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Home My WebLink AboutCommission Memo - FY13 Budget Work Session - UPDATED Streets Mtc and Stormwater.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Fiscal Year 2013 (FY13) Budget Work Session - UPDATE to Street Maintenance Information provided for May 14, 2012. MEETING DATE: May 14, 2012 AGENDA ITEM TYPE: Work Session RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you see fit. BACKGROUND: During the Budget Discussion on May 7, 2012, Commissioners gave feedback that they would like to see Street Maintenance and Storm Water Utility Budgets different from the those included in the City Manager’s Recommended Budget. This year, with the creation of a new Storm Water Utility, we had initially moved storm water related costs of street sweeping, leaf clean-up, permit fee, and sampling/monitoring costs from the Street Maintenance Fund to the Storm Water Utility fund. Because we don’t have the storm- water mapping or impervious surface information to charge property owners based on these factors, we are creating the Storm Water Utility with a very rudimentary monthly charge based on water-meter size. The suggested changes were: 1. Keep all Street Sweeping Costs (personnel, operations, capital) in the Street Maintenance Fund budget for now. 2. Keep all Leaf Clean-up Costs (personnel, operations, capital) in the Street Maintenance Fund budget for now. 3. Prepare a Storm Water Utility budget that, for the initial years of start-up, only includes costs associated with the initial mapping and utility development costs. As a result of these changes, revised budgets have been prepared, as well as revised 5-Year assessment/rate models. While we expect to be able to move to a more detail-based rate model for Storm Water charges within this 5-year timeframe, I have not made a guess as to what year that will be. The 5-year models currently show a consistency in what costs each of them include. Street Maintenance Fund: All of the original Street Sweeping capital costs that were in the adopted Street Maintenance Fund CIP for the next 5 years. Storm Water Utility Fund: Pared back to include only the specifically identified and necessary capital items in years 1-5 of the Utility. Regardless of when our “start-up” phase may end, we will need the Refurbished TV Van and will want to have funding available for the Storm Water Capital Improvements related to the MDOT Rouse Avenue project. At the time that a more equitable charge can be determined, we can add more storm water infrastructure projects to the CIP list. FISCAL EFFECTS: Although the Final Budget adoption has far-reaching fiscal effects, there are no immediate fiscal effects as a result of this work session. Framing these changes in terms of what a typical city resident would pay: Before (Presented on May 7, 2012) Assessment/Charge Annual Increase Street Assessments $ 3.14 Forestry Assessments - Property Taxes $47.00 Water Services $20.64 Sewer Services $29.88 Storm Water Services - 11 Months $38.72 Annual Increase $139.38 Monthly Increase $11.62 After Changes to Street Maintenance and Storm Water: Assessment/Charge Annual Increase Street Assessments $ 9.11 Forestry Assessments - Property Taxes $47.00 Water Services $20.64 Sewer Services $29.88 Storm Water Services - 11 Months $18.37 Annual Increase 125.00 Monthly Increase $10.41 Attachments: Streets Budget Details with Chart (revised) Streets 5-Year Assessment Estimate (revised) Storm Water Budget Details with Chart Storm Water 5-Year Charge Estimate Strom Water Method B Charge Estimates Report compiled on: May 9, 2012 Date: 5/10/2012 FY13 Operating Budget FY13 CM RECOMMENDED BUDGET STREET MAINTENANCE FUND DESCRIPTION FY13 CM RECOMMENDED BUDGET ADVERTISING $3,000.00 BOOKS & REFERENCE MTRLS $1,200.00 CHEMICALS $13,000.00 CLOTHING & UNIFORMS $4,100.00 COMPUTER SUPPLIES $2,000.00 COMPUTERS & SERVERS < $5K $1,150.00 CONSULTANTS & PROF SERV $8,400.00 CONTRACTORS $15,000.00 DUES & CERTIFICATIONS $1,280.00 ELECTRICITY $78,700.00 ENGINEERS $35,000.00 GASOLINE AND OIL $110,000.00 GENERAL $87,380.00 IMP:INFRASTRUCTURE+IMPROV $245,000.00 IN-STATE $5,000.00 INSURANCE $15,000.00 INTERNET $4,500.00 M&E:MACH+EQUIP/HEAVY TRUK $245,479.00 MAINTENANCE CONTRACTS $7,610.00 MEDICAL SERVICES $2,000.00 OFFICE SUPPLIES $1,800.00 OUT-OF-STATE $9,500.00 POSTAGE $200.00 PRINCIPAL $270,197.00 RENTS & LEASES $10,200.00 REPAIR & MAINT - OTHER $11,000.00 REPAIR & MAINT- BUILDINGS $15,000.00 REPAIR & MAINT- EQUIPMENT $160,750.00 ROAD SUPPLIES $85,400.00 SHIPPING & HANDLING $500.00 SMALL EQUIPMENT AND TOOLS $22,000.00 STREET SIGN REPAIR $5,000.00 SUBSCRIPTIONS $800.00 TELEPHONE $5,100.00 VEH MAINT FUND ALLOCATION $148,470.00 VEH:AUTOS + LIGHT TRUCKS $47,244.00 VEHICLE SUPPLIES $36,000.00 WATER SERVICE $2,500.00 TOTAL $1,716,460.00 0 80,000 160,000 240,000 320,000 ADVERTISING BOOKS & REFERENCE MTRLS CHEMICALS CLOTHING & UNIFORMS COMPUTER SUPPLIES COMPUTERS & SERVERS < $5K CONSULTANTS & PROF SERV CONTRACTORS DUES & CERTIFICATIONS ELECTRICITY ENGINEERS GASOLINE AND OIL GENERAL IMP:INFRASTRUCTURE+IMPROV IN-STATE INSURANCE INTERNET M&E:MACH+EQUIP/HEAVY TRUK MAINTENANCE CONTRACTS MEDICAL SERVICES OFFICE SUPPLIES OUT-OF-STATE POSTAGE PRINCIPAL RENTS & LEASES REPAIR & MAINT - OTHER REPAIR & MAINT- BUILDINGS REPAIR & MAINT- EQUIPMENT ROAD SUPPLIES SHIPPING & HANDLING SMALL EQUIPMENT AND TOOLS STREET SIGN REPAIR SUBSCRIPTIONS TELEPHONE VEH MAINT FUND ALLOCATION VEH:AUTOS + LIGHT TRUCKS VEHICLE SUPPLIES WATER SERVICE Street Maintenance Fund FY13 Operating and Capital Budget Note: 5/9/2012 Revised. Full Street Sweeping and Leaf Cleanup Costs remain in Street Maintenance for FY13. Street Maintenance District - 5 year ProjectionFY2013 Budget Preparation Estimated Proposed Projected Projected Projected ProjectedRate Increase10% 0.7% 4% 4% 4% 4%Customer Increase - sq ftg0% 0% 0% 1% 1% 1%Reserve For Curbs2% 2% 2% 2% 0% 0%Reserve for Reconstruction6% 6% 6% 0% 0% 0%8.7%FY12 FY13 FY14 FY15 FY16 FY17Beginning Fund Balance - Projected507,145 751,840 382,762 144,895 (104,404) (52,593) Estimated Revenues:Assessments 2,669,233 2,906,177 3,267,844 3,501,195 3,677,655 3,863,009 Street Cut Permits 10,000 15,000 15,000 15,000 15,000 15,000 Interest Earnings 10,000 10,000 10,000 10,000 10,000 10,000 Loans Proceeds 1,400,000 Total Estimated Revenues:4,089,233 2,931,177 3,292,844 3,526,195 3,702,655 3,888,009 Proposed Expenditures:Existing Personnel 1,192,586 1,270,442 1,308,555 1,347,812 1,388,246 1,429,894 New in FY11 - Reserve for Curbs 95,705 153,828 219,185 289,209 289,209 