The URL can be used to link to this page

Home My WebLink About06-17-19 City Commission Packet Materials - A1. FY20 Enterprise Funds Budget Work Session - SUPPLEMENTAL MATERIALS r-7-11 * REVISED Enterprise and Internal Service Fund Work Session Fiscal Year 2019-2020 .�r BOZ E MAN c. �w B1 XTIY AE a {i• . a��SIT. O MT Enterprise and Internal Service Funds • Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. • Starting on page 57 through 63 of the Recommended Budget are the summaries for the Enterprise Funds • Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments on a cost-reimbursement basis. • Page 64 of the Recommended Budget are the summaries for the Internal Service Funds • We will be reviewing the details of the following Eight funds tonight: • Public Works Administration • Water Fund, including Water Impact Fees • Wastewater Fund, including Wastewater Impact Fees • Stormwater Fund • Solid Waste Fund • Parking Fund Strategic Plan Efforts Strategic Vision 1- Engaged Community • Continue to inform the public of work being conducted throughout the City • Increase outreach Strategic Vision 2 - Innovative Economy • Support business access Strategic Vision 3 - Safe, Welcoming Community • Support safe travel Strategic Vision 4- Well Planned City • Continue planning efforts for City infrastructure to support community growth and needs • Enhance pedestrian and cycling routes Strategic Vision 5 - Creative Learning Culture Strategic Vision 6 - Sustainable Environment • Ensure emission stay in line for City vehicles' • Increase recycling efforts • Watershed management Strategic Vision 7 - High Performance Organization • Performance measurement enhancements • System integration and data analysis tool development Public Works Administration Fund Internal Service Fund Public Works Admin Capital_ 3% e I s F FUND FY18 Actual FY19 Budget Recommended Internal Service Funds 750 - Public Works Administration Revenues General Government - - 2,381,457 2,945,060 Transfers - - 105,458 Total Revenues - 2,381,457 3,050,518 Expenditures Personnel & Benefits - 1,693,903 2,089,248 Operating - 588,006 780,812 Capital - 106,548 75,000 Total Expenditures - 2,388,457 2,945,060 Public Works Admin - Budget Public Works Internal Service Fund Portion Expenditures Capital Debt Service o% \ransfersr 0% ublic Works dmin 4% Salaries Benefits 81% Personnel: Funding half of a Assistant City Attorney Increase in operating costs due to billing machine leases Engineering- Budget Public Works Admin Internal Service Public Fund Portion works in Fund ENGINEERING 43% Department Budget by Division Department Division FY18 Actual FY19 Budget FY20 %Change Recommended PUBLIC WORKS ADM IN 4020-Engineering 498,128 1,016,765 1,255,758 23.5% PUBLIC WORKS ADM IN Impact Fee funds and A&C 10,209,806 20,797,020 24,267,664 16.7% TOTALS 10,707,934 21,813,785 25,523,422 1 FTE add- Engineering Inspector Operating increases due to increased consulting work for planning purposes Engineering — Performance measures Value of Internal Design Work $5m - $4,020,419 $4,221,440 $4M --------- ------ -- --- \. $3m $2,818,162 $2,959,070 MINN, $2M $1,808,893 _, ----- .. ----I I --_ Development Application