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Home My WebLink About05-14-18 City Commission Packet Materials - A1. FY19 City Manager's Recommended Budget Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Andrea Surratt, City Manager Anna Rosenberry, Assistant City Manager Kristin Donald, Finance Director SUBJECT: Presentation of the FY2018-2019 (FY19) City Manager’s Recommended Budget MEETING DATE: May 14, 2018 AGENDA ITEM TYPE: Presentation/Discussion RECOMMENDATION: Listen to presentation, ask questions, and provide comments. BACKGROUND: This presentation will outline the FY2018-2019 (FY19) City Manager’s (CM) Recommended Budget, on a “large scale” view. We will be getting into further details over the next weeks, with Final Adoption scheduled for June 25, 2018. Following are the tentatively schedule dates of budget discussions, along with their topics: May 14: City Manager’s Recommended Budget, overall May 21: Special Revenue Funds (Part I) June 4: Tax Increment District and Business Improvement District Work-plans and Budgets, received on Consent Agenda Enterprise Funds June 11: General Fund/ Community Development Fund June 25: Final Budget Hearing, Appropriation Resolution Hearing Attached to this memo is a copy of the Budget Message, which is included in the online document itself (it is attached separately to the spiral-bound document.) It is a general summary of the budget and its implications for citizens and property owners. 183 The entire “FY2018-2019 City Manager’s Recommended Budget” document is available online at http://www.bozeman.net/government/finance/budget-and-financial-reports. Copies are also available to the public at the Bozeman Library and City Clerk’s office. UNRESOLVED ISSUES: Because this is the beginning of the formal budget process, there are many unresolved issues. We will be identifying and discussing those during this presentation and the budget workshops and hearings in June. ALTERNATIVES: If the Commission would like to make suggestions for changes to the planned Budget Work Sessions, please do so tonight. FISCAL EFFECTS: This presentation has no immediate fiscal effects. The adoption of the final budget in June will have far-reaching fiscal effects. The Recommended Budget has the following impacts on the Typical Residential Property: The details surrounding these increases will be discussed at length through the budget-adoption process. Report compiled on: May 6, 2018 Document on File: City Manager’s Recommended Budget for Fiscal Year 2018-2019 Attached Documents: Budget Message (excerpt from Budget Document) FY18 Approved FY19 Recommended FY 19 Recommended increase % Change Street Assessment 198.02 207.92 9.90 5.0% Arterial Street Assessment 69.11 51.78 (17.33) -25.1% Tree (Forestry ) Assessment 22.48 23.61 1.13 5.0% Property Taxes 711.10 722.49 11.39 1.6% Storm Water Services 70.92 70.92 - 0.0% Water Service 516.24 TBD TBD Sewer Services 606.72 TBD TBD 5.09$ 0.42$ Total Annual Increase Pending Water/ Sewer rates Monthly Increase 184 DĂǇϭϰ͕ϮϬϭϴ ŽǌĞŵĂŶŝƚǇŽŵŵŝƐƐŝŽŶ͗ tĞĂƌĞƉůĞĂƐĞĚƚŽƉƌĞƐĞŶƚƚŽǇŽƵƚŚĞWƌŽƉŽƐĞĚƵĚŐĞƚĨŽƌ&ŝƐĐĂůzĞĂƌϮϬϭϴͲϮϬϭϵ;&zϭϵͿ͘dŚŝƐďƵĚŐĞƚƌĞƉƌĞƐĞŶƚƐ ƚŚĞƚŚŽƵŐŚƚĨƵůǁŽƌŬŽĨĚŽǌĞŶƐŽĨƉĞŽƉůĞŝŶĚĞǀĞůŽƉŝŶŐƚŚĞƐƉĞŶĚŝŶŐƉůĂŶĨŽƌŽƵƌŽƌŐĂŶŝǌĂƚŝŽŶĨŽƌƚŚĞĐŽŵŝŶŐĨŝƐĐĂů ǇĞĂƌ͘ŽǌĞŵĂŶŝƐĂǀŝƚĂů͕ŐƌŽǁŝŶŐĂŶĚĐŚĂŶŐŝŶŐĐŝƚǇ͘dŚŝƐǇĞĂƌ͕ǁĞŚĂǀĞĨŽĐƵƐĞĚŽŶĞƋƵŝƉƉŝŶŐƚŚĞŽƌŐĂŶŝǌĂƚŝŽŶƚŽ ĐŽƉĞǁŝƚŚŽƵƌĐŽŵŵƵŶŝƚǇ͛ƐĐŽŶƚŝŶƵĞĚƌĂƉŝĚŐƌŽǁƚŚĂŶĚŚĂǀĞŝŶĐŽƌƉŽƌĂƚĞĚƚŚĞŝƚǇ͛ƐŶĞǁ^ƚƌĂƚĞŐŝĐWůĂŶŝŶƚŽƚŚĞ ďƵĚŐĞƚ͘ dŚĞ&zϭϵƌĞĐŽŵŵĞŶĚĞĚďƵĚŐĞƚƉƌŽƉŽƐĞƐĂŶĂŶŶƵĂůŝŶĐƌĞĂƐĞĨŽƌƚŚĞƚǇƉŝĐĂůƌĞƐŝĚĞŶƚŽĨΨϱ͘Ϭϵ͕ŽƌΨϬ͘ϰϮƉĞƌŵŽŶƚŚ͘ dŚŝƐŝƐĂŵŽƵŶƚĚŽĞƐŶŽƚŝŶĐůƵĚĞtĂƚĞƌĂŶĚ^ĞǁĞƌƌĂƚĞĐŚĂŶŐĞƐ͘tĂƚĞƌĂŶĚ^ĞǁĞƌƌĂƚĞƐĂƌĞůŝŬĞůǇƚŽĐŚĂŶŐĞ ĂĐĐŽƌĚŝŶŐƚŽĂĐŽƐƚͲŽĨͲƐĞƌǀŝĐĞƌĂƚĞƐƚƵĚǇƚŚĂƚƚŚĞŝƚǇŝƐƉĞƌĨŽƌŵŝŶŐ͘dŚĞĐŽŶƐƵůƚĂŶƚǁŝůůƉƌŽƉŽƐĞƚŚŽƐĞƌĂƚĞ ĐŚĂŶŐĞƐƚŽƚŚĞŽŵŵŝƐƐŝŽŶŝŶ:ƵůǇ͘ ŽŶƚŝŶƵĞĚ'ƌŽǁƚŚʹKƵƌĐŽŵŵƵŶŝƚǇ͛ƐŵŽƐƚƌĞĐĞŶƚĞǀŝĚĞŶĐĞŽĨĐŽŶƚŝŶƵĞĚŐƌŽǁƚŚŝŶĐůƵĚĞƐƚŚĞh^ĞŶƐƵƐĚĂƚĂ ƐŚŽǁŝŶŐĂŶĞƐƚŝŵĂƚĞĚƉŽƉƵůĂƚŝŽŶŝŶĐƌĞĂƐĞŽĨϰ͘ϰйƚŚŝƐǇĞĂƌ͕ŽŶƚŽƉŽĨƚŚĞϰ͘ϯйŝŶĐƌĞĂƐĞĨŽƌůĂƐƚǇĞĂƌ͘tĞƐĞĞ ƐƚƌŽŶŐďƵŝůĚŝŶŐƉĞƌŵŝƚĂĐƚŝǀŝƚǇĂŶĚŝŶĐƌĞĂƐĞĚƚƌĂĨĨŝĐĐŽƵŶƚƐĂŶĚĐŽŶŐĞƐƚŝŽŶŽŶŝƚǇƐƚƌĞĞƚƐ͘DƵĐŚŽĨŽƵƌďƵĚŐĞƚ ƌĞĐŽŵŵĞŶĚĂƚŝŽŶŝƐŵĂĚĞŝŶƌĞƐƉŽŶƐĞƚŽƚŚĞƉƌŽůŽŶŐĞĚŐƌŽǁƚŚƚŚĂƚŽǌĞŵĂŶĐŽŶƚŝŶƵĞƐƚŽĞǆƉĞƌŝĞŶĐĞ͘/ŶŽƌĚĞƌ ƚŽŵĂŝŶƚĂŝŶƐĞƌǀŝĐĞůĞǀĞůƐĂŶĚƉĞƌĨŽƌŵƚŚĞǁŽƌŬŶĞĐĞƐƐĂƌǇƚŽĂĐĐŽŵƉůŝƐŚŽƵƌ^ƚƌĂƚĞŐŝĐWůĂŶĂĐƚŝŽŶŝƚĞŵƐ͕ǁĞŵƵƐƚ ĞǆƉĂŶĚŽƵƌƐƚĂĨĨŝŶĂĨĞǁŬĞǇĂƌĞĂƐ͘ ϮϬϭϴ^ƚƌĂƚĞŐŝĐWůĂŶĚŽƉƚŝŽŶʹ KŶ Ɖƌŝů ϭϲ͕ ϮϬϭϴ ƚŚĞ ŝƚǇ ĂĚŽƉƚĞĚ ŝƚƐ ĨŝƌƐƚ ^ƚƌĂƚĞŐŝĐ WůĂŶ͘ dŚŝƐ ĂĐĐŽŵƉůŝƐŚŵĞŶƚ ƐŝŐŶŝĨŝĐĂŶƚůǇ ŝŶĨŽƌŵƐ ƚŚĞ ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĨŽƵŶĚŝŶƚŚĞ&zϭϵďƵĚŐĞƚ͘dŚĞĨƵůůƉůĂŶĐĂŶďĞĨŽƵŶĚĂƚŚƚƚƉƐ͗ͬͬǁǁǁ͘ďŽǌĞŵĂŶ͘ŶĞƚͬĐŝƚǇͲ ƉƌŽũĞĐƚƐͬďŽǌĞŵĂŶͲƐƚƌĂƚĞŐŝĐͲƉůĂŶ͘dŚĞŽŵŵŝƐƐŝŽŶŚĂƐĂůƐŽĂĚŽƉƚĞĚƐĞǀĞŶƉƌŝŽƌŝƚŝĞƐĨƌŽŵƚŚĞ^ƚƌĂƚĞŐŝĐWůĂŶƚŚĂƚ ŚĂǀĞďĞĞŶŝŶĐůƵĚĞĚŝŶŽƵƌďƵĚŐĞƚƌĞĐŽŵŵĞŶĚĂƚŝŽŶ͘ EngagedCommunity:VisionStatement1 dŚĞŝƚǇ͛ƐĨŝƌƐƚŽŵŵƵŶŝĐĂƚŝŽŶƐŽŽƌĚŝŶĂƚŽƌƉŽƐŝƚŝŽŶ͕ŝŶŝƚŝĂůůǇĨƵŶĚĞĚŝŶ&zϭϴ͕ƉůĂǇƐĂŬĞǇƌŽůĞŝŶŽƵƌ ĐŽŵŵƵŶŝƚǇĞŶŐĂŐĞŵĞŶƚĞĨĨŽƌƚƐŝŶ&zϭϵ͘dŚŝƐƉŽƐŝƚŝŽŶǁŝůůƐŝŐŶŝĨŝĐĂŶƚůǇĂĚǀĂŶĐĞŽƵƌǁŽƌŬƚŽĨŽƐƚĞƌĂ ĐƵůƚƵƌĞŽĨĐŝǀŝĐĞŶŐĂŐĞŵĞŶƚďǇĐƌĞĂƚŝŶŐĂĚĞƚĂŝůĞĚĐŽŵŵƵŶŝĐĂƚŝŽŶƉůĂŶĨŽƌƚŚĞŽƌŐĂŶŝǌĂƚŝŽŶ͕ĞǆƉĂŶĚ ŽƵƚƌĞĂĐŚƚŽƚŚĞĐŽŵŵƵŶŝƚǇ͕ĂŶĚŽǀĞƌƐĞĞĂĐŝƚŝǌĞŶĞŶŐĂŐĞŵĞŶƚƉƌŽĐĞƐƐ͘ŽŵŵƵŶŝĐĂƚŝŽŶĂŶĚŽƵƚƌĞĂĐŚŝƐ ŽŶĞŽĨƚŚĞƐĞǀĞŶƉƌŝŽƌŝƚŝĞƐĨŽƌƚŚŝƐĨŝƐĐĂůǇĞĂƌ͘ InnovativeEconomy:VisionStatement2 ^ĞǀĞƌĂů^ƚƌĂƚĞŐŝĐWůĂŶĂĐƚŝŽŶŝƚĞŵƐ͕ƚŚĂƚĐĂŶĂůƐŽďĞĨŽƵŶĚŝŶƚŚĞϮϬϭϲĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚ^ƚƌĂƚĞŐǇ͕ ǁŝůůďĞŝŵƉůĞŵĞŶƚŝŶŐƚŚƌŽƵŐŚƚŚĞŽŶŐŽŝŶŐǁŽƌŬŽĨƚŚĞĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚĞƉĂƌƚŵĞŶƚƚŚŝƐǇĞĂƌ͘ 1 185 Safe,WelcomingCommunity:VisionStatement3 dŚĞ ŽǌĞŵĂŶ WƵďůŝĐ ^ĂĨĞƚǇ &ĂĐŝůŝƚǇŝƐĂƐĂĨĞƚǇͲƌĞůĂƚĞĚƉƌŝŽƌŝƚǇĨŽƌƚŚĞ&zϭϵ͖ǁĞǁŝůůǁŽƌŬƚŽǁĂƌĚƐ ƐƵƉƉŽƌƚŝŶŐŚŝŐŚƋƵĂůŝƚǇƉƵďůŝĐƐĂĨĞƚǇĨĂĐŝůŝƚŝĞƐĂŶĚĞŵĞƌŐĞŶĐǇƉƌĞƉĂƌĞĚŶĞƐƐďǇƌĞƐŽůǀŝŶŐƚŚĞĐƵƌƌĞŶƚ WŽůŝĐĞ͕&ŝƌĞ͕WƌŽƐĞĐƵƚŝŽŶĂŶĚŽƵƌƚƐƐƉĂĐĞĚŶĞĞĚƐŶŽǁĂŶĚŝŶƚŽƚŚĞĨƵƚƵƌĞ͘ WellǦPlannedCity:VisionStatement4 dŽĐŽŶƐŝƐƚĞŶƚůǇŝŵƉƌŽǀĞŽƵƌĐŽŵŵƵŶŝƚǇ͛ƐƋƵĂůŝƚǇŽĨůŝĨĞĂƐŝƚŐƌŽǁƐ͕ƚŚĞƉƌŝŽƌŝƚŝĞƐŽĨWůĂŶŶŝŶŐĂŶĚ>ĂŶĚ hƐĞ/ŶŝƚŝĂƚŝǀĞƐĂŶĚŶŶĞǆĂƚŝŽŶŶĂůǇƐŝƐĂŶĚ^ƚƵĚǇĂƌĞŝŶĐůƵĚĞĚŝŶƚŚŝƐǇĞĂƌ͛ƐĞĨĨŽƌƚƐ͘&Žƌ&zϭϵ͕ǁĞǁŝůůďĞ ĐŽŶĚƵĐƚŝŶŐƐƚƵĚŝĞƐŝŶƚŚĞƐĞĂƌĞĂƐƚŽĞŶƐƵƌĞǁĞŐƌŽǁŝŶĂƌĞƐƉŽŶƐŝďůĞŵĂŶŶĞƌ͘tĞǁŝůůĂůƐŽďĞĞŶŚĂŶĐŝŶŐ ŽƵƌĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐƉƌŽŐƌĂŵƚŽĨƵƌƚŚĞƌƚŚĞ&zϭϵĨĨŽƌĚĂďůĞ,ŽƵƐŝŶŐƉƌŝŽƌŝƚǇ͕ďǇƵƐŝŶŐŽŶĞͲƚŝŵĞ ŵŽŶŝĞƐĨƌŽŵƚŚĞ'ĞŶĞƌĂů&ƵŶĚ͘tĞĂƌĞƌĞĐŽŵŵĞŶĚŝŶŐŝŶƚŚĞ&zϭϵďƵĚŐĞƚƚŽƚƌĂŶƐĨĞƌƚŚĞĞƋƵŝǀĂůĞŶƚŽĨ ƚǁŽŵŝůůƐ͕ΨϮϭϬ͕ϰϴϴ͕ƚŽƚŚĞtŽƌŬĨŽƌĐĞ,ŽƵƐŝŶŐĨƵŶĚĨŽƌĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐƉƌŽũĞĐƚƐ͘/ŶĐůƵĚĞĚŝŶƚŚŝƐ ďƵĚŐĞƚŝƐƚŚĞůĂƐƚƉŚĂƐĞŽĨƚŚĞĐŽŶƐƵůƚĂŶƚǁŽƌŬĨŽƌĐƌĞĂƚŝŽŶŽĨĂWĂƌŬƐDĂŝŶƚĞŶĂŶĐĞŝƐƚƌŝĐƚ͘dŚŝƐǁŽƌŬ ǁŝůůŐŝǀĞƚŚĞŽŵŵŝƐƐŝŽŶŝŶĨŽƌŵĂƚŝŽŶŽŶƚŚĞƉŽƐƐŝďůĞƉĂƚŚƐƚŽǁĂƌĚĚĞĨŝŶŝŶŐĂĚŝĨĨĞƌĞŶƚĨƵŶĚŝŶŐƐŽƵƌĐĞĨŽƌ ƉĂƌŬŵĂŝŶƚĞŶĂŶĐĞĐŝƚǇͲǁŝĚĞ͘ Creative,LearningCulture:VisionStatement5 tĞƉůĂŶƚŽƉĂƌƚŶĞƌǁŝƚŚD^h͕ƵƚŝůŝǌŝŶŐƚŚĞŝƌƐƚƵĚĞŶƚĂŶĚĨĂĐƵůƚǇƉŽƉƵůĂƚŝŽŶƚŽĂĐĐŽŵƉůŝƐŚƐŽŵĞƐƚƌĂƚĞŐŝĐ ƉůĂŶĂĐƚŝŽŶŝƚĞŵƐƚŚƌŽƵŐŚĐŽůůĞŐĞͲůĞǀĞůĐůĂƐƐĂƐƐŝŐŶŵĞŶƚƐ͘dŚŝƐǁŝůůďĞĂŶĞǁƉĂƌƚŶĞƌƐŚŝƉĨŽƌĞĚƵĐĂƚŝŽŶ ĂŶĚůĞĂƌŶŝŶŐďĞƚǁĞĞŶƚŚĞŝƚǇĂŶĚƚŚĞhŶŝǀĞƌƐŝƚǇƚŚĂƚŚĂƐŶŽƚĞǆŝƐƚĞĚŝŶƚŚĞƉĂƐƚ͘ SustainableEnvironment:VisionStatement6 DŽƐƚŶŽƚĂďůĞŝŶŽƵƌƐƵƐƚĂŝŶĂďŝůŝƚǇĞĨĨŽƌƚƐŝƐƚŚĞůŝŵĂƚĞĐƚŝŽŶΘZĞƐŝůŝĞŶĐǇWůĂŶƚŚĂƚǁĞƉůĂŶƚŽďĞŐŝŶŝŶ &zϭϵ͘ HighPerformanceOrganization:VisionStatement7 DĂŝŶƚĂŝŶŝŶŐƚŚĞŝƚǇ͛ƐĐƵƌƌĞŶƚůĞǀĞůƐŽĨƐĞƌǀŝĐĞĂŶĚŝŵƉůĞŵĞŶƚŝŶŐĂĐƚŝŽŶŝƚĞŵƐŝŶƚŚĞ^ƚƌĂƚĞŐŝĐWůĂŶ ƌĞƋƵŝƌĞƐƚŚĞĂĚĚŝƚŝŽŶĂůƐƚĂĨĨƚŚĂƚŚĂƐďĞĞŶƌĞĐŽŵŵĞŶĚĞĚŝŶƚŚŝƐďƵĚŐĞƚ͘<ĞǇĂŵŽŶŐƚŚĞŵŝŶĐůƵĚĞĐŝǀŝůŝĂŶ ƉŽƐŝƚŝŽŶƐƚŽƐƵƉƉŽƌƚƚŚĞWŽůŝĐĞĞƉĂƌƚŵĞŶƚĂĐĐŽƌĚŝŶŐƚŽƚŚĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĨƌŽŵƚŚĞWŽůŝĐĞ^ƚĂĨĨŝŶŐ WůĂŶ͕ĂƉůĂŶƌĞǀŝĞǁĞŶŐŝŶĞĞƌƚŽĂƐƐŝƐƚǁŝƚŚǁŽƌŬůŽĂĚĐƌĞĂƚĞĚďǇĚĞǀĞůŽƉŵĞŶƚƉĞƌŵŝƚƚŝŶŐ͕ĂŶĚĂ^ ;^ƵƉĞƌǀŝƐŽƌǇĐŽŶƚƌŽůĂŶĚĚĂƚĂĂĐƋƵŝƐŝƚŝŽŶͿ^ǇƐƚĞŵƐDĂŶĂŐĞƌĨŽƌƚŚĞtĂƐƚĞǁĂƚĞƌŝǀŝƐŝŽŶŽĨWƵďůŝĐtŽƌŬƐ͘ 2019BudgetProposal Revenues tŝƚŚƚŚĞŐƌŽǁƚŚŽĨƚŚĞŝƚǇ͕ĞǆƉĞĐƚĞĚƐĞƌǀŝĐĞůĞǀĞůƐ͕ĂŶĚƚŚĞƐƚƌĂƚĞŐŝĐƉůĂŶŝŶŝƚŝĂƚŝǀĞƐ͕ŝƚŝƐŶĞĐĞƐƐĂƌǇƚŽ ŝŶĐƌĞĂƐĞƚŚĞŵŝůůůĞǀǇ͘dŚŝƐŝƐƌĞĐŽŵŵĞŶĚĞĚĂƐǁĞĂĚĚƌĞƐƐƚŚĞŶĞĞĚƐŽĨƚŚĞĞǆƉĂŶĚŝŶŐŝƚǇǁŚŝůĞƐƚƌŝǀŝŶŐ ƚŽĨƵŶĚŽŶŐŽŝŶŐŽƉĞƌĂƚŝŽŶƐǁŝƚŚƐƵƐƚĂŝŶĂďůĞƌĞǀĞŶƵĞƐ͘/ŶƚŽƚĂů͕ŽƵƌZĞĐŽŵŵĞŶĚĞĚƵĚŐĞƚůĞǀŝĞƐϭϵϬ͘ϯϯ ŵŝůůƐŽŶĂůůƚĂǆĂďůĞƉƌŽƉĞƌƚǇǁŝƚŚŝŶŝƚǇůŝŵŝƚƐ͘ 2 186 dŚŝƐŝƐďĞĂƚŚƌĞĞͲŵŝůůŝŶĐƌĞĂƐĞŽǀĞƌƚŚĞƉƌĞǀŝŽƵƐǇĞĂƌ͘dŽĐĂůĐƵůĂƚĞƉƌŽƉĞƌƚǇƚĂǆƌĞǀĞŶƵĞƐ͕ĂϰйŐƌŽǁƚŚ ƌĂƚĞŝƐĂƐƐƵŵĞĚĨƌŽŵŶĞǁĐŽŶƐƚƌƵĐƚŝŽŶ͕ůĞĂǀŝŶŐƚŚĞĞƐƚŝŵĂƚĞĚǀĂůƵĞŽĨĂŵŝůůĂƚΨϭϬϱ͕Ϯϰϰ͘dŚĞƚŽƚĂůĂŶŶƵĂů ƉƌŽƉĞƌƚǇƚĂǆĨŽƌƚŚĞŵĞĚŝĂŶŚŽŵĞŝƐĞƐƚŝŵĂƚĞĚƚŽďĞΨϳϯϲ͘ϯϵ͕ĂΨϱ͘ϬϵŝŶĐƌĞĂƐĞĨƌŽŵ&zϭϴ͘ ŝƚǇƉƌŽƉĞƌƚǇŽǁŶĞƌƐƉĂǇĂŶĂŶŶƵĂůƐƚƌĞĞƚŵĂŝŶƚĞŶĂŶĐĞ͕ĂƌƚĞƌŝĂůƐƚƌĞĞƚ͕ĂŶĚƚƌĞĞŵĂŝŶƚĞŶĂŶĐĞĂƐƐĞƐƐŵĞŶƚ ďĂƐĞĚ ŽŶ ƚŚĞ ƐƋƵĂƌĞ ĨŽŽƚĂŐĞ ŽĨ ƚŚĞ ůŽƚ ƚŚĞǇ ŽǁŶ͘ dŚŝƐ ĨƵŶĚŝŶŐ ŐŽĞƐ ƚŽǁĂƌĚƐ ƚŚĞ ^ƚƌĞĞƚ ŝǀŝƐŝŽŶ͕ĂƌƚĞƌŝĂůĐĂƉŝƚĂůƉƌŽũĞĐƚƐĂŶĚƚŽƐƵƉƉŽƌƚ&ŽƌĞƐƚƌǇŝǀŝƐŝŽŶ͘/ŶŽƌĚĞƌƚŽŬĞĞƉƐƚƌĞĞƚƐŝŶƌĞƉĂŝƌƚŚĞ ƐƚƌĞĞƚƐĂƐƐĞƐƐŵĞŶƚƐŶĞĞĚƐĂϱйŝŶĐƌĞĂƐĞ͘dŚĞdƌĞĞĂƐƐĞƐƐŵĞŶƚĂůƐŽŶĞĞĚƐĂϱйŝŶĐƌĞĂƐĞ͘>ĂƐƚƐĞƐƐŝŽŶ͕ ƚŚĞDŽŶƚĂŶĂ>ĞŐŝƐůĂƚƵƌĞƉĂƐƐĞĚ,ŽƵƐĞŝůůϰϳϯ͕ǁŚŝĐŚĂƵƚŚŽƌŝǌĞĚĂϰ͘ϱĐĞŶƚŝŶĐƌĞĂƐĞŝŶƚŚĞŐĂƐƚĂǆǁŚŝĐŚ ǁĞŶƚŝŶƚŽĞĨĨĞĐƚŽŶ:ƵůǇϭ͕ϮϬϭϳ͘ƐĂƌĞƐƵůƚ͕ƚŚĞĂƌƚĞƌŝĂůĂŶĚĐŽůůĞĐƚŽƌĂƐƐĞƐƐŵĞŶƚĐĂŶďĞƌĞĚƵĐĞĚďǇϮϴй͘ /ŶƚŽƚĂů͕ƚŚĞ&zϭϵďƵĚŐĞƚƉƌŽƉŽƐĂůŝŶĐůƵĚĞƐĂΨϭϮ͘ϵϮƌĞĚƵĐƚŝŽŶŝŶƐƉĞĐŝĂůĂƐƐĞƐƐŵĞŶƚƐĨŽƌƚŚĞĂǀĞƌĂŐĞƐŝǌĞĚ ůŽƚ͘dŚĞĨŽůůŽǁŝŶŐŝƐĂďƌĞĂŬĚŽǁŶŽĨƚŚĞĂƐƐĞƐƐŵĞŶƚƐĂŶĚƚŚĞŝƌŝŵƉĂĐƚŽŶƌĞƐŝĚĞŶƚŝĂůůŽƚƐ͗ 3 187 ZĞĐĞŶƚůǇ͕ƚŚĞŽŵŵŝƐƐŝŽŶŚĂƐĂĚŽƉƚĞĚŶĞǁĨĞĞƐƚƌƵĐƚƵƌĞƐĂŶĚŝŶĐƌĞĂƐĞƐƚŽŽƵƌĐŚĂƌŐĞƐĨŽƌƐĞƌǀŝĐĞƐ͘dŚĞ WĂƌŬƐĂŶĚZĞĐƌĞĂƚŝŽŶĞƉĂƌƚŵĞŶƚŚĂĚĨĞĞƐƚƌƵĐƚƵƌĞĐŚĂŶŐĞƐĂŶĚĞŵĞƚĞƌǇ&ĞĞŝŶĐƌĞĂƐĞƐǁŚŝĐŚǁŝůů ŝŶĐƌĞĂƐĞƌĞǀĞŶƵĞ͘dŚĞŶĞǁƐŚŽƌƚͲƚĞƌŵƌĞŶƚĂůƐůŝĐĞŶƐĞ͕ƐŝŵƉůŝĨŝĞĚďƵƐŝŶĞƐƐůŝĐĞŶƐĞĨĞĞ͕ĂŶĚƉůĂŶŶŝŶŐĨĞĞ ĂĚũƵƐƚŵĞŶƚǁĞƌĞŽŵŵƵŶŝƚǇĞǀĞůŽƉŵĞŶƚĨĞĞĐŚĂŶŐĞƐĂƉƉƌŽǀĞĚƚŚŝƐǇĞĂƌ͘ dŚĞŝƚǇŝƐĐƵƌƌĞŶƚůǇƵŶĚĞƌŐŽŝŶŐĂƌĂƚĞƐƚƵĚǇĨŽƌďŽƚŚǁĂƚĞƌĂŶĚ ƐĞǁĞƌ ƐǇƐƚĞŵƐ͘ &Žƌ ƚŚĞ &zϭϵ ƌĞĐŽŵŵĞŶĚĞĚďƵĚŐĞƚ͕ƌĂƚĞĐŚĂŶŐĞƐŚĂǀĞŶŽƚǇĞƚďĞĞŶŝŶĐůƵĚĞĚ͘WƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞƐƚƵĚŝĞƐƐŚŽƵůĚŽĐĐƵƌ ĚƵƌŝŶŐƚŚĞůĂƚĞƌƉĂƌƚ:ƵůǇĂŶĚĨŝŶĂůŝǌĞĚƌĂƚĞĐŚĂŶŐĞƐǁŝůůďĞƉƌĞƐĞŶƚĞĚŝŶƌĞƐŽůƵƚŝŽŶƐƚŽďĞĂĚŽƉƚĞĚŝŶůĂƚĞ 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dŚĞƐĞŝŶĨƌĂƐƚƌƵĐƚƵƌĞƉƌŽũĞĐƚƐĂƌĞƚŚĞĂǀŝƐ>ŝĨƚ^ƚĂƚŝŽŶĂŶĚƚŚĞ&ƌŽŶƚ^ƚƌĞĞƚ/ŶƚĞƌĐĞƉƚŽƌĂŶĚǁŝůůƌĞƋƵŝƌĞ ĨŝŶĂŶĐŝŶŐŝŶŽƌĚĞƌƚŽďĞĐŽŵƉůĞƚĞĚĨŽƌĂƚŽƚĂůŽĨũƵƐƚƵŶĚĞƌΨϴŵŝůůŝŽŶ͘tŝƚŚƚŚĞƐĞƚǁŽĐĂƉĂĐŝƚǇĞĨĨŽƌƚƐ ƚŚĞƌĞĂƌĞ^ƚƌĞĞƚ/ŵƉĂĐƚ&ĞĞĂŶĚƌƚĞƌŝĂůŽůůĞĐƚŽƌƐŚĂƌĞĚƉƌŽũĞĐƚƐƚŽĨƵŶĚƚŚĞďƵŝůĚŝŶŐŽĨƚŚĞƌŽĂĚƐ ƐƵƌƌŽƵŶĚŝŶŐƚŚĞŶĞǁŚŝŐŚƐĐŚŽŽů͘ĞǇŽŶĚŵĂũŽƌƉƌŽũĞĐƚƐ͕ƚŚĞƌĞŝƐƉůĂŶŶĞĚƌŽĂĚŵĂŝŶƚĞŶĂŶĐĞ͕ǀĞŚŝĐůĞ ƌĞƉůĂĐĞŵĞŶƚƐĂŶĚďƵŝůĚŝŶŐŝŵƉƌŽǀĞŵĞŶƚƐ͘ ƵƌƌĞŶƚ&zϭϴ ZĞĐŽŵŵĞŶĚĞĚ ŚĂŶŐĞƐ&zϭϵ &zϭϵdŽƚĂů 'ĞŶĞƌĂů'ŽǀĞƌŶŵĞŶƚ ϳϭ͘ϯϬ ϯ͘ϱϬ ϳϱ͘ϴϬ WƵďůŝĐ^ĂĨĞƚǇ ϭϰϰ͘ϮϬ Ϯ͘ϴϱ ϭϰϳ͘Ϭϱ WƵďůŝĐ^ĞƌǀŝĐĞƐ ϭϮϬ͘Ϯϱ ϰ͘ϱϬ ϭϮϯ͘ϳϱ WƵďůŝĐtĞůĨĂƌĞ ϴϬ͘ϰϴ Ͳ ϴϬ͘ϳϯ dŽƚĂů ϰϭϲ͘Ϯϯ ϭϬ͘ϴϱ ϰϮϳ͘ϯϯ EĞƚ&dй/ŶĐƌĞĂƐĞ&ƌŽŵWĞƌǀŝŽƵƐzĞĂƌ Ϯ͘ϲϭй ĞƉĂƌƚŵĞŶƚ &d WŽƐŝƚŝŽŶ ϭ͘ϬϬ ĚŵŝŶŝƐƚƌĂƚŝǀĞƐƐŝƐƚĂŶƚ// ϭ͘ϬϬ ŽĚĞŽŵƉůŝĂŶĐĞWƌŽŐƌĂŵDĂŶĂŐĞƌ /ŶĨŽƌŵĂƚŝŽŶdĞĐŚŶŽůŽŐǇ ϭ͘ϬϬ ^ǇƐƚĞŵĚŵŝŶŝƐƚƌĂƚŽƌ/ ,ƵŵĂŶZĞƐŽƵƌĐĞƐ ϭ͘ϬϬ ,ƵŵĂŶZĞƐŽƵƌĐĞ'ĞŶĞƌĂůŝƐƚ ϭ͘ϬϬ WŽůŝĐĞ/ŶĨŽƌŵĂƚŝŽŶ'ĞŶĞƌĂůŝƐƚ Ϭ͘ϲϬ ŶŝŵĂůŽŶƚƌŽůKĨĨŝĐĞƌ;ĨƵůůdŝŵĞͿ;͘ϰϬн͘ϲϬсϭ&dͿ &ŝƌĞ ϭ͘ϬϬ ƵŝůĚŝŶŐͬ>ŝĨĞ^ĂĨĞƚǇ^ƉĞĐŝĂůŝƐƚ ϭ͘ϬϬ >ĞĂĚŝůůŝŶŐůĞƌŬ ϭ͘ϬϬ ŶŐŝŶĞĞƌ/ ^ƚƌĞĞƚƐ Ϭ͘ϳϱ ^ĞƌǀŝĐĞtŽƌŬĞƌ^ƚƌĞĞƚƐ;ϭ&dͲ͘ϮϱƐŚŽƌƚƚĞƌŵс͘ϳϱͿ tĂƚĞƌ Ϭ͘ϱϬ ŽŶƚƌŽůƐ/ŶƚĞŐƌĂƚŽƌdĞĐŚŶŝĐŝĂŶ;ϭ&dͲ͘ϱ^ĞƌǀŝĐĞǁŽƌŬĞƌс͘ϱϬͿ tĂƐƚĞǁĂƚĞƌ ϭ͘ϬϬ ^ĐĂĚĂDĂŶĂŐĞƌ WŽůŝĐĞ WƵďůŝĐtŽƌŬƐĚŵŝŶŝƐƚƌĂƚŝŽŶͬŶŐŝŶĞĞƌŝŶŐ ŽŵŵƵŶŝƚǇĞǀĞůŽƉŵĞŶƚ 5 189 dŚĞĐŚĂƌƚďĞůŽǁŝůůƵƐƚƌĂƚĞƐƚŚĞƚŽƚĂůĂƉƉƌŽƉƌŝĂƚŝŽŶƐƌĞĐŽŵŵĞŶĚĞĚŝŶƚŚĞ&zϭϵďƵĚŐĞƚďǇĂĐƚŝǀŝƚǇ͘dŚĞ ŵĂũŽƌŝƚǇŽĨĞǆƉĞŶĚŝƚƵƌĞƐƚŚŝƐǇĞĂƌĂƌĞĂƚƚƌŝďƵƚĞĚƚŽWƵďůŝĐ^ĞƌǀŝĐĞ;WƵďůŝĐtŽƌŬƐͿĞĨĨŽƌƚƐ͘ dŚĞ'ĞŶĞƌĂů&ƵŶĚŝƐƵƐĞĚƚŽĂĐĐŽƵŶƚĨŽƌĂůůĨŝŶĂŶĐŝĂůƌĞƐŽƵƌĐĞƐŽĨƚŚĞŝƚǇƚŚĂƚĂƌĞŶŽƚƌĞƋƵŝƌĞĚƚŽďĞ ƐĞŐƌĞŐĂƚĞĚŝŶƚŽĂƐĞƉĂƌĂƚĞĨƵŶĚ͘dŚĞ'ĞŶĞƌĂů&ƵŶĚŝƐƚŚĞŵŽƐƚĐŽŵƉůĞǆĨƵŶĚ͖ŝƚƌĞĐĞŝǀĞƐƚŚĞŵŽƐƚ ŶƵŵĞƌŽƵƐƐŽƵƌĐĞƐŽĨƌĞǀĞŶƵĞĂŶĚƐƵƉƉŽƌƚƐƚŚĞŚŝŐŚĞƐƚŶƵŵďĞƌŽĨĚĞƉĂƌƚŵĞŶƚƐ͘dŚĞƚĂďůĞďĞůŽǁƐŚŽǁƐ ƚŚĞ'ĞŶĞƌĂů&ƵŶĚďƌĞĂŬĚŽǁŶŽĨƚŚĞƉƌŽƉŽƐĞĚďƵĚŐĞƚďǇĚĞƉĂƌƚŵĞŶƚ͗ 'ĞŶĞƌĂů 'ŽǀĞƌŶŵĞŶƚ ϵй KƚŚĞƌ ϭϮй WƵďůŝĐ^ĂĨĞƚǇ ϭϱй WƵďůŝĐ^ĞƌǀŝĐĞƐ ϱϮй WƵďůŝĐtĞůĨĂƌĞ ϭϮй ƉƉƌŽƉƌŝĂƚŝŽŶƐďǇdǇƉĞ ŝƚǇƚƚŽƌŶĞǇ ϰй ŝƚǇŽŵŵŝƐƐŝŽŶ ϭй ŝƚǇDĂŶĂŐĞƌ ϱй ĐŽŶŽŵŝĐ ĞǀĞůŽƉŵĞŶƚ ϭй&ĂĐŝůŝƚŝĞƐ DĂŶĂŐĞŵĞŶƚ ϲй &ŝŶĂŶĐĞ ϯй &ŝƌĞ ϮϬй ,ƵŵĂŶZĞƐŽƵƌĐĞƐ Ϯй/ŶĨŽƌŵĂƚŝŽŶ dĞĐŚŶŽůŽŐǇ ϰй >ŝďƌĂƌǇ ϲй DƵŶŝĐŝƉĂůŽƵƌƚ Ϯй EŽŶͲĞƉĂƌƚŵĞŶƚĂů ϯй WĂƌŬƐĂŶĚ ZĞĐƌĞĂƚŝŽŶ ϭϱй WŽůŝĐĞ Ϯϴй 'ĞŶĞƌĂů&ƵŶĚƉƉƌŽƉƌŝĂƚŝŽŶďǇĞƉĂƌƚŵĞŶƚ 6 190 Reserves dŚĞ&zϭϵďƵĚŐĞƚŚĂƐĂƌĞĚƵĐƚŝŽŶŝŶƚŽƚĂůĨƵŶĚďĂůĂŶĐĞƐŵĂŝŶůǇĚƵĞŝŶĨƌĂƐƚƌƵĐƚƵƌĞŶĞĞĚƐĂŶĚƚŽƚŚĞƵƐĞŽĨŽŶĞͲ ƚŝŵĞŵŽŶŝĞƐĨƌŽŵƚŚĞƉƌŝŽƌǇĞĂƌ͘dŚĞ'ĞŶĞƌĂů&ƵŶĚƌĞƐĞƌǀĞǁŝůůŵĂŝŶƚĂŝŶŝƚƐƌĞƋƵŝƌĞĚŵŝŶŝŵƵŵŽĨϭϲ͘ϲϳйŽĨĂŶŶƵĂů ƌĞǀĞŶƵĞƐ͘/Ŷ^ƉĞĐŝĂůZĞǀĞŶƵĞĂŶĚŶƚĞƌƉƌŝƐĞĨƵŶĚƐ͕ĞĨĨŽƌƚƐŚĂǀĞďĞĞŶŵĂĚĞƚŽŵĂŝŶƚĂŝŶĂƌĞĂƐŽŶĂďůĞĨƵŶĚďĂůĂŶĐĞ ďĂƐĞĚŽŶƚŚĞŽƉĞƌĂƚŝŶŐĐŽŶĚŝƚŝŽŶƐĂŶĚĐŝƌĐƵŵƐƚĂŶĐĞƐŽĨƚŚĞĨƵŶĚ͘dŚŝƐǇĞĂƌ͕ŝƚŝƐƌĞĐŽŵŵĞŶĚĞĚƚŽŝŶĐƌĞĂƐĞĨƵŶĚ ďĂůĂŶĐĞƐŝŶ^ƚƌĞĞƚDĂŝŶƚĞŶĂŶĐĞ;ǁŚŝĐŚŚĂǀĞŽĐĐĂƐŝŽŶĂůůǇďĞĞŶďƵĚŐĞƚĞĚƚŽĂŶĞŐĂƚŝǀĞďĂůĂŶĐĞͿ͕ĂŶĚŝŶdƌĞĞ DĂŝŶƚĞŶĂŶĐĞĨŽƌĂŶĞƋƵŝƉŵĞŶƚƌĞƐĞƌǀĞ͘tĞŚĂǀĞƉůĂŶŶĞĚƚŽŝŶĐƌĞĂƐĞĚ^ŽůŝĚtĂƐƚĞ͛ƐĨƵŶĚďĂůĂŶĐĞƚŽďĞĂďůĞƚŽ ĂĚũƵƐƚƚŽĂŶǇƉƌĞƐƐƵƌĞƐĨƌŽŵƚŚĞŵĂƌŬĞƚďĞĐĂƵƐĞŝƚŝƐŶŽƚƚŚĞŽŶůǇƐĞƌǀŝĐĞƉƌŽǀŝĚĞƌŝŶƚŚĞŝƚǇ͘ CitizenImpact ƚǇƉŝĐĂůƌĞƐŝĚĞŶƚŝĂůƉƌŽƉĞƌƚǇŽǁŶĞƌǁŽƵůĚƐĞĞƚĂǆĞƐĂŶĚĂƐƐĞƐƐŵĞŶƚƐ͕ŶŽƚŝŶĐůƵĚŝŶŐtĂƚĞƌĂŶĚ^ĞǁĞƌƌĂƚĞ ĐŚĂŶŐĞƐ͕ŽĨΨϱ͘ϬϵĨŽƌƚŚĞǇĞĂƌ͕ŽƌΨϬ͘ϰϮƉĞƌŵŽŶƚŚ͘dŚĞƚǇƉŝĐĂůƌĞƐŝĚĞŶƚŝƐĐĂůĐƵůĂƚĞĚƵƐŝŶŐϳ͕ϱϬϬƐƋĨƚůŽƚĂŶĚƚŚĞ ŵĞĚŝĂŶŚŽŵĞŽĨΨϮϵϮ͕ϬϬϬ͗ Conclusion /ŶĐůŽƐŝŶŐ͕ǁĞƌĞƐƉĞĐƚĨƵůůǇƐƵďŵŝƚƚŚĞ&zϭϵŝƚǇDĂŶĂŐĞƌ͛ƐZĞĐŽŵŵĞŶĚĞĚƵĚŐĞƚĨŽƌƚŚĞŽŵŵŝƐƐŝŽŶ͕ĞŵƉůŽǇĞĞƐ͕ ƌĞƐŝĚĞŶƚƐĂŶĚƚĂǆƉĂǇĞƌƐŽĨƚŚĞŝƚǇƚŽƌĞǀŝĞǁ͘tĞĂƌĞƚŚĂŶŬĨƵůƚŽƚŚĞŽŵŵŝƐƐŝŽŶ͕ĐŽŵŵƵŶŝƚǇŵĞŵďĞƌƐĂŶĚƐƚĂĨĨ ǁŚŽƉĂƌƚŝĐŝƉĂƚĞĚŝŶƚŚĞŵĂŶǇƉƌŽĐĞƐƐĞƐƚŚĂƚƌĞƐƵůƚĞĚŝŶƚŚŝƐZĞĐŽŵŵĞŶĚĞĚƵĚŐĞƚ͘^ƚĂĨĨƐƉĞŶƚŵĂŶǇŚŽƵƌƐ ĚŝƐĐƵƐƐŝŶŐ ƚŚĞ ^ƚƌĂƚĞŐŝĐ WůĂŶ͕ ǁŚŝĐŚ ŚĞůƉĞĚ ŐƵŝĚĞ ŽƵƌ ƉƌŝŽƌŝƚŝĞƐĨŽƌ&zϭϵ͕ĂŶĚǁĞďĞůŝĞǀĞƚŚĂƚƚŚĞ&zϭϵ ZĞĐŽŵŵĞŶĚĞĚƵĚŐĞƚǁŝůůĂůůŽǁƵƐƚŽĐŽŶƚŝŶƵĞƚŽŽƉĞƌĂƚĞĂŶĚĂĚǀĂŶĐĞƚŚĞŝƚǇŽĨŽǌĞŵĂŶ͘ tŽƌŬŝŶŐƚŽŐĞƚŚĞƌ͕ǁĞŚĂǀĞĐŽŶƐŝƐƚĞŶƚůǇĨŽƵŶĚŝŶŶŽǀĂƚŝǀĞǁĂǇƐƚŽĚĞůŝǀĞƌƐĞƌǀŝĐĞƐĂŶĚŝŶǀĞƐƚŝŶŽƵƌĐŽŵŵƵŶŝƚǇŝŶ ĨŝƐĐĂůůǇƌĞƐƉŽŶƐŝďůĞǁĂǇƐ͘tĞĂƌĞĂƌĞƐŝůŝĞŶƚ͕ĞŶƚĞƌƉƌŝƐŝŶŐĂŶĚĐƌĞĂƚŝǀĞĐŽŵŵƵŶŝƚǇ͘dŚĞ&zϭϵZĞĐŽŵŵĞŶĚĞĚ &zϭϴƉƉƌŽǀĞĚ &zϭϵ ZĞĐŽŵŵĞŶĚĞĚ &zϭϵ ZĞĐŽŵŵĞŶĚĞĚ ŝŶĐƌĞĂƐĞ й ŚĂŶŐĞ ^ƚƌĞĞƚƐƐĞƐƐŵĞŶƚ ϭϵϴ͘ϬϮ ϮϬϳ͘ϵϮ ϵ͘ϵϬ ϱ͘Ϭй ƌƚĞƌŝĂů^ƚƌĞĞƚƐƐĞƐƐŵĞŶƚ ϲϵ͘ϭϭ ϱϭ͘ϳϴ ;ϭϳ͘ϯϯͿ ͲϮϱ͘ϭй dƌĞĞ;&ŽƌĞƐƚƌǇͿƐƐĞƐƐŵĞŶƚ ϮϮ͘ϰϴ Ϯϯ͘ϲϭ ϭ͘ϭϯ ϱ͘Ϭй WƌŽƉĞƌƚǇdĂǆĞƐ ϳϭϭ͘ϭϬ ϳϮϮ͘ϰϵ ϭϭ͘ϯϵ ϭ͘ϲй ^ƚŽƌŵtĂƚĞƌ^ĞƌǀŝĐĞƐ ϳϬ͘ϵϮ ϳϬ͘ϵϮ Ͳ Ϭ͘Ϭй tĂƚĞƌ^ĞƌǀŝĐĞ ϱϭϲ͘Ϯϰ d d ^ĞǁĞƌ^ĞƌǀŝĐĞƐ ϲϬϲ͘ϳϮ d d ϱ͘ϬϵΨ Ϭ͘ϰϮΨ dŽƚĂůŶŶƵĂů/ŶĐƌĞĂƐĞWĞŶĚŝŶŐtĂƚĞƌͬ^ĞǁĞƌƌĂƚĞƐ DŽŶƚŚůǇ/ŶĐƌĞĂƐĞ 7 191 ƵĚŐĞƚŝƐĂŶĂĐŚŝĞǀĂďůĞƉůĂŶƚŽƉƌŽǀŝĚĞĞĨĨŝĐŝĞŶƚĂŶĚĞĨĨĞĐƚŝǀĞƐĞƌǀŝĐĞƐĂŶĚƚŽĂĐŚŝĞǀĞƚŚĞŽŵŵŝƐƐŝŽŶ͛ƐǀŝƐŝŽŶĂŶĚ ƉƌŝŽƌŝƚŝĞƐƐĞƚŽƵƚŝŶƚŚĞ^ƚƌĂƚĞŐŝĐWůĂŶĨŽƌƚŚĞŝƚǇŽĨŽǌĞŵĂŶ͘ ZĞƐƉĞĐƚĨƵůůǇ͕ Andrea Surratt͕ŝƚǇDĂŶĂŐĞƌ͕ Anna Rosenberry͕ƐƐŝƐƚĂŶƚŝƚǇDĂŶĂŐĞƌ Kristin Donald͕&ŝŶĂŶĐĞŝƌĞĐƚŽƌ 8 192 FISCAL YEAR 2019 City Manager Recommended Budget FOR FISCAL YEAR 2019 JULY 1, 2018 TO JUNE 30, 2019 CITY OF BOZEMAN, MONTANA 193 TABLE OF CONTENTS EXECUTIVE SUMMARY CITY MANAGER’S BUDGET MESSAGE 1 BUDGET SUMMARY 9 BACKGROUND 10 CITY STRUCTURE 11 CORE VALUES 11 CITY VISION AND STARTEGIC GOALS 11 BUDGET PROCESS 13 FUNDING STRUCTURE 13 BUDGET POLICIES 15 FINANCIAL AND RESERVE POLICIES 16 AWARDS AND ACCOMPLISHMENTS 17 FY2019 BUDGET SUMMARY 17 FUND SUMMARIES 27 GENERAL FUND 28 SPECIAL REVENUE FUNDS 32 DEBT SERVICE FUNDS 45 CONSTRUCTION FUNDS 46 ENTERPRISE FUNDS 51 INTERNAL SERVICE FUNDS 52 PERMENANENT FUNDS 53 SUMMARY OF ALL FUND REVENUES BY TYPE 54 SUMMARY OF ALL FUND EXPENDITURES BY TYPE 56 ACTIVITY/DEPARTMENT DETAIL 60 GENRAL GOVERNMENT CITY COMMISSION 63 CITY MANAGER 65 CITY CLERK SUSTAINABILITY NEIGHBORHOODS CITY ATTORNEY 69 FINANCE 73 FACILITIES MANAGEMENT 75 INFORMATION TECHNOLOGY 77 HUMAN RESOURCES 79 COMMUNITY DEVELOPMENT 81 MUNICIPAL COURT 83 PUBLIC SAFETY POLICE 85 FIRE 89 BUILDING INSPECTION 91 PARKING 93 PUBLIC WORKS PUBLIC WORKS ADMINISTRATION 95 STREETS 99 STORMWATER 103 WATER 105 WASTEWATER 109 SOLID WASTE & RECYCLING 113 VEHICLE MAINTENANCE 115 PUBLIC WELFARE PARKS & RECREATION 117 LIBRARY 121 ECONOMIC DEVELOPMENT 125 OTHER NON‐DEPARTMENTAL 127 CAPITAL EXPENDITURES SUMMARY FY 2019‐CAPITAL IMPROVEMENT PLAN BUDGET 133 APPENDICES STATISTICAL SECTION 141 FISCAL POLICIES 145 GLOSSARY OF KEY TERMS 153 195 Executive Summary 197 May 14, 2018 Bozeman City Commission: We are pleased to present to you the Proposed Budget for Fiscal Year 2018‐2019 (FY19). This budget represents the thoughtful work of dozens of people in developing the spending plan for our organization for the coming fiscal year. Bozeman is a vital, growing and changing city. This year, we have focused on equipping the organization to cope with our community’s continued rapid growth and have incorporated the City’s new Strategic Plan into the budget. The FY19 recommended budget proposes an annual increase for the typical resident of $5.09, or $0.42 per month. This is amount does not include Water and Sewer rate changes. Water and Sewer rates are likely to change according to a cost‐of‐service rate study that the City is performing. The consultant will propose those rate changes to the Commission in July. Continued Growth – Our community’s most recent evidence of continued growth includes the US Census data showing an estimated population increase of 4.4% this year, on top of the 4.3% increase for last year. We see strong building permit activity and increased traffic counts and congestion on City streets. Much of our budget recommendation is made in response to the prolonged growth that Bozeman continues to experience. In order to maintain service levels and perform the work necessary to accomplish our Strategic Plan action items, we must expand our staff in a few key areas. 2018 Strategic Plan Adoption – On April 16, 2018 the City adopted its first Strategic Plan. This accomplishment significantly informs the recommendations found in the FY19 budget. The full plan can be found at https://www.bozeman.net/city‐ projects/bozeman‐strategic‐plan. The Commission has also adopted seven priorities from the Strategic Plan that have been included in our budget recommendation. Engaged Community: Vision Statement 1 The City’s first Communications Coordinator position, initially funded in FY18, plays a key role in our community engagement efforts in FY19. This position will significantly advance our work to foster a culture of civic engagement by creating a detailed communication plan for the organization, expand outreach to the community, and oversee a citizen engagement process. Communication and outreach is one of the seven priorities for this fiscal year. Innovative Economy: Vision Statement 2 Several Strategic Plan action items, that can also be found in the 2016Economic Development Strategy, will be implementing through the ongoing work of the Economic Development Department this year. 1 199 Safe, Welcoming Community: Vision Statement 3 The Bozeman Public Safety Facility is a safety‐related priority for the FY19; we will work towards supporting high quality public safety facilities and emergency preparedness by resolving the current Police, Fire, Prosecution and Courts spaced needs now and into the future. Well‐Planned City: Vision Statement 4 To consistently improve our community’s quality of life as it grows, the priorities of Planning and Land Use Initiatives and Annexation Analysis and Study are included in this year’s efforts. For FY19, we will be conducting studies in these areas to ensure we grow in a responsible manner. We will also be enhancing our affordable housing program to further the FY19 Affordable Housing priority, by using one‐time monies from the General Fund. We are recommending in the FY19 budget to transfer the equivalent of two mills, $210,488, to the Workforce Housing fund for affordable housing projects. Included in this budget is the last phase of the consultant work for creation of a Parks Maintenance District. This work will give the Commission information on the possible paths toward defining a different funding source for park maintenance city‐wide. Creative, Learning Culture: Vision Statement 5 We plan to partner with MSU, utilizing their student and faculty population to accomplish some strategic plan action items through college‐level class assignments. This will be a new partnership for education and learning between the City and the University that has not existed in the past. Sustainable Environment: Vision Statement 6 Most notable in our sustainability efforts is the Climate Action & Resiliency Plan that we plan to begin in FY19. High Performance Organization: Vision Statement 7 Maintaining the City’s current levels of service and implementing action items in the Strategic Plan requires the additional staff that has been recommended in this budget. Key among them include civilian positions to support the Police Department according to the recommendations from the Police Staffing Plan, a plan review engineer to assist with workload created by development permitting, and a SCADA (Supervisory control and data acquisition) Systems Manager for the Wastewater Division of Public Works. 2019 Budget Proposal Revenues Tax With the growth of the City, expected service levels, and the strategic plan initiatives, it is necessary to increase the mill levy. This is recommended as we address the needs of the expanding City while striving to fund ongoing operations with sustainable revenues. In total, our Recommended Budget levies 190.33 mills on all taxable property within City limits. 2 200 This is be a three‐mill increase over the previous year. To calculate property tax revenues, a 4% growth rate is assumed from new construction, leaving the estimated value of a mill at $105,244. The total annual property tax for the median home is estimated to be $736.39, a $5.09 increase from FY18. Assessments City property owners pay an annual street maintenance, arterial street, and tree maintenance assessment based on the square footage of the lot they own. This funding goes towards the Street Division, arterial capital projects and to support Forestry Division. In order to keep streets in repair the streets assessments needs a 5% increase. The Tree assessment also needs a 5% increase. Last session, the Montana Legislature passed House Bill 473, which authorized a 4.5 cent increase in the gas tax which went into effect on July 1, 2017. As a result, the arterial and collector assessment can be reduced by 28%. In total, the FY19 budget proposal includes a $12.92 reduction in special assessments for the average sized lot. The following is a breakdown of the assessments and their impact on residential lots: 3 201 Charges for Services Recently, the Commission has adopted new fee structures and increases to our charges for services. The Parks and Recreation Department had fee structure changes and Cemetery Fee increases which will increase revenue. The new short‐term rentals license, simplified business license fee, and planning fee adjustment were Community Development fee changes approved this year. Utility Rates The City is currently undergoing a rate study for both water and sewer systems. For the FY19 recommended budget, rate changes have not yet been included. Presentation of the studies should occur during the later part July and finalized rate changes will be presented in resolutions to be adopted in late July or early August. Due to the adequacy of current revenues, we are not recommending a Stormwater rate increase this year. Expenditures Staffing In order to take a strategic approach to staffing, we are developing a three‐year plan to address staffing levels across all departments in the organization. This is the first year of the plan, and we have focused on critical need areas to help us maintain service levels while addressing specific projects in the recently adopted Strategic Plan. The table below show that we are recommending a total increase of 10.85 Full‐ Time Equivalent (FTE) positions in this budget. Lot Size FY17 Approved Increases Streets 15%, Trees 15% Arterial Street 90% FY18 Approved Increases Streets 17%, Trees 15% Arterial Street 63% FY19 Recommended Changes Streets 5%, Trees 5% Arterial Street (‐28%) Small ‐ 5,000 sgft Streets 112.81 131.99 138.59 Trees 13.03 14.98 15.73 Streets Arterial & Collector 28.27 46.64 34.52 154.11 193.61 188.84 Average= 7,500 sqft Streets 169.24 198.02 207.92 Trees 19.55 22.48 23.61 Streets Arterial & Collector 42.4 69.11 51.78 231.19 289.61 283.31 Large= 10,000 sgft Streets 225.66 264.02 272.22 Trees 28.34 28.34 31.48 Streets Arterial & Collector 55.54 93.29 69.03 309.54 385.65 372.73 4 202 Our budget recommendation adds 3.5 FTE and 4.5 FTE in th General Government and Public Services (Public Works) areas respectively. We are also recommending adding 2.85 FTE in Public Safety areas. The specific position titles are described in the following table. Operating Budgets Many factors have caused changes in operational budgets. These changes vary by fund. Growth, inflation, capital projects, and Strategic Plan priorities have influenced increases in operating costs. For FY 19 operational costs are $36 million, which is a 6% increase from FY18 of $34 million. This increase is in many areas and throughout most departments. There are contracted services for studies relating to the strategic plan and increases in contract renewals. Capital FY19 has over $34.5 million in capital expenditures, which is a 32% increase over FY18 of $26million. There are large sewer capacity projects that aid in the School District’s efforts in building a new High school. These infrastructure projects are the Davis Lift Station and the Front Street Interceptor and will require financing in order to be completed for a total of just under $8 million. With these two capacity efforts there are Street Impact Fee and Arterial Collector shared projects to fund the building of the roads surrounding the new high school. Beyond major projects, there is planned road maintenance, vehicle replacements and building improvements. Current FY18 Recommended Changes FY19 FY19 Total General Government 71.30 3.50 75.80 Public Safety 144.20 2.85 147.05 Public Services 120.25 4.50 123.75 Public Welfare 80.48 ‐ 80.73 Total 416.23 10.85 427.33 Net FTE % Increase From Pervious Year 2.61% Department FTE Position 1.00 Administrative Assistant II 1.00 Code Compliance Program Manager Information Technology 1.00 System Administrator I Human Resources 1.00 Human Resource Generalist 1.00 Police Information Generalist 0.60 Animal Control Officer (full Time) (.40 + .60 = 1 FTE) Fire 1.00 Building/Life Safety Specialist 1.00 Lead Billing Clerk 1.00 Engineer I Streets 0.75 Service Worker Streets (1 FTE ‐.25 short term= .75) Water 0.50 Controls Integrator Technician (1 FTE ‐ .5 Service worker= .50) Wastewater 1.00 Scada Manager Police Public Works Administration/Engineering Community Development 5 203 Total Budget The chart below illustrates the total appropriations recommended in the FY19 budget by activity. The majority of expenditures this year are attributed to Public Service (Public Works) efforts. The General Fund The General Fund is used to account for all financial resources of the City that are not required to be segregated into a separate fund. The General Fund is the most complex fund; it receives the most numerous sources of revenue and supports the highest number of departments. The table below shows the General Fund breakdown of the proposed budget by department: General Government 9% Other 12% Public Safety 15% Public Services 52% Public Welfare 12% Appropriations by Type City Attorney 4% City Commission 1% City Manager 5% Economic Development 1%Facilities Management 6%Finance 3% Fire 20% Human Resources 2%Information Technology 4% Library 6% Municipal Court 2% Non‐Departmental 3% Parks and Recreation 15% Police 28% General Fund Appropriation by Department 6 204 Reserves The FY19 budget has a reduction in total fund balances mainly due infrastructure needs and to the use of one‐ time monies from the prior year. The General Fund reserve will maintain its required minimum of 16.67% of annual revenues. In Special Revenue and Enterprise funds, efforts have been made to maintain a reasonable fund balance based on the operating conditions and circumstances of the fund. This year, it is recommended to increase fund balances in Street Maintenance (which have occasionally been budgeted to a negative balance), and in Tree Maintenance for an equipment reserve. We have planned to increased Solid Waste’s fund balance to be able to adjust to any pressures from the market because it is not the only service provider in the City. Citizen Impact A typical residential property owner would see taxes and assessments, not including Water and Sewer rate changes, of $5.09 for the year, or $0.42 per month. The typical resident is calculated using 7,500sqft lot and the median home of $292,000: Conclusion In closing, we respectfully submit the FY19 City Manager’s Recommended Budget for the Commission, employees, residents and taxpayers of the City to review. We are thankful to the Commission, community members and staff who participated in the many processes that resulted in this Recommended Budget. Staff spent many hours discussing the Strategic Plan, which helped guide our priorities for FY19, and we believe that the FY19 Recommended Budget will allow us to continue to operate and advance the City of Bozeman. Working together, we have consistently found innovative ways to deliver services and invest in our community in fiscally responsible ways. We are a resilient, enterprising and creative community. The FY19 Recommended FY18 Approved FY19 Recommended FY 19 Recommended increase % Change Street Assessment 198.02 207.92 9.90 5.0% Arterial Street Assessment 69.11 51.78 (17.33) ‐25.1% Tree (Forestry ) Assessment 22.48 23.61 1.13 5.0% Property Taxes 711.10 722.49 11.39 1.6% Storm Water Services 70.92 70.92 ‐ 0.0% Water Service 516.24 TBD TBD Sewer Services 606.72 TBD TBD 5.09$ 0.42$ Total Annual Increase Pending Water/ Sewer rates Monthly Increase 7 205 Budget is an achievable plan to provide efficient and effective services and to achieve the Commission’s vision and priorities set out in the Strategic Plan for the City of Bozeman. Respectfully, Andrea Surratt, City Manager, Anna Rosenberry, Assistant City Manager Kristin Donald, Finance Director 8 206 Budget Summary 9 207 Budget Summary Municipal budgets serve a number of important functions. In addition to laying out a spending plan for the city, allocating resources to meet the diverse needs of the community, Bozeman’s budget:  Is a principal policy and management tool for the city’s administration, reflecting and defining the annual work program;  Provides a framework for the city to accomplish its vision and strategic plan; and  Reflects core city values of integrity, leadership, service, and teamwork. This Budget Summary provides information about the city, along with information about the budget process, revenues, expenditures, and city programs and services. It is intended to provide an accessible, transparent way of learning about the city budget, while accurately showing how the city invests its resources. Background The City of Bozeman is located on the eastern slope of the Rocky Mountains and is the county seat of Gallatin County, Montana. Gallatin County encompasses over 2,500 square miles, bordering Yellowstone National Park to its south. The City encompasses an area over 18 square miles with its next‐closest municipality being the City of Belgrade, approximately 7 miles from our outermost boundary. Bozeman is located 143 miles west of Billings and 200 miles east of Missoula. Named after one of its early settlers, John Bozeman, the Town was incorporated in 1874 and declared a city in 1883 before Montana was admitted into the United State in 1889. Bozeman is home to Montana State University – Bozeman and the Fighting Bobcats. The local newspaper is the Bozeman Daily Chronicle, and the City is served by Bozeman Yellowstone International Airport at Gallatin Field. Today, Bozeman is the fourth largest city in the state and is the principal city of the Bozeman micropolitan area, which consists of all of Gallatin County. The City is named after John M. Bozeman, founder of the Bozeman Trail. Located in the fastest‐growing county in the state, Bozeman was elected an All‐American City in 2001 by the National Civic League. Bozeman residents are known as Bozeman‐ites. The City has seen large amounts of growth in the last five years going from a population of under 40,000 to over 45,000. The average age is 27.7 and 56.5% of the population has Bachelor’s Degree or Higher. Currently, the unemployment rate is 2.8% and per capita income is $26,506. The top three major employers are Bozeman Deaconess Hospital, Oracle America and Bozeman School District #7. 