The URL can be used to link to this page

Home My WebLink About06-11-18 City Commission Packet Materials - A3. FY19 Budget Work Session - General and Community Development Fund Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director Anna Rosenberry, Assistant City Manager Andrea Surratt, City Manager SUBJECT: Fiscal Year 2019 (FY19) Budget Work Session General Fund and Community Development Fund MEETING DATE: June 11, 2018 AGENDA ITEM TYPE: Action Item – Budget Work Session RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you see fit. BACKGROUND: Attached to this memo are budget worksheets and other materials regarding the General Fund and the Community Development special revenue fund. This information has been prepared to assist us in developing the City’s Final Budget, and is based on what is contained in the FY19 City Manager’s Recommended Budget, available at http://www.bozeman.net/government/finance/budget-and-financial-reports. Information regarding the General fund is found on page 29 and Community Development Fund (planning) begins on page 34 of the fund summaries section. Based on feedback during this work session, and other work sessions held this spring, we intend to prepare the Final Budget resolution. The hearing for adoption of the Final Budget is scheduled for June 25, 2018. General Fund and Community Development Fund: We will be reviewing the details for the two funds tonight. FISCAL EFFECTS: Although the Final Budget adoption has far-reaching fiscal effects, there are no immediate fiscal effects as a result of this work session. The funds discussed tonight have proposed budgets with changes in property taxes will affect all property owners. The Worksheets outline these effects in detail. As presented, the City Manager’s Recommended Budget is projected to have the following effects on the typical City resident, with areas affected by tonight’s Funds highlighted in yellow. 334 Attachments: FY19 General Fund and Community Development Budget Worksheets HRDC Streamline Request Letter On File: City Manager’s Recommended Budget for FY19 Report compiled on: May 30, 2018 FY18 Approved FY19 Recommended FY 19 Recommended increase % Change Street Assessment 198.02 207.92 9.90 5.0% Arterial Street Assessment 69.97 51.78 (18.19) -26.0% 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 4.23$ 0.35$ Total Annual Increase Pending Water/ Sewer rates Monthly Increase 335 General Fund and Community Development Fund Budget Worksheets Information regarding the General fund is found on page 29 and Community Development Fund (planning) begins on page 34 of the fund summaries section. General Fund - FY19 Budget Worksheet 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 increase in revenue is 4% while expenditures have increased by 5%. General Fund – FY19 Expenditure Total $34 Million This Year’s General Fund budget recommends a total of $34 Million in expenditures. Personnel costs are the highest portion ($21.8 million) followed by operations costs of $9.6 million. The capital expenditures total $2 million, which includes vehicle replacements and additions, the Commission Room remodel, and the police department portable radio lease. The break down by percentage is below: 336 Personnel: The FY19 budget proposes adding 3 positions and expanding a part time position to a full time position. In addition, the General fund contributes 25% of the funding for a full time code compliance manager that will report to the Community Development department. Information Technology 1.00 System Administrator I Human Resources 1.00 Human Resource Generalist Police 1.00 Police Information Generalist 0.60 Animal Control Officer (full Time) (.40 + .60 = 1 FTE) Capital Projects: FY19 total for the fund is just under $2 million and includes the Commission room remodel, Police radio lease and the General fund agencies’ portion of the Stiff professional building remodel. On the following page, you will find a complete listing of the recommended capital projects for the General Fund. FY17 Actual FY18 Approved FY19 CM Recommended 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 337 General Fund – FY19 Revenues Total $31.8 Million The City's General Fund is supported 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. We are estimating the General Fund to generate $31.8 million in revenue; of that, 47% is from property taxes, 22% from the State share and 9% for charges for services. The following chart shows the breakdown of revenues by source. PROJECT NAME PROJECT #FY19 M&E: Office Equipment & Furniture new positions(1530,2010)New $14,000 City Hall Vehcile lease Plug-in Electric Hybrid GF282 $9,000 POLICE