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Home My WebLink AboutA1. FY17 Budget Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director Chris Kukulski, City Manager SUBJECT: Fiscal Year 2017 (FY17) Budget Work Session Enterprise Funds MEETING DATE: May 23, 2016 AGENDA ITEM TYPE: Action Item – 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 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 FY17 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 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 20, 2016. ALL FUNDS: Position Information Attached you will find a summary of the added positions included in the City Manager’s Recommended Budget. You will also find a separate listing (printed in red) of the positions that were requested by departments but not included in the CM Recommended Budget. ENTERPRISE FUNDS: Enterprise Funds are financed by user charges, penalties, and interest income; they operate on a self-supporting basis. During this Work Session, we will cover the following Enterprise Fund information in this order: 1. Water Fund 2. Wastewater Fund 3. Storm Water Fund 4. Solid Waste Fund 5. Parking Fund 471 The five funds listed above comprise 48% of the total revenues of the City, and 33% of the total expenditure of the City. 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. Worksheets outline these effects in detail. As presented, the City Manager’s Recommended Budget is projected to have the following effects on the typical City resident, with areas affected by Enterprise Funds highlighted in yellow: Typical Resident: Annual Increase Recommended Budget Street Maintenance Assessment $22.07 Forestry Assessment $5.10 Arterial Street Assessment $19.79 Property Taxes $48.00 Water Services $12.36 Sewer Services $17.28 Storm Water Services - Annual Increase $124.60 Monthly Increase 10.38 Attachments: FY17 Personnel Position Report Budget Discussion – Enterprise Funds On File: City Manager’s Recommended Budget for FY17 Report compiled on: May 12, 2016 472 FY17 Personnel Requests ‐ Included in Recommended Budget Dept Position FTE Position Description Recreation ‐ Aquatics FIVE .46 FTE in Aquatics 2.30 Prior to June 6, we will confirm the additional hours of lifeguard coverage and the resulting staffing need. Provide necessary coverage to maintain pool open hours with full accessibility to patrons. Responsibilities for guarding the pool and providing instruction. Recreation ‐ Aquatics Assistant Aquatics Manager 1.00 Additional supervisor will ensure a supervisor is on shift 7 days per week. Human Resources Human Resources Generalist 1.00 HR currently has an HR Manager, Recruiter, and Payroll Associate. The Generalist will provide program management for the Worker's Compensation process, Benefits Management, and employee relations support, enabling the Payroll Associate to focus on payroll processes and system maintenance, the Recruiter to focus on recruitment and onboarding processes, and the HR Manager to focus on policy, high‐ level employee relations issues, and the collective bargaining process, including contract management Library Bookmobile & Outreach Librarian I Supv 1.00 Position will provide and oversee Library services offered to the Bozeman community through use of the new bookmobile that will be acquired in Fall, 2016. It is anticipated that the Bookmobile & Outreach Librarian will be a full‐ time, permanent supervisory position that will report to the Head of Reference & Adult Services and supervise the Bookmobile Assistant. The Library bookmobile will offer Library materials, programs and services to the under‐served of greater Bozeman. The B & O Outreach Librarian will create this new program under the supervision of the Head of Reference and with input from the Library Administration. Community Development Historic Preservation Officer 0.40 This position exists as a .60FTE position at the Planner I level. Adding this FTE will bring it back to a full time position for Historic Preservation work. Police Digital Forensic Examiner 1.00 The Computer Forensics Examiner is responsible for assisting and performing incident response, collection, examination, preparation and delivery of electronic evidence in support of criminal