Short Term Factors
The City's FY24 Budget totals $1.1 billion, which includes $868.4 million for operating expenses and $253 million for capital investment. It was developed through a year-round, multi-stage process involving public participation, City Commission input, and a focus on the priorities outlined in the City's Strategic Plan.

For the FY24 Budget, significant factors in the short term that impact services and citizens include:

Employer of Choice
Our priority to be the industry leader in providing public services requires recruiting, hiring, and retaining the best employees. In FY24, to ensure we are the employer of choice in a competitive labor market, employees will receive a minimum increase of $1,900 for those making less than $38,000, for those making more than $38,000, a 5% across-the-board increase for general employees, and a competitive package for our Police collective bargaining units. Competitive pay supports the City's other strategies for the workforce:

• Goal 3: To be an impact-focused workforce that is inclusive, pioneering, and technology-driven.
• Goal 3 – I1 - Recruit employees from local educational and vocational training centers.
• Goal 3 – I2 - Have a City workforce that is reflective of the community's demographics.
• Goal 3 – I3 - Develop and implement a City-wide Talent Development Plan.
• Objective 3A.3 - Employee satisfaction rate on annual Employee Engagement & satisfaction surveys.
• Objective 3A.5 - Grow employee participation in professional development programs by 10 percent by 2024.

Public Safety
Increased the Tallahassee Police Department (TPD) budget by approximately 14% ($9.5 million) to reduce violent crime. The additional funding will add 20 new officers, allow investment in advanced video, software, and artificial intelligence technology, and increase wages to ensure the ability to retain and recruit well-qualified sworn officers. When comparing cost per capita to peer Florida cities, TPD currently ranks 11 out of 12. The department operates, however, with only 52% of the national average of officers per capita, which strains vital public safety resources. The City's ratio of sworn officers per 1,000 citizens has dropped since the 1990s when Tallahassee had 82% of the national average of officers per capita.

FY24 is the second year of a five-year investment to combat Gun Violence, with $1 million a year in directed funding for programs designed to interrupt the cycle of violence through local partnerships.

• Objective 5A - Implement proactive community-based solutions to enhance public safety.
• Objective 5A-2 - Number of community-oriented policing activities held annually.
• Objective 5A-3 - Number of Community Liaison Officers deployed.

Affordable Housing
Investing in affordable housing is investing in a healthier community and a more robust economic future. Due to the City's strategic policymaking, land use flexibilities, innovative programming, and leveraging unprecedented commitments of more than $18 million in federal, state, and local dollars, approximately 3,000 certified affordable housing units were recently constructed or are in the development pipeline locally. Three thousand units is more than the number of affordable units built in the last 25 years combined. New, affordable homes are just one piece of the puzzle. The City's affordable housing programs have also helped keep nearly 3,600 people in their homes over the past five years through programs like down payment assistance, façade repairs, home rehabilitation, and homelessness prevention. This work represents just a portion of the $49.5 million invested in affordable housing efforts over the past five years.

• Objective 2C – Facilitate and encourage the construction of affordable housing units.

Public Infrastructure
The total capital budget for FY24 is $253 million, which funds critical investments in the City's infrastructure. Public infrastructure and transportation networks connect our community, goods, and services through roadways, walkways, and public transit facilities.  The City's 650 miles of roads are in good condition, and the current level of maintenance is adequate to maintain the standard conditions. The network of sidewalks continues to grow in line with the City's strategic priority to add ten new sidewalk projects each year. Recent new additions include Highland Street and Hillsborough Street. Local neighborhoods are on track to be more walkable than ever through the combined results of the City, Blueprint Intergovernmental Agency, and Community Redevelopment Agency projects.

Also included in the $253 million investment are capital improvements to our utility systems, contributing to their service and safety reliability. Overall, capital investments are directed by the Strategic Plan and support its objectives:

• Objective 4A – Be a leader in utility service delivery.
• Objective 4B – Be a leader in environmental stewardship.
• Objective 4C – Ensure safe and clean drinking water.
• Objective 4D – Enhance the City's network of roads, bike lanes, and sidewalks.
• Objective 4E – Ensure public transit is accessible, efficient, and equitable.

Fuel Cost Management
Despite nationwide inflation and volatile fuel markets, the City's utilities remain reliable and affordable. Monthly electric bills continue to beat the state average for both municipal and investor-owned utilities ($127.92 vs.  $138.66 and $168.38, respectively).  As a result, between April 2022 and March 2023, Tallahassee customers paid $91 million less for electricity than customers of other private utilities.

