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Home My WebLink About06-05-17 City Commission Packet Materials - A1. FY18 City Manager's Recommended Budget - SUPPLEMENTAL MATERIALS 6/5/2017 SOZ E MAN MT City Manager's Recommended Budget for e. / i Monday, June 5, 2017 Budget • • Department Budget "The Balancin Commission Goal Requests Developed 9 Setting -Pending, &Presented Process" i Strategic Plan February March—May City Manager's June 12`consent: Recommended June 5:Special TIF and BID Work Budget Presented Revenue Funds Plans and Budgets June 5th June 12:General June 19:Enterprise June 26: Final Fund Funds Budget Adoption 6/5/2017 City Budget Historical Expenditures • 12% increase over FY17 Budget City Budget -All Funds 'Excluding Interfund Transfers $107,090,458 $104,132,7f 8$120,000,000 $100,000,000 9 9 $80,000.000 - $60,000,000 $111,52 77 - $40,000,000 $20,000,000 $0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 u Budgets Total Budget Expenditures • Significant Investment in Capital o Year to Year Variation based on specific projects o 30%of Total Expenditures in FY18 • Debt Service amounts are still a small portion of total expenditures o 5%of Total Expenditures in FY18 City Budget-All Funds 'Excluding Interfund Transfers $120,000,000 ----- - - $100,000,000 $80,000,000 $60,000,000 - — -- - - $40,000,000 $20,000,000 $0 FY09 FY10 FY11 FY12 FY13 FY14 FY16 FY16 FY17 FY18 upersonnel uOperations uCapital u Debt Service 2 6/5/2017 • Increased Transportation funding to meet Capital Project Plans. Significant • New- Gas Tax Revenue from State of Montana. Issues • Requests for Added Staffing—demand for general services and utility expansion. this Year • Marcy's Law implementation. • Strategic Plan project. CM Recommended Budget includes both operating and capital spending authority. Capital spending is based on approved CIP schedules,with 0/ ('� modifications. fC! 8 Listing of Capital Expenditures on page 222 of the Budget Document. Total Budget Revenues Estimated = $ 95,675,651 Expenditures Estimated = $111,006,429 Change in Fund Balance= ($ 15,330,778) Planned spending of existing cash balances that have accumulated. 3 6/5/2017 Revenues by Source-All Funds-FY18 Other Other Financing Revenues Sources 1% 10h Property Taxes FYI 8 Total Interest 24% Income 0% Fines and Budget Forfeitures 2% Special Assessments 40� Licenses& Permits 3% Inler- Charges for governmental Services 9% 47% Project/Department Street Impact Fee Projects $ 11,870,049 Street Maintenance $ 7,448,972 0 n Arterial&Collector District Projects $ 3,668,345 FYI K) � 0�� I Annual Street Reconstruction Project $ 2,118,375 in a Police Department(incl State Rot.) $ 8,349,494 Water&Sewer(Pipe)Operations and Capital $ 8,266,815 Water Reclamation Facility $ 6,145,549 Fire Department(incl.State Ret.) $ 5,908,114 n Water Treatment Plant-Operation $ 5,063,899 L�� Lo h- c- Solid Waste Collection&Recycling $ 3,742,257 a.4 = Water Impact Fee Projects $ 3,190,000 rO j 0�l t�) All the Rest $ 45,234,560 F_ i '(.SP �hIV•. Ali =''� 4 6/5/2017 FY18 Recommended Budget-$111 Million Street Impact Fee Projects 11% Street Maintenance 7% Arterial&Collector District Projects All the Rest 3% 41°5 Annual Street Reconstruction Project 2% Police Department(incl State Ret.) 7% WeterB Sewer(Pipe) 1 Operations and Capital 7% Water Impact Feel- Projects 3% Water Reclamation Facility-Operation 6% Solid Waste Collection& yyaterTrealmentPlant- RecyGing Operation Fire Department(incl. 3% 5% Stale Rel.) 5% General Fund- 1 FTE Veterans Court Administrator(Pending Grant Award) 1.0 FTE Facilities Service Worker 1.0 I Legal Assistant(from existing 0.5 FTE Admin Asst) 0.5 Communications Coordinator(full time,start 1/2018) 0.5 Si.a ring Additions SpecialEnterprise& . 