Fort Walton Beach Ordinance — 1233--Fiscal Year 93-94 Budget — reading text

been budgeted for street resurfacing. No funds were budgeted for this purpose in FY 1992- 93. iv  7. 65, 500 is budgeted for additional garbage and trash disposal fees. In addition, $ 155, 000 has been budgeted to purchase one new replacement front- end loader truck to replace a 1980 model truck and to replace the packer body on one existing automated side- arm loader truck. These purchases will initiate a manageable replacement schedule for these trucks which ultimately will reduce the overall number of trucks in the fleet and should result in reduced maintenance cost. 8. 40, 000 has been budgeted in the General Fund, and $ 40,000 has been budgeted in the Sewer Fund to employ a Director of Management Information Services and a City Engineer respectively. GENERAL FUND The proposed General Fund Budget of $ 14, 726, 525 represents a .07% increase over the current year' s budget of $ 14, 716,797. No increase in the Ad Valorem tax rate, currently set at 5. 62 mills, is proposed. For the fourth consecutive year, no increase in the Ad Valorem millage rate is proposed. At the current rate, staff estimates a total of $ 2, 719,000 will be generated. Since 1988, the net taxable value of Fort Walton Beach has not increased significantly, on average about 2. 5 percent per year. The most recent valuation indicates only a very modest increase of 2.4%. The lack of new growth and assessed valuation over the last five years has stagnated revenues throughout the General Fund. Franchise fees, utility taxes, licenses, permits and interest income have all suffered due to the lack of growth within Fort Walton Beach. During this period, the General Fund has also experienced stagnation in ad valorem proceeds as well as franchise fees and State Shared revenues,all of which are dependent on increased population and new development or redevelopment. Because of lower interest rates and the General Fund' s reliance on use of prior years' surplus, interest earnings have declined. An estimated $ 192, 850 of the $ 553, 892 budgeted from the undesignated Fund Balance in FY 1992- 93 will be used to subsidize expenditures. The City will have an estimated $ 3, 334,675 available in surplus as of September 30, 1993. This balance will be reduced to $ 3, 190, 500 on October 1, 1993 as staff is recommending an Further, staff is appropriation from Fund Balance for FY 1993- 94 of $ 144, 175. recommending a transfer of $ 500, 000 from the Water Fund and $ 900,000 from the Sewer Fund to support the General Fund. It is staff' s intention to develop a financial plan for the General Fund for the next Budget cycle which will outline a five year revenue plan to stabilize fund balance without drastic increases in Ad Valorem tax rates. The undesignated Fund Balance ( surplus) represents the equity which is available in the General Fund after the completion of the fiscal year. The City must take affirmative action to reverse the trend of funding the shortfall between revenues and expenditures through the use of fund balance. v GENERAL FUND EXPENDITURES Total proposed General Fund expenditures of $ 14, 726, 525 represents an increase of $ 36, 594, or .25%, over the current fiscal year. The majority of the General Fund Budget increase is attributed to Personal Services ( salaries and related benefits), where a contingent 4% wage adjustment is included to be effective October 1, 1993. In addition, the budget contains a 27th pay period previously noted. Major Expenditure Categories a. Personal Services - General Fund The proposed recommendation for Personal Services in the General Fund reflects an increase from the current level of $ 8, 507,734 to $ 9, 029, 888, which constitutes an increase of 6. 14%. This increase results from a combination of the following factors: 1 A 4% general wage increase. This amount may be adjusted pending final labor negotiations with the Fire Union. No increase for health insurance premiums have been included as our experience for the year to date appears satisfactory according to conversations we have had with the Humana Health Care Plans Administrator. 2. As noted previously, once every eleven years one additional pay period occurs during the Fiscal Year. This 27th pay period does not add to the earnings of employees on a calendar year basis however, as only 26 pay periods will occur in calendar year 1993, and 26 pay periods in calendar year 1994. This additional fiscal year pay period will cost the General Fund approximately $ 300, 000. 3. A position of Director of Management Information Services has been placed in the General Fund budget. This position will be critical to the success of implementing a new computer system for the City over the next two to three years. Further, the implementation of a new computer system is absolutely critical to enhancing organizational effectiveness and efficiency. b. Utilities - General Fund The total proposed Budget for Utilities is $ 467,558, which is $ 30, 173, or 6. 