Continued fuel cost management is a priority that ensures that electric and gas customers pay less for power by forecasting and monitoring economic trends and market costs. In addition to providing community savings, fuel management supports Strategic Plan goals for financial planning.

• Objective 3D – Maintain the City's strong financial standing and fiscal stewardship practices.

The FY24 Budget reflects the City's commitment to respond to these immediate needs in the short term.

Economic Factors

Significant economic factors impacting the FY24 budget include:

• Workforce costs will remain high through FY24, and our strategy of providing competitive wages will help the City recruit, hire, and retain the best employees.
• While inflation has slowly moved from the prior year's average of 8% to 3.7% in October, the cumulative impact on costs will continue to impact fuel, contracts, supplies, and equipment due to inflation and the slow post-pandemic recovery of the supply of goods and the supply chain in FY24.
• While gas prices have decreased since their peak in April 2022, they have not returned to pre-pandemic prices, which inflates the City’s fuel purchase expenses but also contributes to the cumulative impact driving the cost for contracts, supplies, and equipment due to inflation and the slow post-pandemic recovery of the supply of goods and the supply chain in FY24.

The City's priorities, as presented in the Strategic Plan, are shown below with direct links to the Strategic Plan document to provide more detail.

• Impact on Poverty
• Economic Development
• Organizational Effectiveness
• Public Infrastructure
• Public Trust
• Public Safety
• Quality of Life

These principles guide budgetary planning. The City will continue prioritizing investment in targeted areas highlighted by the strategic plan and the City Commission.

General Fund

This fund supports many core city services, including police, parks and recreation, road maintenance, housing initiatives, economic development, land use, environmental regulation, and animal services. The general government also provides an operating subsidy to Star Metro, the City's transit system.

Fund Type
Government

Surplus
City policy determines the use of any operating fund surplus at year-end and a target level for the deficiencies reserve. Any surplus at year-end is first added to the deficiencies reserve until the amount reaches the target. After fully funding the deficiencies fund, any remaining balance supports the subsequent year’s operating budget, up to a maximum of 5% of general government operating expenditures, and to buy down debt-financed capital improvement projects.

General Fund Transfer
$4.3 million in new funding is budgeted to support projects in FY24.

Operating Reserve
The FY24 revenue budget does not include transfers from General Fund Operating Reserves.

Other
Deficiencies Reserve: If the subsequent fiscal year ends with an operating deficit due to unforeseen circumstances, up to 5% of FY24 year-end surpluses will be available from the Deficiencies reserve as needed.
Fleet Reserve: The FY24 contribution is $2.2 million
RR&I: Undesignated balance set at a maximum of 3% of general government capital projects.

The Growth Management Department is responsible for enforcing the City’s building codes through the review of building plans, permitting, and the inspection process. Specific actions include ensuring that planned construction complies with applicable codes, authorizing utility connections and issuing certificates of occupancy, providing centralized intake and coordination of all permit applications, administering contractor licensing regulations, and enforcing the rooming house ordinance.

Fund Type
Enterprise

Surplus
To the extent available and appropriable, all year-end surpluses will be retained within the fund and made available for operating expenses and capital projects.

Operating Reserve
The FY24 revenue budget does not include transfers from operating reserves.

Other
Not applicable.

Established in 1902, the Tallahassee Fire Department (TFD) is a municipal fire department that provides fire suppression and emergency medical services in the City and the unincorporated areas of Leon County, Florida. The department protects lives, property, and the environment from hazardous conditions threatening our community. This mission is accomplished by providing prevention and protective services specific to the incident need.

Fund Type
Enterprise

Surplus
Retained for fire operating and capital costs.

General Fund Transfer
No transfer.

Operating Reserve
No reserve.

Other
Not applicable.

The Electric Utility serves over 128,000 customers in a 221-square-mile service territory. It is the fourth-largest municipal electric utility in Florida and the 27th-largest of over 2,000 municipal systems in the United States. The utility comprises six significant divisions: Finance and Administration, Power Delivery, Energy Supply, System Operations, System Compliance, and System Integrated Planning. The Electric Utility develops a 10-year sales forecast annually to use in the annual budget process.

Fund Type
Enterprise

Surplus
Operating fund balance after General Fund transfer minus bond reserves used to fully fund the operating reserve, with the balance designated for electric system capital projects.

