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HomeMy WebLinkAboutSpecial Revenue Funds Budget Work Session Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Fiscal Year 2014 (FY14) Budget Work Session *** COVER MEMO*** MEETING DATE: June 17, 2013 AGENDA ITEM TYPE: Work Session RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you see fit. BACKGROUND: Attached are a number of Budget Information Sheets. This information has been prepared to assist us in developing the City’s Final Budget for Fiscal Year 2014. The hearing for adoption of the Final Budget is tentatively scheduled for July 1, 2013. During the Work Session, we will cover the information in the following order: 1. Building Inspection Fund – FY14 Budget Work Session Sheets. 2. Street Maintenance Fund - FY14 Budget Work Session Sheets. 3. Tree Maintenance Fund – FY14 Budget Work Session Sheets. 4. Community Housing Fund – FY14 Budget Work Session Sheets. 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. Attachments: Listed Above Report compiled on: June 8, 2013 71 Building Inspection Fund – FY14 Budget Worksheet The Building Inspection Division information begins on page 132 of the City Manager’s Recommended Budget document. Revenues: This estimate was one of the most difficult to make, because the majority of department revenues come from the spring and summer months. The City Manager’s (CM) Recommended Budget estimates Building Inspection revenue of $1,160,700 or $96,725/month. So far this fiscal year, monthly revenues have averaged $109,000/month, with our busiest quarter underway. Actual permit revenues for April were $140,000, with May at $190,000; this should be, by far, our busiest quarter in years for the Building Inspection division with an estimated average of well over $150,000 per month. Expenditures: The Recommended Budget includes all of the existing department personnel, and a modest operating budget for the division for the year. With the most recent permit and plan activity, positions have been authorized to be added since the Recommended Budget was prepared. Total FY 14 Expenditures: $1,088,610 Plus: Plan Check Engineer, Fire Inspector: $ 140,000 (wages, benefits) - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 ?Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 FY13 FY12 FY11 FY10 FY09 FY08 Average of Monthly Building Fees 72 Total estimated expenditures are: $1,228,610 Excluding personnel costs, a total Building Inspection Fund operating and capital budget of $281,984 is proposed. Attached on the next page, you will find a break-down of the separate areas of the operating budget and a chart representing the same. As you can see, the three largest areas of the operating budget are: • Capital: Computer Hardware & Software – $100,000 for completion of the Electronic Plan Submittal project. • Payment of the City’s Administrative Overhead Allocation - $44,956 • In-State Training - $25,000 (the department is budgeting no out-of-state training this year) • Gas and Oil - $15,000, used for building inspector travel to job sites. • Computers and servers - $13,000 for 4 PC replacements and purchase of a large format printer for new electronic plan submittal project. 