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FY2023

City of Tallahassee Annual Budget Report

Mayor and Commissioners,

It is my pleasure to submit this proposed balanced budget for Fiscal Year 2023 (FY23). As City Manager, I am optimistic for the future of our community and this organization through your leadership and direction. This proposed balanced budget reflects significant public involvement throughout the budget development process, clear City Commission direction on future priorities through the City’s Strategic Plan, and dedication to our Mission, Vision, and Organizational Values.

The City of Tallahassee continues to be a national leader in the delivery of municipal services with additional investments in our workforce while also adapting to inflationary market pressures and an increasingly competitive labor market. Sound leadership and a dedicated workforce have helped us achieve our strategic priorities. Our commitment to continued success is reflected in this proposed balanced budget as we enter the fourth year of our Five-Year Strategic Plan, including:

  1. Investing $227.7 million in our community with infrastructure, human services, and housing needs.
  2. Ensuring we are the employer of choice in an increasingly competitive labor market with a 5% across-the-board increase, with a $2,500 minimum for employees earning up to $50,000.
  3. Remaining an attractive community for families and businesses by maintaining a 4.1 millage rate for the seventh year in a row. 
  4. Delivering $53 million of cost avoidance to utility customers through effective fuel price management (Oct 2021- Jun 2022).
  5. Balancing the budget using federal, state, and local resources and coordinating with partners to maximize efficiency and effectiveness in the delivery of services.
  6. Funding new community priorities to address gun violence, support the Riley House Museum, provide startup funding for a Commission on the Status of Men and Boys, additional funding for the Commission on the Status of Women and Girls, and expanding the Tallahassee Emergency Assessment Mobile Unit (TEAM).

Our mission propels us to a bright future, channeling our focus toward the objectives in the Strategic Plan as informed by your priorities: economic development, impact on poverty, organizational effectiveness, public infrastructure, public safety, public trust, and quality of life. The FY23 budget provides the path to continued success, with collaboration and community involvement and the ability to address the challenges of inflation, affordable housing, mental health services, and public safety. 

IMPORTANT FEATURES OF THE BUDGET

Strategic Plan Achievements and Investments

Under the direction of the City Commission, we have met or exceeded key targets outlined in the Strategic Plan. This has been accomplished by, among other investments, increasing our annual investment in infrastructure and community needs with funding in capital projects, human services, and housing needs. Additional community needs and quality of life objectives have been addressed by reconnecting disconnected youth, incorporating mental health services in public safety response, investing in our neighborhoods, and increasing the inventory of affordable housing, among other accomplishments.

Within the last five years, we have invested approximately $4.3 million to engage with at-risk youth and now budget $1.3 million annually for these services. Since adopting the Strategic Plan three years ago, the TEMPO Program has engaged roughly 1,900 disconnected youth, which is 95% of the Strategic Plan target of 2,100 individuals.

We also remain steadfast in our commitment to funding human services programs for City residents through the Community Human Service Partnership (CHSP) program. The annual budget for CHSP in FY23 is $5.6 million, including $3.3 million from the City and $2.3 from the County. The City’s portion is an increase over $2.6 million from the previous cycle. During the last fiscal year, programs funded through CHSP served over 62,000 residents, employed 1,900 full-time individuals, and reported $200 million in economic activity.

The budget also supports our strategic plan goal of ensuring residents are well-connected by an efficient public transit network supported by well-connected roads, sidewalks, and public transit amenities. Major infrastructure investments in FY23 include the completion of Weems Road and its mixed-use trail, FAMU Way Phase 3, and the groundbreaking of new roadways, sidewalks, and bike lanes, including Railroad Avenue, Zillah Street PASS, and Richview Road PASS. We will also continue planning efforts for a Public Safety Campus, a planned Fire Station at Lake Bradford Road, and Northwood Mall property, all of which will be designed and developed with community input to ensure a long-term community needs are prioritized. The maintenance of existing roadways and sidewalks to enhance the City’s transit network is also a priority in the upcoming FY23 budget.  

Our affordable housing programs and initiatives include $21 million invested over the past five years, with an additional $9.7 million in American Relief Program funding in FY23. These programs have facilitated 626 house rehabilitations, 217 houses constructed, and 143 housing down payment assistance grants. With recent policy updates for multifamily development incentives, infill construction loans, a landlord risk mitigation fund, and an inclusionary housing ordinance, the City now has an additional 1,900 affordable housing units, in the planning and development process, compared to an average of 50-100 a year. Most existing inventory and new units in progress are targeted at households earning 60% or less of the area median income (AMI).

We have also continued to invest in people to maintain the City’s status as an employer of choice. The City maintained an excellent level of service during the COVID-19 pandemic thanks to the tireless efforts of our City team, our ability to innovate and drive process improvements and maintain our consistently strong financial management practices while increasing staff pay. Staff continues to advance the City Commission’s priorities in the face of inflationary pressures, slow revenue recovery, and increasing demand for existing and new services.

The City has faced new challenges and opportunities over the past few years and continues to deliver best-in-class service. Our team adapted continuously to find new ways to serve Tallahassee and remains committed to being the national leader in delivering public service.

Remaining an Employer of Choice

The City remains committed to investing in its greatest asset, its employees. However, the labor market is changing and becoming increasingly competitive. In recognition of these shifting market forces and the desire to attract and retain the best talent, staff proposes the recommended pay plan outlined below:

  1. A 5.0% across-the-board base pay increase, with a guaranteed minimum increase of $2,500 salary for employees earning up to $50,000, the latter impacting 41% of the workforce and providing up to an 8.0% raise for some.
  2. From FY21 to FY23, the City has reduced the average share of health plan costs for employees from 30% to 20%, and increased FlexBucks by 9% for an average of $1,153 more in take-home pay for those with family health plans.
  3. Scheduled pay increases for Police and Fire, as outlined in their respective Collective Bargaining Agreements.

As noted above, Florida’s labor market continues to recover from the impacts of the COVID-19 pandemic and react to changing market forces. According to the Florida Department of Economic Opportunity, private industry wages have increased 10.8% from March 2020 to May 2022. Labor force participation continues to recover compared to last year (59.1% versus 58.2%), and is nearing pre-pandemic labor force participation rates (59.4%), adding to hiring challenges felt by many employers. The local unemployment rate decreased to 2.5% in May 2022, down from 4.2% one year ago and below May 2019’s rate of 3.1%.In this increasingly competitive environment, the City is committed to managing inflationary pressures in order to attract and retain employees. 

Economic Development and Community Affordability

Our community remains an attractive home for both residents and businesses seeking affordable and efficient service delivery. Staff annually develops the Municipal Cost Comparison (MCC) to review the costs in taxes and fees for core services charged to residents and businesses in Tallahassee compared to 11 other cities in Florida. The comparison for FY23 shows that Tallahassee is the most affordable for residents and the most or second most affordable in each of the three business categories. The comparison cities were chosen based on similarities in size, percentage of taxable property, and scope of services provided to Tallahassee. The comparison uses property taxes, utility fees, and fire services fees for residents and also includes occupational licensing fees for businesses. A summary of the residential comparison is below:

Residential Municpal Cost Comparison Summary

In keeping property taxes affordable, Tallahassee has the lowest ad valorem rate (4.10 mills) compared to the 11 other municipalities (averaging 5.92 mills), 44% lower than the average. The City also has the lowest or second-lowest costs for all businesses across industries: barbershops, coffee shops, and offices.

The City of Tallahassee also is the most cost-effective option for electric ratepayers. While an inflationary energy market will have consequences for the General Fund regarding gasoline prices, the City’s electric and natural gas utilities have employed a proactive hedging strategy that has already prevented escalating electric bills for our customers and will continue to keep the price stable in the future. The City has hedged gas prices significantly lower than the current and projected market price.

This approach stabilizes prices and avoids significant costs for consumers amounting to roughly $53 million during the first three quarters of FY22. Additionally, current projections through 2024 indicate future cost savings of roughly $134 million. The average residential customer will pay $106 per month, compared to $154 per month on average for other Florida communities.

Furthermore, the City of Tallahassee is the only entity that does not charge an occupational license fee for its businesses and local economy. The City Commission repealed the fee in FY16, leading to an annual savings of at least $2 million for local businesses.

Financial Sustainability

As required by state law, we must adopt a balanced budget each year for all of its operating funds. The FY23 General Fund faces unique challenges from the accumulation of COVID-19 pandemic revenue loss, labor market pressures, increasing inflation, and continuous expansion of services. Despite these challenges for the past two years, the City has maintained and increased service delivery, preserved its workforce, and continued advancing toward the 2024 Strategic Plan goals.

The total proposed FY23 operating budget is $801 million. Of this total, the proposed General Fund budget is $183.7 million, holding the City’s proposed property tax rate constant at 4.1 mills. Our millage rate is the lowest of the 25 largest cities in Florida and has been unchanged for seven years. The proposed FY23 capital budget totals $198.3 million and maintains a sound investment in our utilities and community assets.  The total FY23 operating and capital budget is $999 million, 2.7% less than in FY22.

This proposed budget closed the previously anticipated $4.76 million General Fund deficit through several proposed changes:

  1. A 10% reduction in road resurfacing expenditures, from 50 to 45 lane miles, in FY23. This would reduce expenses by approximately $445,300 while maintaining a commitment to resurfacing more lane miles than in the years prior to 2018.
  2. A 20% reduction in General Fund sidewalk capital projects in FY23 will reduce expenditures by $120,400. This would not impact operations related to the maintenance of existing sidewalks or repairing trip hazards.
  3. Ad valorem tax revenues to the General Fund will increase by approximately $2.4 million.
  4. A proposed increase in the assumed vacancy factor for the General Fund in FY23, from 3% to 3.5%, will reduce budgeted personnel costs by approximately $540,275.
  5. American Rescue Plan Act (ARPA) funds have been used to support the public health response to the pandemic, replace lost revenues, and support the community in addressing the negative economic impacts of the pandemic. Accelerating the use of $794,187 ARPA funds from FY24 to FY23 will close the final gap.

The General Fund will likely remain under pressure in the out-years and will require close monitoring during the FY24 budget development cycle.

Market Adjustments to Fees and Rates

City Commission Policy 224 requires that the City fully recover the cost for programs and services benefiting specific users. On this basis, the City reviews fees to ensure they fund necessary operating costs, capital outlay, and facilities maintenance as appropriate and are reasonable compared to other potential service providers. Rates for the City’s utilities are reviewed on a rotating basis and ensure they can meet revenue requirements needed to fund operations and investment into the replacement and restoration of critical utility infrastructure.

The following fee and rate studies are underway:

  1. Building Inspection Fund – A review of building and permitting fees, which have not increased since 2009, is currently underway to address rates and ensure revenue requirements are met. Recommended changes to these fees will be presented before adopting the FY23 budget.
  2. Fire Fund – The City and County executed a fifth amendment to the Interlocal Agreement Regarding the Provision of Fire and Emergency Medical Services as adopted by the City Commission on September 22, 2021. The prior fire services fee study identified an increase in rates of 15% in FY22, followed by 1.5% in FY23-24. The interlocal agreement directed the Fire Department to conduct a joint fire services fee study and present recommendations during the FY24 budget development process.
  3. Gas Fund – A rate study for the gas utility is underway, and rate recommendations will be presented before adopting the FY23 budget. Projections confirm a base rate increase of 5% based on CPI as budgeted in FY23.
  4. Parks, Recreation, and Neighborhood Affairs – Consistent with City policy, recreation fees are reviewed annually to ensure full recovery of costs and that they are reasonable compared to other potential service providers. Fees may be waived or reduced for eligible participants, such as youth unable to participate in recreational activities due to their inability to pay or other demonstrated financial need.

Furthermore, staff is forecasting another General Fund deficit in FY24, even when including $6.2 million ARPA revenue loss funding. Additionally, all ARPA funds will be exhausted before FY25. These projections emphasize the need to take a long-term perspective for balancing the budget and maintaining the health of the General Fund in the out-years.

Funding New Commission Priorities

With your leadership, we have also increased our investment in public safety, neighborhoods, CHSP, and affordable housing from $15.4 million in FY19 to nearly $25.0 million planned in FY23. With the creation of positive life-enhancing youth programs like TEMPO (Tallahassee Engaged in Meaningful Productivity for Opportunity) and equipping our fire stations with life-saving technologies such as Advanced Life Support systems, we remain steadfast in our commitment to rising to new and existing public safety needs. Technology enhancements that support the collaboration and sharing of information among law enforcement agencies and citizen engagement/outreach programs will continue to help us promote safe neighborhoods.

While we continue to succeed with affordable municipal services and economic development, the City is advancing new approaches to respond to the challenges of mental health needs and gun violence. At its March 9, 2022 budget workshop, the City Commission directed staff to include $1 million per year for five years to address issues of gun violence in the community beginning in the FY23 budget. 

In response to the Mayor and City Commission's call for additional mental health services, the City proved the success of the Tallahassee Emergency Assessment Mobile Unit (TEAM) as a pilot program and is now adding a second unit for 18 hours a day response. The TEAMs will consist of a licensed mental health professional, a Crisis Intervention Team-trained TPD officer, and other City staff as required. In the pilot year, the unit actively responded to over 2,000 annual non-violent calls for service with individuals experiencing a mental health crisis.

Recently, the City pledged $140,000 of start-up funding into Leon County Sheriff’s Council on the Status of Men and Boys. In addition, the proposed budget recommends an additional $48,000 for the Commission on the Status of Women and Girls.

Survive and Thrive Advocacy Center (STAC) training for businesses to identify human trafficking is funded at $30,000 to match the Leon County Commissioners’ pledge to support the final startup costs needed for this program. Alternative funding approaches for COCA and St. Francis Wildlife Refuge are detailed in the corresponding July 13 agenda item.  

The City will continue to monitor these costs and benchmark them against comparable cities, working to keep them affordable for residents and businesses while maintaining a high quality of services. These principles guide budgetary planning. The City will continue prioritizing investment in targeted areas highlighted by the strategic plan and the City Commission. 

