The URL can be used to link to this page

Home My WebLink About05-15-17 City Commission Packet Materials - A2. Policy Discussion Fiscal Year 2018 Budeget Presentation Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Assistant City Manager SUBJECT: Policy Discussion – FY18 Budget Preparation MEETING DATE: May 15, 2017 AGENDA ITEM TYPE: Policy Discussion RECOMMENDATION: Provide feedback to City Manager and staff regarding the formulation of the City Manager’s Recommended Budget for Fiscal Year 2018. BACKGROUND: We are currently working to develop the City Manager’s Recommended Budget for Fiscal Year 2018 (FY18). Departments made their initial requests in February, and have made a round of cuts to General Fund requests. We are finalizing revenue estimates and working on making cuts to balance spending levels with our available resources. This year, we are expecting the impacts of Marcy’s Law implementation, mandatory inclusionary zoning provisions, and potential items related to the strategic plan that need addressed, in addition to funding our ongoing operations. In order to better prepare the recommendation, we would like to discuss and receive feedback from the Commission regarding the following issues: 1. Fuel Tax Increase: Based on some preliminary discussions about street funding that occurred this past winter, we were planning to use all of the new revenue from the State’s increase in Fuel Tax as an offset to increases in our Arterial & Collector District assessment for FY18. Is there a different expectation about the use of this money? 2. General Fund - Property Tax Levy: Last year’s budget utilized more than $700,000 in cash carryover to reduce the tax levy for property owners. Our final tax levy was 16.88 mills below our statutory cap, and 7.88 mills below our self-imposed reduction for our local 911 mill levy. Again, spending was not cut to reduce the tax levy; spending was sustained and taxes were lowered with one-time cash savings. This winter a considerable amount of additional capital projects were added to the General Fund Capital Improvement Plan, when compared with capital that was funded in FY17. For instance, the FY17 General Fund budget included $800,000 in capital items; the FY18 General Fund CIP includes $1,900,000 in items, with $563,000 funded with loan proceeds (see attached.) As we work to finalize a balanced budget recommendation, sometimes capital projects are cut. Is there an expectation about the proposed tax levy 67 this year that can be articulated at this point? Is there an expectation about the use of estimated cash carryover? Is there an expectation about General Fund Capital Improvement Plan items for the FY18 budget? 