05/07/2018 - SpecialMonday, May 7, 2018
2:00 PM
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Council Chambers
City Council
Special Meeting Agenda
Strategic Planning Session
May 7, 2018City Council Special Meeting Agenda
Welcome. We are glad to have you join us. If you wish to address the Council, please complete a
Comment Card. Comment Cards are on the right -hand side of the dais by the City Clerk. When
recognized, please hand your card to the Clerk, approach the podium and state your name. Persons
speaking before the City Council shall be limited to 3 minutes unless otherwise noted under Public
Hearings. For other than "Citizens to be heard regarding items not on the Agenda," a spokesperson for
a group may speak for 3 minutes plus an additional minute for each person in the audience that waives
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the form to designate a spokesperson from the City Clerk. Up to 60 minutes of public comment will be
allowed for an agenda item. No person shall speak more than once on the same subject unless
granted permission by the City Council. The City of Clearwater strongly supports and fully complies
with the Americans with Disabilities Act (ADA). Please advise us at least 48 hours prior to the meeting
if you require special accommodations at 727-562-4090. Assisted Listening Devices are available .
Kindly refrain from using cell phones and electronic devices during the meeting.
1. Call to Order
2. Citizens to be heard re items not on the agenda
3. City Manager Reports
3.1 ID#18-4542 Annual Strategic Planning Session
3.2 ID#18-4574 Financial Overview
3.3 ID#18-4589 Council direction for strategic priorities.
4. City Attorney Reports
5. Closing comments by Councilmembers (limited to 3 minutes)
6. Closing Comments by Mayor
7. Adjourn
Page 2 City of Clearwater Printed on 5/4/2018
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#18-4542
Agenda Date: 5/7/2018 Status: Agenda ReadyVersion: 1
File Type: ReportIn Control: City Council
Agenda Number: 3.1
SUBJECT/RECOMMENDATION:
Annual Strategic Planning Session
SUMMARY:
City Council Policy “M” states:
“Prior to June 1st of each year and prior to the development of the City Manager’s proposed
budget, the City Council shall meet in a strategic planning session(s) to review the five-year
financial forecast and update as necessary, the City’s Vision, Mission and Strategic Direction
(Goals). From these documents a five-year strategic plan will be updated.”
Consistent with this policy, staff has prepared a series of agenda materials for City Council
consideration. First, is the current 5-Year Strategic Plan (2018-2023), which was approved by
City Council on April 25, 2017 and incorporated into the FY 2017-18 Budget (Attached).
Before discussing the 5-Year Strategic Plan, staff has prepared an overview of our current
service levels and functions by department. Our presentation will be made by department
directors and managers, in quick succession, as a refresher of the many functions and
services we provide and the way in which they are deployed within the city. We will begin with
Public Safety and work our way through the remaining areas. Strategic Priorities are noted by
icon for each function.