General Fund Transfer
The transfer is based on CPI. The transfer for FY24 is $36.8 million.

Operating Reserve
The operating reserve comprises four subcomponents, with the primary purpose of providing working capital. The working capital component is targeted to having a balance of 60 to 90 days of operating expenses. The other three components are fuel risk management, emergency reserve, and rate stabilization.

Other
RR&I: RR&I: Transfer budgeted at a level equivalent to depreciation expense as provided in the Comprehensive Annual Financial Report (CAFR).

The City of Tallahassee's Natural Gas Utility has provided clean, safe, economical, and reliable natural gas to residents and businesses in a growing service area for over 60 years. The utility safely provides natural gas energy through hundreds of miles of underground gas mains, which serve over 34,000 customers in the Leon, Gadsden, and Wakulla areas. The highly trained staff works to ensure the distribution system's integrity and dependability and assist customers with energy conservation and cost savings through natural gas use.

Fund Type
Enterprise

Surplus
Designated to fund the operating reserve fully and, after that, to fund gas system capital projects

General Fund Transfer
The transfer is based on CPI. The transfer for FY24 is $3.5 million.

Operating Reserve
Funded at 25% of the previous year’s General Fund transfer and used to meet General Fund transfer, if required.

Other
RR&I: Transfer budgeted at a level equivalent to depreciation expense as provided in the applicable rate study.

Approximately 88,000 service points are connected to the City’s water distribution network that provides potable water to essentially all developed areas in the City and certain contiguous county areas. More than 9 billion gallons are produced annually by an around-the-clock operation that utilizes 27 water production facilities, eight elevated storage tanks, 7,364 fire hydrants, and 1,245 miles of water distribution pipes.

Fund Type
Enterprise

Surplus
Designated to fund the operating reserve fully and, after that, to fund water system capital projects.

General Fund Transfer
The transfer is based on CPI. The transfer for FY24 is $4.3 million.

Operating Reserve
Funded at 25% of the previous year’s General Fund transfer and used to meet General Fund transfer, if required.

Other
RR&I: Transfer budgeted at a level equivalent to depreciation expense as provided in the Comprehensive Annual Financial Report (CAFR).

The City’s Wastewater Utility is responsible for collecting, treating, and recycling wastewater and for treating commercially pumped sewage. As part of the City’s commitment to protecting the environment, treatment processes utilized at the Thomas P. Smith (TPS) Advanced Water Reclamation Facility result in effluent that meets and exceeds regulatory requirements. On average, the wastewater system collects and treats more than 17.2 million gallons per day.

Fund Type
Enterprise

Surplus
Designated to fund the operating reserve fully and, after that, to fund sewer system capital projects.

General Fund Transfer
The transfer is based on CPI. The transfer for FY24 is $5.9 million.

Operating Reserve
Funded at 25% of the prior year’s General Fund. Used to meet General Fund transfer, if required.

Other
RR&I: Transfer budgeted at a level equivalent to depreciation expense as provided in the Comprehensive Annual Financial Report (CAFR).

The Aviation Fund supports operations at the Tallahassee International Airport (TLH), including the Aviation Department’s six divisions and the Airport Police and Airport Parking divisions. The Fund also contributes to the Fire Fund for the Tallahassee Fire Department’s operations at the Airport.

The Airport hosts three airlines (American Airlines, Delta Air Lines, and Silver Airways) that deliver non-stop service to seven destinations and provide amenities to customers, including valet parking, long- and short-term parking, a cell phone parking lot, rental car options, a public waiting area, business center, dining options, and more. Airport staff also announced JetBlue’s intent to serve Tallahassee International Airport with direct air service to and from Fort Laurderdale-Hollywood International Airport. To continue the five-year goal of making a $1 billion annual economic impact, the Tallahassee International Airport continues the construction of an International Passenger Processing Facility while working to complete the necessary steps to become an authorized Foreign Trade Zone.

Fund Type
Enterprise

Surplus
Retained within the fund and allocated according to the airline use agreement.

General Fund Transfer
No transfer to General Fund. Full recovery of cost.

Operating Reserve
A minimum of 1/12th of the Airport's operating and maintenance budget is designated for unanticipated non-recurring expenditures.

Other
RR&I: Not applicable.

