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

Ex/; 8- City ~ anage~~s Budget Message September 5, 2007 Honorable Mayor, City Council Members, and Citizens: It is my pleasure to submit this fiscal year 2007- 08 municipal budget. The fundamental mission of the City of Fort Walton Beach is to provide the most efficient, progressive, and comprehensive array of municipal services possible. within the constraints .of fiscal responsibility. The FY 2007-08 budget totals 36, 610, 668, representing a decrease of $ 1, 023,486 or 2. 7% from the FY 2006- 07 budget. This budget is prepared at a millage rate of 4. 1986, a 9. 6% decrease from the of 4. 6458. prior year The City of Fort Walton Beach has prepared a budget designed to meet the highest standards of municipal budgeting. This budget continues the City' s commitment of providing quality services in a cost controlled manner, improving and maintaining infrastructure, developing balanced sources of revenues to fund programs, and maintaining prudent cash reserves for the betterment of the community' s citizens and businesses. The fundamental purpose of the City' s budget is to link what we want to accomplish for the community with the resources necessary to do so. As such, the budget offers more than financial elements - it just presents an overview of the City' s total operations. This document is intended to provide City Council and our citizens with a plan addressing financial, operational, and policy issues. Capital projects carry forward the available appropriation in ensuing budget years for the life of the capital project until it is completed. The budget serves as a: The City' s Business is SERVICE! Policv Document - The budget presents financial We are committed to providing quality policies, addresses Vision and Strategic Plan service to our diverse community in ways goals, and identifies the short and long- term that are responsive and caring by working impacts programs, services, and capital improvements will have on the City' s operations together to serve our residents. and finances. We believe that the success of our organization depends upon the teamwork, mutual trust, and Financial Plan - The budget outlines the financial honesty achieved through our commitment . to. the structure and operational changes required for following core values: financial stability, including the capital Responsibility as a team for efficient and improvements program and debt management effective service delivery. . information. '. Integrity in everything we do. Operations Guide - The budget provides direction Communication with one another and with to departments by identifying the relationships citizens. between organizatioilal' units and programs, Participation by Mayor and Council, the identifying the workforce and historical data on volunteers, citizens and City team members in operations, identifying the impact. of capital setting and attaining the City' s goals. spending, and. establishing measurable Innovation in meeting the present and future performance goals and objectives for managers to needs of our City. evaluate the effectiveness of their organization. Loyalty to our community, the organization and to each team member. Communication The budget is presented Device'""' in a format that is easily understood through the Courtesy in all personal relations. use of. charts and graphs, icons, statistical Pride in our work, our dedication to public service, and in being the best we can be. information, and narrative descriptions. National and local economic indicators are useful for evaluating the framework within which the City of Fort Walton Beach operates. . Consumer Price Consumer Help Wanted Housing , UnemploYment Index Confidence Index Advertising Retail Sales Rate Affordability IndeX! t t . J t t Arrow indicates direction of performance over the last year; Color denotes whether change has a positive ( green) or negative ( red) impact.* City of Fort Walton Beach, FL 9- City Manager' s Budget Message The Consumer Price Index ( CPI) - prepared by the US Bureau of Labor Statistics and the most widely used gauge of inflation - is 2.4% higher than a year ago. The Consumer Confidence Index - prepared by f j The Conference Board based on a representative sample of US households - is 5. 2% higher than a year ago. The Help Wanted Index - also prepared by The Conference Board and measuring job offerings in major newspapers across the country - is 18. 7% lower than a year ago. Notwithstanding publicity about escalating mortgage foreclosures, the national economy is fairing well by these measures, with consumer confidence higher than a year ago despite decreased purchasing power. Our local economy generally follows the national economy. The most recent retail sales data - as reported by the Haas Center for Business Research and Economic Development - indicates sales are 5. 8% less than a year ago as sales continue to return to pre- hurricane levels after more than two years of increased activity attributable to rebuilding from hurricanes Ivan and Dennis. The affordability of housing as reported by the Haas Center - is 17.4% better than a year ago. The standard definition of housing affordability is that the cost of buying a house uses less than 30% of annual household income. Despite increased insurance premiums, tax assessments, and interest rates, recent declining house prices have increased affordability in our area. Local unemployment - as computed by the Florida Agency for Workforce Innovation - is currently 3. 1 %, up 19. 2% from a year ago. BUDGET ISSUES & CHALLENGES Fort Walton Beach is navigating a dynamic environment and we are adjusting and refining our activities and finances to continue the course of progress steered in recent years. Due to the commitment of the Mayor and City Council, the City continues to progress with determination and clarity of vision, coupled with private investment, toward a renewed community with strength and vitality. We will continue to grow arid' revitalize' our local economy with our business friendly attitude and our cooperative spirit with residents and business owners alike, while continuing to provide unparalleled quality services to our citizens. TOP 5 BUDGET ISSUES c.... )\ I i' Property Tax Reform $ 92, 565 T Property Tax Revenues, $ 420, 039 T Lowered the millage rate 5% below roll-back rate - a Lowered the millage rate for the 1st time since FY 9.3% decrease from 4. 6458 to 4. 1986 - as a result of 1993 - a 6.6% decrease from 4. 9700 to 4. 6458 - State Legislative properly tax reform. while maintaining or enhancing service levels. Pension Contributions $ 52, 292 ... Pension Contributions $ 836, 572 ... Effect of adjusting 2006 General Employees valuation Required to make up for changes from actt,lary' s for new methodology of one-year payment delay. projected investment earnings and salary increases. CST Revenues $ 881, 645 T Property & Casualty Insurance $ 257, 786'" Communication Services Tax revenue will decrease Increase due to escalating reinsurance market as a 37. 8% due to vendor error & previous overpayments. result of unprecedented hurricane activity. Cost Allocation Plan $ 75,691 T Police Take- Home Vehicles $ 123,000 ... The City has revised its cost allocation and interfund Expand policy to uniformed officers to assist with transfer policy. officer recruitment and retention. Golf Club Revenues $ 806, 187 T Fire Station 7 Renovations $ 101, 400 ... Rounds are down 18% last year as players over Design work and engineering to modernize Station 7; respond negatively to the rate increase in June 2006. construction will be bond-financed. The 2007- 08 fiscal year budget has been one of the most difficult budgets for the City of Fort Walton Beach to prepare in recent years. During the November 2006 campaign, the Governor and members of the Legislature promised lower property insurance and property tax rates. To lower the cost of property insurance, the Legislature voted to have the State of Florida' s Hurricane Catastrophe Fund take on billions of dollars in additional insurance risk. The legislation allows private