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HomeMy WebLinkAboutWS2. Enterprise and Special Revenues Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director Chris Kukulski, City Manager SUBJECT: Fiscal Year 2016 (FY16) Budget Work Session Enterprise and Special Revenue Funds MEETING DATE: June 15, 2015 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 FY16 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 22, 2015. 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. • This year, we analyzed water and sewer rate requirements and are recommending an increase in Wastewater rates for FY16 & FY17 in the amount of 3%. Two years ago, we opted not to increase Water rates, based on the financial position of the water fund. • Stormwater Rates have been adopted; newly calculated base charges went into effect for customers this past month. In December, customers will be billed for their impervious lot area and receive any credit they are eligible for. The table below shows the cost of the impervious area fee for the 7-months that it will be charged in FY16. 253 • The Solid Waste Fund budget was prepared without a recommended rate increase. Last summer, the Commission adopted a full cost-recovery rate for our 35-gallon garbage tote, which is helping to support the fund. • The Parking Fund’s budget has been prepared and proposed by the Parking Commission. SPECIAL REVENUE FUNDS: On May 18, 2015, we reviewed budget for a number of Special Revenue funds and construction funds related to Transportation (Street Maintenance, Arterial & Collector Assessment, Street Impact Fees, Special Improvement Districts, etc.) During this Work Session, we will cover the following Special Revenue Fund information in this order: 1. Community Development Fund 2. Building Inspection Fund 3. Tree Maintenance Fund (Forestry) 4. Community Housing Fund – Workforce Housing • The Recommended budget has an increase of 2% for the Tree Maintenance Fund. • The Recommended budget allocates 3.0 mills (estimated at $45,000) for 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 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: Annual Increase Recommended Budget Street Maintenance Assessment $16.32 Forestry Assessment $0.33 NEW - Arterial Street Assessment $21.54 Property Taxes $96.00 Water Services $14.40 Sewer Services $16.80 Storm Water Services $18.76 Annual Increase $184.15 Monthly Increase 15.35 Attachments: FY16 Enterprise Fund Budget Worksheets FY16 Special Revenue Budget Worksheets On File: City Manager’s Recommended Budget for FY16 Report compiled on: June 8, 2015 254 June 15, 2015 - Budget Discussion Sheets Water Fund - FY16 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 149 of the CM Recommended Budget document. Water Operations information begins on page 153 of the CM Recommended Budget document. Water Fund – FY16 Expenditure Total $9.99 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 FY16 is as follows: Personnel: The FY16 City Manager Recommended budget proposes adding a full time (1.0 FTE) Water Conservation Technician. Personnel & Benefits 28% Operating 33% Capital 26% Debt Service 13% Water Fund Expenditures FY16 255 June 15, 2015 - 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 GIS01 – Service Request System (311) Internal $ 15,000 CIP W39 – Catwalk for the Pretreatment Area- WTP $ 10,000 CIP W25 – Replacement of WTP Vehicle $ 45,000 CIP WC02 – Water Conservation Budget Tools $ 45,000 CIP GF220 – Replace Overhead Doors – Shop Complex $ 10,000 CIP W37 – Pear St. Booster Station