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HomeMy WebLinkAbout05-13-19 City Commission Packet Materials - A3. Introduction of the FY20 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 FY2019-2020 (FY20) City Manager’s Recommended Budget MEETING DATE: May 13, 2019 AGENDA ITEM TYPE: Presentation/Discussion RECOMMENDATION: Listen to presentation, ask questions, and provide comments. BACKGROUND: This presentation will outline the FY2019-2020 (FY20) 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 24, 2019. Following are the tentatively schedule dates of budget discussions, along with their topics: May 13: City Manager’s Recommended Budget, overall June 3: Tax Increment District and Business Improvement District Work-plans and Budgets, Special Revenue Funds June 10: General Fund June 17: Enterprise Funds and Internal Service Funds June 24: 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. 197 The entire “FY2019-2020 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, 2019 Attached Documents: City Manager’s Recommended Budget for Fiscal Year 2019-2020 Levy/Assessment FY19 Approved FY20 Recommended Recommended increase % Change Street Assessment 207.92 224.55 16.63 8% Arterial Street Assessment 51.78 51.78 - 0% Tree (Forestry ) Assessment 23.61 24.05 0.44 2% Property Taxes 724.66 812.69 88.03 12% Storm Water Services 70.92 73.76 2.84 4% Water Service 542.05 555.81 13.76 3% Sewer Services 630.99 630.99 0.00 0% 121.70 10.14 Total Annual Estimated Increase Monthly Increase Average Citizen - 7,500 Sqft lot, TV $292,000, 10-HCF water use 198 City Manager Recommended Budget FISCAL YEAR 2020 FOR FISCAL YEAR 2020 JULY 1, 2019 TO JUNE 30, 2020 CITY OF BOZEMAN, MONTANA 199     TABLE OF CONTENTS   EXECUTIVE SUMMARY     CITY MANAGER’S BUDGET MESSAGE  1        BUDGET SUMMARY       9  BACKGROUND    11   CITY STRUCTURE      12    CORE VALUES        12    CITY VISION AND STARTEGIC GOALS  12    ECONOMIC OUTLOOK      14  BUDGET PROCESS      15    FUNDING STRUCTURE      15    BUDGET POLICIES      17  FINANCIAL AND RESERVE POLICIES  18    AWARDS AND ACCOMPLISHMENTS  19    FY2020 BUDGET SUMMARY    19       FUND SUMMARIES      29  SUMMARY OF ALL FUND        REVENUES BY TYPE      31                     SUMMARY OF ALL FUND   EXPENDITURES BY TYPE   33  GENERAL FUND       35  SPECIAL REVENUE FUNDS    39  DEBT SERVICE FUNDS      54  CONSTRUCTION FUNDS     56  ENTERPRISE FUNDS      57  INTERNAL SERVICE FUNDS    64  PERMENANENT FUNDS     65      ACTIVITY/DEPARTMENT DETAIL  67  GENRAL GOVERNMENT     71  CITY COMMISSION    73  CITY MANAGER     75  CITY CLERK      77    NEIGHBORHOODS    79    CITY ATTORNEY     81  FINANCE      83  FACILITIES MANAGEMENT  85    INFORMATION TECHNOLOGY  87    HUMAN RESOURCES    89    COMMUNITY DEVELOPMENT     91  MUNICIPAL COURT    93  PUBLIC SAFETY        95  POLICE    97   FIRE       99  BUILDING INSPECTION      101  PARKING    105       PUBLIC WORKS     105  PUBLIC WORKS ADMINISTRATION           107   ENGINEERING        109  GIS/ASSET MANAGEMENT    111  SOLID WASTE & RECYCLING                       113  STORMWATER        115  STREETS        117            VEHICLE MAINTENANCE     119  WASTEWATER‐ OPERATION    121                        WASTEWATER‐ RECLAIMATION   123  FACILITY  WATER‐ OPERATIONS      125                        WATER‐ TREATMENT PLANT    127  WATER‐ CONSERVATION    129                                 PUBLIC WELFARE    131  RECREATION                                133  FORESTRY        135  PARKS     137  CEMETERY        139  LIBRARY                                             141   ECONOMIC DEVELOPMENT                143   SUSTAINABILITY      145  AFFORDABLE HOUSING     147  OTHER  NON‐DEPARTMENTAL                             149              CAPITAL EXPENDITURES SUMMARY               153  FY 2020‐CAPITAL IMPROVEMENT PLAN BUDGET 155      APPENDICES     163  STATISTICAL SECTION                     165  FISCAL POLICIES                                              169   LONG RANGE FINANCIAL PLANNING    177  GENERAL FUND MINIMUM FUND BALANCE  185   ANALYSIS  GLOSSARY OF KEY TERMS                                         191     201 Executive Summary 203 May 13, 2019 Bozeman City Commission: We are pleased to present to you the recommended Budget for Fiscal Year 2019-2020 (FY20). 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 Strategic Plan into budget priorities: Community Outreach, Affordable Housing, Planning & Land Use Initiatives, Annexation Analysis & Study, and Parks & Trails Maintenance District. The City is going forward with building the Bozeman Public Safety Center after its passage in FY19. The City’s total budget this year is estimated to be $200.8 million. This will support 448.93 full-time equivalent employees and $72.8 million in capital spending. The FY20 budget estimates an annual increase in taxes and assessments for the typical residential property owner of $121.70, or $10.14 per month. This includes a partial year payment of Bozeman Public Safety Center bonds and other increases based on recent rate studies, growth, inflation, and Strategic Plan objectives. Strategic Plan On April 16, 2018, the City adopted its current Strategic Plan. The FY19 budget began the first steps in accomplishing this plan. The Strategic Plan significantly informs the items recommended in the FY20 budget. We have made substantial changes to this document and have details regarding strategic plan efforts by division in the Activity Detail section of this document. The full plan can be found at https://www.bozeman.net/city- projects/bozeman-strategic-plan. Community Outreach – Many divisions have plans for community outreach and communication, working towards transparency and access for city residents. We are developing the City’s updated communication plan. Throughout the organization communication has become part of work plans and budgets. For example, Information Technology budgeting for a push notification platform and Public Works departments communicating service levels. Affordable Housing – The Affordable Housing Action Plan is being funded in FY20 and will be used to identify performance metrics for affordable housing and possible funding sources. This budget recommends projects that have brought forward and recommended by the Community Affordable Housing Advisory Board, such as the Tschache Lane project and Timber Ridge Senior Living project. 1 205 Planning & Land Use Initiatives- The Downtown Plan, the NCOD, and the Community Growth Plan update will promote continued investment in the city’s inventory of historic structures relative to ongoing infill and redevelopment. Engineering will also continue its planning and execution efforts for a well-planned City. Annexation Analysis & Study – Currently the staff is working with the Commission to evaluate and update policies. Based on the revised annexation policies, staff will begin planning possible areas of annexation and the extension of services plans for areas that are wholly surrounded. This will have a positive impact on the budget with funding, while adding service area and the number of special improvement districts for funding the infrastructure to bring City services online. Parks Maintenance District – The FY20 proposed budget includes education efforts for a November vote for a Parks and Trails Maintenance District. We have budgeted for education efforts for this summer and fall. Strategic Vision 7- We will continue work towards a high performing organization and being a “best in class” employer. With this budget proposal, we will continue to work towards market rate pay and invest in training for employees. We are developing and tracking performance measures, as you will see in the Activity Detail section, of this document, for each division. Some measures are new and will be tracked going forward while others we have historical data to show our performance. Continued Growth Our community continues to see growth in all areas. We see strong building permit activity, and increased traffic counts and congestion on City streets. According to the 2017 Census estimates, the City of Bozeman population has increased by 25% since the 2010 Census, whereas Gallatin County outside of Bozeman has increased by 18.5%. The City of Bozeman has enough water and sewer mains to stretch from Bozeman to Denver and has 110 miles of stormwater mains. The City also has 925 acres of parkland, two swim facilities, and four recreation facilities. Much of our budget recommendation is made in response to the prolonged growth that Bozeman continues to experience. Level of service - There were 266 new single family homes and 593 multi-family residential units built in Bozeman in 2018. In order to maintain service levels and perform the work necessary to accomplish our Strategic Plan action items, we must expand our staff in key areas, such as public safety and public works, for a total of 15.85 additional full time equivalents (FTE). 292 285 373 403 266 338 497 356 420 593 0 200 400 600 800 1,000 2014 2015 2016 2017 2018 New Residential Units Single Family Multi-Family 2 206 Transportation- The City is responsible for maintaining 215.1 miles of streets, and the street mileage the City is responsible for maintaining has increased by 22% since 2010. $18.5 million is planned for transportation expenditures, with $9.9 million in capacity expanding projects. Clean water supply and conservation- The City of Bozeman has 288 miles of water mains under our roadways. The water distribution system (water mains) has increased by 22% since 2010. The average growth of the number of water accounts has grown an average of 4.1% a year for the last five years and we expect the trend to continue. With the proposed tiered rates for water use we should encourage water conservation along with our expansion efforts of $6.9 million and operational maintenance efforts of $10.1 million. Challenges This year it was a very difficult task to balance the needs and desires of the community with the resources that we have available. The General Fund continues to see demands for funding that are growing faster than our projected revenues. We simply could not fund all Department and outside requests, and had to make difficult choices about what to include in the budget and what to trim, delay, or forego in the plan. 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. With the proposed tax increase, overall revenue is estimated to increase by 3.5%. With less expected carry-over funding and no large one-time funding, as we saw in FY19, expenditures had to be held to a total increase of less than 1% in order to balance the budget and maintain reserve levels. We were hopeful that this year’s Legislative Session would give us additional tools and resources for funding, especially in the General Fund. However, the session ended without the passage of a local option tax and without any increases in the inflation-factor for property taxes (currently set at one-half of the three-year average rate of inflation). During the last days of the session, Senate Bill 160 passed. The bill immediately added $105,000 in Workers Compensation costs for firefighters in the General Fund, without any funding from the State of Montana or increase in our property tax cap. 170 180 190 200 210 220 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 City Maintained Road Mileage 235 255 275 295 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Mileage of Water Mains 3 207 FY20 Recommended Budget The City of Bozeman’s Fiscal Year 2020 budget shows large increases in total revenues and expenditures. One main source of this is the bond issuance and the construction of the Bozeman Public Safety Center. The bond issuance and other debt financing for large capacity projects has other financing revenue up $71 million and capital spending up $38.5 million from FY19. Major factors affecting the rest of the revenue sources are the increase in charges for services, the estimated 4% growth in taxable value, and the additional levy of property tax mills. The Fiscal Year 2020 budget has over $78.5 million in personnel and operation expenditures, which is a 6.2% increase over FY19 ($4.6 million). Revenues Property Taxes- With the growth of the City, expected service levels, and the strategic plan initiatives, it is necessary to increase the property tax mill levy. This is essential to address the needs of the expanding City while funding ongoing operations with sustainable revenues. This year, with the expected first partial bond payment for the Bozeman Public Safety Center, the levy in total is recommended at 207.15 mills on all taxable property within city limits. To calculate property tax revenues, a 4% growth rate is assumed from new construction, leaving the estimated value of a mill at $108,490. This is a re-appraisal year, which makes it difficult to estimate the change in the levy and to estimate the median home. The total annual property tax for the median home is estimated to be $812.69, an $88.03 increase from the prior year. Special Assessments- City property owners pay annual street maintenance, arterial street, and tree maintenance assessments based on the square footage of the lot they own. The growth of the street network and other rising costs, the Street Maintenance FY20 budget is larger; therefore, we are recommending an 8% increase. With the gas tax funding and our capital improvement plans, we are recommending no change to the Arterial & Collector fund. For Tree Maintenance we recommend an inflationary increase of 2%. Utility Rates- The City completed a water and sewer system rate study, which adjusted both water and sewer rates for all user classes (with the exception of residential) based on costs of services. The study also recommended updating water rates for the residential customer by adjusting the tier structure and adding a fourth tier. This structure will aid in conservation efforts and help the City with any future drought. For Stormwater we are recommending a 4% increase in the Stormwater Utility to keep up with growth and construction costs. This is the first increase since 2015. 188.76 210.16 205.30 187.33 191.24 207.15 175.00 180.00 185.00 190.00 195.00 200.00 205.00 210.00 215.00 FY15 FY16 FY17 FY18 FY19 FY20 Tax Levy FY18 Approved Changes Streets 17%, Trees 15% Arterial Street 63% FY19 Approved Changes Streets 5%, Trees 5% Arterial Street (-28%) FY20 Recommended Changes Streets 8%, Trees 2% Arterial Street 0% 4 208 Expenditures Staffing- Budgets for personnel expenditures include both increases in wages and benefit costs and the addition of some positions to our work teams. With the highly competitive job market in Bozeman and surrounding areas, we will need to make pay adjustments that attempt to keep up with the wage inflation of our competitors. Three firefighter positions are being added under a multi-year contract agreement that provides no wage increase for firefighters this year, but reduces work hours (from 51 hrs./week to 48 hrs./week) for a 3.8% increase in net hourly pay. This was done in response to a market-based compensation analysis. 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 year, we have focused on public safety and maintaining levels of service to our citizens. We are recommending the addition of 15.85 FTE. Operating- Many factors have caused changes in operational budgets, which vary by fund. Growth, inflation, capital projects, and Strategic Plan priorities have influenced increases in operating costs. For FY20, operational costs total $40.5 million, which is a 5.1% increase from FY19. 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 with vendors. Capital- FY20 has over $72.8 million in capital expenditures, which is a 112% increase over FY19. A large portion of this is the Bozeman Public Safety Center’s $40 million construction. The outlook for FY20 includes another sewer capacity-expanding project. The Norton East Ranch Outfall Diversion WWIF38 is $5,200,000 and will need financing at this point in the plan. There are major roads funded through the Street Impact Fee Fund and Arterial Collector District, and a good portion is for building the roads surrounding the new high school. Road maintenance, vehicle replacements, and building improvements are in the plan as well. Reserves The FY20 budget has a reduction in total fund balances mainly due to planned infrastructure spending. The General Fund reserve will maintain its required minimum of 16.67% of annual revenues. We are recommending that the Commission move towards the Government Finance Officer Association’s updated best practice with a risk-based approach to funding beyond the 16.67% of revenues method. We have performed an initial analysis based on the updated best practice (Appendix D) and recommend the City work towards a reserve 17% of expenditures. We suggest that we accomplish this increase in reserves over the next year or two by: (1) not spending down additional cash carry-over in the General Fund, and (2) not allocating property tax dollars that exceed our estimates. 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. Recent water and wastewater rate studies have outlined needed reserves, which included establishing a drought reserve for the water fund. FY19 Proposed Changes FY20 FY20 Proposed General Government 76.05 2.10 78.15 Public Safety 147.30 4.00 151.30 Public Services 124.75 8.75 133.50 Public Welfare 84.98 1.00 85.98 Total 433.08 15.85 448.93 Net FTE % Increase From Pervious Year 3.66% 5 209 FY20 Citizen Impact A typical residential property owner will see taxes and assessment increases of $121.70 for the year, or $10.14 per month. The typical resident is calculated using an average sized lot (7,500s qft), median home of $292,000 (this was the median home taxable value at last appraisal cycle and could change) and water use of 10-HCF (would be charged tier 2 rate per recent rate study): Looking Forward In developing this year’s spending plan, we realize that there are a number of projects on the near horizon that will impact our budget in the coming years. We have been doing the work to plan for them at the financial and operational level, and they represent exciting opportunities and significant challenges for our community and organization. Parks and Trails District- The creation of a Parks and Trails Maintenance District allows us to use an assessment for funding of Parks operations and maintenance. This tool would free up the portion of the General Fund currently used for Parks, personnel, operation, and capital. When voters pass the Parks and Trails Maintenance District in November 2019, the funding would begin in next year’s budget (FY21). The Commission will need to examine this and its current capital plan when deciding the FY21 impacts. Bozeman Public Safety Center full bond payments levy and operational mills – Fiscal Year 2021 will see a full bond payment on the property tax rolls, which will increase the mill levy for property owners. In addition, inFY22 the City will begin funding operational costs for the building, including added staff. Added costs are expected to be approximately $523,000. A small portion of this amount that supports records staff could be generated through a reduction of the 9 mills held back for funding 911 and Records Services (Resolution No. 3954.) The rest of the funding would come from a General Fund mill levy increase, bringing us very close to our mill levy cap. Staffing plan- We have been working on a city-wide multi-year staffing plan that projects staffing levels for all of our departments. Through this process, we have identified many positions needed (especially in the General Fund) if we intend to maintain and improve our services in this growing community. A number of those positions have been included in this proposed budget. However, the majority of requested positions could not be funded Levy/Assessment FY19 Approved FY20 Recommended Recommended increase % Change Street Assessment 207.92 224.55 16.63 8% Arterial Street Assessment 51.78 51.78 - 0% Tree (Forestry ) Assessment 23.61 24.05 0.44 2% Property Taxes 724.66 812.69 88.03 12% Storm Water Services 70.92 73.76 2.84 4% Water Service 542.05 555.81 13.76 3% Sewer Services 630.99 630.99 0.00 0% 121.70 10.14 Total Annual Estimated Increase Monthly Increase Average Citizen - 7,500 Sqft lot, TV $292,000, 10-HCF water use 6 210 with our existing resources (33 requested in FY20, 15.85 included in FY20 budget.) Going forward, we will need to discuss broader strategies to add staffing to the organization. Conclusion In closing, we are thankful to the Commission, community members, and staff who participated in the many processes that resulted in this budget. Staff spent many hours discussing the Strategic Plan, which helped guide our priorities for FY20, Working together, we have consistently found innovative ways to deliver services and invest in our community in fiscally responsible ways. We believe that the FY20 Recommended Budget will allow us to continue to operate and advance the City of Bozeman. We are a resilient, enterprising, and creative community. The FY20 Recommended 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 7 211         Budget Summary   213 Budget Summary Municipal budgets serve a number of important functions. In addition to laying out a spending plan for the city, and 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 46,000. The population is expected to reach 50,000 in 2019. The average age is 27.9 and 55.6% of the population has Bachelor’s Degree or Higher. 35,944 36,933 37,280 37,314 38,116 38,753 38,860 41,660 43,405 45,250 46,596 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Estimated Population 11 215 City Structure The Bozeman City Commission is composed of four members and a mayor are elected by the voters of the city at large in accordance with the City Charter. 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 plan was adopted in spring 2018. Below are the vision and vision statements adopted by the Commission as part of the Strategic 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. 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. 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 12 216 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. FY2020 Goals The Commission reviewed the seven priorities from FY19 and removed the Bozeman Public Safety Center, which was supported by City voters and the debt issuance and construction in included in FY20 budget. They also removed Partnership for Education and Learning since in FY19 great strides were made with Montana State University and the Bozeman School District that are continuing in FY20. The remaining five, set the priories for FY20 and the budget. In addition to these top five priorities, and the action items in the Strategic Plan to accomplish them, five projects are also to be included in FY20 efforts: • 1% for Art program establishment • Intersection Level of Service Communication • Sewer Capacity Communication • Street Light Study • Vender Gender Pay project FY2020 Economic Outlook The population of City has been growing over the last ten years. There were 1,282 residential building permits in 2018 and 52 new commercial building permits. This growth has increased the need for City services and infrastructure. Montana State University has seen a steady growth of enrollment over the last three years as well. Tourism is growing with the Bozeman Yellowstone Airport seeing in passengers of 11.8% in 2018 and expecting the same growth for 2019. 13 217 The Consumer Price index has grown over the last 10 years for the united State and particularly for the Western States. For FY18 the three average change was 2.03% while the Western State CPI-U is showing 2.95% three average change. Currently, the unemployment rate is 2.6% and per capita income is $28,784. The median home price for 2018 was $374,750. The top three major employers are Bozeman Deaconess Hospital, Oracle America and Bozeman School District #7. Recent job growth is at 4.6% and the Bozeman area has the strongest economy for a city with fewer than 50,000 people in the U.S., according to POLICOM’s recent report. See Appendix A for more statistical details about the City’s demographics and tax base. 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% $22,000 $23,000 $24,000 $25,000 $26,000 $27,000 $28,000 $29,000 $30,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 Income Per Capita and Poplation Percent Change Per capita Income % Change in Population 210.2 216 219.2 225.7 229.6 233.0 234.8 236.5 241.4 246.5 251.1 219.6 218.8 221.2 227.5 232.4 236.1 239.1 243.0 247.7 257.3 265.2 200 210 220 230 240 250 260 270 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 CPI-U United States CPI Western States CPI 14 218 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 area of concern or study. Along with these documents, the capital improvement plan is used to budget for capital projects. 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 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 for the up-coming years. 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. The Commission adopts final budget. Agust -September Commission adopts Mill Levy based on certified values and set assessments based on the budget 15 219 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. Funds: The activities are funded through various means that are accounted for within 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 heavily 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 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). Bozeman Fund Structure Overview Governmental Funds General Fund Special Revenue Funds Debt Service Capital Project Proprietary Funds Enterprise Funds Fiduciary Funds 16 220 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. 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 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”, and the City can 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 17 221 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 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 created on the fund basis and reviews all capital needs greater than $10,000. The plan can be found on the city website. 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. 18 222 Expenditure Policies Expenses should always be for City operations and strategic goals. Department heads and the Finance Department monitor expenditures. All expenditures 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, 2018. 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 2020 Budget Summary The City of Bozeman’s Fiscal year 2020 budget shows a large increase in revenues and expenditures and one main source of this is the bond issuance and the construction of the Bozeman Public Safety Center. The bond issuance and other debt financing for large capacity projects has other financing revenue up $71 million and capital spending up $38.5 million from FY19. The major factors affecting the rest of the revenue sources are the increase in charges for services, the estimated 4% growth in taxable value, and the additional levy of property tax mills. Fiscal Year 20 budget has over $78.5 million in personnel and operation expenditures, which is a 6.2% increase over FY19 ($4.6 million). 