Fort Walton Beach Council agenda — 09-06-11 special budget — reading text

modifications for access to this meeting upon request. Please call City Clerk Helen Spencer at 833 -9509 to make a request. For Hearing Impaired dial the City Hall TDD #850 -833- 9925 or 1- 800 -995 -8771 ( TDD) or 1- 800 -955 -8770 ( Voice). Requests most be received at least 48 hours in advance of the meeting in order to allow the City time to provide requested service. All City of Fort Walton Beach council and board meetings are recorded. The video can be accessed at www.fwb.org. City Council ofForl Walton Beach Page 2 Printed 8/31/ 1011  F- 3-1 City Council of Fort Walton Beach 0 To: CITY MANAGER MEMORANDUM Robert T. Meams, City Manager From: Carole Jones, Executive Assistant Date: September 6, 2011 Subject: Approval of Agenda l3 W04 10111031.3 role)119 Carole Jones Completed 08/ 30/2011 1: 27 PM Carole Jones Completed 08/ 30/ 2011 1: 27 PM City Manager Completed 08/ 30/ 2011 1: 28 PM City Council Pending Packet Pg. 3  F4.1. a 1 Resolution 2011 -25 2 3 4 A RESOLUTION OF THE CITY OF FORT WALTON BEACH, 5 FLORIDA, ADOPTING THE TENTATIVE MILLAGE RATE FOR 6 THE FISCAL YEAR BEGINNING OCTOBER 1, 2011 AND ENDING 7 SEPTEMBER 30, 2012; AND SETTING AN EFFECTIVE DATE. 8 9 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON 10 BEACH, FLORIDA, THAT: 1 12 1. Purpose 13 The City of Fort Walton Beach held a public budget meeting on August 16, 2011 to 14 discuss the FY 2011 - 12 budget. The City held a public budget hearing on September 6, 2011 as 15 required by Florida Statutes section 200. 065. The Okaloosa County Property Appraiser has 16 certified that the gross taxable value for operating purposes not exempt from taxation within the 17 City of Fort Walton Beach is $ 1, 148, 835, 675. 18 19 2. Millage Rate 20 The City hereby tentatively sets the FY 2011 - 12 operating millage rate at 4.5383 mills, 21 which is 4. 38% less than the rolled -back rate of 4. 7463 mills. There is no voted debt service 22 millage. 23 24 3. Effective Date 25 This resolution shall take effect immediately upon approval by the City Council. 26 27 28 29 30 Adopted Mike Anderson, Mayor 31 32 33 34 Attest: Approved for form and legal sufficiency: 35 36 37 38 Helen Spencer, City Clerk Hayward Dykes, Jr., City Attorney Packet Pg. 6  TENTATIVE MILLAGE Script for Public Hearing on Millage Rate Mayor: State the following: The tentative millage rate for the City of Fort Walton Beach for FY 2011- 12 is 4. 5383 mills, which is 4. 38% below the rolled -back rate of 4. 7463 mills. The rolled -back rate is the millage rate that will provide the same ad valorem tax revenue as was levied during the prior year. The reason for setting the millage rate at 4. 5383 mills is to provide sufficient revenues to balance the General Fond budget. Mayor: Open the Public Hearing and ask for comments on the tentative millage rate. Mayor: Close the Public Hearing. Mayor: Ask for a Motion and Second for Resolution 2011 -25 to set the tentative millage rate for the City of Fort Walton Beach at 4.5383 for the fiscal year beginning October 1, 2011 and ending September 30, 2012. Use specific language above for motion) Mayor: Ask for Council Discussion. Mayor: Ask for a Vote. Mayor: Upon adoption ofthe Resolution, the Mayor shall announce: The tentative millage rate for the City of Fort Walton Beach is 4.5383 mills for the fiscal year beginning October 1, 2011 and ending September 30, 2012, which is 4. 38% below the rolled -back rate of 4. 7463 mills. The proposed millage is subject to a second and final public hearing that will be held here at the City of Fort Walton Beach Council Chambers on Wednesday, September 21, 2011 at 5: 30pm. Packet Pg. 7  City Council of Fort Walton Beach FINANCE MEMORANDUM To: Robert T. Meatus, City Manager From: Charlotte Dunworth, Budget and Grants Manager Date: September 6, 2011 Subject: FY 2011 - 12 Tentative Millage Rate 1. 1. 1 Chapter 200 " Determination of Millage" of the Florida Statutes sets a statutory timetable for the calculation and notification to the public of the process to set ad valorem tax millage rates and adopt a budget. 1. 