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CITY COUNCIL WORK SESSION
October 05, 2015
5:00 PM, City Council Chambers
MEETING AGENDA
I. Budget Work Session - Overview, General Fund, Asset Management Plan and internal service
funds
2016 Proposed Budget
October 5, 2015
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Agenda
•Budget Overview
•General Fund (001)
•Asset Management Plan (000)
•Debt Service Fund (250)
•Employee Benefits Fund (501)
•Employee Housing Fund (505)
•Information Technology Fund (510)
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2016 Revenue
$119,706,893
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$38,253,050 $41,050,643
$25,272,910
$10,377,640
$4,752,650
$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
$45,000,000
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2016 Tax Revenue
Taxes
$51,107,100
43%
2015 Revenues: $119,706,893
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$14,340,600
$8,560,000
$8,000,000
$7,475,400
$4,289,000
$3,226,000
$2,458,000
$1,563,100
$1,195,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
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2.1% City Sales Tax
Excludes 0.3% Tax for Public Education
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$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
$13,000,000
$14,000,000
$15,000,000
Actual Collections Inflation Adj. Collections
55% of 0.45%
Kids First
$1,690,000
45% of 0.45%
Housing Dev.
$1,383,600
0.15%
Transportation
$1,024,000
1.50% Parks &
Open Space
$10,243,000
2015 Forecast: 5.4%
2016 Projection: 4.0%
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Property Tax Collections
General Fund (35%) / Asset Management Plan Fund (65%)
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$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 2016
$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 2015
1.434
2.198 2.124
0.894
0.755
0.426
0.273
1.018
0.000
0.500
1.000
1.500
2.000
2.500
2009 2010 2011 2012 2013 2014 2015 2016
Mill Levy Credit
Mill Levy Credit
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Real Estate Transfer Taxes
Housing Development Fund (1.0%), Wheeler Opera House Fund (0.5%)
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$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
1.0% RETT -
Housing
Development Fund
$8,000,000
0.5% RETT -
Wheeler Opera
House Fund
$4,289,000
2015 Forecast: $8.4M & $4.5M
2016 Projection: $8.0M & $4.3M
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2.0% Lodging Tax
Tourism Promotion Fund (1.50%) / Transportation Fund (0.50%)
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$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
1.5% Tax -
Tourism
Promotion
$2,419,500
0.5% Tax -
Transportation
$806,500
2015 Forecast: 7.5%
2016 Projection: 4.0%
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2.1% Use Tax
Transportation (2.1%)
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$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2010 2011 2012 2013 2014 2015 Projected 2016 Projected
Use Tax
2015 Forecast: 20%
2016 Projection: 7%
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2016 Fee Revenue
Fees,
$40,506,330
34%
2016 Revenues: $119,706,893
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$16,396,300
$7,950,150
$4,135,180
$3,598,900
$3,215,810
$1,365,300
$700,000
$3,144,690
$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
$18,000,000
Includes Fees
from 600 Funds
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Some Noteable Fee Changes
•Clerk’s Office
25% reduction for liquor and marijuana license transfers, per State regulations
•Law Enforcement Fees
50%-60% reduction to case reports, communication logs, records research
based on modernizing search functions (computer vs. paper files), using an
online vendor for reporting search, and e-mail distribution options
•Engineering
3% increase in applications and development review services
Labor per hour increase from $257.50 to $325.00
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Some Noteable Fee Changes
Com Dev
Same increase in labor hourly rate for service ($325)
Energy Code Fee from 10% to 15%
Temporary Certificate of Occupancy Permit increased from 5.0% to 7.5% of
the Building Permit Fee
3% increase to electrical & plumbing reviews; many other fees eliminated
•Water and Electric Utilities
Rate increases for availability and demand-based charges –to be discussed
more during a future meeting
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2016 Transfers
Transfers
$20,942,650
17%
2016 Revenues: $119,706,893
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$5,791,800
$3,828,000
$3,476,000
$3,107,400
$1,131,000
$740,000
$525,000 $521,000
$1,822,450
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
General Fund and IT Overhead Transfers
Include 600 Funds; ACI Transfer to be
shown as Capital Expense in 150 Fund
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2016 Proposed Expenditure Authority
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•Base Budget
•Equal to same level of resources as prior fiscal year,
adjusted for:
»Salary increases (Up to 4.0% merit pay)
»Health care increases (5.0% premium increase)
»Wellness Benefit: $80 increase (to $700)
»Goods & Services Inflationary Increase (2.0% allowance)
•Supplemental Requests
•New resource requests for expanded or new services, or
for cost escalation beyond the 2.0% target
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2016 Overview
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* Added REMP to 2015 though not originally adopted in the 2015 budget.
