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Fiscal Year 2020 Annual Budget City of Lakeland, Florida
Budget Overview Section - B
The Budget Overview provides highlights of the FY2020 Budget,
including the Budget Summary, Staffing Changes, and Financial
Policies.
Photo Credit: Janneke Case Photography
Fiscal Year 2020 Annual Budget B-1
City of Lakeland, Florida Annual Budget Fiscal Year 2020
In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Please contact our ADA Specialist, Jenny Sykes, at 228 S. Massachusetts Avenue, Lakeland, Florida, 33801, by email at Jenny.Sykes@lakelandgov.net, by telephone at (863) 834-8444, or by fax at (863) 834-8040. If hearing impaired, please contact the Local TDD numbers(863) 834-8333 or 1-800-955-8771 (TDD-Telecommunications Device for theDeaf) or the Florida Relay Service Number 1-800-955-8770 (VOICE) forassistance.
City of Lakeland Logo www.lakelandgov.net
Fiscal Year 2020 Annual Budget B-2
Table of Contents
Budget Overview Section B
Budget Overview .................................................................................................................... B-3 Budget Development Calendar ............................................................................................... B-8 Budget in Brief ...................................................................................................................... B-10 Budget Summary .................................................................................................................. B-13 Ad Valorem Taxes ............................................................................................................... B-21 Position Changes by Fund & Department ............................................................................ B-22 Historical FT & PT Position Changes ................................................................................... B-23 Residents per Employee ...................................................................................................... B-24 Budget Overview and Financial Policies .............................................................................. B-25 Budgeted Funds Relationship by Program ........................................................................... B-28
Fiscal Year 2020 Annual Budget B-3
Budget Overview
Introduction The FY 2020 Annual Budget was adopted on September 12, 2019. It is the numerical representation of the FY 2020 Strategic/Business Operating Plan. By allocating resources through service prioritization based on strategic alignment with the City of Lakeland Strategies, this budget sets the stage for continued success into the future.
Budget Highlights The net operating budget for FY 2020 for all funds totals $626,811,301. This represents an increase of $14,336,812 or 2.34% more than the FY 2019 budget. The FY 2020 budget is balanced, and responsive to the community needs identified in the Strategic/Business Operating Plan.
Some factors that contributed to the changes in the budget are:
• Eroding levels of revenue in the Federal, State & Local Grants, Shared Revenues,
• Charges for Services, Licenses and Permits and All Other Revenues,
• Budget development based on Citizen needs, a prioritized Strategic Plan and responsiveActionable Items.
Building the Foundation The Commission’s Annual Retreat in April 2019 focused on:
• Review of the Strategic Operating Plan (SOP)
• Key Issues Facing the Community
• Results of the Community Values Survey
• Proposed Actionable Item presentations by Department Heads including a review of long-range potential financial projects and plans.
The Retreat included information gathering and participation from Community Stakeholders and Senior Leadership Staff. The Retreat resulted in reviewing and valuing the City’s Goals and the identification of Actionable Items for meeting strategic initiatives.
True to the spirit of performance, the Strategic Operating Plan has evolved over the last several years, linking our day-to-day activities with the City Vision and level of services we aspire to achieve. Our next steps further into Performance Management will link our Goals to our Services through measurement, allowing us to benchmark against other communities and also proactively approach process improvement.
Financial Forecasting One of the most effective tools to manage future financial risk is the Financial Forecasting Model. Revenues are projected at conservative levels and compared to estimated cost increases in payroll, operating expenditures and capital outlay. The purpose of this model is to adequately prepare for future challenges, so it is always conservative in outlook. Using this tool helps keep us focused on long-term solutions, rather than short-term “fixes”, which could lead to negative financial impacts in future years. It is important to note that the City’s budget has always been balanced.
Fiscal Year 2020 Annual Budget B-4
Budget Overview
Budget Format A municipal budget document should provide sufficient, meaningful and useful information to the public, elected officials and City staff. To that end, we have developed a budget document that serves four primary functions:
• Policy Document
• Financial Plan
• Operations Guide
• Communication Device
Together these budget elements define what the City of Lakeland has done, what it plans to do, how it will accomplish its objectives and measure to confirm achievement.
The budget is a program/performance-based plan that links prescribed organizational goals and objectives with the financial resources necessary to achieve them. Each of the budget’s Programs represent a “product” of the City. Contained within each Program are objectives and achievements. The program/performance budget is integrated with line item financial information to ensure optimal budget control.
This program/performance budget enables the public and the City Commission to analyze the budget by priorities based on program goals and performance objectives rather than line item costs.
In addition, this format provides information so that the public and the City Commission will have a better understanding of both the allocation of resources (workforce, expenses and revenues) among programs and the measurable work that each department will accomplish.
The FY 2020 budget includes an Introduction section followed by Budget Overview, Long-Range Planning, Performance Budget, Line Item Budget, Capital Improvement Plan (CIP) and Supplementary Information sections.
Approval Process During the months of June - August, recommended operating and capital improvement program budget documents are prepared and presented to the City Manager, the Budget Review Team and ultimately to the City Commission for review. The City Commission either approves or makes changes in the recommended budgets and returns to staff for further study. Public hearings and final adoption of the budget occur in mid-September.
