This page intentionally left blank 2 CITY OF GULF SHORES, ALABAMA 2019 Budget Table of Contents Cover Page……………………………………….. 1 Table of Contents………………………………… 3 Mayor & Council………………………………… 5 City Map with Major Highway Locator…………. 6 City Organizational Chart………………………… 7 Distinguished Budget Presentation Award……….. 8 Budget Resolution………………………………… 9 Budget Message………………………………….. 12 Basis of Budgeting……………………………….. 41 Just the Facts…………………………………….. 42 Financial Structure, Policy and Process…………. 50 Budget Calendar…………………………………. 57 Financial Summaries Adopted Budgets: Table 1 City Wide……………………………….. 60 Table 2 General Fund……………………………. 62 Table 3 Lodging Tax…………………………….. 64 Table 4 Designated Taxes……………………….. 65 Table 5 Impact Fees…………………………….. 66 Table 6 Beach Restoration and Projects Fund….. 67 Table 7 Capital Improvements Fund…………….. 68 Table 8 Storm Damage Fund……………………. 69 Table 9 Debt Service Fund………………………. 70 Table 10 2014 GO Warrant……………………… 71 Table 11 2016-B GO Warrant…………………… 72 Table 12 2018 GO Warrant……………………… 73 Fund Balance & Major Revenue Sources……….. 74 Capital Outlay Approved………………………… 80 Capital Pictures 2018…………………………….. 82 Ten Year Capital Plan…………………………… 86 Revenue Projections 2019 to 2028………………. 94 Departmental Information: Personnel Summary with New Positions………… 97 Expenditures by Major Category 2019…………… 98 Insurance Health Liability ……………………….. 99 General Fund Revenues………………………….. 100 Expenditures by Department General Government: Executive………………………………………. 101 Executive Organizational Chart…………….. 103 Human Resources…………………………….. 104 Human Resources Organizational Chart…… 105 3 CITY OF GULF SHORES, ALABAMA 2019 Budget Table of Contents Finance and Administrative Services…………. 106 Finance/Admin Organizational Chart………. 108 Municipal Court………………………………. 109 Municipal Court Organizational Chart……… 111 Police………………………………………….. 112 Police Organizational Chart………………… 116 Fire and Emergency Medical Services………… 117 Fire Organizational Chart…………………… 119 Planning and Zoning…………………………… 120 Planning and Zoning Organizational Chart… 122 Building……………………………………….. 123 Building Organizational Chart……………… 124 Recreation and Cultural Affairs Overview……. 126 Recreation Organizational Chart…………… 127 Recreation & Cultural Affairs……………… 128 Recreation - Events………………………… 129 Recreation - Library ……………………….. 130 Recreation - Rec & Wellness………………. 131 Recreation - Sportsplex…………………….. 133 Recreation - Parks…………………………. 134 City Store………………………………….. 135 Public Works Overview………………………. 136 Public Works Organizational Chart………… 137 Public Works - General Services…………… 138 Public Works - Custodial…………………… 139 Public Works - Landscape…………………. 140 Public Works - Streets……………………… 141 Public Works - Maintenance………………. 142 2020 Projected Budget…………………………… 143 Supplemental Schedules: Operating Indicators by Function………………… 144 Capital Asset Statistics by Function………………. 145 Population, Per Capita Income, Unemployment… 146 Principal Employers……………………………… 147 Property Tax Levies……………………………… 148 Principal Property Tax Payers…………………… 149 Financial Policy…………………………………… 150 Defining Terms: Glossary………………………… 159 4 City of Gulf Shores, Alabama Mayor and Council Left to Right Standing: Joe Garris, Stephen E. Jones, Jason Dyken, Gary Sinak Left to Right Seated: Philip Harris, Robert Craft, Mayor 5 6 Citizens of Gulf Shores Municipal Mayor City Airport Judge Council Attorney Prosecutor Human City Administrator Records Resources City Clerk Mayor's Assistant Environmental/Grants Coordinator Economic Development Coordinator Planning & Building Recreation Finance & Public Works Fire/EMS Police Court Zoning Department Administrative & Cultural Custodial Affairs Services Maintenance Parks and Accounting Recreation Revenue Streets Special Information Landscape Events Technology Library Purchasing Museum City Store 7 8 RESOLUTION NO. A RESOLUTION ADOPTING CITY OF GULF SHORES 2019 BUDGET ________________________________________________ BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GULF SHORES, ALABAMA, WHILE IN REGULAR SESSION ON November 26th, 2018 as follows: Section 1. That the City of Gulf Shores 2019 Budget be adopted for the City of Gulf Shores, Alabama, for Fiscal Year 2019 beginning January 1, 2019 and ending December 31, 2019. GENERAL FUND BUDGET SUMMARY 2019 (JANUARY 1, 2019 THROUGH DECEMBER 31, 2019) TOTAL REVENUES GENERAL FUND $43,457,939 EXPENDITURES: Executive $ 1,645,892 Human Resources 707,698 Finance & Administrative Svcs 2,764,429 Municipal Court 410,402 Police 6,043,726 Fire & EMS 4,507,047 Planning & Development 556,532 Building 611,765 Recreation & Cultural Affairs 398,114 Events & Programs 817,923 Library 640,522 Recreation-Rec & Wellness 2,149,446 Recreation-Sportsplex 1,197,324 Recreation-Parks 590,149 Recreation-City