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Home My WebLink Aboutagenda.council.worksession.20141006 CITY COUNCIL WORK SESSION October 06, 2014 5:00 PM, City Council Chambers MEETING AGENDA I. Budget Work Session - Budget Overview, General Fund, Asset Management Plan Fund, Information Technology Fund, Debt Service Fund, Employee Benefits Fund, Employee Housing Fund 2015 Proposed Budget October 6, 2014 P1 I. Agenda for Oct. 6 •Budget Overview •General Fund (001) •Asset Management Plan Fund (000) •Information Technology Fund (510) •Debt Service Fund (250) •Employee Benefits Fund (501) •Employee Housing Fund (505) 2 P2 I. 2015 Tax Revenue Taxes $44,172,200 36% 2015 Revenues: $123,289,148 $13,004,000 $7,940,000 $7,187,200 $6,300,000 $3,364,000 $2,898,000 $1,895,000 $941,000 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 3 P3 I. 2.1% City Sales Tax Excludes 0.3% Tax for Public Education $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 $13,000,000 $14,000,000 Actual Collections Inflation Adj. Collections 55% of 0.45% Kids First $1,532,400 45% of 0.45% Housing Dev. $1,254,000 0.15% Transportation $929,000 1.50% Parks & Open Space $9,288,600 2014 Forecast: 5.7% 2015 Projection: 4.3% 4 P4 I. Property Tax Collections General Fund (35%) / Asset Management Plan Fund (65%) $1,000,000,000 $1,100,000,000 $1,200,000,000 $1,300,000,000 $1,400,000,000 $1,500,000,000 $1,600,000,000 $1,700,000,000 $1,800,000,000 2009 2010 2011 2012 2013 2014 2015 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 $6,500,000 $7,000,000 Property Tax Base Property Tax Collections Add'l TABOR Revenues Assessed Value Assessment Yr: 2008 2009 2010 2011 2012 2013 2014 1.434 2.198 2.124 0.894 0.755 0.426 0.280 0.000 0.500 1.000 1.500 2.000 2.500 2009 2010 2011 2012 2013 2014 2015 Mill Levy Credit Mill Levy Credit 5 P5 I. Real Estate Transfer Taxes Housing Development Fund (1.0%), Wheeler Opera House Fund (0.5%) $500,000 $2,500,000 $4,500,000 $6,500,000 $8,500,000 $10,500,000 $12,500,000 $14,500,000 $16,500,000 $18,500,000 City Collections City Adj. Inflation Housing Development Fund $6,300,000 Wheeler Opera House Fund $3,364,000 2014 Forecast: $7.0M & $3.7M 2015 Projection: $6.3M & $3.4M 6 P6 I. 2.0% Lodging Tax Tourism Promotion Fund (1.50%) / Transportation Fund (0.50%) $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 City Collections City Adj. Inflation Tourism Promotion, $2,173,600 Transportation $724,600 2014 Forecast: 8.0% 2015 Projection: 5.0% 7 P7 I. 2.1% Use Tax Transportation (2.1%) $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2009 2010 2011 2012 2013 2014 2015 Use Tax On Deposit City Collections Realized 2014 Forecast: -7.7% 2015 Projection: 11.9% 8 P8 I. 2015 Fee Revenue Fees, $36,214,300 29% 2015 Revenues: $123,289,148 $15,093,300 $6,345,210 $3,857,850 $3,544,360 $2,946,230 $1,334,000 $3,093,350 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 9 P9 I. Some Noteable Fee Changes •Clerk’s Office $250 increase to liquor license transfers •Engineering 3% increase to permit, application, development review, mitigation fees •GIS Fee elimination for mailing lists, digital data services, digital submission •Parking $0.50 increase to 1st hour for commercial core parking meters 10 P1 0 I. Some Noteable Fee Changes •Recreation 1% increase for pass options 2% increase for rental of ice facilities, 1% increase for acquatic facility $1 increase for most programs or activities •Golf Course 3% to 5% increase to