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HomeMy WebLinkAboutagenda.council.worksession.20221003AGENDA CITY COUNCIL WORK SESSION October 3, 2022 4:00 PM, City Council Chambers 427 Rio Grande Place, Aspen I.Work Session I.A 2022 Financial Update & 2023 Budget Kick-off I.B 2023 Budget Deliberations: Asset Management Plan & General Fund Overview; Administrative Services, Asset, Information Technology Departments, and Employee Benefits Fund Zoom Meeting Instructions Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://us06web.zoom.us/j/82652923929? pwd=b0Uxa2V2cFB2NWU5WVZOMFMvSzkydz09 Passcode: 81611 Or join by phone: Dial: US: +1 346 248 7799 Webinar ID: 826 5292 3929 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/ktmGrDvFg 2022 Financial Update & 2023 Proposed Budget Kick-off FINAL.pdf October 3 MASTER FINAL.pdf 1 2022 Financial Update & Budget Kick-Off October 3, 2022 2 City Sales Tax Recipients of City Sales Tax 2.40% Parks & Open Space 1.00% Parks & Open Space (1)0.50% Public Schools (2)0.30% Kids First / Affordable Housing 0.45% Transportation (3)0.15% Taxing Entity Tax Rate Levied City of Aspen 2.40% Pitkin County 3.60% Roaring Fork Transit Authority 0.40% State of Colorado 2.90% Total Sales Tax 9.30% 1 -Sunset Date of December 31, 2025 2 -Sunset Date of December 31, 2026 3 -Sunset Date of December 31, 2040 3 City Sales Tax …Thru July Annual Annual 2021 Sales 2022 Sales 2022 vs 2021 2021 Sales 2022 Sales 2022 vs 2021 2022 Sales 2023 Sales 2023 vs 2022 Accommodations $127,784,219 $221,630,309 73%$256,865,311 $345,001,309 34%$345,001,309 $327,751,000 -5% Restaurants $85,248,474 $121,226,848 42%$154,955,362 $189,999,848 23%$189,999,848 $190,001,000 0% Sporting Goods $37,801,824 $44,949,615 19%$65,735,189 $71,000,615 8%$71,000,615 $71,000,000 0% Clothing $63,841,945 $85,361,654 34%$121,272,550 $149,999,654 24%$149,999,654 $150,001,000 0% Food & Drug $40,806,825 $46,806,990 15%$68,967,198 $78,000,990 13%$78,000,990 $80,340,000 3% Liquor $7,967,531 $7,399,483 -7%$13,759,851 $12,999,483 -6%$12,999,483 $13,519,000 4% Marijuana $6,990,302 $5,885,937 -16%$11,207,258 $9,500,937 -15%$9,500,937 $9,689,000 2% Miscellaneous $46,845,409 $56,443,938 20%$94,221,354 $108,000,938 15%$108,000,938 $112,320,000 4% Luxury Goods $22,782,606 $27,370,273 20%$46,883,805 $54,999,273 17%$54,999,273 $54,999,000 0% Utilities $31,189,592 $30,510,384 -2%$49,592,868 $48,000,384 -3%$48,000,384 $49,438,000 3% Construction $51,510,690 $46,882,063 -9%$94,834,967 $88,001,063 -7%$88,001,063 $94,160,000 7% Automobile $18,724,906 $20,603,864 10%$31,400,315 $32,999,864 5%$32,999,864 $34,980,000 6% Banking / Financial $2,559,110 $3,552,492 39%$4,463,553 $5,699,492 28%$5,699,492 $5,814,000 2% Health & Beauty $3,781,399 $2,765,509 -27%$6,593,635 $5,000,509 -24%$5,000,509 $5,201,000 4% Total Taxable Sales $547,834,831 $721,389,361 32%$1,020,753,218 $1,199,204,361 17%$1,199,204,361 $1,199,213,000 0% •Pacing 32% YTD; Forecast 17% @ Year-End •Flat for 2023 At This Time 4 City Sales Tax Year -to-Date Taxable Sales January February March April May June July 2021 $62,330,284 $133,164,639 $238,616,719 $287,391,471 $327,756,320 $422,840,983 $547,834,831 2022 $117,742,141 $243,780,391 $393,875,585 $448,751,889 $490,426,926 $595,963,336 $721,389,361 % Increase 89%84%65%56%50%41%32% Tapered Annual Growth Expectations to 17% by December 2022 5 Challenges Ahead Federal Funds Rate Fed Needs to Slow Demand to Fight High Inflation (8.2% as of August) 6 Challenges Ahead Statewide Picture Shows Job Recovery Still Lags In a Few Industries Yet BLS & LCS Sept 2022 Forecast7 Lodging Tax •Occupancy Down Relative to 2021 Since May •Below Pre-Pandemic Levels As Well 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Jan Feb Mar Apr May Jun Jul