Fort Walton Beach Council agenda — 8-11-14--proposed budget — reading text

Agenda City of Fort Walton Beach Special Meeting of the City Council of Fort Walton Beach Monday, August 11, 2014 5: 00 PM 107 Miracle Strip Parkway Fort Walton Beach, FL 32548 1. CALL TO ORDER 5: 00 PM Meeting will be called to order on August H, 2014 at Council Chamber, 107 Miracle Strip Parkway, Fort Walton Beach, FL. 2. PLEDGE OF ALLEGIANCE 3. ACTION --DIRECTION --DISCUSSION 3. 1. Presentation of the Proposed FY 2014 -15 Budget Synopsis: ( Finance Director) The City Manager will present the proposed FY 2014 -15 budget based on maintaining the current millage rate of 5. 7697 mills. ATTACHMENTS: FY 2014 -15 Proposed Budget ( PDF) 4. ADJOURNMENT Quasi -Judicial — denotes that the item must be conducted as a quasi-judicial hearing in accordance with Florida Statutes. Action —Direction — Discussion items may be acted upon by the City Council by either a motion with a vote in accordance with Robert' s Rules of Order, or by a consensus of the Council. Any person who decides to appeal any decision made with respect to any matter at this meeting will need a record of the proceedings, and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. ( Chapter 286. 01105, F. S.) The City of Fort Walton Beach adheres to the Americans with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call City Clerk Helen City Council of Fort Walton Beach Page I Printed 81612014  Special Meeting Agenda August 1 I; 2014 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 must 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 w-,vw. fwb.org. City Council of Fort Walton Beach Page 2 Printed 81612014  i City Council of Fort Walton Beach FINANCE MEMORANDUM To: Michael D. Beedie, City Manager From: Brandy Ferris, Finance Director Date: August 11, 2014 Subject: Proposed FY 2014 -15 Budget 1. BACKGROUND: 1. 1. In compliance with the City Charter, the City Manager is to prepare and submit to City Council the annual budget identifying expenditures and revenues in sufficient amounts to coverall appropriations. 2. DISCUSSION: 2. 1. On June 30, 2014, City Council approved a proposed millage rate of 5. 7697 mills, which is the same as FY 2013 -14. Staff has developed a proposed FY 2014 -15 budget based on this proposed millage rate. 2. 1. 1. A millage rate of 5. 7697 mills generates an additional $ 125K in the General Fund and $ 16K in the CRA Fund compared to the FY 2013 - 14 budget 3. FINANCIAL INFORMATION: 3. 1. The overall proposed FY 2014 -15 budget of $ 37, 218, 231 is $ 2, 502, 048, or 6. 7 %, higher than the adopted FY 2013 -14 budget. The increase is mainly attributed to the debt service expenses related to the completion of the Pump Station No. 1 Renovation and Force Main project and increased operating expenses throughout the City. 3. 2. The proposed FY 2014 -15 budget includes the following highlights: 3. 2. 1. $ 137K to develop a conceptual master plan for Phase II of the Recreation Complex project where the current Emerald Coast Dirt & Vert facility lies; upon completion of the conceptual master plan, final design will be completed and construction begun in FY 2014 -15. 3. 2. 2. $ 739K for vehicle and equipment replacements, which include five ( 5) Police vehicles, one ( 1) backhoe for the Streets Division, solar -powered flashing school zone beacons, one ( 1) motorized pallet jack for the Warehouse, and one 1) front loader truck for Sanitation. 3. 2. 3. $ 1. 17M for Capital Improvement Programs ( CIPs), including water main replacements, sanitary sewer system rehabilitation; cart path repairs at the Golf Club, street resurfacing, HVAC repairs, and lift station repairs. 3. 2. 4. $ 73K for scheduled IT replacement hardware and software. Pagel of 2  3. 2. 5. $ 100K for a comprehensive City Facilities Assessment Plan to provide a short - and long -term prioritized maintenance, repair, and replacement plan for all City facilities. 3. 2. 