After the presentation the City Manager will introduce the financial forecast, specifically focusing
on the updated General Fund Revenue Sufficiency Analysis. Unlike last year, we will propose a
5-Year Strategic Plan for 2019-2024, after this session, within the City Manager’s
recommended FY 2018-19 Budget.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 1 City of Clearwater Printed on 5/4/2018
Approved by Council 4-25-17
Clearwater will be a uniquely beautiful and vibrant community:
That is socially and economically diverse;
That invests for the future; and
That is a wonderful place to live, learn, work, visit and play
Foster Industry Sectors
Maintain a business-friendly
environment
Recognize transit oriented
development
Engage neighborhoods and the
business community to:
o Create our economic
development identity
o Communicate that identity
effectively
Ensure that our residents and visitors
are familiar with the whole offering of
community amenities
Optimize use of employees, assets
and resources
Encourage teamwork across
departments
Access public-private organizations
and resources
Proactively maintain and reinvest in
our infrastructure
Continuously measure and improve
our performance
Reinforce standing as a safe
community
Continue community policing
Ensure timely emergency
preparation, response and recovery
Continue responsible financial
management
Evaluate additional funding options
Set priorities and spend money
aligned with Strategic Direction
Develop Downtown and US 19
Housing stock that matches need
Expand nonresidential tax base
Fulfill Beach by Design
Maintain tourism commitment,
including Sports Tourism
ED Strategic Plan •
Airpark Master Plan*
PSTA – Times Property Plan
Downtown Parking Garage
Co-Working Business Incubator
Library Maker Spaces •
Clearwater Business SPARK •
Encourage neighborhood identity
programs
Prevent blight and support property
values through code enforcement
Preserve community history and
culture
Support community events
Support healthy community initiatives
Tourism Contract
My Clearwater Magazine *
New Downtown Clearwater Website
Regional ED Marketing •
City of Clearwater –Strategic Plan (2018-2023)
Vision
The Mission of the City of Clearwater is to:
To provide cost effective municipal services and infrastructure; and;
Facilitate development of the economy;
To support a high quality of life and experience
Mission
Increase Economic
Opportunity
Develop and Promote
our Brand
QualityEfficiency Financial Responsibility Safety
Facilitate
Development
of the
Economy:
Strategic
Direction
Provide Cost
Effective
Municipal
Services and
Infrastructure:
Diversify the Economic
Base
US 19 Corridor Plan •
2nd Century Clearwater
Spectrum Complex
CRA Incentives – Occupancy Rates
Hercules/Belcher Industrial Area •
Priorities
Priorities
Priorities
Priorities
New Fire Stations – Penny III
DEO Grant – Resiliency Pilot
Comprehensive Emergency
Management Plan Update
PD District 3 Substation
Budget and CAFR *
Penny IV CIP *
BP Funding
Financial System Replacement
Rate Studies *
Performance Management *
Internal Services Survey
Morningside Rec Center
Beach Marina Reconstruction
New City Hall
Crestlake Park Redevelopment
Moccasin Lake Plan
Implementation
IT Strategic Plan *
Gas – Pinellas Campus
Groundwater Replenishment
Citizens Survey *
Placemaking Manual
Bicycle Paths & Trails *
Moccasin Lake Plan Implementation
Priorities
Priorities Priorities
NOTE: The priorities listed are in addition to the on-going repair, maintenance and replacement of equipment, facilities and properties that support day-to-day operations and infrastructure. The priorities
listed are in addition to day-to-day operations, services and programming throughout the City. Projects listed are identified because of the resources required or because they are generally not expected to
recur over a minimum, five-year planning horizon unless otherwise noted by an asterisk, in which instance they are on-going initiatives or have components that will continue through the planning period.
Foster Community
Engagement
Priorities
2nd Century Clearwater