investigations for the Bozeman Police Department and the Gallatin County Sheriff's Office. This position is also responsible for forensic examination of digital evidence for Montana's Internet Crimes Against Children Task Force, a statewide task force that investigates offenders who use the Internet, online communication systems, or computer technology to sexually exploit children. This position will also be responsible for ensuring storage and retrieval of drug evidence for the Missouri River Drug Task Force, as well as assisting with other evidence custodial duties for the Bozeman Police Department and Gallatin County Sheriff’s Office. Recreation ‐ Programs Short Term ‐ Rec Leader Winter 0.25 Skating Lessons and Curling, funded with vacancy savings in past. Seeking a more reliable source to fund each year. General & Community Development Fund Total 6.95 Enterprise ‐ Special Revenue Funds Solid Waste City Service Worker 1.00 City Service Worker ‐ Solid Waste Division. Additional FTE needed to drive a route due to increased customer base. Streets/Signs City Service Worker 1.00 Needed due to expanding street network. In the fall/winter will be assigned to leaf cleanup and snow plowing. In the summer, will maintain crosswalks/curb/pedestrian markings. 473 Forestry Forestry Superintendent ‐ Start January 2017 0.50 Full Time position, starting mid‐year. Manage Forestry function and increase responsiveness to large volume of Urban Forestry requests. Acts as City Forester. Engineering Short Term Worker Data Collection 1.25 Workers for data collection for infrastructure database Water Sewer Ops Short Term Worker Data Collection 0.75 Workers for data collection for infrastructure database Stormwater Short Term Worker Data Collection 0.25 Workers for data collection for infrastructure database Enterprise & Special Revenue Fund Total 4.75 GRAND TOTAL ‐ Recommended 11.70 474 FY17 Personnel Requests ‐ NOT Included in Recommended Budget Dept Position FTE Position Description Community Development Planner 3 1.00 Position would provide high‐level project management and process complex development review applications. Community Development Deputy Director of Community Development 1.00 Position would provide leadership and to assist the Director in the planning, directing, and coordinating all operations and activities of the Community Development Department ‐ with specific knowledge of the building function. Library Bookmobile Library Assistant (Reference Dept)1.00 Assist with Bookmobile service and outreach. Bookmobile here in December 2016. Library Communications Coordinator 0.50 This position creates, coordinates and implements the Library’s diverse public information and marketing needs. We now have 6‐7 outlets for information that require continuous updates. Hiring a Communications Coordinator would mean more efficient use of current staff. Three staff spend more than 10 hours each week on public information duties in addition to their main jobs. The end results are frequently lack of coordination, inconsistency in public information and missed opportunities to inform Bozeman citizens of Library services. One person would be more cost‐efficient than hiring multiple people on a contractual basis. We currently contract out for the website, annual report, brochures, signage, newsletter design, program flyers and bulletin board design. Municipal Court Veterans Treatment Court Coordinator 0.50 Position will coordinate activities for Veterans Court, including scheduling and coordination with state agencies and law enforcement. (potentially combine with Receptionist, below?) Municipal Court Receptionist (Admin I)0.50 Position will answer phones and act as a receptionist for Municipal Court General & Community Development Fund Total 4.50 Enterprise Funds Vehicle Maintenance Mechanic 1.00 Position would allow for increase to in‐house fleet maintenance. Pub Works Admin Asst 0.50 Assist Public Works Technician with administrative work including assisting with customers, archiving Engineering files, answering phones, logging submittals, filing and other items as needed. Stormwater Stormwater Specialist ‐ Enforcement 1.00 Assists with the development and maintenance of the City of Bozeman’s Stormwater