Town of Orange Park 2025-2026 Adopted Budget.pdf

ADOPTED

ANNUAL

BUDGET

TOWN OF ORANGE PARK, FLORIDA

FISCAL YEAR

2025-2026

MISSION STATEMENT

To provide safety, security, and e�ective services for residents, in a viable and sustainable community that preserves and improves our town’s heritage for present and future generations.

VISION STATEMENT

The Town of Orange Park will strive to promote an engaged and sustainable small town community in which our residents can live, work, and raise a family by providing environmentally safe services, varied sources of recreation, a well-balanced economic atmosphere, e�cient public facilities, and reasonable taxes through e�ective and responsive leadership.

CORE VALUES

Integrity, accountability, transparency, ethics, and economic stewardship

Page

Mayor and Town Council 1

Town Administration 2

Town Manager's Budget Message 3

Basis of Accounting and Budgeting 8

Budget Calendar 11

Organization Chart 12

Personnel Summary 13

Section 1 Budget Summary: All Funds

Budget Summary: all funds 15

Revenues: all funds 16

Uses: all funds 17

Pension Costs 18

Health Insurance Costs 20

Contingencies & Fund Balances, and Budget Policies 21

Transfers between funds 27

Section 2 Budget Summaries by Fund

Description of Major Funds 29

A: General Fund

General Fund Revenues v. Uses 31

General Fund Revenues Graph 32

Property Tax Digest Graph 33

Property Tax Collections Graph 34

Major General Fund Revenue Sources Graph 35

Where Your Tax Dollar Goes 36

Half Cent Sales Tax Graph 37

State Revenues Graph 38

Communications Services Tax Graph 39

Franchise Fees Graph 40

Utility Service Taxes Graph 41

General Fund Uses By Department Graph 42

General Fund Uses By Function Graph 43

Administration 44

Finance 46

Police 48

Fire 50

Economic & Community Development 52

Table of Contents for 2025-2026 Budget

Table of Contents for 2025-2026 Budget

Public Works 54

Non Departmental 56

General Fund Budget Detail 57

B: Water & Sewer

Water & Sewer Positions 84

Water & Sewer Fund Summary 85

Water & Sewer Revenues 86

Water Sales Volumes 87

Water & Sewer Uses 88

Revenues and Uses over 10 years 89

Water & Sewer Fund Budget Detail 90

C: Stormwater

Stormwater Positions 106

Stormwater Fund Summary 107

Stormwater Fund Budget Detail 108

D: Special Revenue Funds

Special Revenues Funds Summary 112

Special Revenues Funds Budget Detail 113

Section 3 Capital Improvement Program

Sales Tax Fund Revenues Graph 122

Sales Tax Revenues & Uses Summary 123

Gas Tax Fund Revenues Graph 124

Gas Tax Revenues & Uses Summary 125

Water & Sewer Capital Fund Revenues & Uses Summary 126

Capital Improvement Projects 127

Sales Tax Capital Projects Fund Budget Detail 133

Town Council

Councilman Glenn Taylor Councilman Doug Benefield

Vice-Mayor Winnette Sandlin Councilman Kenneth Vogel

Mayor Randy Anderson

Town of Orange Park

Administration

Officers

Acting Town Manager John Villanueva, C.P.A.

Town Attorney Lawsikia Hodges

Town Clerk Courtney Russo

Department Heads

Finance Director John Villanueva, C.P.A.

Police Chief Randy Case

Fire Chief John Contestabile

Economic & Community Development Director Stephen Smith

Public Works Director Kyle Croce

Memorandum

From: William R. Whitson, Interim Town Manager

To: Mayor & Council

Subject: Budget transmittal Memo

Date: August 1, 2025

The purpose of this memorandum is to transmit the initial draft of the proposed FY2025/26 Budget for the Town of Orange Park to the Town Council for review and evaluation. All funds accounted for, the budget is approx. $40,488,172. The Town also has a reserve balance or savings account of $11,886,959 as of the September 30, 2024 audit. Please note that Council policy and proper fund accounting and management require that we maintain certain pre-set fund balances for such fund reserves to be maintained throughout the year.

Funds that compose the Budget includes the following:

General fund = $14,541,066 Water/Sewer fund = $7,347,131 Stormwater fund = $15,390,084 Sales Tax Capital Improvement fund = $1,476,800 Special Revenue funds = $1,733,091

Budget Total = $40,345,172

Background- TRIM ACT Compliance

In the State of Florida, the budget adoption process for local governments is established by the Florida Legislature through the Truth in Millage or (TRIM) Act. This process requires the Town Council to adopt and transmit a preliminary tax rate and then a final tax rate. The final tax rate to be adopted prior to the end of September of each year becomes the final official tax rate to support the Town Budget.

On July 15, 2025, I proposed a tentative millage rate be transmitted to the County of 6.550 mills. That preliminary rate was approved by the Council 4-1 vote, which would have been a 14.9% increase over the previous FY24/25 rate of 5.7mills.

However, at this point, I am happy to report that the budget is now balanced at a lowered general fund millage rate of 6.1000. This proposed rate, as we discussed, is 6.8% lower than the first preliminary rate. However, if council desires to further rollback the millage rate, additional decisions and directions on various salary proposals (union negotiations), program cuts and service level reductions will have to be made. I highly recommend that the Council and the public study the history chart provided to the Council for the July 15th millage rate discussion, which clearly shows a pattern of operating costs rising faster than Town revenues over the last several years.