Reviews $1m - -- ---- -- --- 250 226 220 230 231 0 zoo ----- FY16 FY17 FY18 FY19 FY20 162 Approved Recommended 150 -- --- Value of Consultant Work ioo —— *Actual FY19&FY20 numbers will vary due to the start/completion date of the approved projects. $30M 50 ----- $26,414,404 $25M $21,287,204 0 -- $20M - - — $18,233,770 FY16 FY17 FY18 FY19 FY20 $15,800,636 $15,673,809 \ Approved Recommended $15M - -- --- \ $10M ---- - -- --- -..._-- $51M --- $3,532,630 — $3,382,760 $2,943,755 --- $3,210,202 $2,892,959 0 FY16 FY17 FY18 FY19 FY20 Approved Recommended Value of Associated Construction Projects — Value of Consultant Design Contracts GIS (Strategic Services ) - Budget Public Works Admin Internal Service Fund Expenditures Debt Service Admin Portion 0% Transfers 0% GIS/ASSET ANAGEMENT 34 Salaries & Benefits 56% 1 FTE add- GIS Analyst Operational cost increase in software maintenance contracts and computer replacements Fund Fund - Division Project# Project Name Amount 750 Public Works Admin GIS03 ASSET MANAGEMENT SOFTWARE 751000 750 Public Works Admin Total 75,000 GIS (Strategic Services) - Performance • Track the web mapping applications: "Hours of Use" Asset Management Report Card Grade Level of ( Service 1 (defined)` Cityworks Users 120 112 \ 100 Measured Outcomes ( Overall Risk 90 (communicated) (analyzed) 83 ao 75 77 60 40 i Preventative Deferred Maintenance Maintenance zo (in place) (declining) FY16 FY17 FY18 FY19 FY20 Approved Recommended Water Fund Enterprise Fund Water Fund Financial Trends 25,000,000 20,000,000 15,000,000 - - 10,000,000 -- - 5,000,000 - ---- - --- ti° titi titi ti� ti� ti`' ti° ti� ti� e� �a Ka �o ,LO ,LO Revenues Expenditures Fund Balance Water Fund - Rates Enterprise Fund Water- Rate study Revised tiers S2.40 S3.24 S4-54 S6_81 _ 19 0 5 10 15 20 25 3-O 35 40 45 50 55 60 65 70 75 80 85 90 Hundred Cubic Feet (CCF) MTierl Tier2 M- ier3 MT3er4 $0.08 per HCF (hundred cubic feet of water) drought reserve per Rate change based on cost of service I I Single Family Incom Residential Total 5.0% 1 O_O% 1 O_O% O_O% 0.001/0 O.O% Multi Family R ide ntial Total I 5_00,-o 2.00/o 2_00M. 2.0o 2.0o 1_O% Commercial Total 5.Oo 8.0% 8.0% 8.00,46 8.0o 6_0% Government Total 5.Oo 20.0% 20_00/,o' 20.Oo 20.00 20.Oo M STT Total 5_0% 4_O% 4.09,1. 4_00,46 4.0% 4.O% Indus tria 1 Total 5_0% O_ % O_O% O_O% 0.00,-. 0.O% Water Fund - Expenditures Enterprise Fund Debt Ser 12% Personnel 21% Capital 22% Water Operations- Budget Water Fund Expenditures Debt Service Transfers 0% 0% _19dillis Billow, Salarie Capital Ben ter 27% 26, ations 45 �Ierating 47 Adding 1 FTE- Water operator Increase in operating due to the expanded water infrastructure and inflation Fund Fund- Division Project# Project Name Amount 600 Water-Operations W03 ANNUAL WATER PIPE REPLACEMENT 22,500 W04-20 WATER PIPE REPLACEMENT PROGRAM - 600 Water-Operations CONSTRUCTION 1,200,000 Water Operations- Performance Water Main Breaks/Leaks 100 Miles of Pipe (national standard = 31) 4.5 4 4 4 3.5 3.5 3 2.5 - 2.5 2.2 _. 