Fiscal Year 2009 -2010

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Fiscal Year 2009 -2010 CITY OF HOMESTEAD Florida ANNUAL OPERATING and CAPITAL BUDGET FISCAL YEAR 2009‐2010 DISCOVER THE OPPORTUNITIES www.cityofhomestead.com City of Homestead Government CITIZENS OF HOMESTEAD City Council Steven C. Bateman Mayor Judy Waldman Jon Burgess Stephen R. Shelley Vice-Mayor Councilman Councilman Wendy Lobos Jimmie L. Williams, III Elvis R. Maldonado Councilwoman Councilman Councilman City Manager's Office Sergio Purrinos City Manager City Clerk's Office City Attorney Sherry Ader, CMC Weiss, Serota , Helfman, Pastoriza, Cole , and Boniske, P.A. Administrative Staff Al Rolle Barbara Quiñones Jerry Estrada Chief of Police Electric Energy Service Director General Services Director Sergio Purrinos Dennis Maytan Marcie Heese Development Services Director Parks and Public Works Acting Director Human Resources Director Janette Smith, CPA Elizabeth Mangual Julio Brea, P.E. Finance Director Community Redevelopment Agency Engineering and Environmental Services Director 790 N. Homestead Blvd. Homestead, Florida 33030 (305) 224-4400 www.cityofhomestead.com THIS PAGE INTENTIONALLY LEFT BLANK Table of Contents GENERAL INFORMATION Budget Message………………………………………………………………… 1 Distinguished Budget Presentation Award…………………………………… 9 Guide for Readers………………………………………………………………. 10 City of Homestead Data……………………………………………………….. 11 Elected Officials………………………………………………………………… 22 City of Homestead Voting Districts…………………………………………… 23 Citywide Organizational Chart………………………………………………… 24 Citywide Staffing Summary……………………………………………………. 25 BUDGET AND FINANCIAL POLICIES Budgetary Policies……………………………………………………………… 27 Budgetary Process……………………………………………………………… 28 Financial Policies……………………………………………………………….. 29 Governmental Fund Types…………………………………………………….. 31 Proprietary Fund Types………………………………………………………… 32 Debt Administration……………………………………………………………... 33 Budget Calendar………………………………………………………………… 36 REVENUES & EXPENSES Citywide Revenues …………….……………………………………………….. 37 Citywide Expenses ………………………………...……………………………. 39 Citywide Revenues & Expenses Graphs…………………………………….… 42 Major Sources of Revenue……………………………………………………… 44 Revenues Charts……………………………………………………………….… 49 Expenditures Line Item Description……………………………………………. 50 Fund Balance Summary………………………………………………………… 57 GOVERNMENTAL FUNDS General Fund General Fund Summary…………………………………………………… 59 General Fund Charts …………..………………………………………….. 60 Millage Rate Graphs……..………………………………………………… 62 Citywide Goals Chart ……………………………………………………… 63 General Fund Departmental Budgets Mayor and Council……………………………………………….. 64 City Attorney ..…………………………………………………….. 71 City Manager .……………………………………………………. 72 City Clerk ..………………………………………………………… 76 Table of Contents (Continued) General Fund Departmental Budgets (Continued) Development Services…………….………………………………79 Finance……………………………………………………………. 84 General Administration…………………………………………… 87 General Services………………………………………………….. 90 Human Resources………………………………………………… 104 Parks and Public Works…………………………………………...110 Police……………………………………………………………….. 123 Proprietary Funds Budget Electric Utility……………………………………………………………… 135 Engineering and Environmental Services……………………………... 150 Utility RR&I………………………………………………………………... 167 Special Revenue Funds Budget Confiscated Property…………………………………………………….. 169 Community Redevelopment Agency………………………………….. 174 Homestead-Miami Speedway………………………………………….. 181 Homestead Sports Complex…………………………………………… 182 Impact Fees………………………………………………………………. 183 Capital Projects Fund People’s Transportation Plan…………………………………………… 185 CITYWIDE CAPITAL IMPROVEMENTS Citywide Capital Improvement Table…………………………………………... 187 Nonroutine Capital Projects…………………………………………………….. 191 APPENDIX Abbreviations and Acronyms…………………………………………………… 219 Glossary…………………………………………………………………………… 221 Millage Rate City Resolution ………………………………………………….. 229 Adopted Budget City Ordinance …………………………………………….. 231 Honorable Mayor, City Council, and Residents of the City of Homestead, Florida: Pursuant to Section 5.03 of the City of Homestead Charter, I present herewith the Adopted Operating Budget and Capital Improvement Plan for Fiscal Year 2009-2010. This budget includes information on all City funds: General Fund, Enterprise Funds, Internal Service Funds, the Community Redevelopment Agency, and Special Revenue Funds. Our adopted balanced budget includes anticipated revenues and expenditures of $145,465,525 for the Fiscal Year. This represents a decrease of 7.6% over the previous fiscal year’s adopted budget of $157,506,764. The budget reflects the City Council’s adoption of a millage rate of 6.2917 mills to balance the budget; an increase of 0.9507 mills or 17.8% from the previous year. THE CITY OF HOMESTEAD’S FISCAL PRIORITIES AND FINANCIAL ISSUES This budget was based upon our fiscal