NON-PATROL VEHICLE REPLACEMENTS GF052 $15,000 PATROL CAR AUXILIARY EQUIPMENT GF292 $15,000 CEMETERY MOWER REPLACEMENTS GF010 $16,000 SWIM CENTER – BARRIER WALL IN PUMP ROOM GF298 $22,000 Fiber Optic Conduit and Vaults GF275 $30,000 Learning Management System GF287 $25,000 SWIM CENTER ROOF REPLACEMENT GF297 $26,000 TURF SWEEPER GF195 $32,000 SUNGARD ANALYTICS NOW COGNOS BI (BUSINESS INTELLIGENCE) WEB- BASED REPORTING SUITE GF224 $35,000 PROFESSIONAL BUILDING RECONFIGURATION - Phase 2 GF199 $37,031 REMOTE CLOSET SWITCHES, ROUTER AND WIRELESS AP REPLACEMENT GF080 $45,000 ISCSI STORAGE REPLACEMENT GF229 $45,000 CEMETERY VEHICLE REPLACEMENTS GF116 $50,000 Replacement of City Hall AC Condensing Unit – Roof Top GF241 $50,000 PARK VEHICLE REPLACEMENTS GF115 $50,000 Snow Plowing Vehicle GF270 $65,000 SWIM CENTER UV SYSTEM REPLACEMENT GF295 $68,500 Commission Room Technology Upgrade GF283 $85,000 Southwest Montana Veteran's Cemetery GF268 $88,000 LARGE DECK MOWER GF034 $70,000 PROST PLAN UPDATE GF205 $109,000 PATROL VEHICLE REPLACEMENT GF053 $62,000 PROFESSIONAL BUILDING RECONFIGURATION - Phase 2 GF199 $136,186 PORTABLE AND MOBILE RADIO REPLACEMENTS GF166 $295,000 City Hall Commission Room Expansion/Remodel GF304 $300,000 CEMETERY IRRIGATION PROJECT GF231 $200,000 $1,994,717 338 General Fund – FY19 Reserve Estimate Total $5.3 Million 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. To support the strategic plan efforts, the equivalent of two mills ($210,488) has been transferred to the Workforce Housing Fund for Affordable Housing projects. The City has set as its policy for General Fund to maintain at least 16.67% of the year’s revenue in ending fund balance. FY19 proposed budget, we have estimated to have will have 16.72% at the end of the fiscal year. General Fund – FY19 Department/Activity Detail Below is a listing of the Departments in the General Fund, including some of the larger and more significant items in their Recommended Budget. Departmental information in the City Manager’s Recommended Budget document begins on page 60 (departmental information contains information related to all funds, including the General Fund.) A pie chart showing the relative proportion of FY19’s budget categories is provided, as well as a comparison of the FY18 Recommended vs. FY17 Approved Budget by category for each department. 339 City Commission1%City Manager 5% Municipal Court3% City Attorney 4% Finance3% Facilities Management 6% Information Technology 4% Human Resources 2% Police 25%Fire16%Cemetery2% Parks 6% Library 6% Recreation 6% Economic Development 1% Non- Departmental 11% General Fund Expenditure by Department 340 The City Manager’s (CM) Recommended Budget contains the following General Fund items only, (some Departments receive funding for certain part of their operations from special revenue funds. Those amounts are not included in the information below): City Commission • Fall 2018 ballot item (add-on to regular election) - $9,000 • FY19 CIP #GF283 Commission Room Technology Upgrade - $88,000 • Increases in copier paper, toner/printer upkeep, and legal ads, etc. - $7,000 City Manager • Increase in supplies and budget for Communications Coordinator $15,000 • City Clerk- o Agenda Automation/video upgrade $10,000 o Boards management software $8,250 • Neighborhoods- o Increases for engagement and marketing $4,500 • Sustainability- o Climate Action Plan (Strategic Plan) $85,000 o Lease Hybrid electric car for all administrative functions to share at City Hall $9,000 128,798 100,350 131,266 82,200 85,000 - 50,000 100,000 150,000 Personnel Operations Capital City Commission FY18 FY19 Recommended Personnel61% Operations 39% City Commission 341 City Attorney • Increase in bar dues of $500 for each of the seven Lawyers • Supplies and equipment increases to move towards a paperless office • Software for criminal records cases $10,000 1,095,457 282,357 8,500 1,193,085 380,679 9,000 2,100 - 500,000 1,000,000 1,500,000 Personnel Operations Capital Transfers City Manager FY18 FY19 Recommended Personnel76% Operations 24% City Manager 1,037,748 209,200 - 1,119,223 139,650 - - 500,000 1,000,000 1,500,000 Personnel Operations City Attorney FY18 FY19 Recommended 342 Finance • Personnel decrease due to utility billing clerks salary and benefits moving to the Public Works Administration Internal Service fund for their time to be allocated to the Enterprise funds they serve • Increase in training for newer staff $3,000 • Increase in furniture for new staff (Lead Billing Clerk accounted for in the Public Works Admin Internal Service fund) $7,000 • GF224- SUNGARD ANALYTICS NOW COGNOS BI (BUSINESS INTELLIGENCE) WEB-BASED