2 - - — 1.5 - — — 1 -- -— - 4-12 Hour Disruption of Water Service/1,000 0.5 --- _ Accounts FY16 FY17 FY18 FY19 FY20 Approved Recommended national standard = 1.43) 0.8 0.75 0.7 0.7 0.7 0.6 0.4 0.4 New Water Service Line Inspections 0.2 475 0 ._ 48 0 FY16 FY17 FY18 FY19 FY20 470 461 Approved Recommended 460 449 450 450 440 430 424 — 420 410 400 390 FY16 FY17 FY18 FY19 FY20 Approved Recommended Water Treatment Plant - Budget Water Fund Expenditures Transfers Salaries& Debt Service Benefits Wat eatment Ai231% 16% t 0 Operating costs in FY19 had consulting Services not required in FY20. Fund Fund - Division Project# Project Name Amount 600 Water W62 REPLACE#3446 -WTP GMC SIERRA PICKUP 45,000 W66 SCADA METERS,TRANSDUCERS & 600 Water COMMUNICATIONS 10,000 600 Water W84 SOURDOUGH TANK INSPECTION & IMPROVEMENTS 600,000 600 Water W91 TURBIDIMETER REPLACEMENT 14,000 600 Water W94 MYSTIC LAKE BEAVER DECEIVER 35,000 W96 SOURDOUGH RAW TRANSMISSION MAIN FLOW 600 Water CONTROL VALVE AND METER 300,000 Water Treatment Plant - Performance Purchased Median Daily Surplus Hyalite Water (Indicating water the City purchased but did not use) N 3 2.42 — 2.5 2.30 2.17 0 2 190 Number of samples per 10,000 people N 1.50 0 1.5 1120 1 1100 1094 0.5 1080 0 1060 FY16 FY17 FY18 FY19 FY20 1060 - 1048 Approved Recommended 1040 1020 1015 1013 - Corrective vs Preventative Maintenance 1000 980 100i" 960 gp% FY16 FY17 FY18 FY19 FY20 60% Apprmted Recommended 40% 20% 0% -—-- FY16 FY17 FY13 FY19 FY20 Approved Recommended ■Hours of corrective maintenance Hours of preventative maintenance Water Conservation - Budget Water Expenditures r Transfers Water Fund conservation Debt Service 0% 5% 0% .20 FTE add- Short-term worker Increasing operational costs for program expansion Water Conservation - Performance Water Conservation Rebates 800 700 32 600 67 70 70 107 soo 48 128 150 160 127 400 60 137 135 140 soo — 133 - 200 385 --- 100 216 300 275 300 - ---- Gallons Per Capita Per Day(GPCD) Water Demand & 0 - -- - - - --._. _ - Population FY16 FY17 FY18 FY19 FY20 Approved Recommended 60,000 - — --- 140 �.=Toilets .............. 50,000 120 ■Clothes Washers """' Showerheads 40,000 100 ■Landscape&Irrigation System g 80 0 30,000 -- a Number of Outdoor Sprinkler System Assessments a 60 20,000 - - - - so 40 70 65 _. . 70 10,000 - 20 60 60 -- — 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 so 42 40 Total Water Demand(GPCD) —�-Population --- — 30 24 — - 20 - 10 0 - -- FY16 FY17 FY18 FY19 FY20 Approved Recommended Water Impact Fee Fund Enterprise Fund 20 FY18 Actual FY19 Budget Recommended 610 -Water Impact Fee Revenues Utilities & Enterprise 2,757,565 1,883,070 1,925,831 Interest Income (344) 5,000 5,000 Total Revenues 2,757,221 1,888,070 1,930,831 Expenditures Operating 152,736 - - Capital 279,399 1,586,020 6,295,729 Transfers - 600,000 667,323 Total Expenditures 432,135 1 2,186,020 6,963,052 Fund Fund - Division Project# Project Name Amount DAVIS 12" WATER MAIN & VALLEY CENTER WIF25 610 Water Impact Fee 16"WATER MAIN 7251729 610 Water Impact Fee WIF40 SOURDOUGH TRANSMISSION MAIN PHASE 2 41320,000 WIF47 GRAF AND S. 27TH WATER TRANSMISSION MAIN 610 Water Impact Fee OVERSIZE 1501000 610 Water Impact Fee WIF50 1-90 WATER MAIN EXTENSION 1/100/000 610 Water Impact FeeTotal 61295,729 Wastewater Fund Enterprise Fund FY20 Recommended Enterprise Funds 620 -Waste