19 223 FY2020 Financial Summary General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds Projected Beginning Fund Balance/Working Capital 6,767,606$ 18,770,958$ 4,923,477$ 5,128,109$ 28,643,630$ 411,454$ 1,399,941$ 66,045,175$ Estimated Revenues 33,046,699 27,614,269 40,751,603 38,044,733 37,443,903 9,485,524 90,000 186,476,731 Less Appropriations 34,304,877 34,087,441 41,045,772 41,467,362 40,549,199 9,377,654 - 200,832,305 Increase/(Decrease) in Fund Balance/Working Capital (1,258,178) (6,473,172) (294,169) (3,422,629) (3,105,296) 107,870 90,000 (14,355,574) Projected Ending Fund Balance/Working Capital 5,509,428$ 12,297,786$ 4,629,308$ 1,705,480$ 25,538,334$ 519,324$ 1,489,941$ 51,689,601$ Financial Summary Final Budget Fiscal Year 2019-2020 General Fund18%Special Revenue 15% Debt Service22% Construction Projects 20% Enterprise 20% Internal Service 5%Permanent0% Revenue by Fund Type General Fund17%Special Revenue 17% Debt Service 20% Construction Projects 21% Enterprise 20% Internal Service 5%Permanent 0% Expenditures by Fund Type 20 224 FY2020 Estimated Mill Levies and Values FISCAL YEAR FY15 FY16 FY17 FY18 FY19 FY20 MILL VALUE (net of TIFD's)87,894$ 86,564$ 89,325$ 101,195$ 104,321$ 108,490$ PERCENTAGE CHANGE 2.6% -1.5% 3.2% 13.3% 3.1% 4.0% GENERAL FUND: All-Purpose 144.77 155.78 148.21 134.39 139.69 142.19 SPECIAL REVENUE: City Planning 2.00 2.00 2.00 2.00 2.00 2.00 Health/Med Insurance 23.18 27.11 26.40 24.48 25.44 25.95 Fire Capital & Equipment 4.00 4.00 4.00 4.00 4.00 4.00 Transfer to Stormwater - Landfill Project 1.57 1.62 1.56 1.38 0.71 0.69 Transfer to Landfill Closure - Monitring - - 4.00 3.67 2.38 2.58 Senior Transportation 1.00 1.00 1.00 1.00 1.00 1.00 Workforce Housing 1.00 3.00 3.00 3.00 3.00 3.00 TOTAL SPECIAL REVENUE 32.75 38.72 41.96 39.53 38.53 39.22 DEBT SERVICE: BPSC GO Bonds - - - - - 13.29 Park & Trail G.O.Bonds 8.13 12.49 12.06 10.68 10.38 9.93 Library G.O. Bonds 3.11 3.16 3.07 2.73 2.64 2.52 TOTAL DEBT SERVICE 11.24 15.65 15.13 13.41 13.02 25.73 Total Levied 188.76 210.16 205.30 187.33 191.24 207.15 Percentage Change in Mills 9.4% 12.4% -2.6% -8.6% 1.9% 8.5% Property Taxes Levied 16,590,871$ 18,191,892$ 18,338,501$ 18,956,859$ 19,950,675$ 22,473,281$ Percentage Change in Dollars 11.9% 9.7% 0.8% 3.4% 5.2% 12.6% * These funds are being combined into the All Purpose Levy. They are all subject to MCA 15-10-420. General Fund Reduction 1,271,667$ 363,096$ 703,800$ 907,719$ 718,772$ 298,110$ 911 Mills (Resolution No. 3954)770,733$ 779,076$ 803,925$ 910,755$ 938,889$ 976,410$ Total Authorized But Not Levied 2,042,400$ 1,142,172$ 1,507,725$ 1,818,474$ 1,657,661$ 1,274,520$ Number of Mills Not Levied 23.85 13.19 16.88 17.97 15.89 11.75 Maximum Levy Allowed 212.61 223.35 222.18 205.30 207.13 218.90 MILL LEVIES & MILL VALUES Tax Authority Authorized but Not Levied 188.76 210.16 205.30 187.33 191.24 207.15 23.85 13.19 16.88 17.97 15.89 11.75 FY15 FY16 FY17 FY18 FY19 FY20 Total Levied Number of Mills Not Levied 21 225 FY2020 Revenues Overall, revenues are estimated at $186 million, a $78 million increase in revenue or 73%, over the prior year. The large difference is mainly due to the bond issuance for the Bozeman Public Safety Center, along with water and sewer capacity projects being funded through financing as well, therefore 46% of revenues is other financing sources. Charges for services make up 29% of revenues, followed by taxes at 15%. For the General Fund, taxes make up 49% of the revenue sources followed by intergovernmental revenue. Property Taxes 15% Special Assessments 1% Licenses & Permits 2%Inter- governmental 5% Charges for Services29% Fines and Forfeitures 1% Interest Income 0% Other Revenues 1% Other Financing Sources 46% All Funds Revenue by Type Property Taxes49% Gallatin County Option 5% Grants0% County Shared -Library 2% State Shared 22% General Government Charges 10% Fines and Fees 3% Miscellaneous Revenue1% Transfers 8% General Fund Revenue by Type 22 226 FY2020 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 FY20 budget expenditures for all funds. Again, with the Bozeman Public Safety Center and other capital projects Capital makes of 36% followed by Operations at 20% and Personnel at 19%. In general, governmental agencies see their largest percentage of expenditures as personnel. With our growing City, there is a need for more infrastructure spending. The General Fund personnel expenses are a much higher percentage, at 66%. There are fewer capital items in the General Fund than all the funds as a whole. Personnel & Benefits19% Operations20% Capital 36% Debt Service3% Transfers22% Other Financing Uses 0% All Funds Expednitures by Type Personnel & Benefits66% Operations30% Capital 3%Debt Service0%Transfers1% General Fund Revenue By Type 23 227 FY2020 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 6,767,606 33,046,699 34,304,877 5,509,428 Special Revenue Funds 100 Planning Fund 1,148,732 1,450,574 1,873,348 725,958 103 Health-Medical Insurance 411,839 2,815,374 2,815,384 411,829 108 Community Transportation 59,625 900 - 60,525 109 Highway Safety Improvement Projects 23,462 200 - 23,662 110 Gas Tax Apportionment 1,578,972 1,421,750 2,120,350 880,372 111 Street Maintenance District 334,133 6,203,836 6,462,343 75,626 112 Tree Maintenance 271,260 782,945 787,767 266,438 113 Fire Impact Fee 2,497,496 416,134 20,451 2,893,179 114 Street Impact Fee 3,124,141 4,490,095 7,565,195 49,041 115 Building Inspection Special Revenue 922,552 1,975,200 2,657,236 240,516 116 Dowtown Improvement District 1,674,674 1,875,000 1,636,429 1,913,245 119 Economic Development Loan Fund 829,753 50,000 31,000 848,753 120 Community Housing 732,092 339,970 694,458 377,604 121 Housing Revolving Loan Fund 2,485 1,195 - 3,680 123 Big Sky Ec Dev Grant - 50,000 50,000 - 125 Drug Forfeiture 42,589 199,474 242,052 11 128 Fish Wildlife And Park Management Areas 12,766 200 8,000 4,966 130 Americans With Disability Act 36,307 400 - 36,707 131 Beautification of Bozeman 1,018 10 - 1,028 132 Bogert Park Special Revenue 17,967 6,275 5,000 19,242 133 Recreation Department Special Revenue 16,252 2,075 - 18,327 135 Cemetery Department Special Revenue 2,444 30 - 2,474 136 Park Department Special Revenue 13,217 2,600 - 15,817 137 Library Department Special Revenue 44,253 20,000 - 64,253 138 Law & Justice Center 274,125 - 19,125 255,000 139 Police Department Special Revenue 280,534 15,000 40,000 255,534 140 Police Domestic Violence - 187,040 187,040 - 141 Street Arterial Construction 627,223 2,627,747 2,396,000 858,970 143 TIF Midtown (formerly N7th)694,008 661,449 1,518,279 (162,822) 144 TIF NE Urban Renewal 119,517 141,000 446,479 (185,962) 145 TIF Mandeville Industrial 75,744 25,000 - 100,744 Various Lighting Dist.'s (146-170, 181, 182, 200-243)491,152 457,286 477,499 470,939 174 Victim Witness Advocate 299,646 68,500 90,000 278,146 175 Senior Transportation 2,707 108,740 108,490 2,957 176 Business Improvement District 8,297 162,700 162,178 8,819 177 Neighborhood Associations 994 10 - 1,004 178 Veteran's Treatment Court 37,844 115,500 152,346 998 179 Diaster Relief Fund 140,777 11,000 - 151,777 CHANGES IN FUND BALANCE/WORKING CAPITAL 24 228 Fiscal Year Projected Fund Balance/Working Capital Estimated Revnues Appropriations Budgeted Ending Fund Balance/Working Capital Special Revenue Funds 183 Fire Department Special Revenue 79,046 4,000 50,000 33,046 184 Parks Master Plan Develop 23,708 - - 23,708 186 Development Impacts 154,169 1,500 5,000 150,669 187 Fire Department Equipment 656,899 436,460 1,068,000 25,359 188 City/County Drug Forfeiture 132,985 1,300 - 134,285 189 Story Mansion Special Revenue 5,797 35,000 40,792 5 191 Tourism BID 1,200 301,200 301,200 1,200 193 Street Maintenance - Babcock SID 8,383 2,650 - 11,033 194 Street Maintenance - Durston SID 136,688 41,450 - 178,138 199 Sports Park - 51,000 51,000 - 850 Park Land - Cash in Lieu 721,486 54,500 5,000 770,986 Total Special Revenue Funds 18,770,958 27,614,269 34,087,441 12,297,786 Debt Service Funds 300 Special Improvement District Revolv. Fund 3,229,669 18,700 867,070 2,381,299 303 G.O. Refunding Series 2012 86,848 273,300 273,300 86,848 304 Park & Trails Bond - 1,076,788 1,076,788 - 305 TIF 2007 Downtown Bonds - 418,898 418,898 - 307 Bozeman Public Safety Center - GO Bonds - 38,406,716 38,376,716 30,000 310-448 SID Funds 1,606,960 525,201 1,000 2,131,161 450 Sports Park Loan - 32,000 32,000 - Total Debt Service Funds 4,923,477 40,751,603 41,045,772 4,629,308 Construction Funds 500's Capital Projects 5,128,109 38,044,733 41,467,362 1,705,480 Enterprise Funds 600 Water 9,323,836 11,946,576 10,171,734 11,098,678 610 Water Impact Fee - Net Assets 6,157,774 1,930,831 6,963,052 1,125,553 620 Waste Water 3,216,959 10,036,394 7,885,612 5,367,741 630 Waste Water Impact Fee - Net Assets 6,233,498 6,540,674 7,343,417 5,430,755 640 Solid Waste 1,755,498 4,165,681 5,154,777 766,402 641 Landfill Post-Closure & Monitoring 6,209 282,000 287,417 792 650 Parking Enterprise 1,289,609 1,063,340 1,082,669 1,270,280 670 Storm Water 660,247 1,478,407 1,660,521 478,133 Total Enterprise Funds 28,643,630 37,443,903 40,549,199 25,538,334 Internal Service Funds 710 Vehicle Maintenance Shop 6,164 1,390,212 1,387,800 8,576 720 Health-Medical Self-Insurance Fund 405,290 5,044,794 5,044,794 405,290 750 Public Works Administration - 3,050,518 2,945,060 105,458 Total Internal Service Funds 411,454 9,485,524 9,377,654 519,324 Permanent Funds 800 Cemetery Perpetual Care 1,399,941 90,000 - 1,489,941 Total All Funds 66,045,175 186,476,731 200,832,305 51,689,601 CHANGES IN FUND BALANCE/WORKING CAPITAL 25 229 FY2020 Staffing Changes We strive to maintain service levels with our growing community. We have a strategic approach to staffing this year and have developed a three-year staffing plan to address our staffing needs on a citywide level. Going forward, we hope this staffing plan process will become more refined and predictable for the organization and community. FY18 FY19 Proposed Changes FY20 FY20 Total General Government City Commission 2.10 2.10 - 2.10 City Manager 9.00 9.00 - 9.00 Municipal Court 9.50 9.50 0.10 9.60 City Attorney 10.70 10.70 1.00 11.70 Finance 12.50 13.50 - 13.50 Community Development 13.00 14.25 1.00 15.25 Facilities Management 4.50 5.00 - 5.00 Information Technology 6.00 7.00 - 7.00 Human Resources 4.00 5.00 - 5.00 71.30 76.05 2.10 78.15 Public Safety Police 72.70 74.55 1.00 75.55 Fire 46.00 47.00 3.00 50.00 Building Inspection 19.50 19.75 - 19.75 Parking 6.00 6.00 - 6.00 144.20 147.30 4.00 151.30 Public Services Public Works Administration 11.50 16.25 2.00 18.25 Streets 21.85 21.35 0.95 22.30 Stormwater 7.50 7.50 1.00 8.50 Water 25.95 26.45 1.20 27.65 Wastewater 28.80 28.55 1.00 29.55 Solid Waste Collection/Recycling 17.15 17.15 1.60 18.75 Vehicle Maintenance 7.50 7.50 1.00 8.50 120.25 124.75 8.75 133.50 Public Welfare Parks and Recreation 51.46 53.46 - 53.46 Library 28.02 28.02 - 28.02 Ecomic Development 2.00 2.00 1.00 3.00 Sustainability 1.50 1.50 - 1.50 82.98 84.98 1.00 85.98 Total Employees 418.73 433.08 15.85 448.93 Net FTE % Increase From Pervious Year 3.43%3.66% FTE Summary By Department 26 230 Organizational Chart 27 231 Fund Summaries 29 233 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 30 234 Summary of all Fund Revenues by Type City of Bozeman Revenues: All Funds Property Taxes Special Assessments Licenses & Permits Inter-governmental Charges for Services Fines and Forfeitures Interest Income Other Revenues Other Financing Sources TOTAL 010 - General Fund 17,703,193$ 414,975$ 7,955,511$ 2,916,037$ 1,122,000$ 75,000$ 110,500$ 2,749,483$ 33,046,699$ 100 - Community Development/Planning 216,980 111,851 788,800 6,500 53,400 273,043 1,450,574 103 - Health-Medical Insurance 2,815,374 2,815,374 108 - Community Transportation 900 900 109 - Highway Safety Improvement Projects 200 200 110 - Gas Tax 1,416,750 5,000 1,421,750 111 - Street Maintenance 18,000 6,139,336 10,000 36,500 6,203,836 112 - Tree Maintenance 774,945 3,000 5,000 782,945 113 - Fire Impact Fee 404,134 12,000 416,134 114 - Street Impact Fee 4,429,095 60,000 1,000 4,490,095 115 - Building Inspection Fund 1,958,700 1,500 15,000 1,975,200 116 - TIFD Downtown Improvement 1,820,000 45,000 10,000 1,875,000 119 - Economic Development Loan 50,000 50,000 120 - Community Housing Fund 325,470 5,000 9,500 339,970 121 - Housing Revolving Loan 20 1,175 1,195 123 - Big Sky Econ. Development Grant 50,000 50,000 125 - Drug Forfeiture Fund 115,000 60,000 700 23,774 199,474 128 - Fish Wildlife & Park Mgmt 200 200 130 - Americans with Disability 400 400 131 - Beautification of Bozeman 10 10 132 - Bogert Park Special Revenue 175 6,100 6,275 133 - Recreation Special Revenue 75 2,000 2,075 135 - Cemetery Special Revenue 30 30 136 - Park Special Revenue 100 2,500 2,600 137 - Library Special Revenue - 20,000 20,000 139 - Police Special Revenue 2,500 12,500 15,000 140 -Police Domestic Violence 187,040 - 187,040 141 - Street Arterial Construction 1,372,840 7,000 525,057 722,850 2,627,747 143 - TIF N 7th Corridor 651,949 9,500 661,449 144 - TIF NE Urban Renewal District 139,500 1,500 141,000 145 - TIF Mandeville Farm Industrial 25,000 25,000 146 - 170;181;182; 200 -241 - Lighting Districts 450,254 5,890 1,142 457,286 174 - Victim/Witness Advocate 65,000 3,500 68,500 175 - Senior Transportation 108,490 250 108,740 31 235 City of Bozeman Revenues: All Funds Property Taxes Special Assessments Licenses & Permits Inter- governmental Charges for Services Fines and Forfeitures Interest Income Other Revenues Other Financing Sources TOTAL 176 - BID Downtown Improv Dist 200 19,500 143,000 162,700 177 - Neighborhood Association 10 10 178 - Veteran's Treatment Court 113,000 2,500 115,500 179 - Disaster Relief 11,000 11,000 183 - Fire Department Special Revenue 1,000 3,000 4,000 186 - Development Impacts 1,500 1,500 187 - Fire Dept Equipment 433,960 2,500 436,460 188 - City/County Joint Forfeiture - 1,300 1,300 189 - Story Mansion Special Revenue 35,000 35,000 191 - Bozeman Tourism BID 300,000 1,200 301,200 193 - Street Maintenance - Babcock SID 650 2,000 2,650 194 - Street Maintenance - Durston SID 500 40,950 41,450 199- Sports Park 51,000 51,000 850 - Cash in Lieu of Parkland 4,500 50,000 54,500 300 - SID Revolving Fund 15,000 3,700 18,700 303 - G.O. Refunding Series 2012 273,300 273,300 304 - Parks & Open Space Bond 1,076,788 1,076,788 305 - 2007 Downtown TIF Bonds 418,898 418,898 307 - BPSC GO Bonds 1,441,716 36,965,000 38,406,716 310-447- SID Funds 417,627 13,045 94,529 525,201 450 - Sports Park Loan 32,000 32,000 500-566 - Construction Funds 38,044,733 38,044,733 600 - Water Fund 1,500 10,455,076 160,000 130,000 1,200,000 11,946,576 610 - Water Impact Fee 1,925,831 5,000 1,930,831 620 - Waste Water Fund 35,000 9,921,394 80,000 - 10,036,394 630 - Waste Water Impact Fee 1,320,674 20,000 5,200,000 6,540,674 640 - Solid Waste Fund 4,132,473 7,275 25,933 4,165,681 641 - Landfill Closure Costs 2,000 280,000 282,000 650 - Parking Fund 456,000 50,000 300,000 5,000 252,340 1,063,340 670 - Storm Water Fund 1,397,907 5,500 75,000 1,478,407 710 - Vehicle Maintenance 1,389,462 250 500 1,390,212 720 - Health-Medical Insurance 5,044,794 5,044,794 750 - Public Works Administration 2,945,060 105,458 3,050,518 800 - Cemetery Perpetual Care 80,000 10,000 90,000 27,031,720$ 2,572,721$ 2,847,675$ 9,980,652$ 54,151,518$ 1,547,000$ 580,680$ 1,868,026$ 85,896,739$ 186,476,731$ % of Total 14%1%2%5%29%1%0%1%46%100% 32 236 Summary of all Fund Expenditures by Type City of Bozeman Expenditures: All Funds Personnel & Benefits Operations Capital Debt Service Transfers Other Financing Uses TOTAL 010 - General Fund 22,734,715$ 10,087,112$ 1,083,580$ 44,470$ 355,000$ 34,304,877$ 100 - Community Development/Planning 1,416,573 421,775 35,000 1,873,348 103 - Health-Medical Insurance 2,815,384 2,815,384 110 - Gas Tax 1,157,500 240,000 722,850 2,120,350 111 - Street Maintenance 1,756,594 2,175,136 1,510,080 310,800 709,733 6,462,343 112 - Tree Maintenance 455,103 242,664 90,000 787,767 113 -Fire Impact Fee 20,451 20,451 114 - Street Impact Fee - 7,376,000 189,195 7,565,195 115 - Building Inspection Fund 1,869,291 787,945 - 2,657,236 116 - TIFD Downtown Improvement 17,929 1,618,500 - 1,636,429 119 - Economic Development Loan 31,000 31,000 120 - Community Housing Fund 81,708 612,750 694,458 123 - Big Sky Ec Dev Fund 50,000 50,000 125 - Drug Forfeiture Fund 233,152 8,900 242,052 128 - Fish Wildlife & Park Mgmt 8,000 8,000 132 - Bogert Park Special Revenue 5,000 5,000 138 - Law & Justice Center 19,125 19,125 139 - Police Special Revenue Fund 40,000 40,000 140 -Police Domestic Violence 187,040 187,040 141 - Street Arterial Construction 15,000 2,381,000 2,396,000 143 - TIF N 7th Corridor 26,379 1,491,900 - 1,518,279 144 - TIF NE Urban Renewal District 26,379 420,100 - 446,479 145 - TIF Mandeville Farm Industrial - - 146 - 170;181;182; 200 -241 - Lighting Districts 458,359 19,140 477,499 174 - Victim/Witness Advocate 90,000 90,000 175 - Senior Transportation 108,490 108,490 176 - BID Downtown Improv Dist 162,178 162,178 178 - Veteran's Treatment Court 34,386 117,960 152,346 33 237 City of Bozeman Expenditures: All Funds Personnel & Benefits Operations Capital Debt Service Transfers Other Financing Uses TOTAL 183 - Fire Dept Special Revenue 50,000 50,000 186 - Development Impacts 5,000 5,000 187 - Fire Dept Equipment 468,000 600,000 1,068,000 189 - Story Mansion Special Revenue 40,792 40,792 191 - Bozeman Tourism BID 301,200 301,200 199 - Sports Park 51,000 51,000 850- Cash In Lieu of Parkland 5,000 5,000 300 - SID Revolving Fund 867,070 867,070 303 - G.O. Refunding Series 2012 273,300 273,300 304 - Bond S & I Parks & Open Space Bond 1,076,788 1,076,788 305 - 2007 Downtown TIF Bonds 418,898 418,898 307- BPSC GO Bonds 1,641,716 36,735,000 38,376,716 310-447- SID Funds 1,000 1,000 450 - Sports Park Loan 32,000 32,000 500-566 - Construction Funds 280,000 41,187,362 41,467,362 600 - Water Fund 2,173,734 4,603,370 2,226,500 1,168,130 10,171,734 610 - Water Impact Fee 6,295,729 667,323 6,963,052 620 - Waste Water Fund 2,128,979 4,129,133 1,627,500 - 7,885,612 630 - Waste Water Impact Fee 350,000 6,424,000 530,012 39,405 7,343,417 640 - Solid Waste Fund 1,465,420 2,799,357 890,000 5,154,777 641 - Landfill Closure Costs 226,000 61,417 287,417 650 - Parking Fund 426,764 425,905 230,000 1,082,669 670- Storm Water Fund 580,938 268,372 650,000 161,211 1,660,521 710 - Vehicle Maintenance 541,468 846,332 1,387,800 720 - Health-Medical Insurance 5,044,794 5,044,794 750 - Public Works Administration 2,089,248 780,812 75,000 2,945,060 38,058,760$ 40,523,501$ 72,851,168$ 5,658,325$ 43,740,551$ -$ 200,832,305$ % of Total 19%20%36%3%22%0%100% 34 238 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 expenditure change is 5%. Revenues The City's General Fund is financed heavily 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 budget, we have estimated 4% growth and have proposed levying three additional mills to bring annual revenues in line with annual operations. Below are the property tax trends: 22,902,157 26,965,254 33,046,699 22,881,261 27,428,654 34,304,877 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 General Fund for the last 10 years and CM Recommended FY20 Revenue Expenditures Fund balance Fiscal Year City Taxable Value Change in TV City Tax Levy Property Tax Dollars General Fund Portion 2015 87,894 2.64% 188.76 16,590,871 12,724,414 2016 86,564 -1.51% 210.16 18,191,892 13,484,940 2017 89,325 3.19% 209.91 18,338,501 13,238,858 2018 101,195 13.29% 187.33 18,956,859 13,599,596 2019 104,321 3.09% 191.24 19,950,675 14,563,212 ** 2020 108,490 4.00% 207.15 22,473,281 15,426,193 35 239 We are estimating the General Fund to generate $33 million in total revenue, with 49% is from property taxes, 22% from the State Entitlement share and 10% for charges for services. The following chart shows the breakdown of esimated revenues. Expenditures This year’s General Fund budget has $34.3 Million in expenditures. Personnel expenses are the highest portion at $22.7 million, followed by operations of $10.1 million. The capital expenditures are $1 million, which includes vehicle replacements, portion of the road by Rose Park and Police portable radio lease. The break down by percentage is below: The expenditures by division show Police with 26% followed by Fire with 16%, both have an increase in staff proposed for FY20 with one Police officer added and three Fire Fighters. Non-Departmental is the next largest portion, which Personnel & Benefits66% Operations30% Capital3% Debt Service0%Transfers 1% General Fund Revenue By Type Property Taxes49% Gallatin County Option 5% Penalty & Interest 0% Grants 0% County Shared - Library 2% State Shared 22% General Government Charges10% Fines and Fees 3% Miscellaneous Revenue 1% Transfers 8% General Fund Revenue by Type 36 240 accounts for the general liability and property insurance and the non-cash transfer for State share of Police and Fire retirement. See budget details in the Activity/Division Detail section. Fund Balance 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. The FY20 approved budget, we have estimated to have will have 16.67% at the end of the fiscal year. We are recommending the fund balance policy work towards a risk based assessment model where it is set at budget time. We performed a preliminary analysis and want to work towards 17% of expenditures and if there is budget, left next year or mills are higher than expected the additional amount should go towards this effort. See Appendix D for risk based analysis. City Commission 1%City Manager 4%Municipal Court 3% City Attorney4%Finance3%Facilities Management 5% Information Technology4% Human Resources 2% Police26%Fire 16%Cemetery 2% Parks 7% Library 7% Recreation6% Economic Development 1% Sustainability 0% Non-Departmental 11% General Fund Expenditures by Division - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 5,509,428 5,831,829 General Fund-Fund Balance 37 241 FY18 Actual FY19 Budget FY20 Recommended Revenues Property Taxes 14,067,669 15,076,534 16,023,193 Gallatin County Option 1,621,597 1,545,000 1,680,000 Penalty & Interest 92 - - Business/Animal Licenses and Permits 395,109 409,475 414,975 Grants 47,933 40,000 40,000 County Shared - Library 666,757 696,280 696,280 State Shared 6,971,332 6,906,231 7,219,231 General Government Charges 2,760,257 2,940,941 2,916,037 Library Fines 47,559 50,000 50,000 Police Court Fines 1,007,617 1,023,000 1,025,000 Parking Fines 12,550 38,000 25,000 Snow Removal Fines 26,016 20,000 22,000 Interest Income - 75,000 75,000 Admin Reimbursement 1,500 - - Miscellaneous Revenue 74,550 12,000 36,000 Refunds & Reimbursements 1,025,290 25,000 25,000 Rents and Royalties (Leases)40,296 40,950 44,000 Sales/Unclaimed Property - 5,500 5,500 Transfers 2,323,901 2,560,119 2,729,483 Loan Proceeds 8,006 431,500 - Proceeds-Asset Disposition 12,208 20,000 20,000 Total Revenues 31,110,239 31,915,530 33,046,699 Expenditures Personnel & Benefits 22,531,001 21,960,888 22,734,715 Operations 6,237,763 9,788,744 10,087,112 Capital 704,076 1,832,717 1,083,580 Debt Service 4,702 3,650 44,470 Transfers 632,084 491,188 355,000 Total Expenditures 30,109,626 34,077,187 34,304,877 010 - General Fund FUND 38 242 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 in different ways; some have assessments on properties, property taxes, charges for services, and some are funded through grants or donations. The City currently has 119 special revenue funds with a total of $34 million expenditures planned in FY20. Information on the programs funded or partially funded by these Special Revenue Funds can be found in the description by division in the Activity/Division Detail section. Highlighted in the following discussion are our Transportation special revenue funds and some of our major program special revenue funds, followed by the financial information for all special revenue funds. Transportation Special Revenue funds Streets Maintenance Fund relies on assessments for revenue generation for street maintenance and reconstruction. Since the City expanded, the Streets program starting FY16. The City has seen an increase in streets to maintain as well. This year we are recommending an 8% increase to be able to adjust to the growth. Street Maintenance fund budget includes increased amounts of pavement maintenance, capital projects, and the addition of Streets workers, make up the large portion of the increased expenditures. This trend will continue with the Capital Improvement Plan and the three-year staffing plan showing increases for further growth. 0.0% 5.0% 10.0% 15.0% 20.0% 6.9%6.4% 10.0% 15.0%17.0% 5.0% 8.0% Street Maintenance Assessment Rate Change - 2,000,000 4,000,000 6,000,000 8,000,000 2,012,817 3,743,738 6,203,836 2,087,184 4,335,599 6,462,343 Street Maintenance Fund Financial Trends Revenue Expenditures Street maintenance Assessments Lot Size FY18 Approved Increase Streets 17% FY19 Approved Increase Streets 5% FY20 Recommended Changes Streets 8% Small - 5,000 sgft 131.99 138.59 149.67 Average= 7,500 sqft 198.02 207.92 224.55 Large= 10,000 sqft 264.02 272.22 229.40 39 243 Street Arterial & Collector District Fund is a relatively new fund and has seen a phase in approach with funding. Many of the projects funded help in the Street Impact Fee efforts. Due to the role Street Impact Fees play in the expansion of our Arterial & Collector streets, the A&CD capital plan is tied to projects on the Street Impact Fee CIP. Most projects receive funding from both sources. The District will be providing the “local share” of some projects in advance of development. The city intends to create a payback district to recover the “local share” once an adjacent project is developed. This payback will be deposited to the Arterial & Collector Fund. The passing of the new gas tax, reduced rates in FY19 and we are recommending no rate change for FY20. The appropriations are mainly planned from the Capital Improvement Plan and the project listing can be found in the Capital Expenditures Summary Section. Gas Tax Fund accounts for revenues from State gasoline taxes apportioned from the State of Montana Department of Highways. These go towards street maintenance projects and projects associated with the above arterial and collector fund. The total appropriation for FY20 are $2.1 million. Street Impact Fee Fund- Street Impact Fees go towards capacity expanding road improvements. The appropriations are based on the Capital Improvement Plan and total appropriation of $7.5million. Capital Improvement Plan and the project listing can be found in the Capital Expenditures Summary Section. Program Special Revenue Funds Tree Maintenance Fund accounts for special assessment revenues levied, received, and expended for tree maintenance provided in the public right of way. In previous years, we raised the assessment by 15% to aid working towards the Urban Forestry Management Plan and in FY19 approved a 5% increase. The desired reserve levels are being achieved and with basic inflation of costs and staffing, we are recommending an inflationary increase of 2%. 0.0% 5.0% 10.0% 15.0% FY14 FY15 FY16 FY17 FY18 FY19 FY20 0.0% 2.0%2.0% 15.0%15.0% 5.0% 2.0% Tree Maintenance Assessment Increase Arterial & Collector Assessments Lot Size FY18 Approved Increase Arterial & Collector 63% FY19 Approved Decrease Arterial & Collector (28%) FY20 Recommended No Change Arterial & Collector Small - 5,000 sgft 46.64 34.52 34.52 Average= 7,500 sqft 69.97 51.78 51.78 Large= 10,000 sqft 93.29 69.03 69.03 Tree Assessments Lot Size FY18 Approved Increase Tree 15% FY19 Approved Increase Tree 5% FY20 Recommended Increase Tree 2% Small - 5,000 sgft 14.98 15.73 16.05 Average= 7,500 sqft 22.48 23.61 24.08 Large= 10,000 sqft 28.34 31.49 32.11 40 244 Community Development Planning Fund is a special revenue fund that accounts for revenues and expenditures related to community planning and zoning operations. There are two major revenue sources for the fund, mills from the general mill levy along with planning fees. The Community Development Fund now has four fees that are restricted for use on long-range and other planning document updates, and technology (Long-Range, Conservation Overlay, Entryway Corridor, and Technology.) The total planned expenditures are $1.87 million. Building Inspection Fund is supported entirely by the revenue from building fees and permits. Revenues and expenditures are statutorily restricted to amounts that support the division. This fund is dependent on construction in the City and therefore is monitored based on economic conditions. In addition, it is reported in the quarterly report to the Commission. Total planned expenditures are $2.65 million. The Workforce Housing Fund is where our affordable housing program is accounted for. Affordable Housing is part of our Strategic Plan and a priority for FY20. With the hiring of the program coordinator, the City is forming an updated plan to be approved by the Commission. The fund receives three mills of the general mill levy as well as cash-in-lieu of affordable housing for projects. 265,582 323,679 632,885 339,970 284,401 131,168 611,858 694,458 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 Actual FY17 Actual FY18 Approved FY19 Recommended FY20 Workforce Housing Fund Ending Fund Balance Total Estimated Revenues:Total Proposed Expenditures: 41 245 All Special Revenue Funds: FY18 Actual FY19 Budget FY20 Recommended Revenues Property Taxes 199,071 210,488 216,980 State Shared 114,495 110,733 111,851 Charges for Services 909,607 785,500 788,800 Interest Income - 6,500 6,500 Refunds & Miscellaneous Revenue 49,330 53,400 53,400 Transfers 106,750 127,575 273,043 Total Revenues 1,379,253 1,294,196 1,450,574 Expenditures Personnel & Benefits 881,772 990,695 1,416,573 Operations 337,908 369,281 421,775 Capital - 301,218 35,000 Total Expenditures 1,219,680 1,661,194 1,873,348 103 - Health-Medical Insurance Revenues Property Taxes 2,435,316 2,654,566 2,815,374 Total Revenues 2,435,316 2,654,566 2,815,374 Expenditures Transfers 2,407,104 2,654,566 2,815,384 Total Expenditures 2,407,104 2,654,566 2,815,384 108 - Community Transportation Revenues Interest Income 993 1,200 900 Total Revenues 993 1,200 900 Expenditures Capital - - Total Expenditures - - - Revenues Interest Income 244 200 200 Total Revenues 244 200 200 FUND Special Revenue Funds 100 - Community Development/Planning 109 - Highway Safety Improvement Projects 42 246 FY18 Actual FY19 Budget FY20 Recommended Revenues State Shared 971,627 1,402,031 1,416,750 Interest Income - 9,000 5,000 Total Revenues 971,627 1,411,031 1,421,750 Expenditures Operations 502,278 244,500 1,157,500 Capital 653,164 927,000 240,000 Transfers - - 722,850 Total Expenditures 1,155,442 1,171,500 2,120,350 Revenues Penalty & Interest 16,152 11,500 11,500 Permits 17,407 18,000 18,000 Public Service 5,460,337 5,730,198 6,139,336 Interest Income (974) 10,000 10,000 Other Financing Sources 35,509 - - Refunds & Reimbursements 173,172 10,000 25,000 Proceeds-Asset Disposition 12,827 - - Loan Proceeds 244,531 - - Transfers 31,900 - - Total Revenues 5,990,861 5,779,698 6,203,836 Expenditures Personnel & Benefits 1,676,893 1,629,339 1,756,594 Operations 1,937,735 2,019,801 2,175,136 Capital 805,722 1,314,500 1,510,080 Debt Service 223,985 315,207 310,800 Transfers 1,313,800 695,478 709,733 Total Expenditures 5,958,135 5,974,325 6,462,343 Revenues Penalty & Interest 2,094 1,200 2,000 Grants 750 - - State Revenue 7,825 - - Public Service 689,113 730,821 774,945 Interest Income 3,578 2,200 3,000 Sale of Raw Materials 15,050 3,000 3,000 Total Revenues 718,410 737,221 782,945 Expenditures Personnel & Benefits 432,444 435,400 455,103 Operations 143,947 244,177 242,664 Capital 124,773 146,000 90,000 Total Expenditures 701,164 825,577 787,767 FUND Special Revenue Funds 112 - Tree Maintenance 110 - Gas Tax 111 - Street Maintenance 43 247 FY18 Actual FY19 Budget FY20 Recommended Revenues Public Safety 599,364 380,363 404,134 Interest Income - 12,000 12,000 Total Revenues 599,364 392,363 416,134 Expenditures Operations 44,984 - - Transfers - - 20,451 Total Expenditures 44,984 - 20,451 Revenues Public Service 5,523,020 4,226,250 4,429,095 Interest Income - 115,000 60,000 Admin Reimbursement - 1,000 1,000 Grants - - - Total Revenues 5,523,020 4,342,250 4,490,095 Expenditures Operations 161,261 45,000 - Capital 7,663,383 6,373,000 7,376,000 Transfers - - 189,195 Total Expenditures 7,824,644 6,418,000 7,565,195 Revenues Permits 2,199,692 1,783,700 1,958,700 General Government 67 1,500 1,500 Interest Income - 15,000 15,000 Miscellaneous Revenue 2 - - Total Revenues 2,199,761 1,800,200 1,975,200 Expenditures Personnel & Benefits 1,341,328 1,702,127 1,869,291 Operations 777,494 706,608 787,945 Capital - 251,681 - Total Expenditures 2,118,822 2,660,416 2,657,236 115 - Building Inspection Fund FUND Special Revenue Funds 113 - Fire Impact Fee 114 - Street Impact Fee 44 248 FY18 Actual FY19 Budget FY20 Recommended Revenues Property Taxes 1,232,868 1,820,000 1,820,000 State Shared 56,050 45,000 45,000 Interest Income - 10,000 10,000 Other Revenues - - - Total Revenues 1,288,918 1,875,000 1,875,000 Expenditures Personel - - 17,929 Operations 459,248 1,618,500 1,618,500 Transfers 721,473 434,000 - Total Expenditures 1,180,721 2,052,500 1,636,429 Revenues Interest Income 1,549 - - Loan Principal - 25,000 25,000 Loan Interest 21,737 25,000 25,000 Total Revenues 23,286 50,000 50,000 Expenditures Operations 37,782 31,000 31,000 Total Expenditures 37,782 31,000 31,000 Revenues Property Tax Revenue 302,781 315,732 325,470 Interest Income 398 4,000 5,000 Loan Principal & Interest - 9,500 9,500 Transfers 20,500 166,188 - Total Revenues 323,679 495,420 339,970 Expenditures Personnel 27,052 78,708 81,708 Operations 100,010 293,150 612,750 Total Expenditures 127,062 371,858 694,458 Revenues Interest Income 22 10 20 Loan Principal - 1,000 1,000 Loan Interest 7 275 175 