Program, which is tasked with meeting regulatory permitting requirements, improving local water quality, and protecting public safety; performs directly related work as required and provides professional level management support to the Stormwater Program Coordinator Enterprise & Special Revenue Fund Total 2.50 GRAND TOTAL ‐ Not Recommended 7.00 475 May 23, 2016 ‐ Budget Discussion Sheets Water Fund ‐ FY17 Budget Worksheet The Water Plant, Water Operations Divisions and Public Works Administration cost center (new in FY15) are paid for by the Water Fund. Public Works Administration information begins on page 129 of the City Manager’s (CM) Recommended Budget. Water Treatment Plant information begins on page 142 of the CM Recommended Budget document. Water Operations information begins on page 146 of the CM Recommended Budget document. Water Fund – FY17 Expenditure Total $10.4 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 FY17 is as follows: Water Fund FY17 Personnel & Benefits $ 2,890,482 Operating $ 4,163,532 Capital $ 2,110,401 Debt Service $ 1,313,010 Total Expenditures $ 10,477,425 Personnel & Benefits 28% Operating 40% Capital 20% Debt Service 12% Water Fund Expenditures FY17 476 May 23, 2016 ‐ Budget Discussion Sheets Personnel: The FY17 City Manager Recommended budget proposes adding: Short-Term Worker (1.25 FTE) for data collection – Engineering Capital Projects: Water Fund Capital Projects Include: CIP GIS03 – Asset Management Software $ 50,000 CIP W55 – Catwalk for the Pretreatment Area- WTP $ 50,000 CIP W60 – Sourdough Intake $ 50,000 CIP GF262 – Paving – Shop Complex $ 94,834 CIP CD04 Electronic Planning Application Review/split $ 45,000 CIP W61 – Fall Protection Equipment for Dam $ 15,000 CIP PW02- Shops Facility Expansion $ 350,000 CIP W40 – Replace Water Operations Vehicle $ 33,000 CIP W03 – FY 17Engineering/Design Pipe Replacement $ 22,500 CIP W04-17 – Water Piper Replacement 2017 $1,200,000 Total $1,910,334 Water Fund – FY17 Revenues Total $9.62 Million The CM Recommended Budget is based a 2.5% increase in water rates for FY17. 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: $1,518,096 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 477 May 23, 2016 ‐ Budget Discussion Sheets 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 May and June still unaccounted for, we are trending ahead of our estimate for FY16, due to higher water sales in July thru October 2015. 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; for FY16 there was a 2.5% rate increase. None the less, these four months comprise 50% of our metered water sales revenue for the year. c. Water Impact Fees are accounted for in a separate fund for budgeting purposes. Our budget estimate for FY17 was established during our capital planning processes last fall and is based on the 5-year average for collections (FY11-15). Year-to-Date revenues have outstripped that 5-year average estimate for FY16. $532,727 $868,188 $775,816 $713,561 $952,301 $967,421 $1,044,056 $968,636 $1,006,420 $961,348 $846,638 $1,014,466 $961,084 $820,027 $1,028,548 $631,974 $657,635 $716,947 $586,266 $650,661 FY12 FY13 FY14 FY15 FY16 Metered Water Sales July August September October Water Revenues FY13 FY14 FY15 FY16 Metered Water Sales 6,704,914$ 7,069,422$ 6,442,037$ 7,082,240$ July 868,188$ 775,816$ 713,561$ 952,301$ August 1,044,056$ 968,636$ 1,006,420$ 961,348$ September 1,014,466$ 961,084$ 820,027$ 1,028,548$ October 657,635$ 716,947$ 586,266$ 650,661$ 3,584,345$ 3,422,483$ 3,126,274$ 3,592,858$ 53% 48% 49% 51% 478 May 23, 2016 ‐ Budget Discussion Sheets d. Purchase of Water Rights have been included in our rate models, with $200,000 per year in utility money to purchase water rights. This recent policy change is meant to be in addition to the current “Cash in Lieu of Water Rights” program related to annexations and development projects. This money is spent sporadically, as opportunities to purchase water rights are encountered. Water Impact Fee Revenues (includes interest) FY13 FY14 FY15 FY16 YTD FY17 CM Rec Budgeted Revenues 850,000$ 858,500$ 1,083,242$ 1,344,000$ 1,475,000$ Actual Revenues 1,756,918$ 1,839,502$ 1,519,058$ 1,931,214$ Fees Collected Over Our Estimates 906,918$ 981,002$ 435,816$ 