Fort Walton Beach — Fiscal Year 2019-20 Adopted Budget — reading text

10 3-5yrs $250,000 Good Shape 2572 Heavy 403 1360 Solid Waste 2011 4/25/11 35 73046 73011 $ 18,825.81 2018 2021 7 3yrs $135,000 New Engine 2499 Safety 001 0800 Police 2006 3/15/06 352 27924 27572 $ 3,255.94 2013 2022 7 5yrs $22,000 Admin Meth Truckg5 Years Stormwater to Facilities 2534 Light 001 1230 Facilities 2007 7/5/07 25 15400 15375 $ 596.60 2019 2022 12 5yrs 02.02.18 Sewer 2530 Light 401 1350 Collections 2007 5/24/07 25 59873 59848 $ 7,444.93 2019 2022 12 4-5yrs $25,000 f250 Service Body 2539 Heavy 403 1360 Solid Waste 2007 8/3/07 365 76525 76160 $ 191,348.40 2017 2023 10 1yr $250,000 Residential 2562 Heavy 403 1360 Solid Waste 2010 3/25/10 658 94492 93834 $ 74,867.71 2020 2024 10 5yrs $250,000 Commercial 2559 Heavy 403 1360 Solid Waste 2009 5/27/09 360 73597 73237 $ 126,690.70 2019 2026 10 4yrs $250,000 Residential 401 Safety 001 0900 Fire 1947 10/1/47 4324 6834 2510 $ 8,781.75 1947 NA NA Show Truck 167 168 Capital Improvements Program The City’s Capital Improvements Program (CIP) is a five-year planning and budgeting tool that identifies the acquisition, construction, replacement, or renovation of facilities and infrastructure with a value greater than $25,000 and a useful life of ten years or more. Capital expenditures may be recurring (e.g. street resurfacing) or non-recurring (e.g. construction of a new park). CIP PROCESS The FY 2019-20 budget, the first year of the CIP, is the only year for which funding may legally be appropriated. Future years’ funding requirements are identified, but are not authorized. The CIP provides information on the current and long-range infrastructure needs of the City and provides a mechanism for balancing needs and resources as well as setting priorities and schedules for capital projects. Each project or program is assigned a four-digit CIP number so expenditures can be easily tracked during the year and also across years. Each year as part of the budget process, the list of projects is reviewed for relevance, need, cost, and priority. The five-year CIP is revised annually based on the following parameters:  Relevance to City Council priorities, and Federal or State mandates Relevance to Priorities, Federal & State Mandates  Maintenance and preservation of current infrastructure  Public health and safety Public Health & Safety  Operating budget impact Preservation &  Recreational, cultural or aesthetic value Maintenance and Recreational & Cultural Value  Funding source Each submission is reviewed on an annual basis and ranked in accordance with the above criteria. Once prioritized, the funding source is identified and the project is placed in the budget if funding is available. The Enterprise Funds (Utilities, Sanitation, and Stormwater) are funded with user fees and do not compete with other City projects for funding. The estimated project costs to be funded within the CIP include all costs related to design, engineering, acquisition, construction, and project management. The City’s Strategic Plan Objectives are referenced throughout this document. Each CIP is categorized by objective. In addition to the text, these objectives are highlighted through icons. More information regarding the City’s Strategic Plan can be found on page 5.  Strategy #1 – Safe and Livable Community for Citizens  Strategy #2 – A Government that Maximizes the City City of Fort Walton Beach, FL 169 Capital Improvements Program  Strategy #3 – Support Intelligent Growth  Strategy #4 – Maintain a Well-Trained, Talented and Engaged Municipal Workforce Strategic Objective, Maintain a Well- PROJECTS BY STRATEGIC OBJECTIVE Trained, Talented and Strategic Objective, Engaged Municipal Safe and Livable Workforce, 7% Community for Citizens, 43% Strategic Objective, Support Intelligent Growth, 7% Strategic Objective, A Government that Maximizes the City, 43% FINANCING ALTERNATIVES Capital improvements may be funded by a variety of means depending on the nature of the project, availability of funds, and the policies of City Council. Financing decisions are made based on established City policies and available financing options directly related to project timing and choice of revenue sources. The funding methodology for the CIP is reliant upon available resources including funds from grants and user fees, useful life of the improvement, and sharing the costs between current and future users. While some projects can be delayed until funds from existing revenues are available, others cannot. The City explores all options such as ad valorem taxes, grants, user fees, bonds, loans, and reserves to fund improvements. The following financing sources are available to fund the CIP: City of Fort Walton Beach, FL 170 Capital Improvements Program  Ad Valorem Taxes – The City rarely uses property taxes as a debt security due largely to the required electoral approval (voter referendum) prior to issuance. Property taxes are directly linked to the assessed value of individual property, not to the consumption of specific goods and services (e.g. sales tax).  Non-Ad Valorem Revenues – Non-ad valorem revenues can be pledged to support various types of bond issues. Such bonds are similar to general obligation bonds in that proceeds are often used for general government purposes and repayment is unrelated to the revenue generating capacity of the project being financed. However, unlike general obligation bonds, non-ad valorem revenue bonds are payable solely from revenues derived from the pledged revenue (such as sales tax, local option fuel tax, and the guaranteed portion of municipal revenue sharing).  Special Revenue Sources – Include the following:  Impact Fees – Fees charged in advance of new development and designed to help pay for infrastructure needs resulting from the new development. These fees may only be charged to those who directly benefit from the new capital improvement and the fee must fairly reflect the cost of the improvements (e.g. water and sewer impact fees).  Special Assessments – Like impact fees, special assessments are levied against residents, agencies, or districts that directly benefit from the new service or improvement (e.g. sidewalks and street paving) and must be apportioned fairly.  User Fees and Charges – These revenues include a variety of license and permit fees, facility and program fees, and fines. They are rarely used as debt security for non-Enterprise Fund capital projects, but could be a source of direct funding of a small capital improvement.  Enterprise Fund User Fees – These revenues are derived from self-supporting business enterprises - utilities, sanitation, and stormwater - which provide services in return for compensation. The enterprise revenue used to secure debt is commonly termed “net-revenue” consisting of gross revenues less operating costs.  Note – A written, short-term promise to repay a specified amount of principal and interest on a certain date, payable from a defined source of anticipated revenue. Usually notes mature in one year or less. Rarely used by the City.  Commercial Paper - Generally defined as short term, unsecured promissory notes issued by organizations of recognized credit quality, usually a bank. Rarely used by the City.  Bond – An issuer’s obligation to repay a principal amount on a certain date (maturity date) with interest at a stated rate. Bonds are distinguishable from notes in that notes mature in a much shorter time period.  General Obligation Bonds – A bond secured by the full faith and credit of the City’s ad valorem taxing power. These are rarely used in Florida, and by the City in particular, due to the requirement for a voter referendum.  Revenue Bonds – Bonds payable from a specific revenue source, not the full faith and credit of an issuer’s taxing power and require no electoral approval. Pledged revenues are often generated by the operation or project being financed (e.g. sales tax, water user fees, golf user fees). City of Fort Walton Beach, FL