Total Revenues 29 1,285 1,195 Expenditures Operations - - - Total Expenditures - - - 116 - TIFD Downtown Improvement 119 - Economic Development Loan 120 - Community Housing Fund 121 - Housing Revolving Loan FUND Special Revenue Funds 45 249 FY18 Actual FY19 Budget FY20 Recommended Revenues Grants 70,000 50,000 50,000 Total Revenues 70,000 50,000 50,000 Expenditures Operations 70,000 50,000 50,000 Total Expenditures 70,000 50,000 50,000 Revenues Grants 65,295 75,000 70,000 State Shared 46,136 - 45,000 Police Court Fines 72,985 54,000 60,000 Interest Income 784 70 700 Other Financing Sources 122,069 28,872 23,774 Total Revenues 307,269 157,942 199,474 Expenditures Personnel & Benefits 260,567 222,710 233,152 Operations 10,119 8,500 8,900 Total Expenditures 270,686 231,210 242,052 Revenues Interest Income 216 150 200 Total Revenues 216 150 200 Expenditures Operations - 8,000 8,000 Total Expenditures - 8,000 8,000 Revenues Interest Income 377 300 400 Total Revenues 377 300 400 Revenues Interest Income 10 9 10 Total Revenues 10 9 10 123 - Big Sky Econ. Development Grant 125 - Drug Forfeiture Fund 128 - Fish Wildlife & Park Mgmt 130 - Americans with Disability 131 - Beautification of Bozeman FUND Special Revenue Funds 46 250 FY18 Actual FY19 Budget FY20 Recommended Revenues Interest Income 194 100 175 Donations 11,750 5,000 5,000 Refunds & Reimbursements 1,086 1,200 1,100 Total Revenues 13,030 6,300 6,275 Expenditures Operations 10,175 5,000 5,000 Total Expenditures 10,175 5,000 5,000 Revenues Interest Income 72 100 75 Donations 4,634 2,000 2,000 Total Revenues 4,706 2,100 2,075 Expenditures Operations 9,500 - - Total Expenditures 9,500 - - Revenues Interest Income 25 20 30 Total Revenues 25 20 30 Revenues Interest Income 173 100 100 Donations 31,144 - - Miscellaneous Revenue 2,320 2,500 2,500 Total Revenues 33,637 2,600 2,600 Expenditures Operations 515 - - Capital 8,980 - - Total Expenditures 9,495 - - Revenues Grants - - - Interest Income (342) 100 - Donations 16,030 75,000 20,000 Other Financing Sources 35,000 - - Total Revenues 50,688 75,100 20,000 Expenditures Operations 45,784 - - Total Expenditures 45,784 - - 132 - Bogert Park Special Revenue 133 - Recreation Special Revenue 135 - Cemetery Special Revenue 136 - Park Special Revenue 137 - Library Special Revenue FUND Special Revenue Funds 47 251 FY18 Actual FY19 Budget FY20 Recommended Expenditures Operations 19,125 19,125 19,125 Total Expenditures 19,125 19,125 19,125 Revenues Grants 6,200 - - Interest Income 2,567 2,000 2,500 Donations 2,933 2,000 3,000 Miscellaneous Revenue 7,808 10,000 9,000 Refunds & Reimbursements - 500 500 Total Revenues 19,508 14,500 15,000 Expenditures Operating 35,406 - 40,000 Capital - - - Total Expenditures 35,406 - 40,000 Revenues Grants 44,936 - 187,040 State Shared - - - Transfers 53 - - Total Revenues 44,989 - 187,040 Expenditures Personnel & Benefits 2,666 - - Operating 42,323 - 187,040 Total Expenditures 44,989 - 187,040 Revenues Penalty & Interest 4,894 2,334 2,500 Street Maintenance Assessments 1,821,677 1,333,854 1,372,840 Other Revenues/Refunds 221,891 378,688 522,557 Interest Income - 20,031 7,000 Transfers - - 722,850 Total Revenues 2,048,462 1,734,907 2,627,747 Expenditures Operating 34,180 115,000 15,000 Capital 1,707,236 3,453,000 2,381,000 Total Expenditures 1,741,416 3,568,000 2,396,000 138 - Law & Justice Center 139 - Police Special Revenue 140 - Police Domestic Violence 141 - Street Arterial Construction FUND Special Revenue Funds 48 252 FY18 Actual FY19 Budget FY20 Recommended Revenues Property Taxes 638,613 651,949 651,949 Interest Income - 9,500 9,500 Transfers 48,835 - - Total Revenues 687,448 661,449 661,449 Expenditures Personnel - - 26,379 Operating 184,331 1,491,900 1,491,900 Capital 397,951 - - Transfers 36,000 40,000 - Total Expenditures 618,282 1,531,900 1,518,279 Revenues Property Taxes 144,461 139,500 139,500 Grants 1,356 - - Interest Income 3,765 1,500 1,500 Proceeds of Bond Sale - - - Total Revenues 149,582 141,000 141,000 Expenditures Personnel - - 26,379 Operating 19,987 420,100 420,100 Debt Service 92,000 - Transfers 10,000 14,000 - Total Expenditures 121,987 434,100 446,479 Revenues Property Taxes 56,063 25,000 25,000 Interest Income 198 Total Revenues 56,063 25,000 25,000 Expenditures Operating 4,721 4,000 - Total Expenditures 4,721 4,000 - Revenues Penalty & Interest - 113 1,142 Special Assessments 425,319 426,562 450,254 Interest Income 5,929 4,925 5,890 Total Revenues 431,248 431,487 457,286 Expenditures Operating 442,189 440,617 458,359 Transfers 31,900 31,900 19,140 Total Expenditures 474,089 472,517 477,499 145 - TIF Mandeville Farm Industrial 146 - 170;181;182; 200 -243 - Lighting Districts 143 - TIF N 7th Corridor 144 - TIF NE Urban Renewal District FUND Special Revenue Funds 49 253 FY18 Actual FY19 Budget FY20 Recommended Revenues Police Court Fines 72,052 63,000 65,000 Interest Income 4,084 3,100 3,500 Total Revenues 76,136 66,100 68,500 Expenditures Operating 81,500 150,000 90,000 Total Expenditures 81,500 150,000 90,000 Revenues Property Taxes 99,539 105,244 108,490 Interest Income 470 200 250 Total Revenues 100,009 105,444 108,740 Expenditures Operating 100,678 105,244 108,490 Total Expenditures 100,678 105,244 108,490 Revenues Principal 128,136 143,000 143,000 Penalty & Interest - 200 200 Donations/other - 19,500 19,500 Total Revenues 128,136 162,700 162,700 Expenditures Operating 132,939 162,175 162,178 Total Expenditures 132,939 162,175 162,178 Revenues Interest Income 10 8 10 Total Revenues 10 8 10 Revenues Grants 39,838 113,000 113,000 State Shared - - - Refunds & Reimbursements 2,464 7,000 2,500 Transfers - - Total Revenues 42,302 120,000 115,500 Expenditures Personnel & Benefits 10,346 - 34,386 Operating 29,681 87,156 117,960 Total Expenditures 40,027 87,156 152,346 174 - Victim/Witness Advocate 175 - Senior Transportation 178 - Veteran's Treatment Court 176 - BID Downtown Improv Dist 177 - Neighborhood Association FUND Special Revenue Funds 50 254 FY18 Actual FY19 Budget FY20 Recommended Revenues Interest Income (6,656) 11,000 11,000 Total Revenues (6,656) 11,000 11,000 Revenues Interest Income 1,022 650 1,000 Donations 6,205 3,000 3,000 Grants 53,346 - - Total Revenues 60,573 3,650 4,000 Expenditures Operating 89,252 40,000 50,000 Total Expenditures 89,252 40,000 50,000 Revenues Transfers - - - Total Revenues - - - Expenditures Operating 1,999 - - Total Expenditures 1,999 - - Revenues Interest Income 1,815 1,500 1,500 Other Revenue 100 - - Total Revenues 1,915 1,500 1,500 Expenditures Operating 7,903 - 5,000 Total Expenditures 7,903 - 5,000 187 - Fire Dept Equipment Revenues Property Taxes 398,156 420,976 433,960 Other 5,569 - - Interest Income - 2,500 2,500 Total Revenues 403,725 423,476 436,460 Expenditures Operating 17,904 - - Capital 583,137 606,000 468,000 Transfers - - 600,000 Total Expenditures 601,041 606,000 1,068,000 183 - Fire Department Special Revenue 184 - Parks Master Plan/Improvement Grants 186 - Development Impacts 179 - Disaster Relief (Hail Damage Events) FUND Special Revenue Funds 51 255 FY18 Actual FY19 Budget FY20 Recommended 188 - City/County Joint Drug Forfeiture Revenues Fines - 500 - Interest Income 1,361 1,100 1,300 Total Revenues 1,361 1,600 1,300 Revenues Charges for Sevices 25,610 22,000 35,000 Total Revenues 25,610 22,000 35,000 Expenditures Operating 31,946 57,302 40,792 Capital - - - Total Expenditures 31,946 57,302 40,792 Revenues Special Assessments 1,028,397 1,200,000 300,000 Penalty & Interest - 1,200 1,200 Total Revenues 1,028,397 1,201,200 301,200 Expenditures Operations 1,028,397 1,200,000 301,200 Total Expenditures 1,028,397 1,200,000 301,200 Revenues Principal 1,928 2,000 2,000 Interest 595 1,200 600 Interest Income 40 - 50 Total Revenues 2,563 3,200 2,650 Revenues Principal 52,299 40,000 40,000 Interest 521 500 500 Interest Income 935 400 950 Total Revenues 53,755 40,900 41,450 193 - Street Maint - Babcock SID 194 - Street Maint - Durston SID 189 - Story Mansion Special Revenue 191 - Bozeman Tourism BID FUND Special Revenue Funds 52 256 FY18 Actual FY19 Budget FY20 Recommended 199- Sports Park Revenues Other - - 51,000 Total Revenues - - 51,000 Expenditures Operating - - 51,000 Total Expenditures - - 51,000 Revenues Cash in Lieu of Parkland 187,144 - 50,000 Interest Income - 4,500 4,500 Total Revenues 187,144 4,500 54,500 Expenditures Operations 4,320 - 5,000 Total Expenditures 4,320 - 5,000 850 - Cash in Lieu of Parkland FUND Special Revenue Funds 53 257 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. General Obligation Bonds are backed by the full faith and credit of the City and are payable from ad valorem property taxes. Except for refunding bonds issued to achieve savings, Bozeman voters must approve general obligation debt prior to issuance. A large change for FY20 is expected with the issuance of General Obligation bonds for the Bozeman Public Safety Center in late summer, first part of FY20. There is also a loan initiated during 2019 to fund two additional turf fields and the Sports Park that will be repaid through user group fees managed by the Sports Park Foundation. Debt schedules are located at the end of the Activity/Division Section under the Non-Departmental. FY18 Actual FY19 Budget FY20 Recommended Revenues Interest Income - 26,000 15,000 Loan Interest 3,685 3,500 3,700 Other - 224,011 - Total Revenues 3,685 253,511 18,700 Expenditures Transfers - 224,011 867,070 Total Expenditures - 224,011 867,070 Revenues Property Taxes 274,863 275,900 273,300 Total Revenues 274,863 275,900 273,300 Expenditures Debt Service 276,500 276,900 273,300 Total Expenditures 276,500 276,900 273,300 Revenues Property Taxes 1,078,563 1,083,136 1,076,788 Total Revenues 1,078,563 1,083,136 1,076,788 Expenditures Debt Service 1,081,238 1,088,138 1,076,788 Total Expenditures 1,081,238 1,088,138 1,076,788 Revenues Transfers In 422,637 423,673 418,898 Total Revenues 422,637 423,673 418,898 Expenditures Debt Service 422,288 423,673 418,898 Total Expenditures 422,288 423,673 418,898 FUND 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 54 258 FY18 Actual FY19 Budget FY20 Recommended Revenues Property Taxes - - 1,441,716 Proceeds Sales of GO Bonds - - 36,965,000 Transfers In - - - Total Revenues - - 38,406,716 Expenditures Debt Service - - 1,641,716 Transfers In - - 36,735,000 Total Expenditures - - 38,376,716 Revenues Special Assessments 415,290 439,129 417,627 Penalty & Interest 91,390 152,985 94,529 Interest Income 10,589 1,200 13,045 Total Revenues 517,269 593,314 525,201 Expenditures Debt Service 972 385,800 1,000 Transfers - - - Total Expenditures 972 385,800 1,000 Revenues Special Assessments - - 32,000 Total Revenues - - 32,000 Expenditures Debt Service - - 32,000 Total Expenditures - - 32,000 450- Ssports Park Foundation Turf Field Loan 310-448- SID Funds FUND Debt Service Funds 307 - Bozeman Public Safety Center- GO Bonds 55 259 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. Citizens and public officials in Bozeman have supported significant public investments that make Bozeman the city it is today. The City’s Capital Improvement Program (CIP) develops the Five-Year Capital Improvement Program, manages the City’s annual budget process for funding citywide capital maintenance and expansion projects, supports strategic capital planning and programming efforts with City departments, and provides analysis for judicious financial decision making. A Capital Improvement is a project or effort that maintains, improves, or constructs a City asset, such as buildings, transportation networks, parks and recreation facilities. The large change in these funds for FY20 is the construction of the Bozeman Public Safety Center approved by the voters in November 2018. FY18 Actual FY19 Budget FY20 Recommended Revenues Interest Income - - - Transfers 1,313,800 284,011 38,044,733 Other Funding 1,363,457 - - Total Revenues 2,677,257 284,011 38,044,733 Expenditures Operating 105,274 735,000 280,000 Capital 5,777,080 284,011 41,187,362 Transfers - - - Total Expenditures 5,882,354 1,019,011 41,467,362 FUND Construction Funds 500-566 - Construction Funds 56 260 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. The following is a discussion of some of the major enterprise funds and ones with larger changes for FY20, followed by all Enterprise fund financials. Water Fund- City Property owners are by and large required to use the City’s Water treatment systems. The City recently underwent a rate study that included water conservation rate examination, and drought rate and reserve design. The rate study was presented and accepted by the Commission April 15, 2019. The plan outlines targets for reserves that includes a drought reserve to cover times of extreme drought. The drought reserve rate will be $0.08 per CCF. The rates for the residential class will be based on their usage on the tier system pictured below to encourage water conservation and discourage over watering. Then rates will change based on user class: 57 261 With these changes, appropriate users classes will be charged based on their cost of service and the City will be able to achieve and maintain appropriate revenue levels and reserves. Overall, the fund has maintained a healthy reserve and improved as well as maintained the City’s water system. Wastewater Fund- City Property owners are by and large required to use the City’s Sewer treatment systems. The City recently underwent a rate study presented and accepted by the Commission April 15, 2019. Rates vary by user class: With these changes, appropriate users classes will be charged based on their cost of service and the City will be able to achieve and maintain appropriate revenue levels and reserves. Overall, the fund has maintained a healthy reserve and improved as well as maintained the City’s sewer system. The fund balance needs growth as the infrastructure is starting to age. - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Water Fund Financial Trends Revenues Expenditures Fund Balance 58 262 Stormwater Fund started in 2013 and had its current rate structure set in April 2015, rates are based on impervious area, and existing infrastructure. The rate has not changed since the 2015 restructure and with inflation costs and growth; we are recommending a 4% rate increase. With increasing the rate and with projected growth, the fund will be able to maintain a 45-day and a depreciation reserves to be able to replace unexpected loss of equipment. Solid Waste Fund -The City’s Solid Waste Fund accounts for the garbage and recycling service provided to citizens. Revenues are comprised of solid waste and recycling fees. Expenses are for personnel, operations and capital items. Fund balance is sufficient for depreciation coverage and for an event, if we lose a truck unexpectedly. We are currently performing a rate study that will determine if a rate increase is needed by early August 2019. For this budget, revenue has been estimated based on past growth with no rate change. - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Wastewater Financial Trends Revenues Expenditures Fund Balance - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Storm Water Financial Trends Revenues Expenditures Fund Balance 59 263 All Enterprise Funds: FY18 Actual FY19 Budget FY20 Recommended Revenues Penatly & Interest 66 - - State Shared 59,029 1,500 1,500 Utility Charges 8,544,654 8,985,959 10,455,076 Interest Income (1,639) 168,495 160,000 Donations - Contributed Capital 4,874,798 - - Cah in Lieu-Water Rights 1,180,122 - - Miscellaneous Revenue - 50,000 50,000 Refunds & Reimbursements 500 Rents & Royalties 38,567 80,000 80,000 Administrative Reimbursement 1,486,808 - - Other Financing Sources - 1,750,000 1,200,000 Total Revenues 16,182,405 11,036,454 11,946,576 Expenditures Personnel & Benefits 3,203,117 2,085,584 2,173,734 Operating 5,573,070 4,634,920 4,603,370 Capital 971,834 4,316,009 2,226,500 Debt Service - 1,165,630 1,168,130 Total Expenditures 9,748,021 12,202,143 10,171,734 Revenues Utilities & Enterprise 2,757,565 1,883,070 1,925,831 Interest Income (344) 5,000 5,000 Total Revenues 2,757,221 1,888,070 1,930,831 Expenditures Operating 152,736 - - Capital 279,399 1,586,020 6,295,729 Transfers - 600,000 667,323 Total Expenditures 432,135 2,186,020 6,963,052 FUND Enterprise Funds 600 - Water Fund 610 - Water Impact Fee 60 264 FY18 Actual FY19 Budget FY20 Recommended Revenues Penalties & Interest 23 - - State Shared 36,704 1,500 35,000 Utility & Enterprise 8,876,015 9,559,623 9,921,394 Interest Income - 91,238 80,000 Refunds & Reimbursements 29,035 - - Contributed Capital 4,102,663 - - Other Financing 1,007 - - Total Revenues 13,045,447 9,652,361 10,036,394 Expenditures Personnel & Benefits 1,987,336 2,017,844 2,128,979 Operating 3,267,033 4,069,269 4,129,133 Capital 1,502,439 3,352,500 1,627,500 Debt Service - 1,476,059 - Transfers - - - Total Expenditures 6,756,808 10,915,672 7,885,612 Revenues Utility & Enterprise 1,810,489 1,282,208 1,320,674 Loan Proceeds - 7,985,000 5,200,000 Interest Income - 20,000 20,000 Total Revenues 1,810,489 9,287,208 6,540,674 Expenditures Operating 83,977 - 350,000 Capital 127,634 8,625,000 6,424,000 Debt Service - - 530,012 Transfers - - 39,405 Total Expenditures 211,611 8,625,000 7,343,417 630 - Waste Water Impact Fee FUND Enterprise Funds 620 - Waste Water Fund 61 265 FY18 Actual FY19 Budget FY20 Recommended Revenues Penalty & Interest 234 - - State Shared 24,471 - - Recycling Revenue 446,931 408,035 483,771 Utilities & Enterprise 3,479,192 3,508,627 3,648,702 Interest Income 151 6,995 7,275 Miscellaneous Revenue - - Refunds & Reimbursements 3,078 - - Rents and Royalties - 8,240 8,570 Roll-Off Container Rental 14,778 16,695 17,363 Total Revenues 3,968,835 3,948,592 4,165,681 Expenditures Personnel & Benefits 1,463,392 1,351,142 1,465,420 Operating 2,769,103 2,312,942 2,799,357 Capital 736,637 100,000 890,000 Transfers - - - Total Expenditures 4,969,132 3,764,084 5,154,777 Revenues Interest 2,914 - 2,000 Transfers 368,084 250,000 280,000 Total Revenues 370,998 250,000 282,000 Expenditures Operations 303,372 250,000 226,000 Capital 61,417 61,417 61,417 Total Expenditures 364,789 311,417 287,417 Revenues Licenses and Permits 612,118 414,000 456,000 Charges for Services 64,308 50,000 50,000 Fines and Forfeitures 281,954 300,000 300,000 Interest Income - 5,000 5,000 Loan Interest 762 840 840 Miscellaneous Revenue 18,401 - - Rents & Receivables 1,837 1,500 1,500 Transfers from other Funds 250,000 250,000 250,000 Total Revenues 1,229,380 1,021,340 1,063,340 Expenditures Personnel & Benefits 389,115 353,362 426,764 Operating 744,665 393,978 425,905 Capital 159,336 112,031 230,000 Total Expenditures 1,293,116 859,371 1,082,669 640 - Solid Waste Fund 641 - Landfill Post Closure and Monitoring Costs 650 - Parking Fund FUND Enterprise Funds 62 266 FY18 Actual FY19 Budget FY20 Recommended Revenues State Shared 8,299 - - Utilities & Enterprise 1,325,150 1,317,688 1,397,907 Interest Income - 5,500 5,500 Contributed Capital 685,144 - - Transfers from other Funds 140,000 75,000 75,000 Total Revenues 2,158,593 1,398,188 1,478,407 Expenditures Personnel & Benefits 548,094 408,583 580,938 Opeartions 286,662 240,373 268,372 Capital 889,821 635,000 650,000 Debt Service 194,068 160,346 161,211 Transfers - - - Total Expenditures 1,918,645 1,444,302 1,660,521 670 - Storm Water Fund FUND Enterprise Funds 63 267 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 was 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. FY18 Actual FY19 Budget FY20 Recommended Revenues General Government 1,270,857 1,264,876 1,389,462 Interest Income - 250 250 Refunds & Reimbursements 9,030 500 500 Total Revenues 1,279,887 1,265,626 1,390,212 Expenditures Personnel & Benefits 492,099 481,127 541,468 Operating 890,303 778,335 846,332 Capital - - - Total Expenditures 1,382,402 1,259,462 1,387,800 720 - Health-Medical Insurance Revenues Public Welfare 4,803,540 4,820,912 5,044,794 Refunds & Reimbursements 6,702 - - Transfers In - - - Total Revenues 4,810,242 4,820,912 5,044,794 Expenditures Operating 4,814,456 4,820,912 5,044,794 Total Expenditures 4,814,456 4,820,912 5,044,794 Revenues General Government - 2,381,457 2,945,060 Transfers - - 105,458 Total Revenues - 2,381,457 3,050,518 Expenditures Personnel & Benefits - 1,693,903 2,089,248 Operating - 588,006 780,812 Capital - 106,548 75,000 Total Expenditures - 2,388,457 2,945,060 FUND Internal Service Funds 710 - Vehicle Maintenance 750 - Public Works Administration 64 268 Permanent Funds Perpetual Cemetery Care Fund 800 accounts for the maintenance fee received from the sale of City cemetery lots, which is to be used for perpetual care. Beginning in FY19, 35% of all revenue is recorded in to the fund. The fund balance has seen healthy growth over the last five years and is estimated to be just under $1.5 million by the end of FY20. FY18 Actual FY19 Budget FY20 Recommended Revenues Public Welfare 118,028 75,000 80,000 Interest Income - 13,500 10,000 Total Revenues 118,028 88,500 90,000 800 - Cemetery Perpetual Care Permanent Funds FUND 65 269 Activity/Department Details 67 271 Activity/Division Detail As stated in the Budget Summary the budget is separated out by activity. Within those activities are the divisions. See below the Activities and the corresponding divisions. Activity General 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 68 272 The divisions are part of larger Departments. The following table lists the Department and corresponding divisions with their activity shown with the corresponding color to the chart on the previous page. Departments Municipal Court City Commission City Manager City Attorney Finance Human Resources Information Technology Community Development Building Inspection Affordable Housing Strategic Services GIS/Asset Management Facility Management SustainabilityPolice Fire Public Works Admin City Engineer Streets Storm water Water Water Reclamation Facility Solid Waste Collection & Recycling Vehicle Maintenance Parks and Recreation Forestry Recreation Parks Cemetery Library Economic Development Parking Neighborhoods 69 273 General Government 71 275 General Government City Commission- The City Commission is the legislative body of city government comprised of a mayor and four commissioners. Responsibilities of the Commission include: establishment of policies governing the operation of the City and appointment of members to citizen advisory boards and commissions. City Manager – 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. City Clerk (City Manager)- The City Clerk’s Office is dedicated to preparing the proceedings of the City Commission and preserving the City records, along with enhancing the ability of the citizenry to participate in local government. Neighborhoods (Economic Development) - The Neighborhoods Program creates systems for communication and engagement with Bozeman neighbors. City Attorney - 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 the legal operations of the city. The City Attorney and legal department staff: represent the city before all courts, administrative agencies, and all city legal proceedings. Finance - 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 for all financial matters. Facilities Management (Strategic Services)- Facilities Management is responsible for coordinating remodeling, renovations, and new construction projects. Contracted services include activities such as: janitorial services; snow removal; lawn care; and building systems ventilation, mechanical controls, and building generators. Information Technology - The Information Technology Department purpose is to manage and operate the City’s enterprise applications, hardware, and networking services. The division provides technology services, support to all departments across the city, and maintains daily operations of the data centers. Human Resources - The Human Resources Department’s purpose is to support City functions by ensuring the capability and stability of the workforce. The department supports management and employees with current lawful information, sound recruitment practices, and benefits, protecting the employment rights of the City and its employees. Planning (Community Development) - Plans for the growth and development of the City of Bozeman. Responsible for Long Range Planning, Development Review, Historic Preservation, Impact Fees, Affordable Housing and serving related Advisory Boards and Commissions. Municipal Court- Municipal Court accounts for costs associated with the judicial branch of City government. The Municipal Court hears cases involving city ordinances, misdemeanor cases defined by state criminal codes, may conduct (preliminary hearings) in felony cases, and Orders of Protection. 72 276 City Commission Major Objectives: • Work closely with the administration and other government officials to lobby for state legislation beneficial to cities. • Improve public facilities and the quality of services delivered to the public in order to meet the needs of the citizenry. • Ensure that all decisions are protective of the health, safety and general welfare of the citizens of this community. Budget Allocation Funded by the General Fund, making 1% of the funds expenses FY19 Accomplishments • Passed the Bozeman Public Safety Center Bond initiative. FY19 Strategic Plan • Set FY19 Strategic Priorities FY20 Strategic Plan • Set FY20 Strategic Priorities Commission 1% General Fund 73 277 FY20 Budget Personnel No FTE changes Operating Operating budget includes technology for the Commission room Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change CITY COMMISSION 010- General 215,704 295,016 285,877 -3.1% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change CITY COMMISSION Salaries & Benefits 130,176 131,266 258,882 97.2% CITY COMMISSION Operating 84,274 82,200 125,950 53.2% CITY COMMISSION Capital - 80,000 - -100.0% CITY COMMISSION Debt Service 1,254 1,550 1,054 0.0% CITY COMMISSION Transfers - - 0.0% TOTALS 215,704 295,016 385,886 30.8% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change CITY COMMISSION 1110- City Commission 215,704 295,016 285,877 -3.1% Department Budget by Fund Department Budget by Category Department Budget by Division Salaries & Benefits67% Operating33% Capital0%Debt Service0%Transfers0% 74 278 City Manager 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. Budget Allocation Funded by the General Fund, making up 3% of the fund’s expenditures. FY19 Accomplishments • Made advancements with the Strategic Plan implementation and reporting. • Hired the Communication Coordinator position. • Education efforts for the Bozeman Public Safety Center and its passing. FY19 Strategic Plan There were many accomplishments across the organization. The City Manager’s Office specifically: • Aided in the Bozeman Public Safety Center education efforts and working towards communication action items. • Collaborated with MSU with the EPIC- N program • Worked toward enhancing communication FY20 Strategic Plan The City Manager is charged with implementing the plan. There is a focus on the five priorities and the other projects selected by the Commission. Within the City Manager’s Office there is a focus on: • 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 City Manager3% General Fund 75 279 FY20 Budget Personnel No FTE Changes Operating Reduction with non-legislative year and no new staff Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change CITY MANAGER 010- General 891,042 944,508 951,156 0.7% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change CITY MANAGER Salaries & Benefits 711,009 788,719 814,010 3.2% CITY MANAGER Operating 178,779 155,239 137,146 -11.7% CITY MANAGER Capital - - - 0.0% CITY MANAGER Debt Service 1,254 550 - -100.0% CITY MANAGER Transfers - - - 0.0% TOTALS 891,042 944,508 951,156 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change CITY MANAGER 1210- City Administration 891,042 944,508 951,156 0.7% TOTALS 891,042 944,508 951,156 Department Budget by Fund Department Budget by Category Department Budget by Division Salaries & Benefits 86% Operating 14% Capital0%Debt Service0%Transfers0% 76 280 City Clerk (City Manager’s Office) Major Objectives: • Support the City Commission by preparing the proceedings and managing the public meeting process. • Preserve the City’s records and manage organization, accuracy, accessibility, and completeness. • Coordinate the City’s many citizen advisory boards, commissions, and committees. • Perform centralized administrative tasks including bid/RFP/RFP management, records requests, public noticing, public comment, codification, election coordination, ethics and financial disclosure tracking, grant approvals, etc. Budget Allocation Funded by the General Fund, making up less than 1% of the fund’s expenditures. FY19 Accomplishments Procedural improvements: • Online public notices • Alcohol licensing cheat-sheet • Resolution/Ordinance title consistency • Board/commission/committee accuracy and consistency FY19 Strategic Plan Strategic Plan - 1.1 Outreach b.) Dramatically increase transparency and create access to all city documents Performance Measures Performance Measures • Maintain and track a high standard of citizen engagement and trust by creating processes to distribute all received public comment, targeted to specialized recipients, within 1 business day to enable timely information distribution among the commission, boards, and staff. • Track disposition across city departments, with a long term goal of significantly increased disposal, document and disposition transparency through a formalized process, and increased facility space. FY20 Strategic Plan Strategic Plan - 1.1 Outreach b.) Dramatically increase transparency and create access to all city documents Software that contributes: • Laserfiche – digitized and accessible documents, very few cities do what we do! • Municode – code stays up to date and centralized instead of remaining in ordinance text • Granicus – accessible video, minutes, and packet materials with search capability • Vendor TBA – closed captioned videos critical per Web Content Accessibility Guidelines City Clerk1% General Fund 2,908 4,615 4,558 4,500 4,600 0 2,000 4,000 6,000 FY16 FY17 FY18 FY19Approved FY20Recommended Documents Processed for Public Access 77 281 FY20 Budget Personnel No FTE changes Operating Increase in software licensing agreements Capital None Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change CITY CLERK 010- General 185,320 297,839 259,175 -13.0% Division Category FY18 Actual FY19 Budget FY20 Recommended % Change CITY CLERK Salaries & Benefits 148,371 211,314 159,355 -24.6% CITY CLERK Operating 28,290 84,975 98,775 16.2% CITY CLERK Capital 7,405 - - 0.0% CITY CLERK Debt Service 1,254 1,550 1,045 -32.6% CITY CLERK Transfers - - 0.0% TOTALS 185,320 297,839 259,175 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change CITY MANAGER 1220-City Clerk 185,320 297,839 259,175 -13.0% TOTALS 185,320 297,839 259,175 Department Budget by Fund Department Budget by Category Department Budget by Division Salaries & Benefits62% Operating 38% Capital 0% Debt Service 0% 78 282 Neighborhoods (Economic Development) Major Objectives: • Advance engagement opportunities and communication with Bozeman neighbors. • Increase the geographic representation of neighbors by developing outreach systems. Strengthen collaborations and partnerships with other public agencies like MSU and stakeholders like the business community and nonprofit sector. Budget Allocation Funded by the General Fund, making up less than 1% of the fund’s expenditures. FY19 Accomplishments • Advanced engagement opportunities for problem solving and policy discussion and input with Bozeman Neighbors. Some selected examples: • Worked closely with new Communications Coordinator to advance Citywide information sharing. • Partnership with MSU to create an Off Campus Living program to support MSU students living in Bozeman: staff, programming, budget, etc. FY19 Strategic Plans • 1.2 Community Engagement – Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. • 1.3 Public Agencies Collaboration – Foster successful collaboration with other public agencies and build on these successes. (1.3c Enhance our relationship with MSU) Performance Measures • Monitor program activity both inside and outside of formal neighborhood boundaries to demonstrate the reach of community engagement. • Track partnerships with community stakeholders to better understand the impact we can have when working together. • Measure and communicate projects completed by City departments to show the value of the services we provide. FY20 Strategic Plan • 1.2b Community Engagement Plan – Develop a plan to increase community engagement in city decision-making processes • 1.3c Enhance our relationship with MSU Neighborh oods 0% General Fund 79 283 FY20 Budget Personnel No FTE changes Operating Slight increase for postage and outreach Capital None Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change NEIGHBORHOODS 010- General 65,961 96,791 102,462 5.9% Division Category FY18 Actual FY19 Budget FY20 Recommended % Change NEIGHBORHOODS Salaries & Benefits 53,337 68,816 72,422 5.2% NEIGHBORHOODS Operating 12,624 27,975 30,020 7.3% NEIGHBORHOODS Capital - - - 0.0% NEIGHBORHOODS Debt Service - - - 0.0% NEIGHBORHOODS Transfers - - - 0.0% TOTALS 65,961 96,791 102,442 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change Economic Development 1260- Neighborhood 65,961 96,791 102,462 5.9% TOTALS 65,961 96,791 102,462 Department Budget by Fund Department Budget by Category Department Budget by Division Salaries & Benefits 71% Operating 29% Capital0%Debt Service 0% Transfers0% 80 284 City Attorney Major Objectives: • To be a critical part of the City’s leadership through integration with department directors, HPO members, the City Commission, and other city agencies. • To enforce state laws and city ordinances pertaining to misdemeanor offenses within the city and to prosecute criminal cases in a timely and efficient manner. • To direct the legal operations of the city and serve as the city's legal counsel. Budget Allocation Funded mainly from the General Fund, making up 4% of the fund’s expenditures The Department oversees the programming for the special revenue fund 174Victim/Witness advocate. Total funding breakdown: FY19 Accomplishments • Continuing to build our team through professional development, training, and coordination. • Continued effective integration into all City departments as demonstrated by a significant list of accomplishments • Increase in efficiency and effectiveness of the prosecution team FY19 Strategic Plans City Attorney’s Office plays a role in the majority of strategic plan items Performance Measures FY20 Strategic Plan Resources are needed to participate in all aspects of strategic plan implementation. City Attorney 4% General Fund 010- General Fund 94% 174- Victim Witness Advocat… 81 285 FY20 Budget Personnel One FTE added to the Department but funding is from the 100-Planning Fund and the 750 – PW Admin Fund for work needed specifically for those areas Operating Reduction in the Special revenue fund and slight increase in the General Fund Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change CITY ATTORNEY 010- General Fund 1,188,539 1,258,873 1,315,436 4.5% CITY ATTORNEY 174- Victim Witness Advocate 185,000 150,000 90,000 -40.0% 1,373,539 1,408,873 1,405,436 Department Category FY18 Actual FY19 Budget FY20 Recommended % Change CITY ATTORNEY Salaries & Benefits 1,076,328 1,119,223 1,168,766 4.4% CITY ATTORNEY Operating 297,211 289,650 236,650 -18.3% CITY ATTORNEY Capital - - - 0.0% CITY ATTORNEY Debt Service - - - 0.0% CITY ATTORNEY Transfers - - - 0.0% TOTALS 1,373,539 1,408,873 1,405,416 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change CITY ATTORNEY 1410- City Attorney 1,161,351 1,232,873 1,309,436 6.2% CITY ATTORNEY 1430-1446- Civil Litigation 26,747 25,000 5,000 -80.0% CITY ATTORNEY 1460- Criminal Prosecution - General 441 1,000 1,000 0.0% CITY ATTORNEY 1462- Criminal Prosecution - Victim/Witness 185,000 150,000 90,000 -40.0% TOTALS 1,373,539 1,408,873 1,405,436 Department Budget by Fund Department Budget by Category Department Budget by Division Salaries & Benefits83% Operating17% Capital 0%Debt Service 0% Transfers 0% 82 286 Finance Major Objectives: • To assure efficient and effective management of the public's resources by providing quality financial services and safeguarding the City’s Assets • To manage and account for the City's finances in accordance with Generally Accepted Accounting Principles, as set forth by the Governmental Accounting Standards Board and prepare a Comprehensive Annual Financial Report. • To prepare a comprehensive budget on an annual basis that encompasses all funds of the City. Budget Allocation Funded by the General Fund, making up 3% of the fund’s expenditures. FY19 Accomplishments • Government Finance Officers Association Awards for the Comprehensive Annual Financial Report and Budget Book • Rate and fee studies in many areas and funds (Water, Wastewater, Cemetery, Parks & Recreation and upcoming Solidwaste) • New Parking software implementation FY19 Strategic Plans • We worked towards item 7.1 b -Create a Culture of Innovation by: o Changing our CIP database system for project tracking and plan development and now the CIP merges into the annual budget for time savings on many levels o Trained on Lean Principals in an office setting, making goals that are already in the testing phase that will make us more efficient and giving us several hours of time savings. • 7.3 C Improve Departmental Collaboration- we worked with many departments and efforts with the CIP, and Parks & Trails District. Performance Measures • Receive Awards for financial reporting; FY17 Comprehensive Annual Financial Report received Government Finance Officer Association’s certificate in Achieving Excellence in Financial reporting and the FY19 Budget received their Distinguished Budget Award. • Through lean process eliminate waste, and strive for efficiency while remaining effective. FY19 progress $1,069 hard cost savings per year and 768 hours of staff time per year (one efficiency reporting change saved 600 hours of staff time). • Review workload indicators to determine performance measurements. FY20 Strategic Plan The Finance Department supports the strategic plan efforts across the organization and will focus internally on: • We worked towards item 7.1 b -Create a Culture of Innovation • 7.3 C Improve Departmental Collaboration Finance 3% General Fund 83 287 FY20 Budget Personnel No FTE changes. Note: Utility billing staff is budgeted under fund 750- PW Admin fund Operating Minor reductions made Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change FINANCE 010- General Fund 1,132,468 957,847 1,001,680 4.6% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change FINANCE DEPARTMENT Salaries & Benefits 917,538 756,309 805,392 6.5% FINANCE DEPARTMENT Operating 214,930 199,538 196,288 -1.6% FINANCE DEPARTMENT Capital - 2,000 - 0.0% FINANCE DEPARTMENT Debt Service - - - 0.0% FINANCE DEPARTMENT Transfers - - - 0.0% TOTALS 1,132,468 957,847 1,001,680 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change FINANCE DEPARTMENT 1510- Finance Administration 261,736 269,421 281,303 4.4% FINANCE DEPARTMENT 1520- Accounting 426,852 434,114 457,303 5.3% FINANCE DEPARTMENT 1530- Treasury 443,880 254,312 263,074 3.4% TOTALS 1,132,468 957,847 1,001,680 Department Budget by Fund Department Budget by Category Department Budget by Division Salaries & Benefits80% Operating 20% Capital 0%Debt Service 0% Transfers0% 84 288 Facilities (Strategic Services) 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. • Implement building design, maintenance, and operational practices resulting in energy saving measures. Budget Allocation Funded by the General Fund, making up 5% of the fund’s expenditures. FY19 Accomplishments • Completed Phase I of City Works Retooling, Implementation of Site Wide Electronic Service Requests • Completed the Professional Building Electrical Upgrade (Safety, Increased Asset Lifecycle) • Completion of Story Mill Community Center Upgrade & Recreation Staff Relocation FY19 Strategic Plans 3.1.a Public Safety • Preliminary Design Support • Department will be participating with TEEX & MSU on Business Continuity 6.3.d Vulnerability Assessment & Resiliency Framework • FD Structures Inventory & Adaptive Capacity Interviews Performance Measures • Monitor the ratio of preventative vs. corrective vs. general maintenance for all City facilities. • Track the initiation to completion time for internal service requests. • Establish a Facility Condition Index (FCI) for all City owned buildings to help prioritize current and future needs. FY20 Strategic Plan 6.3.d Vulnerability Assessment & Resiliency Framework • FD Structures Inventory & Adaptive Capacity Interviews Facilities 5% General Fund 85 289 FY20 Budget Personnel No FTE Changes Operating Increase in service costs for overall 6% increase Capital Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change FACILITIES MANAGEMENT 010- General Fund 181,295 1,776,131 1,572,966 -11.4% Division Category FY18 Actual FY19 Budget FY20 Recommended % Change FACILITIES MANAGEMENT Salaries & Benefits 287,122 378,572 356,169 -5.9% FACILITIES MANAGEMENT Operating 884,773 1,110,528 1,183,297 6.6% FACILITIES MANAGEMENT Capital 9,400 287,031 33,500 -88.3% FACILITIES MANAGEMENT Debt Service - - 0.0% FACILITIES MANAGEMENT Transfers - - 0.0% TOTALS 1,181,295 1,776,131 1,572,966 Division Sub-Division FY18 Actual FY19 Budget FY20 Recommended % Change FACILITIES MANAGEMENT 1810- City Hall 482,402 761,900 558,589 -26.7% FACILITIES MANAGEMENT 1820- Fire Station #1 35,606 51,659 53,189 3.0% FACILITIES MANAGEMENT 1830- Shop Complex 75,074 109,159 109,190 0.0% FACILITIES MANAGEMENT 1840- Professional Building 164,537 320,504 292,825 -8.6% FACILITIES MANAGEMENT 1850- Senior Center 85,663 83,465 83,465 0.0% FACILITIES MANAGEMENT 1860- Library 281,705 368,670 383,489 4.0% FACILITIES MANAGEMENT 1870- Fire Station #2 16,458 21,535 22,945 6.5% FACILITIES MANAGEMENT 1880- Fire Station #3 39,850 59,239 69,274 16.9% TOTALS 1,181,295 1,776,131 1,572,966 Department Budget by Fund Department Budget by Category Department Budget by Division Salaries & Benefits 22% Operating76% Capital 2%Debt Service 0% Transfers 0% Fund - Division Project #Project Name Amount General Fund- Facilities GF274 CITY HALL BOZ CREEK IMPROVEMENT 33,500 86 290 Information Technology Major Objectives: • Support all technology related hardware/software for the city. • Maintain antivirus and other security related components to keep City data safe. • Design and support systems that provide continuity of operations in the event of a system failure. • Support Strategic plan objectives as they pertain to City Technology and communications. Budget Allocation Funded by the General Fund, making up 4% of the fund’s expenditures. FY19 Accomplishments • New SAN deployed and configured for replication • Redundant Internet Connectivity setup • Zuercher implemented on PD/Fire equipment FY19 Strategic Plans Department involved in 22 items • Communications Plan-Push Notifications-1.1a • Transparency and document access-1.1b • PD and FD Technology-3.1d • Public Safety Center-3.1a Performance Measures • Monitor response time related to help desk calls to ensure adequate level of service. • Monitor the percentage of total devices deployed compared to the total devices scheduled for deployment to gauge efficiency in deployments. FY20 Strategic Plan City Communication plan and protocol 1.1a • $10,000 Granicus Gov Delivery Communications Platform-Push Notifications. IT4% General Fund 60.6 62.5 64.0 57.0 52.0 54.0 56.0 58.0 60.0 62.0 64.0 66.0 FY16 Actual FY17 Actual FY18 Actual FY19 Approved Number of City Staff per Full Time Employee 87 291 FY20 Budget Personnel No FTE change Operating Increase due to software maintenance contracts Capital Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change INFORMATION TECHNOLOGY 010- General Fund 986,250 1,331,185 1,336,193 0.4% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change INFORMATION TECHNOLOGY Salaries & Benefits 606,199 712,461 740,212 3.9% INFORMATION TECHNOLOGY Operating 264,529 392,538 418,981 6.7% INFORMATION TECHNOLOGY Capital 115,522 226,186 177,000 -21.7% INFORMATION TECHNOLOGY Debt Service - - - 0.0% INFORMATION TECHNOLOGY Transfers - - - 0.0% TOTALS 986,250 1,331,185 1,336,193 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change INFORMATION TECHNOLOGY 1910- Information Technology 986,250 1,331,185 1,336,193 0.4% Department Budget by Fund Department Budget by Category Department Budget by Division Fund - Division Project #Project Name Amount General Fund- Cemetery GF268 SW MT VETERAN'S CEMETERY 45,000 General Fund-IT GF062 PERSONAL COMPUTER (PC) RE 50,000 General Fund-IT GF080 CITY-WIDE SWITCHES&ROUTRS 50,000 General Fund-IT GF265 SERVER REPLACEMENT GF 20,000 General Fund-IT GF289 SERVER FARM SOFTWARE UPGRADES 35,000 General Fund-IT GF310 APC REPLACE FOR DATA CEN 12,000 General Fund-IT GF312 ISCI FLASH UPGRADE CHALL 10,000 177,000 Salaries & Benefits 56% Operating 31% Capital13% Debt Service 0% Transfers 0% 88 292 Human Resources Major Objectives: • Process the City’s payroll and process all related payment and tax filings • Manage the City’s employee benefits • Monitor compliance with labor contracts, employee handbook, laws, rules, and regulations • Support Strategic Plan objectives as they pertain to the City’s workforce Budget Allocation Funded by the General Fund, making up 2% of the fund’s expenditures. FY19 Accomplishments • Recruitment- filled 136 positions • Payroll- 550 W-2s issued, 480 1095s issued • Implemented Advanced Scheduling with the Police Department FY19 Strategic Plans • 7.2a Be a “Best in Class” Employer We are engaging in pay studies for non-rep and open contracts to determine market pay for our positions. We received a Wellness Program study of our comparators and found to offer equivalent or better Wellness Program. • 7.2b Develop and Implement an Innovative Onboarding Program for New Employees - With our new benefits portal. • 7.3a Implement Department Staffing Plans - This has been our second year utilizing Staffing Plans. • 7.3d Set Diversity Goals In the past year we focused recruitment efforts on diversity by advertising specifically with veteran, women, and minority groups in addition to regular advertising Performance Measures • Calculate the turnover rate to better understand the costs related to staff retention. • Use selection ratios to understand the success of the recruitment program. • Use the recruitment cycle time (job posting to final offer) to measure the timeliness of the recruitment program FY20 Strategic Plan • Increase training budget to assist with achieving “Best in Class” Employer status with professional development offered to department employees. (7.2a) • Increase training budget to provide leadership development and other trainings for employees to be considered “well-trained” and enhance the attractiveness of the City as a place to work. (7.2a) • Continue to work to hire an HR Generalist in order to help us achieve Strategic Plan goals such as onboarding, employee recognition, and training to strive for employee excellence. This position requires additional office space to be configured as well as training. (7.2b,c) • Maintain diversity advertisement budget for focused effort on achieving diversity goals. (7.2d) HR 2% General Fund 89 293 FY20 Budget Personnel No FTE change Operating Increase in training to aid in efforts for Strategic Vision 7- High performing organization Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change HUMAN RESOURCES 010- General Fund 395,523 540,718 568,710 5.2% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change HUMAN RESOURCES Salaries & Benefits 333,344 413,518 467,510 13.1% HUMAN RESOURCES Operating 57,929 97,200 101,200 4.1% HUMAN RESOURCES Capital 4,250 30,000 0.0% HUMAN RESOURCES Debt Service - - 0.0% HUMAN RESOURCES Transfers - - 0.0% TOTALS 395,523 540,718 568,710 5.2% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change HUMAN RESOURCES 2010- Human Resources 395,523 540,718 568,710 5.2% Department Budget by Fund Department Budget by Category Department Budget by Division Salaries & Benefits 82% Operating18% Debt Service 0% Transfers 0% 90 294 Planning (Community Development) Major Objectives: • Continually working toward making the planning process accessible, understandable and efficient for citizens • Evaluate and make recommendations to the Planning Board, City Commission and the Director of Public Works on all annexations and subdivisions of land • Review business licenses for compliance with the city’s zoning ordinance Budget Allocation Planning Fund – Special Revenue Fund FY19 Accomplishments City Projects lead by Planning Division • Community Plan Updates • NCOD Review • Downtown Bozeman Improvement Plan FY19 Strategic Plans • Increasing Outreach & Community Engagement by working with Neighborhoods to coordinate public events to provide general public access (Engaged Community | Objective Items 1.1 & 1.2) • Promote informed conversation on growth through the Community Plan (Growth Policy) Update process by offering numerous community involvement opportunities throughout the process. (Well Planned City | Objective Item 4.1a) • Continuously adding data and information available to the public through GIS tracking tools (Well Planned City | Objective Item 4.1c) • Update the Downtown Plan (Well Planned City | Objective 4.4a) Performance Measures • Track the median compliance time from complaint to closure for zoning code compliance complaints to show the effectiveness of the code compliance program and gauge our public education communication efforts. • Measure the median review time for projects and plans by type to both identify where additional efficiencies can be made internally as well as infer public and design professionals understanding of the planning process. • Calculate the median number of work days to review a building permit for zoning compliance to identify planning’s influence on the total building permit review time. FY20 Strategic Plan • Community Engagement Plan – Increase community engagement in City decision making process (Objective 1.2) • Public Agencies Collaboration – Foster successful collaboration with other public agencies and build on these successes (Objective 1.3e) • Update Historic Preservation Guidelines – Update the NCOD Guidelines and promote continued investment in the city’s inventory of historic structures relative to ongoing infill and redevelopment (Objective 4.2d) - 500,000 1,000,000 1,500,000 2,000,000 FY18 Actual FY19 Budget FY20 Approved 100-Community Development Fund 91 295 FY20 Budget Personnel Addition, of a Planner II and funding half of a City Attorney position Operating Consulting services increase with the next round NCOD and public outreach funding Capital Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change COMMUNITY DEVELOPMENT 100-Community Development Fund 1,219,680 1,661,194 1,873,348 12.8% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change COMMUNITY DEVELOPMENT Salaries & Benefits 881,772 990,695 1,416,573 43.0% COMMUNITY DEVELOPMENT Operating 337,908 369,281 421,775 14.2% COMMUNITY DEVELOPMENT Capital - 301,218 35,000 -88.4% COMMUNITY DEVELOPMENT Debt Service - - - 0.0% COMMUNITY DEVELOPMENT Transfers - - - 0.0% TOTALS 1,219,680 1,661,194 1,873,348 53.6% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change COMMUNITY DEVELOPMENT 1610- Planning Operations 452,402 798,553 793,670 -0.6% COMMUNITY DEVELOPMENT 1620- Development Review 441,268 513,353 633,524 23.4% COMMUNITY DEVELOPMENT 1630- Long-Range Planning 320,555 349,288 446,154 27.7% TOTALS 1,214,225 1,661,194 1,873,348 Department Budget by Category Department Budget by Fund Department Budget by Division Fund Fund - Division Project #Project Name Amount 100 Planning CD06 PLANNING VEHICLE REPLACEMENT REQUEST 35,000 Salaries & Benefits76% Operating 22% Capital 2%Debt Service 0% Transfers 0% 92 296 Municipal Court Major Objectives: • Continue providing an up-to-date court docket. • Plan an efficient operating space for the new BPSC. • Begin planning for a smooth transition to the New Bozeman Public Safety Center. • Maintain an efficient collection system concentrating on CitepayUSA.com, Municipal Services Bureau, and collection of fines and restitution. Budget Allocation Funded mainly by General Fund The Veteran Court is provided for by a grant and accounted for in the Special revenue fund 178- Veteran Treatment Grant. Performance Measures Municipal Court 3% General Fund General Fund86% Veteran Treatment Grant Fund14% 7,057 5,947 6,221 6,500 6,8007,672 6,436 7,046 7,200 7,500 0 2,000 4,000 6,000 8,000 10,000 FY16 FY17 FY18 FY19Approved FY20Recommended Citations Officer Citations Total Citations $114,060 $137,702 $125,057 $130,000 $132,500 $- $50,000 $100,000 $150,000 Restitution Collected 10 9 7 7 7 0 2 4 6 8 10 12 FY16 FY17 FY18 FY19 Approved FY20 Recommended Number of Appeals 93 297 FY20 Budget Personnel FTE increase of .10 for part time judge Operating Increase in grant funding operations Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change MUNICIPAL COURT 010- General Fund 829,465 867,868 908,059 4.6% MUNICIPAL COURT 178- Veteran Court 40,028 87,156 152,346 74.8% TOTALS 869,493 955,024 1,060,405 Department Category FY18 Actual FY19 Budget FY20 Recommended % Change MUNICIPAL COURT Salaries & Benefits 689,743 697,956 776,463 11.2% MUNICIPAL COURT Operating 170,573 257,068 281,682 9.6% MUNICIPAL COURT Capital 8,235 - - MUNICIPAL COURT Debt Service 942 - 1,900 0.0% MUNICIPAL COURT Transfers - - - 0.0% TOTALS 869,493 955,024 1,060,045 11.0% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change MUNICIPAL COURT 1310-Municipal Court 869,493 955,024 1,060,045 11.0% Department Budget by Category Department Budget by Fund Department Budget by Division Salaries & Benefits 73% Operating 27% Capital0% Debt Service 0%Transfers 0% 94 298 Public Safety 95 299 Public Safety Police- The Police Department budget accounts for costs associated with providing all law enforcement services within 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 responsible for detecting, preventing, and investigating all crimes occurring within the City as well as providing a broad range of public safety services. Fire Department - The Fire Department provides fire, rescue, hazardous materials, and emergency medical services throughout Bozeman, while ensuring that firefighters are equipped and trained to nationally recognized consensus standards. Additionally the department maintains a fire prevention program that is comprised of fire and life safety inspections, community outreach, school programs, emergency preparedness, and public education. Building Inspection (Community Development) - The Building Division unit accounts for expenditures utilized to monitor construction projects within the City of Bozeman jurisdictional area as allowed by state law. The intent of this budget unit is to provide guidance and to enforce the minimum building code standards in order to safeguard life, health, property and public welfare by regulating and controlling the use, design, quality of materials and construction of buildings and structures within the Bozeman city limits. Parking (Economic Development)- The Parking Services Division (PSD), recently joined to the Economic Development Department, has responsibility for managing and enforcing public parking within the City of Bozeman, to include the Downtown (B-3), MSU & Bozeman High Residential Parking Permit Districts, Bridger Park Downtown Garage, the Black/Rouse/N Willson/S. Willson surface lots, and on all on-street parking. 96 300 Police Major Objectives: • Detect, investigate, and proactively deter criminal activity and apprehend and hold criminal offenders accountable. • Provide assistance to those who cannot care for themselves or those in danger of physical harm. • Develop positive programs, in partnership with the members of our community, to address public safety issues through community engagement and outreach. Budget Allocation Funded mainly by the General Fund Additional programs are funded by special revenue funds. FY19 Accomplishments • Continued to maximize efficiencies with non- sworn positions to leverage existing sworn officer staffing for patrolling and emergency response. • Commenced implementation of new Records Management System replacing 20-year-old legacy system. FY19 Strategic Plans • 3.1a, Develop a Criminal Justice Facility Plan: With partners, developed a plan with Fire, Courts and Prosecution for the Bozeman Public Safety Center • 3.1d Update Public Safety Technology Systems- in partnership with Gallatin County updated RMS and CAD for public safety services Performance Measures FY20 Strategic Plan • 3.1.d Update Public Safety Technology Systems- Continued implementation of records management system. • 3.2.c Develop a City/County Social Service Network. Work with Gallatin County and other community partners on a comprehensive strategy for addressing mental health, substance abuse and addiction and housing challenges. Police26% General Fund 50,359 47,136 50,548 51,000 51,750 44,000 45,000 46,000 47,000 48,000 49,000 50,000 51,000 52,000 53,000 FY16 FY17 FY18 FY19Approved FY20Recommended Total Calls for Service 95.22 86.01 71.8 80.0 82.0 0 20 40 60 80 100 120 140 160 FY16 FY17 FY18 FY19Approved FY20Recommended Crime Rate per 1,000 Citizens Average Crime Rate for Comparable MT Communities 691 673 650 625 580 600 620 640 660 680 700 FY17 FY18 FY19Approved FY20Recommended Mental Health-Related Calls for Service (officer hours) 97 301 FY20 Budget Personnel One FTE added - Police Officer Operating Additional $44,000 for Community Therapist Program and the return of OVW grant funding Capital The capital items are as approved capital plan: Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change POLICE 010- General Fund 8,624,258 8,541,786 8,994,621 5.3% POLICE 125- Drug Forfeiture 270,686 231,210 242,052 4.7% POLICE 138- Law & Justice Ctr. Prepaid Rent 19,125 19,125 19,125 0.0% POLICE 139- Police Special Revenue 35,406 - 40,000 100.0% POLICE 140- Police Domestic Violence 44,989 - 187,040 100.0% TOTALS 8,994,464 8,792,121 9,482,838 Department Category FY18 Actual FY19 Budget FY20 Recommended % Change POLICE Salaries & Benefits 7,926,143 7,534,344 7,866,925 4.4% POLICE Operating 921,845 870,777 1,157,913 33.0% POLICE Capital 114,636 387,000 458,000 18.3% POLICE Debt Service - - - 0.0% POLICE Transfers - - - 0.0% TOTALS 8,962,624 8,792,121 9,482,838 7.9% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change POLICE 3010- Police Operations 6,779,742 6,250,961 7,237,004 15.8% POLICE 3020- Crime Control & Investigations 1,726,254 2,069,015 1,743,165 -15.7% POLICE 3040- Drug Forfeiture 270,686 231,210 242,052 4.7% POLICE 3070- Animal Control 182,436 240,935 260,617 8.2% TOTALS 8,959,118 8,792,121 9,482,838 Department Budget by Category Department Budget by Fund Department Budget by Division Fund - Division Project #Project Name Amount General Fund- Police GF053 PATROL CAR & EQUIP RPLCMT 118,000 General Fund- Police GF166 COUNTY RADIO LEASE 295,000 General Fund- Police GF292 MOBILE DATA EQUIP 30,000 General Fund- Police GF293 NON-PATROL CAR NEW VEHICLES 15,000 458,000 Salaries & Benefits 83% Operating 12% Capital 5%Debt Service0%Transfers 0% 98 302 Fire Major Objectives: • Continued Implementation of Fire Master Plan • Continued pursuit of Fire Department Accreditation • Bozeman Public Safety Center Budget Allocation Fire is supported operationally through the General Fund. The Fire Department is supported also by special revenue funds with one being for its capital replacements; FY19 Accomplishments • Bozeman Public Safety Center and Fire Department Strategic Plan • Training Program – Blue Card IMS, Fire Instructor I and Fire Officer I, 14 Safety Officers FY19 Strategic Plans • 1.3.c Enhance our relationship with Montana State University • 3.1.b Improve emergency preparedness plans • 3.1.c Implement fire station location plan • 3.1.d Update public safety technology systems • 3.2.b Perform a community risk assessment Performance Measures • Calculate the emergency call response times (call processing, turnout, and response). FY20 Strategic Plan • 1.3.c Enhance our relationship with Montana State University - COOP / Fire Station 2 • 3.1.b Improve Emergency Preparedness Plans - COOP / Community Program • 3.1.c Implement Fire Station Location Plan - BPSC / Fire Station 2 • 3.1.d Update Public Safety Technology Systems - Fire Station Alerting, FY-19 carry over project and continue work with CAD system and 911 • 3.2.b Perform a Community Risk Assessment - Finish work started in FY-19 Fire16% General Fund 010-General Fund83% 113-Fire Impact Fees 0% 183-Fire Department Special Revenue 1% 187-Fire Capital & Equipment Replacement… 5,567 6,264 5,798 6,000 6,088 4319 4696 4589 4800 4700 806 1682 1642 1700 1724 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 FY16 FY17 FY18 FY19Approved FY20Recommended Incident Numbers Number of Apparatus Used For All Runs Total Calls Number of Overlapping Incidents 214 326 357 240 240 0 100 200 300 400 FY16 FY17 FY18 FY19 Approved FY20 RecommendedHoursTraining Hours Per Fire Fighter National Standard (240 hours) 99 303 FY20 Budget Personnel Addition of three Fire Fighters, per contract to make a shift change Operating Operational increases due inflation and increases in vehicle maintenance charges Capital Funded by special revenue fund. Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change FIRE 010- General Fund 6,449,144 5,327,652 5,500,325 0.0% FIRE 113- Fire Impact Fees 44,984 - - 0.0% FIRE 183- Fire Department Special Revenue 89,252 40,000 50,000 0.0% FIRE 187- Fire Capital & Equipment Replacement 601,041 606,000 1,068,000 100.0% TOTALS 7,184,421 5,973,652 6,618,325 Department Category FY18 Actual FY19 Budget FY20 Recommended % Change FIRE Salaries & Benefits 5,849,654 4,924,814 5,064,356 2.8% FIRE Operating 751,630 442,838 485,969 9.7% FIRE Capital 583,137 606,000 468,000 -22.8% FIRE Debt Service - - - 0.0% FIRE Transfers - - 600,000 0.0% TOTALS 7,184,421 5,973,652 6,618,325 10.8% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change FIRE 3110- Fire Administration 535,770 517,893 411,028 -20.6% FIRE 3120- Fire Operations 6,586,364 5,369,959 6,119,897 14.0% FIRE 3130- Operational Readiness 43,761 47,000 48,000 2.1% FIRE 3140- Fire Prevention 14,850 25,400 26,000 2.4% FIRE 3160- Hazardous Materials 3,676 13,400 13,400 0.0% TOTALS 7,184,421 5,973,652 6,618,325 Department Budget by Fund Department Budget by Category Department Budget by Division Salaries & Benefits 77% Operating 7% Capital7% Debt Service 0%Transfers 9% Fund Fund - Division Project #Project Name Amount 187 Fire Capital FE06 Radio Replacement Program 250,000 187 Fire Capital FE12 Personal Protective Equip 38,000 187 Fire Capital FE17 Wildlands Apparatus 55,000 187 Fire Capital FE18 Light Duty Vehicles 80,000 187 Fire Capital FE19 Utility Vehicle 45,000 468,000 187 Fire Capital & Equipment Replacement Total 100 304 Building Inspection (Community Development) Major Objectives: • Recruit staff to provide an adequate level of qualified staff to handle our current and projected workload. • Build a diverse workforce in both experience and education without sacrificing our work quality, service and minimum performance standards. • Revaluate and adjust the Division operational budget to eliminate any unnecessary spending but ensure funding for all of the necessary/required Division expenditures. Budget Allocation Department is funded in a single fund, Building Inspection Fund – Special Revenue Fund. FY19 Accomplishments • Continued working to improve coordination and communications between the Building Division, other city departments and our customers. • Provided expert technical advice and consultation for our customers. • Continued working with other city departments to simplify the overall permitting process. FY19 Strategic Plans • Continue to provide educational opportunities for our customers and our staff. • Maintain the Building Division web page to keep it functioning as a valuable tool and information source for our customers. Performance Measures FY20 Strategic Plan • Continue to make staff time available allowing customers to make appointments with Plans Examiners and the Building Official to review plans and code requirements. • Continue with our Winter Training Program to provide building code based classes for our staff and our customers. - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 FY18 Actual FY19 Budget FY20Recommended 115-Building Inspection Fund $200 $101 $176 $85 $170 $164 $130 $132 $67 $160 $0 $50 $100 $150 $200 $250 $300 $350 $400 Millions of DollarsBuilding Permit Valuation Commercial Permits Valuation Residential Permits Valuation 661 221 372 656 350 270 370 407 135 300 0 200 400 600 800 1,000 FY16 FY17 FY18 FY19Approved FY20Recommended Residential Permits Multi-Unit Single Family 101 305 FY20 Budget Personnel No changes in FTE Operating Increase due to overhead charges from administrative functions Capital No capital items for Fy20 and none currently in schedule in the CIP FY20-FY24 Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change BUILDING INSPECTION 115- Building Inspection Fund 2,118,822 2,660,416 2,668,026 0.3% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change BUILDING INSPECTION Salaries & Benefits 1,341,328 1,702,127 1,880,081 10.5% BUILDING INSPECTION Operating 777,494 706,608 787,945 11.5% BUILDING INSPECTION Capital - 251,681 - -100.0% TOTALS 2,118,822 2,660,416 2,668,026 0.3% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change BUILDING INSPECTION Buidling Inspection 2,118,822 2,660,416 2,668,026 0.3% Department Budget by Category Department Budget by Fund Department Budget by Division Salaries & Benefits 70% Operating 30% Capital 0% 102 306 Parking (Economic Development) Major Objectives: • Regulate the use of on-street and off-street public parking to the best use of our citizens through equitable enforcement and management practices. • Operate the Parking Services Division in an effective and fiscally sustainable manner. • Facilitate a prosperous local economic environment through the provision of safe, convenient, available, and cost-appropriate public parking resources. Budget Allocation Parking Fund- Enterprise fund FY19 Accomplishments • Implementation of industry-best parking technology, including fixed and mobile license- plate-recognition technology, digital customer parking portal, and new parking data platform. • Legislative adoption of Ordinance # 2013 (12/2018) updating and improving parking regulations within the Bozeman Municipal Code, • Significant progress toward satisfaction of the 2016 Strategic Parking Management Plan, to include creation of digital parking inventory (by ‘blockface’) of the Downtown, new brand- specific parking signage, renaming all public parking lots, implementation of best practices for management and enforcement. FY19 Strategic Plans 4.2 (c) Parking Management by District • The Parking Services Division, in collaboration with Economic Development Department, Neighborhoods, and Bozeman Parking Commission continues to pursue satisfaction of the 2016 Strategic Parking Management Performance Measures • Calculate the percent of downtown land area devoted to off-street parking, to demonstrate a flat or declining trend over time (i.e. more land available for other uses). • Measure the effectiveness of on-street parking management by demonstrating that, over time, an increasing percentage of downtown block faces have occupancy rates within, but not exceeding, the target range of 75-85%. • Measure fiscal health of the public parking management system by tracking, over time, a ratio of total revenue per paid public parking space to total cost per paid public parking space. FY20 Strategic Plan • 1.4 Business and Institutional Partnerships - Explore opportunities for partnerships with key business groups and non-profit organizations. • 4.2 High Quality Urban Approach - Parking Management by District - Develop a comprehensive, integrated approach to parking management for the downtown, midtown, university, and other districts. Consider a range of solutions including both on-street parking and parking garages. • 4.3 Strategic Infrastructure Choices - Prioritize long-term investment and maintenance for existing and new infrastructure. • 4.4 Vibrant Downtown, Districts & Centers - Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers – including higher densities and intensification of use in these key areas. - 500,000 1,000,000 1,500,000 FY18 Actual FY19 Budget FY20 Recommended 650-Parking Enterprise Fund 103 307 FY20 Budget Personnel No FTE added Operating Increase in costs, such as DMV fees, postage and roof snow removal Capital Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change PARKING 650- Parking Enterprise Fund 1,293,116 859,371 1,082,669 26.0% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change PARKING Salaries & Benefits 389,115 353,632 426,764 20.7% PARKING Operating 744,665 393,708 425,905 8.2% PARKING Capital 159,336 112,031 230,000 105.3% PARKING Debt Service - - - 0.0% PARKING Transfers - - - 0.0% TOTALS 1,293,116 859,371 1,082,669 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change PARKING 3310- Parking Administration 455,340 356,839 326,950 -8.4% PARKING 3320- Parking Operations/Enforcement 310,341 284,727 380,283 33.6% PARKING 3330- Parking Garage Operations 527,435 217,805 375,436 72.4% TOTALS 1,293,116 859,371 1,082,669 Department Budget by Category Department Budget by Fund Department Budget by Division Fund Fund - Division Project #Project Name Amount 650 Parking P004 SURFACE PARKING LOT HARDWARE & SOFTWARE SYSTEMS 15,000 650 Parking P020 PARKING VEHICLE LEASES 45,000 650 Parking P023 PARKING TECHNOLOGY PHASE II 150,000 650 Parking NEW IVR - Voice message system 20,000 230,000 650 Parking Total Salaries & Benefits 40% Operating 39% Capital 21% Debt Service0%Transfers 0% 104 308 Public Works 105 309 Public Works Public Works Administration- Public Works administration oversees and supports the Public Works’ divisions. Engineering - Provide professional level technical support to the other Public Works divisions and other City Departments. GIS & Asset Management (Strategic Services)- Geographic Information System provides the foundation for data collection, analysis and visualization for many aspects of city government. Asset Management leverages this data to minimize risk and life-cycle costs to effectively deliver best-in-class service throughout the community. Solidwaste - The Solid Waste Division (SWD) proudly serves the City of Bozeman Solid Waste customers by providing them with a myriad of programs and services that effectively and efficiently manage municipal solid waste generated within the Bozeman City limits. Stormwater- 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 and treatment infrastructure projects to safeguard the public, environment, and local waterways from pollution. Streets Maintenance - 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 in a quick, convenient, safe and comfortable manner while minimizing harmful effects on the environment. Vehicle Maintenance - The Vehicle Maintenance budget unit accounts for the costs of repairing and maintaining vehicles of the City. The budget unit operates under an internal service fund. Charges are assessed against departments, which have vehicles repaired. Wastewater – Operations - Providing and maintaining a wastewater collection system for the City. The Division maintains a program of inspecting, cleaning, root cutting, repairing sanitary sewer mains and manholes, and tapping for new wastewater stubs. Wastewater operations is also responsible for maintaining the City’s eight sanitary sewer lift stations. Wastewater- Water Reclamation Facility (WRF) - The WRF is an award-winning plant with the main objective being to protect and enhance the water quality of the East Gallatin River where it discharges. Through its beneficial reuse program, the WRF maintains compliance with the Montana Pollutant Discharge Elimination System (MPDES) discharge permit administered by the DEQ. Water – Operations - Operating and maintaining the City’s water transmission and distribution system. We are responsible for: locating, maintaining, and repairing existing water lines and appurtenances; overseeing installation of new water lines; installing and rotating water meters and reading all meters monthly. Water- Water Treatment Plant (WTP) - Water Treatment Plants maintain a quality drinking water supply. The City has 2 WTPs: 22 MGD Sourdough Plant and 3.7 MGD Lyman Creek Plant. All plants are operated 24 hours per day, 365 days per year. Water- Water Conservation - Protect and enhance water resources through conservation in order to meet the IWRP’s 50-year demand reduction target. 106 310 Public Works Admin Major Objectives: • Coordinate the activities of the Public Works Dept. Divisions. • Establish and maintain policies, procedures, and protocol for the department’s functions. • Provide general oversight of activities affected by new federal and state mandates. • Assure master plan implementation is cost- effective and that infrastructure improvements are constructed in a quality manner to provide reliable service for immediate and long-term needs. Budget Allocation Public Works Admin Internal Service Fund FY19 Accomplishments The Administrative Division has functioned well with anticipation of a new Public Works Director. FY19 Strategic Plans 7.3 C Improve Departmental Collaboration-Worked with Finance and all Public Works divisions on the CIP in a new system. Performance Measures This function oversees the performance of all of public works. FY20 Strategic Plan Oversee all of Public Works Strategic Plan efforts in FY20 Public Works Admin 24% 750-PW Admin 107 311 FY20 Budget Personnel No FTE changes Operating Increase for utility billing machines for envelope stuffing and opening Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change PUBLIC WORKS ADMIN 750- Public Services Admin. - 577,353 693,816 20.2% PUBLIC WORKS ADMIN 600- Water Fund 261,220 - - 0.0% TOTALS 261,220 577,353 693,816 Department Category FY18 Actual FY19 Budget FY20 Recommended % Change PUBLIC WORKS ADMIN Salaries & Benefits 215,755 456,850 562,011 23.0% PUBLIC WORKS ADMIN Operating 45,465 64,455 131,805 104.5% PUBLIC WORKS ADMIN Capital - 56,048 - -100.0% PUBLIC WORKS ADMIN Debt Service - - - 0.0% PUBLIC WORKS ADMIN Transfers - - - 0.0% TOTALS 261,220 577,353 693,816 20.2% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change PUBLIC WORKS ADMIN 4010- Public Services Administration 261,220 577,353 693,816 20.2% TOTALS 261,220 577,353 693,816 Department Budget by Category Department Budget by Fund Department Budget by Division Salaries & Benefits81% Operating19% Capital 0%Debt Service0%Transfers0% 108 312 Engineering Major Objectives: • Design and oversee construction of the annual street, water, and wastewater replacement projects • Review and ensure that public infrastructure installed by private sector conforms to the City’s standards • Develop and implement the City’s water, wastewater, stormwater, water resources, and transportation master plans and associated capital budgets Budget Allocation Engineering personnel and basic operating costs are funded Public Works Admin Internal Service Fund: The Division also oversees the Impact Fee fund and Arterial & Collector funds, which fund large capital expansion projects. FY19 Accomplishments • 5.30 million gallon water storage tank • Baxter Lane corridor upgrades • Completed 220 substantial development application reviews (compared to 162 the prior year) FY19 Strategic Plans Strategic vision 4 many accomplishments were made to achieve this vision statement along with communication to citizens. Performance Measures FY20 Strategic Plan Continue work with Strategic vision 4 action items along with communication to citizens. Also, focus on the vision statement 7 and working towards best practices and service delivery. ENGINEERING 43% 750-PW Admin Public Works Admin Fund5% Impact Fee funds and A&C95% $561,000 $1,645,000 $2,578,690 $1,727,250 $2,707,625 0 $1M $2M $3M FY16 FY17 FY18 FY19Approved FY20Recommended Value of Internal Design Work $4,886,122 $11,775,085 $10,881,540 $7,537,809 $9,876,770 $3,532,630 $3,382,760 $2,943,755 $3,210,202 $2,892,959 0 $2M $4M $6M $8M $10M $12M $14M FY16 FY17 FY18 FY19 Approved FY20 Recommended Value of Consultant Work *Actual FY19 & FY20 numbers will vary due to the start/completion date of the approved projects. Value of Associated Construction Projects Value of Consultant Design Contracts 162 226 220 230 231 0 50 100 150 200 250 FY16 FY17 FY18 FY19 Approved FY20 Recommended Development Application Reviews 109 313 FY20 Budget Personnel 1 FTE add- Engineering Inspector Operating Increases in outside consulting work for the division Capital Oversees capital in the impact fee funds and the Arterial & Collector fund, see listing in the Capital section of the budget book Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change ENGINEERING 750- Public Services Admin. - 1,016,765 1,255,758 23.5% ENGINEERING 600- Water Fund 498,128 - - 0.0% ENGINEERING 114- Street Impact Fee 7,824,644 6,418,000 7,565,195 17.9% ENGINEERING 141- Street Arterial Construction 1,741,416 3,568,000 2,396,000 -32.8% ENGINEERING 610- Water Impact Fee 432,135 2,186,020 6,963,052 218.5% ENGINEERING 630- Wastewater Impact Fee 211,611 8,625,000 7,343,417 -14.9% TOTALS 10,707,934 21,813,785 25,523,422 Department Category FY18 Actual FY19 Budget FY20 Recommended % Change ENGINEERING Salaries & Benefits 401,387 812,815 973,288 19.7% ENGINEERING Operating 528,895 363,950 683,470 87.8% ENGINEERING Capital 9,777,652 20,037,020 22,440,729 12.0% ENGINEERING Debt Service - - 530,012 0.0% ENGINEERING Transfers - 600,000 895,923 0.0% TOTALS 10,707,934 21,813,785 25,523,422 17.0% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change PUBLIC WORKS ADMIN 4020- Engineering 498,128 1,016,765 1,255,758 23.5% PUBLIC WORKS ADMIN Impact Fee funds and A&C 10,209,806 20,797,020 24,267,664 16.7% TOTALS 10,707,934 21,813,785 25,523,422 Department Budget by Fund Department Budget by Category Department Budget by Division Salaries & Benefits 4% Operating 3% Capital 88% Debt Service2% Transfers 3% 110 314 GIS/Asset Management(Strategic Services) Major Objectives: • Reduce operations & maintenance costs by leveraging data to be more efficient • Plan for future growth while mitigating issues related to aging infrastructure • Measure, monitor and communicate performance for city services • Engage citizens and provide transparency to effectively communicate value Budget Allocation Funded by the Public Works Admin Internal Service Fund FY19 Accomplishments • AVL Replacements (x23 +9) • Service Requests for VM & Facilities • Forestry o Mobile Data Collection Tool o Work Order Management (“light”) o Automated Dashboards o Public Web Apps FY19 Strategic Plans • Community Risk Assessment (3.2.b) • Land Use & Infrastructure Tracking (4.1.c) • Parks & Trails Maintenance District (4.3.a) • Art Trail Map (5.2.a) Performance Measures • Track the web mapping applications: “Hours of Use” FY20 Strategic Plan • System Integrations (7.3.b) • Data Analysis Tools (7.4.a) • Performance Measures (7.4.b & 7.4.c) • Service Delivery Expectations (7.4.d) GIS/ ASSET MANAGEMENT 34% 750-PW Admin Level of Service (defined) Overall Risk (analyzed) Deferred Maintenance (declining) Preventative Maintenance (in place) Measured Outcomes (communicated) 75 77 83 90 112 0 20 40 60 80 100 120 FY16 FY17 FY18 FY19Approved FY20Recommended Cityworks Users 111 315 FY20 Budget Personnel One FTE added a GIS Analyst Operating Increases due to software maintenance contracts and computer replacements Capital Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change GIS/ASSET MANGT 750- Public Services Admin. - 794,339 995,486 25.3% GIS/ASSET MANGT 600- Water Fund 690,673 - - 0.0% TOTALS 690,673 794,339 995,486 Department Category FY18 Actual FY19 Budget FY20 Recommended % Change GIS/ASSET MANGT Salaries & Benefits 348,498 424,238 553,949 30.6% GIS/ASSET MANGT Operating 236,075 286,601 366,537 27.9% GIS/ASSET MANGT Capital 106,100 83,500 75,000 -10.2% GIS/ASSET MANGT Debt Service - - - 0.0% GIS/ASSET MANGT Transfers - - - 0.0% TOTALS 690,673 794,339 995,486 25.3% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change PUBLIC WORKS ADMIN 4025- GIS 690,673 794,339 995,486 25.3% TOTALS 690,673 794,339 995,486 Department Budget by Fund Department Budget by Category Department Budget by Division Fund Fund - Division Project #Project Name Amount 750 Public Works Admin GIS03 ASSET MANAGEMENT SOFTWARE 75,000 75,000 750 Public Works Admin Total Salaries & Benefits56%Operating37% Capital 7% Debt Service0% Transfers 0% 112 316 Solid Waste Major Objectives: • Offer quality service to the residents of Bozeman • Promote waste reduction thru recycling efforts • Optimize operational efficiencies Budget Allocation Solid Waste Fund – Enterprise Fund The Division also oversees the Landfill Post Closure fund: FY19 Accomplishments • Streamline reports for finance to bill for services • Route Optimization currently in progress FY19 Strategic Plans • Increasing Solid Waste Recycling Services throughout the community was identified in 6.3b Climate Action section of the Strategic Plan. Recycling service accounts have increase by 15% this past year. • Currently working on an automated yard waste/food scrap collection program. Feedstock to include food scraps & soiled paper items (pizza boxes, napkins). Performance Measures FY20 Strategic Plan Increasing Solid Waste Recycling Services throughout the community was identified in 6.3b Climate Action section of the Strategic Plan. - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 FY18 Actual FY19 Budget FY20 Recommended 640-Solid Waste Fund - 100,000 200,000 300,000 400,000 FY18 Actual FY19 Budget FY20 Recommended 641 -Landfill Post Closure 27.7%32.7%34.2%37.3%38.3% 72.3%67.3%65.8%62.7%61.7% 9,600 10,100 11,173 11,500 12,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 FY16 FY17 FY18 FY19Approved FY20Recommended Residential Customers Recycling & Refuse Customers Refuse Only Customer - 5,000 10,000 15,000 20,000 25,000 30,000 FY16 FY17 FY18 FY19 Approved FY20 Recommended Tonnage Diverted From The Landfill Residential Refuse Commercial Refuse Roll-Off Refuse Residential Recycling Commercial Recycling Compost 113 317 FY20 Budget Personnel Removing two short-term workers, .40 FTE, and adding two Solid Waste Operators for a total of 1.6 FTE increase Operating Increases in costs of operations for gas and recycling charges Capital Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change SOLIDWASTE 640- Solid Waste Fund 4,969,132 3,764,084 5,154,777 36.9% SOLIDWASTE 641 - Landfill Post Closure 364,789 311,417 287,417 0.0% TOTALS 5,333,921 4,075,501 5,442,194 Department Category FY18 Actual FY19 Budget FY20 Recommended % Change SOLIDWASTE Salaries & Benefits 1,463,392 1,351,142 1,465,420 8.5% SOLIDWASTE Operating 3,072,475 2,562,942 3,025,357 18.0% SOLIDWASTE Capital 798,054 161,417 951,417 489.4% SOLIDWASTE Debt Service - - - 0.0% SOLIDWASTE Transfers - - - 0.0% TOTALS 5,333,921 4,075,501 5,442,194 33.5% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change SOLIDWASTE 5810-Collection Operation 4,689,402 3,466,438 4,691,539 35.3% SOLIDWASTE 5820- Recycling 279,730 297,646 463,238 55.6% SOLIDWASTE Landfill Post Closure 364,789 311,417 287,417 -7.7% TOTALS 5,333,921 4,075,501 5,442,194 Department Budget by Fund Department Budget by Category Department Budget by Division Fund Fund - Division Project #Project Name Amount 640 Solidwaste SW32 Front Load Truck Replacement 270,000 640 Solidwaste SW36 Side Load Truck - New 290,000 640 Solidwaste SW53 Pickup Truck 30,000 640 Solidwaste SW55 Side Load Truck 300,000 890,000 641 Landfill Closure Closure Costs 61,417 61,417 640 Solidwaste Total 641 Landfill ClosureTotal Salaries & Benefits 27% Operating56% Capital 17% Debt Service0% Transfers 0% 114 318 Stormwater Major Objectives: • Protect the public from flooding and pipe failures • Improve stream health • Comply with environmental regulations Budget Allocation Stormwater Fund – Enterprise Fund FY19 Accomplishments • Inspected and maintained 22% of the public storm sewer • Emergency ordinance update, providing broader authority • Completed 5 capital projects, initiated 15 FY19 Strategic Plans • Worked towards strategic vision 4 for a well- planned City FY20 Strategic Plan • Continue working towards strategic vision 4 for a well-planned City • Work towards vision statement 7 High Performing Organization Performance Measures - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 FY18 Actual FY19 Budget FY20 Recommended 670-Storm Water Fund FY17 Actual n/a FY18 Actual D- FY19 Approved D+ FY20 Recom. C- ** See the City of Bozeman and Montana State University Stormwater Management Plan for more information at https://www.bozeman.net/government/stormwater/learn-about-stormwater. 115 319 FY20 Budget Personnel Adding one FTE Stormwater Technician Operating Increases in costs of operations and initial costs for new employee. Capital Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change STORM WATER 670- Storm Water Fund 1,918,645 1,444,302 1,660,521 15.0% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change STORM WATER Salaries & Benefits 548,094 408,583 580,938 42.2% STORM WATER Operating 286,662 240,373 268,372 11.6% STORM WATER Capital 889,821 635,000 650,000 2.4% STORM WATER Debt Service 194,068 160,346 161,211 0.5% STORM WATER Transfers - - - 0.0% TOTALS 1,918,645 1,444,302 1,660,521 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change STORM WATER 4510- Admin., Enforc. & Mapping 845,025 646,678 720,299 11.4% STORM WATER 4520- Operations & Mtc. 215,929 197,624 290,222 46.9% STORM WATER 4530- Construction 857,691 600,000 650,000 8.3% TOTALS 1,918,645 1,444,302 1,660,521 Department Budget by Category Department Budget by Division Department Budget by Fund Fund Fund - Division Project #Project Name Amount 670 Stormwater STDM01 DOWNTOWN TRUNK LINE REHAB 400,000 670 Stormwater STDM02 MANLEY DITCH REHAB 100,000 670 Stormwater STUO01 STORMWATER FACILITY PLAN 150,000 650,000 670 Stormwater Total Salaries & Benefits 35% Operating16% Capital39% Debt Service10% Transfers 0% 116 320 Street Maintenance 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. Budget Allocation The main source of funding is the Street Maintenance Fund- Special Revenue Fund, there are other special revenue funds and a construction fund that make up the total funding: FY19 Accomplishments • Milled and Overlay In House- Lindley Place, Ice Pond Road, 3 blocks of S. 4th and Interior Landfill Road. • Working with MRL, replaced crossing at Broadway and Mendenhall. • Maintained and cleared City streets during record snowfall year with no school or road closures FY19 Strategic Plans • 1.1 Outreach- Use of Next Door, Facebook and Twitter to keep our citizens informed where we are working. • 3.3e Friendly Community- Be aware of pedestrian facilities in our snow operations such as clearing ADA ramps and HC parking spaces. • 4.5c,d Housing and Transportation Choices- Enhancing the Pedestrian and Cycling System. Sweeping and cleaning bike lanes year round. Infrastructure for Non-motorized Transportation. Performance Measures • Calculate the materials swept per mile traveled. • Monitor the citywide Pavement Condition Index (PCI). Strategic Plan • 2.1 Business Growth- Support access to businesses by customers and employees by having a 3AM Commercial Snow Route getting routes plowed and snow removed before 8AM. • 4.4 Vibrant Downtown, Districts & Centers- Sweep Downtown and Midtown weekly. Prioritize Downtown snow removal to facilitate ease of parking during winter months. • 4.5c,d Housing and Transportation Choices- Enhancing the Pedestrian and Cycling System. Sweeping and cleaning bike lanes year round. 110- Gas Tax Fund21% 111- Street Mainenance Fund 64% 146-170, 181-182, 200-243- Lighting Districts 5% 504- Constructio n Funds 10% 15.0 15.7 14.8 14.4 13.8 12.5 13.0 13.5 14.0 14.5 15.0 15.5 16.0 FY16 FY17 FY18 FY19 Approved FY20 Recommended Street Mileage per Full Time Employee 117 321 FY20 Budget Personnel 1.20 FTE added and decreasing .25 for a total increase of .95 FTE - Adding a City Streets worker and a short-term worker, and removing a seasonal worker Operating Operational costs increasing with maintaining more roads and an increase in general construction costs. Capital Many replacement and new vehicles and annual street projects, see Capital section for all the detailed capital listing for the Street maintenance fund and Gas tax fund Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change STREETS 010- General Fund 186,331 - - 0.0% STREETS 108- Community Transportaion Fund - - - 0.0% STREETS 110- Gas Tax Fund 1,155,422 1,171,500 2,120,350 81.0% STREETS 111- Street Mainenance Fund 5,958,135 5,974,325 6,462,343 8.2% STREETS 146-170, 181-182, 200-243- Lighting Districts 474,089 472,517 477,499 1.1% STREETS 504- Construction Funds 747,589 284,011 1,072,000 277.5% TOTALS 8,521,566 7,902,353 10,132,192 Department Category FY18 Actual FY19 Budget FY20 Recommended % Change STREETS Salaries & Benefits 1,676,893 1,629,339 1,756,594 7.8% STREETS Operating 3,100,433 2,736,818 3,810,135 39.2% STREETS Capital 2,206,475 2,525,511 2,822,080 11.7% STREETS Debt Service 223,985 315,207 310,800 -1.4% STREETS Transfers 1,313,800 695,478 1,432,583 106.0% TOTALS 8,521,586 7,902,353 10,132,192 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change STREETS 4110- Street Operations 3,864,945 4,526,247 5,090,270 12.5% STREETS 4130- Street Construction 3,590,831 2,284,665 4,045,083 77.1% STREETS 4150- Street Lighting 562,969 530,517 535,499 0.9% STREETS 4171- Traffic Signs & Markers 502,821 560,924 461,340 -17.8% TOTALS 8,521,566 7,902,353 10,132,192 Department Budget by Category Department Budget by Division Department Budget by Fund Salaries & Benefits17% Operating 38% Capital 28% Debt Service3% Transfers 14% 118 322 Vehicle Maintenance Major Objectives: • To maintain vehicles and equipment in good running condition thereby enabling various City personnel to perform 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. Budget Allocation Internal Service Fund- Vehicle Maintenance Internal Service Fund FY19 Accomplishments • Worked with the Fire Department on a maintenance and repair plan including supplying a mechanic on site during large events to monitor equipment. • Schedule seasonal equipment months before season starts. • Kept Library bookmobile in service with zero complaints of illiteracy. FY19 Strategic Plans • 6.3 Climate Action- Reduce community and municipal Greenhouse Gas (GHG) emissions, increase the supply of clean and renewable energy: foster related businesses. Vehicle Maintenance staff addresses vehicle emissions concerns a soon as we are aware of it. No “just drive it with the check engine light on”. One of our mechanics is a certified alternative fuel technician. Performance Measures • Calculate and monitor preventative vs reactive maintenance • Measure the percentage of uptime that vehicles are operational o FY18 Water/Sewer: 98% o FY18 Streets: 91% o FY18 Police: 94% FY20 Strategic Plan • 6.3 Climate Action- Reduce community and municipal Greenhouse Gas (GHG) emissions, increase the supply of clean and renewable energy: foster related businesses. Vehicle Maintenance staff addresses vehicle emissions concerns a soon as we are aware of it. No “just drive it with the check engine light on”. One of our mechanics is a certified alternative fuel technician. 