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HomeMy WebLinkAbout06-10-19 City Commission Packet Materials - A2. FY20 Budget Work Session - General Fund Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director Anna Rosenberry, Assistant City Manager Andrea Surratt, City Manager SUBJECT: Fiscal Year 2020 (FY20) Budget Work Session General Fund MEETING DATE: June 10, 2019 AGENDA ITEM TYPE: Action Item – Budget Work Session RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you see fit. BACKGROUND: Attached are budget worksheets and other materials describing the General Fund spending proposal. This information has been prepared to assist us in developing the City’s Final Budget. The materials are based on the FY20 City Manager’s Recommended Budget, available at http://www.bozeman.net/government/finance/budget-and-financial-reports. Basic General Fund information begins on page 35 in the “Fund Summaries” section. Based on the feedback received during this and other work sessions held this spring, we intend to prepare the Final Budget resolution. The hearing for adoption of the Final Budget is scheduled for June 24, 2019. General Fund: As is discussed in the Budget Message section of the FY20 City Manager’s Recommended Budget, continued growth in the geography and population of Bozeman is straining many of the services that are provided by the General Fund. Requests for funding exceed our projected revenues and available resources. The General Fund supports more than 15 separate departments and divisions, each with its own important work and deliverables. The General Fund supports departments that are key to operations across the organization such as Commission, City Manager, City Attorney, Finance, Human Resources, Information Technology, etc. It also supports departments that are outward- facing service providers such as the Police, Fire, Parks, and Recreation Departments, and the Library. 208 This year it was very difficult to balance the General Fund budget. Departmental requests for additional staffing and operating dollars were higher than previous year requests. And, requests from outside agencies for funding support (such as Haven and HRDC) were higher than in previous years. We are also seeing a decline in the amount of “carry-over” money in the budget each year. Based on this slow decline, we need to decrease the estimates that we use to calculate the ending General Fund reserve (fund balance) and how much money is available for property tax reduction. The result is that fewer dollars are expected to be available to spend in the coming year, without an increase in property taxes. Without a new source or significant increase in revenues, we could not fund all the requests. Because of this situation, and despite many cuts that were made to the spending plan, we are recommending an increase in the property tax levy of 2.5 mills to support operations and personnel in the fund this year (more in Fiscal Effects, below). The chart below shows the Recommended General Fund budget divided among the various departments. (*Note: We have further divided the “non-departmental” expenditures to reflect the portions for public safety State Pension amounts.) Strategic Plan: Our attached department analyses include information on many of the areas of the Strategic Plan that are supported within the General Fund budget. They reference the specific items under the Vision Statements in the Plan, found on page 12 of the Budget document. You can find “FY20 Strategic Plan” listed in the various Activity Detail sections in the budget document, beginning on page 73. Some of the highlights include: City Clerk: 1.1.b Outreach - Dramatically increase transparency and create access to all city documents. Closed captioned video critical for web content accessibility ($20,000). Neighborhoods Program: 1.2.b Community Engagement Plan – Develop a plan to increase community engagement in city decision-making processes. City Commission 1%City Manager 4% Municipal Court 3% City Attorney 4%Finance 3% Facilities Management 5% Information Technology 4% Human Resources 2% Police 26% Police State Pension (Non-Departmental) 5% Fire 16% Fire State Pension (Non- Departmental) 3% Cemetery 2% Parks 7% Library 7% Recreation 6% Economic Development 1% Sustainability 0% Non-Departmental 4% 209 Facilities Maintenance: 6.3.d Vulnerability Assessment & Resiliency Framework - Fire Department Structures Inventory & Adaptive Capacity. Information Technology: 1.1.a Communication plan and protocol – Granicus Gov Delivery Communications Platform for Push Notifications ($10,000). Human Resources Department: 7.2.a Best in Class Employer - Increase training budget with professional development and leadership development offered to department employees ($10,000). 