Aug76%79%79%40%38%62%81%75%70%80%79%39%30%63%76%69%OccupancyOccupancy 2019 2022 8 Lodging Tax Is Nightly Rate Influencing Occupancy? •Avg. $675 / Night in 2022 vs. $473 In 2019 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 Jan Feb Mar Apr May Jun Jul Aug$662$631$627$240$201$481$539$485$786$913$896$437$332$622$731$686Avg. Nightly Rate 2019 2022 9 Lodging Tax $1,043,711 $1,401,750 $1,331,750 $300,000 $500,000 $700,000 $900,000 $1,100,000 $1,300,000 $1,500,000 Lodging Tax Collections (Transportation Share Only) Lodging Tax Transportation •2022 Projected Up 34% When Compared to 2021 (Soft Start of Year) •2023 Forecast Includes 5% Pull Back 10 Real Estate Transfer Taxes $2.95 $3.28 $4.09 $2.25 $4.35 $2.35 $2.23 $2.47 $2.30 $1.37 $2.63 $2.00 $1.60 $2.11 $1.38 $2.13 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 Jan Feb Mar Apr May Jun Jul Aug Millions Average Value per Transactions 2021 Avg. Consideration 2022 Avg. Consideration 584 (’21) vs 437 (‘22) $1.15B (’21) vs $1.34B (’22) 72 54 78 80 70 67 73 90 53 48 66 57 62 64 30 57 0 10 20 30 40 50 60 70 80 90 100 Jan Feb Mar Apr May Jun Jul Aug # of Real Estate Transactions 2021 Transactions 2022 Transactions 11 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 HRETT WRETT Real Estate Transfer Taxes -41% -37% 2022: 12% Off Peak from Last Year 2023: Assumes 46% Below 12 Takeaways For Budget Review Tax Revenues 2022 2023 City Sales Tax +17%Flat Lodging Tax +34%-5% Real Estate Transfer Taxes -12%-46% City Share of County Sales Tax +17%Flat Property Taxes +3%4% •Inflation Impacting Capital / Utilities •Staffing Challenges Remain Post Pandemic •Economic Activity Expected to Slow •Low Inventory to Dampen RETT from Highs 13 2023 Proposed Budget Overview Andrew Kramer –Budget Manager October 3, 2022 14 OVERVIEW: VALUES & BALANCE 2 2022 Orig. Budget 2023 Budget $ Change % Change Revenues $157,262,993 $186,806,267 $29,543,273 18.8% Base Operating: On-Going $79,531,007 $86,479,940 $6,948,933 8.7% Supplementals $3,201,730 $5,354,160 $5,354,160 N/A Total Operating $82,732,737 $91,834,100 $9,101,363 11.0% Capital Outlay $53,108,255 $42,212,340 ($10,895,915)(20.5%) Debt Service $6,564,870 $6,641,337 $76,467 1.2% Net Appropriations $142,405,862 $140,687,777 ($1,718,085)(1.2%) Transfers $26,096,840 $30,900,450 $4,803,610 18.4% Total Appropriations $168,502,701 $171,588,227 $3,085,525 1.8% Ending Fund Balance $179,116,202 $222,931,571 $43,815,369 24.5% 15 BASE REVENUES & EXPENSES 3 Tax Revenues 2021 2022 2023 (Proposed) General Revenue (Taxes)$54,152,000 $66,801,179 $80,796,720 Licenses and Permits $15,389,200 $7,228,300 $7,309,430 Intergovernmental Revenues $1,387,400 $926,630 $2,731,850 Charges for Services $30,298,740 $44,858,060 $54,205,070 Other Inflows $12,824,455 $13,281,000 $14,989,720 Other Revenue Sources $6,097,663 $8,469,885 $7,898,627 General Transfers In $16,737,540 $15,697,940 $18,874,850 Total Gross Revenue $136,886,998 $157,262,993 $186,806,267 36% Increase Over 2021 Budget Supplemental Requests 4% Capital 30% Debt Service 5% Operating 61% 2023 Net Appropriations by Type •Previous Ongoing Supplementals •4% Goods & Services Increase to Base •4% Merit / 8% Insurance •Capital Project Inflation 16 New Positions: 14.5 FTE •7.0 FTE are $0 •2.5 FTE are Termed (One-time) •5.0 FTE Ongoing: •Staff Attorney •2 Early Childhood Educator Interns •GIS Analyst •AV/IT Support Tech •Preserving Affordable Housing: $2M •Grants & External Support: $1.1M •Increases To Maintain Service Levels: $900k •Arts & Recreation: $279k •Comms, Advocacy, Technology: $228k 17 CAPITAL: $42.2M 5 10 Largest Projects (of 106) = $23.3M or 55% $2.7M in Capital Maintenance: •General Maintenance of Existing Assets Maroon Creek Road Trail -Construction $4,000,000 Garmisch Street Pipe Repair and Replacement $3,000,000 Iselin Tennis Court