StarMetro, the public transit service for the City of Tallahassee, operates 14 weekday cross-town routes, including university service for Florida State University (FSU) and student ridership programs for Florida Agricultural & Mechanical University (FAMU), Tallahassee Community College (TCC) and K-12 students in Leon County.

The Fixed Route and Para-transit department provides accessible, equitable, and efficient transit services to citizens of Tallahassee, visitors, and commuters. Transit services are provided 363 days a year and assist in emergency situations as needed.

Fund Type
Enterprise

Surplus
Retained within the fund for operating expenses and capital projects.

General Fund Transfer
Transfers in from the General Fund support StarMetro operational deficits, when necessary.

Operating Reserve
No Reserve.

Other
RR&I: Not applicable.

The Solid Waste Fund provides garbage, recyclable materials, bulk, and yard waste collection for all residential customers citywide, and garbage and recyclable materials collections for commercial customers. Currently, the City serves 51,572 residential, 25,308 commercial, and 1,835 commercial recycling service points. Services include:

1. residential bi-weekly curbside collection of bulky items, yard waste, electronics, and white goods,
2. dumpster services for commercial customers collected by front-end loading trucks at night, up to six times per week,
3. commercial container service with roll-off or hook trucks up to six times per week,
4. commercial recycling up to five days per week, as well as other enhanced services, and,
5. dead animal removal.

Fund Type
Enterprise

Surplus
Retained for rate stabilization reserve.

General Fund Transfer
Each year the transfer is increased by CPI.  The transfer for FY23 is $2.3 million.

Operating Reserve
No Reserve.

Other
RR&I: Not applicable.

The Stormwater Fund manages and develops infrastructure for drainage, flood prevention, and retention of stormwater run-off to prevent pollutants from entering the aquifer. Work includes capital project oversight, maintenance of drainage infrastructure such as retention ponds and drainage outfalls, monitoring of lakes and groundwater, and raising public awareness of the environmental impacts of pollution, such as the Think About Personal Pollution (TAPP) program. The Stormwater Utility serves 77,000 residential customers and 6,000 non-residential customers through operational activities and the design and construction of drainage facilities infrastructure. This includes the maintenance of drainage facilities and ponds throughout the City.

Fund Type
Enterprise

Surplus
Retained for stormwater system capital projects.

General Fund Transfer
The transfer to the General Fund represents administrative cost sharing only.

Operating Reserve
No Reserve.

Other
RR&I: Maximum of 5% of capital projects funding sources, with a minimum level of 3%.

The Golf Fund supports Hilaman Golf Course, which offers a community-wide golf experience through daily rounds, driving range use, charity events, tournaments, and more. Hilaman also has a Pro Shop, restaurant, and outdoor deck area that provide a well-rounded experience. The course is open daily from 7:30 a.m. until dark, and course operations are led by a General Manager and two full-time staff members: a foreman and a course maintenance supervisor. In addition, Hilaman has over two dozen part-time employees who help with various day-to-day operations.

Fund Type
Enterprise

Surplus
Retained for Golf operating and capital costs.

General Fund Transfer
No transfer.

Operating Reserve
No reserve.

Other
Not applicable.

The City Commission adopted an ordinance on September 10, 1986, establishing the Cemetery Perpetual Care Trust Fund (PCTF) to maintain and operate the City cemeteries. Proceeds from this trust are transferred annually to support operations within the Cemetery Division. The City of Tallahassee owns and maintains five cemeteries totaling 133 acres. The City also provides maintenance services for the historic Plantation Cemetery.

Fund Type
Trust

Surplus
Retained for cemetery operating and capital costs.

General Fund Transfer
No transfer.

Operating Reserve
No reserve.

Other
Not applicable.

Florida Statutes, Chapter 166 – This statute authorizes municipalities to levy taxes, issue licenses, and set user fees to raise money necessary to conduct municipal government activities. This chapter also requires that local governments adopt a balanced budget. The tentative balanced budget must be posted on the municipality’s official website at least 2 days before the budget hearing, held pursuant to s. 200.065 or other law, to consider such budget. The final adopted balanced budget must be posted on the municipality’s official website within 30 days after adoption.

Comprehensive Plan – The Tallahassee-Leon County 2010 Comprehensive Plan was originally adopted by ordinance in FY 1990 and is updated with biannual amendment cycles. The Plan includes capital improvements, transportation, historic preservation, utilities, recreation, and other elements which provide a framework for allocating budget resources. The Capital Projects Summary consists of a listing of capital projects that address Comprehensive Plan initiatives by eliminating deficit levels of services or by maintaining existing levels of service.

