Fort Walton Beach Council agenda — 03-19-12--special--audit — reading text

netnet assetsassets byby$ $ 1_ 1 mil ionmil ion forfor thethe fiscalfiscal yearyear endedended September September 30,30, 2012.2012. KeyKey elementselements ofof thisthis changechange areare asas follows:follows: BothBoth operatingoperating andand capitalcapital grantsgrants forfor governmentalgovernmental activitiesactivities decreased.decreased. OperatingOperating grantsgrants decreaseddecreased byby$ $ 172,172, 390390 oror 22.22. 6%6% duedue toto priorprior yearyear receiptreceipt ofof thethe AssistanceAssistance toto FirefightersFirefighters Grant.Grant. CapitalCapital grantsgrants decreased decreased byby$ $ 194,194, 212212 oror 55.55. 3%3% duedue toto recording recording thethe receiptreceipt ofof thethe policepolice departmentsdepartments OSSIOSSI softwaresoftware inin thethe priorprior year.year. PropertyProperty taxtax revenuerevenue decreaseddecr$ eased $ 187,187, 751751 duedue toto thethe declinedecline inin thethe taxabletaxable assessedassessed valuevalue ofof CityCity properties.properties. FranchiseFranchise feefee revenuerevenue decreaseddecreased $ $ 257,257, 269269 primarilyprimarily duedue toto aa correctioncorrection inin thethe methodmethod ofof allocationallocation byby oneone ofof thethe primary primary revenuerevenue sources,sources, whichwhich waswas outsideoutside thethe City'City' s control.control. 77 etet Pg:Pg: 31`.31`.  3. 1. a Overall, expenses for governmental activities increased $ 1. 6 million or 8. 5% primarily related to an increase in the other post -employment benefits ( OPEB) liability, City Council planned use of unrestricted fund balance for employee incentives, increased expenses related to the Community 0 Redevelopment Agency' s addition of 3 police officers, unanticipated expenses that necessitated the use of fund balance, and increased pension contributions. @UC Chart 1 LLc Expenses and Program Revenue— Governmental Activities Qcm 12, 000,000 NC SaKE0 1,000,000 8, 000,000 N 6, 000, 000 ON 4000000 LL 2000, 000 lDM 0 Culture & polnteresice N physical Transpotla6on Economic General Public Safety Development Recre Govemmes Environment N IN Program Revenue Ji NExpences n Chart 2 K0a nU Revenues by Source —Governmental Activities m LLc Q@aCJ tAE0aNC T a. 0 sales13%T. , 8 r„, PkekPg:.a2  3. 1. 3 Current Year Impacts —Business -Type Activities Business -type activities decreased the City' s net assets by $ 385, 079 for the fiscal year ended September 30, 7012. Key elements of this change are as follows: Capital Grants and Contributions for business -type activities increased $ 266, 113, or 406.3% due to funding received for the reuse water line infrastructure grant. Expenses throughout the Enterprise Funds decreased by $ 2. 0 million, or 13. 8 %. This decrease was primarily due to the prior year recognition of significant depreciation expense when a change in estimate on a previously purchased force main and re -use water filtration system occurred. The Sanitation fund experienced an increase of 8. 6 %, or $ 216, 272 due to the purchase of two trucks, while the Golf fund expenses decreased by $ 187, 288, or 8. 5% related to necessitated reductions due to declining revenues. The Stonnwater fund experienced an increase of $ 157, 668, or 46.4% due to expenses related to the development of a master plan. The Utilities fund recognized an impairment loss of $588, 652, due to the revised average expected life of the City' s Pump Station 41. Utilization of 2005 Utility Revenue Bond proceeds for the decommissioning of the City' s Wastewater Treatment Plant. Chart 3 Expenses and Program Revenue • Business-Type Activities 9, 000, 000 8, 000.000 7000, 000 6, 000, 000 000, 000 4, 000000 3, 000, 000 2 000 000 000, 000 Sanitation bon ° ^ ^ °• °• Utilities Program Revenue GExpenses • J wP et,Pg 33  3. 1. a Chart 4 Revenues by Source - Business -Type Activities Capital Grants & Contributions 2% Charges for x Servi 97%ces 41 ou it, =° s, MisInvestment c. Income & Earni1% ngs FINANCIALFINANCIAL ANALYSIS ANALYSIS OFOF THETHE CITY'CITY' SS FUNDSFUNDS AsAs notednoted earlierear, lier, thethe CityCity ofof FortFort WaltonWalton BeachBeach usesuses fundfund accountingaccounting toto ensureensure andand demonstratedemonstrate compliancecompliance withwith finance-finance- relatedrelated legallegal requirements.requirements. Governmental Governmental FundsFunds TheThe focusfocus ofof thethe CityCity s governmentalgovernmental fundsfunds isis toto provideprovide informationinformation onon nearnear - - termterm inflows,inflows, outflows,outflows, andand balancesbalances ofof availableavailable resources.resources. SuchSuch informationinformation isis usefuluseful inin assessingassessing thethe CityCi' ty' s financing financing requirements.requirements. InIn particular,particular, unrestricted unrestricted fundfund balancebalance maymay serveserve asas aa usefuluseful measure measure ofof aa government'government' ss netnet resources resources availableavailable forfor spendingspending atat thethe endend ofof thethe fiscalfiscal year.year. AsAs ofof September September 30,30, 2012,2012, thethe CityCity ofof FortFort WaltonWalton Beach'Beach' s governmentalgovernmental fundsfunds havehave combinedcombined endingending fundfund balancesbalances ofof$ $ 16.16. 1 mil ion,mil ion, aa decrease decrease ofof$ $ 1. 66 mil ionmil ion inin comparisoncomparison withwith thethe priorprior year.year. ApproximatelyApproximately 55.55. 6%6% ofof thisthis amount,amount, oror 59.59. 00 mil ion,mil ion, isis availableavailable forfor spendingspending atat thethe discretiondiscretion ofof CityCity CouncilCounci . l. TheThe remainder remainder