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

WhenWhen divisionsdivisions areare combined,combined, aa departmentdepartment isis formed.formed. InIn orderorder toto provideprovide CityCity CouncilCouncil andand citizens citizens withwith aa well-well- roundedrounded presentation presentation ofof eacheach department,department, thethe followingfollowing elementselements areare presentedpresented inin thethe annualannual budget:budget: organizationalorganizational chart,chart, revenuesrevenues & & expenditures,expenditures, mission,mission, description,description, goalsgoals & & objectives,objectives, andand accomplishments.accomplishments. TheThe performance performance metrics metrics reflectreflect anan operationaloperational planplan andand demonstratedemonstrate howhow dollarsdollars andand centscents areare translatedtranslated intointo tangibletangible returnsreturns forfor thethe citizens.citizens. BUDGETBUDGET BASISBASIS AnnualAnnual appropriatedappropriated budgetsbudgets areare adoptedadopted byby resolutionresolution forfor allall governmentalgovernmental andand proprietaryproprietary funds.funds. TheThe CityCity isis notnot legallylegally requiredrequired toto budgetbudget forfor proprietary proprietary oror fiduciaryfiduciary fundsfunds andand thosethose budgetsbudgets areare notnot includedincluded inin thethe City'City' ss auditedaudited financialfinancial statements.statements. TheThe basisbasis ofof accountingaccounting usedused forfor purposespurposes ofof financialfinancial reportingreporting inin accordanceaccordance withwith generallygenerally acceptedaccepted accountingaccounting principlesprinciples im,im, rr r,r, 11 w.w. e-e- e-e- mm rt_rt_  5. 1. a Budget Overview GAAP) is not the same basis used in preparing the budget document. All funds are budgeted on a cash basis. In GAAP financial statements, however, governmental funds use the modified accrual basis of accounting and proprietary funds use the accrual basis of accounting. During the year, the City' s accounting system is maintained on the same basis as the adopted budget, which enables department budgets to be easily monitored through the accounting system. The major difference between the budget and GAAP for governmental funds is that certain expenditures e. g. compensated absences and depreciation) are not recognized for budgetary purposes, but are recorded in the accounting system at year- end. For enterprise funds, the difference between this budget and GAAP is that debt principal payments and capital outlay ( i. e. f d assets) are budgeted as expenditures for budgetary purposes, but depreciation and compery to sences are shown on the financial statements. Staff believes this provides a better day -t y fuAncial plan. However, all activity is recorded in the accounting system at year -end i ; W`a with GAAP. BUDGET PROCESS This budget continues the City' s commitment of using planning pro es and citizen input as blueprints for providing services and programs for the betterpY t oAh community. Planning Processes V Frequency Description 4NV Budget Impact Comprehensive Long Range Plan - Provides directio a Budget expenditures ( e.g. Plan developed in 1990, and control vet and Capital Improvements Plan) updated in 2000 & redevelopm rrcd must be concurrent with the 2011. per Fled a hapter Comprehensive Plan. 16 Vision Plan Long Range Plan - b broad, idealistic Outlines the general allocation developed inin 19 value hat cherish of resources to achieve the updated in 2004 desire for their desired service levels and 2011. A ommunity and creates shared quality of life. commitments among citizens, City Council, and staff. Strategic Plan Mid- Sh Translates the Vision Plan Allows for the reallocation of Range VKn —first into current and future resources due to changing held in 2004 and priorities based on importance priorities or economic updated annually to City Council and funding conditions. availability. Budget Policy Short Range Plan - Defines changes to service Provides the framework for Workshop held annually. levels or program objectives developing the current budget. based on City Council goals and available fiscal resources. Capital Short -lo-Mid Provides estimated dates and Provides anticipated 5 -year Improvement Range Plan - costs for the acquisition, funding level for facilities and Plan updated annually. construction, replacement, or infrastructure. renovation of facilities and infrastructure. RolesRoles & & ResponsibilitiesResponsibilities TheThe budgetbudget processprocess beginsbegins inin JanuaryJanuary withwith thethe FinanceFinance DirectorDirector andand BudgetBudget & & GrantsGrants ManagerManager o,o, rr fw,fw, rr ReRe nn FrFr idlretidlret P9:P9: 2727  5. 1. a Budget Overview developing five -year financial forecasts for the General and Enterprise Funds, including best, likely, and worst -case scenarios. Revenue assumptions are developed using financial forecasting software to analyze historical trends and account for any anticipated major economic or legislative changes. Revenue projections are continually updated until the budget is adopted to ensure the amounts are based on the most current information available. Expenditure assumptions are similarly developed in the forecast model considering relevant benchmark indices such as the municipal cost index, consumer price index, and producer price index. New programs and projects are also included to determine the future impact of current financial decisions. rl i F i, E AST A Budget Meeting is held with City Council in June to ory Eo determine Council' s priorities and position issues specific to + \ a development of the operational and capital budgets for the r ' so A ,„ MEETING GumEr upcoming fiscal year. City Council' s decisions provide [ he framework under which the budget is prepared to meet City Council' s programmatic objectives within available fisca r DEPARTMENT IW RNSHOPS MEETINGS resources projected in the five- year forecasts. The meeting nay R.. GlnTEEE open to the public and the public is encouraged to REVIEW attend Jun ° u1 participate. Department Directors are responsible for identifyi Z/ staffing needs, operational funding needs within budget development parame s, - year capital requests, as well as corresponding revenue sources to fund the' In addition, they must conduct a comprehensive review of departmental goal , ves, and metrics. The City Charter charges the City M the duty of presenting a balanced budget to City Council. The budget is considered bala if the total of all available financial resources ( either on hand at the beginning of the o[ g ncrated during the year) equals or exceeds the total of all financial requirements. In e o accomplish this goal, a Budget