Fort Walton Beach Council agenda — 05-15-12 special budget policy — reading text

Agenda — City of Fort Walton Beach Special Meeting of the City Council of Fort Walton Beach Tuesday, May 15, 2012 6: 00 PM 107 ldiraAe Strip Par" a Fart Walton Beach, FL 3254b 1. CALL TO ORDER 6: 00 PM Meeting will be called to order on May 15, 2012 at Council Chamber, 107 Miracle Strip Parkway, Fort Walton Beach, FL, 2. PLEDGE OF ALLEGIANCE 3. ACTION ITEMS 3. 1. Budget Policy :fleeting Synopsis: ( Budget and Grants Manager) City Council will provide policy direction to staff on a fire protection assessment, the millage rate, and employee compensation. ATTACHMENTS: 1 - I1 -12 FY 20 IL 13 Aen, da hen, ( PIA, 4. ADJOURNMENT Quasi -Judicial - denotes that the item must be conducted as a quasi -judicial hearing in accordance with Florida Statutes. Action - Direction - Discussion items maybe acted upon by the City Council by either a motion with a vote in accordance with Robert' s Rules of Order, or by a consensus of the Council. Any person who decides to appeal any decision made with respect to any matter at this meeting will need a record of the proceedings, and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. ( Chapter 286.01105, F. S.) The City of Fort Walton Beach adheres to the Americans with Disabilities Act and will make reasonable modifications for access to this meeting upon request Please call City Clerk Helen Spencer at 833 -9509 to make a request. For Hearing Impaired dial the City Hall TDD 4850 -833- On, Council r[ Fort Wndon Beach Page 1 P w d 5/ 1 / 2012  J,. a City of Fort Walton Beach FY 2012 -13 Budget Policy Meeting i 0Tua avm mN N m ON EE aa yy Cymm MM ONON LLLL hh 0"0" r6Euru QQ MayMay 15,15, 20122012 PacketPacket Pg.Pg. 44  3. 1. a FY 2012 - 13 Budget Policy Meeting TABLE OF CONTENTS Introduction I Revenue Summary 2 Expense Summary 5 c Five- Year Financial Forecasts 7 aai 6au_2 Budget Policy Issues- VmM Fire Protection Assessment 9 mM N Millage Rate 10 N LL Employee Compensation 11 0m Supplementary Information v aN Five- Year Financial Forecast Details 12 amto N 17 City Services Survey Results H Packet Pg. 5  3. 1. a FY 2012 -13 Budget Policy Meeting INTRODUCTION The City of Fort Walton Beach is committed to providing high quality services in a cost controlled manner, developing balanced sources of revenues to fund programs, improving and maintaining infrastructure, and maintaining prudent cash reserves for the betterment of the community' s citizens and businesses. The Great en Recession officially began in late 2007, although the Lehman Brothers collapse in September 2008 is frequently cited as triggering the financial crisis Since then, General Fund budget — which houses basic for services such as police, fire, parks & recreation, code „ g_ enforcement, and streets — has decreased 9. 61 %, while the municipal cost index has increased 4. 10 %o. _•. vam atrrt - vu n City Council is the policy- making body for the City of Fort Walton Beach. Policy formulation means developing an approach to solving a problem, delivering a service, or ensuring some need is met. The outcome of policy formulation can take several forms: ordinance, resolution, or direction provided to the City Manager through a Council vote. Implementation and administration of policy decisions are carried out by the City Manager. For instance, City Council may provide policy direction to improve emergency response times. However, the City Manager and Police & Fire Chiefs would work out the details of shift manning and resource allocation to accomplish the improved response times. Staff has prepared this informational document and will conduct a Budget Policy Meeting with City Council on May 15, 2012 at 6pm. The objectives of this budget policy meeting are: Assist City Council in understanding the City' s available revenue sources and current operations. Establish service levels and funding mechanisms in accordance with City Council' s service priorities. Ascertain City Council' s position on certain policy issues critical to development of next year' s budget. The budget policy meeting is not intended to be a detailed review of the budget and decisions are not necessarily binding. However, if City Council' s ultimate policy objectives can be built into the budget from the beginning, the entire budget process will be more efficient. Staff respectfully requests that City Council reach consensus on the policy issues presented to guide FY 2012 -13 budget development HEY CITY COUNCIL BUDGET HATES The clearer the guidance provided by City Council, the more effective the City Manager May 15 City Council Budget Parley Meeting can be in developing a budget acceptable to City Council when the point of adoption Fine 26 City Cou art Sri, Tentative Millage denq( ve) pending receipt l DR420 From Property comes. Approor— miif, ar, oc 1, 111 luly27 City Council Receives Proposed Budget August 13 - 15 City Council Budge Workshops Sep¢ mber5 PubGC Hearing kl Ueomheel Tenons, village Resolution Tentative Bud,, R ... ution Fee schedule by Revolution se' arnber 19 Public Henn, N2 Reserve) Final Millage Resolution Final Bud., Renton. I or 17 Packet Pg. 6  3. 1. a FY 2012 -13 Budget Policy Meeting REVENUE SUMMARY FY 2011 - 12 Budgeted Revenues 37, 935, 778 I-, G0IIPIUb 3%0 INOCSI& Misc l 8 0h, 10 Sl r 0. 8 a 16% FCCa Diversity in the revenue structure is an important indicator of economic health and a predictor of the City' s ability to cope with changes to the economic and financial environment, and is also 5°.$ desirable for political and social reasons. An optimal revenue structure includes a balance LL among major taxes ( e. g. property, sales) and reliance on user fees ( e. g. recreation fees, building permits). Taxes should be as broadly based as possible to allow for lower tax rates and improve ° m economic efficiency. A diversified property tax base is desirable because it will be less vulnerable to economic shifts. The