N. Marina Master Plan
Imagine Clearwater
Gateway Vision Plan
Implementation *
Boating Plan
• ED Strategic Plan Items
* Recurring Work Items
100 South Myrtle Avenue | Clearwater, FL 33756
www.myclearwater.com
|2STRATEGIC PLAN
Strategic Plan
(2018-2023)
•Approved by
Council
4/25/2017
|3STRATEGIC PLAN
Police
•370.5 FTEs
•3 Divisions
•3 Geographic Districts
•3 Stations
•4 Satellite Offices
•Deployment Model /
Use of Variable Teams
•40 FTEs Communications
Center:
–184,512 Calls for
Service (2017)
|4STRATEGIC PLAN
Fire & Rescue
•204.0 FTEs
•8 Stations
–ISO Rating of 1
•Fire Operations:
–7,239 Calls
–337 Fires
•Emergency Medical
Services (EMS):
–22,290 Calls
|5STRATEGIC PLAN
Emergency
Management
•Evacuation Zones for 11’,
15’, 20’, 28’ and 35’
Storm Surge
•FEMA
•Pinellas County
•CEMP
•Post -Disaster
Redevelopment Plan
|6STRATEGIC PLAN
Public Utilities
•196 FTEs
•Facilities:
–41 Water Wells
–3 Water Treatment
–3 Water Reclamation
Facilities
•Reclaimed Water:
–3 Booster Pump Stations
•Pipelines:
–584 Miles of Water
–370 Miles of Wastewater
–141 Miles of Reclaimed
–38 Miles of Force Main
•Industrial Pretreatment
•Certified Laboratory
|7STRATEGIC PLAN
Solid Waste /
Recycling
•133.5 FTEs
•Solid Waste:
–26,800
Single Family Units
–30,000
Multi Family Units
•Recycling
•Yard Waste
•Post -Disaster Debris
Removal
•Special Collections
|8STRATEGIC PLAN
Clearwater Gas System
•110.0 FTEs
•23,700 Customers
•$41.7M Revenues (FY18)
•330 Square Miles of Service Area:
–Pinellas & Pasco County
–Serve 20 Municipal Areas
–950 Miles of Gas Mains
•Full Service Provider:
–Natural & Propane Service
–$1.5M –Installation of
Inside Customer Gas Piping
–$1.0M –Appliance Sales
–$500k –Service & Repair
|9STRATEGIC PLAN
Stormwater
•52.0 FTEs
Stormwater Utility Fund
•12 Major Basins
•Functions:
–Watershed Mgmt. Plan
–Capital Projects
–Commercial
Plan Review
–Stormwater
Pipes & Structures
–Pond & Ditch Maint.
–Street Sweeping
–NPDES
|10STRATEGIC PLAN
Utilities Customer
Service
•43.0 FTEs
•Customer, Billing,
Collection Services for the
Proceeding Enterprises
•Call Center
•Billing
•Collections
•Meter Reading
•Paperless Billing
Switch to Paperless Billing
|11STRATEGIC PLAN
Parking System
•27.9 FTEs
•Beach Areas Parking:
–450 Spaces in NBPP
–933 Spaces in Lots
–406 On-Street Spaces
–115 Sandy Spaces
•Downtown Area Parking:
–784 Spaces in 4 Garages
–1,111 Spaces in Lots
–379 On-Street Spaces
•Pay to Park, Permits
•Special Events
•Enforcement
|12STRATEGIC PLAN
Traffic
•21 FTEs –General Fund
•10 Traffic Zones
•142 Traffic Signals
•30,614 Traffic Signs
•300 Miles of Pavement
Striping & Markings
•Traffic Ops Center /
ATMS Corridors
•33 Roundabouts
•491 Speed Humps/Tables
•2.08 Miles of Guardrail
•12,389 Street Lights
•7 CIP Traffic Calming
Projects Completed
|13STRATEGIC PLAN
Streets &
Sidewalks
•11 FTEs
•Maintained by City:
–323 Miles of Paved
Roads
–367 Miles of Sidewalks
•0,2456 mills Restricted
for Road Maintenance &
Improvements
•Roadway Conditions
Survey
•R&R Projects
•CIP Projects
|14STRATEGIC PLAN
Engineering
•35 FTEs –General Fund
•$80 million Utility CIP
•5,083 Engineering Reviews
of Building Permit Plans
•$25 million in Construction
Inspection
•$700,000 in
Tree Bank Funds
•Geographic Technology
|15STRATEGIC PLAN
Marine & Aviation
•26.7 FTEs
•2 City Marinas:
–45 Commercial Slips
–313 Recreational Slips
–35 Transient Boat Slips
–24 Public Docks
–9 Public Boat Ramps
–470 Aids to Navigation
•47 Acre Municipal Airpark:
–4,108 FT Runway/Taxiway
–177 Airpark Spaces
–Tampa Bay Aviation
Flight Training
–Civil Air Patrol Clearwater
Composite Squadron
|16STRATEGIC PLAN
Parks & Recreation
•247.3 FTEs
•Beach Guard Operations
•109 Park Facilities
•1,427 Parks Acreage
•19 Miles of Recreation Paths
•49 Tennis Courts
•27 Playgrounds
•22 Basketball Courts
•20 Soccer/Football Fields
•7 Recreation Centers
•5 Pools
•3 Dog Parks
•3 Golf Courses
•3 Performing Arts Venues
•1 Nature Center
|17STRATEGIC PLAN
Library
•84.9 FTEs
•5 Library Branches
•564,000 Volumes in
Collection
•Service Model
–PC COOP
–PPLC
•Library Evolution
–New Joint-Use Library
•Special Services
|18STRATEGIC PLAN
Planning & Dev.
