Fort Walton Beach Council agenda — 06-22-2010 Regular — reading text

cn G7 UOUO rr 1010 CouncilCouncil Meeting,Meeting, JuneJune 22,22, 20102010  U cc c sc z ea A Council Meeting, June 22, 2010  a Aft 1 i  Page 1 of 1 Carole Jones From: Lynn Cherry [ Icherry@cdc- s.com] Sent: Monday, June 14, 2010 3: 16 PM To: Carole Jones Cc: Alaghemand, John Subject: Re: Presentation to FWB Carole, Yes - we are prepared to send you the PowerPoint presentation tomorrow Thank you for your assistance Seize the day, Lynn Cherry DRIVIP Team Original Message---- - From: Carole Jones [ mailto: cjones@fwb.org] Sent: Monday, June 14, 2010 03: 07 PM To: ' Lynn Cherry' Subject: Presentation to FWB Lynn ? I have just read your a -m again and notice that your presentation will be approved on the 17th. Our agenda goes out on the 17th. Is it possible for you to send in draft form tomorrow (Tuesday). We can mark it as draft ? or any combination of words you are comfortable with. Thank you, look forward to hearing from you. Carole Jones Executive Assistant, City Manager's Office City of Fort Walton Beach 850)833 -9504 begin—of the_ skype_ highlighting ( 850) 833 -9504 end—Of the_skype_highlighting begin—of the_ skype_ highlighting ( 850) 833 -9504 end—of the_skype_ highlighting; cjones@fwb.org Please Note: Florida has a very broad public records law. Most written communications to or from City of Fort Walto Beach officials are public records available to the public and media upon request. Your e- mail address and communications may therefore be subject to public disclosure. Think Green - Please consider the environment before printing this e- mail. 6/ 15/ 2010 13 Council Meeting, June 22, 2010  Page 1 of 1 Carole Jones From: Lynn Cherry [ Icherry @cdc- s. com] Sent: Monday, June 07, 2010 9:32 PM To: Carole Jones Cc: Alaghemand, John Subject: Ft. Walton Beach Presentation Request Carole, The Okaloosa Walton TPO and General Planning Consultants, DRMP, have been actively engaged in developing a corridor management plan ( CMP) for Eglin Parkway. The CMP is complete with TPO final review and approval scheduled to occur on June 17, 2010. 1 am writing to request the City of Ft. Walton Beach allow DRMP to present the final Eglin Parkway CMP to the City's Commissioners on Tuesday, June 22, 2010. The estimated time for the PowerPoint presentation is 15 minutes. Would you please work with me to secure this presentation as an agenda item for the City's June 22 City Commission meeting? If this date will not work, would you please suggest an alternative? Thank you in advance for your assistance Seize the day, Lynn Cherry DRMP Team 850 215 4651 14 Council Meeting, June 22, 2010  CITY COUNCIL MEETING June 22, 2010 Approval of Agenda No Backup) Agenda Item Number: 7  CITY COUNCIL MEETING June 22, 2010 Consent Agenda Approval of Minutes: Special Council Meeting - June 1, 2010 Regular Council Meeting - June 8, 2010 Agenda Item Number: 8. 1  MINUTES OF THE SPECIAL COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA FY 2010 -11 BUDGET POLICIES JUNE 19 2010 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, June 1, 2010 at 5: 00 p.m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes; joyce gillie gossom; Dennis Reeves; Mike Minich, Bill Bobby Nabors; Patterson; and Dick Rynearson Also Present: Robert Mearns, City Manager; Helen Spencer, City Clerk; Toni Craig, City Attorney; and Department Directors. PURPOSE Discussion of Budget Policy Issues - City Council will provide policy direction to staff on the ad valorem millage rate, levels of service and expenditure preferences. CALL TO ORDER The Mayor called the meeting to order and welcomed everyone. He requested anyone who wished to address Council to approach the podium after being recognized, then state his or her name and address for the record. PLEDGE OF ALLEGIANCE The Mayor led in the Pledge of Allegiance. FY 2010 -11 BUDGET POLICY ISSUES The Mayor stated tonight City Council begins the process of preparing a balanced budget for 2010 -2011 Fiscal Year by holding the first in a series of budget workshops and special meetings. He said it is clear they are entering another challenging budget period as the City government contends with the on -going effects of the global recession. He said early estimates indicate they must overcome a gap of approximately $ 1. 