10 208 City Structure The Bozeman City Commission is composed of four members elected by the voters of the city at large in accordance with the City Charter, and a mayor elected as provided in Montana Code Annotated. At every regular city election, the voters of the city shall elect a mayor at large for a term of four years. The person so elected shall serve as deputy mayor and a commissioner for the first two years of his or her term, and mayor for the balance of his or her term of office. The City Manager is selected by, and reports to the City Commission. The City Manager's office is responsible for over‐seeing City staff and completing tasks as directed by the City Commission. Core Values City Commission Resolution No. 3832 adopted the City’s core values in 2005. They were developed through extensive discussions the City Manager had with staff groups from all departments including department directors. These core values are what create the culture of our organization. City Vision and Strategic Goals The City recently adopted goals to develop a five‐year Strategic Plan and revised its vision. The Plan has been the subject of numerous citizen engagement efforts and public meeting discussions. The plan was adopted in spring 2018. Below are the vision and vision statements adopted by the Commission May 15, 2017, that is the start of the plan: Vision Bozeman remains a safe, inclusive community, fostering civic engagement and creativity, with a thriving diversified economy, a strong environmental ethic, and a high quality of life as our community grows and changes. Integrity •Be honest, hardworking, reliable and accountable to the public. Leadership •Take initiative, lead by example, and be open to innovative ideas. Service •Work unselfishly for our community and its citizens. Teamwork •Respect others, welcome citizen involvement, and work together to achieve the best result. City of Bozeman Citizens Mayor ‐ Cyndy Andrus Deputy Mayor‐ Chris Mehl Commissioner‐ Terry Cunningham Commissioner‐ I‐Ho Pomeroy Commissioner‐ Jeff Krauss Municipal Judge City Manager‐ Andrea Surratt City Departments 11 209 Strategic Vision Statements: 1) An Engaged Community. We foster a culture of engagement and civic leadership based on innovation and best practices involving community members of all backgrounds and perspectives. 2) An Innovative Economy. We grow a diversified and innovative economy leveraging our natural amenities, skilled and creative people, and educational resources to generate economic opportunities. 3) A Safe, Welcoming Community. We embrace a safe, healthy, welcoming and inclusive community. 4) A Well‐Planned City. We maintain our community's quality of life as it grows and changes, honoring our sense of place and the 'Bozeman feel' as we plan for a livable, affordable, more connected city. 5) A Creative, Learning Culture. We expand learning, education, arts, expression and creativity for all ages. 6) A Sustainable Environment. We cultivate a strong environmental ethic, protecting our clean air, water, open spaces and climate, and promote environmentally sustainable businesses and lifestyles. 7) A High Performance Organization. We operate as an ethical, high performance organization anticipating future needs, utilizing best practices, and striving for continuous improvement. FY2019 Goals The action items adopted in the plan in spring 2018 were prioritized. The goals set for 2019 are listed below: 1. Community Outreach 2. Affordable Housing 3. Planning and Land Use Initiatives 4. Annexation Analysis and Study 5. Parks Maintenance District 6. Partnerships for Education and Learning 7. Law & Justice Center Project FY2019 Economic Factors The population of City has been growing over the last ten years. There were 738 total new housing units built in 2017. Since 2007, the City has annexed 1,064.9 acres. This growth has increased the need for City services and infrastructure. Consumer Price index has grown over the last 10 years for the united State and particularly for the Western States. The Consumer Price Index has grown 2.11% and for the Western States, which we base our living wage on has grown by 3.88%. For FY18 the three average change was 1.2% while FY19 is showing 1.64% three average change in CPI‐U. See Appendix A for more statistical details about the City’s demographics and tax base. 12 210 Budget Process The City plans for the long‐term needs of our community through a number of efforts and studies. These documents are usually developed by consultants and staff, with numerous public hearings and advisory board meetings prior to their formal adoption by the Commission. Once adopted, we work diligently to implement the recommendations and changes outlined in the plans. The starting point is the Strategic plan and then the other master plans that have been developed for each section. Along with these documents, the capital improvement plan is used for the budget capital budgets. The following chart outlines our process and timing for the budget: Funding Structure To better understand this budget document a basic understanding of the structure, often‐used terms, and fund types is helpful. The City’s operating expenditures are organized in to the following hierarchical categories: Activities, Departments, Divisions, and Budget Units. Activity: Activity represents the highest level of summarization used in the City’s financial structure. This level is primarily used for entity‐wide financial reporting and for summarization in this budget document. Department: Department is the second level of summarization used in the City’s financial structure. The function classification represents a grouping of related operations and programs aimed at accomplishing a broad goal or providing a major service. Division: Department can be further split into divisions which are usually associated with functioning work groups that have more limited sets of work responsibilities. Their primary purpose is organizational and budgetary accountability. Budget Unit: Divisions may be further subdivided into budget units. A budget unit is used to account for a specific service performed within a division in the pursuit of individual goals and objectives. A budget unit is aimed at accomplishing a specific service or regulatory program for which a government is responsible. December Capital Improvement Plan is adopted and is based on department master plans, citizen engagement, advisory boards and the strategic plan January ‐ February Commission evaluates the strategic plan and goals from the up coming years. ** FY19 this occured in April with Adoption of the new Startegic Plan February ‐ April Staff develop budgets and revenue projections. The City Manager reviews and prepares proposed budget May‐June The City Manager provides to the commission the proposed budget for adoption. 13 211 For example, to account for the expenses of constructing a new Wastewater Treatment Plant the City uses the following financial structure: Funds: The activities are funded through various ways that are accounted for by specific funds. The City has a comprehensive fund plan for financial accounting in accordance with the provisions of the recommendations of the National Council on Governmental Accounting as outlined in their publication Governmental Accounting, Auditing, and Financial Reporting (GAAFR), which is the standard accounting guide for local governments. Governmental funds are a group of funds that account for activities associated with the City's basic operations. This group of funds uses a modified accrual basis of accounting and focuses on operating revenues and expenditures. General Fund: The General Fund is used to account for all financial resources of the City, except for those required to be accounted for in another fund. The General Fund supports such basic services as the Legislative Branch, Judicial Branch, General Administration, Police, Fire, Finance, Engineering, Recreation, and Library services. The City's General Fund is financed primarily by property taxes, which provide nearly half of the General Fund revenue. Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or for major capital projects) that are legally restricted to expenditure for specific purposes. Debt Service Funds: Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long‐term debt principal and interest. Capital Project Funds: Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). Proprietary Fund Types Proprietary funds are a group of funds that account for activities that are often seen in the private sector and are operated in a similar manner as in the private sector. This group of funds uses a full accrual basis of accounting and focuses on net income and capital maintenance. Activity: Public Service Department: Wastewater Plant Division: Operations Budget Unit: Construction Bozeman Fund Structure Overview Governmental Funds General Fund Special Revenue Funds Debt Service Capital Project Proprietary Funds Enterprise Funds Fiduciary Funds 14 212 Internal Service Funds: Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments on a cost‐reimbursement basis. Enterprise Funds: Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises‐‐where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Fiduciary Fund Types Fiduciary funds are trust and agency funds that account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, or other funds. These include expendable trust funds, non‐ expendable trust funds, pension trust funds, and agency funds. Trust Funds: Trust Funds are used to account for assets held by a governmental unit in a trustee capacity. These include (a) expendable trust funds, (b) permanent trust funds, and (c) pension trust funds. Trust Funds are supported by donations and interest income. Budget Policies State statute provides the “Local Government Budget Act” in MCA 7‐6‐4001. This section of the law was adopted by the 2001 Legislature to replace the “Municipal Budget Law” and other various sections of code that related to city finances. See detailed budget and fiscal policies in Appendix B. The new law limits the amount of expenditures to approved appropriations, requires reporting to the State after final budgets and tax levies are adopted, and provides for a detailed preliminary and final budget adoption within the confines of the State determined property tax assessment time‐table. The Budget must be “balanced”, while the City Charter permits the City to use fund balance as a resource to balance the budget. Fund balance should not be used as a long‐term approach to balancing the budget. Planned uses of fund balances should be limited. It is also appropriate to use fund balance when fund balances have increased beyond the reserve requirements due to higher than anticipated revenues. In this circumstance, the use of fund balances will be used for one‐time expenditures, not ongoing operating costs. In all circumstances, it is important to retain sufficient undesignated fund balance for unforeseen circumstances. The City's budget encompasses both the operating budget and the capital improvement budget. Each budget unit includes amounts appropriated for both operating expenses and capital items Basis of Budgeting The basis of budgeting and accounting refers to when a transaction or related event is recognized in an agency’s budget, or in the operating statement, both of which follow GAAP principles. All governmental funds (including the general, special revenue, debt service and capital projects funds) use modified accrual as both the basis of budgeting and for accounting/financial reporting. Under the modified accrual system, revenues are recognized in the accounting period in which they become “measurable and available.” “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Property tax is reported as a receivable and deferred revenue 15 213 when the levy is certified and as a revenue when due for collection in the subsequent year. An allowance for estimated uncollectible taxes is included in the estimated tax needed to balance the budget. The basis of accounting for proprietary funds is full accrual, where revenues are recognized when earned and expenditures when they are incurred. The basis of budgeting for proprietary funds is full accrual with the exceptions of depreciation and amortization. For capital assets and capital purchases, funds are budgeted from a perspective of the actual cash outlay required (cash basis). Financial and Reserve Polices The following financial policies are established to provide direction in the fulfilling of duties and responsibilities in the City of Bozeman. The following is a summary of the policies that have a direct impact on the budget process, a complete listing of Fiscal Policies to be adopted with the budget are in Appendix B. Long‐range Planning The City needs to have the ability to anticipate future challenges in revenue and expense imbalances so that corrective action can be taken before a crisis develops. To provide city officials with pertinent data to make decisions for multi‐year policy direction, the Finance Director prepares revenue and expenditure forecasts. These forecasts will identify changes in revenue and expenditures due to projected new development in the City, program changes, collective bargaining agreements, asset replacement schedules and capital projects coming online. Capital Planning, and Asset Inventory and Condition Assessment The City annually prepares it Capital Improvement Program to plan capital projects and equipment need for a five‐ year period. The plan is done on the fund basis and reviews all capital needs greater than $10,000. The plan can be found on the city website at: https://www.bozeman.net/Home/ShowDocument?id=5473 Revenue Policies The City values a diversified mix of revenue sources to mitigate the risk of volatility. The major source of revenue for the General Fund is property tax, which comprises 56% percent of total General Fund revenue in 2019. Since property values are impacted by the economy and housing market, it is important to make every effort to improve the diversity of the City’s revenue sources. Tax dollars should support essential city services that benefit and are available to everyone in the community (such as parks, police and fire protection). For services that largely or solely benefit individuals, the City should recover full or partial costs of service delivery through user fees. Use of One‐time and Unpredictable Revenues ‐ One‐time revenues should be used only for one‐time expenditures and not for ongoing expenditures. By definition, one‐time revenues cannot be relied on in future budget years. Appropriate uses of one‐time revenues include early debt retirement, capital expenditures that will reduce operating costs or address deferred capital needs, and special projects that will not incur ongoing operating costs. 16 214 Expenditure Policies Expenses should always be for City operations and strategic goals. Department heads and the Finance Department monitor expenditures. All must comply with City laws, rules and regulations and have proper support and authorization. Debt Capacity, issuance and management The City shall evaluate and consider the following factors in analyzing, reviewing and recommending the issuance of obligations before presenting a proposal to the Commission and voters as needed: 1. Purpose, feasibility and public benefit of the project 2. Impact on debt ratios generally applied by rating agencies 3. Availability of appropriate revenue stream(s) 4. Aggregate debt burden upon the City's tax base, including other entities' tax supported debt 5. Analysis of financing and funding alternatives, including available reserves from other City funds Awards and Accomplishments The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Budget Presentation to the City of Bozeman for its annual budget for the fiscal year beginning July 1, 2017. The City has received this award for each budget it has prepared in the past 27 years. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. FY 2019 Budget Summary The City of Bozeman’s Fiscal year 2019 budget is showing a $12.6 million increase in revenue of 13% and increase in expenditures of about $10.3 million or 9.7%. The major factors impact revenue are is the increase in charges for services, the estimated 4% growth in tax and the additional levy of mills. FY19 has over $34.5 million in capital expenditures, which is a 32% increase over FY18 of $26 million the major expenditure increase affecting the 2019 are large sewer capacity projects that aid in the School District’s efforts in building a new High school. These infrastructure projects are the Davis Lift Station and the Front Street Interceptor. With these two capacity efforts there are Street Impact Fee and Arterial Collector shared projects to fund the building of the roads surrounding the new high school. Beyond major projects, there is planned road maintenance, vehicle replacements and building improvements 17 215 F2019 Financial Summary General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds Projected Beginning Fund Balance/Working Capital7,486,631$ 19,451,235$ 2,311,989$ 9,072,613$ 18,235,666$ 1,062,137$ 1,307,838$ 58,928,109$ Estimated Revenues31,855,541 26,400,443 2,406,023 284,011 38,482,224 8,467,995 88,500 107,984,737 Less Appropriations34,017,187 31,300,841 2,398,522 316,011 40,108,009 8,461,831 ‐ 116,602,401 Increase/(Decrease) in Fund Balance/Working Capital(2,161,646) (4,900,398) 7,501 (32,000) (1,625,785) 6,164 88,500 (8,617,664) Projected Ending Fund Balance/Working Capital5,324,985$ 14,550,837$ 2,319,490$ 9,040,613$ 16,609,881$ 1,068,301$ 1,396,338$ 50,310,445$ Financial SummaryFinal BudgetFiscal Year 2018‐2019General Fund30%Special Revenue24%Debt Service2%Construction Projects0%Enterprise36%Internal Service8%Permanent0%Revenue by Fund TypeGeneral Fund29%Special Revenue27%Debt Service2%Construction Projects0%Enterprise35%Internal Service7%Permanent0%Expenditures by Fund Type18216 FY2019 Estimated Mill Levies and Values FISCAL YEAR FY14 FY15 FY16 FY17 FY 18 FY19 EST MILL VALUE (net of TIFD's)85,637$ 87,894$ 86,564$ 89,325$ 101,195$ 105,244$ PERCENTAGE CHANGE 2.9% 2.6% ‐1.5% 3.2% 13.3% 4.0% GENERAL FUND: All‐Purpose 134.76 144.77 155.78 148.21 134.39 139.12 SPECIAL REVENUE: City Planning 2.002.002.002.002.002.00 Health/Med Insurance 22.57 23.18 27.11 26.40 24.48 25.22 Fire Capital & Equipment 4.00 4.00 4.00 4.00 4.00 4.00 Transfer to Stormwater ‐ Landfill Project0.001.571.621.561.380.71 Transfer to Landfill Closure ‐ Monitring0.000.000.004.003.672.38 Senior Transportation 1.001.001.001.001.001.00 Workforce Housing 0.501.003.003.003.003.00 TOTAL SPECIAL REVENUE 30.07 32.75 38.72 41.96 39.53 38.31 DEBT SERVICE: Park & Trail G.O.Bonds 0.00 8.13 12.49 12.06 10.68 10.29 Library G.O. Bonds 3.06 3.11 3.16 3.07 2.73 2.61 Transportation G.O. Bonds 5.19 0.00 0.00 0.00 0.00 ‐ TOTAL DEBT SERVICE 8.25 11.24 15.65 15.13 13.41 12.90 TOTAL ALL LEVIES 173.08 188.76 210.16 205.30 187.33 190.33 Percentage Change in Mills 3.8% 9.4% 12.4% ‐2.6% ‐8.6% 1.5% Property Taxes Levied 14,821,724$ 16,590,871$ 18,191,892$ 18,338,501$ 18,956,859$ 20,031,579$ Percentage Change in Dollars 6.8%11.9%9.7%0.8%3.4%5.7% * These funds are being combined into the All Purpose Levy. They are all subject to MCA 15‐10‐420. General Fund Reduction 1,263,330$ 1,271,667$ 363,096$ 703,800$ 705,500$ 879,840$ Police & Fire Reductions 578,525$ ‐$ ‐$ ‐$ ‐$ ‐$ 911 Mills (Resolution No. 3954)749,034$ 770,733$ 779,076$ 803,925$ 910,755$ 947,196$ Total Authorized But Not Levied 2,590,889$ 2,042,400$ 1,142,172$ 1,507,725$ 1,616,255$ 1,827,036$ Number of Mills 31.13 23.85 13.19 16.88 15.97 17.36 MILL LEVIES & MILL VALUES Tax Authority Authorized but Not Levied 19 217 FY2019 Revenues Overall, revenues have our estimated revenue as $108 million, a $13 million increase in revenue or 14%, for the City. Charges for services make up 48% of the revenues followed by taxes that make up 22%. For the General Fund taxes makeup 52% of the revenue sources followed by intergovernmental revenue. Taxes 22% Special Assessments 2% Licenses and Permits 2% Intergovernmental Revenues 9% Charges for Services 48% Fines and Forfeitures 1% Interest Income 1%Loan Payments 0% Other Revenues 1% Other Financing Sources 14% Revenues by Type‐ Total Budget Charges for Services 9% Fines and Forfeitures 4% Interest Income 0% Intergovernmental Revenues 24% Licenses and Permits Total 1% Other Financing Sources 10% Other Revenues 0% Taxes 52% Revenue by Type‐ General Fund 20 218 FY2019 Appropriations Expenditures, often called “Appropriations,” are classified under one of six major categories: Personnel & Benefits, Operating Expense, Capital, Debt Service, Transfers, and Other Financing Uses. The graph below shows the relative percentage of the FY19 budget expenditures for all funds with capital and personnel being 30%: In general, governmental agencies see their largest percentage be personnel but with our growing City, there is a need for more infrastructure. The General Fund personnel expenses are a much higher percentage with 64%. There is fewer capital items in the General Fund than all the funds as a whole. Personnel & Benefits 30% Operating 31% Captial 30% Debt Service 5% Transfers 5% Appropriations by Category‐ Total Budget Captial 6% Debt Service 0% Operating 28% Personnel & Benefits 64% Transfers 2% Appropriations by Category‐ General Fund 21 219 FY2019 Changes in Fund Balance/Working Capital Fiscal Year Projected Fund Balance/Working Capital Estimated Revnues Appropriations Budgeted Ending Fund Balance/Working Capital General Fund 10 General Fund 7,486,631 31,855,541 34,017,187 5,324,985 Special Revenue Funds 100 Planning Fund 785,972 1,294,196 1,661,194 418,974 103 Health‐Medical Insurance 349,390 2,654,566 2,654,566 349,390 108 Community Transportation 59,092 1,200 ‐ 60,292 109 Highway Safety Improvement Projects 23,242 200 ‐ 23,442 110 Gas Tax Apportionment 1,511,755 1,411,031 1,171,500 1,751,286 111 Street Maintenance District (571,288) 5,779,698 5,974,325 (765,915) 112 Tree Maintenance 313,475 737,221 799,577 251,119 113 Fire Impact Fee 1,873,002 392,363 ‐ 2,265,365 114 Street Impact Fee 2,301,838 4,342,250 6,418,000 226,088 115 Building Inspection Special Revenue 1,604,882 1,800,200 2,660,416 744,666 116 Dowtown Improvement District 1,711,289 1,870,510 1,912,000 1,669,799 119 Economic Development Loan Fund 842,750 50,000 31,000 861,750 120 Community Housing 556,409 539,720 371,858 724,271 121 Housing Revolving Loan Fund 6,496 1,285 ‐ 7,781 123 Big Sky Ec Dev Grant ‐ 50,000 50,000 ‐ 125 Drug Forfeiture 81,152 157,942 231,210 7,884 128 Fish Wildlife And Park Management Areas 12,523 150 8,000 4,673 130 Americans With Disability Act 35,938 300 ‐ 36,238 131 Beautification of Bozeman 1,000 9 ‐ 1,009 132 Bogert Park Special Revenue 17,644 6,300 5,000 18,944 133 Recreation Department Special Revenue 2,415 2,100 ‐ 4,515 135 Cemetery Department Special Revenue 2,418 20 ‐ 2,438 136 Park Department Special Revenue 2,371 2,600 ‐ 4,971 137 Library Department Special Revenue 90,896 75,100 ‐ 165,996 138 Law & Justice Center 312,375 ‐ 19,125 293,250 139 Police Department Special Revenue 308,628 14,500 ‐ 323,128 140 Police Domestic Violence 45,970 ‐ ‐ 45,970 141 Street Arterial Construction 1,515,855 1,734,907 3,568,000 (317,238) 143 TIF Midtown (formerly N7th)1,492,093 708,800 716,000 1,484,893 144 TIF NE Urban Renewal 363,225 144,800 170,600 337,425 145 TIF Mandeville Industrial (8,657) 36,097 4,000 23,440 146 Lighting Dist.'s (146‐170, 181, 182, 200‐243) 507,138 431,600 472,517 466,221 174 Victim Witness Advocate 291,204 66,100 150,000 207,304 175 Senior Transportation 4,198 105,444 105,244 4,398 176 Business Improvement District 7,495 156,200 156,251 7,444 177 Neighborhood Associations 984 8 ‐ 992 178 Veteran's Treatment Court ‐ 120,000 87,156 32,844 179 Diaster Relief Fund 1,289,310 11,000 ‐ 1,300,310 CHANGES IN FUND BALANCE/WORKING CAPITAL 22 220 Fiscal Year Projected Fund Balance/Working Capital Estimated Revnues Appropriations Budgeted Ending Fund Balance/Working Capital Special Revenue Funds 183 Fire Department Special Revenue 113,371 3,650 40,000 77,021 184 Parks Master Plan Develop 54,413 ‐ ‐ 54,413 186 Development Impacts 149,891 1,500 ‐ 151,391 187 Fire Department Equipment 880,400 423,476 606,000 697,876 188 City/County Drug Forfeiture 159,122 1,600 ‐ 160,722 189 Story Mansion Special Revenue (11,943) 22,000 57,302 (47,245) 191 Tourism BID 7,132 1,201,200 1,200,000 8,332 193 Street Maintenance ‐ Babcock SID 8,320 3,200 ‐ 11,520 194 Street Maintenance ‐ Durston SID 47,322 40,900 ‐ 88,222 850 Park Land ‐ Cash in Lieu 298,728 4,500 ‐ 303,228 Total Special Revenue Funds 19,451,235 26,400,443 31,300,841 14,550,837 Debt Service Funds 300 Special Improvement District Revolv. Fund 1,862,643 30,000 224,011 1,668,632 303 G.O. Refunding Series 2012 133,115 275,900 276,900 132,115 304 Park & Trails Bond 40,956 1,083,136 1,088,138 35,954 305 TIF 2007 Downtown Bonds ‐ 423,673 423,673 ‐ 310 SID Funds 275,275 593,314 385,800 482,789 Total Debt Service Funds 2,311,989 2,406,023 2,398,522 2,319,490 Construction Funds 500's Capital Projects 9,072,613 284,011 316,011 9,040,613 Enterprise Funds 600 Water 10,016,459 11,036,465 12,102,143 8,950,781 610 Water Impact Fee ‐ Net Assets 438,668 1,888,070 2,186,020 140,718 620 Waste Water 3,004,211 9,652,361 10,815,672 1,840,900 630 Waste Water Impact Fee ‐ Net Assets 1,548,610 9,287,208 8,625,000 2,210,818 640 Solid Waste 1,557,637 3,948,592 3,764,084 1,742,145 641 Landfill Post‐Closure & Monitoring 60,667 250,000 311,417 (750) 650 Parking Enterprise 905,133 1,021,340 859,371 1,067,102 670 Storm Water 704,281 1,398,188 1,444,302 658,167 Total Enterprise Funds 18,235,666 38,482,224 40,108,009 16,609,881 Internal Service Funds 710 Vehicle Maintenance Shop 652,625 1,265,626 1,259,462 658,789 720 Health‐Medical Self‐Insurance Fund 409,512 4,820,912 4,820,912 409,512 750 Public Works Administration ‐ 2,381,457 2,381,457 ‐ Total Internal Service Funds 1,062,137 8,467,995 8,461,831 1,068,301 Permanent Funds 800 Cemetery Perpetual Care 1,307,838 88,500 ‐ 1,396,338 Total All Funds 58,928,109 107,984,737 116,602,401 50,310,445 CHANGES IN FUND BALANCE/WORKING CAPITAL 23 221 FY2019 Staffing Changes We strive to maintain service levels with our growing community. With have a strategic approach to staffing this year and have developed a three‐year staffing plan to addressing our staffing needs on a City level. This will be the first year of this plan and we have added the needed positions that can be done within funding. Current FY18 Recommended Changes FY19 FY19 Total General Government City Commission 2.10 ‐ 2.10 City Manager (Admin, Clerk, Sustainability, Neighborhood) 9.00 0.25 9.25 Municipal Court 9.50 ‐ 9.50 City Attorney 10.70 ‐ 10.70 Finance 12.50 ‐ 12.50 Community Development 13.00 1.25 14.25 Facilities Management 4.50 ‐ 4.50 Information Technology 6.00 1.00 7.00 Human Resources 4.00 1.00 5.00 71.30 3.50 74.80 Public Safety Police 72.70 1.60 74.30 Fire 46.00 1.00 47.00 Building Inspection 19.50 0.25 19.75 Parking 6.00 ‐ 6.00 144.20 2.85 147.05 Public Services Public Works Administration/Engineering 11.50 2.25 13.75 Streets 21.85 0.75 22.60 Stormwater 7.50 ‐ 7.50 Water 25.95 0.50 26.45 Wastewater 28.80 1.00 29.80 Solid Waste Collection/Recycling 17.15 ‐ 17.15 Vehicle Maintenance 7.50 ‐ 7.50 120.25 4.50 124.75 Public Welfare Parks and Recreation (numerous STW) 50.46 ‐ 50.46 Library 28.02 ‐ 28.02 Economic Development 2.00 ‐ 2.00 80.48 ‐ 80.48 Total 416.23 10.85 427.08 Net FTE % Increase From Pervious Year 2.61% 24 222 Organizational Chart 25223 Fund Summaries 27 225 Fund Summaries The purpose of fund summaries is to capture and detail the financial condition of each City fund. A fund summary provides information on revenues, expenditures and ending funds available. In addition, it functions as a planning mechanism, as it allows expenditures to be matched to available revenues and/or fund balance. Fund summaries also identify components of funds available and anticipated uses. It is important to note that sources and uses are always balanced because