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

is recommending expenditures in the amount of $ 238,000. The City Council will consider the grant application at its meeting on August 3, 1993, and review the proposed spending plan at that time. viii  Community Redevelopment Agency Fund The Community Redevelopment Agency Fund is used to program funds received from the Tax Increment proceeds received from the City and County for improvements made in the CRA District. Anticipated revenues from the County and City Tax Increment contributions are projected at $ 85,000 and $ 116, 000 respectively. In addition, interest income is estimated to be $ 1, 500 and $ 442, 305 is to be transferred from General Fund. Expenditures for FY 1993- 94 in this Fund are increasing . 44%, or 2, 797, from $ 642, 008 to $ 644, 805. It should be emphasized however, that most of the expenditures in this Fund, $ 559, 805, is to pay debt service on the various notes related to the Fund. The operating budget totals $ 85, 000 for FY 1993- 94, an increase of $ 2, 000 from the current year's budget of $83,000. I_ ENTERPRISE FUNDS Enterprise Funds are used to account for operations that provide a service to citizens financed primarily by a user charge. This year, only the Water and Sewer Funds are set up as Enterprise Funds. j, Currently, the Sanitation function is budgeted in the General Fund even though the Council has authorized user charges to finance this service. In the future, the Sanitation function should be broken out of the General Fund and designated as an enterprise fund. Water Fund The City Manager' s recommended Water Fund Budget for FY 1993- 94 is $ 1, 727, 905. This represents a $ 146, 322 or 9. 25% increase above the current year's budget of $ 1, 581, 583. The majority of this increase is due to splitting various expenses formerly charged solely to the General Fund, between the Water and Sewer Funds. Maior Expense CateQories The following discussion by major category of expenses is provided for a more detailed review of the proposed Fiscal Year 1993- 94 Water Fund Budget. a. Personal Services - Water Fund The total Personal Services budget of $ 382,413 for FY 1993- 94 increased by $ 38,080 or 11. 06% over the current year's budget. Regular salaries include the 4% salary adjustment proposed for employees, and the 27th pay period noted earlier. No increase in the number of employees is being proposed in this fund for next Fiscal Year. b. Utilities - Water Fund The total proposed Utilities category of $ 121, 260 is $ 9740 less than the current c,'" year's Budget. This decrease is attributed to a more conservative estimate of our needs in the coming year. ix iIiIiiIttI  c. Operations and Maintenance - Water Fund This category of expenditures increased 8. 09% or $ 82, 982, from $ 1, 025, 250 in the current year to 1, 108, 232 in FY 1993- 94. The increase is due in to part charging a of greater portion liability insurance costs to the Water Fund, replacing the roof of the old City Hall building which is now used to house water operations, and the splitting cost of several items formerly funded solely by the General Fund with the Water and Sewer Funds. This includes the contribution to the Chamber of Commerce, the Economic Development Council, the cost for the annual audit, and the cost of the City Attorney. Further, 25% of the cost of the Visioning program, or $ 10, 000 has been placed in the Water Fund. Further, I have created an account within the Water Fund to establish a Contingency of $ 100, 000. The contingency account would be used to fund unexpected or unanticipated expenditures. An additional increase to the Water Fund is the increase of funds being transferred to the General Fund to support its operation. In the current year, $ 400, 000 has been budgeted from Water Fund undesignated retained earnings to support the General Fund. In the FY 1993- 94 Budget, $ 500,000 has been budgeted. d. Capital Outlay - Water Fund This category of expenditures will increase from $ 81, 000 in the current year to $ 116, 000 in the proposed budget. The only capital outlay expenditure budgeted is the acquisition of the new Computer System including hardware and software. The Water Fund is contributing 25% of the capital cost for these purchases. SEWER FUND The City Manager' s recommended Sewer Fund Budget for FY 1993- 94 is $ 3, 141, 815. This represents a $ 376, 992 or 9. 25% increase above the current year' s budget of $ 2, 764,823. The majority of this increase is also due to splitting various expenses formerly charged solely to the General Fund, between the Water and Sewer Funds. Maior Expense Cateqories The following discussion by major category of expenses is provided for a more detailed review of the proposed Fiscal Year 1993- 94 Sewer Fund Budget. a. Personal Services - Sewer Fund The total Personal Services budget of $ 605,411 for FY 1993- 94 increased by $ 102, 714, or 20.4%, over the current year's budget. Regular salaries include the 4% salary adjustment proposed for employees, and the 27th pay period noted earlier. The Sewer Fund Budget does include funding for a new position of City Engineer. The estimated cost of this position for FY 1993- 94 is $ 48, 000, including fringe benefits, however, this may be decreased depending on when the position is filled and the salary paid. In my opinion, this position is very important in order to undertake tasks, monitoring activities, and developing infrastructure improvements plans for various City operations. x  b. Utilities - Sewer Fund The total proposed Utilities category of $ 203, 720 is $420 more than the current year' s Budget. This small increase is attributed to a more conservative estimate of our needs in the coming year. Staff has entered into a time of day agreement with Gulf Power which affords us a lower rate when the newly installed high capacity irrigation pumps are running during the off- peak hours at the Golf evening Course. c. Operations and Maintenance - Sewer Fund This category of expenditures increased 13. 8%, or $ 264,058, from $ 1, 918,826 in the current year to 2, 182, 884 in FY 1993- 94. The increase is due in part to charging a greater portion of liability insurance costs to the Sewer Fund, renovation of the collection system, and splitting the cost of several items formerly funded solely by the General Fund between with the Water and Sewer Funds. This includes the contribution to the Chamber of Commerce, the Economic Development Council, the cost for the annual audit, and the cost of the City Attorney. In addition, 25% of the cost of the Visioning program has been placed in the Sewer Fund. Further, I have created an account within the Sewer Fund to establish a Contingency of $ 60, 000. The contingency account would be used to fund unexpected or unanticipated expenditures. An additional increase to the Sewer Fund is the increase of funds being transferred to the General Fund to support its operation. In the current year, $ 700, 000 has been budgeted from Sewer Fund undesignated retained earnings to support the General Fund. In the FY 1993- 94 Budget, $ 900, 000 has been budgeted. d. Capital Outlay - Sewer Fund This category of expenditures will increase from $ 140,000 in the current year to $ 149,800 in the proposed budget. The capital outlay funds have been budgeted for 25% of the acquisition costs of the new Computer System including hardware and software. The Water Fund is also contributing 25% of the capital cost for these purchases. In addition, funding in the amount of $ 34, 800 has been budgeted to provide telemetry for 6 additional lift stations. Automating the telemetry permits us to reduce the on- site monitoring which now takes place several times per day at each of the 46 Lift Station sites. CONCLUSION The City of Fort Walton Beach will continue to provide excellent services to its citizens while continuing to keep the Ad Valorem tax burden down and user fees at a minimum. I truly believe that our residents are getting excellent value for their tax dollars. We will continue to strive in future years to sharpen our skills at providing the services our community needs in the least expensive manner possible. I want to take this opportunity recognize the contribution of a great many people who spent to