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

GENERAL FUND BUDGET SCENARIOS At the Strategic Planning Session in January and again at the Budget Workshops in April and August, City Council expressed a desire to review a General Fund budget prepared at various millage rates. As presented, the General Fund totals $ 19, 617. 698 - an 11.4% or $ 2, 003, 133 increase over the prior year. The millage rate has been maintained at 4. 97 mills per Council's direction at the August Budget Workshops. A decreasE~ in the tax rate can be achieved if capital purchases and/ or services are reduced or funds are taken from undesignated fund balance to bridge the gap between revenues and expenditures. Using fund balance to achieve a lower millage rate and reduce the tax burden to the citizens is not a sustainable practice, and it is not prudent to deplete City savings for ongoing operating costs. Shown below are possible budget reductions to achieve a lower millage rate. It is important to note that neither of the public safety program expansions ( Police Take- Home Vehicles $ 123, 000 and Fire Command Vehicle $ 55, 000) endorsed by City Council at the Budget Policy Workshop are included in the list of reductions. 4. 9700 Millaae No action necessary - this is current budget. 4. 6458 Millaae 352, 742 reduction necessary - this was City Manager' s proposed budget & does not require reduction in capital or services. 153,295 increase appropriation from fund balance designated for retirement 199.447 include appropriation from undesignated fund balance 352, 742 4. 5000 Millaae 511, 378 reduction necessary. 352, 742 changes from 4. 6458 millage 35,000 eliminate Jet Stadium parking paving 30, 000 eliminate GIS mapping update 20, 000 postpone Streets farm tractor 15, 500 postpone Righl- of-Way % ton pickup replacement 15,000 eliminate Polico patio canopy 13, 500 postpone Publk: Works Director % ton pickup replacement 12, 000 postpone Cemotery farm tractor 10, 000 eliminate additional fireworks 7. 650 reduce additional library books 511, 392 4. 0746 Millaae 974, 229 reduction necessary. 511, 392 changes from 4. 5000 millage 163,600 reduce General COLA from 2. 99% to 2. 00% 87, 600 reduce Police COLA from 9. 00% to 6. 00% 50, 000 reduce citywide street paving 26, 000 eliminate City Hall Athletic Complex parking paving 24, 000 postpone Service Maintenance % ton pickup replacement 20,400 reduce Fire COLA from 2. 99% to 2. 00% 20, 000 postpone Streets wellpoint pump 13, 500 postpone Enginoering % ton pickup replacement 10, 350 eliminate additional library books 10, 000 postpone Council Chamber microphones 9, 800 postpone parks "field rake 9, 000 postpone fire vehicle intercom replacement 7, 995 postpone fleet equipment lift 7, 600 postpone Briarwood Park sod 7. 500 postpone Garnier' s playground equipment replacement 978, 737 City of Fort Walton Beach. FL 16 City Manager' s Budget Message AWARDS & ACKNOWLEDGEMENTS The City received the Government Finance Officers Association' s ( GFOA) Distinguished Budget Presentation Award for its annual Budget dated October 1, 2005. This was the tenth consecutive year that the City received this prestigious award. In order to qualify for the Distinguished Budget Presentation Award, the City' s budget documents were judged proficient in several categories including: a policy document, a financial plan, an operations guide, and a communications device. and dedicated Preparation of the FY 2006- 07 budget would not have been possible without the efficient like to services of Charlotte Dunworth, Financial Analyst, and Carole Jones, Executive Assistant. I would express my appreciation to all Department Directors and staff who assisted and contributed to the preparation of this budget. I would also like to thank the Mayor and City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Fort Walton Beach' s finances and for their attention in conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, 1[ A.~ Joy City Manager City of Fort Walton Beach, FL 17  Executive Budget Summary MISSION STATEMENT in It is the Mission of the City of Fort Walton Beach to be a leader among cities and in the region at large delivering outstanding quality services to all citizens through innovative and efficient use of resources. Where the Money Comes From ... And Where the Money Goes Budaeted Revenues: $ 37, 679, 830 Budgeted Expenditures: $ 37,679, 830 Sales Tax, Capital Revenue Sharing, Improvements Business etc. 5. 6% Licenses, Bldg. 9. 0% Permits, etc. 1. 1% Transportation Other Taxes Contingencies & 4. 5% Reserves 16. 8% 2.4% Physical Environment Public Safely 20. 2% 22.9% User Fees are collected for recreation & golf activities, Programs services expanded this budget year or water and sewer services, garbage and recycling include a second CRA police officer, a non- shared collection, and building permits, Council police take- home vehicle policy, Fire Station 7 has adopted five- year rate schedules for renovations, a new fire command vehicle, a second water/sewer and golf, and a sanitation rate code inspector, and tennis center improvements. study is currently underway, Revenues from user fees are anticipated to increase 10%. Personal Services comprise 52% of the The Ad Valorem Millage Rate determines property tax City' s budget and an 11% or $ 1. 9 million revenues. Municipalities are permitted to levy up to 10 increase is anticipated. Nearly half the mills for ad valorem taxes. The City will maintain a 4. 97 increase - $ 833, 277 - is due to a required increase in millage rate for the 13th consecutive year. Compared to pension contributions as the result of lower than municipalities of similar size and service levels, Fort anticipated investment earnings, more participants due Walton Beach' s millage rate is relatively low. to the early- out retirement program, additional fire Other Taxes include gas tax, franchise and utility fees, personnel, and higher wages for existing employees. communication services tax, and state shared revenues e. sales tax and municipal revenue sharing). The g. City' s franchise and utility agreements Contingencies & Reserves have nearly doubled this the Golf Fund' s are anticipated to provide a fixed pElrcent for 10- 15 years and year as revenues gas tax is based on an interlocal the exceed expenses by $ 355, 898, thereby agreement. Revenues from other taxes are projected to permitting the fund to begin rebuilding its increase 14%. net assets. BUDGETSUMMART Fv 2006- 07 Fv 2005- 06 $ Variance % Variance General Fund $ 19, 617, 698 $ 17, 614, 565 $ 2, 003, 133 11. 4% Law Enf. Trust Fund $ 47, 800 $ 47, 287 $ 513 1. 1% Law Enf. Training Fund $ 43, 533 $ 43, 165 $ 388 0. 9% CDSG Fund $ 190, 788 $ 210, 298 <$ 19, 510> < 9. 2%> CRA Fund $