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

Committee is formed comprised of the City Mat ft . nance Director, and Budget & Grants Manager. The Committee conducts a ve meetings with Department Directors to review their budget requests and a toll ran fort is undertaken to achieve City Council and department goals within fiscal constrat The Budget Committee enlists assistance for areas of specialized interests, such as the 17monation Technology Manager for computer issues and the Human Resources Manager for personnel and risk management issues. Department goals, objectives, and metrics are also evaluated during budget development to determine the effectiveness of program activities and appropriate funding levels. After the departmental meetings, the Budget Committee finalizes the proposed budget given revenue projections, economic conditions, funding requirements, and City Council program priorities and issues previously identified in the budget process. Once a balanced budget is achieved, it is presented to City Council for consideration. Community Participation The City solicits input annually from its residents and businesses to gauge citizen satisfaction and progress toward improving services. A 6. 7% response rate ( 548 responses out of 8180 surveys) was achieved for the third annual City Services Survey. The responses were presented to City Council and have been used to ensure resources are allocated to the most highly valued programs and activities. The City' s website and utility bills contain notices regarding the budget process and City Council' s budget meetings. I1 1 ' If El Ia1 - Ae n D CIt Pg. 28 20  5. t. a Budget Overview City Council Budget Review BUDGET SCHEDULE Fi. c -Yea, Finanvial FOaeazts Devebped The Mayor and City Council are lanuary 2013 Fiat Department Budget submission responsible for reviewing the proposed May 2013 Fee Schedule Revenues . budget g to ensure it meets the g goals . and • Bersomid . opeiadng Expenses objectives of the City, conducting . Campaters at Pyulpmenwehlolez Capital haprovemem Projects meetings on the budget to enlist public . Depa tmenlal Budget Renews comment, and conducting public hearings June 2013 June 18 2013 Ciy Cou ciil gBeen g prior to the final adoption of the budget. t B a set Pmpoeed Mivage R TRIM Notice In August, a budget meeting is held with . second Department R*, . . 1 Sub-).. n the Cityy . ouncil to review and discuss July 2013 Cumin Year Acc hue Badge, Year Goals& ties the proposed budget. The City Manager . reviews major issues and Department . P' dormen Meier' August 12, 2013 City Council - Review Budget Directors are present for the discussions seplemba 4, 2013 City mi g - Adopt' renulive and study of the proposed budget. The MiH. ge Rat Budgu by Rewmuon meeting is open to the public and the scptembet 18, 2013 tygtnci wing - Adopt H- 1 Mdage public is encouraged m attend and and Badges by Resolatom participate. During September, two public hearings on the millage perty tax) rate and budget are held per State Statute before final budget consideraton. eetings are advertised as part of the agenda and Florida Law requires certain Bewsp isements prior to the second and final budget hearing. At the public hearings, [ h b y make formal comment either for or against the proposed budget and ask que ity Council about the budget. Budget adoption occurs in Septemb ity Council deliberations and two public hearings. City Council may take action [ dif e proposed budget at its discretion. Prior to budget adoption, City Council must millage rate to support budgeted funding levels. An adopted budget is published n at an October 1. Budget Maintenance _ Ac Budget maintenanc a around activity of the Department Directors, Finance Director, and Budget & Grants ManV. Spending control mechanisms include Finance Department review of purchase requisitions and departmental review of reports presenting budget versus actual revenues and expenditures. These financial reports are prepared and reviewed by staff monthly and provided to City Council quarterly to identify and communicate any spending variances. Performance measures are prepared and reported to Council quarterly to monitor progress against goals and objectives, citizen satisfaction, and benchmarks. Annual appropriations lapse at fiscal year end with the exception of encumbrances and appropriations related to multi -year projects and other items identified by City Council to be carried over to the next fiscal year. These carry -overs are included in the ensuing year' s adopted budget resolution. Budget Transfers Operationally, the City functions at a fund level basis allowing budget transfers within funds for individual line items that exceed the budgeted amount without a formal budget amendment. Budget transfers are used only to transfer appropriations between line items within a fund, not to increase the total budget or to transfer resources between funds. Budget transfers are permitted in accordance with Administrative Policy FIN -13. All budget transfers are performed in the  F- 5-1 . a Budget Overview City' s accounting system by the Finance Department, Budget Amendment Per Florida Statute 166. 241, the adopted budget may be revised with a budget amendment approved by City Council in the same manner in which the budget was adopted. The resolution adopting the annual budget allows the budget to be amended by resolution provided that a corresponding funding source supports any additional expense. Transfers between funds and increases to a fund' s total budget are permitted by resolution adopted by City Council. Frequently, the budget is amended to record grants awarded to the City orACher mid -year activities approved by City Council. The budget amendment increases or des the total amount of the adopted budget of each fund. FINANCIAL POLICIES The financial policies- presented below set forth the basic frame he overall financial management of the City, as well as provide guidelines for eva ua current activities and proposals for future programs. Financial Planning Lone -Ranee Planning — Update the Vision Plan eve ' w years and hold a Budget Policy Meeting annually to ensure current and proposed Z and services reflect the values shared pRget by citizens, City Council, and staff and to e u impact on revenues and/ or reserves. Prepare five -year General Fund revenue & e s projections and five -year Enterprise Fund pro- formas in conjunction with current development to highlight the long -term impact of current decisions. These for is rovided in graphical format on page 210. Asset & Infrastructure Inventory — EA ( and reprioritize as necessary) the five -year capital needs of the City annually as pO he udget process. Assets, as defined for purposes of this review, include computers, vehNesNknd motorized equipment. Infrastructure improvements e. g. street resurfacing, wate Ines, parks) are evaluated during development of the five - year capital improvern= k Balanced Budge[ ep a balanced budget each fiscal year in accordance with Florida statutory requirements municipalities. The budget is considered balanced if the total of all available financial resources ( either on hand at the beginning of the fiscal year or generated during the fiscal year) equals- or exceeds the total of all financial requirements ( either planned spending during the year or funds required to be on hand at the end of the fiscal year). The requirement for a balanced budget is established at the fund level and must be met for each individual fund budgeted. When anticipated revenues exceed budgeted expenses, a non - operating governmental expenditure line " Fund Balance — Reserved for Future Appropriation' or enterprise expense line " Reserved- Undesignated Net Assets" accounts for the excess. In reverse, when budgeted expenses exceed anticipated revenues, a non -operating governmental revenue line " Appropriation from Unassigned Fund Balance" or enterprise revenue line " Appropriation from Net Assets" funds the overage. Although the budget adopted by City Council is balanced, the budget may become unbalanced during the year due to a natural disaster, civic emergency, grant award, or other City Council action. When these changes occur, a budget amendment must be adopted by resolution of City Council.