Christopher M. Quinn, MACC, CPA, CFE, CGFO, CGMA Year to Date Budget Through February 2017 Tuesday, April 11th 2017 Christopher M. Quinn, MACC, CPA, CFE, CGFO, CGMA Finance Director Lina Williams Budget Coordinator

Budget Preparation Timeline January - March First Quarter Review Annual Financial Audit Presentation of Annual Progress Report Survey Results to City Council Annual Update of the Strategic Action Plan April Revise 10 Year Infrastructure Plan Year to Date Budget Results Presentation Second Quarter Review Departments Begin FY 2018 Budget Preparation Fund Accounting & Revenue Presentation

Budget Preparation Timeline May – June Long Term Financial Planning Presentation Property Tax Review Presentation July - August General Fund Budget Workshop Adopt Maximum Millage Rate (August 4th deadline) Third Quarter Review Proprietary, Special Revenue & Capital Funds Budget Workshop Final Proposed Budget Presentation

Budget Preparation Timeline September Public Hearing to Tentatively Adopt Millage Rate & Budget Public Hearing to Adopt Final Millage Rate & Budget October – December FY 2017 Year End Close-out End of Year Review with Departments

2017 Budget by Fund A LOOK AT THE BUDGET BY FUND FOR FY 2017

2017 Revenues by Source THIS IS OUR REVENUES BY SOURCE FOR THE FY 2017 BUDGET – YOU CAN SEE AD VALOREM TAXES IS ONLY 11% OF TOTAL REVENUE. CHARGES FOR SERVICE IS OUR LARGEST REVENUE SOURCE.

2017 Ad Valorem Taxes by Use Ad Valorem Taxes, 11.0% $17.8 million THIS SHOWS WHAT THAT 11% SLICE OF THE PIE, OUR AD VALOREM TAXES, PAYS FOR. FIRE PROTECTION AND POLICE PROTECTION ACCOUNTS FOR MORE THAN HALF. THE REMAINDER IS STREETS & PARKS MAINTENANCE WITH A SMALL PORTION GOING INTO OUR STORMWATER FUND.

2017 Expenditures by Category A LOOK AT OUR 2017 EXPENDITURES BY CATEGORY. OPERATING AND PERSONNEL ACCOUNT FOR 50% OF THE TOTAL BUDGET. CAPITAL OUTLAY IS CLEARLY THE NEXT LARGEST CATEGORY WITH THE REMAININDER BEING DEBT SERVICE, GRANTS, TRANSFERS AND CONTINGENCY

Year to Date Revenue

State Pass-Through Revenue Through February, most State Revenue is trending slightly behind budget. THIS IS A LOOK AT OUR COLLECTIONS THROUGH FEBRUARY FOR WHAT WE CALL OUR STATE PASS THROUGH REVENUE. CURRENTLY ALL OF THESE REVENUE SOURCES ARE TRENDING SLIGHTLY BEHIND BUDGET. WITH THE EXCEPTION OF THE COMMUNICATIONS SERVICES TAX WE EXPECT REVENUE TO INCREASE DURING THE SECOND HALF OF THE YEAR.

2016 Taxable Sales in Palm Coast increased 5.57% over 2015 THIS IS A LOOK AT OUR TAXABLE SALES FOR THE PAST 10 YEARS. AS YOU CAN SEE THEY HAVE INCREASED YEAR OVER YEAR SINCE 2009 WITH 2016 INCREASING 5 ½% OVER 2015

General Fund Revenue THIS GRAPH SHOWS A COMPARISON OF THIS YEAR’S TO DATE REVENUE COLLECTIONS IN THE GENERAL FUND AS COMPARED TO FY 2015 + 2016 AND COMPARED TO THE CURRENT YEAR’S BUDGET. IF YOU LOOK AT THE BLUE BAR AS IT COMPARES TO THE RED DOTTED LINE, REVENUES ARE CURRENTLY RIGHT ON TRACK.

