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

Lafayette Gulf Glades Valparaiso Jackson Dixie Liberty Bradford Gadsden Madison DeSoto City of Fort Walton Beach, FL Hamilton Holmes Calhoun Hendry Hardee Union Statistical Information Fort Walton Beach is the only full-service city, providing police, fire, water & sewer, garbage, and stormwater services along with recreational programs, senior center, library, museums, and two 18-hole golf courses. Top 10 Fort Walton Beach Taxpayers – 2022 City of Fort Walton Beach, FL 202 Statistical Information City of Fort Walton Beach, FL 203 Statistical Information City of Fort Walton Beach, FL 204 Statistical Information FIVE-YEAR FINANCIAL FORECASTS City of Fort Walton Beach, FL 205 Statistical Information City of Fort Walton Beach, FL 206 Statistical Information City of Fort Walton Beach, FL 207 Statistical Information City of Fort Walton Beach, FL 208  GLOSSARY OF TERMS ACCRUAL BASIS OF ACCOUNTING A basis of accounting under which the financial effects of transactions, events, and interfund activities are recognized when they occur, regardless of the timing of related cash flows. All proprietary funds use the accrual basis of accounting. AD VALOREM A Latin term meaning “according to value” commonly used when referring to property taxes. ADOPTED BUDGET An annual budget approved by City Council each September detailing the revenues and expenditures of the City for the upcoming fiscal year. ANNUAL BUDGET A budget applicable to a single fiscal year. AMENDED BUDGET A revised version of the adopted budget prepared after the close of each fiscal year to reflect actual revenues and expenditures. AMENDMENT ONE A Florida constitutional amendment approved by voters in 2008 that provides 1) an additional $25,000 homestead exemption, 2) a 10% annual cap for assessed value increases to non-homesteaded properties, 3) a $25,000 exemption for tangible personal property, and 4) portability of accrued “Save Our Homes” benefits. APPROPRIATED BUDGET An expenditure authority created by Ordinance, which is signed into law, and the related estimated revenues. The appropriated budget includes all reserves, transfers, allocations, supplemental appropriations, and other legally authorized legislative and executive changes. APPROPRIATION A legal authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. APPROPRIATION FROM FUND BALANCE A non-revenue funding source used to bridge the gap between anticipated revenues and expenditures in the adopted budget of governmental, special revenue, and similar funds. APPROPRIATION FROM NET ASSETS A non-revenue funding source used to bridge the gap between anticipated revenues and expenditures in the adopted budget of enterprise funds. ASSESSED VALUE A dollar value of property (land and/or structures) assigned by a public tax assessor for the purposes of taxation. BALANCED BUDGET The total of all available financial resources (either on hand at the beginning of the fiscal year or generated during the fiscal year) equals or exceeds the total of all financial requirements (either planned spending during the year or funds required to be on hand at the end of the fiscal year). The requirement for a balanced budget is established at the fund level and must be met for each individual fund budgeted. This differs from a “structurally balanced budget”, which requires recurring revenues to equal or exceed recurring 209  expenditures. BEAL MEMORIAL CEMETERY PERPETUAL CARE FUND Accounts for funds accumulated to meet the requirements of maintaining the City owned cemetery. BETTERMENT An addition to, or change in, a fixed asset other than maintenance, to prolong its life or increase its efficiency. The cost of the addition or change is added to the book value of the asset. BOND A method of issuing debt for the purpose of raising capital, with a term of more than one year and usually with a fixed interest rate. BUDGET A plan of financial operation embodying an estimate of proposed expenditures for a given period of time and the proposed means of financing them. BUDGET AMENDMENT An increase or decrease in the total adopted budget amount. This must be accomplished by an Ordinance approved by the City Council. BUDGET BASIS All funds are budgeted on a cash basis. However, financial statements reflect modified accrual for governmental funds full accrual for proprietary funds. 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 RESIDUALS Excess budget funds transferred out of an account by the Finance Department once the budgeted expense has been incurred (e.g. capital purchase, maintenance contract). Reallocation of these funds requires City Manager approval. BUDGET TRANSFER A reallocation of funds among line items, within the same fund, with the approval of the City Manager or designee. CAPITAL EXPENDITURE An expenditure affecting the government’s general fixed assets. Capital expenditures are classified as either a capital outlay or capital improvement program. CAPITAL IMPROVEMENT PROGRAM (CIP) 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. CIP’s may be recurring (e.g. street resurfacing) or 210  non-recurring (e.g. construction of a new park). CAPITAL OUTLAY Generally, a capital outlay item may be defined as an item valued between $1,000 and $25,000 with a life expectancy of less than 10 years. Capital outlay includes furniture, equipment, and vehicles needed to support the operation of the City’s programs, minor construction projects, landscaping projects, and facility repairs.