and operational priorities and local economic conditions. Our fundamental priority in the drafting of this budget was the development of the most cost effective production of City services within the severe impact imposed by our local economic conditions and associated revenue losses. The City’s continued delivery of essential services at the lowest cost is the guiding principle of this budget. Our fiscal and operation priorities have changed from the previous fiscal year; principally as a result of revenue reductions coupled with a necessity for significant capital and infrastructure upgrades. This budget year is very different from the previous one as a result of the impacts of the foreclosure crisis, the mortgage crisis, and the nation’s economic recession which have affected our City more than others in Miami-Dade County. These financial crises consequently produced a major loss of ad valorem property tax revenue. Within our priorities, we also have addressed and incorporated the issues raised by our residents and business community through our City Council budget workshops and two public hearings. We have undertaken thorough measures to balance this budget in view of the demand for services and these most difficult of economic times. 1 City of Homestead, Florida – Adopted Budget FY 2009 – 2010 Budget Message Due to the severe impact of our current economic conditions, our main focus was the development of a balanced service delivery at the lowest cost to our residents and businesses. As a result, every appropriation contained within this budget has been thoroughly evaluated within our overarching financial context and is therefore considered to be essential. Since the challenging economic conditions that we are experiencing are expected to continue, we will continue to evaluate and monitor all expenditures on an ongoing basis; immediately adjusting our priorities as necessary. THE CITY OF HOMESTEAD FACES SIGNIFICANT FINANCIAL CHALLENGES In Fiscal Year 2009 – 2010, the City of Homestead faces several significant financial challenges. These challenges relate to reductions in ad valorem taxes and permitting revenue, necessary capital expansions, maintenance costs for the Sports Complex, and payment of taxes for the lease of the Homestead-Miami Speedway. We have experienced a major reduction in Ad Valorem Revenue. The Fiscal Year 2009-2010 Adopted Budget reflects an aggregate 25% reduction in the City’s property valuation and consequently, a significant reduction of ad valorem revenue from Fiscal Year 2008 - 2009. Homestead was the community most affected by the mortgage and foreclosure crises in Miami-Dade County. This trend is expected to continue well into next Fiscal Year. We have experienced major reductions in building permit fees. As you no doubt recall, Homestead was the fastest growing City in Florida and the ninth fastest City in the nation. Few communities in the nation possess Homestead’s vacant land assets and favorable climate. For several years, intense demand for cheaper housing, new housing starts and associated building permitting fees generated a substantial general fund income. With the nation’s recession, mortgage crisis, and record local foreclosures, this income is now a fraction of that in prior fiscal years. The wastewater treatment plant has reached capacity and requires expansion. The City of Homestead is the only municipality in Miami-Dade County that owns and operates a wastewater treatment plant. The Wastewater Treatment Plant has reached capacity as a result of our explosive population growth and will eventually require expansion. However, new regulatory requirements along with operational improvements may generate an estimated cost of $50 million to upgrade the existing facility. A new police station requires funding. Our current police headquarters requires expansion. The Police Department has been at its current location since 1983. At that time, the population of Homestead was approximately 22,000 persons and the police department consisted of 40 officers and 11 civilian employees. Today, the City’s population is nearly 60,000 and our police force is composed of 102 full-time police 2 City of Homestead, Florida – Adopted Budget FY 2009 – 2010 Budget Message officers, 43 full-time civilians and 51 part-time civilians and reserve officers, and the vehicles and equipment necessary to support them. As a result of our growth, the building can no longer accommodate the Police Department. One of our major challenges is funding for a new police station. We will be asking the City Council for guidance on this project. Major improvements are required for the Homestead Sports Complex. The 136- acre Homestead Sports Complex is rapidly deteriorating and is in need of major improvements. The facility also requires
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