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

Engine 5/5/15 0 62484 62484 $ 57,159.60 2035 2035 20 In 2714 Safety 001 0900 Fire 2020 service Fire Truck 6/25/20 813 28684 27871 $ 21,962.12 2035 2035 15 In 2723 Heavy 405 1380 Stormwater 2020 service Freightliner Dumptruck 10/30/20 714 5262 4548 $ 869.64 2035 2035 15 In 2728 Heavy 403 1360 Solid Waste 2022 service Knuckleboom 5/3/21 588 29077 28489 $ 2,933.61 2036 2036 15 Sewer In was suppose to be 187 2474 Heavy 001 1350 Collections 2017 10/17/03 50507 76960 67495 $ 11,974.53 ? ? 15 ? $ 30,000 service replaced with 2658 In 401 Safety 001 0900 Fire 1947 NA service Show Truck 10/1/47 4324 6834 2510 $ 13,953.58 1947 NA In High water military 2680 Safety 001 0800 Police 1998 5/30/18 $ 15,154.79 service vehicle In 2543 Safety 001 0900 Fire 2008 service Ford Ranger 1/29/08 53 77481 77428 $ 7,098.25 2018 10 Capital Improvements Program The City’s Capital Improvements Program (CIP) is a five-year planning and budgeting tool that identifies the acquisition, construction, replacement, or renovation of facilities and infrastructure with a value greater than $25,000 and a useful life of ten years or more. Capital expenditures may be recurring (e.g. street resurfacing) or non-recurring (e.g. construction of a new park). CIP PROCESS The FY 2021-22 budget, the first year of the CIP, is the only year for which funding may legally be appropriated. Future years’ funding requirements are identified, but are not authorized. The CIP provides information on the current and long-range infrastructure needs of the City and provides a mechanism for balancing needs and resources as well as setting priorities and schedules for capital projects. Each project or program is assigned a four-digit CIP number so expenditures can be easily tracked during the year and also across years. Each year as part of the budget process, the list of projects is reviewed for relevance, need, cost, and priority. The five-year CIP is revised annually based on the following parameters:  Relevance to City Council priorities, and Federal or State mandates Relevance to Priorities, Federal & State Mandates  Maintenance and preservation of current infrastructure  Public health and safety Public Health & Safety  Operating budget impact Preservation & Maintenance  Recreational, cultural or aesthetic value and Recreational & Cultural Value  Funding source Each submission is reviewed on an annual basis and ranked in accordance with the above criteria. Once prioritized, the funding source is identified and the project is placed in the budget if funding is available. The Enterprise Funds (Utilities, Sanitation, and Stormwater) are funded with user fees and do not compete with other City projects for funding. The estimated project costs to be funded within the CIP include all costs related to design, engineering, acquisition, construction, and project management. The City’s Strategic Plan Objectives are referenced throughout this document. Each CIP is categorized by objective. In addition to the text, these objectives are highlighted through icons. Please reference the Table of Contents for locations of more information regarding the City’s Strategic Plan. City of Fort Walton Beach, FL 188 Capital Improvements Program PROJECTS BY STRATEGIC OBJECTIVE Strategic Objective, Strategic Objective, Consolidation Public Safety / Opportunities, 19% Vagrancy, 19% Strategic Objective, Strategic Objective, Recreation Services Downtown Plan / Expansion, 11% Around the Mound, 16% Strategic Objective, Strategic Objective, Employee Retention, Customer Services, 16% 19% City of Fort Walton Beach, FL 189 Capital Improvements Program 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:  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. City of Fort Walton Beach, FL 190 Capital Improvements Program  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