Fort Walton Beach Council agenda — 09-08-2010 Special-1st Public Hearing FY 10/11 Budget — reading text

25% AT ALL THREE OF MY BUSINESSES. I' VE ALSO DONE AS MUCH AS POSSIBLE TO CUT BACK ON PERSONAL SPENDING AT HOME. MOST EVERYTHING THAT I MIGHT BE ABLE TO SELL, IS FOR SALE, IN ORDER TO RAISE MONEY TO PAY BILLS. ALL OF THIS IS PAINFUL. ESPECIALLY LAYING PEOPLE OFF. I TALK WITH PEOPLE EVERY DAY THAT ARE DEALING WITH THE SAME PROBLEMS, ONLY WORSE. BUT I CAN'T RAISE TAXES TO SOLVE MY SPENDING PROBLEMS. IT IS THE EPITOME OF ARROGANCE FOR YOU TO DO SO AT THIS TIME, IN THIS ECONOMY. ( I. E. YOU ALL WATCH THOSE AROUND YOU FIRE LONG TERM EMPLOYEES AND CUT TO THE BONE, WHILE YOU WAVE A MAGIC WAND AND DECREE A TAX INCREASE TO AVOID DOING WHAT EVERYONE ELSE IS FORCED TO DO). IN CASE YOU HAVEN'T NOTICED, WE ALREADY HAVE WAY TOO MUCH GOVERNMENT (CERTAINLY MORE THAN WE CAN AFFORD). SO, MAN UP! DO YOUR JOB! AND DON'T SIT BY LIKE POLY ANNA AND WATCH THE REST OF US BLEED WHILE YOU HIDE BEHIND ROSE COLORED GLASSES. of 2 9/ 8/ 2010 3: 38 PM r y //6 In case I am unable to speak tonight because of my schedule, I wanted to provide written comment on the proposed tax increase on our property taxes. I have already provided you a written email outlining the reasons for my opposition. However, I am once again attaching that email. Let me add a few facts for your consideration. Our economy is in dire straits. Nationally, unemployment is in double figures and in Florida it is 12. 2 %. One out of every ten financed homes is in some stage of foreclosure. There were 422, 061 bankruptcies between April and June, this past quarter. That was up 9% over the previous three month period and 11 % from a year earlier. In fact, bankruptcies exceeded 400,000 for the first time since the bankruptcy code was overhauled in 20051 which made it extremely more difficult to file bankruptcy. Fidelity, which has 20% of all 401 K' s in the United States reported 62, 000 hardship withdrawals from retirement accounts in the second quarter of this year. This was up by 45, 000 from last year. It also reported that the process of "double dipping" where people go back into their retirement accounts a second time reached a rate of 45% of those withdrawing money from their retirement accounts. Of course, all withdrawals are immediately taxable and a 10% penalty is also imposed, meaning that an average of about 45% of the withdrawal is paid to the IRS. You only have to flip on the television to see the news and understand that people are hurting all across the United States. However, the Deep Water Horizon spill in and along the Gulf Coast we live in, has been impacted by an even more devastating calamity than the general state of the U.S. economy. Due to the Deep Water Horizon spill, our business at the Holiday Inn for the month of July was off by 65 %. Being hit in the months of June, July and August, comes at the worst time possible. We may or may not be compensated by BP, but as of yet, we have only received one partial payment for the month of May. We have cut back, laid off and borrowed money just to keep our operations running. There are several alternatives to increasing taxes that cities like Crestview and county governments like our own Okaloosa County government have come up with to avoid increasing taxes. I would ask that you be as equally resourceful and keep our millage at or below the same level as last year. Since y, o q' IFW,&/ ince R- av er O fi If you want a permit for a park rental such as the Landing, you have to go to the Fred Hedricks center on Jet. Why on earth can' t this be done in City Hall where we collect water bills? We pay a corrections officer to manage inmates (non -violent) to pick up trash. However, it appears we have kept 7 employees on the payroll who were supposed to be removed to save costs. So this program has actually increased costs to the city! There is a lot of-unused space in city hall facilities while we pay rent in other locations. A decent facility plan should resolve this and save money. Do we charge enough rent to groups such as StageCrafters to use the Municipal Auditorium? Are tax payers supporting other non -profits that