STATEMENT OF ISSUE
The final operating and capital budgetary results for each fiscal year are presented annually to the City Commission for its acceptance. The final operating and capital funds were closed in accordance with the City’s existing budget and financing policies.

The General Fund ended the fiscal year requiring funding from the Deficiencies Fund in the amount of $2,078,268. The Electric Fund ended the year with a surplus of $872,874; in accordance with the City’s Financing Policy this surplus was transferred to the Electric Operating Reserve. The Stormwater Fund ended the year with a surplus of $4,164,430; in accordance with the City’s Finance Policy, this surplus was transferred to the Stormwater RR&I Fund. The Gas, Water, and Sewer Funds ended the year requiring transfers from their respective RR&I Funds of $1,609,436, $1,229,998, and $282,430. The Solid Waste Fund ended the year requiring a transfer from the Solid Waste Rate Stabilization Fund of $334,658. The year-end surplus in the Aviation Fund of $2,313,964 was distributed between the Airport RR&I Fund and the Airlines Prepaid Fees Credit in accordance with the Airline Use Agreements.

The StarMetro Fund ended the year requiring additional support from the General Fund in the amount of $1,062,723. The Hilaman Golf Course Fund ended the year requiring support from the Golf Course RR&I Fund in the amount of $80,618. The Cemetery Fund ended the year with a deficit of $22,455, which was funded via a transfer from the Perpetual Care Reserve. The Fire Services Fund ended the year with a deficit requiring funding from the Deficiencies Fund of $1,637,355. The Building Code Enforcement Fund ended the year with a deficit of $1,087,100, which was funded via a loan from the Deficiencies Fund.

RECOMMENDED ACTION
Accept the closeout report as presented.

FISCAL IMPACT
In order to close fiscal year 2008 - 1) funding from the Deficiencies Fund in the amount of $4,778,346 is needed to address the deficit positions in the General Fund, $2,078,268, the StarMetro Fund, $1,062,723, and the Fire Services Fund, $1,637,355; 2) $1,609,436 is needed from the Gas RR&I Fund to address the deficit position in the Gas Fund; 3) $1,229,998 is needed from the Water RR&I Fund to address the deficit position in the Water Fund; 4) $282,430 is needed from the Sewer RR&I Fund to address the deficit position in the Sewer Fund, 5) $334,658 is needed from the Solid Waste Stabilization Fund to address the deficit in the Solid Waste Fund; 6) $80,618 is needed from the Golf Course RR&I Fund to address the deficit position in the Golf Course Fund, and 7) a loan from the deficiencies fund in the amount of $1,087,100 is required to address deficit positions in the Building Inspection Fund. All other operating funds had surpluses at the end of the year which were distributed in accordance with City policies.

Rick Feldman, Accounting Services Manager

Anita Favors Thompson, City Manager

For Information, please contact: Rick Feldman, Management and Administration, 891-8441

FACTS AND ISSUES
This report presents the final operating and capital fund budgets as of and for the fiscal year ended September 30, 2008. The schedules include those distributions made in accordance with present City policies and practices. Each operating fund is presented in Attachment A with emphasis on the disposition of year-end balances as of September 30, 2008. A brief discussion follows, highlighting the results of each of the City’s operating funds; the information provided for each operating fund includes the amended budget, the estimated year end projection as included in the FY2009 budget, the actual results for the year, and the variance between the estimated and actual results. True-ups are performed for various activities at the end of each fiscal year. The following schedules reflect the adjustments that were needed to true-up Internal Service Funds; balances of the 800 MhZ and ISS Funds were retained for future operational and capital needs; the balance in the Fleet Operating Fund was transferred to the Fleet Replacement Reserve; and the balance in the Risk Management Fund was transferred to the Special Insurance Reserve.
On the following schedules, prior year encumbrances (obligations, such as purchase orders) are shown under Revenues as Transfers from Fund Balances for Encumbrances. Payments toward these obligations are included as expenditures in the current fiscal year and reduce these reserved amounts. Obligations for the following year are included within expenditures on this report.