6. $ 257K for Year 1 of a five -year implementation of the Pay & Classification Study to bring employees to the minimum of their respective pay grades and to begin placing employees into their respective pay grades based on length of service; the proposed Pay & Classification System will bring-employee salaries on par with other government agencies. 3. 3. The Utilities Fund is projected to experience a $ 2. 2M shortfall in FY 2014 -15 primarily attributable to increased operational expenses related to more accurately measured wastewater flows to Okaloosa County and to increased inflow and infiltration ( I/ I) into the sanitary sewer system. 3. 3. 1. The $ 1. 25M in SRF funding approved by City Council in June 2014 will serve to reduce the operational expenses related to I/ 1 in the sanitary sewer system. 3. 3. 2. An estimated 5% water and sewer rate increase on October 1, 2014 is assumed for budget purposes. 3. 3. 3. A new five ( 5) year rate study is underway to determine the required rate increase to generate enough revenue to sustain a renewal and replacement reserve and to account for the debt service associated with the Pump Station No. 1 project. 3. 3. 4. The rate study will be adopted in September, prior to the final adoption of the FY 2014 -15 budget. 4. RECOMMENDATION: 4. 1. Staff respectfully requests that City Council endorse a millage rate of 5. 7697 mills to fund the proposed budget for the fiscal year October 1, 2014 through September 30, 2015. ATTACHMENTS: FY 20.14 - 15 Proposed Budget ( PDF) SIGNATURE BLOCK: Brandy Ferris Completed 08/ 06/ 2014 7: 18 AM Carole Jones Completed 08/ 06/ 2014 7: 32 AM City Manager Completed 08/ 06/ 2014 9: 42 AM City Council Pending Page 2 of 2  QCi Ci, fit' u cl Iri,l. 60, (? Q 60, 00 6 C), OO 5111 > " r jo CityCity ofof FortFort Walton.Walton. BeachBeach ProposedProposed BudgetBudget FYFY 20142014 - - 1515  CITY OF FORT WALTON EEACH9 FL City Council Figure I —PICTURE WILL BE UPDATED AT AUG COUNCIL MEETING Left to right ( standing): Bobby Griggs ( Seat 1), Joyce gossom ( Seat 2), Amy Jamieson ( Seat 5), Bull Ridgon ( Seat 6), and Dick Rynearson ( Seat 7). Left to right ( seated): John Mead ( Seat 3), Mayor Mike Anderson, and Mike Holmes ( Seat 4). Council members are elected in odd years for four year staggered terms. City Council meets on the second and fourth Tuesday of each month at 6: 00 p.m. in the City Council Chambers located at 107 Miracle Strip Parkway, Fort Walton Beach, Florida. Appointed Officers Department Directors City Manager —Michael Beedie Engineering & Utility Services —Tim Bolduc City Clerk —Helen Spencer Financial Services —Brandy Ferris City Attorney —Hayward Dykes, Jr Fire Services — Ken Perkins, Chief Human Resources —Tarey Franxman Police Services —Ted Litschauer, Chief Recreation & Cultural Services —Jeff Peters  Core Values Rather than -being just words found on the website or located at the top of letterhead, these core values are the guiding principles by which City Council, Department Directors; and City Staff will conduct themselves, allocate resources, and prioritize goals and objectives. These principles form a non -negotiable code of conduct and will guide our government on who we hire, how we train, and how we reward. These values will define who we are, what we stand for, and influence policies, procedures, and guidelines. Adopted by City Council in May 2011, after a collaborative effort by Department Directors and the City Manager to consolidate employee suggestions, these five core values represent the first milestone in instituting the City' s new Performance Excellence Program. InteeritV We will conduct ourselves in an honest, trustworthy, and ethical manner. Accountability We will take full responsibility for our actions, resources, and attitudes. Teamwork We will work together to provide quality services. Customer Service We will be professional, use all available resources, and strive to meet the needs of our customers. Continual Improvement We will promote a culture.that seeks to better our organization. Adopted by City Council in September 2011, after a collaborative effort by Department Directors and the City Manager, the