Monitoring Process The Finance Chief Accountants are authorized to transfer budget amounts within individual departments. Actual expenditures and operating-transfers-out may not exceed the adopted budget at the individual fund level. The City Manager has authority to transfer budgeted amounts within their respective Funds.
Appropriations which are neither expended, encumbered, nor specifically designated to be carried over, lapse at the end of the fiscal year.
Fiscal Year 2020 Annual Budget B-5
Budget Overview
Amending the Budget If, during the fiscal year, it becomes evident that a particular fund is unable to provide the required level of services to the community due to unexpected higher costs of providing the service, the budget may be amended. The Director of Finance, through the City Manager, submits to the City Commission a budget amendment request. This request contains explanations written by the Director of the department needing additional funds. The request also includes a proposal for financing the additional expenditures, usually either by appropriating from the fund balance or by submitting evidence of expected surplus current year revenues. City Commission approval is required for budget amendments which alter the budget or workforce increases in any fund.
How the Budget Is Created The City Commission begins an annual process of strategic planning designed to identify the issues that must be addressed to achieve our Mission and that will persist throughout the Strategic Plan. Reviewed and updated annually, the Strategic Plan creates a shared vision for the future of the community. Long-range Strategies and Actionable Items are developed by the City Commission and reaffirmed in the Strategic Plan to emphasize the values of our customers. With the Strategies set, the operations of the City are reviewed and redirected to bring the Strategic Plan to life. Specific programs, capital purchases, staffing requirements and funding levels are developed in response to the needs identified in the Strategic Plan. The Plan is an outgrowth of the Strategies, capturing the City’s Vision in a quantifiable form, improving decision-making and resource allocation. The Strategies, combined with the Strategic Plan, form the Strategic Operating/Business Plan. This process creates a direct link between costs, Programs, Activities and Core Services. We use this model to monitor our performance by developing process maps that link budget items to activities and identify value-added and non-value-added services. In developing the fiscal year operating budget, departments analyze existing services and potential services keeping in mind the Strategic Plan Outcomes. The plan identifies added and removed services, which are then quantified in the line item budget. They reflect not only the Strategies as set by the City Commission, but also incorporate feedback from customer surveys and policy initiatives that contribute to the long-term financial health of the City. Departments set goals to meet the needs identified by the Strategies. To meet these goals, core services within the departments have specific performance measurements. As the culture of continuous improvement and performance management continues to be cultivated in the City of Lakeland, each employee will become more and more involved in understanding what the end result should be and how it contributes to the City’s Strategic Plan. In this way, the budget becomes a tool for monitoring and improving, rather than just controlling operating performance.
Fiscal Year 2020 Annual Budget B-6
Budget Overview
Program Budgeting Programs are the driving force behind each Activity’s budget, setting the direction of each department. A projected budget based on the previous year’s budget, with any new Services appended and any discontinued Services removed, is developed.
From there, Key Success Indicators are developed that relate to the City’s Strategic Plan. Goals and objectives should be realistic and quantifiable, and improvements should support the efficiency and effectiveness. Current goals and objectives may be used to establish a starting point for the future.
Around April, the Finance Department distributes target budgets to each department for the upcoming fiscal year. These targets are based on projections of current year expenditures as well as prioritized Core and Support Service costs. At the same time, Capital Improvement Program physical inventory worksheets are distributed for department input.
Budget targets are developed and their relationship to achieving the Goals of the Strategic Operating Plan. Operating costs are included in this budget target. Department staff members verify all numbers and assumptions made in these categories. Departments also submit all personnel changes such as retirements, projected salary increases or changes in hours worked.
Operating Expenses The target budget contains operating expenses based on projections of the current year’s expenditures. The actual users of the supplies and services review their practices and habits involving daily expenditures for possible efficiencies or improvements. Departments review the line item account codes for accuracy of description and determine if they reflect the actual types of expenditures.
Lastly, they provide justification for any changes from the target budget with the use of information from current year expenditures or information obtained from other sources, such as trends in next year’s contracts, service costs provided by the Purchasing Division or further explanation of budget impacts for Actionable Items.
Capital Expenses Certain capital funds maintain a ten-year Capital Improvement Plan (CIP) for required capital, R&R, Equipment and Maintenance needs. Departments evaluate all existing equipment, facilities and other capital items to determine if the useful life has been exceeded, or will be exceeded, in the coming budget year.
Each fiscal year, those funds that maintain 10-year CIP’s are updated for additional project requirements or changes in future capital needs.
Fiscal Year 2020 Annual Budget B-7
Budget Overview
Budget Methodology The Budget for the City of Lakeland is a performance-based system. This type of budgeting system identifies a level of performance for each type of service (program) and the resources required to operate it as well as describes the structure of the departments and the programs into which they are divided. The Performance Budget is separated into Programs and Activities which are broken down into the following components:
Component Description
Program Description The statement must identify the purpose for the activities and how they relate to the City’s overall mission.
Core Services Products or services provided to the public (external customer) as an actual deliverable and not as a supporting service or step in the process. (Applicable to General Fund Operating Departments and Enterprise Funds)
• FTE: Number of full-time and part-time employees associated withthe completion of the Activity
• Personnel Costs: Salary and Benefits
• Operational Costs: All costs (other than personnel) attributed withcompleting the Activity
• Debt Service: Acquired debt (if applicable)
• Net Cost: Total Activity Cost
Support Services Resources or assistance in support of a Core Service or deliverables provided to a City of Lakeland operation or internal customer [e.g. technology, equipment or special resources including administrative, technical, maintenance, financial, legal or other skilled and professional categories]. (Applicable to General Fund Governance Departments and Internal Service Funds)
Same table structure as identified above for Core Services.