Rehab $ 200,000 CIP WW56 - Laurel Glen Vehicle Storage $ 50,000 CIP GF199 – Professional Building Remodel – 16% $ 163,709 CIP GF225 Cognos-Business Intelligence Upgrade $ 14,400 CIP W38 – Replace Water Operations Vehicle $ 27,000 CIP W03 – Engineering/Design for Pipe Replacement $ 22,500 CIP W04-16 – Water Piper Replacement 2016 $2,015,797 Total $ 2,618,406 Water Fund – FY16 Revenues Total $8.97 Million The CM Recommended Budget is based a 3% increase in water rates for FY16. Water utility charges are the main source of revenue, with minor amounts collected from interest income, misc. revenue sources and rents. Beginning in FY15, the Public Works Administration costs are recouped through internal billings to other City departments. a. Public Works Reimbursements from other departments: $1,260,128. 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. b. Water sales With June still unaccounted for, we are trending behind our estimate for FY15, due to lower water sales in September and October 2014. Water Operations 15% Water Plant 15% Wastewater Operations 17% Wastewater Plant 17% Solid Waste Collection 14% Street Maintenance 15% Vehicle Maintenance 6% Stormwater 1% FY16 Public Works Administration Cost Allocation 256 June 15, 2015 - Budget Discussion Sheets 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. During FY14 and FY15, there were no rate increases for metered water. c. Water Impact Fees are accounted for in a separate fund for budgeting purposes. Our rate models for FY15-19 assumed higher estimates of Impact Fee Revenues than we had seen in previous years. That estimate played-out and continues to surge, with FY15 Year to Date collections at $1.52 Million. Our budget estimate for FY16 was based on the 5-year average for collections (FY10-14). $448,000 $532,727 $868,188 $775,816 $713,561 $939,000 $967,421 $1,044,056 $968,636 $1,006,420 $637,505 $846,638 $1,014,466 $961,084 $820,027 $475,526 $631,974 $657,635 $716,947 $586,266 FY11 FY12 FY13 FY14 FY15 Metered Water Sales July August September October 257 June 15, 2015 - 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. This money is spent sporadically, as opportunities to purchase water rights are encountered. $1,756,918 $1,839,502 $1,519,058 $- $850,000 $858,500 $1,083,242 $1,344,000 FY13 FY14 FY15 YTD FY16 CM Rec Water Impact Fees Budgeted Revenues Actual Revenues 258 Date: 6/8/2015 FY16 Water Fund FY16 CM RECOMMENDED BUDGET DESCRIPTION FY16 CM RECOMMENDED BUDGET ADDITIONAL EARNINGS $41,147.00 ADMINISTRATIVE OVERHEAD $792,122.00 ADVERTISING $14,400.00 BLD:BUILDINGS+BLDG DESIGN $423,709.00 BOOKS & REFERENCE MTRLS $4,300.00 CHEMICALS $245,000.00 CLOTHING & UNIFORMS $7,900.00 COMPUTER SUPPLIES $24,359.00 COMPUTERS & SERVERS < $5K $9,800.00 CONSULTANTS & PROF SERV $403,500.00 DUES & CERTIFICATIONS $14,841.00 ELECTRICITY $152,000.00 F.I.C.A.$144,822.00 GASOLINE & OIL $2,500.00 GASOLINE AND OIL $44,500.00 GENERAL $689,480.00 GOODS PURCHSD FOR RESALE $206,725.00 HEALTH/DENTAL INSURANCE $349,923.00 IMP:INFRASTRUCTURE+IMPROV $2,048,297.00 IN-STATE $43,470.00 INSURANCE $141,500.00 INTEREST $515,010.00 INTERNET $12,000.00 LIFE INSURANCE $1,204.00 LONGEVITY $14,455.00 M&E:COMPUTER SOFTWARE $74,400.00 MAINTENANCE CONTRACTS $114,928.00 MEDICAL SERVICES $3,100.00 NATURAL GAS $48,000.00 OFFICE EQUIPMENT $8,000.00 OFFICE SUPPLIES $17,650.00 OUT-OF-STATE $71,255.00 OVERTIME $53,231.00 PERS $156,719.00 POSTAGE $27,350.00 PRINCIPAL $798,000.00 PROPANE GAS FOR BUILDINGS $10,000.00 REFUSE DISPOSAL $2,800.00 REGULAR EARNINGS $1,904,838.00 RENTS & LEASES $16,100.00 REPAIR & MAINT - OTHER $11,000.00 Water Fund Budget Summary with Chart.imr 259 Date: 6/8/2015 FY16 Water Fund FY16 CM RECOMMENDED BUDGET DESCRIPTION FY16 CM RECOMMENDED BUDGET REPAIR & MAINT- BUILDINGS $2,000.00 REPAIR & MAINT- EQUIPMENT $59,300.00 ROAD SUPPLIES $9,000.00 SHIPPING & HANDLING $700.00 SMALL EQUIPMENT AND TOOLS $4,500.00 STORM WATER $275.00 SUBSCRIPTIONS $1,170.00 TAXES & ASSESSMENTS $7,900.00 TELEPHONE $14,869.00 UNEMPLOYMENT TAX $8,871.00 VEH MAINT FUND ALLOCATION $22,198.00 VEH:AUTOS + LIGHT TRUCKS $72,000.00 VEHICLE SUPPLIES $8,000.00 WATER SERVICE $35,000.00 WORKERS' COMP $88,473.00 TOTAL $9,998,591.00 Water Fund Budget Summary with Chart.imr 260 June 15, 2015 - Budget Discussion Sheets Wastewater Fund – FY16 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 157 of the City Manager’s Recommended Budget document. Water Reclamation Facility information begins on page 160 of the City Manager’s Recommended Budget document. Wastewater Fund - FY16 Expenditure Total $9 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 FY16 is as follows: Personnel: The FY15 budget proposes adding a full time (1.0 FTE) City Service Worker for the Water Reclamation Facility. 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 FY16 City Manager Recommended budget includes $406,000 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. Personnel & Benefits 23% Operating 35% Capital 23% Debt Service 19% Wastewater Fund Expenditures FY16 261 June 15, 2015 - Budget Discussion Sheets Capital Projects: Based on preliminary information from the Draft Wastewater Master Plan (which was adopted on June 1, 2015) we included the estimated utility-fund (non-growth) costs of two projects described by the Plan. They are highlighted below. The remainder of the funding for those projects will come from Wastewater Impact Fees. Because of the timing of receipt of the Master Plan Draft, we were not able to include these in the CIP that was adopted this past winter. The Wastewater fund’s capital projects include: Wastewater Fund Capital Projects Include: CIP WW47 – Burrup Lift Station Rehab $ 100,000 CIP WW56 – Laurel Glen Vehicle Storage $ 50,000 CIP GF220 – Replace Overhead Doors at City Shops Complex $ 10,000 CIP GF199 – Professional Building Remodel – 16% $ 163,709 CIP GF225 – Cognos-Business Intelligence Upgrade $ 14,400 CIP WW48 – SLRAT Acoustic Sewer Pipe Assessment Tool $ 25,000 CIP WW07 – Engineering Project Design $ 22,500 CIP WW08-19 – Wastewater Pipe Replacement $ 1,074,919 Proposed: South University District (Utility Portion) $ 197,800 Proposed: Bridger Drive Extension (Utility Portion) $ 136,000 CIP WW38 – Perforated Screen & Washer Compactor $ 140,000 CIP WW39 – Sandblast & Paint Old Clarifier Drives $ 85,000 CIP WW45 – Final Clarifier Launder Cover $ 40,000 Total $ 2,059,328 Wastewater Fund - FY16 Revenues Total $7.9 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. 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. And, like with Water Impact Fees, that estimate has been significantly exceeded for actual revenues in FY13 and FY14, and is likely to exceed estimates by the end of FY15. 