annual passes; $1 increase for cart or club rentals •Water and Electric Utilities Change in tier thresholds for consumption-based charges Rate increases for availability and demand-based charges 11 P1 1 I. 2015 Transfers Transfers $31,161,568 25% 2015 Revenues: $123,289,148 $12,451,000 $5,686,800 $3,745,600 $3,182,970 $1,468,800 $1,100,000 $1,027,690 $2,498,708 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 12 P1 2 I. Transfers •Asset Management Plan Fund General Fund Excess Fund Balance: $12,000,000 Suspended GF Transfers to Employee Housing Fund: $450,000 •General Fund GF Overhead: $275,000 Water Franchise Fee: ($425,000) 13 P1 3 I. Transfers -Continued •Transportation Fund Lodging Tax Revenue: $778,000 •Truscott Housing Fund One-time transfer for drainage improvements: $1 million •Debt Service Transfers (Parks & Open Space) Impact from $4.3 million new issuance in 2014: $497,000 14 P1 4 I. 2015 Proposed Expenditures •Base Budget •Equal to same level of resources as prior fiscal year, adjusted for: »Salary increases (Up to 4.0% merit pay) •Avg. Score: ~3.5%; Avg. Annual Payroll Growth: ~2.5% »Salary ranges to reflect market changes (2.9% average incr.) »Health care increases (3.0% premium increase) »Inflationary pressure on goods and services (2.0% target) »Goals and Outcomes increase: $100 •Supplemental Requests •New resource requests for expanded or new services, or for cost escalation beyond the 2.0% target 15 P1 5 I. 2015 Overview (Rounded to Thousands)2014 Original Budget 2015 Requested Budget Base Operating Budget –Non-Labor*$26,758,000 $27,160,000 1.5% Base Operating Budget –Labor**$29,125,000 $30,148,000 3.5% Total Base Operating Budget $55,883,000 $57,309,000 2.6% Supplementals –Non-Labor N/A $1,348,000 Supplementals –Labor N/A $873,000 Total Operating Budget $55,883,000 $59,530,000 6.5% Capital Outlay**$26,426,000 $28,208,000 6.7% Debt Service $4,977,000 $5,470,000 9.9% Total Request (Excluding Transfers)$87,286,000 $93,208,000 6.8% * $1,817,000 was added to 2014 for the anticipated 0.3% sales tax for public education, not originally adopted in the 2014 budget ** $624,000 in capital labor was budgeted in capital projects and not in operating labor in 2014 16 P1 6 I. Labor Costs (Rounded to Thousands)2014 FTE 2014 Budget 2015 FTE 2015 Budget % Change Operating Labor 282.3 $26,971,000 283.1 $27,706,000 Overtime, Standby, Temporary Labor*0.0 $2,154,000 0.0 $2,442,000 Total Base Labor without Capital in 2014 282.3 $29,125,000 283.1 $30,148,000 3.5% Capital Labor (included in capital budgets for 2014)5.8 $624,000 GIS/IT, Stormwater FTE to Contract, Head Golf Pro.(8.0)($895,000) New GIS,Water Treatment Oper., Project Manager 3.0 $310,000 Adjusted Base Labor 283.1 $29,164,000 283.1 $30,148,000 3.4% Supplementals -Permanent FTE 12.3 $904,000 Supplementals –Temporary FTE 0.0 ($31,000) Total Base + Supplemental Labor 283.1 $29,164,000 295.4 $31,021,000 6.4% * 2015 temporary labor increased largely due to shifting Parks capital and maintenance labor to operating (net zero change). 17 P1 7 I. Capital Costs 2014 Projects 2014 Budget 2015 Projects 2015 Budget Chg. Burlingame Phase II $15,056,000 City Facility Construction –All $5,566,000 Galena Plaza Redevelopment $1,150,000 Burlingame –Single Family & Parking Exp.$4,012,000 Pedestrian Mall Upgrade $750,000 Wheeler Improvements –Second Floor $3,000,000 Fleet Replacements –General Fund $747,000 Galena Plaza Redevelopment $1,556,000 Renewable Energy Projects $300,000 ERP System $1,500,000 Replace 6” with 8” Pipe on Red Mtn. Rd.