GENERAL FUND
The following schedule illustrates the results for the General Fund:

The General Fund finished FY2008 requiring a transfer from the Deficiencies Fund of $3,140,9991, of which $2,078,268 relates directly to the General Fund, and $1,062,723 relates to the increased StarMetro deficit (discussed in the StarMetro section of this report). The state of the economy, in addition to weather-related reduced consumption, significantly impacted General Fund revenues during FY2008, specifically, 1) property tax revenues were $766,764 less than budgeted due to approximately 3,500 parcels being delinquent and tax certificates could not be sold, 2) utility taxes were lower than originally budgeted by $2.2 million, 3) state revenue sharing and the ½ cent sales tax distributions were lower than budgeted by $1.2 million, and 4) environmental fees were lower than budgeted by $1.1 million.
In addition to the impact on revenues, the economic situation also affected General Fund expenditures, primarily in the area of fuel, which was greater than budgeted by approximately $918,000, and electric utility costs, which were greater than budgeted by approximately $1,066,000. The anticipated reduction in revenues and increased fuel and electric utility costs were mitigated by a variety of measures undertaken by management, including reducing vacant and filled positions, freezing the level of non-personnel related expenditures, fee increases in a variety of programs and City-wide reorganizations.

ELECTRIC FUND
The following schedule illustrates the results for the Electric Fund:

The Electric Fund finished FY2008 with a surplus of approximately $873,000. Non-fuel rate revenues were $4.8 million less than anticipated due to lower than projected consumption, primarily due to mild weather; however this was partially offset by other revenues, specifically off-system sales, being greater that anticipated. Non-fuel expenditures, including encumbrances of $1,339,000, were $203,000 less than anticipated. The General Fund transfer is in accordance with the budget. The surplus was transferred to the Electric Operating Reserve Fund in accordance with the Financing Policy.

GAS FUND
The following schedule illustrates the results for the Gas Fund:

The Gas Fund finished the year with a deficit of $1.6 million. Non-fuel rate revenues were $332,000 less than estimated due to lower than projected consumption caused by mild winter weather. Non-fuel expenditures were $701,000 greater than anticipated due to increased debt service costs associated with the variable rate Sunshine State loans. The General Fund transfer is in accordance with the budget. The deficit was funded via a transfer from the Gas RR&I Fund.

WATER FUND
The following schedule illustrates the results for the Water Fund:

The Water Fund finished the year with a deficit of $1.2 million. Revenues were within 2% of projections; however, expenditures, including year-end encumbrances of $39,000, were $1.8 million greater than anticipated, primarily due to capitalized labor being less than anticipated and adjustments to allocated accounts based upon an audit performed by the City Auditor. The General Fund transfer is in accordance with the budget. A transfer from the Water RR&I Fund funded the deficit.

SEWER FUND
The following schedule illustrates for the Sewer Fund:

The Sewer Fund finished the year with a deficit of $282,430. Rate revenues were within 1.5% of projections; however, expenditures, including encumbrances of $436,949, were $1.5 million greater than anticipated, primarily due to capitalized labor being less than anticipated. The General Fund transfer is in accordance with the budget. A transfer from the Sewer RR&I Fund funded the deficit.

STARMETRO FUND
The following schedule illustrates the results for the StarMetro Fund:

In the StarMetro Fund, the actual budgetary deficit was $298,971 more than estimated resulting in a total additional transfer from the General Fund of $1,062,723. Revenues were $236,144, 3.2%, above estimates, primarily as a result of changes to the contracts with FSU, FAMU, and TCC. Expenditures were $535,115, 3.5%, above estimates spread over various expenditure categories. As has been discussed during the FY09 budget process, the primary reasons for the increased General Fund transfer requirement related to personal service costs and fuel being greater than budgeted, $520,000 and $646,000, respectively.

AVIATION FUND
The following schedule illustrates the results for the Aviation Fund

In the Aviation Fund, the surplus before year-end adjustments was approximately $2.3 million, which is $478,000 greater than estimated. Revenues were within 2.3% of projections and expenditures were within 1.9% of projections. The budgetary surplus was allocated between the Airline Prepaid Fees Credit and the Airport RR&I Fund in accordance with the Airline Use and Lease Agreements.

SOLID WASTE FUND
The following schedule illustrates the results for the Solid Waste Fund

In the Solid Waste Fund, the deficit before year-end adjustments was $334,658, which was $1,425,195 less than anticipated. Revenues were within 2% of projections. Expenditures were $1.9 million below estimates primarily due to lower than projected landfill costs. A transfer from the Solid Waste Rate Stabilization Fund funded the deficit.

STORMWATER FUND
The following schedule illustrates the results for the Stormwater Fund:

In the Stormwater Fund, the budgetary surplus before year-end adjustments was $4,164,430 as compared to an estimated surplus of $3,321,044. Revenues were approximately 1.1% greater than estimated. Expenditures were 5.85% less than estimates spread over various expenditure categories. The surplus of $4,164,430 was transferred to the Stormwater RR&I Fund in accordance with the Financing Policy.

HILAMAN GOLF COURSE
The following schedule illustrates the results for the Hilaman Golf Course Fund:

In the Hilaman Golf Course Fund, the actual budgetary deficit was $80,618 greater than estimated. A transfer from the Golf Course RR&I Fund funded the deficit. Management continues to evaluate measures aimed at increasing play and reducing the need for a transfer from the General Fund. During FY2009 an employee committee has been formed for the purpose of making additional recommendations to the Commission and management.

CEMETERY FUND
The following schedule illustrates the results for the Cemetery Fund:

In the Cemetery Fund, the deficit before year-end adjustments was $22,455, compared to an estimated deficit of $51,777, which was funded via a transfer from the Perpetual Care Reserve. In order to reduce the need for future transfers from the Perpetual Care Reserve, rates for the sale of cemetery lots and the perpetual maintenance fee have been increased.

FIRE SERVICES FUND
The following schedule illustrates the results for the Fire Services Fund:

In the Fire Services Fund, the deficit before year-end adjustments was $1,637,355 compared to a projected deficit of $1,343,570. Revenues in the Fire Services Fund were $272,638, 1.9%, greater than estimated. Expenditures were within 1% of estimates. A transfer from the Deficiencies Fund funded the deficit.

BUILDING CODE ENFORCEMENT FUND
The following schedule illustrates the results for the Building Code Enforcement Fund:

In the Building Code Enforcement Fund, the deficit before year-end adjustments was $1,087,100 compared to a projected deficit of $1,462,743. Although building permit fees were raised effective November 1, 2007, revenues in the Building Code Enforcement Fund continue to be less than budgeted reflective of the statewide slowdown in the building industry, highlighted by new 1 & 2 family building permits reducing from 1036 in FY2006 to 693 in FY2007 to 327 in FY2008, a reduction of 53% between 2007 and 2008. An advance from the Deficiencies Fund, to be repaid when the economy rebounds, was used to fund the deficit.

CAPITAL BUDGET
Attachment B outlines the Capital Project Funds activities. The City's Capital Project Funds are presented with emphasis on undesignated fund balance as of September 30, 2008. The notes to Attachment B attempt to further expand on the information presented

SUMMARY
This report represents the City's final budgetary results for the fiscal year ended September 30, 2008. While it is common for a unit of local government to amend its budget to eliminate any encountered overages, it has been the City's practice to state the final operating budget as presented herein. This allows the City to better maintain a record of actual results.
This presentation is unaudited so that staff can make the presentation as early as possible as has been done in the past, and is subject to final audit results. Although the audited numbers may differ from those in the closeout report, we do not believe that there will be any material differences.

OPTIONS
1. Accept the close-out report as presented.
2. Do not accept close-out as presented and provide further direction.

FISCAL IMPACT
None.

RECOMMENDATION
Option 1 in order to expedite the closing of fiscal year 200.

ATTACHMENTS

Attachment A - Combined Schedule of Revenues, Expenditures, and Transfers - All Operating Funds for Fiscal Year ending September 30, 2008

Attachment B - Combined Schedules of Sources, Uses, and Changes in Fund Balance - All Capital Funds for Fiscal Year ending September 30, 2008