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

and equipment in the past, it is not financially sustainable. 2. The employee wage adjustment in the proposed budget is based on the discussion at the April Strategic Planning Session. It is based on the CPI increase since the last increase on October 1, 2008 and is spread over two years. However, the second year is not guaranteed and is based on the budget situation in FY 2014 - 15. 3. Salaries have been posted on the City' s website and comments have been made related to the number of employees making over $ 50, 000 and how only those making less than $ 50, 000 should get a raise. 53 out of 330 employees, or 16. 16, have a salary $ 50, 000 or higher. This is not responsible as the salaries posted make no mention of which position is in what department or division, how the positions line up with each other on the org chart, and do not display parity within the same division. 4. I must also mention the fact that the workforce has been reduced by 308 and payroll expenses have been lowered by $ 2 million. over the last five years, the City has offered early retirement incentives to long time employees, which has resulted in the loss of corporate knowledge but has allowed for a more balanced salary structure for those positions. The City will also complete a pay and classification study in FY 2013 - 14. I can go on and on about details of the budget, but I believe all of the facts have been stated at the prior public hearings and in the proposed budget. 1. 1 would like to close by stating that the underlying issue for the FY 2013 - 14 budget is that it is not feasible to operate the City at the current millage rate of 4. 5383 mills. A higher millage rate is necessary to sustain the current services. 2. Even at the proposed millage rate of 5. 7907 mills, the projected revenues only cover 596 of the operational expenses for Public Safety. The other 416 comes from other revenue sources, which also fund the other General Fund services. 3. The purpose of the August budget meeting was to initiate and discuss ideas amongst City Council with Council action taken on ideas to be implemented. No action was taken at that meeting to revise the budget. 4. The one idea of pushing this issue back another year is not feasible as that is the same budgeting mindset we have taken over the last few years. We can no longer be a reactive City. We need to become proactive, and this is the first step in that process. once again, I am here to recommend a tentative millage rate of 5. 7907 mills, which is 1. 2524 mills higher than the current millage rate of 4. 5383 mills. The proposed millage rate serves to sustain the current services the City provides and moves us in the direction City Council expressed at the April Strategic Planning Session. 1. If the proposed millage rate is not approved, cuts would have to come from General Fund services, which include Police, Fire, and Recreation & Cultural Services. Year after year, during the budgeting process, City Council has rejected significant reductions in these service areas. Citizens have also stated they would be willing to pay more to keep the core services. 2. Without the hard work and creativity of Staff, the proposed millage rate could have been higher. The relocation of the Golf Fund into the General Fund saved 0. 41 mills; the use of reserves to purchase one time expense items saved around 0. 15 mills. 3. The time is now to stop the year to year budgeting approach and prepare for a successful future. The proposed millage rate sets the foundation for the City to move forward and become proactive, and, if the economy rebounds next year or the year after, we will revisit the millage rate and adjust it. 4. As City Manager, it is my responsibility to move the City in a positive direction. The proposed millage rate and budget serve that purpose. This concludes my presentation and Z am available to answer any questions. Michael D. Beedie, P. E. Thanks, City Manager City of Fort Walton Beach 850) 833 - 9612 Office 850) 461 - 2687 Cell Sent from my iPad 4  City of Fort Walton Beach Special Council Meeting September 4, 2013 at 5: 30pm In Opposition Name Property Owner or In Support of FY Resident 2013 - 14 to FY 2013 -14 Yes/ No Budget Budget v nnc n Y V/ N- o V n r I au 3 v Am a s n ke r S no 7 L O cl 1 e i v v iy v P-( tVk k) O O filo Es  City of Fort Walton Beach Special Council Meeting September 4, 2013 at 5: 30pm Name Property Owner or In Support of FY In Opposition R' dent 2013 -14 to FY 2013 -14 Y o Budget Budget V/ v  City of Fort Walton Beach Special Council Meeting September 4, 2013 at 5: 30pm Name Property Owner or In Support of FY In Opposition Resident 2013 - 14 to FY 2013 -14 Yes /No Budget Budget V N b N v I Y v