2 The City shall, between 65 - 80 days from when the Property Appraiser certifies the value of real property in the City of Fort Walton Beach, hold a public hearing on the tentative millage and budget. The City' s property value was certified on June 29, and therefore the public hearing must be held during September 2 - 22. DISCUSSION 2. 1 The 2011 gross taxable property value for operating purposes is $ 1, 148, 835, 675, a decrease of $60, 904, 829 or 5. 0% from the 2010 final gross taxable property value of 1, 209, 740, 504. 2. 2 Per F. S. 200.065( 1), the rolled -back millage rate is defined as the millage rate that would produce the same amount of ad valorem tax revenue as was levied during the prior year - exclusive of CRA dedicated increment value, new construction, deletions, and boundary changes. Because of the decrease in taxable value, the rolled -back rate is actually a " rolled- forward" rate this year ( i. e. a higher millage rate is required to generate the same amount of tax revenue due to the lower taxable value). The rolled - back rate is 4.7463. 2. 3 Per F. S. 200. 065( 5), the maximum millage rate that may be levied is determined by the number of affirmative votes of the members of the governing body. Method of Adoption Max Milla a FY12 Revenue from 4. 5383 from FYI1 Current Millage 4. 5383 4, 953, 073 nda 277, 282> Proposed Bed et 45383 4, 953, 073 e% 277282> Majority Vote 5. 6913 6, 211, 450 1, 258, 377 980, 795 Two -Thirds Vote 6. 2604 6, 832, 562 1, 879,489 1, 601, 907 Unanimous Vote above 6. 2604 Na nda n/ a 2. 4 Per F. S. 200. 065( 6), municipalities may administratively adjust the adopted millage rate without a public hearing if the final taxable value varies by more than one ooc m: 1412 Page 1 Packet Pg. 4  u RESOLUTION ( ID # 1412) percent from the preliminary taxable value. The taxes computed by applying the adjusted rate to the final taxable value most equal the taxes computed by applying the adopted rate to the preliminary taxable value. The City' s variance does not typically exceed one percent. 3. 3. 1 Staff respectfully requests that City Council adopt Resolution 2011 -25 to adopt the tentative millage rate for the fiscal year October 1, 2011 through September 30, 2012. This millage rate is the same w last year' s and has been incorporated into the proposed budget. As the Department of Revenue requires specific language and procedures, a script for the Mayor to follow is attached. 3. 2 Staff respectfully requests that City Council authorize the City Manager to administratively adjust the adopted millage rate without a public hearing if the final taxable value varies by more than one percent from the preliminary taxable value, provided that the total taxes generated remains unchanged. ATTACHMENTS: 9 -6 Tentative Millage Resolution (DOC) 9 -6 Tentative Millage Script DOC) SIGNATURE BLOCK: Finance Completed 08/ 30/2011 11: 41 AM Finance Completed 08/ 30/2011 11: 43 AM Charlotte Dunworth Completed 08/ 30/2011 11: 44 AM Carole Jones Completed 08/ 31/ 2011 10: 03 AM City Manager Completed 08/ 31/ 2011 10: 03 AM City Council Pending Packet Pg. 5  4. 2 City Council of Fort Walton Beach FINANCE MEMORANDUM To: Robert T. Mearns, City Manager From: Charlotte Dunworth, Budget and Grants Manager Date: September 6, 2011 Subject: FY 2011 - 12 Tentative Budget 1. 1 In compliance with City Charter, the City Manager is to prepare and submit to City Council the annual budget identifying expenditures and revenues in sufficient amounts to cover all appropriations. The City Manager' s proposed FY 2011 -12 budget was presented to Council at the August 16 budget meeting. 2. DISCUSSION 2. 1 The FY 2011 -12 budget was developed based on the following premises: 2. 1. 1 Maintain General Fund Reserve Level at 30% a. City Council adopted a Fund Balance Policy at the August 16 budget meeting establishing a General Fund disaster /emergency reserve at 30% of annual budgeted expenditures. b. The FY 2011 - 12 budget maintains an unrestricted fund balance of 31. 1 %. Unrestricted fund balance purposefully exceeds 30% to account for the upcoming electronic timekeeping initiative, for which