•58.0 FTEs
•Planning
–Long Range Planning
–Development Review
–Major Current Focus
Areas
•Construction Services
–20,921 Plans Reviewed
–$271,900,733 Value of
Construction
–28,445 Inspections
•Code Compliance
–9 Inspection Zones
–Areas of Responsibility
–5,189 Code Cases
|19STRATEGIC PLAN
Economic
Development
•6.0 FTEs
•Priorities:
–Primary Industries
•Hercules IRT
•Office
•US 19 District
•Downtown
–Small Business
Development
–Tourism PR & Marketing
•Guiding Document:
–ED Strategic Plan
|20STRATEGIC PLAN
Housing
•5.0 FTEs
•Priorities
–Grants:
•Services & Facilities
–Loans:
•Income Qualified
–Affordable &
Workforce housing
–Neighborhood
Stabilization (NRSAs)
–Homeless Initiative
•Guiding Documents
–LHAP
–HUD Consolidated Plan
|21STRATEGIC PLAN
Community
Redevelopment
Agency
•4.5 FTEs
•CRA Districts:
–Downtown Core
–Prospect Lake
–Downtown Gateway
•Purpose
•Strategy
•TIF Renewal
|22STRATEGIC PLAN
Information Tech.
•34.0 FTEs
•Service Functions:
–Enterprise Systems (8)
–Network/Telecom (58 Sites)
–Hardware (~1850 Clients)
–Programming (~138 Apps)
•Business Drivers:
–"Big Data"
–Connectivity & Bandwidth
–Mobility
–Security &Resiliency
•Challenges:
–Human Capital
–Training &
Change Management
|23STRATEGIC PLAN
Building &
Maintenance
•34.3 FTEs
•City Facilities:
–Offices
–Recreation Centers
–Libraries
–Other
•Functions:
–Roofs
–Doors & Windows
–Electrical & HVAC
–Elevators
–Generators
–Furniture
|24STRATEGIC PLAN
Fleet/Garage
•37.0 FTEs
•1,700 Vehicles Serviced
•123 Compressed Natural
Gas Vehicles Citywide
•Fleet/Garage Functions:
–Garage Fund Mgmt.
–Fuel Procurement
–Vehicle Parts/Tires
•Radio Communications:
–Two Radio Towers
–1,400 Handheld /
Portable Radios
|25STRATEGIC PLAN
Finance
•33.5 FTEs
•Functions:
–Budget
–Risk
–Purchasing
–Accounting
–Investment &
Debt Mgmt.
–Payroll
–Pension Planning
|26STRATEGIC PLAN
Public
Communications
•10.8 FTEs
•Internal Support
Department
•Televise City Meetings
•Public Information
Office for Police, Fire
and Emergency Mgmt.
