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Home My WebLink AboutCity Manager Budget Power Point Slide Handout P City Manager's Recommended Budget CITY OF BOZEMAN FY2015-2016 Budget Development Focus on Transportation Improvements—Increased Funding. State-wide Reappraisal of Residential and Commercial Property. Justice Center Facility—after failed voter initiative. Groundwork for Growth and Future Development of the City. 4 Strategic Plan Significant Municipal Code review of Development Regulations. 1 Budget Development — This Year ... ' P I I s W 'I -0 �I i 0 v�:�Y�E•'s a a1,° �.�i� i � � ;!W�CI'�' � I r f I -P : I• � 3 'o A { W Prior Years Budgets City Budget-All Funds *Excluding Interfund Transfers $120,000,000 $5,336,524 $3,492,841 $100,000,000 $2 500,000 --- $80,000,000 0$z,9so,270 —_-- $S,Os0,202 $4,336,576 $60,000,000 € rt $2 06$ s$291¢9j`a59 $40,000,000 �$C4P7d4o3 �74 e�s�63o � e $ZO 65325] ,$22 433 438 �,,N N Y l $20,000,000 $23,235,766 $72,384,35 �_,798,04 $25,003,45 1$27,668,27 j$28748,699 i $0 FY11 FY12 FY13 FY14 FY15 FY16 r,Personnel NOperations wCapital ea Debt Service INOWWWWWWO OWN— w___ 209 Prior Years Budgets Significant Investment in Capital 11 $266 Million in past 10 budget years. Past Increased Staffing in Public Safety and Criminal Justice. Now increases in Public Works and Community Development. Debt Service Amounts are still a small portion of total expenditures Significant Issues this Year Increasing Transportation funding Creation of a New Assessment District. Increases to Street Maintenance. Special Improvement District Projects. Requests for Added Staffing—demand for general services and utility expansion. Funding Story Mill Landfill Project costs. Allocating more money to Affordable Housing Efforts 3 FY 16 Total Budget CM Recommended Budget includes both o , n„and _'q ai spending authority. Capital spending is based on approved CIP schedules,with modifications. Listing of Capital Expenditures on page 214-215 ofthe Budget Document. Revenues Estimated = $ 93,943,426 Expenditures Estimated = $104,850,061 Change in Fund Balances = ($10,906,635) Planned spending of existing cash balances that have accumulated. Street Impact Fee Projects Wastewater Fund General Fund—Planned use of estimated carry-over for Professional Building Remodel. Revenue Sources Revenues by Source-All Funds-FY16 Other Property Taxes Financing 23% Other Sources Revenues 22% Special 1% Assessments Interest—_ — 2% Income Licenses& p/ Fines and Permits Forfeitures 2% 2% Inter- Charges for governmental Services 9% 39% 4 i r Top 10 - Largest Divisions/Projects Street Operations, Reconstruction, Construction $ 22,977,023 Police Department(incl State Ret.) $ 8,871,525' Water Storage Reservoir Construction-Sourdough $ 6,600,006 Water Plant-Operation $ 5,707,020 Fire Department(incl.State Ret.) $ 5,607,004 -___- _.--. Water&Sewer(Pipe)Operations $ 5,462,069 Water&Sewer Pipe Replacement $ 4,655,716 Community Development $ 4,105,314 Solid Waste Collection & Recycling $ 3,783,770 Water Reclamation Facility-Operation $ 3,416,691 All the Rest $ 33,663,929 FY16 TOTAL $ 104,850,0611 Largest Divisions/Projects FY16 Recommended Budget-$106 Million Street Maintenance Operations& All the Rest ,r Reconstruction 32% ,.� .ter 22% r , Police Department find 6` State Ret.) Water Reclamation Facility -_ Water Storage Reservoir Operation r,. Construction Sourdough 3% 6% �e �a Solid Waste Collection& Water Plant-Operation Recycling 6% 4% Water&Sewer(Pipe) Fire Department(incl.State Community Development Water&Sewer Pipe Operations Ret.) 4� Replacement 5% 5% 4% 5 Staffing Levels •Animal Control Officer-0.15 FTE • Library Assistant I-0.38 FTE • Librarian I—Technology Programs -0.50 FTE F—MMEN0100=1 •Water Conservation Technician—1.0 FTE i •Water Reclamation Facility—City Service Worker—1.0 FTE Staffing Levels City Employees Per 1,000 Residents 400.00 10.00 350.00 117 F1'15 EY p 300.00 1.50 � 250.00 a 200.00 9.00 0 ~ 150.00 100.00 8.50 50.00 0.00 1 16 8.00 TOTALEMPLOYEES 384.84 391.87 , :City E Rebyees/1,000 9.65 9.83 Residents 6 General Fund FY16 Revenues $27,363,109 FY16 Expenditures $27,729,572 Difference ($366,463) Estimated Ending Balance $4,767,131 Minimum Reserve, 16.67%of Revenues $4,560,516 General Fund - Reserve Unreserved Fund Balance (Cash Reserve) estimated $4.7 Millionat the end of FY16. This is$206,615 above our Minimum Reserve. Estimate Beginning Balance to have$450,000 of carry-over to be used for the Professional Building Remodel. Ordinance requires a special hearing if the Final Budget is to be adopted below a 16.67%reserve level. 7 Costs in the General Fund FY16 Recommended-General Fund Budget City Manager Commission 3% Economic Development i% Sustainability Courts 1%Recrea Von't�l�', 3% Attorney Library 5% ` ,..00h r 4% 6% Admin Sv 9%Fin(IT/HR) Parks 5% Facilities 5% Cemetery Public 2% Services/Streets 1°/� Police(incl.State Ret.) Fire)incl.State Ret) 30.1. 201% General Fund Revenues Other Financing Interest Income Other Revenues Sources 0% 0% .-. _... 8% Fines and Forfeitures 5% Charges for Services Property Taxes 7% 54% Inter-governmental 25% Licenses&Permits SpecialAssessments 1% 0% 8 General Fund Revenues Property Taxes Tax levy is at its maximum —less 12 mills. ® Levy of 223.71 mills, Increase of 34.95 mills. * Value of one mill from taxes is estimated to decrease by 8.6%. Levy can be increased, in many cases, to recover the same dollars as last year. "Floating"the levy. Intergovernmental Revenues -- Entitlement Share = There was a last-minute change in the waning hours of the Legislative Session. We are waiting final numbers from Department of Revenue. General Fund Priorities Continuation of Existing Commitments—and Program Support Streamline Funding -Increased this year. Landfill Project Loan Payments. Transfer to Community Development Fund for operational support. Future Capital Priorities of Justice Center and Aquatics Aquatics Center Design Continuation,smaller scale. Police Station/Court Facility contracted services,smaller scale. Accomplishing Commission Goals Strategic Planning Effort Transportation(Projects, including increased dollars to Streamline,to$140,000) 9 General Fund Capital REPLACEMENT OF 3 PATROLVEHICLES $162,000 POOL DESIGN—PART 2 75,000 MICROSOFT-OFFICE 2013 UPGRADE 70,000 PARKS LARGE DECK MOWER 59,000 CEMETERY IRRIGATION PROJECT DESIGN 50,000 STORMWATER ENHANCEMENT PROGRAM—SHOPS 50,000 SWITCH AND ROUTER REPLACEMENTS 40,000 REPLACEANIMAL CONTROLVEHICLE 33,000 ENERGY UPGRADESAT SENIOR CENTER 30,000 FIRE DEPARTMENT LIVE FIRETRAINING PROP 30,000 REPLACEMENT OF OVERHEAD DOORS—SHOPS 30,000 12 PASSENGERVAN—RECREATION PROGRAMS 15,000 CITY-WIDE BUILDING ADA IMPROVEMENTS 15,000 WIRELESS MICROPHONE SYSTEM—COMMISSION ROOM 8,500 Street Maintenance District Street Maintenance District Assessments: 6.4% FY15 Recommend a 12.2%increase for FY16. 6.9% FY14 8%-Targeting to add$1 Million over the next 3 years for 8.7%,'FY13 Pavement Maintenance supplies. This year,addition of $290,000. 18.0% FY12 4%-General increase for operations and capital projects. Average-size lot assessment increases$16.32/year; to$150.11/yr. e 10 New! Arterial & Collector Street District Arterial &Collector District Assessments: n/a FY15 Recommend creating this District this summer. Start billing Assessments in October 2015. Targeting to add$2 Million over the next 3 years for the local share of Arterial and Collector street projects,including the City's share of city-owned park projects along these roadways. This year,addition of$576,000. Would be combined with the 5-mill tax levy money from FY15 to complete the Davis/Baxter Lane intersection in FY16. Would replace the 5-mill tax levy in FY16 and forward. Average-size lot assessment would be$21,54. Forestry Tree Maintenance District Assessment: -1.2% 'FY15 Recommend 2%Increase. 