Fort Walton Beach Council agenda — 05-20-08 special agenda - budget policy issues — reading text

the Cost Allocation Plan and for a proportionate share of employee morale, property and casualty insurance, and postage - $ 911 K. 5. The Golf Fund reimburses the General Fund for a proportionate share of the City Attorney's time, employee morale, property and casualty insurance, and postage - $ 62K. The Golf Fund does not reimburse $ 400K per the Cost Allocation Plan. Along with adopting a five -year rate plan in April 2006, City Council endorsed the General Fund continuing to absorb a large portion of the Golf Fund' s cost allocation expenses for the next three years ( after which time the issue would be reevaluated) in order to permit the Golf Fund to retain all revenues for operational use and to replenish net assets. 6. As feasible, a portion of the enterprise fund' s surplus is transferred to the General Fund as a resource for General Fund expenditures. This practice is permissible by GASB. Policy Impact 1. Interfund transfers are an important element to balancing the General Fund budget, which houses the full cost of services benefiting all departments of the City. 2. Staff will adjust the interfund transfers for inflation and as appropriate based on any program or service level changes for FY 2008 -09. 3. A separate workshop is scheduled with City Council on June 10 to discuss the Golf Fund. Recommendation Continue the current method of allocating shared expenses via interfund transfers. 31 of 34 FY 2008 -09 Budget Policy Meeting 31 OT 34 FY 2008 -09 Budget Policy Meeting OUTSIDE AGENCY FUNDING Policy Decision Should the City continue the current level of funding to outside agencies? Background 1. The following agencies are funded in the FY 2007 -08 budget: TOTAL Chamber of Commerce —General Fund $ 25, 000 Economic Development Council ( EDC) — General Fund $ 22, 226 Panhandle Animal Welfare Society ( PAWS) —General Fund $ 79,352 Chamber of Commerce —CRA Fund $ 15, 000 TOTAL AGENCY FUNDING $ 141, 578 2. The Chamber of Commerce provides promotional material and information to people moving to the area. Funds are appropriated by City Council on an annual basis. 3. The Economic Development Council promotes businesses and economics in the Commerce & Technology Park. Funds are appropriated by City Council on an annual basis. 4. The Panhandle Animal Welfare Society provides animal control services. FY 2007 -08 is the first year of a three -year contract. Discussion 1. City Council has in years past questioned the benefit that citizens and businesses receive from the Chamber and EDC, and has expressed an interest in weaning groups off City funds. 2. The City received a request from the Burnette- Harmon -Wood Community Resource Center to assist with funding the future Burnette Community Park at the corner of Lovejoy Rd and Burnette Ave., though the specific amount of funding was not indicated. Policy Impact 1. Eliminating funding for outside agencies would free revenues to maintain funding for existing City program and services. 2. Staff proposes reducing General Fund funding to the Chamber and EDC to $ 10, 000 each. Recommendation Reduce funding to the Chamber of Commerce and Economic Development Council in FY 2008 -09 to 10, 000 each in the General Fund. 33 of 34 FY 2008 -09 Budget Policy Meeting 34 of 34  A 0 0 awl- n CD cr) sn CD ru n C x a O r r: t1i, 2  00 mm CC nn QL DD CDCD p toto 37 Cl).Cl). CDCD CD oo COCO D CC 0 CDCD oo U)U)_._. 00 CD cQ Oo o mm aa nn CD CDCD 00 3 n nn rr n"n" mm 3 C iv rr V CC< < 7070 W OO mm CD O OCDOCD CY 0 00 c,c, r) r) DD CD CLCL i T r A rmin mnmn 7070 DD O CDCD OO 3 r 1- a) 0 WW CLCL OO 33 0 w CD CD 0 CDCD CD 0 mm 00 CD O 0. U) cdcd CrCr CD 0 U) CDCD DD CD CD 0 nn crcr rrrr CD OO CDCD CC 0 DD CD NN  cn. oo r CD 0 CD o IM CD CD CD N N w 0 O 3 cr cD CD p W c: o O 3 CD o 1) CD O C7 CD CD CD CD 0 C n 51) O C I- V w no CD CD 0 p O O 3 C O O O CD O O go p CD CD O CD W rn 0=3 6) CD N) CD op C r-4- co w o O n 2 CD 2) Q. U) CD CD w O O QL O  XF- iA t IIIIII r cD CD cn N Et V CD C CD a s- t OO ww VV WW LbLb OO VV OO 22 CoCo 11 LL OO MM x_ x_ DD nn DD CC DD yy  1. E - - t I C r D• CD C j CD CD • V J O , C O 0 D i++ 3 9 1 4- =4- = T CD • CD C w