587,214$ $1,756,918 $1,839,502 $1,519,058 $1,931,214 $850,000 $858,500 $1,083,242 $1,344,000 $1,475,000 FY13 FY14 FY15 FY16 YTD FY17 CM Rec Water Impact Fees Budgeted Revenues Actual Revenues 479 Date: 5/17/2016 Water Fund Operations & Captial FY17 CM RECOMMENDED BUDGET DESCRIPTION FY17 CMRECOMMENDED BUDGET STORM WATER $275.00 SHIPPING & HANDLING $700.00 GASOLINE & OIL $2,800.00 REFUSE DISPOSAL $2,800.00 SUBSCRIPTIONS $3,096.00 MEDICAL SERVICES $4,100.00 SMALL EQUIPMENT AND TOOLS $4,500.00 BOOKS & REFERENCE MTRLS $5,000.00 PROPANE GAS FOR BUILDINGS $5,000.00 REPAIR & MAINT- BUILDINGS $6,000.00 TAXES & ASSESSMENTS $7,900.00 OFFICE EQUIPMENT $8,000.00 VEHICLE SUPPLIES $8,000.00 ROAD SUPPLIES $9,000.00 CLOTHING & UNIFORMS $9,200.00 INTERNET $10,000.00 REPAIR & MAINT - OTHER $11,000.00 DUES & CERTIFICATIONS $15,886.00 RENTS & LEASES $16,510.00 ADVERTISING $16,900.00 COMPUTERS & SERVERS < $5K $18,218.00 OFFICE SUPPLIES $18,250.00 TELEPHONE $20,946.00 M&E:COMPUTER HARDWARE $26,400.00 HANG TAG CHARGE $28,000.00 M&E:MACH+EQUIP/HEAVY TRUK $30,000.00 COMPUTER SUPPLIES $34,015.00 WATER SERVICE $35,000.00 POSTAGE $35,350.00 VEH MAINT FUND ALLOCATION $41,828.00 GASOLINE AND OIL $42,000.00 NATURAL GAS $53,000.00 IN-STATE $56,395.00 VEH:AUTOS + LIGHT TRUCKS $60,000.00 OUT-OF-STATE $69,120.00 REPAIR & MAINT- EQUIPMENT $99,800.00 INSURANCE $108,646.00 M&E:COMPUTER SOFTWARE $135,000.00 MAINTENANCE CONTRACTS $150,973.00 ELECTRICITY $152,000.00 GOODS PURCHSD FOR RESALE $200,000.00 CHEMICALS $235,000.00 ENGINEERS $375,000.00 BLD:BUILDINGS+BLDG DESIGN $451,501.00 CONSULTANTS & PROF SERV $492,948.00 INTEREST $515,010.00 GENERAL $765,252.00 PRINCIPAL $798,000.00 ADMINISTRATIVE OVERHEAD $1 013 124 00 0 800,000 1,800,000 STORM WATER SHIPPING & HANDLING GASOLINE & OIL REFUSE DISPOSAL SUBSCRIPTIONS MEDICAL SERVICES SMALL EQUIPMENT AND TOOLS BOOKS & REFERENCE MTRLS PROPANE GAS FOR BUILDINGS REPAIR & MAINT- BUILDINGS TAXES & ASSESSMENTS OFFICE EQUIPMENT VEHICLE SUPPLIES ROAD SUPPLIES CLOTHING & UNIFORMS INTERNET REPAIR & MAINT - OTHER DUES & CERTIFICATIONS RENTS & LEASES ADVERTISING COMPUTERS & SERVERS < $5K OFFICE SUPPLIES TELEPHONE M&E:COMPUTER HARDWARE HANG TAG CHARGE M&E:MACH+EQUIP/HEAVYTRUK COMPUTER SUPPLIES WATER SERVICE POSTAGE VEH MAINT FUND ALLOCATION GASOLINE AND OIL NATURAL GAS IN-STATE VEH:AUTOS + LIGHT TRUCKS OUT-OF-STATE REPAIR & MAINT- EQUIPMENT INSURANCE M&E:COMPUTER SOFTWARE MAINTENANCE CONTRACTS ELECTRICITY GOODS PURCHSD FOR RESALE CHEMICALS ENGINEERS BLD:BUILDINGS+BLDG DESIGN CONSULTANTS & PROF SERV INTEREST GENERAL PRINCIPAL ADMINISTRATIVE OVERHEAD IMP:INFRASTRUCTURE+IMPROV Water Fund - Operations & Plant FY17 Budget Request 480 Date: 5/17/2016 Water Fund Operations & Captial FY17 CM RECOMMENDED BUDGET DESCRIPTION FY17 CMRECOMMENDED BUDGET $1,753,596.00 TOTAL $9,358,539.00 481 May 23, 2016 ‐ Budget Discussion Sheets Wastewater Fund – FY17 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 151 of the City Manager’s Recommended Budget document. Water Reclamation Facility information begins on page 154 of the City Manager’s Recommended Budget document. Wastewater Fund - FY17 Expenditure Total $8.9 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 FY17 is as follows: Wastewater Fund FY17 Personnel & Benefits $1,992,572 Operating $3,409,874 Capital $1,841,001 Debt Service $1,704,247 Total Expenditures $8,947,694 Personnel: The FY17 budget proposes adding:  Short-Term Worker (.75 FTE) for data collection – Water Sewer Ops Personnel & Benefits 22% Operating 38% Capital 21% Debt Service 19% Wastewater Fund Expenditures FY17 482 May 23, 2016 ‐ Budget Discussion Sheets Capital Projects: Wastewater Fund Capital Projects Include: CIP PW02 – Shops expansion $ 350,000 CIP WW63 – Chemical Root Control Applicator $ 45,000 CIP WW74 – Truck replacement $ 70,000 CIP WW68 – Secondary launder covers $ 30,000 CIP WW08-19 – Wastewater Pipe Replacement $ 1,000,000 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 $ 1,760,000 Wastewater Fund - FY17 Revenues Total $8.45 Million The CM Recommended Budget includes the 3% rate increase for all customer classes, which was adopted last year. Unlike water rates, wastewater rates do NOT see the fluctuation related to summer weather watering. a. Wastewater