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Home My WebLink About06-12-17 City Commission Packet Materials - A2. FY18 Budget Work Session - General FundREPORT TO: FROM: SUBJECT: MEETING DATE: Commission Memorandum Honorable Mayor and City Commission Anna Rosenberry, Assistant City Manager Dennis Taylor, Interim City Manager Fiscal Year 2018 (FY18) Budget Work Session General Fund June 12, 2017 AGENDA ITEM TYPE: Action Item – Budget Work Session RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you see fit. BACKGROUND: Attached are a Budget Worksheets and other materials regarding our General Fund’s Recommended Budget. This information has been prepared to assist us in developing the City’s Final Budget, and is based on what is contained in the FY18 City Manager’s Recommended Budget, available at http://www.bozeman.net/government/finance/budget-and-financial-reports. Based on feedback during this work session, and other work sessions held this spring, we intend to prepare the Final Budget resolution. The hearing for adoption of the Final Budget is scheduled for June 26, 2017. General Fund: The City's General Fund is financed primarily by property taxes which provide nearly half of the General Fund revenue. Other revenue sources include: licenses and permits, intergovernmental revenue, charges for services, fines and forfeitures, interest on investments, operating transfers, and miscellaneous revenues. The attached worksheet organizes the department expenditure information in the following order: 1.City Commission 2.City Manager 3. Municipal Court4.City Attorney5. Finance 6.Facilities Management 7. Information Technology 8.Police Department 9.Fire Department 10.Parks Department11.Cemetery12.Recreation & Aquatics 13. Community Services 14.Non-Departmental 201 15. Transportation FISCAL EFFECTS: Although the Final Budget adoption has far-reaching fiscal effects, there are no immediate fiscal effects as a result of this work session. The department budgets discussed tonight are supported by the City’s General Fund, which derives approximately half of its revenue from Property Taxes. As presented, the City Manager’s Recommended Budget is projected to have the following effects on the typical City resident, with the property tax effect highlighted in yellow. Typical Resident: Annual Increase Recommended Budget Street Maintenance Assessments $ 28.78 Arterial Street Assessment $ 27.57 Forestry Assessment $ 2.93 Property Taxes $ - Water Services $ 10.12 Sewer Services $ 11.90 Storm Water Services $ - Annual Increase $ 81.30 Monthly Increase $6.78 Attachments: FY18 General Fund Budget Worksheets HRDC/Streamline Funding Request Letter On File: City Manager’s Recommended Budget for FY18 Report compiled on: June 7, 2017 202 General Fund Budget Worksheet – June 12, 2017 Page 1 of 15 General Fund – Departmental Summary – FY18 Budget Worksheet In February and March of 2017, the City Manager and Assistant City Managers, heard departmental budget requests for the coming fiscal year. Those budget requests were then adjusted to develop a balanced budget recommendation for accomplishing the adopted CIP, Commission goals and budgetary goals. Below is a listing of the Departments in the General Fund, including some of the larger and more significant items in their Recommended Budget. Departmental information in the City Manager’s Recommended Budget document begins on page 101. A pie chart showing the relative proportion of FY18’s budget categories is provided, as well as a comparison of the FY18 Recommended vs. FY17 Approved Budget by category for each department. The City Manager’s (CM) Recommended Budget contains the following General Fund items: 1. City Commission - $277,348 a. City wide Primary Election - $36,000 b. Primary return postage - $7,000 c. City wide General Election $36,000 d. General election return postage - $7,000 e. Chamber of Commerce Dues - $10,200 f. Montana League of Cities and Towns Dues - $12,300 g. Commission Room Hardware Replacement $5,000 Personnel 47% Operations 53% City Commission 203 General Fund Budget Worksheet – June 12, 2017 Page 2 of 15 2. City Manager’s Office - $1,216,952 (Administration, City Clerk, Neighborhood Programs) a. This budget funds the FY18 requirements of the severance agreement for the previous City Manager. b. Personnel costs include the addition of an Assistant City Manager position, resulting from the reorganization that occurred in mid-FY17. The re-organization did not add any net positions, but moved positions from Administrative Services into Finance/Human Resources/Information Technology departments and the City Manager’s Office. c. Addition of full-time Communications Coordinator position, to assist with Strategic Plan identified outreach and education. To begin in January 2018; 0.5 FTE in FY18, 1.0 FTE in future years. d. High Density Storage for City Hall - $30,000 e. City Manager Recruitment Consultant - $25,000 f. Travel for City Manager Candidates Interview Process - $10,000 g. Codification Fees for the Unified Development