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.
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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%
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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.
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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‐SessionsMay 13 ‐ City Manager’s Recommended Budget presentationJune 3– Special Revenue Funds and BID/TIF work plans and budgetsJune 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
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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