a fund’s sources either are expended, become restricted, committed or assigned, or become unrestricted (unreserved or undesignated) funds available. City funds can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. By maintaining separate funds, the City is able to comply with laws that require certain money to be spent for specific purposes. Bozeman Fund Structure Overview Governmental Funds General Fund Special Revenue Funds Street Impact Fee Street Maintenance Building Inspection Fire Impact Fee City Planning Health Medical Insurance Gas Tax Drug Forfeitures Victim Advocate Tree Maintenance Law and Justice Center Community Transportation Fire Department Equipment Economic Development Revolving Loan Housing Revolving Loan Community Housing Downtown Improvement Street Lighting Park Land TIF N.E. Urban Renewal TIF N 7th Corridor Perpetual Cemetery Care Capital Improvement Funds General Improvement Funds Debt Service Funds SID Sinking Debt Special Improvment District General Obligation Bonds Tax Increment Financing Bonds Proprietary Funds Enterprise Funds Water Water Impact Fee Wastewater Wastewater Impact Fee Solid Waste Parking Stormwater Internal Service Fiduciary Funds 28 226 General Fund The General Fund is used to account for all financial resources of the City, except for those required to be accounted for in another fund. The General Fund supports such basic services as the General Administration, Police, Fire, Finance, Recreation, and Library services. Over the past ten years, the average percent change in revenue is 4% while expenditures is 5%. Revenues 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. For the recommended budget, we have estimated 4% growth and have proposed levying three additional mills to bring annual revenues in line with annual operations. Below is the property tax trends: Fiscal Year Tax Year City Taxable Value Change in TV City Tax Levy Change in Levy Total‐ Property Tax Dollars General Fund‐ Property Tax Dollars 2015 2014 87,894 2.6% 188.76 9.1% 16,590,871 12,724,414 2016 2015 86,564 ‐1.5% 210.16 11.3% 18,191,892 13,484,940 2017 2016 89,758 3.7% 209.91 ‐0.1% 18,338,501 13,238,858 2018 2017 101,195 12.7% 187.33 ‐10.8% 18,956,357 13,599,596 **2019 2018 105,244 4.0% 190.33 1.6% 20,031,579 14,641,545 29 227 We are estimating the General Fund to generate $31.8 million of that 47% is from property taxes, 22% from the State share and 9% for charges for services. The following chart shows the breakdown. Expenditures This Year’s General Fund budget has $34.1 Million in Expenditures. Personnel expenses are the highest portion with $21.8 million followed by operations of $9.5 million. The capital expenditures are $2 million, which includes vehicle replacements and additions, the Commission Room remodel, and Police portable radio lease. The break down by percentage is below: Property Taxes 47% Gallatin County Option 5% Licenses and Permits 1% County Shared ‐ Library… State Shared 22% General Government Charges 9% Fines and Fees 4%Transfers 8% Loan Proceeds 2% Personnel & Benefits 64% Operations 28% Capital 6% Debt Service 0% Transfers 2% 30 228 Fund Balance The General Fund balance is beginning higher than expected due to a settlement of $1 million being awarded the City in FY18 and an expected carry forward of $1.26 million. These are on‐time monies and should be and have been allocated as such. With the strategic plan the equivalent of two mill, $210,488, has been transferred to the Workforce Housing Fund for Affordable Housing projects. The remaining one time fund are being used for capital items. The City has set as its policy for General Fund to maintain at least 16.67% of the year’s revenue. FY19 proposed budget, we have estimated to have will have 16.72% at the end of the fiscal year. FY19 Recommended Budget The Details of the FY17 Actuals, FY18 Budgets and the FY19 Recommended is in the following table: FY17 Actual FY18 Approved FY19 CM Recommended Revenues Property Taxes 13,792,894 14,360,641 15,016,545 Gallatin County Option 1,475,731 1,400,000 1,545,000 Penalty & Interest 62 ‐ ‐ Business/Animal Licenses and Permits 356,286 346,337 409,475 Grants 21,939 140,000 40,000 County Shared ‐ Library 671,663 676,000 696,280 State Shared 6,700,100 6,676,170 6,906,231 General Government Charges 2,295,677 2,545,137 2,940,941 Library Fines 48,987 50,000 50,000 Police Court Fines 1,031,080 988,000 1,023,000 Parking Fines 39,233 35,000 38,000 Snow Removal Fines 20,009 20,000 20,000 Interest Income 51,635 45,000 75,000 Admin Reimbursement 1,500 ‐ ‐ Miscellaneous Revenue 27,117 12,000 12,000 Refunds & Reimbursements 4,352 50,000 25,000 Rents and Royalties (Leases) ‐ 40,000 40,950 Sales/Unclaimed Property 4,500 4,500 5,500 Transfers 2,214,190 2,376,092 2,560,119 Loan Proceeds ‐ 563,746 431,500 Proceeds‐Asset Disposition 23,892 15,000 20,000 Total Revenues 28,780,847 30,343,623 31,855,541 Expenditures Personnel & Benefits 21,301,275 20,593,660 21,842,888 Operations 6,016,445 8,985,322 9,640,444 Capital 668,191 1,284,996 1,994,717 Debt Service 3,760 550 3,650 Transfers 822,119 747,084 535,488 Total Expenditures 28,811,790 31,611,612 34,017,187 010 ‐ General Fund FUND 31 229 Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes. The revenue is generated different ways some have assessments on properties, property taxes, some have charges for services and some are funded through grants or donations. The Streets Maintenance fund relies on assessments for revenue generation for street maintenance and reconstruction. Since expanded the Streets program to included major street construction projects FY12 there has been a need to increase the assessment. This year we are recommending a 5% increase. The last couple of years the Street Maintenance fund budgets increased amounts of pavement maintenance capital projects, and the addition of Streets workers, which make up the large portion of the increased expenditures. This trend will continue with the inclusions of the Capital Improvement Plan and the three staffing plan. As we look to toward the future and the Capital Improvement Plan there will need to be larger increases near 10% for FY20 and FY21. With the increase this year and the next few years, we can build a reserve in this fund that we currently do not keep and would be a best practice to do so to be able to adjust to any unpredicted needs. 32 230 Street Arterial Construction fund is a relatively new fund and has seen a phase in approach with its final phase in FY18 of a 63% increase. With the passing of the new gas tax, we are reducing the assessment by the amount of the City’s gas tax allocation. This will reduce the assessment by 28% and the average lot will see a reduction in their annual fee from $68.97 to $51.78. Based on the Capital Improvement Plan and our projections with growth there may need to be small increases later in FY22 and FY23 pending the gas tax allocation as well. Tree Maintenance fund accounts for special assessment revenues levied, received, and expended for tree maintenance provided to specific property owners. In previous year, we raised the assessment by 15% to aid working towards the Urban Forestry Management Plan. To continue those efforts and to build a reserve for capital items we are recommending a 5% increase. The program mainly buys large capital items and if one needs to be replaced unexpectedly, it can costly. The 5% increase for the average lost would increase from $22.48 to $23.61. Workforce Housing fund is where our affordable housing program operates in. Affordable Housing is part of our Strategic Plan and a priority for FY19. With the hiring of the program coordinator, the City is forming its plan to be approved by the Commission. To ensure there is enough for the program needs one‐time monies from the General Fund equal to two mills, $210,488, will be transferred into the fund. 33 231 All Special Revenue Funds: FY17 Actual FY18 Approved FY19 CM Recommended Revenues Property Taxes 180,741 185,830 210,488 State Shared 119,888 108,700 110,733 Charges for Services 799,242 745,925 785,500 Interest Income 7,357 6,000 6,500 Refunds & Miscellaneous Revenue 59,556 53,400 53,400 Transfers 88,037 124,284 127,575 Total Revenues 1,254,821 1,224,139 1,294,196 Expenditures Personnel & Benefits 699,971 971,694 990,695 Operations 265,889 423,669 369,281 Capital ‐110,000 301,218 Total Expenditures 965,860 1,505,363 1,661,194 103 ‐ Health‐Medical Insurance Revenues Property Taxes 2,263,694 2,476,888 2,654,566 Total Revenues 2,263,694 2,476,888 2,654,566 Expenditures Transfers 2,278,269 2,476,888 2,654,566 Total Expenditures 2,278,269 2,476,888 2,654,566 108 ‐ Community Transportation Revenues Interest Income 806 1,660 1,200 Total Revenues 806 1,660 1,200 Expenditures Capital 59,889 ‐‐ Total Expenditures 59,889 ‐‐ Revenues Interest Income 200 180 200 Total Revenues 200 180 200 Revenues State Shared 693,945 959,999 1,402,031 Interest Income 11,418 7,000 9,000 Total Revenues 705,363 966,999 1,411,031 Expenditures Operations 157,342 229,500 244,500 Capital ‐731,000 927,000 Total Expenditures 157,342 960,500 1,171,500 FUND Special Revenue Funds 100 ‐ Community Development/Planning 109 ‐ Highway Safety Improvement Projects 110 ‐ Gas Tax 34 232 FY17 Actual FY18 Approved FY19 CM Recommended Revenues Penalty & Interest 11,418 11,000 11,500 Permits 18,466 17,500 18,000 Public Service 4,545,407 5,328,172 5,730,198 Interest Income 3,573 10,000 10,000 Other Financing Sources 1,026 ‐ ‐ Refunds & Reimbursements 19,411 ‐ 10,000 Proceeds‐Asset Disposition 19,385 ‐ ‐ Loan Proceeds 234,702 ‐ ‐ Transfers 43,227 ‐ ‐ Total Revenues 4,896,615 5,366,672 5,779,698 Expenditures Personnel & Benefits 1,370,643 1,563,694 1,629,339 Operations 1,992,530 1,592,207 2,019,801 Capital 1,101,123 1,773,900 1,314,500 Debt Service 213,529 295,207 315,207 Transfers 598,000 700,000 695,478 Total Expenditures 5,275,825 5,925,008 5,974,325 Revenues Penalty & Interest 1,031 1,350 1,200 Grants ‐ 750 ‐ State Revenue 261 ‐ ‐ Public Service 581,734 682,373 730,821 Interest Income 2,633 1,600 2,200 Sale of Raw Materials 2,545 6,000 3,000 Total Revenues 588,204 692,073 737,221 Expenditures Personnel & Benefits 357,941 420,950 435,400 Operations 122,868 228,987 244,177 Capital 33,246 57,000 120,000 Total Expenditures 514,055 706,937 799,577 Revenues Public Safety 315,732 362,250 380,363 Interest Income 12,311 10,000 12,000 Total Revenues 328,043 372,250 392,363 Expenditures Operations 25,000 50,000 ‐ Total Expenditures 25,000 50,000 ‐ FUND Special Revenue Funds 112 ‐ Tree Maintenance 113 ‐ Fire Impact Fee 111 ‐ Street Maintenance 35 233 FY17 Actual FY18 Approved FY19 CM Recommended Revenues Public Service 3,966,383 3,123,750 4,226,250 Interest Income 126,257 100,000 115,000 Admin Reimbursement 807 960 1,000 Grants 11,891 ‐ ‐ Total Revenues 4,105,338 3,224,710 4,342,250 Expenditures Operations 374,301 95,000 45,000 Capital 4,728,938 7,651,245 6,373,000 Total Expenditures 5,103,239 7,746,245 6,418,000 Revenues Permits 1,717,846 1,749,800 1,783,700 General Government 1,915 2,350 1,500 Interest Income 12,177 17,000 15,000 Miscellaneous Revenue 52,172 ‐ ‐ Total Revenues 1,784,110 1,769,150 1,800,200 Expenditures Personnel & Benefits 1,311,428 1,565,957 1,702,127 Operations 393,353 488,495 706,608 Capital 51,840 32,500 251,681 Total Expenditures 1,756,621 2,086,952 2,660,416 Revenues Property Taxes 1,080,852 1,813,350 1,813,350 State Shared 56,050 45,660 45,660 Interest Income 19,698 10,000 10,000 Other Revenues ‐ 1,500 1,500 Total Revenues 1,156,600 1,870,510 1,870,510 Expenditures Operations 295,757 1,235,712 1,239,712 Transfers 792,398 672,288 672,288 Total Expenditures 1,088,155 1,908,000 1,912,000 Revenues Interest Income Loan Principal ‐ 35,500 25,000 Loan Interest 27,755 13,000 25,000 Total Revenues 27,755 48,500 50,000 Expenditures Operations 35,652 31,000 31,000 Total Expenditures 35,652 31,000 31,000 115 ‐ Building Inspection Fund 116 ‐ TIFD Downtown Improvement 119 ‐ Economic Development Loan FUND Special Revenue Funds 114 ‐ Street Impact Fee 36 234 FY17 Actual FY18 Approved FY19 CM Recommended Revenues Property Tax Revenue 260,687 278,745 315,732 Interest Income 4,401 3,000 4,000 Loan Principal & Interest 494 9,500 9,500 Transfers ‐ ‐ 210,488 Total Revenues 265,582 291,245 539,720 Expenditures Personnel ‐ ‐ 78,708 Operations 284,401 324,400 293,150 Total Expenditures 284,401 324,400 371,858 Revenues Interest Income ‐ 50 10 Loan Principal ‐ 4,900 1,000 Loan Interest 143 375 275 Total Revenues 143 5,325 1,285 Expenditures Operations 7,219 ‐ ‐ Total Expenditures 7,219 ‐ ‐ Revenues Grants 140,000 50,000 50,000 Total Revenues 140,000 50,000 50,000 Expenditures Operations 140,000 50,000 50,000 Total Expenditures 140,000 50,000 50,000 Revenues Grants 108,023 70,000 75,000 State Shared ‐ ‐ ‐ Police Court Fines 53,908 50,500 54,000 Interest Income 69 ‐ 70 Miscellaneous Revenue ‐ ‐ ‐ Other Financing Sources 12,436 111,512 28,872 Total Revenues 174,436 232,012 157,942 Expenditures Personnel & Benefits 244,728 213,824 222,710 Operations 4,987 7,300 8,500 Total Expenditures 249,715 221,124 231,210 123 ‐ Big Sky Econ. Development Grant 125 ‐ Drug Forfeiture Fund 120 ‐ Community Housing Fund 121 ‐ Housing Revolving Loan FUND Special Revenue Funds 37 235 FY17 Actual FY18 Approved FY19 CM Recommended Revenues Interest Income 178 ‐ 150 Total Revenues 178 ‐ 150 Expenditures Operations ‐ 8,000 8,000 Total Expenditures ‐ 8,000 8,000 Revenues Interest Income 309 240 300 Total Revenues 309 240 300 Revenues Interest Income 9 ‐ 9 Total Revenues 9 ‐ 9 Revenues Interest Income 136 85 100 Donations ‐ ‐ 5,000 Refunds & Reimbursements 1,087 2,115 1,200 Total Revenues 1,223 2,200 6,300 Expenditures Operations ‐ ‐ 5,000 Total Expenditures ‐ ‐ 5,000 Revenues Interest Income 110 40 100 Donations 4,167 2,000 2,000 Total Revenues 4,277 2,040 2,100 Expenditures Operations ‐ 9,500 ‐ Total Expenditures ‐ 9,500 ‐ Revenues Interest Income 21 15 20 Total Revenues 21 15 20 132 ‐ Bogert Park Special Revenue 133 ‐ Recreation Special Revenue 135 ‐ Cemetery Special Revenue 128 ‐ Fish Wildlife & Park Mgmt 130 ‐ Americans with Disability 131 ‐ Beautification of Bozeman FUND Special Revenue Funds 38 236 FY17 Actual FY18 Approved FY19 CM Recommended Revenues Interest Income 106 30 100 Donations ‐ 150 ‐ Miscellaneous Revenue 2,320 3,000 2,500 Total Revenues 2,426 3,180 2,600 Expenditures Operations ‐ 9,000 ‐ Total Expenditures ‐ 9,000 ‐ Revenues Grants 23,708 ‐ Interest Income 56 300 100 Donations 74,630 75,000 75,000 Total Revenues 98,394 75,300 75,100 Expenditures Operations 144,837 ‐ Total Expenditures 144,837 ‐ ‐ Expenditures Operations 19,125 19,125 19,125 Total Expenditures 19,125 19,125 19,125 Revenues Interest Income 2,242 1,800 2,000 Donations 2,100 2,000 2,000 Miscellaneous Revenue 5,083 15,000 10,000 Refunds & Reimbursements 7,526 350 500 Total Revenues 16,951 19,150 14,500 Expenditures Operating 35,730 ‐ ‐ Capital 21,820 ‐ ‐ Total Expenditures 35,730 ‐ ‐ Revenues Grants 181,308 115,000 ‐ State Shared 10 ‐ ‐ Transfers ‐ 150,000 ‐ Total Revenues 181,318 265,000 ‐ Expenditures Personnel & Benefits 12,042 9,929 ‐ Operating 169,275 209,101 ‐ Total Expenditures 181,317 219,030 ‐ 136 ‐ Park Special Revenue 137 ‐ Library Special Revenue 138 ‐ Law & Justice Center 139 ‐ Police Special Revenue 140 ‐ Police Domestic Violence FUND Special Revenue Funds 39 237 FY17 Actual FY18 Approved FY19 CM Recommended Revenues Penalty & Interest 2,281 2,000 2,334 Street Maintenance Assessments 1,092,411 1,816,250 1,333,854 Other Revenues/Refunds ‐ ‐ 378,688 Interest Income 13,916 3,000 20,031 Total Revenues 1,108,608 1,821,250 1,734,907 Expenditures Operating 3,933 ‐ 115,000 Capital 367,727 1,780,311 3,453,000 Total Expenditures 371,660 1,780,311 3,568,000 Revenues Property Taxes 651,887 700,000 700,000 Interest Income 9,727 8,800 8,800 Transfers 116,567 ‐ ‐ Total Revenues 778,181 708,800 708,800 Expenditures Operating 331,065 676,000 680,000 Capital 778,288 ‐ ‐ Transfers 47,327 36,000 36,000 Total Expenditures 1,156,680 712,000 716,000 Revenues Property Taxes 130,468 143,000 143,000 Grants 1,353 ‐ ‐ Interest Income 3,314 1,800 1,800 Proceeds of Bond Sale ‐ ‐ ‐ Total Revenues 135,135 144,800 144,800 Expenditures Operating 121,702 156,600 156,600 Transfers 10,000 10,000 14,000 Total Expenditures 131,702 166,600 170,600 Revenues Property Taxes 56,440 36,097 36,097 Total Revenues 56,440 36,097 36,097 Expenditures Operating 8,482 ‐ 4,000 Total Expenditures 8,482 ‐ 4,000 145 ‐ TIF Mandeville Farm Industrial 141 ‐ Street Arterial Construction 143 ‐ TIF N 7th Corridor 144 ‐ TIF NE Urban Renewal District FUND Special Revenue Funds 40 238 FY17 Actual FY18 Approved FY19 CM Recommended Revenues Penalty & Interest ‐ 113 Special Assessments 426,189 368,357 426,562 Interest Income 5,138 5,004 4,925 Total Revenues 431,327 373,361 431,600 Expenditures Operating 412,158 409,233 440,617 Transfers 31,900 31,900 31,900 Total Expenditures 444,058 441,133 472,517 Revenues Police Court Fines 62,808 60,950 63,000 Interest Income 3,324 3,000 3,100 Total Revenues 66,132 63,950 66,100 Expenditures Operating 54,477 150,000 150,000 Total Expenditures 54,477 150,000 150,000 Revenues Property Taxes 85,567 92,915 105,244 Interest Income 238 106 200 Total Revenues 85,805 93,021 105,444 Expenditures Operating 87,612 92,915 105,244 Total Expenditures 87,612 92,915 105,244 Revenues Principal 120,003 132,000 132,000 Penalty & Interest 316 200 200 Donations/other 14,500 24,000 24,000 Total Revenues 134,819 156,200 156,200 Expenditures Operating 120,000 156,200 156,251 Total Expenditures 120,000 156,200 156,251 Revenues Interest Income 8 7 8 Total Revenues 8 7 8 146 ‐ 170;181;182; 200 ‐243 ‐ Lighting Districts 174 ‐ Victim/Witness Advocate 175 ‐ Senior Transportation 176 ‐ BID Downtown Improv Dist 177 ‐ Neighborhood Association FUND Special Revenue Funds 41 239 FY17 Actual FY18 Approved FY19 CM Recommended Revenues Grants ‐ ‐ 113,000 State Shared ‐ ‐ ‐ Refunds & Reimbursements ‐ ‐ 7,000 Transfers ‐ ‐ ‐ Total Revenues ‐ ‐ 120,000 Expenditures Personnel & Benefits ‐ ‐ Operating ‐ ‐ 87,156 Total Expenditures ‐ ‐ 87,156 Revenues Interest Income 11,004 8,636 11,000 Total Revenues 11,004 8,636 11,000 Revenues Interest Income 833 506 650 Donations 3,332 3,000 3,000 Grants 58,406 40,000 ‐ Total Revenues 62,571 43,506 3,650 Expenditures Operating 26,141 40,000 40,000 Total Expenditures 26,141 40,000 40,000 Revenues Transfers 100,000 ‐ ‐ Total Revenues 100,000 ‐ ‐ Expenditures Operating 600 ‐ ‐ Capital 130,106 ‐ ‐ Total Expenditures 130,706 ‐ ‐ Revenues Interest Income 1,525 250 1,500 Other Revenue 6,200 ‐ ‐ Total Revenues 7,725 250 1,500 Expenditures Operating 4,698 ‐ ‐ Total Expenditures 4,698 ‐ ‐ 183 ‐ Fire Department Special Revenue 184 ‐ Parks Master Plan/Improvement Grants 186 ‐ Development Impacts 179 ‐ Disaster Relief (Hail Damage Events) 178 ‐ Veteran's Treatment Court FUND Special Revenue Funds 42 240 FY17 Actual FY18 Approved FY19 CM Recommended 187 ‐ Fire Dept Equipment Revenues Property Taxes 347,641 371,660 420,976 Other ‐ ‐ ‐ Interest Income 7,045 2,500 2,500 Total Revenues 354,686 374,160 423,476 Expenditures Capital ‐ 530,500 606,000 Total Expenditures ‐ 530,500 606,000 188 ‐ City/County Joint Drug Forfeiture Revenues Fines 500 ‐ 500 Interest Income 1,114 1,000 1,100 Total Revenues 1,614 1,000 1,600 Revenues Charges for Sevices 25,100 18,500 22,000 Total Revenues 25,100 18,500 22,000 Expenditures Operating 29,955 47,423 57,302 Capital ‐ ‐ Total Expenditures 29,955 47,423 57,302 Revenues Special Assessments 979,804 1,200,000 1,200,000 Penalty & Interest 724 1,200 1,200 Total Revenues 980,528 1,201,200 1,201,200 Expenditures Operations 980,528 1,200,000 1,200,000 Total Expenditures 980,528 1,200,000 1,200,000 Revenues Principal 1,925 4,500 2,000 Interest 684 1,200 1,200 Interest Income 11 ‐ ‐ Total Revenues 2,620 5,700 3,200 193 ‐ Street Maint ‐ Babcock SID 189 ‐ Story Mansion Special Revenue 191 ‐ Bozeman Tourism BID FUND Special Revenue Funds 43 241 FY17 Actual FY18 Approved FY19 CM Recommended Revenues Principal 39,688 3,500 40,000 Interest 688 1,750 500 Interest Income 308 40 400 Total Revenues 40,684 5,290 40,900 Revenues Cash in Lieu of Parkland 105,063 ‐ ‐ Other Revenue 4,229 ‐ 4,500 Interest Income ‐ ‐ ‐ Total Revenues 109,292 ‐ 4,500 194 ‐ Street Maint ‐ Durston SID 850 ‐ Cash in Lieu of Parkland FUND Special Revenue Funds 44 242 Debt Service Funds Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long‐term debt principal and interest. Debt schedules are located at the end of the Activity/Department Section under the Non‐ Departmental. FY17 Actual FY18 Approved FY19 CM Recommended Revenues Interest Income 28,362 26,000 26,500 Loan Interest 3,445 5,000 3,500 Other 1,917 ‐ ‐ Total Revenues 33,724 31,000 30,000 Expenditures Transfers ‐ 1,588,781 224,011 Total Expenditures ‐ 1,588,781 224,011 Revenues Property Taxes 268,046 276,000 275,900 Total Revenues 268,046 276,000 275,900 Expenditures Debt Service 276,500 276,000 276,900 Total Expenditures 276,500 276,000 276,900 Revenues Property Taxes 1,050,075 1,080,538 1,083,136 Total Revenues 1,050,075 1,080,538 1,083,136 Expenditures Debt Service 1,084,454 1,080,537 1,088,138 Total Expenditures 1,084,454 1,080,537 1,088,138 Revenues Transfers In 425,837 422,288 423,673 Total Revenues 425,837 422,288 423,673 Expenditures Debt Service 425,837 422,288 423,673 Total Expenditures 425,837 422,288 423,673 Revenues Special Assessments 432,251 626,389 426,989 Penalty & Interest 125,553 ‐ 152,985 Interest Income 11,693 ‐ 1,200 Total Revenues 569,497 626,389 581,174 Expenditures Debt Service 191,142 379,800 385,800 Transfers ‐ 10,700 ‐ Total Expenditures 191,142 390,500 385,800 Debt Service Funds 300 ‐ SID Revolving Fund 303 ‐ G.O. Refunding Series 2012 304 ‐ Bond S & I Parks & Open Space Bond 305 ‐ 2007 Downtown TIF Bonds 310‐447‐ SID Funds FUND 45 243 Construction Funds General Improvements Capital Projects Funds account for the construction of general improvement projects financed by special assessments other than those financed by proprietary funds. FY17 Actual FY18 Approved FY19 CM Recommended Revenues Interest Income 151,434 ‐ Transfers 851,164 2,272,781 284,011 Other Funding 958,800 ‐ ‐ Total Revenues 1,961,398 2,272,781 284,011 Expenditures Operating 16,545 ‐ 32,000 Capital 4,249,509 2,268,375 284,011 Transfers ‐ ‐ ‐ Total Expenditures 4,266,054 2,268,375 316,011 FUND Construction Funds 500‐566 ‐ Construction Funds 46 244 Enterprise Funds Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises‐‐where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Water and Wastewater Fund‐ City Property owners are by and large required to use the City’s Water and Sewer treatment systems. Currently, the City is undergoing a rate study so the revenues for FY19 are annualized amounts. Rates are set in September and the rate study will be provided to the Commission late July early August to determine the rates. 47 245 Solid Waste ‐The City’s Solid Waste Fund accounts for the garbage and recycling services. Revenues are comprised of solid waste and recycling fees. Expenses are for personnel, operations and capital items. With a joint effort with Forestry, Solid waste reduced its capital need by sharing a truck. Fund balance has enough for depreciation coverage for an event we lose a truck unexpectedly and to move from a 45‐day reserve to a 90‐ day reserve to be able to respond to competition. Stormwater fund started in 2013 and had its current rate structure set in April 2015, which are based on impervious area, and existing infrastructure. The rate recommend for FY19 is remain the same as the previous year. With maintaining the rate and with projected growth the fund will be able to maintain a 45‐day reserve and a depreciation reserve to be able to replace unexpected loss of equipment. All Enterprise Funds: FY17 Actual FY18 Approved FY19 CM Recommended Revenues Penatly & Interest ‐ ‐ ‐ State Shared 1,500 1,500 1,500 Utility Charges 7,898,330 8,590,940 8,985,970 Interest Income 197,899 135,000 168,495 Donations ‐ Contributed Capital ‐ ‐ ‐ Miscellaneous Revenue 50,000 50,000 50,000 Refunds & Reimbursements 5,000 5,000 500 Rents & Royalties 80,000 80,000 80,000 Administrative Reimbursement 1,518,096 1,486,808 ‐ Other Financing Sources ‐ 1,750,000 1,750,000 Total Revenues 9,750,825 12,099,248 11,036,465 Expenditures Personnel & Benefits 3,418,374 3,079,228 2,085,584 Operating 4,163,532 4,766,817 4,534,920 Capital 2,100,401 2,808,400 4,316,009 Debt Service 1,313,010 1,313,010 1,165,630 Total Expenditures 10,995,317 11,967,455 12,102,143 FUND Enterprise Funds 600 ‐ Water Fund 48 246 FY17 Actual FY18 Approved FY19 CM Recommended Revenues Utilities & Enterprise 1,470,000 1,793,400 1,883,070 Interest Income 5,000 5,000 5,000 Total Revenues 1,475,000 1,798,400 1,888,070 Expenditures Operating 164,892 ‐ ‐ Capital 305,797 3,190,000 1,586,020 Transfers 500 600,000 600,000 Total Expenditures 471,189 3,790,000 2,186,020 Revenues Penalties & Interest ‐ ‐ State Shared 1,500 1,500 1,500 Utility & Enterprise 8,149,451 8,755,198 9,559,623 Interest Income 15,000 50,000 91,238 Refunds & Reimbursements 284,200 ‐ ‐ Contributed Capital ‐ ‐ Other Financing ‐ ‐ Total Revenues 8,450,151 8,806,698 9,652,361 Expenditures Personnel & Benefits 1,338,524 2,143,921 2,017,844 Operating 5,318,777 3,803,613 3,969,269 Capital 2,727,189 1,562,500 3,352,500 Debt Service ‐ 1,704,247 1,476,059 Transfers ‐ ‐ ‐ Total Expenditures 9,384,490 9,214,281 10,815,672 Revenues Utility & Enterprise 1,103,550 1,221,150 1,282,208 Loan Proceeds ‐ ‐ 7,985,000 Interest Income 20,149 ‐ 20,000 Total Revenues 1,123,699 1,221,150 9,287,208 Expenditures Operating 44,463 ‐ ‐ Capital 242,887 1,440,000 8,625,000 Debt Service ‐ ‐ ‐ Transfers ‐ ‐ ‐ Total Expenditures 287,350 1,440,000 8,625,000 630 ‐ Waste Water Impact Fee FUND Enterprise Funds 610 ‐ Water Impact Fee 620 ‐ Waste Water Fund 49 247 FY17 Actual FY18 Approved FY19 CM Recommended Revenues Penalty & Interest 54 ‐ ‐ State Shared 20,852 ‐ ‐ Recycling Revenue 377,415 396,150 408,035 Utilities & Enterprise 3,236,305 3,391,291 3,508,627 Interest Income 22,248 6,752 6,995 Miscellaneous Revenue 2,069 ‐ ‐ Refunds & Reimbursements 2,299 ‐ ‐ Rents and Royalties ‐ 8,000 8,240 Roll‐Off Container Rental 15,434 16,209 16,695 Sales 2,042,390 ‐ ‐ Total Revenues 5,719,066 3,818,402 3,948,592 Expenditures Personnel & Benefits 1,058,077 1,197,422 1,351,142 Operating 2,316,888 2,114,835 2,312,942 Capital 798,002 430,000 100,000 Transfers 1,569,319 ‐ ‐ Total Expenditures 5,742,286 3,742,257 3,764,084 Revenues Transfers 2,375,319 368,084 250,000 Total Revenues 2,375,319 368,084 250,000 Expenditures Operations 886,685 353,000 250,000 Capital 61,417 61,417 61,417 Total Expenditures 948,102 414,417 311,417 Revenues Licenses and Permits 482,566 379,000 414,000 Charges for Services 64,492 50,000 50,000 Fines and Forfeitures 336,216 300,000 300,000 Interest Income 6,904 750 5,000 Loan Interest 811 840 840 Miscellaneous Revenue 617 Rents & Receivables 25,067 2,000 1,500 Transfers from other Funds 250,000 250,000 250,000 Total Revenues 1,166,673 982,590 1,021,340 Expenditures Personnel & Benefits 299,921 342,633 353,362 Operating 597,359 365,597 393,978 Capital 9,378 260,000 112,031 Total Expenditures 906,658 968,230 859,371 640 ‐ Solid Waste Fund 641 ‐ Landfill Post Closure and Monitoring Costs 650 ‐ Parking Fund FUND Enterprise Funds 50 248 FY17 Actual FY18 Approved FY19 CM Recommended Revenues State Shared 6,182 ‐ ‐ Utilities & Enterprise 1,294,328 1,292,753 1,317,688 Interest Income 7,080 5,000 5,500 Contributed Capital 549,096 ‐ ‐ Transfers from other Funds 140,000 140,000 75,000 Total Revenues 1,996,686 1,437,753 1,398,188 Expenditures Personnel & Benefits 553,566 451,548 408,583 Opeartions 329,185 161,466 240,373 Capital 303,639 650,000 635,000 Debt Service 193,906 225,346 160,346 Transfers 454,000 ‐ ‐ Total Expenditures 1,834,296 1,488,360 1,444,302 670 ‐ Storm Water Fund FUND Enterprise Funds 51 249 Internal Service Funds Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments on a cost‐reimbursement basis. The City has three Internal Services, and fund 750‐ Public Works Administration is new in FY19 to allocate the Public Works Administration, GIS, and Engineering to the enterprise funds. Fund 710‐ Vehicle Maintenance accounts for the maintenance and repair of vehicles used in operation of City services. Medical Health Insurance Fund 720 Accounts for insurance premiums received from the various City departments and retirees, and the related costs of health and dental premiums paid to the City’s insurance provider. FY17 Actual FY18 Approved FY19 CM Recommended Revenues General Government 1,121,811 1,184,000 1,264,876 Interest Income 60 2,700 250 Refunds & Reimbursements 468 3,000 500 Total Revenues 1,122,339 1,189,700 1,265,626 Expenditures Personnel & Benefits 418,300 480,652 481,127 Operating 789,939 757,392 778,335 Capital 41,210 ‐ ‐ Total Expenditures 1,249,449 1,238,044 1,259,462 720 ‐ Health‐Medical Insurance Revenues Public Welfare 4,820,912 4,820,912 4,820,912 Refunds & Reimbursements ‐ ‐ Transfers In Total Revenues 4,820,912 4,820,912 4,820,912 Expenditures Operating 4,715,591 4,820,912 4,820,912 Total Expenditures 4,715,591 4,820,912 4,820,912 Revenues General Government ‐ ‐ 2,381,457 Total Revenues ‐ ‐ 2,381,457 Expenditures Personnel & Benefits ‐ ‐ 1,693,903 Operating ‐ ‐ 581,096 Capital ‐ ‐ 106,458 Total Expenditures ‐ ‐ 2,381,457 FUND Internal Service Funds 710 ‐ Vehicle Maintenance 750 ‐ Public Works Administration 52 250 Permanent Funds Perpetual Cemetery Care Fund 800 accounts for the maintenance fee received from the sale of City cemetery plots, which is to be used for perpetual care. Beginning in FY19, 35% of all revenue will be recorded in to the fund. The interest income from the trust is transferred to the general fund for use in maintaining the City’s