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

( proceeds from the sale of excess land are designated annually in the audit for economic development or other such development needs). e. $ 865010 from designated fund balance for medical insurance ( funds are designated annually in the audit for this purpose). f. $310, 000 from designated fund balance for retirement ( funds are designated annually in the audit for this purpose). 589, 000 from undesignated fund balance to cover operating expenses. This is the g. $ amount in undesignated reserves estimated to be accumulated as of September 30, 2009 above the minimum balance of 30% of total annual expenditures set by City Council. These funds represent prior year taxes and other revenues collected in excess of the cost of providing services in those years. Staff believes it is prudent to use these reserves to balance the FY 2009 -10 budget rather than cut services and programs before they have been fully evaluated for revenue sufficiency and participation. Law Enforcement Trust Fund 11, 125 from undesignated fund balance since the City cannot legally budget for fine /forfeiture revenue Law Enforcement Training Fund 18, 025 from undesignated fund balance ( this fund will likely be depleted by the end of FY 2009 -10, after which school crossing guards and police travel /training will need to be absorbed by the General Fund) Utilities Fund a. $ 1, 258, 000 from unreserved net assets for water meter replacement b. $ 54,288 from unreserved net assets to cover operating expenses and capital improvement projects Stormwater Fund 43, 767 from unreserved net assets to cover operating expenses and capital improvement projects Water and Sewer Rates Water and sewer rates will increase 3% on October 1 in accordance with the five -year plan adopted in April 2005 in conjunction with the Utility Bond issuance. A new utility rate study is currently being conducted that will determine an additional rate increase for sewer service as a result of the City transitioning to the County' s wastewater treatment plant in January 2010. The City has entered into a 50 -year agreement with the County with an annual rate escalator of 3% for wastewater treatment rather than upgrade the City' s sewer plant. Although the cost of sewer service will increase, the increase will be less than if the City had issued bonds to cover the cost of improvements at its own facility. 3-5-8 Garbage Rates The City' s transfer and disposal agreement with BFI Waste Services stipulates the disposal price per ton will increase 3% from $ 39. 84 to $ 41. 04 in year eight of the agreement (i.e. January 2010) and the disposal rate for yard waste will increase 3% from $ 33. 99 to $ 35. 01 per ton. The fee schedule states " The Tipping Component of Fees will be adjusted automatically for any CPI adjustments passed onto the City." At the May Budget Policy Meeting City Council endorsed increasing the tipping fee component of sanitation rates by 3% effective January 1, 2010 per the City' s contract with BFI and in accordance with existing fee schedule language. Highlights for each department/division are noted below: City Council 15. 6% City Attorney reduced her contract to $ 90, 000 PAWS reduced their contract by 8% to $ 87, 797 Chamber funding reduced by 76% to $ 6,000 to reflect value of in -kind services EDC funding reduced by 19% to $ 18, 000 per direction from Budget Policy Meeting City Manager 13. 0 % New City Manager wages and benefits less than prior Manager Administrative Services 5. 6 % Flu shots eliminated Holiday gift certificates eliminated Risk Management 0. 4% No major changes Information Technology 14. 4 % One position changed from full -time to part-time, no service level impact anticipated City Clerk 10. 3 % No major changes Finance 3. 0% No major changes Purchasing 9. 6 % No major changes Police 0. 3 % Two police officer positions eliminated; no service level impact anticipated Fire 6. 3 % One fire inspector eliminated; no service level impact anticipated County dispatch dues eliminated due to transition to 800 MHz radios Budget increase is attributable to 10. 8% or $ 310, 554 increase in wages and benefits due to 7. 12% step on union members' anniversary dates and the City' s increased pension contribution 46M Recreation 6. 3 % Recreation program FTE' s reduced; no service level impact anticipated Reduction in the number of games played during sport league seasons Employee picnic eliminated Kids Day eliminated (mainly attended by schools) Parks 7. 8 % Service worker FTE' s reduced; less weedeating, edging, and litter control during summer months Budget increase is attributable to utilities not being properly estimated for FY 2008 -09 due to this being a new division in FY 2008 -09 Right -of Way - 9. 1 % Horticulturalist eliminated; no service level impact anticipated Senior Center 3. 3 % No major changes Library 12. 