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

............................................................ . .............................. . 236 BudgetAdoption ........................................................... ............................... 237 2  F- 5-1. a CITY OF FORT WALTON BEACH, FL City Council Left to right ( standing): Bobby Griggs ( Seat 1), Joyce Bull Ridgon (Seat 6), and Dig Left to right ( seated): John Mead ( Seat 3), 1 Council members are 6dd years for four year staggered terms. City Council meets on the second and fou[ 14 Hof each month at 6: 00 p. m. in the City Council Chambers located at 107 Miracle Strip F Fort Walton Beach, Florida. Appointed Officers Department Directors City Manager —Michael Beedie Administrative Services — Vacant City Clerk —Helen Spencer Engineering & Utility Services —Tim Bolduc City Attorney —Hayward Dykes, Jr. Financial Services — Brandy Ferris Fire Services — Ken Perkins, Chief Police Services —Ted Litschauer, Chief Recreation & Cultural Services —Jeff Peters Pa q1  5. 1. a Core Values Rather than being just words found on the website or located at the top of letterhead, these core values are the guiding principles by which City Council, Department Directors, and City Staff will conduct themselves, allocate resources, and prioritize goals and objectives. These principles form a non -negotiable code of conduct and will guide our government on who we hire, how we train, and how we reward. These values will define who we are, what we stand for, and influence policies, procedures, and guidelines. Adopted by City Council in May 2011, after a collaborative effort by Departm.ADirectors and the City Manager to consolidate employee suggestions, these five core values rbp nt the first milestone in instituting the City' s new Performance Excellence Program. Inteerity We will conduct ourselves in an honest, trustworthy, and ethical m nn r. Accountability r ' We will take full responsibility for our actions, resource, Q, attitudes. Teamwork _ We will work together to provide quality serviCc v Customer Service We will be professional, use all 5v . ble esources, and strive to meet the needs of our customers. Continual Imoroveml We will promote a cuNAat seeks to better our organization Adopted by City Council in September 2011, after a collaborative effort by Department Directors and the City Manager, the updated Vision and Mission for the City are as follows: Vision The City of Fort Walton Beach: a recognized leader in the provision of Community Services. Mission To enhance and protect the Community by providing quality services.  S. t. a City Manager' s Budget Message July 26, 2013 Honorable Mayor, City Council Members, and Citizens: It is my pleasure to submit the fiscal year 2013 -14 municipal budget. The City of Fort Walton Beach budget is designed to meet the highest standards of municipal budgeting. This budget continues the City' s commitment of providing quality services in a cost controlled manner, ensuring recurring revenues fund recurring expenses, and maintaining prudent cash reserves. This year' s budget process emphasizes sound fiscal management and sustainability to achieve the goals established by citizens, City Council, and staff. '' The FY 2013 - 14 budget of $34,698,451 is $ 2, 682, 880 or 8. 4% more than thelljop FY 2012- 13 budget due to efforts to return the City to financial stability and pr amNat sustainability after consecutive years of reductions. The budget has been developed in the framework of sustainability... the idea that the expenses proposed will enable t '[ ontinue to offer the variety of programs and services for which the City is known and p ' de the highest level of services to its residents and businesses. The sustainability i tires discussed in greater detail on the following pages, but first it' s helpful to evaluate the curve economic conditions. ECONOMIC ENVIRQ T National economic indicators - somewhat usefu o k5u tine he l ocal framework within which the City of Fort Walton Beach operates - seem t t continued economic recovery. 3 Consumer Price Muniei Consumer Confidence Leading Economic Index Index Index Index Arnow indicate, moron of peiforrom d pedyear: CoIa denoted change har a pe, cove( green) ur negative (oil) Impact.* The Consumer Price Index ( repared by the US Bureau of Labor Statistics and the most widely used gauge of mill s 1. 3% higher than a year ago for the southern region. The Municipal Cost Inde by American City & County to show the effects of inflation on the cost of providi u opal services — is 1. 9% higher than a year ago. Although higher prices have a negative getary impact, they do signal an improving economy. The Consumer Confidence Index — prepared by The Conference Board based on a representative sample of US households — is at its highest level since January 2008. The Leading Economic Index — also prepared by The Conference Board and designed to signal turning point patterns in economic data — has grown steadily over the past six months. According to economists at The Conference Board, " conditions in the economy remain resilient" though " cutbacks in public spending programs" ( e. g. sequestration) could prove challenging. Economic stabilization is evident on a local level as well. The State of Florida projects an increase for each of the City' s revenue sharing funds ( local option fuel lax, communication services tax, municipal revenue sharing, and half -cent sales tax), which suggests an uptick in discretionary spending. After five years of declining values, the Okaloosa County Property Appraiser anticipates a 0. 8% increase in taxable assessed value for the City. It appears the downward spiral in the real estate market has ended. However, civilian furloughs at Eglin APB and Hurlburt Field, two of the area' s largest employers, could adversely affect the local economy in the short- term. aryor Far Win— B— T, Fl Packet Pg. 13: <;'  5. 1. 0 City Manager' s Budget Message TOP 3 BUDGET ISSUES Current Year - FY 2013- 14 Prior Year - FY 2012 -13 Property Taxes $ 1, 139, 070 Staffing Changes $ 839, 549 Millage rate inc reuse from 4. 5383 to 5. 7954 to fund FTE' v reduced from 298.4 to 289.95; eight sworn a susaiia bl, General Fund budget. police offteers among positions eliminated. Wage Adjustments $ 280, 166 Property Taxes $ 149,078 7.48% CPI since the last adjustment on 101012008; Assessed value decrease of $38M or 3. 0% due to spread over two vear period and based on ! enure. declining property values; Malage rate unchanged. Golf Club $ 369, 386 Pension Contributions $ 146,744 Moved operations from enterprise fund to General Car oonica eons per actuaries. 2 % general, Fund to facilitate set - sustainability. 36. 7% oGce,, were, 33. 6% ' hlers Property Taxes e Y The City' s 2013 gross taxable property value for operating pu $ 1. 129 billion, an increase of $9. 4 million or 0. 8% from the 2012 final gross tax le p rty value of $ 1. 119 billion. Property taxes primarily fund General Fund opera[i s. o er, property taxes paid by certain residents and businesses located in areas tar [ e r specific improvements to eliminate blight and improve infrastructure are allocat d to t1v Community Redevelopment Agency ( CRA) Fund. 1, 400 --- , ) 200607 200708 200909 2009 -10 20 10 11 2011 - 12 2012 -13 201314 u General Fund . CRA Fund — Tax Revenue ... • Millxge As the chart above depicts, the City maintained or decreased the millage ( tax) rate during the real estate boom ( FY 2004 -05 through FY 2007 -08). The City maintained the millage rate during FY 2008 -09 and FY 2009 -10 and reduced personnel and expenses in response to the lower tax revenues as property values began to fall. The millage rate was increased in FY 2010 -11 in order to maintain revenues as property values continued to fall. Further staffing and operational cuts were made in FY 2011 - 12 and FY 2012 -13 in order to maintain the millage rate. For the most part, residents and businesses have seen only minor reductions in services and programs as a result of staffing and operational reductions over the last several years. However, retaining the millage rate at 4. 5383 for FY 2013 - 14 is not possible without cuts that would result in increased response times for police and fire as well as safety concerns for those personnel, or the elimination of programs that identify the City ( e. g. Library, Heritage Park Musuems). Reductions to recreational programs would be counter- productive since a new recreation complex is currently under construction. The deferment of computer, vehicle, and equipment replacements and facility maintenance as well as the elimination of employee wage