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

11 K or 7. 4% increase Federal appropriation increased Debt Service Fund $ 5K or 1. 1% increase Minor variance in debt payment amounts Beal Memorial Fund $ 20K or 32. 3% decrease No transfer to General Fund for cemetery improvement projects Law Enf Training Fund fund balance has been depleted, so expenses must be transferred to General Fund.  City Council Action Requested Approve Proposed FY 2010 -11 Budget Approve Hedrick Center Improvements Approve Annual Purchasing Waivers Approve Annual Cost Allocation Waivers Any increase in General Fund spending will require a reduction in another area or increase in the millage rate. Water intrusion correction & gym cooling system are estimated at $ 100K in FY10/ 11. Combined with additional improvements estimated at $250K, the life of the building would be extended about 15 years and permit operations at the center to continue status quo. Purchasing waivers are requested for computers, library books, fuel, street paving, and sidewalk construction. Cost Allocation Plan waivers are requested for the Golf and Stormwater funds.  Economic Development Council of Okalooso County, Florida Summary of EDC Activities and Flow of Public Dollars Presented to: City of Fort Walton Beach City Council August 16, 2010 The following summaries of EDC activities are being provided to the City of Fort Walton Beach to illustrate how the EDC has used the City's funding to support FWB companies and our military partners. The EDC staff has highlighted those on -going programs that impact new growth and sustainability that impact current funding and new requested dollars to allow the EDC to continue to provide these services to the city and its business community. This report includes estimated staff time devoted to each of these programs The objective of this report is to illustrate the use of public funding dollars. The EDC has calculated the man hours it attributes to each of these programs on an annual basis for the City of Fort Walton Beach. The EDC respectfully requests $ 14,000 in public funding from the City of Fort Walton Beach to continue to cant' out these activities that benefit the city and its local business members. Your continued support is sincerely appreciated. Economic Development Council serving Okaloosa County P.O. Box 4097, Fort Walton Beach, FL 32549 www.florida- edc.org 850- 362 -6467  City of Fort Walton Beach —August 2010 City of Fort Walton Beach A Breakdown of EDC Activities and the Flow of Public Dollars The main mission of the Economic Development Council is to retain and create quality jobs for all of Okaloosa County. The EDC staff and its Board have been hard at work providing local companies and new targeted industries with the support they need to grow jobs in our community. In preparation for their year -end report, EDC staff have interviewed many of the faros that they have assisted throughout the year to determine if their hard work has paid off. Their assistance has paid off for business retention. The results show that most of the 200+ firms interviewed have plans for new job growth and /or physical expansion. Many of these companies which are located throughout the county are already working on their expansion plans and creating new high wage jobs. The following summarizes how the EDC has used the City's funding to generate new and retained jobs for Fort Walton Beach. The EDC staff have highlighted on -going programs that impact new growth and sustainability utilizing current funding allowing the EDC to continue to provide these services to the city and its business community. The objective of this report is to illustrate the use of public sector funding.. The EDC has calculated the man hours it attributes to each of these programs for the City of Fort Walton Beach on an annual basis and has multiplied the total hours times the average wage for an employee working in this position in the Northwest Florida area. The wage data was pulled from the State's Agency for Workforce Innovation and the Federal Bureau of Labor Statistics. Based on a mean wage for a Marketing Representative/Analyst in Northwest Florida, this calculates to $ 55,722 dollars a year in man -hour wages. City of Fort Walton Beach Projects The EDC has designed a flow chart to illustrate the development stages of a project from start to finish, attached. The average economic development project requires an average of 40 staff hours. Based on the total projects worked this past year, the EDC spent 1480 hours working projects and providing assistance to existing and new companies. The EDC currently has 16 active projects in various stages of development in the Fort Walton Beach area Since the average project requires approximately 40 hours of staff work time cradle to grave, those 16 active FWB projects have received over 640 hours dedicated staff hours. Based on the average wage for a marketing representative, the EDC contributed over $ 16,057 in time investment. This dollar amount does not include the impact created by the addition of these new jobs nor the investment made by the company. Job Creation In FY 2009 -2010 five of those 16 projects have been established creating a total of 232 new full -time jobs.. The balance of these projects could generate over 1, 700 new jobs over the next 3 to 4 years. The average wage of these companies calculates to more then 