73 Date: 6/7/2013 FY14 Operating Budget FY14 CM RECOMMENDED BUDGET BUILDING INSPECTION FUND Building Budget Request with Chart.imr DESCRIPTION FY14 CM RECOMMENDED BUDGET ADMINISTRATIVE OVERHEAD $44,956.00 ADVERTISING $3,500.00 BOOKS & REFERENCE MTRLS $9,000.00 CLOTHING & UNIFORMS $3,000.00 COMPUTER SUPPLIES $3,500.00 COMPUTERS & SERVERS < $5K $13,000.00 CONSULTANTS & PROF SERV $7,500.00 DUES & CERTIFICATIONS $2,200.00 GASOLINE AND OIL $15,000.00 GENERAL $11,000.00 IN-STATE $25,000.00 M&E:COMPUTER HARDWARE $100,000.00 MAINTENANCE CONTRACTS $12,000.00 OFFICE SUPPLIES $7,500.00 POSTAGE $1,000.00 REPAIR & MAINT- BUILDINGS $3,000.00 REPAIR & MAINT- EQUIPMENT $9,500.00 SHIPPING & HANDLING $1,500.00 SMALL EQUIPMENT AND TOOLS $2,500.00 SUBSCRIPTIONS $250.00 TELEPHONE $6,500.00 VEH MAINT FUND ALLOCATION $578.00 TOTAL $281,984.00 74 Budget Surplus or Deficit: Building Inspection Fund FY12 Actual FY13 Budget FY14 Budget Revenues $935,993 $965,525 $1,160,700 Expenditures $787,904 $986,616 $1,228,610 Surplus/(Deficit) $148,089 ($21,091) ($67,910) The resulting budget deficit is attributed to the completion of the computer-system capital items ($100,000) and would draw down Building Inspection Fund cash reserve, estimated to be $984,393 at the end of FY13. This would leave an estimated Building Inspection Fund cash reserve of $916,483 at the end of FY14; in compliance with the state’s maximum of one-year’s worth of expenditures ($1.2 Million.) During FY09, the desired level of Building Inspection Fund reserve was discussed at length. We were targeting to develop a budget that would result in a reserve no less than 50% of annual expenditures. By State law, we can have no more than 100% of annual expenditures in reserve in the fund at the end of the year. This proposed budget is estimated to leave the FY14 ending reserve amount at 74% of FY14 annual expenditures. 75 Street Maintenance Fund – FY14 Budget Worksheet The Streets Department information begins on page 141 of the City Manager’s Recommended Budget document. Revenue The City Manager’s (CM) Recommended Budget includes a proposed assessment increase for FY14, totaling 11%. • 2% increase in our Reserve for Curbs. • 6% increase to establish a Reconstruction Reserve. • 3% Operating cost increase. We are anticipating an increase in revenues from “customer growth” this year of 2%. Street Assessments are based on square footage of lots. While we have had a number of small amount of annexations, we have also seen a good number of multi-family housing complexes permitted in the past 18 months. These buildings are being built on residentially zoned lots that had been capped for assessment purposes while they were bare ground. Once built, assessable square footage of these lots will increase. On the following page you will find a “5-Year Projection” of revenues and expenditures for the Street Maintenance Fund. We have utilized these long-range financial projections to give us an indication of what the current program costs, with small inflationary increases, and approved capital projects will require in assessment increases. You can see how our portions of the Maintenance Fund dedicated to Curbs and Reconstructions are performing. Fiscal Year 2014 is anticipated to be our final year of increases related to the Reconstruction fund; with one more increase of 2% for Curbs remaining in FY15. Expenditures The following 5-Year Projection also describes the expenditures for Street Maintenance, Curbs and Reconstructions. Personnel Costs: $1,292,000 • We are recommending the addition of another Street Maintenance Worker, split between the Streets crew and the Sign/Signal division. The position is needed to help maintain the 72 signals we currently have and assist with crosswalk painting. Last year, we were only able to complete the repainting of 151 of our 380 crosswalks. When the last position was added to the Sign/Signal crew (1988) we had 26 signals and 120 crosswalks to care for. In the winter, this position would join the snow- plowing weekend crews and assist with winter signal repairs. • Due to our most recently ratified labor contract, we expect to see total personnel costs remain somewhat flat in the fund, over the next 5 years. We successfully negotiated a contract that brings new positions on board at a lower rate than current employees, due to the actual labor-market conditions for the work. Actual savings will be dependent on employee turnover. 