Financing Policy, No. 224 Commission Policies – The financing policy establishes guidelines for the distribution of year-end surpluses, transfers from the utilities to the General Fund, types and amounts of operating reserves, and funding for capital projects from undesignated fund balance year-end revenues. The policy also provides for full recovery of cost for enterprise funds, limits non-utility fee increases to a maximum of 20% per year unless otherwise approved by the City Commission, and allows discount fees for recreational programs for youth, seniors, and disabled citizens. The “Finance Policy Summary” chart shows the policy's requirements as applied to each fund.

Risk Management Policy/Self-Insurance, No. 214 Commission Policies – This policy creates an internal service fund for payment of anticipated claims and judgments for coverage areas defined in the policy. In addition, a special Insurance Reserve Fund is established and funded to meet unanticipated losses from catastrophic events or claims in excess of the Risk Management Fund. This reserve is set at 150% of the average claims for the past five years or $3,000,000, whichever is greater.

Capital Project Management, No. 218 Commission Policies – This policy provides for the preparation of an annual capital budget and a five-year capital improvement plan. The policy also defines the roles and responsibilities of city departments and management regarding contracts, supplemental appropriations, expenditures, and project administration. The use of capital project overhead charges as an operating budget funding source also is established by this policy.

Local Option Sales Tax Management, No. 232 Commission Policies – This policy establishes the authority to provide advance funding for local Florida Department of Transportation (FDOT) projects for any project or project phase included in the FDOT five-year work plan. It allows for advance funding without an agreement for repayment after conducting a public hearing. The policy also authorizes using short-term debt to cover cash flow shortages that may result from this practice.

Debt Management Policy, No. 238 Commission Policies – The debt management policy, along with an analysis of the city’s compliance with the policy, is included in the capital budget summary and the capital improvement plan. Section 104 of the City Charter also specifies that general obligation debt will not exceed 20% of the assessed taxable valuation. Florida Statutes require that general obligation bonds be approved by referendum. The city currently does not have any general obligation bonds.

Vehicle Replacement Reserves – Funding for vehicle replacement is included annually in the capital budget. Vehicle replacement charges for a proportionate share of these costs are allocated based on equipment usage.

Bond Covenants – Before 1998, provisions of Bond Resolutions required that a minimum of 5% of prior year gross revenues be budgeted annually for Renewals, Replacements, and Improvements (RR&I) for system improvements in the utility systems. Covenants for the Energy System (electric and gas) bonds issued after 1998 do not specify an explicit amount or methodology but require a transfer to an RR&I fund.

Union Agreements – Currently, unions represent 634 authorized positions. A total of 356 positions are subject to terms and conditions of the collective bargaining agreement with the Big Bend Chapter of the Florida Police Benevolent Association, Inc. (PBA), and 278 positions are subject to terms and conditions of the collective bargaining agreement with the International Association of Firefighters (IAFF). Union agreements are generally negotiated every three years. FY23 is the last year of the current contract for all bargaining units.

Utility Rate Studies – Rate studies are prepared for each utility enterprise operation (electric and underground utilities) every three to five years on a rotating basis. Revenue projections are prepared using historical weather patterns and other growth factors.

Assessment and Fee Reviews – Fees and assessments are periodically reviewed to ensure recovery of costs to provide certain services. A cost of services study for the animal shelter was conducted in 2006, which recommended a plan to recover at least 50% of the operating costs through animal licensing fees, but this has not been implemented. The City Commission also increased building inspection fees in August 2009 to recover all eligible building inspection costs. Rates for electricity, underground utilities, and solid waste are set by ordinances that provide for annual increases based on the CPI.

The City holds several budget workshops throughout the year. These serve the dual purpose of updating for the current fiscal year and the next budget cycle. Workshops are less formal city commission meetings that do not include a litany of items for the commissioners to address. Instead, the workshop allows for a focused discussion on the topic.

At the first quarter workshop, Resource Management reports on the early status of its funds to the Commission for the current budget cycle. It also presents some initial assumptions to work toward for the next one. This includes proposing an initial millage rate and employee raises, benefits, and other items.

At the second quarter workshop, assumptions are reaffirmed, and priorities are addressed. Issues with the current year’s funding can be addressed while taking a stronger look at the upcoming year.