cemetery. FY17 Approved FY18 Approved FY19 CM Recommended Revenues Public Welfare 115,982 100,000 75,000 Interest Income 14,205 6,000 13,500 Total Revenues 130,187 106,000 88,500 Permanent Funds FUND 800 ‐ Cemetery Perpetual Care 53 251 Summary of all Fund Revenues by Type City of Bozeman Revenues: All FundsProperty TaxesSpecial AssessmentsLicenses & PermitsInter-governmentalCharges for ServicesFines and ForfeituresInterest IncomeOther RevenuesOther Financing SourcesTOTAL010 - General Fund16,561,545$ 409,475$ 7,642,511$ 2,940,941$ 1,131,000$ 75,000$ 83,450$ 3,011,619$ 31,855,541$ 100 - Community Development/Planning210,488 110,733 785,500 6,500 53,400 127,575 1,294,196$ 103 - Health-Medical Insurance2,654,566 2,654,566$ 108 - Community Transportation1,200 1,200$ 109 - Highway Safety Improvement Projects200 200$ 110 - Gas Tax1,402,031 9,000 1,411,031$ 111 - Street Maintenance11,500 18,000 5,730,198 10,000 10,000 - 5,779,698$ 112 - Tree Maintenance - 730,821 2,200 4,200 737,221$ 113 - Fire Impact Fee380,363 12,000 392,363$ 114 - Street Impact Fee4,226,250 115,000 1,000 4,342,250$ 115 - Building Inspection Fund1,783,700 1,500 15,000 1,800,200$ 116 - TIFD Downtown Improvement1,813,350 45,660 10,000 1,500 1,870,510$ 119 - Economic Development Loan50,000 50,000$ 120 - Community Housing Fund4,000 9,500 526,220 539,720$ 121 - Housing Revolving Loan10 1,275 1,285$ 123 - Big Sky Econ. Development Grant50,000 50,000$ 125 - Drug Forfeiture Fund75,000 54,000 70 28,872 157,942$ 128 - Fish Wildlife & Park Mgmt150 150$ 130 - Americans with Disability300 300$ 131 - Beautification of Bozeman9 9$ 132 - Bogert Park Special Revenue100 6,200 6,300$ 133 - Recreation Special Revenue100 2,000 2,100$ 135 - Cemetery Special Revenue20 20$ 136 - Park Special Revenue100 2,500 2,600$ 137 - Library Special Revenue100 75,000 75,100$ 139 - Police Special Revenue2,000 12,500 14,500$ 141 - Street Arterial Construction1,333,854 20,031 381,022 1,734,907$ 143 - TIF N 7th Corridor700,000 8,800 708,800$ 144 - TIF NE Urban Renewal District143,000 1,800 144,800$ 145 - TIF Mandeville Farm Industrial36,097 36,097$ 146 - 170;181;182; 200 -241 - Lighting Districts426,562 4,925 113 431,600$ 174 - Victim/Witness Advocate63,000 3,100 66,100$ 175 - Senior Transportation105,244 200 105,444$ 54252 City of Bozeman Revenues: All FundsProperty TaxesSpecial AssessmentsLicenses & PermitsInter-governmentalCharges for ServicesFines and ForfeituresInterest IncomeOther RevenuesOther Financing SourcesTOTAL176 - BID Downtown Improv Dist200 30,000 126,000 156,200$ 177 - Neighborhood Association8 8$ 178 - Veteran's Treatment Court113,000 7,000 120,000$ 179 - Disaster Relief11,000 11,000$ 183 - Fire Department Special Revenue650 3,000 3,650$ 186 - Development Impacts1,500 1,500$ 187 - Fire Dept Equipment420,976 2,500 423,476$ 188 - City/County Joint Forfeiture1,100 500 1,600$ 189 - Story Mansion Special Revenue22,000 22,000$ 191 - Bozeman Tourism BID1,200,000 1,200 1,201,200$ 193 - Street Maintenance - Babcock SID1,200 2,000 3,200$ 194 - Street Maintenance - Durston SID500 40,400 40,900$ 850 - Cash in Lieu of Parkland4,500 4,500$ 300 - SID Revolving Fund26,500 3,500 30,000$ 303 - G.O. Refunding Series 2012275,900 275,900$ 304 - Parks & Open Space Bond1,083,136 1,083,136$ 305 - 2007 Downtown TIF Bonds423,673 423,673$ 310-447- SID Funds439,129 1,200 152,985 593,314$ 500-566 - Construction Funds284,011 284,011$ 600 - Water Fund1,500 8,985,970 168,495 130,500 1,750,000 11,036,465$ 610 - Water Impact Fee1,883,070 5,000 1,888,070$ 620 - Waste Water Fund1,500 9,559,623 91,238 - 9,652,361$ 630 - Waste Water Impact Fee1,282,208 20,000 7,985,000 9,287,208$ 640 - Solid Waste Fund3,916,662 6,995 24,935 3,948,592$ 641 - Landfill Closure Costs250,000 250,000$ 650 - Parking Fund414,000 50,000 300,000 5,000 252,340 1,021,340$ 670 - Storm Water Fund1,317,688 5,500 75,000 1,398,188$ 710 - Vehicle Maintenance1,264,876 250 500 1,265,626$ 720 - Health-Medical Insurance4,820,912 4,820,912$ 750 - Public Works Administration2,381,457 2,381,457$ 800 - Cemetery Perpetual Care75,000 13,500 88,500$ 24,015,802$ 3,399,545$ 2,625,175$ 9,391,935$ 50,355,039$ 1,548,000$ 664,251$ 1,596,520$ 14,388,470$ 107,984,737$ % of Total22% 3% 2% 9% 47% 1% 1% 1% 13% 100%55253 Summary of all Fund Expenditures by Type City of Bozeman Expenditures: All FundsPersonnel & BenefitsOperations Capital Debt Service Transfers Other Financing UsesTOTAL010 - General Fund21,842,888 9,640,444 1,994,717 3,650 535,488 34,017,187 100 - Community Development/Planning990,695 369,281 301,218 1,661,194 103 - Health-Medical Insurance2,654,566 2,654,566 110 - Gas Tax244,500 927,000 1,171,500 111 - Street Maintenance1,629,339 2,019,801 1,314,500 315,207 695,478 5,974,325 112 - Tree Maintenance435,400 244,177 120,000 799,577 114 - Street Impact Fee45,000 6,373,000 6,418,000 115 - Building Inspection Fund1,702,127 706,608 251,681 2,660,416 116 - TIFD Downtown Improvement1,239,712 672,288 1,912,000 119 - Economic Development Loan31,000 31,000 120 - Community Housing Fund78,708 293,150 371,858 123 - Big Sky Ec Dev Fund50,000 50,000 125 - Drug Forfeiture Fund222,710 8,500 231,210 128 - Fish Wildlife & Park Mgmt8,000 8,000 132 - Bogert Park Special Revenue5,000 5,000 138 - Law & Justice Center19,125 19,125 141 - Street Arterial Construction115,000 3,453,000 3,568,000 143 - TIF N 7th Corridor680,000 36,000 716,000 144 - TIF NE Urban Renewal District156,600 14,000 170,600 145 - TIF Mandeville Farm Industrial4,000 4,000 146 - 170;181;182; 200 -241 - Lighting Districts440,617 31,900 472,517 174 - Victim/Witness Advocate150,000 150,000 175 - Senior Transportation105,244 105,244 176 - BID Downtown Improv Dist156,251 156,251 56254 City of Bozeman Expenditures: All FundsPersonnel & BenefitsOperations Capital Debt Service Transfers Other Financing UsesTOTAL178 - Veteran's Treatment Court87,156 87,156 183 - Fire Dept Special Revenue40,000 40,000 187 - Fire Dept Equipment606,000 606,000 189 - Story Mansion Special Revenue57,302 57,302 191 - Bozeman Tourism BID1,200,000 1,200,000 300 - SID Revolving Fund224,011 224,011 303 - G.O. Refunding Series 2012276,900 276,900 304 - Bond S & I Parks & Open Space Bond1,088,138 1,088,138 305 - 2007 Downtown TIF Bonds423,673 423,673 310-447- SID Funds385,800 385,800 500-566 - Construction Funds32,000 284,011 316,011 600 - Water Fund2,085,584 4,534,920 4,316,009 1,165,630 12,102,143 610 - Water Impact Fee1,586,020 600,000 2,186,020 620 - Waste Water Fund2,017,844 3,969,269 3,352,500 1,476,059 10,815,672 630 - Waste Water Impact Fee8,625,000 8,625,000 640 - Solid Waste Fund1,351,142 2,312,942 100,000 3,764,084 641 - Landfill Closure Costs250,000 61,417 311,417 650 - Parking Fund353,362 393,978 112,031 859,371 670- Storm Water Fund408,583 240,373 635,000 160,346 1,444,302 710 - Vehicle Maintenance481,127 778,335 1,259,462 720 - Health-Medical Insurance4,820,912 4,820,912 750 - Public Works Administration1,693,903 581,006 106,548 2,381,457 35,293,412$ 36,026,203$ 34,519,652$ 5,295,403$ 5,467,731$ -$ 116,602,401$ % of Total30%31%30%5%5%0%100%57255 Activity/Department Details 59 257 Activity/Department Detail As stated in the Budget Summary the budget is separated out by activity. Within those activities are the Departments. See below the Activities and the corresponding Departments The Department have Divisions within them and there are specific funds that they use for operational budgeting. The following table lists the Department and corresponding division and budgeted fund for the current fiscal year. Activity Genral Government City Commission City Manager Municipal Court City Attorney Finance Human Resources Information Technology Community Development Facility Management Public Safety Police Fire Building Inspection Parking Public Service Public Works Admin Streets Storm water Water Water Reclamation Facility Solid Waste Collection & Recycling Vehicle Maintenance Public Welfare Parks and Recreation Library Economic Development Other Non‐ Departmental Debt Service Special Improvement District 60 258 Activity Departments Divisions and Budget Units Budgeted Funds City Commission City Commission, Special Bodies (Ethics Board)General City Manager Administration, City Clerk, Sustainability and Neighborhoods, General Municipal Court Operations General City Attorney Administration, Civil Litigation, Criminal Litigation, Criminal Victim‐Witness General, Victim Witness Advocate Finance Administration, Accounting, Treasury General Community Development Operations, Development Review, Long‐Range Planning, Historical Preservation Community Development Facilities Maintenance City Hall, City Hall Annex, Shop Complex, Professional Building, Senior Center, Library, Fire Station #2, Fire Station #3, Vehicle Maintenance Shop General Information Technology Operations General, Capital Projects Human Resources Operations General Police Operations, Crime Control & Investigations, Drug Forfeiture, Parking, Animal Control General, Drug Forfeiture, Law & Justice Center, Domestic Violence Fire Administration, Operations, Operational Readiness, Fire Prevention, Special Fire Services, Hazardous Materials, Disaster & Emergency Services General, Fire Impact Fees, Fire Special Revenue, Fire Capital/Equipment Replacement Building Inspection Operations, Life Safety Building Inspection Parking Administration, Operations, Parking Garage Parking Enterprise Public Works Administration Administration, GIS, Engineering, Snow Removal Enforcement, Weed Cutting Enforcement, Sidewalk Repair Program, Sidewalk & Curb Construction, SID Construction Internal Service Fund Streets Operations, Maintenance, Construction, Snow & Ice Removal, Lighting, Traffic Signs & Markers General, Community Transportation, Gas Tax, Street Maintenance, Street Impact Fees, SIDs, Arterial Construction Water Operations, Water Conservation, Construction, Utility Locates, Water Services, Construction, Reservoirs, Meters, Hydrants, Valves, Repairs Water, Water Impact Fees Wastewater Operations, Utility Locates, Services, Construction, Manholes, Televising, Flushing, Repairs, Laboratory, Sludge Injection, Pretreatment Wastewater, Wastewater Impact Fees Storm Water Admin and Mapping, Operations, Capital Improvements Stormwater Enterprise Solid Waste Collection & Recycling Collections, Recycling, landfill Solid Waste Enterprise Vehicle Maintenance Operations Internal Service Fund Parks & Recreation Cemetery, Parks, Forestry, Recreation General, Parks & Open Space Bond, Tree Maintenance, Recreation Special Revenue, Story Mansion Operating Library Operations, Technical Services, Information, Children’s Services, Circulation, Construction General, Library Special Revenue, Library Depreciation Economic Development Economic Development General, Downtown TIF, Community Housing, Housing Revolving Loans, North 7th. TIF, North East Urban Renewal TIF, Downtown BID, Development Impacts, Tourism BID Other Non Departmental, GO, SID & TIF Bonds, SID Revolving Insurance, Contingencies, Transfers, Beautification of Bozeman, Band, Senior Transportation, Principal & Interest General, Permissive Medical Levy, Senior Transportation, Employee Health Insurance, GO Refunding Series 2012, Parks & Open Space Bond, Downtown TIF, SID Bonds General Government Public Safety Public Works Public Welfare 61 259 City Commission About: The City Commission is the legislative body of city government. It is comprised of a mayor and four commissioners. Members of the City Commission are elected at large for four year overlapping terms. Responsibilities of the Commission include: establishment of policies governing the operation of the City, enactment of ordinances and resolutions, adoption of the annual operating budget, levying of taxes, and appointment of members to citizen advisory boards and commissions. The Commission employs a City Manager and is responsible for the oversight and evaluation of the Manager’s performance as the chief administrative officer of the City. The City Commission’s budget is appropriated in the General fund. Major Objectives:  Work closely with the administration and other government officials to lobby for state legislation beneficial to cities.  Develop broad‐based city‐wide support for economic development and to foster coordination of public and private resources as a means of enhancing economic prosperity and environmental quality.  Improve public facilities and the quality of services delivered to the public in order to meet the needs of the citizenry.  Cooperate with other governmental entities in order to provide services efficiently and effectively and in a manner resulting in the most equitable distribution of the tax burden.  Ensure that all decisions are protective of the health, safety and general welfare of the citizens of this community. Accomplishments  Adopting the Strategic Plan  Working with the City employees to carry out the adopted Vision and Strategic Plan Workload Indicators Budget Issues and Details  Business Expenses Increase ‐ $7,000  Commission Room Upgrade ‐ $85,000 0 20 40 60 80 100 120 FY16 Actual FY17 Actual FY18 Estimated FY19 Budget Commission Workload Indicators COMMISSION MEETINGS HELD EXECUTIVE SESSIONS RESOLUTIONS PASSED ORDINANCES PASSED 63 261 Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended CITY COMMISSION 010 General Fund 179,765 234,148 300,016 Department Budget by Fund Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change CITY COMMISSION Salaries & Benefits 128,196 128,798 131,266 1.9% CITY COMMISSION Operating 50,315 100,350 82,200 ‐18.1% CITY COMMISSION Capital ‐ 5,000 85,000 1600.0% CITY COMMISSION Debt Service 1,254 ‐ 1,550 0.0% CITY COMMISSION Transfers ‐ ‐ ‐ 0.0% TOTALS 179,765 234,148 300,016 28.1% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change CITY COMMISSION 1110 City Commission 234,148 300,016 65,868 28.1% Department Budget by Division 64 262 City Manager About: The role of the City Manager is to operate at the will of the City Commission with a focus on policy, long range planning, and strategy. The purpose of the City Manager’s office is the administration of the City operations and is to provide overall leadership, direction, coordination, and support for the City’s activities and workforce. The City Manager provides information to the City Commission in an effort to support their ability to make informed policy decisions. The City Manager department includes the City Clerk, Sustainability program, and Neighborhoods program. The City Manager’s budget is appropriated in the General fund.  City Clerk‐ dedicated to preparing the proceedings of the City Commission and preserving the City records, using integrity to offer timely and courteous service to the citizens and staff of Bozeman Montana, along with enhancing the ability of the citizenry to participate in local government.  Sustainability‐ Coordinates with city departments and community stakeholders to advance our Climate Action Plan and reduce greenhouse gas emissions. Focus areas include: energy efficiency and conservation, renewable energy, alternative transportation options, and climate resiliency.  Neighborhoods‐ provides multiple modes of communication between Bozeman neighbors, City staff and commissioners, as well as other stakeholders like MSU, non‐profit groups, and the Downtown Business Association. The Neighborhoods Program strives to convey information, updates, and policy changes and processes to the public, and to invite public comment and participation to City operations and policy decisions. Major Objectives: The City Manager’s office is support of the Mission, Values, and Goals of the City and to implement the City’s Strategic Plan.  City Clerk‐ To support the City Commission and to preserve the City records.  Sustainability‐ Implement, update, and track progress on the City’s Municipal and Community Climate Action Plans. Advance planning and preparedness for the anticipated impacts of climate change.  Neighborhoods‐ Create understanding of the Neighborhoods Program among Bozeman neighbors and increase those neighborhoods represented by official Neighborhood Associations Key areas, as identified in the City’s Strategic Plan for the City Manager’s Office, are:  A well‐planned city with a focus on safety, sustainability and inclusivity  A community that supports creativity, education, and an innovative economy  A high performing organization that utilizes best practices to anticipate future needs, and engages the community for continuous improvement 65 263 Accomplishments The City Manager joined the City of Bozeman half way through FY18 and helped with to refine the activities to accomplish the strategic plan. The City Manager’s Office looks forward to implementing the Communications Position, and adopting and implementing the Strategic Plan. Sustainability updated our community‐wide greenhouse gas emissions inventory, demonstrating a 5% reduction in greenhouse gas emissions since 2012. Neighborhoods has grown to serve about a third of the City’s residential housing. Workload and Performance Indicators Budget Issues and Details Administration ‐ Increases in many areas as we continue to adjust to a new City manager, and prepare for a Communications position. These adjustments can primarily be seen in the Travel and Training, Supplies, and Dues and Certification accounts. Clerk‐ Staffing increase and software for automation. Sustainability‐ Update our Climate Action Plan for the community and operations, including greenhouse gas emissions mitigation and climate resiliency‐$85,000, this is a Strategic plan item as well. Neighborhoods‐ Increase in marketing and engagement workshop supplies to continue outreach efforts. Budget 0 1000 2000 3000 4000 5000 PAGES OF MINUTES FROM EXECUTIVE SESSIONS PAGES OF MINUTES BIDS/ RFPs / RFQs PROCESSED BOARD APPOINTMENTS PROCESSED DOCUMENTS PROCESSED FOR COMPLETION AND PUBLIC ACCESS RECORDS REQUESTS PROCESSED CIty Manager Office Workload Indicators FY19 Budget FY18 Estimated FY17 Actual Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended CITY MANAGER 010 General Fund 1,425,769 1,386,864 1,584,864 Department Budget by Fund 66 264 Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change CITY MANAGER Salaries & Benefits 1,110,026 1,095,457 1,193,085 8.9% CITY MANAGER Operating 298,689 282,357 380,679 34.8% CITY MANAGER Capital 15,800 8,500 9,000 0.0% CITY MANAGER Debt Service 1,254 550 2,100 281.8% CITY MANAGER Transfers ‐ ‐ ‐ 0.0% TOTALS 1,425,769 1,386,864 1,584,864 14.3% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change CITY MANAGER 1210 City Administration 918,541 944,508 25,967 2.8% CITY MANAGER 1220 City Clerk 207,835 297,839 90,004 43.3% CITY MANAGER 1260 Neighborhood Programs 90,576 96,791 6,215 6.9% CITY MANAGER 8250 Sustainability 169,912 245,726 75,814 44.6% TOTALS 1,386,864 1,584,864 198,000 14.3% Department Budget by Division 67 265 City Attorney About: The City Attorney is the legal advisor and primary attorney for the city and as such is responsible for protecting the legal interests of the city and directing its legal operations. The City Attorney, Assistant City Attorneys and Prosecutors: represent the city before all courts, administrative agencies, and all legal proceedings involving the City; prosecute misdemeanors including DUI, domestic violence related cases, and other offenses civil and criminal offenses committed within City; provide legal advice to the City Commission, City Manager, and all departmental staff and agencies and boards; and prepare or review contracts, deeds, resolutions, ordinances, and other municipal documents. The City Attorney’s Office also oversees litigation involving the city conducted by appointed counsel. The City Attorney’s budget is appropriated in the General Fund. Major Objectives:  To work with the Bozeman Police Department and MSU Police Department to enforce state laws and city ordinances pertaining to misdemeanor offenses within the city.  To work with other city personnel and officials in enforcing city ordinances including zoning, building code, fire code, etc.  To review legitimate complaints from citizens for the filing of criminal offenses and, if accepted, prosecute the violations in court.  To prosecute criminal cases in a timely and efficient manner in the best interests of justice, the best interests of the citizens of Bozeman, and the interests of victims of crime. Accomplishments  Demonstrated improvement in effectiveness of informing police officers and other witnesses of cancelled or amended dates for hearings and trials.  Promoted prosecutor to Chief Prosecutor and effectively implemented the new role into the department and organization.  Resolved several significant pieces of litigation (Digester; Malpractice case) Workload and Performance Indicators 0 20 40 60 80 100 120 140 160 Appeals: Filed by Defense Appeals: Filed by State Bench Trials : Guilty Bench Trials: Not Guilty CCJI Requests: Completed Requests Civil Files Created: # of Files Created Expungement Requests: Responses Filed Jury Trials: Guilty Jury Trials: Not Guilty MMIA Claims: Claims Filed City Attorney Indicators FY19 Budget FY18 Estimated FY17 Actual 69 267 Budget Issues and Details  $10,000 for connecting JustWare (criminal software) to Zuercher (criminal records software). First year includes a $5,000 license and a $5,000 fee for creating the software bridge. Ongoing will be approx. $5,000 per year.  Begin the process of going “paperless.” The first step will be to provide the prosecutors Surface Pros (included in IT budget) and to provide the legal assistant desktop scanners. We will also need a docking station and monitor at the L&J office as well as external CD players for use by prosecutors in court for playing video.  Increase in bar dues for all seven lawyers. Rates went up to just under $500/year. Budget 0 200 400 600 800 1000 1200 1400 1600 New Case #s by Primary Offense: All DUIs New Case #s by Primary Offense: Domestic New Case #s by Primary Offense: Muni Code New Case #s by Primary Offense: Remaining… New Case #s by Primary Offense: Traffic New Cases: CITY New Cases: MSU City Attorney Indicators FY19 Budget FY18 Estimated FY17 Actual Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended CITY ATTORNEY 010 General Fund 1,165,824 1,246,948 1,258,873 CITY ATTORNEY 174 Victim Witness Advocate 54,477 150,000 150,000 1,220,301 1,396,948 1,408,873 Department Budget by Fund TOTALS Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change CITY ATTORNEY Salaries & Benefits 961,499 1,037,748 1,119,223 7.9% CITY ATTORNEY Operating 252,569 359,200 289,650 ‐19.4% CITY ATTORNEY Capital 6,234 ‐ ‐ 0.0% CITY ATTORNEY Debt Service ‐ ‐ ‐ 0.0% CITY ATTORNEY Transfers ‐ ‐ ‐ 0.0% TOTALS 1,220,302 1,396,948 1,408,873 0.9% Department Budget by Category 70 268 Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change CITY ATTORNEY 1460 Criminal Prosecution ‐ General 1,000 1,000 ‐ 0.0% CITY ATTORNEY 1430‐ Civil Litigation 115,000 25,000 (90,000) ‐78.3% CITY ATTORNEY 1410 City Attorney 1,130,948 1,232,873 101,925 9.0% CITY ATTORNEY 1462 Criminal Prosecution ‐ Victim/Witness 150,000 150,000 ‐ 0.0% TOTALS 1,396,948 1,408,873 11,925 0.9% Department Budget by Division 71 269 Finance Department About: The Finance Department is charged with the overall Finance, Accounting and Treasury administration of the City. The Department is comprised of three divisions: Administration, Accounting, and Treasury. The Finance Department provides support to other departments including financial planning, budgeting, insurance administration, accounting and financial statement preparation, data processing, collection and investment of City funds, debt administration, utility billing, special improvement district accounting, and development of internal controls. The Finance Department is budgeted out of the General Fund but some of its costs are allocated to the Enterprise funds for the support of their financial operations. Major Objectives:  To manage and account for the City's finances in accordance with Generally Accepted Accounting Principles (GAAP), as set forth by the Governmental Accounting Standards Board (GASB).  To prepare a Comprehensive Annual Financial Report (CAFR) in conformity with GAAP  To prepare a comprehensive budget on an annual basis that encompasses all funds of the City.  To monitor all department grants for compliance with federal and state regulations and reporting requirements.  To assure efficient and effective management of the public's resources by providing quality financial services.  To safeguard and account for City assets and to provide accurate and timely budgetary and financial data to management, City Commission, and the citizens of Bozeman. Accomplishments  Government Finance Officers Association Awards for the Comprehensive Annual Financial Report and Budget book  Banking Services and Audit Firm Requests for Proposals  Rate and fee studies in many areas and funds Workload and Performance Indicators 166,000 169,000 172,000 175,000 16,893 17,200 17,463 18,000 10,915 11,800 12,000 12,350 FY16 Actual FY17 Actual FY18 Estimated FY19 Budget Finance Indicators Accounting: Accounts Payable Checks Processed Treasury: SID Statements Issued & Processed Treasury: Utility Bills Issued & Processed 73 271 Budget Issues and Details Personnel costs are reduced with utility billing clerks being moved to the Internal Service fund 750 to be allocated to the enterprise funds that they serve. Increases in training with newer staff and new financial reporting software component for $35,000 to help with pulling information from the ERP system. Budget Achievement FY16 Actual FY17 Actual FY18 Estimated City's Bond Rating: General Obligation Aa3 Aa2 Aa2 Certificate of Achievement for Excellence in Financial Reporting RECEIVED APPLIED WILL APPLY Distinguished Budget Presentation Award RECEIVED RECEIVED RECEIVED Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended FINANCE 010 General Fund 995,131 1,065,951 997,847 Department Budget by Fund Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change FINANCE DEPARTMENT Salaries & Benefits 774,102 876,140 756,309 ‐13.7% FINANCE DEPARTMENT Operating 208,269 189,811 197,538 4.1% FINANCE DEPARTMENT Capital 12,760 ‐ 44,000 0.0% FINANCE DEPARTMENT Debt Service ‐ ‐ ‐ 0.0% FINANCE DEPARTMENT Transfers ‐ ‐ ‐ 0.0% TOTALS 995,131 1,065,951 997,847 ‐6.4% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change FINANCE DEPARTMENT 1510 Finance Administration 159,170 269,421 110,251 69.3% FINANCE DEPARTMENT 1520 Accounting 500,164 467,114 (33,050) ‐6.6% FINANCE DEPARTMENT 1530 Treasury 406,617 261,312 (145,305) ‐35.7% TOTALS 1,065,951 997,847 31,636 3.0% Department Budget by Division 74 272 Facilities Management About: The Facilities Management budget accounts for costs associated with sustaining operations with limited discretionary spending to City owned buildings and grounds including: City Hall; Fire Stations #1, #2 and #3; City Shop Complex; Alfred M. Stiff Professional Building; Bozeman Public Library; and the Bozeman Senior Center. Facilities Management is also responsible for coordinating remodeling, renovations, and new construction projects. Contracted services include activities such as: janitorial services; snow removal; lawn care; and building systems including elevator and fire suppression systems, heating, ventilation, air conditioning systems, mechanical controls, and building generators. The department also provides support to other divisions with their buildings, grounds, contract service, internal projects and construction related services as requested. Major Objectives:  Provide a safe, comfortable, and professional working environment in all city facilities.  Maintain all buildings and related equipment in good working condition in a proactive manner that will help extend useful life.  Maintain a proactive approach for long‐term facility planning and project scheduling in order to avoid costly problems of deferred maintenance.  Assure city buildings meet or exceed all applicable building codes, OSHA, and ADA requirements.  Implement building design, maintenance, and operational practices resulting in energy saving measures. Accomplishments  Completed, or will complete, all the CIP projects funded in FY18 and remaining from FY17  Anticipated for FY17: Retooling of Cityworks asset management, tracking and help desk functions  Support Story Mill Recreation Center Renovation  Review and update Facility Condition Reports  Improve drainage and pedestrian access at the Library Budget Issues and Details The budget includes many Capital Improvement items at City Hall and Professional building. The major expenditure is for the $300,000 remodel of the Commission room of City Hall. The items are described at length in the Capital Improvement Plan. There has been an increase for custodial needs. Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended FACILITIES MANAGEMENT 010 General Fund 1,288,646 2,557,757 1,887,352 Department Budget by Fund 75 273 Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change FACILITIES MANAGEMENT Salaries & Benefits 238,846 311,147 350,572 12.7% FACILITIES MANAGEMENT Operating 899,998 979,754 1,149,749 17.4% FACILITIES MANAGEMENT Capital 149,802 164,750 387,031 134.9% FACILITIES MANAGEMENT Debt Service ‐ ‐ ‐ 0.0% FACILITIES MANAGEMENT Transfers ‐ ‐ ‐ 0.0% TOTALS 1,288,646 1,455,651 1,887,352 29.7% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change FACILITIES MANAGEMENT 1810 City Hall 481,166 833,900 352,734 73.3% FACILITIES MANAGEMENT 1820 Fire Station #1 45,430 51,659 6,229 13.7% FACILITIES MANAGEMENT 1830 Shops Complex 97,280 109,159 11,879 12.2% FACILITIES MANAGEMENT 1840 Professional Building 295,735 320,504 24,769 8.4% FACILITIES MANAGEMENT 1850 Senior Center 147,115 83,465 (63,650) ‐43.3% FACILITIES MANAGEMENT 1860 Library 279,990 368,670 88,680 31.7% FACILITIES MANAGEMENT 1870 Fire Station #2 21,425 21,535 110 0.5% FACILITIES MANAGEMENT 1880 Fire Station #3 50,445 59,239 8,794 17.4% FACILITIES MANAGEMENT 1890 Vehicle Maintenance Facility 37,065 39,221 2,156 5.8% TOTALS 1,455,651 1,887,352 431,701 29.7% Department Budget by Division 76 274 Information Technology Department About: The Information Technology Department purpose is to manage and operate the City's enterprise applications and networking services. The division provides technology services to the City departments and customers; support, training and research for City staff; and manages and maintains daily operations of the data centers. Major Objectives: The Department supports the entire City’s Information Technology needs. Accomplishments  Commission Room Production Equipment Replacement  Continued to upgrade the City Website to enhance the public’s access to City information  Assisted with Executime Implementation  Upgraded our VMWare Environment to accommodate GIS Server needs  Continue upgrades to aging routers and switches at selected locations  Transition to SIP trunks for redundant phone Service  Security Camera Install/Configuration in multiple City Facilities Workload and Performance Indicators Budget Issues and Details Increase in software licenses our occurring in FY19 and have typical three year cycle. There are enhancements to technology and storage as part of the Capital Improvement Plan and the continued rotation of desktop replacements. 0 200 400 600 800 1000 1200 1400 1600 1800 FY16 Actual FY17 Actual FY18 Estimated FY19 Budget Help Desk Calls Created and Completed 77 275 Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended INFORMATION TECHNOLOGY 010 General Fund 955,335 978,222 1,331,185 Department Budget by Fund Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change INFORMATION TECHNOLOGY 1910 Information Technology 978,222 1,331,185 352,963 36.1% Department Budget by Division 78 276 Human Resources Department About: The Human Resources Department purpose is to support City functions by ensuring the capability and stability of the workforce. The manager supports administrators and directors with current lawful information that provides sound recruitment practices and protects the employment rights of the City and the workforce member. Major Objectives:  Process the City’s payroll and process all related payment and tax filings  Mange the City’s employ benefits  Monitor compliance with labor contracts, employee handbook, laws, rules and regulations  Support Strategic Plan objectives as the pertain to the City’s workforce Accomplishments  Implemented Electronic Time and Attendance  Delivered New Employee Handbook  Recruitment – filled 160 positions  Payroll – monthly self‐audits, 557 W‐2s issued  Performance Evaluations – increased focus on accuracy and completion  Worker’s Compensation – model for MMIA  Completed Data Collection for Equal Pay Initiative, Began Analysis Workload and Performance Indicators *Calendar years are used for data compilation 1656 1603 1546 1987 111 125 132 160 47 36 31 36 2014 2015 2016 2017 Recruitment Job Applications Received Positions Filled Recruitment Cycle Time – post to final offer (avg.) 79 277 Budget Issues and Details Increases for hiring advertising for diversity and increase for background checks for new positions. Increase for training of department staff and scheduling system upgrade to time and attendance software. Budget 0 100 200 300 400 500 600 W‐2's Issued New Positions (FY) Voluntary Resignations Involuntary Terminations MPERA System Retirements Health Insurance Wellness Screening Participants Human Resources Indicators 2017 2016 2015 2014 Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended HUMAN RESOURCES 010 General Fund 385,587 413,390 540,618 Department Budget by Fund Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change HUMAN RESOURCES Salaries & Benefits 285,475 331,290 408,518 23.3% HUMAN RESOURCES Operating 70,352 82,100 97,100 18.3% HUMAN RESOURCES Capital 29,760 ‐ 35,000 0.0% HUMAN RESOURCES Debt Service ‐ ‐ ‐ 0.0% HUMAN RESOURCES Transfers ‐ ‐ ‐ 0.0% TOTALS 385,587 413,390 540,618 30.8% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change HUMAN RESOURCES 2010 Human Resources 413,390 540,618 127,228 30.8% Department Budget by Division 80 278 Community Development Department About: The Community Development Department plans for the growth and development of the City of Bozeman. Working with property owners, the design community, residents and business owners to plan, build and grow our community by considering the needs of the current and future residents and property owners within the city boundaries. Major elements of our work consist of: Long Range Planning, Development Review, Historic Preservation, Impact Fees, Affordable Housing and Boards Commissions Served. The Community Development Department’s budget is appropriated in the special revenue Planning Fund. Major Objectives: Provide exemplary customer service by making the planning process accessible, understandable, and efficient. Evaluate and make recommendations to the Planning Board, City Commission, and /or Director of Public Works on all applications for annexations and subdivisions of land. Evaluate and make recommendations to the Development Review Committee, Design Review Board, Zoning Commission and City Commission on all proposals for site development. Review business licenses and building permit applications for compliance with the Zoning Ordinance. Aid the City Commission and the Community Affordable Housing Advisory Board in implementing the inclusionary housing ordinance. Support the City’s economic development programs.Accomplishments Revised City’s Unified Development Ordinance (UDC) to advance community goals and Commission direction. Supported the Bozeman Community Plan and Economic Development Plan Continued coordination and cooperation on planning issues with Gallatin County, City of Belgrade, School District 7, Montana State University, Montana Department of Transportation, Gallatin Valley Land Trust, and other public and private organizations.Budget Issues and Details Increases are due to contracted services for strategic plan action items. Program staff hired third quarter FY18 increased the Workforce Housing Fund with getting the program started. The capital expenditure is the department’s portion of the building remodel. 81 279 Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended COMMUNITY DEVELOPMENT 100 Community Development Fund 965,863 1,505,363 1,661,194 COMMUNITY DEVELOPMENT 120 Workforce Housing fund 284,401 324,400 371,858 1,250,264 1,829,763 2,033,052 Department Budget by Fund TOTALS Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change COMMUNITY DEVELOPMENT Salaries & Benefits 699,975 971,694 1,069,403 10.1% COMMUNITY DEVELOPMENT Operating 550,289 748,069 662,431 ‐11.4% COMMUNITY DEVELOPMENT Capital ‐ 110,000 301,218 173.8% COMMUNITY DEVELOPMENT Debt Service ‐ ‐ ‐ 0.0% COMMUNITY DEVELOPMENT Transfers ‐ ‐ ‐ 0.0% TOTALS 1,250,264 1,829,763 2,033,052 11.1% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change COMMUNITY DEVELOPMENT 1610 Planning Operations 682,473 798,553 116,080 17.0% COMMUNITY DEVELOPMENT 1620 Development Review 500,467 513,353 12,886 2.6% COMMUNITY DEVELOPMENT 8230 Urban Development & Housing 324,400 371,858 47,458 14.6% COMMUNITY DEVELOPMENT 1630 Long‐Range Planning 322,423 349,288 26,865 8.3% TOTALS 1,829,763 2,033,052 203,289 11.1% Department Budget by Division 82 280 Municipal Court About: The Municipal Judge is an Elected Position. Municipal Court accounts for costs associated with the judicial branch of City government, which includes one full‐time judge and one three quarter‐time judge, chief clerk, line clerks, and related operating costs. The Municipal Court hears cases involving city ordinances, misdemeanor cases defined by state criminal codes, and may conduct (preliminary hearings) in felony cases. The Municipal Judge is elected every 4 years in a nonpartisan election held in conjunction with the City's regularly scheduled general election. The Municipal Court’s budget is appropriated in the General fund. Major Objectives: Maintain an efficient collection system concentrating on Municipal Services Bureau and collection of fines and restitution. Continue effective communications with the City Attorney, Prosecutor, Law Enforcement, and Public Defender’s Office.Budget Issues and Details Increases in many areas as we continue to adjust to a new City manager, an additional Assistant City Manager, and prepare for a Communications position. These adjustments can primarily be seen in the Travel and Training, Supplies, and Dues and Certification accounts. The addition of the Veteran Court grant has added a fund, grant revenue and appropriations for the program. Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended MUNICIPAL COURT 010 General Fund 719,179 943,811 867,868 MUNICIPAL COURT 178 Veteran Court ‐ ‐ 87,156 719,179 943,811 955,024 TOTALS Department Budget by Fund Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change MUNICIPAL COURT Salaries & Benefits 578,841 681,029 697,956 2.5% MUNICIPAL COURT Operating 140,338 249,782 257,068 2.9% MUNICIPAL COURT Capital ‐ 13,000 ‐ ‐100.0% MUNICIPAL COURT Debt Service ‐ ‐ ‐ 0.0% MUNICIPAL COURT Transfers ‐ ‐ ‐ 0.0% TOTALS 719,179 943,811 955,024 1.2% Department Budget by Category 83 281 Police Department About: The Bozeman Police Department budget accounts for costs associated with providing all law enforcement services to the citizens of the City of Bozeman. The general fund budget primarily supports the operation of the patrol, investigative and support services divisions. Officers from these divisions are tasked with detecting, preventing, and investigating all crimes occurring within the City as well as providing a broad range of public safety services. PATROL DIVISION: The patrol officers of the Bozeman Police Department provide coverage for the City of Bozeman 24 hours a day. They respond to all types of calls for service, performing a variety of duties based on the type of call and the resulting need. SUPPORT SERVICES DIVISION: The Division consists of animal control, code compliance, and a community resource officer. The division is also responsible for vehicle procurement and maintenance, uniform and equipment procurement, departmental training and standards, and police officer recruitment and hiring. Code Compliance includes neighborhood issues such as abandoned vehicles, snow removal. The division also coordinates citizen volunteers, and handles the bicycle registration program and abandoned bicycle auction. DETECTIVE DIVISION: The Detective Division is responsible for investigating felony criminal activity including crimes against persons, sexual offenses, crimes against children, internet crimes, property crimes and other complex investigations. Detectives are responsible for conducting background and internal affairs investigations, maintaining the Sexual and Violent Offender Registry and assisting the patrol division and other agencies with complex cases. DRUG FORFEITURE: The drug forfeiture budget accounts for the City of Bozeman's costs related to the drug enforcement efforts within the Missouri River Drug Task Force (MRDTF) as outlined in the MRDTF Local Drug Task Force Inter‐local Agreement. The MRDTF encompasses seven counties to include Gallatin, Lewis and Clark, Broadwater, Meagher, Madison, Sweet Grass and Park. This task force is focused on the investigation of local and regional drug and firearm offenses.Major Objectives: Detect, investigate, and proactively prevent criminal activity. Apprehend and hold criminal offenders accountable for their illegal behavior. Participate in court proceedings. Provide assistance to those who cannot care for themselves or those in danger of physical harm. Provide crime prevention education to schools, civic groups, businesses, and the public. • Develop positive programs, in partnership with the members of our community, which incorporate the concept of shared responsibility for public safety.Accomplishments Anticipated for FY19: Continue to work with City leadership to implement strategic plan into police planning and operations Continue to work jointly with County/911 to fully implement new Records Management Continue to maintain highly trained Bozeman Police Department employees Continued focused recruitment efforts that enhances a diverse workforce that reflects our community 85 283  Implement a multi‐jurisdictional Special Victims Unit (SVU) whose goal is to provide a comprehensive approach to victims of sexual assault  Implement use of part‐time officers to assist patrol shortages in the area of special events and court security Workload and Performance Indicators 86 284 Budget Issues and Details Increase in training and some operational costs. Capital Improvement Plan implementation has replacement of several police vehicles. Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended POLICE 010 General Fund 8,515,713 7,890,215 8,541,786 POLICE 125 Drug Forfeiture 249,715 221,124 231,210 POLICE 138 Law & Justice Center Prepaid Rent 19,125 19,125 19,125 POLICE 139 Police Special Revenue 57,551 ‐ ‐ POLICE 140 Police Domestic Violence 181,318 219,030 ‐ 9,023,422 8,349,494 8,792,121 TOTALS Department Budget by Fund Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change POLICE Salaries & Benefits 7,777,855 7,171,689 7,534,344 5.1% POLICE Operating 1,069,280 1,098,805 870,777 ‐20.8% POLICE Capital 176,287 79,000 387,000 389.9% POLICE Debt Service ‐ ‐ ‐ 0.0% POLICE Transfers ‐ ‐ ‐ 0.0% TOTALS 9,023,422 8,349,494 8,792,121 5.3% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change POLICE 3040 Drug Forfeiture 221,124 231,210 10,086 4.6% POLICE 3020 Crime Control & Investigations 1,598,021 2,069,015 470,994 29.5% POLICE 3010 Police Operations 6,319,406 6,250,961 (68,445) ‐1.1% POLICE 3070 Animal Control 210,943 240,935 29,992 14.2% TOTALS 8,349,494 8,792,121 442,627 5.3% Department Budget by Division 87 285 Fire Department About: The Fire Department budget is developed and administered to provide fire, rescue, hazardous materials, and emergency medical services throughout Bozeman while ensuring that firefighters are equipped and trained to meet nationally recognized minimum consensus standards. Additionally the budget provides resources necessary for the department to maintain a fire prevention program that is comprised of fire and life safety inspection, community outreach, school programs, rental safety initiatives, emergency preparedness, and public education. Major Objectives: Anticipated for FY 19: The primary objective of the department for the next fiscal year is to begin the process of implementing the findings from the 2017 Master Plan update while continuing the pursuit of organizational excellence via the accreditation process of the Center for Public Safety Excellence Commission on Fire Accreditation International. The updated Fire Master Plan provided forty‐two recommendations for the fire department to review and evaluate for the future growth, efficiency, and effectiveness of the fire department. A primary recommendation of the Fire Master Plan is the relocation of Fire Station 1 and 2, thus department administration will be working with City Administration to help develop a formalized station location plan. As the department continues to pursue accreditation, the completion of a city‐ wide risk assessment and standards of cover will be required. Accomplishments All members of the department now hold a nationally recognized Fire Instructor I level certification that is a 91% increase from 2016. The department completed the first phase of the Blue Card Hazard Zone Management program, which is a nationally recognized program for incident management. The department completed over 13,000 hours of training which 63% increase was over 2016. The department successfully implemented a new 800 MHz radio system replacing the outdated VHF radio system. The department successfully updated the Fire Protection Master Plan and obtained an improved ISO rating of Class 2.Workload and Performance Indicators A record number of calls, 4696, were answered during 2017, which was just over a 9% increase from calendar year 2016. This increase in service demand is not expected to flatten out or decrease anytime in the near future, rather the department expects to see another 10% or larger increase in service demands in 2017.Budget Issues and Details Implementation of the Fire Protection Master Plan / Pursuit of Accreditation via the Center for Public Safety Excellence Commission on Fire Accreditation International. Development of a Community Risk Analysis and Standards of Cover. Implementation of a station alerting system for emergency response notification. 89 287 Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended FIRE 010 General Fund 6,196,943 5,287,614 5,331,652 FIRE 113 Fire Impact Fees 14,779 50,000 ‐ FIRE 183 Fire Department Special Revenue 58,891 40,000 40,000 FIRE 187 Fire Capital & Equipment Replacement ‐ 530,500 606,000 6,270,613 5,908,114 5,977,652 Department Budget by Fund TOTALS Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change FIRE Salaries & Benefits 5,570,430 4,713,667 4,924,814 4.5% FIRE Operating 689,783 663,947 446,838 ‐32.7% FIRE Capital 10,401 530,500 606,000 14.2% FIRE Debt Service ‐ ‐ ‐ 0.0% FIRE Transfers ‐ ‐ ‐ 0.0% TOTALS 6,270,614 5,908,114 5,977,652 1.2% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change FIRE 3120 Fire Operations 5,254,171 5,329,959 75,788 1.4% FIRE 3160 Hazardous Materials 9,050 17,400 8,350 92.3% FIRE 3140 Fire Prevention 25,400 25,400 ‐ 0.0% FIRE 3110 Fire Administration 574,493 557,893 (16,600) ‐2.9% FIRE 3130 Operational Readiness 45,000 47,000 2,000 4.4% TOTALS 5,908,114 5,977,652 69,538 1.2% Department Budget by Division 90 288 Building Inspection About: The Building Inspection Division, reporting to the Community Development Department, accounts for expenditures utilized to monitor construction projects within the City of Bozeman Jurisdictional Area as allowed by state law and as adopted by the City Commission. The intent of the Division is to provide guidance and to enforce minimum building code standards to safeguard life, limb, health, property and public welfare by regulating and controlling the design, construction, quality of materials, use and occupancy, location and maintenance of all buildings and structures within this jurisdiction. This Division activities are recorded in the special revenue fund Building Inspection fund. Major Objectives: Work to improve our building permit issuance procedure wherever possible. Provide expert technical advice and consultation for our customers. Continue implementing and working with new technology in order to provide faster, higher quality, more accessible and streamlined services for our customers in the coming years.Accomplishments Worked to accomplish Department's major objectives throughout the year. Workload and Performance Indicators 91 289 Budget Issues and Details The biggest capital item is the fund’s portion of the building remodel. There is also new staffing for fire inspection a portion of code compliance. Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended BUILDING INSPECTION 115 Building Inspection Fund 1,756,622 2,086,952 2,660,416 Department Budget by Fund Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change BUILDING INSPECTION Salaries & Benefits 1,311,428 1,565,957 1,702,127 8.7% BUILDING INSPECTION Operating 393,353 488,495 706,608 44.6% BUILDING INSPECTION Capital 51,840 32,500 251,681 674.4% BUILDING INSPECTION Debt Service ‐ ‐ ‐ 0.0% BUILDING INSPECTION Transfers ‐ ‐ ‐ 0.0% TOTALS 1,756,621 2,086,952 2,660,416 27.5% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change BUILDING INSPECTION 3210 Building Inspection Operations 2,086,952 2,660,416 573,464 27.5% Department Budget by Division 92 290 Parking About: The Parking Services Division has responsibility for parking enforcement, and public permit sales, within the City of Bozeman, to include: Downtown (B‐3), MSU Residential Parking Permit District, Bozeman High School Residential Parking Permit District, Bridger Park Downtown Garage, four surface lots (Black, Rouse, N. Willson 31, N. Willson #2), and all on‐street parking. The Division’s activities are accounted for in an enterprise fund, the Parking Services Fund, which has three primary sources of revenue: Citations, Residential Parking Permits, monthly/annual leases and permits in the four surface lots and Bridger Park Downtown garage. Major Objectives: MISSION: The Bozeman Parking Commission is responsible for managing and regulating public parking in its districts to best serve the needs of its customers, businesses, residents, employees, and visitors. Accomplishments Replace the software, hardware, and revenue control/enforcement equipment that supports the management of public parking in Bozeman. Workload and Performance Indicators The Division will continue its goal of 11,000 citations and continue to maintain the current parking lots and garage. Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended PARKING 650 Parking Enterprise Fund 906,658 968,230 859,371 Department Budget by Fund Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change PARKING Salaries & Benefits 299,921 342,633 353,632 3.2% PARKING Operating 597,359 365,597 393,708 7.7% PARKING Capital 9,378 260,000 112,031 ‐56.9% PARKING Debt Service ‐ ‐ ‐ 0.0% PARKING Transfers ‐ ‐ ‐ 0.0% TOTALS 906,658 968,230 859,371 ‐11.2% Department Budget by Category 93 291 Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change PARKING 3330 Parking Garage Operations 197,022 217,805 20,783 10.5% PARKING 3310 Parking Administration 509,359 356,839 (152,520) ‐29.9% PARKING 3320 Parking Operations/Enforcement 261,849 284,727 22,878 8.7% TOTALS 968,230 859,371 (108,859) ‐11.2% Department Budget by Division 94 292 Public Works Administration About: The Public Works Administration budget unit includes the Director of Public Works, Engineering, and GIS. The Director of Public works has oversight responsibilities for water, wastewater and stormwater utilities, streets maintenance, signs and signals, vehicle maintenance, solid waste, engineering, and GIS. The Engineering Division‐ provides technical engineering in the preparation, review, and oversight in the planning, design, construction inspection and construction management of the City’s Public Works facilities including water treatment and distribution, wastewater collection and treatment, storm water collection and treatment, streets (with appurtenant curb, gutter, sidewalk and drainage facilities), traffic control facilities, solid waste, and other facility and infrastructure projects. The GIS Division‐develops, supports, delivers and promotes enterprise geographic data and spatial technologies to all levels of government and the public. The GIS Division performs a wide variety of data maintenance and analysis for most City departments and coordinates data sharing among various public and private agencies. The GIS Division manages the City’s asset management and deferred maintenance programs, including coordinated capital planning effort throughout Public Works. The GIS Division also implements and maintains the City’s work order management and maintenance system (Cityworks) as well as several public web mapping applications and data portals. Public Works Administration is accounted for in an Internal Service fund and then its costs are allocated to the funds where the functions its supports are allocated to. Major Objectives: To coordinate the activities of the Public Works department divisions. To establish and maintain policies, procedures and protocol for conducting the department's functions. To provide general oversight of department activities affected by new federal and state mandates. To assure the City’s long‐term master plans for water, wastewater, stormwater, and transportation facilities are implemented in a cost‐effective manner, and that all City infrastructure improvements are constructed in a quality manner to provide reliable service for the public’s immediate and long‐term needs. To deliver accurate and complete spatial data and analysis for the City of Bozeman and its citizens.Accomplishments Anticipated GIS accomplishments for FY19: Finalization of system architecture stabilization project, implementation of Cityworks in Solid Waste, expansion of high level of service of two additional departments, increases in transparency and access to city records, development of business intelligence tools, assistance with creation of parks maintenance district, creation of training materials for both staff and public. 95 293 Workload and Performance Indicators 0 10,000 20,000 30,000 40,000 50,000 60,000 FY 17 Actual FY18 Estimated FY19 Budgeted GIS Population Served per GIS FTE Interactive Map Visits 0 200 400 600 800 1000 Cityworks Domains/Departments Cityworks Users Asset Types Work Order Templates GIS FY19 Budgeted FY18 Estimated FY 17 Actual 96 294 Budget Issues and Details There are some technology updates for GIS included in the Capital Improvement Plan. Also, increased staff in Engineering to aid in the services levels for growth. Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended PUBLIC WORKS ADMIN 600 Water 1,396,943 1,705,473 ‐ PUBLIC WORKS ADMIN 562 #713 ‐ ‐ ‐ PUBLIC WORKS ADMIN 750 Public Services Admin ‐ ‐ 2,384,353 1,396,943 1,705,473 2,384,353 TOTALS Department Budget by Fund Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change PUBLIC WORKS ADMIN Salaries & Benefits 869,208 938,493 1,693,903 80.5% PUBLIC WORKS ADMIN Operating 518,791 563,080 557,902 ‐0.9% PUBLIC WORKS ADMIN Capital 8,944 203,900 132,548 ‐35.0% PUBLIC WORKS ADMIN Debt Service ‐ ‐ ‐ 0.0% PUBLIC WORKS ADMIN Transfers ‐ ‐ ‐ 0.0% TOTALS 1,396,943 1,705,473 2,384,353 39.8% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change PUBLIC WORKS ADMIN 4010 Public Services Administration 241,167 573,249 332,082 137.7% PUBLIC WORKS ADMIN 4020 Engineering 563,696 1,016,765 453,069 80.4% PUBLIC WORKS ADMIN 4025 GIS 900,610 794,339 (106,271) ‐11.8% TOTALS 1,705,473 2,384,353 678,880 39.8% Department Budget by Division 97 295 Streets About: The goal of the Street Maintenance division is to help provide for a network of safe roadways for the traveling public and access to desired destinations such as emergency services, schools, employment, shopping, community services, or other facilities in a quick, convenient, safe and comfortable manner while minimizing harmful effects on the environment. The fund associated with Street Maintenance are as follows:  STREET MAINTENANCE FUND: The street maintenance district division accounts for the expenditure of special assessments on property in the City for the repair and upkeep of the City's streets. Section 7‐12‐ 4401 MCA authorizes the City to create street maintenance districts for the purpose of maintaining its streets, alleys, and other public places. The maintenance districts were first created during fiscal year 1990‐91. Assessments are levied on each piece of property within the City limits and are recorded on the property owners SID notices annually. Collection takes place in November and May and provide the revenues for the street maintenance district program. The costs incurred in maintaining streets, alleys, and other public places within the maintenance district are assessed against each property within the district based on the assessable area of the property as a percentage of the entire assessable area of the district, exclusive of streets, avenues, alleys, and public places.  GAS TAX FUND: The gas tax division accounts for the expenditure of the City's share of state collected gas tax funds allocated to the City by the Montana Department of Transportation (MDT). Section 15‐70‐101 MCA provides that MDT shall allocate gas tax revenues to cities, towns, and counties. One‐half of the City's allocation is based on population and one‐half is based on street and alley mileage. The funds may be used only for construction, reconstruction, maintenance, and repair of streets and alleys. The funds may not be used for equipment purchases. Major Objectives:  Implement an efficient pavement management plan, in turn creating yearly maintenance programs for failing street infrastructure.  Utilize pavement condition assessment for planning and scheduling our repairs from potholes to complete reconstruction  Maintain streets and alley right‐of‐ways to allow traffic to move in a safe and prudent manner.  Improve the quality of summer and winter street maintenance work and communicate to the citizens so that they may be better informed and plan for it. Accomplishments Anticipated for FY18:  Complete all CIP improvements.  Implement updated Transportation Plan.  