Fort Walton Beach Council agenda — 08-03-09 special council-budget review — reading text

AGENDA CITY OF FORT WALTON BEACH SPECIAL CITY COUNCIL MEETING August 3 and 4, 2009 5: 30pm CALL TO ORDER PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA 2. ACTION ITEM 2. 1 Approve change of budget hearing from September 2 to September 9 2. 2 Presentation of 2009 -2010 Budget 2. 3 Approval of purchasing waivers 2. 4 Approval of inter -fund transfer waiver 2. 5 Direction —Leases for City property 3. PRESENTATION 3. 1 Outside agencies requesting funding in FY 2009 -10 ADJOURNMENT Discussion —Direction —Action items may be acted upon by the City Council by either a motion with vote in accordance with Robert' s Rules of Order, or by a consensus of the Council. Any person who decides to appeal any decision made with respect to any matter at this meeting will need a record of the proceedings, and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. ( FS286.0105) The City of Fort Walton Beach adheres to the American with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call City Clerk Helen Spencer at 850 -833- 9509 to make a request. For Hearing Impaired dial the City Hall TDD # 850- 833 -9925 or 1- 800 -955- 8771 ( TDD) or 1- 800 -955 -8770 ( Voice). Requests must be received at least 48 hours in advance of the meeting in order to allow the City time to provide requested service.  CITY COUNCIL SPECIAL MEETING Aup-ust 3, 2009 Special Meeting Agenda Approval of Agenda Agenda Item Number: 1  CITY COUNCIL SPECIAL MEETING August 3, 2009 Special Meeting Agenda Approve change of budget hearing from September 2 to September 9 Agenda Item Number: 2. 1  CITY OF FORT WALTON BEACH Memorandum DATE: July 21, 2009 TO: Bob Mearns, City Manager FROM: Brandy Wunker, Finance Director SUBJECT: Public Hearing Date Change 1. BACKGROUND 1. 1 Chapter 200 " Determination of Millage" of the Florida Statutes sets a statutory timetable for the calculation and notification to the public of the process to set ad valorem tax millage rates and adopt a budget. The statute identifies the time frames and briefly describes the tasks to be accomplished during those time frames. The City ,must notify the Property Appraiser of its calculated roll -back rate, tentative millage rate, and first public hearing date for the budget. 2. DISCUSSION 2. 1 The City is required to tentatively adopt a millage rate and budget at a public hearing within 65 — 80 days from receipt of the Certification of Taxable Value ( DR -420). The City received the DR -420 on July 6. 2.2 At the July 2 special meeting, City Council set the first public budget hearing for 5. 30pm on Wednesday, September 2. 2. 3 . Sixty -five days from July 6 would be September 8. The first public budget hearing cannot be held prior to this date. 3. RECOMMENDATION 3. 1 Staff respectfully requests City Council revise the first public budget hearing date to Wednesday, September 9. Submitted by: Brandy Director Reviewed for Agenda: 7zyc9 T. Mearns, City Manager UABudget\Budget 09- 10\Budget Meetings - August\ Budget Hearing Date.doc  CITY COUNCIL SPECIAL MEETING Aup.ust 3, 2009 Special Meeting Agenda Presentation of FY 2009 -2010 Budget Agenda Item Number: 2. 2  CITY OF FORT WALTON BEACH Memorandum DATE: - July 21, 2009 TO: Bob Meares, City Manager FROM: Brandy Wunker, Finance Director SUBJECT: FY 2009 -10 Proposed Budget BACKGROUND In compliance with City Charter Section 17, the City Manager is to prepare and submit to Council the annual budget identifying expenditures and revenues in sufficient amounts to cover all appropriations. The City Manager' s proposed FY 2009 -10 budget, prepared at a millage rate of 4. 1986, totals $ 36, 126, 435 and is <$ 411, 438> or 1. 1% less than the prior year. DISCUSSION The purpose of this memo is to provide City Council with highlights of the FY 2009 -10 proposed budget. Ad Valorem Taxes decrease. The budget is The City' s 2009 assessed taxable value is $ 1. 311 billion, a 4.8% predicated on maintaining a millage rate of 4. 1986. This rate is 5. 35% less than the millage rate that would generate the same amount of property taxes as the prior year. Ad valorem revenues in the General Fund are anticipated to decrease 5. 2% or $286,455. Staffin Full -time equivalent ( FTE) positions total 315. 36 compared to 340.56 last year, a decrease of 25. 20 FTE' s or 7.4 %. The elimination of 29 positions and reduced hours for another 10 positions is budgeted. The savings are estimated at $ 1. 5 million. Wages No COLA or step /merit increases are budgeted for general or police employees. The current collective bargaining agreements provide for a 7. 