A list of decision modules will be outlined in Attachment A to this memorandum. Tackling these tough decisions head on from a MUST HAVE vs. a NICE TO HAVE point of view would be my recommendation to Council. It’s only in this way that Orange Park can reach a consensus between the overall tax rate/budget size and the mix of services you deem best for the Town.

In fact, the staff has done much of this by reducing expenses by 2-3% from Dept. Head original asks. In addition, management has negotiated a potential 30% health Insurance rate increase for Town employees from Florida Blue down to 8.5%. This was a savings to the Town of approx. $180,000. Our team has further slashed overtime requests from the Departments by 10% in the general fund. Please note that additional reductions in overtime are potentially available in the enterprise funds. Yet, IF budget expenses can be lowered further and expenses reduced again, serious examination of each Dept. budget should be carried out. Of course, my caution in this effort would be for citizens and Council to carefully balance the impact of citizen service demands vs. sustainability. This is especially true for operations such as Police, Fire and Utilities where unpredictable emergencies can often arise. This task (finding the correct balance for Orange Park) will not be easy.

However, it is essential to bring revenues in line with anticipated expenses.

Utility Rates and Service Fees:

In addition to the millage rate, Council should also address the issue of utility rates which have not been adjusted in seven years even though our costs of service delivery have steadily climbed. The proposed budget provides for a 5% utility rate increase for water/sewer. The Town Council should also consider a $1 rate adjustment for the stormwater fee. Again, this seems fair and appropriate, especially when evaluating our rate structure to other providers in our geographic area as well as new capital initiatives desired by the Town like Johnson Slough.

Management has also noted a whole series of service areas where the Town is basically subsidizing the customers who call on the Town for services. Some examples include business alarm response by the Police Dept, utility turn on and turn offs for initial service or in some cases non-payment, heavy patient lift assists to nursing homes by the Fire Dept.

Fees are either non-existent or have not been adjusted in nearly 8-9+ years. Town staff are prepared to discuss these situations (at my request) in detail as part of the budget process.

This is primarily due to the lack of policy regarding cost recovery over the years and the fact that fees have not been adjusted in many years to match rising costs. In other words, what is the Council policy on cost recovery for each of those services? Staff are prepared to offer recommendations to close the gaps, however, doing so would require Ordinance changes.

Directions to proceed in this manner should come from the Council.

Johnson Slough Drainage Project

A major public initiative to address the public health, welfare and safety of the Town citizens is represented by the Johnson Slough Drainage project. As you know a reimbursable grant with a 50/50 match requirement for up to $14M has been provided to the Town for implementing this project. It should be noted that in order for the Town to meet this obligation the Town will have to borrow the funds to move forward with the design/build contract award and meet the grant deadline of July 31, 2026. The RFP for seeking the lowest cost bank loan to support that effort is now underway. The payment structure for the bank loan has been estimated and will be a decision module which should be factored into the final budget. It is my recommendation that the Council proceed on schedule. The various steps have been reviewed by legal Council and will be programed into the final budget as we have communicated previously.

In closing, the budget workshop schedule is outlined below, and we have been making preparations to address each of the budget pieces in the order outlined. The Johnson Slough Project schedule for the loan proceeds and that of the fire dept. ladder truck request will also be covered and addressed.

Copy: Dept. Heads Town Attorney Greg Becker

AUGUST 2025

W 6 Budget workshop #1 - 6:00 PM Public Safety is held with the Budget & Finance Committee for direction & changes.

Budget & Finance committee, Town Mgr, Finance, Depts

M 11 Town Council Meeting - 5:30 PM PRAG/Town Manager recommendation

Budget workshop #2 - 6:30 PM Public Works is held with the Budget & Finance Committee for direction & changes.

Town Council, Budget & Finance

Committee, Town Mgr, Finance, Depts

TH 21 Budget workshop #3 - 6:00 PM Admin/ECD/Finance is held with the Budget & Finance

Committee for direction & changes.

Town Council, Budget & Finance

Committee, Town Mgr, Finance, DeptsSEPTEMBER 2025

W 3 The Town Council holds public hearing #1 on the 2025-2026 millage and operating budget. Town Council, Town Mgr, Finance

TH 11 Deadline for Operating Budget ad to be published for public hearing #2. Finance

T 16 The Town Council holds public hearing #2 on the 2025-2026 millage and operating budget. Town Council, Town Mgr, Finance

TH 25 The final CIP and operating budgets are published and distributed. Finance

OCTOBER 2025

W 1 The 2025-2026 fiscal year begins.

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BASIS OF ACCOUNTING & BUDGETING

BASIS OF ACCOUNTING

The financial statements of the Town of Orange Park, Florida (the Town) are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

Reporting Entity

The Town was first incorporated on February 18, 1879. There was considerable controversy over the original date of incorporation, so the Florida Legislature passed Bill Number 86 on June 1, 1981, to confirm the 1879 Act. The Town operates under an elected mayor-council form of government under the administration of an appointed Town Manager and provides the following services: police and fire rescue services, street maintenance and construction, water and sewer services, sanitation, stormwater, planning, zoning, culture and recreation, and economic development.

Basic Financial Statements

The government-wide and fund financial statements, along with the notes to the financial statements, comprise the basic financial statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The Statement of Activities demonstrates the degree that direct expenses of a given function or activity are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include:(1) charges to customers or applicants who purchase, use, or directly benefit from goods; (2) services or privileges provided by a given function or segment; and (3) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the

Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

However, debt service expenditures, as well as expenditures related to compensated absences, other postemployment benefits (OPEB), pension expense, and claims and judgments, are recorded only when payment is due.

Taxes, licenses and permits, intergovernmental revenue, charges for services, and investment earnings associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

Governmental funds are those funds through which most governmental functions typically are financed.