$300,000 Truscott I –Drainage Improvements $1,000,000 Curb and Gutter Replacements $269,000 Thomas Reservoir Drainline $750,000 Fleet Replacements –Parks $265,000 Fleet Replacements –General Fund $658,000 Droste Open Space Acquisition $250,000 Rubey Park Remodel $500,000 City Data Center: Phase II $250,000 Aspen Mtn. Drainage Basin Improvements $500,000 Aggregate Projects Below $250,000 $7,089,200 Aggregate Projects $250,000 -$500,000 $2,688,000 Aggregate Projects Below $250,000 $6,478,000 Total 2014 Capital Projects $26,426,000 Total 2015 Capital Projects $28,208,000 6.7% 18 P1 8 I. Debt Service 2014 Budget 2015 Budget Change Debt Service Fund (Parks Bonds &ISIS COPs)*$3,300,000 $3,781,000 14.6% Truscott Housing Fund $705,000 $713,000 1.1% Marolt Housing Fund $429,000 $431,000 0.5% Electric Utility Fund (Castle Creek Energy Center)$358,000 $359,000 0.3% Golf Course Fund (Equipment Replacements)$136,000 $136,000 0.0% General Fund (McKinstry Energy Efficiency Project)$49,000 $49,000 0.0% Total Debt Service $4,977,000 $5,469,000 9.9% * Debt Service Fund increase is related to new 2014 bond issuance of $4.3 million and the net impact of refunding 2005 bonds at a better rate and adjusted payment schedule. 19 P1 9 I. Supplementals Fund Labor Labor Purpose Non- Labor Non-Labor Purpose Total Increase Over Base City Manager $76,240 Management Analyst $0 $76,240 Com. Dev.$179,490 Sr. Planner / Permit Coordinator $158,000 Uphill Economy Promotion / Historical Pres. Fee Waiver / Plans Review Contractor / Residential Design Standards RFP $337,490 Engineering $156,370 Civil Engineer /Seasonal CMOs $35,000 NEC Books and Training / GIS Support Services Contractor $191,370 Environ. Health $3,600 Summer Intern $14,000 Reusable Bags Purchase $17,600 Police $43,500 Police Officer IV Pool $81,180 Leased Space for 9.0 FTE $124,680 Recreation $17,900 Holiday Pay / Private Swim Lessons $75,410 Mac-n-Cheese Festival / Utilities for ARC and Tennis Facilities / Day Camp Scholarships / Credit Card Processing Fees $93,310 Total General Fund $477,100 $363,590 $840,690 3.6% 20 P2 0 I. Supplementals Fund Labor Non-Labor Total Incr. Over Base Budget General Fund $477,100 Multiple $363,590 Multiple $840,690 3.6% Parks &Open Space $194,130 Seasonal to Full Time / Holiday Pay $42,300 Reuse Water / Event Flooring Storage $236,430 4.6% Transportation Fund $12,110 10 hrs/wk Temp Labor $0 $12,110 0.6% Kids First Fund $0 $60,000 State Grant $60,000 3.9% Stormwater Fund $17,180 Maintenance Oper.$0 $17,180 2.1% Water Fund $142,610 Civil Engineer / Utilities Efficiency Spec.$95,000 Contract Review Services $237,610 6.8% Electric Fund $24,960 Utilities Efficiency Spec.$749,000 Purchased Power $773,960 14.1% Golf Fund $5,600 Holiday Pay $37,300 Reuse Water $42,900 3.2% Total Supplementals $873,690 $1,347,190 $2,220,880 4.0% 21 P2 1 I. 2015 Proposed Budget 2011 Original Budget 2012 Original Budget 2013 Original Budget* 2014 Original Budget* 2015 Proposed Budget $ Change % Change Revenues $86,943,310 $93,072,954 $96,026,779 $107,552,156 $123,289,148 $15,736,992 14.6% Operating $47,469,980 $49,941,280 $52,643,214 $55,882,800 $59,530,270 $3,647,470 6.5% Capital Outlay $13,809,990 $21,810,300 $33,262,380 $26,426,220 $28,208,330 $1,782,110 6.7% Debt Service $4,954,570 $5,293,160 $5,141,720 $4,977,150 $5,469,740 $492,590 9.9% Net Appropriations $66,234,540 $77,044,740 $91,047,314 $87,286,170 $93,208,340 $5,922,170 6.8% Interfund Transfers $18,603,150 $18,148,800 $16,844,510 $17,340,900 $31,241,680 $13,900,780 80.2% Total Appropriations $84,837,690 $95,193,540 $107,891,824 $104,627,070 $124,450,020 $19,882,950 18.9% Ending Fund Balance $66,296,633 $71,825,209 $65,548,532 $73,267,586 $83,698,319 $10,430,733 14.2% * 2013 and 2014 original budgets excluded the 0.3% sales tax for public education and has been added in above. 