Resource Management presents a proposed budget for the following fiscal year at the third quarter workshop. These include most of the capital projects, priorities, and changes. Any significant issues for the current budget year are also addressed at this workshop.

The City maintains a “hold the line” philosophy when budgeting for departments’ operating costs. Budgets for things such as office supplies or contracts are not increased every year. Without automatic increases in budgets, staff innovate for cost savings annually. Departments evaluate procedures to be more efficient.

Hold the Line counters a classic budgeting issue known as “use it or lose it.” In older budgeting techniques, departments are incentivized to spend their budget entirely and use their resource depletion to justify maintaining their budget levels. Sometimes the spending would persuade for even higher budgets the following year. With Hold the Line, Resource Management assures departments that their budget levels are safe. This approach leads to less spending overall as departments do not spend money merely to defend their allocations.

At the 1st quarter budget workshop, staff present initial assumptions to the City Commission for the next budget year. These include two major items: millage rate and staff pay raises.

For the City to be a leader in public service, it must recruit, train, and retain the best people. The City has a history of regular increases for staff ranging from two to three percent. This accommodates the cost of living increases, but the commitment can attract the best employees to the organization.

The public is encouraged to provide input anytime. City Commission meetings, budget workshops, and commissioner or leadership meetings are all available to citizens. Two statutorily required public hearings on the budget are also held in September each year to solicit public input. Building upon the goal of increased transparency, the City’s OpenGov platform allows citizen review of budget information down to the account level and actual expenditures and transactions throughout the year.

Departments are responsible for developing their respective budget requests with support from Resource Management. City Commission budget workshops are held throughout the year to discuss policy issues and the long-term ramifications of budgetary decisions. The City Commission adopts a tentative millage rate for assessing ad valorem taxes in early July, as state statutes require. The final budget and the millage rate are adopted by resolution during the month of September, following two statutorily required public hearings.

The City’s budget is appropriated at the fund level. Revenues are budgeted at the fund level only, while Department expense budgets are contained within one or more cost centers. There are currently nearly two hundred cost centers across all departments.

Budgetary control is maintained at the department level, with Resource Management providing support. In accordance with the city’s budget transfer policy, departments can amend budgets in various ways depending on the type of transfer being considered.

Any budgetary amendment within the department’s appropriated budget and within the same fund can be authorized by the City Manager. Transfers between departments that cross funds or increase appropriations are made at the request of the City Manager and must be approved by the City Commission.

Budgetary amendments between divisions and within the same fund may be initiated at the department head's discretion, except for transfers affecting specific categories such as personnel. Requests for amendments to the line item exceptions are reviewed by Financial Management and approved by the City Manager or respective appointed official for transfers affecting the offices of the City Attorney, Inspector General, or City Treasurer-Clerk.

Since implementing the PeopleSoft financial system, budgetary control has moved from the line-item level to the major budget category. In classic line-item budgeting, departments cannot spend more than a certain amount on very specific categories. This tended to limit flexibility, and governments could not adapt to problems that arose throughout the year. Now, departments may over-expend line items provided balances are available in the respective major budget category. This allows for greater managerial flexibility. Department heads can respond to citizens’ needs without dense bureaucratic processes.

Bond Proceeds are funds received through bond revenue to pay for water, wastewater, electric, gas, and general government capital infrastructure projects. Bond proceeds in this year’s capital improvement plan include:

• Airport debt
• Bank loans
• 2018 Bonds
• 2018 Consolidated Utility Services Bonds (CUSB)
• Future Consolidated Utility Services Bonds (CUSB)
• Future bonds for public infrastructure.

General Government is funding received from the general fund, sales tax, gas tax, and intergovernmental funding with Leon County. These sources fund general government capital improvements including public infrastructure, public safety, technology advancements, and traffic infrastructure. General Government funding sources used in this year’s capital improvement plan include:

• Gas Tax
• 2020 Sales Tax
• Interlocal Allocations
• Transfers from the General Fund (GGCPA)
• Prior year’s balances for in the Government Capital Improvement Fund

Special Fundsderive from various sources including internal service capital funds, charges for services dedicated for capital improvements, proceeds from sales, accounts receivable funds, and reserves. Special funds used in this year’s capital improvement plan include:

• 800 MHz Fund
• Aviation facility charges and investment funds
• Electric Accounts Receivable
• Energy Conservation Fund
• Fire Construction Fund
• Fleet Reserve Fund
• Water and Sewer System Charges
• Solid Waste Reserve
• Traffic Project A/R Fund
• Utility Services Construction Fund
• Water A/R Project Fund
• Interlocal Allocations.