262 June 15, 2015 - Budget Discussion Sheets Capital Expenditures of Wastewater Impact Fees was have been budgeted at $1,186,200 to include the capacity- expanding portion of the Master Plan projects described above. Wastewater Impact Fee Fund Capital Projects Include: Proposed: South University District $ 922,200 Proposed: Bridger Drive Extension $ 264,000 Total $ 1,186,200 $989,946 $1,465,820 $1,139,447 $968,870.00 $820,000 $820,000 $820,000 $1,005,295.00 $1,065,500.00 FY12 FY13 FY14 FY15 YTD FY16 CM Rec Wastewater Impact Fees Budgeted Revenues Actual Revenues 263 Date: 6/8/2015 FY16 Wastewater Fund FY16 CM RECOMMENDED BUDGET DESCRIPTION FY16 CM RECOMMENDED BUDGET ADDITIONAL EARNINGS $23,252.00 ADMINISTRATIVE OVERHEAD $928,952.00 ADVERTISING $3,300.00 BLD:BUILDINGS+BLDG DESIGN $588,709.00 BONDS $1,079,000.00 BOOKS & REFERENCE MTRLS $700.00 CHEMICALS $352,500.00 CLOTHING & UNIFORMS $5,600.00 COMPUTER SUPPLIES $3,650.00 COMPUTERS & SERVERS < $5K $3,200.00 CONSULTANTS & PROF SERV $421,000.00 DUES & CERTIFICATIONS $2,342.00 DUES & SUBSCRIPTIONS $2,642.00 ELECTRICITY $419,500.00 ENGINEERS $70,000.00 F.I.C.A.$101,203.00 GASOLINE AND OIL $65,000.00 GENERAL $262,180.00 HEALTH/DENTAL INSURANCE $269,898.00 IMP:INFRASTRUCTURE+IMPROV $1,431,219.00 IN-STATE $18,250.00 INSURANCE $124,712.00 INTEREST $625,247.00 INTERNET $7,500.00 JANITORIAL CONTRACTS $11,500.00 LIFE INSURANCE $885.00 LONGEVITY $20,071.00 M&E:COMPUTER SOFTWARE $14,400.00 M&E:MACH+EQUIP/HEAVY TRUK $25,000.00 MAINTENANCE CONTRACTS $57,355.00 MEDICAL SERVICES $7,200.00 NATURAL GAS $57,000.00 OFFICE SUPPLIES $6,900.00 OUT-OF-STATE $14,000.00 OVERTIME $62,768.00 PERS $117,254.00 PERSONAL COMPUTERS $2,200.00 POSTAGE $20,300.00 REFUSE DISPOSAL $26,500.00 REGULAR EARNINGS $1,376,709.00 RENTS & LEASES $18,500.00 Wastewater Fund Budget Summary with Chart.imr 264 Date: 6/8/2015 FY16 Wastewater Fund FY16 CM RECOMMENDED BUDGET DESCRIPTION FY16 CM RECOMMENDED BUDGET REPAIR & MAINT - OTHER $26,000.00 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 STORM WATER $3,525.00 SUBSCRIPTIONS $700.00 TAXES & ASSESSMENTS $31,000.00 TELEPHONE $9,594.00 UNEMPLOYMENT TAX $6,247.00 VEH MAINT FUND ALLOCATION $5,126.00 VEHICLE SUPPLIES $5,400.00 WATER SERVICE $3,950.00 WORKERS' COMP $69,867.00 TOTAL $9,030,507.00 Wastewater Fund Budget Summary with Chart.imr 265 June 15, 2015 - Budget Discussion Sheets Storm Water Fund – FY16 Budget Worksheet This is the City’s newest utility, created in FY13. Storm Water program information begins on page 164 of the CM Recommended Budget document. Stormwater Fund - FY16 Expenditure Total $996,000 Personnel: With the delayed implementation of the new rate model, the additional staff approved in the FY15 budget have yet to be hired. The positions approved in the FY15 budget are slated to be filled in the beginning months of FY16. These positions are included in the FY16 budget. Capital: In order to fund the Personnel and Operating costs of FY16, given our mid-year approach to rate changes, the deferred maintenance and pipe rehabilitation projects have been pared back to simply design. Construction of the programs will get underway in FY17. The following Capital items have been included in the FY16 Recommended budget: Capital Projects - $231,650: CIP STRM04 - Annual Stormwater Pipe Rehab – Design Costs $ 22,500 CIP STRM10 - Annual Stormwater System Enhancement – Design $ 22,500 CIP STRM14 – 11th & Lamme – Separation System $ 20,000 Personnel & Benefits 37% Operating 17% Capital 23% Debt Service 23% Stormwater Fund Expenditures FY16 266 June 15, 2015 - Budget Discussion Sheets CIP STRM15 – Rouse & Lincoln – Separation System $ 40,000 CIP STRM17 – Cityworks PLL Permit Software $ 30,000 General System Enhancements $ 96,650 TOTAL $231,650 Stormwater Fund - FY16 Revenues Total $967,100 The Stormwater department is funded primarily through Stormwater Utilities, with a minor amount of interest revenue. When the budget was