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

require voter referendum approval. Special revenue therefore it is not subject to voter pledged by a specific revenue source and limited by available revenue; referendum. Any new debt will be carefully evaluated as to its impact on operations. Debt Philosophy - The use of debt financing for long- term capital improvement programs is based upon a mix two types of debt financing: 1) " pay- as- you- go" and 2) " pay- as- you- use". In practice, the City uses of these two basic methods to finance its Capital Improvements Program, with pay- as- you- go financing w~ed for recurrent capital expenditures and with pay- as- you- use financing used for long- term, non- recurrent capital expenditures. than long Pay-As- You- Go - A type of financing whereby current revenues, taxes, and/ or grants rather term debt are used to pay for capital improvements. Example: annual street paving. for capital Pay-As- You- Use - type of financing whereby long term debt is used to pay. A improvements. Example: debt financing for new wastewater treatment plant. . Debt Policv Statement - The following policy statements govern the City' s use of debt to finance long- term, non- recurring capital improvements: Recurrent capital expenditures for replacement, expansion and/ or acquisition of plant, equipment, and/ or motor vehicles will be financed on a pay- as- you- go basis from funds available and appropriated in the City's annual operating budget. Only long- term, non- recurrent capital expenditures for public improvements having relatively greater a cost and longer useful life, and which require additional funding over and beyond the fiscal capacity of c the City' s annual operating budget, will be financed through the issuance or creation of long- term of debt. These expenditures will not be debt-financed for periods exceeding the projected useful life the improvement. with th~ All capital improvements financed. through the use of long- term debt will be consistent adopted Capital Improvements Program and the current fiscal year's adopted Budget. Revenue sources that will be used to pay long- term debt will be conservatively projected to ensure that such debt is adequately and soundly financed. The City' s total general obligation debt will not exceed 10% of its assessed valuation. The City will use special assessment revenue bonds or other self- supporting bonds where possible and appropriate to finance long- term, non- recurrent capital improvements, rather than general obligation bonds. The City will establish and maintain effective communications with bond rating agencies to keep them informed of its financial condition. from Debt Capacity - The General Fund' s debt capacity is 20% of revenues, exclusive of appropriations The is at 51 % of its $ 3. 6M debt capacity, including Golf Fund debt for which fund balance. City currently non- ad valorem revenues are pledged. The Utilities Fund' s debt capacity is a coverage ratio of 1. 