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Home My WebLink AboutFiscal Year 2015 Budget Work Session, Enterprise and Special Revenue Funds_3 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director Chris Kukulski, City Manager SUBJECT: Fiscal Year 2015 (FY15) Budget Work Session Enterprise and Special Revenue Funds MEETING DATE: June 16, 2014 AGENDA ITEM TYPE: Action – Budget Work Session RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you see fit. BACKGROUND: Attached are a Budget Worksheets and other materials regarding our Enterprise and Special Revenue Funds. This information has been prepared to assist us in developing the City’s Final Budget, and is based on what is contained in the FY15 City Manager’s Recommended Budget, available at http://www.bozeman.net/Departments-(1)/Finance/Budgets-and-Financials.aspx. Based on feedback during this work session, and the 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 23, 2014. ENTERPRISE FUNDS: This will be an opportunity to discuss the details of the proposed budgets for our Enterprise Funds: 1. Water Fund (including Water Impact Fees) 2. Wastewater Fund (including Wastewater Impact Fees) 3. Storm Water Fund 4. Solid Waste Fund 5. Parking Fund All five funds are self-supporting operations, paid for with user fees. • Last year, we analyzed water and sewer rate requirements and adopted an increase in Wastewater rates for FY15 in the amount of 3%. We opted not to increase Water rates, based on the financial position of the water fund. • Stormwater Rates are expected to change in January (six-month period) to the Silver Plan that was proposed to the Commission in April. • The Solid Waste Fund budget was prepared without a rate increase. However, we believe we should consider a full cost-recovery rate for our 35-gallon garbage tote. This rate could be adjusted in August/September, according to last year’s rate study 20 recommendation. This would assist with long-term financial concerns in the Solid Waste Fund. • The Parking Fund’s budget has been prepared and proposed by the Parking Commission. SPECIAL REVENUE FUNDS: During the Work Session, we will cover the information in the following order: 1. Building Inspection Fund 2. Street Maintenance Fund 3. Tree Maintenance Fund (Forestry) 4. Community Housing Fund – Workforce Housing • The Recommended budget has an increase of 15% for the Street Maintenance Fund. • The Recommended budget has an increase of 2% for the Tree Maintenance Fund. • The Recommended budget allocates 0.5 mills (estimated at $45,000) for the Workforce Housing. 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. The funds discussed tonight have proposed budgets with changes in rates and fees that will affect all property owners and system users, including a small portion of property taxes related to Workforce Housing. As presented, the City Manager’s Recommended Budget is projected to have the following effects on the typical City resident: Typical Resident: Assessment/Charge CM Rec Budget Street Assessments $18.24 Forestry Assessments $ 0.35 Property Taxes $69.00 Water Services $0.00 Sewer Services $16.44 Storm Water Services $31.98 Annual Increase $136.01 Monthly Increase $11.33 Attachments: FY15 Enterprise Fund Budget Worksheet FY15 Special Revenue Budget Worksheet Report compiled on: June 1, 2014 21 June 26, 2014 - Budget Discussion Sheets Water Fund - FY15 Budget Worksheet The Water Plant, Water Operations Divisions and Public Works Administration (new in FY15) are paid for by the Water Fund. Public Works Administration information begins on page 139 of the City Manager’s (CM) Recommended Budget. Water Treatment Plant information begins on page 152 of the CM Recommended Budget document. Water Operations information begins on page 156 of the CM Recommended Budget document. Water Fund – FY15 Expenditure Total $8.4 Million The Water Fund is an enterprise fund that supports the operations of water treatment and distribution, as well as the administration of Public Works. It is a self-funded utility; the primary source of revenue is from water customer payments. The proposed budget for FY15 is as follows: Personnel: The FY15 budget proposes adding a full time (1.0 FTE) Water/Sewer Operator. The position will be funded 50/50 from the Water and Wastewater Funds. Personnel & Benefits 29% Operating 34% Capital 28% Debt Service 9% Water Fund Expenditures FY15 22 June 26, 2014 - Budget Discussion Sheets Capital Projects: With the construction of the new Water Plant construction completed, the Capital Projects budget includes water pipe replacement program funding. Water Fund Capital Projects Include: CIP GF065 Aerial Photography $ 60,000 CIP W30 Gauging Stations $ 40,000 CIP W28 