Fort Walton Beach Council agenda — 08-12-13--special--budget — reading text

Pacic?Pacic? g.g. 2323  5. 1. a Budget Overview The fundamental purpose of the City' s budget is to link what we want to accomplish for the community with the resources necessary to do so. As such, the budget offers more than just financial elements — it presents an overview of the City' s total operations. This document is intended to provide City Council and our citizens with a plan addressing financial, operational, and policy issues. The budget serves as a: Policy Document — The budget presents financial policies, addresses Vision and Strategic Plan goals, and identifies the short We are committed to providing oMity service to and long -term impacts programs, services, our community in ways that and rownsive and and capital improvements will have on the caring by working together to Atze our esidems. City' s operations and finances. We believe that the success o organization depends upon the teamw , m Ral st, and honesty aMm0v9N Financial Plan — The budget outlines the achieved through our c em to the following financial structure and operational changes Core Values: required for financial stability, including the Integrity; we wil earlier ourselves in un capital improvements program and debt honest, wa00y, nd ethical manner. management information. Accountabi : we will take full responsibility Operations Guide — The budget provides for ow actions, resources, and attitudes. M direction to departments by identifying the we will work together to provide 0N relationships between organizational units and LL vQykomer Service: we will be professional, use programs, identifying the workforce and variable resources, and strive to meet the historical data on operations, identifying thA needs of oor customers. aN impact of capital spending, and estab him Continual Improvement: we will promote a measurable performance goals and a is culture that seeks to better our organtzation. for managers to evaluate the eff ective s f their organization. Communication Device — T4 t is presented in a format that is easily understood through the use of chart s and graph statistical information, and narrative descriptions. The budget is a fin cia National plan estimating expenditures for a given period and the proposed means to n those objectives. The State of Florida requires municipalities to prepare a balanced badg , whereby sufficient resources must be identified to fund programs and services. The fiscal year for all Florida cities begins October 1 and ends September 30. The sheer volume and complexity of information can make the budget an imposing document. The reader should always keep in mind that this document answers two core questions: " Where is the City of Fort Walton Beach' s money coming from ?" and " How will that money be used ?" FUNDSTRUCTURE An important concept in governmental accounting and budgeting is the division of the budget into categories called funds. Funds are separate fiscal accounting entities. Budgeting and accounting for revenues and expenditures in this manner is called fund accounting. Fund accounting allows a government to budget and account for revenues and expenditures restricted by law or policy. Governments may use any number of individual funds in their financial reporting; however, generally accepted accounting principles ( GAAP) require all these individual funds to be aggregated into specified fund types. Any fund constituting 10% or more of the appropriated budget is considered a " major" fund.  5. 1. a Budget Overview There are basically three groups of funds in governmental accounting: Governmental Funds — account for activities supported by taxes, grants, and similar resources and include most governmental functions; fund types include general, special revenue, capital projects, debt service, and permanent. Proprietary Funds — account for activities similar to those often found in the private sector; fund types include enterprise and internal service funds. Fiduciary Funds — account for assets not available to support the government' s programs that are held in a trustee or agent capacity; fund types include private - purpose trust, pension and other employee benefit trust, investment trust, and agency funds. General Fund — Accounts for all financial resa human resources, finance, police, fire, recreation, a Special Revenue Funds —Account for the prom restricted to expenditures for specific purpose Law Enforcement Trust Fund —AttihNe Law Enforcement Training Florida Building Code F iWng permit & inspection fees Community Develop ne Grant —entitlement grant Community Redevelop ncy —tax increment financing ( i. e. ad valorem taxes) Beal Memorial CeniE[ ial Fund —lot, crypt, and niche sales Debt Service Fu s for the accumulation general long -term and interest. Capital Projects Fund — Accounts for financial resources to be used for the acquisition or construction of major capital facilities, thereby more accurately accounting for a variety of one- time facility improvements and construction projects. Enterprise Funds —Account for operations that are financed and operated in a manner similar to a private business — where the intent of the governing body is that the cost ( expenses, including depreciation) of providing the services to the public on a continuing basis be financed and recovered primarily through user charges. Related capital projects are accounted for in the individual enterprise funds. Utilities Fund —water, sewer Sanitation Fund —garbage, recycling, yard waste Stormwater —stormwater A department may have multiple divisions or be financed by multiple funds. The chart below illustrates the relationship between the City' s fund financial structure ( e. g. accounting) and the City' s departments ( e. g. operations). r,,, ff, w 3n eeom Fr  F-5- 17. Budget Overview Acwumm• De, arur rl Division General Tms Law but TrLaw Enfain. FBC CDBG CRA Ulilil es Saimuon 5mnnwan+ City Council Cu, Informati Manager on Tech Gneml Human Rovurccs Gov' t Risk Management 44M GIPumna, FinyanceCknking Fleetlities Faci Public Safety Pollee 9 Ma Recreation ParFiRerekaeution RightaGWay Set—, Sevior Center Library pmuzeum Golf Club Ceand¢ Hngineering Svca Planning/ Zoning Bldg ImplPCemits Core Enfamement Fagmeering Sneers unllry C- bann" Service Savu.es Utility Services Water Operation, 15. 9M Sewer Operations Water Diarlbutlon Sewer (. Menton 5lunnwutcr mu ICNNICNN ARTMENT ARTMENT & & DIVISIONDIVISION INFORMATION INFORMATION AA DepartmentDepartment isis aa matmat administrativeadministrative segmentsegment ofof thethe CityCity thatthat indicatesindicates overalloverall managementmanagement responsibility responsibility forfor anan operationoperation oror aa groupgroup ofof relatedrelated operations operations withinwithin aa functionalfunctional areaarea ( ( e.e. g.g. PolicePolice Department,Department, RecreationRecreation Department).Department). TheThe smallestsmallest organizationalorganizational unitunit budgetedbudgeted isis aa Division.Division. EachEach division division indicatesindicates responsibilityresponsibility forfor oneone functional functional areaarea ( ( e.e. g.g. LibraryLibrary DivisionDivision withinwithin RecreationRecreation Department).Department).