Code Update - $10,000 h. Consulting for Laserfiche file structure setup and improvements - $10,000 i. Neighborhood Association budgets $500/association (20 goal) - $10,000 117,926 82,075 128,798 143,550 5,000 - 50,000 100,000 150,000 200,000 Personnel Operations Capital City Commission FY17 FY18 Recommended Personnel 81% Operations 19% City Manager 204 General Fund Budget Worksheet – June 12, 2017 Page 3 of 15 3. Municipal Courts - $943,811 a. Veteran’s Court Administrator position 1.0 FTE, will be hired if the city is awarded the Veteran’s Court grant. b. Veteran’s Court operating costs estimate $79,000 c. County Law & Justice Center Court 1 & Clerk Space, lease amount. $52,325 d. County Law & Justice Center Court 2 Space, lease amount. $26,675 e. Visionnet equipment replacement - $13,000 f. Credit card machine transaction charges - $12,000 676,230 126,413 - 976,385 231,517 8,500 550 - 500,000 1,000,000 1,500,000 Personnel Operations Capital Transfers City Manager FY17 FY18 Recommended Personnel 73% Operations 27% Municipal Court 205 General Fund Budget Worksheet – June 12, 2017 Page 4 of 15 4. City Attorney’s Office - $1,246,948 a. Addition of Legal Assistant (from existing 0.5 FTE Admin Asst) 0.5 FTE b. Various contracted services related to litigation - $115,000 c. Westlaw Services - $20,000 d. Summer Intern Program - $6,500 606,675 163,820 - 681,029 249,782 13,000 - 200,000 400,000 600,000 800,000 Personnel Operations Municipal Court FY17 FY18 Recommended Personnel 83% Operations 17% City Attorney 962,990 243,500 - 1,037,748 209,200 - - 500,000 1,000,000 1,500,000 Personnel Operations City Attorney FY17 FY18 Recommended 206 General Fund Budget Worksheet – June 12, 2017 Page 5 of 15 5. Finance – $1,065,951, previously Administrative Services. a. Annual Audit (General Fund Share) - $26,780 b. Sungard System Maintenance Contract - $75,600 6. Facilities Management - $1,455,651 a. Addition of Facilities Service Worker 1.0 FTE b. CIP GF103 ADA compliance repairs and improvements - $10,000 c. CIP GF272 Site security improvements - $15,000 d. CIP GF274 Bridge Improvements - $25,000 e. Custodial Contract City Hall - $31,500 f. Custodial Contract Shops Building - $25,000 g. Custodial Contract Professional Building - $28,000 h. Custodial Contract Library - $98,700 i. CIP GF273 Professional Building Electrical Upgrade - $75,000 j. CIP GF203 Senior Center Building Exterior Improvements - $64,750 Personnel 82% Operations 18% Finance 900,193 185,839 12,760 876,140 189,811 - - 200,000 400,000 600,000 800,000 1,000,000 Personnel Operations Capital Finance (prior Admin Services) FY17 FY18 Recommended 207 General Fund Budget Worksheet – June 12, 2017 Page 6 of 15 7. Information Technology (previously part of Administrative Services) - $978,222 a. General computing supplies and small equipment - $21,000 b. CIP GF062 – Personal computer replacements - $43,000 c. CIP GF080 – Switch and router replacements - $40,000 d. CIP GF263 – Police video evidence storage - $50,000 e. Computer hardware and software maintenance agreements - $123,890 Personnel 22% Operations 67% Capital 11% Facilities Management 247,613 1,039,699 45,000 311,147 979,754 164,750 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Personnel Operations Capital Facilities Management FY17 FY18 Recommended Personnel 60% Operations 31% Capital 9% Information Technology 208 General Fund Budget Worksheet – June 12, 2017 Page 7 of 15 8. Human Resources - $413,390, previously part of Administrative Services a. Consulting for employment issues - $12,000 b. Background investigations for new hires - $10,000 c. Software maintenance agreements - $13,500 578,502 341,947 140,000 586,334 301,888 90,000 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Personnel Operations Capital Information Technology FY17 FY18 Recommended Personnel 80% Operations 20% Human Resources 308,953 119,900 - 331,290 82,100 - - 100,000 200,000 300,000 400,000 Personnel Operations Capital Human Resources FY17 FY18 Recommended 209 General Fund Budget Worksheet – June 12, 2017 Page 8 of 15 9. Police Department - $7,890,215 from General Fund (not including state share of retirement costs) a. Personnel costs include a new method for budgeting for holiday and additional-pay contract elements that was mutually agreed by the city and the police association. b. CIP GF053 - Replacement of 1 patrol vehicles & related equipment - $61,000 c. CIP GF052 – Non patrol vehicle - $18,000 d. Animal Control, Shelter fees - $132,100 e. Fuel costs for all police vehicles - $80,000 f. Vehicle & equipment maintenance - $70,000 g. Uniforms/protective gear - $73,500 10. Fire Department - $5,287,614 from General Fund (not including state share of retirement costs) a. Hydrant and water payment to Water Fund - $163,579 b. Engine/Ladder truck maintenance - $27,920, reduced by ($16,000) due to the addition of the Vehicle Maintenance Mechanic proposed this year. c. Clothing and uniforms - $56,500 Personnel 88% Operations 11% Capital 1% Police 6,245,510 864,406 148,500 6,947,936 863,279 