FY 2011-12 Adopted Budget - City of Oviedo

Cash Reserves (Utility Operating Fund)
Based on preliminary revenue and expenditure estimates, the projected cash position at September 30, 2011 is
projected at $4.17 million, which is equal to approximately 144 days of operating and debt service expenses or a
39% reserve. This cash reserve level compares favorably to the 90 day or 25% minimum requirement as required
by City financial policy. Nonetheless, as reclaimed water becomes more prevalent in future years, potable water
consumption and related revenues are expected to decrease. This circumstance will be evaluated as part of the
updated rate analysis to determine the impact on cash reserves and debt service coverage in future years. At
September 30, 2010, debt service coverage factor was 2.34 - in other words net utility revenues were more than
twice the total debt service requirement, which compares favorably to the 1.1 minimum requirement.
CAPITAL IMPROVEMENTS PROGRAM (CIP)
The 5 Year Capital Improvements Program was reviewed by City Council on June 27, 2011 and serves as a blueprint
for future capital improvements over the next five year period. The total funding commitment appropriated for FY
11-12 from various dedicated funding sources for capital improvements is approximately $14.4 million (including
$1.7 million to complete four carryover projects from FY 10-11). Of this amount, $5 million is related to right of
way acquisition for the SR426 realignment and intersection improvements at SR 434. Other significant projects
scheduled for FY 11-12 include:
Resurfacing 6.2 miles of City-maintained roads.
Tank rehabilitation and reclaimed filtration at the Alafaya Wastewater Treatment Plant.
Odor control improvements at the Alafaya Plant and completion of radio read meter installations.
Site analysis and initial design of a new Police Headquarters facility.
Construction a reclaimed water distribution system in Twin Rivers Phase I and Big Oaks.
Construction of the Aulin Avenue and McKinnon Avenue south stormwater improvements.
Construction of sidewalk and drainage improvements in the Washington Heights/Johnson Hill
neighborhood (i.e. Jackson Heights Middle School vicinity).
OTHER FUNDS
Economic Development ($340,188 total budget)
With most of the one-time tasks related to the ED Strategic Plan completed, the proposed $67,000 contract with
Land Design Innovations (LDI) will focus on working with the Oviedo-Winter Springs Business Advocacy Group,
business recruitment and retention and development of Seminole Way. Other contractual expenses for FY 11-12
include $250,000 that is set aside for economic development incentives and impact fee assistance and $12,000 for
grants research and preparing grant submissions.
Building Services ($781,910 total budget)
FY 10-11 was the first full year of outsourcing Building Services to a private company that started in February
2010. The contract is based on sharing of gross revenues whereby the City receives 23% of gross revenues from
permit and plan review fees and the contractor receives 77%. The City is responsible for a variety of miscellaneous
operating expenses and overhead costs such as utilities, insurance and telephones that are estimated at $28,641 for
FY 12. FY 11-12 revenues are based at the same level projected for the current fiscal year excluding revenues
derived from the Covington Club multifamily project or $781,910. The City's revenue share for FY 11-12 is
estimated at $175,000, which includes one-time revenue of $2,000 per month or $24,000 contributed by the
contractor as a contract cost reduction. This will allow for a transfer to the General Fund of approximately
$150,000 if revenue estimates are accurate.
Stormwater Utility ($2,801,787 total budget)
Both maintenance and capital improvement projects will be funded from the $7.00 Stormwater Utility Fee ($7.00
per equivalent residential unit (ERU) per month). The Stormwater Utility Fee revenue will generate approximately
$1.5 million at the $7.00 per ERU monthly fee. The FY 11-12 budget will also be supported by $1,230,000 of fund
balance (appropriation of reserves), which is required to fund planned capital improvements.
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