Utility Fund Revenue $36,513,099 Revenue Estimate (excluding debt) $13,083,132 Year to Date Received (through February) 36% Usage is billed in arrears % Received Through February THIS IS A LOOK AT OUR UTILITY FUND REVENUE, EXCLUDING DEBT, THROUGH FEBRUARY. KEEPING IN MIND WE BILL IN ARREARS SO COLLECTIONS ARE FOR ONLY 4 MONTHS (OR 33%) OF THE YEAR SO FAR, YOU CAN SEE WE ARE RIGHT ON TARGET.

Commercial & Residential Utility Bills Through February, 4% higher than 2014 WE CONTINUE TO SEE GROWTH IN THE AREA OF NEW UTILITY INSTALLATIONS AS SHOWN IN THIS GRAPH WHICH REFLECTS THE NUMBER OF UTILITY BILLS ON A MONTHLY BASIS. YTD UTILITY BILLS THROUGH FEBRUARY 2017 ARE 4% HIGHER THAN 2014.

Utility Fund Revenue THIS IS A LOOK AT OUR UTILITY FUND REVENUE THROUGH FEBRUARY AS COMPARED TO THE LAST 2 FISCAL YEARS AND COMPARED TO THE CURRENT YEAR’S BUDGET. THE BLUE BARS REPRESENT THE CY ACTUALS AND THE RED DOTTED LINE IS THE CY BUDGET

Building Fund Revenue Revenue Estimate $1,731,650 $877,654 Year to Date Received (through February) 51% % Received Through February HERE IS A LOOK AT THE BUILDING FUND REVENUE THROUGH FEBRUARY. AS YOU CAN SEE REVENUE IS AHEAD OF BUDGET AT 51% RECEIVED AFTER ONLY 41% OF THE FISCAL YEAR IS COMPLETE.

Single Family Residential Permits Through February, Single Family residential permits have increased 62% over 2016 Through February, 62% higher than 2016 OUR SF RESIDENTIAL PERMITS CONTINUE TO INCREASE EACH MONTH. THIS YEAR TO DATETHROUGH THE MONTH OF FEBRUARY WE’VE SEEN AN INCREASE OF 62% (95 PERMITS) OVER 2015.

Building Fund Revenue THIS IS A GRAPHICAL LOOK AT OUR BUILDING FUND REVENUE AS IT COMPARES TO THE LAST 2 FY AND COMPARED TO THE CURRENT YEAR BUDGET. BLUE BARS INDICATE THE CURRENT YEAR THROUGH FEBRUARY AND YOU CAN SEE COMPARED TO THE RED DOTTED LINE (BUDGET) THE ACTUAL REVENUE IS HIGHER.

Year to Date Expenditures

General Fund Expenditures WE START OFF WITH A LOOK AT OUR GENERAL FUND EXPENDITURES. ONCE AGAIN THE BLUE BAR IS OUR CURRENT YEAR’S EXPENDITURES. THE RED DOTTED LINE REPRESENTS THE BUDGET AND YOU CAN THAT OVERALL SEE WE ARE BELOW BUDGET THROUGH FEBRUARY.

Administration & Finance Included: City Manager’s Office City Clerk’s Office City Council City Attorney Human Resources Central Services Communications & Marketing Finance $3,616,094 Approved Budget $1,195,954 Year to Date Spent (through February) 33% % of Budget Spent Through February THIS IS A LOOK AT OUR ADMINISTRATIVE SERVICES & FINANCE DEPARTMENTS COMBINED. YOU’LL SEE THE WHITE BLOCK IN THE UPPSER RIGHT SHOWS WHICH DIVISIONS ARE INCLUDED IN THIS. EXPENDITURES THROUGH FEBRUARY ARE BELOW BUDGET.

Community Development Included: Code Enforcement Planning Construction Management & Engineering Building $7,205,670 Approved Budget $2,558,954 Year to Date Spent (through February) 36% % of Budget Spent Through February THIS IS THE COMMUNITY DEVELOPMENT, WHICH INCLUDES CE, PLANNING, CM&E AS WELL AS OUR BUILDING DIVISION. COMBINED, ALL ARE BELOW BUDGET WITH 36% EXPENDED THROUGH FEBRUARY.

