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

0,,. 1 Rm 1n11 n Bach. FL Packet Pg. 30.. 22  F- 5.1. Budget Overview Financial Monitoring — Prepare monthly financial reports for the City Manager and Finance Director detailing revenues and expenditures by fund, department, and division. Identify and explain any significant variances between budget and actual. Report financial information to City Council on a quarterly basis. Revenues Taxes — Maintain the millage and other tax rates at levels commensurate with the service levels being provided. Services which have a citywide benefit shall be financed with revenues generated from a broad base, such as property and other taxes. Evaluate annua as part of the budget process. User Fees — Maintain fees and rates at appropriate levels to fund their cone n g purpose, especially in the Enterprise funds. Services where the customer de[ ids Me use shall be financed with user fees, charges, and assessments related to the level ice provided. User fees shall be maximized in lieu of general revenue sources for se t SIW can be individually identified and where costs are directly related to the level of ervice. a extent to which the total cost of providing the service is recovered depends h natore of the service. For governmental services provided for the public good ( e. g. pce and fire protection, street maintenance, and land use regulation), it may be approprV a for a substantial portion of the cost to be borne by the taxpayers. For proprietary scrviceepr Vlded for the enjoyment of specific residents ( e. g. recreation programs, cemetery o otal cost recovery may be warranted. Evaluate annually as part of the budget process. Non -Recurring Revenues — Fund recurnn revenues will be reserved for future SimW res with recurring revenues. One -time or projects identified by City Council to the greatest extent possible. Unpredictable Revenues — BudeCtJ inp reA ictable revenues at conservative levels ( e.g. building permits) to safeguard against a s 191, Expenditures Operating Expenses lz jeaccent year operating expenses with current year revenues and/ or available fund balan] Contingencies — Appro riate contingency funds in the General Fund and Enterprise Funds to guard against unanticipated price increases ( e.g. fuel, utilities), emergency repairs, or revenue shortfalls. The State of Florida allows up to a maximum of 10% of anticipated revenues to be allocated toward contingencies. City practice is to budget 1% of personnel and operating expenses as contingency funds to be used as a last resort. Budget residuals ( excess budget funds transferred out of an account by the Finance Department once the budgeted expense has been incurred) will be exhausted before contingency funds are used. The City currently meets this policy for the applicable funds. Special Project Carryovers —Carry forward into the new year through the budget resolution with the corresponding revenue source of the prior year. These are projects and/ or purchases that are incomplete as of September 30 of any fiscal year that will be continued and made part of the appropriations for the ensuing year. These are budget funds for large items ( usually capital purchases, projects, or studies) that were authorized and appropriated by City Council in a prior fiscal year but were not spent due to time constraints. Packet.PW 31  5. 1. a Budget Overview Encumbrance Carryovers — Carry forward into the new year through the budget resolution with the corresponding revenue source of the prior year. In general, purchase orders close out at the end of the fiscal year unless they are identified for carryover as part of the budget process of the ensuing year. These encumbrances were authorized, budgeted, and appropriated by City Council in a prior fiscal year but were not fully reeeipted in due to the ongoing nature of the expense. Fund Balance ( governmental funds) Fund balance refers to the difference between current financial assets and liabilities reported in a governmental fund. Since all related assets and liabilities are not reported f governmental funds, fund balance is considered more of a liquidity measure than a net worth re. Credit rating agencies monitor fund balance levels and strongly consider unres ed d balance i when determining a local government' s creditworthiness. Fund bala ce rs important to a guard against unanticipated events that would adversely affect the fins a nditicm of the City M and jeopardize the continuation of necessary public services. ' iM r five types of fund balance: a 0 Restricted ae I. Nonspendable ( inherently nonspendable) — resollSFes [ h [ cannot be spent because of form ( e. g. inventory, long -term loans receivablel\ t, because they must be maintained 7Vr' o intact ( e. g. endowment principal). ( NrLL Advance to Golf Fund — The $ 2. 5 has been written off since golf club operations are being rolled into the n nd from a stand -alone enterprise fund. eN 2. Restricted ( externally enforcer t ions) — resources with limitations imposed by creditors, grantors, laws, reg r enabling legislation. . rn a Harvey Trust — The appr ni ted $ 70, 590 from the Harvey Trust in the current in9 year budge[ for a stor elybine[, shelving unit, and a/ c replacement IV Unrestricted 17.> ' 3. Committed ( Nd limitations) — resources whose use is constrained by limitations hat the gove ng ody has imposed and remains binding until removed in the same manner. Disaster/ Emergency Reserve — City Council established a committed fund balance of 30% of annual budgeted expenditures per Resolution 2011 - 13 adopted August 16, 2011. This equates to $ 5. 5M in the current year budget. 4. Assigned ( limitation resulting from intended use) — resources whose use is constrained by a body or official designated by the governing body. Subsequent Year' s Budget —City Council authorizes City management to set forth in the annual budget ( and any amendments thereto) fund balance for specific purposes per Resolution 2011 - 13 adopted August 16, 2011. There is appropriated $ 154, 054 in the current year budget for network firew all, laserfiche upgrade, four police vehicles, and additional lighting in fleet bays. 5. Unassigned ( residual net assets not otherwise classified) —total fund balance in excess of the nonspendable, restricted, committed, and assigned fund balances ( e. g. surplus). There is currently $ 361K. Packet Pg. 3F  5. t. a Budget Overview aa Changes in Fund Balance mm For reasons previously stated ( advance to golf fund write -of firewall, laserfiche upgrade, four police vehicles, and additional lighting in fleet a General Fund reserves are anticipated to decrease $ 2. 8M or 30 %. The Law En 0000 rnEA raining Fund is budgeted to decline $ 1490 or 15% due to accreditation expenses, w is are incurred every three years. ee riri Actual BudRX Vartance FY]' n, FY13 GenemlFund $ FY 2012 111, 058, 860 $ FY 2013 9. 230, 1 $ 014 6, 494. 587 2755,536 - 29. 9% 0N