127% of the Average Annual Wage in the County or 42,934.89. Okaloosa County's average wage is $ 16.25 an hour or $33,807 annually. Sample Project Breakdown - DRS The following represents the support the EDC staff provided DRS Training and Control Systems LLC during their expansion in the Fort Walton Beach Commerce Park creating 150 new jobs. This is an on -going project as there continues to be a need to coordinate various aspects of the State's business incentives that will benefit this firm through its physical expansion and new job growth. Direct Assistance Given by EDC for the DRS Training and Control Systems Project Held several one -on-one meetings and discussions with DRS Headquarters, DRS FWB office, Enterprise Florida ( EFI), Office of Trade, Tourism and Economic Development ( OTTED), State Representatives and public officials from Okaloosa County and the City of Fort Walton Beach. The meetings either occurred in person or by telephone. E-mail correspondence also served as an important tool in keeping the communication open and determining what state and local programs are most suited for this expansion. Economic Development Council serving Okaloosa County www.florida -edc. orq  City of Fort Walton Beach —August 2010 The EDC constructed the City's Resolution for Brownfield Support. The resolution was adopted by the City Council in December 2009. The EDC developed the County's Resolution for the Qualified Defense & Space Contractor Tax Refund Program. The EDC provided the drafts to public officials, DRS representatives and Enterprise Florida representatives for verification and approval. The EDC held several meetings with the County's Property Appraisers office to discuss Ad Valorem Tax Abatement for the company. The EDC met with the CFO for DRS Training and Control Systems to verify the current status of the project and gather additional information needed for future plans. Without the EDC's coordinated effort in working with the City of Fort Walton Beach, Okaloosa County, DRS Training and Control Systems, Enterprise Florida, OTTED Office of Trade, and the Okaloosa County Property Appraiser's office the next DRS expansion could easily take place in Brevard County, in one of DRS's United States Operations or in any of DRS' s International Operations located in a foreign country. Based on project file status updates for the DRS Training and Controls Systems LLC Project, the time devoted by EDC staff exceeds 50 hours which equates to $ 1, 255. Special Note: The new jobs added by DRS represent manufacturing jobs for the FWB community. Using the formula for job growth impacts by manufacturing firms, for every 100 new manufacturing jobs created in a community, another 64 non -manufacturing jobs are created. This includes service jobs, retail, repair shops, financial support jobs, accounting, etc. For the 150 new jobs created by Project DRS, another 96 non - manufacturing jobs are simultaneously being created within the local community. Emergency Loan Program Assistance & EDC Coordination The EDC also takes on ad hoc initiatives as needed for its community. The EDC has been intricately involved in assessing and identifying what its role should be now and over the next few years in dealing with the perception and reality of the BP Oil Spill. One of the EDC's initiatives has been marketing and coordinating the Governor's Emergency Bridge Loan Program for businesses who have been directly impacted by the spill. The program is coordinated through the State's First Florida Financial Group and engages local bankers. The EDC coordinates weekly partnership meetings to review and assist with applications. With the $ 25,000 maximum loans provided by local banks through the Emergency Bridge Loan program, 21 companies located in Okaloosa County have been approved for a total of $ 525,000. Eleven of those firms are located in the Fort Walton Beach area for a total of $275,000. With the EDC's intricate involvement in the Emergency Bridge Loan Program, the EDC has devoted over 33 hours in staff time which equates to $828. Grants Coordinator The EDC serves as the as the lead agency for state defense grants in support of our military host communities. With the military presence being Okaloosa County's primary economic generator all municipalities and businesses benefit from the advantages gained through these support grants. Each year the EDC oversees the application process for the grant programs; this year offering a maximum of $ 500,000 per grant award. These grants are intended to support local infrastructure benefiting both the military installation and the community that support them. Throughout this past fiscal year, the EDC managed approximately $800,000 at different intervals which benefits the business communities of Okaloosa County. The EDC manages state grants supporting the Okaloosa economy, the local business community, our military partners, the county and the local municipalities. The following state grants were managed by the EDC this past year Emerald Coast Technology & Research Center Development Planning o $ 200,000: County Grantee, County -wide Benefactors Florida LambdaRail High Bandwidth Fiber o $ 350,000: EDC Grantee, County -wide Benefactors but primarily Fort Walton Beach o $ 200,000: County Grantee, County -wide Benefactors via the Emergency Operations Center Economic Development Council serving Okaloosa County www.Florida -edc.