7.2.d Diversity - Maintain diversity advertisement budget for focused effort on achieving diversity goals. Police: 3.1.a Develop a Criminal Justice Facility Plan. ($40 Million) 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 ($44,000 for Mental Health program). Fire: 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 ($40 Million) 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 Parks: 4.3.a Prioritize long-term investment and maintenance for existing and new infrastructure - Develop a comprehensive parks maintenance and facilities plan. ($26,000 for public education.) Sustainability: 6.3.a Update the Climate Action Plan Builds upon Vulnerability Assessment & Resiliency Strategy (FY19 $85,000). 6.3.c Create Solar Energy Policies - Review Bozeman Solar Project three-year data, and use data to advise City goals for solar project and engage with NorthWestern Energy. 7.3.b Explore Sustainable Technology – Advanced metering at WRF & WTP and dash-boarding performance matrix. FISCAL EFFECTS: Although the Final Budget adoption has far-reaching fiscal effects, there are no immediate fiscal effects resulting from this work session. Tonight we will be discussing a proposed increase to the City’s property tax levy. We have estimated a 2.5-mill increase needed for operations and a 13.29 mill increase for the public safety center bonds. Other levies, including debt service, are expected to make small adjustments. This proposed budget changes property taxes on all taxable property owners in the City. For the median residential property, taxes are estimated to increase by $88.03/year. The specific details of our mill levy estimations can be found on page 21 of the Recommended Budget document. As presented, the City Manager’s Recommended Budget is projected to have the following effect on the typical City residential property, the property tax area affected by tonight’s Funds highlighted below. 210 Attachments: General Fund Budget Presentation Outside Entity Requests Summary FY20 City manager Recommended Budget pages in relation to the General Fund On File: City Manager’s Recommended Budget for FY20 Report compiled on: 5/31/19 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 211 Monday, June 11, 2018General Fund Work SessionFiscal Year 2019-2020212 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•Supports such basic services as the General Administration, Police, Fire, Finance, Recreation, and Library services22,902,157 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 40,000,000General Fund for the last 10 years and CM Recommended FY20RevenueExpendituresFund balance213 General Fund‐ Reserve ‐ 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,0005,509,428 5,831,829 General Fund‐ Fund Balance214 General Fund‐ Strategic Plan EffortsStrategic Vision 1‐ Engaged Community •Updating and adding software tools for greater transparency•Increasing Community EngagementStrategic Vision 2 ‐ Innovative Economy•Strategically investing in infrastructure as a mechanism to encourage economic development.•Support retention and growth of both the traded and local business sector Strategic Vision 3 ‐ Safe, Welcoming Community•Continuing to implement the management record system to update Public Safety Technology and systems•Developing a City/County Social Service network•Improving emergency preparednessStrategic Vision 4‐ Well Planned City•Continued efforts towards Parks & Trails Maintenance DistrictStrategic Vision 5 ‐ Creative Learning Culture•1% for ArtStrategic Vision 6 ‐ Sustainable Environment•Facility structure inventory to aid with vulnerability assessment and resiliency framework•Forestry, Parks and Open space and Cemetery efforts for positive climate impact and habitatStrategic Vision 7 ‐ High Performance Organization•Working towards an innovative culture•Added training•Performance measure development and tracking215 General Fund‐ RecommendedPersonnel & Benefits66%Operations30%Capital3%Debt Service0%Transfers1%GENERAL FUND EXPENDITURES BY TYPEProperty Taxes49%Gallatin County Option5%Penalty & Interest0%Grants0%County Shared ‐Library2%State Shared22%General Government Charges10%Fines and Fees3%Miscellaneous Revenue1%Transfers8%GENERAL FUND REVENUE BY TYPE216 Salaries & BenefitsPay Philosophy•Attract and retain high quality employees by paying fair and competitive wages and benefits.•Market Studies‐ Used same objective methodology for last 10+ years. •Survey 20 cities in the intermountain west. •Compares job duties, responsibilities, and authorities in job descriptions and class specs, not just titles.