Replacement -Construction $2,800,000 Red Brick North to Red Brick South Circuit Replacement Construction $2,300,000 Replacement of Theatrical Rigging System $2,100,000 Public Corridor & Gallery Implementation $2,070,000 Burlingame Phase 3 -New Construction Buildings 8-15 (79 units)$2,000,000 Entrance to Aspen $2,000,000 Park Ave Infrastructure Improvement $1,600,000 Lumber Yard Housing Development $1,500,000 18 Lease Purchases $55,321 0% Parks and Recreation Bonds $13,780,000 25% Facility Bonds $40,690,000 75% 6 Debt: $6.5M Debt Outstanding As of 1/1/2023 (Assumes Sale of Isis) •New City Hall ($23.8M) •Parks & Open Space ($13.7M) •Aspen Police Department ($15.9M) •CCEC Balance ($1.2M) •Energy Efficiency Improvements & Golf Equipment City Charter: Section 10.4 General Obligation Debt Limit: 20% of Assessed Value (~$400M) 19 7 Adjustments Council Review Meetings Scheduled Topics / Funds Monday, October 10 Police; Special Events; Recreation; Housing Development; Truscott; Marolt; Employee Housing; APCHA; Smuggler; Truscott II; Aspen Country Inn and Aspen Mini Storage; Tourism Promotion; Monday, October 24 Wheeler; Red Brick; Parks; Golf; Tourism Promotion; Public Education; Debt Services Tuesday, October 25 Housing Development; Truscott; Marolt; Employee Housing; APCHA; Smuggler; Truscott II; Aspen Country Inn and Aspen Mini Storage Isis Debt Retirement (Resolution #113 (Series 2022)) •250 Fund Appropriation Reduced $174,247 (2023 and Out Years) 20 General Fund / AMP Funds Overview Andrew Kramer –Budget Manager October 3, 2022 21 000 -AMP: Revenues 2 Property Tax 74% Transfers In Property Tax 26% General Fund Operating Revenues 2023 2024 2025 2026 2027 Request Projection Projection Projection Projection Opening Balance $24,299,234 $21,852,424 $12,803,104 $9,172,184 $9,125,154 Property Tax $4,356,600 $4,530,900 $4,712,100 $4,900,600 $5,096,600 Investment Income $0 $437,050 $256,060 $183,440 $182,500 Non-Classified $4,356,600 $4,967,950 $4,968,160 $5,084,040 $5,279,100 81300 -Capital Maintenance $0 $0 $0 $0 $0 Revenues In $4,356,600 $4,988,950 $4,968,160 $5,084,040 $5,344,100 From the Parks Fund $0 $350,000 $0 $0 $0 From the Stormwater Fund $400,000 $100,000 $0 $0 $0 From the REMP Fund $100,000 $0 $0 $0 $0 Transfers In $1,500,000 $3,700,000 $80,000 $150,000 $100,000 Total Revenues $5,856,600 $8,688,950 $5,048,160 $5,234,040 $5,444,100 22 000 –AMP Fund: Expenditures 3 Asset 1% Police 1% Streets 10% Climate 1% Engineering 76% Rec 11% Capital Projects20232024202520262027 Request Projection Projection Projection Projection 113 -Clerks Office $36,100 $0 $0 $137,000 $0 117 -Finance $0 $0 $0 $10,000 $0 119 -Asset Management $50,000 $4,545,000 $0 $0 $0 123 -Building $0 $10,000 $0 $0 $0 221 -Police $96,000 $40,000 $152,500 $65,000 $0 321 -Streets $719,000 $1,245,900 $981,300 $883,000 $1,011,500 325 -Climate Action $80,000 $0 $85,000 $0 $90,000 327 -Engineering $5,585,000 $9,550,000 $5,401,800 $2,366,500 $2,697,000 542 -Aspen Rec Center $786,000 $1,412,850 $1,130,000 $781,230 $945,000 552 -Red Brick $0 $0 $0 $0 $0 Capital Projects $7,352,100 $16,824,750 $7,750,600 $4,242,730 $4,808,500 118 -Information Technology $37,100 $11,400 $12,500 $113,700 $38,200 119 -Asset Management $152,000 $164,000 $179,000 $195,000 $211,000 321 -Streets $56,000 $218,600 $108,400 $59,000 $221,600 327 -Engineering $209,000 $164,000 $164,000 $259,000 $164,000 542 -Aspen Rec Center $163,700 $50,000 $185,680 $122,740 $52,000 552 -Red Brick $0 $0 $0 $0 $0 Capital Maintenance $617,800 $627,600 $649,580 $749,440 $686,800 Total Uses $8,303,410 $17,738,270 $8,679,080 $5,281,070 $5,807,340 Ending Fund Balance $21,852,424 $12,803,104 $9,672,184 $9,635,154 $9,282,114 Set Aside for Lift 1A Escrow $4,360,000 $4,360,000 $4,360,000 $4,360,000 $4,360,000 Adjusted Ending Fund Balance $17,492,424 $8,443,104 $5,312,184 $5,275,154 $4,922,114 23 001 -General Fund: Revenues 4 Property Tax 10% Personal Property Tax Property Tax 1% County Sales Tax 41% Tobacco Tax 1% Other Taxes 4% Refund of Exp 16% Dep't Collections 27% General Fund Operating Revenues 2023 2024 2025 2026 2027 Request Projection Projection Projection Projection Opening Balance $30,461,471 $31,533,771 $33,527,111 $35,611,731 $37,694,961 Real Property $4,359,600 $4,533,900 $4,715,200 $4,903,800 $5,099,900 Personal Property $243,360 $253,090 $263,210 $273,740 $284,690 County Sales Tax $17,458,000 $18,156,300 $18,882,600 $19,637,900 $20,423,400 City Tobacco Tax $350,000 $364,000 $378,560 $393,700 $409,450 Other Taxes $1,687,470 $1,721,210 $1,755,640 $1,790,750 $1,826,570 State Government Shared Revenue $150,000 $153,000 $156,060 $159,180 $162,360 Pitkin County Shared Revenue $20,000 $20,400 $20,810 $21,230 $21,650 Refund of Expenditures $6,624,600 $6,856,500 $7,096,600 $7,344,900 $7,601,900 Investment Income $0 $630,680 $670,540 $712,230 $753,900 Unassigned Revenues $30,893,030 $32,689,080 $33,939,220 $35,237,430 $36,583,820 Departmental Collections $11,519,790 $10,958,520 $11,115,620 $11,336,140 $11,561,060 Transfers In $1,876,930 $1,816,580 $1,762,030 $1,762,700 $1,837,800 Total Revenues $44,289,750 $45,464,180 $46,816,870 $48,336,270 $49,982,680 24 001 -General Fund: Expenditures 5 Administrative 36% Police 18% ComDev/EH/Climate 17% Engineering 6% Streets 6% Rec/Events/Bus Svcs 17% General Fund Operating 2023 2024 2025 2026 2027 Request Projection Projection Projection Projection Administrative $13,229,740 $13,304,740 $13,635,290 $14,080,000 $14,542,710 122 -Planning $2,183,010 $2,112,140 $2,194,910 $2,281,540 $2,372,280 123 -Building $2,374,240 $2,466,330 $2,558,600 $2,655,020 $2,755,790 221 -Police $6,640,560 $6,892,860 $7,145,750 $7,409,870 $7,685,810 321 -Streets $2,168,670 $2,244,630 $2,320,700 $2,399,970 $2,482,680 325 –Climate Action $598,070 $619,030 $640,080 $662,000 $684,890 327 -Engineering $2,271,820 $2,247,690 $2,329,510 $2,414,850 $2,503,960 431 -Environmental Health $1,121,560 $1,160,540 $1,199,660 $1,240,460 $1,282,950 532 -Events $1,052,310 $1,086,060 $1,119,940 $1,155,160 $1,191,870 542 -Aspen Rec Center $4,726,500 $4,819,580 $4,993,010 $5,174,060 $5,363,180 572 -Parks and Open Space $287,730 $298,530 $309,290 $320,540 $332,310 592 -Business Services $221,400 $225,820 $230,340 $234,950 $239,650 Operating $36,875,610 $37,477,950 $38,677,080 $40,028,420 $41,438,080 Transfers Out $6,341,840 $5,992,890 $6,055,170 $6,224,620 $6,182,070 Total Uses $43,217,450 $43,470,840 $44,732,250 $46,253,040 $47,620,150 Ending Fund Balance $31,533,771 $33,527,111 $35,611,731 $37,694,961 $40,057,491 25 2023 Administrative Services (Mayor & Council, Clerk, City Manager’s Office, Human Resources, Attorney’s Office, Finance, Asset Management, Information Technology) October 3, 202266 26 7 GF ADMIN SERVICES STRUCTURE ADMINISTRATIVE SERVCIES (53.6 FTE) Mayor & Council (2.5) Clerks Office (5)* City Manager (12.75)* Human Resources (5.38) Attorney (3)* Finance (15.6) Asset Management (9.38)* Personnel Services 57%Services & Contracts 21% Supplies 2% Utilities 2% Other 14% Overhead & Allocations 4% 2023 Budget by Expense Type *Does Not Include Supplemental FTE Requests 27 ADMIN REVENUES 8 Clerks Office 1% Finance 4% Asset Mgmt 2% GF Overhead 93% Overhead Calculated To Recoup Costs of Providing Admin Services to Non-GF Depts 28 GF ADMIN EXPENDITURES 9 Non-Classified 1% Mayor and Council 18% Clerks Office 6% Managers Office 20% Human Resources 8% Attorney's Office 6% Finance 20% Asset Management 21% Operating Budgets20232024202520262027 Request Projection Projection Projection Projection Non-Classified $95,370 $97,280 $99,230 $101,210 $103,230 Mayor and