Water Fund Revenues Penalties & Interest 23 - - State Shared 36,704 1,500 35,000 Utility & Enterprise 8,876,015 9,559,623 9,921,394 Interest Income - 91,238 80,000 Refunds & Reimbursements 29,035 - - Contributed Capital 4,102,663 - - Other Financing 1,007 - - Total Revenues 13,045,447 9,652,361 10,036,394 Expenditures Personnel & Benefits 1,987,336 2,017,844 2,128,979 Operating 3,267,033 4,069,269 4,129,133 Capital 1,502,439 3,352,500 1,627,500 Debt Service - 1,476,059 1,239,000 Transfers - - I - Total Expenditures 6,756,808 10,915,672 1 9,124,612 Wastewater Fund Enterprise Fund Wastewater Fund 30,000,000 25,000,000 20,000,000 - -- 15,000,000 ----- ----- - 10,000,000 --- - - — - - - - -- - -- — -- — -- - 5,000,000 -- -- -- ---- -- ell O,y O,6 O" Ooo w�a aea ti ti ti ti ti ti ti ti ti tiOyO �e`oc�` ,yo ,yo Revenues Expenditures Fund Balance Wastewater Fund - Rates Enterprise Fund Single Family Total 1 4.0% 0.0% 0.0% 0.0% 0.00/0 0.0% Multi Family Total F 4.0% 2.0% 2.0% 2.0% 2.0% 2.00/n Commercial Total 1 4.0% 6.0% 6.0% 4.0% 4.0% 4.0% Government Total 4.0% 6.0% 6.0% 6.0% 6.0% 6.0% MSU Total 4.0% 8.0% 8.0% 8.0% 8.0% 6.0% Industrial Total 3.0% 3.0% 3.0% 3.0% 3.0% Wastewater Fund - Expenditures Enterprise Fund Transfers 0% Pers®nnei & enefits Wastewater Operations - Budget Wastewater Fund Expenditures Debt Service _ Transfers 0% 0% Bene 26 Waste 1 FTE Add- Sewer Operator No significant changes Fund Fund - Division Project# Project Name Amount 620 Wastewater- Operations WW54 REPLACE#1783 - 1995 FORD DUMP TRUNK 100,000 WW07 ANNUAL WASTEWATER PIPE REPLACEMENT 620 Wastewater-Operations PROGRAM-DESIGN 22,500 WW08 WASTEWATER PIPE REPLACEMENT PROGRAM- 620 Wastewater - Operations CONSTRUCTION 1,000,000 Wastewater Operations - Performance Number of Overflow Events per 100 Miles of Main 1.8 ............................................................................................. 1.6 1.4 1.3 1.3 1.2 -...--------- - --- 1 0.8 -- - — 0.6 — 0.5 — Miles of Root Cut Mains 0.4 - - 70 0.2 0.14 - — - 61.2 0 60 - --- - FY16 FY17 FY18 FY19 FY20 50 50 50 Approved Recommended 50 ......••.••National Standard 40 - - --- ---- - Miles of Flushed Mains 30 -- -- - 70 20 - — - 60 60 60 10 - -- -- 5o 50 - 0 FY16 FY17 FY18 FY19 FY20 40 - Approved Recommended 30.9 30 26 -- 20 -- 10 -- 0 FY16 FY17 FY18 FY19 FY20 Approved Recommended Water Reclamation Facility - Budget Wastewater Fund Expenditures ra ✓� -Debt Service 0% 22% o Reclamation Facility 56% Capital m - Slight increase in operating costs and mainly in laboratory expenses Fund Fund - Division Project# Project Name Amount 620 Wastewater WW69 SMALL WORKS PROJECTS 100,000 620 Wastewater WW70 WRF FACILITY ENGINEERING & OPTIMIZATION 60,000 620 Wastewater WW88 RE-TUBE BOILER 25,000 620 Wastewater WW91 UPDATE CONTROLS NETWORK _ 20,000 620 Wastewater WW96 EAST GALLATIN RIVER AVULSION RESTORATION 300,000 Water Reclamation Facility - Performance 0 Calculate and monitor preventative vs corrective maintenance. Cost per Million Gallons of Wastewater Flow Treated Loading Per Million Gallons of Wastewater $2,500 Flow Treated Daily $2,162 $2,040 $2,000 70 64.7 $1,749 60 56.2 56.2 $1,600 47.6 50.0 $1,500 50 $1,300 40 30 _ ... $1,000 20 _ 10 � . - 1.8 3-93.4 3.3 $500 0 FY16 FY17 FY18 FY19 FY20 Approved Recommenced $0 FY16 FY17 FY18 FY19 FY20 Approved Recommended -:Phosphorus ■Nitrogen Wastewater Impact Fee Fund Enterprise Fund FY20 FUND FY1$ Actual FY19 Budget Recommended 630 -Waste Water Impact Fee Revenues Utility & Enterprise 1,810,489 1,282,208 1,320,674 Loan Proceeds - 7,985,000 5,200,000 Interest Income - 20,000 20,000 Total Revenues 1,810,489 9,287,208 6,540,674 Expenditures Operating 83,977 - 350,000 Capital 127,634 8,625,000 6,424,000 Debt Service - - 530,012 Transfers - - 39,405 Total Expenditures 211,611 8,625,000 7,343,417 Fund Fund - Division Project# Project Name Amount 630 Wastewater Impact Fee WWIF22 DAVIS-FOWLER INTERCEPTOR _ _ _ 125,000 630 Wastewater Impact Fee WWIF35 BABCOCK SANITARY SEWER UPGRADE 245,000 630 Wastewater Impact Fee WWIF37 HUNTERS WAY SEWER CAPACITY UPGRADE 350,000 630 Wastewater Impact Fee WWIF38 NORTON EAST RANCH OUTFALL DIVERSION 5,200,000 630 Wastewater Impact Fee WWIF42 MANLEY ROAD SEWER UPGRADE 504,000 630 Wastewater Impact Fee Total 6,424,000 Storm Water Fund Enterprise Fund Storm Water Financial Trends 2,500,000 2,000,000 - 1,500,000 1,000,000 500,000 - 2013 2014 2015 2016 2017 2018 2019 Budget 2020 Recommended ®Revenues �Expenditures Fund Balance Storm Water Fund - Rates Enterprise Fund Rate Increases in O 4% 4% 3% 3% 2% 2% 1% 1% 0% FY16 FY17 FY18 FY19 FY20 Storm Water Fund - Expenditures Enterprise Fund --7 ansfers Debt Service 10% Salaries& Benefits 1 FTE add- Stormwater Technician 35% apital Operating increases due to expanding system C 39% and construction costs Operating 16 0 Fund Fund- Division Project# Project Name Amount 670 Stormwater STDM01 DOWNTOWN TRUNK LINE REHAB 4001000 670 Stormwater STDM02 MANLEY DITCH REHAB 1001000 670 Stormwater ST0001 STORMWATER FACILITY PLAN 150,000 670 Stormwater Total 650,000 Storm Water Fund - Performance Enterprise Fund Construction Site Management Program Stormwater Facility Management Program 100% 100% 90% 90% - - 80% 80% 70% 70% 60% 53.0% 60% - -- ------ —- -----------.-- - -- 50% --- ---- - - 43.0%--- - --- - 50% --- - -- - --- ------ - - - 40% 33A96— 40% ° — _ --. — % 25.0% 25.056 25.0% 30/° 20.390. 20.0% 20.p95 30 ro 20% - - - - - - 20% - - - - - - - - - - - - - - - - - - 10% 2.495 6.03b 10% 2.0% 3.29c 3.2:c 3.2% ---- 050 _. !-• 0% rt�a Rom[[[•. FY17 FY18 FY19 FY20 FY17 FY18 F!19 FY20 Approved Recommended Approved Recommended Inspection Rate Annual Compliance Score Inspection Rate Annual Compliance Score - - - Inspection Target Annual Compliance Target - - - Inspection Target Annual Compliance Target Stream Health Report Card Grade I FY17 Actual FY18 Actual FY19 Approved FY20 Recom. n a D- D+ C- Solid Waste Fund Enterprise Fund Rate Study in progress, based budget on no rate change and continued average growth Solid Waste Trends 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenue �Expenditures -Fund Balance Solid Waste Fund - Expenditures Enterprise Fund Debt Service Transfers 00 0 2 Solid Waste Operators added and reduced &Benefits 2 short term workers- 1.6 FTE increase Operational costs increase due to increase in customers and increases in gas and oil. %&4V