utility charges are the main source of revenue, with minor amounts collected from interest income, and refunds/reimbursements. b. Wastewater Impact Fees are accounted for in a separate fund for accounting purposes. And, like with Water Impact Fees, that estimate has been significantly exceeded for actual revenues in FY13 and FY14. However, in FY15 (and likely FY16) actual collections have been closer to estimates. In FY17, we anticipate revenues from Developer Contributions and Loan Proceeds to support a number of the capital projects we are budgeting for. Wastewater Revenues FY13 FY14 FY15 FY16 Estimate FY17 CM Rec Metered Sewer Charges ‐ Budget 6,610,544$ 6,919,694$ 7,034,790.00$ 7,570,500.00$ 8,079,901.00$ Metered Sewer Charges ‐ Actual 6,862,470$ 7,131,662$ 7,554,174.00$ 7,890,347.00$ Difference in dollars 251,926 211,968 519,384 319,847 Difference as a % of Budgeted Amount 3.8% 3.1% 7.4% 4.2% Wastewater Impact Fee Revenues (includes interest) FY13 FY14 FY15 FY16 FY17 CM REC Budgeted Revenues ‐ Fees 820,000$ 820,000$ 1,005,295.00$ 1,065,500.00$ 1,103,550$ Budgeted Revenues ‐ Other Contributions/Loans 2,045,583$ Actual Revenues 1,465,820$ 1,139,447$ 1,052,580.00$ 1,034,195.00$ Fees Collected Over Our Estimates 645,820$ 319,447$ 47,285$ (31,305)$ 483 May 23, 2016 ‐ Budget Discussion Sheets Capital Projects: Wastewater Impact Fee Fund Capital Projects Include: WWIF28 – Bridger Canyon Road Improvement $ 322,829 WWIF26 – South University District $ 1,413,746 WWIF25 – Cattail Creek Basin Extension $ 1,263,674 WWIF30 – Wastewater Right of Way across MSU $ 300,000 Total $ 3,300,249 NOTE: On May 12, 2016, the Impact Fee Advisory Committee met to hear a request to add Wastewater Impact Fee projects for the FY17 Budget. The request relates to two projects that were listed in the Wastewater CIP, but are Unscheduled. We will provide details of the request to the Commission in the June 6, 2016 Budget Discussion packet materials. $1,465,820 $1,139,447 $1,052,580.00 $1,034,195.00 $820,000 $820,000 $1,005,295.00 $1,065,500.00 $1,103,550 FY13 FY14 FY15 FY16 Wastewater Impact Fees Budgeted Revenues ‐ Fees Actual Revenues 484 Date: 5/17/2016 Wastewater Fund Operations & Capital FY17 CM RECOMMENDED BUDGET DESCRIPTION FY17 CM RECOMMENDED BUDGET ADMINISTRATIVE OVERHEAD $857,078.00 ADVERTISING $3,300.00 BLD:BUILDINGS+BLDG DESIGN $661,501.00 BONDS $1,079,000.00 BOOKS & REFERENCE MTRLS $1,900.00 CHEMICALS $363,380.00 CLOTHING & UNIFORMS $5,600.00 COMPUTER SUPPLIES $6,650.00 COMPUTERS & SERVERS < $5K $7,200.00 CONSULTANTS & PROF SERV $473,270.00 DUES & CERTIFICATIONS $2,342.00 DUES & SUBSCRIPTIONS $3,500.00 ELECTRICITY $423,500.00 ENGINEERS $70,000.00 GASOLINE AND OIL $65,000.00 GENERAL $361,180.00 IMP:INFRASTRUCTURE+IMPROV $1,022,500.00 IN-STATE $15,750.00 INSURANCE $97,554.00 INTEREST $625,247.00 INTERNET $7,700.00 JANITORIAL CONTRACTS $11,500.00 M&E:MACH+EQUIP/HEAVY TRUK $60,000.00 MAINTENANCE CONTRACTS $83,213.00 MEDICAL SERVICES $9,200.00 NATURAL GAS $57,000.00 OFFICE SUPPLIES $7,000.00 OUT-OF-STATE $18,000.00 PERSONAL COMPUTERS $4,118.00 POSTAGE $20,300.00 REFUSE DISPOSAL $36,500.00 RENTS & LEASES $21,300.00 REPAIR & MAINT - OTHER $21,000.00 REPAIR & MAINT- BUILDINGS $196,200.00 REPAIR & MAINT- EQUIPMENT $60,500.00 ROAD SUPPLIES $17,000.00 SEWER SERVICE $1,000.00 SHIPPING & HANDLING $2,500.00 SMALL EQUIPMENT AND TOOLS $11,400.00 STORM WATER $5,025.00 SUBSCRIPTIONS $700.00 TAXES & ASSESSMENTS $31,000.00 TELEPHONE $11,034.00 VEH MAINT FUND ALLOCATION $10,580.00 VEH:AUTOS + LIGHT TRUCKS $97,000.00 VEHICLE SUPPLIES $4,900.00 WATER SERVICE $4,000.00 TOTAL $6,955,122.00 0 400,000 800,000 1,100,000 ADMINISTRATIVE OVERHEAD ADVERTISING BLD:BUILDINGS+BLDG DESIGN BONDS BOOKS & REFERENCE MTRLS CHEMICALS CLOTHING & UNIFORMS COMPUTER SUPPLIES COMPUTERS & SERVERS < $5K CONSULTANTS & PROF SERV DUES & CERTIFICATIONS DUES & SUBSCRIPTIONS ELECTRICITY ENGINEERS GASOLINE AND OIL GENERAL IMP:INFRASTRUCTURE+IMPROV IN-STATE INSURANCE INTEREST INTERNET JANITORIAL CONTRACTS M&E:MACH+EQUIP/HEAVY TRUK MAINTENANCE CONTRACTS MEDICAL SERVICES NATURAL GAS OFFICE SUPPLIES OUT-OF-STATE PERSONAL COMPUTERS POSTAGE REFUSE DISPOSAL RENTS & LEASES REPAIR & MAINT - OTHER REPAIR & MAINT- BUILDINGS REPAIR & MAINT- EQUIPMENT ROAD