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01/30/2025 - Strategic PlanningThursday, January 30, 2025 9:00 AM City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Morningside Recreation Complex, 2400 Harn Blvd, Clearwater, FL 33764 Council Work Session Special Work Session Strategic Planning Work Session January 30, 2025Council Work Session Special Work Session 1. Call to Order 2. Presentations Review the strategic plan, long term financial forecast for the General Fund and major utility funds, and strategies for budget planning. 2.1 3. Closing Comments by Mayor 4. Adjourn Page 2 City of Clearwater Printed on 1/29/2025 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#25-0064 Agenda Date: 1/30/2025 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Council Work Session Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Review the strategic plan, long term financial forecast for the General Fund and major utility funds, and strategies for budget planning. SUMMARY: Per City Council Policy 3-11, Strategic Direction/Planning, prior to the development of the City Manager’s budget, the City Council shall meet in a strategic planning session to review the five-year financial forecast and update, as necessary, the City’s Vision, Mission, and Strategic Direction. ·Welcome - Hal Beardall and Rafael Montalvo, FCRC Consensus Center at Florida State University ·Background information (budget review, financial forecast) ·Measures for addressing upcoming key challenges ·Longer-term strategies for addressing budget challenges ·Next steps Page 1 City of Clearwater Printed on 1/29/2025 |1CITY OF CLEARWATER 2025 Strategic Planning Special Work Session 100 S. Myrtle Ave. | Clearwater, FL 33756 myclearwater.com 01 Introductions and Background Review of Planning Objectives and Potential Outcomes 02 Review Strategic Plan Strategic Planning Process 03 Background Information Fiscal Year 2024/25 Budget Review Review of Financial Forecast for Major Utility Funds, General Fund, Central Insurance Fund 04 Longer Term Strategies for Addressing Budget Council Exploration of Approaches to Providing Needed and Desired Services & Projects Agenda |4CITY OF CLEARWATER Our Operating Focus: Strategic Plan Deployment Planning & Policies Community Feedback Interactive Data Strategic Plan Annual Budget Citywide Alignment toward OutcomesInforms Enables •Continued Plan Alignment: - Identification of Desired Outcomes - Operational & Capital Planning - Coordinating Links Between Plans •Measure Plan Performance: - Enhanced Performance Measures - Creation of Transparency Dashboards •Ongoing Team Engagement: - Annual Employee Health Fair - New Employee Orientation - Executive Leadership Academy •Organizational Culture: - Clearwater Thrive Campaign 2025 Implementation Strategies: Our Vision: A Community that Thrives from Bay to Beach |5CITY OF CLEARWATER Our Operating Focus: Measuring Work Plan Performance |6CITY OF CLEARWATER All Funds Fund Amended FY 2023/24 Approved FY 2024/25 Increase/ (Decrease) General Fund 203,208,415 226,606,480 12% Utility Funds 224,302,937 214,623,190 (4%) Enterprise Funds 31,089,511 48,774,190 57% Internal Service Funds 83,319,622 87,294,240 5% Special Revenue Funds 42,596,317 23,384,897 (45%) Capital Fund 160,836,802 152,838,700 (5%) All Funds: Fiscal Year 2024/25 |7CITY OF CLEARWATER FY20 FY21 FY22 FY23 FY24 FY25 93.9 96.9 100.7 109.2 119.4 134.5 19.7 21.3 24.5 28.9 32.3 35.4 17.7 16.9 18.9 20.3 23.2 24.6 17.1 12.1 53.5 36.2 29.1 33.9 0.9 0.6 1.0 1.0 0.8 2.4 Personnel Other Operating Internal Services Transfers Debt Service General Fund: Expenses by Category (millions) |8CITY OF CLEARWATER Budget Strategies: Fiscal Year 2025/26 •Reductions to Department Operating Budgets -Aligning Present Budget Levels to Historic Actual Spending •Adjustments to Staffing -Efficiency Gain through Technology Projects and Modified Service Hours •Reductions to planned Capital Improvement Projects •Reductions to Third-Party Event and Agency Funding •Future Focus on Opportunities for Savings and/or Additional Revenue -Review Fee Structures for User Fees across Departments -Utility Rate Studies: Continuous Focus on Operating & Capital Savings -Analysis of Development Impact on Public Safety Facilities & Service Financial Forecast Major Utility Funds, General Fund & Central Insurance Fund CITY OF CLEARWATER STRATEGIC PLAN IMPLEMENTATION STRATEGY CITY COUNCIL WORKSHOPS January -February 2025 Workshop 1 January 30, 2025 Objectives Review budget and revenue trends Review upcoming budget challenges Identify and explore potential measures and strategies for addressing budget challenges 9:00 Welcome Agenda review Summary review of interviews Objectives and potential outcomes of discussions Background information Clearwater strategic goals and their relationship to budgets Budget and revenue trends Review trends Key challenges for upcoming budgets 9:45 Measures for addressing upcoming key challenges Review initial set of measures and/or alternative scenarios developed by staff Council discussion to: Understand measures and alternatives Refine alternatives or develop additional, as appropriate Explore pros and cons of measures and alternatives Longer-term strategies for addressing budget challenges Needs and wants How do you think about what the city must do and what it should do? Approaches to providing needed and desired services and projects In an ideal world, how would you advise staff to approach service provision and project development? Next steps Additional information or revision of alternatives, as needed 12:00 Adjourn CITY OF CLEARWATER CITY COUNCIL BUDGET STRATEGIES RETREAT January — February 2025 Facilitator Summary Of Initial Interviews INTRODUCTION In early 2025, the City Council of Clearwater undertook a series of retreat discussions to explore Council approaches to budgeting and budgeting related issues. The discussions were facilitated by the FCRC Consensus Center. During January of 2025, Consensus Center facilitators reviewed documents and conducted interviews with all members of the Council. The purpose of the interviews was to inform the development of an agenda for the discussions, and to provide a starting point for the first discussion. The conversations were relatively unstructured and ranged widely over issues Clearwater faces. The interviewers posed questions exploring members' approaches to budgeting and considerations each member hoped the Council as a whole would keep in mind when making budget decisions. This document presents the facilitators' summary of themes arising across the