developed for FY15, we expected to have the new rate model in effect in January 2015. Instead, we are implementing the rates in May and December 2015. This delay has meant that we won’t be meeting the budget expectation for FY15 Stormwater revenues. (We have also held off on hiring additional staff to lower expenses while rates are phased in.) In April 2015, the new rate model was adopted, and we began charging based on the new rates in May. An important component of the rates, the Impervious Service Charge and the System Credit will begin to be billed in December 2015. Upon full implementation of the rates, we should see approximately $1,200,000 per year. 267 Date: 6/8/2015 FY16 Storm Water Fund FY16 CM RECOMMENDED BUDGET DESCRIPTION FY16 CM RECOMMENDED BUDGET REGULAR EARNINGS $332,776.00 PRINCIPAL $211,226.00 IMP:INFRASTRUCTURE+IMPROV $201,650.00 RENTS & LEASES $85,152.00 M&E:COMPUTER SOFTWARE $30,000.00 CONSULTANTS & PROF SERV $29,368.00 ADMINISTRATIVE OVERHEAD $21,597.00 GASOLINE AND OIL $19,000.00 HEALTH/DENTAL INSURANCE $14,304.00 INTEREST $14,125.00 PERS $7,019.00 F.I.C.A.$6,635.00 GENERAL $6,000.00 WORKERS' COMP $3,510.00 COMPUTER SUPPLIES $3,000.00 OUT-OF-STATE $3,000.00 MAINTENANCE CONTRACTS $2,660.00 TELEPHONE $1,186.00 INSURANCE $1,034.00 IN-STATE $1,000.00 OFFICE SUPPLIES $1,000.00 CLOTHING & UNIFORMS $500.00 UNEMPLOYMENT TAX $400.00 DUES & CERTIFICATIONS $100.00 LIFE INSURANCE $64.00 TOTAL $996,306.00 Storm Water Fund Budget with Chart.imr 268 June 15, 2015 - Budget Discussion Sheets Solid Waste Fund – FY16 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 - FY16 Expenditures Total $3.7 Million Capital: The following Capital items are included in the FY16 City Manager Recommended Budget: Solid Waste Fund Capital Projects Include: CIP SW40 – Overlay Landfill Road $ 20,000 CIP SW32 – Frontload Replacement Truck $ 270,000 CIP SW37 – Sideload Packer Replacement $ 138,043 CIP SW38 – Sideload Truck Replacement $ 290,000 CIP SW44 – Compost Turner $ 80,000 CIP SW35 – Curbside Recycling Truck Replacement $ 290,000 Total $ 1,088,043 Personnel & Benefits 27% Operating 44% Capital 29% Solid Waste Fund Expenditures FY16 269 June 15, 2015 - Budget Discussion Sheets Solid Waste Fund - FY16 Revenues Total $2.96 Million This budget results in a deficit of approximately $824,000, drawing the funds cash balance to approximately ($34,859) by year end. This was anticipated during the Capital Improvement Planning process. The deficit is due to the one-time large Capital purchases needed in FY16, and will recover in FY17. 270 Date: 6/8/2015 FY16 Solid Waste Collection & Recycling Fund FY16 CM RECOMMENDED BUDGET DESCRIPTION FY16 CM RECOMMENDED BUDGET ADDITIONAL EARNINGS $8,320.00 ADMINISTRATIVE OVERHEAD $378,642.00 ADVERTISING $65,000.00 CLOTHING & UNIFORMS $3,950.00 COMPUTER SUPPLIES $2,000.00 CONSULTANTS & PROF SERV $97,000.00 DUES & SUBSCRIPTIONS $400.00 ELECTRICITY $6,500.00 F.I.C.A $50,403.00 GASOLINE AND OIL $215,100.00 GENERAL $76,200.00 HEALTH/DENTAL INSURANCE $155,974.00 IMP:INFRASTRUCTURE+IMPROV $20,000.00 IN-STATE $1,750.00 INSURANCE $42,043.00 INTERNET $11,800.00 JANITORIAL CONTRACTS $5,100.00 LIFE INSURANCE $507.00 LONGEVITY $10,295.00 M&E:MACH+EQUIP/HEAVY TRUK $1,068,043.00 MAINTENANCE CONTRACTS $7,275.00 MEDICAL SERVICES $1,700.00 OFFICE SUPPLIES $3,000.00 OUT-OF-STATE $9,000.00 OVERTIME $23,288.00 PERS $57,546.00 PERSONAL COMPUTERS $14,450.00 POSTAGE $25,500.00 PROPANE GAS FOR BUILDINGS $15,000.00 REFUSE DISPOSAL $396,000.00 REGULAR EARNINGS $676,383.00 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 $33,500.00 TELEPHONE $2,600.00 UNEMPLOYMENT TAX $3,231.00 VEH MAINT FUND ALLOCATION $81,562.00 Solid Waste Fund Budget Summary with Chart.imr 271 Date: 6/8/2015 FY16 Solid Waste Collection & Recycling Fund FY16 CM RECOMMENDED BUDGET DESCRIPTION FY16 CM RECOMMENDED BUDGET VEHICLE SUPPLIES $1,950.00 WORKERS' COMP $44,858.00 TOTAL $3,783,770.00 Solid Waste Fund Budget Summary with Chart.imr 272 June 15, 2015 - Budget Discussion Sheets Parking Fund – FY16 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. Parking Fund - FY16 Expenditures Total $637,027 Parking Fund - FY16 Revenues Total $877,042 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 normally comes from the sale of Licenses and Permits at the parking garage and on the city-owned surface lots downtown. This year, the Downtown TIF is proposing to transfer $250,000 to the Parking Fund for surface lot improvements (capital) and $10,000 for long-term maintenance of the Parking Garage. Personnel & Benefits 32% Operating 40% Capital 28% Parking Fund Expenditures FY16 273 June 15, 2015 - Budget Discussion Sheets Licenses & Permits $252,303 Fines and Forfeitures $359,939 , $359,939 Loan Interest $1,400 Interest Income $1,400 Rents & Receivables $2,000 Transfers from other Funds $260,000 Parking Fund -FY16 Revenues 274 Community Development Fund – FY16 Budget Worksheet The Community Development Department information begins on page 115 of the City Manager’s Recommended Budget document. In FY14, the “Planning Department” was re-named the “Community Development Department”. It still retains the same funding relationship to the city’s Planning Fund and General Fund. The most notable change is related to the Community Development Director’s salary and benefits now being partially supported by the Building Inspection Fund, which she supervises. Revenues: The Planning Fund is supported by a number of different revenue sources, including a substantial transfer from the General Fund. Over the past couple of years, Planning Fees have exceeded our budget estimates, and the department has spent less than budgeted, leaving a surplus in the Planning Fund that is estimated to total $381,028 at the end of FY15. In FY15 we recommend that a portion of the FY14 surplus be used to fund department operations to allow for the elimination of the General Fund transfer (subsidy) this year. The fund will continue to receive general property tax support and entitlement share to assist in operations. In past years, the Neighborhood Coordinator position was funded through Community Development, with TIFs providing partial funding. In the Recommended FY16 budget, that position is proposed to move under the City Manager, and paid out of the General Fund. The related revenues from TIF Districts have also been moved to the General Fund, since the Economic Development division employees are preforming the work. Planning Fund - Revenues FY12 Actual FY13 Actual FY14 Actual FY15 Budget FY16 Recommended Application Fees $160,000 $317,580 $416,017 $383,600 $461,150 General Fund Transfer 316,500 346,935 184,033 41,000 164,228 Taxes 166,000 168,102 170,051 178,125 178,125 State/Grants 99,500 99,500 106,060 104,825 109,225 Other 30,000 20,720 16,070 15,000 16,000 Total $772,00 $952,837 $892,231 $722,550 $928,728 The CM Recommended Budget includes estimated Application Fee revenues of $461,150, or ~$38,400/month. In April 2015, the City Commission adopted an amended fee schedule for the Planning related review process fees. The new fee schedule is reflected