SUPPLIES SEWER SERVICE SHIPPING & HANDLING SMALL EQUIPMENT AND TOOLS STORM WATER SUBSCRIPTIONS TAXES & ASSESSMENTS TELEPHONE VEH MAINT FUND ALLOCATION VEH:AUTOS + LIGHT TRUCKS VEHICLE SUPPLIES WATER SERVICE Wastewater Fund - Operations & Plant FY17 Budget Request 485 May 23, 2016 ‐ Budget Discussion Sheets Storm Water Fund – FY17 Budget Worksheet This is the City’s newest self-funded utility, created in FY13. Storm Water program information begins on page 139 of the CM Recommended Budget document. Stormwater Fund - FY17 Expenditure Total $1.39 Million Stormwater Fund FY17 Personnel & Benefits $376,433 Operating $240,715 Capital $550,000 Debt Service $225,346 Total Expenditures $1,392,494 Personnel: This position is included in the FY17 budget:  Short-Term Worker (.25 FTE) for data collection - Stormwater Capital: We are proposing to change the specifics of the Annual System Enhancements from a previous Fairgrounds project to two projects at other locations. Stormwater Utility Fund Capital Projects Include: STRM28 – Annual Pipe Rehabilitation Project-Tamarack $ 40,000 STRM27 – Operations Service Truck Purchase $ 45,000 STRM13 - Annual unplanned pipe rehab & drainage $ 165,000 STRM15 - Annual Stormwater System Enhancement- L & J Site $ 112,500 – WRF Materials Facility $ 112,500 STRM18 - Annual Stormwater System Enhancement-Wallace/Tamarack $ 75,000 Total $ 550,000 Personnel & Benefits 27% Operating 17%Capital 40% Debt Service 16% Stormwater Fund Expenditures FY17 486 May 23, 2016 ‐ Budget Discussion Sheets Stormwater Fund - FY17 Revenues Total $1.44 Million The Stormwater department is funded through Stormwater utility charges. When the budget was developed for FY15, we expected to have the new rate model in effect in January 2015. Instead, we implemented the rates in May and December 2015. This delay meant that we didn’t meet the budget expectation for FY15 Stormwater revenues. (We also held off on hiring additional staff to lower expenses while rates are phased in.) An important component of the rates, the Impervious Service Charge and the System Credit began to be billed in December 2015. Upon full implementation of the rates, we were expecting to see approximately $1,200,000 per year. Actual collections from stormwater charges are on track for FY17 Revenues of $1,309,680 (see below.) The fund also receives a transfer of General Fund dollars $140,000 to make the payment on the Landfill Remediation system loan (a requirement of the State Revolving Fund loan program.) Stormwater Revenues FY13 FY14 FY15 FY16 YTD FY17 CM REC Service Charges ‐ Budget 225,000$ 236,250$ 718,125$ 825,000$ 1,309,680$ Service Charges ‐ Actual 225,110$ 264,887$ 267,914$ 949,000$ Difference in dollars 110 28,637 (450,211) 124,000 Difference as a % of Budgeted Amount 0.0% 12.1%‐62.7% 15.0% 487 Date: 5/17/2016 Storm Water Fund Operations & Capital FY17 CM RECOMMENDED BUDGET DESCRIPTION FY17 CM RECOMMENDED BUDGET IMP:INFRASTRUCTURE+IMPROV $505,000.00 PRINCIPAL $213,211.00 ENGINEERS $100,000.00 CONSULTANTS & PROF SERV $52,500.00 VEH:AUTOS + LIGHT TRUCKS $45,000.00 ADMINISTRATIVE OVERHEAD $42,058.00 GASOLINE AND OIL $15,000.00 INTEREST $12,135.00 GENERAL $11,572.00 REPAIR & MAINT- EQUIPMENT $5,000.00 IN-STATE $4,000.00 COMPUTER SUPPLIES $3,000.00 OUT-OF-STATE $3,000.00 INSURANCE $1,985.00 TELEPHONE $1,500.00 CLOTHING & UNIFORMS $500.00 OFFICE SUPPLIES $500.00 DUES & CERTIFICATIONS $100.00 TOTAL $1,016,061.0 0 200,000 400,000 525,000 IMP:INFRASTRUCTURE+IMPROV PRINCIPAL ENGINEERS CONSULTANTS & PROF SERV VEH:AUTOS + LIGHT TRUCKS ADMINISTRATIVE OVERHEAD GASOLINE AND OIL INTEREST GENERAL REPAIR & MAINT- EQUIPMENT IN-STATE COMPUTER SUPPLIES OUT-OF-STATE INSURANCE TELEPHONE CLOTHING & UNIFORMS OFFICE SUPPLIES DUES & CERTIFICATIONS Storm Water Fund FY17 Budget Request 488 May 23, 2016 ‐ Budget Discussion Sheets Solid Waste Fund – FY17 Budget Worksheet The Solid Waste Fund accounts for our garbage collection and recycling divisions. Solid Waste Collection & Recycling information begins on page 161 of the CM Recommended Budget Document. Solid Waste Fund - FY17 Expenditures Total $3.15 Million Personnel: The budget includes the addition of a City Service Worker (1.00 FTE) – Solid Waste to keep up with customer account