CL-12 Water Tap Machine $ 20,000 CIP W29 Leak Correlator $ 45,000 CIP GF189 Refinish Green Storage Roof (shared) $ 10,000 CIP W04-15 Water Pipe Replacement Program $ 1,147,720 CIP W03 Engineering Design for Rehab $ 22,500 CIP W32 Line 18” Pipe From Plant to Sourdough $ 1,000,000 Total $ 2,345,220 Water Fund – FY15 Revenues Total $8.3 Million The CM Recommended Budget is based on no increase in water rates for FY15. Water utility charges are the main source of revenue, with minor amounts collected from interest income, misc. revenue sources and rents. Change for FY15: We have moved the majority of Public Works Administration and GIS costs out of the General Fund, based on the fact that their workloads relate predominantly to the Enterprise Funds. We propose accumulating them in a separate department in the Water Fund, with a “reimbursement” back to the water fund by all the other participants. As a result, additional revenues of $521,716 are budgeted for Public Works Administration charges to other departments. a. Public Works Reimbursements from other departments: $521,716. The total cost to be allocated to various departments includes all expenses of Public Works Administration, Engineering and GIS. Costs are allocated based on each department’s percent of total operating expenditures for the departments from our most-recently audited financial report. Water Fund 35% Wastewater Fund 31% Solid Waste Fund 15% Street Maintenance 13% Vehicle Maintenance 5% Stormwater 1% PUBLIC WORKS ADMINISTRATIVE COST ALLOCATION 23 June 26, 2014 - Budget Discussion Sheets b. Water sales With June still unaccounted for, we are trending ahead of our estimate for FY14, thanks to strong water sales in the summer of 2013. Annually, the months of July through October reflect the weather-related water sales changes. In wet years, we will see flat or declining sales; in dry years we will see expanded sales. The chart below shows water sales for those months during the past 5 years. We believe that the recovering economy has also impacted the sale of water in the City. c. Water Impact Fees are accounted for in a separate fund for budgeting purposes. Our rate models for FY14-18 assumed higher estimates of Impact Fee Revenues than we had seen in previous years. That estimate played-out and continues to surge, with FY14 Year to Date collections at $1.59 Million. Our budget estimate for FY15 was based on the 5-year average for collections (FY09-13). $554,000 $448,000 $532,727 $868,188 $775,816 $680,000 $939,000 $967,421 $1,044,056 $968,636 $716,000 $637,505 $846,638 $1,014,466 $961,084 $569,000 $475,526 $631,974 $657,635 $716,947 FY10 FY11 FY12 FY13 FY14 Metered Water Sales July August September October 24 June 26, 2014 - Budget Discussion Sheets d. Purchase of Water Rights have been included in our rate models, with $200,000 per year in utility money to purchase water rights. This recent policy change is meant to be in addition to the current “Cash in Lieu of Water Rights” program related to annexations and development projects. 25 Date: 6/3/2014 FY15 Water Fund FY15 CM RECOMMENDED BUDGET DESCRIPTION FY15 CM RECOMMENDED BUDGET ADDITIONAL EARNINGS $40,608.00 ADMINISTRATIVE OVERHEAD $594,672.00 ADVERTISING $16,000.00 BOOKS & REFERENCE MTRLS $4,200.00 CHEMICALS $260,000.00 CLOTHING & UNIFORMS $7,600.00 COMPUTER SUPPLIES $11,812.00 COMPUTERS & SERVERS < $5K $35,091.00 CONSULTANTS & PROF SERV $258,400.00 DIFFERENTIAL EARNINGS $1,020.00 DUES & CERTIFICATIONS $13,476.00 ELECTRICITY $120,000.00 ENGINEERS $40,000.00 F.I.C.A.$111,659.00 GASOLINE & OIL $2,500.00 GASOLINE AND OIL $42,500.00 GENERAL $678,980.00 GOODS PURCHSD FOR RESALE $125,725.00 HEALTH/DENTAL INSURANCE $294,468.00 IMP:INFRASTRUCTURE+IMPROV $2,220,220.00 IN-STATE $25,375.00 INSURANCE $139,824.00 INTEREST $408,991.00 INTERNET $12,000.00 LIFE INSURANCE $911.00 LONGEVITY $16,327.00 M&E:COMPUTER SOFTWARE $60,000.00 M&E:MACH+EQUIP/HEAVY TRUK $65,000.00 MAINTENANCE CONTRACTS $103,943.00 MEDICAL SERVICES $2,600.00 NATURAL GAS $48,000.00 OFFICE EQUIPMENT $8,000.00 OFFICE SUPPLIES $17,600.00 OUT-OF-STATE $31,750.00 OVERTIME $50,456.00 PERS $138,279.00 POSTAGE $24,850.00 PRINCIPAL $377,708.00 PROPANE GAS FOR BUILDINGS $10,000.00 REFUSE DISPOSAL $2,800.00 REGULAR EARNINGS $1,728,451.00 Water Fund Budget Summary with Chart.imr 26 Date: 6/3/2014 FY15 Water Fund FY15 CM RECOMMENDED BUDGET DESCRIPTION FY15 CM RECOMMENDED BUDGET RENTS & LEASES $6,500.00 REPAIR & MAINT - OTHER $11,000.00 REPAIR & MAINT- BUILDINGS $2,000.00 REPAIR & MAINT- EQUIPMENT $54,300.00 ROAD SUPPLIES $9,000.00 SHIPPING & HANDLING $500.00 SMALL EQUIPMENT AND TOOLS $4,500.00 SUBSCRIPTIONS $1,370.00 TAXES & ASSESSMENTS $7,900.00 TELEPHONE $13,093.00 UNEMPLOYMENT TAX $5,205.00 VEH MAINT