Renewal, Replacement, & Improvement (RR&I) funding is cash received from each department’s operating budget that is dedicated for capital improvements. Undesignated balances are accumulated through balances in closed projects, unprogrammed RR&I funding and interest earnings. Those RR&I funding sources used in this year’s budget include RR&I funding from originating from a variety of operating funds:

• Airport
• Electric
• Internal Service Funds
• Gas
• Sewer
• Stormwater
• Water utilities

State Funds include grant funding from State organizations that provide additional support to community initiatives. The following funding sources are dedicated to projects in this year’s capital improvement plan:

• Community Development Block Grant
• Florida Department of Transportation grants

Federal Funds include grant funding from Federal organizations that provide additional support to community initiatives.

• Federal Aviation Administration
• American Rescue Plan Revenue Loss
• Federal Transit Administration
• Hazard Mitigation Grant Program

• Maintain sufficiently high bond ratings to assure access to affordable credit and low-borrowing costs
• Ensure intergenerational equity by amortizing debt within the expected useful life of a project or asset
• Coordinate the City’s capital improvement program with its debt management policy to develop a coherent, long-term financing plan for the City’s capital funding needs
• Maintain flexibility for the future financial needs of the City

The City will monitor and report debt ratios annually and at the time of each debt issuance, and strive to structure debt to meet the following targets:

Targets for liquidity, operating margins and debt burden

General Fund
Liquidity: Spendable General Fund Balance of 15% of General Fund expenditures.
Debt Service as a % of Expenditures/Coverage Ratio: Net Debt Service to be less than 10% of General Fund Expenditures
Debt Burden: Debt as a % of Full Market Value in less than 2%

Consolidated Utility System
Liquidity: 150 days cash on hand
Debt Service as a % of Expenditures/Coverage Ratio: Debt Service Coverage of 1.50x or higher
Debt Burden: Debt as a % of Capital Assets less than 50%

Energy System
Liquidity: 210 days cash on hand
Debt Service as a % of Expenditures/Coverage Ratio: Debt Service Coverage of 2.0x or higher
Debt Burden: Debt as a % of Capital Assets less than 60%

Targets for the structure of the City’s debt portfolio at the time of issuance

General Fund
Average Life (Range): 10 - 15 years
Viable Rate (VR): 20%*
Rolling Medium Term Notes (RMTN): 20%*
Combined (VR/RMTN): 30%*

Consolidated Utility System
Average Life (Range): 15 - 20 years
Viable Rate (VR): 25%
Rolling Medium Term Notes (RMTN): 30%cccc Combined (VR/RMTN): 40%

Energy System
Average Life (Range): 15 - 20 years
Viable Rate (VR): 25%
Rolling Medium Term Notes (RMTN): 30%
Combined (VR/RMTN): 40%

*The City shall not exceed the greater of these percentages or $50 million individually for Viable Rate and Rolling Medium Term notes and $90 million combined for Viable Rate and Medium Term Notes at the time of issuance.

Renewal, Replacement, & Improvement (RR&I) funding is cash received from each department’s operating budget that is dedicated for capital improvements. Undesignated balances are accumulated through balances in closed projects, unprogrammed RR&I funding and interest earnings. Those RR&I funding sources used in this year’s budget include RR&I funding originating from a variety of operating funds:

• Airport
• Electric
• Internal Service Funds
• Gas
• Sewer
• Stormwater
• Water utilities
• Golf

The City is committed to investing in its greatest asset: its employees. City employees are relentlessly focused on achieving our mission to be the national leader in delivering public services and implementing efforts for key elements of the five-year strategic plan.

The FY24 budget includes a workforce of 2,980.75 full-time equivalent (FTE) employees. This is an increase of 26.25 FTEs from FY23. In the Police Department, 22.00 new FTEs have been added as new police officers for the FY24 budget. 2.00 of these FTEs will be stationed at the airport. 3.00 FTEs are being added in the Aviation Department, which includes two OPS positions being converted to FTEs and the creation of 1.00 new FTE. 1.00 new FTE is being created in the Office of Inspector General for an investigator position. A 0.75 FTE position was adjusted to 1.00 FTE in Ethics, approved February 2023.