Performance Measurements
The performance measurements will focus on accomplishments that have or will be attained within the current year. All will be measurable by the performance indicators supplied. Each performance measure will include explicit links showing how objectives and their indicators are directly related to the Strategies they support.
Performance Measurements may be developed:
• Operationally
• As a specific City-wide Key Success Indicator
• Based on Community Values Survey Data
• Based on an Actionable Item
• From a Florida Benchmarking Consortium (FBC) measurement
Figure B-1: Performance Budget Components
Fiscal Year 2020 Annual Budget B-8
Budget Overview
Fiscal Year 2020Strategic Planning & Budget Development Calendar
DATE ACTION REQUIRED RESPONSIBILITIES
Jan. 23 – Feb. 28 Community Values Survey OMB
Jan. 2 -Feb. 1 Mid-Year PMFs Submitted to OMB Departments/OMB
Jan. 2 – Mar. 31 Meet with departments and review materials and instructions for Department Capture of Measurements & KSI data
Departments/OMB
Feb. 29 – Mar. 31 Community Values Survey Data Analysis OMB
March 1 - 15 Complete ALL FY 2020 Personnel Request Forms (PMFs) and Submit to OMB
Departments/OMB
Mar. 1 – Apr. 12 HR completes necessary Personnel PMF Review and Documentation. Output provided to OMB.
HR/Departments/OMB
March 1 DH's provide list of Strategic Planning Workshop Topics to CMO
Departments/CMO
March 11 Internal Services Line Item Budgets Available for Input
Finance/Departments
Mar. 15 – Apr. 30 PMF Preview Meetings DCM, OMB & Finance
March 18 - 29 DH's City Commission Strategic Planning Workshop Presentation Rehearsals
Departments, CMO, OMB
April 16 City Commission Strategic Planning Workshop (Full Day/RP Funding Center)
City Commission, City Staff, Public
April 17 City Commission Strategic Planning Workshop (Full Day/RP Funding Center)
City Commission, City Staff, Public
April 22 Senior Leadership Workshop, Day 1 (PM 1/2 day/Tiger Admin)
CMO, OMB & Senior Leadership
April 22 Line Item & CIPs Available for Entry Finance/Departments
May 2 Senior Leadership Workshop, Day 2/Business Planning Retreat Presentation Rehearsals (PM 1/2 day/Tiger Admin)
CMO, OMB & Senior Leadership
May 3 Line Item Budgets Completed/Finance Begins Review
Departments/Finance
May 7 City Commission Business Planning Retreat (Full Day/RP Funding Center)
City Commission, City Staff, Public
May 8 City Commission Business Planning Retreat (Full Day/RP Funding Center)
City Commission, City Staff, Public
May 10 Complete CIP Forms and notify Finance Departments
May 10 Begin review of CIP Forms Finance
Figure B-2: Strategic Planning and Budget Development Calendar - Part 1
Fiscal Year 2020 Annual Budget B-9
Budget Overview
Fiscal Year 2020Strategic Planning & Budget Development Calendar
DATE ACTION REQUIRED RESPONSIBILITIES
May 31
Begin finalizing or working on Budget Development Items (refer to Handbook): 1. Hyperion System:• Workforce Forms
• Central Budget Forms• Performance Budget Forms• CIP Forms2. Table of Organization Process (N: Drive)
OMB, Finance, Departments
May & June O&M, Workforce, Core Services and TO Reconciliation to approved Budgets
Finance, OMB
One week prior to date of City
Manager Review Meeting
1. Return Electronic Meeting Deliverables to OMB2. Program Budget Development Forms
Departments
May 28 - June 28 Dept. Budget Meetings - Review Proposed Budgets & Accomplishments
Depts., City Manager, OMB, Finance
July 1 Tax Assessment delivered to the City Property Appraiser
July 12 Commission Agenda Study - Obtain guidance for Maximum Millage Rate to publish and confirm dates for Public Hearings
City Manager, Finance, City Commission
July 14 Deliver proposed Tax Millage Rate, Roll-Back Rate, Public Hearing Schedule to Property Appraiser
Finance
July 18 & 19 City Commission Budget Workshop Public, CC, CMO,
Depts., OMB, Finance
Aug 12 Publish notice of public hearing on Mayor & Commission Salary
City Clerk
Aug 16 Publish TRIM Notice for 1st Public Hearing Property Appraiser's
Office
Aug 31 Complete all Performance Budget Allocations in Hyperion
Departments/OMB
Aug 31 Provide City Commission FY 2020 Proposed Budget Components for Review before Budget Workshops
OMB, Finance
Sept 5 First public hearing on tentative budget, proposed millage rate, adopt proposed millage rate
City Commission
Sept 8 Publish notice of public hearing on final budget City Clerk
Sept 12 Second public hearing to adopt final budget and millage rate
City Commission
Prior to 10/1 Distribute FY 2020 Budget Document OMB
Figure B-3: Strategic Planning and Budget Development Calendar - Part 2
Fiscal Year 2020 Annual Budget B-10
Budget in Brief
The Budget in Brief document is a summary of the program budgets utilized by the City of Lakeland to best allocate fiscal resources to respond to the desires of the Citizens and fulfill the goals of the City Commission.
Community Safety: $ 69,880,478 The Community Safety Program provides police and fire services to the residents of Lakeland through six programs: Community Police, Dispatching, Firefighting, Investigative, Patrol and Rescue Services.
Cultural & Community Services: $15,917,259 Lakeland’s three libraries, Public Information Services and the performances and events at the RP Funding Center are operated under this Program.
Economic & Community Development: $22,286,488 The Economic & Community Development Program is comprised of the Affordable Housing Programs, Building Inspection and Permitting, Code Enforcement, the Community Redevelopment Agency (CRA) Districts, Development Review and Economic Development.
Non-Departmental: $918
Environmental & Utility Services: $412,773,336 This Program is made up of the Electric Utility Production, Transmission & Distribution and Billing activities, as well as Lakes and Stormwater Management, various Solid Waste activities, Water Treatment & Distribution and Wastewater Collection & Treatment.
Parks, Recreation and Properties: $ 36,141,822 Aquatics, Cemeteries, Cleveland Heights Golf Course, Parks and Recreation and Facilities Services are the activities that make up the Parks, Recreation and Properties Program.
Transportation Services: $ 52,376,159 The Transportation Services Program covers the Leasing and Operations activities at Lakeland Linder International Airport, Parking Services downtown, and the Construction and Maintenance of all Transportation Facilities.
Legislative Activities: $ 5,932,951 The support activities for the City Commission, including City Clerk, City Commission operations and Community Relations are contained in this program.
Support Services: $ 11,501,890 This Program contains the various supporting services that facilitate the operations of the other programs, including Facilities Maintenance, Fleet Management, Governance Administration, Information Technology and Purchasing and Stores.
Adopted FY 2020 Budget: $626,811,301
Fiscal Year 2020 Annual Budget B-11
Budget in Brief
Expenditures by Activity
Community Safety $69,880,478 Community Police Programs 7,553,028 Dispatching Services 6,009,563 Emergency Preparedness 147,854 Firefighting Services 13,429,882 Investigative Services 11,438,365 Patrol Services 20,804,843 Rescue Services 10,496,943
Economic & Community Dev. $22,286,488 Affordable Housing Programs 1,218,867 Building Inspection & Permitting 1,255,672 Code Enforcement 1,447,419 CRA Districts 11,845,933 Development Review Services 3,570,175 Economic Development 230,750 Local Business Taxes 290,069 Neighborhood Programs 369,578 Planning Services 2,058,025
Environmental & Utility Svcs. $412,773,336 Energy Production 213,628,659 Energy Transmission & Dist. 72,988,646 Energy Utility Billing & Cust. Svc. 18,516,306 Lakes and Stormwater Mgmt. 8,756,834 Solid Waste - Commercial 6,155,210 Solid Waste - Recycling 3,105,381 Solid Waste - Residential 7,149,437 Water Treatment & Distribution 33,701,131 Wastewater Collection & Treatment 48,771,732
Non-Departmental $918
Cultural & Community Svcs. $15,917,259 Library Services 4,578,637 Public Information Services 753,275 The RP Funding Center 10,585,347
Parks, Rec. & Properties $36,141,822 Aquatics 1,706,256 Cemeteries 1,403,763 Cleveland Heights Golf Course 2,633,281 Parks 15,942,695 Recreation & Facilities Services 14,455,827
Transportation Services $52,376,159 Airport - Leasing Activities 4,123,757 Airport - Operations 28,418,746 Parking Services 1,805,058 Transportation Facilities – Const. 3,479,497 Transportation Facilities – Maint. 14,549,101
Legislative Activities $5,932,951 City Clerk 654,263 City Commission 4,417,510 Community Relations 861,178
Support Services $11,501,890 Facilities Maintenance 2,323,274 Fleet Management 104,244 Governance Administration 8,390,639 Information Technology 667,746 Purchasing and Stores 15,987
Total Expenditures $626,811,301
Figure B-4: Expenditures Pie Chart
Fiscal Year 2020 Annual Budget B-12
Budget in Brief
Revenues by Activity
Community Safety $ 5,013,627 Community Police Programs 1,260,079 Dispatching Services 87,065 Emergency Preparedness 0 Firefighting Services 1,059,523 Investigative Services 120,150 Patrol Services 2,068,814 Rescue Services 417,996
Cultural & Community Svcs. $ 7,528,344 Library Services 1,396,323 Public Information Services 20,000 The RP Funding Center 6,112,021
Economic & Community Dev. $ 15,913,464 Affordable Housing Programs 1,305,578 Building Inspection & Permitting 1,627,488 Code Enforcement 858,380 CRA Districts 8,793,093 Development Review Services 1,480,275 Economic Development - Local Business Taxes 1,721,200 Neighborhood Programs - Planning Services 127,450
