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

that the Golf Club is in consistently good playable condition I) and that the Golf Club generates sufficient revenues to cover operations. A comprehensive golf club fee study was completed and in March 2004 City Council implemented a multi- year rate schedule with modest increases. In April 2006 a revised five- year rate plan was adopted to account for course improvements and equipment replacements not included in the first rate plan in order to minimize initial rate increases. Current rates do not account for reimbursement to the General Fund for the full cost of services received - a $ 400K value based on the 2003 Maximus study adjusted for inflation. City Council endorsed the General Fund continuing to absorb a large portion of the Golf Fund' s cost allocation. expenses in the short term in order to permit the Golf Fund to retain all revenues for operational use and to replenish net assets. Play at the City's two 18- hole golf courses is anticipated to be around 76, 000 rounds in FY 2006- 07, down nearly 18% or 15, 000 rounds in the first ten months compared to last year. Golf Club revenues, however, are down 1. 0% or $ 22,355 compared to last year due to the rate increase effective in June 2006. Staff believes the downturn in play is attributable to to players " revolting" against the increase in rates. Rates at the City' s golf courses are currently comparable to other courses in the area; however, players are accustomed to paying below-market rates. The Golf Club Administrator has proposed several alternative rate plans to return play to the low- to- mid- 90,OOO round range. While these plans may not increase revenues, it is hoped they will bring players back to the courses. Striking a balance between maintaining excellent course conditions and keeping rates low continues to be a challenge. These fee changes are included in the proposed Comprehensive Fee Schedule effective October 1, 2007 for City Council consideration: A 6- month membership fee Reducing 12- month County membership rate to be the same as City membership rate A 12- month non- member play card for unlimited walking rounds A reduced rate member play card A bulk purchase rate for condo and rental agencies I Move twilight start time to 12 pm noon from 1 pm. City of Fort Walton Beach, FL 14-  City Manager' s Budget Message Alternative Service Delivery In October 2006 City Council directed the City Manager to solicit proposals from qualified consulting firms for the consolidation, coordination, and contracting out of various services in an effort to improve the efficiency and effectiveness of City government. This issue was revisited and the scope of study expanded from police and fire to all departments, exclusive of fire, at the January 2007 Strategic Planning Session with the overall goal of reducing the cost of government services to citizens. Staff developed a scope of services after researching other communities that engaged similar work in the past. In May 2007 Management Advisory Group was selected to conduct the with the study, objectiveof evaluating and analyzing services for the feasibility of privatization, public- private partnerships, and/ or consolidation with other local governments and make recommendations as appropriate. All areas of City operation, exclusive of fire services, are subject to study and recommendation. It is anticipated that the study will be completed by late August. Storm Water Utility A storm water utility would enable the City to address water quality, flooding, and regulatory issues. There is currently approximately $ 46,302 or $ 0.43/ month per utility' customer of storm water expense in the General Fund and $ 123, 700 or $ 1. 15/ month per utility customer of storm water expense in the Utilities Fund. In January 2007 a Request for Proposal ( RFP) was issued for a storm water utility study and six proposals were received. The storm water study is currently underway and the results will be presented to City Council in February 2008 for a final determination of whether to move forward with creating a storm water utility. BUDGET ASSUMPTIONS & CHANGES The FY 2007- 08 budget has been prepared based on the direction provided by City Council at the Strategic Planning Session and Budget Policy Meeting. Department goals and capital improvement projects are tied directly to the Vision Plan and/ or Strategic Plan, as illustrated by the use of icons c_ reference pages 5- 7) throughout the document. REVENUES 1. Revenues areestimated at conservative levels to guard against unanticipated economic shifts, legislative changes, or collection levels. Most governmental revenues are budgeted based on historical collection and growth levels. However, certain revenues distributed by the State ( e. g. municipal revenue sharing, sales tax) are budgeted based on estimates provided by the Legislative Committee on Intergovernmental Relations. Enterprise revenues ( utilities, sanitation, and golf) are based on historical usage and/ or number of customers adjusted for the current rates. 2. Reductions are anticipated for the following revenues ( detailed revenue discussion on pages 39- 43): Ad Valorem - $ 92, 565 or 1. 5% Communication Services Tax - $881 , 645 or 37.8% Half-Cent Sales Tax - $ 185, 940 or 9. 8% Library Cooperative - $63, 214 or 30. 2% Municipal Revenue Sharing - $ 55, 095 or 6. 5% Traffic Fines - $ 55, 000 or 44.0% Local Option Fuel Tax - $ 35, 285 or 4. 9% Golf Club Fees - $ 806, 187 or 24. 9% 3. The budget has been prepared at a millage rate of 4. 1986, which represents 95% of the roiL-back rate incompliance with property tax reform legislation passed in June and is 9. 7% lower than the FY 2006- 07 rate of 4. 6458. At a millage rate of 4. 1986 net revenues from City property taxes are anticipated to decrease $ 92, 565 from last year, with the General Fund decreasing $ 125, 752 and the Community Redevelopment Agency Fund increasing $ 33, 187 due to new construction. . 4. A comprehensive fee schedule review has been completed and rates. adjusted as appropriate effective October 1. For instance, building permit fees have been adjusted to the full cost of refl;ect implementing the Florida Building Code as permitted in Florida Statute 553. 80, water and sewer rates reflect a 4% adjustment per the 2005 Utility System Improvements Borid, and garbage rates reflect a 3% increase. Several rate alternatives are proposed by the Golf Club Administrator to increase play. City of Fort Walton Beach, FL 15- City Manager' s Budget Message Adjustments to the fee schedule are anticipated to increase revenues at least $343, 357. 5. The following transfers from fund balance or net assets are needed to prepare a balanced budget, but the full amounts may not actually be incurred if revenues come in higher or expenditures are lower than estimated: a. General Fund - $ 235, 728 from fund balances designated for computer replacement, medical insurance, and retirement; $ 520, 658 from undesignated fund balance. b. Law Enforcement Trust Fund - $ 31, 565 from undesignated fund balance. c. Law Enforcement Training Fund - $ 33, 299 from undesignated fund balance. d. Utilities Fund - $ 352, 227 from net assets designated for renewal and replacement; $ 135, 878 from unrestricted net assets. e. Sanitation Fund - $ 353,950 from net assets designated for renewal and replacement. EXPENSES 1. As in prior years, the consumer price index was used as a baseline adjustment for recurring operational expenses. Increases greater than 2% are included contingent upon consistency with the goals and objectives of City Council as expressed through the Vision Plan, Strategic Plan, and BUdget Policy Meeting. 2. Wages and benefits have been adjusted as follows: a. Cost of living adjustment - Employees customarily receive a cost of living adjustment effective October 1. This year' s 1.4% adjustment represents about half of the anticipated annual consumer price index and is estimated at $ 234, 128. b. Performance adjustment - Employees have traditionally been eligible for a one step increase ( 3% for' general employees and 3. 5% for policef/ ire personnel) on their anniversary date contingent upon a satisfactory performance evaluation. Police and Fire personnel will continue to use the current grade/ step system with 3. 5% step increases. Rank and file employees will continue to use the current grade/ step system with 3% step increases. New for this year, however, Department Directors, Division Directors, Managers, Supervisors, and professional staff will