Fort Walton Beach Council agenda — 03-22-11 regular — reading text

summarized as follows: Fewer assets were purchased that were over the GASB 34 threshold. Capital assets outdated, unserviceable, and no longer used are systematically disposed of on an U_U_ aa annual basis. vv 00 A change in estimate was recorded related to previously purchased water meters, which accelerated the depreciation schedule, and resulted in $ 312, 868 of additional depreciation 00 NN expense and loss on disposal, when compared to the prior year. U_U_ 4-4- 00 cc Table 3 00 RR Total Capital Assets CC Net of Accumulated Depreciation NN Governmental Activities Business- Type Activities Total Activities LL FY 2010 FY 2009 FY 2010 FY 2009 FY 2010 FY 2009 aa rr 0000 Land S 9, 630, 172 9, 643, 584 765, 078 765, 078 10, 395, 251 10, 408, 662 Buildings TrTr 7, 570, 534 8, 017, 290 2, 336, 254 2, 402, 506 9, 906, 789 10, 419, 796 Improvements Other RR Than Buildings 2, 293, 721 2, 472, 588 19, 147, 799 18, 992, 157 21, 441, 519 21, 464, 745 CC Infrastructure 4, 520, 970 3, 971, 020 U_U_ 4, 520, 970 3, 971, 020 mm Machinery and Equipment 1, 223, 752 1, 234, 444 2, 813, 432 3, 318, 663 4, 037, 183 4, 553, 106 U_U_ Equipment under 00 Capital Lease 122, 479 152, 474 221, 412 299, 543 343, 891 452, 016 00 Construction in NN Progress 213 1, 999 1, 601, 945 1, 397, 605 1, 602, 159 1, 399, 604 ww 25, 361, 841 25, 493, 398 26, 885, 920 27, 175, 552 52, 247, 761 52, 668, 950 Cd EE tVtV RR QQ AdditionalAdditional informationinformation onon thethe capitalcapital assetsassets ofof thethe CityCity ofof FortFort WaltonWalton BeachBeach cancan bebe foundfound inin NoteNote 55 ofof thisthis reportreport onon pagepage 48.48. LongLong - - TermTerm DebtDebt AsAs shownshown inin thethe following following tabletabl , e, asas ofof SeptemberSeptember 30,30, 2010,2010, thethe CityCity hadhad totaltotal bondedbonded debtdebt andand capitalcapital leasesleases outstandingoutstanding ofof$ $ 19.19. 77 million.million. AllAll ofof thethe City'City' ss debtdebt representsrepresents bondsbonds securedsecured solelysolely byby specifiedspecified revenuerevenue sourcessources ( ( i. e.e. revenuerevenue bonds)bonds) andand capitalcapital leases.leases. TheThe CityCity hashas nono generalgeneral obligationobligation oror specialspecial assessmentassessment debt.debt. TheThe StateState ofof FloridaFlorida doesdoes notnot placeplace aa legallegal limitlimit ofof debtdebt onon municipalities.municipalities. ForFor generalgeneral obligation obligation debtsdebts greatergreater thanthan oneone year,year, thethe CityCity isis requiredrequired toto conductconduct aa votervoter referendum.referendum. 1212  Table 4 City of Fort Walton Beach' s Outstanding Debt Revenue Bonds and Capital Leases Governmental Activities Business -Type Activities Total Activities 2010 2009 2010 2009 2010 2009 Revenue Bonds $ 4, 708, 784 4, 836, 605 13, 836, 725 14, 543, 458 18, 545, 509 $ 19, 380, 063 Capital Leases 47, 374 93, 003 141, 737 226, 886 189, 111 319, 889 Total $ 4, 756, 158 4, 929, 608 13, 978, 462 14, 770, 344 18, 734, 620 $ 19, 699, 952 Additional information on the City of Fort Walton Beach' s long -term debt can be found in Note 13 and 14 of this report on pages 63 -68. ECONOMIC FACTORS AND NEXT YEAR' S BUDGETS AND RATES Economic indicators and factors that are useful for evaluating the framework within which the City operates are discussed below. The Consumer Price Index ( CPI) is 1. 1% higher than a year ago. This indicator translates into a higher cost of providing services to residents. Northwest Florida retail sales are 2. 0% lower than the previous year due to the recessionary economy. This indicator adversely affects sales tax revenues, a portion of which is passed on to the City by the State. Housing Affordability decreased by 2. 2 %. This indicator affects the City' s ability to recruit and retain employees. Unemployment is 9. 0% and has increased approximately 2. 0% from a year ago. Although low unemployment is beneficial for the community, this indicator impacts the City' s ability to recruit and retain