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

library assistant from 0.70 to 0.62 FTE, golf cart/range attendants from unpaid marshal to 0. 94 FTE, golf club attendants 0. 94 FTE to golf cart/range attendants 0.94 FTE, service worker III to heavy equipment operator, service worker III to sewer inspector OTHER ASSUMPTIONS & CHANGES REVENUES (detailed discussion on pages 29 -31) 1. Revenues are estimated at conservative levels to guard against unanticipated economic shifts, legislative changes, or collection levels. General government revenues are largely budgeted based on historical collection and growth levels. Enterprise revenues are based on historical usage and/ or number of customers, adjusted for current rates. City of Fon Walton Beach, FL City Manager' s Budget Message 2. Water and sewer rates will increase 3. 0% on October 1, 2012 per the current multi -year rate plan adopted by City Council in March 2010. 3. No changes to the fee schedule are proposed. 4. Use of reserves — Appropriations from fund balance ( governmental funds) or net assets enterprise funds) are budgeted as follows: a. General Fund — $9, 500 from restricted fund balance ( Harvey Trust - funding bequeathed to the City for library purposes) for new shelving and painting the interior walls and exterior rails; $ 55, 148 from unassigned fund balance for the performance incentive program (only a portion funded from reserves). b. Law Enforcement Trust Fund — $ 14, 700 from unassigned fund balance for crime prevention and safe neighborhood activities (required per Florida Statute to spend 15% of prior year forfeitures on these types of activities). c. Utilities Fund — $37, 500 from restricted net assets ( 2005 Utility Bond proceeds) for water line replacements; $ 128, 278 from restricted net assets ( renewal & replacement) for equipment replacements. EXPENSES ( detailed discussion on pages 33 -36) 1. Wages have been adjusted as follows: a. Cost of living adjustment — Due to fiscal constraints, no October 1 cost of living wage adjustment is budgeted for employees. Instead, all full -time employees will receive a lump -sum payment of $500. The amount will be pro -rated for part -time employees based on their full -time equivalency. The estimated cost is $ 156K (including FICA). b. Performance adjustment — Due to fiscal constraints, no wage adjustment is budgeted for employees on their anniversary date. However, employees may elect up to $ 500 or 32 hours leave based on their annual evaluation score as a performance incentive. Employees electing a lump -sum dollar amount do not receive a permanent pay increase subject to future wage adjustments and pension contributions. The initiative is therefore funded partly from reserves in the General Fund. Employees electing leave hours must use the time before their next anniversary date and will not be paid in the event of separation from employment during the year. While the full amount of $ 156K ( including FICA) is budgeted for the performance incentive, the full amount will likely not be incurred since all employees do not receive superior evaluation scores and some employees will elect leave time. 2. Benefits have been adjusted as follows: a. Medical insurance — Staff anticipates a less than 3% premium increase, and the City' s contribution is budgeted to decrease $ 6K or 0. 4% due to position reductions. The following vehicle and equipment replacements are budgeted at a total cost of $330K; fleet replacement schedule on pages 162 -164. a. General Fund, Fire Inspector 1/ 2 ton truck b. Utilities Fund, Sewer Collection, flat bed dump truck c. Sanitation Fund, two knucklebooms City of Fort Walton Beach, FL City Manager' s Budget Message More 4. The following capital improvement projects are budgeted at a total cost of $248K. detailed information is available on pages 168 -199. Recurring a. General Fund, Street Resurfacing b. CRA Fund, Street Resurfacing c. Utilities Fund, Water Line Replacement Non -Recurring a. There are no non -recurring projects this fiscal year 5. Certain capital improvement projects, grants, and/ or purchases that were authorized, budgeted, and appropriated by City Council in a prior fiscal year but are incomplete as of September 30 are carried forward into the new fiscal year. These special projects and purchase order encumbrances are identified in the budget resolution at the end of the document. PERFORMANCE EXCELLENCE PROGRAM In May 2011, City Council adopted the City' s five core values, which is the first milestone in instituting the City' s new Performance Excellence Program. In September 2011, City Council adopted the City' s updated Mission Statement and Vision Statement. Related statements will be developed for each department. Finally, short -term and long -term strategic goals will be developed, along with corresponding departmental objectives to support the achievement of the citywide goals. The next step in the Citys' journey towards Performance Excellence is to implement a concept called " Rounding ", which can be compared to doctors making their " rounds" in hospitals to check on patients. Each month, managers will " round" with each and every employee under their direct supervision, asking specific questions to allow the managers to better stay on top of what employees really want and need, gather valuable information in a structured way, become proactive, help the City get a better handle on problems before they occur, and reinforce positive behaviors. Rounding is quite simply a proactive vs. reactive approach that promotes all of the City' s Core Values: Integrity and Accountability within the management team as the managers identify any outstanding issues and have the opportunity to quickly address them and report the status back to the employees; managers will keep monthly logs and status reports that will be reviewed by management at each level; Teamwork between the managers and the employees through improved communication via monthly face -to -face meetings, which fosters a collaborative working environment to address good and bad processes; Continual Improvement for the City as a whole through the identification of the processes that are working well and not working well, and the identification of what tools and equipment are needed to improve efficiency; and Customer Service improves through the proper handling of the issues and the promotion of the other four Core Values. City of Fort Walton Beach, FL City Manager' s Budget Message The collection and measurement of performance data is a central requirement for improving performance and establishing benchmarks for future quantifiable performance indicators. While departmental objectives related to the Performance Excellence Program cannot yet be established, new performance measures designed to be more measurable and meaningful are being developed. It was impractical to collect prior year data for these new measures. For those who have read the budget in the past, we hope you will find these initial new measures more indicative of the purpose, quality, and value of all the programs and services the City provides! ACKNOWLEDGEMENTS Preparation of this budget would not have been possible without the efficient and dedicated services of Finance Director Brandy Ferris and Budget & Grants Manager Charlotte Dunworth. I would like to express my appreciation to all Department Directors and staff who assisted and contributed to the preparation of this budget. I would also like to thank the Mayor and City Council for their support in maintaining the highest standards of professionalism in the management of the City of Fort Walton Beach' s finances and for their attention in conducting the financial operations of the City in a responsible and progressive manner. Sincerely, Michael D. Beedie Acting City Manager City of Fort Walton Beach, FL City Manager' s Budget Message a M, GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Fort Walton Beach Florida Special Performance Measures Recognition For the Fiscal Year Beginning October 1, 2011 President Executive Director The Government Finance Officers Association of the United States and Canada ( GFOA) presented a Distinguished Budget Presentation Award to the City of Fort Walton Beach, Florida for its annual budget for the fiscal year beginning October 1, 2011. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. City of Fort Walton Beach, FL 9  Executive Budget Summary Where the Money Comes From... And Where the Money Goes Budgeted Revenues: $ 33, 497, 609 Budgeted Expenditures: $ 33, 497, 609 Capital Ad Valorem OeM Service, Contlngencies, Reserves, Taxes,