•Uses the average of the comparators to determine market wage for our positions. •Pay band system which groups jobs with like skill sets, authorities and responsibilities•Pay must be bargained for Union positions.  City has brought consistent market study information to bargaining tables, with varying success.  217 General Fund – Personnel FactorsComparison FY19’s Budget Estimate to FY20’s Budget Estimate•Union Agreements•Police•Fire•Teamsters‐ currently in negotiations•MPEA‐ currently in negotiations•Non Represented Employees•Position Turnover – Retirement of senior staff/hiring highly qualified. •Health Insurance Elections ‐ open enrollment. •Fire Fighter Workers Compensation increase $105,000218 General Fund – Personnel FactorsComparison FY19’s Budget Estimate to FY20’s Budget Estimate•Changes in Employer non‐wage costs•Funding full positions in FY20 that were only partially funded in FY19. •Re‐organizations or changes in home‐department for a position.  219 General Fund By DepartmentCity Commission1%City Manager4%Municipal Court3%City Attorney4%Finance3%Facilities Management5%Information Technology4%Human Resources2%Police26%Police State  Pension (Non‐Departmental)5%Fire16%Fire State  Pension (Non‐Departmental)3%Cemetery2%Parks7%Library7%Recreation6%Economic Development1%Sustainability0%Non‐Departmental4%220 City Commission‐ Budget•Remainder of Technology for the Commission room•Municipal Election YearPersonnel56%Operations44%City Commission131,266 82,200 158,882 126,995 ‐ ‐ 50,000 100,000 150,000 200,000Personnel Operations CapitalCity CommissionFY19FY20 Recommended221 City Manager‐ Budget•No Major changes•Reduction in operational costsPersonnel80%Operations20%City Manager1,068,849 268,189 ‐1,045,787 265,941 ‐1,045  ‐ 200,000 400,000 600,000 800,000 1,000,000 1,200,000Personnel Operations Capital TransfersCity ManagerFY19 FY20 Recommended222 City Manager‐ Performance MeasuresCity Clerk•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.Neighborhoods•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.223 City Attorney‐ Budget•Assistant City Attorney added funded by the Planning Special revenue fund and the Internal Service Public Works Admin.•Slight operational increase due to office supplies and annual software licenses.Personnel89%Operations11%City Attorney1,119,223 139,650 ‐1,168,766 146,670 ‐ ‐ 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000Personnel OperationsCity Attorney FY19 FY20 Recommended224 City Attorney‐ Performance Measures225 Finance ‐ Budget•Slight decrease in operational funding due to cost savings in suppliesPersonnel80%Operations20%Finance756,309 199,538 2,000 805,392 196,288 ‐ ‐ 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000Personnel Operations CapitalFinance FY19FY20 Recommended226 Finance – 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.227 Facilities Management ‐ Budget•GF274 City Hall Bozeman Creek Improvement•Operational increases in maintenance costs of maintaining the City’s facilitiesPersonnel23%Operations75%Capital2%Facilities Management350,572 1,149,749 387,031 356,169 1,183,297 33,500  ‐ 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000Personnel Operations CapitalFacilities ManagementFY19FY20 Recommended228 Facilities Management – 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. 229 Information Technology ‐ Budget•Capital:•Operational increase mainly due to increase in software maintenance contracts712,461 392,538 226,186 740,212 418,981 177,000  ‐ 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000Personnel Operations CapitalInformation TechnologyFY19FY20 RecommendedPersonnel56%Operations31%Capital13%Information TechnologyGF062  PERSONAL COMPUTER (PC) RE              50,000 GF080  CITY‐WIDE SWITCHES&ROUTRS              50,000 GF265  SERVER REPLACEMENT GF                  20,000 GF289  SERVER FARM SOFTWARE UPGRADES               35,000 GF310  APC REPLACE  FOR DATA CEN              12,000 GF312  ISCI FLASH UPGRADE CHALL               10,000            177,000 230 Information Technology – 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.231 Human Resources ‐ Budget•Increase in operation is for funding Strategic Vision 7‐ High Performing Organization with addition training fundingPersonnel82%Operations18%Human Resources413,518 97,100 30,000 467,510 101,200 ‐ ‐ 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000Personnel Operations CapitalHuman ResourcesFY19FY20 Recommended232 Human Resources – 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 program233 Police ‐ Budget•Capital•Personnel‐ One Police Officer added•Operating cost increase mainly due to the funding of the Community Therapist program for $44,000Personnel85%Operations10%Capital5%Police7,311,634 843,152 387,000 7,633,773 902,848 458,000  ‐ 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000Personnel Operations