1,150,000 1,200,000 1,250,000 1,300,000 1,350,000 1,400,000 710-Vehicle Maintenance Fund 4 4 4 5 6 7 7.4 8.5 9.5 0 5 10 15 20 25 FY18 FY19Approved FY20Recommended Days From Initiation to Completion for Internal Vehicle Service Requests (by priority) High Medium Low 119 323 FY20 Budget Personnel Adding 1 FTE a City Service Worker Operating Increase in fleet has increased operating costs Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change VEHICLE MAINTENANCE 710- Vehicle Maintenance Fund 1,382,402 1,259,462 1,387,800 10.2% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change VEHICLE MAINTENANCE Salaries & Benefits 492,099 481,127 541,468 12.5% VEHICLE MAINTENANCE Operating 890,303 778,335 846,332 8.7% VEHICLE MAINTENANCE Capital - - - 0.0% VEHICLE MAINTENANCE Debt Service - - - 0.0% VEHICLE MAINTENANCE Transfers - - - 0.0% TOTALS 1,382,402 1,259,462 1,387,800 10.2% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change VEHICLE MAINTENANCE 6010- Vehicle Maintenance Shop 1,382,402 1,259,462 1,387,800 10.2% Department Budget by Category Department Budget by Division Department Budget by Fund Salaries & Benefits 59% Operating41% Capital0%Debt Service0%Transfers0% 120 324 Wastewater- Operations Major Objectives: • Adequately maintain and locate the City’s wastewater system including manholes, wastewater collection and transmission systems and lift stations • Clean our entire collections system annually to minimize stoppages • Televise the existing sewer infrastructure to determine problems and overall condition of sewer mains, enabling repairs in a timely manner and helping to prioritize renovation projects funded through CIP Budget Allocation Funded by the Wastewater Enterprise Fund FY19 Accomplishments • More aggressively engaging educating and inspecting businesses for Fats Oils and Grease issues. • Lower than median sewer backups caused by blockages in the main. - 1.3 / 100 miles of pipe / year. • Started to plan for replacing root bound sewer connections in New Hyaliteview. FY19 Strategic Plans • 1.3C Enhance our relationship with MSU- We now meet quarterly with Montana State to communicate water and sewer information. We are assisting them with goal setting and utility maintenance programs and they are helping us by working on cross connection control and sewer infiltration issues. Performance Measures FY20 Strategic Plan • 7.4 a Develop Data Analysis tools- This was a pilot year where we used Cityworks data pushed to an excel spreadsheet to schedule maintenance. All sewer maintenance that we do had a rate and pace determined and a number of days scheduled to complete. Wastewater Operations44% Wastewater Fund 0.14 1.3 1.3 0.5 1 0 0.5 1 1.5 2 FY16 FY17 FY18 FY19Approved FY20Recommended Number of Overflow Events per 100 Miles of Main National Standard 47.58 50 61.2 50 50 0 10 20 30 40 50 60 70 FY16 FY17 FY18 FY19Approved FY20Recommended Miles of Root Cut Mains 60 30.9 26 60 50 0 10 20 30 40 50 60 70 FY16 FY17 FY18 FY19Approved FY20Recommended Miles of Flushed Mains 121 325 FY20 Budget Personnel Adding 1 FTE- Sewer Operator Operating Minor adjustments showing a reduction in operating costs Capital Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change WASTEWATER OPERATIONS 620- Wastewater Fund 3,881,356 3,472,368 3,505,788 1.0% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change WASTEWATER OPERATIONS Salaries & Benefits 852,401 856,835 926,727 8.2% WASTEWATER OPERATIONS Operating 2,204,492 1,513,033 1,456,561 -3.7% WASTEWATER OPERATIONS Capital 824,463 1,102,500 1,122,500 1.8% WASTEWATER OPERATIONS Debt Service - - - 0.0% WASTEWATER OPERATIONS Transfers - - - 0.0% TOTALS 3,881,356 3,472,368 3,505,788 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change WASTEWATER 5210- Wastewater Operations 2,689,658 2,309,868 2,343,288 1.4% WASTEWATER 5220- Utilities Locates 2,282 92,900 92,900 0.0% WASTEWATER 5230- Wastewater Services 1,025 5,000 5,000 0.0% WASTEWATER 5240- Wastewater Construction 1,149,623 1,022,500 1,022,500 0.0% WASTEWATER 5250- Manholes 28,495 25,000 25,000 0.0% WASTEWATER 5260- Televising 6,058 12,100 12,100 0.0% WASTEWATER 5280- Main Repairs 4,215 5,000 5,000 0.0% TOTALS 3,881,356 3,472,368 3,505,788 Department Budget by Category Department Budget by Fund Department Budget by Division Salaries & Benefits26% Operating 42% Capital 32% Debt Service 0% Transfers 0% Fund Fund - Division Project #Project Name Amount 620 Wastewater - Operations WW07 ANNUAL WASTEWATER PIPE REPLACEMENT PROGRAM-DESIGN 22,500 620 Wastewater - Operations WW08 WASTEWATER PIPE REPLACEMENT PROGRAM- CONSTRUCTION 1,000,000 122 326 Wastewater- Water Reclamation Facility Major Objectives: • Protect and enhance the water quality of the East Gallatin River • Consistently achieve compliance with all aspects of the city’s Discharge permit (MPDES) and in most cases be below allotted limit. • Comply with all EPA 503 Bio-solids requirements and regulations, minimizing unpleasant orders. Budget Allocation FY19 Accomplishments • Continued with asset maintenance management through CIP program and operating budget. Including, • Meeting Montana Department of Environmental Quality discharge permit requirements. • Continued with staff education. Three employees passed State of Montana Wastewater Certification. FY19 Strategic Plans • 1.3e) Enhance our relationship with State and Federal Agencies: Ongoing permit negotiation with DEQ and EPA requesting discharge variance. • 6.4d) Climate Change Adaption and Mitigation: Completed Digesters #1 and #2 clean and refurbishment. To increase methane production used as primary heat for the WRF. • 7.2a) Be a “Best in Class” Employer: 10 out of 15 WRF employees are State of Montana Wastewater Certified. One took test in Feb. three are actively studying for certification test. Performance Measures • Calculate and monitor preventative vs corrective maintenance. FY20 Strategic Plan • 1.1a) Outreach – 3.4) Active Recreation -There is a fishing access off the WRF parking lot. The river joined the WRF discharge and continued on. • 1.1a) Outreach -the WRF puts out a superior effluent discharge. Having the river back to the original location help communicate to the public through the fishing access the quality of the WRFs effluent discharge. • 3.4) Active Recreation: -The fishing access was a very popular spot for not only fishing but also dog walking and short hiking. Fish have been caught literally feet from the WRFs discharge. Water Reclamation Facility 56% Wastewater Fund $1,300 $1,600 $1,749 $2,040 $2,162 $0 $500 $1,000 $1,500 $2,000 $2,500 FY16 FY17 FY18 FY19Approved FY20Recommended Cost per Million Gallons of Wastewater Flow Treated 123 327 FY20 Budget Personnel No change Operating Inflationary costs to operations Capital Debt Service There was an assumption made for a possible debt issuance in FY19. The debt service is actually occurring in the Impact Fee fund and will be budgeted for payment there going forward. Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change WATER RECLAIMATION FACILITY 620- Wastewater Fund 3,949,129 7,443,304 4,379,824 -41.2% Division Category FY18 Actual FY19 Budget FY20 Recommended % Change WATER RECLAIMATION FACILITY Salaries & Benefits 1,134,935 1,144,278 1,202,252 5.1% WATER RECLAIMATION FACILITY Operating 2,224,923 2,572,967 2,677,572 4.1% WATER RECLAIMATION FACILITY Capital 589,271 2,250,000 500,000 -77.8% WATER RECLAIMATION FACILITY Debt Service - 1,476,059 - -100.0% WATER RECLAIMATION FACILITY Transfers - - - 0.0% TOTALS 3,949,129 7,443,304 4,379,824 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change WASTEWATER 5610- WRF Operations 2,990,112 4,861,605 3,235,372 -33.5% WASTEWATER 5620- Laboratory 440,783 487,490 511,052 4.8% WASTEWATER 5630- Sludge Injection 430,554 553,400 568,000 2.6% WASTEWATER 5640- Pretreatment 4,115 64,750 65,400 1.0% WASTEWATER 5650- WRF Construction 83,565 1,476,059 - -100.0% TOTALS 3,949,129 7,443,304 4,379,824 Department Budget by Fund Department Budget by Category Department Budget by Division Fund Fund - Division Project #Project Name Amount 620 Wastewater WW54 REPLACE #1783 - 1995 FORD DUMP TRUNK 100,000 620 Wastewater WW69 SMALL WORKS PROJECTS 100,000 620 Wastewater WW96 EAST GALLATIN RIVER AVULSION RESTORATION 300,000 Salaries & Benefits28% Operating61% Capital11% Debt Service 0% Transfers 0% 124 328 Water - Operations Major Objectives: • Maintain the City’s 288 miles of the water distribution system, hydrants, valves, meters and pressure reducing valves. • Respond to water distribution problems 24 hrs a day 7 days a week. Budget Allocation Funded by the Water Enterprise fund FY19 Accomplishments • Selected and trained a contractor to perform one call locates during business hours. • Achieved a near perfect score in the ISO evaluation 38.66 out of 40 possible points. FY19 Strategic Plans 6.1 Clean Water Supplies Continued Lead Service Line removal both within the department and outside contractors down to 70 known lead service lines. Performance Measures FY20 Strategic Plan 6.2 Protect Local Air Quality Purchase another meter gateway will eliminate some of the driving we now do getting meter reads. Water Operations 45% Water Fund 125 329 FY20 Budget Personnel Adding 1 FTE- Water Operator Operating Inflationary increases in the costs of operations Capital Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change WATER OPERATIONS 600- Water Fund 3,769,696 6,651,133 4,533,824 -31.8% Division Category FY18 Actual FY19 Budget FY20 Recommended % Change WATER OPERATIONS Salaries & Benefits 1,247,340 1,145,232 1,196,370 4.5% WATER OPERATIONS Operating 1,784,898 2,016,892 2,114,954 4.9% WATER OPERATIONS Capital 737,458 3,489,009 1,222,500 -65.0% WATER OPERATIONS Debt Service - - - 0.0% WATER OPERATIONS Transfers - - - 0.0% TOTALS 3,769,696 6,651,133 4,533,824 Department Division FY18 Actual FY19Budget FY20 Recommended % Change WATER 5010- Uwater Operations 2,751,971 2,366,084 2,477,727 4.7% WATER 5020- Utility Locates 4,484 95,450 93,750 -1.8% WATER 5030- Water Services 39,181 35,000 35,000 0.0% WATER 5040- Water Construction 242,744 3,469,009 1,222,500 -64.8% WATER 5060- Meter Reading 664,942 568,090 587,347 3.4% WATER 5070- Hydrants 35,926 80,000 80,000 0.0% WATER 5080- Water Valves 11,468 17,500 17,500 0.0% WATER 5090- Main Repairs 1,890 20,000 20,000 0.0% TOTALS 3,752,606 6,651,133 4,533,824 Department Budget by Category Department Budget by Fund Department Budget by Division Salaries & Benefits 26% Operating47% Capital27% Debt Service0% Transfers 0% Fund Fund - Division Project #Project Name Amount 600 Water - Operations W03 ANNUAL WATER PIPE REPLACEMENT 22,500 600 Water - Operations W04-20 WATER PIPE REPLACEMENT PROGRAM - CONSTRUCTION 1,200,000 126 330 Water- Water Treatment Plant Major Objectives: • Protect public health through optimization of the Sourdough and Lyman Creek Plants. • Maintain high-quality drinking water of low turbidity, void of contaminants, and meeting water supply demands of the City. • Monitoring and maintaining WTP facilities to ensure current needs are met and to anticipate future water quality and quantity needs. Budget Allocation Funded by the Water Enterprise fund FY19 Accomplishments • 5.3 MG finished water storage tank online before end of FY19 • Lyman Creek spring overflow monitoring equipment completed • Hilltop tank mixer will be installed before the end of FY19 FY19 Strategic Plans 6.1 Clean Water Supplies Performance Measures FY20 Strategic Plan 6.1 Clean Water Supplies Water Treatment Plant 50% Water Fund 127 331 FY20 Budget Personnel No changes Operating Reduction in consulting services for capital projects for the prior year Capital Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change WATER PLANT 600- Water Fund 2,562,029 5,013,637 5,088,729 1.5% Division Category FY18 Actual FY19 Budget FY20 Recommended % Change WATER PLANT Salaries & Benefits 887,562 792,975 827,179 4.3% WATER PLANT Operating 1,573,809 2,340,032 2,091,920 -10.6% WATER PLANT Capital 100,658 715,000 1,004,000 40.4% WATER PLANT Debt Service - 1,165,630 1,165,630 0.0% WATER PLANT Transfers - - - TOTALS 2,562,029 5,013,637 5,088,729 Department Division FY18 Actual FY19Budget FY20 Recommended % Change WATER 4610- Water Plant Operations 2,526,029 5,013,637 5,088,729 1.5% Department Budget by Fund Department Budget by Category Department Budget by Division Fund Fund - Division Project #Project Name Amount 600 Water W62 REPLACE #3446 - WTP GMC SIERRA PICKUP 45,000 600 Water W66 SCADA METERS, TRANSDUCERS & COMMUNICATIONS 10,000 600 Water W84 SOURDOUGH TANK INSPECTION & IMPROVEMENTS 600,000 600 Water W91 TURBIDIMETER REPLACEMENT 14,000 600 Water W94 MYSTIC LAKE BEAVER DECEIVER 35,000 600 Water W96 SOURDOUGH RAW TRANSMISSION MAIN FLOW CONTROL VALVE AND METER 300,000 Salaries & Benefits 16% Operating 41% Capital20% Debt Service23% Transfers0% 128 332 Water Conservation Major Objectives: • Establishing and strengthening the community’s water conservation ethic. • Ensuring adequate water supplies are available; to meet current and future demands, in times of drought, for emergency response and long term drought mitigation Budget Allocation Funded by the Water Enterprise Fund FY19 Accomplishments • Grant extension approval & construction contract for the Sunset Hills Cemetery Water Conservation Project • Drought tolerant demonstration garden installation at Museum of the Rockies • Increased participation in sprinkler system assessments by 65%. FY19 Strategic Plans • 1.3.c.d Enhanced Relationships -Outreach Program, Demo Garden, MSU Student Masters Project (Drought Communication) • A Well Planned City: 4.3.d Explore Sustainable Technology - Dropcountr customer water use portal development • A Sustainable Environment: 6.1.a Watershed Management -Municipal watershed data collection, improvements to drought monitoring to Performance Measures FY20 Strategic Plan • An Engaged Community: 1.1 Outreach and 1.2 Community Engagement • A Well Planned City: 4.3.d Explore Sustainable Technology -CIP WC02: Subscription to Customer Water Use Portal, Dropcountr • A Sustainable Environment: 6.1.a Watershed Management – CIP WC05 and WC06, along with outreach and incentive programs. Water Conservation 5% Water Fund 385 216 300 275 300 127 133 137 135 140 107 60 128 150 160 32 48 67 70 70 0 100 200 300 400 500 600 700 800 FY16 FY17 FY18 FY19Approved FY20Recommended Water Conservation Rebates Toilets Clothes Washers Showerheads Landscape & Irrigation System 24 42 65 60 70 0 20 40 60 80 FY16 FY17 FY18 FY19Approved FY20Recommended Number of Outdoor Sprinkler System Assessments 0 20 40 60 80 100 120 140 - 10,000 20,000 30,000 40,000 50,000 60,000 FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18 GPCDPopulationGallons Per Capita Per Day (GPCD) Water Demand & Population Total Water Demand (GPCD)Population 111 GPCD Avg. 121 GPCD Avg. 129 333 FY20 Budget Personnel Addition of a short-term worker 0.20 FTE Operating Increases in operations and expanding the program Capital None Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change WATER CONSERVATION 600- Water Fund 316,114 534,477 546,285 2.2% Division Category FY18 Actual FY19 Budget FY20 Recommended % Change WATER CONSERVATION Salaries & Benefits 102,575 147,377 150,185 1.9% WATER CONSERVATION Operating 185,921 301,100 393,600 30.7% WATER CONSERVATION Capital 27,618 86,000 - -100.0% WATER CONSERVATION Debt Service - - 2,500 100.0% WATER CONSERVATION Transfers - - - 0.0% TOTALS 316,114 534,477 546,285 Department Division FY18 Actual FY19Budget FY20 Recommended % Change WATER 4640- Water Conservation 316,114 534,477 546,285 2.2% Department Budget by Fund Department Budget by Category Department Budget by Division Salaries & Benefits 28% Operating 72% Capital 0%Debt Service 0%Transfers 0% 130 334 Public Welfare 131 335 Public Welfare Recreation (Parks & Recreation)- The Recreation Division is responsible for identifying the recreation needs of our growing community and offering quality programs in diverse interest areas that satisfy those needs. The division has a committed staff that remains focused on program quality and customer satisfaction while offering all-inclusive opportunities in outdoor recreation, sports, fitness, and cultural arts. The Aquatics Division is comprised of one year- round indoor facility, the Swim Center and one outdoor seasonal facility, Bogert Pool. Forestry (Parks & Recreation)- The Forestry Division 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. Parks (Parks & Recreation)- The Parks Division is responsible for the overall development and maintenance of 44 public parks, 52 + miles of trails and associated sports fields and open space within the City limits. Cemetery (Parks & Recreation)- 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 with assistance from the Cemetery Division. The cemetery currently contains over 16,000 burial sites, three columbariums, nine dedicated affiliation areas and ample room for expansion. Library- The Bozeman Public Library creates opportunities that inspire curiosity, exploration and connection. The Library is the community cultural center that connects all Bozeman citizens to their neighbors and the world. Economic Development - Our community strengthens and diversifies the local economy by supporting business sectors that create & sustain mid- to high-paying jobs, enhancing the high quality of life in the greater Bozeman Sustainability (Strategic Services) - Coordinates with city departments and community stakeholders to promote a sustainable environment and reduce greenhouse gas emissions. Affordable Housing (Community Development) - As Bozeman grows, the city is working to develop a long-term plan to meet the housing needs of its residents through the Affordable Housing Program. 132 336 Recreation (Parks & Recreation) Major Objectives: • Offer recreational opportunities and facilities that promote health and wellness and improve the quality of life for the Bozeman community. • To provide recreation and fitness opportunities to the community in an environment that encourages and instructs individuals how to be safe in, on, and around water. Budget Allocation Funded by the General Fund Oversees the Story Mansion Operating Special Revenue fund FY19 Accomplishments • Policy and fee schedule for facility use and programs implemented • Full Day Summer Camps added • Story Mill Community Center opened to the public in July 2018 • State Swim Meet. Biggest meet ever held at the Swim Center, 454 swimmers. FY19 Strategic Plans • 1.3 b) Enhance our relationship with Bozeman School District #7 • 1.4 Business and Institutional Partnerships- Explore opportunities for partnerships with key business groups and non-profit organizations. • 3.4 Active Recreation-Facilitate and promote recreational opportunities and active health programs and facilities Performance Measures Recreation • Identify the percentage of total program hours that are at full capacity relative to the program hours that are canceled due to low registration numbers, to track program performance and community interest. Aquatics • Measure the number of hours we are unable to staff according to the MT Health Code 10/20 rule. • Track the number of individuals on swimming lesson wait lists to identify if we are meeting the community needs. FY20 Strategic Plan • 1.3 b) Enhance our relationship with Bozeman School District #7 • 1.4 Business and Institutional Partnerships- Explore opportunities for partnerships with key business groups and non-profit organizations. • 3.4 Active Recreation-Facilitate and promote recreational opportunities and active health programs and facilities. Recreation6% General Fund 320 71 121 414 216 220 489 150 155 605 700 0 200 400 600 800 1,000 1,200 1,400 FY18 FY19Approved FY20Recommended Facility Rentals Beall Park Recreation Center Lindley Center Story Mansion Story Mill Community Center 133 337 FY20 Budget Personnel No changes with the exception of separating out aquatics payroll to their division code Operating Minor adjustments that in total was a reduction Capital Divison Fund # FY18 Actual FY19 Budget FY20 Recommended % Change RECREATION 010- General Fund 1,749,189 1,943,909 1,939,793 -0.2% RECREATION 189- Story Mansion Operating Fund 31,946 57,302 40,792 -28.8% TOTALS 1,781,135 2,001,211 1,980,585 Division Category FY18 Actual FY19 Budget FY20 Recommended % Change RECREATION Salaries & Benefits 931,306 1,059,330 1,131,688 6.8% RECREATION Operating 578,533 825,381 811,817 -1.6% RECREATION Capital 271,296 116,500 37,080 100.0% RECREATION Debt Service - - - 0.0% RECREATION Transfers - - - 0.0% TOTALS 1,781,135 2,001,211 1,980,585 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change PARKS AND RECREATION 8010- Recreation Operations 1,010,730 1,148,297 569,528 -50.4% PARKS AND RECREATION 8020- Swim Center 322,811 457,565 1,036,463 126.5% PARKS AND RECREATION 8030- Bogert Pool 61,721 89,576 86,576 -3.3% PARKS AND RECREATION 8040- Facilities: Lindley, Beall & Story 327,870 231,083 205,743 -11.0% PARKS AND RECREATION 8050- Recreation Programs 58,003 74,690 82,275 10.2% TOTALS 1,781,135 2,001,211 1,980,585 Department Budget by Category Department Budget by Division Department Budget by Fund Fund Fund - Division Project #Project Name Amount 10 General Fund- Recreation GF296 SWIM CENTER – FRONT FURNACE 37,080 Salaries & Benefits 57% Operating 41% Capital2%Debt Service 0% Transfers 0% 134 338 Forestry (Parks & Recreation) Major Objectives: • Continue both reactive and proactive maintenance for Bozeman’s 23,946 public trees in boulevards, developed city parks, and city- owned properties. • Manage potential risk factors through site inspections, proper pruning, and high-risk tree removals. • Identify and correct encroaching vegetation utilizing Forestry staff (public trees) and Code Compliance (private trees). • Maintain Cost Share and Voucher Replacement programs, while increasing Public Outreach to improve tree diversity and resident interaction. Budget Allocation Funded by the Tree Maintenance Special Revenue Fund FY19 Accomplishments • Completed City-Wide Tree Inventory of 23,946 public trees: location, species, condition, size, and work history. • Contract services for high-risk tree removals • Spring Planting - Record Number of Tree Planting (284) FY19 Strategic Plans Climate Change Adaptation and Mitigation - Increase the community's resiliency and preparedness in response to climate change. Performance Measures * Track the percentage of Proactive vs Reactive maintenance FY20 Strategic Plan • 6.2 Protect Local Air Quality • 6.3 Climate Action -d) Climate Change Adaptation and Mitigation - Increase the community's resiliency and preparedness in response to climate change. • 6.5 Parks, Trails & Open Space • 6.6 Habitat 600,000 650,000 700,000 750,000 800,000 850,000 FY18 Actual FY19 Budget FY20Recommended 112-Tree Maintenance Fund 35%34%33% 15% 20% 25% 30% 35% 40% FY18 FY19Approved FY20Recommended Percent of Population that is Ash Goal 135 339 FY20 Budget Personnel No changes Operating Only minor adjustment for a small reduction Capital Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change FORESTRY 112- Tree Maintenance Fund 701,164 825,577 787,767 -4.6% Division Category FY18 Actual FY19 Budget FY20 Recommended % Change FORRESTRY Salaries & Benefits 432,444 435,400 455,103 4.5% FORRESTRY Operating 143,947 244,177 242,664 -0.6% FORRESTRY Capital 124,773 146,000 90,000 -38.4% FORRESTRY Debt Service - - - 0.0% FORRESTRY Transfers - - - 0.0% TOTALS 701,164 825,577 787,767 -4.6% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change PARKS AND RECREATION 7710- Tree Maintenance 701,164 825,577 787,767 -4.6% Department Budget by Category Department Budget by Division Department Budget by Fund Fund Fund - Division Project #Project Name Amount 112 Forestry FOR14 Forestry Chip Truck 90,000 Salaries & Benefits 58% Operating 31% Capital11% Debt Service0%Transfers0% 136 340 Parks (Parks & Recreation) Major Objectives: • Continue adding, upgrading, and maintaining safe and quality sports fields, trail corridors, community gathering areas, and playground equipment. • Provide expanded maintenance and care to restrooms, litter control, pet waste disposal, turf care, and water conservation efforts. • Improve, maintain, and expand the trail system in coordination with development and our partners. • Continue to upgrade park signage for uniformity and less maintenance. Budget Allocation Funded mainly with the General Fund Special Revenue fund also fund project operations and projects FY19 Accomplishments • Opening on the Bozeman Sports Park in April of 2019. Installation of two synthetic turf fields in spring/summer of 2019. • Assumed maintenance responsibilities of the Story Mill Community Center grounds, with the Story Mill Community Park slated to open later this coming July. • Continued work, research and development of a Parks and Trails District model for the City of Bozeman. FY19 Strategic Plans • 3.4 Active Recreation • 4.3 Strategic Infrastructure (Parks and Trails District.) Performance Measures • Track the total number of users & agreements (Park & Rec. programs, special events, community teams, traveling teams, etc.) FY20 Strategic Plan • 6.5 Parks, Trails & Open Space (PROST update) • 3.4- Active Recreation- Facilitate and promote recreational opportunities and active health programs and facilities. • 4.3- Prioritize long-term investment and maintenance for existing and new infrastructure. A.) Develop a comprehensive parks maintenance and facilities plan. Parks7% General Fund 137 341 FY20 Budget Personnel No changes Operating Increases in operational costs with new Sports Park and Storymill being added Capital Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change PARKS 010- General Fund 1,742,002 2,267,621 2,258,500 -0.4% PARKS 128- FWP Management Areas - 8,000 8,000 0.0% PARKS 132 - Bogart Park 10,175 5,000 5,000 0.0% PARKS 199- Sports Park - - 51,000 PARKS 563- 568- Parks & Open Space Bond 8,076,445 - - 0.0% TOTALS 9,828,622 2,280,621 2,322,500 Division Category FY18 Actual FY19 Budget FY20 Recommended % Change PARKS Salaries & Benefits 930,799 1,079,632 1,031,864 -4.4% PARKS Operating 740,134 874,989 957,636 9.4% PARKS Capital 8,157,689 326,000 333,000 2.1% PARKS Debt Service - - - 0.0% PARKS Transfers - - 0.0% TOTALS 9,828,622 2,280,621 2,322,500 Department Division FY18 Actual FY19 Budget FY20 Approved % Change PARKS AND RECREATION 7610- Parks Operations 9,828,622 2,280,621 2,322,500 1.8% Department Budget by Category Department Budget by Division Department Budget by Fund Salaries & Benefits45% Operating 41% Capital14% Debt Service 0% Transfers 0% Fund Fund - Division Project #Project Name Amount 10 General Fund- Parks GF254 25TH STREET FROM OAK TO TSCHACHE 333,000 138 342 Cemetery (Parks & Recreation) Major Objectives: Develop new cemetery blocks and lots for internments as demand dictates. Provide an easily accessible, safe, and serene setting for cemetery/gravesite visitation. Continued excellence in providing professional and dignified internment services. Budget Allocation Funding through the General Fund FY19 Accomplishments • Completed final layout, grading and design on the Southwestern Montana Veteran's Cemetery. Rough grading and dirt removal commenced in the fall of 2018. • Final design and bid notification for the Cemetery Irrigation project (GF 231), with construction commencing in the spring of 2019. • In coordination with the Cemetery Advisory Board, improvements made to the Memorial Garden and updates made to the Sunset Hills guide/pamphlet. FY19 Strategic Plans 6.1- Clean Water Supplies-Ensure adequate supplies of clean water for today and tomorrow -Project Gf 231- converting the cemetery from treated water to surface water. Saving 258 acre feet of treated water per year. Performance Measures • Track partnerships with user groups and stakeholders to illustrate the impact of cooperation and collaboration. (BSF, Cyclocross, farmer agreement, etc.) FY20 Strategic Plan • 6.A Sustainable Environment • 6.1-Clean Water Supplies- Ensure adequate supplies of clean water for today and tomorrow. GF 231- Cemetery Irrigation Project • 6.2- Protect local air quality- The cemetery’s diverse array of trees, turf and open space contributes to a vast amount of carbon sequestration, resulting in oxygen production, storm water reduction and measurable cooling effect upon the environment. Cemetery 2% General Fund 139 343 FY20 Budget Personnel No changes Operating Slight increase in operational costs Capital Division Fund FY18 Actual FY19 Budget FY20 Recommended % Change CEMETERY 010- General Fund 521,580 821,433 541,628 -34.1% Division Category FY18 Actual FY19 Budget FY20 Recommended % Change CEMETERY Salaries & Benefits 326,694 329,669 354,994 7.7% CEMETERY Operating 150,019 137,764 141,634 2.8% CEMETERY Capital 44,867 354,000 45,000 -87.3% CEMETERY Debt Service - - - 0.0% CEMETERY Transfers - - - 0.0% TOTALS 521,580 821,433 541,628 -34.1% Department Division FY18 Actual FY19 Budget FY20 Recommended % Change PARKS AND RECREATION 7210- Cemetery Operations 521,580 821,433 541,628 -34.1% Department Budget by Category Department Budget by Division Department Budget by Fund Fund Fund - Division Project #Project Name Amount 10 General Fund- Cemetery GF268 SW MT VETERAN'S CEMETERY 45,000 Salaries & Benefits 66% Operating 26% Capital 8% Debt Service 0%Transfers 0% 140 344 Library Major Objectives: • Space - Design & Implement an expansion to ensure that the Library has adequate space to Bozeman's growing needs. • Technology - Use technology & digital resources to enhance the Library experience. • Programming - Provide unique programming to inform & enrich the lives of target audiences of Library users. • Outreach - Engage new & broader audiences in taking advantage of the Library's resources. Budget Allocation Funded through the General fund A construction fund is setup for Library Maintenance which is funded by up to 2% of unspent appropriation from the prior year. FY19 Accomplishments • Library Strategic Plan for 2018-2021 - Continue to implement the strategic plan: making progress on increasing Library Space, Technology, Programming and Outreach. • Bookmobile –”Information on the Go” - In our first year on the road, the Bookmobile checked out 23,586 items in FY2018. This was 12% of the total items checked