•Publications &
Graphic Design
•PR & Marketing
•Website & Social Media
myClearwater.com SOCIAL MEDIA
|27STRATEGIC PLAN
Human Resources
•16.2 FTEs
•Recruitment, Selection
and Training
•Employee Relations
•Diversity and Equity
Services
•Succession Planning
•Employee & Retiree
Benefits/Health Care
•Employee Health Center
•Collective Bargaining
City of Clearwater FY 2017/2018
FTE Summary of Positions
General Fund Utility Funds
Other Enterprise Funds Internal Services Funds
Special Program Fund
|28STRATEGIC PLAN
Administration
•City Manager
–5 FTEs
•City Attorney
–11.5 FTEs
•City Clerk
–8.0 FTEs
•Internal Audit
–2.0 FTEs
Strategic Direction
Citizen Comment Card
Name: Sean sch (Nailer
Address: t0keti ` ffe4ei t
City: decoy,Akr Zip:
481
Telephone Number:
7)7 01- ZS
Email Address: ,erjr, " 0' ® a)1'Cep
Speaking under citizens to be heard re
items not on the agenda? `
Agenda item(s) to which you wish to speak- -
7).)
kcN)(A t ?,\ osm\Zn
What is your position on the item? For Against
Citizen Comment Card
Name:'D ,.J-- Ll t10„50 -v -i2.
Address:3 OS -
City:
S
City: FL Zip: 337.5 -
Telephone Number: 7.2-7 - 330 -7S-96—
Email Address: D2.. A_Q a ij I(eS0,4-1-cu4i .0-6VV`
Speaking under citizens to be heard re
items not on the agenda?
Agenda item(s) to which you wish to speak. 3 i
What is your position on the item? Forx Against
Citizen Comment Card
Address: 1-4„0
City:
e1,
1
M'-,f:v,- Zip:
Telephone Number:
Email Address:
Speaking under citizens to be heard re
items not on the agenda?
Agenda item(s) to which you wish to speak.
What is your position on the item? For Against
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#18-4574
Agenda Date: 5/7/2018 Status: Agenda ReadyVersion: 1
File Type: ReportIn Control: Finance
Agenda Number: 3.2
SUBJECT/RECOMMENDATION:
Financial Overview
SUMMARY:
Review of General Fund Financial Sustainability Analysis - Stantec Consulting Services
Review of Utility Fund Forecasts
Page 1 City of Clearwater Printed on 5/4/2018
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Water & Sewer rate revenues 80,218,986$ 83,214,299$ 86,253,208$ 89,405,991$ 92,677,008$ 96,070,791$
Other operating revenues 2,732,552 2,819,355 2,910,498 3,006,198 3,106,684 3,212,193
Total operating revenues 82,951,538 86,033,654 89,163,706 92,412,189 95,783,692 99,282,984
Less: Personal services (13,883,739) (14,257,544) (14,795,221) (15,302,939) (15,906,632) (16,463,612)
Less: Purchased water (8,376,822) (7,045,624) (4,373,869) (4,369,186) (4,470,979) (4,575,314)
Less: O&M expenses (27,320,690) (28,464,076) (30,551,652) (31,612,551) (32,714,736) (33,869,632)
Net Operating Income 33,370,287 36,266,410 39,442,964 41,127,513 42,691,345 44,374,426
Non-Operating Income/(Expense):
Interest earnings 938,494 1,076,222 1,012,450 1,021,804 1,042,716 1,065,172
Debt service (17,161,042) (19,425,917) (17,742,577) (18,792,682) (19,349,595) (19,587,962)
Net Capital outlay - projects (2,525,734) (14,510,718) (15,032,834) (13,692,748) (10,195,227) (5,638,417)