9%, above the current year. Utilities include the cost of telephone, electric, natural gas, water and sewer. The major increase in Utilities can be attributed to the newly installed golf course high capacity pumps which will have their first full year of operation in FY 1993- 94. Further, staff has implemented a methodology to more equitably distribute the cost of telephone service among the various departments based on the number of telephone sets. Although there has not been a significant increase in the overall telephone service cost, there have been adjustments made to Department budgets. vi  c. Operating Expenditures - General Fund This category of expenditures, which includes repair and maintenance, materials and supplies, insurance, contingency, and other operating charges, decreased from $ 5, 039,408 to $4,636, 189 or 8. 0%. The reason for the decrease includes splitting certain costs, such as the annual audit, with the Water and Sewer Fund. In addition, reductions have been made in such items as office supplies, operating supplies, travel/ training and vehicle repairs. In the Non- Departmental Program, staff has placed $ 200,000 in a Contingency Account. These funds can be used for unanticipated expenses which may arise over the course of the year. I would propose that the use of such funds be approved on a case by case basis by the City Council. In addition, staff has revamped the budgeting practices for Travel and Training by placing $ 1 in the departmental budgets for travel and training by the Director of each Department. A lump sum amount has been placed in Non- departmental from which the Director's travel will be transferred as needed. This same concept has also been used to fund travel and training in the local area. Staff will provide a further explanation of this system during the Budget Meetings. d. Capital Outlay - General Fund This category of expenditures includes the purchase of vehicles and motorized equipment and other equipment with a value of $500 or more. Expenditures in this category have decreased from $ 732, 270 in the current year to $ 592,890 or ( 19%) for FY 1993- 94. Proposed equipment to be purchased include a replacement front- end loading sanitation packer truck and the replacement of an automated side- loading sanitation packer body on an existing chassis. Three new replacement Patrol Vehicles are proposed in the Police Budget, one replacement compact in the Fire Department, a van in the Right- of-way Maintenance Department, and replacement passenger vehicle in both Public Works Administration and Planning and Zoning. Other Capital Outlay expenditures include such items as Golf Carts, Computer System, replacement playground equipment, new and replacement books for the Library, and other miscellaneous equipment. 0~_' SPECIAL FUNDS Ii" Budgeted Special Funds consists of Special Revenue Funds that are used to account for the proceeds of specific revenue sources and are legally restricted to expenditures for specific purposes. Special Funds Budgets are summarized in the following. Police Training Fund No funds have been budgeted in the Police Training Fund this year as revenues have been depleted. Staff intends to let the fund balance rebuild for this year and may resume budgeting expenses from this fund in FY 1994-95. Revenues derived come from the County and are a portion of traffic fine proceeds. The use of these funds is limited to providing criminal justice education and police officer training. vii  Law Enforcement Trust Fund The purpose of this fund is to account for proceeds received from police confiscation of property and AI disbursements for police equipment and investigations. Although revenues are expected to be generated from forfeitures in FY 1993- 94, proceeds from confiscated property can only be appropriated after they have been received. Therefore, the only budgeted revenue in this fund for next fiscal year is interest on investment and appropriation from Fund Balance. The estimated financial position of the Law Enforcement Trust Fund is as follows: Revenues Interest Income 6, 000 Expenditures Operating 73, 106 Contingency o Capital o Total Expenditures 73, 106 Excess ( deficiency) of Revenues over Expenditures $ 73, 106 Projected Beginning Fund Balance 9- 30- 93 221, 275 Projected ending Fund Balance 10- 1- 93 160, 669 Utility Tax Fund The Utility Tax Fund is used to account for the proceeds of the 10% Utility Tax on water, electric, gas, and communications. The proceeds of the Utility Tax are pledged to the paying debt service on long- term estimated debt to total $ 666,000 in FY 1993- 94. The Balance of the funds received are transferred to the General Fund. An estimated $ 1,438, 141 is budgeted to be transferred to the General Fund. Utility Tax Fund revenues are estimated to increase 7. 16% in FY 1993- 94, from $ 1, 801, 008 to 1, 930, 000. Expenditures will increase 16. 8% from $ 1, 801, 008 to $ 2, 104, 141. Community Development Block Grant Fund The CDBG Fund is used to account for funds received for community development purposes from the CDBG program. The City of Fort Walton Beach is an entitlement City, which means a certain portion of available funds are set aside for use by the City. The City must file an application each year which includes a budget of expenditures. HUD Guidelines concerning expenditures are strictly enforced and restrict the various categories of expenditures. For example, no more than 20% of the grant amount may be spent on eligible administrative costs. For FY 1993- 94, staff