2015
Budget
2016 Before
Adjusting for 600
Funds
2016 Proposed
Budget Change
Base Operating Budget –Non-Labor $29,497,910 $30,976,000 $30,212,780 2.4%
Base Operating Budget –Labor $30,204,300 $31,640,090 $30,771,920 1.9%
Total Base Operating Budget $59,702,210 $62,616,090 $60,984,700 2.1%
Supplementals –Non-Labor N/A $1,625,500 $1,625,500 N/A
Supplementals –Labor N/A $571,230 $573,630 N/A
Total Operating Budget $59,702,210 $64,812,820 $63,183,830 5.8%
Capital Outlay $27,395,180 $27,304,480 $25,547,100 (6.7%)
Debt Service $5,469,740 $5,393,940 $5,393,940 (1.4%)
Total Request (Excluding Transfers)$92,567,130 $97,511,240 $94,124,870 1.7%
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2016 Capital
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2015 Projects 2015 Budget 2016 Projects 2016 Budget
City Facility Construction –All $5,566,000 Aspen Police Department Building $11,504,000
Burlingame –Single Family & Parking Exp.$4,012,000 Bus Replacements 1,350,000
Wheeler Improvements –Second Floor $3,000,000 Street Improvements $843,000
Galena Plaza Redevelopment $1,556,000 ACI Property Improvements ($2.4M Total)$740,000
ERP System $1,500,000 Parks &Open Space Future Acquisition $600,000
Truscott I –Drainage Improvements $1,000,000 General Fund Fleet Replacements $553,900
Fleet Replacements –General Fund $658,000 Pay and Display Parking Meters $511,920
Rubey Park Remodel $500,000 Water Distribution Replacement on Roaring Fork Rd $500,000
Aspen Mtn. Drainage Basin Improvements $500,000 Parks & Open Space Fleet Replacements $418,000
Mill Street Pedestrian Improvements $420,000 Curb and Gutter Replacements $402,000
Aggregate Projects Below $400,000 $8,683,180 Aggregate Projects Below $400,000 $8,124,280
Total 2015 Capital Projects $27,395,180 Total 2016 Capital Projects $25,547,100
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2016 Debt Service
2015 Budget 2016 Budget
Debt Service Fund (Parks Bonds &ISIS COPs)*$3,781,400 $3,707,000
Truscott Housing Fund $713,300 $710,600
Marolt Housing Fund $431,400 $433,400
Electric Utility Fund (Castle Creek Energy Center)$358,600 $358,400
Golf Course Fund (Equipment Replacements)$136,100 $135,600
General Fund (McKinstry Energy Efficiency Project)$48,940 $48,940
Total Debt Service $5,469,740 $5,393,940
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2016 Supplementals
Dept / Fund Request Purpose
City Council $4,500 Promote Locally Grown Food at Community Picnic
City Council $10,000 Establish a Training Budget for Citizen Staffed Boards
City Manager $8,000 Cost Escalation Associated with the Citizen Survey
City Manager $28,450 Temporary Staffing for Community Relations
Human Resources $1,290 Temporary Staffing for Translator Services
Finance $226,000 Hosting Costs for New ERP System
Finance $25,000 Internal Control Auditing Services
Community Development $25,000 Updating Requirements Around Environmentally Sensitive Areas
Community Development $100,000 Update Transportation and Parking Requirements (Council Goals #1 & #6)
Community Development $25,000 Historic Property Inventorying