7M due to declining revenues and increase in costs. He said the goal of this meeting is to clearly and publicly outline the challenges before them and then identify the strategy for overcoming the challenge. He said in the months ahead the City will prioritize what functions the citizens depend on most and then identify which programs and services they can potentially reduce or eliminate. He said as part of their commitment to keeping residents informed they can expect updates as they move forward toward a final FY 2010 -11 budget in September. He said he looked forward to working with them as they meet the challenges of the tough times and continue their collective efforts to ensure long -term prosperity for the community. The City Manager remarked staff prepared the budget policy options using a fiscally sound strategy that the City government must accept, that there has been a shift in the economy and that the funding of City government and expenditures must adjust accordingly. He remarked a permanent solution is necessary otherwise the City will be in a worse position next year and the year after that, etc. He said short -term fixes like furloughs and using reserves to fund recurring expenses will not work; those choices delay the inevitable and shift the problem to next year and the year after that. He said the City can no longer fulfill the expectations that it can continue to provide levels of service and staffing at 2010 costs with revenues at 2002 level and then be all things to all people. He said after years of an expanded tax base that enabled the City to grow its work force to obtain levels of service designed to meet every expectation, the tax base has now turned in the opposite direction and, therefore, so must the workforce and levels of service. He said the City must design its programs and levels of service with affordability and effectiveness in mind. Council Meeting, June 22, 2010  Special Council meeting 6 -1 - 10 FY 2010 -11 BUDGET POLICY ISSUES cont. The Finance Director mentioned the objectives of this meeting are to assist City Council in understanding the City' s available revenue sources and allow revisions to desired service levels and funding mechanisms in order to ascertain City Council' s position on policy issues; to establish service levels and funding mechanisms in accordance with City Council' s priorities; and to ascertain City Council' s position on certain policy issues critical to development of the budget given the current fiscal constraints. She said the goal is to prepare a balanced budget that matches ongoing expenditures with ongoing revenues, while providing for maintenance of the City' s current infrastructure. She went over the current economic indicators, the current general fund revenue, the trend in the general fund ad valorem revenues since FY 2003 -04, and the breakdown in expenses general fund allocation, the increase in general fund expenses compared to FY 2003- 04 and the decrease in general fund staffing compared to FY 2003 -04. She stated the FY 2010 -11 budget goals are to maintain core service levels to the greatest extent possible, to use excess fund balance for non- recurring expenses, and to use a combination of operating reductions and/ or millage rate increase to balance the budget. She noted staff identified possible reductions based upon the current millage rate of 4. 1986 and staff requests Council vote on each proposal after it is presented. The Mayor stated they will take each topic one at a time and he will provide anyone who signed up an opportunity to speak before there is discussion and a motion. Reserves —Pay off Golf ]Debt Policy Decision: Should the City appropriate $ 2. 735M to pay off 1999 Golf Clubhouse Bond, structured as a loan. The presentation included information that in May 2008 Council endorsed maintaining a minimum unreserved/ undesignated fund balance of 30% of total annual expenditures; that due to changes promulgated by the Governmental Accounting Standards Board ( GASB) the City will no longer be able to maintain unreserved /designated reserves and the $ 13M in designated reserves will become available for appropriation if desired; that there is approximately $ 3. 6M available in General Fund undesignated fund balance, above and beyond the 30% minimum due to GASB changes, the sale of property to Waste Management, and cost saving measures implemented during FY 09; that the City' s auditors have commented in the last five years' audits about the Golf Fund' s cash flow deficits and deficit unrestricted net assets; that the tax -exempt portion of the bond has a 5. 75% interest rate and a $ 2. 44M balance, the taxable portion has 8% interest rate and a 295K balance; that the City' s idle cash is currently earning 1. 23 %, the General Fund could loan the Golf Fund $ 2. 735M to pay off the balance at an interest rate of 1. 5% for 20 years that would general $ 159K annually to the General Fund and save the Golf Fund $ 87K annually. It was noted the millage rate increase required to sustain the current status would require 0. 1643 mills to fund the $ 178K