3. Affordable Housing Funding: In the current year’s budget (FY17), three mills (3 mills, $268,000) has been allocated to the Community Housing Fund for Workforce/Affordable housing (see attached.) Is there any guidance from the Commission regarding the development of the budget for the 3 mills that are currently allocated to the Community Housing Fund? 4. Strategic Plan Budgetary Items: Because the Strategic Plan isn’t yet completed, staff members didn’t include any related items in their FY18 budget requests. We would be interested in feedback from the Commission if there is consensus around any items that they believe should be included for funding in FY18. Budget Hearing Schedule: We anticipate the following calendar for the FY18 Budget: June 5 City Manager’s Recommended Budget Presented. Special Revenue Funds Work Session (Building Inspection, Community Development, Community Housing Fund, etc.) June 12 Consent Agenda: TIF/BID/TBID work plans submitted. General Fund Work Session June 19 Enterprise Funds, Street & Arterial & Collector District Funds Work Sessions June 26 Final Budget Adoption FISCAL EFFECTS: There are no immediate fiscal effects of this discussion. Once adopted, the FY18 Final Budget will have far-reaching fiscal effects. ALTERNATIVES: As suggested by the City Commission. Attachments: General Fund CIP FY18-FY22 Community Housing Fund Worksheet from FY17 Budget Development Report compiled on: April 21, 2017 68 GeneralFundCapitalImprovementPlanFinancialSummary CurrentYearFY17 FY18 FY19 FY20 FY21 FY22UnscheduledProjectedBeginningBalanceDedicatedtoCIP 750,760$ Ͳ$292,071$45,883$(8,698)$385,631$Plus:GeneralFundRevenuesDedicatedtoCIP 872,821$1,026,172$1,182,504$1,194,329$1,206,272$ Ͳ$Plus:AddedMillsDedicatedtoGFCapital:2MillsͲ$ Ͳ$ Ͳ$ Ͳ$ Ͳ$Plus:50%ofGeneralFundCashCarryover(estimated)Ͳ$ Ͳ$ Ͳ$ Ͳ$ Ͳ$Plus:GF231ͲCem.IrrigationProjectͲReserveUsedforGrantMatch 200,000$200,000$Plus:GF282ͲPurchaseofPropertyAdjacenttoCityHall,ReserveUsed 560,000$Plus:GF286ͲVeteransCemeteryProjectͲReserveUsed 88,000$40,000$45,000$Plus:GF275ͲFiberOpticConduit,MillLevyIncrease(~0.3mills) 25,000$25,000$25,000$25,000$25,000$Plus:GF280ͲStoryMansionSewerRepair,fromStoryMansionFund 18,000$Plus:GF052ͲPoliceNonͲPatrolVehicle,fromDonation 18,000$Plus:BondIssue:Indoor/OutdoorAquaticsFacility16,500,000$Plus:SwimCenter/BogertBondIssue(withAquaticsFacilityquestion)1,402,000$Plus:IntercapLoanͲGF266StoryMillParkCenterImps. 188,500$Plus:IntercapLoanͲGF206,GF254Bronken&RoseParkImps. 375,246$Plus:IntercapLoanͲGF260,GF261SportsComplexImps. 431,500$Plus:GF257ͲDonationfromBaracudaSwimTeam 50,000$Less:ScheduledCIPProjectCosts (800,760)$(1,965,496)$(2,016,860)$(1,302,085)$(870,000)$(18,923,700)$(10,320,183)$ProjectedYearͲEndCashDedicatedtoCIPͲ$292,071$45,883$(8,698)$385,631$595,203$AssumptionsMadeforRevenueEstimates:FY18FY19FY20FY21 FY22EstimatedAnnualGeneralFundRevenues 28,354,746$28,354,746$28,638,293$28,924,676$29,213,923$29,506,062$EstimatedGrowthinGeneralFundRevenues 1% 1% 1% 1% 1%TotalEstimatedGeneralFundRevenues 28,354,746$28,638,293$28,924,676$29,213,923$29,506,062$29,801,123$CurrentRevenuesDedicatedtoCIP%2.6%2.6%3.0%3.5%4.0%4.0%Plus:IncreaseDedicatedtoCapitalImprovements% 0.4% 0.5% 0.5% 0.0% 0.0%Total%DedicatedtoCIP 