Fort Walton Beach Council agenda — 09-19-12 special budget-second ph — reading text

2009 FY 2010 FY 2011 FY 2012 FY 2013 Unrestricted Fund Balance % 40. 3% 45. 8% 45. 5% 42. 1% 43. 2% Unrestricted Fund Balance $ $ 7, 665, 707 $ 8, 994, 679 $ 7, 946, 840 $ 7,325,448 $ 7, 270,300 4. Assigned ( limitation resulting from intended use) — resources whose use is constrained by a body or official designated by the governing body. Subsequent Year' s Budget —City Council authorizes City management to set forth in the annual budget ( and any amendments thereto) fund balance for specific purposes per Resolution 2011 -13 adopted August 16, 2011. There is appropriated $ 55, 148 in the current year budget for the performance incentive program. 5. Unassigned ( residual net assets not otherwise classified) —total fund balance in excess of the nonspendable, restricted, committed, and assigned fund balances ( e. g. surplus). Changes in Fund Balance Due to the minimal use of reserves in the FY 2012 -13 budget, only one governmental fund is anticipated to experience a change in fund balance greater than 10 %. The Law Enforcement City of Pon Walton Beach, FL 22 Budget Overview Training Fund is budgeted to incur a $ 3K or 40. 9% increase because expenses are conservative to guard against declining traffic fine revenues. Actual Estimate Variance FYI to FYI FY 2011 FY 2012 FY 2013 General Fund 11, 214, 334 10,429, 754 10, 235,313 194,441 1. 9% Law Enf. Trust Fund 261, 216 250,941 236,241 14, 700 5.9% 7, 404 7, 404 10,429 3, 025 40. 9% Law Enf. Training Fund FBC Fund 0 0 0 0 0.0% CDBG Fund 306 0 0 0 0.0% CRA Fund 4, 212, 984 1, 307,225 1, 307,225 0 0.0% Debt Service Fund 113, 816 113, 816 113, 816 0 0. 0% Beal Memorial Fund 1, 929, 448 1, 948, 048 1, 982, 648 34,600 1. 8% WorkingWorking CapitalCapital ( ( proprietaryproprietary funds)funds) WorkingWorking capitalcapital refersrefers toto thethe differencedifference between between currentcurrent assetsassets andand currentcurrent liabilitiesliabilities reportedreported inin aa proprietaryproprietary fund.fund. ThisThis measuremeasure indicatesindicates relativerelative liquidity.liquidity. CreditCredit ratingrating agenciesagencies considerconsider thethe availabilityavailability ofof workingworking capitalcapital inin theirtheir evaluationsevaluations ofof aa locallocal government'government' ss creditworthiness.creditworthiness. WorkingWorking capitalcapital isis alsoalso importantimportant inin mitigatingmitigating unanticipatedunanticipated eventsevents andand ensuringensuring stablestable servicesservices andand fees.fees. TheThe City'City' ss targettarget levellevel ofof workingworking capitalcapital isis 9090 daysdays ofof annualannual operatingoperating expenses,expenses, andand currently currently exceedsexceeds thisthis levellevel forfor allall fundsfunds exceptexcept forfor Golf.Golf. ItIt isis notnot feasiblefeasible toto projectproject thisthis measure.measure. Actual FYFY 20092009 FY 2010 FY 2011 Utilities Fund 331 220 163 Sanitation Fund 195 259 228 Golf Fund 65 61 14 Stormwater Fund 148 344 425 NetNet AssetsAssets ( ( proprietaryproprietary funds)funds) NetNet assetsassets refersrefers toto thethe differencedifference betweenbetween assetsassets andand liabilitiesliabilities reportedreported inin aa proprietary proprietary fund,fund, andand maymay bebe consideredconsidered aa measuremeasure ofof netnet worth.worth. ThereThere areare twotwo typestypes ofof netnet assets:assets: 1.1. RestrictedRestricted — — fundsfunds committedcommitted forfor identifiedidentified purposespurposes oror legallylegally requiredrequired toto bebe segregated;segregated; notnot availableavailable toto liquidateliquidate liabilitiesliabilities ofof thethe currentcurrent periodperiod ( ( e.e. g.g. debtdebt service,service, impactimpact fees).fees). 