growth for garbage services. Capital: The following Capital items are included in the FY17 City Manager Recommended Budget: Solid Waste Fund Capital Projects Include: CIP SW44 – Compost Turner $ 50,000 CIP SW43 – Frontload Container Transport truck $ 60,000 Total $ 110,000 Solid Waste FY17 Personnel & Benefits 1,163,885$ Operating 1,879,169$ Capital 110,000$ Total Expenditures 3,153,054$ Personnel & Benefits 37% Operating 60% Capital 3% Solid Waste Fund Expenditures FY17 489 May 23, 2016 ‐ Budget Discussion Sheets Solid Waste Fund - FY17 Revenues Total $3.35 Million The FY17 Recommended Budget is developed with a 2% rate increase for Solid Waste services. Rates have not been increased since 2014, when we completed the implementation of rate recommendations from our rate study. We are recommending this increase be adopted for FY17 & FY18, to address general inflationary increases for personnel, operating expenses and equipment. Solid Waste FY17 Recycling Revenue 323,544$ Collection Route Assessments 3,008,900$ Interest Income 6,365$ Roll‐off Container Rentals 8,000$ Miscellaneous Revenue 12,500$ Total Revenues 3,359,309$ Recycling Revenue $323,544 Collection Route Assessments $3,008,900 Interest Income $6,365 Roll‐off Container Rentals $8,000 Miscellaneous Revenue $12,500 Solid Waste FY17 490 Date: 5/17/2016 Solid Waste Fund Operations and Capital FY17 CM RECOMMENDED BUDGET DESCRIPTION FY17 CM RECOMMENDED BUDGET ADMINISTRATIVE OVERHEAD $449,463.00 ADVERTISING $65,000.00 CLOTHING & UNIFORMS $3,950.00 COMPUTER SUPPLIES $1,550.00 CONSULTANTS & PROF SERV $163,000.00 DUES & SUBSCRIPTIONS $400.00 ELECTRICITY $6,500.00 GASOLINE AND OIL $162,000.00 GENERAL $150,400.00 IN-STATE $4,750.00 INSURANCE $39,199.00 INTERNET $5,800.00 JANITORIAL CONTRACTS $5,100.00 M&E:MACH+EQUIP/HEAVY TRUK $110,000.00 MAINTENANCE CONTRACTS $7,275.00 MEDICAL SERVICES $1,700.00 OFFICE SUPPLIES $3,000.00 OUT-OF-STATE $9,000.00 PERSONAL COMPUTERS $4,385.00 POSTAGE $15,500.00 PROPANE GAS FOR BUILDINGS $15,000.00 REFUSE DISPOSAL $385,000.00 RENTS & LEASES $700.00 REPAIR & MAINT- BUILDINGS $2,500.00 REPAIR & MAINT- EQUIPMENT $155,000.00 ROAD SUPPLIES $5,000.00 SMALL EQUIPMENT AND TOOLS $3,000.00 STORM WATER $384.00 SUBSCRIPTIONS $500.00 TAXES & ASSESSMENTS $42,000.00 TELEPHONE $13,600.00 VEH MAINT FUND ALLOCATION $156,563.00 VEHICLE SUPPLIES $1,950.00 TOTAL $1,989,169.00 0 200,000 400,000 475,000 ADMINISTRATIVE OVERHEAD ADVERTISING CLOTHING & UNIFORMS COMPUTER SUPPLIES CONSULTANTS & PROF SERV DUES & SUBSCRIPTIONS ELECTRICITY GASOLINE AND OIL GENERAL IN-STATE INSURANCE INTERNET JANITORIAL CONTRACTS M&E:MACH+EQUIP/HEAVYTRUK MAINTENANCE CONTRACTS MEDICAL SERVICES OFFICE SUPPLIES OUT-OF-STATE PERSONAL COMPUTERS POSTAGE PROPANE GAS FORBUILDINGS REFUSE DISPOSAL RENTS & LEASES REPAIR & MAINT- BUILDINGS REPAIR & MAINT- EQUIPMENT ROAD SUPPLIES SMALL EQUIPMENT AND TOOLS STORM WATER SUBSCRIPTIONS TAXES & ASSESSMENTS TELEPHONE VEH MAINT FUNDALLOCATION VEHICLE SUPPLIES Solid Waste Fund FY17 Budget Request 491 May 23, 2016 ‐ Budget Discussion Sheets Parking Fund – FY17 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 126 of the CM Recommended Budget Document. Parking Fund - FY17 Expenditures Total $851,048 Parking Fund - FY17 Revenues Total $780,999 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 $165,000 to the Parking Fund for surface lot improvements (capital) and $10,000 for long-term maintenance of the Parking Garage. Parking Fund FY17 Personnel & Benefits 316,951$ Operating 359,097$ Capital 175,000$ Total Expenditures 851,048$ Personnel & Benefits 37% Operating 42% Capital 21% Parking Fund Expenditures FY17 492 May 23, 2016 ‐ Budget Discussion Sheets Deficit Budgets in the Future – a Significant Concern: The Parking Commission and staff have been working to find ways to ensure that Parking Revenues can support all of the necessary costs of operations and capital for the parking function. For the coming year, revenues from permits and fines are estimated to be significantly short of funding operations and capital costs. The Downtown Tax Increment District will be providing a money for capital projects, but Parking should be funding more of its own projects in the future. A long-term solution needs to be found