Fort Walton Beach — Fiscal Year 2022-23 Adopted Budget — reading text

Crane truck Water 2695 Heavy 401 1340 Distribution 2019 7/18/19 330 1116 Flat Bed Dump Body 2698 Light 401 1310 Water Ops 2019 8/27/19 387 3425 F-150 2711 Heavy 403 1360 Solid Waste 2020 4/12/20 1373 Side Loader 2712 Heavy 403 1360 Solid Waste 2020 5/11/20 Side Loader 2650 Heavy 405 1380 Stormwater 2016 9/28/16 3280 14029 Elgin Eagle Sweeper 2662 Heavy 405 1380 Stormwater 2017 4/3/17 740 5116 2688 Light 405 1380 Stormwater 2018 11/6/18 374 9123 DOC Van Sewer 2690 Heavy 405 1350 Collections 2019 2/13/19 2146 8101 Vactor 2703 Heavy 405 1380 Stormwater 2020 11/4/19 328 742 F-350 2707 Heavy 405 1380 Stormwater 2020 2/12/20 340 Chevy Silverado 186 Capital Improvements Program The City’s Capital Improvements Program (CIP) is a five-year planning and budgeting tool that identifies the acquisition, construction, replacement, or renovation of facilities and infrastructure with a value greater than $25,000 and a useful life of ten years or more. Capital expenditures may be recurring (e.g. street resurfacing) or non-recurring (e.g. construction of a new park). CIP PROCESS The FY 2021-22 budget, the first year of the CIP, is the only year for which funding may legally be appropriated. Future years’ funding requirements are identified, but are not authorized. The CIP provides information on the current and long-range infrastructure needs of the City and provides a mechanism for balancing needs and resources as well as setting priorities and schedules for capital projects. Each project or program is assigned a four-digit CIP number so expenditures can be easily tracked during the year and also across years. Each year as part of the budget process, the list of projects is reviewed for relevance, need, cost, and priority. The five-year CIP is revised annually based on the following parameters: • Relevance to City Council priorities, and Federal or State mandates Relevance to Priorities, Federal & State Mandates • Maintenance and preservation of current infrastructure • Public health and safety Public Health & Safety • Operating budget impact Preservation & Maintenance • Recreational, cultural or aesthetic value and Recreational & Cultural Value • Funding source Each submission is reviewed on an annual basis and ranked in accordance with the above criteria. Once prioritized, the funding source is identified and the project is placed in the budget if funding is available. The Enterprise Funds (Utilities, Sanitation, and Stormwater) are funded with user fees and do not compete with other City projects for funding. The estimated project costs to be funded within the CIP include all costs related to design, engineering, acquisition, construction, and project management. The City’s Strategic Plan Objectives are referenced throughout this document. Each CIP is categorized by objective. In addition to the text, these objectives are highlighted through icons. Please reference the Table of Contents for locations of more information regarding the City’s Strategic Plan. City of Fort Walton Beach, FL 187 Capital Improvements Program Objective #1 – City Employees In April 2022, City Council directed Staff to focus on City Employees moving forward. Numerous employee incentives are included in the FY 2022-23 budget. Objective #2 – Downtown Master Plan / Around the Mound Implementation In Fall 2022, FDOT will award the contract for the PD&E phase of Around the Mound to which the City has allocated up to $1 million as a match; the PD&E phase will take approximately two years to complete; in FY 2021-22, the implementation of the Downton Master Plan proceeded with the completion of an Infrastructure Master Plan and Library Relocation Study. Objective #3 – Expansion of City Recreation Amenities In FY 2022-23, the design of the Preston Hood Athletic Complex Expansion will be completed by January 1, 2023 with construction starting in April 2023. Objective #4 – Public Safety For FY 2022-23, new pay scales for Fire and Police Departments will be implemented to allow the City to remain competitive for recruitment and retention of Firefighters and Police Officers. City of Fort Walton Beach, FL 188 Capital Improvements Program PROJECTS BY STRATEGIC OBJECTIVE Strategic Objective, Downtown Master/Plan Around Strategic Objective, the Mound Public Safety, 39% Implementation, 39% Strategic Objective, Expansion of City Recreation Amenities, 22% FINANCING ALTERNATIVES Capital improvements may be funded by a variety of means depending on the nature of the project, availability of funds, and the policies of City Council. Financing decisions are made based on established City policies and available financing options directly related to project timing and choice of revenue sources. The funding methodology for the CIP is reliant upon available resources including funds from grants and user fees, useful life of the improvement, and sharing the costs between current and future users. While some projects can be delayed until funds from existing revenues are available, others cannot. The City explores all options such as ad valorem taxes, grants, user fees, bonds, loans, and reserves to fund improvements. The following financing sources are available to fund the CIP: • Ad Valorem Taxes – The City rarely uses property taxes as a debt security due largely to the required electoral approval (voter referendum) prior to issuance. Property taxes are directly linked to the assessed value of individual property, not to the consumption of specific goods and services (e.g. sales tax). • Non-Ad Valorem Revenues – Non-ad valorem revenues can be pledged to support various types of bond issues. Such bonds are similar to general obligation bonds in that proceeds are often used for general government purposes and repayment is unrelated to the revenue generating capacity of the project being financed. However, unlike general obligation bonds, non-ad valorem revenue bonds are payable solely from revenues derived from the pledged revenue (such as sales tax, local option fuel tax, and the guaranteed portion of municipal revenue sharing). City of Fort Walton Beach, FL 189 Capital Improvements Program • Special Revenue Sources – Include the following: • Impact Fees – Fees charged in advance of new development and designed to help pay for infrastructure needs resulting from the new development. These fees may only be charged to those who directly benefit from the new capital improvement and the fee must fairly reflect the cost of the improvements (e.g. water and sewer impact fees). • Special Assessments – Like impact fees, special assessments are levied against residents, agencies, or districts that directly benefit from the new service or improvement (e.g. sidewalks and street paving) and must be apportioned fairly. • User Fees and Charges – These revenues include a variety of license and permit fees, facility and program fees, and fines. They are rarely used as debt security for non-Enterprise Fund capital projects, but could be a source of direct funding of a small capital improvement. • Enterprise Fund User Fees – These revenues are derived from self-supporting business enterprises - utilities, sanitation, and stormwater - which provide services in return for compensation. The enterprise revenue used to secure debt is commonly termed “net-revenue” consisting of gross revenues less operating costs. • Note – A written, short-term promise to repay a specified amount of principal and interest on a certain date, payable from a defined source of anticipated revenue. Usually notes mature in one year or less. Rarely used by the City. • Commercial Paper - Generally defined as short term, unsecured promissory notes issued by organizations of recognized credit quality, usually a bank. Rarely used by the City. • Bond – An issuer’s obligation to repay a principal amount on a certain date (maturity date) with interest at a stated rate. Bonds are distinguishable from notes in that notes mature in a much shorter time period. • General Obligation Bonds – A bond secured by the full faith and credit of the City’s ad valorem taxing power. These are rarely used in Florida, and by the City in particular, due to the requirement for a voter referendum. • Revenue Bonds – Bonds payable from a specific revenue source, not the full faith and credit of an issuer’s taxing power and require no electoral approval. Pledged revenues are often generated by the operation or project being financed (e.g. sales tax, water user fees, golf user fees). City of Fort Walton Beach, FL 190  CITY OF FORT WALTON BEACH, FL Five Year Capital Improvements Program FIVE YEAR CIP Project Name FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 TOTAL TBD FWB PD Carport 50,000 - - -