The measurement focus of governmental funds is on the sources, uses, and balance of current financial resources. The Town has presented the following governmental funds:

■ Major Governmental Funds―The General Fund is the Town’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Capital Projects - Sales Tax Fund is also considered a major fund. This capital projects fund accounts for resources accumulated and payments made for the acquisition and construction of major capital facilities.

■ Non-Major Governmental Funds―Special Revenue Funds account for revenue sources that are legally restricted to expenditures for specific purposes. Non-major special revenue funds include the Gas Tax

Fund, Confiscated Property Fund, Police Education Fund, Magnolia Cemetery Fund, Police Investigative and Evidentiary Fund, Building Department Fund, and the Fair Share Fund.

Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. The accounting objectives are determination of operating income and changes in net position, financial position, and cash flow. All assets, deferred outflows, liabilities, and deferred inflows are included on the Statement of Net Position. The Town’s proprietary funds are all classified as enterprise funds. The Town has presented the following proprietary funds:

Major Proprietary Funds―The Water and Sewer Fund accounts for the activities of the Town’s water distribution system, sewage treatment plant, sewage pumping stations, and collections systems. The

Stormwater Fund accounts for the operations and maintenance of the Town’s stormwater management system.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the

Town’s enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets and amortization of intangible assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

BUDGETS AND BUDGETARY ACCOUNTING

Annual appropriated budgets are adopted for all funds. The legally adopted budgets are prepared on a basis consistent with GAAP.

The Town’s procedures in establishing the budgetary data reflected in the financial statements generally are as follows:

On or before August 1, the Town Manager submits to the Town Council a proposed operating budget for the fiscal year commencing the following October. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to

October 1, the budget is legally enacted through passage of an ordinance. Budget changes during the fiscal year are approved by the Town Council. Appropriations lapse at the end of the fiscal year. Expenditures may not legally exceed appropriations for each budgeted department of the Town; however, the Town

Manager is authorized to transfer budgeted amounts within a department. The legal level of budgetary control is the department level.

The budgets are integrated into the accounting system. The budgetary information presented for the

General Fund is prepared on the modified accrual basis of accounting. Accordingly, the budgetary comparison schedule for the General Fund presents actual expenditures in accordance with GAAP on a basis consistent with the legally adopted budget as amended.

A more detailed schedule of the Town’s budgeting process is presented on the following page.

ACTIVITY PARTICIPANTS

JANUARY 2025

W 15 Budget guidance memo is issued. Town Mgr, Finance

FEBRUARY 2025

T 11 First draft of Department Workplans due to the Town Manager Depts

W 12 The Town Manager holds a kick-off meeting on the 2025-2026 budgets with Department Heads.

Budget calendars handed out.

Town Mgr, Depts

MARCH 2025

TH 6 The finance department distributes CIP worksheets to all departments. Town Mgr, Finance, Depts

TH 27 The operating budget request time period begins for all departments. Finance, Depts

APRIL 2025

M 7 The department heads return CIP worksheets to the finance department. Finance, Depts

M 14 The finance department submits CIP requests to the Town Manager. Town Mgr, Finance

T-F 15-25 The Town Manager meets with the department heads on the CIP requests. Town Mgr, Finance, Depts

MAY 2025

M 12 All operating budget requests are due from the departments to finance. Finance, Depts

W-TH 5/14-6/12 The Town Manager meets with the department heads on the operating budget requests. Town Mgr, Finance, Depts

F 16 The Town Manager submits the CIP to the Town Council. Town Mgr

F-F 5/23-7/18 The Town Manager and the finance depatment prepare the proposed operating budget. Town Mgr, Finance

JUNE 2025

T 3 The Town Manager formally presents the CIP to the Town Council. Town Mgr

TH 5 Deadline for CIP ad to be advertised for the public meeting. Finance

T 24 A public hearing and the adoption of the CIP takes place at Town Council meeting. Town Mgr, Finance

JULY 2025

TH 17 The Town Council sets the tentative millage rate for 2025. Town Council, Town Mgr, Finance

F 25 The proposed operating budget is printed, copied, and published. Finance

TH 31 The Town Manager submits the 2025-2026 proposed operating budget to the Budget & Finance committee and the Town Council.

Town Mgr

AUGUST 2025

W 6 Budget workshop #1 - 6:00 PM Public Safety is held with the Budget & Finance Committee for direction & changes.

Budget & Finance committee, Town

Mgr, Finance, Depts

M 11 Town Council Meeting - 5:30 PM PRAG/Town Manager recommendation

Budget workshop #2 - 6:30 PM Public Works is held with the Budget & Finance Committee for direction & changes.

Town Council, Budget & Finance

Committee, Town Mgr, Finance, Depts

TH 21 Budget workshop #3 - 6:00 PM Admin/ECD/Finance is held with the Budget & Finance Committee for direction & changes.

Town Council, Budget & Finance

Committee, Town Mgr, Finance, Depts

T 26 Budget workshop #4 - 6:00 PM Budget & Finance Committee formulates official recommendations to the Town Council.

Town Council, Budget & Finance

Committee, Town Mgr, Finance, DeptsSEPTEMBER 2025

W 3 The Town Council holds public hearing #1 on the 2025-2026 millage and operating budget. Town Council, Town Mgr, Finance

TH 11 Deadline for Operating Budget ad to be published for public hearing #2. Finance

T 16 The Town Council holds public hearing #2 on the 2025-2026 millage and operating budget. Town Council, Town Mgr, Finance

TH 25 The final CIP and operating budgets are published and distributed. Finance

OCTOBER 2025

W 1 The 2025-2026 fiscal year begins.