4% Books, publications, and library material purchases have been reduced by 52% to $ 25K Museum 3. 4 % Custodial worker hours reduced; no service level impact anticipated Cemetery 3. 5 % One part-time service worker eliminated; no service level impact anticipated 15K budgeted to re -sod developed area of cemetery; funding from interfund transfer from the Beal Memorial Cemetery Perpetual Care Fund Engineering 69. 5 % Tuition reimbursement for senior planner funded because the educational institution provides in -kind support for the development of the City' s Economic Development Strategic Plan Budget increase is attributable to city engineer, engineering staff of 4, senior planner, and senior staff assistant being transferred to this division as a result of the May 2009 reorganization Building and Zoning 50. 7 % Code enforcement officers moved to separate division for accounting purposes Code Enforcement 100 % New division for accounting purposes Fleet 8. 4% One lead mechanic eliminated; no service level impact anticipated Streets 8. 9 % Budget increase due to additional street paving Street paving funded with fund balance designated for economic development 54" Facilities 4. 7 % Facilities superintendent funded through May 2010 Budget increase due to service operations manager transferring to this division as a result of May 2009 reorganization Non -Departmental 31. 1% v Contingencies reduced by 52% to $ 50K Law Enforcement Trust Fund 56. 8 % Forfeiture activity transferred to City Attorney from outside legal counsel Uniform and ammunition expense transferred to the General Fund because federal forfeiture fund balance is near depletion Law Enforcement Training Fund 3 5. 5% Two school crossing guards eliminated; the Sheriff provides crossing guards at schools where it has resource officers (Choctawhatchee High School and Prior Middle School) Travel /training reduced because fund balance is near depletion CDBG Fund 0. 7 % Grant management transferred back to City staff from OCDC; allows City to retain $ 28, 444 admin fee CRA Fund 5. 3 % CIP' s budgeted per CRA Board Debt Service Fund 0 %0 No major changes Capital Projects Fund 0 %0 No major changes Customer Service 3. 7 % Utilities now budgeted in this division Utilities 71. 2 % Staffing reduction due to two positions being transferred to Engineering as a result of May 2009 reorganization Water Operations 2. 4 % No major changes Sewer Operations 58. 2 % Staffing reduction due to transition to County' s WWTP Expense increase due to County' s readiness to serve and sewer treatment fees 2005 Utility Bond proceeds will be used for WWTP decommissioning expenses Water Distribution 150. 1 % Water meter replacement is funded with $ 13M from unrestricted net assets; the City' s water loss ratio has increased to 19% ( i.e. water produced exceeds water billed) 2005 Utility Bond proceeds will be used for water line replacement MIT. Sewer Collection 24. 1 % 500K is budgeted for engineering design to upgrade /replace the City' s parallel force main 2005 Utility Bond proceeds will be used for sewer system rehabilitation Non -Departmental 47. 1% V Contingencies reduced by 67% to $ 50K Cost Allocation Plan transfer to General Fund reduced by 28% to $ 1. 07M Transfer of surplus funds to General Fund has been eliminated Solid Waste 4. 2 % Staffing reductions; no service level impact anticipated Non -Departmental 23. 7% V Contingencies reduced by 60% to $ l OK Cost Allocation Plan transfer to General Fund reduced by 40% to $ 289K Transfer of surplus funds to General Fund reduced by 7% to $ 419K Golf Operations 57. 1 % Staffing reductions; no service level impact anticipated Grounds maintenance expenses moved to separate division for accounting purposes Grounds Maintenance 100% New division for accounting purposes Non -Departmental 1. 2 % Contingencies reduced by 50% to $ 5K Reserves to rebuild net assets anticipated at $ 225K including $ 178K transfer from General Fund Stormwater 31. 7 % CIP funding increased 890% to $ 198K; funding from increased revenues as well as appropriation from net assets Non -Departmental 80. 4% Contingencies reduced by 50% to $ 5K Beal Memorial Cemetery Fund 10. 4 % 15K interfund transfer to General Fund to re -sod developed area of cemetery rg - s RECOMMENDATION Staff respectfully requests City Council action on the following during the August budget meetings: 1St 1. Set Special Council Meeting ( public hearing) — Wednesday, September 9, 2009, 5: 30 pm 2. Approve computer purchase waiver 3. Approve library book purchase waiver 4. Approve fuel purchase waiver 5. Approve stormwater interfund transfer waiver 6. Endorse the proposed FY 2009 -10 budget. Any increase in spending in one area will require a reduction in another area. Submitted by: Brandy Wunker, Finance rector lojzog Reviewed for Agenda: 4obert City Manager 2 UABudget\Budget 09- 10\ Budget Meetings - August \7 -24 Budget Distribution Memo.doc 810  Page I of 5 Robert Mearns From: Charlotte Dunworth Sent: