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Fort Walton Beach Council agenda — 06-01-2010 Special-2010/2011 Budget Policy Workshop — reading text
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FY 2010 -11 Budget Policy Meeting
The Golf and Stormwater Funds do not reimburse the full cost of services received. At the Budget Policy
Meeting in May 2009, City Council voted to continue to have the General Fund absorb a large portion of
these costs to permit the Golf Fund to retain all revenues for operational use and to replenish net assets.
At the Budget Meeting in August 2009, City Council voted to forgive a large portion of the Stormwater
transfer to permit the Stormwater Fund to retain revenues for capital projects.
Appropriations from Reserves —Appropriations from fund balance ( governmental funds) or net assets
enterprise funds) are budgeted for either specific purposes ( i. e. designated or restricted) or to make up
the shortfall between projected revenues and projected expenditures ( i. e. undesignated or unrestricted).
Depending on actual revenues received and expenditures incurred, the full budgeted amount may or may
not be required. The City' s annual audit identifies the three types of General Fund reserves:
Reserved —funds committed for identified purposes or legally required to be segregated.
Examples: encumbrances, Harvey Trust
Unreserved /Designated — funds not required to be identified as a reserve fund balance, but a
tentative use has already been identified.
Examples: economic development, retirement contributions, computer replacement
Unreserved /Undesignated — funds not required to be on hand and have not been identified for a
particular purpose; available for capital projects or to balance the budget.
At the May 2008 Budget Policy Meeting, City Council endorsed maintaining a minimum General Fund
unreserved /undesignated fund balance of 30% of total annual expenditures.
General Fund Reserves Estimated Reserve Allocation
15 45%
as of 09/ 30/ 10
40%
12
35%
Unreserved/
30%
9 Undesignated,
c
0 25%
2,325,422
20%
6
Ii
15%
3 10%
30 %of Expenditures,
5% 5,582,796
0 0%
20052005
- - 0606 20062006
- - 0707 20072007
- - 0808 20082008