so that parking enforcement and capital programs have sustainable funding. As an illustration of the problem, we developed the following projections earlier this spring and shared them with the Parking Commission. (You’ll notice Revenues and Expenditures are slightly different than the CM Recommended Budget, but still in line.) Unless additional revenue sources are found, the Parking Fund faces ongoing, growing deficits in the future. The Parking Commission continues to work to find solutions to this financial problem. In FY17, cash reserves can support the deficit for the year; however, beyond that there is likely to not be cash available in the Parking Fund. Parking Fund FY17 Licenses & Permits 326,699$ Fines and Forfeitures 284,500$ Loan Interest 1,400$ Interest Income 1,400$ Rents & Receivables 2,000$ Transfers from other Funds 165,000$ Total Revenues 780,999$ Licenses & Permits $326,699 Fines and Forfeitures $284,500 Loan Interest $1,400 Interest Income $1,400 Rents & Receivables $2,000 Transfers from other Funds $165,000 Parking Fund ‐FY17 Revenues 493 May 23, 2016 ‐ Budget Discussion Sheets Parking Fund - 5 Year Budget & Rate Projection FY17 Budget Preparation Approved Projected Projected Projected Projected Projected FY16 FY17 FY18 FY19 FY20 FY21 Beginning Fund Balance Not Restricted - Projected 123,102 142,620 66,495 (74,635) (297,506) (742,254) Estimated Revenues: Downtown Permits 38,321 23,229 23,229 23,229 23,229 23,229 Garage - Permits 139,517 200,000 200,000 200,000 200,000 200,000 Garage - Transient 50,000 75,500 75,500 75,500 75,500 75,500 Garage - Validation 800 3,000 3,000 3,000 3,000 3,000 Permits - Residents 12,555 12,905 12,905 12,905 12,905 12,905 Permits - Employees 1,855 1,855 1,855 1,855 1,855 1,855 Permits - Visitors 9,255 10,210 10,210 10,210 10,210 10,210 Infraction - Admin Fees 42,000 42,000 42,000 42,000 42,000 42,000 Collection Fees 1,000 1,000 1,000 1,000 1,000 Boot Fees 3,000 1,500 1,500 1,500 1,500 1,500 Fines 314,939 240,000 265,000 265,000 265,000 265,000 Advertising/Rents Leases 2,000 From Downtown TIF 165,000 250,000 335,000 Total Estimated Revenues:612,242 778,199 886,199 971,199 636,199 636,199 Proposed Expenditures: Personnel 282,946 316,033 327,094 338,542 350,391 362,655 Added Personnel Operating 354,081 363,291 381,456 400,528 420,555 441,582 CIP 218,000 175,000 318,779 455,000 310,000 30,000 Total Proposed Expenditures:855,027 854,324 1,027,329 1,194,071 1,080,946 834,238 Ending Fund Balance - Projected (119,683) 66,495 (74,635) (297,506) (742,254) (940,292) 494 Date: 5/17/2016 Parking Fund Operations & Capital FY17 CM RECOMMENDED BUDGET DESCRIPTION FY17 CM RECOMMENDED BUDGET ADMINISTRATIVE OVERHEAD $54,657.00 ADVERTISING $500.00 BLD:BUILDINGS+BLDG DESIGN $165,000.00 BOOKS & REFERENCE MTRLS $500.00 CLOTHING & UNIFORMS $2,000.00 COMPUTER SUPPLIES $5,250.00 CONSULTANTS & PROF SERV $48,000.00 DUES & CERTIFICATIONS $1,200.00 ELECTRICITY $15,400.00 GASOLINE AND OIL $3,500.00 GENERAL $63,200.00 IN-STATE $500.00 INSURANCE $20,699.00 JANITORIAL CONTRACTS $22,000.00 MAINTENANCE CONTRACTS $45,000.00 NATURAL GAS $1,500.00 OFFICE SUPPLIES $4,500.00 OUT-OF-STATE $2,300.00 POSTAGE $3,000.00 REFUSE DISPOSAL $100.00 REPAIR & MAINT - OTHER $3,500.00 REPAIR & MAINT- BUILDINGS $17,500.00 REPAIR & MAINT- EQUIPMENT $17,500.00 SEWER SERVICE $600.00 SHIPPING & HANDLING $200.00 STORM WATER $2,250.00 TAXES & ASSESSMENTS $4,500.00 TELEPHONE $6,250.00 UTILITIES / INTERNET $6,500.00 VEH MAINT FUND ALLOCATION $2,941.00 VEH:AUTOS + LIGHT TRUCKS $10,000.00 VEHICLE SUPPLIES $2,000.00 WATER SERVICE $1,550.00 TOTAL $534,097.00 0 40,000 80,000 120,000 175,000 ADMINISTRATIVEOVERHEAD ADVERTISING BLD:BUILDINGS+BLDGDESIGN BOOKS & REFERENCEMTRLS CLOTHING & UNIFORMS COMPUTER SUPPLIES CONSULTANTS & PROF SERV DUES & CERTIFICATIONS ELECTRICITY GASOLINE AND OIL GENERAL IN-STATE INSURANCE JANITORIAL CONTRACTS MAINTENANCECONTRACTS NATURAL GAS OFFICE SUPPLIES OUT-OF-STATE POSTAGE REFUSE DISPOSAL REPAIR & MAINT - OTHER REPAIR & MAINT-BUILDINGS REPAIR & MAINT-EQUIPMENT SEWER SERVICE SHIPPING & HANDLING STORM WATER TAXES & ASSESSMENTS TELEPHONE UTILITIES / INTERNET VEH MAINT FUNDALLOCATION VEH:AUTOS + LIGHTTRUCKS VEHICLE SUPPLIES WATER SERVICE Parking Fund FY17 Budget Request 495