1. City of Fort Walton Beach FY 2011-12 Budget Meeting

2. In May City Council adopted the City’s five core values
In May City Council adopted the City’s five core values. On September 13 staff will present City Council with the proposed City Mission Statement and Vision Statement. These are the first milestones in instituting the City’s new Performance Excellence Program.
Divisions were tasked with identifying two performance metrics that meaningfully measure their activities. The information gathered during the upcoming year will be used the establish a baseline of the programs and services the City provides. Metrics will be refined as we move forward in the Performance Excellence Program, with the goal of using the metrics to gauge the efficiency and effectiveness of programs and services.

3. City Council Budget Direction
Maintain General Fund Reserve Level at 30%
Maintain the Millage Rate at
Offer an Employee Performance Incentive
City Council’s commitment in prior years to long-term solutions and ‘right-sizing’ the organization, has enabled staff to develop a “continuation” budget for FY rather than another year of significant personnel cuts and operating reductions despite a continued decline in ad valorem revenue.
The draft budget before you tonight was developed based on the direction City Council provided at the May 17 budget policy meeting.
READ Goals from slide.
The proposed $38M budget accomplishes these goals.
The $17.4M General Fund budget is 1.2% or $207,093 less than the prior year.
Other items addressed at the budget policy meeting include:
Make the defined contribution plan voluntary – a revised ordinance will be brought forth at the August 23 meeting.
Develop a master plan to consolidate recreation centers and ball fields – this item was addressed by CC earlier this evening.
Surplus land sales – staff has obtained appraisals and will be moving forwarding with drafting an RFP for real estate services.

4. Maintain Reserves at 30% Fund Balance Policy
Unrestricted Fund Balance at 31.8%
Budgeted Use of Reserves:
- Performance Incentive Program
- Police Radio Repeater
- Garnier’s Beach Restroom Replacement
- Parks Truck
- Fleet Compressor
Unrestricted fund balance is anticipated to be 31.8%. The excess has purposefully been retained for an electronic timekeeping system, and an RFP will be issued in September.
The Garnier’s Beach restroom will be replaced with $30K in County boating improvement funds and $8K in City reserves.
Although Neptune Court is currently budgeted from reserves, it will be removed from the budget because the street will be paved in the current year with residuals from the Butler and Howell paving projects.

5. Maintain Millage Rate at 4.5383
Taxable Assessed Value: $1.149 billion
$167K ad valorem decrease in General Fund
$110K ad valorem decrease in CRA Fund
Taxable assessed value of $1.149 billion is $60.9 million or 5.0% less than the prior year.

6. Performance Incentive
Up to $900 Lump Sum Payment or 32 Vacation Hours
Sliding Scale Based on Evaluation Score
Lump sum payment doesn’t affect pensionable earnings.
Vacation hours must be used within one year of anniversary date.
Police bargaining unit members are ineligible due to pending contract negotiations.

7. General Fund Capital Highlights
$207K or 1.2% decrease
General Fund Capital Highlights
23 Computer Replacements
4 Police Vehicle Replacements
7 Police Laptop Replacements
Library Books & Publications funded with Harvey Trust
Cemetery Storage Bldg funded with Perpetual Care Fund
$125K Street Resurfacing
$20K Sidewalk Construction
The General Fund totals $17,426,521 and is $207K or 1.2% less than the prior year.
All programs and services are unchanged.

8. CRA Fund Highlights $2.2M or 60.4% decrease
$330,343 New Police Officers (3)
$150,000 Street Resurfacing
$42,500 Sidewalk Construction
The focus this year is operational and reducing crime and vagrancy in the target area, rather than capital improvements.

9. Utilities Fund Capital Highlights
$4.6M or 60.2% increase
Utilities Fund Capital Highlights
$177K Water Line Replacement
$2.4M Sewer Lining & Grouting
$127K Sewer Line Replacement
$2M Force Main (SRF loan)
$2.5 in 2005 utility bond proceeds is budgeted for water and sewer line capital improvements; the balance will be funded from operating revenues.
$2M SRF loan is budgeted for a parallel force main for pump station #1.
No operational changes are budgeted.

10. Other Enterprise Fund Highlights
Sanitation Fund $36K or 1.1% decrease
Sideloader replacement
Golf Fund $119K or 5.4% decrease
Savings from debt restructuring
Stormwater Fund $138K or 24.4% increase
Gary Smith Honda drainage

11. Special Revenue Fund Highlights
Law Enf Trust Fund $450 or 3.5% increase
Increase in legal fees for forfeitures
Law Enf Training Fund $2K or 17.0% decrease
Decrease in traffic fine revenue
CDBG Fund $26K or 17.1% decrease
Federal appropriation decreased
Debt Service Fund $35K or 8.4% increase
New Fire Ladder Truck
Beal Memorial Fund no change
Transfer to General Fund for grounds maint & storage bldg

12. City Council Action Requested
Approve Proposed FY Budget
Adopt Fund Balance Policy
Adopt Budget Transfers Resolution
Approve Annual Purchasing Waivers
Approve Annual Cost Allocation Waivers
Any increase in General Fund spending will require a reduction in another area.
GASB requires adoption of a Fund Balance Policy by the governing body.
Staff requests that budget transfers be governed by Administrative Policy rather than Resolution.
Purchasing waivers are requested for computers, library books, fuel, street paving, and sidewalk construction.
Cost Allocation Plan waivers are requested for the Golf and Stormwater funds.

13. Thank You