Fort Walton Beach — Fiscal Year 2020-21 Adopted_Budget — reading text

Range Plan – first into current and future resources due to changing held in 2004 and priorities based on priorities or economic updated annually. importance to City Council conditions. and funding availability. Budget Policy Short Range Plan Defines changes to service Provides the framework for Workshop - held annually. levels or program objectives developing the current budget. based on City Council goals and available fiscal resources. Capital Short-to-Mid Provides estimated dates and Provides anticipated 5-year Improvement Range Plan - costs for the acquisition, funding level for facilities and Plan updated annually. construction, replacement, or infrastructure. renovation of facilities and infrastructure. City of Fort Walton Beach, FL 15 Roles & Responsibilities The budget process begins in January with the Finance Director and Budget & Grants Analyst developing five-year financial forecasts for the General and Enterprise Funds, including best, likely, and worst-case scenarios. Revenue assumptions are developed using financial forecasting software to analyze historical trends and account for any anticipated major economic or legislative changes. Revenue projections are continually updated until the budget is adopted to ensure the amounts are based on the most current information available. Expenditure assumptions are similarly developed in the forecast model considering relevant benchmark indices such as the municipal cost index, consumer price index, and producer price index. New programs and projects are also included to determine the future impact of current financial decisions. FISCAL YEAR FINANCIAL FORECAST BEGINS DEVELOPED In March or April, the City Council, acting as the Legislative Oct 1 Jan Body of the City, holds a Strategic Planning Session. The goals BUDGET BUDGET MEETING set during this meeting, are used by staff to formulate the ADOPTION Sep Jun budget policy items that are presented to City Council in June and then utilized to prepare the Budget. Please reference the PUBLIC BUDGET DEPARTMENT MEETINGS Table of Contents for a summary of this Plan. In addition, the WORKSHOPS Aug BUDGET May/Jun COMMITTEE icons used to illustrate the strategic goals are seen throughout REVIEW Jun/Jul the budget to notate when a strategic objective is being met. A Budget Policy Meeting is held with City Council in June to determine Council’s priorities and position issues specific to development of the operational and capital budgets for the upcoming fiscal year. City Council’s decisions provide the framework under which the budget is prepared to meet City Council’s programmatic objectives within available fiscal resources projected in the five-year forecasts. The meeting is open to the public and the public is encouraged to attend and participate. Department Directors are responsible for identifying their staffing needs, operational funding needs within budget development parameters, five (5) year capital requests, as well as corresponding revenue sources to fund their needs. In addition, they must conduct a comprehensive review of departmental goals, objectives, and metrics. The City Charter charges the City Manager with the duty of presenting a balanced budget to City Council. The budget is considered balanced if the total of all available financial resources (either on hand at the beginning of the year or generated during the year) equals or exceeds the total of all financial requirements. In order to accomplish this goal, a Budget Committee is formed comprised of the City Manager, Finance Director, and Budget & Grants Analyst. The Committee conducts comprehensive meetings with Department Directors to review their budget requests and a collaborative effort is undertaken to achieve City Council and department goals within fiscal constraints. The Budget Committee enlists assistance for areas of specialized interests, such as the Information Technology Manager for computer issues and the Human Resources Director for personnel and risk management issues. Department goals, objectives, and metrics are also evaluated during budget development to determine the effectiveness of program activities and appropriate funding levels. After the departmental meetings, the Budget Committee finalizes the proposed budget given revenue projections, economic conditions, funding requirements, and City Council program priorities and issues previously identified in the budget process. Once a balanced budget is achieved, it is presented to City Council for consideration. City of Fort Walton Beach, FL 16 Community Participation In FY 2019-20, City Council conducted the first ever Quality of Life Survey of its citizens to assist with setting priorities and determining those areas in which the City should focus its efforts. This information has been incorporated into the proposed budget. The City’s website and utility bills contain notices regarding the budget process and the budget meetings held by City Council. City Council Budget Review BUDGET SCHEDULE The Mayor and City Council are January 2020 Five-Year Financial Forecasts Developed responsible for reviewing the proposed March 2020 Strategic Planning Session with City Council budget to ensure it meets the goals and April 2020 Department Budget Submissions objectives of the City, conducting Revenues Fee Schedule Personnel Operating Expenses meetings on the budget to enlist public Computers Equipment/Vehicles comment, and conducting public hearings Capital Improvement Projects Current Year Accomplishments prior to the final adoption of the budget. Budget Year Goals & Objectives Performance Measures In June, a budget policy meeting is held with the City Council to review and June 2020 Departmental Budget Reviews discuss the proposed budget. The City June 22, 2020 City Council Budget Policy Meeting Manager reviews major issues and Discussion Budget Issues Department Directors are present for the Set Proposed Millage Rate for TRIM Notice discussions and study of the proposed July 2020 Capital/CIP Ranking Meeting budget. The meeting is open to the public August 4, 2020 City Council Budget Workshop and the public is encouraged to attend and participate. September 9, 2020 City Council Meeting – Adopt Tentative Millage Rate and Budget by Resolution After the budget policy meeting, a budget September 23, 2020 City Council Meeting – Adopt Final Millage workshop is held with City Council in August to discuss the proposed budget to make any final revisions prior to the two public hearings to formally adopt the budget in September. This meeting is also open to the public. During September, two public hearings on the millage (i.e. property tax) rate and budget are held per State Statute before final budget consideration. These meetings are advertised as part of the agenda and Florida Law requires certain newspaper advertisements prior to the second and final budget hearing. At the public hearings, the public may make formal comment either for or against the proposed budget and ask questions of City Council about the budget. Budget adoption occurs in September after City Council deliberations and two public hearings. City Council may take action to modify the proposed budget at its discretion. Prior to budget adoption, City Council must adopt a millage rate to support budgeted funding levels. An adopted budget is published no later than October 1st. Budget Maintenance Budget maintenance is a year-round activity of the Department Directors, Finance Director, and Budget & Grants Analyst. Spending control mechanisms include Finance Department review of purchase requisitions and departmental review of reports presenting budget versus actual revenues and expenditures. These financial reports are prepared and reviewed by staff monthly and provided to City Council quarterly to identify and communicate any spending variances. Performance measures are prepared and reported to Council quarterly to monitor progress against goals and objectives, citizen satisfaction, and benchmarks. City of Fort Walton Beach, FL 17 Annual appropriations lapse at fiscal year-end except for encumbrances and appropriations related to multi-year projects and other items identified by City Council to be carried over to the next fiscal year. These carry-overs are included in the ensuing year’s adopted budget resolution. Budget Transfers Operationally, the City functions at a fund level basis allowing budget transfers within funds for individual line items that exceed the budgeted amount without a formal budget amendment. Budget transfers are used only to transfer appropriations between line items within a fund, not to increase the total budget or to transfer resources between funds. Budget transfers are permitted in accordance with Administrative Policy FIN-13. All budget transfers are performed in the City’s accounting system by the Finance Department. Budget Amendment Per Florida Statute 166.241, the adopted budget may be revised with a budget amendment approved by City Council in the same way the budget was adopted. The resolution adopting the annual budget allows the budget to be amended by resolution provided that a corresponding funding source supports any additional