TOWN OF ORANGE PARK FY 2025-2026 BUDGET CALENDAR

DATE(S)

Town Employee Totals: 105 Full time (FT); 15 Part time (PT)

Town Residents

Randy Anderson Mayor

Winnette

Sandlin

Vice-Mayor

Doug Benefield Councilman

William Whitson Interim Town

Manager

Kyle Croce

Public Works Director

Randy Case

Police Chief

John Contestabile

Fire Chief

John Villanueva Finance Director

Courtney Russo

Town Clerk

Stephen Smith Economic & Community

Development Director

Glenn Taylor Councilman

Kenneth Vogel Councilman

Position History Report

DEPARTMENT

FT PT FT PT FT PT FT PT FT PT

EXECUTIVE/LEGISLATIVE

Town Council 0 5 0 5 0 5 0 5 0 5

Town Manager 1 1 1 1 1

Town Clerk 1 1 1 1 1

Administrative Assistant 1 1 1 1 1

Human Resources 0 0 1 1 0 1

Total 3 5 3 5 4 5 4 5 3 6

ECONOMIC &COMMUNITY DEVELOPMENT

Economic Development Director 1 1 1 1 1

Building Permit Clerk 1 1 1 1 1

Events Coordinator 1 1 1 1 1

Total 3 0 3 0 3 0 3 0 3 0

FINANCE

Finance Director 1 1 1 1 1

Accountant 1 1 1 1 1

AP/Payroll Clerk 1 1 1 1 1

Accounts Recievable 1 1 1 1 1

Utilty Billing Clerk 1 1 1 1 1

Total 5 0 5 0 5 0 5 0 5 0

FIRE

Fire Chief 1 1 1 1 1

Deputy Chief/Fire Marshal 1 1 1 1 1

Captain 3 3 3 3 3

Rescue Lieutenant 3 3 3 3 3

Lieutenant 0 0 0 0 0

Firefighter/Para/EMT 12 12 12 15 15

Administrative Assistant 0 0 1 1 1

Total 20 0 20 0 21 0 24 0 24 0

FY 25-26FY 24-25FY 23-24FY 22-23FY 21-22

Position History Report

DEPARTMENT

FT PT FT PT FT PT FT PT FT PT

FY 25-26FY 24-25FY 23-24FY 22-23FY 21-22

POLICE

Police Chief 1 1 1 1 1

Assistant Police Chief 1 1 1 1 1

Lieutenant 1 1 1 1 1

Administrative Sergeant 0 0 0 0 0

Administrative Assistant 1 1 1 0 0

Code Enforcement 2 2 2 2 2

Communications Supervisor 1 1 1 1 1

Dispatcher 6 6 6 6 6

Dare Officer 1 0 0 0 0

Detective 3 3 3 3 3

Sergeant 4 4 4 4 4

Corporal 4 4 4 4 4

School Resource Officer 3 3 3 3 3

Patrol Officer 8 8 8 8 8

Crossing Guards 0 8 0 8 0 9 0 9 0 9

Property/Evidence Custodian 0 0 1 1 1 1

Management Analyst 0 0 0 1 1

Total 36 8 36 8 36 9 36 9 36 9

PUBLIC WORKS

Public Works Director 1 1 1 1 1

Management Analyst 0 0 0 0 1

Executive Assistant 1 1 1 1 0

Administrative Assistant 1 1 1 1 1

Lead Vehicle Mechanic 1 1 1 1 1

Vehicle Mechanic 1 1 1 1 1

Operations Superintendent 1 1 1 1 1

Manager-Facilities/Parks 0 0 0 0 0

Manager-Streets/Vehicle Maintenance 0 0 0 0 0

Streets Operator 5 5 5 5 5

Stormwater Operator 3 3 3 5 5

Parks Operator 7 7 7 7 7

Utilities/CIP Manager 1 1 1 1 1

Utility Operators 4 4 4 4 4

Utility Field Technicians 3 3 3 4 4

Utility Trainee 1 1 1 0 0

Utility Mechanic 2 2 2 2 2

Grants Project Manager 0 1 0 1 0 0 0 0 0 0

Capital Projects Manager 0 0 0 0 0

Total 32 1 32 1 32 0 34 0 34 0

GRAND TOTAL 99 14 99 14 101 14 106 14 105 15

Annual Budget

Section 1

Budget Summary -All Funds

2022-2023 2023-2024 2024-2025 2025-2026

Actual Actual Budget Budget

Revenue

General Fund 12,411,946 13,542,259 13,648,998 13,992,767

Special Revenue Funds 1,285,765 1,342,211 1,249,170 1,207,753

Sales Tax Capital Projects Fund 1,391,912 1,660,982 1,933,000 1,586,800

Water & Sewer Fund 4,742,959 5,015,608 4,754,400 4,997,900

Stormwater Fund 429,378 888,192 891,974 15,539,500

Total Revenues 20,261,960 22,449,253 22,477,542 37,324,720

Transfers In 559,400 702,320 577,400 608,492

559,400 702,320 577,400 608,492

TOTAL SOURCES 20,821,360 23,151,573 23,054,942 37,933,212

2022-2023 2023-2024 2024-2025 2025-2026

Actual Actual Budget Budget

Uses

Operating Budget

General Fund 11,723,247 12,721,160 16,782,243 14,593,644

Special Revenue Funds 784,526 1,278,469 2,437,861 1,626,500

Sales Tax Capital Projects Fund 754,261 723,771 4,427,421 1,546,800

Water & Sewer Fund 4,318,226 4,100,314 11,346,117 6,845,231

Stormwater Fund 349,396 406,395 5,396,683 15,390,084

Total Operating Budget 17,929,656 19,230,110 40,390,325 40,002,259

Transfers to Other Funds 559,400 702,320 577,400 608,492

Other Uses 14 12 0 0

559,414 702,332 577,400 608,492

TOTAL USES 18,489,070 19,932,442 40,967,725 40,610,751

TOTAL SOURCES LESS TOTAL USES 2,332,290 3,219,131 (17,912,783) (2,677,539)