1 FTE Building Inspector 1.0 FTE Solid Waste Worker 1.0 Streets Service Workers 2.0 Stormwater Specialist 1.0 Vehicle Mechanic 1.0 Water Plant Operator 1.0 5 6/5/2017 City Employees Per 1,000 Residents 400.00 — 12.00 co 350.00 - 11.50 w 300.00 -- -- 11.00 } a250.00 10.50 w IF 200.00 10.00 F150.00 9.50 O 100.00 9.00 F 50.00 8.50 0.00 _ 8.00 FY17 FY18 r�TOTAL EMPLOYEES 406.23 416.23 ♦City Employeesf1,000 9 Residents .36 9.20 Staffing Summary-All Funds - FY18 uGENERALGOVERNMENT f uPUBLIC SAFETY Iu PUBLIC SERVICES PUBLIC PUBLIC WELFARE \SERVICES 29 6 6/5/2017 FY18 General Fund Estimated Beginning Balance $6,818,240 FY18 Revenues $30,343,623 FY18 Expenditures $31,772,812 Difference ($1,429,189) Estimated Ending Balance $5,389,051 Minimum Reserve Policy, 16,67%of Revenues $5,057,372 General Fund - Reserve Unreserved Fund Balance (Cash Reserve) estimated $5.4 Million at the end of FY18. This is$331,679 above our Minimum Reserve— 17.7% Estimate Beginning Balance has$1,176,000(4%)carry-over. Ordinance requires a special hearing if the Final Budget is to be adopted below a 16.67% reserve level. 7 6/5/2017 General Fund - Revenue Property Taxes • Tax levy is at the same level as last year. • No Increase over FY17. Levy of 205.3 mills. • Lower than the FY16 tax levy. • Value of one mill from taxes is estimated to increase by 4% from new construction/reappraisal. Intergovernmental Revenues • Entitlement Share = Increase of 3.5% Revenues by Source -General Fund -FYI Other Financing Sources Fines and Forfeitures 10% 4% Charges for Services 8% Property Taxes 52% Inter-governmental 25% Licenses&Permits 1% 8 6/5/2017 FYI Recommended-General Fund Budget Non-Departmental City Manager 5% 4% Sustainability Commission Other 1% 1% Courts 5% — �- 3% Attorney Recreation 4% 6% Finance(prior Admin Svcs) Library 3% 6% Facilities 5% Parks 6� Information Technology 3% Human Resources 1% Cemetery t 2% Public Services/Streets Police(incl.Stale Ret J g% 29% Fire(incl.State Ret.) / 19% J General Fund Priorities • Marcy's Law • Capital Projects • Parks Capital • Cemetery Irrigation Project(Grant Funded) • Veteran's Court (Grant Dependent) 9 6/5/2017 General Fund Capital Capital Totals$1,284,996 .. 1-0 General Fund Capital Items PARKS GF254 25TH STREET FROM OAK TO TSCHACHE $ 287,000.00 CEMETERY GF 231 CEMETERY IRRIAGTION PROJECT $ 200,000.00 PARKS GF266 STORY MILL COMM CTR UPGRADE $ 188,500.00 PARKS GF206 BRONKEN PATHWAY COTTONWOOD $ 88,246.00 FACILITIES MANAGEMENT GF273 PROFESSIONAL ELECTRICAL UPGRADE $ 75,000.00 FACILITIES MANAGEMENT GF203 BZM SENIOR CENTER EXTERIOR IMPR $ 64,750.00 POLICE GF053 REPLACEMENTOF 1 PATROLVEHICLE $ 61,000.00 CEMETERY GF252 CEMETERY COLUMBARIUM $ 50,000.00 IT GF263 POLICE VIDEO EVIDENCE STORAGE $ 50,000.00 IT GF080 SWITCH AND ROUTER REPLACEMENTS $ 40,000.00 Street Maintenance District Street Maintenance District Assessments: Recommend a 17% increase for FY18. 15.0% FYI 10.0% FY16 11%-Targeting to add$1 Million over FYI 6- 6.4% FY15 FYI for Pavement Maintenance. 6.9% FY14 This year, addition of$434,000. 8.7% FY13 6%-General increase for added staff, operations and capital projects. Average-size lot assessment increases $28.78/year; to$198.02/yr. 10 6/5/2017 Arterial & Collector District Arterial& Collector Assessments: E=C=11111 90% FYI Recommend a 63%increase for FYI 8. new FY16 Targeting to add$2 Million over 3 years for the - FY15 local share of Arterial and Collector street - FY14 projects. - FY13 • New Fuel Tax dollars are"lessening the increase" Average-size lot assessment increases $27.57/year; to$69.11/yr. Tree Maintenance District Tree Maintenance Assessments: C=C=111111 15% FY17 Recommend a 15% increase for FYI 8. 