Transfers out (PILOT and R&R)(13,406,885) (14,576,401) (15,748,554) (16,927,220) (18,112,653) (19,305,114)
Net change in reserves 1,215,120 (11,170,404) (8,068,551) (7,263,333) (3,923,414) 908,105
Unrestricted reserves 56,971,876$ 45,801,472$ 37,732,921$ 30,469,588$ 26,546,174$ 27,454,279$
Less required reserves (6 months O&M)24,790,626 24,883,622 24,860,371 25,642,338 26,546,174 27,454,279
Reserves in excess of policy minimum 32,181,250$ 20,917,850$ 12,872,550$ 4,827,250$ -$ -$
Water & Sewer Utility Fund
Pro Forma Projections Per Rate Study Dated 9/29/2017
Updated for Actual Reserve Balances as of 9/30/2017
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Stormwater fees 18,059,083$ 18,149,378$ 18,240,125$ 18,331,326$ 18,422,983$ 18,515,097$
Other operating revenues 177,990 177,990 177,990 177,990 177,990 177,990
Total operating revenues 18,237,073 18,327,368 18,418,115 18,509,316 18,600,973 18,693,087
Less: Personal services (3,478,201) (3,602,493) (3,733,252) (3,870,943) (4,016,068) (4,169,174)
Less: O&M expenses (4,671,609) (4,848,622) (5,033,507) (5,226,650) (5,428,460) (5,639,367)
Net Operating Income 10,087,263 9,876,253 9,651,356 9,411,723 9,156,445 8,884,546
Non-Operating Income/(Expense):
Interest earnings 681,828 886,977 865,390 858,029 831,183 791,392
Debt payments - Interest Expense (2,540,796) (2,547,151) (2,558,031) (2,548,441) (2,544,224) (2,545,550)
Net Capital outlay - projects (6,399,332) (7,174,090) (7,825,792) (7,542,084) (7,776,722) (8,010,512)
Transfers in/(out)612,355 534,045 (585,182) (1,008,005) (1,012,996) (1,018,012)
Net change in reserves 2,441,318$ 1,576,034$ (452,259)$ (828,778)$ (1,346,314)$ (1,898,136)$
Unrestricted reserves 36,365,925$ 37,941,959$ 37,489,700$ 36,660,922$ 35,314,608$ 33,416,472$
Less required reserves (6 months O&M)4,074,905 4,225,557 4,383,379 4,548,797 4,722,264 4,904,270
Reserves in excess of policy minimum 32,291,020$ 33,716,402$ 33,106,321$ 32,112,125$ 30,592,344$ 28,512,202$
Stormwater Utility Fund
Pro Forma Projections Per Rate Study Dated 9/29/2017
Updated for Actual Reserve Balances as of 9/30/2017
FY2018 Budget FY2019 Budget FY2020 Budget FY2021 Budget FY2022 Budget FY2023 Budget FY2023 Budget
Gas operating revenues 41,726,001$ 46,068,660$ 47,220,377$ 48,400,886$ 49,610,908$ 50,851,181$ 52,122,460$
Less: Gas purchased (12,000,000) (12,550,000) (12,863,750) (13,185,344) (13,514,977) (13,852,852) (14,199,173)
Less: Operating expenses (19,596,110) (24,364,974) (25,920,044) (26,568,045) (27,232,247) (27,913,052) (28,610,879)
Net Operating Income 10,129,891 9,153,686 8,436,582 8,647,497 8,863,684 9,085,277 9,312,408
Non-Operating Income/(Expense):
Interest earnings 450,000 450,000 450,000 450,000 450,000 450,000 450,000
Other non-operating income 167,160 165,400 165,400 165,400 165,400 165,400 165,400
Debt payments (1,216,800) (985,100) (908,543) (911,560) (909,070) (916,218) (907,724)
Capital outlay - projects *(9,806,746) (20,189,638) (5,850,000) (5,850,000) (5,850,000) (5,850,000) (5,850,000)
Transfers in/(out)(2,698,521) (2,400,000) (2,400,000) (2,400,000) (2,400,000) (2,400,000) (2,400,000)
Net cash flow (2,975,016)$ (13,805,652)$ (106,561)$ 101,337$ 320,014$ 534,459$ 770,084$
Unrestricted reserves 38,666,034$ 24,860,382$ 24,753,822$ 24,855,158$ 25,175,172$ 25,709,631$ 26,479,716$
Less required reserves (6 months O&M)16,406,455 18,950,037 19,846,169 20,332,475 20,828,147 21,341,061 21,858,888
Reserves in excess of policy minimum 22,259,579$ 5,910,345$ 4,907,653$ 4,522,684$ 4,347,025$ 4,368,570$ 4,620,828$
*Adjusted for Gas Building capital outlay not in rate study
Gas Utility Fund
Pro Forma Projections Provided by Gas Department
Amended Solid Waste & Recycling
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Solid Waste fees 22,107,398$ 22,936,425$ 23,796,540$ 24,688,911$ 25,614,746$ 26,575,298$
Recycling fees 2,174,704 2,256,256 2,340,865 2,428,648 2,519,722 2,614,212
Sales of recyclables 150,000 150,000 150,000 150,000 150,000 150,000 A
Other operating revenues 695,082 713,140 731,740 750,897 770,630 790,955
Total operating revenues 25,127,184 26,055,821 27,019,145 28,018,456 29,055,098 30,130,465
Less: Personal services (8,049,442) (8,270,424) (8,558,059) (8,859,359) (9,175,178) (9,506,440)
Less: O&M expenses (15,055,108) (15,706,272) (16,387,138) (17,099,105) (17,843,621) (18,622,213) B
Less: Direct haul to landfill (824,164) (3,296,655) C
Net Operating Income 1,198,470 (1,217,530) 2,073,948 2,059,992 2,036,299 2,001,812
Non-Operating Income/(Expense):
Interest earnings 643,750 491,834 372,119 379,071 390,009 397,857
Other non-operating income (expense)354,369 354,440 354,513 354,589 354,666 354,746
Debt payments - - (389,936) (507,318) (507,318) (507,318)
Net Capital outlay - projects (4,845,986) (15,044,144) (1,547,937) (918,371) (946,902) (976,292)
Transfers in/(out)(1,340,599) (1,438,927) (1,490,033) (1,543,049) (1,598,044) (1,655,094)
Net change in reserves (3,989,996)$ (16,854,327)$ (627,326)$ (175,086)$ (271,290)$ (384,289)$
Unrestricted reserves 30,515,998$ 13,661,671$ 13,034,345$ 12,859,259$ 12,587,969$ 12,203,680$
Less required reserves (6 months O&M)11,964,357 13,636,676 12,472,599 12,979,232 13,509,400 14,064,327
Reserves in excess of policy minimum 18,551,641$ 24,995$ 561,746$ (119,973)$ (921,431)$ (1,860,647)$
Solid Waste and Recycling Fund
Pro Forma Projections Per Rate Study Dated 9/29/2017
Updated / Revised by Solid Waste/Recycling Department 4/26/2018
City of Clearwater, FL
FY 2018-19 General
Fund Sustainability
Analysis
May 7, 2018
Agenda
1. Introduction
2. Background
3. Data Sources
4. Assumptions
5. Key Challenges
6. Initial Results
7.Discussion & Interactive
Modeling
Clearwater
General Fund
Erick van Malssen
Managing Consultant
Years of Experience: 10
Mike Burton
Principal
Years of Experience: 30+
Peter Napoli
Consultant
Years of Experience: 3
Project Team
Clearwater
General Fund •In 2016, our firm conducted a Financial Sustainability Analysis of the
General Fund utilizing the FY 2017 Adopted Budget.
•A 10 year cash flow projection model was developed to analyze the Fund’s
projected Sustainability.