Recognition as a National Leader in Public Service Delivery

Our organization is recognized nationally for best practices in financial and performance management with continued awarding of the Certificate of Achievement for Excellence in Financial Reporting of the Combined Annual Financial Reports, and the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA), and recognition with a Certificate of Distinction in Performance Management by the International City/County Managers Association.

The national credit rating agencies have also reaffirmed our financial standing with AA bond ratings for our utilities and general government bonds, and with continued receipt of unmodified opinions on the City’s financial statements from our external auditors, the highest opinion that auditors can express on an organization’s financial statements.

Our organization was recognized as a Gold level LEED-certified City by the U.S. Green Building Council, an international rating system for communities to benchmark their sustainability and resilience performance relative to peers across the globe. The City excelled in areas such as enhancing and modernizing the City’s public infrastructure, facilitating the construction of affordable housing, leading in environmental stewardship, providing efficient and equitable public transit, and leading in utility service.

The City received the American Public Power Association’s top award for System Achievement for the second time joining a select few American Public Utilities. We have committed to numerous sustainability goals and efforts, including moving the community to 100% net clean, renewable energy by 2050, the development of a Clean Energy Integrated Resource Plan, electrification of City buses, and installation of publicly available fast-charging stations for electric vehicles.
Finally, the 2021 Water Quality Report shows that the quality of the City’s drinking water surpasses all stringent regulations established by the Florida Department of Environmental Protection (DEP), the U.S. Environmental Protection Agency (EPA), and the Florida Department of Health (DOH).

Conclusion

This Proposed FY23 Budget reflects the strategic priorities and leadership of the City Commission, the public input received during ongoing budget workshops and community engagement events, and provides clear direction for staff to address existing and future challenges as we approach our bicentennial in 2024. This input guides additional investment in public safety, human services, infrastructure, neighborhoods, affordable housing, mental health, and gun violence. The City of Tallahassee is a foundation of our community and remains committed to our mission, vision and values, and focused on achieving the targets outlined in our five-year Strategic Plan. With its dedicated staff, community partners, Commission leadership and clear vision, the FY23 budget is presented for your consideration.

Sincerely,
Reese Goad Signature
Reese Goad
City Manager

 

FY2023 Budget Overview 1.0

Introduction and Overview

 

1.1 Mission

Images of the City of Tallahassee in a collage

Through workshops, surveys, and commission retreats the City of Tallahassee has developed the following vision, mission, critical success factors. These are the basis for the performance measurement process that each department has implemented.

Mission:
To be the national leader in the delivery of public service.

Vision:
A creative capital city that supports a strong community with vibrant neighborhoods; an innovative economic and educational hub serving a diverse and passionate people, protecting our natural resources and preserving our unique character.

Values:
• Honor public trust through ethical behavior.
• Provide exceptional citizen service.
• Lead with integrity at every level.
• Collaborate to reach common goals.
• Invest in employee excellence.
• Promote equity and celebrate diversity.

 

1.2 Strategic Plan

In preparation for its bicentennial anniversary in 2024, the City developed a comprehensive 5-year strategic plan. The plan was developed with extensive citizen engagement, both in-person and online, direction from the City Commission, and the integration of more than 40 departmental and master plans. While the budget directs resources for accomplishing one year’s worth of goals and activities, this plan represents the City’s direction through 2024.

To read the complete 2020-2024 Strategic Plan and view the City’s progress on the goals and objectives visit Talgov.com/PerformanceDashboard. You can also visit Talgov.com/COTNews/YearInReview to read about the City’s accomplishments during the last fiscal year.

To achieve the City’s vision, the City Commission identified seven priority areas to guide service efforts. Each priority area, with its corresponding goals, obje ctives, and targets, is outlined below.

View 2022 Year in Review to see progress on the City's priority areas.

Objectives & Priorities

This strategic plan sets the course for the City of Tallahassee to achieve a specific set of priorities, goals, and objectives by 2024. It does so within the context of the community’s longterm Comprehensive Plan and shapes fiscal policy set forth within future annual budget documents.

City Priorities

To achieve our vision, the City Commission has identified seven priority areas to guide service efforts over the next five years.

 

View Full Strategic Plan Dashboard Economic Development Impact on Poverty Organizational Effectiveness Public Infrastructure - City Utilities Public Infrastructure - Mobility Public Safety Public Trust Quality of Life

 

 

1.3 Budget Overview

Budget Overview Header - Flower pot with Possibilities

Short Term Factors
The City's FY23 Budget totals more than $1 billion, which includes $826.8 million for operating expenses and $205.4 million for capital investment.  It was developed through a year-round, multi-stage process involving public participation, City Commission input, and a focus on the priorities outlined in the City's Strategic Plan.

For the FY23 Budget, significant factors in the short term that impact services and citizens include:

  1. Ensuring we are the employer of choice in an increasingly competitive labor market with a 5% across-the-board increase, with a $2,500 minimum for employees earning up to $50,000.
  2. Remaining an attractive community for families and businesses by maintaining a 4.1 millage rate for the last seven years.
  3. Funding programs to combat Gun Violence in the City with $1 million in new funding per year.
  4. Delivering $53 million of cost avoidance to utility customers through effective fuel price management (Oct 2021- Jun 2022).
  5. Balancing the budget using federal, state, and local resources and coordinating with partners to maximize efficiency and effectiveness in the delivery of services.

The FY23 Budget reflects the City's commitment to respond to these immediate needs in the short term.
Significant economic factors impacting the FY23 budget include:

  1. A historic increase in inflation, rising from an average of 3.3% in FY21 to 8.5% in July 2022.
  2. Increasing costs for labor as the job market pressures the City to increase pay to recruit and retain employees.
  3. Rising costs for fuel, contracts, supplies, and equipment due to inflation and the slow post-pandemic recovery of the supply of goods and the supply chain.

The City's continues to lead the industry in the delivery of high-quality services at an affordable cost to the community as addressed in the Strategic Plan.

Ensuring we are an employer of choice.
In addition to funding pay and benefits to retain and recruit talent, the Strategic Plan includes objectives that support our workforce.

Maintaining a 4.1 millage rate for the seventh year in a row.

After a reduction in FY17 from 4.2 to 4.1 mills, the City has maintained its millage rate for seven consecutive years. Tallahassee currently has the lowest rate of the 20 largest cities in Florida despite the fact that 45% of its property value is exempt from property taxes, compared to 30% statewide.

Balancing the budget using federal, state, and local resources and coordinating with partners to maximize efficiency and effectiveness in the delivery of services.

Through the combined dedication and effort of all employees, the City has controlled costs while still providing the high-quality services the community expects. 

Funding programs to combat Gun Violence in the City with $1 million in new funding per year.

Delivering $53 million of cost avoidance to utility customers through effective fuel price management (Oct 2021- Jun 2022).

 

The City continues to move forward with programs and initiatives that address critical needs and support strategic goals.  Within this framework, priorities to further support Strategic Plan goals were funded in the FY23 Budget:

  1. While we continue to succeed with affordable municipal services and economic development, the City is advancing new approaches to respond to the challenges of mental health needs and gun violence.  At its March 9, 2022, budget workshop, the City Commission directed staff to include $1 million per year for five years to address issues of gun violence in the community beginning in the FY23 budget.
  2. Investment in public safety, neighborhoods, CHSP, and affordable housing increased from $15.4 million in FY19 to nearly $25.0 million planned in FY23.
  3. In response to the Mayor and City Commission's call for additional mental health services, the City proved the success of the Tallahassee Emergency Assessment Mobile Unit (TEAM) as a pilot program and is now adding a second unit for 18 hours a day response.  The TEAMs will consist of a licensed mental health professional, a Crisis Intervention Team-trained TPD officer, and other City staff as required.  In the pilot year, the unit actively responded to over 2,000 annual non-violent calls for service with individuals experiencing a mental health crisis.
  4. Technology enhancements that support the collaboration and sharing of information among law enforcement agencies.
  5. Ongoing investment in positive life-enhancing youth programs like TEMPO (Tallahassee Engaged in Meaningful Productivity for Opportunity).
  6. Equipping our fire stations with life-saving technologies such as Advanced Life Support systems.
  7. Citizen engagement/outreach programs to help us promote safe neighborhoods.
  8. A pledge of $140,000 of startup funding into Leon County Sheriff's Council on the Status of Men and Boys.  In addition, the proposed budget recommends an additional $48,000 for the Commission on the Status of Women and Girls.
  9. Survive and Thrive Advocacy Center (STAC) training for businesses to identify human trafficking is funded at $30,000 to match the Leon County Commissioners' pledge to support the final startup costs needed for this program.

The City will continue to monitor these costs and benchmark them against comparable cities, working to keep them affordable for residents and businesses while maintaining a high quality of services.  These principles guide budgetary planning.  The City will continue prioritizing investment in targeted areas highlighted by the strategic plan and the City Commission.

 

 

 

1.4 Millage Rate

The millage rate is the amount per $1,000 used to calculate ad valorem taxes (property taxes). The rate is multiplied by the total taxable value to determine the property taxes due.

The City of Tallahassee has maintained a millage rate of 4.1 for seven years, the lowest among the 20 largest cities in Florida. It is also the lowest of the 12 cities in the Municipal Cost Comparison, an annual study of costs of living and doing business in municipalities across Florida. The chosen cities share similarities to Tallahassee in population, range of services provided, and rate of taxable property. Below is Tallahassee compared with four cities in the comparison, including Gainesville and Lakeland.

A low millage rate keeps the cost of homeownership affordable while still providing high-quality services.

2023 Millage Rates - Tallahassee: 4.1000, Fort Lauderdale: 4.4026, Gainesville: 5.500, Lakeland: 5.4323, West Palm Beach: 8.2777

 

 

1.5 Municipal Cost Comparison

When measuring costs to citizens, the City compares itself to a group of eleven cities that share similar demographics, services provided, and square miles served. The Municipal Cost Comparison below contrasts what citizens, both residential and commercial, pay for municipal services.

City utilities undergo regular fee studies to ensure that costs for services are recovered and paid for by those that benefit. The municipal cost comparison, however, demonstrates the competitiveness of rates compared to peer cities across the state. The City ranks as one of the most affordable to citizens year after year.

 

 

 

1.6 Population & Other Community Statistics

Tallahassee experiences consistent population growth. The City plans for a continued increase of its services. When making infrastructure decisions, the organization considers not just today’s demands but also tomorrow’s needs.

To view other statistics and trends that formulate the budget and plans for the City, please click here to read the Supplemental Demographic and Economic Information section.

 

 

 

 

FY2023 BUDGET OVERVIEW 2.0

STRUCTURE, POLICY AND PROCESS

 

2.1 Organizational Chart


Download the Organizational Chart

 

 

2.2 Fund Descriptions & Structures

A fund is an accounting entity that documents activities.  Fund accounting prioritizes accountability over profitability.  Separate funds ensure revenues are appropriately related to expenditures.

Government funds support core city services where those paying indirectly benefit from the services.  Enterprise funds are self-supported by user fees and charges.  These operate similarly to private businesses.

Below are summaries of appropriated funds.

 

General Fund

This fund supports many core city services, including police, parks and recreation, road maintenance, housing initiatives, economic development, land use, environmental regulation, and animal services.  The general government also provides an operating subsidy to Star Metro, the City's transit system.

Fund Type
Government

Surplus
City policy determines the use of any operating fund surplus at year-end and a target level for the deficiencies reserve.  Any surplus at year-end is first added to the deficiencies reserve until the amount reaches the target.  After fully funding the deficiencies fund, any remaining balance supports the subsequent year’s operating budget, up to a maximum of 5% of general government operating expenditures, and to buy down debt-financed capital improvement projects.

General Fund Transfer
$3.8 million in new funding is budgeted to support projects in FY23.

Operating Reserve
The FY23 revenue budget does not include transfers from General Fund Operating Reserves.

Other
Deficiencies Reserve: If the subsequent fiscal year ends with an operating deficit due to unforeseen circumstances, up to 5% of FY23 year-end surpluses will be available from the Deficiencies reserve as needed.
Fleet Reserve: The FY23 contribution is $2 million
RR&I: Undesignated balance set at a maximum of 3% of general government capital projects.

 

The Growth Management Department is responsible for enforcing the City’s building codes through the review of building plans, permitting, and the inspection process.  Specific actions include ensuring that planned construction complies with applicable codes, authorizing utility connections and issuing certificates of occupancy, providing centralized intake and coordination of all permit applications, administering contractor licensing regulations, and enforcing the rooming house ordinance.

Fund Type
Enterprise

Surplus
To the extent available and appropriable, all year-end surpluses will be retained within the fund and made available for operating expenses and capital projects.

Operating Reserve
The FY23 revenue budget does not include transfers from operating reserves.

Other
Not applicable.

 

Established in 1902, the Tallahassee Fire Department (TFD) is a municipal fire department that provides fire suppression and emergency medical services in the City and the unincorporated areas of Leon County, Florida.  The department protects lives, property, and the environment from hazardous conditions threatening our community.  This mission is accomplished by providing prevention and protective services specific to the incident need.

Fund Type
Enterprise

Surplus
Retained for fire operating and capital costs.

General Fund Transfer
No transfer.

Operating Reserve
No reserve.

 

Other
Not applicable.

 

The Electric Utility serves over 128,000 customers in a 221-square-mile service territory.  It is the fourth-largest municipal electric utility in Florida and the 27th-largest of over 2,000 municipal systems in the United States.  The utility comprises six significant divisions: Finance and Administration, Power Delivery, Energy Supply, System Operations, System Compliance, and System Integrated Planning.  The Electric Utility develops a 10-year sales forecast annually to use in the annual budget process.

Fund Type
Enterprise

Surplus
Operating fund balance after General Fund transfer minus bond reserves used to fully fund the operating reserve, with the balance designated for electric system capital projects.

General Fund Transfer
The transfer is based on CPI.  The transfer for FY23 is $35.1 million.

Operating Reserve
The operating reserve comprises four subcomponents, with the primary purpose of providing working capital.  The working capital component is targeted to having a balance of 60 to 90 days of operating expenses.  The other three components are fuel risk management, emergency reserve, and rate stabilization.