2.2. UnrestrictedUnrestricted — — fundsfunds notnot required required toto bebe onon handhand andand havehave notnot beenbeen identifiedidentified forfor aa particularparticular purpose;purpose; available available forfor capitalcapital projectsprojects oror toto balancebalance thethe budget;budget; thethe measure measure ofof financialfinancial healthhealth forfor anan enterpriseenterprise fund.fund. CityCity CouncilCouncil established established thatthat unrestricted unrestricted netnet assetsassets willwill bebe maintainedmaintained atat 33%33% ofof operating,operating, debtdebt service,service, andand transferstransfers outout perper ResolutionResolution 20112011 - - 1313 adoptedadopted AugustAugust 16,16, 2011.2011. TheThe CityCity currentlycurrently meetsmeets thisthis policypolicy forfor allall fundsfunds except except GolfGolf ( ( toto whichwhich thethe policypolicy isis notnot applicableapplicable atat thisthis time).time). CityCity ofof FortFort WaltonWalton Beach,Beach, FLFL 2323 Budget Overview Actual Estimate FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Utilities Fund 84. 3% 56. 9% 43. 2% 57. 4% 54.0% Sanitation Fund 52.4% 60. 3% 61. 1% 70. 9% 72. 8% Golf Fund 12. 5% 12. 3% 4. 2% 11. 9% - 21. 1% Stormwater Fund 39. 6% 91. 3% 113. 7 % 89. 5% 68. 8% InvestmentsInvestments InvestmentInvestment PhilosophyPhilosophy — — FundsFunds shallshall bebe investedinvested inin aa mannermanner thatthat willwill ensureensure thethe safetysafety ofof principalprincipal whilewhile meetingmeeting dailydaily cashcash flowflow needs.needs. Optimization Optimization ofof investmentinvestment incomeincome shallshall bebe secondarysecondary toto thethe requirementsrequirements ofof safetysafety andand liquidity.liquidity. InvestmentInvestment PolicyPolicy Statement Statement — — TheThe following following policypolicy statementsstatements governgovern thethe City'City' ss investmentinvestment ofof fundsfunds inin excessexcess ofof thosethose requiredrequired toto meetmeet currentcurrent expenses,expenses, excludingexcluding pension pension funds:funds: TheThe City'City' ss InvestmentInvestment Policy,Policy, adoptedadopted byby CityCity CouncilCouncil inin ResolutionResolution 0404- - 20,20, authorizesauthorizes investmentsinvestments inin accordanceaccordance withwith FloridaFlorida StateState StatuteStatute 218.218. 415.415. TheThe primaryprimary investmentinvestment objectives,objectives, inin orderorder ofof importance,importance, are:are: safetysafety ofof principal,principal, liquidity,liquidity, andand investmentinvestment income.income. CashCash balancesbalances fromfrom allall fundsfunds areare consolidatedconsolidated toto maximizemaximize investmentinvestment earnings.earnings. InvestmentInvestment incomeincome isis allocatedallocated toto eacheach fundfund basedbased onon thethe fund'fund' ss respectiverespective participationparticipation andand inin accordanceaccordance withwith generallygenerally acceptedaccepted accountingaccounting principles.principles. TheThe investmentinvestment portfolioportfolio shallshall bebe structured,structured, toto thethe extentextent possible,possible, toto matchmatch investmentinvestment maturities maturities withwith knownknown cashcash needsneeds andand anticipatedanticipated cashcash flowflow requirements.requirements. InvestmentsInvestments willwill bebe diversified,diversified, toto thethe extentextent practicable,practicable, toto controlcontrol thethe riskrisk ofof lossloss resultingresulting fromfrom overover - - concentrationconcentration ofof assetsassets inin aa specificspecific maturity,maturity, issuer,issuer,