Fort Walton Beach Council agenda — 09-05-12 special budget-first ph — reading text

a measurable performance goals and objectives culture that seeks to better our organization. for managers to evaluate the effectiveness of their organization. Communication Device — The budget is presented in a format that is easily understood through the use of charts and graphs, icons, statistical information, and narrative descriptions. The budget is a financial operational plan estimating expenditures for a given period and the proposed means to finance those objectives. The State of Florida requires municipalities to prepare a balanced budget, whereby sufficient resources must be identified to fund programs and services. The fiscal year for all Florida cities begins October 1 and ends September 30. FUNDSTRUCTURE An important concept in governmental accounting and budgeting is the division of the budget into categories called funds. Funds are separate fiscal accounting entities. Budgeting and accounting for revenues and expenditures in this manner is called fund accounting. Fund accounting allows a government to budget and account for revenues and expenditures restricted by law or policy. Governments may use any number of individual funds in their financial reporting; however, generally accepted accounting principles ( GAAP) require all these individual funds to be aggregated into specified fund types. Any fund constituting 10% or more of the appropriated budget is considered a " major" fund. There are basically three groups of funds in governmental accounting; governmental funds, proprietary funds, and fiduciary funds. City of Fort Walton Beach, FL 14 Budget Overview Governmental Funds — account for activities supported by taxes, grants, and similar resources and include most governmental functions; fund types include general, special revenue, capital projects, debt service, and permanent. Proprietary Funds — account for activities similar to those often found in the private sector; fund types include enterprise and internal service funds. Fiduciary Funds — account for assets not available to support the government' s programs that are held in a trustee or agent capacity; fund types include private -purpose trust, pension and other employee benefit trust, investment trust, and agency funds. General Fund — Accounts for all financial resources not accounted for in other funds ( e. g. human resources, finance, police, fire, recreation, code enforcement, streets). Special Revenue Funds —Account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Law Enforcement Trust Fund —grants, forfeitures Law Enforcement Training Fund —traffic fines Florida Building Code Fund —building permit & inspection fees Community Development Block Grant —entitlement grant Community Redevelopment Agency —tax increment financing (i. e. ad valorem taxes) Beal Memorial Cemetery Perpetual Fund —lot, crypt, and niche sales Debt Service Fund — Accounts for the accumulation of resources for, and the payment of, general long -term debt principal and interest. Capital Projects Fund — Accounts for financial resources to be used for the acquisition or construction of major capital facilities, thereby more accurately accounting for a variety of one- time facility improvements and construction projects. Enterprise Funds —Account for operations that are financed and operated in a manner similar to a private business — where the intent of the governing body is that the cost ( expenses, including depreciation) of providing the services to the public on a continuing basis be financed and recovered primarily through user charges. Related capital projects are accounted for in the individual enterprise funds. City of Fon Walton Beach Budgetary Funds Utilities Fund —water, sewer Sanitation Fund —garbage, recycling, yard waste Govemmenta 7Enter. Golf Fund —golf courses Funds Stormwater —stormwater Other General Fund Special Revenue Governmental pnse ds Motor Fund) Funds Funds Law Enforcement Utilities Fond Debt Service Fund Major Fund) Trust Fund ( Law Enforcement I LJ Capital Projects Sanitation Fund Training Fond Fwd Florida Building Code Fond 1 14 Golf Fund Conunumly Development Stonnwater Fund Block Grant Fun Redevelopment Agency Food Beal Memorial Cemetery Fwd City of Foil Wahon Beach, FL 15 Budget Overview The chart below illustrates the relationship between the City' s fund financial structure ( e. g. accounting) and the City' s departments ( e. g. operations). Accountin Law Law Storm Department/ Utilities Sanitation Golf General Enf. Enf. FBC CDBG CRA Water Division Trust Train City Council MM City Manager TT Admin Services NN V_ V_ General Risk Management 0N0N Gov' t Information Tech LLLL City Clerk 4. 6M Finance 4,4,OO C1C1 Purchasing OO Fleet mm Facilities dd Public Safety Police rr 8. 8M Fire RR CC Recreation