Facilitate street reconstruction projects identified in the adopted work plan. 99 297 Workload and Performance Indicators Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended STREETS 010 General Fund 108,295 122,331 ‐ STREETS 108 Community Transportation Fund 59,889 ‐ ‐ STREETS 110 Gas Tax Fund 157,342 960,500 1,171,500 STREETS 111 Street Maintenance Fund 5,275,151 5,925,008 5,974,325 STREETS 114 Street Impact Fees 5,103,238 11,965,049 6,418,000 STREETS 146 Lighting Districts 444,059 441,133 472,517 STREETS 500 Construction Funds 2,714,575 2,178,375 284,011 STREETS 124 Bozeman Area Bike Board 19 ‐ ‐ STREETS 141 Street Arterial Construction 641,727 3,668,345 3,568,000 14,504,295 25,260,741 17,888,353 TOTALS Department Budget by Fund 100 298 Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change STREETS Salaries & Benefits 1,370,643 1,563,694 1,629,339 4.2% STREETS Operating 3,894,929 2,448,271 2,864,918 17.0% STREETS Capital 8,427,824 20,221,669 12,351,511 ‐38.9% STREETS Debt Service 212,899 295,207 315,207 6.8% STREETS Transfers 598,000 731,900 727,378 ‐0.6% TOTALS 14,504,295 25,260,741 17,888,353 ‐29.2% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change STREETS 4110 Street Operations 16,708,404 10,944,247 (5,764,157) ‐34.5% STREETS 4120 Street Maintenance 960,500 1,171,500 211,000 22.0% STREETS 4130 Street Construction 6,680,396 4,681,165 (1,999,231) ‐29.9% STREETS 4150 Street Lighting 499,133 530,517 31,384 6.3% STREETS 4171 Traffic Signs & Markers 412,308 560,924 148,616 36.0% TOTALS 25,260,741 17,888,353 (7,372,388) ‐29.2% Department Budget by Division 101 299 Stormwater About: The Stormwater Divisions has three primary objectives:  Manage stormwater infrastructure through maintenance, improvement, and repair activities to ensure the adequate control and conveyance of urban stormwater runoff, reducing the City’s liability associated with flooding.  Protect and improve waterway health through educational initiatives, enforcement, and treatment infrastructure projects to safeguard the public, environment, and local waterways from pollution originating from the City’s urban landscape, active construction sites, municipal operations, and illicit discharge events.  Comply with MDEQ and USEPA environmental regulations through workflow development and strategic resource allocation to reduce the City’s probability of enforcement penalties due to insufficient pollutant control programs and reduction measures. The Division’s activities are accounted for in an enterprise fund, the Stormwater Fund. Major Objectives:  Maintain 20% of the City’s infrastructure network, including manholes, inlets, and underground pipes  Inspect 20% of the City’s active construction sites  Collect and dispose of over 187 tons of sediment through the operation of the Division that would have otherwise dumped into local waterways;  Inspect 20% of HOA and privately owned stormwater ponds  Implement Stormwater Sampling and Evaluation Plan Accomplishments (1) Maintain 20% of the City’s infrastructure network, including manholes, inlets, and underground pipes; (2) Inspect 20% of the City’s active construction sites; (3) Complete 100% of the Division’s planned capital projects; (4) Collect and dispose of over 187 tons of sediment through the operation of the Division that would have otherwise dumped into local waterways; (5) Inspect 20% of HOA and privately owned stormwater ponds; (6) Respond to and resolve 100% of reported pollution events; (7) Implement Stormwater Sampling and Evaluation Plan; and (8) Generate a Programmatic Evaluation: Report Card grade that evaluates the Divisions' performance. 103 301 Workload and Performance Indicators Budget Issues and Details 1) Four stormwater mechanical separation units, totaling $350,000 (STRM39); (2) 200’ of boulevard bio‐ retention stormwater treatment, totaling $50,000 (STRM36); (3) Two pipe replacements, totaling $100,000 (STRM51 and STRM13); (4) Numerous inlet replacements, totaling $100,000 (STRM48); (5) Administrative Staff vehicle purchase, totaling $35,000 (STRM54); and (6) Downtown Bozeman Creek Culvert Assessment, totaling $15,000 (STRM57). Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended STORM WATER 670 Storm Water Fund 1,646,212 1,488,360 1,444,302 Department Budget by Fund Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change STORM WATER Salaries & Benefits 365,482 451,548 408,583 ‐9.5% STORM WATER Operating 329,185 161,466 240,373 48.9% STORM WATER Capital 303,639 650,000 635,000 ‐2.3% STORM WATER Debt Service 193,906 225,346 160,346 ‐28.8% STORM WATER Transfers 454,000 ‐ ‐ 0.0% TOTALS 1,646,212 1,488,360 1,444,302 ‐3.0% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change STORM WATER 4520 Operations and Mtc 200,121 197,624 (2,497) ‐1.2% STORM WATER 4510 Admin, Enforc. + Mapping 708,239 646,678 (61,561) ‐8.7% STORM WATER 4530 Construction 580,000 600,000 20,000 3.4% TOTALS 1,488,360 1,444,302 (44,058) ‐3.0% Department Budget by Division 104 302 Water About: The operations of the City’s water utility is made up of two division and all operation are accounted for in the enterprise fund, the Water Fund:  The Water Treatment Plant (WTP) ‐ budget unit accounts for the costs associated with maintaining a quality drinking water supply for the City of Bozeman. The City has two treatment plants: The 22 million gallon per day (MGD) Sourdough Plant and the 3.7 MGD Lyman Creek Plant. All plants are operated 24 hours per day, 365 days per year.  The Water Operations‐ budget unit accounts for the costs associated with operating and maintaining the City's water transmission and distribution system. The Division is also responsible for: locating, maintaining, and repairing existing water lines and appurtenances; overseeing installation of new lines; installing water meters and reading all meters monthly. Water Operations is also responsible for maintaining the City’s two water pump stations. The Division maintains the entire water distribution system, ever mindful of its integrity and serviceability, while maintaining potable water through this system. Major Objectives:  The Water Treatment Plant (WTP) – o Protect the public health through optimization of the Sourdough Creek and Lyman Creek Water Treatment Plants. o Maintaining high‐quality drinking water of low turbidity, void of contaminants and meeting the water supply demands of the City of Bozeman. o Monitoring and maintaining water treatment plant facilities to ensure current needs are met and to anticipate future water quality and quantity needs.  The Water Operations‐ o Maintain and locate the City's water distribution system including mains, fire hydrants, valves, meters, raw water transmission mains, and pressure reducing valves and vaults. Repair and replace water infrastructure as needed: lead service lines, hydrants, mains, valves, etc. o Inspect all new infrastructure following installation prior to acceptance. Maintain a valve replacement program for leaky or inoperative valves. o Respond to water distribution problems 24 hours a day 7 days a week. o Develop and maintain a comprehensive and cost effective security system for our water distribution system Accomplishments Anticipated accomplishments for FY19: Completed construction the new 5.3 MG finished water storage tank. Cleaning of the Sourdough Intake and construction of a Log deck area for future watershed fuel reduction. Continued optimization of Both Plants. Continued Water Facility Plan and Water Conservation Program implementations. Continuing to Provide adequate quantity and quality water to our ratepayers with zero state or federal violations. Increased replacement of water distribution system pipes including lead service lines, which significantly enhances maintenance of the water distribution system. 105 303 Workload and Performance Indicators Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended WATER 600 Water Fund 10,995,317 11,967,455 12,102,143 WATER 610 Water Impact Fees 471,189 3,790,000 2,186,020 WATER 601 Water Plant Construction 2,148,219 ‐ ‐ WATER 602 Sourdough Tank Construction 1,937,242 ‐ ‐ 15,551,967 15,757,455 14,288,163 TOTALS Department Budget by Fund 106 304 Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change WATER Salaries & Benefits 3,418,375 3,079,228 2,085,584 ‐32.3% WATER Operating 4,328,424 4,766,817 3,968,372 ‐16.8% WATER Capital 6,491,658 5,998,400 6,468,577 7.8% WATER Debt Service 1,313,010 1,313,010 1,165,630 ‐11.2% WATER Transfers 500 600,000 600,000 0.0% TOTALS 15,551,967 15,757,455 14,288,163 ‐9.3% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change WATER OPERATIONS 5060 Meter Reading 577,962 568,090 (9,872) ‐1.7% WATER OPERATIONS 5080 Water Valves 17,500 17,500 ‐ 0.0% WATER OPERATIONS 5040 Water Construction 4,584,973 4,069,009 (515,964) ‐11.3% WATER OPERATIONS 5090 Main Repairs 20,000 20,000 ‐ 0.0% WATER OPERATIONS 5070 Hydrants 80,000 80,000 ‐ 0.0% WATER OPERATIONS 5030 Water Services 45,000 35,000 (10,000) ‐22.2% WATER OPERATIONS 5020 Utility Locates 10,450 95,450 85,000 813.4% WATER OPERATIONS 5010 Water Operations 4,957,671 2,511,990 (2,445,681) ‐49.3% WATER TREATMENT PLANT (WTP) 4610 Water Plant Operations 4,475,565 5,013,637 538,072 12.0% WATER TREATMENT PLANT (WTP) 4620 Water Plant Construction 400,000 1,343,010 943,010 235.8% WATER TREATMENT PLANT (WTP) 4640 Water Conservation 588,334 534,477 (53,857) ‐9.2% TOTALS 15,757,455 14,288,163 (1,469,292) ‐9.3% Department Budget by Division 107 305 Wastewater About: The operations of the City’s wastewater utility is made up of two division and all operation are accounted for in the enterprise fund, the Wastewater Fund:  The Water Reclamation Facility (WRF) budget accounts for the costs associated with the treatment of the City’s domestic, commercial, and industrial wastewater. The WRF is an award‐winning plant that serves to protect and enhance the water quality of the East Gallatin River. Through its beneficial reuse program, the WRF also maintains compliance with EPA Part 503 Bio‐solids regulations. All plant bio‐solids are thoroughly digested and then dewatered with a screw press. The screw press cake is trucked to the county landfill where it is composted for top soil for use at the landfill.  The Wastewater Operations budget unit accounts for the costs associated with providing and maintaining a wastewater collection system for the City. The Division maintains a program of inspecting, cleaning, root cutting, repairing sanitary sewer mains, manholes, and tapping for new wastewater stubs. Wastewater operations is also responsible for maintaining the City’s seven sanitary sewer lift stations. Major Objectives:  The Water Reclamation Facility (WRF) – o Protect and enhance the water quality of the East Gallatin River. o Consistently achieve compliance with all aspects of the city’s Montana Pollutant Discharge Elimination System (MPDES) permit administered by the Montana Department of Environmental Quality. o Maintain the mechanical reliability of the water reclamation facility to ensure uninterrupted operations. o Comply with all EPA 503 Bio‐solids land application requirements and regulations. • Minimize unpleasant odors.  The Wastewater Operations – o Adequately maintain and locate the City's wastewater system including manholes, wastewater collection and transmission systems, and lift stations. o Flush our entire collection system annually, minimizing stoppages. o Televise the existing sewer infrastructure to determine problems and the overall condition of sewer mains, enabling repairs in a timely manner and prioritize renovation projects funded through CIP. o Control sewer main root intrusion with an aggressive root cutting. Accomplishments Anticipated for FY19: Increased replacement of wastewater collection system pipes, significantly enhancing maintenance of the wastewater collection system. Increased flow monitoring of the sewer collection system. Contracting of Locate services. 109 307 Workload and Performance Indicators Budget Issues and Details Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended WASTEWATER 620 Wastewater Fund 9,384,490 9,214,281 10,815,672 WASTEWATER 630 Wastewater Impact Fees 287,350 1,440,000 8,625,000 WASTEWATER 621 Wastewater EPA Grant 373,644 ‐ ‐ WASTEWATER 622 Watewater Reclamation Facility 2,589,634 ‐ ‐ WASTEWATER 621 EPA Grant ‐ ‐ ‐ 12,635,118 10,654,281 19,440,672 TOTALS Department Budget by Fund 110 308 Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change WASTEWATER Salaries & Benefits 1,338,524 2,143,921 2,001,113 ‐6.7% WASTEWATER Operating 5,363,240 3,576,556 3,986,000 11.4% WASTEWATER Capital 4,313,521 1,436,519 11,977,500 733.8% WASTEWATER Debt Service 1,619,833 2,600,766 1,476,059 ‐43.2% WASTEWATER Transfers ‐ 896,519 ‐ ‐100.0% TOTALS 12,635,118 10,654,281 19,440,672 82.5% Department Budget by Category 111 309 Solid Waste & Recycling About: The Solid Waste Division provides services to the Citizens of Bozeman and protects public health by ensuring residential and commercial wastes are collected, transported, and disposed of in a safe and environmentally responsible manner. The Division encourages recycling by offering a "Pay as you Throw" collection system, which establishes a direct relationship between the amount a customer pays and the size container they have. The Solid Waste Division’s recycling program encompasses a wide variety of services to the public for recycling opportunities thereby reducing the volume of solid waste being land filled. These services include:  Single‐stream recycling of paper, cardboard, plastic, tin & aluminum cans  Bulk curbside recycling opportunities within multi‐family housing.  Compost collection during summer months.  Brush & pallet recycling, commercial cardboard collection, bulky item/appliance removal and recycling and recycling bins at community events. The Division is accounted for as an enterprise fund. Major Objectives:  Continue the highest quality service to the Citizens of Bozeman  Promote waste reduction thru recycling efforts.  To promote recycling opportunities available to the community.  Minimize the amount of solid waste going to the landfill for disposal Accomplishments Workload and Performance Indicators 113 311 Budget Issues and Details Decease $40,000 in road repairs, Increase of $28,000 in fuel related expenses, Increase of $10,000 in equipment maintenance, Increase of $95,000 for garbage disposal costs, Purchase of $190,000 in totes/dumpsters and roll‐ offs for new accounts, Recycling has an increase of $5,000 in fuel related expenses, Increase in Recycling of $100,000 for the purchase of compost containers. CIP ‐ $200,000 for grapple truck, reduced to $100,000 with sharing with the Forestry department. Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended SOLID WASTE & RECYCLING 640 Solid Waste Fund 5,742,286 3,742,257 3,764,084 SOLID WASTE & RECYCLING 641 Landfill Closure Costs 948,102 414,417 311,417 6,690,388 4,156,674 4,075,501 TOTALS Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change SOLID WASTE & RECYCLING Salaries & Benefits 1,058,077 1,550,422 1,351,142 ‐12.9% SOLID WASTE & RECYCLING Operating 3,204,573 1,408,830 2,562,942 81.9% SOLID WASTE & RECYCLING Capital 859,419 1,197,422 161,417 ‐86.5% SOLID WASTE & RECYCLING Debt Service ‐ ‐ ‐ 0.0% SOLID WASTE & RECYCLING Transfers 1,568,319 ‐ ‐ 0.0% TOTALS 6,690,388 4,156,674 4,075,501 ‐2.0% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change SOLID WASTE & RECYCLING 5820 Recycling 190,770 297,646 106,876 56.0% SOLID WASTE & RECYCLING 5810 Solid Waste Collection 3,551,487 3,466,438 (85,049) ‐2.4% SOLID WASTE & RECYCLING 5910 Operations 414,417 311,417 (103,000) ‐24.9% TOTALS 4,156,674 4,075,501 (81,173) ‐2.0% Department Budget by Division 114 312 Vehicle Maintenance About: The Vehicle Maintenance budget unit accounts for the costs of repairing and maintaining vehicles of City departments. Vehicle Maintenance staff consists of four full‐time mechanics responsible for keeping City vehicles in proper working condition, and one full‐time waste oil disposal specialist. The budget unit operates under an internal service fund. Charges are assessed against departments, which have vehicles repaired, receipts are deposited in the Vehicle Maintenance fund and used to support salary and operating costs. Major Objectives: To maintain vehicles and equipment in good running condition thereby enabling various City personnel to perform their daily assignments safely and without delay due to mechanical failure or breakdown. The Division emphasizes the importance of having a well‐structured preventative maintenance program online for all equipment and vehicles. Accomplishments Workload and Performance Indicators The chart is the billable hours to each department: Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended VEHICLE MAINTENANCE 710 Vehicle Maintenance Fund 1,249,449 1,238,044 1,259,462 Department Budget by Fund 115 313 Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change VEHICLE MAINTENANCE Salaries & Benefits 418,300 480,652 481,127 0.1% VEHICLE MAINTENANCE Operating 789,939 757,392 778,335 2.8% VEHICLE MAINTENANCE Capital 41,210 ‐ ‐ 0.0% VEHICLE MAINTENANCE Debt Service ‐ ‐ ‐ 0.0% VEHICLE MAINTENANCE Transfers ‐ ‐ ‐ 0.0% TOTALS 1,249,449 1,238,044 1,259,462 1.7% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change VEHICLE MAINTENANCE 6010 Vehicle Maintenance Shop 1,238,044 1,259,462 21,418 1.7% Department Budget by Division 116 314 Parks and Recreation About: The Parks and Recreation Department is made up of four divisions that provide a broad range of programs, services, facilities, and park amenities within the City. The Department is accounted for in the General Fund with the exception of Forestry, which is operates in a special revenue fund. The Division for the Department are below:  Cemetery‐ The 73‐acre Sunset Hills Cemetery, the only City owned and maintained cemetery, is a virtual arboretum of stately pine, fir, spruce, ash, maple, cedar and various ornamental trees, which are maintained by the Forestry Division. The cemetery currently contains over 16,000 burial sites with nine dedicated affiliation areas and room for expansion  Parks ‐ is responsible for the overall development and maintenance of 42 public parks, 52 miles of trails and associated sports fields and open space within the City limits.  Forestry‐ is committed to providing a healthy, safe, and aesthetically pleasing community forest. Environmental, economic, and social benefits from the urban forest raise the standard of living for Bozeman residents.  Recreation ‐ provides opportunities for the entire community, encouraging both individuals and families to actively recreate. The Department works with the Recreation and Parks Advisory Board and other recreation groups in anticipating recreation demands. This division includes aquatics which oversees the Swim Center and Bogart Outdoor Pool Major Objectives:  Cemetery‐ Create new cemetery blocks and open lots up for sale as demand dictates. Inform the community through publications, press releases, and advertisements of current policies, procedures, and practices of the Sunset Hills Cemetery. Provide an easily accessible, safe, and serene setting for cemetery/gravesite visitation. Modernize and maintain an improved and accurate mapping and computerized grave registration system.  Parks‐ Continue adding, upgrading, and maintaining safe and quality sports fields, trail corridors, community gathering areas, and playground equipment. Provide expanded maintenance to restrooms, litter control, pet waste disposal, turf care, and playground equipment. Improve, maintain, and expand the trail system. Oversee and coordinate volunteer, grant funded, and neighborhood park improvement projects. Continue to upgrade park signage for uniformity and less maintenance.  Forestry‐ Provide systematic maintenance for Bozeman’s 20,000 trees on street boulevards, in developed parks, on trails and open space, cemetery property and around public buildings. Remove or reduce the potential risk factors associated with publicly owned trees. Identify and correct encroachment problems including street and 117 315 sidewalk clearance, and the obstruction of sight vision triangles and signs. Implement the city’s cost share tree program, voucher replacement program, and other planting projects to ensure a diversity in species and age distribution.  Recreation‐ Improve quality of life and build community by offering recreation opportunities to people of all ages. Accomplishments Continued systematic maintenance of public trees on streets, in parks, cemetery, and around public buildings. Increased staff safety through partnerships, installed a removable bulkhead at the Swim Center increasing programming opportunities and safety. Story Mill Community Center renovation project completed, completion of the policy and fee schedule for facilities and programs, Assistant Recreation Manager CPRP certification, increase in partnerships for program implementation, curling club formed, pickleball program volunteer run, streamlined user group and special event application process. Anticipated FY19 Accomplishments: Story Mill Community Center open to the public, recreation division staff relocate to the center, program offerings expanded, exterior building repairs and interior upgrades to include a large multipurpose room that will be available to the public to rent for meetings and events. Full day camps added to program offerings, implementation of the policy and fee schedule for programs and facilities, EPACT software system added for better management of program participant medical information and emergencies, Beall Park Recreation Center wood floor replacement, Story Mansion sewer repair. Friends of Bogert Pool volunteer group formed and through their effort, the ceiling will be replaced in the bathhouse and the retaining wall painted. State high school swim meet will be held at the Swim Center, February 2019. Workload and Performance Indicators 118 316 Budget Issues and Details Fees for Parks and Recreation have been formalized into one policy document and raised to cover costs while still supplementing children and seniors. This will increase revenues for the General fund starting in FY19. Cemetery fees have also been increased starting FY19 and only 35% of revenues will go to the perpetual care fund instead of all plot sales. This will also contribute more revenue to the General Fund reducing the General fund supplement to Cemetery costs. All fee increases were approved by the City Commission April 16, 2018. FY2018 saw the addition of Storymill Park and Community Center. The remodeling began in FY18 and will continue into FY19. This addition will enhance recreation programs and rental facilities the City has to offer. Coming online in fall of FY19 is the first phase of Sports Park with four fields and two fields. The turf fields have been made possible with a partnership with the Sports Park Foundation who will be managing the field rentals. 119 317 Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended PARKS & RECREATION 010 General Fund 3,651,333 4,562,064 4,947,963 PARKS & RECREATION 112 Tree Maintenance Fund 514,057 706,937 799,577 PARKS & RECREATION 128 FWP Management Areas 84 ‐ 8,000 PARKS & RECREATION 184 Park Improvement Grants 130,706 ‐ ‐ PARKS & RECREATION 563‐ 568 Parks & Open Space Bond 1,461,912 ‐ ‐ PARKS & RECREATION 189 Story Mansion Operating Fund 25,955 47,423 57,302 5,784,047 5,316,424 5,812,842 Department Budget by Fund TOTALS Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change PARKS & RECREATION Salaries & Benefits 2,425,064 2,602,842 2,814,031 8.1% PARKS & RECREATION Operating 1,434,180 1,948,736 2,082,311 6.9% PARKS & RECREATION Capital 1,824,803 764,846 916,500 19.8% PARKS & RECREATION Debt Service ‐ ‐ ‐ 0.0% PARKS & RECREATION Transfers 100,000 ‐ ‐ 0.0% TOTALS 5,784,047 5,316,424 5,812,842 9.3% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change PARKS AND RECREATION 7210 Cemetery Operations 721,904 821,433 99,529 13.8% PARKS AND RECREATION 7610 Parks Operations 2,028,480 2,190,621 162,141 8.0% PARKS AND RECREATION 7710 Tree Maintenance 706,937 799,577 92,640 13.1% PARKS AND RECREATION 8050 Recreation Programs 63,665 74,690 11,025 17.3% PARKS AND RECREATION 8010 Recreation Operations 1,090,824 1,148,297 57,473 5.3% PARKS AND RECREATION 8040 Facilities: Lindley, Beall, & Story 338,029 231,083 (106,946) ‐31.6% PARKS AND RECREATION 8020 Swim Center 299,915 457,565 157,650 52.6% PARKS AND RECREATION 8030 Bogert Pool 66,670 89,576 22,906 34.4% TOTALS 5,316,424 5,812,842 496,418 9.3% Department Budget by Division 120 318 Library About: The Bozeman Public Library creates opportunities that inspire curiosity, exploration and connection. The Bozeman Library shares the vision of the nation's founders that liberty and learning are inseparable and that a democratic people must have free, open and equal access to information. Bozeman Public Library welcomes all, especially the young, to share in the joy of exploring the world of information and the realms of our imagination. The Library budget unit accounts for the costs associated with operating and maintaining the City's Public Library. Approximately one‐third of the Library’s operating budget is offset by county funds and is accounted for in the General fund. Major Objectives:  Provide excellent customer service to Library patrons in a welcoming environment  Provide efficient, effective and visionary operation of the Bozeman Public Library  Provide a dynamic, relevant collection of materials in all formats to residents of the Library’s service area  Provide Library services, programming, and opportunities for lifelong learning for people of all ages  Ensure that daily library operations are efficient, timely and provided in a courteous manner  Provide excellent Library service by ensuring that the knowledge and skills of Library staff are kept up‐to‐ date through training, workshops, conference attendance and other continuing education opportunities. Accomplishments Anticipated for FY19 ‐ Begin implementation of the Library’s new 2018‐2021 Strategic Plan’s four main goals: 1) SPACE: Design and implement an expansion process to ensure that the Library has adequate space to meet Bozeman’s growing needs; 2)TECHNOLOGY: Use technology and digital resources to enhance the Library experience; 3) TARGETED PROGRAMMING; Provide unique programming to inform and enrich the lives of target audiences of Library users; 4) OUTREACH & ENGAGEMENT: Engage new and broader audiences in taking advantage of the Library’s resources. Continue to review and update policies with Library Board of Trustees; •Complete pedestrian walkway project and Library parking lot improvements • Continue existing space reconfiguration project in Library building. 121 319 Workload and Performance Indicators Budget Issues and Details Increases in digital catalogs and services. Reclass of staffing to create a better structure according to the staffing plan. Budget ‐ 20,000 40,000 60,000 80,000 Adult Programs Attendance Adult Programs Provided Children's Programs Attendance Children's Programs Provided Volunteer Hours Library Performance Indicators FY16 Actual FY17 Actual FY18 Approved FY19 CM Budget ‐ 200,000 400,000 600,000 800,000 Visitors Circulation of Materials: per Full‐ Time Equivalent Employee (FTE) Public computer use Total Volumes Visitors Library Materials Circulated Library Workload Indicators FY19 CM Budget FY18 Approved FY17 Actual FY16 Actual Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended LIBRARY 010 General Fund 1,960,413 1,993,372 2,177,210 LIBRARY 137 Library Special Revenue Fund 48,390 ‐ ‐ LIBRARY 561 Library Depreciation Fund 50,000 90,000 32,000 2,058,803 2,083,372 2,209,210 TOTALS Department Budget by Fund 122 320 Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change LIBRARY Salaries & Benefits 1,415,406 1,485,448 1,606,758 8.2% LIBRARY Operating 404,887 527,924 602,452 14.1% LIBRARY Capital 98,391 70,000 ‐ ‐100.0% LIBRARY Debt Service ‐ ‐ ‐ 0.0% LIBRARY Transfers 140,119 ‐ ‐ 0.0% TOTALS 2,058,803 2,083,372 2,209,210 6.0% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change LIBRARY 7840 Children's Services 204,568 157,009 (47,559) ‐23.2% LIBRARY 7850 Circulation Services 311,204 412,461 101,257 32.5% LIBRARY 7830 Information Services 401,496 439,099 37,603 9.4% LIBRARY 7820 Technical Services 281,495 310,913 29,418 10.5% LIBRARY 7810 Library Operations 884,609 889,728 5,119 0.6% TOTALS 2,083,372 2,209,210 125,838 6.0% Department Budget by Division 123 321 Economic Development About: The City’s Economic Development Team to “assist in diversifying our local economy by creating sustainable, high paying jobs without sacrificing Bozeman’s quality of life.” The department is staffed by a Director of Economic Development and, new in FY14, an Economic Development Specialist. TAX INCREMENT FINANCING DISTRICT: The Downtown Improvement District, the Northeast Improvement District, and the North 7th Improvement district account for the costs of the Improvement District Boards and their activities. More recently, a Technology Taxable Improvement District was approved. BUSINESS IMPROVEMENT DISTRICTS: The Downtown Business Improvement District is an organization of downtown property owners who voluntarily commit resources, identify, plan, and act on initiatives with the goal of ensuring long‐term preservation of the City. The Bozeman Tourism Business Improvement District seeks to enhance the economic vitality of Bozeman by promoting tourism through sales and marketing strategies. Program income is derived from each occupied room night from hotels, motels, or other lodging facilities within the district. Major Objectives: ECONOMIC DEVELOPMENT:  Implement the Bozeman Fiber Master Plan by planning the expansion of a City‐owned conduit system.  Proactively manage the City’s tax increment finance districts.  Partner on a unified marketing strategy for business expansion and recruitment with other economic development partners  Expand and increase economic development outreach, activities, and programs to local, state, and national business communities.  Attend and collaborate with local businesses on industry specific trade shows in order to promote Bozeman as a place to do business.  Participate in local industry conferences. TAX INCREMENT FINANCING:  To strengthen the economic vitality of Urban Renewal Districts. To recognize that community partnership is fundamental to district success.  To improve the safety, security and health of the districts.  