Store 174,849 Public Works: General Services 883,879 Public Facilities-Custodial 579,952 Public Facilities-Landscaping 904,272 Streets 2,620,087 Maintenance 1,391,592 Airport Authority 142,067 Outside Agencies 2,310,000 SUBTOTAL OPERATIONS $32,047,667 Capital Outlay Executive Capital 200,000 Police – Capital Outlay 231,800 Fire – Capital Outlay 150,000 Building – Capital Outlay 42,000 Recreation Sportsplex 128,000 Recreation Parks 18,000 Public Works Capital: Landscaping 111,000 Streets 668,000 General Services 36,000 SUBTOTAL CAPITAL $1,584,800 9 Resolution No. (cont’d) Page 2 Operating Transfers Out $9,162,078 Total General Fund Expenses $42,794,545 Budget Carry Forward General Fund $ 663,394 OTHER FUND BUDGET SUMMARY 2019 (JANUARY 1, 2019 THROUGH DECEMBER 31, 2019) REVENUE EXPENDITURE Special Revenue 2% Lodging Tax Revenue 3,290,000 Transfer to General Fund 2,714,278 Transfer to Beach Restoration 55,000 Transfer to Beach Fund 520,722 Total 2% Lodging Tax Expenses $3,290,000 Budget Carry Forward 2% Lodging $0 Police & Fire Related Grants Police and Fire 465,000 Transfer to General 470,000 Muni Court Exps 45,000 SUBTOTAL 515,000 Budget Carry Forward Police & Fire $ (50,000) Impact Fees Fund Impact Fees Revenue 931,950 Recreation 440,000 Public Works 3 0 0,000 Police 95,450 Fire 95,000 SUBTOTAL $930,450 Budget Carry Forward Impact Fees $1,500 Beach Restoration & Projects Fund Transfer from 2% Ldg Tax 575,722 Recycling Revenue 85,000 Parking Fees 600,000 Grant-ADEM Recycling Program 178,604 SUBTOTAL 1,439,326 Beach Monitoring, Trapping & Dunes 23,000 Executive 50,000 Police 293,758 Fire – Beach 638,761 Public Works – Streets 227,703 Capital Outlay 284,604 Total Beach Restoration & Projects $1,517,826 Budget Carry Forward Beach R & P $ (78,500) Capital Improvements Fund Contributions – Sidewalk/Bikeway 30,000 Transfer to 2014 GO fund 30,000 10 11 November 27, 2018 The Honorable Mayor, Members of the City Council and the Citizens of the City of Gulf Shores, Alabama RE: 2019 BUDGET MESSAGE On behalf of the City of Gulf Shores government staff, we are pleased to deliver the Fiscal Year 2019 Budget for the City of Gulf Shores, Alabama for the period beginning January 1, 2019 and ending December 31, 2019. The annual budget is a policy document which sets the financial course for the City and defines the service priorities provided to the community. The budget presented is a culmination of months of efforts to balance available resources so to implement the City Council’s updated Strategic Plan, which in turn implements the Mayor and Council adopted Gulf Shores Vision 2025 for Sustainability: Vision In the year 2025, the City of Gulf Shores will be the most desirable small town destination community in the South in which to live, visit, retire and invest. This will be due to its enduring, wholesome, low- key and pleasurable lifestyle amidst its restorative and vibrant natural surroundings and thriving economy. Vision 2025 – Core Values The City intends to prioritize allocation of its resources based on these core values: We protect and enhance the quality of life for our residents, visitors and retirees We protect and preserve our unique natural resources We honor the family-centric and safety-oriented tradition We maintain a relaxed, no-hassle environment We support a clear culture of Southern hospitality We enhance the sense of place We embed sustainability into the fabric of the community We promote economic prosperity in a business-friendly atmosphere We boost competition in the market place unaccepting of the status quo We commit to excellence and the highest quality standards 12 2018 Successes: Reserves – Increased General Fund Reserves to 70% from the prior year financial policy target of 65%. Debt – In 2018 two debt issuances were made. One of the 2018 debt issues was taxable for $15,260,000 and advance payments totaling $10,292,810 on the 2016 Line of Credit and $2,654,338 on a nontaxable warrant were made. The advance payments repaid the 2016 Line of Credit for work on the Gulf Place redesign and the purchase of a medical building. The 2016 long term ten year taxable line of credit of $13.5 million was originally issued primarily to facilitate construction of the Gulf Place redesign. Council approved advance payments on the 2016 Line of Credit to ensure enough funds were available to complete the scope of work and to ensure the line of credit can be paid off by 2026. The $2,654,338 payment on the 2014 nontaxable warrant were for prior year land purchases at the Airport and for a possible future educational facility. The second 2018 debt issue was nontaxable for $25 million and $3,432,491 was used to pay on a 2014 nontaxable line used primarily for transportation projects. The remaining funds of $21,567,