CapitalPoliceFY19FY20 RecommendedGF053  PATROL CAR & EQUIP RPLCMT            118,000 GF166  COUNTY RADIO LEASE                   295,000 GF292  MOBILE DATA EQUIP                      30,000 GF293  NON‐PATROL CAR NEW VEHICLES               15,000            458,000 234 Police – Performance Measures95.2286.0171.880.082.0020406080100120140160Crime Rate per 1,000 CitizensAverage Crime Rate for Comparable MT Communities235 Fire‐ Budget•NOTE: Capital is funded through the Fire and Capital Equipment Special Revenue Fund)•Added 3 Fire Fighters•Slight increase in operational costs due to inflation and vehicle maintenance expensesPersonnel92%Operations8%Fire4,924,814 406,838 ‐5,064,056 436,269 ‐ ‐ 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000Personnel Operations CapitalFireFY19FY20 Recommended236 Fire‐ Performance Measures•Calculate the emergency call response times (call processing, turnout, and response). 237 Parks & Recreation‐ Recreation Budget•GF296 Swim Center Front Furnace•Slight increase in operations due to increasing costs Personnel58%Operations40%Capital2%Recreation1,059,330 768,079 116,500 1,131,688 771,025 37,080  ‐ 200,000 400,000 600,000 800,000 1,000,000 1,200,000Personnel Operations CapitalRecreationFY19FY20 Recommended238 Recreation – Performance MeasuresRecreation• 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.• Monitor and analyze program participant satisfaction. 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.•Determine the number of days the Swim Center and Bogert pools are closed due to mechanical failures.239 Parks & Recreation‐ Parks Budget•GF254 25thStreet From Oak to Tschache•Increase in operating costs with the addition of more parks coming online (Storymill and Sports Park)Personnel46%Operations39%Capital15%Parks1,079,632 861,989 326,000 1,031,864 893,636 333,000  ‐ 500,000 1,000,000 1,500,000Personnel Operations CapitalParksFY19FY20 Recommended240 Parks – Performance Measures• Track the total number of users & agreements (Park & Rec. programs, special events, community teams, traveling teams, etc.) 370400425340350360370380390400410420430FY18 FY19ApprovedFY20RecommendedPark Reservations3,532 6,987 5,280 6,000 7,000 3,161 5,780 5,420 5,500 6,000  ‐ 2,000 4,000 6,000 8,000 10,000 12,000 14,000FY16 FY17 FY18 FY19ApprovedFY20RecommendedHours spent on Sanitation & Turf MaintenanceTurf Maintenance (hours)Sanitation (hours)241 Parks & Recreation‐ Cemetery Budget•GF268 SW MT Veteran’s Cemetery•Increases in operational costs  mainly due to small equipment and toolsPersonnel66%Operations26%Capital8%Cemetery310,759 112,413 50,000 364,420 126,469 45,000  ‐ 100,000 200,000 300,000 400,000Personnel Operations CapitalCemeteryFY19FY20 Recommended242 Cemetery‐ Performance Measures• Track partnerships with user groups and stakeholders to illustrate the impact of cooperation and collaboration. (BSF, Cyclocross, farmer agreement, etc.)2,969 5,159 5,004 4,500 5,000  ‐ 1,000 2,000 3,000 4,000 5,000 6,000FY16 FY17 FY18 FY19ApprovedFY20RecommendedGroundskeeping & Cemetery Beautification Hours859583828739343633341618122220020406080100120140160FY16 FY17 FY18 FY19ApprovedFY20RecommendedNumber of Burials by TypeAsh BurialsStandard BurialsColumbarium Burials243 Library‐ Budget•Slight reduction in operating expenses•Separate fund for maintenance/capital projects‐ FY20 includes $230,000 to replace the carpet through out the LibraryPersonnel75%Operations25%Library1,606,758 574,752 ‐1,687,401 550,573 ‐ ‐ 500,000 1,000,000 1,500,000 2,000,000Personnel Operations CapitalLibraryFY19FY20 Recommended244 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. 67.3%68.1%067.4%65.0%6.7%6.1%05.4%5.0%15.3%14.5%014.2%14.0%10.7%11.3%013.0%16.0%0%10%20%30%40%50%60%70%80%90%100%FY16 FY17 FY18 FY19ApprovedFY20RecommendedCirculation TrendsPrintAudiobookVideoDownloadable eBooks & Audiobooks010020030040050060070080090005,00010,00015,00020,00025,000Programs Provided Program AttendanceLibrary Programs Offered vs AttendanceAdult Programs AttendanceChildren's Programs AttendanceAdult Programs ProvidedChildren's Programs Provided245 Economic Development‐ Budget•One Economic Development Technician added but funded through the Urban Renewal Districts and Parking funds.•Operating increase mainly due to $25,000 for consulting work for BroadbandPersonnel49%Operations51%Economic Development246,661 214,590 30,000 219,139 230,090 ‐ ‐ 50,000 100,000 150,000 200,000 250,000 300,000Personnel OperationsEconomic Development FY19 FY20 Recommended246 Economic Development – Performance Measures• Track the Big Sky Trust Fund grant values and associated number of jobs created.