To improve accessibility. BUSINESS IMPROVEMENT DISTRICTS: The Tourism Business Improvement District supports the promotion of Bozeman as a destination for meetings, film production, and sport tournaments and events. The Downtown Business Improvement district works to create both short and long‐term goals to ensure the preservation and vitality of the City's underlying economic, cultural, social, and environmental assets. This includes graffiti removal, a downtown maintenance program, the summer flower basket program, and the Holiday Decorating Program. Accomplishments Promote the photonics industry through the Montana Photonics Industry Alliance and participation in the Photonics West Conference. Continue support for TIF districts. Budget Issues and Details A reclass of a position to oversee the TIFF Districts and increase in conduit to continue the fiber network. 125 323 Budget Department Fund #Fund Name FY17 Actual FY18 Approved FY19 CM Recommended ECONOMIC DEVELOPMENT 010 General Fund 305,614 592,376 491,251 ECONOMIC DEVELOPMENT 116 Downtown TIF District 1,088,156 1,533,288 1,912,000 ECONOMIC DEVELOPMENT 119 Economic Development Loan 63,198 31,000 31,000 ECONOMIC DEVELOPMENT 118 Community Housing ‐ ‐ ‐ ECONOMIC DEVELOPMENT 121 Housing Revolving Loans 718 ‐ ‐ ECONOMIC DEVELOPMENT 120 Community Housing Fund 284,400 124,400 ‐ ECONOMIC DEVELOPMENT 143 North 7th Corridor TIF District 1,027,000 36,000 716,000 ECONOMIC DEVELOPMENT 144 North East Urban Renewl TIF District 1,877,944 10,000 170,600 ECONOMIC DEVELOPMENT 145 Mandeville Farm TIF ‐ ‐ 4,000 ECONOMIC DEVELOPMENT 176 Downtown BID 140,800 132,200 156,251 ECONOMIC DEVELOPMENT 186 Development Impacts (Big Box) ‐ ‐ ECONOMIC DEVELOPMENT 191 Tourism BID 1,100,000 1,100,000 1,200,000 ECONOMIC DEVELOPMENT 123 Big Sky Economic Development Grant 16,500 50,000 50,000 ECONOMIC DEVELOPMENT 192 TIFD South Bozeman Technology ‐ ‐ ‐ ECONOMIC DEVELOPMENT 883 CMC Bozeman Site Remediation ‐ ‐ ‐ 5,904,330 3,609,264 4,731,102 Department Budget by Fund TOTALS Department Category FY17 Actual FY18 Approved FY19 CM Recommended %Change ECONOMIC DEVELOPMENT Salaries & Benefits 209,704 216,774 246,661 13.8% ECONOMIC DEVELOPMENT Operating 4,066,613 2,649,202 3,720,153 40.4% ECONOMIC DEVELOPMENT Capital 778,288 25,000 30,000 20.0% ECONOMIC DEVELOPMENT Debt Service ‐ ‐ ‐ 0.0% ECONOMIC DEVELOPMENT Transfers 849,725 718,288 734,288 2.2% TOTALS 5,904,330 3,609,264 4,731,102 31.1% Department Budget by Category Department Division #Division Name FY18 Approved FY 19 CM Recommended $ Change % Change ECONOMIC DEVELOPMENT 8240 Economic Development 592,376 491,251 (101,125) ‐17.1% ECONOMIC DEVELOPMENT Downtown Improvement Districts 3,016,888 4,239,851 1,222,963 40.5% TOTALS 3,609,264 4,731,102 1,351,992 37.5% Department Budget by Division 126 324 Other About: The Non‐Departmental unit accounts for expenditures that are not associated with a specific city department. Examples include insurance premiums paid by the City, costs of leave pay‐outs for terminating employees, contingency funds, etc. Major Objectives: To accurately budget and account for non‐departmental costs. Budget Issues and Details General fund allocation of liability & property insurance ‐ $498,182; General fund contribution to the band ‐ $10,440; Contingency appropriation ‐ $150,000; Transfer to Police & Fire state share retirement (non‐cash) ‐ $2,400,348; Payment to HRDC for Galavan ‐ $169,244; Transfer to Landfill Monitoring Fund ‐ $250,000; Transfer to Stormwater Fund for Landfill Loan payments ‐ $75,000; Transfer to Workforce housing fund $210,488; and Debt repayment (see debt service fund summary) Budget General Items Fund Category Division FY17 Actual FY18 Budget FY19 CM Recommended 10 Operating INSURANCE 412,561 420,483 498,182 10 Operating GENERAL 6,000 10,440 10,440 10 Operating GENERAL (non cash)‐ 2,430,560 2,719,592 10 Transfers TRANSFERS TO OTHER FUNDS 582,000 747,084 535,488 1,000,561 3,608,567 3,763,702 103 Transfers TRANSFERS TO OTHER FUNDS 2,278,269 2,476,888 2,654,566 175 Operating GENERAL 87,612 92,915 105,244 300 Transfers TRANSFERS TO OTHER FUNDS ‐ 1,588,781 224,011 720 Operating INSURANCE 4,715,591 4,820,912 4,820,912 127 325 Debt items followed by debt schedules Fund Category Division FY17 Actual FY18 Budget FY19 CM Recommended 303 Debt Service BOND PRINCIPAL 250,000 255,000 260,000 303 Debt Service INTEREST 26,500 21,000 16,900 4,992,091 6,685,693 5,321,823 304 Debt Service BOND PRINCIPAL 610,000 620,000 635,000 304 Debt Service INTEREST 473,438 460,537 453,138 1,083,438 1,080,537 1,088,138 305 Debt Service BOND PRINCIPAL 205,000 210,000 220,000 305 Debt Service INTEREST 220,838 212,288 203,673 425,838 422,288 423,673 433 Debt Service BOND PRINCIPAL 65,000 60,000 65,000 433 Debt Service INTEREST 8,483 10,000 11,000 73,483 70,000 76,000 435 Debt Service BOND PRINCIPAL 70,000 70,000 70,000 435 Debt Service INTEREST 8,995 26,000 26,000 78,995 96,000 96,000 438 Debt Service BOND PRINCIPAL 26,500 28,000 28,000 438 Debt Service INTEREST 9,413 11,600 11,600 35,913 39,600 39,600 439 Debt Service BOND PRINCIPAL ‐ 70,000 70,000 439 Debt Service INTEREST ‐ 35,000 35,000 ‐ 105,000 105,000 440 Debt Service INTEREST 1,118 1,200 1,200 441 Debt Service BOND PRINCIPAL ‐ 43,000 43,000 441 Debt Service INTEREST ‐ 2,500 25,000 ‐ 45,500 68,000 128 326 129 327 130 328 131 329 CAPITAL EXPENDITURES SUMMARY 133 331 Capital Expenditure Summary The CIP includes any planned expenditure of $10,000 or greater, that results in the acquisition of an asset with a useful life of 3 years or more. There is a couple of “exceptions” or “extensions” of this definition that we have found helpful and necessary in past years:  General Planning Documents (master plans, community surveys, etc.) are NOT included in our CIP.  Specific plans that involve pre‐engineering or preliminary design of facilities are often (but not always) included in the CIP.  Software purchases that could potentially be “software as a service”. Cloud based services are beginning to replace our purchase of outright software and hardware. In the CIP, we have treated the software projects as a capital outlay purchase; although a “service” type, solution may actually be chosen during the bidding/proposal process. State law and City charter require the City to prepare the CIP. State Law requires the City to maintain a Capital Improvement Plan for our Development Impact Fee programs. Under Montana Code Annotated (MCA), this Capital Improvement Plan provides the schedules and cost projections required under MCA §7‐6‐1602(2)(k)(i‐iv). In Article 5.06 of the adopted City Charter, the City Manager is responsible for preparing and submitting a multi‐ year capital program to the City Commission no later than December 15 for the ensuing fiscal year. Using this plan adopted in December the City incorporates the first year of the plan into the budget. The plan includes large sewer capacity projects that aid in the School District’s efforts in building a new High school. These infrastructure projects are the Davis Lift Station WWIF24 and the Front Street Interceptor WWIF11, and are scheduled in the Wastewater Impact Fee fund. Both projects will require financing in order to be completed for a total of just under $8 million. With these two capacity efforts there are Street Impact Fee and Arterial Collector shared projects to fund the building of the roads surrounding the new high school. Beyond major projects, there is planned road maintenance, vehicle replacements and building improvement. Operational impacts are on the side of long term maintenance of infrastructure and maintenance of vehicles. Included in the plan looking out towards the future: 2020 ‐ The outlook for the 2020 includes another sewer capacity‐expanding project that is dependent on the Davis Lift Station being done in 2019. The Norton East Ranch Outfall Diversion WWIF38 is $3,320,000 and will need financing at this point in the plan. There are again major roads funded through the Street Impact Fee Fund and Arterial Collector fund a good portion is for building of the roads surrounding the new high school. Fire Station 1 is planned in this year; this will be an expansion and relocation of the current station. Along with these major projects road maintenance, vehicle replacements and building improvements are in the plan as well. 134 332 2021 ‐ This includes a water fund major project for the Lyman Tank and Transmission Main Construction W88, which will be funded through financing for $10million. Griffin 7th to Rouse SIF113 funded by Street Impact Fees and Arterial collector funds is scheduled in FY21 for a project total of $3.7 million. This is also the $20 million portion of the Law Justice Center is scheduled. 2022 ‐ The Indoor/Outdoor aquatics center is planned for FY22 and will be funded through bonds going to the citizens for a vote. The Water fund has an over $6million projects, PRV Phase 2 ‐ Automation and Instrumentation Upgrades W71 which will provide necessary water system maintenance work. Routine vehicle replacements, pipe replacements and road maintenance is planned. 2023 ‐ Fowler connection (Huffine to Oak) SIF114 funded by Street Impact Fees and Arterial collector funds is scheduled in FY23 for a project total of $7.5 million. Wastewater Impact Fees has a capacity project N Frontage Rd Interceptor WWIF20 scheduled for just under $5.3 million. The relocation of Fire Station 2 is scheduled to align with service needs as outlined in the adopted master plan. FY19 Capital Project Listing CIP PROJECT FUND PROJECT NUMBER PROJECT NAME FY19 Arterial & Collector Streets A&C004 Oak & 7th Restriping $60,000 Arterial & Collector Streets SIF109 Oak (Rouse through Cannery District) ‐ Construction*$133,000 Arterial & Collector Streets SIF058 Oak & N 27th (Intersection Improvements) ‐ Design & Construction $200,000 Arterial & Collector Streets SIF108 S 3rd and Graf (Intersection Improvements) ‐ Construction $300,000 Arterial & Collector Streets SIF121 Baxter & Davis (Intersection Improvements) ‐ Roundabout Construction $500,000 Arterial & Collector Streets SIF062 Durston (Fowler to Ferguson) ‐ Construction $760,000 Arterial & Collector Streets SIF085 Baxter (7th to 19th) ‐ Construction $1,500,000 Arterial & Collector Streets Total $3,453,000 Building Inspection New New Position Vehicle $35,000 Building Inspection GF199 PROFESSIONAL BUILDING RECONFIGURATION ‐ Phase 2 $216,681 Building Inspection Total $251,681 Community Development CD05 Copier Replacement $35,000 Community Development GF199 PROFESSIONAL BUILDING RECONFIGURATION ‐ Phase 2 $266,218 Community Development Total $301,218 Fire Equip & Capital Replacement FE12 Personal Protective Equipment $36,000 Fire Equip & Capital Replacement FE14 Structural Collapse Equipment $70,000 Fire Equip & Capital Replacement FE06 Radio Replacement Program $250,000 Fire Equip & Capital Replacement FE13 Station Alerting System $250,000 Fire Equip & Capital Replacement Total $606,000 Gas Tax STR75 Annual Pedestrian Ramp Replacement Program $25,000 Gas Tax Curb, Gutter and Sidewalk replacement $50,000 Gas Tax Thermoplastic Lane Marking Projects $25,000 Gas Tax STR72‐19 Street Improvements ‐ Maintenance & Rehabilitation (Chip Seal) ‐ FY19 $827,000 Gas Tax Total $927,000 135 333 CIP PROJECT FUND PROJECT NUMBER PROJECT NAME FY19 General Fund New M&E: Office Equipment & Furniture new positions(1530,2010)$14,000 General Fund GF282 City Hall Vehcile lease Plug‐in Electric Hybrid $9,000 General Fund GF052 POLICE NON‐PATROL VEHICLE REPLACEMENTS $15,000 General Fund GF292 PATROL CAR AUXILIARY EQUIPMENT $15,000 General Fund GF010 CEMETERY MOWER REPLACEMENTS $16,000 General Fund GF298 SWIM CENTER – BARRIER WALL IN PUMP ROOM $22,000 General Fund GF275 Fiber Optic Conduit and Vaults $30,000 General Fund GF287 Learning Management System $25,000 General Fund GF297 SWIM CENTER ROOF REPLACEMENT $26,000 General Fund GF195 TURF SWEEPER $32,000 General Fund GF224 SUNGARD ANALYTICS NOW COGNOS BI (BUSINESS INTELLIGENCE) WEB‐BASED REPORTINGSUITE $35,000 General Fund GF199 PROFESSIONAL BUILDING RECONFIGURATION ‐ Phase 2 $37,031 General Fund GF080 REMOTE CLOSET SWITCHES, ROUTER AND WIRELESS AP REPLACEMENT $45,000 General Fund GF229 ISCSI STORAGE REPLACEMENT $45,000 General Fund GF116 CEMETERY VEHICLE REPLACEMENTS $50,000 General Fund GF241 Replacement of City Hall AC Condensing Unit – Roof Top $50,000 General Fund GF115 PARK VEHICLE REPLACEMENTS $50,000 General Fund GF270 Snow Plowing Vehicle $65,000 General Fund GF295 SWIM CENTER UV SYSTEM REPLACEMENT $68,500 General Fund GF283 Commission Room Technology Upgrade $85,000 General Fund GF268 Southwest Montana Veteran's Cemetery $88,000 General Fund GF034 LARGE DECK MOWER $70,000 General Fund GF205 PROST PLAN UPDATE $109,000 General Fund GF053 PATROL VEHICLE REPLACEMENT $62,000 General Fund GF199 PROFESSIONAL BUILDING RECONFIGURATION ‐ Phase 2 $136,186 General Fund GF166 PORTABLE AND MOBILE RADIO REPLACEMENTS $295,000 General Fund GF304 City Hall Commission Room Expansion/Remodel $300,000 General Fund GF231 CEMETERY IRRIGATION PROJECT $200,000 General Fund Total $1,994,717 Impact Fees Streets SIF109 Oak (Rouse through Cannery District) ‐ Construction $133,000 Impact Fees Streets SIF139 Oak (Flanders Mill to Ryun Sun Way) ‐ Design $150,000 Impact Fees Streets SIF140 Oak (Cottonwood to Flanders Mill) ‐ Design $180,000 Impact Fees Streets SIF001 Annual Right Of Way Acquisition $250,000 Impact Fees Streets SIF137 Cottonwood (Durston to Oak) ‐ Design $250,000 Impact Fees Streets SIF141 Cottonwood Road, Oak to Baxter ‐ Design $250,000 Impact Fees Streets SIF133 Griffin (7th to Rouse) ‐ Design $400,000 Impact Fees Streets SIF062 Durston (Fowler to Ferguson) ‐ Construction $760,000 Impact Fees Streets SIF058 Oak & N 27th (Intersection Improvements) ‐ Design & Construction $800,000 Impact Fees Streets SIF108 S 3rd and Graf (Intersection Improvements) ‐ Construction $1,200,000 Impact Fees Streets SIF121 Baxter & Davis (Intersection Improvements) ‐ Roundabout Construction $2,000,000 Impact Fees Streets Total $6,373,000 136 334 CIP PROJECT FUND PROJECT NUMBER PROJECT NAME FY19 Impact Fees Wastewater WWIF36 Baxter Creek Basin ‐ Cottonwood Road 18" Sanitary Sewer Extension $640,000 Impact Fees Wastewater WWIF11 Front Street Interceptor $2,185,000 Impact Fees Wastewater WWIF24 Davis Lane (Lift Station)$5,800,000 Impact Fees Wastewater Total $8,625,000 Impact Fees Water WIF46 Water Main Oversizing, Oak St and Ryun Sun Way $107,000 Impact Fees Water WIF21 S 11th 12" water main extension $136,010 Impact Fees Water WIF33 Groundwater Well Field and Transmission Main Design $500,000 Impact Fees Water WIF14 Loan Debt Service ‐ WTP 5.3MG Concrete Water Storage Reservoir $600,000 Impact Fees Water WIF21 11th and 12' water main extension $136,010 Impact Fees Water WIF46 Water Main Oversizing‐ Oak $107,000 Impact Fees Water Total $1,586,020 Parking Fund P020 Parking Vehicle Leases $10,000 Parking Fund P004 Surface Parking Lot Hardware & Software Systems $15,000 Parking Fund P014 Parking Garage Crack Maintenance and Repair $20,000 Parking Fund P024 Electric Vehicle Charging Station $30,000 Parking Fund GF199 PROFESSIONAL BUILDING RECONFIGURATION ‐ Phase 2 $37,031 Parking Fund Total $112,031 Public Works Admin GIS06 GPS System Replacement $17,500 Public Works Admin GIS08 Large Format Plotter ‐ Replacement $20,000 Public Works Admin GIS12 FME Server $20,000 Public Works Admin GIS11 GIS Computer Replacments $49,048 Public Works Admin Total $106,548 Solid Waste Fund SW46 Grapple Truck (Shared w/ Tree Maint)$100,000 Solid Waste Fund Total $100,000 Solid Waste/ Landfill Fund Software maint.$61,417 Solid Waste/ Landfill Fund Total $61,417 Stormwater Fund STRM54 Admin Staff Vehicle $35,000 Stormwater Fund STRM13 Annual Pipe Rehabilitation and Drainage Projects $50,000 Stormwater Fund STRM36 Boulevard Infiltration Structures ‐ Downtown Stormwater Treatment Phase 2 $50,000 Stormwater Fund STRM51 Pipe Replacement – N. 4th (W. Cottonwood to W. Peach)$50,000 Stormwater Fund STRM48 Annual Inlet Replacement Program $100,000 Stormwater Fund STRM39 Mechanical Separation Units ‐ Downtown Stormwater Treatment Phase 2 $350,000 Stormwater Fund Total $635,000 Street & Curb Reconstruction Fund SCR01 Annual Curb Replacement & Concrete Repair Program $60,000 Street & Curb Reconstruction Fund SCR20 W Lincoln (Grand to Wilson) ‐ Design and Construction $224,011 Street & Curb Reconstruction Fund Total $284,011 137 335 CIP PROJECT FUND PROJECT NUMBER PROJECT NAME FY19 Street Maintenance Fund/Gas Tax STR50 Plows $12,000 Street Maintenance Fund/Gas Tax STR76 Downtown Bozeman Creek Culvert Assessment $15,000 Street Maintenance Fund/Gas Tax STR01 Replace #1539 ‐ 2WD 1990 Ford Ranger $16,000 Street Maintenance Fund/Gas Tax PW05 Public Works Shops Master Plan $20,000 Street Maintenance Fund/Gas Tax STR20 Annual Bike Path Improvements $25,000 Street Maintenance Fund/Gas Tax STR49 Sanders $27,000 Street Maintenance Fund/Gas Tax STR83 N. 27th Median Landscaping and Irrigation from Oak to Baxter $40,000 Street Maintenance Fund/Gas Tax STR01 Replace #2749 ‐ 1997 Ford 1 Ton Manual Transmission F350 $45,000 Street Maintenance Fund/Gas Tax STR80 Utility Terrain Vehicle $55,000 Street Maintenance Fund/Gas Tax STR77 Oak and 7th Intersection Upgrade $60,000 Street Maintenance Fund/Gas Tax STR82 Lease Motor Grader (170,00 to 35K to lease)$35,000 Street Maintenance Fund/Gas Tax STR79 Sign Making Machine $60,000 Street Maintenance Fund/Gas Tax STR75 Annual Pedestrian Ramp Replacement Program $100,000 Street Maintenance Fund/Gas Tax STR89 Spray Patch Truck $250,000 Street Maintenance Fund/Gas Tax STR71‐19 Street Improvements ‐ Maintenance & Rehabilitation (Mill & Overlay) ‐ FY19 $554,500 Street Maintenance Fund/Gas Tax Total $1,314,500 Tree Maintenance District FOR11 LOG LOADER & TRUCK (Shared w/ Solid Waste)$120,000 Tree Maintenance District Total $120,000 Wastewater Fund PW05 Public Works Shops Master Plan $20,000 Wastewater Fund WW07 Annual Wastewater Pipe Replacement Program ‐ Design $22,500 Wastewater Fund WW86 Steerable sewer TV tractor $25,000 Wastewater Fund WW87 Sewer Flow Meters $35,000 Wastewater Fund WW70 WRF Facility Engineering & Optimization $50,000 Wastewater Fund WW58 Chip Seal and Topcoat WRF Asphalt $55,000 Wastewater Fund WW69 WRF Facility R&R $75,000 Wastewater Fund WW89 HVAC heat loop optimization $250,000 Wastewater Fund WW39 Resurface and Repaint Clarifiers $320,000 Wastewater Fund WW08‐19 Wastewater Pipe Replacement Program ‐ Construction in 2019 $1,000,000 Wastewater Fund WW49 Roll‐Off Storage Building Construction & Possible 2nd Screw Press Enclosure $1,500,000 Wastewater Fund Total $3,352,500 138 336 CIP PROJECT FUND PROJECT NUMBER PROJECT NAME FY19 Water Fund W66 Meters, Transducers & Communications (Replacement Scada Radio & Strap On Flow Meter)$10,000 Water Fund W57 WTP Facility Engineering & Optimization $20,000 Water Fund W03 Annual Water Pipe Replacement Program ‐ Design $22,500 Water Fund W86 Sourdough Diversion cleanout $25,000 Water Fund WC02 Meter Software Subscription $36,000 Water Fund WC03 Municipal Watershed Data Collection $50,000 Water Fund W58 Module Replace Fund $50,000 Water Fund W78 Hilltop Tank Inspection and Mixing System $130,000 Water Fund W75 Lead Service Line Replacement $200,000 Water Fund W85 South University District 12" Water Main $296,509 Water Fund W87 Lyman Tank and Transmission Main Design $500,000 Water Fund W04‐19 Water Pipe Replacement Program ‐ Construction in 2019 $1,200,000 Water Fund W72 PRV Phase 1 ‐ Mechanical and Structural Upgrades $1,750,000 Water Fund GIS15 GIS Field Vehicle Replacement $26,000 Water Fund Total $4,316,009 $34,519,652Total 139 337 Appendix A: Statistical Information Statistical Information Consumer Price Index The City uses the Consumer Price Index as a general gauge of price inflation this includes all Items, Unadjusted, Urban Consumers (CPI‐U). The City’s living wage ordinance bases increases on CPI‐U for Western States. Source: Bureau of Labor Statistics, US Department of Labor Year Ending December,CPI‐U % Change 2007 210 4.10% 2008 210.2 0.10% 2009 216 2.70% 2010 219.2 1.50% 2011 225.7 3.00% 2012 229.6 1.70% 2013 233 1.50% 2014 234.8 0.80% 2015 236.5 0.70% 2016 241.4 2.10% 2017 246.5 2.11% United State CPI ANNUAL CPI‐U Western % Change 2007 212.2 3.20% 2008 219.6 3.50% 2009 218.8 ‐0.40% 2010 221.2 1.10% 2011 227.5 2.90% 2012 232.4 2.20% 2013 236.1 1.60% 2014 239.1 1.30% 2015 243.0 1.60% 2016 247.7 1.90% 2017 257.3 3.88% Western States CPI 141 339 Population Bozeman’s population has been growing steadily since 2000. The rate of population has shown an larger increase the last three years. The Bozeman Population has median age that has held steady at 27 and has a high percentage of residents holding a bachelor’s degree or higher at 56%. Source: US Census Bureau: People QuickFacts Bozeman Montana Bozeman as % of Montana Data Population: 2016 estimate 45,250 1,032,949 4.38% Population: 2010 (April 1) estimates base 37,282 989,417 3.77% Population: Percent change 4/01/10 to 7/01/16 21.40% 4.40% Population: 2010 census 37,280 989,415 3.77% Fiscal Yr Estimated Population Bozeman's Estimated Annual % Change in Population Accumulated % Growth Since 2007 2007 34,832 4.50%0.00% 2008 35,944 3.19%7.69% 2009 36,933 2.75% 10.44% 2010 37,280 0.94% 11.38% 2011 37,314 0.09% 11.47% 2012 38,116 2.15% 13.62% 2013 38,753 1.67% 15.30% 2014 38,860 0.28% 15.57% 2015 41,660 7.21% 22.78% 2016 43,405 4.19% 26.97% 2017 45,250 4.25% 31.22% Year % Change in Population Per capita Income Median Age % Residents w/ Bachelors K‐12 enrollment Unemployment rate 2007 4.5% 21,581$ 26.5 49.5% 5,356 2.2% 2008 3.1% 23,387$ 27.2 53.7% 5,432 2.7% 2009 2.7% 26,313$ 27.0 52.7% 5,463 4.6% 2010 0.9% 25,909$ 26.0 50.6% 5,509 5.8% 2011 0.1%25,611$ 27.2 50.1% 5,679 5.6% 2012 2.1%24,709$ 27.2 53.9% 5,810 5.2% 2013 1.6%25,608$ 27.1 55.4% 5,994 4.3% 2014 0.3%26,427$ 26.8 53.3% 6,216 3.5% 2015 6.7%26,335$ 27.3 53.6% 6,294 2.9% 2016 4.0%26,350$ 27.5 54.4% 6,533 2.8% 2017 4.1%26,506$ 27.7 56.5% 6,770 2.8% 142 340 Business: Private Employers: The Montana Department of Labor and Industry reports the following largest private employers within the City’s boundaries (2017 data). Public Employers: The Montana Department of Labor and Industry reports the following largest public employers within the City’s boundaries, one of which is the City. Private Employers Size Bozeman Deaconess Hospital 1,000+ Employees Oracle America 250 to 499 Employees Town Pump Convenience Stores 251 to 499 Employees Wal Mart 252 to 499 Employees Albertson's 100 to 249 Employees Barnard Construction 101 to 249 Employees Best Western Gran Tree Inn 102 to 249 Employees Bridger Bowl 103 to 249 Employees Community Food Co‐Op 104 to 249 Employees Costco 105 to 249 Employees First Student 106 to 249 Employees JC Billion 107 to 249 Employees Kenyon Noble Lumber & Hardware 108 to 249 Employees Korman Marketing Group 109 to 249 Employees Martel Construction 110 to 249 Employees McDonalds 111 to 249 Employees Murdoch's Ranch & Home Supply 112 to 249 Employees Ressler Motor 113 to 249 Employees Rosauers Super Markets 114 to 249 Employees Target 115 to 249 Employees Town & Country Foods 116 to 249 Employees Zoot Enterprises 117 to 249 Employees Public Employers Size Montana State University 1,000+ Employees School District #7 1,000+ Employees Belgrade School District 500 to 999 Employees City of Bozeman 250 to 499 Employees Department of Agriculture 251 to 499 Employees Gallatin County 252 to 499 Employees 143 341 Principal Tax Payers: The annual certified valuation of taxable real and personal property is completed by the Montana Department of Revenue and transmitted to the City each August. For fall of 2017, the top taxpayers within the City were as follows. These ten taxpayers comprised a total of 9.4% of our property tax base. Tax Payer Assessed Value % of Total Northwestern Energy ‐ Transmission & Distribution 4,203,090 4.68% Centurylink, Inc. (Qwest)736,068 0.82% Bresnan Communications 708,027 0.79% Verizon Wireless 495,140 0.55% Harry Daum ‐ Gallatin Mall 444,051 0.49% Stone Ridge Partners LLC 417,262 0.46% Mitchell Development & Investment 386,775 0.43% First Security Bank 361,858 0.40% J & D Family Limited Partnership 345,613 0.39% Bridger Peaks Holding LLC 343,028 0.38% 144 342 Appendix B: Budget and Financial Policies The overall goal of the City's financial policies is to establish and maintain effective management of the City's financial resources. Formal policy statements and major objectives provide the foundation for achieving this goal. Accordingly, this section outlines the policies used in guiding the preparation and management of the City's overall budget and the major objectives to be accomplished. In addition, the rationale, which led to the establishment of the fiscal policy statements, is also identified. Budget Development & Administration 1. A comprehensive annual budget will be prepared for all funds expended by the City. State law provides that "no money shall be drawn from the treasury of the municipality nor shall any obligation for the expenditure of money be incurred except pursuant to the appropriation made by the commission." Inclusion of all funds in the budget enables the commission, the administration, and the public to consider all financial aspects of city government when preparing, modifying, and monitoring the budget, rather than deal with the City's finances on a "piece meal" basis. 2. The budget will be prepared in such a manner as to facilitate its understanding by citizens and elected officials. One of the stated purposes of the budget is to present a picture of the City government operations and intentions for the year to the citizens of Bozeman. Presenting a budget document that is understandable to the citizens furthers the goal of effectively communicating local government finance issues to both elected officials and the public. 3. Budgetary emphasis will focus on providing those basic municipal services which provide the maximum level of services, to the most citizens, in the most cost effective manner, with due consideration being given to all costs‐‐economic, fiscal, and social. Adherence to this basic philosophy provides the citizens of Bozeman assurance that its government and elected officials are responsive to the basic needs of the citizens and that its government is operated in an economical and efficient manner. 4. The budget will provide for adequate maintenance of capital, plant, and equipment and for their orderly replacement. All governments experience prosperous times as well as periods of economic decline. In periods of economic decline, proper maintenance and replacement of capital, plant, and equipment is generally postponed or eliminated as a first means of balancing the budget. Recognition of the need for adequate maintenance and replacement of capital, plant, and equipment, regardless of the economic conditions, will assist in maintaining the government's equipment and infrastructure in good operating condition. 5. The City will avoid budgetary practices that balance current expenditures at the expense of meeting future years' expenses. 145 343 Budgetary practices such as postponing capital expenditures, accruing future years' revenues, or rolling over short‐term debt are budgetary practices which can solve short‐term financial problems; however, they can create much larger financial problems for future administrations and commissions. Avoidance of these budgetary practices will assure citizens that current problems are not simply being delayed to a future year. 6. The City will give highest priority in the use of one‐time revenues to the funding of capital assets or other non‐recurring expenditures. Utilizing one‐time revenues to fund on‐going expenditures results in incurring annual expenditure obligations which may be unfunded in future years. Using one‐time revenues to fund capital assets or other non‐recurring expenditures better enables future administrations and commissions to cope with the financial problems when these revenue sources are discontinued, since these types of expenditures can more easily be eliminated. 7. The City will maintain a budgetary control system to help it adhere to the established budget. The budget passed by the Commission establishes the legal spending limits for the City. A budgetary control system is essential in order to insure legal compliance with the City's budget. 8. The City will exercise budgetary control (maximum spending authority) through City Commission approval of appropriation authority for each appropriated budget unit. Exercising budgetary control for each appropriated budget unit satisfies requirements of State law. It also assists the commission in monitoring current year operations and acts as an early warning mechanism when departments deviate in any substantive way from the original budget. 9. Reports comparing actual revenues and expenditures to budgeted amounts will be prepared monthly. The City's budget is ineffective without a system to regularly monitor actual spending and revenue collections with those anticipated at the beginning of the year. Monthly reports comparing actual revenues and expenditures to budget amounts provide the mechanism for the Commission and the administration to regularly monitor compliance with the adopted budget. Revenue Collection 1. The City will seek to maintain a diversified and stable revenue base. A city dependent upon a few volatile revenue sources is frequently forced to suddenly adjust tax rates or alter expenditure levels to coincide with revenue collections. Establishment of a diversified and stable revenue base, however, serves to protect the City from short‐term fluctuations in any one major revenue source. 