Fort Walton Beach Council agenda — 08-16 & 17-2010 Special-FY 10/11 Budget — reading text

prepare and submit to City Council the annual budget identifying expenditures and revenues in sufficient amounts to cover all appropriations. 1. 2 The budget season began with City Council' s strategic planning session in January and is followed by individual meetings with City Council members in April, the Budget Policy Meeting in May, budget meetings in August, and public budget hearings in September. 2. P15QSSIUN 2. 1 The tentative budget schedule is noted below. Mid -Apr Individual meetings with City Council members Tue, May 18 City Council Budget Policy Meeting Tue, run 29 Set Tentative Milage Rate ( rending receipt ofDR -420) Fri, Jul 30 Proposed budget distributed to City Council Mon-Wed, Aug 16 -18 City Council budget meetings Wed, Sep 8 Tentative adoption of millage and budget 8t I Public Hearing) Wed, Sep 22 Final adoption of millage and budget 2 Public Hearing on budget 3. FINANC INFQRtATION 3. 1 N/A. 4. RECOMMENDATION 4. 1 This memorandum is provided for informational purposes only. No Council action is required. Submitted By: Brady Wu er, Finance Director Reviewed & Concur T. Mearns, City Manager uAmwodubm gB [ Q-[ i1d&mosVf C ie aoc  Citv of Fort Walt FY 2010 -11 Budget Meeting RoW h ' L3 Q As you all know, the City began this year's budget process with a $ 1. 7M shortfall. At the June 1 budget policy meeting, you provided us with several points that we used to prepare the draft budget that you have before you tonight. The proposed FY 2010 -11 budget totals $35.7M. ,  City Council Budget Direction Keep Public Safety Whole Keep As Many Services As Possible Keep As Many Employees As Possible Provide An Employee Compensation Incentive If Possible Keep Millage Rate Below 5 Mills These are the five goals City Council emphasized at that June 1 budget policy meeting. READ Goals from slide. These goals have been accomplished and the citywide budget is 1. 0% less than the prior year. There is no reduction in FTE' s in the police or fire departments and no reduction in service levels or response times. One retired police captain will be replaced with a non -swom supervisor to oversee communications and records.  As Many Services As Possible e No Reduction in Athletic or Recreation Programs Inmate Labor for Right -of -Way Maintenance Library Hours Reduced by 3 Hours/Week Where will be no reduction in athletic or recreation programs. All right -of -way employees displaced with the implementation of the inmate labor have been transferred to other vacancies within the City. Library hours will remain comparable to other cooperative libraries and will be reduced during non -peak times. The Council approved early retirement incentive program was extremely successful, with 19 employees participating. As each application was approved, the position was reviewed for necessity and for reclassification opportunities. 4 positions eliminated 5 positions were reduced to part-time 1 swom police position was converted to civilian 1 position was downgraded 8 positions were filled at lower pay grades Z' new part-time positions are proposed: Purchasing Staff Asst I, Utilities Inventory Specialist. The overall payroll savings is $ 1. 4M. Vacation hours are proposed in lieu of pay increases and will be tied to an employees evaluation score. Depending on the score, hours allotted would range from 0 to 32. Hours must be used within one year of anniversary date. Indirect cost associated with this program: regularly accrued vacation payout may be higher when employee terminates. Police bargaining unit members are ineligible due to pending contract negotiations. Unsatisfactory 0 hrs Needs Improvement 0 hrs Satisfactory 4 — 12 hrs Above Average 16 —24 hrs Superior 28 —32 hrs  Millage Rate Below S Mills General Fund Balanced at Rolled -Back Rate: 4.5383 Same Ad Valorem Revenue = Same Program & Service Levels Taxable assessed value certified at a 7. 