ALL FUNDS BUDGET SOURCES AND USES

General Fund 13,992,767$

Special Revenue Funds 1,207,753

Sales Tax Capital Projects Fund 1,586,800

Water & Sewer Fund 4,997,900

Stormwater Fund 15,539,500

Transfers In 608,492

TOTAL 37,933,212$

ALL FUNDS BUDGET REVENUES

General Fund 36.89%

Special Revenue Funds 3.17%

Sales Tax Capital Projects Fund

4.39%

Water & Sewer Fund

13.18%

Stormwater Fund

40.97%

Transfers In 2.13%

General Fund 14,593,644$

Special Revenue Funds 1,626,500

Sales Tax Capital Projects Fund 1,546,800

Water & Sewer Fund 6,845,231

Stormwater Fund 15,390,083

Transfers to Other Funds 608,492

TOTAL 40,610,750$

ALL FUNDS BUDGET USES

General Fund 52.23%

Special Revenue Funds 4.01%

Sales Tax Capital Projects Fund

3.81%

Water & Sewer Fund

16.86%

Stormwater Fund 37.90%

Transfers to Other Funds 1.50%

Town of Orange Park Pension Plan Costs

The Town provides three pension plans for employees retirements: Police, Fire, and General Employees' Pension

Plans. Each plan is invested in a different fund, with varied benefit levels, investments, and managed by different firms. The Police and Fire Pension Plans are overseen by boards made up of plan participants and Town residents appointed by the Town Council. The General Employees' Plan is managed by the Florida Municipal

Pension Trust.

The graph below shows the Town's annual contributions to each of the funds since 2014. All three plans have been amended in recent years to reduce the cost to the Town.

In recent years, lower investment returns and increased wages have increased the cost to the Town.

Police

Police

Police

Police

Fire

Fire

Fire

Fire

General General General

General

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26

Pension Cost to Town for Each Fund

Town of Orange Park Pension Contribution History

In addition to Town contributions to the pension plans, insurance premium taxes are received through the State of Florida for Police and Fire Pension Plans. All employees also contribute to their respective plans.

The graph below shows the total contributions by the Town to all of the funds in comparison to the insurance premium taxes and employee contributions since 2015.

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26

C o n tr ib u ti o n s

Pension Contribution History - All Plans

Town State Members

The Town provides access to medical, dental, vision, life, and supplemental insurance for employees and their dependents, and Town retirees.

The Town pays for basic coverage for the employee only for medical, dental and life insurance. Other plans and benefit levels are available to them for additional costs. The

Town does contribute a fixed percentage toward dependent medical and dental coverage.

The Town switched medical providers in FY 15-16 to avoid increasing costs. The Town changed again in FY 17-18, FY 20-21 and FY 24-25 to further mitigate climbing costs. In addition, the benefit plans were redesigned to reduce benefit levels and increase employee premiums. In FY 25-26 the Town remained with the same carrier resulting in a

8.5% increase (originally quoted at a 30% increase) in premiums over the prior fiscal year.

Life & Health Insurance

$654,110 $665,903

$804,779

$979,440

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26

Life & Health Insurance

CONTINGENCIES

The Town Council adopted a contingency policy in November 2017 which is outlined below:

I. Purpose and Scope

The Contingency Policy (or “Policy”) is intended to ensure that sufficient financial resources are maintained for revenue shortfalls, unplanned but necessary expenditures, or operating changes that occur outside of the planned operating budget. The Policy is also intended to preserve flexibility throughout the fiscal year to make adjustments in funding for programs and services approved in connection with the annual operating budget.

The following policies have been established to provide flexibility in the annual operating budget so that budget amendments are not always necessary for unforeseen and unanticipated expenses.

A. At the discretion of the Town Council, contingency expense account(s) may be established for the General Fund, the Water & Sewer Fund and the Stormwater Fund.

B. It is anticipated that the contingency amount(s) will not exceed 1 percent (1%) of the total expenditures currently budgeted (through all budget amendments at the time) for the General Fund, the Water & Sewer Fund and the Stormwater Fund.

C. The discretionary use of the contingency fund(s) lies with the Town Manager, who may use the funds primarily for unforeseen expenditures.

D. For significant uses of the contingency fund (single expenditures exceeding $25,000) the Town Manager shall be required to obtain Council approval.

E. For this policy funds 401, 402, 403, 406 and 410 are considered one fund called the “Water & Sewer Fund.”

II. Reservation of Authority

A. The authority to issue or revise this policy is reserved to the Town Council of Orange Park.

B. All levels of management have the responsibility to see that the policy is enforced within their organization.

The contingency amounts for the 2025-2026 budget based on the Contingency Policy are:

General Fund $ 20,000 Water & Sewer Fund $ 25,000 Stormwater Fund $ 5,000

FUND BALANCE POLICY

The Town established a fund balance policy (POL-FB-2011-3) on August 2, 2011 which was revised on June 19, 2012 and on September 17, 2019.