Fund Fund - Division Project# Project Name Amount 640 Solidwaste SW32 Front Load Truck Replacement 270,000 640 Solidwaste SW36 Side Load Truck- New 290,000 640 Solidwaste SW53 Pickup Truck 301000 640 Solidwaste SW55 Side Load Truck 300,000 640 Solidwaste Total 890,000 641 Landfill Closure Closure Costs 611417 641 Landfill ClosureTotal 61,417 Solid Waste Fund - Performance Enterprise Fund Residential Customers 14,000 12,000 11,173 11,500 12,000 9,600 10,100 10,000 - - - 8,000 ---- ----- 65.8% - 62.7% - 61.7% - 6,000 -- 72.3% - - 67.3% Tonnage Per Residential Customer 4,000 - - 1.80 2,000 27.7% --- 32.7% ��-- 34.2%, 37.3% 38.3% 1.60 0.24 0 - — 1.40 0.31 0.28 0 23 _ 0 24 w-- FY16 FY17 FY18 FY19 FY20 1.20 - --- - — Approved Recommended 1.00 Recycling&Refuse Customers ■Refuse Only Customer 0.80 - - 0.60 0.40 Tonnage Diverted From The Landfill 0.20 - - 30,000 0.00 -- FY16 FY17 FY18 FY19 FY20 25,000 -- -- — Approved Recommended 20,000 1 Refuse Tonnage Per Customer 2 Recycling Tonnage Per Customer 15,000 lit -- -- 10,000 --- - 5,000 — FY16 FY17 FY18 FY19 FY20 Approved Recommended Residential Refuse -]Commercial Refuse ■Roll-Off Refuse ■Residential Recycling ®Commercial Recycling ■Compost Parking Fund - Enterprise Fund Parking Fund 1,400,000 1,200,000 - - 1,000,000 - - 800,000 - 600,000 400,000 - -- — - --- ------ 200,000 ---- ---- - - - --- FY 16 FY 17 FY 18 Budget FY 19 Recommended FY 20 Revenue Exepnditures Fund Balance Parking Fund - Expenditures Enterprise Fund Debt Service Increase in operational costs, due to 0% increases in DMV fees, postage and roof snow removal Fund Fund - Division Project# Project Name Amount P004 SURFACE PARKING LOT HARDWARE & SOFTWARE 650 Parking SYSTEMS 15,000 650 Parking P020 PARKING VEHICLE LEASES 45,000 650 Parking P023 PARKING TECHNOLOGY PHASE II 150,000 650 Parking NEW IVR-Voice message system 20,000 650 Parking Total 230,000 Parking Fund - Performance Enterprise Fund • Calculate the percent of downtown land area devoted to off-street parking, to demonstrate a flat or declining trend over time (i.e. more land available for other uses). • Measure the effectiveness of on-street parking management by demonstrating that, over time, an increasing percentage of downtown block faces have occupancy rates within, but not exceeding, the target range of 75-85%. Measure fiscal health of the public parking management system by tracking, over time, a ratio of total revenue per paid public parking space to total cost per paid public parking space. FY20 Typical City Residential Property Annual Cost Adjustments- Average Property - 7,500 Sqft lot, TV $292,000, 10-HCF water use FY20 Recommen e FY19 Approved Recommended increase % Chang 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 (No BPSC) 724.66 760.52 35.86 5% Property Taxes ONLY BPSC 0.00 52.17 52.17 100% 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% Total Annual Estimated Increase 121.70 Monthly Increase 10.14 Budget Work-Sessions ✓ May 13 - City Manager's Recommended Budget presentation ✓ June 3 — Special Revenue Funds and BID/TIF work plans ✓June 10 - General Fund ✓June 17 — Enterprise and Internal Service Funds TBID June 24 - Final Budget Adoption