in the anticipated growth in FY16 Application Fee revenue line. Expenditures: Excluding personnel costs, a total Community Development Fund operating & capital budget of $535,547 is proposed. Attached on the next page, you will find a break-down of the separate 275 areas of the operating budget and a chart representing the same. As you can see, the largest areas of the operating & capital budget are:  Consultants and Professional Services - $457,000 total, including o Planning Services - $30,000 o Mediation Services related to code enforcement - $2,000 o Overall Unified Development Code Update - $300,000 o Entryway Corridor Guidelines - $50,000 o CDBG Grant Carryover Historic Preservation - $30,000 o Historic Preservation Inventory Work Update - $30,000 o Legal Services - $15,000  Modifications to Sungard Software to better reflect review process - $7,500  Replacement of Computers & new Planner Technician computer - $10,000 The costs attributed to the Stiff Building remodel that relate to the area used by Planning staff are proposed to come from the General Fund and are not shown in the Community Development Fund activity. Budget Surplus or Deficit: Comm. Dev. Fund FY12 Actual FY13 Actual FY14 Actual FY15 Budget FY16 CM Rec Revenues $772,000 $952,831 $892,231 $722,550 $928,728 Expenditures 648,829 743,535 736,645 929,538 1,253,809 Surplus/(Deficit) $123,171 $209,296 $155,586 $(206,988) $(325,081) 276 Date: 6/8/2015 FY16 Operating Budget FY16 CM RECOMMENDED BUDGET COMMUNITY HOUSING FUND Community Housing Budget Request with Chart.imr DESCRIPTION FY16 CM RECOMMENDED BUDGET VEHICLE SUPPLIES $300.00 VEH MAINT FUND ALLOCATION $338.00 SHIPPING & HANDLING $500.00 BOOKS & REFERENCE MTRLS $1,000.00 GASOLINE & OIL $1,000.00 SUBSCRIPTIONS $1,000.00 GENERAL $1,510.00 REPAIR & MAINT- EQUIPMENT $3,000.00 POSTAGE $3,200.00 TELEPHONE $3,400.00 INTERNET $3,799.00 DUES & CERTIFICATIONS $5,000.00 IN-STATE $6,000.00 OUT-OF-STATE $6,000.00 ADVERTISING $7,000.00 OFFICE SUPPLIES $7,000.00 M&E:COMPUTER SOFTWARE $7,500.00 MAINTENANCE CONTRACTS $8,000.00 COMPUTERS & SERVERS < $5K $13,000.00 CONSULTANTS & PROF SERV $457,000.00 TOTAL $535,547.00 277 Building Inspection Fund – FY16 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 $1,599,402 or $133,283/month. So far this fiscal year, monthly revenues have averaged $124,000/month, with our busiest quarter underway. Actual permit revenues for April were $127,287, with May at $116,239; we are down slightly from 4th quarter revenues last year, but are still collecting in excess of past years. 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 $2,102,844. Personnel: While there are no additional FTEs requested in the Recommended Budget, there are a total of 4.0 FTEs added mid-year in FY15 to assist with the additional work load. All of these positions are included in the FY16 budget. Excluding personnel costs, a total Building Inspection Fund operating and capital budget of $662,469 is proposed. The following are the larger items requested:  Capital: Computer Hardware – $55,000 for Integrated Voice Response Software. This is a customer-service system that allows citizens to utilize their phones for scheduling work and checking permits.  Payment of the City’s Administrative Overhead Allocation - $86,583  Consulting & Professional - $85,000 for increased use of 3rd party plan reviewers for structural and expedited plan review.  