Council $2,451,590 $2,239,800 $2,122,490 $2,169,660 $2,218,050 Clerks Office $814,200 $810,220 $838,110 $867,180 $897,550 Managers Office $2,591,420 $2,693,490 $2,791,250 $2,893,170 $2,999,480 Human Resources $1,021,430 $1,057,180 $1,093,050 $1,130,470 $1,169,450 Attorney's Office $816,270 $843,960 $875,270 $907,920 $941,980 Finance $2,679,850 $2,774,190 $2,943,070 $3,050,170 $3,162,100 Asset Management $2,759,610 $2,788,620 $2,872,820 $2,960,220 $3,050,870 Operating $13,229,740 $13,304,740 $13,635,290 $14,080,000 $14,542,710 Overhead Allocations $543,300 $428,490 $433,210 $469,640 $445,140 Transfers Out $543,300 $428,490 $433,210 $469,640 $445,140 Total Uses $13,773,040 $13,733,230 $14,068,500 $14,549,640 $14,987,850 Surplus/(Subsidy)($6,565,670)($6,340,910)($6,422,610)($6,641,530)($6,808,380) As a Percent of Uses 48%46%46%46%45% 29 FY23 Budget Supplemental Requests Mayor & Council –Fund 001.112 October 3, 20221010 30 2023 SUPPLEMENTAL REQUESTS 11 •Increase To Health & Human Services Grants Category ($100,000 One-time) •Provides Continuity With Budget Between 2022 & 2023 •Improves The Balance Between Grant Categories •Allocates Funds Collected Via Tobacco Tax •Expands The City’s Support Toward HHS Outcomes Tab 3 Page 5 in Budget Book 31 2023 SUPPLEMENTAL REQUESTS 12 •Capacity Building For Health & Human Services Organizations ($75,000 One-Time) •Pilot Initiative •Partner With External Consultant To Assist Organizations Directly •Builds Equity By Providing Access To Professional Services •Allocates Funds Collected Via Tobacco Tax Tab 3 Page 6 in Budget Book 32 2023 SUPPLEMENTAL REQUESTS 13 •Council Meeting Broadcast & Hybrid Communications $10,000 (Ongoing) •Primarily An Inflationary Increase To Grassroots Contract •Adds Zoom Licenses As Hybrid Meeting System •No Adjustments To Service Levels Tab 3 Page 7 in Budget Book 33 FY23 Budget Supplemental Requests City Clerk’s Office –Fund 001.113 Nicole Henning, City Clerk October 3, 20221414 34 2023 SUPPLEMENTAL REQUESTS 15 •Boards & Commissions Liaison -$31,840 Part-time/Termed •Pilot Position To Evaluate For Longevity •May Assist With Clerk’s Managed Boards (ex: NextGen) •Backup Support To Front Desk & Customer Service •Assist With Organizing & Moving Files From Old Armory Tab 3 Page 8 in Budget Book 35 FY23 Budget Supplemental Requests City Manager’s Office –Fund 001.114 Sara Ott, City Manager October 3, 20221616 36 2023 SUPPLEMENTAL REQUESTS 17 •Deputy Public Works Director (1.0 FTE) $215,560 (Termed) •Span Of Control Of Public Works Director Has Expanded •Succession Planning For Continuity •Oversight Of Multiple Departments •Direct Capital Project Development & Implementation •Assist In Strategic Planning & Budget Process Development Tab 3 Page 9 in Budget Book 37 2023 SUPPLEMENTAL REQUESTS 18 •Grant Writing & Advocacy Support Services $100,000 (Ongoing) •Services To Advocate For & Win Federal/State Grants •Offset City Costs & Fund New Projects •Services Available For All City Departments As-needed •Mitigates Risk Of Losing Grant & Funding Opportunities Tab 3 Page 10 in Budget Book 38 2023 SUPPLEMENTAL REQUESTS 19 •Travel & Training $15,000 (Ongoing) •Travel To Professional Conferences •Additional Work At State & Federal Levels •Contractually Mandated Training Increases For Staff Tab 3 Page 11 in Budget Book 39 FY23 Budget Supplemental Requests Communications Office –Fund 001.114 Denise White, Director October 3, 20222020 40 2023 SUPPLEMENTAL REQUESTS 21 •Digital Communication Coordinator 1.0 FTE $0 (Permanent) •Focuses On Digital Communications •Deliver Better Service & Advance Innovation •Minimize Risk To The Organization •FTE Only Appropriation Tab 3 Page 12 in Budget Book 41 22 •Street Smart Campaign $15,000 (Ongoing) •Annual Awareness Campaign For Drivers, Cyclists, & Pedestrians •Focus On Safety, Etiquette, & Regulations •Partner With Engineering, Transportation, Parks, & Police 2023 SUPPLEMENTAL REQUESTS Tab 3 Page 14 in Budget Book 42 23 •Digital Resources Presence & Compliance $12,800 (Ongoing) •Manage Digital Record Retention For Social Media •Compliance With Federal & State Requirement •Develop & Maintain Media Library 2023 SUPPLEMENTAL REQUESTS Tab 3 Page 16 in Budget Book 43 FY23 Budget Supplemental Requests Strategy & Innovation Office –Fund 001.114 Patrick Quick, Director October 3, 20222424 44 2023 SUPPLEMENTAL REQUESTS 25 •Grants Management System ($7,500 Ongoing / $7,500 One-time) •Next Phase Of Software Implementation •To Build Out Processes For New Programming •Improves User Experience For Applicants/Volunteers •November Go-live (Trainings/Resources In October) Tab 3 Page 19 in Budget Book 45 FY23 Budget Supplemental Requests City Attorney’s Office –Fund 001.116 Jim True, City Attorney October 3, 20222626 46 2023 SUPPLEMENTAL REQUESTS 27 •Staff Attorney (1.0 FTE); $173,670 (Permanent) •Addresses Expanding Workload •Improves Response Times To Customers (Internal/External) •Municipal Court Prosecution •Local Licensing Authority Tab 3 Page 20 in Budget Book 47 28 Summary Questions? Supplementals: $548,310 -Deputy PW Dir ($215k –1.0 FTE –Various Funds) -Staff Attorney ($173k –1.0 FTE) -HHS Grants ($100k) -Grant Writing & Advocacy ($100k) -Capacity Building Grants ($75k) -Boards & Commissions Liaison ($31k) -Travel & Training ($15k) -Street Smart ($15k) -Grants System ($15k) -Digital Compliance ($12k) -Council Meeting Broadcasts ($10k) -Digital Comms Spc ($0 –1.0 FTE) 48 FY23 Budget & Compass Report Asset Management -001 Fund Robert Schober -Director October 3, 20222929 49 2021/2022 COMPASS WINS 30 Community Impact •37K SF of new energy efficient space •Consolidation of City departments Top 3 Projects Wheeler Masonry Restoration Operation of New City HallLumberyard Housing •Full exterior restoration •Preservation of building•Progress –Schematic Design Level •Sustainability •Affordable housing 50 2022/2023 COMPASS HIGHLIGHTS 31 PROJECTS: •Maintenance Work Order System •Cost Tracking Metrics in Oracle GOAL: Refine Cost/Workflow Tracking Procedures 51 2022/2023 COMPASS HIGHLIGHTS 32 PROJECTS: •Targeted Stakeholder Surveys & Focus Groups •Action Plan from Feedback for Future Compass •Levelized Service Agreements with Customers GOAL: Optimize Services & Continuous Improvement 52 2022/2023 COMPASS HIGHLIGHTS 33 PROJECTS: •“Basis of Estimate” for all Capital Projects •Utilize Unit Cost Estimates for Large Capital Projects Lumberyard Housing Rendering GOAL: Improve Annual & Long-range Budget Planning & Procedures 53 34 Asset Management (9.37 FTE) General Administrative (2.66) City Facilities (2.88) Employee Housing (0.27) Capital (3.59) ASSET STRUCTURE 54 ADMIN REVENUES 35 Clerks Office 1% Finance 4% Asset Mgmt 2% GF Overhead 93% Overhead Calculated To Recoup Costs of Providing Admin Services to Non-GF Depts 55 GF ADMIN EXPENDITURES 36 2023 2024 2025 2026 2027 Request Projection Projection Projection Projection Non-Classified $95,370 $97,280 $99,230 $101,210 $103,230 Mayor and Council $2,451,590 $2,239,800 $2,122,490 $2,169,660 $2,218,050 Clerks Office $814,200 $810,220 $838,110 $867,180 $897,550 Managers Office $2,591,420 $2,693,490 $2,791,250 $2,893,170 $2,999,480 Human Resources $1,021,430 $1,057,180 $1,093,050 $1,130,470 $1,169,450 Attorney's Office $816,270 $843,960 $875,270 $907,920 $941,980 Finance $2,679,850 $2,774,190 $2,943,070 $3,050,170 $3,162,100 Asset Management $2,759,610 $2,788,620 $2,872,820 $2,960,220 $3,050,870 Operating $13,229,740 $13,304,740 $13,635,290 $14,080,000 $14,542,710 Overhead Allocations $543,300 $428,490 $433,210 $469,640 $445,140 Transfers Out $543,300 $428,490 $433,210 $469,640 $445,140 Total Uses $13,773,040 $13,733,230 $14,068,500 $14,549,640 $14,987,850 Surplus/(Subsidy)($6,565,670)($6,340,910)($6,422,610)($6,641,530)($6,808,380) As a Percent of Uses 48%46%46%46%45% 56 2023 SUPPLEMENTAL REQUESTS 37 City Hall Operations & Maintenance $199,000 (Ongoing) •Main Drivers : Utilities, Snow Removal, Custodial •Limited Data For Basis Of For Building Operating Costs •As Building Operations Progress Efficiencies Will Be Found Tab 3 Page 21 in Budget Book 57 2023 Major Capital Projects 38 Appropriations by Year Prior Years $0 2023 $50,000 Out Years $450,000 Lifetime Budget $500,000 51249 –Animal Shelter –Energy Efficiency Upgrades •Improve Efficiency & User Friendliness •High Efficiency Boilers •Envelope & Ventilation Improvements •Updating Fixtures & Finishes At End Of Life •Potential For Solar •2023 –Develop Project Scope & Complete Design Work •2024 –Execute Project Task Level Budget Design & Engineering $25,000 Hard Construction Cost $475,000 58 2023 CAPITAL 39 Capital Maintenance Projects 2023 40002 Facility Maintenance $126,000 40003 Animal Shelter Maintenance $26,000 59 40 Summary Questions? Compass Goals: -Refine cost/workflow tracking procedures -Optimize services & continuous improvement -Improve annual & long-range budget planning Supplementals: City Hall Ops & Maintenance ($199k) Capital: $202,000 60 FY23 Budget Report Information Technology (Fund 510) Ladd Vagen –Interim IT Director John Sobieralski –Interim Deputy IT Director October 3, 2022 4141 61 42 Information Technology Fund (7.0 FTE) General Administrative (0.73) Workgroup Services (2.06) Network Services (2.1) Phone Services (0.26) Application Licenses (0.43) Help Desk (1.42) IT FINANCE STRUCTURE 62 IT REVENUES 43 IT Fees 3% Refund of Expenditures - County 1% Community Broadband 4% Transfers In 92% 2023 2024 2025 2026 2027 Request Projection Projection Projection Projection Opening Balance $578,553 $587,903 $712,383 $844,093 $983,383 IT Fees $108,300 $85,410 $86,350 $93,610 $88,730 Refund of Exp -County $47,100 $48,040 $49,000 $49,980 $50,980 Interest Income $0 $11,760 $14,250 $16,880 $19,670 Other Revenues $610 $620 $630 $640 $650 Community Broadband $122,400 $124,850 $127,350 $129,900 $132,500 Transfers In $2,991,800 $2,359,590 $2,385,600 $2,586,170 $2,451,290 Total Revenues $3,270,210 $2,630,270 $2,663,180 $2,877,180 $2,743,820 63 IT EXPENDITURES 44 Administrative 11% Workgroup Services 22% Network Services 32% Phone Services 5% Application Licenses 10% Help Desk 14% Community Broadband 6% Operating Budget 2023 2024 2025 2026 2027 Request Projection Projection Projection Projection Administrative $191,890 $182,440 $188,330 $194,450 $200,790 Workgroup Services $383,160 $370,940 $384,790 $399,280 $414,420 Network Services $560,780 $516,660 $533,080 $550,140 $567,890 Phone Services $87,690 $90,250 $92,810 $95,470 $98,220 Application Licenses $186,110 $191,170 $196,290 $201,570 $207,040 Help Desk $250,480 $258,550 $269,090 $280,110 $291,670 Community Broadband $111,940 $114,180 $116,460 $118,790 $121,170 Operating $1,772,050 $1,724,190 $1,780,850 $1,839,810 $1,901,200 Capital $1,095,200 $377,900 $336,700 $473,800 $260,300 Transfers Out $393,610 $403,700 $413,920 $424,280 $434,980 Total Uses $3,260,860 $2,505,790 $2,531,470 $2,737,890 $2,596,480 Ending Fund Balance $587,903 $712,383 $844,093 $983,383 $1,130,723 64 2023 SUPPLEMENTAL REQUESTS 45 •Cyber Security Analyst –Full Time -Termed ($99,860; 1.0fte) •Primary Responsibility –Cyber Security •Knowledge Transfer From Cyber Security Administrator •Ensures Continuity Of Cyber Security Protection •Protects The City From An Incident That Can Cripple Its Service To The Community •Outsourcing Not Recommended Tab 3 Page 49 in Budget Book 65 2023 SUPPLEMENTAL REQUESTS 46 •Audio