2. The City will estimate revenues in a realistic and conservative manner. Aggressive revenue estimates significantly increase the chances of budgetary shortfalls occurring during the year‐ ‐resulting in either deficit spending or required spending reductions. Realistic and conservative revenue estimates, on the other hand, will serve to minimize the adverse impact of revenue shortfalls and will also reduce the need for mid‐year spending reductions. 146 344 3. The City will pursue an aggressive policy of collecting revenues. An aggressive policy of collecting revenues will help to ensure the City's revenue estimates are met, all taxpayers are treated fairly and consistently, and delinquencies are kept to a minimum. 4. The City will aggressively pursue opportunities for Federal or State grant funding. An aggressive policy of pursuing opportunities for federal or state grant funding provides citizens assurance that the City is striving to obtain all state and federal funds to which it is entitled, thereby reducing dependence on local taxpayers for the support of local public services. 5. User fees and charges will be used, as opposed to general taxes, when distinct beneficiary populations or interest groups can be identified. User fees and charges are preferable to general taxes because user charges can provide clear demand signals which assist in determining what services to offer, their quantity, and their quality. User charges are also more equitable, since only those who use the service must pay‐‐thereby eliminating the subsidy provided by nonusers to users, which is inherent in general tax financing. 6. User fees will be collected only if it is cost‐effective and administratively feasible to do so. User fees are often times costly to administer. Prior to establishing user fees, the costs to establish and administer the fees will be considered in order to provide assurance that the city's collection mechanisms are being operated in an efficient manner. Expenditures and Payments 1. On‐going expenditures will be limited to levels which can be supported by current revenues. Utilization of reserves to fund on‐going expenditures will produce a balanced budget; however, this practice will eventually cause severe financial problems. Once reserve levels are depleted, the City would face elimination of on‐going costs in order to balance the budget. Therefore, the funding of on‐going expenditures will be limited to current revenues. 2. Minor capital projects or recurring capital projects, which primarily benefit current residents, will be financed from current revenues. Minor capital projects or recurring capital projects represent relatively small costs of an on‐going nature, and therefore, should be financed with current revenues rather than utilizing debt financing. This policy also reflects the view that those who benefit from a capital project should pay for the project. 3. Major capital projects, which benefit future as well as current residents, will be financed with current revenues as well as other financing sources (e.g. debt financing). This policy reflects the view that those who benefit from a capital project should pay for the project. 147 345 4. Major capital projects, which benefit future residents, will be financed with other financing sources (e.g. debt financing). Major capital projects represent large expenditures of a non‐recurring nature which primarily benefit future residents. Debt financing provides a means of generating sufficient funds to pay for the costs of major projects. Debt financing also enables the costs of the project to be supported by those who benefit from the project, since debt service payments will be funded through charges to future residents. 5. Construction projects and capital purchases of $10,000 or more will be included in the Capital Improvement Plan (CIP); minor capital outlays of less than $10,000 will be included in the regular operating budget. The Capital Improvement Plan (CIP) differentiates the financing of high cost long‐lived physical improvements from low cost "consumable" equipment items contained in the operating budget. CIP items may be funded through debt financing or current revenues while operating budget items are annual or routine in nature and should only be financed from current revenues. 6. Spending Policy: The City will spend its resources in the following order. Resources will be categorized according to Generally Accepted Accounting Principles (GAAP) for state and local governments, with the following general definitions:  Restricted ‐‐ Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through constitutional provisions or by enabling legislation.  Committed ‐‐ Amounts constrained to specific purposes by the City Commission; to be reported as committed, amounts cannot be used for any other purpose unless the City Commission takes action to remove or change the constraint.  Assigned ‐‐ Amounts the City intends to use for a specific purpose; intent can be expressed by the Commission or by an official or body to which the Commission delegates the authority. The City Commission delegates this authority to the City Manager.  Unassigned ‐‐ Amounts that are available for any purpose; these amounts are reported only in the General Fund. When both restricted and unrestricted resources are available, spending will occur in the following order, for the identified fund types: Fund Type Order of Spending General Fund 1. Restricted 2. Committed 3. Assigned 4. Unassigned The City Commission and the City Manager, individually, have the authority to express assignments in the General Fund. Special Revenue Funds 1. Restricted 2. Committed 148 346 Fund Type Order of Spending 3. Assigned The City Commission and the City Manager, individually, have the authority to express assignments in Special Revenue Funds. Debt Service Funds 1. Assigned 2. Committed 3. Restricted The City Commission and the City Manager, individually, have the authority to express assignments in Debt Service Funds. Capital Projects Funds 1. Restricted 2. Committed 3. Assigned The City Commission and the City Manager, individually, have the authority to express assignments in Capital Project Funds. Debt Administration 1. The City will limit long‐term debt to capital improvements, which cannot be financed from current revenues. Incurring long‐term debt serves to obligate future taxpayers. Excess reliance on long‐term debt can cause debt levels to reach or exceed the government's ability to pay. Therefore, conscientious use of long‐term debt will provide assurance that future residents will be able service the debt obligations left by former residents. 2. The City will repay borrowed funds, used for capital projects, within a period not to exceed the expected useful life of the project. This policy reflects the view that those residents who benefit from a project should pay for the project. Adherence to this policy will also help prevent the government from over‐extending itself with regard to the incurrence of future debt. 3. The City will not use long‐term debt for financing current operations. This policy reflects the view that those residents who benefit from a service should pay for the service. Utilization of long‐term debt to support current operations would result in future residents supporting services provided to current residents. 4. The City of Bozeman will adhere to a policy of full public disclosure with regard to the issuance of debt. Full public disclosure with regard to the issuance of debt provides assurance that the incurrence of debt, for which the public is responsible, is based upon a genuine need and is consistent with underwriters’ guidelines. Reserves and Fund Balances 1. Reserves and Fund Balances will be properly designated into the following categories: 149 347  Nonspendable fund balance ‐‐ Amounts that are not in a spendable form (such as inventory) or are required to be maintained intact (such as the corpus of an endowment fund).  Restricted fund balance ‐‐ Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through constitutional provisions or by enabling legislation.  Committed fund balance ‐‐ Amounts constrained to specific purposes by the City Commission; to be reported as committed, amounts cannot be used for any other purpose unless the City Commission takes action to remove or change the constraint.  Assigned fund balance ‐‐ Amounts the City intends to use for a specific purpose; intent can be expressed by the Commission or by an official or body to which the Commission delegates the authority.  Unassigned fund balance ‐‐ Amounts that are available for any purpose; these amounts are reported only in the General Fund. 2. A minimum level of General Fund reserve equal to 16.67% of annual revenues will be maintained by the City. This reserve is committed to be used for: cash flow purposes, accrued employee payroll benefits which are not shown as a liability, unanticipated equipment acquisition and replacement, and to enable the city to meet unexpected expenditure demands or revenue shortfalls. Property taxes represent the City's primary source of general fund revenue. Property taxes are collected in November and May of each fiscal year. Since the City's fiscal year begins on July 1st, the City must maintain an adequate cash balance in order to meet its expenditure obligations between July 1st and the commencement of the collection of property taxes in November. Accrued employee payroll benefits represent a bona fide obligation of the City. The City will maintain sufficient reserves to meet its annual expenditure obligations. The City recognizes the need to maintain adequate equipment in order to carry out required public services. Equipment acquisition and replacement represent on‐going costs of a relatively minor nature, as compared to major capital purchases. We plan for equipment replacement within our Capital Improvement Program. However, unforeseen equipment problems will arise. The reserve will provide resources for the immediate, unanticipated replacement of critical equipment. The City is subject to revenue shortfalls and unexpected expenditure demands during the fiscal year. An undesignated General Fund reserve will be maintained to be able to offset these revenue shortfalls or meet unexpected demands occurring during the year, without suddenly adjusting tax rates or reducing expenditures. Financial Reporting & Accounting 1. The City will manage and account for its financial activity in accordance with Generally Accepted Accounting Principles (GAAP), as set forth by the Governmental Accounting Standards Board (GASB). GASB is recognized as the authority with respect to governmental accounting. Managing the City's finances in accordance with GAAP and in accordance with the rules set forth by GASB provides Bozeman citizens assurance that their public funds are being accounted for in a proper manner. 150 348 2. The City will maintain its accounting records for general governmental operations on a modified accrual basis, with revenues recorded when available and measurable, and expenditures recorded when services or goods are received and liabilities incurred. Accounting records for proprietary fund types and similar trust funds will be maintained on an accrual basis, with all revenues recorded when earned and expenses recorded at the time liabilities are incurred, without regard to receipt or payment of cash. Adherence to this policy will enable the City to prepare its financial statements in accordance with GAAP as set forth by the GASB. 3. The City of Bozeman will prepare a Comprehensive Annual Financial Report (CAFR) in conformity with Generally Accepted Accounting Principles (GAAP). The report will be made available to the general public. The CAFR shall be prepared in accordance with the standards established by the GFOA for the Certificate of Achievement for Excellence in Financial Reporting Program The Certificate of Achievement represents a significant accomplishment for a government and its financial management. The program encourages governments to prepare and publish an easily readable and understandable comprehensive annual financial report covering all funds and financial transactions of the government during the year. The CAFR provides users with a wide variety of information useful in evaluating the financial condition of a government. The program also encourages continued improvement in the City's financial reporting practices. 4. The City will ensure the conduct of timely, effective, and annual audit coverage of all financial records in compliance the local, state, and federal law. Audits of the City's financial records provide the public assurance that its funds are being expended in accordance with Local, State, and Federal law and in accordance with GAAP. Audits also provide management and the Commission with suggestions for improvement in its financial operations from independent experts in the accounting field. 5. The City of Bozeman will maintain a policy of full and open public disclosure of all financial activity. Full and open public disclosure of all financial activity provides the public with assurance that its elected officials and administrators communicate fully all financial matters affecting the public. 6. The modified accrual basis of accounting and budgeting is used for the governmental funds. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the related liability is incurred. Employee compensated absences and principal and interest on long‐term debt expenditures are recorded when due in the current period. The accrual basis of accounting is used for proprietary funds. Under this method, revenues are recorded when earned and expenses are recorded when the related liability is incurred. For budget preparation and presentation, the proprietary funds’ expenses are converted to expenditures and follow the same budget format as the government fund types. Capital outlays in the enterprise funds are presented as expenses for budget basis, but are recorded as assets along with associated depreciation expense on the GAAP 151 349 basis. Debt service principal payments in the enterprise funds are accounted for as expenses for budget purposes, but are reported as reduction of long‐term debt liability on the GAAP basis. Recording capital outlays as expenditures and principal payments on long‐term debt for budget purposes, presents a clearer picture of the City’s financial operations, is easier to administer for cash flow purposes, and is easier for the lay person to understand. 152 350 Appendix C: Glossary of Key Terms ACCRUAL BASIS A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. AMERICAN RECOVERY Federal legislation signed in early 2009. Commonly referred to as & REINVESTMENT ACT the “Stimulus Bill” or “stimulus.” (ARRA) APPROPRIATION Legal authorization granted by City Commission to make expenditures and incur obligations. ARRA See “American Recovery & Reinvestment Act” ASSESSED VALUATION A value that is established for real and personal property for use as a basis for levying property taxes. (For the City of Bozeman, Property values are established by the Montana Department of Revenue.) ASSET Resources owned or held by a government having monetary value. AVAILABLE Refers to the funds remaining from the prior years which are available for (UNDESIGNATED) appropriation and expenditure in the current year FUND BALANCE . BALANCED BUDGET Refers to a government budget with revenues equal to expenditures. BOND A written promise to pay a sum of money on a specific date at a specified interest rate. The most common types of bonds are general obligation, revenue, and special assessment district bonds. These are most frequently used for construction of large capital projects such as buildings, streets, and water and waste water lines. BOND RATING An evaluation of a bond issuer’s credit quality and perceived ability to pay the principal and interest on time and in full. BOND REFINANCING The payoff and re‐issuance of bonds, to obtain better interest rates and/or bond conditions. BUDGET Plan of financial operation, embodying an estimate of proposed expenditures for a given period (City of Bozeman’s budget is for a fiscal year July 1—June 30) and the proposed means of financing them. Upon approval by Commission, the appropriation ordinance is the legal basis for incurring expenditures. BUDGET AMENDMENT A procedure to revise the appropriation ordinance through action by the City Commission. 153 351 BUDGET CALENDAR The schedule of key dates or milestones which the City follows in the preparation, adoption, and administration of the budget. BUDGET MESSAGE The opening section of the budget which provides the City Commission and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, and recommendations regarding the financial policy for the upcoming period. BUDGETARY BASIS This refers to the form of accounting utilized throughout the budget process. These generally take one of three forms: GAAP, Cash, and Modified Accrual. BUDGETARY CONTROL The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and available revenues. CAPITAL BUDGET The Capital Budget comprises the capital improvements that are funded in the current budget year. CAPITAL The item has a unit cost over $5,000, benefits future periods, has a normal EXPENDITURE useful life of 1 year or more, has an identity that does not change with use (i.e., retains its identity throughout its useful life), and s identifiable and can be separately accounted for. Improvements to existing assets must add life and value to be included as a capital item. CAPITAL Expenditures related to the acquisition, expansion, or rehabilitation of an IMPROVEMENTS element of the government’s physical plant; sometimes referred to as ` infrastructure. CAPITAL IMPROVEMENTS PROGRAM (CIP) A plan for capital expenditures needed to maintain, replace, and expand the City’s heavy equipment and public infrastructure (for example streets, parks, buildings, etc.) The CIP projects these capital equipment and infrastructure needs for a set number of years (5 years for City of Bozeman’s Program) and is updated annually to reflect the latest priorities, cost estimates and changing financial estimates or strategies. The first year of the adopted CIP becomes the basis of the City’s capital budget. CAPITAL OUTLAY Items that cost more than $5,000 and have a useful life of one year or more. CAPITAL PROJECT New facility, technology system, land or equipment acquisition, or improvements to existing facilities beyond routine maintenance. Capital projects are included in the CIP and become fixed assets. CASH BASIS A basis of accounting in which transactions are recognized only when cash is increased or decreased. CDBG Community Development Block Grant. 154 352 CIP See Capital Improvement Program. CONTINGENCY A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. CONTRACTED SERVICES Expenditures for services performed by firms, individuals, not other city departments. DEBT LIMIT The maximum amount of gross or net debt which is legally permitted. DEBT RATIO Ratios which provide a method of assessing debt load and the ability to repay debt which plays a part in the determination of credit ratings. They are also used to evaluate the City’s debt position over time and against its own standards and policies. DEBT SERVICE Payment of principal and interest related to long term loans or bonds. DEBT SERVICE FUND A fund established to account for the accumulation of resources for, and the payment of, general long‐term debt principal and interest. DEBT SERVICE FUND REQUIREMENT The amounts of revenue which must be provided for a Debt Service Fund so that all principal and interest payments can be made in full on schedule. DEFICIT The excess of an entity’s liabilities over its assets or the excess of expenditures over revenues during a single accounting period. DEPARTMENT A major administrative division of the City which indicates overall management responsibility for an operation or a group of related operations within a functional area. DEPRECIATION Expiration in the service life of fixed assets, attributable to wear and tear, deterioration, action of physical elements, inadequacy, and obsolescence. DESTINGUISHED BUDGET PRESENTATION AWARDS PROGRAM A voluntary awards program administered by the Government Finance Officers Association to encourage governments to prepare effective budget documents. DIVISION A group of homogenous cost centers within a department. ENTERPRISE FUND A fund established to account for operations that are financed and operated in a manner similar to private business enterprises ‐ where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. 155 353 ESTIMATE The most recent prediction of current year revenue and expenditures. Estimates are based upon many months of actual expenditure and revenue information and are prepared to consider the impact of unanticipated costs or other economic changes. ESTIMATED REVENUE The amount of projected revenue to be collected during the fiscal year. EXPENDITURES Decreases in net financial resources. FISCAL YEAR The time period signifying the beginning and ending period for recording financial transactions. The City's fiscal year begins on July 1 and ends on June 30 of each year. FIXED ASSETS Assets of long‐term character which are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment. FTE See Full Time Equivalent. FULL FAITH AND CREDIT A pledge of a government’s taxing power to repay debt obligations. FULL TIME EQUIVALENT Also referred to as FTE. The yearly personnel hours worked by a position divided by the total available work hours for a full year (2080). FUND An accounting entity with a self‐balancing set of accounts which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. FUND BALANCE The excess of assets over liabilities. The beginning fund balance is the residual funds brought forward from the previous fiscal year. Nonspendable fund balance ‐‐ Amounts that are not in a spendable form (such as inventory) or are required to be maintained intact (such as the corpus of an endowment fund). Restricted fund balance ‐‐ Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through constitutional provisions or by enabling legislation. Committed fund balance ‐‐ Amounts constrained to specific purposes by a government itself using its highest level of decision‐making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest‐level action to remove or change the constraint. 156 354 Assigned fund balance ‐‐ Amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. Unassigned fund balance ‐‐ Amounts that are available for any purpose; these amounts are reported only in the General Fund. GAAP See Generally Accepted Accounting Principles. GENERAL FUND The fund used to account for all of the City’s financial resources except those required to be accounted for in another fund. GENERAL OBLIGATION BONDS (G.O. Bonds) Bonds for the payment of which the full faith and credit of the issuing government are pledged. These bonds usually require voter approval and finance a variety of public projects such as roads, buildings, parks and improvements. GOAL A statement of broad direction, purpose or intent based on the needs of the community. G.O. BONDS See General Obligation Bonds. GOVERNMENTAL FUNDS Funds generally used to account for tax‐supported activities. Governmental funds include: general, special revenue, debt service, capital projects, and permanent funds. GRANT A contribution by one government unit or funding source to another. The contribution is usually made to aid in the support of a specified function (e.g. public safety or drug enforcement,) but is sometimes for general purposes. IMPROVEMENT Special assessment districts formed by property owners who desire and are DISTRICT willing to pay for mutually enjoyed improvements such as lighting or street maintenance. INFRASTRUCTURE Facilities that support the daily life and growth of the city, for example, streets, public buildings, wastewater treatment, parks. INTERGOVERNMENT REVENUE Funds received from federal, state, and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes. 157 355 INTERNAL SERVICE FUND A fund used to account for the financing of goods or services provided by one department or agency to other departments on a cost‐reimbursement basis. LEASE‐PURCHASE AGREEMENT Contractual agreements which are termed "leases", but which in substance amount to purchase contracts for equipment and machinery. LEVY (Verb) To impose taxes, special assessments, or service charges for the support of governmental activities. (Noun) The total amount of taxes, special assessments, or service charges imposed by a government. LINE‐ITEM BUDGET A budget that lists each expenditure category (salary, materials, telephone service, travel, etc.) separately, along with the dollar amount budgeted for each specific category. LONG‐TERM DEBT Debt with a maturity of more than one year after the date of issuance. MANDATE Legislation passed by the state or federal government requiring action or provision of services and/or programs by the City. Examples include the Americans with Disabilities Act, which requires such actions as physical facility improvements and provision of specialized equipment for public recreation and transportation. MILL LEVY Rate applied to Assessed Valuation to determine property taxes. A mill is 1/10th of a penny or $1.00 of tax for each $1,000 of assessed valuation. OBJECT As used in expenditure classification, this term applies to the article purchased or the service obtained (as distinguished from the results obtained from expenditures). Examples are personnel services, contracted services, and supplies and materials. OBJECTIVE Desired outcome‐oriented accomplishments that can be measured and achieved within a given time frame, and advances the activity or organization toward a corresponding goal. OPERATING BUDGET The portion of the budget pertaining to daily operations that provides basic governmental services. The operating budget contains appropriations for such expenditures as personnel, supplies, utilities, materials, and services. ORDINANCE A formal legislative enactment by the City Commission. If it is not in conflict with any higher form of law, such as state statute or constitutional provision, it has the full force and effect of law within the boundaries of the City. OUTSTANDING BONDS Bonds not yet retired through principal payment. 158 356 OVERLAPPING DEBT The City’s proportionate share of the debt of other local governmental units which either overlap it or underlie it. The debt is generally apportioned based on relative assessed value. PAYMENT IN LIEU OF TAXES Also referred to as PILT. Payments made in lieu of taxes from another government or entity. PERFORMANCE BUDGET A budget that focuses on departmental goals and objectives rather than line items, programs, or funds. Workload and unit cost data are collected in order to assess effectiveness and efficiency of services. PERSONNEL SERVICES Items of expenditures in the operating budget for salaries and wages paid for services performed by City employees, as well as the fringe benefit costs. PROPERTY TAX A levy upon each $100 of assessed valuation of real and personal property within the City of Bozeman. PROPRIETARY FUND Funds that focus on the determination of operating income, changes in net position (or cost recovery) financial position, and cash flows. Proprietary funds include enterprise and internal service funds. RESOLUTION A special or temporary order of a legislative body (City Commission) requiring less legal formality than an ordinance or statute. RESOURCES Total amounts available for appropriation including estimated revenues, fund transfers, and beginning fund balances. REVENUE Funds that the government receives as income. It includes items such as tax payments, fees for specific services, receipts from other governments, fines, forfeitures, grants, shared revenues and interest income. REVENUE BONDS Bonds sold for constructing a project that will produce revenue for the government. That revenue is pledged to pay the principal and interest of the bond. RISK MANAGEMENT An organized attempt to protect a government’s assets against accidental loss in the most economical method. SPECIAL IMPROVEMENT DISTRICT (SID) An area defined and designated for improvements, often financed with bond proceeds that specifically benefit the property owners within the area of the district. Debt is repaid through annual assessments to property owners. 159 357 SPECIAL REVENUE FUND A fund used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or of major capital projects) that are legally restricted to expenditure for specified purposes. STATE SHARED REVENUE Revenues levied and collected by the state but shared with local governments as determined by state government. Entitlement funds received by the City form the state of Montana is the largest State Shared Revenue. TAXES Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not refer to specific charges made against particular property for current or permanent benefits, such as special assessments. TIF Tax Increment Financing. A method of using incremental increases in property tax values to fund the improvements or efforts of a designated area. TRANSFERS IN/OUT Amounts transferred from one fund to another to assist in financing the services from the recipient fund. UNRESERVED FUND BALANCE The portion of a fund’s balance that is not restricted for a specific purpose and is available for general appropriation. USER CHARGES OR FEES The payment of a fee for direct receipt of a public service by the party benefiting from the service. WORKING CAPITAL The different between current assets and current liabilities. WORKLOAD INDICATOR A unit of work to be done (e.g. number of permit applications received for the number of burglaries to be investigated.) WRF Water Reclamation Facility; commonly referred to in the past as a Wastewater Treatment Plant 160 358