22 P2 2 I. General Fund •Share of County Sales Tax : 4.3% (16% since 2011) •Property Tax : 3.3% (inflation + new growth) •ComDev / Eng Fees: -7.8% (150% since 2011) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2011 2012 2013 2014 Fee Revenue for ComDev and Engineering Engineering ComDev Fees $11,189,120 GF Overhead $4,617,000 City Share of 2.0% County Sales Tax $7,940,000 Property Tax $2,233,000 Transfers $1,069,800 Other Revenue $335,800 Revenues = $27,404,720 23 P2 3 I. General Fund Labor $16,490,000 Professional Services $4,154,740 Training/Dues $486,300 IT Overhead / Transfers $13,426,520 Materials / Supplies $1,204,060 Supplementals $840,690 Contributions $1,305,430 Uses = $37,907,750 •Base Budget: $25,049,140 (4.7% increase) Added capital labor to Ops: $628,000 Added GIS: $140,000 •Total: $12,858,610 (53.7% increase) Supplementals: $840,690 Add’l Transfers: $12,017,920 $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 2009 2010 2011 2012 2013 1,200 1,300 1,400 1,500 1,600 1,700 Project Valuation # of Permits 24 P2 4 I. Supplementals Fund Labor Labor Purpose Non- Labor Non-Labor Purpose Total Increase Over Base City Manager $76,240 Management Analyst $0 $76,240 Com. Dev.$179,490 Sr. Planner / Permit Coordinator $158,000 Uphill Economy Promotion / Historical Pres. Fee Waiver / Plans Review Contractor / Residential Design Standards RFP $337,490 Engineering $156,370 Civil Engineer /Seasonal CMOs $35,000 NEC Books and Training / GIS Support Services Contractor $191,370 Environ. Health $3,600 Summer Intern $14,000 Reusable Bags Purchase $17,600 Police $43,500 Police Officer IV Pool $81,180 Leased Space for 9.0 FTE $124,680 Recreation $17,900 Holiday Pay / Private Swim Lessons $75,410 Mac-n-Cheese Festival / Utilities for ARC and Tennis Facilities / Day Camp Scholarships / Credit Card Processing Fees $93,310 Total General Fund $477,100 $363,590 $840,690 3.6% 25 P2 5 I. General Fund $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Fund Long Range Plan 2011-2019 Ending Balance Revenues Expenditures Reserve (25% of Uses) Net Change to Fund Balance: ($10,503,030) 26 P2 6 I. Asset Management Plan Fund •Transfers : $12,451,000 from General Fund $12 million fund balance (one-time) $451,000 from suspending transfers to the EE Housing Fund (4yrs) •Property Tax : 3.3% (inflation + new growth) 65% share of total collections •Other Revenues: 12.3% (interest income) Property Tax $4,146,000 Transfers $12,451,000 Other Revenue $188,800 Revenues = $16,785,800 27 P2 7 I. Asset Management Plan Fund •New City Office Space: $5,566,000 APD: $1,668,000 City Hall / Annex: $3,898,000 •ERP System: $1,500,000 •Old Powerhouse Bldg: $380,000 •Transfers : Rubey Park (Transportation): $250,000 Galena Plaza (Parking): $200,000 New City Office Space $5,566,000 All Other Capital Projects $5,394,700 Property Tax Collection Fees $82,900 Transfers $631,950 Uses = $11,675,550 28 P2 8 I. Enterprise Resource Planning (ERP) •Current Financial System: Eden Over 17 years old Lack of continued development