2% FY16 Implementation of Urban Forestry Plan -1.2% FYI 0% FYI • Added Superintendent position in January 17 • Add contracted services for tree trimming 0% FY13 • Growing a reserve up to$100K for emergency event(-Fv19120.) Average-size lot assessment increases $2.93/year; to$22.48/yr. 11 6/5/2017 Water Water Rate Changes: ®® Recommend adopting 2% increase for FYI&2% increase for FYI 2.5% FYI Capital: 2.5% FY16 • Pipe Replacements/Rehab: $1.2M -% FY15 • Pear Street Booster Station Upgrade: $547,000 -% FY14 • Sourdough Transmission Main Ph 1: $310,000 3.0% FY13 • Lead Service Line Replacement:$200,000 • Numerous other equipment replacements Additional Staffing: • Water Plant Operator 1.0 FTE Average residential customer = increase $0.84/month. Wastewater Wastewater Rate Changes: ®® Recommend adopting 2%increase for FYI&2% increase for FYI 3% FY17 3% FY16 Capital: 3% FY15 • Pipe Replacements/Rehab: $1.OM 3% FY14 • Clarifier Covers: $300,000 3% FYI • Numerous other equipment replacements Additional Staffing: none Average residential customer = increase $0.99/month. 12 6/5/2017 Stormwater Recommending No Rate Change ®® • -% FY17 Just completed implementation of rates 1-year Restructure FY16 ago. Restructure FY15 Capital: 4% FY14 • General Pipe Rehab Projects: $105,000 4% FY13 • Annual Pedestrian Ramp/Stormwater: $100,000 • Digital Universal Camera: $70,000 • Numerous other stormwater improvement projects Additional Staffing: -Stormwater Specialist 1.0 FTE Average residential customer = increase None. Remains $5.91/mo. Tax Levy, Estimated Recommended Levy of 205.3 mills. This is no change from last year's levy. Tax revenues are highly dependent on the amount of newly taxable property. Won't receive certification until August. 4%estimated increase in the value of 1 mill,city-wide. • Reappraisal year. City's Total Tax Levy, in mills 250.00 210.16 205.30 205.30 BB 6 200.00 166.75 150.00 100.00 50.00 0.00 FY13 FY14 FYI FY16 FY17 FYI Est 13 6/5/2017 Tax Levy, Estimated Below the Cap: Reduced 9 mills for 911 Levy. $802,000 Includes: Debt service amounts on full TOP Bonds: of 11.63 mills total. Workforce Housing at last year's level: 3 mills. Increase in Permissive Medical Levy 0.26 mills. Debt Service for Landfill Project: (0.05) mills. Landfill Monitoring: 4 mills. All Purpose Levy increase:0.33 mills Median Homeowner=$665 in annual property tax. Will pay same amount as last year. FY18 Typical City Residential Property Annual Cost Adjustments RecommendedTypical Residential Property BudgetStreet Maintenance ` $ 28.78 A rterial Street Assessment $ 27.57 Forestry $ 2.93 Property $ - Water Services $ 10.12 Sewer Services $ 11.90 St,trm Water Services $ - Annual Increase $81.30 Monthly Increase $6.78 14 6/5/2017 FY18 Typical City Residential Property Total Annual Amounts Typical Residential Property Street Maintenance Assessment $ 28.78 $198.02 Arterial Street Assessment $ 27.57 $69.11 Forestry Assessment $ 2.93 $22.48 :Property Taxes $ - $665.00 Water Services $ 10.12 $516.28 Sewer Services $ 11.90 $606.74 Storm Water Services $ - $70.92 Total Annual Amount $2,148.56 Total Annual%Change 3.9% BOZ E MAN MT Budget Work-Sessions June 5th: City Manager's Recommended Budget, overall Special Revenue Funds (Part 1) June 12th: Tax Increment District and Business Improvement District Work-plans and Budgets, received on Consent Agenda General Fund June 19th: Enterprise Funds Special Revenue Funds (Part II) June 26th: Final Budget Hearing, Appropriation Resolution July 15t: Fiscal Year Begins 15