Environmental & Utility Svcs. $ 459,126,712 Energy Production 240,740,751 Transmission & Dist. 76,597,545 Utility Billing & Cust. Svc. 18,691,175 Lakes & Stormwater Mgmt. 7,821,730 Solid Waste - Commercial 11,685,400 Solid Waste - Recycling 1,499,559 Solid Waste - Residential 10,361,740 Water Treatment & Dist. 39,669,001 Wastewater Collection & Treatment 52,059,811
Parks, Rec. & Properties $ 7,645,414 Aquatics 159,050 Cemeteries 686,805 Cleveland Heights Golf Course 1,356,118 Parks 1,491,140 Recreation and Facilities Services 3,952,301
Transportation Services $ 42,169,113 Airport - Leasing Activities 7,161,063 Airport - Operations 25,418,724 Parking Services 1,665,386 Transportation Facilities - Const. 3,536,344 Transportation Facilities - Maint. 4,387,596
Legislative Activities $ - City Clerk - City Commission - Community Relations -
Support Services $ 2,516,026 Facilities Maintenance - Fleet Management - Governance Administration 161,200 Information Technology 0 Purchasing and Stores 2,354,826
Non-Departmental $ 86,898,601 General Fund Services 86,503,637 Lakeland Regional Medical Center 394,964
Total Revenues $626,811,301
Figure B-5: Revenues by Activity Pie Chart
Fiscal Year 2020 Annual Budget B-13
Budget Summary
Revenue Sources
Sources Revenues Charges for Services $433,217,706 All Other Revenue 39,545,571 Public Service, Communication, and Gasoline Taxes 32,277,071 Intergovernmental 34,028,070 Property Taxes 42,354,505 Licenses and Permits 4,685,816 Prior Year Surplus 40,702,562 Total Revenues $626,811,301
Figure B-6: Revenue Sources
Figure B-7: Revenue Sources Pie Chart
Charges for Services
70%
All Other Revenue
6%
Public Service, Communication
and Gasoline Taxes
5%
Intergovernmental5%
Property Taxes7%
Licenses and Permits
1%
Prior Year Surplus
6%
Fiscal Year 2020 Annual Budget B-14
Budget Summary
Expenses by Account
Account Expenses Fuel and Purchased Power $123,138,182 Personnel 181,242,198 Capital Outlay 117,471,951 Debt Service 61,038,452 All Other Operations and Maintenance 16,840,582 Internal Service Charges 58,281,347 Professional and Contractual 45,804,549 Utilities 13,706,002 Insurance and Fixed Charges 9,288,038 Total Expenditures $626,811,301
Figure B-8: Expenses by Account
Figure B-9: Expenses by Account Pie Chart
Fuel and Purchased Power
20%
Personnel29%Capital Outlay
19%
Debt Service10%
All Other Operations and
Maintenance3%
Internal Service Charges
9%
Professional and Contractual
7%
Utilities2% Insurance and
Fixed Charges1%
Fiscal Year 2020 Annual Budget B-15
Budget Summary
Summary of All Funds – Revenues
Proposed Budget
Less Intracity
Transactions Net
Budget Revenues
General $137,346,428 49,915,475 87,430,953 Transportation 13,812,212 25,000 13,787,212 Stormwater Utility 7,821,730 7,821,730 Public Improvement 20,510,896 575,633 19,935,263 Community Redevelopment Agency 8,793,092 8,793,092 Community and Economic Development 1,305,577 1,305,577 Fleet Management 16,540,022 16,540,022 Purchasing and Stores 3,884,739 3,884,739 Facilities Maintenance 7,101,101 7,101,101 Information Technology 22,759,039 22,759,039 Wastewater System 65,536,632 13,476,822 52,059,810 Water Utilities 51,926,504 12,257,503 39,669,001 Parking System 1,228,444 348,000 880,444 RP Funding Center 10,549,963 4,437,941 6,112,022 Lakeland Linder International Airport 33,739,377 1,159,590 32,579,787 Solid Waste Management 20,406,933 20,406,933 Lakeland Electric Utilities 452,704,307 116,674,830 336,029,477
Total Revenues $875,966,996 $249,155,695 $626,811,301
Figure B-10: List of Revenues by Funds
Figure B-11: Revenues by Funds Pie Chart
General Fund14% All Other
Governmental Funds
8%
Water / Wastewater
Utilities15%
Electric Utility54%
All Other Enterprise
Funds9%
Fiscal Year 2020 Annual Budget B-16
Budget Summary
Summary of All Funds – Expenditures
Proposed Budget
Less Intracity
Transactions Net
Budget Expenditures
General $137,346,428 3,679,358 133,667,070 Transportation 13,812,212 348,000 13,464,212 Stormwater Utility 7,821,730 918 7,820,812 Public Improvement 20,510,896 6,503,203 14,007,693 Community Redevelopment Agency 8,793,092 288,207 8,504,885 Community and Economic Development 1,305,577 1,305,577 Fleet Management 16,540,022 16,540,022 Purchasing and Stores 3,884,739 3,884,739 Facilities Maintenance 7,101,101 7,101,101 Information Technology 22,759,039 22,759,039 Wastewater System 65,536,632 18,113,364 47,423,268 Water Utilities 51,926,504 16,897,615 35,028,889 Parking System 1,228,444 85,715 1,142,729 RP Funding Center 10,549,963 5,609 10,544,354 Lakeland Linder International Airport 33,739,377 1,210,232 32,529,145 Solid Waste Management 20,406,933 4,106,833 16,300,100 Lakeland Electric Utilities 452,704,307 147,631,740 305,072,567
Total Revenues $875,966,996 $249,155,695 $626,811,301
Figure B-12: List of Expenditures by Funds
Figure B-13: Expenditures by Funds Pie Chart
General Fund21% All Other
Governmental Funds
7%
Water / Wastewater
Utilities13%
Electric Utility49%
All Other Enterprise
Funds10%
Fiscal Year 2020 Annual Budget B-17
Budget Summary
General Governmental Funds* - Revenues
