Download - 2009 Budget As Proposed
City of Lakeland FY2009 Budget
Lakeland Electric66%
General Fund14%
Water and Wastewater
8%
Capital Improvement Funds
6%
Solid Waste2%
Lakeland Center, Parking, Golf
Course, Airport, Stormwater
4%
Total = $604 million
ElectricWaterWastewaterSolid WasteAirportParkingCleveland Heights Golf Course
Certain operations are financed 100% from user fees assessed directly against users of those services:
Lakeland's utility rates are slightly less than the average rates charged by other cities in the State of Florida (including electric rates!!)
Lakeland's Stormwater rates are about 40% of the average rate charged by other Cities in the State
The Stormwater Utility Fund is financed in part from a user fee that averages $4.50 per month per residence
$1.1 million of those annual costs (about one-third of the budget) are paid directly from the General Fund - i.e. the $4.50 per month user fee would need to be increased by 33% in order to generate enough revenue to recover all costs of this entity directly from users
The General Fund pays for:
Utilities- $1 million
The Lakeland Center is able to cover most of it's operating expenses from ticket and rental revenues - about $6 million
Building and Facilities - mortgage and improvements - $1.5 million
Very few (if any) venues such as the Lakeland Center across the country are able to "pay their own way"
Police 35,000,000 Fire 14,500,000 Community Development 7,000,000 Public Works 6,000,000 Parks and Recreation 19,500,000 Street Lighting 4,000,000
Expenses of this operations are predominantly payroll in nature (see attached)
These expenses are financed by a combination of different revenues (see attached)
The General Fund is used to pay operating cost for those functions of government that do not lend themselves to recovering those costs based on some sort of user fee
General Fund Spending by Category
Community Development
8%
Public Works
7%
Street Lighting5%
Parks and Recreation
23%
Fire17%
Police40%
General Fund Spending by Type
Tax Increment2%
Lakeland Center3%
Insurance3%All Other
2%
Technology5%
Utilities & Street Lighting
8%
Fleet 5%
Payroll72%
General Fund Revenue SourcesLRMC Lease
4%
All Other5%
Charges for Services
7%
Utility Dividends36%
Sales & Utility Taxes27%
Property Taxes21%
Approximately $10-$11 million per year
Historically:Facilities maintenance 2,000,000 Debt Service 2,500,000 Capital Improvements such as new parks, fire stations, etc 2,500,000 Subsidy to the General Fund 3,500,000
Capital Improvements related to General Fund operations are financed from the proceeds of leasing the City-owned hospital to LRMC
Property TaxesFY 2007 millage rate was 3.5450
FY 2008 millage rate was 3.2296
Legislated millage rate for 2009 - 3.0246
Amendment 1 reduced taxable values by 7.4%
Rollback rate is 3.4031Provides same tax revenue as preceding year plus additional tax revenue on any new construction
Rollback rate adds $1.9 million in additional revenue
2008 General Fund Budget 91,100,000$
Program Cuts / Personnel Reductions (2,650,000)
2009 Budget Starting Point 88,450,000$
2009 Revenue ReductionsSales and Utility Taxes (1,250,000) Charges for Services (1,200,000) Property Taxes (1,500,000)
(3,950,000) 2009 Revenue Increases
Dividends from Water/Wastewater 400,000
2009 Cost IncreasesUtilities 400,000 Fuel 650,000 Fire Union Increases - 7% 400,000 Police Union Increases - 5% 700,000 Other Employees - 1.5 to 4% 180,000 Pension Plans - 1% 150,000
2,480,000
2009 Expense ReductionsInsurance (130,000) Other (300,000)
(430,000)
2009 Budget Shortfall 5,600,000
PolicePayroll 26,500,000 Fleet 2,600,000 Utilities 400,000 Technology 2,000,000 Administration 3,200,000 Facilities 500,000
2009 Budget As Proposed
FirePayroll 12,350,000 Fleet 300,000 Utilities 200,000 Technology 200,000 Administration 1,300,000 Facilities 250,000
2009 Budget As Proposed
2009 Budget As Proposed
Community DevelopmentBuilding Inspection 2,100,000 Code Enforcement 800,000 Planning 2,000,000 Tax Increments 2,000,000 Administration 700,000 Community Support Grants 350,000
2009 Budget As Proposed
Parks and RecreationParks Facilities 8,400,000 Recreation Facilities and Programming 5,000,000 Libraries 3,600,000 Cemeteries 800,000 Administration 1,800,000
2009 Budget As Proposed
Public WorksEngineering 1,500,000 Roadway Maintenance 2,500,000 Stormwater cross- subsidy 1,100,000 Traffic 1,000,000 Administration 600,000 Street Lights 4,100,000
Options to consider
• Curtail Services• Permanently Close some Parks or Recreation Facilities
• Permanently Close a Fire Station
• Raise Stormwater Fees – eliminate cross subsidy from tax revenues
• Raise Property Tax Millage Rate
• Eliminate all or most new capital improvements financed from LRMC revenues
Options to consider
• Increase utility rates above market and use the additional revenues as an additional dividend revenue to the General Fund
• Eliminate Reserve Funds – approximately $8 million (equivalent to 30 days of operating costs)
• Curtail non essential subsidies such as Community Services Grants
Actions taken by the City of Lakeland
Increased Property Tax Rate – rollback rate1,900,000
Eliminated cross subsidy of Stormwater Costs1,100,000
required a stormwater fee increase
Eliminated Community Support Service Grants 350,000
Eliminated Capital Improvements – LRMC lease 1,950,000
Withdrawal from Reserves 350,000