Hurricanes

1
Hurricanes Financial Update

• Presented to,
• City Council
• October 11, 2004

2
Original Estimates
3
Hurricane Charley Preliminary Damage Estimate

• Estimated Cost FEMA Categories of Work
  in millions
• A B
• Debris Removal 29.6
• Emergency Measures 6.5
• C G
• Roads Bridges 10.0
• Water Control Facilities .5
• Buildings and Equipment 5.0
• Parks Recreation 2.0
• Subtotal 53.6

4
Hurricane Frances Preliminary Damage Estimate

• Estimated Cost FEMA Categories of Work
  in millions
• A B
• Debris Removal 18.6
• Emergency Measures 0.9
• C G
• Roads Bridges 6.8
• Water Control Facilities .1
• Buildings and Equipment .2
• Parks Recreation .1
• Subtotal 26.7
• Including uncollected (Charley) debris
  (approximately ½ plus 15)

5
Hurricane Jeanne Preliminary Damage Estimate

• Estimated Cost FEMA Categories of Work
  in millions
• A B
• Debris Removal 5.7
• Emergency Measures 1.0
• C G
• Roads Bridges 3.5
• Water Control Facilities .1
• Buildings and Equipment .1
• Parks Recreation .4
• Subtotal 10.8

6
Hurricane Charley FEMA Formula

• Category AB (first 72 hours) 100
• (other) 75
• Category C G (worst case)
• FEMA 75.0
• State 12.5
• City 12.5
• 100.0
• FEMA and State on other AB (similar to C-G)

7
Updated Hurricane Summary
8
Charley, Frances Jeanne (Combined) -Revised
Estimate in millions

• 12.5 5
• Total Local Local
• Estimate Share Share
• AB 43.2 5.3 2.16
• C G 18.7 2.3 .94
• Total 61.9 7.6 3.10
• With some additional cushion and ineligible
  expenses, assuming worse case at 4.0 to 6.0
  million

9
Financing Plan
10
Hurricane Related Financial Strategy (Original
Plan)

• Create separate Special Revenue Funds (one each)
• Make a 10.0 million (line of credit) loan from
  Internal Banking Fund
• Process individual 1.0 million or less
  reimbursement request
• Hold additional 5.0 million loan capacity in
  reserve

11
Revised Financial Strategy Cash Flow Shortfall

• Revised Cash Flow - 30 35,000,000
• Borrow short-term (using tax-exempt variable
  rate) from SSGFC - 25,000,000
• Hold 10,000,000 in Banking Fund capacity to
  cover additional shortfall
• Reimburse SSGFC from FEMA/State reimbursement
• Pass a Resolution of Intent to reach back up to
  60 days

12
Hurricane Related Financial Reporting Strategy
(continued)

• By November 15, develop revised estimate of Local
  Share and book against 2003-2004 (in the
  entity-wide consolidation Governmental Funds)
• By September 30, 2005 review/revise estimate
• Allocate to General Fund, Business Units and Risk
  Management, appropriately
• Amortize the General Fund portion over 5 to 7
  years
• Internal Loan with no prepayment penalty
• Approach is designed to maximize Citys
  short-term flexibility