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FY 2021 Adopted Budget

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FY 2021 Adopted Budget Adopted September 21, 2020 Art provided by: Nancy Garrison A Special Thank you The front and back cover artwork is provided through cooperation with the Art League of Marco Island. The City of Marco Island wishes to express appreciation to Ms. Garrison and Mr. Parisi for permission to use their artwork on the front cover and back cover of the 2021 Budget Book. More of Nancy Garrison’s gallery can be found at www.nancygphotoart.com More of Joseph Parisi’s gallery can be found at www.framefocusshoot.com CCiittyy ooff MMaarrccoo IIssllaanndd ANNUAL BUDGET 2020-2021 Prepared By: Office of the City Manager and the Finance Department Principal Officials Erik Brechnitz, Chair Jared Grifoni, Vice-Chair Greg Folley, Councilor Larry Honig, Councilor Howard Reed, Councilor Victor Rios, Councilor Charlette Roman, Councilor Michael A. McNees - City Manager Alan Gabriel, City Attorney Laura Litzan, City Clerk Guillermo Polanco, CPA. MBA, Finance Director Chris Byrne, Fire Chief Timothy E. Pinter, Public Works Director Jeffrey E. Poteet, General Manager, Water & Sewer Tracy L. Frazzano, Police Chief Dan Smith, Community Affairs Director Raul Perez, Building Official Jose Duran, Information Technology Director Marco Island FY 2021 Adopted Budget Contents PAGE PREFACE Principal Officials INTRODUCTION Budget Message i General Information ii Budget Calender iv Organizational Chart v Accounting Structure Overview vi FY 2021 Adopted Budget Resolutions (4) 20‐38, 20‐39, 20‐40, 20‐41) vii BUDGET OVERVIEW Budget Overview 1 Spending Cap Calculation 10 All Funds Snapshot 11 All Fund Revenue & Expenditures 12 Budgeted Positions by Department 22 Changes in Position 27 Addons & Sigificant Changes 28 Changes in Fund Balance 31 GENERAL FUND OVERVIEW General Fund Summary 32 General Fund Discussion 33 Revenue Detail 42 Legislative 48 Executive 50 Finance 52 Legal 54 Growth Management 56 Information Technology 58 General Government 60 Police 63 Fire & Emergency Mgmt 66 Code 71 Public Works 73 Parks and Recreation 76 Transfers Out 81 BUILDING SERVICES FUND Fund Description 82 Financial Summary 83 Revenue & Expenditure Detail 84 Marco Island FY 2021 Adopted Budget Contents PAGE GENERAL GOVERNEMNT CAPITAL Capital Summary 88 Capital Schedules 89 ONE CENT SALES TAX One Cent Sales Tax Description 98 Summary 99 Capital Improvement Plan 100 Detail 101 DEBT Consolidated Debt Summary 103 General Debt 104 Water Sewer Debt 107 WATER & SEWER UTILITY Water Sewer Description 110 Organizational Chart 113 All Water Sewer Summary 114 Operating Summary 115 Water Sewer Capital 130 Sewer Assessment Funds 135 HIDEAWAY BEACH FUND 147 RISK MANAGEMENT FUND 149 PENSIONS Fire Pension ‐ Revenue & Expenditures 151 Police Pension ‐ Revenue & Expenditures 152 SUPPLEMENTAL INFORMATION Vision Plan 153 Financial Policies 156 Glossary of Terms 160 This page was left blank intentionally City of Marco Island August 14, 2020 Members of the Marco Island City Council: I am pleased to submit this budget for the City of Marco Island for the 2020-2021 fiscal year that continues to advance the Council priorities as identified in the 2019-2034 Strategic Plan while also adjusting for the unprecedented impacts of the COVID-19 pandemic. The primary challenge for the fiscal year 2021 budget has been balancing the budget within the “rolled back” ad-valorem rate while dealing with the financial impacts of the COVID-19 pandemic. The City is fortunate to have strong property tax revenue which accounts for 73% of the City’s total operating revenue. However, the City is budgeting for a 20% reduction in activity-based income (sales and gas taxes, user fees) resulting in an overall 3% impact (decrease) to the City’s total operating revenues. To compensate for this negative impact, we have developed a multipronged approach that include methods such as short-term fixes, spending cuts in such areas as travel and training budgets, and selective use of reserves. (A detailed explanation of these methods can be found within the budget overview.) Other highlights of the Fiscal Year 2020-2021 Budget are as follows: • Continuing application of our “pay-as-you go” philosophy both for the capital improvement program and for the replacement of capital assets such as vehicles. • The Collier County local option one-percent infrastructure sales surtax, approved by voter referendum in 2018, provides the City with funds to cover additional capital project needs, such as the improvements to Veterans Community Park which will see construction activity this year. • The Water Utility system continues to stabilize its rates and has reduced the capacity surcharge from 4% to 0%, over the last year. • The Building Service fund for the fiscal year 2021 budget is relying heavily on the use of reserves to maintain operations at its current level of service. Efforts are being made to tackle this growing issue, including a fee study