Fort Walton Beach Council agenda — 09-04-13--public hearing-budget — reading text

4. 96 in January 2012 to $ 3. 82 in January 2013. 3. 1. 2. $ 216K for vehicle replacements; a comprehensive review of the City' s fleet is underway; most vehicles will be replaced on a ten ( 10) year cycle with Police patrol vehicles on a seven ( 7) year cycle. 3. 1. 3. $ 205K for employee wages adjustments of up to 3. 75% based on tenure; the last wage adjustment was on October 1, 2008. 3. 1. 4. $ 67K for Police pension contributions. 3. 1. 5. $ 61K for debt payments to replace a Fire Pumper Truck that has been in service since 1993. 3. 1. 6. $ 45K to offset the reduction in the current Local Option Fuel Tax; this reduction may be higher depending on the outcome of negotiations with Okaloosa County for a new interlocal agreement on the funding distribution. 3. 1. 7. $ 45K for reinstatement of the Police Chief' s Administrative Coordinator; this was an unsustainable personnel reduction made in FY 2012 -13. 3. 1. 8. $ 41K for IT equipment replacements. 3. 1. 9. $ 36K for additional required Facilities repairs & maintenance; a comprehensive review of City facilities is underway, including prioritization of repairs and analysis of possible consolidation. 3. 1. 10. $ 27K for Fire pension contributions. 3. 1. 11. $ 26K to reclassify a Streets Service Worker to full -time status. 32. Although the Golf Fund is typically able to generate positive cash flow from operating  4.2:.x. >:y;, RESOLUTION 2013 - 24 activities, it is not able to cover its debt payments to creditors or the advance from the General Fund granted two ( 2) years ago to pay off the Clubhouse construction loan. Golf operations are not sustainable as an enterprise fund absent ongoing transfers and support from the General Fund. 3. 2. 1. Moving operations back into the General Fund will reduce the operating deficit to $ 55K for FY 2013 -14. Course conditions have recovered from last year' s improper chemical application and as play continues to improve, it is hoped golf operations will regain their self-sustainability and at a minimum break even as part of the General Fund. 3. 2. 2. General Fund reserves will be impacted by this change. There will be an approximately $590K decrease in unassigned fund balance due to assuming the Golf Fund' s negative net assets; however, this decrease would still occur if the Golf Fund remained an enterprise fund in order to eliminate the fund' s negative net assets. 3. 2. 3. The $ 2. 7M loan advance will be removed from the General Fund' s non- spendable fund balance. 33. In the Utilities Fund, an estimated 5% water and sewer rate increase on October 1, 2013 is assumed for budget purposes. 3. 3. 1. A Request for Proposals to conduct a new five ( 5) year rate study will be issued by the end of August to determine the required rate increase to generate enough revenue to sustain a renewal and replacement reserve and account for the debt service associated with the construction of the new force main and pump station. 3. 3. 2. The rate study will also assess the possibility of creating a reclaimed water utility as well as combining the Stormwater Fund with the Utilities ( Water & Sewer) Fund. 3. 3. 3. The final draft of the Stormwater Master Plan has been completed and will be presented to City Council in the new future. The list of priority projects generated in the Master Plan will determine the appropriate rate structure to fund required improvements. 3. 4. In the Sanitation Fund, the addition of one ( 1) Full -Time Employee is included in the proposed budget in order to expand the commercial recycling program and explore residential recycling opportunities. 4. 4. 1. Staff respectfully recommends City Council adoption of Resolution 2013 -24 to adopt the tentative budget for the fiscal year October 1, 2013 through September 30, 2014, with the budget document and list of encumbrance and project carryovers as attachments. As the Department of Revenue requires specific language and procedures, a script for the Mayor to follow is attached.  