•The model projects cash flows (cash in vs cash out) of the General Fund
•Monitoring Unrestricted Reserve Balances over a 10-year period compared
to the minimum reserve target of 8.5% of expenses
•Primary Assumptions:
•Modest taxable property valuation growth
•No Change in Millage Rate
•Included projection of cash flows for Morningside Rec. Facility
•Assumed no future hiring of FTEs
Background
Clearwater
General Fund •Results of the 2016 analysis shown below:
16 17 18 19 20 21 22 23 24 25 26
End of Year Reserve Balance Current Plan Min. Reserve Target
$100
$120
$140
$160
$180
16 17 18 19 20 21 22 23 24 25MillionsCash In vs. Cash Out Cash In Cash Out - Total Cash Out - O&M
Background
Cash flows sustainable
(Cash In exceeds or equals
Cash Out
Reserve Balances Maintained
well above minimum reserve
target
Black Line = Minimum
Reserve Target (8.5% of
expenses)
Clearwater
General Fund
•Beginning General Fund Reserve Balance based on FY
2017 Audited Financials
•Minimum Reserve: 8.5% of annual expenses
•Revenues and Expenses based upon Amended FY 2018
Budget
•Updated Capital Improvement Program through FY 2024
•Updated property values provided by Pinellas County
Property Appraiser
FY 2018-19 Update
Data Sources:
Clearwater
General Fund
•Updated revenue escalation rates applied to FY
2018 Amended Budget,
•Based on population estimates, trends, and staff input
•Updated cost escalation rates applied to FY 2018
Amended Budget
•Based on trends and staff input
•Cash Funding of all Capital Improvement Projects
FY 2018-19 Update
Primary Assumptions:
Clearwater
General Fund
•21 Full-time equivalent positions added since FY 2017
•Significant additional cost not considered in FY 2016 Study
•Additional Homestead Exemption
•Proposed amendment to the State Constitution to increase the homestead exemption by exempting the assessed valuation of homestead property greater than $100,000 and up to $125,000 for all levies other than school district levies, etc.
•$1.5 million of estimated lost Ad Valorem Revenue beginning FY 2020
•Imagine Clearwater & Crest Lake Park
•Large projects that require capital investment, annual personnel and maintenance costs, beginning in FY 2021
•Higher overall Capital Improvement Program vs prior study
FY 2018-19 Update
Key Challenges:
Clearwater
General Fund
•CMA & Ruth Eckerd Hall Contributions
•Total of $6.5 million contributed in FY 2018
•Not part of initial FY 2018 budget, and not considered in prior analysis
•Marjory Stoneman Douglas High School Public
Safety Act – SB7026
•Net annual cost of the 14 additional police officers will exceed $600k,
beginning partially in FY 2018
•Significant equipment and vehicle investment required
•Additional Raises CWA Union & Management
•Impact of $1 million annually beginning in FY 2018
FY 2018-19 Update
Key Challenges Cont’d:
Results of Update
Clearwater
General Fund
Cash Outflows Continuously
Exceed Cash Inflows (spending
defict)Reserve
Balances would
deplete below
8.5% minimum
target by end of
FY 2019
Estimated $8M deficit in FY 2018,
$12.3M projected in FY 2019
Results of Update
Clearwater
General Fund
1.2 mil increase in FY
2019 (or equivalent
long term adjustment)
required to sustain
cash flows.
Increased Revenues
Maintain Minimum
balance over projection
period
Sustainable Cash Flows.
Cash in trends with cash
out over projection period
Clearwater
General Fund •Significant Increases to the General Funds annual
costs have created unsustainable cash flows
•Additional Personnel Costs not previously budgeted
•Significant Capital projects and investment
•SB 7026 – School Resource Officers
•Cash transfers in FY 2018
•Property values and revenues continue to grow, but
are outpaced by cost growth
•Additional Homestead Exemption will reduce Ad Valorem Revenues
by approximately 3%
Conclusions:
Clearwater
General Fund •The General Fund Cash Flow deficit must be
corrected to preserve minimum balances and
create a sustainable future
•Combination of expense reductions and/or
revenue increases required
•Consider any option available to relieve fund of
cash flow deficit burden
Recommendations:
Discussion & Live
Interactive Modeling
Clearwater
General Fund
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#18-4589
Agenda Date: 5/7/2018 Status: Agenda ReadyVersion: 1
File Type: Action ItemIn Control: City Council
Agenda Number: 3.3
SUBJECT/RECOMMENDATION:
Council direction for strategic priorities.
SUMMARY:
Page 1 City of Clearwater Printed on 5/4/2018