Not supporting business processes efficiently •Benefits of New ERP System New Technology Intuitive User Interface & Mobil Applications Electronic Workflow & Electronic Records –Reduce Paper! Improved Integration w/ Secondary Systems 29 P2 9 I. Asset Management Plan Fund Net Change to Fund Balance: $5,110,250 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 Asset Management Plan Fund Long Range Plan 2011-2019 Ending Balance Revenues Expenditures Reserve 12.5% of Uses 30 P3 0 I. Information Technology Fund •Revenues set to equal expenses •Reduced Expenses: ($426,000) •City / County separation for IT •$381,000 in staffing reductions •$45,000 net other operating cuts •Increased City costs: $215,000 •Cannot reduce certain contract costs •GIS migrated to General Fund Labor $595,270 GF Overhead $113,000 Professional Services $113,000 Transfers and Other Expenses $27,150 Capital $386,100 Expenses = $1,469,770 31 P3 1 I. Information Technology Fund Net Change to Fund Balance: $30 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 Information Technology Fund Long Range Plan 2011-2019 Fund Balance Revenues Expenditures 32 P3 2 I. Debt Service Fund •Revenues: $3,777,830 ISIS Lease Payments / City Transfers •Expenditures: $3,781,400 Sales Tax Revenue Bonds Parks and Open Space: $3,089,520 General Fund (AIG): $93,450 General Obligation Bonds Isis Theater COPs: $598,400 Parks & Open Space $3,089,500 General Fund (AIG) $93,500ISIS COPs $598,400 Expenditures = $3,781,400 33 P3 3 I. Citywide Debt Parks & Recreation Bonds $32,860,000 Energy Efficiency Lease Purchase $297,631 Facility Bonds $12,095,000 Housing Bonds $5,490,000 By Type = $50,742,631 General Fund $297,631 Debt Service Fund $39,725,075 Golf Fund, $539,925 Electric Fund $4,690,000 Marolt Fund $1,185,000 Truscott Fund $4,305,000 By Fund = $50,742,631 34 P3 4 I. Employee Housing Fund •Transfers from City Departments $463,000 (excludes $450,000 from GF) •One-Time Sale of Burlingame Units $669,000 for three units •Rentals and Other Income relatively flat New Unit Sales $669,000 Transfers $463,000 Other Income, $101,100 Revenues = $1,233,100 35 P3 5 I. Employee Housing Fund •Fund Balance Becoming Material $200,000 requested for exploration of new development opportunities 2016 includes possible development •Operating Costs Slightly Lower Asset management staffing reduced from 0.52 to 0.35 FTEOperating Expenses $129,110 Capital Expenses $318,000 Expenditures = $447,110 36 P3 6 I. Employee Housing Fund Net Change to Fund Balance: $785,990 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 Employee Housing Fund Long Range Plan 2011-2019 Fund Balance Revenues Expenditures Reserve (12.5% of Uses) 37 P3 7 I. Employee Health Insurance Fund •Fund balance continues to hover around $2M Able to keep premium increases low •Affordable Care Act influencing labor decisions Parks and Open Space SeasonalsEmployee Premiums $696,540 Employer Premiums $3,725,560 Other Income $260,000 Revenues = $4,682,100 38 P3 8 I. Employee Health Insurance Fund •Base claims cost includes marginal increase •Supplemental requests add $133,600 •Reinsurance contract re-negotiation Multi-year contract expires 2014 •Valley Health Alliance added $25,000 •Mayo Clinic health risk assessment and point system also new Preventative Consulting $75,000 Claims Administration $660,000 Plan Consulting $43,000 Health Savings Acct. Contributions $175,000 Claims Paid, $3,983,600 Expenditures = $4,936,600 39 P3 9 I.