Fort Walton Beach Ordinance — 1740 Adopt Budget FY07-08 — reading text

to pages 389- 393. 10. Capital outlay ( Le. equipment) purchases are down $ 288, 209 or 21. 2% from the prior year, of which computer, vehicle, and equipment purchases are down $ 54, 913 or 5% as a result of lower revenues. Computer requests were prioritized 1 - 77 by the Information Technology department and the top 25 in need of replacement citywide were funded. Vehicle and equipment purchases have been limited to those for which downtime hinders service delivery or repair costs are excessive. For a list of purchases, please refer to pages 394- 397. 11. Likewise, capital improvements ( Le. infrastructure) are down $ 395, 541 or 18. 2% from the previous year. For a list of capital improvement projects, please refer to pages 236- 239. 12. The following projects are directly related to 2007 Strategic Plan goals: a. Effective & Efficient Government: no additional funding; Alternative Service Delivery study currently underway b. Hiqh Qualitv Services: no additional funding c. Communitv Qualitv: Sidewalks $ 10, 000; Carson Drive Cul- Oe- Sac $ 20, 000; MainStreet Streets cape $ 991, 395; Chestnut Avenue Streetscape $ 85, 000; Storm Drainage Program 40,000; Stormwater ( Saltwater) Pipe Replacement $ 7, 200; Water Quality Initiative $ 25, 000. d. Economic/Financial Viabilitv: Replace 2" & Larger Water Meters $ 102, 227; Maintain golf rates to increase rounds played. 13. 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 ordinance at the end of the document. City of Fort Walton Beach, FL 18-  City Manager' s Budget:Message GENERAL FUND ALTERNATIVES The General Fund budget as prepared incfudes a $ 520, 658 appropriation from undesignated fund balance to bridge the gap between revenues and expenditures. Although it is not prudent to use reserves to fund ongoing operational expenses, in light of the pending alternative service delivery study results staff did not reduce service levels ( other than capital improvements) so as not to take actions that may possibly run counter to the study findings. Staff anticipates implementing the study' s recommendations by January 1, 2008 and amending the FY 2007-08 budget accordingly to eliminate the use of reserves for operations. Shown below are possible budget reductions to achieve a lower appropriation from General Fund reserves should City Council desire to reduce the budget prior to the results of the alternative services delivery study. 520, 658 Appropriation from reserves/ non- recurrinq revenue No action necessary - proposed budget 443,709 Appropriation from reserves/ non- recurrinq revenue 15, 667 Reduce Senior Center hours from 40/ wk to 30/ wk 32, 697 Reduce Library hours from 64/wk to 50/ wk <net of lost OCPlC revenue) 28,585 Reduce Museum hours from 39/wk to 26/wk (net of lost revenue) 76, 949 Total Savings . 298. 163 Appropriation from reserves/ non- recurrinq revenue 76,949 Savings from scenario above 49, 361 Reduce employee COLA from 1.4% to 1. 0% 78, 185 Close Senior Center 18, 000 Eliminate Tennis Center funding 222,495 Total Savings 0 Appropriation from reserves/ non- recurrinq revenue c_ 222,495 123, 402 Savings from scenario above Reduce employee COLA from 1. 0% to 0% 102,479 Increase all employees' pension contribution by 1 % ( amount reflects General Fund savings only) 60, 000 Purchase 1 police vehicle instead of 4 4, 800 Eliminate HTE web training 7.482 Reduce Finance department travel/ training 520, 658 Total Savings Other Considerations not included in proposed budqet: 279, 160 Remove caps on public service tax (utility tax) revenue City of Fort Walton Beach, FL 19- City Manager' s Budget Message IaI_- AWARDS & ACKNOWLEDGEMENTS f The City received the Government Finance Officers Association' s ( GFOA) Distinguished Budget Presentation Award for its annual Budget dated October 1, 2006. This was the eleventh consecutive year that the City received this prestigious award. Preparation of this FY 2007- 08 budget would not have been possible without the efficient and dedicated services of Finance Director Lisa Absher, Budget & Grants Manager Charlotte Dunworth, and Executive Assistant Carole Jones. 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 unfailing support for 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. Respectfully submitted, 9~. Ph~ utct~~ er I City of Fort Walton Beach, FL 20-  Executive Budget Summary 1 It is the Mission of the City of Fort Walton Beach to be a leader among cities and in the region at large in delivering outstanding quality services to all citizens through innovative and efficient use of resources. Where the Money Comes From ... And Where the Money Goes Budgeted Revenues: $ 36,610, 668 Budgeted Expenditures: $ 36, 610, 668 State Revenue Recreation Fees Culture & Capital' Sharing, Intergov\ Fines, Forfeitures. 1. 1% Recreation Improvements etc. Other Fees 4. 9% 7. 9% 12. 8% 2. 5% Transportation 4.9% Physical Environment 18. 0% User Fees are the largest source. of revenue - 37. 5% - Public Safety includes the police and fire departments for the City and generate $ 13. 8M. Unlike taxes, these and comprises the largest expense to the City at $ 8. 1 M charges are directly related to the service or 22. 1 %. The increase of $269K or 3.4% received and are collected for recreation & includes a 1.4% cost of living. However, it golf activities, water and sewer services, is anticipated the Oka/ oosa Co. Sheriff and garbage collection, and building permits, South Walton Fire District - the City' s among other activities. The decrease in this category of primary competition - will provide higher adjustments. revenue is largely attributable to decreased play at the Negotiations with the Fire Union will commence in early City' s two golf courses and elimination of the recycling September. program. Capital Outlay includes the purchase of computers, Property Taxes will decrease for most Floridians as a vehicles, equipment, and other assets with a value result of legislative property tax reform. The City is greater than $ 500 and a useful life of more than two required to reduce its millage rate 9. 7% years. Capital Improvements defines the acquisition, from 4. 6458 to 4. 1986, although revenues construction, replacement, renovation, or will only decrease 1. 5% due. to new repair of facilities and infrastructure with a construction. Property taxes, the second largest source value greater than $ 25, 000 and a useful of revenue, comprise $ 5. 9M or 15. 5% of revenues. life of ten years or more. Fewer resources means Other Taxes total $ 5. 5M and include fuel tax, franchise equipment replacement and project delays, which leads to higher