Source Revenues Property Taxes $35,856,099 Utility Dividend 44,140,397 LRMC Lease 14,378,615 Charges for Services 19,184,071 Grants 7,514,821 Gas Taxes 5,634,000 Sales & Utility Taxes 15,784,530 CRA Tax Increment 6,498,406 Debt Proceeds 4,000,000 All Other 29,841,067 Prior Year Reserves 6,757,929 Total Revenues $189,589,935
*Non-Enterprise FundsFigure B-14: General Government Funds Revenues
Figure B-15: General Governmental Funds Revenues Pie Chart
Fiscal Year 2020 Annual Budget B-18
Budget Summary
General Governmental Funds* - Expenditures
Department Expenses Police $45,032,613 Fire 21,400,509 Public Works 7,579,709 Parks & Recreation 27,275,654 Debt Service 9,362,649 Capital Outlay 18,209,527 Community & Economic Development 8,902,813 General Government 10,153,460 Street Lighting 4,362,066 All Other 37,310,935 Total Revenues $189,589,935
*Non-Enterprise FundsFigure B-16: General Government Funds Expenditures
Figure B-17: General Governmental Funds Expenditures Pie Chart
Police24%
Fire11%
Public Works4%
Parks & Rec14%
Debt Service5%
Capital Outlay10%
Community and Economic Development
5%
General Government
5%
Street Lighting2%
All Other20%
Fiscal Year 2020 Annual Budget B-19
Budget Summary
General Fund - Revenues
Source Revenues Property Taxes $35,856,099 Utility Dividend 44,140,397 Charges for Services 5,739,529 Grants 1,850,376 Utility Taxes & Franchise Fees 15,784,530 State Shared Revenues 10,317,300 Licenses and Permits 4,685,816 Fines and Forfeits 2,558,891 All Other 9,117,711 Prior Year Reserves 7,295,779 Total Revenues $137,346,428
Figure B-18: General Fund Revenues
Figure B-19: General Fund Revenues Pie Chart
Property Taxes26%
Utility Dividends32%
Charges for Services
4%
Grants1%
Utility Taxes &
Franchise Fees12%
State Shared Revenues
8.00%
License and Permits
3%
Fines and Forfeits
2%
All Other7%
Prior Year Reserves
5%
Fiscal Year 2020 Annual Budget B-20
Budget Summary
General Fund - Expenditures
Department Expenses Police $45,032,613 Fire 21,400,509 Public Works 7,579,709 Parks & Recreation 27,275,654 Debt Service 257,727 Capital Outlay 218,299 Community & Economic Development 7,597,236 General Government 10,153,460 Street Lighting 4,362,066 All Other 13,469,155 Total Revenues $137,346,428
Figure B-20: General Fund Expenditures
Figure B-21: General Fund Expenditures Pie Chart
Police33%
Fire16%
Public Works5%
Parks & Rec19%
Debt Service
1%
Capital Outlay
1%
Community and Economic
Development6%
General Government
7%
Street Lighting3%
All Other9%
Fiscal Year 2020 Annual Budget B-21
Ad Valorem Taxes
Millage Rate
An ad valorem tax is a tax based on the value of real estate or personal property. One mill is the equivalent of $1 per $1,000 of value. During Fiscal Year 2019, the millage rate was 5.4644. The rate for Fiscal Year 2020 will continue to remain at 5.4644.
Historic Millage Rates
Figure B-22: Historic Millage Rates Graph
Fiscal Year Millage
2011 4.1644
2012 4.1644
2013 4.6644
2014 4.6644
2015 4.6644
2016 5.5644
2017 5.5644
2018 5.5644
2019 5.4644
2020 5.4644
Figure B-23: List of Millage Rates by Year
0
1
2
3
4
5
6
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Fiscal Year 2020 Annual Budget B-22
Position Changes by Fund and Department FY19-20
FY 2018 FY 2019 FY 2020 Net Change
Full- Time
Part-Time
Full-Time
Part-Time
Full-Time
Part-Time
Full-Time
Part-Time
City Commission 1 7 1 7 1 7 0 0
City Manager 14 0 14 0 15 0 1 0
Communications 8 0 8 0 7 0 -1 0
Legal 6 0 6 0 6 0 0 0
Retirement 3 0 3 0 4 0 1 0
Human Resources 25 1 25 1 25 1 0 0
Internal Audit 2 0 2 0 2 0 0 0
Risk Management 17 0 18 0 16 0 -2 0
Finance 42 1 43 1 44 1 1 0
Community Development 60 9 64 9 64 8 0 -8
Fire 171 1 177 1 178 1 1 0
Police 359 14 368 14 368 14 0 0
Public Works 115 0 116 0 117 0 1 0
Parks & Recreation 241 178 242 178 241 176 -1 -2
1064 211 1087 211 1088 208 1 -3
Comm Development/Housing Program 6 0 5 0 5 0 0 0
Fleet Management 28 0 28 0 28 0 0 0
Purchasing & Stores 16 0 16 0 16 0 0 0
Facilities Maintenance 62 0 64 0 64 0 0 0
Information Technology 81 0 81 0 80 0 -1 0
187 0 189 0 188 0 -1 0
RP Funding Center 50 305 51 305 51 305 0 0 Lakeland Linder International Airport 17 4 17 4 20 2 3 -2
Parking System 5 0 5 0 5 0 0 0
Stormwater 7 0 9 0 12 0 3 0
Solid Waste 65 0 66 0 66 0 0 0
Water 130 2 130 2 133 2 3 0
Wastewater 95 4 95 2 97 2 2 0
Lakeland Electric 547 27 538 27 531 27 -7 0
916 342 911 340 915 338 4 -2
Grand Total 2173 553 2192 551 2196 546 4 -5
Figure B-24: Position Changes by Fund and Department
Fiscal Year 2020 Annual Budget B-23
Historical FT and PT Changes
The graph below represents a historical perspective of the number of positions on the City organizational charts. With changes in population, service areas and the economy, among other factors, the City adjusts the organizational structure to maintain service levels and remain responsive to the needs of its citizens and customers.
