Title
Allocation of Additional 2006 Ad Valorem Revenues (NB)
This agenda item addresses the allocation of approximately $289,000 in additional property tax revenue identified in the Property Appraiser's final certified taxable value.
Explanation
In June of each year, the City receives a preliminary taxable property value statement from the Alachua County Property Appraiser. This preliminary value is utilized to establish the proposed property tax revenue budget for the General Fund. In October the City receives a final valuation. Because this final valuation is received after the adoption of the budget, significant deviations from the preliminary figure require budget amendments. For FY06, the final valuation resulted in approximately $289,000 in additional property tax revenue over the amount included in the initial FY06 budget.
Potential uses for this incremental revenue are:
· Supplemental homeless sheltering and services - Funds allocated to this project would go towards provision of shelter and cold weather needs of the homeless.
· Recreation capital projects - These funds could cover such capital projects as Citizens Park water feature ($100,000), playground equipment in various parks ($190,000), Northside Park frisbee golf improvements ($35,000), basketball or tennis court improvements ($200,000), or picnic pavilions ($150,000).
· Recreation after school programs - This project covers expansion of afterschool programs similar to the Teen Zone, at various school locations and the Reichert House.
· Southeast Gainesville Renaissance Initiative - This project incorporates assembly of land for the purpose of stimulating residential and commercial revitalization in Gainesville's southeast quadrant.
· Land assembly along Depot Avenue corridor - This project entails acquisition of properties along the Depot Avenue corridor for potential tech transfer ventures related to the University of Florida.
· Acquisition of a bus for the Regional Transit System - Adding a new bus would both add to service capability and reduce operating expenses by substituting a more reliable bus for an older vehicle with higher maintenance requirements.
· Acquisition of environmentally sensitive lands.
· Fire rescue overtime - Over the past several years Fire Department overtime costs have exceeded their overtime budget by as much as $400,000. Allocating additional funds toward these costs will assist in bridging this budgetary gap.
· Gator Skeet Club - Funds for this project would assist the Skeet Club in paying costs associated with leasing Airport property used for the Skeet Club shooting range.
· General Fund reserves to mitigate a portion of the potential fiscal impact associated with moving the effective date of the Santa Fe area annexation from October 1 to June 1.
· Undesignated General Fund reserves to assist in meeting FY07 policy requirements - Fiscal polices adopted in September of 2005 require that the City maintain 8.33% of budgeted General Fund revenues in undesignated, unreserved General Fund fund balance.
As a corollary the City Commission requested that the City Manager identify potential funding sources to match $210,000 in private contributions towards shelter and cold weather needs of the homeless.
Fiscal Note
There is an additional $289,000 in ad valorem revenue available for appropriation in the General Fund. Other potential funding sources are $137,000 in City Commission contingency funds, $54,297 in FY05 unreserved, undesignated General Fund fund balance, and $50,000 set aside in the FY05-06 CDBG budget.
Recommendation
The City Commission: 1) appropriate funds to match the $210,000 in private contributions for homeless services as follows: $54,000 from FY05 General Fund unreserved, undesignated fund balance for short term homeless services, $6,000 from City Commission contingency funds for short term homeless services, $100,000 from the $289,000 incremental ad valorem revenues for homeless long term capital needs in anticipation of the ten year homeless plan, and $50,000 from the CDBG FY05-06 budget for homeless long term capital needs in anticipation of the ten year homeless plan; and 2) appropriate the $189,000 remaining balance of incremental ad valorem revenues for Fire Department overtime.