Fort Walton Beach — Fiscal Year 2023-24 Adopted Budget — reading text

Department is a major administrative segment of the City that indicates overall management responsibility for an operation or a group of related operations within a functional area (e.g. Police Department, Recreation & Cultural Services Department). The smallest organizational unit budgeted is a Division. Each division indicates responsibility for one functional area (e.g. Library Division within Recreation & Cultural Services Department). When divisions are combined, a department is formed. In order to provide City Council and citizens with a well-rounded presentation of each department, the following elements are presented in the annual budget: organizational chart, revenues & expenditures, mission, description, goals & objectives, and accomplishments. The performance metrics reflect an operational plan and demonstrate how dollars and cents are translated into tangible returns for the citizens. BUDGET BASIS Annual appropriated budgets are adopted by resolution for all governmental and proprietary funds. The City is not legally required to budget for proprietary or fiduciary funds and those budgets are not included in the City’s audited financial statements. The basis of accounting used for purposes of financial reporting in accordance with generally accepted accounting principles (GAAP) is not the same basis used in preparing the budget document. All funds are budgeted on a cash basis. In GAAP financial statements, however, governmental funds use the modified accrual basis of City of Fort Walton Beach, FL 15 accounting and proprietary funds use the accrual basis of accounting. During the year, the City’s accounting system is maintained on the same basis as the adopted budget, which enables department budgets to be easily monitored through the accounting system. The major difference between the budget and GAAP for governmental funds is that certain expenditures (e.g. compensated absences and depreciation) are not recognized for budgetary purposes but are recorded in the accounting system at year-end. For enterprise funds, the difference between this budget and GAAP is that debt principal payments and capital outlay (i.e. fixed assets) are budgeted as expenditures for budgetary purposes, but depreciation and compensated absences are shown on the financial statements. Staff believes this provides a better day-to-day financial plan. However, all activity is recorded in the accounting system at year-end in accordance with GAAP. BUDGET PROCESS This budget continues the City’s commitment of using planning processes and citizen input as blueprints for providing services and programs for the betterment of the community. Planning Processes Frequency Description Budget Impact Comprehensive Long Range Plan - Provides direction to guide Budget expenditures (e.g. Plan developed in 1990 and control development and Capital Improvements Plan) and updated redevelopment, as required must be concurrent with the annually. per Florida Statute Chapter Comprehensive Plan. 163. Vision Plan Long Range Plan - Defines the broad, idealistic Outlines the general allocation developed in 1994 values that citizens cherish of resources to achieve the updated annually. and desire for their desired service levels and community and creates quality of life. shared commitments among citizens, City Council, and staff. Strategic Plan Mid-to-Short Translates the Vision Plan Allows for the reallocation of 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 16 Roles & Responsibilities The budget process begins in February, which includes Finance staff preparing the new fiscal year’s documentation. 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 a forecast model considering relevant benchmark indices such as the municipal cost index, consumer price index, and producer price index. FISCAL YEAR FINANCIAL FORECASTING BEGINS STARTS A Budget Policy Meeting is held with City Council in May to Oct 1 Feb determine Council’s priorities and overall strategic plan. The BUDGET BUDGET MEETING City Charter charges the City Manager with the duty of ADOPTION Sep Mar presenting a balanced budget to the City Council. The budget is considered balanced if the total of all available financial PUBLIC BUDGET DEPARTMENT MEETINGS resources (either on hand at the beginning of the year or WORKSHOPS Aug BUDGET Apr /May COMMITTEE generated during the year) equals or exceeds the total of all REVIEW Jun/Jul financial requirements. In August, the City Manager’s proposed budget is presented to City Council for review and discussion. During September, two public hearings to formally adopt the millage (property tax) rate and budget are held per State Statute. The adopted budget is published no later than October 1. All meeting are 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. In order to accomplish this goal, a Budget Committee is formed comprised of the City Manager, Finance Director, and Budget 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. 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 of Fort Walton Beach, FL 17 City Council Budget Review BUDGET SCHEDULE The Mayor and City Council are February 2023 Finance Prepares New Fiscal Year’s Documents responsible for reviewing the proposed April 2023 Strategic Planning Session with City Council budget to ensure it meets the goals and April & May 2023 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 give an overview May 2023 Departmental Budget Reviews Capital/CIP Ranking Meeting of the