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

a Vote. Mayor: Upon adoption of the Resolution, the Mayor shall announce: The tentative millage rate for the City of Fort Walton Beach is 4. 5383 mills for the fiscal year beginning October 1, 2012 and ending September 30, 2013, which is 3. 57% below the rolled -back rate of 4. 7063 mills. The proposed millage is subject to a second and final public hearing that will be held here at the City of Fort Walton Beach Council Chambers on Wednesday, September 19, 2011 at 5: 30pm.  City Council of Fort Walton Beach FINANCE MEMORANDUM To: Michael D. Beedie, Acting City Manager From: Charlotte Dunworth, Budget and Grants Manager Date: September 5, 2012 Subject: 2012 -19 - Adoption of Tentative Budget FY 2012 -13 1. BACKGROUND: 1. 1 In compliance with City Charter, the City Manager is to prepare and submit to City Council the annual budget identifying expenditures and revenues in sufficient amounts to cover all appropriations. The City Manager' s proposed FY 2012 -13 budget was presented to Council at the August 13th budget meeting. 2. DISCUSSION: 2. 1 The FY 2012 -13 budget has been developed based on the following premises: 2. 1. 1 Police Department Restructuring a. The Police Department achieved its reduction goal of $1 M, but a portion of the decrease was offset by an increase in pension contributions, so the overall Police Department budget indicates a net $ 869K decrease. b. Eight sworn and three non -sworn positions have been eliminated, primarily through attrition and voluntary separations. 2. 1. 2 Maintain Millage Rate of 4. 5383 a. The taxable assessed value was certified at $ 1. 114 billion, a decrease of 37. 8M or 3. 3 %. b. The millage rate of 4. 5383 generates $ 149, 078less property tax revenue than the prior year due to decreases in property values. The decline in revenue is allocated as follows: $ 105K General Fund decrease, $ 44K CRA Fund decrease. 2. 1. 3 Provide Employee Compensation a. All employees will receive a $ 500 lump -sum payment on October 1. Cost including FICA is $ 156K citywide, $ 99K in General Fund. b. Additionally, each employee is eligible for up to $ 500 or 32 hours leave based on their annual evaluation score. While the full amount of $ 156K including FICA) is budgeted for the performance incentive, the full amount will likely not be incurred since all employees do not receive superior evaluation scores and some employees will elect leave time ( which must be used within 12 months and will not be paid upon separation). Doc ID: 1937 A Page I  RESOLUTION ( ID # 1937) c. Both compensation initiatives are pro -rated for part-time employees based on the FTE. 2. 2 The FY 2012 -13 proposed budget of $33, 497, 609 is $ 4, 436, 135, or 11. 7 %, less than the FY 2011 - 12 adopted budget due to Police Department reductions this year and last year' s capital improvement projects in the Utilities Fund. 2. 3 Full -time equivalent (FTE) positions total 289. 95 compared to 298. 40 last year. 2. 4 The General Fund, which includes services such as police and fire, recreation programs and parks, planning and code enforcement, streets and right -of w - ay, and general government administration, totals $ 16, 801, 950 and is $ 597K, or 3. 4 %, less than the prior year. 2. 5 The following changes to the budget have been made since the August 13`h budget meeting: 2. 5. 1 The Stormwater Fund transfer to the General Fund has been increased to $ 73K to fully account for cost allocation services received. The Stormwater Fund is now self -sustaining. 2. 5. 2 A vacant Recreation Center Manager ( 1. 0 FTE) was reclassified to a Recreation Supervisor ( 0. 75 FTE) at a net savings of $30, 728. 2. 5. 3 A Sewer Construction Service Worker I ( 1. 0 FTE) position was added at a net cost of $16, 300. 2. 6 A preliminary list of encumbrances ( i. e. open purchase orders) and projects identified for carryover will be provided at the meeting. These amounts will be finalized at the h. second public hearing on September 19` Carryovers include open purchase orders, grants, and projects that are anticipated to be incomplete as of September 30, 2012 and are proposed to be continued and made part of the FY 2012 -13 appropriations. These expenses were authorized, budgeted, and appropriated by Council in the prior fiscal year and are carried forward and funded with the corresponding revenue appropriations of the prior year. 2. 7 The salaries for Charter Officers are traditionally set during the annual budget process in accordance with Section 53 of the Charter. The Acting City Manager' s salary was set by City Council on May 22, 2012. The City Clerk' s salary was set in Resolution 08 -28 approved by City Council on August 18, 2008. Similar to other employees, the Acting City Manager and City Clerk will receive $ 500 on October 1, 2012 and are eligible for up to $ 500 or 32 leave hours based on their annual evaluations. 