FY 2011-12 Adopted Budget - City of Oviedo

The following “budget highlights” provides a concise summary of the FY 11-12 adopted budget:
The General Fund property tax rate for FY 11-12 is 4.8626 - the same tax rate since FY 08-09. The
proposed millage rate is 7% lower than the rolled back tax rate of 5.222 mills. The tax rate for the General
Obligation Bond of .3071 mills debt service is slightly higher due to the lower assessed taxable value
against relatively stable debt service costs. The combined tax rate for FY 11-12 is 5.1697 mills vs. 5.1536
mills in FY 10-11.
For the single family homeowner, the average reduction in City property taxes will be approximately $50.
The property owner with a $175,000 home adjusted for the 1.5% Save Our Homes inflation adjustment
and the $50,000 homestead exemption would pay approximately $16 more in CITY property taxes.
Approximately one-third of residential property owners fall into this category.
Excluding new construction of $30.2 million, the City’s tax base declined by $133 million or 7%, which
was due to the decline in market values. Some of this decrease was offset by the 1.5% Save Our Homes
inflation adjustment for approximately half of all residential property owners.
The total proposed General Fund budget is $23,353,462, which is $362,000 or 1.5% less than the FY 10-
11 adopted budget of $23,715,047.
General Fund operating revenues (excluding transfers and fund balance) are $627,000 or 2.9% lower
than FY 10-11. Of this amount, $443,000 is due to lower property tax revenue and $184,000 is related to
lower non-ad valorem revenues. Increased transfers from several funds that are used to offset General
Fund costs are higher by $272,000. The higher transfer amounts are found in the Water/Wastewater
Operating Fund (+$200,000), Building Services Fund (+$28,000), Local Option Gas Tax Fund ($+25,000)
and the Solid Waste Fund (+$30,000 - recycling revenue). The fund balance appropriation of $193,000 is
$21,000 less than the amount appropriated in the FY 11 adopted budget.
General Fund expenditures are $362,000 or 1.5% lower than FY 10-11. The major increases include
higher City contributions for the Police and Fire pensions, a 2% wage adjustment for General Employees
effective April 1, 2012, the addition of a temporary Planner to rewrite the Land Development Code, higher
Fire Department overtime ($317,000 in FY 11 based on the adaptive response model vs. $375,000 with the
3 full time firefighter “overhires”). The major decreases include the budget reduction measures outlined
above, operating expense reductions of $131,000, the 5% decrease in health insurance premiums and other
personnel cost reductions such as the elimination of a vacant Fire Inspector position, recalculation of
Police holiday pay and reallocation of engineering staff to the Stormwater Utility Fund.
Excluding the impact of the Police Dispatch consolidation, the size of the City workforce for FY 11-12
with 266 authorized positions is essentially unchanged from the prior year. The workforce (both full time
and seasonal) has been reduced by 70 positions since FY 06-07 and is at the same level for regular full
time and part time positions as in FY 03-04.
The FY 11-12 total payroll (salaries and benefits) for all operating funds of $17,941,000 is $248,000 or
1.4% less than the total adopted payroll for FY 10-11. The lower payroll includes the higher City
contributions for the Police and Fire pensions and higher Fire Department overtime and funding for a 2%
wage increase for Police bargaining unit members and General Employees that would be granted at midyear.
The total proposed budget for all City funds combined of $64.2 million (exclusive of inter-fund transfers
and internal service operations) is $1.3 million or 2% less than the FY 10-11 total adopted budget. The
decrease is due mainly to lower appropriations for capital improvements as projects reached completion in
FY 10-11.
The remaining portion of the transmittal letter presents more detailed analysis of the budget, including more
detailed analysis of the tax base, General Fund revenues, expenditures and fund balance. Following the General
Fund analysis are summary discussions about the City’s workforce and total payroll, the Water/Wastewater
Operating Fund, the Capital Improvements Program and several other funds.
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