$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 $2,500,000FY16 FY17 FY18 FY19ApprovedFY20RecommendedUrban Renewal District Increment ValueDowntown TIFMidtown URDNorth Park URDNortheast Neighborhood URDSouth Bozeman Technology District$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 $‐ $2 $4 $6 $8 $10 $12 $14 $16 $18 $20FY16 FY17 FY18 FY19ApprovedFY20RecommendedMillions of DollarsUrban Renewal District Building Permit Valuations(Millions of Dollars)Downtown TIFMidtown URDNorth Park URDNortheast Neighborhood URDSouth Bozeman Technology District247 Sustainability‐ BudgetPersonnel77%Operations23%Sustainability124,326 112,490 9,000 127,115 38,675 ‐ ‐ 50,000 100,000 150,000Personnel OperationsSustainability FY19 FY20 Recommended•Reduction in operating due to the one time expense in FY19 for the Climate Action Plan update 248 Sustainability– Performance Measures•Track the savings realized from upgrades made to commercial buildings through the Bozeman Energy Project.•FY15‐19:  $19,792 incentives distributed•165,256 kWh saved (equivalent to removing 25 passenger vehicles for one year)•38,220 gallons of water saved•$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.249 Non‐ Departmental‐ BudgetOperations91%Other9%Non‐Departmental3,196,214 491,188 3,560,323 355,000  ‐ 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000Operations TransfersNon‐DepartmentalFY19FY20 Recommended•Insurance $491,391•General:•Contingency $150,000•Landfill monitoring $25,000•Band $40,440•Outside Entity Funding $175,000•Intercap loan payment $40,480•Transfers for landfill monitoring and landfill project loan payment•Non‐cash Police and Fire Pension250 Non‐ Departmental‐ Outside Entity Funding•HRDC Streamline $150,000•HRDC Fork & Spoon $25,000251 FY20 Typical City Residential Property Annual Cost Adjustments‐Levy/Assessment FY19 ApprovedFY20  RecommendedRecommended increase % ChangeStreet 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 IncreaseAverage Citizen ‐ 7,500 Sqft lot, TV $292,000, 10‐HCF water use 252 Budget Work‐SessionsMay 13 ‐ City Manager’s Recommended Budget presentationJune 3– Special Revenue Funds and BID/TIF work plans and budgetsJune 10 ‐ General Fund•June 17 – Enterprise and Internal Service Funds and TBID•June 24 ‐ Final Budget Adoption253 Memorandum REPORT TO: FROM: SUBJECT: MEETING DATE: Honorable Mayor and City Commission Kristin Donald, Finance Director Anna Rosenberry, Assistant City Manager Andrea Surratt, City Manager Fiscal Year 2020 (FY20) Outside Funding Requests June 10, 2019 BACKGROUND: Funding requests have come in different forms and in different times in the budget process. One time funding has become reoccurring in some cases and some requests come the day of final budget adoption via public comment. The funding amount is based on the request and many of the requests are vague and do not outline the specifics of the funding. In FY18, we did make formalized grant agreements for the funding so we get more supporting documentation for payment and to allow us the right to review financial records. In total in FY18 the City granted $242,175 all of which went to HRDC. We do give one mill to streamline and HRDC requested an additional $64,000 for streamline and $77,560 for general support. In total for FY19, $284,321 was granted to outside entities with HRDC receiving $236,321. We reviewed other local governments for their procedures. This was done by surveying Government Finance Officer Association (GFOA) and Engaging Local Government Leaders (ELGL) as well as searching budget trend setting cities’ websites. We have found that many have a formal application process that includes: Ties to citizen benefit, city vision, or strategic plan Nonprofit designation and minimum years of operations requirements some including annual financial reports Open process with application timeline or done through formal RFP Set pool of funding but some varied because there were different funding pools by type (i.e. grant funding was available not just General fund monies) For the Fiscal Year 2020, we formalized our funding requests from outside entities to avoid ad- hoc and last minute requests for funding that cannot be properly understood, analyzed, and 254 weighed-against the other funding requirements of the City. We posted an online application that included:  Nonprofit designation and number of years of operations, with links/copies of most recent annual financial reports;  Specific Dollar Amount requested for coming fiscal year;  Description of their need for funding and how that relates to City’s Strategic Plan, and/or benefits citizens of City, and  Statement about other entities they have requested funding from and what other partners will be assisting, in addition to the City of Bozeman. The applications were due at the end of March and funding requests were analyzed as part of the fund balancing processes. We have recommended funding of $230,000 of the $347,000 requested. Funding is recommended has been budgeted to the General Fund and the Workforce Housing fund (special revenue fund). 