Other
RR&I: Transfer budgeted at a level equivalent to depreciation expense as provided in the Comprehensive Annual Financial Report (CAFR). 

 

The City of Tallahassee's Natural Gas Utility has provided clean, safe, economical, and reliable natural gas to residents and businesses in a growing service area for over 60 years.  The utility safely provides natural gas energy through hundreds of miles of underground gas mains, which serve over 34,000 customers in the Leon, Gadsden, and Wakulla areas.  The highly trained staff works to ensure the distribution system's integrity and dependability and assist customers with energy conservation and cost savings through natural gas use.

Fund Type                                                                                                                
Enterprise

Surplus
Designated to fund the operating reserve fully and, after that, to fund gas system capital projects

General Fund Transfer
The transfer is based on CPI.  The transfer for FY23 is $3.4 million.

Operating Reserve
Funded at 25% of the previous year’s General Fund transfer and used to meet General Fund transfer, if required.

Other
RR&I: Transfer budgeted at a level equivalent to depreciation expense as provided in the applicable rate study.

 

The City’s water system currently services 88,000 connections with approximately 9 billion gallons of water per year.  This around-the-clock operation employs 27 water wells and treatment facilities, eight elevated storage tanks, 7,200 fire hydrants, and over 1,200 miles of water distribution piping.

Fund Type
Enterprise

Surplus
Designated to fund the operating reserve fully and, after that, to fund water system capital projects.

General Fund Transfer
The transfer is based on CPI.  The transfer for FY23 is $4.1 million.

Operating Reserve
Funded at 25% of the previous year’s General Fund transfer and used to meet General Fund transfer, if required.

Other
RR&I: Transfer budgeted at a level equivalent to depreciation expense as provided in the Comprehensive Annual Financial Report (CAFR).

 

The City of Tallahassee's Sewer Utility is responsible for collecting, treating, and disposing of wastewater and treating commercially pumped sewage.  Wastewater is treated in the City’s Advanced Wastewater Treatment plant to a standard that exceeds regulatory requirements as part of the City’s commitment to protecting the environment.  The system services over 76,000 service points. The City's wastewater operation treats an average of 17.5 million gallons per day, transporting raw sewage from homes and businesses in Tallahassee to the ThomasP. Smith (TPS) Advanced Water Reclamation Facility. This facility provides wastewater treatment that reduces total nitrogen in treated wastewater to well below regulatory standards in order to protect Wakulla Springs.

Fund Type
Enterprise

Surplus
Designated to fund the operating reserve fully and, after that, to fund sewer system capital projects.

General Fund Transfer
The transfer is based on CPI.  The transfer for FY23 is $5.65 million.

Operating Reserve
Funded at 25% of the prior year’s General Fund.  Used to meet General Fund transfer, if required.

Other
RR&I: Transfer budgeted at a level equivalent to depreciation expense as provided in the Comprehensive Annual Financial Report (CAFR).

 

The Aviation Fund supports operations at the Tallahassee International Airport (TLH), including the Aviation Department’s six divisions and the Airport Police and Airport Parking divisions. The Fund also contributes to the Fire Fund for the Tallahassee Fire Department’s operations at the Airport.

The Airport hosts three airlines (American Airlines, Delta Air Lines, and Silver Airways) that deliver non-stop service to seven destinations and provide amenities to customers, including valet parking, long- and short-term parking, a cell phone parking lot, rental car options, a public waiting area, business center, dining options, and more.  As part of the City’s five-year strategic plan, Tallahassee International Airport will be constructing an International Passenger Processing Facility, with a five-year goal of making a $1 billion annual economic impact.

Fund Type
Enterprise

Surplus
Retained within the fund and allocated according to the airline use agreement.

General Fund Transfer
No transfer to General Fund. Full recovery of cost.

Operating Reserve
A minimum of 1/12th of the Airport's operating and maintenance budget is designated for unanticipated non-recurring expenditures.

Other
RR&I: Not applicable.

 

StarMetro, the public transit service for the City of Tallahassee, operates 14 weekday cross-town routes, including university service for Florida State University (FSU) and student ridership programs for Florida Agricultural & Mechanical University (FAMU), Tallahassee Community College (TCC) and K-12 students in Leon County.

The Fixed Route and Para-transit department provides accessible, equitable, and efficient transit services to citizens of Tallahassee, visitors, and commuters. Transit services are provided 363 days a year and assist in emergency situations as needed.

Fund Type
Enterprise

Surplus
Retained within the fund for operating expenses and capital projects.

General Fund Transfer
Transfers in from the General Fund support StarMetro operational deficits, when necessary.

Operating Reserve
No Reserve.

Other
RR&I: Not applicable.

 

The Solid Waste Fund provides garbage, recyclable materials, bulk, and yard waste collection for all residential customers citywide, and garbage and recyclable materials collections for commercial customers.  Currently, the City serves 51,572 residential, 25,308 commercial, and 1,835 commercial recycling service points.  Services include:

  1. residential bi-weekly curbside collection of bulky items, yard waste, electronics, and white goods,
  2. dumpster services for commercial customers collected by front-end loading trucks at night, up to six times per week,
  3. commercial container service with roll-off or hook trucks up to six times per week,
  4. commercial recycling up to five days per week, as well as other enhanced services, and,
  5. dead animal removal.

Fund Type
Enterprise

Surplus
Retained for rate stabilization reserve.

General Fund Transfer
Each year the transfer is increased by CPI.  The transfer for FY23 is $2.2 million.

Operating Reserve
No Reserve.

Other
RR&I: Not applicable.

 

The Stormwater Fund manages and develops infrastructure for drainage, flood prevention, and retention of stormwater run-off to prevent pollutants from entering the aquifer.  Work includes capital project oversight, maintenance of drainage infrastructure such as retention ponds and drainage outfalls, monitoring of lakes and groundwater, and raising public awareness of the environmental impacts of pollution, such as the Think About Personal Pollution (TAPP) program. The Stormwater Utility serves 77,000 residential customers and 6,000 non- residential customers through operational activities and the design and construction of drainage facilities infrastructure. This includes the maintenance of drainage facilities and ponds throughout the City.

Fund Type
Enterprise

Surplus
Retained for stormwater system capital projects.

General Fund Transfer
The transfer to the General Fund represents administrative cost sharing only.

Operating Reserve
No Reserve.

Other
RR&I: Maximum of 5% of capital projects funding sources, with a minimum level of 3%.

 

The Golf Fund supports Hilaman Golf Course, which offers a community-wide golf experience through daily rounds, driving range use, charity events, tournaments, and more.  Hilaman also has a Pro Shop, restaurant, and outdoor deck area that provide a well-rounded experience. The course is open daily from 7:30 a.m. until dark, and course operations are led by a General Manager and two full-time staff members: a foreman and a course maintenance supervisor. In addition, Hilaman has over two dozen part-time employees who help with various day-to-day operations.

Fund Type
Enterprise

Surplus
Retained for Golf operating and capital costs.

General Fund Transfer
No transfer.

Operating Reserve
No reserve.

Other
Not applicable.

 

The City Commission adopted an ordinance on September 10, 1986, establishing the Cemetery Perpetual Care Trust Fund (PCTF) to maintain and operate the City cemeteries.  Proceeds from this trust are transferred annually to support operations within the Cemetery Division.  The City of Tallahassee owns and maintains five cemeteries totaling 133 acres.  The City also provides maintenance services for the historic Plantation Cemetery.

Fund Type
Trust

Surplus
Retained for cemetery operating and capital costs.

General Fund Transfer
No transfer.

Operating Reserve
No reserve.

Other
Not applicable.

 


View full schedule of major and nonmajor funds.

View matrix of the relationship between departments and funds.


 

2.3 Basis of Budgeting

Budgets for general operation funds (General, StarMetro, and Golf Course Funds) are prepared on a modified accrual basis. The obligations for these funds (i.e., outstanding purchase orders) are considered expenditures, but revenues are recognized only when they are measurable and available. At the end of the fiscal year, open encumbrances are reported as reservations of fund balance. The operating budget does not include expenses for depreciation.

The budgets for the City’s utilities (Electric and Underground) and other enterprise funds (Aviation, Building Inspection, Solid Waste, Fire, and Cemeteries) are budgeted on a full accrual basis. Expenditures are recognized when a commitment is made (e.g., through a purchase order). Revenues are also recognized when they are obligated to the City, such as when utilities distribute bills.

The basis of budgeting is the same as the basis of accounting used in audited financial statements. Budget and accounting procedures are subject to modifications to comply with generally accepted accounting principles (GAAP) and the Governmental Accounting Standards Board (GASB) standards.

 

 

2.4 Internal Policies

There are several statutory requirements, internal policies, and other provisions that direct the development of the budget and its implementation throughout the year.

 

Florida Statutes, Chapter 166 – This statute authorizes municipalities to levy taxes, issue licenses, and set user fees to raise money necessary to conduct municipal government activities. This chapter also requires that local governments adopt a balanced budget. The tentative balanced budget must be posted on the municipality’s official website at least 2 days before the budget hearing, held pursuant to s. 200.065 or other law, to consider such budget. The final adopted balanced budget must be posted on the municipality’s official website within 30 days after adoption.

 

 

Comprehensive Plan – The Tallahassee-Leon County 2010 Comprehensive Plan was originally adopted by ordinance in FY 1990 and is updated with biannual amendment cycles. The Plan includes capital improvements, transportation, historic preservation, utilities, recreation, and other elements which provide a framework for allocating budget resources. The Capital Projects Summary consists of a listing of capital projects that address Comprehensive Plan initiatives by eliminating deficit levels of services or by maintaining existing levels of service.

Financing Policy, No. 224 Commission Policies – The financing policy establishes guidelines for the distribution of year-end surpluses, transfers from the utilities to the General Fund, types and amounts of operating reserves, and funding for capital projects from undesignated fund balance year-end revenues. The policy also provides for full recovery of cost for enterprise funds, limits non-utility fee increases to a maximum of 20% per year unless otherwise approved by the City Commission, and allows discount fees for recreational programs for youth, seniors, and disabled citizens. The “Finance Policy Summary” chart shows the policy's requirements as applied to each fund.

Risk Management Policy/Self-Insurance, No. 214 Commission Policies – This policy creates an internal service fund for payment of anticipated claims and judgments for coverage areas defined in the policy. In addition, a special Insurance Reserve Fund is established and funded to meet unanticipated losses from catastrophic events or claims in excess of the Risk Management Fund. This reserve is set at 150% of the average claims for the past five years or $3,000,000, whichever is greater.

Capital Project Management, No. 218 Commission Policies – This policy provides for the preparation of an annual capital budget and a five-year capital improvement plan. The policy also defines the roles and responsibilities of city departments and management regarding contracts, supplemental appropriations, expenditures, and project administration. The use of capital project overhead charges as an operating budget funding source also is established by this policy.

Local Option Sales Tax Management, No. 232 Commission Policies – This policy establishes the authority to provide advance funding for local Florida Department of Transportation (FDOT) projects for any project or project phase included in the FDOT five-year work plan. It allows for advance funding without an agreement for repayment after conducting a public hearing. The policy also authorizes using short-term debt to cover cash flow shortages that may result from this practice.

Debt Management Policy, No. 238 Commission Policies – The debt management policy, along with an analysis of the city’s compliance with the policy, is included in the capital budget summary and the capital improvement plan. Section 104 of the City Charter also specifies that general obligation debt will not exceed 20% of the assessed taxable valuation. Florida Statutes require that general obligation bonds be approved by referendum. The city currently does not have any general obligation bonds.

Vehicle Replacement Reserves – Funding for vehicle replacement is included annually in the capital budget.  Vehicle replacement charges for a proportionate share of these costs are allocated based on equipment usage.

 

Bond Covenants – Before 1998, provisions of Bond Resolutions required that a minimum of 5% of prior year gross revenues be budgeted annually for Renewals, Replacements, and Improvements (RR&I) for system improvements in the utility systems. Covenants for the Energy System (electric and gas) bonds issued after 1998 do not specify an explicit amount or methodology but require a transfer to an RR&I fund.

Union Agreements – Currently, unions represent 634 authorized positions. A total of 356 positions are subject to terms and conditions of the collective bargaining agreement with the Big Bend Chapter of the Florida Police Benevolent Association, Inc. (PBA), and 278 positions are subject to terms and conditions of the collective bargaining agreement with the International Association of Firefighters (IAFF). Union agreements are generally negotiated every three years. FY23 is the last year of the current contract for all bargaining units.

Utility Rate Studies – Rate studies are prepared for each utility enterprise operation (electric and underground utilities) every three to five years on a rotating basis. Revenue projections are prepared using historical weather patterns and other growth factors.

Assessment and Fee Reviews – Fees and assessments are periodically reviewed to ensure recovery of costs to provide certain services. A cost of services study for the animal shelter was conducted in 2006, which recommended a plan to recover at least 50% of the operating costs through animal licensing fees, but this has not been implemented. The City Commission also increased building inspection fees in August 2009 to recover all eligible building inspection costs. Rates for electricity, underground utilities, and solid waste are set by ordinances that provide for annual increases based on the CPI.

 

 

2.5 Budget Calendar

Important Dates

December 8, 2021

Approval of Fiscal Year 2021 Budgetary Closeout
Read the agenda item
Commission Discussion


January 12, 2022

City Commission Retreat
Read the agenda item
Commission Discussion


March 9, 2022

Budget Workshop FY2022 First Quarter Update
Read the agenda item
Commission Discussion


May 18, 2022

FY22 Second Quarter Update and FY23-FY27 Capital Improvement Plan Update
Read the agenda item
Commission Discussion


July 13, 2022

FY23 Budget Plan; Approval of Tentative Millage; FY22 Third Quarter Update
Read the agenda item
Commission Discussion


September 07, 2022

Introduction of Ordinance No. 22-O-24 Providing for an Annual CPI Increase to Building Inspection Fees; Consideration of Request for Additional Funding by COCA; First of two public hearings on the FY23 Budget Plan
Read the agenda item
Commission Discussion


September 21, 2022

Final Public Hearing on the FY23 Budget Plan and FY23 CHSP funding allocations; First and Only Public Hearing on Ordinance 22-O-19; First and Only Public Hearing on Ordinance No. 22-O-24
Read the agenda item
Commission Discussion


 

 

 

2.6 Budget Process

The budget process involves collaboration and coordination among city departments, Resource Management, executive leadership, the City Commission, and the citizens of Tallahassee. It results in annual operating budgets, capital budgets, and a five-year financial and capital improvement plan for the General Fund and enterprise funds. While the fiscal year begins on October 1st, the budget is a continuous cycle.

