balanced by fund. Balanced by fund is defined as revenues plus Fund

Balance being equal to or greater than expenditures. Fund Balance is normally reserved forcapital projects/outlay or one-time expenditures and is generally not to be used foroperational expenditures.

• The Budget will provide for adequate maintenance of capital plant and equipment and fortheir orderly replacement.

• The City will maintain a budgetary control system to ensure it adheres to the Budget.

• Appropriation requests will be made by departments (i.e. City Manager, Police, etc.) in theGeneral Fund and by all other funds. These requests are approved by the City Commission.

• Fund balance is the difference between assets and liabilities in a governmentalfund. Resources in a fund other than the General Fund are either (1) required to be used forthe purpose of the fund or (2) intended by the government to be used for that purpose. Thegovernmental funds account for typically tax-supported activities of a government (asopposed to the proprietary funds, which account for self-financing, business-like activities)and include:

o The General Fund, where a government accounts for everything not reported in anotherfund

o Special Revenue Funds, for reporting specific revenue sources that are limited to beingused for a particular purpose

o Debt Service Funds, which account for the repayment of debto Capital Project Funds, which track the accumulation and use of resources for

constructing, acquiring and rehabilitating capital assets, such as buildings and roadso Permanent Funds, where a government reports principal amounts that are restricted to

being invested to produce income but cannot be spent

• Unreserved Fund Balance should be approximately 45-60 days of the operating revenues ofthe General Fund to account for unforeseen items and events that occur during the course ofa fiscal year. The Fund Balance will act as a cushion or “budget stabilization fund” for theexpenditures financed within that fund.

• The City will protect itself against catastrophic losses through a combination of good riskmanagement, traditional insurance and, where prudent, actuarially funded self-insuranceprograms.

• Recovery of the specific costs of municipal services will be allocated to the appropriateusers, wherever possible and practical, and shall be accounted for within enterprise fundsmaintained by the City on a full accrual basis.



Operating Budget Policies Continued • Internal Service Funds shall be self-supporting and shall recover the cost of the services

they provide based on a rational allocation of costs to the benefiting City Departments.

• The City will strive to have all Enterprise Funds be self-supporting to the extent practical,including debt service and capital improvements. All costs associated with these operationsshall be fully accounted for within the Enterprise Fund and any subsidies required for theseoperations shall be documented as Interfund Transfers.

• Although not required by State Law, Internal Service Funds (except for the internal loan andself-insurance funds) and Enterprise Funds will be governed by legally adopted annualbudgets for cost control and administrative purposes.

• In no case will any fund operate in a manner that results in a continuing annual deficit thatcould result in a negative “unappropriated surplus” (defined as current assets excludinginventories less current liabilities including the long-term portion of accrued payroll liabilities).

• Operating budgets are prepared on a modified accrual basis, insuring that budgetedexpenditures within an annual planning period can be financed from available, spendableresources.

• In the Audited Financial Statements, the Government-Wide and Proprietary Funds arereported using the Full Accrual Basis of Accounting.

Revenue Policies

• As much as possible, subject to State Law and voter approval, the City will seek to maintaina diversified and stable mix of revenue sources.

• The City will pursue collection of revenues levied against the users of public services.

• User fees and charges will be established with consideration of the recovery of the full costof providing the related service, to the extent practical.

• In preparing the Budget, the City Manager will estimate revenues using a conservative,objective and analytical process.

• Non-recurring revenues and one-time revenues will not be relied upon to finance the cost ofrecurring expenditures. Non-recurring revenues and one-time revenues should be used fornon-recurring expenditures.

• All grant applications will be prepared with full consideration matching costs and on-goingrecurring costs to be financed from local revenue sources. All grant applications shall beauthorized by the City Commission.



Capital Improvement Policies • The City develops a ten-year Capital Improvement Plan (CIP).

• Capital project budgets will be adopted on a project basis at the inception of the project.

