Fort Walton Beach Council agenda — 04-08-06 Special — reading text

year-to- year are mainly net assets are monies not already earmarked for specific use and are available to continue service levels is fiscally sound as reported by our if revenue falls short or if unanticipated expenditures occur. The City for maintaining independent auditors. However, minimal revenue growth and escalating expenditures current service levels could erode reserve stability. General Fund - The General Fund currently meets the minimum reserve level policy with an unreservedl 15 fund balance of $ 5,415, 597 as of undesignated 12 September 30, 2005, which is 32% of FY 2005-06 9 budgeted expenditures. 6 The projected decrease in reserved fund balance 3 during FY 2005- 06 is due to the softball complex/fairgrounds purchase, disbursements 0 out retirement and 2001- 02 2002- 03 2003- 04 2004- 05 2005- 06 related to the early- program, II Designated II Undesignated II Reserved completion of hurricane repairs and other carry- over projects. reserve level policy with unrestricted net Utilities Fund - The Utilities Fund currently meets the minimum 140% of six months of FY 2005- 06 budgeted assets of $ 5, 699, 507 as of September 30, 2005, which is operating revenues. The utilities fund includes water Net Assets - Utilities Fund storage, treatment, and distribution; sanitary sewer 30 collection and treatment; and stormwater 25 These operations are financed management. 20 charge based on usage; therefore, this primarily by a 15 fund has greater rate setting flexibility so that desired 10 service delivery levels can be maintained. 5 Current year residential water and sewer rates reflect 0 a 60/0 adjustment as part of a multi- year rate plan 2001- 02 2002-03 2003- 04 2004-05 2005-06 III Restricted fJ Unrestricted implemented by Council in 2001, Another five- year II Capital, net of debt rate structure was adopted in 2005 ( effective October fund future capital improvement needs. A 2006) to sustain on- going costs of systems operations and water storage tanks, a new Utility Revenue Bond was issued in 2005 to finance improvements including water and sewer lines. and refurbishment of transmission line, wastewater treatment plant upgrades, Fund - Sanitation Fund currently meets the minimum reserve The level policy with Sanitation unrestricted net assets of $ 2, 639, 673 as of Net Assets - Sanitation Fund 5 30, 2005, which is 139% of six months of September operating revenues. The 4 FY 2005- 06 budgeted sanitation fund includes collection of curbside 3 residential garbage, recycling, and yard waste as well g 2 as commercial collection. Rates for residential and commercial garbage have not increased since 1995. 1 In fact, they were reduced by $ 1. 00 per month for 0 residential customers in May 2001 resulting from 2001- 02 2002- 03 2003- 04 2004- 05 2005- 06 II Unrestricted decreased tipping fees at the BFI transfer station. II Capital, net of debt II Restricted Recycling rates remain unchanged since inception 7 of 28 FY 2006-07 Budget Policy Workshop sent to the landfill has increased and fuel and over ten years ago. Over the last several years, tonnage waste, recyclables, and oil costs have increased - resulting in increased costs to collect garbage, yard white goods. Net assets have been decreasing as retained earnings are used to bridge the gap between Council, staff is preparing a sanitation and recycling rising expenses and flat revenues. As directed by net assets. to ensure current service levels are maintained without further straining rate study reserve level policy with unrestricted Golf Fund - The Golf Fund does not currently meet the minimum net assets of <$ 686,427> as of September 30, 2005, which is not equal to 6 months of FY 2005- 06 budgeted operating revenues. The golf fund includes operation of two golf courses and a driving range. In March multi- year rate 2004 a plan was Net Assets - Golf Fund increase fees to levels 2 implemented to gradually more commensurate with surrounding golf courses and to return operations to self-sufficiency. In order 1 II> $ c: to minimize rate increases and still achieve financial stability, the expenditure levels projected in the multi- 0 year rate plan reflected delayed equipment replacements and minimal capital improvements. 1 However, equipment replacements are needed to 2001- 02 2002- 03 2003-04 2004- 05 2005-06 maintain course conditions and bulkhead, seawall, II Capital, net of debt II Restricted Ell Unrestricted and bridge repairs have been necessitated by hurricanes and heavy rains. in fiscal year 2005- 06 if additional fiscal The potential exists for the fund to have a total net asset deficit remedies are not implemented. Staff and the Golf Club Advisory Committee have worked together to develop a new five- year rate schedule that balances maintaining current play levels with providing funding Fund. for anticipated equipment and capital needs and rebuilding the net assets of the Golf Enterprise June 1, 2006. To further assist the The new rates, adopted by City Council on April 11 , will go into effect of $ 100, 000 and Sanitation Fund of Golf Fund, City Council forgave advances from the General Fund in the short term to absorb expenses 172, 810, as well as approved that the General Fund continue incurred the Golf Fund as identified in the City' s cost allocation plan. by EXPENSES in Personal Services - As a full- service government, employees are the City' s most important asset providing police and fire protection; cultural and recreational facilities and programs; planning and zoning sidewalks, and cemeteries; utilities services; infrastructure maintenance and construction such as streets, and garbage and recycling collection. such as water, wastewater, and stormwater management; Social tax, Medicare tax, health insurance, retirement, and Personal services ( including wages, Security and 73.6% of General Fund expenses. worker' s compensation) comprise 53A% of total expenses of services improving over the last five years, the number of full- time Despite the number and quality City decrease of 0.4% or 1.4 FTE)_ equivalent ( FTE) employees has remained constant ( slight a Continuing its commitment to provide exemplary Personal Services service with respect to public safety, the City signed 20 a three- year collective bargaining agreement with 16 the firefighters union in February 2004 providing a iIE $ 12 19.6% adjustment over three years. Furthermore, g 8 six new EMT/ Paramedics were hired April 1 as the final phase of ALS is implemented. Police officers 4 the experienced a 7. 55% increase this year and 0 take- home vehicle policy was expanded to include 2003 2004 2005