Budget Process circle graph

 

The City holds several budget workshops throughout the year. These serve the dual purpose of updating for the current fiscal year and the next budget cycle. Workshops are less formal city commission meetings that do not include a litany of items for the commissioners to address. Instead, the workshop allows for a focused discussion on the topic.

At the first quarter workshop, Resource Management reports on the early status of its funds to the Commission for the current budget cycle. It also presents some initial assumptions to work toward for the next one. This includes proposing an initial millage rate and employee raises, benefits, and other items.

At the second quarter workshop, assumptions are reaffirmed, and priorities are addressed. Issues with the current year’s funding can be addressed while taking a stronger look at the upcoming year.

Resource Management presents a proposed budget for the following fiscal year at the third quarter workshop. These include most of the capital projects, priorities, and changes. Any significant issues for the current budget year are also addressed at this workshop.

 

The City maintains a “hold the line” philosophy when budgeting for departments’ operating costs. Budgets for things such as office supplies or contracts are not increased every year. Without automatic increases in budgets, staff innovate for cost savings annually. Departments evaluate procedures to be more efficient. Maintaining cost levels helps the City to keep its millage rate the same.

Hold the Line counters a classic budgeting issue known as “use it or lose it.” In older budgeting techniques, departments are incentivized to spend their budget entirely and use their resource depletion to justify maintaining their budget levels. Sometimes the spending would persuade for even higher budgets the following year. With Hold the Line, Resource Management assures departments that their budget levels are safe. This approach leads to less spending overall as departments do not spend money merely to defend their allocations. get year are also addressed at this workshop.

 

At the 1st quarter budget workshop, staff present initial assumptions to the City Commission for the next budget year. These include two major items: millage rate and staff pay raises.

For the City to be a leader in public service, it must recruit, train, and retain the best people. The City has a history of regular increases for staff ranging from two to three percent. This accommodates the cost of living increases, but the commitment can attract the best employees to the organization.

A diversity of revenue sources blesses the City both through a purposeful strategy and as a matter of history. This allows the City to keep its millage rate very low compared to other governments, and it has avoided increasing millage for many years.

 

The public is encouraged to provide input anytime. City Commission meetings, budget workshops, and commissioner or leadership meetings are all available to citizens. Two statutorily required public hearings on the budget are also held in September each year to solicit public input. Building upon the goal of increased transparency, the City’s OpenGov platform allows citizen review of budget information down to the account level and actual expenditures and transactions throughout the year.

 

Departments are responsible for developing their respective budget requests with support from Resource Management. City Commission budget workshops are held throughout the year to discuss policy issues and the long-term ramifications of budgetary decisions. The City Commission adopts a tentative millage rate for assessing ad valorem taxes in early July, as state statutes require. The final budget and the millage rate are adopted by resolution during the month of September, following two statutorily required public hearings.

The City’s budget is appropriated at the fund level. Revenues are budgeted at the fund level only, while Department expense budgets are contained within one or more cost centers. There are currently nearly two hundred cost centers across all departments.

 

Budgetary control is maintained at the department level, with Resource Management providing support. In accordance with the city’s budget transfer policy, departments can amend budgets in various ways depending on the type of transfer being considered.

Any budgetary amendment within the department’s appropriated budget and within the same fund can be authorized by the City Manager. Transfers between departments that cross funds or increase appropriations are made at the request of the City Manager and must be approved by the City Commission.

Budgetary amendments between divisions and within the same fund may be initiated at the department head's discretion, except for transfers affecting specific categories such as personnel. Requests for amendments to the line item exceptions are reviewed by Financial Management and approved by the City Manager or respective appointed official for transfers affecting the offices of the City Attorney, Inspector General, or City Treasurer-Clerk.

Since implementing the PeopleSoft financial system, budgetary control has moved from the line-item level to the major budget category. In classic line-item budgeting, departments cannot spend more than a certain amount on very specific categories. This tended to limit flexibility, and governments could not adapt to problems that arose throughout the year. Now, departments may over-expend line items provided balances are available in the respective major budget category. This allows for greater managerial flexibility. Department heads can respond to citizens’ needs without dense bureaucratic processes.

 

 

 

FY2023 BUDGET OVERVIEW 3.0

FINANCIAL SUMMARIES

Five-Year Fund Proformas – Revenues and Expenses by Fund

By clicking on the fund titles below, a five-year proforma of revenues and expenditures will display for each. The proforma includes the budget for the prior year, FY22, the adopted budget for FY23, and projections for the remaining years, FY24 – FY27. The five-year forecast is a means of facilitating long-range and financial planning. Below each proforma is a summary of FY23 budget highlights and a link to see an additional view of the fund in OpenGov.

 

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY28 reflect revenue projections and current expenditure levels. The latter years of the pro forma indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  1. Based on taxable value, the property tax revenue for FY23 increased by $4.8 million, or 9.3%.   For existing property owners with a homestead exemption, assessed valuations are lower than market value, as the Save Our Homes amendment caps increases for the homesteaded property at 3% regardless of any increase in assessed valuation by the Property Appraiser’s office. At $56.5 million, property taxes provide 31% of General Fund Revenues.
  1. Contributions from utilities increased with CPI by 8.5% for FY23 based on City policy.   At $50.5 million, contributions make up 27.4% of General Fund revenues, adding $4 million in revenues.
  1. In FY23, the budget includes $5.1 million in American Recovery Plan Act revenue claims.
  1. In FY23, 1.00 new FTE is funded for the Riley House. For the Animal Services Center, one new FTE is funded, and two are converted from Other Personnel Services (OPS) to permanent FTEs.

FY24-27

  1. Future revenue projections remain conservative as the City keeps the millage rate low to encourage growth and investment. Other options for revenue generation are limited by statute, and existing, significant revenue sources are sensitive to unforeseen economic impacts.
  2. Personnel costs for future years reflect a 3.6% increase through FY27. However, due to inflation and a tight labor market, the City expects to increase this estimate to remain an employer of choice.
  3. Operating costs from FY24 to FY27 are escalated by 1.5% overall.
  4. Transfer estimates vary primarily based on expected changes in existing debt service payments. Debt Service from FY24 through FY27 will increase based on the timing of borrowing for large projects.
  5. Estimates for FY24-FY27 do not include estimated increases in the number of positions in the fund—departments review service needs and staff levels during the annual budget development process.

The General Fund for FY23 totals $184 million and includes the Tallahassee Police Department, Parks & Recreation, Public Infrastructure (roads and street construction and maintenance), Community Housing and Human Services, and other non-utility services. The fund also contributes to StarMetro and the Consolidated Dispatch Agency, transfers the ad valorem share due to the community redevelopment agencies, and transfers funding for capital projects and debt service.

 

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY27 generally reflect revenue projections and current expenditure levels escalated by a CPI factor and indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  1. The fund is self-sustaining, with fees from increased activities in a given year expected to support the fund over several years of service. Fees were increased effective October 1, 2022, to ensure full cost recovery for FY23. At the same time, an annual rate increase tied to CPI effective each year on October 1 was approved for consistency with rate policy across other enterprise funds and to provide incremental revenue increases as costs increase over time.

FY24-27

  1. Revenues are projected at an escalator of 1.5% in later years, although revenues tend to vary significantly over time, and demand is difficult to predict.
  2. Personnel costs escalated by less than 4% through FY27, however inflation and a tight labor market may require higher pay increases to remain an employer of choice..
  3. Operating costs are escalating by 1.5% overall.

The Building Inspection Division operates as a separate enterprise fund established to account for all activities related to enforcing the City’s building inspection regulations. The fund provides for the enforcement and implementation of the Florida Building Code. The Building Inspection Division is recognized locally as delivering a high level of service, responding to inspection requests, and providing timely plan reviews.

 

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY27 generally reflect revenue projections and current expenditure levels escalated by a CPI factor and indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  1. The Tallahassee Fire Department will continue to provide outstanding services to the community at their current staffing level.
  2. The City and County are currently engaged in a joint fire services fee study and will present recommendations during the FY24 budget development process for any fee adjustments to be made in FY24 or subsequent years.

FY24-27

Personnel costs for the upcoming Fire Station 17 are budgeted beginning in FY24. The current collective bargaining agreement between the City and the International Association of Fire Fighters will expire at the end of FY23. A new agreement will affect personnel costs for future years.

Established in 1902, the Tallahassee Fire Department (TFD) is a municipal fire department that provides fire suppression and emergency medical services in the City and the unincorporated areas of Leon County, Florida. The department is charged with the responsibility of protecting lives, property and the environment from hazardous conditions that threaten our community. This mission is accomplished through the provision of prevention and protective services specific to the incident need. The Tallahassee Fire Department staff of 300 people includes 285 sworn and 15 non-sworn personnel. Department activities are broadly grouped into Training, Emergency Management, Prevention, Operations (Suppression), Logistics, Public Education, Plans Review and Human Resources and Finance support functions. The Tallahassee Fire Department also provides quality first response non-transport Basic Life Support (BLS) and Advanced Life Support (ALS) services in conjunction with Leon County Emergency Medical Services (EMS). Department services are provided through 16 fire stations and an administrative office in the Public Safety Complex.

In FY20, the City Commission voted to delay the planned rate change for the fire assessment program, that would have taken effect in FY21, due to the financial impacts residents were experiencing from COVID-19. Throughout FY21, the Fire Department focused on reducing expenses to account for the missed revenue. A resolution was adopted by the City Commission to implement rate changes in FY22 and went into effect on October 1, 2021.

 

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY27 generally reflect revenue projections and current expenditure levels escalated by a CPI factor and indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  1. The Electric Utility develops 10-year sales forecast annually to use in the annual budget process. 
  2. An Electric Rate Study is planned for the Spring of FY23.

FY24-27

  1. The Electric Utility continues to invest in the current electric grid by enhancing funding in tree trimming and systemwide switch inspection and replacement.
  2. There is also a focus on enhancing transmission reliability and import capability through additional bulk power system interconnections.
  3. The department continues to look to the future and is working with consultants and key stakeholders to develop and implement the City’s Clean Energy Plan.
  4. Continued funding of pilot EV charging stations program and installation of new stations at key locations throughout the City.

The Electric Utility serves over 128,000 customers in a 221-square mile service territory. It is the fourth largest municipal electric utility in Florida, and the 24th largest of over 2,000 municipal systems in the United States. The utility is comprised of six major divisions: Finance and Administration, Power Delivery, Energy Supply, System Operations, System Compliance, and System Integrated Planning. The Electric Utility develops a 10-year sales forecast annually to use in the annual budget process. This sales forecast is based on a variety of inputs, such as heating and cooling degree days, economic, and population growth, the weather being the most variable driver. As the year progresses, actual sales are used to guide the operational decisions of the utility.

 

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY27 generally reflect revenue projections and current expenditure levels escalated by a CPI factor and indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  1. Following an FY21 rate study, water rates were increased by CPI set at 8.5% on October 1st, 2022. Total customer impact on average residential utility bill (6,000 gallons) equates to $1.91 per month. 
  2. Operating expenditures were redistributed based on a three-year average, resulting in a conservative increase of 3.5%. Additional savings in Utility expense of $510,000 will help offset inflationary pressures and ensures the fund meets its targeted RR&I transfer.  
  3. Capitalized Wage expense is reduced by $660,000 based on historical trends for direct labor charges to projects and aligns with the reductions made in FY2022 to Capitalized Overhead revenue. The reduction results in a net increase in Personnel Services.
  4. The Renewal, Replacement, and Improvement (RR&I) transfer for the capital improvements of Water infrastructure increased to $6.4 million, up from $6.1 million in FY22.

FY24-27

  1. Assumptions for rate revenues include modest customer growth of 1% and CPI set at 2.5% through FY2027.
  2. Operating expenses are estimated at an inflation rate of 2.5% per year and include plans for future debt in FY2024.

Commitment to capital investments includes a future borrowing in FY2024 and a 5% average increase per year in the RR&I transfer through FY2025.

 

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY27 generally reflect revenue projections and current expenditure levels escalated by a CPI factor and indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  • Following an FY21 rate study, sewer rates were increased by CPI set at 8.5% on October 1st, 2021. Total customer impact on average residential utility bill (5,000 gallons) equates to $4.63 per month. 
  • Operating expenditures were redistributed based on a three-year average, resulting in a conservative increase of 4.7%. Additional savings in Utility expense of $230,000 will help offset inflationary pressures and ensures the fund meets its targeted RR&I transfer.  
  • The Renewal, Replacement, and Improvement (RR&I) transfer for the capital improvements of Water infrastructure increased to $11.7 million, up from $11.1 million in FY22.

FY24-27

  • Assumptions for rate revenues include modest customer growth of 1% and CPI set at 2.5% through FY2027.
  • Operating expenses are estimated at an inflation rate of 2.5% per year and include plans for future debt in FY2024.

Commitment to capital investments includes a future borrowing in FY2024 and a 3.3% average increase per year in the RR&I transfer through FY2025.

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY27 generally reflect revenue projections and current expenditure levels escalated by a CPI factor and indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  1. Total revenues have increased over the past three years, including a $1.5 million increase in revenue this FY. The increase is primarily due to a return to pre-pandemic airport traffic, including increases in Rental Car and Parking Lot Revenues.
  2. The airport continues to receive considerable grant funding for capital projects.
  3. Expenses are set to increase by $1.5 million from FY22 to FY23 due to a rise in overall operational needs and RR&I investments.
  4. FTE employees have stayed constant at 54 since FY19
  5. Major Capital projects are ongoing at the airport, including the International Processing Facility, Terminal Modernization, Parking Facility improvements, and Taxiway Rehabilitation.