76 Attached, you will also find a more detailed listing of Street Maintenance Fund operating and capital expenditures titled “FY14 Operating Budget”. The budget, excluding personnel, totals $2.4 Million this year. Notable items include: • Capital: Machinery & Heavy Equipment - $175,383 for o CIP STR17: Single Axel Dump Truck and Plow $140,383 o CIP STR37: Tandem Drum Vibratory Asphalt Compactor $35,000 • Principal: Payment on S 8th Loan and Portion of Sweeper Leases - $247,000 • Repair and Maintenance of Equipment - $145,750. • Vehicle Maintenance Allocation - $152,876. • Gasoline & Oil - $140,000 • Infrastructure Improvements: $970,000 o CIP STR11: Medians & Boulevards $45,000 o CIP CR02: South Willson Curbs $350,000 o CIP CR03: Micropaver (Curbs Share) $25,000 o CIP CR03: Micropaver (Street Reconstruction Share) $125,000 o CIP REC04: Story Street Reconstruction project $400,000 o CIP STR20: Bike Path Improvements, (S. Willson, S 23rd, N 11th) $25,000 77 Street Maintenance District - 5 year Projection FY2014 Budget Preparation Amended Recommend Projected Projected Projected Projected Customer Increase - sq ftg 0% 2% 2% 2% 2% 2% Rate Increase - General 0.7% 3% 3% 3% 3% 3%Rate Increase - Reserve For Curbs 2% 2% 2% 0% 0% 0% Rate Increase - Street Reconstruction 6% 6% 0% 0% 0% 0% 8.7% 11.0% 5.0% General Street Maintenance FY13 FY14 FY15 FY16 FY17 FY18 Proportional Assessment Share 82%74%72%72%72%72% Beginning Fund Balance - Projected 604,094$ 268,036 (2,506) (55,133) (21,723) 35,529 Estimated Revenues: Assessments: Undesignated 2,374,647$ 2,504,571 2,631,303 2,764,446 2,904,327 3,051,286 Street Cut Permits 15,000 15,000 15,000 15,000 15,000 15,000 Interest Earnings 10,000 15,000 15,000 15,000 15,000 15,000 Penalty & Interest 20,000 20,000 20,000 20,000 20,000 20,000 Total Estimated Revenues:2,419,647 2,554,571 2,681,303 2,814,446 2,954,327 3,101,286 Proposed Expenditures:Existing Personnel 1,270,442$ 1,292,062 1,292,062 1,292,062 1,292,062 1,292,062 Operations 908,540 1,006,668 1,036,868 1,067,974 1,100,013 1,133,014 Debt Service, Intercap 99,000 130,000 130,000 130,000 130,000 130,000 Approved CIP *with adjustments 477,723 396,383 275,000 291,000 375,000 570,000 Total Proposed Expenditures:2,755,705 2,825,113 2,733,930 2,781,036 2,897,075 3,125,076 Ending Fund Balance - Projected 268,036$ (2,506) (55,133) (21,723) 35,529 11,740 New in FY11 - Reserve for Curbs FY13 FY14 FY15 FY16 FY17 FY18 Accumulated Assessment Amount 6%8%10%10%10%10% Beginning Designated Fund Balance - Projected 138,025$ 291,853 120,772 27,318 (66,137) 190,409 Estimated Revenues: Annual Assessments Designated: Curbs 153,828 203,919 256,545 256,545 256,545 256,545 Proposed Expenditures: Approved CIP - 375,000 350,000 350,000 Ending Designated Fund Balance - Projected 291,853$ 120,772$ 27,318$ (66,137)$ 190,409$ 446,954$ New in FY12 - Street Reconstruction FY13 FY14 FY15 FY16 FY17 FY18 Accumulated Assessment Amount 12%18%18%18%18%18% Beginning Designated Fund Balance - Projected 156,990$ 316,515 276,314 (88,886) 395,913 880,712 Estimated Revenues: Annual Assessments Designated: Reconstruction 334,525 484,799 484,799 484,799 484,799 484,799 Proposed Expenditures: Approved CIP 175,000 525,000 850,000 - - - Ending Designated Fund Balance - Projected 