Community Development $50,000 Small Lodge Preservation –Energy Efficiency Program
Community Development $20,000 Small Lodge Preservation –Planning Assistance
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2016 Supplementals
Dept / Fund Request Purpose
Community Development $90,000 Small Lodge Preservation –Expedited Building Permit Review Services
Community Development $25,000 Small Lodge Preservation –Building Code Assessment
Community Development $85,000 Temporary Staffing for Plans Review
Community Development $275,000 Files and Plan Sets Scanning Contract
Engineering $30,810 Increasing Administrative Coverage with Additional Part Time Staff Hours
Environmental Health $44,500 City of Aspen Share of Solid Waste Study (Technical)
Environmental Health $20,000 On-Going Waste Reduction Efforts
Event Department $35,000 Permanent Seasonal Staff Support for Administrative Functions
TOTAL GENERAL FUND $1,128,500 1.8% increase to Overall Budget
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2016 Supplementals
Dept / Fund Request Purpose
Parks and Open Space $102,350 Competitive Wage Adjustments for Seasonal Staff (plus Compression)
Transportation $50,000 Transportation Planning (Council Goal #1)
Transportation $254,000 Burlingame Winter Service Expansion
Transportation $190,000 Rubey Park Operational Costs
Transportation $10,000 WE-Cycle Operational Grant
Transportation $48,710 Transportation Technician (1.0 FTE)
Kids First $74,130 Quality Improvement Site Coach (1.0 FTE)
Water & Electric Utilities $66,020 One Year Extension for Special Projects Engineer
Water Utility $69,940 Water Distribution Operator II (1.0 FTE)
Parking Department $50,000 Traffic Reduction Goal (Council Goal #6)
Parking Department $37,180 Customer Service Officer (1.0 FTE)
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2016 Supplementals
Dept / Fund Request Purpose
Employee Housing Fund 127,500 Down Payment Assistance (Loan) for City Employees
Housing Administration Fund &
Benefitting Affordable Housing
Funds
($11,650)APCHA Re-Organization
TOTAL ALL OTHER FUNDS $1,068,180 Including 600 Funds
Adjustment for 600 Funds $2,400 Net Impact of Excluding 600 Funds
TOTAL FOR BUDGET RESOLUTION $1,070,580 1.7% Increases to Overall Budget
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2016 Proposed Budget
2015 Budget
2016 Before
Adjusting for 600
Funds
2016 Proposed
Budget $ Change % Change
Revenues $126,130,128 $119,706,893 $114,954,243 ($8,819,115)(7.1%)
Operating $61,420,620 $64,812,820 $60,984,700 $3,481,620 5.8%
Capital Outlay $27,458,330 $27,304,480 $2,199,130 ($1,848,080)(6.7%)
Debt Service $5,469,740 $5.393.940 $5,393,940 ($75,800)(1.4%)
Net Appropriations $94,348,690 $97,511,240 $94,124,870 $1,557,740 1.7%
Interfund Transfers $31,241,680 $20,942,650 $19,562,500 ($11,211,780)(36.4%)
Total Appropriations $125,590,370 $118,453,890 $113,687,370 ($9,654,040)(7.8%)
Ending Fund Balance $92,093,267 $103,938,824 $101,229,686 $11,325,206 12.6%
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*Added REMP to previous years for comparative purposes.