interviews. Because the interviews were unstructured and the questions open-ended, the number of Council members who touched on an idea does not necessarily indicate the level of support or the value of an idea. INTERVIEW THEMES A perception of similar or compatible approaches to fiscal issues All members described their approach to budgeting and spending questions facing th' city (although not necessarily to other categories of issues) as fiscally conservative. Members also believed that all of their colleagues on the Council shared this orientation. Mutual respect and fundamentally good relationships among Council members All members also stressed that they believed they have good relationships with their colleagues: they get along well professionally and personally and are respectful even when they disagree. Wants and needs A consistent theme in members' descriptions of how they would like the Council as a whole to approach budgeting decisions involved distinguishing between wants and needs. Members varied in their approaches to identifying needs, and some supported also focusing on a category of things the city should do. Some focused, although not exclusively, on what they saw as essential services. Others looked at how spending would complement or enhance the economic life or quality of life in the city. Others looked at the opportunity costs of not making certain investments. Most appeared to approach this distinction largely on a case-by-case basis. Tools for meeting short term budget needs Members discussed a number of tools for meeting short- term budget needs within current milage rates, if needed. These included spreading needed capital spending over longer periods, limiting overtime, vacancy freezes, new sources of revenue including user fees, and limited use of reserves. 1 January 27, 2025 CITY OF CLEARWATER OFFICE OF THE &EY MANAGER POST OFFICE Box 4748, CLEARWATER, FLORIDA 33758-4748 600 CLEVELAND STREET, CLEARWATER, FLORIDA 33755 TELEPHONE (727) 562-4040 FAX (727) 562-4052 TO: Honorable Mayor and Members of the City Council City of Clearwater, Florida FROM: Jennifer Poirrier City Manager SUBJECT: Fiscal Year 2026 Budget Preparation Recent direction from the council has focused on a review of our budget process, to include, looking for ways to reduce budget growth, as well as to postpone, or eliminate, the future need for a millage increase. In response, I have asked our leadership team to begin the planning of our Fiscal Year 2026 budget with a focus on budget constraint. The purpose of this planning ensures that as a public organization, we continue to deliver sustainable and cost-effective municipal services, while identifying opportunities to provide enhanced public value to the residents of Clearwater. This approach of "belt -tightening" requires a further review of planned projects and services that will require additional future investment, and a forecast of the impact this will have on our fiscal resources. To that end, our priority is to maintain the high quality of essential programs and existing facilities; those that provide for safety, recreation, educational and government services enjoyed by our community, residents, and visitors. As we look ahead to Fiscal Year 2026, staff have identified the following reductions that will be incorporated into our strategic planning and budget preparation process: 1. An annual reduction of $944,695 in the operating budget of departments funded by the General Fund: This reduction is due to a forecasted decrease of funding requirements for select city operations, and where departments have realized efficiency gains due to completed projects, new technology initiatives, and reorganization efforts. Throughout the budget review process this spring, we intend to further review department's line -item submissions looking for additional opportunities to recognize operational savings. 2. An annual reduction of $808,857 in the personnel budget of departments funded by the General Fund: This reduction is observed by an elimination of 7.5 Full -Time Equivalent (FTE) positions within the Library Department, resulting in a modification of service hours that reflect a better alignment to community needs, and a transition of select administrative duties to other positions and city departments. Of the 7.5 FTE's, one full-time position is vacant, and the remaining 6.5 FTE's are full- and part-time employees. The existing employees within these positions would be transferred to similar roles within the library or other departments to the extent possible. One full-time position will be eliminated in the City Clerk's Office due to the reclassification of other positions to absorb the responsibilities of an existing vacant position that will no longer be needed. Ryan Cotton, Councilmember Mike Mannino, Councilmember Bruce Rector, Mayor David Allbritton, Councilmember Lina Teixeira, Councilmember Equal Employment and Affirmative Action Employer" 1 Staff plans to explore several options to increase our revenue streams. For the General Fund, this includes exploring the option of convenience fees for departments that accept direct payments by credit card similar to other local municipalities. Furthermore, I have asked departments that levy user fees for services such as recreational and leisure fees, as well as permitting and inspection services, to plan to review their current fee schedules in an effort to ensure that the city is fairly recuperating the costs to provide such services. Other Enterprise Fund departments, which include the marina fund and parking fund, will additionally review their applicable fee schedules to further guarantee that the city remains well-positioned to maintain the current levels of service that are enjoyed by our residents and visitors alike. As the city's enterprise funds prepare to undertake rate studies that examine the future projects and service needs, each department will incorporate an evaluation of forecasted funding requirements and alternative operating practices where efficiencies or other cost savings may be realized for ratepayers. The continued maintenance of Clearwater's infrastructure is a top focus for our city, while ensuring that our utility rates remain competitive. Finally, Staff will study the impact of growth and development on our city, particularly with a focus on public safety. Identifying additional funding mechanisms that supplement the impact this growth has on our Police and Fire Departments remains the highest priority in preserving the health, welfare, and safety of our community. 3