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

an RFP will be issued in September. 2. 1. 2 Maintain Millage Rate of 4.5383 a. The taxable assessed value was certified at $ 1. 149 billion, a decrease of 60.9M or 5. 0 %. b. The millage rate of 4. 5383 generates $ 277, 582 less property tax revenue than the prior year due to decreases in property values. The decline in revenue is allocated as follows: $ 167K General Fund decrease, $ 11 OK CPA Fund decrease. 2. 1. 3 Offer a Performance Incentive a. General employees and firefighters may elect up to $ 900 or 32 leave hours on a sliding scale based on their annual evaluation score as a performance incentive. b. Police officers and sergeants are ineligible due to ongoing union contract negotiations. 2. 2 The FY 2011 - 12 proposed budget of $37,935, 778 is $ 2, 227, 688 or 6.2% more than the FY 2010 -11 adopted budget due to $ 4. 5M in one -time capital improvement projects in the Utilities Fund. The pump station # 1 force main will be reconstructed DOC 0 :1413 Page 1  F- 4 .2 RESOLUTION ( ID # 1413) using $ 2M in State Revolving Fund loan proceeds. Sewer system rehabilitation and water & sewer line replacements are scheduled using $ 25M of 2005 utility bond proceeds. 2. 3 The General Fund, which includes services such as police and fire, recreation programs and parks, building inspections and code enforcement, streets and right -of- way, and general government administration, totals $ 19, 399, 021 and is $ 235K or 1. 3% less than the prior year. 2.4 The following changes to the budget have been made since the August 16 budget meeting: 2. 4. 1 Neptune Court paving and drainage improvements have been removed from the General Fund and Stwonwater Fund since the improvements will be made in FY 2010 -11. 2. 4.2 purchase of a well point pump has been added to the Utilities Fund and the reserve to net assets decreased correspondingly. 2. 4. 3 The staff assistant has been reclassified to full time to improve customer service in the afternoons and a frontloader has been included for replacement due to excessive repair expenses in the Sanitation Fund and the reserve to net assets eliminated correspondingly. 2.4.4 Line item expenses have been reclassified throughout the budget, primarily out of maintenance contracts, to more appropriate accounts based on the State of Florida Uniform Chart of Accounts. 2. 5 A preliminary list of encumbrances ( i. e. open purchase orders) and projects identified for carryover is included. These amounts will be finalized at the second public hearing. Carryovers include open purchase orders, grants, and projects that are anticipated to be incomplete as of September 30, 2011 and are proposed to be continued and made part of the FY 2011 - 12 appropriations. These expenses were authorized, budgeted, and appropriated by Council in the prior fiscal year and are carried forward and funded with the corresponding revenue appropriations of the prior year. 2. 6 The salaries for Charter Officers are traditionally set during the annual budget process in accordance with Section 53 of the Charter. The City Manager' s salary was set in his employment agreement approved by City Council on May 12, 2009. The City Clerk' s salary was set in Resolution 08 -28 approved by City Council on August 18, 2008. Both documents specify the annual salary shall be adjusted in the same manner as for other City employees. As no cost -of-living or anniversary adjustment is budgeted for general employees, no action is necessary regarding salaries. Similar to other employees, the City Manager and City Clerk may elect up to $ 900 or 32 leave hours on a sliding scale based on their annual evaluation by City Council. 3. RECOMMENDATION 3. 1 Staff respectfully requests that City Council adopt Resolution 2011 -26 to adopt the tentative budget for the fiscal year October 1, 2011 through September 30, 2012, with Packet Pg. 9  0 RESOLUTION ( ID # 1413) the budget document and list of encumbrance and project carryovers as attachments. As the Department of Revenue requires specific language and procedures, a script for the Mayor to follow is attached. ATTACHMENTS: 9 -6 Tentative Budget Resolution ( DOC) 9 -6 Tentative Budget Script DOC) SIGNATURE BLOCK: Charlotte Dunworth Completed 08/ 30/ 2011 11: 44 AM Finance Completed 08/ 30/ 2011 11: 47 AM Carole Jones Completed 08/ 31/ 2011 10: 04 AM City Manager Completed 08/ 31/ 201110: 04 AM City Council Pending Packet Pg. 10  I Resolution 2011 -26 2 3 