Fort Walton Beach Council agenda — 09-06-06 ‎(special-budget)‎ — reading text

Hurricanes have negatively affected affordability because supply is low due to damaged housing and demand has increased due to workers moving to the area to rebuild. Additional military personnel as the result of the 2005 Base Realignment and Closure ( BRAG) will also strain housing supplies. Local unemployment - as computed by the Agency for Workforce Innovation - is currently 2. 5%, down 19.4% from a year ago attributable to the continued demand for construction labor. Infrastructure improvements and expansions have not kept pace with the population growth Okaloosa County has experienced over the past several years. Consequently, and in conjunction with additional population growth projeclted by the 2005 BRAC, voters will be asked in September 2006 to approve an additional penny sales tax countywide over the next five years to fund transportation and stormwater improvements. The proceeds would be split 58. 5% County and 41. 5% Municipalities based on an interlocal agreement, witl1 collection beginning in January 2007. The City' s portion of the sales tax is estimated at $ 5 million per year. Stormwater management needs in the amount of $ 17. 2 million and transportation needs in the amount of $ 13. 5 million have been identified to be funded with the proposed sales tax over the next five years. PRIOR YEAR ACCOMPLISHMENTS Fort Walton Beach will not waver from the course of progress steered in recent years. Due to the commitment of the Mayor and City Council, the City continues to progress with determination and clarity of vision, coupled with private investment, toward a renewed community with strength and vitality. We will continue to grow and revitalize our local economy with our business friendly attitude and our cooperative spirit with residents and business owners alike, while continuing to provide unparalleled quality services to our citizens. The City' s Business is SERVICE! Much progress was made during FY 2005- 06. The City embarked on a Leadership Institute, We are committed to providing quality parterning with Okaloosa- Walton College to offer a service to our diverse community in ways five- week leadership training course to current that are responsive and caring by working supervisors and employees interested in together to serve our residents. leadership and advanc:ing within the City. We believe that our City employees have an Providing training and opportunities to existing interactive partnership with the citizens they serve. employees is crucial to re,taining enthusiastic and We believe that the success of our organization experienced employees - the City' s most valuable depends upon the teamwork, mutual trust, and asset. honesty achieved through our commitment to the following core values: City Council strenghtenE3d its commitment to and Responsibility as a team for efficient supporting the local military' s mission by limiting effective service delivery. building heights to 70 feet above ground level so as not to interfere with the visibility or radar of Integrity in everything we do. Communication with one another and with military aircraft. citizens. In the public safety arena, the Police Department Participation by the Mayor and Council, began the process of expanding its take- home volunteers, citizens and City team members in patrol vehicle program. Six vehicles were donated setting and attaining the City' s goals. by the Okaloosa Co. Sheriff in May and another Innovation in meeting the present and future twelve are slated for purchase from other agencies needs of our City. this fiscal year. The Fire Department commenced Loyalty to our community, the organization and to the final phase of its Advanced Life Support each team member. program with the hiring of six additional firefighter EMT/ Paramedics in April and putting a rapid Courtesy in all personal relations. Pride in our work, our dedication to public service, response vehicle, dedicated to retired Battalion and in being the best we can be. Chief Richard Pitts, into service. Hurricane repairs were finally completed at Liza Jackson park and the municipal golf courses. The City was awarded a $ 112, 500 grant for additional improvements at Liza Jackson park including sod, irrigation, City of Fort Walton Beach. FL 10 City Manager' s Budget Message playground equipment, and 32 boat trailer parking spaces. Development of the City Hall Athletic Complex, which is 50% grant- funded, was completed and includes sod, restrooms, bleachers, fencing and trees. Eight homes were rehabilitated with Federal Community Development Block Grant funds and twenty- two homes were either re- roofed or painted through the volunteer youth program entitled " World Changers." Revitalization efforts in the Beal Parkway Neighborhood included demolition of a residence frequented by drug dealers and vagrants. Improvements to the City' s utilities infrastructure continue as the result of a AA-/A+ rated $ 10. 9M utility revenue bond issued in May 2005. Construction of two new elevated storage tanks and demolition of the old tank has been completed. Installation of an additional water transmission main, replacement of water distribution lines, wastewater treatment plant upgrades, and gravity sewer line rehabilitation are underway. All improvements must be finished within three years of the bond' s issuance. In addition to the aforementioned highlights, annual maintenance programs addressing street resurfacing, sidewalk installation and repair, median maintenance, storm drainage rehabilitation, water well and water tank maintenance, lift station rehabiliation, as well as water and sewer line replacement and rehabiliation were performed to properly preserve the City' s infrastructure and minimize costly, unanticipated repairs. A revised golf rate plan was adopted by City Council in April. The rate adjustments combined with steady, if not increasing, play are anticipated to bring the Golf Fund into financial solvency. In addition, advances to the Golf Fund from the General Fund and Sanitation Fund in the total amount of $ 272, 810 were forgiven to assist the Golf Fund in rebulding its net assets. BUDGET ASSUMPTIONS & CHANGES The FY 2006- 07 budget has been prepared based on the direction provided by City Council at Budget Workshops conducted in April and August. Many of the departmental goals and capital improvement projects are tied directly to the Vision Plan and/ or Strategic Plan, as illustrated by the use of icons reference pages 5- 7) throughout the document. REVENUES 1. Revenues areestimated at conservative levels to guard against unanticipated economic shifts, unexpected legislative changes, or decreases in collection levels. 2. Most governmental revenues budgeted based on historical collection and growth levels. are However, certain revenues distributed by the State ( e. g. municipal revenue sharing, sales tax) are budgeted based on estimates provided by the Legislative Committee on Intergovernmental Relations. Enterprise revenues ( utilities, sanitation, and golf) are based on historical usage and/ or number of customers adjusted for the current rates. 3. In accordance with City Council's desire to continue the City' s commitment to public safety initiatives and maintain current service levels, the millage rate has been maintained at 4. 97 mills. Revenues from City property taxes will increase $ 1, 234, 520 over last year - in large part attributable to rising property values - with 78% or $ 965, 135 of the increase in the General Fund and the balance in the CRA Fund. 4. A 5% adjustment for water and sewer rates effective October 1, 2006 is included in accordance with a multi- year rate plan to provide funds for water and sewer infrastructure improvements and debt payments. 5. Rate adjustments at the City' s two municipal golf courses effective June 1, 2007 are included in accordance with a multi- year effort to develop a rate plan more commensurate with surrounding golf courses and to return golf club operations to self-sufficiency. Also approved by City Council, the General Fund continues in the short term to absorb expenses incurred by the Golf Fund as identified in the City' s cost allocation plan. 6. Staff has assumed the following transfers from fund balance or net assets: a. General Fund - $ 257, 542 from fund balances designated for computer replacement, insurance, and retirement. City of Fort Walton Beach, FL 11  City Manager' s Budget Message b. Law Enforcement Trust Fund - $ 4, 800 from undesignated fund balance. c. Law Enforcement Training Fund - $ 18, 553 from undesignated fund balance. d. Utilities Fund - $ 190, 000 from renewal and replacement. e. Sanitation Fund - $ 274, 000 from renewal and replacement and $ 207, 283 from unrestricted net assets. EXPENSES 1. As in prior years, a 2% inflation factor was used in preparing budget estimates for recurring operational expenses. Increases greater than 2% required justification and are included contingent upon consistency with the goals and objectives of City Council as expressed through the Vision Plan, Strategic Plan, and Budget Policy Workshop. 2. Wages and benefits have been adjusted as follows: a. Cost of living adjustment - Employees customarily receive a cost of living adjustment effective