316,515$ 276,314$ (88,886)$ 395,913$ 880,712$ 1,365,511$ Total Annual Assessments: Small Lot, 5,000 sq ft.75.84$ 84.18$ 88.39$ 91.04$ 93.77$ 96.59$ Average Lot, 7,500 sq ft.113.78$ 126.29$ 132.61$ 136.59$ 140.68$ 144.90$ Large Lot, 10,000 sq ft.151.70$ 168.39$ 176.81$ 182.11$ 187.58$ 193.20$ A. Rosenberry 6/8/2013 78 Date: 6/7/2013 FY14 Operating Budget FY14 CM RECOMMENDED BUDGET STREET MAINTENANCE FUND Street Budget Request with Chart.imr DESCRIPTION FY14 CM RECOMMENDED BUDGET ADVERTISING $3,000.00 BOOKS & REFERENCE MTRLS $1,200.00 CHEMICALS $13,000.00 CLOTHING & UNIFORMS $4,600.00 COMPUTER SUPPLIES $2,000.00 COMPUTERS & SERVERS < $5K $5,285.00 CONSULTANTS & PROF SERV $10,800.00 CONTRACTORS $77,100.00 DUES & CERTIFICATIONS $1,430.00 ELECTRICITY $81,700.00 GASOLINE AND OIL $140,000.00 GENERAL $119,680.00 IMP:INFRASTRUCTURE+IMPROV $970,000.00 IN-STATE $5,400.00 INSURANCE $15,000.00 INTEREST $8,000.00 INTERNET $4,700.00 M&E:MACH+EQUIP/HEAVY TRUK $175,383.00 MAINTENANCE CONTRACTS $8,647.00 MEDICAL SERVICES $2,000.00 OFFICE SUPPLIES $1,800.00 OUT-OF-STATE $10,500.00 POSTAGE $200.00 PRINCIPAL $247,000.00 REFUSE DISPOSAL $14,500.00 RENTS & LEASES $10,200.00 REPAIR & MAINT - OTHER $11,000.00 REPAIR & MAINT- BUILDINGS $4,500.00 REPAIR & MAINT- EQUIPMENT $145,750.00 ROAD SUPPLIES $85,400.00 SHIPPING & HANDLING $500.00 SMALL EQUIPMENT AND TOOLS $21,000.00 STREET SIGN REPAIR $5,000.00 SUBSCRIPTIONS $800.00 TELEPHONE $5,100.00 VEH MAINT FUND ALLOCATION $152,876.00 VEH:AUTOS + LIGHT TRUCKS $26,000.00 VEHICLE SUPPLIES $36,000.00 WATER SERVICE $6,000.00 TOTAL $2,433,051.00 79 Tree Maintenance Fund – FY14 Budget Worksheet The Forestry Department information begins on page 183 of the City Manager’s Recommended Budget document. Revenue The CM Recommended Budget recommends no increase for Tree Maintenance Assessments. However, because of the annual assessment process, we still need to hold public hearings and adopt the same rate as last year. Total Revenues are estimated to be: $432,745. Expenditures In developing the budget for the Tree Maintenance Fund, we also customarily look at a 5- Year Projection of expenditures and revenues. This projection is attached. Also attached is a more detailed list of the Funds budget for operating expenditures. As you can see from that report, the top three areas of budgeted expenditures are: • Capital, Machinery/Heavy Trucks: CIP FOR06: Chipper Replacement $50,000. This item was originally scheduled for replacement in FY11, but was able to be pushed back due to careful use and maintenance. We are recommending its replacement in FY14. • Capital, Computer Software: Cityworks license (share) $12,000 • General - $63,505. Includes o $22,500 for 225 Tree Replacement Vouchers, o $9,375 for 125 Cost Share Trees, and o $11,000 for Elm Scale treatments in Cooper Park. o $1,250 Arbor Day Plantings • Gasoline and Oil – $12,000 for operating department vehicles. • Repair and Maintenance of Equipment – $6,000. 80 Tree Maintenance District - 5 year Projection FY2014 Budget Preparation Adopted Projected Projected Projected Projected Projected Proposed Rate Increase 0%0% 2% 2%2%2% Estimated Growth in Assessable Sq Ftg 0%2% 2% 2%2%2% FY13 FY14 FY15 FY16 FY17 FY18 Beginning Fund Balance - Projected 241,163 206,443 104,829 69,042 10,344 (18,988) Estimated Revenues: Assessments (FY13 Actual Billed) 412,495 420,745 437,743 455,428 473,827 492,970 Penalty and Interest 2,000 4,000 4,000 4,000 4,000 4,000 Interest Earnings 2,000 2,000 3,000 3,000 3,000 3,000 Sale of Cost-Share-Trees 10,000 6,000 6,000 6,000 6,000 6,000 Total Estimated Revenues: 426,495 432,745 450,743 468,428 486,827 505,970 