Fort Walton Beach — Fiscal Year 2021-22 Adopted Budget — reading text

Recreation Amenities, 22% FINANCING ALTERNATIVES Capital improvements may be funded by a variety of means depending on the nature of the project, availability of funds, and the policies of City Council. Financing decisions are made based on established City policies and available financing options directly related to project timing and choice of revenue sources. The funding methodology for the CIP is reliant upon available resources including funds from grants and user fees, useful life of the improvement, and sharing the costs between current and future users. While some projects can be delayed until funds from existing revenues are available, others cannot. The City explores all options such as ad valorem taxes, grants, user fees, bonds, loans, and reserves to fund improvements. The following financing sources are available to fund the CIP: City of Fort Walton Beach, FL 180 Capital Improvements Program  Ad Valorem Taxes – The City rarely uses property taxes as a debt security due largely to the required electoral approval (voter referendum) prior to issuance. Property taxes are directly linked to the assessed value of individual property, not to the consumption of specific goods and services (e.g. sales tax).  Non-Ad Valorem Revenues – Non-ad valorem revenues can be pledged to support various types of bond issues. Such bonds are similar to general obligation bonds in that proceeds are often used for general government purposes and repayment is unrelated to the revenue generating capacity of the project being financed. However, unlike general obligation bonds, non-ad valorem revenue bonds are payable solely from revenues derived from the pledged revenue (such as sales tax, local option fuel tax, and the guaranteed portion of municipal revenue sharing).  Special Revenue Sources – Include the following:  Impact Fees – Fees charged in advance of new development and designed to help pay for infrastructure needs resulting from the new development. These fees may only be charged to those who directly benefit from the new capital improvement and the fee must fairly reflect the cost of the improvements (e.g. water and sewer impact fees).  Special Assessments – Like impact fees, special assessments are levied against residents, agencies, or districts that directly benefit from the new service or improvement (e.g. sidewalks and street paving) and must be apportioned fairly.  User Fees and Charges – These revenues include a variety of license and permit fees, facility and program fees, and fines. They are rarely used as debt security for non-Enterprise Fund capital projects, but could be a source of direct funding of a small capital improvement.  Enterprise Fund User Fees – These revenues are derived from self-supporting business enterprises - utilities, sanitation, and stormwater - which provide services in return for compensation. The enterprise revenue used to secure debt is commonly termed “net-revenue” consisting of gross revenues less operating costs.  Note – A written, short-term promise to repay a specified amount of principal and interest on a certain date, payable from a defined source of anticipated revenue. Usually notes mature in one year or less. Rarely used by the City.  Commercial Paper - Generally defined as short term, unsecured promissory notes issued by organizations of recognized credit quality, usually a bank. Rarely used by the City.  Bond – An issuer’s obligation to repay a principal amount on a certain date (maturity date) with interest at a stated rate. Bonds are distinguishable from notes in that notes mature in a much shorter time period.  General Obligation Bonds – A bond secured by the full faith and credit of the City’s ad valorem taxing power. These are rarely used in Florida, and by the City in particular, due to the requirement for a voter referendum.  Revenue Bonds – Bonds payable from a specific revenue source, not the full faith and credit of an issuer’s taxing power and require no electoral approval. Pledged revenues are often generated by the operation or project being financed (e.g. sales tax, water user fees, golf user fees). City of Fort Walton Beach, FL 181  CITY OF FORT WALTON BEACH, FL Five Year Capital Improvements Program FIVE YEAR CIP Project Name FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 TOTAL TBD Westside Fire Station 200,000 2,345,000 - - - 2,545,000 TBD Emergency Response Boat & Trailer - - - - - - TBD Outdoor Shooting Range 35,000 5,000 5,000 5,000 5,000 55,000 Public Safety 235,000 2,350,000 5,000 5,000 5,000 2,600,000 TBD Recreation Complex Phase 3 100,000 1,750,000 1,000,000 - - 2,850,000 TBD Liza Jackson Design Plans 20,000 1,000,000 - - - 1,020,000 Recreation 120,000 2,750,000 1,000,000 - - 3,870,000 TBD Golf Pine Course Irrigation 230,000 230,000 230,000 230,000 230,000 1,150,000 Golf Grounds 230,000 230,000 230,000 230,000 230,000 1,150,000 TBD Bluewater Zoo Demo/Bldg Design 50,000 400,000 - - - 450,000 Museum 50,000 400,000 - - - 450,000 TBD Beal Memorial Cemetery New Plots 150,000 - - - - 150,000 TBD Beal Memorial Cemetery Bldg 200,000 100,000 - - - 300,000 Cemetery 350,000 100,000 - - - 450,000 TBD Intersection & Pedestrian Improvements 300,000 300,000 - - - 600,000 5306 Sidewalk Improvements 175,000 33,500 33,500 33,500 33,500 309,000 TBD Street Resurfacing 300,000 300,000 300,000 300,000 300,000 1,500,000 TBD Downtown Parking Lot Improvements 200,000 - - - - 200,000 TBD Lewis Turner Traffic Analysis 150,000 - - - - 150,000 TBD State Road Improvements 25,000 - 25,000 - 25,000 75,000 Streets 1,150,000 633,500 358,500 333,500 358,500 2,834,000 GENERAL FUND TOTAL 2,135,000 6,463,500 1,593,500 568,500 593,500 11,354,000 TBD Wayfinding Signage Program 65,000 65,000 50,000 - 10,000 190,000 CRA FUND TOTAL 65,000 65,000 50,000 - 10,000 190,000 TBD Water Meter Replacements 1,000,000 1,000,000 - - - 2,000,000 TBD Freedom Beacon 12-inch Water Main 300,000 - - - - 300,000 Water Distribution 1,300,000 1,000,000 - - - 2,300,000 TBD Sewer System Grouting & Lining 30,000 30,000 30,000 30,000 30,000 150,000 TBD Freedom Beacon 6-inch Water Main 500,000 - - - - 500,000 TBD New Lift Station No.22 400,000 - - - - 400,000 Sewer Collection & Treatment 930,000 30,000 30,000 30,000 30,000 1,050,000 UTILITIES FUND TOTAL 2,230,000 1,030,000 30,000 30,000 30,000 3,350,000 TBD Stormwater Improvements 300,000 - 600,000 - 150,000 1,050,000 TBD MarWalt Regional Stormwater Design 150,000 - - - - 150,000 TBD CTP Regional Stormwater Design 150,000 - - - - 150,000 STORMWATER FUND TOTAL 600,000 - 600,000 - 150,000 1,350,000 GRAND TOTAL - ALL FUNDS 5,030,000 7,558,500 2,273,500 598,500 783,500 16,244,000 Where it comes from... ...And where it goes General Fund Balance Half Cent Sales Tax Revenue Parks & Recreation Public Safety Stormwater Fund Balance Debt Issuance Stormwater Streets Utilities Fund Balance Grant Funding Revenue CRA Fund Balance Water & Sewer General Fund Balance 9,651,500 Parks & Recrea 5,920,000 Half Cent Sales Tax Revenue 1,130,000 Public Safety 2,600,000 Stormwater Fund Balance 1,150,000 Stormwater 1,350,000 Debt Issuance 460,000 Streets 2,834,000 Utilities Fund Balance 3,350,000 Water & Sewer 3,350,000 Grant Funding Revenue 312,500 Downtown 190,000 CRA Fund Balance 190,000 16,244,000