out at Bozeman Public Library. Out of the 23,586 total checkouts, 17,527 items were children’s books. FY19 Strategic Plans 5.1 a) Library Expansion Planning -Currently working on an RFQ for a Master Plan of the existing building and grounds. Partnership with the Bozeman Public Schools for a BPL presence in the new High School Library. Performance Measures • Measure children’s use of the Bookmobile over time to track the mobile library’s effectiveness in helping to raise the rate of early childhood literacy within the Bozeman community. FY20 Strategic Plan • 5.1 a) Library Expansion Planning -Currently working on an RFQ for a Master Plan of the existing building and grounds. Partnership with the Bozeman Public Schools for a BPL presence in the new High School Library. • Partner with Economic Development to make progress on City Strategic Plan number 2.1 – Business Growth. Library7% General Fund 0 200 400 600 800 1000 0 5,000 10,000 15,000 20,000 25,000 Programs ProvidedProgram AttendanceLibrary Programs Offered vs Attendance Adult Programs Attendance Children's Programs Attendance Adult Programs Provided Children's Programs Provided 141 345 FY20 Budget Personnel No change Operating Increase in subscriptions and updating the carpet throughout the Library Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change LIBRARY 010- General Fund 2,024,518 2,181,510 2,237,974 2.6% LIBRARY 561- Library Depreciation Fund 18,612 32,000 280,000 775.0% TOTALS 2,043,130 2,213,510 2,517,974 Department Category FY18 Actual FY19 Budget FY20 Recommended % Change LIBRARY Salaries & Benefits 1,545,603 1,606,758 1,687,401 5.0% LIBRARY Operating 497,527 606,752 830,573 36.9% LIBRARY Capital - - - 0.0% LIBRARY Debt Service - - - 0.0% LIBRARY Transfers - - - 0.0% TOTALS 2,043,130 2,213,510 2,517,974 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change LIBRARY 7810- Library Operations 739,014 894,028 1,030,157 15.2% LIBRARY 7820- Technical Services 300,147 310,913 318,245 2.4% LIBRARY 7830- Information Services 418,587 439,099 495,148 12.8% LIBRARY 7840- Children's Services 164,777 157,009 193,661 23.3% LIBRARY 7850- Circulation Services 420,605 412,461 480,763 16.6% TOTALS 2,043,130 2,213,510 2,517,974 Department Budget by Category Department Budget by Division Department Budget by Fund Salaries & Benefits67% Operating33% Capital 0%Debt Service0% Transfers0% 142 346 Economic Development Major Objectives: • Increasing economic activity that improves our community’s prosperity; • Supporting innovation and encouraging growth in mid-to-high wage sectors; and • Facilitating the creation of mid-to-high paying jobs/high quality employment to match the high quality of life. Budget Allocation Funded Operationally from the General Fund Oversees the programming of Special Revenue Fund, which includes Urban Renewal Districts. FY19 Accomplishments • Big Sky Trust Fund - $442,500 Awarded, 75 bobs (49 created to date) • Collaboration with the Bozeman Public Library - Business Consultation Hours (Blackstone Launchpad and SBDC), MicroMegas Podcats, and Economic Impact Analysis • Urban renewal projects Performance Measures • Track the Big Sky Trust Fund grant values and associated number of jobs created. FY20 Strategic Plan • 2.1 Business Growth - Support retention and growth of both the traded and local business sectors while welcoming and encouraging new and existing businesses. • 2.2 Infrastructure Investments - Strategically invest in infrastructure as a mechanism to encourage economic development. • 2.3 Workforce Development - Support education and workforce development initiatives to improve the skills of our citizens. Economic Development 1% General Fund 010- General Fund 10% 116- Dowtown TIF District 36%143-North 7th Corridor TIF District 33% 144-North East Urban Renewal TIF District10% 176- Downtown BID 3% 191- Tourism BID 6% $985,532 $1,081,545 $1,232,868 $1,254,091 $1,321,823 $686,023 $651,949 $600,687 $600,000 $600,000 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 FY16 FY17 FY18 FY19Approved FY20Recommended Urban Renewal District Increment Value South Bozeman Technology District Northeast Neighborhood URD North Park URD Midtown URD Downtown TIF $15.4 $7.0 $6.9 $1.7 $2.6 $5.3 $5.9 $6.7 $7.5 $0.8 $2.5 $0.9 $1.6 $1.8 $3.2 $3.6 $4.6 $- $5 $10 $15 $20 FY16 FY17 FY18 FY19Approved FY20RecommendedMillions of DollarsUrban Renewal District Building Permit Valuations (Millions of Dollars) South Bozeman Technology District Northeast Neighborhood URD North Park URD Midtown URD Downtown TIF 143 347 FY20 Budget Personnel Adding 1 FTE Economic Development Technician to be split between the TIFF funds and Parking Operating Operational adjustment made, and operations does include $25,000 to study Broadband Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change ECONOMIC DEVELOPMENT 010- General Fund 414,272 491,251 449,229 -8.6% ECONOMIC DEVELOPMENT 119- Economic Development Loan 37,782 31,000 31,000 -83.9% ECONOMIC DEVELOPMENT 186- Development Impacts (Big Box) 7,903 31,000 5,000 -0.9% ECONOMIC DEVELOPMENT 123- Big Sky Economic Development Grant 70,000 50,000 50,000 0.0% ECONOMIC DEVELOPMENT 116- Dowtown TIF District 1,180,721 2,052,500 1,636,429 -20.3% ECONOMIC DEVELOPMENT 143- North 7th Corridor TIF District 618,282 1,531,900 1,518,279 2.9% ECONOMIC DEVELOPMENT 144-North East Urban Renewal TIF District 121,987 434,100 446,479 -100.0% ECONOMIC DEVELOPMENT 145- Mandeville Farm TIF 4,721 4,000 - 0.0% ECONOMIC DEVELOPMENT 176- Downtown BID 132,939 162,175 162,178 0.0% ECONOMIC DEVELOPMENT 191- Tourism BID 1,028,397 1,200,000 301,200 -74.9% TOTALS 3,617,004 5,987,926 4,599,794 Department Category FY18 Actual FY19 Budget FY20 Recommended % Change ECONOMIC DEVELOPMENT Salaries & Benefits 220,375 246,661 289,826 17.5% ECONOMIC DEVELOPMENT Operating 2,099,990 5,219,265 3,889,868 -25.5% ECONOMIC DEVELOPMENT Capital 437,166 30,000 - -100.0% ECONOMIC DEVELOPMENT Debt Service 92,000 - - 0.0% ECONOMIC DEVELOPMENT Transfers 767,473 488,000 - -100.0% TOTALS 3,617,004 5,983,926 4,179,694 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change ECONOMIC DEVELOPMENT 8240- Economic Development 529,957 603,251 535,229 -11.3% ECONOMIC DEVELOPMENT - Downtown Improvement Districts 3,087,047 5,384,675 -100.0% TOTALS 5,987,926 535,229 Updated before final budget adoption. Boards develop their workplan and after its presented to the Commission its updated in the Budget Department Budget by Category Department Budget by Division Department Budget by Fund Salaries & Benefits 7% Operating93% Capital 0% Debt Service 0%Transfers0% 144 348 Sustainability (Strategic Services) Major Objectives: • Advance our utility tracking capabilities and reporting • Develop a Climate Action & Resiliency Plan • Implement the 2019 Climate Vulnerability Assessment & Resiliency Strategy • Explore a building energy stretch code Budget Allocation Funded by the General Fund (only 0.48% of the fund expenditures) FY19 Accomplishments • New outreach materials for residential efficiency • Expanded partnerships with local stakeholders to support solar powered transportation FY19 Strategic Plans • Climate Vulnerability Assessment & Resiliency Strategy (Climate Change Adaptation & Mitigation, 6.3.d) Performance Measures • Track the savings realized from upgrades made to commercial buildings through the Bozeman Energy Project. o FY15-19: $19,792 incentives distributed o 165,256 kWh saved (equivalent to removing 25 passenger vehicles for one year) o 38,220 gallons of water saved o $17,854 in annual small business savings • Measure and communicate municipal energy consumption including buildings, infrastructure, and fleet. • Monitor community greenhouse gas emissions to inform adopted goals for reduction. FY20 Strategic Plan • Update the Climate Action Plan 6.3.a - Builds upon Vulnerability Assessment & Resiliency Strategy • Create Solar Energy Policies 6.3.c - Review Bozeman Solar Project three-year data, and use data to advise City goals for solar project and engage with NorthWestern Energy • Explore Sustainable Technology 7.3.b - Advanced metering at WRF & WTP and dashboarding performance matrix. Sustainability 0% Genral Fund 145 349 FY20 Budget Personnel No changes Operating Consulting project in FY19 was a onetime expense for overall operational reduction in FY20 Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change SUSTAINABILITY 10- General Fund 151,289 245,726 165,790 -32.5% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change SUSTAINABILITY Salaries & Benefits 120,842 124,236 127,115 2.3% SUSTAINABILITY Operating 30,447 112,490 38,675 -65.6% SUSTAINABILITY Capital - 9,000 - 100.0% SUSTAINABILITY Debt Service - - - 0.0% SUSTAINABILITY Transfers - - - 0.0% TOTALS 151,289 245,726 165,790 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change SUSTAINABILITY 8250- Sustainability 151,289 245,726 165,790 -32.5% Department Budget by Category Department Budget by Fund Department Budget by Division Salaries & Benefits 77% Operating 23% Capital0%Debt Service0% Transfers0% 146 350 Affordable Housing (Community Development) Major Objectives: • Provide down-payment assistance & low- interest loans • Offer impact fee reimbursement for affordable housing projects • Match funds for low-interest tax credit project applications. Budget Allocation Funded by the Workforce Housing Special Revenue Fund FY19 Accomplishments • Construction and sale of eight affordable Housing Units in 2018. • Adoption of affordable housing Ordinance No. 2012 amending provisions of Chapter 38, Article 380 of the Bozeman Municipal Code in order to further the city’s affordable housing goals. • Creation of Affordable Housing Manual and education material. FY19 Strategic Plans Develop a Comprehensive Affordable Housing Action Plan that does the following: (Objective 4.5b) • Mandates the creation of affordable housing across all dwelling unit types. • Provides the prescribed flexibility in the manner in which the mandate can be accomplished • Provides a substantial, broad-based and reliable source of funding for the construction of affordable housing and for affordable housing loans • Actively encourages Bozeman’s major employers to develop workforce housing programs for their employees (Ongoing meetings and efforts regarding this issue) Performance Measures • Track the number of Affordable units Constructed that were mandated by Inclusionary Zoning Ordinance as well as other units facilitated or incentivized. • Monitor the number of units in approved housing plans. • Track the Cash-in-Lieu funds received. FY20 Strategic Plan A Well Planned City | Housing & Transportation Choices (Objective 4.5b, 1-4) • Affordable Housing Action Plan Consultant Fund Request | $30K • HRDC Homebuyer Education Contract | $20K • HRDC Pre-purchase Counseling Contract | $20K • Impact Fee or Down Payment Assistance | $200K • Funding for Salary and Training of Affordable Housing Manager | ~$60K Salary & $5K Training - 200,000 400,000 600,000 800,000 FY18 Actual FY19 Budget FY20Recommended 120-Workforce Housing Fund 147 351 FY20 Budget Personnel No changes Operating Increased funding to projects based on approvals from CAHAB Capital None Department Fund FY18 Actual FY19 Budget FY20 Recommended % Change WORKFORCE HOUSING 120- Workforce Housing Fund 127,062 371,858 694,458 86.8% Department Category FY18 Actual FY19 Budget FY20 Recommended % Change WORKFORCE HOUSING Salaries & Benefits 27,052 78,708 81,708 100.0% WORKFORCE HOUSING Operating 100,010 293,150 612,750 109.0% WORKFORCE HOUSING Capital - - - 0.0% WORKFORCE HOUSING Debt Service - - - 0.0% WORKFORCE HOUSING Transfers - - - 0.0% TOTALS 127,062 371,858 694,458 Department Division FY18 Actual FY19 Budget FY20 Recommended % Change WORKFORCE HOUSING Workforcehousing 127,062 371,858 694,458 86.8% Department Budget by Category Department Budget by Fund Department Budget by Division Salaries & Benefits 12% Operating88% Capital0%Debt Service0% Transfers0% 148 352 Non-Departmental 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 • General fund allocation of liability & property insurance - $491,391; • General fund o Contribution to the band - $10,440; Professional services for the landfill, $25,000; Contingency appropriation - $150,000; HRDC Streamline $150,000; and HRDC Fork & Spoon $25,000 • Police & Fire state share retirement (non-cash) - $2,668,262; • Debt service fund for Intercap loan for Bronken and Storymill projects - $40,480 • Transfer to Landfill Monitoring Fund - $280,000; Transfer to Stormwater Fund for Landfill Loan payments - $75,000; Debt items Fund Category Division FY18 Actual FY19 Budget FY20 Recommended 10 Operating Insurance 455,208 298,182 491,391 10 Operating General 99,643 457,684 360,440 10 Operating General (non-Cash)- 2,400,348 2,668,262 10 Debt Debt Service Intercap - - 40,480 10 Transfers Transfers 632,084 491,188 355,000 1,186,935 3,647,402 3,915,573 103 Transfers Transfers - Insurance 2,407,104 2,654,566 2,815,384 175 Operating General - Galavan 100,678 104,321 108,490 501 Construction BPSC - - 40,115,362 720 Operating Insurance 4,814,465 4,820,912 5,044,794 Fund Category Fun Name FY18 Actual FY19 Budget FY20 Recommended 300 Transfers SID Revolving Loan Fund - 224,011 867,070 303 Debt Service G.O. Refunding Series 2012 276,500 276,900 273,300 304 Debt Service Parks and Open Space Bond 1,081,238 1,088,138 1,076,788 305 Debt Service 2007 Downtown TIF Bonds 422,288 423,673 418,898 307 Debt Service Bozeman Public Safety Center - - 1,641,716 * 307 Transfers Bozeman Public Safety Center - - 36,735,000 * 310-448 Debt Service SID funds 972 385,800 1,000 450 Debt Service Sports Park Turf Loan - 32,000 ** Estimated in the process of issuing first part of FY20 149 353 Below are the budget details followed by the debt schedules (Note: Bozeman Public Safety Center bonds have yet to be issued so the schedule is not included and half year payment is an estimate). Payment Principal Interest Interest Semi-Annual Principal Due Payment Rate Payment Payment Balance 7/1/2019 215,000.00 2.000% 77,706.25 292,706.25 4,360,000.00 1/1/2020 - 75,556.25 75,556.25 7/1/2020 215,000.00 2.000% 75,556.25 290,556.25 4,145,000.00 1/1/2021 - 73,406.25 73,406.25 7/1/2021 220,000.00 2.250% 73,406.25 293,406.25 3,925,000.00 1/1/2022 - 71,206.25 71,206.25 7/1/2022 225,000.00 2.250% 71,206.25 296,206.25 3,700,000.00 1/1/2023 - 68,675.00 68,675.00 7/1/2023 230,000.00 2.500% 68,675.00 298,675.00 3,470,000.00 1/1/2024 - 65,800.00 65,800.00 7/1/2024 235,000.00 2.500% 65,800.00 300,800.00 3,235,000.00 1/1/2025 - 62,862.50 62,862.50 7/1/2025 245,000.00 2.500% 62,862.50 307,862.50 2,990,000.00 1/1/2026 - 59,800.00 59,800.00 7/1/2026 250,000.00 4.000% 59,800.00 309,800.00 2,740,000.00 1/1/2027 - 54,800.00 54,800.00 7/1/2027 260,000.00 4.000% 54,800.00 314,800.00 2,480,000.00 1/1/2028 - 49,600.00 49,600.00 7/1/2028 270,000.00 4.000% 49,600.00 319,600.00 2,210,000.00 1/1/2029 - 44,200.00 44,200.00 7/1/2029 280,000.00 4.000% 44,200.00 324,200.00 1,930,000.00 1/1/2030 - 38,600.00 38,600.00 7/1/2030 290,000.00 4.000% 38,600.00 328,600.00 1,640,000.00 1/1/2031 - 32,800.00 32,800.00 7/1/2031 305,000.00 4.000% 32,800.00 337,800.00 1,335,000.00 1/1/2032 - 26,700.00 26,700.00 7/1/2032 315,000.00 4.000% 26,700.00 341,700.00 1,020,000.00 1/1/2033 - 20,400.00 20,400.00 7/1/2033 325,000.00 4.000% 20,400.00 345,400.00 695,000.00 1/1/2034 - 13,900.00 13,900.00 7/1/2034 340,000.00 4.000% 13,900.00 353,900.00 355,000.00 1/1/2035 - 7,100.00 7,100.00 7/1/2035 355,000.00 4.000% 7,100.00 362,100.00 - TOTALS 5,100,000.00 2,266,840.63 7,366,840.63 CITY OF BOZEMAN General Obligation Refunding Bonds, Trails, Open Space & Parks, Series 2014 DEBT SERVICE SCHEDULE 150 354 Payment Principal Interest Interest Semi-Annual Principal Due Payment Rate Payment Payment Balance 7/1/2019 420,000.00 2.000% 146,362.50 566,362.50 8,045,000.00 1/1/2020 - 142,162.50 142,162.50 7/1/2020 430,000.00 2.250% 142,162.50 572,162.50 7,615,000.00 1/1/2021 - 137,325.00 137,325.00 7/1/2021 435,000.00 2.500% 137,325.00 572,325.00 7,180,000.00 1/1/2022 - 131,887.50 131,887.50 7/1/2022 450,000.00 2.750% 131,887.50 581,887.50 6,730,000.00 1/1/2023 - 125,700.00 125,700.00 7/1/2023 460,000.00 3.000% 125,700.00 585,700.00 6,270,000.00 1/1/2024 - 118,800.00 118,800.00 7/1/2024 475,000.00 2.800% 118,800.00 593,800.00 5,795,000.00 1/1/2025 - 112,150.00 112,150.00 7/1/2025 490,000.00 3.250% 112,150.00 602,150.00 5,305,000.00 1/1/2026 - 104,187.50 104,187.50 7/1/2026 505,000.00 3.500% 104,187.50 609,187.50 4,800,000.00 1/1/2027 - 95,350.00 95,350.00 7/1/2027 520,000.00 3.750% 95,350.00 615,350.00 4,280,000.00 1/1/2028 - 85,600.00 85,600.00 7/1/2028 540,000.00 4.000% 85,600.00 625,600.00 3,740,000.00 1/1/2029 - 74,800.00 74,800.00 7/1/2029 565,000.00 4.000% 74,800.00 639,800.00 3,175,000.00 1/1/2030 - 63,500.00 63,500.00 7/1/2030 585,000.00 4.000% 63,500.00 648,500.00 2,590,000.00 1/1/2031 - 51,800.00 51,800.00 7/1/2031 610,000.00 4.000% 51,800.00 661,800.00 1,980,000.00 1/1/2032 - 39,600.00 39,600.00 7/1/2032 635,000.00 4.000% 39,600.00 674,600.00 1,345,000.00 1/1/2033 - 26,900.00 26,900.00 7/1/2033 660,000.00 4.000% 26,900.00 686,900.00 685,000.00 1/1/2034 - 13,700.00 13,700.00 7/1/2034 685,000.00 4.000% 13,700.00 698,700.00 - TOTALS 9,900,000.00 4,355,805.28 14,255,805.28 CITY OF BOZEMAN General Obligation Refunding Bonds, Trails, Open Space & Parks, Series 2013 DEBT SERVICE SCHEDULE 151 355 Payment Principal Interest Interest Semi-Annual Principal Due Payment Rate Payment Payment Balance 7/1/2019 260,000.00 2.000% 7,950.00 267,950.00 535,000.00 1/1/2020 - 5,350.00 5,350.00 7/1/2020 265,000.00 2.000% 5,350.00 270,350.00 270,000.00 1/1/2021 - 2,700.00 2,700.00 7/1/2021 270,000.00 2.000% 2,700.00 272,700.00 - TOTALS 3,080,000.00 250,394.38 3,330,394.38 CITY OF BOZEMAN General Obligation Refunding Bonds, Series 2012 DEBT SERVICE SCHEDULE Payment Principal Interest Interest Semi-Annual Principal Date Payment Rate Payment Payment Balance 7/1/2019 220,000.00 4.25 101,786.25 321,786.25 3,995,000.00 1/1/2020 - - 97,111.25 97,111.25 7/1/2020 230,000.00 4.40 97,111.25 327,111.25 3,765,000.00 1/1/2021 - - 92,051.25 92,051.25 7/1/2021 240,000.00 4.50 92,051.25 332,051.25 3,525,000.00 1/1/2022 - - 86,651.25 86,651.25 7/1/2022 250,000.00 4.60 86,651.25 336,651.25 3,275,000.00 1/1/2023 - - 80,901.25 80,901.25 7/1/2023 260,000.00 4.70 80,901.25 340,901.25 3,015,000.00 1/1/2024 - - 74,791.25 74,791.25 7/1/2024 275,000.00 4.80 74,791.25 349,791.25 2,740,000.00 1/1/2025 - - 68,191.25 68,191.25 7/1/2025 290,000.00 4.95 68,191.25 358,191.25 2,450,000.00 1/1/2026 - - 61,013.75 61,013.75 7/1/2026 300,000.00 4.95 61,013.75 361,013.75 2,150,000.00 1/1/2027 - - 53,588.75 53,588.75 7/1/2027 315,000.00 4.95 53,588.75 368,588.75 1,835,000.00 1/1/2028 - - 45,792.50 45,792.50 7/1/2028 330,000.00 4.95 45,792.50 375,792.50 1,505,000.00 1/1/2029 - - 37,625.00 37,625.00 7/1/2029 350,000.00 5.00 37,625.00 387,625.00 1,155,000.00 1/1/2030 - - 28,875.00 28,875.00 7/1/2030 365,000.00 5.00 28,875.00 393,875.00 790,000.00 1/1/2031 - - 19,750.00 19,750.00 7/1/2031 385,000.00 5.00 19,750.00 404,750.00 405,000.00 1/1/2032 - - 10,125.00 10,125.00 7/1/2032 405,000.00 5.00 10,125.00 415,125.00 - TOTALS 4,215,000.00 1,614,721.25 5,829,721.25 CITY OF BOZEMAN TAX INCREMENT URBAN RENEWAL REVENUE BONDS, SERIES 2007 (DOWNTOWN BOZEMAN IMPROVEMENT DISTRICT) DEBT SERVICE SCHEDULE 152 356 CAPITAL EXPENDITURES SUMMARY 153 357 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. This five-year plan includes long-range plans for our current facilities while keeping in mind level of service standards. In a community with relatively high cost of living, the ability of citizens to afford the needed utility rate, fee, and assessment levels is of concern. At the same time, the City strives to keep existing facilities properly maintained — and not pass deferred maintenance costs and problems on to future generations. The staff have taken a lot of time and care in preparing this document. The efforts toward our Strategic Plan when developing our plan. Strategic Plan • Engaged Community: By updating our plan into our system, we have been able to make this Capital Improvement Plan more concise, informative and citizen-user friendly. The Lasher Fiche upgrade, GF337, will aid in our efforts for 1.1 b Dramatically increase transparency and create access to all city documents. • Innovative Economy: The General fund allocates for Fiber Optic Conduit this aids in our efforts for 2.2 a Identify Commercial/ Industrial Infrastructure Needs. • Safe, Welcoming Community: 3.1 a Develop a Criminal Justice Facility Plan and 3.1 c Implement the Fire Station Location Plan with the Bozeman Public Safety Center and this plan’s scheduled Fire Station 2 relocation for FY23. Both Police and Fire FY20 has the second payment for the radio lease with Gallatin County as part of 3.1 d Update Public Safety Technology Systems. 3.4 Active Recreation is included throughout the General fund plan with many projects that encourage and promote active recreation such as the proposed aquatics/recreation center, GF056. We have several park amenities proposed with splashpads and pickleball courts in the plan as well. • Well-Planned City: Software investment in the Public Works administration Fund works towards 4.1 c GIS Land Use & Infrastructure Development Tracking. The Wastewater fund and Wastewater Impact fund have many projects that achieve 4.3 b Increase Capacity of Sewer Pipes to Accommodate Development Projects. 155 359 We have proposed the creation of a Parks and Trails Maintenance District that works towards 4.3 a Develop a Comprehensive Parks Maintenance Facilities Funding Program that would provide funding for Parks’ capital needs. All the road projects funded by the Street Impact Fee fund and Arterial & Collector fund will include bike lanes and aid in our efforts towards 4.5 a Enhance Non-motorized Transportation. In addition, every year the Street Maintenance fund has allocation of $25,000 annually for bike path improvements and some additional project are planned n FY20 increase the amount. • Creative, Learning Culture: As other efforts work towards this visions efforts and identify projects they will be added to this plan when they meet the capital plan definition. • Sustainable Environment: The Water fund with the Water Conservation have a project to create a water conservation and efficiency plan in 2020 to achieve 6.2 a Watershed Management, which is to develop and implement a regional watershed approach. • High Performance Organization: This year we worked towards item 7.1 b -Create a Culture of Innovation by changing our CIP database system for project tracking and plan development. We are now using our city- wide budgeting system’s project module for all CIP items. This will make it easier to merge approved projects into the recommended budget, begin tracking projects in their initial stages, and give us increased project cost reporting. We are also recommending that we continue to innovate the plan for next year by increasing the CIP threshold from its current level of $10,000 to a new minimum level of $25,000. For the FY21 to FY25 CIP we recommend using a $25,000 threshold. This will align us with best practices and allow us to make better capital decisions by focusing on true capital items and less maintenance and operational expenses. The proposed Applicant tracing tool, GF 288, will integrate with our current Human Resource Information Systems and will help us track data and information regarding our applicants working towards 7.3 b System Integration and 7.4 a Develop Data Analysis Tools. This year we started earlier specifically with Finance and Public Works to improve the process, this aids in our efforts towards strategic plan item 7.3 C Improve Departmental Collaboration. Using this plan adopted in December the City incorporates the first year of the plan into the budget. FY20 Capital Projects with Material Operational Impacts The Bozeman Public Safety Center will begin construction will begin in FY20. This exciting advancement of the City’s public safety and the strategic plan moves Police, Courts, Prosecutors and Fire Station 1 into one building. This project does add large operational and maintenance costs going forward. Operational costs are estimated to be at least $360k. As we finish design we can finalize these numbers and will need to included in the future General fund mill levy. 156 360 The outlook for the 2020 includes another sewer capacity-expanding project The Norton East Ranch Outfall Diversion WWIF38 is $5,200,000 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. Along with these major projects road maintenance, vehicle replacements and building improvements are in the plan as well. Most capital projects have some sort of impact on ongoing operational costs. FY20 has some areas with operational cost: • The larger infrastructure projects have an impact on our operational costs, which can include increased cost for maintenance, additional monitoring, and additional services such as more roads to plow with the street construction scheduled. The major wastewater projects discussed earlier will add maintenance time and monitoring. The streets that will be constructed will affect the Street Maintenance fund’s operational budgets in FY20 with the additional snow plowing and into the future for repairs and maintenance. • Expanding the vehicle fleet increases maintenance and gas expenditures. This budget year there are some vehicles and other mobile equipment replacements that will not have as big of impact as the new vehicles expanding the number in the fleet. • We are not constructing any major building in this budget but there are some remodels but their operational impact is minimal since there is not additional need for cleaning and utilities. This includes the Professional building remodel and the City Commission room. 157 361 Included in the plan looking out towards the future: 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. 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. 2024- Water fund and Street Impact Fee fund have added improvements to their time lines. Street Impacts Fee fund sees Kagy improvements for the South side of town with SIF009. The Water fund adds W71, which is the second phase of automation and instrumentation upgrades for the treatment plant. 158 362 FY20 Capital Project Listing Fund Fund - Division Project #Project Name Amount 10 General Fund- Cemetery GF268 SW MT VETERAN'S CEMETERY 45,000 10 General Fund- Facilities GF274 CITY HALL BOZ CREEK IMPRV 33,500 10 General Fund- Parks GF254 25TH STREET FROM OAK TO TSCHACHE 333,000 10 General Fund- Police GF053 PATROL CAR & EQUIP RPLCMT 118,000 10 General Fund- Police GF166 COUNTY RADIO LEASE 295,000 10 General Fund- Police GF292 MOBILE DATA EQUIP 30,000 10 General Fund- Police GF293 NON-PATROL CAR NEW VEHICLES 15,000 10 General Fund- Recreation GF296 SWIM CENTER – FRONT FURNACE 37,080 10 General Fund-IT GF062 PERSONAL COMPUTER (PC) RE 50,000 10 General Fund-IT GF080 CITY-WIDE SWITCHES&ROUTRS 50,000 10 General Fund-IT GF265 SERVER REPLACEMENT GF 20,000 10 General Fund-IT GF289 SERVER FARM SOFTWARE UPGRADES 35,000 10 General Fund-IT GF310 APC REPLACE FOR DATA CEN 12,000 10 General Fund-IT GF312 ISCI FLASH UPGRADE CHALL 10,000 1,083,580 100 Planning CD06 PLANNING VEHICLE REPLACEMENT REQUEST 35,000 35,000 110 Gas Tax- Street Maintenance STR30 Annual Median & Boulevard 60,000 110 Gas Tax- Street Maintenance STR75 Annual Pedestrian Ramp Repair 100,000 110 Gas Tax- Street Maintenance STR91 MSU Kagy Pedestrian Crossing 80,000 240,000 111 Street Maintenance STR20 Annual Bike Path Improvement 53,080 111 Street Maintenance STR22 Grader Lease 60,000 111 Street Maintenance STR34 Sweepers 100,000 111 Street Maintenance STR39 Truck Mounted Tack Oil Distributor 210,000 111 Street Maintenance STR49 Sanders 27,000 111 Street Maintenance STR50 Snowplows 12,000 111 Street Maintenance STR68 Rectangular Rapid Flashing Beacon 10,000 111 Street Maintenance STR71 Maintenance & Rehabilitation (Mill & Overlay) 575,000 111 Street Maintenance STR73 Replace Skid Steer 90,000 111 Street Maintenance STR78 Replace #2748 -Truck 35,000 111 Street Maintenance STR83 N 27TH Median Landscaping & Irrigation (Oak to Baxter) 50,000 111 Street Maintenance STR85 Replace 1992 Wheel Loader 180,000 111 Street Maintenance STR92 Oak St Median Landscaping & irrigation (Davis to Ferguson) 60,000 111 Street Maintenance STR95 Signal Conflict Monitor Tester 13,000 111 Street Maintenance STR97 REPLACE #3149-LIGHT DUTY 35,000 1,510,080 112 Forestry FOR14 Forestry Chip Truck 90,000 90,000 10 General Fund Total 100 Community Development Total 110 Gas Tax Total 111 Street Maintenance Total 112 Forestry Total 159 363 Fund Fund - Division Project #Project Name Amount 114 Street Impact Fee SIF001 RIGHT OF WAY ACQUISITION 250,000 114 Street Impact Fee SIF057 OAK (FLANDERS MILL TO RYUN SUN WAY) - CONSTRUCTION 1,000,000 114 Street Impact Fee SIF076 FOWLER CONNECTION (HUFFINE TO OAK) - DESIGN 500,000 114 Street Impact Fee SIF098 OAK & COTTONWOOD (INTERSECTION IMPROVEMENTS) - ROUNDABOUT CONSTRUCTION 2,192,000 114 Street Impact Fee SIF105 COTTONWOOD (DURSTON TO OAK) - CONSTRUCTION 1,250,000 114 Street Impact Fee SIF110 MANLEY & GRIFFIN (INTERSECTION IMPROVEMENTS) - CONSTRUCTION 1,600,000 114 Street Impact Fee SIF123 BRIDGER DR & STORY MILL RD (INTERSECTION IMPROVEMENTS) - DESIGN 100,000 114 Street Impact Fee SIF132 STORY MILL (GRIFFIN TO BRIDGER) - DESIGN 50,000 114 Street Impact Fee SIF134 OAK (COTTONWOOD TO FLANDERS MILL) - CONSTRUCTION 434,000 7,376,000 141 Arterial & Collector SIF057 OAK (FLANDERS MILL TO RYUN SUN WAY) - CONSTRUCTION 500,000 141 Arterial & Collector SIF076 FOWLER CONNECTION (HUFFINE TO OAK) - DESIGN 500,000 141 Arterial & Collector SIF098 OAK & COTTONWOOD (INTERSECTION IMPROVEMENTS) -ROUNDABOUT CONSTRUCTION 548,000 141 Arterial & Collector SIF110 MANLEY & GRIFFIN (INTERSECTION IMPROVEMENTS) - CONSTRUCTION 400,000 141 Arterial & Collector SIF134 OAK (COTTONWOOD TO FLANDERS MILL) - CONSTRUCTION 433,000 2,381,000 187 Fire Capital FE06 Radio Replacement Program 250,000 187 Fire Capital FE12 Personal Protective Equip 38,000 187 Fire Capital FE17 Wildlands Apparatus 55,000 187 Fire Capital FE18 Light Duty Vehicles 80,000 187 Fire Capital FE19 Utility Vehicle 45,000 468,000 500's Construction Funds BPSC Bozeman Public Safety Center 40,115,362 500's Construction Funds SCR01 ANNUAL CURB REPLACEMENT & CONCRETE REPAIR PROGRAM 60,000 500's Construction Funds SCR16 N 17TH (DURSTON TO END) - DESIGN AND CONSTRUCTION 1,012,000 41,187,362 141 Arterial & Collector Total 187 Fire Capital & Equipment Replacement Total 500's Construction Funds Total 114 Street Impact Fee Total 160 364 Fund Fund - Division Project #Project Name Amount 600 Water W62 REPLACE #3446 - WTP GMC SIERRA PICKUP 45,000 600 Water W66 SCADA METERS, TRANSDUCERS & COMMUNICATIONS 10,000 600 Water W84 SOURDOUGH TANK INSPECTION & IMPROVEMENTS 600,000 600 Water W91 TURBIDIMETER REPLACEMENT 14,000 600 Water W94 MYSTIC LAKE BEAVER DECEIVER 35,000 600 Water W96 SOURDOUGH RAW TRANSMISSION MAIN FLOW CONTROL VALVE AND METER 300,000 600 Water - Operations W03 ANNUAL WATER PIPE REPLACEMENT 22,500 600 Water - Operations W04-20 WATER PIPE REPLACEMENT PROGRAM - CONSTRUCTION 1,200,000 2,226,500 610 Water Impact Fee WIF25 DAVIS 12" WATER MAIN & VALLEY CENTER 16"WATER MAIN 725,729 610 Water Impact Fee WIF40 SOURDOUGH TRANSMISSION MAIN – PHASE 2 4,320,000 610 Water Impact Fee WIF47 GRAF AND S. 27TH WATER TRANSMISSION MAIN OVERSIZE 150,000 610 Water Impact Fee WIF50 I-90 WATER MAIN EXTENSION 1,100,000 6,295,729 620 Wastewater WW54 REPLACE #1783 - 1995 FORD DUMP TRUNK 100,000 620 Wastewater WW69 SMALL WORKS PROJECTS 100,000 620 Wastewater WW70 WRF FACILITY ENGINEERING & OPTIMIZATION 60,000 620 Wastewater WW88 RE-TUBE BOILER 25,000 620 Wastewater WW91 UPDATE CONTROLS NETWORK 20,000 620 Wastewater WW96 EAST GALLATIN RIVER AVULSION RESTORATION 300,000 620 Wastewater - Operations WW07 ANNUAL WASTEWATER PIPE REPLACEMENT PROGRAM-DESIGN 22,500 620 Wastewater - Operations WW08 WASTEWATER PIPE REPLACEMENT PROGRAM- CONSTRUCTION 1,000,000 1,627,500 630 Wastewater Impact Fee WWIF22 DAVIS-FOWLER INTERCEPTOR 125,000 630 Wastewater Impact Fee WWIF35 BABCOCK SANITARY SEWER UPGRADE 245,000 630 Wastewater Impact Fee WWIF37 HUNTERS WAY SEWER CAPACITY UPGRADE 350,000 630 Wastewater Impact Fee WWIF38 NORTON EAST RANCH OUTFALL DIVERSION 5,200,000 630 Wastewater Impact Fee WWIF42 MANLEY ROAD SEWER UPGRADE 504,000 6,424,000 640 Solidwaste SW32 Front Load Truck Replacement 270,000 640 Solidwaste SW36 Side Load Truck - New 290,000 640 Solidwaste SW53 Pickup Truck 30,000 640 Solidwaste SW55 Side Load Truck 300,000 890,000 630 Wastewater Impact Fee Total 640 Solidwaste Total 600 Water Total 610 Water Impact FeeTotal 620 Wastewater Total 161 365 Fund Fund - Division Project #Project Name Amount 641 Landfill Closure Closure Costs 61,417 61,417 650 Parking P004 SURFACE PARKING LOT HARDWARE & SOFTWARE SYSTEMS 15,000 650 Parking P020 PARKING VEHICLE LEASES 45,000 650 Parking P023 PARKING TECHNOLOGY PHASE II 150,000 650 Parking NEW IVR - Voice message system 20,000 230,000 670 Stormwater STDM01 DOWNTOWN TRUNK LINE REHAB 400,000 670 Stormwater STDM02 MANLEY DITCH REHAB 100,000 670 Stormwater STUO01 STORMWATER FACILITY PLAN 150,000 650,000 750 Public Works Admin GIS03 ASSET MANAGEMENT SOFTWARE 75,000 75,000 72,851,168 Total Capital Expenditures 641 Landfill ClosureTotal 650 Parking Total 670 Stormwater Total 750 Public Works Admin Total 162 366 Appendices Appendix A- Statistical Information Appendix B- Budget Financial Polices Appendix C- Long Range Planning Appendix D- General Fund Minimum Reserve Analysis Appendix E- Glossary 163 367 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 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% 2018 251.1 1.87% United States CPI 210.2 216 219.2 225.7 229.6 233.0 234.8 236.5 241.4 246.5 251.1 219.6 218.8 221.2 227.5 232.4 236.1 239.1 243.0 247.7 257.3 265.2 200 210 220 230 240 250 260 270 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 CPI-U United States CPI Western States CPI 165 369 Population Bozeman’s population has been growing steadily since 2000. The rate of population has shown a 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 55.5%. Source: US Census Bureau: People QuickFacts Bozeman Montana Bozeman as % of Montana Data Population: 2018 estimate 46,596 1,074,167 4.34% 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 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% 2018 46,595 4.25% 35.47% Year % Change in Population Per capita Income Median Age % Residents w/ Bachelors K-12 enrollment Unemployment rate 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% 2018 4.1%28,748$ 27.9 56.5% 6,908 2.8% 166 370 Business: Private Employers: The Montana Department of Labor and Industry reports the following largest private employers within the City’s boundaries (2018 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 500 to 999 Employees Kenyon Noble Lumber & Hardware 250 to 499 Employees Town Pump Convenience Stores 250 to 499 Employees Wal Mart 250 to 499 Employees Albertson's 100 to 249 Employees Balckhawk Industries 100 to 249 Employees Bridger Bowl 100 to 249 Employees Community Food Co-Op 100 to 249 Employees Costco 100 to 249 Employees First Student 100 to 249 Employees JC Billion 100 to 249 Employees McDonalds 100 to 249 Employees Murdoch's Ranch & Home Supply 100 to 249 Employees Ressler Motor 100 to 249 Employees Simms Fishing Products 100 to 249 Employees Town & Country Foods 100 to 249 Employees Williams Plumbing & Heating 100 to 249 Employees Zoot Enterprises 100 to 249 Employees Public Employers Size Montana State University 1,000+ Employees School District #7 500 to 999 Employees Belgrade School District 500 to 999 Employees City of Bozeman 500 to 999 Employees Gallatin County 250 to 499 Employees 167 371 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. City Staffing Per Capita Debt Limits Tax Payer Assessed Value % of Total Northwestern Energy - Transmission & Distribution 5,379,804 57.10% Verizon Wireless 583,961 6.20% Centurylink, Inc. (Qwest)524,350 5.57% Charter Communitcation 498,174 5.29% NB Staduim View District 460,554 4.89% Harry Daum - Gallatin Mall 446,722 4.74% Stone Ridge Partners LLC 423,820 4.50% Mitchell Development & Investment 376,921 4.00% Bridger Peaks Holding LLC 375,052 3.98% First Security Bank 352,421 3.74% FY16 FY17 FY18 BudgetedFY19 ProposedFY20 Total Employees 393.87 406.23 418.23 433.08 448.93 City Employees per 1,000 Residents 9.07 8.98 8.93 9.11 9.26 8.008.208.408.608.809.009.209.409.609.8010.00 360370380390400410420430440450460 City Employees per 1,000 Residents 2015 2016 2017 2018 Debt limit*84,500,000 142,464,717 147,500,000 168,633,783 Total net debt applicable to limit (15,356,726)$ (16,454,841)$ (18,613,264)$ (14,598,588)$ Legal debt margin 69,143,274$ 126,009,876$ 128,886,736$ 154,035,195$ Total net debt applicable to the limit 18.2%11.6%12.6%8.7% as a percentage of debt limit Fiscal Years 168 372 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. 169 373 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. 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. 170 374 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. 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. 171 375 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 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. 172 376 Fund Type Order of Spending 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: • 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. 173 377 • 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. (See Appendix D for recommendation) 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. 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. 174 378 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 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. 175 379 Appendix C: Long Range Financial Planning 5-year Financial Plans: Each year, the City also prepares and maintains financial plans for the current year and the ensuing 5 years for the following funds: Special Revenue Funds • Street Maintenance Fund • Arterial & Collector Fund • Tree Maintenance Fund Enterprise Funds • Water Fund • Wastewater Fund • Stormwater Fund • Solid Waste Fund (Rate study being conducted no Plan for FY20) These plans are developed as a part of the annual budget process and are based on current and future estimates of staffing levels, estimated increases in operating costs such as supplies, fuel, and chemicals, and approved the capital plans. The plans project revenue requirements, expenditure levels, and estimated reserve levels for each of the five years. Special Revenue Funds STREET MAINTENANCE: The Street Maintenance long-term plan continues to show increases in assessment to meet the needs of the capital plan and growth. We are showing stabilization in rates and achievement of our desired reserve level established in FY19. - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 2019 Budget 2020 Recommend 2021 Projection 2022 Projection 2023 Projection 2024 Projections Street Maintenance Fund Projection Revenue Expenditures Fund Balance 177 381 Street Maintenance District - 5 year Projection FY2020 Budget Preparation Approved Proposed Projected Projected Projected Projected Customer Increase - sq ft 2%2%2%2%2%2% Rate Increase - General 5%8%10%12%0%0% Rate Increase - Added Maintenance 0%0%0%0%0%0% Rate Increase - Street Reconstruction 0%0%0%0%0%0% 5.0%8.0%10.0% 12.0% 0.0%0.0% General Street Maintenance FY19 FY20 FY21 FY22 FY23 FY24 Proportional Assessment Share 85.0%85.0%85.0%85.0%85.0%85.0% Beginning Fund Balance - Projected 528,760 334,733 76,733 360,445 238,514 1,067,050 Estimated Revenues: Assessments: Undesignated 4,008,541.29 4,402,821 4,925,436 5,610,269 5,705,644 5,802,639 Assessments: Added Maintenance 1,026,782 1,026,782 1,026,782 1,026,782 1,026,782 1,026,782 Street Cut Permits 18,000 18,000 18,000 18,000 18,000 18,000 Interest Earnings 10,000 10,000 10,000 10,000 10,000 10,000 Penalty & Interest 11,500 12,000 12,000 12,000 12,000 12,000 Other Revnue 10,000 25,000 25,000 25,000 25,000 25,000 Total Estimated Revenues:5,084,823 5,494,603 5,992,218 6,677,051 6,772,425 6,869,421 Proposed Expenditures: Personnel 1,629,339 1,756,594 1,756,594 1,910,074 1,948,275 1,987,241 Staffing plan PW allocation FY21 and 22 - 153,480 210,834 - - Operations 2,019,804 2,175,129 2,218,631.58 2,416,484.21 2,464,814 2,514,110 Debt Service, incl Intercap 315,207 310,800 310,800 310,800 310,800 310,800 Approved CIP *with adjustments 1,314,500 1,510,080 1,269,000 1,950,789 1,220,000 1,234,000 Total Proposed Expenditures:5,278,850 5,752,603 5,708,506 6,798,981 5,943,889 6,046,151 Ending Fund Balance - Projected 334,733 76,733 360,445 238,514 1,067,050 1,890,320 Street & Curb Reconstruction FY19 FY20 FY21 FY22 FY23 FY24 Accumulated Assessment Amount 15.0%15.0%15.0%15.0%15.0%15.0% Beginning Designated Fund Balance - Projected 39,149 40,195 40,195 40,195 40,195 40,195 Estimated Revenues: Assessments Designated: Reconstruction & Curbs 696,525 709,733 724,510 741,340 758,457 775,865 Proposed Expenditures: Transfers to Construction Fund 695,478 709,733 724,510 741,340 758,457 775,865 Ending Designated Fund Balance - Projected 40,195$ 40,195$ 40,195$ 40,195$ 40,195$ 40,195$ Reserve Policy: 30 build Day Operating Reserve (15,15, 20,20,30)162,918$ 174,350$ 243,261$ 265,654$ 323,554$ 395,519$ 162,918$ 174,350$ 243,261$ 265,654$ 323,554$ 395,519$ diff 212,009.74$ (57,422)$ 157,380$ 13,055$ 783,691$ 1,534,996$ Total Annual Assessments: Small Lot, 5,000 sq ft.138.59$ 149.67$ 164.64$ 184.40$ 184.40$ 184.40$ Average Lot, 7,500 sq ft.207.92$ 224.55$ 247.01$ 276.65$ 276.65$ 276.65$ Large Lot, 10,000 sq ft.277.22$ 299.40$ 329.34$ 368.86$ 368.86$ 368.86$ Capped Residential, 15,000 sq ft.415.83$ 449.10$ 494.01$ 553.29$ 553.29$ 553.29$ 178 382 ARTERIAL AND COLLECTOR The assessment is predicted to stay at the FY20 rate and need slight increases of 2% to fund the capital program. This fund also relies on the gas tax remaining at current levels as well. (2,000,000) (1,000,000) - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Budget FY19 Recommended FY20 Projected FY21 Projected FY22 Projected FY23 Projected FY24 Arterial & Collector Projection Total Estimated Revenues:Total Proposed Expenditures: Ending Fund Balance - Projected Arterial & Collector District - 5 year Projection FY2020 Budget Preparation Adopted Proposed Projected Projected Projected Projected Customer Increase - sq ftg 2%2%2%2%2%2% Rate Increase - General -28%0%2%2%2%2% -26%2%4%4%4%4% Arterial & Collector Maintenance & Cap Budget FY19 Recommended FY20 Projected FY21 Projected FY22 Projected FY23 Projected FY24 Beginning Fund Balance - Projected 1,781,963 627,223 818,725 2,087,077 2,103,636 (854,888) Estimated Revenues: Assessments: 1,306,466 1,332,595 1,386,432 1,442,444 1,500,719 1,561,348 Gas Tax Funding from fund 110 708,000 722,850 737,307 752,053 767,094 782,436 Interest Earnings 17,820 7,000 8,187 20,871 21,036 (8,549) Penalty & Interest 2,286 2,500 2,426 2,524 2,626 2,732 Revenue - Payback Districts 378,688 522,557 300,667 300,667 - - Developer contributions - - 1,683,333 - - - Total Estimated Revenues:2,413,260 2,587,502 4,118,353 2,518,559 2,291,475 2,337,967 Proposed Expenditures: Personnel - - - - - Operations 115,000 15,000 - - - - Debt Service, incl Intercap - - - - - - Approved CIP 3,453,000 2,381,000 2,850,000 2,502,000 5,250,000 - Total Proposed Expenditures:3,568,000 2,396,000 2,850,000 2,502,000 5,250,000 - Ending Fund Balance - Projected 627,223 818,725 2,087,077 2,103,636 (854,888) 1,483,079 Total Annual Assessments: Small Lot, 5,000 sq ft.34.52$ 34.52$ 35.90$ 37.34$ 38.83$ 40.38$ Average Lot, 7,500 sq ft.51.78$ 51.78$ 53.85$ 56.01$ 58.25$ 60.58$ Large Lot, 10,000 sq ft.69.03$ 69.03$ 71.79$ 74.66$ 77.65$ 80.76$ Capped Residential, 15,000 sq ft.103.55$ 103.55$ 107.69$ 112.00$ 116.48$ 121.14$ 179 383 TREE MAINTENANCE FUND The Tree maintenance fund needs to continue to build a fund balance to be able to address capital needs and emergency funds. - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 Budget FY19 RecommendFY20 Projected FY21 Projected FY22 Projected FY23 Projected FY24 Tree Maintenance Fund Projection Total Estimated Revenues:Total Proposed Expenditures:Ending Fund Balance - Projected Tree Maintenance District - 5 year Projection FY2020 Budget Preparation Approved Recommend Projected Projected Projected Projected Proposed Rate Increase 5%2%2%2%0%0% Estimated Growth in Assessable SqFt 2%2%2%2%2%2% Budget FY19 Beginning Fund Balance - Projected 345,584 271,260 266,437 361,190 321,954 357,287 Estimated Revenues: Assessments 744,853 774,945 806,252 838,825 855,602 872,714 Penalty and Interest 1,200 2,000 2,000 2,000 2,000 2,000 Interest Earnings 2,200 3,000 2,200 2,200 2,200 2,200 Sale of Cost-Share-Trees 3,000 3,000 3,000 3,000 3,000 3,000 Total Estimated Revenues:751,253 782,945 813,452 846,025 862,802 879,914 Proposed Expenditures: Existing Personnel 435,400 455,103 468,756 482,819 497,303 512,222 Operations -- 244,177 242,664 249,944 257,442 265,166 273,120 Capital 146,000 90,000 - 145,000 65,000 75,000 Total Proposed Expenditures:825,577 787,767 718,700 885,261 827,469 860,343 Ending Fund Balance - Projected 271,260 266,437 361,190 321,954 357,287 376,857 Reserve Policy: General Capital reserve 65,000 72,000 78,000 85,000 90,000 90,000 Working Capital for Emerald Ash Incidents 100,000 100,000 100,000 100,000 100,000 100,000 45 Days Pers & Ops 83,783 86,026 88,607 91,265 94,003 96,823 248,783 258,026 266,607 276,265 284,003 286,823 Remaing Fund Balance 22,476 8,411 94,583 45,689 73,284 90,034 Annual Assessments: Small Lot, 5,000 sq ft.15.73 16.05 16.37 16.70 16.70 16.70 Average Lot, 7,500 sq ft.23.61 24.08 24.56 25.05 25.05 25.05 Large Lot, 10,000 sq ft.31.48 32.11 32.75 33.41 33.41 33.41 Extra Large, 15,000 sq ft 47.21 48.16 49.12 50.10 50.10 50.10 Recommend FY20 Projected FY21 Projected FY22 Projected FY23 Projected FY24 180 384 Enterprise Funds WATER FUND Recently, the City had a rate study completed for the Water fund. Rates and reserve levels were designed to ensure proper revenue coverage and reserve amounts, including a drought reserve. - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Water Fund Projections Revenues Expenditures Fund Balance 181 385 WASTEWATER FUND Recently, the City had a rate study completed for the Wastewater fund. Rates and reserve levels were designed to ensure proper revenue coverage and reserve amounts. - 5,000,000 10,000,000 15,000,000 20,000,000 Wastewater Fund Projections Revenues Expenditures Fund Balance 182 386 STORM WATER FUND Projected with 2% growth assumption and increases in rates are needed to further compensate in growth and higher construction costs to continue to maintain and replace infrastructure. Storm Water Utility - 5 Year Budget & Rate Projection FY2020 Budget Preparation Approved Proposed Projected Projected Projected Projected Rate Increase 0%4%4%5%5%5% Customer Increase 2%2%2%2%2%2% Budget FY19 Recommended FY20 Projected FY21 Projected FY22 Projected FY23 Projected FY24 Beginning Fund Balance - Projected 706,361 660,247 478,134 346,735 238,660 214,508 Estimated Revenues: Storm Water Utility Charges 1,322,688 1,403,107 1,488,416 1,594,094 1,707,275 1,828,491 Low Income Discount (5,000) (5,200) (5,408) (5,678) (5,962) (6,260) Interest Earnings 5,500 5,500 5,500 5,500 5,500 5,500 Transfers from Other Funds 75,000 75,000 75,000 75,000 75,000 75,000 Total Estimated Revenues:1,398,188 1,478,407 1,563,508 1,668,916 1,781,812 1,902,731 Proposed Expenditures: Personnel 408,583 580,938 580,938 631,001 701,496 726,048 Staffing Plan FY21-22 26,335 50,063 Operating 240,373 268,372 276,423 284,716 293,257 302,055 CIP 635,000 650,000 650,000 650,000 650,000 650,000 Debt Service (includes Landfill)160,346 161,211 161,211 161,211 161,211 161,211 Transfers - - - 1,403 - - Total Proposed Expenditures:1,444,302 1,660,521 1,694,907 1,776,991 1,805,964 1,839,314 Ending Fund Balance - Projected 660,247 478,134 346,735 238,660 214,508 277,924 Reserve Policy: 45 Day Operating Reserve 80,008 104,709 105,702 112,897 122,641 126,752 Depreciation Reserve Est 120,000 120,000 120,000 120,000 120,000 120,000 200,008 224,709 225,702 232,897 242,641 246,752 Remaining Fund Balance 460,239$ 253,424$ 121,033$ 5,763$ (28,133)$ 31,172$ - 500,000 1,000,000 1,500,000 2,000,000 Storm Water Fund Projections Total Estimated Revenues:Total Proposed Expenditures: Ending Fund Balance - Projected 183 387 Appendix D- General Fund Balance Minimum Analysis Background Fund balance is a critical for financial stability and flexibility. Reserves aid in governments being able to respond to events, buffer against economic down turns and are a factor for bond ratings. The City of Bozeman adopted its current General fund reserve policy April 26, 2010 via ordinance.1 The minimum fund reserve is “16 2/3 percent of estimated general fund revenues” and was adopted based on the GFOA’s best practice recommendation at the time. GFOA has since revised its best practices and recommend a policy be developed articulating “a framework and process for how the government would increase or decrease the level of unrestricted fund balance over a specific time period. In particular, governments should provide broad guidance in the policy for how resources will be directed to replenish fund balance should the balance fall below the level prescribed.”2 Appropriate Level - The amount of reserve needed is unique to every local government since all deal with different revenue streams, live in areas with higher risk of natural disaster, and have different aged infrastructure. At a minimum, the GFOA recommends, “at a minimum, that general-purpose governments, regardless of size, maintain unrestricted budgetary fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures.” Then based on a review of the governments risk factors determine what is beyond the minimum. Use and Replenishment- The reserve policy should include the conditions and/or circumstances where the funds can be used and if the balance goes below the desired level, there should be a plan to relish the reserve We have reviewed GFOA’s best practice, and its referenced material, as well as GFOA case studies and examples of polices from other cities. We have performed analysis to determine factors for the appropriate level. When looking at our reserve we followed GFOA’s methodology used in their study done on the City of Colorado Springs.3 Based on the research and analysis we are recommending the expansion of the General fund reserve policy as stated in the adopted budget book and of the ordinance. 1 https://library.municode.com/mt/bozeman/codes/code_of_ordinances?nodeId=PTIICOOR_CH2AD_ART6FI_DIV2BU_S2.06.180MILEBUGE FUUNFUBA 2 http://www.gfoa.org/fund-balance-guidelines-general-fund 3 http://www.gfoa.org/sites/default/files/Colorado%20Springs_FINAL_0.pdf 185 389 Analysis Using GFOA’s best practice and their own analysis, we examined the City’s risk factors in regards to the General fund. We reviewed revenue volatility, infrastructure upkeep, Vulnerability to Extreme Events and Public Safety Concerns, Expenditure Volatility, Risk Factors Revenue Volatility The more volatile a government’s revenue sources the higher a risk for fast changes and the need to respond to down turns. This type of risk requires higher reserve to be in place to be able to respond to revenue drops instead of suddenly reducing service levels. The City’s General fund revenues are mainly from four sources: property taxes, charges for services, intergovernmental revenues and other financing sources. Other financing sources are typically for debt issuance so it does not need to be included in the analysis. Property taxes- Property taxes make up about 50-52% of the General fund’s revenues. Traditionally property taxes are not as volatile as others taxes are, such as sales tax. Based on the linear increase in actuals this revenue is currently not showing signs of volatility. - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 Historical Revenues and Fund balance Revenue Fund balance 9,395,059 11,764,184 11,544,728 11,751,346 12,513,690 14,512,728 14,904,243 15,268,625 15,689,266 16,621,534 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 BudgetFY2019 Property tax 186 390 Intergovernmental Revenues - The largest part of this revenue stream is the State entitlement share, which increases based on the average change of the last 3 years of CPI. There have been talks at the legislature to reduce these funds and the economy could have an impact. Grants would be included in this revenue item and that could increase this revenue, as the City grows larger and qualifies for more funding. Based on the linear increase in actuals this revenue is currently not showing signs of volatility. Charges for Services - Charges for services has shown volatility. The City has increased fees recently to align better with cost of services, specifically in Parks and Recreations. With it being only 9% of revenues and the recent efforts these just require monitoring and cost recovery analysis but no reserve fund changes are needed to cover possible down turns beyond the current minimum. 5,323,697 6,046,956 6,139,548 6,277,896 6,570,978 6,807,755 7,056,466 7,393,702 7,686,022 7,642,511 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 BudgetFY2019 Intergovernmental Revenues 2,324,185 2,382,714 2,166,750 2,139,772 2,395,464 1,928,343 2,165,642 2,295,677 2,760,256 2,925,871 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Budget FY2019 Charges for services 187 391 Infrastructure Upkeep Worn infrastructure holds a potential risk of failure and General fund reserves maybe needed to repair and replace unexpected failures of assets. The City’s infrastructure is vast and is planned for in many different fund reserves, for example, water and wastewater reserves are part of the rate study and the model to plan for replacement and maintenance. The General fund infrastructure is the facilities accounted for in the General fund including administrative buildings and parks and recreation facilities. This winter Bozeman saw record heavy snowfall and had a partial collapse at Bogart Park. The Pavilion is about $3.4 million to replace. MSU saw a bigger catastrophe due to the snowfall and older buildings. The City is having our other structure examined but there should be some funding set aside in the reserve for the infrastructure and next year with the further study and expansion of our asset management program we can better quantify this risk going forward. The FY20 Reserve should include 0.4% to address this risk. Vulnerability to Extreme Events and Public Safety Concerns Extreme events require public safety programs that must continue to be funded while waiting for any state and federal aid. “For example, reimbursement from the Federal Emergency Management Agency (FEMA) does not always occur right away, so it is important to have reserves to absorb the cost in the meantime, and FEMA does not necessarily reimburse 100 percent of the cost of responding to an event.”4 The City has taken measures to prepare for events with the Climate Action Plan and the joint project with MSU for Continuity of operations planning. Montana is prone wildfires, heavy snowfall and flooding. As we developed these plans, we can further examine the need for a reserve beyond our minimum. Expenditure Volatility Unexpected expenditures or non-reoccurring expenditures are often funded by reserves, unlike re-occurring that should be funded by reoccurring revenues and not reserves. Reoccurring should be part of the operating budget and the risk of non-reoccurring can be planned for in the reserve. We have limited our funding for capital expenditures and in the future either reserve should be built up for items or debt financing might have to increase. We have not seen a rise of such expenditures but the City has relied upon the prior year spending not to happen and use carryforward of 4% to balance operating expenditures. The trend has been decreasing but one-time 4 http://www.gfoa.org/sites/default/files/Colorado%20Springs_FINAL_0.pdf 0% 20% 40% 60% 80% 100% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19BUDGET Expenditures by Type PERSONNEL OPERATING CAPITAL DEBT SERVICE TRANSFERS 188 392 monies have off set it, which will not always be the case. The budget can only rely on 2.5% carryforward but at this time the need for more reserve is not needed, however the reserve calculation should be based on expenditures rather than revenues due to this trend (highlighted with stars below). The exception should be made for non-cash items that are required to be shown in the budget because they are shown as revenue coming and expenditures going out. The city has one of these for the State retirement contribution for Police and fire that is around $2.4 million. This item should be excluded from the minimum since in essence, it is a wash and there is no actual cash coming or going from the City. Growth of the Community “Rapid growth of the community could call for larger levels of reserves, lest service requirements expand beyond the City’s ability to continue services in the face of revenue interruption. For instance, property tax revenues may not be received until a couple of years after development occurs, yet the government will still need to provide for the public safety, health, and welfare of these members of the community in the meantime.”5 The City has seen an average of 4% growth over the last 4 years. The General fund faces level of service constraints as the City grows. Infrastructure is paid for through other means such as impact fees. Level service are operating expenses and reoccurring so this will not impact the need for addition minimum reserve amounts but rather impact operating budget decisions in regards to the General Fund. 5 http://www.gfoa.org/sites/default/files/Colorado%20Springs_FINAL_0.pdf $- $5,000,000.00 $10,000,000.00 $15,000,000.00 $20,000,000.00 $25,000,000.00 $30,000,000.00 $35,000,000.00 $40,000,000.00 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19BUDGET Total Expenditures Total Revenues 189 393 Recommendations Begin working towards the following recommendations and revise the City Ordinance once the City has achieved this objective, evaluated the method, and the City Commission has recommended this approach. Appropriate Level Based on the above analysis, 17% of budgeted expenditures (appropriations), this will be set at budget time where both the current fund balance and projected fund balance will meet this minimum unless it has been used as described below. Use and Replenishment Available fund balances shall not be used for ongoing operating expenditures, unless a determination has been made that available balances are in excess of required guidelines and that plans have been established to address any future operating budget shortfalls. Emphasis shall be placed on one-time uses that achieve future operating cost reductions. Uses that would cause going below the minimum should be limited to: • Unanticipated expenditures of a non-reoccurring nature • Meet unexpected increases in service delivery costs Replenishment plan should be established when dropping below the minimum and should be replenished at a maximum of three years. 190 394 Appendix E: 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. APPROPRIATION- Legal authorization granted by City Commission to make expenditures and incur obligations. 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, the Montana Department of Revenue establishes Property values.) ASSET - Resources owned or held by a government having monetary value. 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. 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. 191 395 CAPITAL BUDGET - The Capital Budget comprises the capital improvements that are funded in the current budget year. CAPITAL EXPENDITURE - The item has a unit cost over $5,000, benefits future periods, has a normal 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 IMPROVEMENTS - Expenditures related to the acquisition, expansion, or rehabilitation of an 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. 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. 192 396 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 AWARD - 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. 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 193 397 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. 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 DISTRICT - Special assessment districts formed by property owners who desire and are 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. 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. 194 398 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. 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. 195 399 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. 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. 196 400 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. 197 401