A RESOLUTION OF THE CITY OF FORT WALTON BEACH, 4 FLORIDA, ADOPTING THE TENTATIVE BUDGET FOR 5 CERTAIN EXPENDITURES, EXPENSES, CAPITAL 6 IMPROVEMENTS AND CERTAIN INDEBTEDNESS FOR THE 7 CITY OF FORT WALTON BEACH, FLORIDA, FOR THE YEAR 8 BEGINNING OCTOBER 1, 2011 AND ENDING SEPTEMBER 30, 9 2012; AND SETTING AN EFFECTIVE DATE. 10 11 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON 12 BEACH, FLORIDA, THAT: 13 14 1. Purpose 15 Prior to the beginning of a new fiscal year, the City is required to pass and adopt a budget 16 for the operation of the City government. The City held a public budget meeting on August 16, 17 2011 to discuss the FY 2011 -12 budget. The City held a public budget hearing September 6, 18 2011 as required by Florida Statutes section 200. 065. 19 20 2. Tentative Tax Rate 21 The City Council set the tentative tax rate at 4.5383 mills for property assessed as of 22 January 1, 2011. 23 24 3. Adoption of Budget 25 The document entitled " City of Fort Walton Beach FY 2011 - 12 Adopted Budget", dated 26 September 1, 2011, comprises the total amount of $37,935, 778 for all funds reported. The 27 budget is being presented as a balanced budget whereby there are sufficient revenues to offset all 28 estimated expenditures or expenses. All budget appropriations are based upon the total 29 expenditure and/ or expenses even though the budget has been prepared based on line items and 30 summarized to a categorical level. 31 32 4. Budget Amendments 33 a. The City Council may make any amendments to the adopted budget, by resolution, as 34 it may deem necessary and proper. 35 b. Budget amendments requesting additional expenditures or expenses must also identify 36 the corresponding funding source. 37 38 5. Budget Transfers 39 Budget transfers shall be accomplished pursuant to Administrative Policy FIN- 13 as 40 provided by Resolution 2011 - 19 adopted by the City Council on August 16, 2011. 41 42 6. Debt Service 43 Debt service for the General Fund will be paid from operating revenues and/ or transfers 44 from the Debt Service Fund. Debt service for the Utilities and Golf Enterprise Funds will be 45 paid from operating revenues from these Enterprise Funds. 46 Packet Pg. 11  0 1 T Carryovers 2 a. Projects that were not completed during the prior fiscal year are carved forward and 3 are funded with the corresponding carryover appropriations of the prior year. These are 4 commitments anticipated to be incomplete as of September 30, 2011 and will be continued and 5 made a part of the FY 2011 -12 budget. The document entitled " City of Fort Walton Beach FY 6 2011 - 12 Grant & CIP Project Carryovers ", dated September 6, 2011, comprises the total amount 7 of Sx,xxx,xxx for all funds reported. 8 b. Encumbrances ( open purchase orders) that were not completed during the prior fiscal 9 year are carried forward and are funded with the corresponding carryover appropriations of the 10 prior year. These are commitments anticipated to be incomplete as of September 30, 2011 and 11 will be continued and made a part of the FY 2011 -12 budget. The document entitled " City of 12 Fort Walton Beach FY 2011 - 12 Encumbrance Carryovers ", dated September 6, 2011, comprises 13 the total amount of Sx,xxx,xxx for all funds reported. 14 15 8. Effective Date 16 This resolution shall become effective on and after October 1, 2011. 17 18 19 20 21 Adopted Mike Anderson, Mayor 22 23 24 25 Attest: Approved for form and legal sufficiency: 26 27 28 29 Helen Spencer, City Clerk Hayward Dykes, Jr., City Attorney Packet Pg. 12  0 TENTATIVE BUDGET Script for Public Hearing on Budget Mayor: State the following: The tentative budget for the City of Fort Walton Beach for FY 2011 - 12 is 37, 935, 778, which is $ 2,227, 688 or 6.2% more than the adopted FY 2010 -11 budget. Mayor: Open the Public Hearing and ask for comments on the tentative budget. Mayor: Close the Public Hearing. Mayor: Ask for a Motion and Second for Resolution 2011 -26 to adopt the tentative budget for the City of Fort Walton Beach for the fiscal year beginning October 1, 2011 and ending September 30, 2012. Mayor: Ask for Council Discussion. Mayor: Ask for a Vote. Mayor: Upon adoption ofthe Resolution, the Mayor shall announce: The tentative budget for the City of Fort Walton Beach for FY 2011- 12 is $ 37,935, 778 with a tentative millage rate of 4. 5383, which is 4. 38% below the rolled -back rate of 4.7463 mills. The proposed budget 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. 13