3.0% 3.5% 4.0% 4.0% 4.0%TotalEstimatedRevenuesDedicatedtoCIP 872,821$1,026,172$1,182,504$1,194,329$1,206,272$ProjectedProjectedCURRENT20,000,00018,000,00016,000,00014,000,00012,000,00010,000,0008,000,0006,000,0004,000,0002,000,0000GeneralFundProjects&Equipment69 PROJ.DEPARTMENTPROJECTNAMEFY18UnscheduledFY22RATINGFY19FY20FY21CIPPROJECTFUND:GeneralFundSortedbyDepartmentandRatingGF231CEMETERYCEMETERYIRRIGATIONPROJECT$200,00044$200,000GF083CEMETERYBACKHOE42$110,000GF116CEMETERYCEMETERYVEHICLEREPLACEMENTS34$45,000GF268CEMETERYSOUTHWESTMONTANAVETERAN'SCEMETERY$360,00034$88,000$40,000$45,000GF252CEMETERYCEMETERYCOLUMBARIUM$50,00032$55,000GF010CEMETERYCEMETERYMOWERREPLACEMENTS$16,00025$16,000$16,000GF275ECONOMICDEVEFIBEROPTICCONDUITANDVAULTS$25,000$25,000$25,00029$25,000$25,000$25,000GF245FACILITYͲCHENERGYPROJECTS–CITYHALL43$75,000GF103FACILITYͲCHAMERICAN'SWITHDISABILITIESACT(ADA)COMPLIANCEIMPROVEMENTS$10,000$10,00042$10,000$10,000$10,000GF272FACILITYͲCHSITESECURITYUPGRADEͲBUILDINGLOCKS$15,00037$15,000$15,000$15,000GF241FACILITYͲCHREPLACEMENTOFCITYHALLACCONDENSINGUNIT–ROOFTOP36$50,000GF274FACILITYͲCHCITYHALLͲBOZEMANCREEKBRIDGEIMPROVEMENTS$25,00035GF219FACILITYͲCHADDITIONTOCITYHALL,CONSOLIDATIONOFSERVICES$5,500,00028GF271FACILITYͲCHCITYHALLNEWPARKINGLOT$250,00023GF273FACILITYͲPROFPROFESSIONALBUILDINGͲELECTRICALUPGRADE$75,00050GF001FACILITYͲPROFPROFESSIONALBUILDINGELEVATORREPLACEMENT$66,60033GF199FACILITYͲPROFPROFESSIONALBUILDINGRECONFIGURATIONͲPHASE227$35,779GF157FACILITYͲSCSENIORCENTERELEVATOR$68,00037GF203FACILITYͲSCBOZEMANSENIORSOCIALCENTEREXTERIORENVELOPEIMPROVEMENTS.$64,75032PW01ͲSFACILITYͲSHSHOPSFACILITYEXPANSIONPLAN38$10,00070 PROJ.DEPARTMENTPROJECTNAMEFY18UnscheduledFY22RATINGFY19FY20FY21GF282FACILITYͲCHPURCHASEOFPROPERTYADJACENTTOCITYHALL$560,00021GF227FINANCEERPREPLACEMENT/UPGRADE"SUNGARDREPLACEMENT/UPGRADE"$333,33350GF224FINANCESUNGARDANALYTICSNOWCOGNOSBI(BUSINESSINTELLIGENCE)WEBͲBASEDREPORTINGSUITE37$34,340GF080I.T.REMOTECLOSETSWITCHES,ROUTERANDWIRELESSAPREPLACEMENT$40,000$40,00050$40,000$40,000$40,000GF265I.T.GENERALFUNDSERVERREPLACEMENT50$40,000$36,000GF196I.T.ROOFTOPCOOLINGUNITFORTHEPROFESSIONALBUILDINGDATACENTER$20,00047GF229I.T.ISCSISTORAGEREPLACEMENT47$40,000GF062I.T.PERSONALCOMPUTER(PC)REPLACEMENT$50,000$43,00045$48,000$55,000$57,000GF233I.T.VEHICLEREPLACEMENT$99,00038GF263I.T.POLICEVIDEOEVIDENCESTORAGEANDBACKUP$40,000$50,00032GF199I.T.PROFESSIONALBUILDINGRECONFIGURATIONͲPHASE227$131,581GF115PARKSPARKVEHICLEREPLACEMENTS$105,00063$45,000$30,000GF260PARKSSPORTSCOMPLEXͲCONSTRUCTIONOF'PROJECTRELATED'COTTONWOODROADAREAWATER&WASTEWATERIMPROVEMENTS45$364,000GF261PARKSSPORTSCOMPLEXͲCONSTRUCTIONOF'PROJECTRELATED'OAKSTREETAREAWATERIMPROVEMENTS45$67,500GF034PARKSLARGEDECKMOWER$58,00043$90,000$58,000GF278PARKSGRIFFINATSTORYMILLPARKROADIMPROVEMENTͲ.26MILE$260,00042GF279PARKSSTORYMILLROADIMPROVEMENTͲ.17MILE$170,00042GF280PARKSSTORYMANSIONSEWERREPAIR$18,00042GF281PARKSBOZEMANPONDPARK&AASHEIMBALLFIELDSROADEXPANSIONͲ.17MILE&.09MILE$260,00042GF254PARKS25THSTREETFROMOAKTOTSCHACHE$287,0004071 