Visual Helpdesk Tech –Full Time ($87,800; 1.0 Fte) •Primary Responsibility –AV Support, Assists Helpdesk •Currently A Termed Position •Request To Convert To A Permanent Position •Improved Helpdesk Service Levels Tab 3 Page 50 in Budget Book 66 2023 SUPPLEMENTAL REQUESTS 47 •Netmotion Virtual Private Network (VPN) –$32,000 Ongoing •Increase In Licensing For Remote Network Devices •Exceptional Security, Greater Stability •Less Support Required From IT •Ensures VPN Consistency With A Single System •Eliminates The Second VPN System IT Currently Manages Tab 3 Page 51 in Budget Book 67 2023 Major Capital Projects 48 Appropriations by Year Prior Years $0 2023 $750,000 Out Years $0 Lifetime Budget $750,000 51649 Data Center Move from Armory to New City Hall •Move All Armory Data Center Hardware & Fiber Optics Cabling •Reroute Fiber to City Hall •Done in Coordination With Armory Renovation Plan Task Level Budget Hard Construction Cost $750,000 68 2023 Capital Projects 49 Capital Projects 2023 51607 Fiber Optic Improvements - 2023 $60,000 51509 Public Website Migration to New Software $50,000 51650 IT Loaner Laptop Refresh - 2023 $40,000 51610 Cyber Security - Policy Mgr for Network Access Contr - 2023 $24,000 Capital Maintenance Projects 2023 40073 Network Services $136,200 40001 Core City Network - AMP $37,100 40072 Cybersecurity Outyears - Implementation $25,000 40091 Fiber Optic Maintenance $10,000 69 50 Summary Questions? 2023 Priorities: -Managing Data Centers -Minimize Cybersecurity Threats -Enable City Staff to do Their Jobs More Efficiently Supplementals: $87,800 1.0 FTE: AV/IT Support Technician $99,860 1.0 FTE: Cyber Security Analyst $32,000: NetMotion VPN Capital: $1,095,200 70 FY23 Budget Employee Benefits Fund (501) Courtney DeVito –HR Director Alissa Farrell –Administrative Services Director October 03, 2022 5171 EE BENEFITS REVENUES 52 Refund on Stop Loss 4% Refund on Rx 1% Employee Premiums 10% Employer Premiums 84% COBRA Revenues 1%2023 2024 2025 2026 2027 Request Projection Projection Projection Projection Opening Balance $3,963,800 $4,317,270 $4,811,300 $5,373,870 $6,011,220 Refund on Stop Loss $275,400 $280,910 $286,530 $292,260 $298,110 Refund on Rx $81,600 $83,230 $84,890 $86,590 $88,320 Employee Premiums $677,200 $731,380 $789,890 $853,080 $921,330 Employer Premiums $5,670,000 $6,123,600 $6,613,490 $7,142,570 $7,713,980 COBRA Revenues $27,000 $29,160 $31,490 $34,010 $36,730 Investment Income $0 $86,350 $96,230 $107,480 $120,220 Other Revenues $200 $200 $200 $200 $200 Total Revenues $6,731,400 $7,334,830 $7,902,720 $8,516,190 $9,178,890 72 EE BENEFITS EXPENDITURES 53 2023 2024 2025 2026 2027 Request Projection Projection Projection Projection Administrative Costs $257,820 $262,970 $268,230 $273,590 $279,060 Employee Wellness/Safety $454,190 $458,640 $463,190 $467,830 $472,570 Reinsurance $673,920 $727,830 $786,060 $848,940 $916,860 Claims Paid $4,992,000 $5,391,360 $5,822,670 $6,288,480 $6,791,560 Total Uses $6,377,930 $6,840,800 $7,340,150 $7,878,840 $8,460,050 Ending Fund Balance $4,317,270 $4,811,300 $5,373,870 $6,011,220 $6,730,060 Administrative Costs 4%Employee Wellness/Safety 7% Reinsurance 11% Claims Paid 78% Operating Budget 73 Health & Benefits Fund Covers: •Partially Self-funded Health Plan Includes: •Medical, Dental, & Vision, Etc. •All Benefits Are Considered Through The Lens Of The Total Compensation Philosophy 74 Recommendations for 2023: •0% Employee Premium Increase For All Tiers •IVF Benefit -$20,000 Lifetime Maximum •Roth 457 Addition •Employee Assistance Program (EAP) •8 Visits Per Issue For Full-time Staff •3 Visits Per Issue For Part-time Staff •2023 Compensation Plan Under Review 75 56 Summary Questions? Up Next (Oct 4): -Streets -Community Development & Environmental Health -REMP Fund 76