Fort Walton Beach Council agenda — 06-01-2010 Special-2010/2011 Budget Policy Workshop — reading text

pun-j leaaua!D eqi uj algellene saoinosai leloueull eqj } o ainseaw a se sanaas ( sanaasaa a•!) aoueleq punA • L punoa Noe8 3AIlN33NI 33AOIdW3 —S3AU3S3N aNn-q IV83N3J 6ulIaaw A3110d Ia6pn8 . oLOZ Aj  FY 2010 -11 Budget Policy Meeting GENERAL FUND RESERVES CAPITAL & OTHER Background 1. Fund balance ( i. e. reserves) serves as a measure of the financial resources available in the General Fund. 2. Credit rating agencies monitor fund balance levels and strongly consider unreserved fund balance when determining a local government' s creditworthiness. Discussion 1. There is approximately $ 3. 6M available in General Fund undesignated fund balance — above and beyond the 30% minimum endorsed by City Council in May 2008 — due to GASB changes, the sale of property to Waste Management, and cost saving measures implemented during FY09. 2. Recurring revenues should fund recurring expenditures. Fund balance should only be relied upon for one -time outlays or capital projects. 3. Staff has identified several options that would be a fiscally sound use of reserves: a. Approx. $ 350K to replace 19 vehicles over 10 years old with 75% or more of purchase price spent on maintenance and repairs ( parks pickup, right -of -way pickup, fire pickup, city clerk pickup, fire sedan, 14 police patrol sedans). Staff is working to develop a formal vehicle and equipment replacement policy with criteria such as age, mileage, maintenance cost, and general condition to prioritize future replacements. b. Approx. $ 75K to replace various mowers, trailers, and equipment over 10 years old with 75% or more of purchase price spent on maintenance and repairs. c. Approx. $ 68K to replace computers with P4, 2. 8G or less processors ( i. e. not dual core). d. Approx. $ 31 K for the Police Department' s OSSI software upgrade. e. Approx. $ 831 K to resurface the 11. 92% of City streets that are rated less than fair on the pavement condition index. f. Approx. $ 90K for unemployment compensation. g. Hedrick Center improvements would be funded with grants and land sales. Policy Impact 1. Revenues are not likely to fully recover for several years. Vehicle, equipment, and computer replacements cannot be delayed indefinitely, and as the equipment ages the cost of maintenance increases. Reserves may be the only mechanism for replacing these items. 2. Unemployment expense is non -recurring in nature since benefits are for a finite period. The magnitude of this expense is due to the Federal government extending benefits for ex- employees currently collecting, as well as the anticipated expense for additional employees affected by FY 2010 -11 program /service reductions. Budget Impact Appropriate remaining reserves to fund vehicle, equipment, computer, and infrastructure needs, as well as unemployment compensation. 15 of 32  ZE do 91 s,31=l 0'£ : Paleulwlla suo!1! sod ' SPNO uolle14e8 OIPUIWIIS loe wl la bpn8 sla!yo uolie:ue8 eaayl aol >ILOt,$ u!elsns of paa! nbaa sll! w 85L£' 0 snlelS luaaano le pun j of paaln as aseaaoul alea Well!" slsoo aw!laano letimippe anou! of Al!,) ayl aalnbaa Ale! l pinonn luawliedep ayl u! yl!nn aneal lo!s pue uo!leoeA 5 sNsel ay} to uo!laldwoo ayl Aelep pinoo yo!ynn ` su!eldeo ayl Aq pegaosge eq of peau pinonn ( aoueualulew laall uo!leulpa000 S-j8 /S- IV uo!leulpa000 pie lenlnw `6u!lnpayos •6•9) sla!yo uo!IelleB ayl Aq pawaolaad sa!lnp an!leals!u! wpy • t, IL01,$ anes pinonn sla!yo uollelle8 aaayl to uolleu! w!le ayl '£ lalyo Alndao ao la!yo aa! j ayl Aq panallaa pun aanlonals 6u! uanq L, 6u!aalue aol uo!leln6aa „ lnoZ /u! Z„ ayl yl!nn Aldwoo of ap!slno u!ewaa pinoo saaaul6uS aanPa ayl ' Z aanlonals ayl 6u!aalue saaly6!laa!l ayl aol paezey ( lales elq!ssod a 6ulleaao ` slanal Iew!ldo le pawaolaad lou ao peAelap aq ll!nn auaos ayl to loaluoo Ie!llul - L loec wl o! lod ole `swaopun Tani ` wepow `seuoyd) 6u!leaado L5 1` l,$ • a we waa!laa ' d woo Maonn ` aaeo!pew ' Alp noes lmoos `leo!pew) sl!lauaq yl1£ l$ p luawaaa6e 6u!umbieg an!loalloo ul papnloui lou sanoy 033) aouasge pasnoxe yIL 1$ o awllaano to nail u! > 131$ 6u!pnlou!) sued ppe y158$ • q se6enn aeln6aa y{OZZ$ ' e 01- 6003 A ul s181140 uollelle8 aol pelebpnq s! > 1L0t,$ 9 sanoy sseu!snq lewaou 6ulanp eouesaad s!y salellssaoau peol Naonn luaaano spil.lo Aindaa ay1 • lalyo AlndaQ luaaano ayl to aouaplsaa ayl of anp puodsaa of lalyo aa!