Fort Walton Beach Council agenda — 03-27-12 regular — reading text

2011.2011. KeyKey elementselements ofof thisthis changechange areare asas follows:follows: CapitalCapital grantsgrants forfor governmentalgovernmental activitiesactivities decreaseddecreased $ $ 453,453, 709709 oror 56.56. 4%4% duedue toto priorprior yearyear fundingfunding receivedreceived throughthrough thethe AmericanAmerican RecoveryRecovery andand ReinvestmentReinvestment Act.Act. OtherOther revenuerevenue forfor governmental governmental activitiesactivities decreaseddecreased $ $ 1.1. 11 millionmillion oror 51.51. 22%.%. MunicipalMunicipal revenuerevenue sharing,sharing, interestinterest income,income, disposaldisposal ofof assets,assets, insuranceinsurance proceeds,proceeds, donations,donations, andand otherother miscellaneous miscellaneous revenuerevenue sourcessources comprisecomprise thisthis revenuerevenue category.category. TheThe priorprior yearyear salesale ofof propertyproperty toto WasteWaste ManagementManagement account account forfor thisthis decrease.decrease. Overall,Overall, expenses expenses forfor governmentalgovernmental activitiesactivities decreaseddecreased $ $ 2.2. 33 millionmillion oror 10.10. 9%9% primarilyprimarily duedue toto increasedincreased fiscalfiscal controlcontrol ofof expendituresexpenditures duedue toto thethe recessionaryrecessionary economy,economy, includingincluding thethe eliminationelimination ofof 1717 positionspositions andand thethe reductionreduction inin hourshours forfor 11 I positions.positions. 77 PacketPacket Pg.Pg. 4545  6. 1. a Chart 1 Expenses and Program Revenue— Governmental Activities EZperee • Pmgrem Revmie 510,000.000 - 8. 000000 _.. 8000000 -- 7, 000,00 _. 6 00000 '.... 5. 000. 000 400 000 3000000 L 52000000 IWO MG Gereral Puua Sr y Physical Tramp r E.. k Culturem Deft Sevw GorerrmeM EnNrmmeM Decebpm t Rerre Irh, sk Chart 2 Revenues by Source —Governmental Activities L-- m g Other Revenu= h r- -'' TexRederel bc- OMerTares 22% 8 Packet Pg. 46  F61. Current Year Impacts —Business -Type Activities Business -type activities decreased the City' s net assets by $ 2. 1 million for the fiscal year ended September 30, 2011. Key elements of this change are as follows: Capital Grants and Contributions for business -type activities decreased $ 107, 874, or 62. 2% due to funding received in the prior fiscal year through State Financial Assistance for CBIR grants in the Utility Fund, as well as Florida Forever Grant funding in the Stormwater Fund. Other Revenue for business type activities decreased $ 263, 233, or 60. 3% primarily due to decreased interest earnings. Expenses throughout the Enterprise Funds increased $ 2. 5 million or 20. 9 %. The Utilities Fund experienced an increase as a result of increased depreciation expense due to a change in estimate on the useful life of the farce main and re -use water filtration system currently in- service. The Sanitation, Golf, and Stormwater Funds remained relatively flat. Chart 3 Expenses and Program Revenue— Business -Type Activities Erper • Program Revenue 10, 000,000 59, 000,000 - 8 000,000 - 7, 000000 - 6, 000, 000 5, 000,000 4, 000000 - 531000, 000 2, 000,000 1, 000,000 Illlllllllllli S otibes Saniteban Golf Stonwder 9 Packet Pg. 47  6. t .a Chart 4 FINANCIAL ANALYSIS OF THE CITY' S FUNDS As noted earlier, the City of Fort Walton Beach uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds The focus of the City' s governmental funds is to provide information on near -term inflows, outflows, and balances of available resources. Such information is useful in assessing the City' s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government' s net resources available for spending at the end of the fiscal year. As of September 30, 2011, the City of Fort Walton Beach' s governmental funds have combined ending fund balances of $ 17. 7 million, an increase of $ 2. 1 million in comparison with the prior year. Approximately 55. 7% of this amount, or $ 9. 9 million, is available for spending at the discretion of City Council. The remainder of fund balance is nonspendable or restricted. Details of the fund balance classifications can be found on page 16 of this report, as well as in Note 18. The General Fund is the chief operating fund of the City. At the end of this fiscal year, unrestricted fund balance of the General Fund was $ 7. 9 million, while total fund balance reached $ 11. 2 million. As a measure of the General Fund' s liquidity, it may be useful to compare both unrestricted fund balance and total fund balance to total expenditures. Unrestricted fund balance represents 46.4% of the total General Fund expenditures, while total fund balance represents 65. 8% of that same amount. During the 2011 fiscal year, the fund balance of the City' s General Fund increased by $ 1. 4 million. This increase is attributable to increased fiscal control of expenditures due to the recessionary economy. Proprietary Funds The City of Fort Walton Beach' s proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net assets of the proprietary funds totaled $ 6. 9 million at September 30, 2011, of which the Utilities Fund amounted to $ 4.4 million, the Sanitation Fund totaled $ 2. 0 million, and the Stormwater 10 Packet Pg. 48