• The City will coordinate development of the Capital Improvement/Replacement Budget withthe development of the annual operating Budget. Each capital project is reviewed for itsongoing future impact on the operating budget.

• The City will use the following criteria to evaluate the relative merit of each capital projectbeing considered for funding within its CIP:

o Projects specifically included in an approved capital asset replacement schedule willreceive priority consideration.

o Capital Projects that will reduce recurring operating costs will receive priorityconsideration.


Budgeted Funds Relationship by Program

Figure B-29: Budgeted Funds Relationship by Program

Pro

gram

Act

ivit

yG

ener

alR

P F

un

din

g

Cen

ter

CRA

Ele

ctri

c

Uti

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Soli

d W

aste

Stor

mw

ater

Par

ks,

Rec

reat

ion

& P

rop

erti

es

Lak

elan

d

Lin

der

Reg

ion

al

Air

por

t

Polic

e Se

rvic

esx

xx

x

Fire

figh

ting

Ser

vice

sx

xx

x

Libr

ary

Serv

ices

xx

Publ

ic In

form

atio

nx

xx

xx

xx

x

RP F

undi

ng C

ente

rx

xx

xx

Aff

orda

ble

Hou

sing

xx

xx

xx

Build

ing

Insp

ecti

onx

xx

xx

Code

Enf

orce

men

tx

xx

xx

xx

CRA

Dev

elop

men

t Rev

iew

xx

xx

x

Plan

ning

Ser

vice

sx

xx

x

Elec

tric

Uti

lity

x

Lake

s an

d St

orm

wat

erx

x

Solid

Was

tex

xx

xx

Wat

erx

xx

xx

Was

tew

ater

xx

xx

x

City

Cle

rkx

City

Com

mis

sion

x

Com

mun

ity

Rela

tion

sx

Aqu

atic

sx

x

Cem

eter

ies

x

Clev

elan

d H

eigh

ts G

olf C

ours

ex

xx

x

Park

sx

xx

Recr

eati

on a

nd F

acili

ties

xx

xx

Faci

litie

s M

aint

enan

cex

x

Flee

t Man

agem

ent

xx

xx

xx

xx

Info

rmat

ion

Tech

nolo

gyx

xx

xx

xx

x

Purc

hasi

ng a

nd S

tore

xx

xx

xx

xx

Gov

erna

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Adm

inis

trat

ion

x

Non

-Dep

artm

enta

lx

Lake

land

Lin

der R

egio

nal

xx

xx

Park

ing

Serv

ices

xx

x

Faci

litie

s Co

nstr

ucti

onx

Faci

litit

es M

aint

enan

cex

Tran

spor

tati

onT

ran

spor

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on

Serv

ices

$52

.4 M

illi

on

Pu

bli

c Sa

fety

$69

.9 M

illi

on

Cult

ura

l &

Com

mu

nit

y

Serv

ices

$15

.9 M

illi

on

Eco

nom

ic &

Com

mu

nit

y

Dev

elop

men

t

$22

.3 M

illi

on

Par

ks,

Rec

reat

ion

and

Pro

per

ties

$36

.1 M

illi

on

Park

s, R

ecre

atio

n &

Prop

erti

es

En

viro

nm

enta

l &

Uti

lity

Ser

vice

$41

2.8

Mil

lion

Operations

Com

mun

ity

Safe

ty

Cult

ural

&

Com

mun

ity

Serv

ices

Econ

omic

&

Com

mun

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Dev

elop

men

t

Envi

ronm

enta

l &

Uti

lity

Serv

ice

Legi

slat

ive

Act

ivit

ies

Legi

slat

ive

Act

ivit

ies

$5.9

Mil

lion

Acc

ou

nti

ng

Sup

por

t Se

rvic

es

$11

.5 M

illi

on

Supp

ort S

ervi

ces

The Budget Overview provides highlights of the FY2020 ...Budget Highlights The net operating budget...

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Transcript of The Budget Overview provides highlights of the FY2020 ...Budget Highlights The net operating budget...