FUND ALLOCATION $28,044.00 VEHICLE SUPPLIES $8,000.00 WATER SERVICE $35,000.00 WORKERS' COMP $64,783.00 TOTAL $8,402,991.00 Water Fund Budget Summary with Chart.imr 27 June 26, 2014 - Budget Discussion Sheets Wastewater Fund – FY15 Budget Worksheet Both the Water Reclamation Facility (WRF) and the Wastewater Operations Divisions are paid for by the Wastewater Fund. Wastewater Operations information begins on page 160 of the City Manager’s Recommended Budget document. Water Reclamation Facility information begins on page 163 of the City Manager’s Recommended Budget document. Wastewater Fund - FY15 Expenditure Total $6.4 Million The Wastewater Fund is an enterprise fund that supports the operations of wastewater treatment and distribution. It is a self-funded utility; the primary source of revenue is from wastewater customer payments. The proposed expenditure budget for FY15 is as follows: Personnel: The FY15 budget proposes adding a full time (1.0 FTE) Water/Sewer Operator. The position will be funded 50/50 from the Water and Wastewater Funds. Contracted Services: The Solvent Site Remediation Project is paid for by sewer customers. We have incorporated the new estimates for the clean-up and monitoring, as prepared by our consultants. The FY15 budget includes $507,926 for unreimbursed expenses related to the active bio-remediation and monitoring of the site. We have included this amount budgeted for contracted services, as it will be delivered by a number of vendors currently working under contract. Capital Projects: The Wastewater fund’s capital projects include: Personnel & Benefits 31% Operating 40% Capital 21% Debt Service**Added 8% Wastewater Fund Expenditures FY 15 28 June 26, 2014 - Budget Discussion Sheets Wastewater Fund Capital Projects Include: CIP WW26 Flusher Vacuum Truck Replacement $ 365,000 CIP GF189 Refinish Green Storage Roof (shared) $ 10,000 CIP WW07 Engineering Project Design $ 22,500 CIP WW08-15 Wastewater Pipe Replacement $ 914,000 CIP WW37 Upgrade Old PLCs and Firmware $ 29,000 CIP WW36 Upgrade Truck Barn $ 36,000 CIP WW39 Sandblast/Paint Old Clarifier Drives, Beaches etc. $ 15,000 CIP WW40 UV Building Shading Material $ 15,000 CIP WW41 Replace 4” Ductile Pipe Through Basement $ 15,000 CIP WW45 Final Clarifier Launder Covers $ 40,000 CIP WW46 Concrete Pad for Roll-off Truck Containers $ 14,000 CIP WW43 Seal Mixer Flanges on Digester 1 $ 20,000 Total $ 1,495,500 DEBT SERVICE – Due to a data entry error, debt service on the Water Reclamation Facility was not included in the City Manager’s Recommended budget. The debt service cost is split between the Wastewater fund and the Wastewater impact fee fund. An additional $584,268 in debt service will need to be added to the Wastewater Fund expenditure budget. $653,212 has already been included in the Wastewater Impact Fee Fund budget request. The rate model did include the full debt service amount, so the rates do not need to be increased to cover this data entry error. Wastewater Fund - FY15 Revenues Total $7.2 Million The CM Recommended Budget includes the 3% rate increase for all customer classes. Unlike water rates, wastewater rates do NOT see the fluctuation related to summer weather watering. Wastewater rates are based on a customer’s “winter-quarter average” water consumption. a. Wastewater utility charges are the main source of revenue, with minor amounts collected from interest income, and refunds/reimbursements. b. Wastewater Impact Fees are accounted for in a separate fund for accounting purposes. Like with Water rates, we increased our estimates of Wastewater Impact Fee revenues for FY12 and FY13. And, like with Water Impact Fees, that estimate has been significantly exceeded for actual revenues in FY13 and has been slightly exceeded for actual revenues in FY14 to date. 29 June 26, 2014 - Budget Discussion Sheets 30 Date: 6/3/2014 FY15 Wastewater Fund FY15 CM RECOMMENDED BUDGET DESCRIPTION FY15 CM RECOMMENDED BUDGET ADDITIONAL EARNINGS $26,117.00 ADMINISTRATIVE OVERHEAD $523,446.00 ADVERTISING $3,300.00 BLD:BUILDINGS+BLDG DESIGN $155,000.00 BOOKS & REFERENCE MTRLS $700.00 CHEMICALS $159,500.00 CLOTHING & UNIFORMS $5,600.00 COMPUTER SUPPLIES $5,912.00 COMPUTERS & SERVERS < $5K $3,200.00 CONSULTANTS & PROF SERV $615,426.00 DIFFERENTIAL EARNINGS $1,020.00 DUES & CERTIFICATIONS $2,342.00 DUES & SUBSCRIPTIONS $2,642.00 ELECTRICITY $400,500.00 ENGINEERS $80,000.00 F.I.C.A.