289,209 1,089,455.87 New in FY12 - Street Reconstruction 160,154 334,525 530,595 530,595 530,595 530,595 2,086,464.26 Operations 888,993 908,540 935,796 963,870 992,786 1,022,570 Debt Service, Intercap - 155,197 155,197 159,007 159,007 166,783 Approved CIP *with adjustments 1,507,100 477,723 381,383 485,000 291,000 375,000 Total Proposed Expenditures:3,844,538 3,300,255 3,530,712 3,775,493 3,650,844 3,814,050 Ending Fund Balance - Projected751,840 382,762 144,895 (104,404) (52,593) 21,365 Annual Assessments: Small Lot, 5,000 sq ft.69.77$ 75.84$ 84.94$ 90.03$ 93.64$ 97.38$ Average Lot, 7,500 sq ft.104.67$ 113.78$ 127.43$ 135.08$ 140.48$ 146.10$ Large Lot, 10,000 sq ft.139.56$ 151.70$ 169.91$ 180.10$ 187.31$ 194.80$ A. Rosenberry5/10/2012 Date: 5/10/2012 FY13 Storm Water Fund FY13 CM RECOMMENDED BUDGET - Revised DESCRIPTION FY13 CM RECOMMENDED BUDGET M&E:MACH+EQUIP/HEAVY TRUK $130,000.00 REGULAR EARNINGS $73,296.00 COMPUTER SUPPLIES $34,944.00 GENERAL $5,400.00 SMALL EQUIPMENT AND TOOLS $2,000.00 IN-STATE $1,500.00 TOTAL $247,140.00 0 40,000 80,000 120,000 160,000 M&E:MACH+EQUIP/HEAVY TRUK REGULAR EARNINGS COMPUTER SUPPLIES GENERAL SMALL EQUIPMENT AND TOOLS IN-STATE Storm Water Fund FY13 Budget Request NOTE: 5/9/2012 This revised Recommended Budget reflects all Street Sweeping and Leaft Cleanup costs remaining in the Street Maintenance budget. Storm Water Utility - 5 Year Budget & Rate ProjectionFY13 Budget Preparation Adopted Projected Projected Projected ProjectedProjectedRate Increase0% 0% 4% 4% 4% 4%Customer Increase - ??0% 0% 1% 2% 2% 2%FY12 FY13 FY14 FY15 FY16 FY17Beginning Fund Balance - Projected- - (22,140) 65,523 163,233 (7,531) Estimated Revenues:Storm Water Utility Charges - 225,000 236,250 250,425 265,451 281,378 Interest Earnings - - (221) 655 1,632 (75) Total Estimated Revenues:- 225,000 236,029 251,080 267,083 281,302 Proposed Expenditures:Personnel - Mapping - 73,296 75,861 78,517 81,265 84,109 Personnel - 60% of Street Sweeping/Leaf Cleanup Labor - - - - - Personnel - 34% Environmental Coordinator 18,835 19,495 20,177 20,883 Personnel - Rehab: Part-Time Foreman & 1 Seasonal 49,632 51,121 52,655 54,235 Mapping Equipment, Supplies, Training - 43,844 4,036 4,238 4,450 4,672 Capital Improvement Plan - 130,000 - - 279,300 - Total Proposed Expenditures:- 247,140 148,365 153,371 437,847 163,899 Ending Fund Balance - Projected- (22,140) 65,523 163,233 (7,531) 109,872 A. Rosenberry5/10/2012 METHOD BPer Meter Per Month, by Meter Size (similar to current Water Base Charge)Size: Charge/Month5/8"1.67$ 1.75$ 1.86$ 1.97$ 2.09$ 1"2.21$ 2.32$ 2.46$ 2.61$ 2.76$ 1 1/2"3.48$ 3.65$ 3.87$ 4.10$ 4.35$ 2"5.06$ 5.31$ 5.63$ 5.97$ 6.32$ 3"8.74$ 9.18$ 9.73$ 10.31$ 10.93$ 4"14.02$ 14.72$ 15.60$ 16.54$ 17.53$ 6"26.12$ 27.43$ 29.07$ 30.82$ 32.67$ 8"41.30$ 43.37$ 45.97$ 48.73$ 51.65$ FY13 FY14 FY15 FY16 FY17197,727.44$ 207,613.81$ 220,070.64$ 233,274.88$ 247,271.37$ 11,908.63$ 12,504.07$ 13,254.31$ 14,049.57$ 14,892.54$ 7,341.78$ 7,708.87$ 8,171.40$ 8,661.68$ 9,181.38$ 3,883.07$ 4,077.22$ 4,321.86$ 4,581.17$ 4,856.04$ 838.93$ 880.88$ 933.73$ 989.76$ 1,049.14$ 1,681.93$ 1,766.03$ 1,871.99$ 1,984.31$ 2,103.37$ 626.94$ 658.29$ 697.79$ 739.66$ 784.03$ 991.27$ 1,040.83$ 1,103.28$ 1,169.48$ 1,239.65$ 225,000.00$ 236,250.00$ 250,425.00$ 265,450.50$281,377.53$