Figure B-25: Historical Full-time and Part-time Position Changes Graph
Position Changes Fiscal Year FT PT
2012 -49 -52
2013 -5.5 -7
2014 -81.5 -12
2015 24 63
2016 13 -5
2017 9 -5
2018 0 2
2019 19 -2
2020 4 -5
Figure B-26: Full-time and Part-time Position Changes by Year
Fiscal Year 2020 Annual Budget B-24
Residents Per Employee
The number of residents per employee, when considered along with other factors, can reflect changes in productivity. Labor is one of the largest expenditures of the operating budget and changes in this indicator can reveal strengths or deficiencies in operations. An upward trend in residents per employee coupled with a consistent level of service can reflect increased productivity.
Figure B-27: Residents Per Employee Graph
Year Lakeland
Population*
LE Service Area
Population
Lakeland FTE’s
Residents per
Employee
2010 97,422 253,084 2,370.50 41.1
2011 97,690 253,009 2,373.50 41.2
2012 98,200 260,567 2,351.00 41.8
2013 99,630 262,288 2,374.00 42.0
2014 100,728 264,023 2,310.00 43.6
2015 100,728 271,379 2,326.67 43.3
2016 101,517 274,861 2,280.39 44.5
2017 104,185 279,331 2,442.00 42.7
2018 105,586 283,626 2,448.00 43.1
2019 107,552 288,157 2,465.50 43.6
*BEBR estimates, unless a Census year (latest 2010).
Figure B-28: Population, Full-Time Equivalents and Residents per Employee by Year
39.0
40.0
41.0
42.0
43.0
44.0
45.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Residents per Employee
Fiscal Year 2020 Annual Budget B-25
Budget Overview and Financial Policies
Operating Budget Policies • The Budget shall be balanced by fund. Balanced by fund is defined as revenues plus Fund
Balance being equal to or greater than expenditures. Fund Balance is normally reserved forcapital projects/outlay or one-time expenditures and is generally not to be used foroperational expenditures.
• The Budget will provide for adequate maintenance of capital plant and equipment and fortheir orderly replacement.
• The City will maintain a budgetary control system to ensure it adheres to the Budget.
• Appropriation requests will be made by departments (i.e. City Manager, Police, etc.) in theGeneral Fund and by all other funds. These requests are approved by the City Commission.
• Fund balance is the difference between assets and liabilities in a governmentalfund. Resources in a fund other than the General Fund are either (1) required to be used forthe purpose of the fund or (2) intended by the government to be used for that purpose. Thegovernmental funds account for typically tax-supported activities of a government (asopposed to the proprietary funds, which account for self-financing, business-like activities)and include:
o The General Fund, where a government accounts for everything not reported in anotherfund
o Special Revenue Funds, for reporting specific revenue sources that are limited to beingused for a particular purpose
o Debt Service Funds, which account for the repayment of debto Capital Project Funds, which track the accumulation and use of resources for
constructing, acquiring and rehabilitating capital assets, such as buildings and roadso Permanent Funds, where a government reports principal amounts that are restricted to
being invested to produce income but cannot be spent
• Unreserved Fund Balance should be approximately 45-60 days of the operating revenues ofthe General Fund to account for unforeseen items and events that occur during the course ofa fiscal year. The Fund Balance will act as a cushion or “budget stabilization fund” for theexpenditures financed within that fund.
• The City will protect itself against catastrophic losses through a combination of good riskmanagement, traditional insurance and, where prudent, actuarially funded self-insuranceprograms.
• Recovery of the specific costs of municipal services will be allocated to the appropriateusers, wherever possible and practical, and shall be accounted for within enterprise fundsmaintained by the City on a full accrual basis.
Fiscal Year 2020 Annual Budget B-26
Budget Overview and Financial Policies
Operating Budget Policies Continued • Internal Service Funds shall be self-supporting and shall recover the cost of the services
they provide based on a rational allocation of costs to the benefiting City Departments.
• The City will strive to have all Enterprise Funds be self-supporting to the extent practical,including debt service and capital improvements. All costs associated with these operationsshall be fully accounted for within the Enterprise Fund and any subsidies required for theseoperations shall be documented as Interfund Transfers.
• Although not required by State Law, Internal Service Funds (except for the internal loan andself-insurance funds) and Enterprise Funds will be governed by legally adopted annualbudgets for cost control and administrative purposes.
