Fort Walton Beach Council agenda — 05-15-2007 special agenda - budget policy — reading text

dOt q LOOl ' 6 '~'  Using the infonnaUon and data gathered in Tasks 1 througb 4, HDR'WiIl perform an analysis of the watershed water quality using the selected and County approved water quality model. Deliverable: Existing Conditions Models Task' Recommendations and Cost Estimates The existing culverts under Mattin Luther King. Ir. Boulevard will be evaluated to determine if they are still adequate for the new development west of the street. The HBC- l and HBC- RAS modols will be updated with the new culverts under Martin Luther Ir.Boulevard to look at potential downstream flooding. Ki:n& Existing detention facilities in the watershed will be evaluatJ:d.for potential upgrades to improve treatment capabilities. Potential sites for new detention faclli.ties that could conect and treat uncontrolled surface flow before it enters the creek w111 also be evaluated. HDR will evaluate water quality Improvement methodsIoptions based on the analysis results when compated to the existing conditions modd data. Options will be IeViewed with the County and cost e~~ Rfes wi1l be provided for each viable option.HDR will recommend a preferred option that provides optimal costIbenefit to the County. Deliverable: Option S\lmmAty Recommended Plan Model Tuk' Report Preparation HDR will compile the information,analyses. calculations,assumptiOJ1St estimates and conclusions into a final report.The report wiD be furnished as a hard copy and in digital format. DeHverable: Final Report A'I1W 9' d B€V9 ' ON WdOE: \ tOOl ' 6 '  CITY COUNCIL SPECIAL MEETING May 15, 2007 Special Meeting Agenda Consideration of major policy issues to guide the development of the FY 2007- 08 Operational Budget and Capital Improvements Program City Manager) SP- 3 Agenda Item Number: FY 2007. 08 Budget Policy Workshop INTRODUCTION The City of Fort Walton Beach is committed to providing quality services in a cost controlled manner, developing balanced sources of revenues to fund programs, improving and maintaining infrastructure, and maintaining prudent cash reserves for the betterment of the community's citizens and businesses. City Council' s primary responsibility is to shape public policy in order to achieve the citizens' desires for the future. The core of the City' s budget process places an emphasis on sound fiscal management and operational decision- making in accordance with the goals and objectives established by the citizens, City Council, and staff through the City' s Vision and Strategic planning processes. Staff has prepared this informational document and will conduct a Budget Policy Workshop with City Council on May 15 at 5: 30pm. This workshop is intended to provide the framework within which the FY 2007- 08 budget, to be distributed to City Council in July, will be prepared. It is not intended to be a detailed review of the budget and the decisions are not necessarily binding, However, if City Council' s ultimate policy objectives can be built into the budget from the beginning, the entire budget process will be more efficient and effective. A major factor in preparation of the FY 2007- 08 budget will be Ad Valorem Tax reform. The Florida Legislature will convene in Special Session June 12-22 to iron out details. Several bills have been introduced in both Chambers, with the worst-case impact to the City being a 31% or $ 1. 9 million decrease in property tax revenue. Another consideration for next year' s budget is reduced Communications Services Tax revenue. Staff estimates a $ 900K reduction in revenue, in addition to the first annual 115K reimbursement for overpayments received in the 28- month period June 2004 - September 2006. The objectives of this budget workshop are: Assist City Council in understanding the City' s available revenue sources and plan of operation, and allow revisions as desired. Historical data is presented for comparative purposes. Establish service levels and funding mechanisms in accordance with City Council' s service priorities. Ascertain City Council' s position on certain policy issues critical to development of the Fiscal Year 2007- 08 operational budget and capit:1.! improvements program. These policy decisions take into consideration the likelihood of reductions in Ad Valorem and Communications Services taxes. Staff respectfully requests that City Council reach a consensus on the policy decisions presented in order to guide the FY 2007~08 budget development process. OOY~: Manager 1 of 36 FY 2007-08 Budget Policy Workshop ECONOMIC INDICATORS NATIONAL ECONOMY lid. Consumer Confidence Index Consumer Price Index Help Wanted Advertising Index Note: arrow indicates direction of performance and color denotes if the change has a positive ( green) or negative ( red) impact: National and local economic indicators are useful for evaluating the framework within which the City of Fort Walton Beach operates. The Consumer Price Index ( CPI) - prepared by the US Bureau of Labor Statistics and the most widely used gauge of inflation - increased 0. 5% during the month and is 2.4% higher than a year ago. The Consumer Confidence Index - prepared by The Conference Board based on a representative sample of US households - decreased 3.6% during the month and is 0. 3% less than a year ago. The Help Wanted Index - also prepared by The Conference Board and measuring job offerings in major newspapers across the country - decreased 3. 2% during the month and is 20.6% lower than a year ago. LOCAL ECONOMY Retail Sales Housing Affordability Unemployment Rate Note: arrow indicates direction of performance and color denotes if the change has a positive ( green) or negative ( red) impact: Our local economy by and large follows the national economy. Retail Sales - as reported by the Haas Center for Business Research and Economic Development - decreased 4. 3% during the last quarter and are 1. 5% less than the prior year as a result of higher interest rates. The affordability of housing - as reported by the Haas Center - improved 0. 7% during the last quarter and is 1. 4% better than a year ago. The standard definition of housing affordability is that the cost of buying a house uses less than 30% of annual household income. Despite increased insurance premiums, tax assessments, and interest rates, recent declining house prices have increased affordability in our area, which is now back below the US average. Local unemployment - as computed by the Agency for Workforce Innovation - is currently 2. 6%, down 3. 8% from the prior month but up 4. 0% from a year ago. Population - Since the 2000 census, the City' s population 25 currently 20, 882) has increased 4. 5% while the County has seen its population ( currently 192, 672) grow 13. 0% according to 20 the Bureau of Economic & Business Research. ( The population 15 decrease seen in the year 2000 for both the City and County is 10 the result of census figure adjustments.) As the City is nearly built- out and few property owners voluntarily annex, population 5 growth is limited. Many state revenue sharing formulas are o population based, resulting in only marginal increases in 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 intergovernmental revenues for the City. While our population is not increasing, our residents demand that current service levels and infrastructure be sustained or improved while enjoying the benefits of new programs and services such as a DUI officer, 2 CRA officers, Advanced Life Support ( ALS), sewage pump- out stations, septic tank replacement, increased parks and recreation facilities, e- government, and neighborhood improvements. 2 of 36 FY 2007- 08 Budget Policy Workshop REVENUES FY 2006- 07 Budgeted Revenues - All Funds 37, 634, 154 Other User Fees 2. 5% Other Revenue Appropriations 4. 1% 1. 6% Licenses & Pennits 1. 1% Ad Valorem Taxes 18. 5% Golf Fees 8. 7% Ad Valorem Taxes - Ad Valorem taxes comprise 25% of General Fund revenues and 100% of Community Redevelopment Agency ( CRA) Fund revenues and are anticipated to generate $ 6. 0M exclusive of County TIF) in FY 2006- 07. Taxable Assessed Value Due to continuous redevelopment 1. 200 downtown, the CRA Fund has 1. 000 experienced a greater growth in Ad Valorem revenue than the General 800 Fund. Prior to FY 2005-06, Ad Valorem 600 revenue in the General Fund increased 4. 1 % annually on average, providing 400 moderate increases without 200 necessitating a rise in the millage rate, compared to 14. 6% annually in the CRA 0 2000 2001 2002 2003 2004 2005 2006 2007 Fund. However, in the last two years the Budget General Fund increase has averaged Non- CRA CRA 13. 9%