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Projected Fund Balance 12/31/2016
$101 Million
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Wheeler Opera House
Fund
$27,969,008
Targeted Reserve
Requirement
$27,558,313
Housing Development
Fund
$22,518,105
Transportation
$4,138,264
Kids First
$3,631,317
Employee Housing
$3,247,762
Parking
$2,859,363
General Fund
$2,066,852
All Others
$7,240,704
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General Fund
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•Share of County Sales Tax: 4.0% increase
•Property Tax: 100% to AMP in 2016
•Fees: 0.8% increase
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
2009 2010 2011 2012 2013 2014 2015 2016
ComDev and Engineering
Revenues Expenses
Fees
$13,078,650
GF
Overhead
$4,660,000
City Share of
2.0% County
Sales Tax
$8,560,000
Transfers
$1,131,800
Other Revenue
$459,000
Revenues = $27,889,450
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General Fund
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Labor
$17,242,900
Professional
Services
$4,273,530
Training/Dues
$497,270
IT Overhead /
Transfers
$4,368,900
Materials /
Supplies
$1,288,290
Supplementals
$1,128,550
Contributions
$1,297,180
Other
$83,550
0%
Uses = $30,180,170 •20% reduction from 2015 original budget
Due to one-time $12M transfer to AMP
•0.5% increase in operating excluding
transfers and supplementals
Labor Costs increased just 1.4%
Pro Challenge flat ($260K total)
Contributions increased 1.8%
IT Overhead decreased 10%
5.0% increase including supplementals
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Supplementals
Dept / Fund Request Purpose
City Council $4,500 Promote Locally Grown Food at Community Picnic
City Council $10,000 Establish a Training Budget for Citizen Staffed Boards
City Manager $8,000 Cost Escalation Associated with the Citizen Survey
City Manager $28,450 Temporary Staffing for Community Relations (Goal #5)
Human Resources $1,290 Temporary Staffing for Translator Services
Finance $226,000 Hosting Costs for New ERP System
Finance $25,000 Internal Control Auditing Services
Community Development $25,000 Updating Requirements Around Environmentally Sensitive Areas
Community Development $100,000 Update Transportation and Parking Requirements (Council Goals #1 & #6)
Community Development $25,000 Historic Property Inventorying
Community Development $50,000 Small Lodge Preservation –Energy Efficiency Program
Community Development $20,000 Small Lodge Preservation –Planning Assistance
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Supplementals
Dept / Fund Request Purpose
Community Development $90,000 Small Lodge Preservation –Expedited Building Permit Review Services
Community Development $25,000 Small Lodge Preservation –Building Code Assessment
Community Development $85,000 Temporary Staffing for Plans Review
Community Development $275,000 Files and Plan Sets Scanning Contract
Engineering $30,810 Increasing Administrative Coverage with Additional Part Time Staff Hours
Environmental Health $44,500 City of Aspen Share of Solid Waste Study (Technical)
Environmental Health $20,000 On-Going Waste Reduction Efforts
Event Department $35,000 Permanent Seasonal Staff Support for Administrative Functions
TOTAL GENERAL FUND $1,128,500 4.6% of 5.5% Increase to General Fund Budget
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General Fund
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Net Change to Fund Balance: ($2,290,720)
$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
$45,000,000
2013 2014 2015 Forecast 2016 2017 2018 2019 2020
Ending Balance Revenues Expenditures Reserve (25% of Uses)
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Asset Management Plan Fund
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•Transfers: $3,476,000 from General Fund
$3 million fund balance (one-time)
$476,000 from suspending transfers to the
EE Housing Fund (3 years)
•Property Tax: 2.9% (inflation + new growth)
100% share of total collections
•Other Revenues: 71% increase
Interest income growth & $75,000 grant
Property Tax
$6,564,000
Transfers from
General Fund
$3,476,000
Interest Earnings
& Other
Revenue
$323,600
Revenues = $10,363,600
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Asset Management Plan Fund
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•Aspen Police Department Bldg: $13,172,000