3% decrease ($ 1. 213 billion). The general fund budget is currently balanced at the rolled back millage rate of 4.5383, which is decrease from the proposed millage rate of 5.0 mills approved by City Council on June 1. The rolled -back rate generates the same amount of ad valorem revenue citywide as the prior year (General Fund and CRA Fund combined).  Use of General Fund Reserves 1999 Golf Bond Payoff Retirement Payouts Inmate Labor Program Start-Up Costs Automated Minutes Software Police Dept OSSI Upgrade Police Vehicles LDC Revisions Hedrick Center Improvements City Hall Annex Roof Science Center Roof City Hall Energy Efficiency Lighting Council Chambers HVAC Butler Drive Paving Howell Drive Paving Excess reserves of $4M have been budgeted for one -time, non -recurring expenses. READ from slide Charlotte is going to run through some quick highlights of the proposed budget.  General Fund Hiahliahts No Support for Chamber, EDC, or Advocacy Group No Support for BMX Park School Crossing Guards, Police Training Transferred From LETF Computer Replacements Police Vehicle Replacements Seabreeze /Oakland Park Door Replacements 72" Riding Mower Replacement z Ton Truck Replacement Ferry Park Tennis Court Resurfacing Library Books & Publications Fund From Harvey Trust Utility Body Retrofit for Truck Annual Street Resurfacing Program 20K is budgeted for the Chamber in the CRA Fund.  rr • r , CRA Fund Highlights Five Funded Positions Focus on Marketing and Economic Development Street Resurfacing Heritage Park Sidewalk Installation Nuisance Abatement Economic Incentive Program Soundside Development Positions: planner, 2 officers, marketing coordinator, service worker (appv'd at 7R CRA mtg). Street Resurfacing (Kiwi PI, Park PI, Tupelo Ave, Third St, Church Ave, Methodist Ave, Second St, Windham Ave, Lowery PI, Shell Ave) Heritage Park (new archway and replace pilings lining the sidewalk) Sidewalk Installation ( Park Pl, Windham Ave, Second St, Tupelo Ave) Nuisance Abatement (lot mowing, building demolition for code enforcement cases) Economic Incentive Program (stimulate business retention & development through financial assistance) Soundside ($ 2M from fund balance for demolition and infrastructure)  Utilities Fund Highlights GIS Mapping Water Well Maintenance Water Tank Maintenance Lift Station Rehabilitation Sewer System Flow Monitoring Pump Station Maintenance CIP's budgeted per March Utility Rate Study. GIS Mapping ( equipment/software maintenance and training) Water Well Maintenance ( upgrade electrical controls at well 8, replace two service pumps at well 11) Water Tank Maintenance ( paint and maintain 5 elevated and 1 ground storage tanks) Lift Station Rehabilitation ( renovate LS1 wet well /controls /pumps, replace LS8 wet wells and pumps) Sewer System Flow Monitoring ( purchase 10 flow monitors) Pump Station Maintenance ( replace flow meters and purchase spare parts for PS 1 & 2)  Other Enterprise Fund Highlights Sanitation Fund $ 37K or 1. 1% decrease Knuckleboom & Rearloader replacements Golf Fund $ 331 K or 13. 1 % decrease 1. 6M savings from bond payoff Stormwater Fund $ 101 K or 15. 2% decrease Butler, Howell storm drain Develop Master Plan Knuckleboom is for yard waste. Rearloader is for household (e.g. furniture, mattresses). Tax -exempt portion of 1999 Golf Clubhouse bond carries an interest rate of 5. 75% and has an outstanding balance of 2. 44M. Taxable portion of carries an interest rate of 8. 00% and has an outstanding balance of $295K. Annual debt service payment is $ 246K. General Fund will loan the Golf Fund $ 2.735M to pay off the balance at an interest rate of 1. 5% for 20 years. This will generate $ 159K annually to the General Fund and save the Golf Fund $ 87K annually.  Special Revenue Fund Highlights Law Enf Trust Fund $ 4K or 23. 8% decrease Decrease in legal fees for forfeitures Law Enf Training Fund $ 18K or 60. 6% decrease School Crossing Guards, Training transferred to General Fund CDBG Fund $