79,000 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Personnel Operations Capital Police FY17 FY18 Recommended 210 General Fund Budget Worksheet – June 12, 2017 Page 9 of 15 d. Fuel for department vehicles - $23,000 e. Small equipment and tools - $67,500 f. EMS supplies - $15,000 g. Maintenance contracts for department equipment and software - $29,000 11. Cemetery - $721,904 a. CIP GF010 – Cemetery mower replacement - $16,000 b. CIP GF231 - Cemetery irrigation project - $200,000 c. CIP GF252 – Columbarium - $50,000 d. Contracted Services for Memorial Day & fall trimming, weed control, etc - $13,000 Personnel 89% Operations 11% Fire 4,497,966 549,330 - 4,713,667 573,947 - - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 Personnel Operations Capital Fire FY17 FY18 Recommended 211 General Fund Budget Worksheet – June 12, 2017 Page 10 of 15 12. Parks - $2,028,480 a. The department is planning to combine 5 existing short-term (summer) worker positions into one full-time Parks Service Worker position. Total costs are estimated to be equal. b. Trail supplies - $11,000 c. Turf care and fertilizer supplies - $23,000 d. Fuel for department vehicles - $36,000 e. General parks supplies (dog bags, restroom supplies, paint, etc. ) $56,000 f. Equipment repair & maintenance - $40,000 g. Building repair & maintenance - $55,000 h. Security services for parks - $24,000 i. CIP GF053 – Turf Sweeper - $38,000 j. CIP GF084 – Restroom at Tuckerman Park - $32,000 k. CIP GF206 – Bronken Park Pathway – Cottonwood - $88,246 l. CIP GF254 – Rose Park share of 25th Street – Oak to Tschache - $287,000 Personnel 45% Operations 18% Capital 37% Cemetery 333,748 126,469 - 322,345 133,559 266,000 - 100,000 200,000 300,000 400,000 Personnel Operations Capital Cemetery FY17 FY18 Recommended 212 General Fund Budget Worksheet – June 12, 2017 Page 11 of 15 13. Library - $1,993,372 a. Books & Reference Materials - $200,000 b. General library supplies - $51,350 c. Magazine, newspaper, online subscriptions - $77,100 d. Maintenance Contracts - $67,540 e. Night-time building security services - $8,000 f. Building security improvements $14,000 Personnel 42% Operations 36% Capital 22% Parks 907,311 692,171 339,500 848,051 735,183 445,246 - 500,000 1,000,000 Personnel Operations Capital Parks FY17 FY18 Recommended 213 General Fund Budget Worksheet – June 12, 2017 Page 12 of 15 14. Recreation (including Aquatics) - $1,811,680 a. Program and facility marketing - $24,000 b. Pool chemicals – Swim Center - $44,300 c. Equipment repairs – Swim Center - $38,000 d. Building repairs – Swim Center - $35,000 e. Pool chemicals – Bogert pool - $10,800 f. Building repairs – Bogert pool - $10,000 g. CIP GF266 Story Mill Recreation Center - $188,500 h. Youth recreation supplies - $14,000 i. Contract recreation instructors - $23,000 Personnel 75% Operations 25% Library 1,523,908 436,505 - 1,485,448 507,924 - - 500,000 1,000,000 1,500,000 2,000,000 Personnel Operations Capital Library FY17 FY18 Recommended 214 General Fund Budget Worksheet – June 12, 2017 Page 13 of 15 15. Community Services - $592,376 from General Fund (Includes Economic Development & Sustainability) a. Economic Development a. Contracted services – marketing collaboration, grant match, etc. - $77,000 b. Prospera membership - $10,000 c. Norther Rocky Mountain Economic Development membership - $10,000 d. Chamber of commerce - $10,000 e. Sector development - $35,000 f. CIP GF275 – Fiber optic conduit - $25,000 b. Sustainability Programs a. Climate vulnerability workshops/report - $15,000 b. Utility tracking software - $7,200 c. Climate Action Plan 10% Challenge software - $6,800 d. Advertising - $12,800 Personnel 56%Operations 34% Capital 10% Recreation 1,107,086 679,301 110,000 1,011,496 611,684 188,500 - 500,000 1,000,000 1,500,000 Personnel Operations Capital Recreation FY17 FY18 Recommended 215 General Fund Budget Worksheet – June 12, 2017 Page 14 of 15 16. Non-Departmental – $3,726,567 a. Fire/Police State share retirement (non-cash) - $2,403,000 b. Landfill Monitoring - $368,084 (for Post-Closure Fund) c. Liability & property insurance - $420,483 d. Contingency - $150,000 e. Transfer to Domestic Violence Fund for program support - $140,000 f. Transfer to Drug Forfeiture Fund for program support - $89,000 g. Stormwater Loan Payment - $140,000 (transfer to Stormwater Fund) h. City Band - $6,000 Personnel 59% Operations 41% Community Services 329,407 250,905 - 335,846 231,530 25,000 - 100,000 200,000 300,000 400,000 Personnel Operations Community Services FY17 FY18 Recommended 216 General Fund Budget Worksheet – June 12, 2017 Page 15 of 15 17. Transportation - $122,331 a. Support for Streamline request - $122,331, in the same amount as FY17. b. Attached is HRDC/Streamline’s request for additional funding in FY18. They have requested a total of two mills, or $185,830. The difference between their request and what is included in the recommended budget is $63,499. 122,331 122,331 - 50,000 100,000 150,000 Operations Transportation FY17 FY18 Recommended 217 218 219 220