$110,271.00 GASOLINE AND OIL $65,000.00 GENERAL $259,180.00 HEALTH/DENTAL INSURANCE $294,217.00 IMP:INFRASTRUCTURE+IMPROV $946,500.00 IN-STATE $14,450.00 INSURANCE $111,370.00 INTERNET $7,500.00 JANITORIAL CONTRACTS $11,500.00 LIFE INSURANCE $953.00 LONGEVITY $19,135.00 M&E:COMPUTER SOFTWARE $29,000.00 M&E:MACH+EQUIP/HEAVY TRUK $365,000.00 MAINTENANCE CONTRACTS $51,600.00 MEDICAL SERVICES $5,200.00 NATURAL GAS $54,750.00 OFFICE SUPPLIES $6,900.00 OUT-OF-STATE $20,950.00 OVERTIME $57,168.00 PERS $123,433.00 PERSONAL COMPUTERS $13,583.00 POSTAGE $20,300.00 REFUSE DISPOSAL $26,500.00 REGULAR EARNINGS $1,445,272.00 RENTS & LEASES $18,500.00 REPAIR & MAINT - OTHER $26,000.00 Wastewater Fund Budget Summary with Chart.imr 31 Date: 6/3/2014 FY15 Wastewater Fund FY15 CM RECOMMENDED BUDGET DESCRIPTION FY15 CM RECOMMENDED BUDGET REPAIR & MAINT- BUILDINGS $116,200.00 REPAIR & MAINT- EQUIPMENT $70,500.00 ROAD SUPPLIES $19,000.00 SEWER SERVICE $1,000.00 SHIPPING & HANDLING $900.00 SMALL EQUIPMENT AND TOOLS $13,400.00 SUBSCRIPTIONS $700.00 TAXES & ASSESSMENTS $31,000.00 TELEPHONE $8,620.00 UNEMPLOYMENT TAX $5,129.00 VEH MAINT FUND ALLOCATION $11,981.00 VEHICLE SUPPLIES $5,400.00 WATER SERVICE $3,950.00 WORKERS' COMP $64,472.00 TOTAL $6,441,189.00 Wastewater Fund Budget Summary with Chart.imr 32 June 26, 2014 - Budget Discussion Sheets Storm Water Fund – FY15 Budget Worksheet This is the City’s newest enterprise fund/utility. It was created in FY13, with rates adopted for the FY13 and FY14 Years. Storm Water program information begins on page 149 of the CM Recommended Budget document. For the first 6 months of FY15, the rates are proposed to stay the same as FY14. In January, 2015, the new rate model would be adopted to support the “Silver Plan” level of service. Stormwater Fund - FY15 Expenditure Total $6.4 Million Personnel: With the adoption of the new rate model, and the expansion of services under the “Silver Plan”, the stormwater utility will require additional personnel to manage the added maintenance projects, implementation of the new model etc. The FY15 budget proposes a Stormwater Program Coordinator (1.0 FTE), 2 Service Workers (1.0 FTE) to begin in January 2015, a part time Streets Sweeper (.25 FTE) to begin in January 2015, a Public Works Technician (0.5 FTE) to begin in January 2015, and a Stormwater Foreman (0.5 FTE) to being in January 2015. *Correction: We’re adjusting the “FTE” numbers down from the table in the Budget Message to indicate that they are full-time positions budgeted for half of the fiscal year. 33 June 26, 2014 - Budget Discussion Sheets Capital: There are no specific capital projects budgeted for, but based on the Silver Plan model, $145,000 has been budgeted for System Enhancements for FY15. Stormwater Fund - FY15 Revenues Total $970,508 The Stormwater department is funded mainly through Stormwater Utilities, with a minor amount of interest revenue. 34 Date: 6/3/2014 FY15 Storm Water Fund FY15 CM RECOMMENDED BUDGET DESCRIPTION FY15 CM RECOMMENDED BUDGET REPAIR & MAINT - OTHER $397,850.00 REGULAR EARNINGS $290,700.00 IMP:INFRASTRUCTURE+IMPROV $145,000.00 CONSULTANTS & PROF SERV $75,000.00 GENERAL $71,250.00 RENTS & LEASES $57,500.00 ADMINISTRATIVE OVERHEAD $9,546.00 COMPUTER SUPPLIES $6,696.00 MAINTENANCE CONTRACTS $3,275.00 GASOLINE AND OIL $3,000.00 OUT-OF-STATE $1,540.00 IN-STATE $1,510.00 TELEPHONE $960.00 DUES & CERTIFICATIONS $624.00 OFFICE SUPPLIES $500.00 INSURANCE $325.00 TOTAL $1,065,276.00 Storm Water Fund Budget with Chart.imr 35 June 26, 2014 - Budget Discussion Sheets Solid Waste Fund – FY15 Budget Worksheet The Solid Waste Fund accounts for our garbage collection and recycling divisions. Solid Waste Collection & Recycling information begins on page 167 of the CM Recommended Budget Document. Solid Waste Fund - FY15 Expenditures Total $2.9 Million Capital: There are two capital items requested for FY15 Solid Waste Fund Capital Projects Include: CIP SW30 Side Load Packer Replacement $ 138,043 CIP SW40 Overlay Landfill Road $ 70,000 Total $ 208,043 Personnel & Benefits 38% Operating 55% Capital 7% Solid Waste Fund Expenditures FY15 36 June 26, 2014 - Budget Discussion Sheets Solid Waste Fund - FY15 Revenues Total $2.65 Million This budget results in a deficit of approximately $267,000, drawing the funds cash balance to approximately $656,000 by year end. The revenue estimates for the sale of Roll-off and Dumpster services customarily increase in the summer and are difficult to estimate. Also, an increase to full cost-recovery on a 35 gallon tote would assist the fund. 37 Date: 6/3/2014 FY15 Solid Waste Collection & Recycling Fund FY15 CM RECOMMENDED BUDGET DESCRIPTION FY15 CM RECOMMENDED BUDGET ADDITIONAL EARNINGS $16,621.00 ADMINISTRATIVE OVERHEAD $245,718.00 ADVERTISING $65,000.00 CLOTHING & UNIFORMS $3,950.00 COMPUTER SUPPLIES $22,076.00 CONSULTANTS & PROF SERV $79,000.00 DUES & SUBSCRIPTIONS $400.00 ELECTRICITY $6,500.00 F.I.C.A $54,701.00 GASOLINE AND OIL $230,100.00 GENERAL $109,550.00 HEALTH/DENTAL INSURANCE $170,639.00 IMP:INFRASTRUCTURE+IMPROV $70,000.00 IN-STATE $1,750.00 INSURANCE $34,514.00 INTERNET $11,800.00 JANITORIAL CONTRACTS $5,100.00 LIFE INSURANCE $529.00 LONGEVITY $12,687.00 M&E:MACH+EQUIP/HEAVY TRUK $138,043.00 MAINTENANCE CONTRACTS $7,425.00 MEDICAL SERVICES $1,700.00 OFFICE SUPPLIES $6,500.00 OUT-OF-STATE $9,000.00 OVERTIME $23,288.00 PERS $65,156.00 PERSONAL COMPUTERS $28,135.00 POSTAGE $26,500.00 PROPANE GAS FOR BUILDINGS $12,000.00 REFUSE DISPOSAL $396,000.00 REGULAR EARNINGS $721,943.00 RENTS & LEASES $150.00 REPAIR & MAINT- BUILDINGS $2,000.00 REPAIR & MAINT- EQUIPMENT $159,000.00 ROAD SUPPLIES $5,000.00 SMALL EQUIPMENT AND TOOLS $1,250.00 SUBSCRIPTIONS $500.00 TAXES & ASSESSMENTS $29,500.00 TELEPHONE $2,300.00 UNEMPLOYMENT TAX $2,629.00 VEH MAINT FUND ALLOCATION $112,649.00 Solid Waste Fund Budget Summary with Chart.imr 38 Date: 6/3/2014 FY15 Solid Waste Collection & Recycling Fund FY15 CM RECOMMENDED BUDGET DESCRIPTION FY15 CM RECOMMENDED BUDGET VEHICLE SUPPLIES $1,950.00 WORKERS' COMP $39,101.00 TOTAL $2,932,354.00 Solid Waste Fund Budget Summary with Chart.imr 39 June 26, 2014 - Budget Discussion Sheets Parking Fund – FY15 Budget Worksheet The Parking Enterprise Fund is managed by the city’s Parking Commission. Their budget is developed with the help of the Parking Manger and approved by the City Commission. The Parking budget discussion begins on page 136 of the CM Recommended Budget Document. Due to an error in data entry, a corrected page 138 of the CM Recommended Budget Document is attached at the end of this packet. Parking Fund - FY15 Expenditures Total $464,778 Parking Fund - FY15 Revenues Total $541,685 The Parking Fund’s largest source of revenue is also the most unpredictable source: Fines & Forfeitures. These are the revenues derived from parking tickets issued to those that violate parking regulations. The second largest segment of revenue comes from the sale of Licenses and Permits at the parking garage and on the city-owned surface lots downtown. Personnel & Benefits 51% Operating 49% Parking Fund Expenditures FY15 40 June 26, 2014 - Budget Discussion Sheets Licenses & Permits $219,650 Fines and Forfeitures $279,000 Charges for Services $3,000 Interest Income $2,875 Other $37,000 Parking Fund - FY15 Revenues 41 Date: 6/3/2014 FY15 Parking Fund FY15 CM RECOMMENDED BUDGET DESCRIPTION FY15 CM RECOMMENDED BUDGET ADMINISTRATIVE OVERHEAD $51,749.00 ADVERTISING $500.00 BOOKS & REFERENCE MTRLS $500.00 CLOTHING & UNIFORMS $1,400.00 COMPUTER SUPPLIES $5,650.00 CONSULTANTS & PROF SERV $9,000.00 DUES & CERTIFICATIONS $300.00 ELECTRICITY $22,480.00 F.I.C.A.$12,044.00 GASOLINE AND OIL $4,900.00 GENERAL $51,900.00 HEALTH/DENTAL INSURANCE $42,300.00 IN-STATE $500.00 INSURANCE $18,499.00 JANITORIAL CONTRACTS $12,000.00 LIFE INSURANCE $110.00 MAINTENANCE CONTRACTS $7,500.00 NATURAL GAS $1,000.00 OFFICE SUPPLIES $4,100.00 OUT-OF-STATE $3,000.00 PERS $14,436.00 POSTAGE $9,000.00 REFUSE DISPOSAL $100.00 REGULAR EARNINGS $161,610.00 REPAIR & MAINT - OTHER $3,500.00 REPAIR & MAINT- BUILDINGS $1,500.00 REPAIR & MAINT- EQUIPMENT $3,000.00 ROAD SUPPLIES $125.00 SEWER SERVICE $1,000.00 STORM WATER $100.00 TAXES & ASSESSMENTS $4,500.00 TELEPHONE $4,450.00 UNEMPLOYMENT TAX $566.00 UTILITIES / INTERNET $1,500.00 VEH MAINT FUND ALLOCATION $1,800.00 VEHICLE SUPPLIES $750.00 WATER SERVICE $1,550.00 WORKER'S COMP $5,859.00 TOTAL $464,778.00 Parking Fund Budget Summary with Chart.imr 42 Department:PARKING Activity:Public Safety Department Expenditures by Category Department Expenditures by Division Department Expenditures by Fund FINANCIAL INFORMATION Category FY13 Actual FY14 Budget $ Change % ChangeFY15 Requested -10.47%$200,783 $264,636Salaries & Benefits ($27,711)$236,925 6.74%$555,608 $213,475Operating $14,378$227,853 100.00%$0 $0Capital $0$0 100.00%$0 $0Debt Service $0$0 100.00%$0 $0Transfers $0$0 Totals $756,391 $478,111 $464,778 $ Change % ChangeFY13 Actual FY14 BudgetDivision FY15 Requested 3310 Parking Administration ($784)-0.38%$225,253 $207,974 $207,190 3320 Parking Operations/Enforcement ($64,597)-33.23%$109,616 $194,412 $129,815 3330 Parking Garage Operations $52,048 68.73%$421,519 $75,725 $127,773 Totals $756,388 $478,111 $464,778 % Change$ ChangeFundFY13 Actual FY14 Budget FY15 Requested 650 Parking Enterprise Fund ($13,333)-2.79%$756,388 $478,111 $464,778 Totals $756,388 $478,111 $464,778 43 Building Inspection Fund – FY15 Budget Worksheet The Building Inspection Division information begins on page 133 of the City Manager’s Recommended Budget document. Revenues: This budget 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 $1,190,050 or $99,170/month. So far this fiscal year, monthly revenues have averaged $120,000/month, with our busiest quarter underway. Actual permit revenues