I. Purpose:

For increased financial stability, the Town of Orange Park, Florida desires to manage its financial resources by establishing fund balance ranges for selected funds. This will ensure the Town maintains a prudent level of financial resources to protect against reducing service levels or raising taxes and fees because of temporary revenue shortfalls or unexpected one-time expenditures/expenses. To protect the Town from the uncertainty of economic and fiscal downturns, the Town should strive to maintain its fund balances/net assets at the higher end of the identified ranges.

II. Fund Balance/Net Asset Range:

Fund balance/net asset ranges are established for General, Utility, and Stormwater funds.

The amounts set for each fund are based on the predictability of revenues, volatility of expenditures/expenses, and liquidity requirements of each fund and may need to be reviewed periodically.

In calculating the ratio of unassigned fund balance/unrestricted net assets to budgeted expenditures/expenses, the latest audited financial statements shall be compared with the budget in effect when the financial statements are released. In essence this will mean the current year budgeted expenditures/expenses will be compared with the prior year’s unassigned fund balance/unrestricted net assets.

The Sales Tax, Gas Tax, Confiscated Property, Police Education, Magnolia Cemetery, Police Investigative/Evidentiary, Fair Share funds, and any other governmental funds do not have fund balance ranges. Fund balances in these funds are dictated by restricted, committed, assigned revenue sources and schedule of capital projects.

III. General Fund:

The fund balance range for the General Fund shall be not less than 33% (4 months) and not more than 67% (8 months) of the total budgeted expenditures of the General Fund budget.

IV. Utility (Water and Sewer) Fund:

The unrestricted net asset balance range for the Utility Fund shall be not less than 33% (4 months) and not more than 67% (8 months) of the total budgeted operating expenses including water and sewer debt repayment, bond coverage, and transfer/charges to the other funds, but excluding depreciation.

V. Stormwater Fund:

The unrestricted net asset balance range for the Stormwater Fund shall be not less than 33% (4 months) and not more than 67% (8 months) of the total budgeted operating expenses including stormwater debt repayment, bond coverage, and transfer/charges to other funds, but excluding depreciation.

A. Because this fund was only recently created, the balance shall be accumulated over time to meet the minimum requirement as follows:

October 1, 2020 5% October 1, 2021 10% October 1, 2022 15% October 1, 2023 20% October 1, 2024 25% October 1, 2025 33%

Adherence to the above listed schedule shall not require the shortfall mechanism outlined in Section VII below.

VI. Surplus:

If it is determined there is a surplus (an amount in excess of the upper limit of the fund balance range for any fund), the funds are to be appropriated during the budget process for any of the following purposes:

A. Any General Fund surplus shall be used to cover anticipated shortfalls within a Department for the provision of Town services.

B. Reduction or avoidance of debt. If there is short-term debt within the General Fund or Capital Projects Fund the surplus may be applied to reduce or eliminate the debt if financial analysis proves this to be advantageous for the Town. If a borrowing is scheduled, the surplus may be used to reduce the principal amount the Town needs to obtain if financial analysis proves this to be advantageous for the Town.

C. Applied to a capital replacement program. Surplus funds may be used to supplement or enhance a capital replacement program such as vehicle, personal computer, or heavy equipment replacement, or any other capital replacement program initiated by the Town.

D. One-time capital needs. Since a surplus does not represent a recurring source of revenue it should not be used to fund a recurring expense; however, if a one-time capital expenditure has been identified, but not already funded through an appropriation, the surplus may be appropriated for this use.

E. Tax, fee, or rate stabilization. Surplus funds may be designated for stabilization in order to avoid raising taxes, fees, or rates related to the fund in subsequent years.

VII. Shortfall:

If it is determined there is a shortfall (an amount below the lower limit of the fund balance/net asset range for any fund), the fund balance or net assets is to be rebuilt through the following mechanism:

An appropriation during the next annual budget process of at least 20% of the shortage below the lower limit of the fund balance/net assets range until the lower limit has been reached. If this is financially infeasible, a written plan shall be forwarded by the Town Manager to the Council for approval in order to restore the fund balance or net assets to an amount within the range within a reasonable time frame. This plan may require reduction of services, increases in taxes, fees, or rates, or some combination thereof.

VIII. Definitions:

Fund Balance: Fund balance means the difference between fund assets and fund liabilities. Fund balance is referred to as net assets in an enterprise fund.

Restricted Fund Balance: Restricted fund balance is the portion of fund balance that is legally restricted and is not available for appropriation or expenditure.

Committed Fund Balance: Committed fund balance represents amounts that can be used only for specific purposes because of a formal action by the Town Council.

Assigned Fund Balance: Assigned fund balance is the residual fund balance of all governmental funds except the General Fund. In the General fund it is amounts intended to be used for specific purposes, but do not meet the criteria for restricted or committed. Intent is stipulated by the Town Council or official to whom that authority has been given by the Town Council.

Unassigned Fund Balance: Unassigned fund balance represents available financial resources which have not been restricted, committed, or assigned to a specific purpose in the General Fund.

Net Assets: Net assets mean the difference between fund assets and fund liabilities in an enterprise fund.

Restricted Net Assets: Restricted net assets are equivalent to restricted fund balance.

That is the amounts are legally restricted and are not available for appropriation or expense.

Net Assets Invested in Capital Assets, net of related debt: This represents capital and intangible assets less accumulated depreciation/amortization less outstanding debt that are attributable to acquisition, construction or improvements of those assets.

Unrestricted Net Assets: Unrestricted net assets in enterprise funds are roughly equivalent to unassigned fund balance in governmental funds. It is calculated as total net assets less restricted nets assets less invested in capital assets, net of related debt.