Proposed Expenditures: Existing Personnel 336,465 342,292 352,561 363,138 374,032 385,253 Operations 124,750 130,067 133,969 137,988 142,128 146,392 Capital 62,000 - 26,000 - - Total Proposed Expenditures: 461,215 534,359 486,530 527,126 516,159 531,644 Ending Fund Balance - Projected 206,443 104,829 69,042 10,344 (18,988) (44,663) Annual Assessments: Small Lot, 5,000 sq ft.11.24$ 11.24$ 11.47 11.70 11.93 12.17 Average Lot, 7,500 sq ft.16.87$ 16.87$ 17.21 17.55 17.90 18.26 Large Lot, 10,000 sq ft.22.50$ 22.50$ 22.95 23.40 23.87 24.35 A. Rosenberry 6/8/2013 81 Date: 6/8/2013 FY14 Operating Budget FY14 CM RECOMMENDED BUDGET TREE MAINTENANCE FUND DESCRIPTION FY14 CM RECOMMENDED BUDGET ADVERTISING $2,550.00 BOOKS & REFERENCE MTRLS $500.00 CHEMICALS $500.00 CLOTHING & UNIFORMS $1,250.00 COMPUTER SUPPLIES $750.00 CONSULTANTS & PROF SERV $1,000.00 DUES & CERTIFICATIONS $850.00 ELECTRICITY $600.00 GASOLINE AND OIL $12,000.00 GENERAL $63,505.00 IN-STATE $4,000.00 INSURANCE $2,500.00 INTERNET $3,000.00 M&E:COMPUTER SOFTWARE $12,000.00 M&E:MACH+EQUIP/HEAVY TRUK $50,000.00 MAINTENANCE CONTRACTS $4,275.00 MEDICAL SERVICES $300.00 OFFICE SUPPLIES $2,000.00 OUT-OF-STATE $1,500.00 PERSONAL COMPUTERS $1,000.00 POSTAGE $4,200.00 REPAIR & MAINT - OTHER $500.00 REPAIR & MAINT- BUILDINGS $1,000.00 REPAIR & MAINT- EQUIPMENT $6,000.00 ROAD SUPPLIES $2,000.00 SHIPPING & HANDLING $200.00 SMALL EQUIPMENT AND TOOLS $3,500.00 SUBSCRIPTIONS $250.00 TELEPHONE $1,550.00 VEH MAINT FUND ALLOCATION $5,987.00 VEHICLE SUPPLIES $2,500.00 WATER SERVICE $300.00 TOTAL $192,067.00 82 Community Housing Fund – FY13 Budget Worksheet Community Housing Fund (Fund 120) is included in the Community Services Expenditure Information on page 194. Community Housing Fund – FY14 Expenditure Total $40,000 The Community Housing Fund holds revenues from some previous housing loans that are slowly coming back to the city, and also has been where we have deposited and recorded the activity of the City’s tax dollars dedicated to Workforce Housing. The CM Recommended Budget includes tax revenue of 1/2 mill (estimated at $42,445) for Workforce Housing efforts. We have received one request for funding from Road to Home, in the amount of $40,000 (letter attached.) For a number of years, the City has set aside general fund dollars/tax dollars for Workforce Housing efforts. Revenues set aside often outstripped expenditures. At the end of Fiscal Year 2013, we estimate the available balance to be $234,105 The FY14 Recommended Budget would result in an ending balance of $239,550, assuming no additional projects are funded. Workforce Housing Funding Within the Community Housing Fund Adopted CM Rec 1.0 Mill 2.0 Mills 2.0 Mills 1.46 Mills 1.0 Mills 0.5 Mills 0.5 Mills 0.5 Mills 0.5 Mills FY06 FY07 FY08 FY09 FY10 FY11*FY12 FY13 FY14 Beginning Balance - 28,000 94,248 182,514 255,449 298,739 253,234 227,220 234,105 Revenues: General Fund Transfer 58,000 126,500 137,962 Dedication of Tax Revenue 105,600 78,290 40,000 41,031 41,885 42,445 Interest Earnings - 6,285 8,166 7,335 5,000 4,495 2,955 5,000 3,000 Total Estimated Revenues:58,000 132,785 146,128 112,935 83,290 44,495 43,986 46,885 45,445 Expenditures: Road to Home - Administration 30,000 30,000 40,000 40,000 40,000 40,000 40,000 40,000 HRDC - Owner Occupied Home Rehab 50,000 Habitat for Humanity - 4 Lots 60,000 Workforce Housing Ordinance Development 6,537 7,837 Workforce Housing Administrator 20,025 Housing Needs Assessment 30,000 Total Proposed Expenditures:30,000 66,537 57,862 40,000 40,000 90,000 70,000 40,000 40,000 Ending Balance 28,000 94,248 182,514 255,449 298,739 253,234 227,220 234,105 239,550 83