0% FY14 0% FY13 100 Cost Share Trees. 0% FY12 200 Tree-Replacement Vouchers. No staffing changes or capital this year. Average-size lot will increase by$0.33 to$17.00 total. 11 Water Rate Increase rvx Recommend 3%increase for FY16. Recommend also adopting 3%increase for FY17. 0% FY15 0% FY14 Capital: Sourdough Water Tank Project$6.6 Million(Impact Fees) 3% FY13 Annual Water Pipe Replacements$2.0 Million 4.5% FY12 Pear Street Booster Station Rehab-$200,000 Professional Building Remodel-$164,000 Additional Staffing: Water Conservation Technician 1.0 FTE Average residential customer= increase$1.20/month. Wastewater Rate Increase Recommend 3%increase for FY16. Recommend also adopting 3%increase for HIT 3% +FY15 3% FY14 3% FY13_ Capital: 6% FY12 Annual Wastewater Pipe Replacements$1.1 Million South University District Project$1.1 Million(Impact Fees) Bridger Drive Extension Project$400,000(Impact Fees) Professional Building Remodel$164,000 Perforated Screen&Washer Covers WRF$140,000 Additional Staffing: Water Reclamation Facility—City Service Worker—1.0 FTE Average residential customer increases $1.40/month. 12 Storm Water Utility Rate Implementation (alreadyodopted) July—November 2015,Base Charges Only December 2015,Impervious Area Charges and Infrastructure Credits Capital: Design for Annual Pipe Rehab$22,500 Enhancement Project Design$22,500 11th&Lamme Separation System$20,000 Rouse and Lincoln Separation System$40,000 General System Enhancements$96,650 Additional Staff No added staff above FYI approvals.Work on filling those approved positions. Average residential customer increases$2.68/month in December. -average residential custorner does not receive infrastructure credit. Solid Waste Collection & Curbside Recycling 0%increase in rates. Capital: Side-load Truck Replacement$290,000 Curbside Truck Replacement $290,000 Frontload Truck Replacement$270,000 Side-load Packer Replacement$138,000 Compost Turner$80,000 Overlay Landfill Road$20,000 No Changes to Staffing. 13 Tax Levy — Estimated, Set in August Estimate of 223.71 mills. Highly dependent on the Reappraisal of Property Values. Won't receive certification until August. Using the information that was provided to us in November 2014. Show significant reduction in values for Commercial Properties. Show reduction in values for Residential Properties. This is likely to shift the tax burden from Residential Properties to Commercial Properties in Bozeman. Tax Policy set by the Legislature. The City can not change or effect how or when property is appraised. Tax Levy — Increase of 34.95 mills Below the Cap: Reduced 9 mills for 911 Levy. $722,000 Below the maximum levy cap by an additional 3 mills. $240,000 Additions: Includes the new debt service amounts owed on the TOP Bonds that were sold this fall. Increase of 5.36 mills total. Increased Workforce Housing Mills from 1 Mill to 3 mills. Increase in Permissive Medical Levy 6.03 mills. All Purpose Levy increased 21.13 mills. Median Homeowner=$771 in annual property tax. Will pay$96 more than last yea;: Prorated impact to Commercial Property could be a smaller increase,or decrease in property taxes. 14 FY16 Typical City Resident Annual Cost Adjustments Recommended Typical Resident`: Annual Increase Budget Street Maintenance Assessments $16.32: Forestry Assessments $0.33 NEW Arterial Street Assessment $21.54`,: Property Taxes $96.00 Water Services $14.46, k..Services.... .; ... ... .. w _. ...._ . ._.__. _, . . ... .._ _.. _. Sewer Services $16.80, Storm Water Services(Dec-June) $18.76 Annual 184.15' nn . I_. _.— _ _. ,_ _ . ........... .. w. ., .. ..,.._._ ....__m, Monthly Increase $15.35 Work Sessions/Hearings May 18:Transportation Budgets June 1: Business Improvement Districts and Tax Increment District Work-plans and Budgets June 8: General Fund June 15: Special Revenue Funds& Enterprise Funds June 22: Final Budget Hearing and Adoption June 29: 5t"Monday. Tentative date, if needed. 15