REPORTING SUITE $35,000 Personnel 89% Operations 11% City Attorney 876,140 189,811 - 756,309 197,538 44,000 - 500,000 1,000,000 Personnel Operations Capital Finance FY18 FY19 Recommended Personnel76% Operations20% Capital4% Finance 343 Facilities Management • GF 304 - City Hall remodel $300,000 • GF103 - Site ADA Compliance, $10,000 • GF199 – Professional Building Upgrade PH II, $37,031 • GF241 – City Hall AHU Replacement, $50,000 • GF272 – Site Wireless Security Lock Upgrade, $15,000 • GF285 – Library Exterior Door ADA Operators Replacement, $12,000 • Increases for facility maintenance - $16,233 Information Technology • Increase due to renewal of 3-year maintenance contracts $55,700 • Increase in 1.0 FTE System Administrator I 311,147 979,754 164,750 350,572 1,149,749 387,031 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Personnel Operations Capital Facilities Management FY18 FY19 Recommended Personnel 19% Operations 61% Capital 20% Facilities Management 344 Human Resources • 1.0 FTE addition of Human Resource Generalist • Increase in furniture and equipment for new staff $7,000 • GF287- Learning Management Software (strategic Plan) $35,000 586,334 301,888 90,000 712,461 392,538 226,186 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Personnel Operations Capital Information Technology FY18 FY19 Recommended Personnel 54%Operations 29% Capital17% Information Technology 345 Police • GF166 – Portable Radio Replacement share $295,000 • GF052-Police non-patrol vehicle replacements $$15,000 • GF292- Patrol Car Auxiliary Equipment $15,000 • GF053- Patrol Car Replacement $62,000 • 1.0 FTE increase for a Police Information Generalist • 0.6 FTE increase to move a part-time Animal Control Officer to full-time 331,290 82,100 - 413,518 97,100 30,000 - 100,000 200,000 300,000 400,000 500,000 Personnel Operations Capital Human Resources FY18 FY19 Recommended Personnel76% Operations 18% Capital 6% Human Resources 346 Fire • NOTE: Capital replacement is funded through the Fire and Capital Equipment Special Revenue Fund. • Decrease of $163,000 moving fire protection hydrant fire testing as part of the Water Utility 6,947,936 863,279 79,000 7,311,634 843,152 387,000 - 2,000,000 4,000,000 6,000,000 8,000,000 Personnel Operations Capital Police FY18 FY19 Recommended Personnel86% Operations 10% Capital 4%Police 4,713,667 573,947 - 4,924,814 406,838 - - 2,000,000 4,000,000 6,000,000 Personnel Operations Capital Fire FY18 FY19 Recommended 347 Parks and Recreation Cemetery • GF010- Mower Replacements $16,000 • GF231- Cemetery Irrigation project $200,000 • GF116- Vehicle Replacement $50,000 • GF268 -Southwest Montana Veteran's Cemetery $88,000 Personnel92% Operations 8%Capital 0% Fire 310,759 112,413 50,000 364,420 126,469 354,000 - 100,000 200,000 300,000 400,000 Personnel Operations Capital Cemetery FY18 FY19 Recommended Personnel 40% Operations17% Capital 43% Cemetery 348 Parks • GF115- Parks Vehicle replacement $50,000 • GF195- Turf Sweeper $32,000 • GF034- Large Deck Mower $70,000 • Significant increases to maintain operations and with the increase of park land o Chemicals (increase in athletic fields/parkland) $7,000 o General Supplies $14,500 o General Maintenance Contracts $11,000 o Repair and maintenance of building and equipment $22,00 Recreation • Increase of supplies for Recreation programs includes computer and phones $18,750 • Increase in operations for Facilities mainly due to the Story Mill Community Center coming online • Aquatics, both the Swim Center and Bogart pools, have increased maintenance costs • Aquatics capital projects are at the swim Center GF298- Barrier wall for pump room $22,000; GF297- Roof Replacement $26,000; and GF295 UV System Replacement $68,500 848,051 735,183 445,246 989,632 861,989 326,000 - 500,000 1,000,000 1,500,000 Personnel Operations Capital Parks FY18 FY19 Recommended Personnel 45% Operations 40% Capital 15% Parks 349 Library • Increase in computer supplies for $9,500 and $21,000 for reference materials to expand digital catalogs and services • Increase in digital subscriptions of $20,000 1,011,496 611,684 188,500 1,059,330 768,079 116,500 - 500,000 1,000,000 1,500,000 Personnel Operations Capital Recreation FY18 FY19 Recommended Personnel 54%Operations 40% Capital 6% Recreation 1,485,448 507,924 - 1,606,758 602,452 - - 500,000 1,000,000 1,500,000 2,000,000 Personnel Operations Capital Library FY18 FY19 Recommended 350 Economic Development • GF275- Fiber Optic Conduit and Vaults $30,000 Non- Departmental • Increases in Liability Insurance and debt service payments • $210,488 transfer to the Workforce Housing Fund (Strategic Plan Initiative) • $150,000 Contingency • $10,440 for the City Band (Request same as prior year) • $169,244 HRDC Streamline (Request $64,000 and 1 mill) Personnel 73% Operations27% Library 216,774 180,690 25,000 246,661 214,590 30,000 - 100,000 200,000 300,000 Personnel Operations Economic Development FY18 FY19 Recommended Personnel 53% Operations 47% Economic Development 351 2,861,483 747,084 3,196,214 535,488 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Operations Transfers Non-Departmental FY18 FY19 Recommended Operations 86% Other14% Non-Departmental 352 Community Development Fund – FY19 Budget Worksheet Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes. The Community Development Fund is a separate fund that accounts for revenues and expenditures related to community planning and zoning operations. Community Development - FY19 Expenditure Total $1.6 Million Capital: The following capital projects are planned for FY19 Community Development Fund - FY19 Revenues Total $1.2 Million $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 FY13 Actual FY14 Actual FY15 Actual FY16 Actual FY17 Actual FY18 Budget FY19 Estimate Community Development Expenditures Personnel Operations Capital FY17 Actual FY18 Approved FY19 CM Recommended 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 FUND Special Revenue Funds Community Development CD05 Copier Replacement $35,000 Community Development GF199 PROFESSIONAL BUILDING RECONFIGURATION - Phase 2 $266,218 Community Development Total $301,218 Application Fees 51% General Fund/ Helath Fund Transfer 9% Taxes 13% State/Grants 7%Other 4% Restricted Cash 16% Community Development Fund -Revenues 353 Community Development - FY19 Reserves Total $833k FY19 Community Development Operating Restricted FYE17 Ending Balances $ 593,824 $ 473,372 FY18 ESTIMATED Revenues $ 1,501,357 FY18 Expenditures $ (1,505,363) $ (131,712) Ending FY18Balance $ 589,818 $ 341,660 Estimated Revenues FY19 $ 1,544,196 $ 268,710 Budgeted Expenditures Personnel $ (990,695) Operations $ (369,281) $ (250,000) Capital $ (301,218) Ending Balance FY19 $ 472,820 $ 360,370 354 Strategic Priorities/ Initiatives Fund 1.1 a City Communication Plan and Protocol. Develop, implement, and train for, a City-wide communications protocol and outreach plan. General 1.1 b Dramatically increase transparency and create access to all city documents.General 1.2 c Create a Standard Boards and Commission Onboarding and Education Process. Increase education for boards, advisory boards and the zoning commission. General 1.3 a Quarterly City/County Commission Meetings. Establish regularly scheduled meetings between the City of Bozeman and Gallatin County Commission as well as an annual meeting with the City of Belgrade. General 1.3 b Enhance our relationship with BSD7.General 1.3 c Enhance our relationship with Montana State University.General 1.3 d Enhance our relationship with State Agencies.General 1.3 e Develop and support a legislative agenda.General 3.4 Facilitate and promote recreational opportunities and active health programs and facilities.General Parks Maintenance District 4.3 a INITIAL STEPS- Develop a Comprehensive Parks Maintenance and Facilities Funding Program.General 5.2 a Document and Create an Art Trail Map. Partner with existing organizations to create a bike and trail map that showcases public art throughout the City. General 5.3 a Strategic Educational and Arts Partnerships. Develop and strengthen partnerships with the School District and Montana State University to further the arts. General 1.2 c Create a Standard Boards and Commission Onboarding and Education Process. Increase education for boards, advisory boards and the zoning commission. General 1.4 Explore opportunities for partnerships with key business groups and non-profit organizations.General An Innovative Economy 2.1 Support retention and growth of both the traded and local business sectors while welcoming and encouraging new and existing businesses. General 3.1 e Adopt, Fund and Implement Staffing Plan for Police. Augment staffing to improve efficiencies and police service delivery to the community consistent with the findings of staffing analysis. General 3.1 f Obtain Fire Department Accreditation. Pursue Fire Department accreditation through the Center for Public Safety Excellence (CPSE) Commission on Fire Accreditation International (CFAI). General 6.3 a Update the Climate Action Plan. Update the Climate Action Plan and revisit greenhouse gas emissions inventories, review reduction targets, and explore a voluntary energy efficiency incentive program or stretch code to encourage new residential and commercial construction to exceed the performance standards of