PROJ.DEPARTMENTPROJECTNAMEFY18UnscheduledFY22RATINGFY19FY20FY21PW03PARKSVEHICLEMAINTENANCEBUILDINGDESIGN&STORAGECONSTRUCTION38$50,000GF031PARKSPARKIMPROVEMENTGRANTS$150,00037$150,000GF084PARKSPARKSRESTROOMUPGRADES$32,000$470,00037$80,000GF092PARKSPLAYGROUNDEQUIPMENT37$70,000$80,000GF190PARKS4ͲWHEELERATVREPLACEMENT$14,00037GF205PARKSPROSTPLANUPDATE35$100,000GF250PARKSSPLASHPADS$195,700$180,25035GF253PARKSTURFSWEEPER$38,00035GF270PARKSSNOWPLOWINGVEHICLE$75,00028$70,000GF108PARKSPARKSIDEWALKREPLACEMENTS$208,00027GF206PARKSBRONKENPARKPATHWAY$88,24627GF148PARKSBMXPARKINGLOT$85,00025GF191PARKSUPGRADESOFTBALLCOMPLEXLIGHTING$825,00022GF195PARKSAERATOR19$32,000GF165POLICEPATROLMOTORCYCLEREPLACEMENTS$30,00066$30,000GF053POLICEPATROLVEHICLEREPLACEMENT$195,000$122,000$661,00063$124,000$189,000$192,000GF166POLICEPORTABLERADIOREPLACEMENTS57$250,000$250,000GF262POLICEPOLICEK9$17,00047GF235POLICEEVIDENCEBARCODINGSYSTEM$11,00045GF052POLICEPOLICEͲNONͲPATROLVEHICLES$20,000$18,000$465,00038GF140RECREATIONLINDLEYCENTERPARKINGLOTRENOVATION47$52,000GF137RECREATIONSWIMCENTERͲFACILITYREPAIRSANDREPLACEMENTS$947,00045GF056RECREATIONDESIGN&CONSTRUCTINDOOR/OUTDOORFAMILYAQUATICSCENTER$16,500,00044$100,000GF238RECREATIONBOGERTPOOLRENOVATION$455,00040GF209RECREATIONLINDLEYCENTERFULLUPGRADE:RESTROOMS,WINDOWS,SIDING,KITCHEN,ROOF,FLOORING38$217,74572 PROJ.DEPARTMENTPROJECTNAMEFY18UnscheduledFY22RATINGFY19FY20FY21GF266RECREATIONSTORYMILLCOMMUNITYCENTERUPGRADE:HVAC,ELECTRICAL,FIREPROTECTION$188,50037SummaryforGeneralFund(66items)Totalsbyyear:$1,965,496 $2,016,860 $1,302,085$870,000$10,320,183FY18FY19FY20FY21UnscheduledFY22$18,923,70073 Workforce Housing Funding Within the Community Housing FundApproved0.5 Mills 0.5 Mills 0.5 Mills 1 Mill 3 Mills3 MillsFY12 FY13 FY14 FY15 FY16 FY17Beginning Balance 318,460 327,446 336,926 347,769 21,858 188,966 Revenues:General Fund Transfer 56,248 Dedication of Tax Revenue 41,031 41,885 42,819 88,470 241,158 264,886 Interest Earnings 2,955 2,595 2,555 2,958 2,850 2,850 Loan Principal Repayments 5,000 5,000 5,000 682 9,500 9,500 Total Estimated Revenues: 48,986 49,480 50,374 148,358 253,508 277,236 Expenditures:Road to Home - Administration 40,000 40,000 40,000 40,000 40,000 40,000 HRDC - West Edge Project Downpayment Assistance‐ 160,000 HRDC Administration of Revolving Loan Fund14,400 14,400 Workforce Housing Ordinance Development/Update50,000 Support for Low Income Housing Projects (offset Impact Fees)24,269 Remainder of CAHAB Support not contained in Fund 121 (to total $14,400/yr)3,407 GMD - Project Assistance200,000 Administrative Costs8,000 Affordable Housing Action Plan Update10,000 Impact Fees For Home Purchase100,000 Impact Fees For Rental Housing32,000 40,000 Emergency Shelter25,000 Down Payment Assistance50,000 Total Proposed Expenditures: 40,000 40,000 40,000 477,676 86,400 287,400 Ending Balance 327,446 336,926 347,769 21,858 188,966 178,802 74