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

also important to guard against unanticipated events that would adversely affect the financial condition of the City and jeopardize the continuation of necessary public services. There are five types of fund balance: Restricted 1. Nonspendable ( inherently nonspendable) — resources that cannot be spent because of form ( e. g. inventory, long -term loans receivable) or because they must be maintained intact (e. g. endowment principal). 2. Restricted ( externally enforceable limitations) — resources with limitations imposed by creditors, grantors, laws, regulations, or enabling legislation. Harvey Trust — There is appropriated $ 9, 500 from the Harvey Trust in the current year budget to fund painting of the building interior and exterior rails as well as new shelving. Unrestricted 3. Committed (self imposed - limitations) —resources whose use is constrained by limitations that the governing body has imposed and remains binding until removed in the same manner. Disaster/Emergency Reserve — City Council established a committed fund balance of rn 30% of annual budgeted expenditures per Resolution 2011 - 13 adopted August 16, 2011. The City currently exceeds this policy. 2 Actual Estimate FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Unrestricted Fund Balance % 40. 3% 45. 8% 45. 5% 42. 1% 43. 2% Unrestricted Fund Balance $ $ 7, 665, 707 $ 8, 994, 679 $ 7, 946, 840 $ 7,325,448 $ 7, 270,300 4. Assigned ( limitation resulting from intended use) — resources whose use is constrained by a body or official designated by the governing body. Subsequent Year' s Budget —City Council authorizes City management to set forth in the annual budget ( and any amendments thereto) fund balance for specific purposes per Resolution 2011 -13 adopted August 16, 2011. There is appropriated $ 55, 148 in the current year budget for the performance incentive program. 5. Unassigned ( residual net assets not otherwise classified) —total fund balance in excess of the nonspendable, restricted, committed, and assigned fund balances ( e. g. surplus). Changes in Fund Balance Due to the minimal use of reserves in the FY 2012 -13 budget, only one governmental fund is anticipated to experience a change in fund balance greater than 10 %. The Law Enforcement City of Pon Walton Beach, FL 22 Budget Overview Training Fund is budgeted to incur a $ 3K or 40. 9% increase because expenses are conservative to guard against declining traffic fine revenues. Actual Estimate Variance FYI to FYI FY 2011 FY 2012 FY 2013 General Fund 11, 214, 334 10,429, 754 10, 235,313 194,441 1. 9% Law Enf. Trust Fund 261, 216 250,941 236,241 14, 700 5.9% 7, 404 7, 404 10,429 3, 025 40. 9% Law Enf. Training Fund FBC Fund 0 0 0 0 0.0% CDBG Fund 306 0 0 0 0.0% CRA Fund 4, 212, 984 1, 307,225 1, 307,225 0 0.0% Debt Service Fund 113, 816 113, 816 113, 816 0 0. 0% Beal Memorial Fund 1, 929, 448 1, 948, 048 1, 982, 648 34,600 1. 8% WorkingWorking CapitalCapital ( ( proprietaryproprietary funds)funds) WorkingWorking capitalcapital refersrefers toto thethe differencedifference between between currentcurrent assetsassets andand currentcurrent liabilitiesliabilities reportedreported inin aa proprietaryproprietary fund.fund. ThisThis measuremeasure indicatesindicates relativerelative liquidity.liquidity. CreditCredit ratingrating agenciesagencies considerconsider thethe availabilityavailability ofof workingworking capitalcapital inin theirtheir evaluationsevaluations ofof aa locallocal government'government' ss creditworthiness.creditworthiness. WorkingWorking capitalcapital isis alsoalso importantimportant inin mitigatingmitigating unanticipatedunanticipated eventsevents andand ensuringensuring stablestable servicesservices andand fees.fees. TheThe City'City' ss targettarget levellevel ofof workingworking capitalcapital isis 9090 daysdays ofof annualannual operatingoperating expenses,expenses, andand currently currently exceedsexceeds thisthis levellevel forfor allall fundsfunds exceptexcept forfor Golf.Golf. ItIt isis notnot feasiblefeasible toto projectproject thisthis measure.measure. Actual FYFY 20092009 FY 2010 FY 2011 Utilities Fund 331 220 163 Sanitation Fund 195 259 228 Golf Fund 65 61 14 Stormwater Fund 148 344 425 NetNet AssetsAssets ( ( proprietaryproprietary funds)funds) NetNet assetsassets refersrefers toto thethe differencedifference betweenbetween assetsassets andand liabilitiesliabilities reportedreported inin aa proprietary proprietary fund,fund, andand maymay bebe consideredconsidered aa measuremeasure ofof netnet worth.worth. ThereThere areare twotwo typestypes ofof netnet assets:assets: 1.1. RestrictedRestricted — — fundsfunds committedcommitted forfor identifiedidentified purposespurposes oror legallylegally requiredrequired toto bebe segregated;segregated; notnot availableavailable toto liquidateliquidate liabilitiesliabilities ofof thethe currentcurrent periodperiod ( ( e.e. g.g. debtdebt service,service, impactimpact fees).fees). 2.2. UnrestrictedUnrestricted — — fundsfunds notnot required required toto bebe onon handhand andand havehave notnot beenbeen identifiedidentified forfor aa particularparticular purpose;purpose; available available forfor capitalcapital projectsprojects oror toto balancebalance thethe budget;budget; thethe measure measure ofof financialfinancial healthhealth forfor anan enterpriseenterprise fund.fund. CityCity CouncilCouncil established established thatthat unrestricted unrestricted netnet assetsassets willwill bebe maintainedmaintained atat 33%33% ofof operating,operating, debtdebt service,service, andand transferstransfers outout perper ResolutionResolution 20112011 - - 1313 adoptedadopted AugustAugust 16,16, 2011.2011. TheThe CityCity currentlycurrently meetsmeets thisthis policypolicy forfor allall fundsfunds except except GolfGolf ( ( toto whichwhich thethe policypolicy isis notnot applicableapplicable atat thisthis time).time). CityCity ofof FortFort WaltonWalton Beach,Beach, FLFL 2323 Budget Overview Actual Estimate FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Utilities Fund 84. 3% 56. 9% 43. 2% 57. 4% 54.0% Sanitation Fund 52.4% 60. 3% 61. 1% 70. 9% 72. 8% Golf Fund 12. 5% 12. 3% 4. 2% 11. 9% - 21. 1% Stormwater Fund 39. 6% 91. 3% 113. 7 % 89. 5% 68. 8% InvestmentsInvestments InvestmentInvestment PhilosophyPhilosophy — — FundsFunds shallshall bebe investedinvested inin aa mannermanner thatthat willwill ensureensure thethe safetysafety ofof principalprincipal whilewhile meetingmeeting dailydaily cashcash flowflow needs.needs. Optimization Optimization ofof investmentinvestment incomeincome shallshall bebe secondarysecondary toto thethe requirementsrequirements ofof safetysafety andand liquidity.liquidity. InvestmentInvestment PolicyPolicy Statement Statement — — TheThe following following policypolicy statementsstatements governgovern thethe City'City' ss investmentinvestment ofof fundsfunds inin excessexcess ofof thosethose requiredrequired toto meetmeet currentcurrent expenses,expenses,