the currently adopted building energy code. General 6.5 a Update Parks & Recreation Strategic Plan. Develop the next iteration of the Bozeman Parks & Recreation Strategic Plan (PROST). Use this plan to help inform the other City departmental planning. General 7.1 a Develop a Cross-Functional Team Culture. Use cross-functional teams to meet Bozeman’s future opportunities and challenges. General 7.2 b Develop and Implement an Innovative Onboarding Program for New Employees. Work with partners to develop new tools to recruit and provide assistance to new employees so they feel welcome and prepared. General 7.2 d Set Diversity Goals. Define the type of diversity the City seeks to achieve as an organization (e.g. reflecting the community-at-large) and develop a program to achieve these goals. General 7.3 a Implement Department Staffing Plans. Compile departmental staffing plans and create a system to implement the plans to address current and future work load. General 7.3 c Improve Departmental Collaboration. Identify opportunities to improve collaboration between City departments and create subgroups on communications, community interactions, long-range planning, and other matters of common concern. General 7.4 a Develop Data Analysis Tools. Develop more sophisticated analytical tools to access, monitor, measure, and analyze data to inform decision making. General 4.4 a Update the Downtown Plan.Community Development 4.1 a Adopt a New Growth Policy Based on Sustainable Growth Principles. Direct and guide sustainable growth through appropriate planning, annexation, land use, and a streamlined development review process. Community Development 4.2 d Update Historic Preservation Guidelines. Update the Neighborhood Conservation Overlay District (NCOD) guidelines for historic preservation in downtown, midtown, and other commercial districts and neighborhood centers. Promote continued investment in the city's inventory of historic structures relative to ongoing infill and redevelopment. Community Development Annexation Analysis and Study 4.3 e INITIAL STEPS- Annexation of Islands and Critical Adjacent Lands. Investigate the development of new annexation policies to address long term tax fairness for public services, locations of infrastructure, and locations for future infill and growth. Community Development Sustainable Environment A High Performance Organization Community Outreach Planning and Land Use Initiatives Partnerships for Education and Learning An engaged Community A Safe, Welcoming Community 355 March 31, 2018 Ms. Andrea Surratt Bozeman City Hall PO Box 1230 Bozeman, MT 59771-1230 Dear Ms. Surratt, First, I’d like to thank you for your continued support of Streamline, the state’s first fare free fixed route transit system. The City of Bozeman’s contributions support a valuable community resource and is greatly appreciated by the entire staff of Streamline, its partners and those riding the bus. This past winter the City of Bozeman committed additional funding for bus service on Sundays and increased frequency on the Blueline. Although that funding supported those services from January – June 2018, due to the popularity and improvement to the bus routes we feel it’s imperative to continue beyond June 30th. On the first Sunday the bus ran, it was full multiple times throughout the day. Also, the return of the Blue 1⁄2 Hour Frequency run in the morning has been well utilized and has relieved pressure on the regular Blue AM route. This was made possible strictly through the investment from the City of Bozeman. Your support of Streamline is critical to keep operating at the current service levels. We ask that the funding is equivalent to the current year (1 Mill + $64,000). With this continued funding as well as an increase from the Montana Department of Transportation, these route expansions will be able to continue throughout the upcoming fiscal year. Additionally, we feel hopeful Streamline’s request to Gallatin County will generate matching funds to be able to continue expanding to meet the needs of Bozeman. As we look to the future and Bozeman continues to grow, Streamline will help create sustainability by providing alternatives to the single occupancy vehicle. Our partnership with the City will foster opportunities for expansion, generating adaptability to serve the community needs. Please do not hesitate to let me know if you have any questions or concerns that I could address. Thank you again for considering our Streamline request. Sincerely, Heather Grenier President/CEO Streamline is a program of HRDC. p: 406.587.2434 e: info@streamlinebus.com a: 1812 North Rouse Bozeman, Montana 59715 356