Building Inspection portion of Professional Building remodel - 17% - $172,348 $110,000 $176,680 $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Q4 Est Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1 FY15FY14FY13FY12FY11 Average of Monthly Building Fees 278 Budget Surplus or Deficit: Building Inspection Fund FY14 Actual FY15Budget FY16 CM Rec Revenues $1,483,742 $1,190,050 $1,618,452 Expenditures $1,221,552 $1,504,810 $2,102,844 Surplus/(Deficit) $262,190 ($314,760) ($484,392) The resulting budget deficit is attributed to the completion of the computer-system capital item and Professional Building remodel and would draw down Building Inspection Fund cash reserve, which was at $1,394,549 at the end of FY14. This would leave an estimated Building Inspection Fund cash reserve of $595,397 at the end of FY16; in compliance with the state’s maximum of one-year’s worth of expenditures ($2.1 Million.) 279 Date: 6/8/2015 FY16 Operating Budget FY16 CM RECOMMENDED BUDGET BUILDING INSPECTION FUND Building Budget Request with Chart.imr DESCRIPTION FY16 CM RECOMMENDED BUDGET ADMINISTRATIVE OVERHEAD $86,583.00 ADVERTISING $8,000.00 BLD:BUILDINGS+BLDG DESIGN $172,348.00 BOOKS & REFERENCE MTRLS $10,500.00 CLOTHING & UNIFORMS $4,500.00 COMPUTER SUPPLIES $70,500.00 COMPUTERS & SERVERS < $5K $18,000.00 CONSULTANTS & PROF SERV $105,000.00 DUES & CERTIFICATIONS $3,000.00 GASOLINE AND OIL $20,000.00 GENERAL $11,000.00 GOODS PURCHSD FOR RESALE $4,500.00 IN-STATE $40,000.00 MAINTENANCE CONTRACTS $53,508.00 OFFICE SUPPLIES $11,500.00 POSTAGE $3,000.00 REPAIR & MAINT- BUILDINGS $6,000.00 REPAIR & MAINT- EQUIPMENT $16,500.00 SHIPPING & HANDLING $4,500.00 SMALL EQUIPMENT AND TOOLS $6,500.00 SUBSCRIPTIONS $250.00 TELEPHONE $6,500.00 VEH MAINT FUND ALLOCATION $285.00 TOTAL $662,474.00 280 Tree Maintenance Fund – FY16 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: $460,696. 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: $325,238. Personnel costs are proposed to decrease slightly in FY16. Employees from other departments that used to be split with the Forestry department are no longer working in that capacity. The workforce was not reduced, merely cost-shared in a different manner. Operations: $147,813  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 FY16. 281 Date: 6/8/2015 FY16 Operating Budget FY16 CM RECOMMENDED BUDGET TREE MAINTENANCE FUND Tree Maintenance Budget Request with Chart.imr DESCRIPTION FY16 CM RECOMMENDED BUDGET ADVERTISING $1,800.00 BOOKS & REFERENCE MTRLS $500.00 CHEMICALS $500.00 CLOTHING & UNIFORMS $1,250.00 COMPUTER SUPPLIES $2,050.00 CONSULTANTS & PROF SERV $2,200.00 DUES & CERTIFICATIONS $850.00 ELECTRICITY $500.00 GASOLINE AND OIL $12,900.00 GENERAL $72,445.00 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 SHIPPING & HANDLING $200.00 SMALL EQUIPMENT AND TOOLS $4,500.00 SUBSCRIPTIONS $200.00 TELEPHONE $1,550.00 VEH MAINT FUND ALLOCATION $5,618.00 VEHICLE SUPPLIES $2,000.00 TOTAL $147,813.00 282 Community Housing Fund – FY16 Budget Worksheet Community Housing Fund (Fund 120) is included in the Community Services Expenditure Information on page 198. Community Housing Fund – FY16 Expenditure Total $54,400 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 3 mills (estimated at $241,158) for Workforce Housing efforts. We have received one request for funding from Road to Home in the amount of $40,000, and the HRDC Administration costs of $14,400 (was previously paid out of the Housing Revolving Loan Fund). 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, the available was $347,769. The FY15 Approved Budget will result in an ending balance of $226,810 assuming no additional projects are funded. 283