4.2 RESOLUTION 2013 - 24 ATTACHMENTS: 09 -04 -13 Tentative FY 13 - 14 Budget Script ( DOCX) SIGNATURE BLOCK: Charlotte Dunworth Completed 08/ 27/ 2013 4: 50 PM Finance Completed 08/ 28/ 2013 8: 55 AM Carole Jones Completed 08/ 28/ 2013 3: 32 PM City Manager Completed 08/ 29/ 2013 11: 27 AM City Council Pending PaCI 11  4.2 RESOLUTION 2013 - 24 A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, ADOPTING THE TENTATIVE BUDGET FOR CERTAIN EXPENDITURES, EXPENSES, CAPITAL IMPROVEMENTS AND CERTAIN INDEBTEDNESS FOR THE CITY OF FORT WALTON BEACH, FLORIDA, FOR THE YEAR BEGINNING OCTOBER 1, 2013 AND ENDING SEPTEMBER 30, 2014; AND PROVIDING AN EFFECTIVE DATE. Section 1. Purpose Prior to the beginning of a new fiscal year, the City is required to pass and adopt a budget for the operation of the City government. The City held a public budget meeting on August 12, 2013 to discuss the FY 2013 -14 budget. The City held a public budget hearing September 4, 2013 as required by Section 200.065 of the Florida Statutes. Section 2. Tentative Tax Rate The City Council set the tentative tax rate at 5. 7907 mills for property assessed as of January 1, 2013. Section 3. Adoption of Budget The document entitled " City of Fort Walton Beach FY 2013 -14 Budget' comprises the total amount of $34, 726, 728 for all funds reported. The budget is being presented as a balanced budget whereby there are sufficient revenues to offset all estimated expenditures or expenses. All budget appropriations are based upon the total expenditure and/ or expenses even though the budget has been prepared based on line items and summarized to a categorical level. Section 4. Budget Amendments a. The City Council may make any amendments to the adopted budget, by resolution, as it may deem necessary and proper. b. Budget amendments requesting additional expenditures or expenses must also identify the corresponding funding source. Section 5. Budget Transfers Budget transfers shall be accomplished pursuant to Administrative Policy FIN -13 as provided by Resolution 2011 - 19 adopted by the City Council on August 16, 2011. Section 6. Debt Service Debt service for the General Fund will be paid from operating revenues and/ or transfers from the Debt Service Fund. Debt service for the Utilities Enterprise Fund will be paid from operating revenues from the Enterprise Fund. Section 7. Carryovers a. Projects that were not completed during the prior fiscal year are carried forward and are funded with the corresponding carryover appropriations of the prior year. These are commitments anticipated to be incomplete as of September 30, 2013 and will be continued and made a part of the FY 2013 -14 budget. The document entitled " City of Fora Walton Beach FY 2013 -14 Grant & C1P Project Carryovers ", dated September 4, 2013, comprises the total amount  4.2 RESOLUTION 2013 -24 of $x,xxx, xxx for all funds reported. b. Encumbrances ( open purchase orders) that were not completed during the prior fiscal year are carried forward and are funded with the corresponding carryover appropriations of the prior year These are commitments anticipated to be incomplete as of September 30, 2013 and will be continued and made a part of the FY 2013 -14 budget. The document entitled " City of Fort Walton Beach FY 2013 -14 Encumbrance Carryovers ", dated September 4, 2013, comprises the total amount of $x, xxx,xxx for all funds reported. Section 8. Effective Date This resolution shall become effective on and after October 1, 2013. Mike Anderson, Mayor Attest: Approved for form, legal sufficiency Helen Spencer, City Clerk Hayward Dykes, Jr., City Attorney  4.2. a TENTATIVE BUDGET Script for Public Hearing on Budget Mayor: State the following: mmD The tentative budget for the City of Fort Walton Beach for FY 2013 -14 is m' 34, 726, 728, which is $ 2, 711, 157 or 8. 47°/ more than the adopted FY 2012 -13 budget. Mayor: Open the Public Hearing and ask for comments on the tentative budget. acF M Close the Public Hearing. Mayor: 0N LL Mayor: Ask for a Motion and Second for Resolution 2013 -24 to adopt the tentative budget for the City of Fort Walton Beach for the fiscal year beginning October 1, 2013 and ending September 30, 2014. Mayor: Ask for Council Discussion. Mayor: Ask for a Vote. Mayor: Upon adoption of the Resolution, the Mayor shall announce: The tentative budget for the City of Fort Walton Beach for FY 2013- 14 is $ 34, 726, 728 with a tentative millage rate of 5.7907mills, which is 28. 17% above the rolled -back rate of 4. 5180 mills. The proposed budget is subject to a second and final public hearing that will be held here at the City of Fort Walton Beach Council Chambers on Wednesday, September 18, 2013 at 5: 30pm. Laraine Van Etten From: Helen Spencer Sent: Wednesday, September 04, 2013 8: 02 PM To: Laraine Van Etten Subject: FW. September 4th Budget Hearing Script Michael' s notes at the Council Meeting for the minutes Helen Spencer City Clerk City of Fort Walton Beach 850 - 833 - 9509 FAX 850 - 833 - 9640 Original Message---- - From: