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

Paclf; P9- 46-  5. 1. a Expenditures Culture & Recreation — This category equals $ 3. 8M or 11. 1% of total expenses and includes parks & recreation programs and facilities, senior center, library, museums, and golf courses. Golf operations are intended to be self- sufficient through user fees; however, this has not been possible over the past decade for a variety of reasons. A portion of the other leisure services expenses are offset by revenues such as facility and park rentals, youth and adult athletic fees, and museum entrance fees. This category is ss down $ 354K or 8. 4% from the prior year and down $ I. 0M or 20.8% over the past five years oil due to budget constraints as well as planning for zis the consolidation of facilities. The majority of _ the current year decrease is realized by fs transferring golf operations from a stand -alone enterprise fund to the General Fund. A new ass recreation complex is currently under sa ei ` s % - • G ° "" a te` °" ° 11... construction at the site of the old Fred Hedrick " """' °" Recreation Center. Once the new facility is • m, ao, = . eo F operational in Summer 2014, the Creative Senior ," Center, Docie Bass Recreation Center, and Chester Pori eere on Center will be closed and althletic fields at Seabreeze, Ferry Park, and Fairgroun be closed. Debt payments for the new facility are fully offset by staffing and operatiory gs from centralization. of total expenses and includes the General Government — This category is $ 2. NY aa following units of City government fundedc rem tax proceeds that provide support N services to other departments and info the public: City Council, City M y Clerk, information technology, human rtes, risk management, aecounti pur asing, planning, fleet, and facilities. a expenses ` s, o Irr have been on the decline staffing and p10 operational budget cu w as property & casualty insurance a i after spiking as a result of the 2004 5 Florida hurricane mo.. seasons. The dramatic decrease in FY 2012 -13 was due to an accounting change to record the a° 14 cost allocation plan as reimbursements ( e. g. -°`° - decreases in expenses) rather than transfers among funds. The $ 199K or 7. 8% increase for FY 2013 - 14 is attributable to general operational adjustments to achieve a sustainable budget. Debt Service —This category totals $ 2. 4M or 6. 9% of total expenses and includes principal and interest payments for the City' s equipment and facilities funded via capital lease /purchase, bond issue, or other debt financing. New annual debt payments include: 61K Bank Loan for a replacement fire pumper ( annual debt payment estimated: final amount won' t be known until purchased) 535K Bank Loan for centralized recreation complex 594K State Revolving Fund Loan for a new force main and pump station ( annual debt payment estimated; final amount won' t be known until project completion in December 2013) 33K Bank Loan for a replacement street sweeper ( annual debt payment estimated; final amount won' t be known until purchased) Overall, debt expense is only $ 983K or 70.0% more than the previous year because the 2001 PackeE y  5. t. a Expenditures Capital Improvements Bond was refinanced at a lower rate yielding approximately $ 60K in annual savings and the golf club' s $ 169K to repay the $ 2.7M loan from the General Fund to defease the clubhouse bond has been eliminated since operations are being transferred to the General Fund. Capital Outlay/ improvement — This category »<, comprises $ 2. 1M or 5. 9% of total expenses and w.n evidences most of the return to sustainability, with n, a budgeted increase of $ LOM or 100. 7 %. Capital 114 x' 5 outlay includes the purchase of computers, _ vehicles, equipment, and other assets with a value a- O xis greater than $ 500 and a useful life of more than one year. Capital improvement includes the aiu aa m' acquisition, construction, replacement, or srr renovation of facilities and infrastructure with a c4L. 111 " area imr-.= m m0 value greater than S25, 000 and a useful life of ten miw . N 11 0 years or more ( e. g. buildings, parks, streets, water e and sewer lines). IT funding of $77K includes a firew2 e upgrade, and various laptops and desktops replacements. Vehicle replacements in t of $729K includes 8 patrol vehicles, 5' / rton trucks, 13/4 - ton truck, 1 SUV, 1 unlit, residential sideloader. The following capital i m 2 1 - ton crew cab trucks, and 1 are budgeted at a total cost of 0NaLL 615K: Hooper Drive paving & drainage, wa( nt, sewer system grouting & N lining, and lift station rehab. ,` N Interfund Transfers — Interfund sent $ 1. 7M or 49 % a of total expenses. The General Fund' s $ LOM transfer to I rvice Fund for principal and interest payments and 30K transfer to the Beal Me I Ce tery ( 20% of lot sales) for investment for perpetual care once all locations are sol t uprise the majority of this category. The Utilities Fund transfers $ 490K to the Genera d ( 6% of water & sewer fees) as a franchise /right -of -way access fee, similar to whakAl " I ed to other local utility companies. The Sanitation Fund transfers $ 1301K to tyC' cl u I to compensate for additional roadway wear & tear caused by heavy sanitation t ks mpart to regular passenger vehicles. Economic Environment — This category totals ain 1. 1M or 3. 2% of total expenses and includes the s.. Community Development Block Gram ( CDBG) xix program for low- moderate income families and xiu Community Redevelopment Agency ( CRA) s N program to revitalize blighted areas. CDBG funding comes from the U.S. Department of Housing and Urban Development, and the decline is representative of fewer federal dollars wo allocated to the City. CRA activities are funded from a portion of City and County tax dollars. 1 11 2013 14 Annual fluctuations are primarily due to the timing of capital projects. Transportation —This category represents $ 1. 1 M or 3. 0 % of total expenses and includes streets, right -of -way, and engineering. Roadway- related expenses are funded in large part by local option fuel tax proceeds and reimbursements from the Florida Department of Transportation. PaekBt.Pg. 48.:'';. 40  5. 1. a Expenditures The $ 83K or 7. 2% decrease in this category is bob primarily due to one GIS /CAD analyst position being transferred from engineering to utilities ay. physical environment category) to more accurately reflect the position' s duties. Fm Reserves — Reserve funds are budgeted when aux revenues exceed expenses or to rebuild net assets wi in the enterprise funds. Reserves totaling $ 400K wu or 1. 2% of expenses are budgeted in the Florida Building Code, Utilities, Sanitation, Stormwater, and Beal Memorial Cemetery funds. Contingencies — Contingency funds total $ 262K or 0 guard against unanticipated price increases ( e. g. fuel, shortfalls. The City budgets 1% of personnel and opera General, Florida Building Code, Utilities, Sanitation, an B — kFL