FY24-27

  1. Planning for future taxiway rehabilitation projects, along with additional facility capital improvements

The Bipartisan Infrastructure Bill estimates the airport to receive roughly $15.4 million over the next five years (FY23 – FY27).

 

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY27 generally reflect revenue projections and current expenditure levels escalated by a CPI factor and indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  1. The FY23 budget totals $20.6 million, which is $1.0 million, or 6%, higher than FY22. This change is due primarily to an increase in projected revenue from grants and the FSU bus contract revenue and increased personnel expenses for fixed-route service.
  2. The projected grant fund revenue of $7.4 million is an increase from last year's $6.6 million budget due to the increased application of Federal formula grant dollars to operating.
  3. The FSU bus contract revenue projection is $5.2 million, a significant increase over FY22 and pre-pandemic revenue, which previously peaked at $3.7 million in FY19.
  4. With pandemic-related revenue loss to the General Fund, its contribution to StarMetro decreased in FY22 to $3.8 million from the prior year's budget of $5.8 million. The transfer is being held at the same level for FY23. COVID-19 relief funds through CARES and ARPA funds have been used to supplement StarMetro's revenue, as well as an increase in federal formula grants for operating in FY23.
  5. StarMetro has 144.50 full-time equivalent (FTE) and 54 temporary employees. FTEs decreased by 2.00 from FY22 due to a position transferring to Administration and Professional Services and another moving to Customer Operations.

FY24-27

  1. Future budget projections assume a steady annual increase in ridership and fare cash and a steady decrease in Gas Tax revenue.
  2. Expenses for fixed route and Dial-A-Ride services are expected to increase yearly due to expected salary increases. The cost of fuel is a factor but is challenging to forecast.
  3. The General Fund contribution will remain around the FY22 level ($3.8 million) through ARPA funding's eligible use deadline of FY24 and then increase towards prior years' levels ($5.8 million).
  4. Continue to leverage grant funds and work with Fleet Management to purchase electric buses and convert all vehicles to electric by 2035.
  5. For capital projects and infrastructure, the department expects to complete the South City Transit Center and continue enhancing bus stops with its Blueprint allocation ($612,500 annually).

The City has operated StarMetro, a public transit system, since December 1973. StarMetro provides fixed route and special transportation services under the Americans with Disabilities Act (ADA) provisions and serves as the Community Transportation Coordinator (CTC) for Leon County. Public transportation services include weekday cross-town routes as well as university routes. StarMetro also provides individually scheduled per-request (para-transit) transportation to senior, disabled and low-income customers in Tallahassee and Leon County.

StarMetro heavily relies on personnel to accomplish its mission. StarMetro's primary goal is to meet the community's service needs within budgetary constraints by monitoring on-time performance and ridership levels monthly and quarterly, daily and weekly staffing levels.

StarMetro's vehicles and facilities comply with rules and regulations in the State of Florida Uniform Traffic Control Laws, Florida Administrative Code, Federal Motor Vehicle Safety Standards, and the Federal Transit Administration Policies and Procedures.

StarMetro regularly uses grant funds for capital projects and operating expenses. A combination of CARES Act, American Rescue Plan, Urbanized Area Formula Grants, and FL Department of Transportation (FDOT) grants have been used in recent years and will be used in FY23 to support operations. Assumptions for significant revenue sources for StarMetro in FY23 operating budget include:

  1. Gas tax revenue of $3.0 million
  2. Revenue from the FSU contract at its highest level yet of $5.2 million
  3. Federal Transit Authority formula grant 5307 funding of $4.8 million

StarMetro routinely evaluates how they can offset higher overtime personnel expenses by utilizing temporary employees and capturing salary savings. Additionally, they identify ways to boost hiring and retaining current staff (a common problem public transportation agencies face) within the budget.

 

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY27 generally reflect revenue projections and current expenditure levels escalated by a CPI factor and indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  1. The fund is self-sustaining, with monthly service charges paying for services.
  2. Solid Waste rates are reviewed every three to four years to ensure cost recovery over the planning period.

FY24-27

  1. Based on personnel costs, contractual provisions, revenues, and expenditures are estimated to increase from 1.8% to 3.1% from FY24-27.
  2. The City will complete a rate study for the Solid Waste Fund in FY23.

As part of the Community Beautification and Waste Management Department, the Solid Waste Fund provides removal and disposal of garbage, bulky items, yard waste, and recycling and recycling services for 50,000 residential and 15,000 commercial customers within the city limits.

 

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY27 generally reflect revenue projections and current expenditure levels escalated by a CPI factor and indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  1. Operating revenues and expenses were adjusted by CPI at 7% for FY23 and included a $3.6 million transfer to RR&I.
  2. Personnel cost increased by 9.25% over FY22 partially due to the reduction in capitalized wages and is mitigated by the $106 thousand budget reduction in the operating expenses. 
  3. There is a 10.6% reduction in operating expenses as the fund is continually looking for savings to produce a year-end transfer to their RR&I fund for capital improvements.

FY24-27

  1. Revenues are held stable with the projected CPI of 1.5% and considered minimal customer growth.
  2. Operating expenses are also estimated at the projected inflation rate of 1.5% per year. A fee study is contemplated in the next few years to assess the long-term sustainability of the Utility.
Emphasis on maximizing the RR&I transfer through reducing operating expenses will continue to be monitored each year.

 

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY27 generally reflect revenue projections and current expenditure levels escalated by a CPI factor and indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  1. In FY23, the Golf Department will continue to provide outstanding services to the community at their current staffing level.
  2. Revenues are expected to increase in FY23 due to the continued number of rounds played at both courses.
  3. Total expenditures at Hilaman are also budgeted to be slightly higher in FY23 due to the continued increase of rounds played.
  4. Golf course management plans to remodel the driving range at Hilaman and refurbish the bunkers and greens at Jake Gaither in FY23.

FY24-27

  1. •Steady revenue growth is expected over the next four years.

 

a graphic showing the budget for the department

See additional views of FY23 budget in OpenGov

Estimated revenues and expenditures for FY23-FY27 generally reflect revenue projections and current expenditure levels escalated by a CPI factor and indicate how expected trends applied to current estimates will shape future budget planning.

Budget Highlights

FY23

  1. Expenses are projected to increase by 2.2% from FY24 to FY27.

FY24-27

  1. Subject to estimates of future sales of graves spaces, it is projected that the
  2. Perpetual Care Trust Fund will be funded through FY29 at the current operating costs escalated by 2.2% to 3% each year.

 

 

3.1 Financial Schedules

This section contains links to the OpenGov transparency portal that the City of Tallahassee uses to share financial and budgetary information. The strength of the platform lies in the power of the viewer to see the budget from any angle. Select the links below as starting points.

 

 

3.2 Fund and Reserve Balances

Click here for the Capital Fund Balance Report

Click here for the Schedule of Reserves

Fund FY22 Amended
Budget
FY22 Actual
Revenue
FY22 Actual
Expense
FY22 Actual
Variance
Year-End Closing Action
General  $173,154,490  $173,154,490  $173,154,490  - Includes an additional appropriated transfer of $233,266 to StarMetro
Building
Inspections
4,412,140 4,673,167 4,463,813 209,354 Transfer to Building Inspection Reserve Fund 121 per State Law
Fire 54,293,348 54,234,224 50,576,398 3,657,826 Tansfer to Fire Operating Reserves per policy.
Electric 292,257,751 321,788,106 321,788,106 - No action.
Gas 31,138,459 31,276,825 28,895,715 2,381,110 Transfer to Gas Operating Reserve and Gas RR&I per policy.
Water 43,625,076 43,771,245 43,283,926 487,319 Transfer to Water Operating Reserve and Water RR&I per policy.
Sewer 78,505,543 78,555,654 75,078,853 3,476,801 Transfer to Sewer Operating Reserve and Sewer RR&I per policy.
Aviation 14,688,323 18,019,045 12,519,145 5,499,900 Transfer to Airport RR&I and airline revenue sharing per policy.
StarMetro 19,715,501 13,108,004 13,108,004 - Includes an additional appropriated transfer of $233,266 from General Fund.
Solid Waste 30,778,603 32,062,056 31,222,816 839,240 Transfer to Solid Waste Operating Reserve per policy.
Stormwater 19,441,738 20,649,116 18,618,214 2,030,901 Transfer to Stormwater RR&I per policy.
Golf 1,116,922 1,501,544 1,303,497 198,047 Transfer to Golf RR&I per policy.
Cemetery 363,348 156,322 450,183 (293,861) Transfer from Cemetary Perpetual Care Trust Fund per policy.

General Fund
The General Fund ends FY22 with actual revenues and expenditures in balance. This positive financial result reflects the Commission’s leadership, the strength of the management team, and City employees’ dedication to providing high-quality services within the resources available. These results also serve objective 3D in the City’s Strategic Plan, “Maintain the City’s strong financial standing and fiscal stewardship practices.”

Increases in revenue collections and the ongoing management expenses within budgeted resources allowed the City to use $805,574 less in American Rescue Plan Act funding than planned and funded the additional transfer of $233,266 necessary to balance StarMetro.

General Fund Revenues
General fund revenues for the FY22 Budget were estimated conservatively, understanding that many significant revenue sources such as sales taxes, revenue sharing, charges for services, licenses, and permitting are sensitive to public confidence in resuming pre-COVID-19 activities. At the time of budget development, the resulting economic uncertainty and increase in unemployment pointed toward a gap between pre-COVID growth in revenues and post-COVID trends.

Despite these indicators, the overall FY22 General Fund revenues exceeded estimates, which allowed the City to reduce the amount required in the General Fund from American Rescue Plan Act (ARPA) funds.

American Rescue Plan Act (ARPA)
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law. It included $45.6 billion for eligible cities to respond to the COVID-19 emergency.
ARPA provided federal funding to eligible cities to offset revenue loss in FY20 and the ongoing revenue loss resulting from the gap between pre-COVID revenue levels and anticipated growth and reduced post-COVID levels and growth. The U.S. Treasury issued guidance for expending these funds on May 10, and the City Commission approved a spending plan for the funds on May 19.

Based on claim guidelines for lost revenue in the General Fund, $2.4 million in Police and Parks and Recreation costs were funded by ARPA funds in FY22. $5.1 million has been budgeted in FY23 leaving $6.9 million for use in FY24, which is the last year funding is available.

In addition to funding for lost revenues, ARPA funds are providing $18 million over the next two years to address Commission priorities, including Affordable Housing, Community Resilience, homelessness, food insecurity, and small business support for those communities hardest hit by the economic impacts of COVID-19.

The following highlights results for other significant revenues in the General Fund:

  1. Property Taxes (Ad Valorem) - Due to the ability of property owners to receive a discount on their taxes if they pay early, the City budgets 95% of the total tax levy to allow for the resulting revenue reduction. The City collected 94% of the total levy in FY22, $315,600 less than budgeted. At $51.4 million, property taxes (Ad Valorem) support 30% of the General Fund Budget.
  2. Contributions from Utilities were received as budgeted and, at $46.9 million, funded 27% of the General Fund budget. Each year the contributions from utilities are escalated by CPI.
  3. Public Service Taxes - At $24.8 million, Public Service Taxes make up 14.3% of General Fund revenues. In FY22, they exceeded budget estimates by $274,729 at year-end.
  4. State of Florida Revenue Sharing and Florida Half-Cent Sales Tax revenues combined exceeded the prior year's collection by $3.4 million, reflecting higher growth than anticipated post-COVID.
  5. Charges for Services revenues totaled $11.3 million in FY22, which includes $4 million in parks and recreation fees, $2.5 million in traffic and right-of-way maintenance agreements, $2.2 million in parking fees, and $1.1 million from Animal Services fees.

Although actual revenues exceeded budgeted revenues, it is essential to note that collections would have been higher had the growth trends from FY19 continued. As such, the gap between pre-COVID revenues and reduced post-COVID revenues remains. The impacts of the revenue gap, higher labor costs and inflation, and the need to maintain a high standard of services will be offset, and ARPA funds will help mitigate these impacts through FY24.

General Fund Expenses
Throughout FY22, inflationary pressures on the General Fund, such as the rising cost of fuel and supply chain issues, as well as Police overtime costs, were closely monitored. Based on a combination of responsive operational decisions by City departments and moderate relief in the price of fuel and equipment during the fourth quarter, the General Fund ended the year with expenses below budget and balanced with revenues at year-end.

StarMetro
The StarMetro Fund for FY22 ended balanced at $13.1 million. This includes an additional $233,266 in revenue from the General Fund over what was budgeted. StarMetro’s revenue from the FSU bus contract was $4.8 million in FY22, an increase of $1.5 million from the prior year and $1 million above budget.

Approximately $6.1 million of grant funding from COVID-19 relief funds (CARES Act, CRRSSA, ARPA) were utilized to absorb operational expenses.

Building Inspection
The Building Inspection Fund for FY22 is balanced at $4.5 million without the planned use of reserves. Instead, reserves will increase by $209,354.

As a self-balancing fund, reserves are maintained in the Building Inspection Fund to provide for the variability of building activity. Building fees were increased on October 1 to ensure full recovery of costs as budgeted. As building permitting is variable due to economic impacts over time, the Building Fund will continue to balance recovery of costs and building fund reserves to deliver services in FY23.

Fire
The Fire Operating Fund ended FY22 with a surplus of $3.66 million, of which
$3.12 million was budgeted as an expected transfer to Fire Operating Reserves. With City Commission approval, the additional surplus of $529,918 will be transferred to Fire Operating Reserves, and the fund will end the year balanced.

Electric & Gas Utility

Electric
While the impacts of COVID-19 continue to diminish, there are still some lingering effects. The impacts to retail sales continued much like FY21, with increased residential sales and decreased commercial sales. As a result, retail electric sales were 3.2% below forecast. An Electric Utility fuel hedging program saved Electric customers over $75 million in fuel costs. It allowed the utility to increase the profitability of wholesale sales transactions, partially offsetting the retail sales shortfall.

