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

local military bases ( Eglin and Hurlburt Air Force Bases and Duke Field) currently represent a $ 6. 0 billion annual economic impact on the area, with approximately 73% of the local economy supported by the military. Long -Term Financial Planning The City undertakes several processes to assist in future planning, such as: A 5 - year CIP ( Capital Improvement Program) Plan is developed and approved by City Council each year during the annual budget process. 5 - year replacement plans for capital equipment are also developed and approved by Management each year during the annual budget process Relevant Financial Policies The city has several financial policies that are utilized during daily operations, as well as during the budget and financial planning processes. The City utilizes fund balance reserves only for one -time non -recurring expenditures. In addition, the City maintains its fund balance level in the General Fund at 30% of fund expenditures — this policy helps to ensure that the City has sufficient funding in place for emergency and disaster relief. Major Initiatives The City' s financial policies, as well as other indicators, were taken into account when adopting the City' s budget for fiscal year 2012. The City' s total budget for fiscal year 2012 totals $ 37.9 million, which is $ 2. 2 million more than the fiscal year 2011 approved budget, due in part to one -time capital improvement projects budgeted in the Utilities fund. Projected declines in interest earnings and property tax revenue account for much of the revenue decline. The 2012 budget allocates $ 17. 4 million, a 1. 3 % decline as compared to the fiscal year 2011 budget, to the General fund, $ 18. 5 million to the Enterprise funds, and $ 2. 1 million to other funds. For the fiscal year 2012 budget, the ad valorem rate was maintained at 4. 5383 mills. A 3 % increase in water and sewer rates is included in the budget; no other significant changes to the City' s various rate and fees are included in the fiscal year 2012 budget. Personnel expenses account for approximately 47. 0% of the City' s budget. The City' s fiscal year 2012 budget remains relatively stable in this category, at 298A0 full time equivalent positions. AWARDS AND ACKNOWLEDGEMENTS Awards The Government Finance Officers Association of the United States and Canada ( GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Fort Walton Beach for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2010. This was the twenty- fifth consecutive year that the City cii Packet Pg. 31  6. 1. a received this prestigious award. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized Comprehensive Annual Financial Report satisfying both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to meet the Certificate of Achievement Program requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the government also received the GFOA' s Distinguished Budget Presentation Award for its annual budget dated October 1, 2011. This was the sixteenth consecutive year that the City received this prestigious award. In order to qualify for the Distinguished Budget Presentation Award, the City' s budget document was judged proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device. 2 c Acknowledgments H The preparation of this report would not have been possible without the efficient and a`. dedicated services of the entire staff of the Finance Department. We would like to LL express our appreciation to all members of the Department who assisted and contributed to the preparation of this report. nNr We would also like to thank the Mayor and City Council for [ heir unfailing support for . maintaining the highest standards of professionalism in the management of the City of LL Fort Walton Beach' s finances and for their attention in conducting the financial u operations of the City in a responsible and progressive manner. 0N Appreciation is also expressed to the accounting firm of Warren Averett, LLC for its continued assistance and professionalism. a inc Respectfully submitted, mE3 LL0 CN obert T. Mearns Brandy L. Ferris t City Manager Finance Director m viu Packet Pg. 32  E-6. t a c0 Qeaqv`ULcm: THIS PAGE INTENTIONALLY LEFT BLANK.) Packet Pg. 33  6. 1. a Certificate of Achievement for Excellence in Financial Reporting Presented to City of Fort Walton Beach Florida For its Compmhensive Annex] Financial Report for the Fiscal Year Ended September 30, 2010 A Catllficale cf Achievemmt Fm FAOellrnm in Financial Reposing u p.— ud by die Gov ., Finance ORc- Ass'ocietion ofthe Uviled Swes and Canada to govemmwl i nlm end public employee adremau ryatems whose eon u hcmve ermuel finical reports( CA ) achieve the hlghwt tag slmdards an d wfinavcal govcmmeot intoning. s President zs tpyaM S/ e rxaw e' A' Executive Director ix Packet Pg. 34  F6.1. a c a q acN QUKLL NNr THIS PAGE INTENTIONALLY LEFT BLANK.) Packet Pg. 3S  6. t .a City of Fort Walton Beach Organizational Chart Ad t alive Fmvnc vl A P I e R etio Engfnee g u d S Scry Senses S v, 5 p UlililySen ces XX PacketPacket Pg.Pg. 3838  6. t. a THIS PAGE INTENTIONALLY LEFT BLANK.) Packet Pg. 3T  F61.a II. FINANCIAL SECTION INDEPENDENT AUDITOR' S REPORT MANAGEMENT' S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS GOVERNMENT -WIDE FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS REQUIRED SUPPLEMENTARY INFORMATION COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Packet Pg. 36  61. O'SULLNAv CREEL 4 m..v of Wai or ASeet'. 1 LC ( t)Pft$ & COnsuita rs www. wa rrenave rett. com Honorable Mayor and City Council Members City of Fort Walton Beach, Florida c 0 INDEPENDENT AUDITOR' S REPORT q ULaNC`Kd We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Fort Walton Beach, Florida, as of and for the year ended September 30, 2011, which collectively comprise the City' s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Fort Walton Beach, Florida' s management. Our responsibility is to express opinions on these financial statements based on our audit. N n We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test