12% step increase on a fire union member' s anniversary date —an estimated $ 103K expense. Medical Insurance Staff has estimated a 20% premium increase for the February 2010 renewal based on the City' s premium increases over the past couple of years. An additional $ 107K is budgeted for health, dental, and life insurance expense. Pension Contributions In prior years the City' s pension contribution has been based on the annual required contribution dollar amount provided by the actuary. Effective for FY 2009 -10, the City is required to budget contributions as a percentage of payroll rather than a dollar amount. The contributions as a percent of payroll are: general employees 18. 89 %, police officers 19. 8 %, and firefighters 25. 3 %. follows: general employees $ 86K or 7 %, The City' s contributions are budgeted to increase as police officers $ 99K or 25 %, and firefighters $ 216K or 75 %. r3-B Operational Expenses Auto allowances have been eliminated for all employees except for IT personnel. Blackberries have been eliminated for all employees except Directors to essential emergency /disaster recovery. Travel /training expense has been reduced to fund only CEU' s. City shirts have been eliminated for all employees except field crews. Other operational expenses have been reduced to minimum levels required to maintain current services and programs. Capital Outlay Computers, vehicles, equipment, and other assets with a value greater than $ 500 and a useful life of more than three years comprise capital outlay. For the third year in a row, replacements /purchases are minimal: an envelope sealer, 7 police laptops, vacuum truck refurbishment, front loader, and slope mower attachment. The average age of the City fleet is 10.5 years and approximately $ 400K is spent annually on maintenance and repairs. Lack of funding hinders high quantity, high mileage fleets such as police from maintaining a regular replacement cycle. Capital Improvements The acquisition, construction, replacement, renovation, or repair of facilities and infrastructure with a value greater than $ 25, 000 and a useful life of ten years or more ( e. g. buildings and facilities, parks, streets and sidewalks, as well as water and sewer lines, tanks, and pumps) is categorized as CIP. Projects budgeted in FY 2009 -10 include: cemetery re- sodding, street resurfacing, water & sewer line replacements, sidewalk installation, LED street lights, streetscaping along Third St, Carson Ave, and Eglin Pkwy, water tank maintenance, water meter replacement, pump station ' engineering, lift station rehabilitation, pump station maintenance, storm drain replacement, stormwater separators, and a stormwater master plan. Contingencies Contingency funds do not have an identified purpose and are budgeted for unanticipated or emergency purchases or repairs as follows: $ 50K General Fund; $ 15K CRA Fund; $ 50K Utilities Fund; $ l OK Sanitation Fund; $ 5K Golf Fund; and $ 5K Stormwater Fund. The State of Florida allows up to a maximum of 10% of anticipated revenues to be allocated toward contingencies. The City budgets less than 1 % of a fund' s budget for contingencies. Cost Allocation Plan Interfund Transfers Transfers to the General Fund are comprised of two components and are budgeted to decrease 1. 027M or 32. 5% as a result of an updated Cost Allocation Plan and the inability of the Utilities and Sanitation Funds to continue to transfer the same amount of surplus funds to support general City operations. The Golf and Stormwater Funds do not reimburse the full cost of services received. At the Budget Policy Meeting in May, City Council voted to continue to have the General Fund absorb a large portion of these costs to permit the Golf Fund to retain all revenues for operational use and to replenish net assets. The Golf Fund is budgeted to reimburse $ 50K of the $ 359K expense. The Stormwater Fund was new for FY 2008 -09, so the appropriate interfund transfer amount was not known until the Cost Allocation Plan was updated this year. Staff intends to request City Council forgive a large portion of the Stormwater transfer to permit the Stormwater Fund to retain revenues for capital projects. The Stormwater Fund is budgeted to reimburse $ 15K of the 168K expense. 29- 8 Use of Reserves The following transfers from fund balance or net assets are budgeted, but the full amounts may not actually be incurred if revenues come in higher or expenditures are lower than estimated: General Fund a. $ 178, 000 from designated fund balance to transfer to the Golf Fund ($ 356K was designated in the FY 2008 audit as part of a two -year plan for the General Fund to rebuild the net assets of the Golf Fund). 4th b. $ 1, 450 from designated fund balance for of July ( current year carryover donation 4th revenues will be designated in the FY 2009 audit to fund next year' s of July celebration since the City has taken over this event from the Chamber). c. $ 20, 800 from designated fund balance for computer replacement ( funds are designated annually in the audit for this purpose). d. $ 148, 000 from designated fund balance for economic development to be used for street paving