for April were $186,815, with May at $174,194; this should be, our busiest quarter in years for the Building Inspection division with an estimated average of well over $160,000 per month. Expenditures: The Recommended Budget includes all of the existing department personnel, and a modest operating budget for the division for the year. Total estimated FY15 expenditures are: $1,504,810 Personnel budgets increased for .5 FTE of the Community Development Director (cost shared with Community Development Fund), the addition of a Fire Inspector, as well as two Building Inspector positions that were approved for hire mid-year. Excluding personnel costs, a total Building Inspection Fund operating and capital budget of $450,743 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 – $50,000 for Integrated Voice Response Hardware & Software. This is a customer-service system that allows citizens to utilize their phones for scheduling work and checking permits. o Additional $44,000 in Computer Supplies for operating software $160,000 $147,800 $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Q4 EST Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 FY14 FY13 FY12 FY11 FY10 Average of Monthly Building Fees 44  Payment of the City’s Administrative Overhead Allocation - $82,522  Consulting & Professional - $60,000 for increased use of 3rd party plan reviewers for structural and expedited plan review.  In-State Travel/Training - $35,000 for Inspection certification, training for recent code changes and community training. Budget Surplus or Deficit: Building Inspection Fund FY13 Actual FY14 Budget FY15 CM Rec Revenues $1,333,047 $1,160,700 $1,190,050 Expenditures $1,206,172 $1,228,610 $1,504,810 Surplus/(Deficit) $126,875 ($67,910) ($314,760) The resulting budget deficit is attributed to the completion of the computer-system capital items ($100,000 in FY14, $94,000 in FY15) and would draw down Building Inspection Fund cash reserve, which was at $1,005,484 at the end of FY13. This would leave an estimated Building Inspection Fund cash reserve of $749,298 at the end of FY15; in compliance with the state’s maximum of one-year’s worth of expenditures ($1.5 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 FY15 ending reserve amount at 49% of FY15 annual expenditures. 45 Date: 6/4/2014 FY15 Operating Budget FY15 CM RECOMMENDED BUDGET BUILDING INSPECTION FUND Building Budget Request with Chart.imr DESCRIPTION FY15 CM RECOMMENDED BUDGET ADMINISTRATIVE OVERHEAD $82,522.00 ADVERTISING $7,000.00 BOOKS & REFERENCE MTRLS $10,500.00 CLOTHING & UNIFORMS $3,500.00 COMPUTER SUPPLIES $64,500.00 COMPUTERS & SERVERS < $5K $18,000.00 CONSULTANTS & PROF SERV $75,000.00 DUES & CERTIFICATIONS $3,000.00 GASOLINE AND OIL $20,000.00 GENERAL $11,000.00 IN-STATE $35,000.00 M&E:COMPUTER HARDWARE $50,000.00 MAINTENANCE CONTRACTS $22,000.00 OFFICE SUPPLIES $10,500.00 POSTAGE $1,000.00 REPAIR & MAINT- BUILDINGS $6,000.00 REPAIR & MAINT- EQUIPMENT $15,000.00 SHIPPING & HANDLING $4,500.00 SMALL EQUIPMENT AND TOOLS $4,500.00 SUBSCRIPTIONS $250.00 TELEPHONE $6,500.00 VEH MAINT FUND ALLOCATION $471.00 TOTAL $450,743.00 46 Street Maintenance Fund – FY15 Budget Worksheet The Streets Department information begins on page 144 of the City Manager’s Recommended Budget document. Revenue The City Manager’s (CM) Recommended Budget includes a proposed assessment increase for FY15, totaling 15%.  10% General rate increase  2% Reserve for curbs increase  3% Street reconstruction 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. For the coming assessment year, we believe we should make some changes to the method of “capping” the assessable square footage of multi-residential properties, in an effort to improve the fairness of the system. These changes would be noticed to the public in July, for adoption in August. 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 that will require in assessment increases. Expenditures The following 5-Year Projection also describes the expenditures for Street Maintenance. Personnel Costs: $1,300,213  Due to our existing 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. Attached, you will also find a more detailed listing of Street Maintenance Fund operating and capital expenditures titled “FY15 Operating Budget”. The budget, excluding personnel, totals $2.8 Million this year. Notable items include:  Operating Expenditures: $1,503,000 (including pavement maintenance) o Road Supplies - $97,000 o Vehicle Supplies - $59,000 o Gas & Oil - $131,000 o Repair & Maintenance of Equipment - $181,500 o Contractors - $200,000 – NEW! Pavement Maintenance o Electricity for non-SID street lighting & traffic signals - $58,000  Capital Expenditures: $1,060,000 47 o CIP STR39 – Trailer