should be cut ?. You get the point - there is a lot that can be cut, and we in the FWB Tea Party are asking that you do just that. If raising taxes by 8 % percent is the only solution that this City Council sees, then we will work with a new City Council in March 2011. Thank you. City Manager' s Budget Message Seven percent of properties are tax -exempt and 64% have a taxable value of $ 100K or less. 1600 1400 1200 S 1000 Z 800 o 600 400 200 0$ 0- $ 25K- $ 50K- $ 75K- $ 100K- $ 125K- $ 150K- $ 175K- $ 200K- $ 300K- $ 400K- $ 500K- $ 1M+ 25K $ 50K $ 75K $ 100K $ 125K $ 150K $ 175K $ 200K $ 300K $ 400K $ 500K $ 1M taxable value Personnel Reductions The budget includes the elimination of 17 positions and reduced hours for another 11 positions. Staffing has been reduced strategically in areas with position vacancies or where reductions would have minimal impact on service levels. City Council provided clear direction to not reduce service levels in public safety police and fire). Personnel expense totals $ 17. 363M, and is down $ 1. 326M or 9. 3% in the General Fund and $ 1. 434M or 7. 6%citywide. The number of positions is budgeted to decrease 5.4% from 368 to 348. Full -time equivalent ( FTE) positions total 297.74 compared to 315. 16 last year, a decrease of 17. 42 FTE' s or 5. 5 %. All position eliminations were achieved via early retirement incentive program, attrition, or existing vacancies. a. Eliminations — museum education coordinator, utility services director, environmental specialist, computer technician, adult athletic coordinator, recreation specialist, two library assistants, custodian, five service workers, equipment mechanic, HVAC technician, refuse collector b. Reduced Hours ( reclassified to part -time) — two greenskeepers, three staff assistants, accountant, center manager, attendant, custodian, recreation specialist, service worker c. Position Downgrades — police captain to non -sworn support services supervisor, athletic and recreation supervisor to recreation coordinator d. New Positions ( part -time) —purchasing staff assistant, utilities inventory specialist Use of Reserves In May 2008, City Council adopted a policy of maintaining unreserved /undesignated General Fund reserves at a minimum of 30% of total annual expenditures for emergencies such as hurricanes. Mid- year FY 2009 -10, there was approximately $ 4M available in General t swell Funo Reserves Fund undesignated fund balance — above and beyond the 30% level — 4, 000, 000 Undesignated Available due to GASB changes, the sale of property to Waste Management, and ( 2, 735, 000) Payoff 1999 Golf Bond 371, 000) Early Retirement Incentive cost saving measures implemented during FY09 and FY10. Funds ( 416, 000) Early Retirement Vac /Sick have been allocated as shown to the right. ( 55, 100) Inmate Labor Program Last year City Council' s philosophy was to use excess reserves to ( 3, 577, 100) Approp in FY 2009 -10 balance the budget rather than cut services or increase taxes or fees 35, 000) Butler Drive Paving during the economic downturn. However, this year the millage rate is 27, 500) Howell Drive Paving being increased to ensure recurring revenues fund recurring expenses 15, 000) Annex Roof and excess reserves are being used to fund one -time outlays or capital. 10, 100) City Hall Lighting General Fund reserves in the amount of $ 418K are being used to fund 5, 000) Science Center Roof 26, 000) Chambers HVAC one -time outlays for capital, and $ 35K is budgeted from the Harvey 8, 000) IOM2 Auto Minutes Trust for library books and publications. 76, 000) Police Dept OSSI Upgrade 100, 000) Hedrick Renovations Citywide, FY 2010 -11 use of reserves totals $ 2. 464M and accounts for 65, 000) LDC Revisions 1. 2% of revenues. Two million in CRA reserves are budgeted for the 50, 000) Police Vehicles Soundside affordable housing development and $ 1 OK is budgeted in 417,600) Approp in FY 2010 -11 City of Fort Walton Beach, FL City Manager' s Budget Message the Law Enforcement Trust Fund for crime prevention and safe neighborhood activities as required for agencies who receive at lease $ 15K in forfeitures annually. Pension Contributions The City is required