255 Name Gallatin County Mental HealthHAVEN HRDC HRDC LATE‐ Help Center 211Amount Budgeted$0‐ Budgeting $44,000 in Police budget for mental health program$30,000‐ Workforce Housing fund for emergency housing$25,000‐ Workforce Housing fund for warming center, $25,000‐ General Fund for Fork & Spoon.$150,000‐ General Fund for Streamline$0 230,000$       Amount Requested 47,000$                                                 30,000$                                                 50,000$                                                 200,000$                                               20,000$                                                 347,000$      FY19 City Grant Amount18,000$                                                  30,000$                                                  68,000$                                                  168,321$                                               ‐$                                                       284,321$       Years as non‐profit14 39 44 44 48Program Funding RequestedIn October 2018 with funding from the commission we piloted a .05 FTE transition coordinationservices in our crisis evaluation center, Hope House, with remarkable outcomes related to recidivism, safety andcosts. We seek funding for 1.0 FTE to ensure daily transition coordination and life‐saving follow‐up care is providedup to 30 days after discharge. HAVEN's advocacy program   Warming Center and Fork & Spoon operations Streamline Help Center 211Strategic Plan Bozeman’s prioritizes mental health partnerships to strengthen service networks and fund strategies to address social challenges.Funds from the City of Bozeman would support HAVEN's advocacy program, the core intervention service for survivors of domestic violence in our community.Help create a safe, welcoming communityBoth our Warming Center and Fork & Spoon Homestyle Kitchen incorporate the City's strategic goals of: an engaged community, fostering civic engagement and a safe, welcoming community, offering a safe, warm place to sleep and a dining experience that allows you to set the price. Additionally, our Fork & Spoon Homestyle Kitchen aligns with the City's strategic goal of an innovative economy with its pay what you can option and workforce development components.Streamline helps build a Sustainable Environment by taking more vehicles off the road, reducing overall carbon emissions, and by advocating for the addition of an electric bus to the fleet. Streamline also supports the High Quality Urban Approach by providing greater connectivity to trails and parks and more opportunities for walking and biking. Citizens benefit because it drives economic development, provides access, improves overall health, and creates a well‐connected and thriving community.Help Center 211 acts as a 24 hour, 365 day a year safety net for those at risk and most vulnerable in our community including our mentally ill population who make frequent use of the hotline for provision of daily emotional support. We work to stabilize the mentally ill, the suicidal, and attend to basic needs before they escalate into a crisis with calls to police and visits to the ER. We alsotrain volunteers and staff in suicide prevention skills elevating the awareness community‐wide256 Name Gallatin County Mental HealthHAVEN HRDC HRDC LATE‐ Help Center 211Other Partner Entities for the programWe receive funding from Medicaid, Gallatin County and Bozeman Deaconess Hospital to ensure Hope House isstaffed and serving the City of Bozeman and Gallatin County. We receive funding from private funders to ensurequality service delivery.Funding has been requested and received from the Montana Board of Crime Control, the Office on Violence Against Women, and the Department of Health and Human Services. HAVEN's advocacy program is the organization'slargest program and costs over $200,000 annually to operate. The City of Bozeman's support would cover nearly 14% of the program, which provides constant support to survivors of domestic violence in our community.HRDC secures funding annually from more than 20 federal awards, state funding sources, private foundations and personalcontributions. The two initiatives referenced here are not eligible for funding from federal or state funding sources, and securenearly 100% of funding from private contributions with some support from private foundations. This funding request represents 6.2% of funding for Our Warming Center and Fork & Spoon Homestyle Kitchen collectively.Requests will be made to Gallatin County, Montana State University, Bozeman Health, and the Tavern Association. Additionally, Streamline's Americorp VISTA is researching new funding sources. Local funding partners, other than the City of Bozeman, includeMontana State University, Associated Students of MSU, City of Belgrade, and Bridger Bowl.Help Center 211 receives funding from a variety of sources including: The Gilhousen Family Foundation, State of Montana, UnitedWay, and major Fundraising events ‐ Run for Your Life and Give Big,PY Revenues35,414,619$                                          1,146,995$                                            16,302,359$                                          16,302,359$                                          929,135$                                              PY Operating Expenditures36,621,427$                                          959,258$                                               15,247,976$                                          15,247,976$                                          979,799$                                              257 Pages from FY20 City Manager’s  Recommended Budget as they relate to the  General Fund Discussion held 6/10/19          Fund Summary Section‐  Pages 35‐38 General Fund Financials     258 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 35 259 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 36 260 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 37 261 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 38 262           Activity Detail Section‐  Pages 73‐ 90‐  City Commission, City Manager, City Clerk, Neighborhoods,  City Attorney, Finance, Facilities, Information Technology, and Human  Resources   Pages 93‐94 – Municipal Court  Pages 97 100– Police and Fire  Pages 133‐ 134 –Recreation   Pages 137‐146 –Parks, Cemetery, Library, Economic Development, and  Sustainability  Pages 149 – Non Departmental     263 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 73 264 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% 74 265 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 75 266 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% 76 267 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 77 268 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% 78 269 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 79 270 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% 80 271 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… 81 272 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% 82 273 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 83 274 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% 84 275 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 85 276 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 86 277 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 87 278 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% 88 279 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 89 280 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% 90 281 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 93 282 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% 94 283 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) 97 284 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% 98 285 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) 99 286 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 100 287 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 133 288 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% 134 289 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 137 290 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 333,000 138 291 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 139 292 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% 140 293 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 141 294 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% 142 295 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 143 296 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% 144 297 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 145 298 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% 146 299 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 149 300                 Appendix D General Fund Balance Minimum  Analysis Section‐  Pages 185‐190‐ Entire Appendix included                      301 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 185 302 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 186 303 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 187 304 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 188 305 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 189 306 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. 190 307