Fund Balance/Net Asset Range: Fund balance/net asset range is the range of amounts this policy has set within which the Town means to maintain the unassigned fund balance or unrestricted net assets.

Surplus: Surplus is the amount by which unassigned fund balance or unrestricted net assets exceed the upper limit of the range.

Shortfall: Shortfall is the amount by which the lower limit of the range exceeds unassigned fund balance or unrestricted net assets.

Expenditures: Expenditures are all uses of financial resources, budgeted for any purpose, and include operating and capital expenses, debt service, and transfers to other funds.

Operating Expenses: Operating expenses are uses of financial resources for personnel, supplies, services and materials, and exclude capital expenditures, debt service, and transfers to other funds.

In calculating the ratio of unassigned fund balance/unrestricted net assets to budgeted expenditures/expenses, the latest audited financial statements are compared with the budget in effect when the financial statements are released. This means comparing the unassigned fund balance/unrestricted net assets as reported in the audit document titled “Financial Statements and Independent Auditors’ Report, Town of Orange Park, September 30, 2024” to the 2024-

2025 current year budgeted expenditures and expenses.

The ratios using the above criteria are calculated as follows:

General Fund

Unassigned Fund Balance as of the 9/30/24 Audited Financial Statements $ 8,161,998

General Fund Budgeted Expenses for 2024-2025 through Amendment #3 $16,782,243

Ratio of Unassigned Fund Balance to Budgeted Expenses 48.6%

($8,161,998 / $16,782,243 = 48.6%)

Utility (Water and Sewer) Fund

Unrestricted Net Position as of the 9/30/24 Audited Financial Statements $ 2,458,841

Utility Fund Budgeted Expenses for 2023-2024 through Amendment #3 $11,811,117

Ratio of Unrestricted Net Assets to Budgeted Expenses 20.8%

($2,458,841/11,811,117 = 20.8%)

Stormwater Fund

Unrestricted Net Position as of the 9/30/24 Audited Financial Statements $ 1,266,120

Stormwater Fund Budgeted Expenses for 2023-2024 through Amendment #3 $ 5,396,683

Ratio of Unrestricted Net Assets to Budgeted Expenses 23.4%

($1,705,167 / $5,396,683 = 31.6%)

The above calculations show that the General Fund and Stormwater Fund are within the recommended range and The Utility (Water & Sewer) Fund is below the recommended range. A

Water & Sewer rate study is currently being conducted by outside professionals.

Flow of Interfund Transfers

Fiscal Year 2025 - 2026

Water & Sewer Revenue Fund

(401)

Water Operating

(402)

Sewer Operating

(406)

Building Fund (106)

General Fund (001)

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Section 2

Budget Summaries by Fund

DESCRIPTION OF MAJOR FUNDS

Governmental Funds

Governmental funds are used to account for activities primarily supported by taxes, grants and similar revenue sources.

General Fund:

The General Fund is the general operating fund for the Town. It is used to account for all financial resources, except for those required to be accounted separately. These resources provide funding for programs such as General Government Administration, Law Enforcement, Fire and

Paramedic Rescue, Public Works, Programs and Recreation, and Economic and Community

Development services to all the residents of the Town of Orange Park.

Special Revenue Funds:

Special Revenue Funds are used to account for the proceeds of specific revenue sources that are designated for specified purposes or are restricted in use. The Town’s Special Revenue Funds include:

Police Confiscated Property (Fund 103) – This fund accounts for revenue derived from confiscated property and cash. Proceeds are used to augment police activities.

Police Education (Fund 104) – This fund accounts for revenue derived from county court costs.

Expenditures are used to provide criminal justice education degree programs and training courses for police department personnel.

Police Investigative/Evidentiary Fund (Fund 105) – This fund accounts for revenue ordered by the courts and administered by the police department for use in officer investigations where it is necessary to protect the identity of the source of funds.

Building & Permit Fund (Fund 106) – This fund accounts for various fees charged to be used to fund the building activities of the Economic and Community Development department.

Fair Share Fund (Fund 110) – This fund accounts for proportionate fair share revenue to address the impact of development on transportation facilities. Expenditures are used toward funding of scheduled improvements in the Capital Improvements Element of the Comprehensive Plan.

Magnolia Cemetery Fund (Fund 602) – This fund accounts for revenues derived from the operation of the cemetery.

Gas Tax Fund (Fund 302) – This fund accounts for revenue derived from fuel taxes. These funds are used for transportation expenditures.

Sales Tax Capital Projects Fund:

The Sales Tax Capital Projects Fund is considered a major governmental fund. This capital projects fund accounts for resources accumulated and payments made for the acquisition and construction of major capital facilities.

Proprietary Funds

Proprietary funds are used to account for operations that are financed and operated in a manner similar to a private business enterprises in which the intent of the governing body is that all costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The Town’s proprietary funds are all classified as enterprise funds.

Water and Sewer Fund:

The Water and Sewer Fund accounts for the activities of the Town’s water distribution system, sewage treatment plant, sewage pumping stations, and collection systems.

Stormwater Fund:

The Town’s Stormwater Fund was formed in January 2019 to provide for a funding source to mitigate stormwater/drainage/flooding issues and promote water quality. The flooding and damages resulting from Hurricane Matthew and Hurricane Irma prompted the creation of this fund. These funds are separated from the Town’s General Fund, and revenue collected may only be specifically spent on stormwater-related activities. The mission of the Stormwater Enterprise fund is to promote stormwater compliance, drainage problem identification, and prioritization and proactive maintenance of Town-owned and operated drainage facilities.