Gas
Mild weather during FY22 had a small impact to sales, with retail gas sales 1.4% below forecast. The Gas Utility experienced moderate customer growth of 1.7% this fiscal year in the residential segment while maintaining a strong customer service rating of 4.88 out of 5.0 from its customers. Careful management of operating expenses kept the Gas Utility under its established budget. At year-end, revenues exceeded expenditures by $2.4 million which will be retained in the Gas RR&I Fund for future investments in Gas infrastructure per Financing the Government Policy 224.

Underground Utilities

Water Fund
The Water Fund for FY22 is balanced at $43,771,245 with the requested action to transfer the surplus of $487,319 first to the Water Operating Reserve for $454,910 and the remaining $32,409 to Water’s RR&I fund. The fiscal year surplus was due largely to expenditure savings in operating and utility costs along with an increase in retail water sales, which was up 6.71% over the prior year. Operating reserve funds are established to account for variability and ensure the utility can meet its General Fund contribution. The rate study completed in FY21 anticipated budget assumptions to balance revenue requirements with a multi-year plan, replenish reserves, and stay within the parameters of the rate study.

Sewer Fund
The Sewer Fund for FY22 is balanced at $78,555,654 with the requested action to transfer the surplus of $3,476,801 first to the Sewer Operating Reserve for $781,995 and the remaining $2,694,806 transferred to Sewer's RR&I fund. The fiscal year surplus is attributed to an increase in residential and commercial sales, which were up 6.16% over the prior year. The rate study completed in FY21 anticipated budget assumptions to balance revenue requirements with a multi-year plan and will utilize the surplus to replenish reserves and to stay within the parameters of the rate study

Stormwater
The Stormwater Fund for FY22 is balanced at $20,649,116 with the requested action to transfer the surplus of $2,030,901 to the capital Renewal, Replacement, & Improvement (RR&I). Revenue collections for stormwater fees exceeded forecast by 6.21%, which were based on conservative projections that assumed no customer growth in FY22. Expenditures were also 4.24% lower than forecasted.

Aviation

The Aviation Fund is balanced at $18,019,045 with the approval of an additional $2 million transfer to the Airport RR&I fund, per the Airline Use and Lease Agreements implemented in FY17.

Solid Waste Fund
The Solid Waste Fund at year-end is balanced at $31.2 million, with $839,240 retained in the operating reserve per Financing the Government policy 224.

Golf
The Golf Fund is balanced at $1.5 million with a surplus of $198,047. Staff is recommending City Commission approval to transfer the $198,047 balance to RR&I for future capital projects.

Cemetery
Revenues and expenditures for the Cemetery Fund are balanced at year-end. The estimate for FY22 for the use of the Perpetual Care Trust Fund (PCTF) was
$200,961, and $293,861 was needed to balance.

Staff is continuing to monitor the drawdown of the Perpetual Care Trust Fund (PCTF) by managing maintenance costs, evaluating current inventory, and engaging in a buyback program to provide additional spaces to replenish the trust fund. Subject to estimates of future sales of graves spaces, it is projected that the PCTF will be funded through FY29 at the current operating costs escalated by a 3% CPI assumption.

 

 

 

 

3.3 Revenues

The City has hundreds of different sources of revenue, but there are 27 specific types that account for over 80% of the organizations proceeds. The Revenue Analysis describes them, explains how they are budgeted, and reviews the current trends.

Click here to review the Revenue Analysis.

 

 

 

3.4 Long-range Financial Plans

This section directly connects the financial sections of the strategic plan and addresses other financial issues with a long-term outlook.

Click the objectives or initiatives below to monitor these plans progress.

  1. Target 1-A-6: Invest $25 million through 2024 in stormwater capacity enhancements to improve water quality and mitigate flooding in the urban service area.
  2. Target 3-D-1: Percent of general employee pension funded. 90%
  3. Target 3-D-2: Percent increase of annual grant awards. 5%
  4. Initiative 3-D-1: Maintain a fully funded deficiency fund in accordance with City policy.
  5. Initiative 3-D-2: Maintain best-in-class municipal “AA” Bond rating.
  6. Target 4-C-3: Invest $44.9 million in the enhancement and maintenance of the potable water system over the next five years.

In 2020, over 60% of Florida voters approved a ballot initiative to gradually raise the minimum wage. In 2021, the wage was set at $10 per hour. This minimum wage will increase by $1 annually until 2026 when it reaches $15 per hour. Currently, as of September 2022, the statewide minimum wage is $11 an hour. The goal of this legislation was to ensure that Floridians make a “living wage.” The Massachusetts Institute of Technology’s Living Wage Calculator shows that the “living wage” for a household with one adult and no children is $15.70 an hour in 2022, a significant increase from the past few years.

Even before the 2020 ballot initiative, the City of Tallahassee was committed to providing a living wage to its employees. The City Commission approved a minimum living wage of $12 per hour in Fiscal Year 2018 for all full-time employees. The City Commission expanded the application in Fiscal Year 2019 to include OPS employees (those who work more than 30 hours a week on average and are eligible for health care coverage).

Most recently, recognizing the impact of the new state law and the need to account for cost-of-living increases, Tallahassee’s City Commission approved a minimum living wage of $15 per hour for all permanent and OPS employees for the Fiscal Year 2022, a policy that was then extended into Fiscal Year 2023.

As state law, market conditions, and cost of living continue to change, the City will adapt its approach to maintain a high standard of living for its employees.

 

Healthcare benefits are essential to providing a competitive compensation package to attract and retain employees.  Healthcare costs for employees are currently split by the employer and employee, with the City covering an average of 80% of the expenses for general employee plans. This 80/20 split is a change phased in from the 70/30 split in FY20. This adjustment has “protected” employees from rising healthcare costs, saving an average of $976, $499, and $54 annually for Family, Employee +1, and Employee Only health plans since FY21.

Employees also received an increase in Flexbucks in FY22 of 9% or $177 annually to $2,145. Flexbucks are a monetary allowance that can be used towards healthcare contributions or adjacent voluntary benefits such as dental, vision, and life insurance. Employees will continue to receive $2,145 of FlexBucks in FY23.

 

 

3.5 Internal Service Funds

Internal service funds account for the financing of goods and services provided by one department or unit to other departments or units of the government on a cost-reimbursement basis. Each operating fund records an expense for the allocation. Some internal service funds receive fee income or other revenues to offset their costs and reduce the allocation. All internal service fund and indirect cost allocations are updated each year to reflect updated statistical allocation formula data.

View a brief description of each internal service fund and the basis of cost allocations.

View a detailed view of the internal service fund allocation.

 

 

 

FY2023 BUDGET OVERVIEW 4.0

CAPITAL AND DEBT

 

4.1 Capital Improvement Plan and Budget Process

Capital Improvement Plan

 

Fixed assets have a value of $750 or more and a useful lifespan of more than one year. Capital expenditures are related to the building, purchase, or maintenance of those fixed assets that belong to the City of Tallahassee.

The City uses capital budgeting to ensure the proper maintenance and investment in its infrastructure. The development of the capital improvement plan (CIP) is continuous as departmental project managers evaluate the timeline of each project and maximize the use of available funding throughout each year. Departments review their capital plans in the first quarter of the fiscal year. They adjust their plans as needed throughout the year prior to the City Commission passing the next year’s budget.

Department staff, Resource Management, and the Treasurer-Clerk’s office collaborate on funding for capital needs using a combination of cash and debt as appropriate within policy and credit rating standards.

In a typical year, Resource Management presents an initial capital budget to the Commission in the 2nd quarter to collect both community and elected official feedback.

Impact of Capital Investments on Operating Budget

Operating budgets supply the funding for capital expenditures. Multi-year capital financing plans are implemented to spread the cost of these projects over their useful life, financing them with annual transfers for debt service on capital or utility bonds as well as transfers to Repair, Replace and Improve (RR&I) funds. To see department budgeted RR&I transfers, click here.  This allows operating funds to adjust for the cost of capital financing incrementally from year to year, matching the flow of revenues to capital expenses.

Operating impacts can come in various forms from changes in staffing, operation and maintenance cost, as well as borrowing capacity for future financing. To see project-specific operating costs, click here.

 

 

4.2 Highlighted Capital Projects

 

Belle Vue Way Water and Sewer Improvement Project

a picture of belle way

As part of its commitment to ensuring reliable utility service, the City of Tallahassee Underground Utilities and Public Infrastructure department is planning a water and sewer utility improvement project along Belle Vue Way to replace aging infrastructure.

See more

International Passenger Processing Facility

a picture of airport exterior

The City continues to set a strategic focus on completing the International Processing Facility at the Tallahassee International Airport by 2024, as outlined in the City's Five-Year Strategic Plan (Priority Area: Economic Development, Objective 1-A-5). Once established, the International Processing Facility will be a major driver of economic growth for the Big Bend region.

See more

Southside Triangle Water and Sewer Infrastructure

A pipe in a dug out underground channel

At its Oct. 26, 2022, meeting, the City Commission authorized the City of Tallahassee’s Underground Utility and Public Infrastructure department to proceed with the extension of water and sewer utility infrastructure into the unserved areas of the Southside Triangle.

See more

Redevelopment of Northwood Centre Parcel

Redevelopment of Northwood Centre Parcel

The Northwood Center site is being prepared for redevelopment by the City of Tallahassee. Sitting on approximately 29.5 acres, the site is bordered by North Monroe Street, North Martin Luther King Jr. Boulevard and Tharpe Street. A key component within this redevelopment is construction of the new headquarters facility for the Tallahassee Police Department. Additionally, the site presents opportunities for new green space, community amenities and other economic development projects.

See more

Victory Garden Drive Sidewalk Improvements

a family using a sidewalk together

The Victory Garden Drive Sidewalk Improvements project will provide a new sidewalk along Victory Garden Drive from Apalachee Parkway to Park Avenue.

See more...

Click here to view the new facility in the Capital Improvement Plan.

Public Safety Complex

In 12 years, the original structure of Tallahassee Police Department Headquarters will be 100 years old. Due to its age, the building maintenance costs are expected to increase. The department estimates that there are more than $3.4 million improvements needed in the next five years.

A new public safety facility will contain the space needed to serve as a community hub for department sponsored events. A larger facility will provide much-needed training space that could also be utilized to host ongoing community programs like Citizen’s Police Academy, Youth Citizen’s Police Academy, Drug Education for Youth, and Rape Aggression Defense courses for women and children.

In accordance with the site selection process outlined and approved at the March 6, 2019, City Commission meeting, the City solicited and received a total of 68 site proposals from citizens, realtors and property owners. The initial list of 68 sites was evaluated and given a preliminary score based on the criteria approved by the Commission. Eventually, the City selected the Northwood Centre as the home for the future public safety complex.

Phase I - Environmental Assessment

Phase II – Design/Preconstruction Services to a Guaranteed Maximum Price (6-12 Months)

  • Complete project design
  • Preconstruction services
  • Community meetings
  • Local and minority business workshops
  • Workforce plan development
  • Guaranteed maximum price

Phase III – Construction to TPD Move-in (18-24 Months)

  • Construction
  • Construction administration
  • Community engagement
  • TPD coordination/move-in

Click here to view the new Senior Center in the Capital Improvement Plan.

Senior Services

Plans for a Northside Senior Center located in the Canopy development at Welaunee are underway. The new Senior Center addresses growth as Tallahassee attracts retirees. The Center will enhance the quality of life for the community’s seniors by accommodating their lifelong learning, wellness and fitness, arts and crafts, music, and games.

Multipurpose spaces will foster vibrant social lives and life enrichment by hosting meetings, games, conferences, workshops, and concerts. Seniors will interact in comfortable cafes and coffee shops. Various athletic events will be held at the multisport gymnasium.

A total of $17 million is planned from the 2020 Sales Tax extension for the construction of this new facility. Through its partnership with the Tallahassee Senior Center Foundation, the City has developed a successful model at the current Senior Center. City staff will work closely with the Foundation to ensure similar success for the new facility.

Click here to view the new Lake Bradford Fire Station in the Capital Improvement Plan

map of the Lake Bradford site area

The City Commission directed staff to initiate design and master planning services for the new Fire Station 17 and Community Resilience Center at the former Lake Bradford Road Wastewater Treatment Facility. This new facility will enhance response times for fire and other emergency services on the City’s southside and aligns with the City’s Strategic Plan, including but not limited to Objective 5D-1 which seeks to increase the percentage of the City covered by Advanced Life Support (ALS) fire stations.

Facilities for other public services and amenities, such as a TEMPO Resource Center, Community-Oriented Policing Squad (COPPS), Community Outreach and Neighborhood Services, Sustainability, Resilience and Code Enforcement, as well as public gathering space, are also planned as part of the overall development of the Lake Bradford Road site. Including these amenities around a new fire facility would complement the neighborhood improvement and placemaking efforts of citizen groups in the Bond, Callen, Providence, and other neighborhoods.

Neighborhood First

The City’s Neighborhood First planning process provides for broad-based community participation involving neighborhood residents and community stakeholders. It is a strategic planning initiative that is offered to neighborhoods participating in the Neighborhood Public Safety Initiative to address their top priorities. Projects include façade and street improvements, park enhancements, development of Community Redevelopment Agency/City-owned lots, historic preservation, and more, consistent with neighborhood priorities and outlined in each neighborhood’s plan. The FY22-FY26 capital improvement plan update includes $2 million a year to support neighborhood plans in the City.

 

4.3 Current Year Capital Budget and Projects

The City’s debt policy identifies debt-financing goals the City seeks to achieve. It provides targets rather than requirements and applies to all debt issued by the City of Tallahassee. The policy also addresses debt structure, debt issuance, debt refunding, debt targets, and other topics.

Bond Proceeds are funds received through bond revenue to pay for water, wastewater, electric, gas, and general government capital infrastructure projects. Bond proceeds in this year’s capital improvement plan include:

  • Airport debt
  • Bank loans
  • 2018 Bonds
  • 2018 Consolidated Utility Services Bonds (CUSB)
  • Future Consolidated Utility Services Bonds (CUSB)
  • Future bonds for public infrastructure.