• In no case will any fund operate in a manner that results in a continuing annual deficit thatcould result in a negative “unappropriated surplus” (defined as current assets excludinginventories less current liabilities including the long-term portion of accrued payroll liabilities).
• Operating budgets are prepared on a modified accrual basis, insuring that budgetedexpenditures within an annual planning period can be financed from available, spendableresources.
• In the Audited Financial Statements, the Government-Wide and Proprietary Funds arereported using the Full Accrual Basis of Accounting.
Revenue Policies
• As much as possible, subject to State Law and voter approval, the City will seek to maintaina diversified and stable mix of revenue sources.
• The City will pursue collection of revenues levied against the users of public services.
• User fees and charges will be established with consideration of the recovery of the full costof providing the related service, to the extent practical.
• In preparing the Budget, the City Manager will estimate revenues using a conservative,objective and analytical process.
• Non-recurring revenues and one-time revenues will not be relied upon to finance the cost ofrecurring expenditures. Non-recurring revenues and one-time revenues should be used fornon-recurring expenditures.
• All grant applications will be prepared with full consideration matching costs and on-goingrecurring costs to be financed from local revenue sources. All grant applications shall beauthorized by the City Commission.
Fiscal Year 2020 Annual Budget B-27
Budget Overview and Financial Policies
Capital Improvement Policies • The City develops a ten-year Capital Improvement Plan (CIP).
• Capital project budgets will be adopted on a project basis at the inception of the project.
• The City will coordinate development of the Capital Improvement/Replacement Budget withthe development of the annual operating Budget. Each capital project is reviewed for itsongoing future impact on the operating budget.
• The City will use the following criteria to evaluate the relative merit of each capital projectbeing considered for funding within its CIP:
o Projects specifically included in an approved capital asset replacement schedule willreceive priority consideration.
o Capital Projects that will reduce recurring operating costs will receive priorityconsideration.
Fiscal Year 2020 Annual Budget B-28
Budgeted Funds Relationship by Program
Figure B-29: Budgeted Funds Relationship by Program
Pro
gram
Act
ivit
yG
ener
alR
P F
un
din
g
Cen
ter
CRA
Ele
ctri
c
Uti
lity
Soli
d W
aste
Stor
mw
ater
Par
ks,
Rec
reat
ion
& P
rop
erti
es
Lak
elan
d
Lin
der
Reg
ion
al
Air
por
t
Polic
e Se
rvic
esx
xx
x
Fire
figh
ting
Ser
vice
sx
xx
x
Libr
ary
Serv
ices
xx
Publ
ic In
form
atio
nx
xx
xx
xx
x
RP F
undi
ng C
ente
rx
xx
xx
Aff
orda
ble
Hou
sing
xx
xx
xx
Build
ing
Insp
ecti
onx
xx
xx
Code
Enf
orce
men
tx
xx
xx
xx
CRA
Dev
elop
men
t Rev
iew
xx
xx
x
Plan
ning
Ser
vice
sx
xx
x
Elec
tric
Uti
lity
x
Lake
s an
d St
orm
wat
erx
x
Solid
Was
tex
xx
xx
Wat
erx
xx
xx
Was
tew
ater
xx
xx
x
City
Cle
rkx
City
Com
mis
sion
x
Com
mun
ity
Rela
tion
sx
Aqu
atic
sx
x
Cem
eter
ies
x
Clev
elan
d H
eigh
ts G
olf C
ours
ex
xx
x
Park
sx
xx
Recr
eati
on a
nd F
acili
ties
xx
xx
Faci
litie
s M
aint
enan
cex
x
Flee
t Man
agem
ent
xx
xx
xx
xx
Info
rmat
ion
Tech
nolo
gyx
xx
xx
xx
x
Purc
hasi
ng a
nd S
tore
xx
xx
xx
xx
Gov
erna
nce
Adm
inis
trat
ion
x
Non
-Dep
artm
enta
lx
Lake
land
Lin
der R
egio
nal
xx
xx
Park
ing
Serv
ices
xx
x
Faci
litie
s Co
nstr
ucti
onx
Faci
litit
es M
aint
enan
cex
Tran
spor
tati
onT
ran
spor
tati
on
Serv
ices
$52
.4 M
illi
on
Pu
bli
c Sa
fety
$69
.9 M
illi
on
Cult
ura
l &
Com
mu
nit
y
Serv
ices
$15
.9 M
illi
on
Eco
nom
ic &
Com
mu
nit
y
Dev
elop
men
t
$22
.3 M
illi
on
Par
ks,
Rec
reat
ion
and
Pro
per
ties
$36
.1 M
illi
on
Park
s, R
ecre
atio
n &
Prop
erti
es
En
viro
nm
enta
l &
Uti
lity
Ser
vice
$41
2.8
Mil
lion
Operations
Com
mun
ity
Safe
ty
Cult
ural
&
Com
mun
ity
Serv
ices
Econ
omic
&
Com
mun
ity
Dev
elop
men
t
Envi
ronm
enta
l &
Uti
lity
Serv
ice
Legi
slat
ive
Act
ivit
ies
Legi
slat
ive
Act
ivit
ies
$5.9
Mil
lion
Acc
ou
nti
ng
Sup
por
t Se
rvic
es
$11
.5 M
illi
on
Supp
ort S
ervi
ces
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