General Fund

Revenue

Ad Valorem Taxes 4,093,406 4,405,632 4,681,772 5,174,447

Utility Service Tax 838,552 866,404 840,000 900,000

Other Taxes 1,021,102 1,043,285 1,062,600 1,139,692

Fees & Special Assessments 1,000,129 1,004,431 1,077,750 1,073,000

Intergovernmental Revenue 2,074,405 2,117,195 1,979,470 1,457,132

Charges for Services 1,937,771 2,100,910 2,400,906 2,509,496

Judgements, Fines, and Forfeitures 1,282,652 1,364,836 1,260,000 1,384,000

Miscellaneous 163,928 639,567 346,500 355,000

Total Revenues 12,411,946 13,542,259 13,648,998 13,992,767

Transfers In 559,400 552,320 577,400 608,492

Use of Fund Balance 0 0 2,555,845 0

559,400 552,320 3,133,245 608,492

TOTAL SOURCES 12,971,346 14,094,579 16,782,243 14,601,259

2022-2023 2023-2024 2024-2025 2025-2026

Actual Actual Budget Budget

Uses

Operating Budget

Personnel Services 7,612,760 8,357,443 9,364,776 9,981,839

Operating Expenses 4,079,665 4,223,257 6,581,920 4,591,805

Capital Outlay 8,404 118,425 803,546 0

Contigency 22,418 22,034 32,000 20,000

Total Operating Budget 11,723,247 12,721,160 16,782,243 14,593,644

Transfer to Other Funds 0 150,000 0 0

Other Uses 14 12 0 0

Contributions to Reserves 1,248,084 1,223,407 0 7,615

1,248,099 1,373,419 0 7,615

TOTAL USES 12,971,346 14,094,579 16,782,243 14,601,259

GENERAL FUND BUDGET SOURCES AND USES

Ad Valorem Taxes 5,174,447$

Utility Service Tax 900,000

Other Taxes 1,139,692

Fees & Special Assessments 1,073,000

Intergovernmental Revenue 1,457,132

Charges for Services 2,509,496

Judgements, Fines, and Forfeitures 1,384,000

Miscellaneous 355,000

Transfers In 608,492

TOTAL 14,601,259$

GENERAL FUND BUDGET REVENUES BY SOURCE

Ad Valorem Taxes 35.4%

Utility Service Tax

6.2%

Other Taxes 7.8%

Fees & Special Assessments

7.4%

Intergovernmental Revenue

10.0%

Charges for Services 17.2%

Judgements, Fines, and Forfeitures

9.5%

Miscellaneous 2.4%

Transfers In 4.2%

Property Tax Digest

The Property Tax Digest consists of the total taxable value of property in the Town of Orange Park. The value of all real and tangible personal property is estimated by the Clay County Property Appraiser. To get the taxable value, the tax exempt properties, mostly consisting of governmental and institutional properties, are deducted as well as Homestead, Save Our Homes caps and other reductions granted by the State Legislature. The remaining value is subject to Ad Valorem taxes. The values increased 6.28% over FY 24-25.

$905,890,569

$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

$800,000,000

$900,000,000

$1,000,000,000

FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26

Property Tax Digest

$852,348,865

$506,819,314

FY 14-15 6.3000 FY 20-21 5.8781

FY 15-16 6.1818 FY 21-22 5.8781

FY 16-17 6.1818 FY 22-23 5.8781

FY 17-18 6.1818 FY 23-24 5.7000

FY 18-19 5.8781 FY 24-25 5.7000

FY 19-20 5.8781 FY 25-26 5.9500

Property Tax Collections

The amount of revenue that the Town of Orange Park receives from Ad Valorem

Property Taxes results from the property tax rate, adopted by the Town Council, multiplied by the amount of taxable property as determined by the Clay County

Property Appraiser's Office, which is referred to as the Property Tax Digest.

The amount of property values declined during the recession in 2007, but have been climbing back steadily in recent years. The amount shown for FY 24-25 is an estimate and the amount shown for FY 25-26 is the budgeted amount. All others are actual collections.

Millage Rate History

$4,405,632

$4,681,772

$5,174,447

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26

Property Tax Collections

AD VALOREM

REVENUE

SHARING

HALF CENT

TAX

COMMUNICATIONS

SERVICE TAX

RED LIGHT

CAMERAS

FRANCHISE FEE

- Electricity

FRANCHISE

FEE - Solid

Waste UTILITY TAX

2016-2017 3,037,653 345,873 460,905 614,875 670,227 741,193 109,485 830,864

2017-2018 3,168,277 347,632 482,481 590,946 805,084 738,743 112,622 835,866

2018-2019 3,169,370 349,783 487,931 580,694 841,958 753,262 124,613 854,188

2019-2020 3,381,500 347,327 492,528 608,201 780,113 772,975 128,407 824,402

2020-2021 3,546,733 354,553 553,533 566,674 858,021 585,936 134,685 821,030

2021-2022 3,707,456 371,132 587,490 549,589 1,029,620 1,021,751 135,386 862,883

2022-2023 4,093,406 399,547 629,028 635,672 1,208,004 830,319 153,173 838,552

2023-2024 4,404,929 389,794 656,167 670,248 1,282,284 770,709 216,148 866,404

2024-2025 4,681,772 373,000 560,000 600,000 1,300,000 770,781 286,381 846,701

2025-2026 5,174,447 399,635 667,000 680,000 1,375,000 770,000 285,000 900,000

MAJOR GENERAL FUND REVENUE SOURCES

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

AD VALOREM REVENUE SHARING

HALF CENT TAX…