2015 Budget: $1,668,000
2016 Budget: $11,504,000
•Capital Outlay for Streets: $1,245,000
Street Paving and Repairs: $843,000
Curb and Gutter Replacement: $402,000
•General Fund Depts’ Fleet: $553,900
•LED Lighting (ARC): $150,000
•Castle Creek Ped. Improvements: $150,000
Aspen Police
Department
Building
$11,504,000
All Other
Capital Projects
$4,385,580
Property Tax
Collection Fees
$131,300
Uses = $16,020,880
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Asset Management Plan Fund
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Net Change to Fund Balance: ($5,567,280)
$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
$45,000,000
2013 2014 2015 Forecast 2016 2017 2018 2019 2020
Ending Balance Revenues Expenditures Reserve 12.5% of Uses
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Information Technology Fund
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•Revenues set to cover expenses
Fund Balance held level in out-years
•Base Operating proposed to decrease 2%
Labor costs increasing just 1.4%
Contract services decreasing 9.5%
•Capital Projects Include:
Annual Network Services: $65,000
Annual Website Development: $17,000
Labor
$603,740
GF Overhead
$110,000
Transfers,
Training &
Materials
$63,000
Professional
Services
$290,640
Capital
$82,000
Expenses = $1,149,380
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Information Technology Fund
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Net Change to Fund Balance: $27,400
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2013 2014 2015 Forecast 2016 2017 2018 2019 2020
Fund Balance Revenues Expenditures
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Debt Service Fund
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•Revenues: $3,702,260
ISIS Lease Payments / City Transfers
•Expenditures: $3,707,000
Sales Tax Revenue Bonds
Parks and Open Space
General Fund (AIG)
General Obligation Bonds
Isis Theater COPs
Parks & Open
Space
$3,014,390
General Fund
(AIG)
$93,110
ISIS COPs
$599,500
Expenditures = $3,707,000
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Citywide Debt (Projected 1/1/2016)
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Parks & Recreation
Bonds
$30,570,000
Energy
Efficiency Lease
Purchase
$262,487
Facility Bonds
$11,780,000
Housing
Bonds
$4,525,000
By Type = $47,137,487
General Fund
$262,487
Debt Service
Fund
$37,379,900
Golf Fund
$430,100
Electric Fund
$4,540,000
Marolt Fund
$785,000
Truscott Fund
$3,740,000
By Fund = $47,137,487
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Employee Housing Fund
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•Transfers from City Departments
$521,000 (excludes $476,000 from GF)
•Rental income forecast 2% above 2015
•Interest Income assumes 1% rate of return
Rental Income
$91,800
Transfers
$521,000
Interest
Income
$32,300
Revenues = $645,100
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Employee Housing Fund
37
•Fund Balance Increasing for Capital Projects
$200,000 for research and design
2017 includes possible development
•Operating Costs Increasing 6%
Staffing costs increases from promotions
Contract Services increasing due to shift
of radon testing from AMP to Ops
•Supplemental for down payment assistance
Operating
Expenses
$136,830
Capital Expenses
$293,000
Supplemental
$127,500
Expenditures = $557,330
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Employee Housing Fund
38
Net Change to Fund Balance: $87,770
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2013 2014 2015 Forecast 2016 2017 2018 2019 2020
Fund Balance Revenues Expenditures Reserve (12.5% of Uses)
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Employee Health Insurance Fund
39
•Maintaining Fund Balance of $2M
•Proposing to increase premiums by 5%
•Employee and Employer Share
Employee
Premiums
$700,500
Employer
Premiums
$3,828,000
Other Income
$325,000
Revenues = $4,853,500
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Employee Health Insurance Fund
40
•Overall Expenditure Increase of 5%
•Workforce growth
•Medical inflation
•Plan Administrator Change for 2016
•ACA Impact $28K
Preventative
Consulting
$75,000
Claims
Administration
$680,000
Plan Consulting
$44,000
Health Savings Acct.
Contributions
$185,000
ACA Fees
$28,000
Claims Paid
$4,150,000
Expenditures = $5,162,000
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