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

Golf Golf Club .. j City of Fort Walton Beach, FL 30- Budget Overview DEPARTMENT & DIVISION INFORMATION A Department is a major administrative segment of the City that indicates overall managemenf responsibility for an operation or a group of related operations within a functional area ( e. g. Police Department, Parks and Recreation Department, Utilities Department). The smallest organizational unit budgeted is a Division. Each division indicates responsibility for one functional area ( e. g. Library Division within Parks & Recreation Department). When divisions are combined, a department is formed. In order to provide City Council and citizens with a well- rounded presentation of each department, the following elements are presented in the annual budget. Orqanizational Chart - Identifies the relationships of staff members. Position Listinq - Identifies the number of full-time equivalent positions. Budqet Summary - Presents revenues and expenditures. Function - Narrative information regarding the programs and services provided. Goals & Obiectives - Outlines major goals for the new fiscal year and links them to the Vision and Strategic Plans when appropriate. These objectives describe the purpose or benefit to be provided to the community. Certain objectives may not be able to be completed within one fiscal year. Significant Accomplishments - Lists the major accomplishments in the previous year. Performance Measures - Identifies workload, efficiency, and effectiveness measures indicators reflecting major activities. While workload indicators identify " how much" activity is being performed, efficiency indicators identify " how well" the division is performing its activities, and effectivenes$ indicators identify, how well" the division is meeting the needs of the public and the organization. FINANCIAL POLICIES The financial policies presented below set forth the basic framework for the overall financial management of the City, as well as provide guidelines for evaluating current activities and proposals for future programs. Financial Planning Lonq- Ranqe Planninq - Update the Vision Plan every ten years and the Strategic Plan annually to ensure current and proposed programs and services reflect the values shared by citizens, City Council, and staff and to evaluate the impact on revenues and/ or reserves. Icons are used throughout the budget document to clearly illustrate the translation of the goals and priorities of these plansinto the budget. Asset & Infrastructure Inventory - Evaluate ( and reprioritize as necessary) the five- year capital needs of the City annually as part of the budget process with consideration of the Vision and Strategic Plans. Assets, as defined for purposes of this review, include computers, vehicles, and motorized equipment. Infrastructure improvements ( e. g. street resurfacing, water/ sewer lines, parks) are evaluated separately during development of the five- year capital improvements program, with consideration of the Vision and Strategic Plans. Balanced Budqet - Prepare a balanced budget each fiscal year in accordance with Florida statutory requirements for municipalities. The budget is considered balanced if the total of all available financial resources ( either on hand at the beginning of the fiscal year or generated during the fiscal year) equals or exceeds the total of all financial requirements ( either planned spending during the year or funds required to be on hand at the end of the fiscal year). The requirement for a balanced budget is established at the fund level and must be met for each individual fund budgeted. Financial Monitorinq - Prepare monthly financial reports for the City Manager and Finance Director detailing revenues and expenditures by fund, department, and division. Identify and explain any significant variances between budget and actual. Report financial information to City Council quarterly. Revenues Taxes - Maintain the millage and other tax rates at levels commensurate with the service levels being provided. Evaluate annually as part of the bUdget process. City of Fort Walton Beach. FL 31- Budget: OvervieW ' User Fees - Maintain fees and rates at appropriate levels to fund their corresponding purpose, especially 0\ in the Enterprise funds. Evaluate annually as part of the budget process. . Non- RecurrinQ Revenues - Fund recurring expenditures with recurring revenues. One- time revenues will be reserved for future emergencies when possible ( e. g. designated for hurricane repairs). Unpredictable Revenues - Budget unpredictable revenues at conservative levels ( e. g. building permits, impact fees) to safeguard against a shortfall. Expenditures OperatinQ Expenses - Pay all current year operating expenses with current year revenues and/ or available fund balance. Pension Funds - Adequately fund the City' s three pension plans, as required by law. If the City' s annual contribution is over- budgeted, appropriate the remainder as designated fund balance. ContinQencies - In addition to anticipated expenditures, the City appropriates contingency funds in each fund to cover unanticipated or emergency expenditures. The State of Florida allows up to a maximum of 10% of anticipated revenues to be allocated toward contingencies. Special Proiect Carry-Overs - These are projects and/ or purchases that are incomplete as of September 30 of any fiscal year that will be continued and made part of the appropriations for the ensuing year. These are large items ( usually capital purchases, projects, or studies) that were budgeted in a prior year but were not completed due to time constraints. These projects were authorized, budgeted, and appropriated by City Council in a prior fiscal year and are carried forward into the new year by Ordinance as special projects funded with the corresponding carry-over appropriations of the prior year. Encumbrance Carry-Overs - In general, purchase orders close out at the end of the fiscal year unless they are identified for carry- over as part of the budget process of the ensuing year. These encumbrances were authorized, budgeted, and appropriated by City Council in a prior fiscal year and are carried forward into the new year by Ordinance as encumbrances funded with the corresponding carry- over appropriations of the prior year. Budget Transfers Budget transfers may be used to transfer appropriations between line items within a fund, not to increase the totalbudget or to transfer resources between funds. Transfers between funds and transfers to increase appropriations are permitted through a budget amendment adopted by resolution of City Council. The Finance Director and City Manager are authorized to approve budget transfers, within dollar limits set by Administrative Policy, between operations and maintenance line item accounts within the same division/ department as well as between divisions/ departments. Transfers from personal services, capital outlay, or capital improvement accounts to operations and maintenance accounts are not permitted without Finance Director or City Manager approval. As part of the quarterly fixed asset reconciliation, the Finance Department transfers unspent capital outlay and capital improvement funds into a capital residuals account which may be used for other project overages or unanticipated expenditures at the City Manager' s discretion. All budget transfers are performed in the City' s accounting system by the Finance Department. Interfund Transfers The City' s interfund transfers are comprised of two components. The basis for interfund transfer amounts is found on pages 391- 393. Cost Allocation Plan - Perform monthly transfers to provide reasonable and proportionate reimbursement to the General Fund for services identified in the City' s Cost Allocation Plan ( Plan updated in 2003 and adjusted annually for inflation): Acc;ounting - payroll, accounts payable and receivable, general accounting Human Resources - recruitment & retention, benefits administration, insurance & risk management Information Technology - hardware & software management, network support City of Fort Walton Beach, FL 32- Budget Overview Public Works - engineering, service maintenance, fleet maintenance, drainage, general labor Purchasing - competitive bidding, purchase of general goods and supplies Other Shared Expenses - Allocate costs that are not directly related to services provided by other funds, though nonetheless partly attributable to those funds, as well as new programs and services not in place at the time of the Cost Allocation Plan update. Examples include property and casualty insurance, attorneys, employee morale, special events, reports/ newsletters, and CRA police officers. Reserves General Fund The Government Finance Officer' s Association ( GFOA) recommends, at minimum, an unreserved fund balance in the General Fund of no less than 5% - 15% of regular General Fund operating revenues or of no less than 1 - 2 months of regular General Fund However, the actual operating expenditures.