25 times which is earnings, equivalent to $ 1.4M. The City is currently at 57% of its capacity in this enterprise fund. The Sanitation Fund is currently debt-free. City of Fort Walton Beach, FL 35-  CITY OF FORT WALTON BEACH, FL ( ) Summary 01 Estimated Financial Sources f.: I Uses. All Funds / 1 Major Funds GENERAL FUND UTILITIES FUND SANITATION FUND 2005- 06 2006- 07 2007- 08 2005- 06 2006- 07 2007- 08 2005- 06 2006- 07 2001-08 Actual Estimate Budget Actual Estimate Budget Actual Estimate Budget Financial Sources Ad Valorem Taxes 4, 541, 585 5, 054, 805 4, 929, 053 Other Taxes 6, 544, 881 6, 330,000 5, 518, 070 Licenses and Permits 517, 728 440, 560 430, 810 Intergovernmental Revenue 3, 628, 367 3, 170, 500 2, 748,751 Charges for Services 900, 170 942, 885 929, 396 6, 392, 788 6, 765,400 6, 987,500 3, 369, 729 3,488, 000 3,448, 570 Fines and Forfeitures 181, 680 194,550 140, 350 145, 380 119,000 118, 500 Interest & Other Revenues 725, 334 774, 114 834,903 738, 628 474,947 463, 124 171, 806 115, 000 119, 612 Other Financing Sources 2, 080, 000 2, 100, 000 3, 212,310 37, 000 37, 000 40, 000 SubTotal Financial Sources $ 19, 119, 745 $ 19, 007, 414 $ 18, 743, 643 $ 7,313, 196 $ 7, 396, 347 $ 7, 609, 124 $ 3, 541, 535 $ 3, 603, 000 $ 3, 568, 182 Appropriations 610, 284 756, 386 190, 000 488, 105 565, 179 353, 950 Total Financial Sources $ 19, 119, 747 $ 19,617, 698 $ 19, 500, 029 $ 7, 313,798 $ 7,586, 347 $ 8, 097, 229 $ 3, 541, 535 $ 4,168, 179 $ 3, 922, 132 Financial Uses General Government 4, 646, 505 4,408, 976 4, 787, 030 Public Safety 6,994,079 7, 776, 538 8, 032, 084 Physical Environment 233, 942 263,678 279, 357 4, 725, 951 4,211, 632 3, 730, 202 2, 888, 402 3, 129, 960 2, 542, 337 Trans portation 1, 364,414 1, 700,359 1, 832,283 Community/Economic Dev. 814, 030 762, 570 754,806 Culture & Recreation 2, 503,469 2,739, 955 2, 754, 175 Capital Outlay 512, 719 563, 735 218, 464 199,408 167, 651 465,443 205,793 276, 219 355, 350 Capital Improvements 4,521, 563 500, 850 211, 050 3, 507.384 451, 710 414,427 r=-", Debt Service 603, 731 955, 354 941 4,42 Transfers 638, 738 726, 037 480, 780 1 , 380, 000 1 ,400, 000 2, 145, 715 909,810 737,000 999,445 ( ) Reclass of Capital Outlay ( 3, 706, 792) ( 205, 793) SubTotal Financial Uses $ 22,229,460 $ 19,442, 698 $ 19, 350, 029 $ 6,709, 682 $ 7, 186, 347 $ 1, 697, 229 $ 3, 798, 213 $ 4, 143, 179 $ 3, 897, 132 Contingencies 175,000 150, 000 150, 000 150, 000 25, 000 25, 000 Reserves 250, 000 250, 000 Total Financial Uses $ 22,229, 461 $ 19, 617, 698 $ 19, 500, 029 $ 6,709,682 $ 7, 586,347 $ 8, 097, 229 $ 3, 798,214 $ 4, 168, 179 $ 3, 922, 132 Net Increasel( Decrease) in ( 3, 109, 714) ( 610, 284) ( 756, 386) 604, 116 ( 190, 000) ( 488, 105) ( 256, 679) ( 565, 179) ( 353, 950) Fund Balance I Net Assets Fund Ball Net Assets - Oct 1 11, 215, 028 8, 105,314 7,495, 030 5, 727, 006 6, 331, 122 6, 141, 122 2, 573, 794 2, 317, 115 1, 751, 936 Fund Ball Net Assets4 - Sep 30 $ 8, 105, 314 $ 7,495,030 $ 6, 738, 644 $ 6, 331, 122 $ 6, 141, 122 $ 5, 653, 017 $ 2,317, 115 $ 1, 751, 936 $ 1, 397, 986 Notes 1 Major funds each comprise at least 10% of the total appropriated budget 2 Other Governmental Funds - law Enforcement Trust, Law Enforcement Training, CDBG, CRA, Debt Service, Capital Projects, and Beal Memorial 3 Other Enterprise Funds - Golf 4 Fund Balance I Net Assets amounts used are unreserved/ undesignated/ unrestricted, with the exception of Other Governmental Funds Changes in Fund Balance I Net Assets greater than 10% Law Enforcement Trust Fund - 16% decrease; by law forfeiture proceeds may not be budgeted, so appropriation from un designated fund balance is required each year. Law Enforcement Training Fund - 51 % decrease due to an appropriation from undesignated fund balance for school crossing guards. Sanitation Fund - 15% decrease due to an appropriation for renewal & replacement for trucks.