Mounted Spray Patcher - $75,000 o CIP STR42 – Asphalt Hot Box - $35,000 o CIP STR11 – Medians & Boulevard Maintenance - $25,000 o CIP STR30 – Concrete Repair Program - $50,000 o CIP SCR01 – Curb Spot Repair - $50,000 o CIP SCR02 – Annual Street & Curb Replacement Project - $800,000 (location to be identified) o CIP STR20 – Bike Path Improvements - $25,000 (as recommended by BABAB) 48 Street Maintenance District - 5 year Projection FY2015 Budget Preparation Amended Projected Projected Projected Projected Projected Customer Increase - sq ftg 2%2%2%2%2% Rate Increase - General 1.9%10%3%4%4%4% Rate Increase - Reserve For Curbs 2.0%2%0%0%0%0% Rate Increase - Street Reconstruction 3.0%3%0%0%0%0% 6.9%15.0% General Street Maintenance FY14 FY15 FY16 FY17 FY18 FY19 Proportional Assessment Share 77%72%72%72%72%72% Beginning Fund Balance - Projected 1,209,874 850,521 423,537 183,181 (11,266) (166,058) Estimated Revenues: Assessments: Undesignated 2,514,236 2,820,973 2,963,714 3,143,908 3,335,057 3,537,829 Street Cut Permits 20,000 26,700 25,000 25,000 25,000 25,000 Interest Earnings 15,000 14,300 15,000 15,000 15,000 15,000 Penalty & Interest 20,000 20,000 20,000 20,000 20,000 20,000 Total Estimated Revenues:2,569,236 2,881,973 3,023,714 3,203,908 3,395,057 3,597,829 Proposed Expenditures: Existing Personnel 1,311,538 1,300,213 1,300,213 1,300,213 1,300,213 1,300,213 Operations 1,056,668 1,303,744 1,342,856 1,383,142 1,424,636 1,467,375 Debt Service, incl Intercap 255,000 245,000 130,000 130,000 130,000 130,000 Approved CIP *with adjustments 305,383 260,000 291,000 385,000 495,000 225,000 NEW: Increase Pavement Mtc 200,000 200,000 200,000 200,000 200,000 Total Proposed Expenditures:2,928,589 3,308,957 3,264,069 3,398,355 3,549,849 3,322,588 Ending Fund Balance - Projected 850,521 423,537 183,181 (11,266) (166,058) 109,183 New in FY11 - Reserve for Curbs FY14 FY15 FY16 FY17 FY18 FY19 Accumulated Assessment Amount 8%0%0%0%0%0% Beginning Designated Fund Balance - Projected 291,853 - - - - - ** Combined with Reconstructions for FY15 Estimated Revenues: Annual Assessments Designated: Curbs 204,113 - - - - - Proposed Expenditures: Approved CIP 375,000 - - Ending Designated Fund Balance - Projected 120,966$ -$ -$ -$ -$ -$ New in FY12 - Street & Curb Reconstruction FY14 FY15 FY16 FY17 FY18 FY19 Accumulated Assessment Amount 15%28%28%28%28%28% Beginning Designated Fund Balance - Projected 316,515 322,433 313,556 254,679 195,802 136,925 Estimated Revenues: Annual Assessments Designated: Reconstruction & Curbs 409,952 791,123 791,123 791,123 791,123 791,123 Proposed Expenditures: Approved CIP 525,000 800,000 850,000 850,000 850,000 850,000 Ending Designated Fund Balance - Projected 201,467$ 313,556$ 254,679$ 195,802$ 136,925$ 78,048$ Total Annual Assessments: Small Lot, 5,000 sq ft.81.07$ 93.23$ 96.03$ 99.87$ 103.86$ 108.02$ Average Lot, 7,500 sq ft.121.63$ 139.87$ 144.07$ 149.83$ 155.82$ 162.06$ Large Lot, 10,000 sq ft.162.17$ 186.50$ 192.09$ 199.77$ 207.77$ 216.08$ A. Rosenberry 6/9/2014 49 Date: 6/4/2014 FY15 Operating Budget FY15 CM RECOMMENDED BUDGET STREET MAINTENANCE FUND Street Budget Request with Chart.imr DESCRIPTION FY15 CM RECOMMENDED BUDGET ADVERTISING $3,000.00 BOOKS & REFERENCE MTRLS $1,200.00 CHEMICALS $13,000.00 CLOTHING & UNIFORMS $6,700.00 COMPUTER SUPPLIES $14,176.00 COMPUTERS & SERVERS < $5K $9,000.00 CONSULTANTS & PROF SERV $60,800.00 CONTRACTORS $273,000.00 DUES & CERTIFICATIONS $1,430.00 ELECTRICITY $81,700.00 GASOLINE AND OIL $140,000.00 GENERAL $232,111.00 IMP:INFRASTRUCTURE+IMPROV $950,000.00 IN-STATE $5,400.00 INSURANCE $15,000.00 INTEREST $8,000.00 INTERNET $4,700.00 M&E:MACH+EQUIP/HEAVY TRUK $110,000.00 MAINTENANCE CONTRACTS $21,647.00 MEDICAL SERVICES $2,000.00 OFFICE SUPPLIES $1,800.00 OUT-OF-STATE $10,500.00 POSTAGE $8,250.00 PRINCIPAL $237,000.00 REFUSE DISPOSAL $14,500.00 RENTS & LEASES $12,800.00 REPAIR & MAINT - OTHER $11,000.00 REPAIR & MAINT- BUILDINGS $4,500.00 REPAIR & MAINT- EQUIPMENT $189,000.00 ROAD SUPPLIES $99,000.00 SHIPPING & HANDLING $700.00 SMALL EQUIPMENT AND TOOLS $22,000.00 STREET SIGN REPAIR $5,000.00 SUBSCRIPTIONS $800.00 TELEPHONE $6,600.00 VEH MAINT FUND ALLOCATION $162,430.00 VEHICLE SUPPLIES $61,000.00 WATER SERVICE $9,000.00 TOTAL $2,808,744.00 50 Tree Maintenance Fund – FY15 Budget Worksheet The Forestry Department information begins on page 184 of the City Manager’s Recommended Budget document. Revenue The CM Recommended Budget recommends a 2% increase for Tree Maintenance Assessments. Total Revenues are estimated to be: $447,960. 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. Personnel: $345,851. No significant changes from FY15. Operations: $137,222  Gas & Oil - $12,900  General Supplies - $43,565 o Includes: Cost share trees - $14,315, Tree replacement vouchers - $22,500, etc.  