3. RECOMMENDATION: 3. 1 Staff respectfully requests that City Council adopt Resolution 2012 -19 to adopt the tentative budget for the fiscal year October 1, 2012 through September 30, 2013, with the budget document and list of encumbrance and project carryovers as attachments. As the Department of Revenue requires specific language and procedures, a script for the Mayor to follow is attached.  RESOLUTION ( ID # 1937) ATTACHMENTS: 9 -5 Tentative Budget Script ( DOCX) Budget 9 -5 - 12 - paginated ( PDF) SIGNATURE BLOCK: Charlotte Dunworth Con ipleted 08/ 31/ 2012 9: 30 AM Finance Completed 08/ 31/ 2012 9: 38 AM City Attorney Completed 08/ 31/ 2012 9: 48 AM Carole Jones Completed 08/ 31/ 2012 9: 53 AM City Manager Completed 08/ 31/ 2012 11: 06 AM City Council Pending  RESOLUTION ( ID # 1937) RESOLUTION 2012 -19 A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, ADOPTING THE TENTATIVE BUDGET FOR CERTAIN EXPENDITURES, EXPENSES, CAPITAL IMPROVEMENTS AND CERTAIN INDEBTEDNESS FOR THE CITY OF FORT WALTON BEACH, FLORIDA, FOR THE YEAR BEGINNING OCTOBER 1, 2012 AND ENDING SEPTEMBER 30, 2013; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, THAT: 1. Purpose Prior to the beginning of a new fiscal year, the City is required to pass and adopt a budget for the operation of the City government. The City held a public budget meeting on August 13, 2012 to discuss the FY 2012 -13 budget. The City held a public budget hearing on September 5, 2012 as required by Section 200. 065 of the Florida Statutes. 2. Tentative Tax Rate The City Council set the tentative tax rate at 4. 5383 mills for property assessed as of January 1, 2012. 3. Adoption of Budget The document entitled " City of Fort Walton Beach FY 2012 -13 Adopted Budget ", dated September 5, 2012, comprises the total amount of $ 33, 497, 609 for all funds reported. The budget is being presented as a balanced budget whereby there are sufficient revenues to offset all estimated expenditures or expenses. All budget appropriations are based upon the total expenditure and/ or expenses even though the budget has been prepared based on line items and summarized to a categorical level. 4. Budget Amendments a. The City Council may make any amendments to the adopted budget, by resolution, as it may deem necessary and proper. b. Budget amendments requesting additional expenditures or expenses must also identify the corresponding funding source. 5. Budget Transfers Budget transfers shall be accomplished pursuant to Administrative Policy FIN -13 as provided by Resolution 2011 - 19 adopted by the City Council on August 16, 2011. 6. Debt Service Debt service for the General Fund will be paid from operating revenues and/ or transfers from the Debt Service Fund. Debt service for the Utilities and Golf Enterprise Funds will be paid from operating revenues from these Enterprise Funds.  RESOLUTION ( ID # 1937) 7. Carryovers a. Projects that were not completed during the prior fiscal year are carried forward and are funded with the corresponding carryover appropriations of the prior year. These are commitments anticipated to be incomplete as of September 30, 2012 and will be continued and made a part of the FY 2012 -13 budget. The document entitled " City of Fort Walton Beach FY 2012 -13 Grant & CIP Project Carryovers ", dated September 5, 2012, comprises the total amount of $x,xxx,xxx for all funds reported. b. Encumbrances ( open purchase orders) that were not completed during the prior fiscal year are carried forward and are funded with the corresponding carryover appropriations of the prior year. These are commitments anticipated to be incomplete as of September 30, 2012 and will be continued and made a part of the FY 2012 -13 budget. The document entitled " City of Fort Walton Beach FY 2012 -13 Encumbrance Carryovers ", dated September 5, 2012, comprises the total amount of $x,xxx,xxx for all funds reported. 8. Effective Date This resolution shall become effective on and after October 1, 2012. Adopted Mike Anderson, Mayor Attest: Approved for form and legal sufficiency: Helen Spencer, City Clerk Hayward Dykes, Jr., City Attorney  TENTATIVE BUDGET Script for Public Hearing on Budget Mayor: State the following: The tentative budget for the City of Fort Walton Beach for FY 2012 -13 is 33, 497, 609, which is $ 4,436, 135 or 11. 7% less than the adopted FY 2011 - 12 budget. Mayor: Open the Public Hearing and ask for comments on the tentative