Public Safety Approved Budget $10,653,399 Included: Fire Department Law Enforcement $10,653,399 Approved Budget $4,275,131 Year to Date Spent (through February) 40% % of Budget Spent Through February THIS IS A SUMMARY OF OUR EXPENDITURES RELATED TO PUBLIC SAFETY WHICH INCLUDES FIRE AND LAW ENFORCEMENT. EXPENDITURES THROUGH FEBRUARY ARE BELOW BUDGET.

Parks & Recreation $3,366,011 Approved Budget $1,130,268 Included: Parks & Recreation Tennis Golf $3,366,011 Approved Budget $1,130,268 Year to Date Spent (through February) 34% Seasonal % of Budget Spent Through February THIS IS A SUMMARY OF OUR PARKS & RECREATION EXPENDITURES, WHICH INCLUDES TENNIS AND GOLF AS WELL, WE ARE BELOW BUDGET HOWEVER KEEP IN MIND OF COURSE THESE EXPENSES ARE SEASONAL. WE’LL ESPECIALLY SEE AN INCREASE DURING THE 4TH QUARTER RELATED TO OUR SUMMER CAMP

Public Works Approved Budget $19,286,185 Included: Streets Parks Maintenance Facilities Maintenance Fleet Management Stormwater Maintenance $19,286,185 Approved Budget $6,486,718 Year to Date Spent (through February) 34% % of Budget Spent Through February PUBLIC WORKS INCLUDES OUR STREETS & PARKS MAINTENANCE DIVISIONS AS WELL AS FACILITIES, FLEET AND STORMWATER MAINTENANCE. THE DEPARTMENT OVERALL IS BELOW BUDGET THROUGH FEBRUARY.

Wastewater Operations Utility Included: Water Operations Wastewater Operations Customer Service $23,905,689 Approved Budget (excluding debt) $9,053,293 Year to Date Spent (through February) 38% % of Budget Spent Through February THE UTILITY DEPARTMENT EXPENDITURES, EXCLUDING DEBT SERVICE, ARE BELOW BUDGET OVERALL. THIS INCLUDES ALL OF OUR UTILITY DIVISIONS BUT NOT INCLUDING THE UTILITY CAPITAL FUND.

Utility Fund Expenditures THIS IS A GRAPHICAL LOOK AT OUR UTILITY FUND EXPENDITURES AS A WHOLE. YOU’LL NOTICE A JUMP IN JANUARY RELATED TO THE SRF LOAN. OVERALL HOWEVER, THE EXPENDITURES THROUGH FEBRUARY ARE BELOW BUDGET.

Information Technology $2,329,540 Approved Budget $982,904 Year to Date Spent (through February) 42% Annual maintenance fees are paid at the beginning of the fiscal year % of Budget Spent Through February

Summary of Operating Budgets $70,362,588 Approved Budget $25,683,222 Year to Date Spent (through February) 37% % of Budget Spent Through February THIS IS A SUMMARY OF THE OPERATING FUNDS AND THEIR RELATED EXPENDITURES. OVERALL YOU CAN SEE WE ARE BELOW BUDGET.

Total Salaries & Wages THIS IS A LOOK SPECIFICALLY AT SALARIES & WAGES THROUGH FEBRUARY. YOU CAN SEE THESE EXPENDITURES ARE WITHIN BUDGET. YOU CAN ALSO SEE HERE HOW OUR CY BUDGET FOR SALARIES COMPARES TO THE LAST 2 YEARS.

Total Operating Expenditures

Summary of Capital & Other Budgets At or above target No budgetary concerns at this time Revenues At or below target Year to Date Spent (through February) Through February

Budgetary Impact of Hurricane Matthew $2.5 million Estimated Budgetary Impact 85% from FEMA and Insurance Estimated Reimbursement Disaster Reserve Fund Code Enforcement - Removal of hazard trees, running $31K over budget. Areas Impacted

Looking Ahead April 25th Fund Accounting & Revenue Presentation May 15th Long Term Financial Planning Presentation June 13th Property Tax Presentation July 11th Budget Workshop - General Fund July 18th Adopt Maximum Millage Rate (August 4th deadline) August 8th Budget Workshop – Proprietary Special Revenue Funds & Capital Funds August 29th Final Proposed Budget Presentation September: Public Hearing to adopt tentative millage rate and Budget & Final Public Hearing to adopt final millage and budget