General: Shops Complex Mtc. Share - $17,180 Capital: No capital items for FY15. 51 Tree Maintenance District - 5 year Projection FY2015 Budget Preparation Amended Budgeted Projected Projected Projected Projected Proposed Rate Increase 0%2%2%2%2%1% Estimated Growth in Assessable Sq Ftg 2%2%2%2%2%2% FY14 FY15 FY16 FY17 FY18 FY19 Beginning Fund Balance - Projected 252,213 139,349 104,236 71,943 42,995 17,682 Estimated Revenues: Assessments (FY14 Actual Billed)420,745 434,710 452,272 470,544 489,554 504,339 State Shared 250 Penalty and Interest 4,000 4,000 4,000 4,000 4,000 4,000 Interest Earnings 2,000 3,000 3,000 3,000 3,000 3,000 Sale of Cost-Share-Trees 6,000 6,000 6,000 6,000 6,000 6,000 Total Estimated Revenues:432,745 447,960 465,272 483,544 502,554 517,339 Proposed Expenditures: Existing Personnel 342,292 345,851 356,227 366,913 377,921 389,258 Operations 141,317 137,222 141,339 145,579 149,946 154,445 Capital 62,000 - - - - - Total Proposed Expenditures:545,609 483,073 497,565 512,492 527,867 543,703 Ending Fund Balance - Projected 139,349 104,236 71,943 42,995 17,682 (8,682) Annual Assessments: Small Lot, 5,000 sq ft.11.24$ 11.47 11.70 11.93 12.17 12.29 Average Lot, 7,500 sq ft.16.87$ 17.21 17.55 17.90 18.26 18.44 Large Lot, 10,000 sq ft.22.50$ 22.95 23.40 23.87 24.35 24.59 Tree Maintenance Fund FY2013 Actual FY2014 Budget FY15 CM Rec Revenues 446,460 432,745 447,960 Expenitures (435,411) (545,609) (483,073) Surplus/(Deficit)11,049 (112,864) (35,113) A. Rosenberry 6/9/2014 52 Date: 6/4/2014 FY15 Operating Budget FY15 CM RECOMMENDED BUDGET TREE MAINTENANCE FUND Tree Maintenance Budget Request with Chart.imr DESCRIPTION FY15 CM RECOMMENDED BUDGET ADVERTISING $1,800.00 BOOKS & REFERENCE MTRLS $500.00 CHEMICALS $500.00 CLOTHING & UNIFORMS $1,250.00 COMPUTER SUPPLIES $750.00 CONSULTANTS & PROF SERV $2,200.00 DUES & CERTIFICATIONS $850.00 ELECTRICITY $500.00 GASOLINE AND OIL $12,900.00 GENERAL $63,445.00 IN-STATE $4,000.00 INSURANCE $3,000.00 INTERNET $3,600.00 MAINTENANCE CONTRACTS $5,200.00 MEDICAL SERVICES $200.00 NATURAL GAS $300.00 OFFICE SUPPLIES $2,000.00 OUT-OF-STATE $1,500.00 PERSONAL COMPUTERS $1,000.00 POSTAGE $8,450.00 REPAIR & MAINT - OTHER $500.00 REPAIR & MAINT- BUILDINGS $1,000.00 REPAIR & MAINT- EQUIPMENT $6,000.00 ROAD SUPPLIES $2,000.00 SEWER SERVICE $100.00 SHIPPING & HANDLING $200.00 SMALL EQUIPMENT AND TOOLS $2,500.00 SUBSCRIPTIONS $200.00 TELEPHONE $1,550.00 VEH MAINT FUND ALLOCATION $6,927.00 VEHICLE SUPPLIES $2,000.00 WATER SERVICE $300.00 TOTAL $137,222.00 53 Community Housing Fund – FY15 Budget Worksheet Community Housing Fund (Fund 120) is included in the Community Services Expenditure Information on page 199. Community Housing Fund – FY15 Expenditure Total $90,000 The Community Housing Fund holds revenues from some previous housing loans that are slowly coming back to the city, and has also 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 $44,531 for Workforce Housing efforts. We have received one request for funding from Road to Home in the amount of $40,000, and a request to update the Workforce Housing Ordinance in the amount of $50,000. 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 2014, we estimate the available balance to be $70,145. The FY15 Approved Budget will result in an ending balance of $27,676 assuming no additional projects are funded. Workforce Housing Funding Within the Community Housing Fund Adopted 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 0.5 Mills FY06 FY07 FY08 FY09 FY10 FY11*FY12 FY13 FY14 FY15 Beginning Balance - 28,000 94,248 182,514 255,449 298,739 253,234 227,220 231,700 70,145 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 44,531 Interest Earnings - 6,285 8,166 7,335 5,000 4,495 2,955 2,595 3,000 3,000 Total Estimated Revenues:58,000 132,785 146,128 112,935 83,290 44,495 43,986 44,480 45,445 47,531 Expenditures: Road to Home - Administration 30,000 30,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 HRDC - Owner Occupied Home Rehab 50,000 HRDC - West Edge Project Downpayment Assistance 160,000 Habitat for Humanity - 4 Lots 60,000 Workforce Housing Ordinance Development/Update 6,537 7,837 50,000 Workforce Housing Administrator 20,025 Housing Needs Assessment 30,000 7,000 Total Proposed Expenditures:30,000 66,537 57,862 40,000 40,000 90,000 70,000 40,000 207,000 90,000 Ending Balance 28,000 94,248 182,514 255,449 298,739 253,234 227,220 231,700 70,145 27,676 54 Date: 6/11/2014 FY15 Operating Budget FY15 CM RECOMMENDED BUDGET COMMUNITY HOUSING FUND Community Housing Budget Request with Chart.imr DESCRIPTION FY15 CM RECOMMENDED BUDGET CONSULTANTS & PROF SERV $50,000.00 GENERAL $200,000.00 TOTAL $250,000.00 55