to help identify revenue gaps based on the actual cost of the time spent processing, reviewing, and inspecting each building permit. Through the concerted efforts of your management team and all City employees, we are taking measures to continue to minimize impacts on the City’s operations from COVID-19 and to adjust appropriately to its effect on the budget. Our goal is to continue to provide high levels of customer service while working within the approved budget, and to move forward with our ambitious capital improvement program while our environment continues to change in response to the pandemic. Sincerely, Michael A. McNees City Manager i GENERAL INFORMATION The City was incorporated on August 28, 1997. Marco Island, Florida, is located in the southwestern part of the state, on the Gulf of Mexico side of the Ten Thousand Islands region of the Florida Everglades. Originally discovered by the Spanish and named Isla de San Marco (Saint Mark’s Island), modern development of the island began in the late 1960’s by the Deltona Corporation. Prior to incorporation in 1997, the island was a part of unincorporated Collier County and was served by a local Fire Protection District. The City serves a permanent population of approximately 17,000, which grows up to approximately 45,000 in the peak winter season. The City is empowered to levy a property tax on both real and personal property located within its boundaries. The City has operated under the Council‐Manager form of government since incorporation. Policy‐making and legislative authority are vested in the governing council consisting of a chairperson and six other members. City Council is responsible for passing ordinances and approving the budget, appointing boards and commissions, and hiring both the City Manager and the City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day‐to‐day operations of the government, and for appointing the heads of the various departments. The council is elected at‐ large on a non‐partisan basis to four‐year staggered terms. Council members are eligible to serve a maximum of eight years during their lifetime. The City Council Chair is elected by the members of the City Council annually. The City provides a full range of services authorized by statute and local charter. These include police, fire, parks, recreation, streets, drainage, capital improvements, planning, zoning, community affairs and development and general administrative services, as well as water production and distribution and wastewater collection and treatment. During the fiscal year ended September 30, 2004, as more fully described later in this report, the City acquired the water and wastewater operations on the island and now operates those services through the City’s Water and Sewer Utility Department. The Hideaway Beach Tax District was created as a component unit of the City in 2003. Voters in this private neighborhood approved a tax levy for re‐nourishment of the beaches adjacent to the neighborhood. BUDGET PROCESS Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States. The annual budget serves as the foundation for the City’s financial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager. The City Manager uses these requests as the starting point for developing a proposed budget and holds the public budget workshops with the City Council on the proposed budget. Two public hearings are held on the budget, with the final budget adopted no later than September 30, the close of the City’s fiscal year. The appropriated budget is prepared by fund and by department. Budget control is maintained at the fund level. Budgets are adopted for the following funds: General Fund, Water/Sewer Utility Enterprise Fund, Capital Projects Fund, Debt Service Fund, Building Services Fund, Self‐Insurance Internal Service Fund, Hideaway Beach Special Taxing District Fund, and Police and Fire Pension Funds. 1. Prior to September 1, the City Manager submits to the City Council a budget estimate of the revenues and expenditures for all City departments and divisions for the fiscal year commencing the following October 1. 2. Upon receipt of the annual budget estimates, the City Council holds various budget workshops to review and amend the proposed budget. ii 3. Public hearings are held to obtain taxpayers’ comments. 4. Prior to October 1, the budget is legally enacted through passage of an ordinance. 5. No department may legally expend or contract to expend amounts in excess of amounts appropriated for any department within an individual fund. Budget appropriations lapse at year end; however, the Finance Director, through the City Manager, is authorized to reserve at the beginning of the year the unpaid purchase orders, outstanding contracts, and other commitments from the prior year. 6. The adopted budget may be amended as follows: a. a. The City Council has authorized the City Manager to amend, modify, or otherwise adjust the operating budget to a maximum limit of $50,000.
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