=l ayl aa! nbaa pinonn slleo sanoy aalle ay1 • slalyo uo!lelle8 to aouasge ayl ui saueos aa!l puewwoo of wayl algeua pinonn sanoy aalle lleo -uo 6ulleuaalle ao /pue sanoy Naonn a! ayl 6u!aa66elS • alnpayos anoy -0t, Aep!a= j- Aepuon a Naonn Alluaaano la!yo Alndaa pue la!yo ail-] ay1 9 luep!oui ue le 6uiM ions aaly6!laa!l Aue to ylleay ao Alales ayl 6uppaedoef inoyl!nn sa!l!nlloe anosaa ao eouels!sse waoped ( lale!pewwi of alge s! Ienp!n!Pu! yons se 6uol os ` aan!ap ao ` aaauibue ` aoleaado aiadwnd ` aapuewwoo lueppui se yons ` elo.i leuo!i!ppe ue of pau6!sse aq stew aaaydsowle ylleay pue alll of snoaa6uep Alale!pewu ayl ap!slno paleool slenp !n!pu! onl ayl„ leyl slwaad `(£ 128'££ 9 ' S' J ul paouaaalaa pue V£ 1' 0161 HJ06Z woal pan!aap ` eln.„ 1noZ /u! 3„ ay1 t, saaly61l9all to Alales ayl aansua of Auedwoo ayl loaalp of si su!eldeo to Al!l! q!suodsaa Aaewlad ay1 • luep!oui ue to puewwoo awnsse of pau!eal Alluaaano llels aaylo Aluo ay} aae la!yo aa! d Alndaa pue la!y0 aalj ayl sallnp an!leals!u!wP'e snolaen waolaad slalyo uo!lelle8 ayl `Alleuoll!ppb • snnaao loaa! p )& u6!sse pue ` sleob o!6aleals leipu! dolanaP ` Aoua6aawe ue to adoos ' 8 az!s ayl au! waalap ` Iauuosaad aol lun000e of puewwoo luepoui to luawys!lgelse ayl y6noayl Aou96aawe ue buunp suez!l!o pue saapuodsaa Aouel5 iawe to Alales ayl aansua of si sla!yo uo!Ielleg to asodand ( aew!ad 9y1 Z aw!l u9nl6 Aue le Alnp uo aae £ Aluo aanannoy ` lauuosaad 5£ to gels a 6ul6euew ( sla!yo uollelleg £ ` la!yo aa! d Alndaa ` la! yo aal j) Iauuosaad Aaoslnaadns an!l sey luawlaedap aa! l ayl 1 uo!ssnos! Q eaae poonnuayl ayl u! sluap!saa ( l!0 ao!naas of Mho 6u!( ed to uo!1sa66ns s, tl!0 ayl of an!ldeoaa lou seen ly6uM -Al!o ueaoo lnq ` uo!lep losuoo paennol dais euo aq pinonn L uo!lelS bu! solo ' Z eleos to sa!wou000 y6noayl septie ollle leuo!leaado pue poueu!l pleb( pinonn aa6aaw a leyl selou laodaa ay1 • suollo!psunf eaayl lie of ao!naas lulof ap!noad of a6aaw ly6uM -Al!o ueaoo pue `a9yls3 AmVy ` yoea8 uolleM' o * to sa!l!o ayl leyl Papuawwooaa jjVl ayl Aq laodaa s! sAleue ( SIO) walsAS uo!lewaolul leol4dei6oao 0103 Aaenuefb •l punomMoe8 SAM N011d11d8 6u! laaw A31I0d p6pn8 66- 060Z Ad  FY 2010 -11 Budget Policy Meeting OUTSIDE AGENCY FUNDING Back„ r ound The following agencies are funded in the FY 2009 -10 budget: Panhandle Animal Welfare Society ( PAWS) $ 87, 787 The Advocacy Group $ 40, 000 Chamber of Commerce ($16K General, $ 15K CRA) $ 31, 000 Economic Development Council ( EDC) $ 16, 000 TOTAL AGENCY FUNDING $ 174, 787 These amounts do not include the value of in -kind services.) 2. The Panhandle Animal Welfare Society provides animal control services. 3. The Advocacy Group provides legislative support on behalf of the City at the State level. 4. The Chamber of Commerce provides promotional material and information to people moving to the area. 5. The Economic Development Council promotes businesses and economics in the area. Discussion 1. PAWS has submitted a contract to the City for $ 87, 787 for the period 10/ 01/ 10 through 09/ 30/ 11, which is the same amount as the current year. 2. City Council has in years past questioned the benefit that citizens and businesses receive from the Chamber and EDC. 3. Outside agencies traditionally present their budget requests to City Council during the August budget meetings. However, staff would like Council direction earlier in the budget process if possible. Policy Impact 1. Reducing funding for outside agencies would free resources to maintain existing City programs and services. 2. The Mayor travels frequently to Tallahassee, has several contacts there, and can lobby for the City. 3. In -kind services for Chamber events have averaged: Billy Bowlegs $ 15K, Dog Daze $ 1200. 4. The City Manager' s request for information from the EDC has been unanswered. Millage Rate Increase Required to Fund at Current Status 0. 0665 mills required to sustain $ 72K for Advocacy Group, Chamber, and EDC funding. Budget Impact 1. Fund PAWS at proposed contract price of $ 87, 787. 2. Discontinue $ 40K to the Advocacy Group for legislative support. 3.