General Government is funding received from the general fund, sales tax, gas tax, and intergovernmental funding with Leon County. These sources fund general government capital improvements including public infrastructure, public safety, technology advancements, and traffic infrastructure. General Government funding sources used in this year’s capital improvement plan include:

  • Gas Tax
  • 2020 Sales Tax
  • Interlocal Allocations
  • Transfers from the General Fund (GGCPA)
  • Prior year’s balances for in the Government Capital Improvement Fund

Special Fundsderive from various sources including internal service capital funds, charges for services dedicated for capital improvements, proceeds from sales, accounts receivable funds, and reserves. Special funds used in this year’s capital improvement plan include:

  • 800 MHz Fund
  • Aviation facility charges and investment funds
  • Electric Accounts Receivable
  • Energy Conservation Fund
  • Fire Construction Fund
  • Fleet Reserve Fund
  • Water and Sewer System Charges
  • Solid Waste Reserve
  • Traffic Project A/R Fund
  • Utility Services Construction Fund
  • Water A/R Project Fund
  • Interlocal Allocations.

Renewal, Replacement, & Improvement (RR&I) funding is cash received from each department’s operating budget that is dedicated for capital improvements. Undesignated balances are accumulated through balances in closed projects, unprogrammed RR&I funding and interest earnings. Those RR&I funding sources used in this year’s budget include RR&I funding from originating from a variety of operating funds:

  • Airport
  • Electric
  • Internal Service Funds
  • Gas
  • Sewer
  • Stormwater
  • Water utilities

State Funds include grant funding from State organizations that provide additional support to community initiatives. The following funding sources are dedicated to projects in this year’s capital improvement plan:

  • Community Development Block Grant
  • Florida Department of Transportation grants

Federal Funds include grant funding from Federal organizations that provide additional support to community initiatives.

  • Federal Aviation Administration
  • American Rescue Plan Revenue Loss
  • Federal Transit Administration
  • Hazard Mitigation Grant Program

 

 

4.4 Debt Goals and Targets

While the City does not have formal or legal debt limits, it does have goals and targets to ensure that it maintains a AA rating from credit reviewers.

  • Maintain sufficiently high bond ratings to assure access to affordable credit and low-borrowing costs
  • Ensure intergenerational equity by amortizing debt within the expected useful life of a project or asset
  • Coordinate the City’s capital improvement program with its debt management policy to develop a coherent, long-term financing plan for the City’s capital funding needs
  • Maintain flexibility for the future financial needs of the City

The City will monitor and report debt ratios annually and at the time of each debt issuance, and strive to structure debt to meet the following targets:

Targets for liquidity, operating margins and debt burden

General Fund
Liquidity: Spendable General Fund Balance of 15% of General Fund expenditures.
Debt Service as a % of Expenditures/Coverage Ratio: Net Debt Service to be less than 10% of General Fund Expenditures
Debt Burden: Debt as a % of Full Market Value in less than 2%

Consolidated Utility System
Liquidity: 150 days cash on hand
Debt Service as a % of Expenditures/Coverage Ratio: Debt Service Coverage of 1.50x or higher
Debt Burden: Debt as a % of Capital Assets less than 50%

Energy System
Liquidity: 210 days cash on hand
Debt Service as a % of Expenditures/Coverage Ratio: Debt Service Coverage of 2.0x or higher
Debt Burden: Debt as a % of Capital Assets less than 60%

Targets for the structure of the City’s debt portfolio at the time of issuance

General Fund
Average Life (Range): 10 - 15 years
Viable Rate (VR): 20%*
Rolling Medium Term Notes (RMTN): 20%*
Combined (VR/RMTN): 30%*

Consolidated Utility System
Average Life (Range): 15 - 20 years
Viable Rate (VR): 25%
Rolling Medium Term Notes (RMTN): 30%cccc Combined (VR/RMTN): 40%

Energy System
Average Life (Range): 15 - 20 years
Viable Rate (VR): 25%
Rolling Medium Term Notes (RMTN): 30%
Combined (VR/RMTN): 40%

*The City shall not exceed the greater of these percentages or $50 million individually for Viable Rate and Rolling Medium Term notes and $90 million combined for Viable Rate and Medium Term Notes at the time of issuance.

Renewal, Replacement, & Improvement (RR&I) funding is cash received from each department’s operating budget that is dedicated for capital improvements. Undesignated balances are accumulated through balances in closed projects, unprogrammed RR&I funding and interest earnings. Those RR&I funding sources used in this year’s budget include RR&I funding originating from a variety of operating funds:

  • Airport
  • Electric
  • Internal Service Funds
  • Gas
  • Sewer
  • Stormwater
  • Water utilities
  • Golf

 

4.5 Bond Ratings Report Card, Maturity Schedules, and Debt Service

Debt service is funding used to pay interest on outstanding bonds and pay the principal on maturing bonds. The impact of debt on the current budget can be seen through the City’s debt service.

Click here to review debt service by fund in OpenGov.

The City of Tallahassee proudly maintains its AA bond rating from credit agencies. Review the report card below and hover the cursor over the “Hover Here…” section to learn more about each issuance and see maturity schedules.

 

 

 

FY2023 BUDGET OVERVIEW 5.0

DEPARTMENTAL INFORMATION

 

5.1 Position Summary

The City is committed to investing in its greatest asset: its employees. City employees are relentlessly focused on achieving our mission to be the national leader in delivering public services and implementing efforts for key elements of the five-year strategic plan.

The FY23 budget includes 2,954.50 full-time equivalents (FTE) employees. This is an increase of 4.00 FTEs from FY22. The Animal Services Center saw an increase of 3.00 new FTEs, 2.00 of which were converted from Other Personnel Services (OPS) level positions. Moving from OPS to FTE provides employees with additional benefits such as 401K and pension, which incentivizes employee retention and promotes workforce stability. Additionally, 1.00 new FTE for the Riley House was approved in March 2022 for FY23.

 

 

 

5.2 City Departments

 

Click here for a detailed view of the department fund relationships.

Select a department name below to review its budget page containing expenditures, full-time employee counts, and performance for strategic targets.

 

5.3 Performance Dashboard

a person navigates through the Strategic Plan Dashboard website on a tablet

2020 Cerificate of Achievement in Performance ManagementClick here to review the City’s performance dashboard. This page demonstrates progress towards the strategic plan’s objectives.

 

 

5.4 Florida Benchmarking Consortium

The City of Tallahassee is a founding member of the Florida Benchmarking Consortium (FBC)*. It is the largest intra-state government benchmarking group in the United States. While the comparison numbers are older due to the timing of data collection, they still allow for benchmarking against peers.

* The Florida Benchmarking Consortium has felt the impact of COVID-19, and as such, there is a delay in obtaining updated statistical information in time for publication.

 

 

FY2023 BUDGET OVERVIEW 6.0

APPENDIX

GFOA Budget Award

GFOA Award

The City of Tallahassee was awarded the Distinguished Budget Presentation Award by the Government Finance Officers Association of the United States and Canada (GFOA) for the fiscal year 2022 budget, which is the 36th year the City of Tallahassee has received this award.

This award represents a significant achievement by the City. It reflects the commitment of the governing body, management, and staff to meeting the highest principles of governmental budgeting.

The City had to satisfy nationally recognized guidelines for effective budget presentation to receive the budget award. These guidelines assess how well an entity's budget serves as:

  • a policy document
  • a financial plan
  • an operations guide
  • a communications device

The budget presentation must be rated "proficient" in all four categories and the fourteen mandatory criteria within those categories to receive the award.

Special Thanks

Office of Economic Vitality
Office of Communications

 

 

6.1 Definitions

ACCRUAL BASIS - A basis of accounting in which transactions are recognized when they are incurred, as opposed to when cash is received or spent.

AD VALOREM TAXES - Taxes levied on both real and personal property according to the property's valuation and the tax rate.

ADVERTISING - Costs for legal advertisements, posters, publication of public notices, resolutions, ordinances, and bid invitations.

APPROPRIATION - A legal authorization to incur obligations and make specific expenditures.

AVAILABLE (UNDESIGNATED) FUND BALANCE - This refers to the funds remaining from the prior year which are available for appropriation and expenditure in the current year.

BAD DEBT - The estimated amount of accounts owed to the City (receivables) that will not be collected during the year. Bad Debt includes utility accounts, accident damage repair accounts, and other miscellaneous account receivables deemed uncollectible.

BALANCED BUDGET- The revenues must equal the expenditures. Florida Statute 166 reads, “The amount available from taxation and other sources, including balances brought forward from prior fiscal years, must equal the total appropriations for expenditures and reserves."

BOND - Evidence of the local government's obligation to repay a specified principal amount on a future maturity date, plus interest. Bonds are issued to obtain money for capital projects. Revenue bonds pledge a particular source of revenue usually generated by the new asset as the means of repayment.

BOND REFERENDUM - The process by which voters approve or disapprove a proposed general obligation bond issue.

BOND REFINANCING - The payoff and re-issuance of bonds to obtain better interest rates and/or bond conditions.

BOND RESOLUTION - The document by which the local government authorizes the sale of bonds.

BUDGET - The formal allocation of resources (dollars) to various programs with the intent of performing a service.

BUDGETARY BASIS - The basis of accounting used to estimate financing sources and uses in the budget. This generally takes one of three forms: GAAP, cash, or modified accrual.

BUDGET CALENDAR - The schedule of key dates the City follows in preparing and adopting the budget.

CAPITAL ASSETS - Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets.

CAPITAL BUDGET - The appropriation of bonds or operating revenue for improvements to facilities and other infrastructure.

CAPITAL IMPROVEMENTS (Capital Projects) - Expenditures related to the acquisition, expansion, or rehabilitation of an element of the government's physical plant, sometimes referred to as infrastructure.

CAPITAL IMPROVEMENTS PLAN (CIP) - A plan for capital outlay to be incurred each year over a fixed number of years to meet capital needs arising from the government's long-term needs.

CAPITAL OUTLAY - Fixed assets that have a value of $750 or more and have a useful economic life of more than one year or assets of any value if the nature of the item is such that it must be controlled for custody purposes as a fixed asset.

CAPITALIZED OVERHEAD - Charges assessed to capital projects for administrative and labor-related services.

CAPITALIZED WAGES – Direct salaries or wages of city employees, which are paid from funds appropriated in the capital budget.

CASH BASIS - A basis of accounting in which transactions are recognized only when cash is increased or decreased.

CITY CONTINGENCY - Amount budgeted to meet unexpected operating expenditures during the current year.

COST OF GOODS SOLD (COGS) FUEL STORES - Fuel purchased by the city garage and then resold by the City for use in the city fleet.

COST OF GOODS SOLD (COGS) MATERIALS STORES - The cost of materials and supplies that the City resells. This includes articles for resale by the city garage parts division, the city warehouse, and golf courses.

COST OF GOODS SOLD (COGS) NATURAL GAS – In the Cost of Goods Sold account, the City records the cost of natural gas purchased by the City electric department to generate electricity and natural gas sold by the gas utility department to gas customers.

COLLECTIVE BARGAINING AGREEMENT - A legal contract between the City and representatives of a recognized bargaining unit for specific terms and conditions of employment (e.g., hours, working conditions, salary, fringe benefits, and matters affecting the health and safety of employees).

CONSUMER PRICE INDEX (CPI) - A statistical description of price levels provided by the U.S. Department of Labor. The index measures the increase in the cost of living (i.e., economic inflation).

CONTRACTUAL SERVICES - Services rendered to the City by private firms, individuals, or other governmental agencies. Examples include maintenance agreements and professional consulting services.

CURRENT SERVICE LEVEL (CSL) - A level of service which is the same as the current year.

DEBT SERVICE - The amount of money needed to 1) pay interest on outstanding bonds, 2) pay the principal on maturing bonds, and 3) make contributions to a sinking fund for term bonds. Debt service is calculated on a fiscal year basis.

DEDICATED TAX - A tax levied to support a specific government program or purpose.

DEFICIT - The excess of an entity's liabilities over its assets or the excess of expenditures or expenses over revenues during a single accounting period.

DEPARTMENT – An organizational unit of government that is functionally unique in its delivery of services.

DEPRECIATION - Expiration in the service life of capital assets attributable to wear and tear, deterioration, the action of the physical elements, inadequacy, or obsolescence.

EMPLOYEE BENEFITS - Costs incurred by the City for pension, health insurance, and other employee benefits.

ENCUMBRANCE - The commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a specified future expenditure. ENTERPRISE FUND - A fund established for services that are predominantly self-supported by user fees and charges.

EQUIPMENT SUPPLIES - The cost of materials and supplies used in the operation of machinery and equipment.

EXPENDITURE - The payment of cash or the transfer of property or services to acquire goods or services or settle a loss.

EXPENSE - Charges incurred (whether paid immediately or to be paid at a later date) for operations, maintenance, interest, or other charges.

FISCAL YEAR - Twelve months designated as an organization's operating year for accounting and budgeting purposes. The fiscal year for the City of Tallahassee is from October 1 through September 30.

FULL-TIME EQUIVALENT (FTE) - A method of measuring the number of authorized employees based on a full-time equivalent of 2,080 hours per year.

FUND - A fiscal/accounting entity established to accomplish specific objectives and activities. Examples include the debt service fund, capital projects funds, and special assessment funds.

FUND BALANCE - The excess of a fund's assets over its liabilities, reserves, and carryover.

GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND (GG/CIF) – Undesignated capital funding that serves as a contingency for all capital funding sources in the general government.

GENERAL GOVERNMENT CAPITAL PROJECT ACCOUNT (GG/CPA) – Funding from the general fund operating budget to support governmental capital projects.

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) - Uniform minimum standards for financial accounting and recording encompassing the conventions, rules, and procedures that define accepted accounting principles.

GENERAL FUND - The fund used to finance all non-enterprise operations of local government.

GOAL - A statement of broad direction, purpose, or intent based on the community's needs. A goal is general and timeless. Glossary of Key Terms

GRANT - A contribution by a government or other organization to support a particular function. Grants may be classified as operational or capital, depending upon the intended usage of the grant proceeds.

INCREASED SERVICE LEVEL (ISL) - A change in service delivery that exceeds the current level of service.

INDIRECT COST - A cost necessary for the organization's functioning as a whole that cannot be directly assigned to one service.

INFRASTRUCTURE - The physical assets of a government (e.g., streets, waterworks, sewer lines, public buildings, and parks).

IN LIEU OF TAXES - Income received by local governments to compensate for the loss of revenue from a tax-exempt property.

INSURANCE - Costs associated with workers’ compensation claims, including administration and medical costs, dishonesty bonds, and property and casualty insurance premiums.

INTER-FUND TRANSFER - Legally authorized transfers from a fund receiving revenue to a fund through which resources are to be expended.

INTEREST EXPENSE - Cost of utilizing borrowed funds (long-term debt).

INTERGOVERNMENTAL REVENUE OR SHARED REVENUE - Tax/fee money collected by one level of government and distributed to another level of government.

INTERNAL SERVICE FUNDS - Funds established to distribute costs to user departments for administrative services provided by another unit of government, such as data processing or insurance funded from a central pool.

INTRA-FUND TRANSFER - Legally authorized transfers within a fund.

LEVY - To impose taxes for the support of government activities.

LONG-TERM DEBT - Debt with a maturity of more than one year after the date of issuance.

MILLAGE RATE - The rate in mills (1 mill = 1/1000 of a dollar or .001) at which property is taxed.

MISSION STATEMENT - A formal summary of the aims and values of a company or organization.

OBJECTIVE - A specific/quantifiable statement of what the City, a department, or a unit expects to accomplish in a fiscal year.

OFFICE EQUIPMENT - Furniture, fixtures, and equipment with an initial cost of $750 or more.

OPERATING REVENUE - Funds received by the City as income to pay for ongoing operations, including taxes, fees, interest earnings, and grant revenues.

OPERATING EXPENSES - The cost of personnel, materials, and equipment required for a department to function.

ORDINANCE - Legislation enacted by the City Commission, which has the full force and effect of law within the municipal boundaries.

ORGANIZATIONAL CHART - A graphic representation of the structure of an organization, showing the relationships of the positions or jobs within it.

OTHER SALARY ADJUSTMENTS - Items of employee compensation that are not directly related to the regular or overtime hours worked.

OVERTIME - Compensation to eligible employees for hours worked beyond 40 hours within a specific workweek.

PAY-AS-YOU-GO BASIS - A term used to describe a financial policy by which capital projects (infrastructure) are financed from current revenues rather than through borrowing.

PENSION CURRENT – The City’s contribution to an employee pension plan for participating employees.

PENSION MATCHED ANNUITY PENSION PLAN (MAPP) - City contribution to the employee-matched annuity pension plan for participating employees.

PER CAPITA COST - Cost per unit of the population to provide a particular service in the community.

PERFORMANCE INDICATORS - Specific quantitative and qualitative measures of work planned by specific departments or programs.

PERFORMANCE MEASURE - Data collected to determine how effectively or efficiently a program achieves its objectives (performance indicators).

PRIOR-YEAR ENCUMBRANCES - Unpaid, legally binding obligations from previous fiscal years in the form of purchase orders, contracts, or salary commitments, which are chargeable to a prior appropriation and for which a part of that appropriation is reserved.

PRO-FORMA - The financial assumptions or projections for the 14 operating funds.

PROGRAM - A collection of activities directed at accomplishing similar objectives.

PROGRAM PERFORMANCE BUDGET - A method of budgeting whereby the services provided to the residents are broken down into identifiable service or performance units, and funding is appropriated for a given level of service.

PROPERTY TAX - An ad valorem tax based on the fair market value of real property (land and buildings) and personal property (business equipment). The county property appraiser determines fair market or "just" value as of January 1 of each year under F.S. Chapter 193.

REDUCED SERVICE LEVEL (RSL) – The reduction of the services provided by a unit of government.

REPAIRS, REPLACEMENTS & IMPROVEMENTS (RR&I) - The portion of the cost of fixed assets (excluding land) charged as an expense during a particular period due to expiration in service life, attributable to wear and tear through use and lapse of time, obsolescence, inadequacy, or other physical or functional cause.

RESERVE - An account used either to set aside budgeted revenues that are not required for expenditure in the current budget year or to earmark revenues for a specific future purpose.

RESERVE TRANSFER - Those payments are necessary to meet the current requirements for reserve funds adequately.

RESOLUTION - A special or temporary order of a legislative body that requires less legal formality than an ordinance or statute.

REVENUE - Money that flows into the local government. Revenue is recurring if it is received each fiscal year (e.g., sales taxes and property taxes) and nonrecurring if it is received irregularly (e.g., federal and state grants). The four main types of local revenue are taxes, user fees, licenses and permits, and intergovernmental revenue.

ROLLED-BACK MILLAGE RATE - A tax rate at which, applied to the current year’s tax base, will bring in the same amount of taxes as levied the prior year. Newly construction or other real property added to the preceding year‘s tax roll excluded.

SALARIES AND WAGES - Regular weekly and monthly compensation for work performed as defined by the personnel pay scale for position classifications.

SERVICE LEVEL - Services or products that comprise a given program's actual or expected output.

SOCIAL SECURITY - City contribution to employee Social Security for participating employees.

SPECIAL ASSESSMENT - A tax on property owners who receive a benefit not received by all other taxpayers.

SPECIAL REVENUE FUND - Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

SUPPLEMENTAL APPROPRIATION - An additional appropriation made by the governing body after the budget year has started.

TAX BASE - The total taxable value of property within the local government's legal boundaries.

TAX ROLL - The master list of the assessed value of all taxable property within the government's jurisdiction. The list is certified to all local taxing authorities by the property appraiser by July 1 of each year.

TAXABLE VALUE - The assessed value of real property after exemptions are deducted.

TAXES - Compulsory charges levied by a government to finance services for the common benefit of the people.

TEMPORARY WAGES - Seasonal or temporary employees' compensation computed on hourly or monthly rates.

TERM BONDS - Bonds that comprise all or part of a particular bond issue that come due in a single maturity.

TRAVEL AND TRAINING - The cost of attending meetings, conferences, short conferences, etc.

TRUST FUND - A fund established to collect and distribute monies for a specific function or operation.

UNCLASSIFIED EQUIPMENT - New equipment not otherwise classified, including air conditioners, traffic signals, field stripers, water fountains, etc. This includes all tangible personal property to be purchased, with a value of $1,000 or more. As with all capital equipment, this equipment is subject to inventory control.

UNCLASSIFIED PROFESSIONAL FEES - The cost of personnel service under-expressed or implied contracts to individuals, companies, or corporations engaged as contractors to perform a specific professional or expert service for the City.

UNCLASSIFIED SUPPLIES - Consumable materials and supplies used in conjunction with projects or operations not explicitly classified.

 

6.2 Commonly Used Abbreviations

AHAP Affordable Housing Assistance Program
CAD Computer Aided Dispatch
CDA Consolidated Dispatch Agency
CDBG Community Development Block Grant
CHSP Community Human Service Partnership
CIP Capital Improvement Plan
CIS Customer Information System
COCA Council on Culture and Arts
COPS Community-Oriented Policing Services
CPI Consumer Price Index
CRA Community Redevelopment Agency
CUSB Consolidated Utility System Bond
DEP Department of Environmental Protection
DIA Downtown Improvement Authority
DRI Development of Regional Impact
EAP Employee Assistance Program
EEO Equal Employment Opportunity
EOC Emergency Operations Center
ERU Equivalent Residential Unit
EWD Equity and Workforce Development
FAA Federal Aviation Authority
FAMU Florida Agricultural and Mechanical University
FDEP Florida Department of Environmental Protection
FDOT Florida Department of Transportation
FEMA Federal Emergency Management Agency
FERC Federal Energy Regulatory Commission
FHWA Federal Highway Administration
FSU Florida State University
FTA Federal Transportation Administration
FTE Full-time Equivalent
GASB Governmental Accounting Standards Board
GF General Fund
GG/CIF General Government/Capital Improvement Fund
GG/CPA General Government/Capital Projects Account
GIS Geographic Information Systems
HOME Home Investment Partnership Program
HUD Housing and Urban Development
IAFF International Association of Firefighters
IRP Integrated Resource Planning
ISO Insurance Service Office
ISS Information Systems Services
JARC Juvenile Assessment Receiving Center
KWH Kilowatt Hour
LLEB Local Law Enforcement Block Grant
MAPP Matched Annuity Pension Plan
MGD Million Gallons Daily
MSA Metropolitan Statistical Area
MW Megawatt
MWBE Minority and Women Business Enterprise
NPDES National Pollution Discharge Elimination System
OEV Office of Economic Vitality
PASS Pedestrian and Street Safety
PBA Police Benevolent Association
PETS Permit Enforcement Tracking System
PLACE Planning, Land Management & Community Enhancement
PSC Public Service Commission
PUD Planned Unit Development
RFP Request for Proposal
RR&I Repairs, Replacements, and Improvements
SCADA System Control and Data Acquisition
SHIP State Housing Initiative Plan
SPRP Stormwater Pollution Reduction Program
TCC Tallahassee Community College

 

 

6.4 Online Budget Feedback

Thank you for reading the City of Tallahassee’s budget. To foster its continuous improvement, please complete a short survey to provide some feedback. Click here to complete the survey.

 

 

6.5 Form of Government

The City of Tallahassee uses the council-manager form of government with a “leadership mayor”.

The mayor's role includes presiding at city commission meetings, serving as the ceremonial head of the government, serving as the official head of the City for civil processes, and executing legal documents. The mayor is also considered the political leader of the government and is involved in dialogues and negotiations with county, state, and federal officials. Tallahassee's mayor is not considered a "strong mayor" because the position has no veto power and represents only one vote on the city commission.

 

The mayor and city commission serve as the governing body of the City. They set broad policies and goals and establish the City’s Strategic. They also establish goals, approve the annual budget and approve tax rates. The mayor and city commissioners each serve four-year terms. The terms of office are staggered, with elections held in even-numbered years (two seats during Presidential election cycles, and two others - plus the mayor - in mid-term election cycles).

Regular city commission meetings are typically held twice a month to conduct city business and provide citizens with an opportunity to participate in the government process. In addition, the commission meets for workshops on specific issues. The city commission also appoints four officers to administer the duties of the city.

 

Four officers, appointed by the city commission, handle the administration of the City: city manager, treasurer-clerk, city attorney, and inspector general. The city manager oversees most City departments and administers the daily operation of the City. The treasurer-clerk administers records, taxation, and the City treasury. The city attorney serves as the City's legal advisor, prepares contracts, and represents the City in legal issues. The auditor reviews the policies, procedures, and accounting of City operations.

  1. City Manager Reese Goad
  2. Inspector General Dennis R. Sutton
  3. Treasurer-Clerk James Cooke, IV
  4. City Attorney Cassandra K. Jackson

 

The independent Ethics Board was created in accordance with voters' approval of a City Charter amendment during the November, 2014 general election. Approval of the referendum created a 7-member Board comprised of 5 seats designated for appointment by local entities including the City Commission, Public Defender, State Attorney for the Second Judicial Circuit, President of Florida State University, and President of Florida A & M University. The referendum required these initial 5 Board members to select two additional members to bring the Board to a full complement of 7 members.

The independent Ethics Board and Ethics Officer provide ethical oversight of the City’s elected and appointed officials. Click here to visit their website.

 

 

6.6 Supplemental Demographic and Economic Information

This section offers additional information and visualizations related to the City’s community. It also describes economic trends that impact the City’s budget. For more information on these trends, please visit the Tallahassee-Leon County Office of Economic Vitality’s website.

The Tallahassee Metropolitan Statistical Area (MSA) is used frequently, which includes all of Gadsden, Jefferson, Leon and Wakulla counties. The City serves as an urban hub to these areas and many in outside communities work and shop within the City’s limits.

The example graph below shows the growth of median sales price of homes in Tallahassee, Leon County, and the State of Florida.

 

Educational Attainment

Tallahassee citizens are some of the most educated in the State of Florida. In 2018, 48% of its citizens had a bachelor’s degree or higher compared to 29% for the State as a whole.

Educational Attainment Chart

Explore the most recent data and interactive views.

Population by Age

The City boasts a large student population with 20 to 24 year-old residents representing the largest 4-year age group. With the areas around the universities resembling college towns, the student populations impact the City’s statistics from poverty to homeownership.

Population by Age

Explore the most recent data and interactive views.

 

Growth by Age Group

While students may represent a large single group, the fastest growing age group are those from 65 to 79. This is in part due to State-wide trends but also thanks to the Choose Tallahassee campaign.

Growth by Age

Explore the most recent data and interactive views.

Crime Index

While crime has been a point of concern for the community, it’s important to note that the crime rate has been in decline. Since 1995, violent crime has declined by over 50%.

Crime Index Chart

Explore the most recent data and interactive views.

 

Electric Service Points

The City’s electric utility serves more customers each year, which represents both growing revenues and costs for the Electric Fund. Regular spikes in the early fall are likely due to students moving in and out of properties in those months.

Electric Service Chart

Explore the most recent data and interactive views.

Tallahassee Airport Passengers

While the Tallahassee Airport does much more than serve passenger aircraft, it’s an important trend to monitor for the Aviation Fund. The tremendous impact of COVID-19 on air travel also impacted the City’s airport. This will be an important trend to monitor for the City and its Aviation Fund.

Airport Passengers Chart

Explore the most recent data and interactive views.

 

Taxable Sales

Taxable sales affect the revenue-sharing with the State of Florida.

Taxable Sales Chart

Explore the most recent data and interactive views.

Foreclosures

In this recession environment, it will be important to monitor local foreclosures. Stimulus from the federal government delayed the impacts of late mortgage payments, but foreclosures are expected to rise into 2021.

Foreclosures Chart

Explore the most recent data and interactive views.

Contact

Contact Us

Our Address

414 E. Bloxham, Tallahassee, FL 32301

Make a Reservation

Please fill out this application and submit to Laurie Swiger.

Call to Speak to a Coordinator

850-891-3816

Version: 3951 (2/14/2023 1:15 PM) |