2020 City Manager’s Budget Proposal Presentation to Geneva City Council September 11, 2019
Budget Calendar • Pre-Budget Work Session July 24 • Council Interactions August • Budget Presentation September 11 • Resolution Est. Public Hearing September 11 • Work Session September 25 • Public Hearing October 2 • Work Session/Adoption October 9 • Work Session/Adoption October 23 • Adoption if Needed October 30 • Effective January 1, 2020
Budget Goals • Continue conservative forecasting • Holding property tax rate steady • Modest increase water and sewer fund rates to rebalance funds with decreased demand • Preserve all three fund balances • Align services to align with reduction in resources, while providing good value for essential services • Prioritize projects that align with the Comp Plan
Achieving our Vision Committed to Prioritizing projects that align with our Community’s Comprehensive Plan Adopted by City Council in 2016.
Growing the TBL Commitment Balancing Providing Being Socially Economic Responsible Department requests to Value holistically provide Programs and Services that forward Reducing Our Strengthen Values, Environmental Footprint Align with Guiding Principles, and Key Initiatives Being a Triple Bottom Line Organization (TBL) Activates Comp Plan’s Guiding Principles Across All Departments and Staff
Growing the TBL Commitment
Budget Realities • Conservative forecasting project modest revenue growth • Fixed costs continue to increase • Every department and every fund experienced cuts • Alternative strategies or future expenditures plans being pursued
General Fund Overview 2020 General Fund Proposed Budget
2020 General Fund Deficit Timeline • Balance @ 7/24/19 - $(1,132,009) • Balance @ 7/29/19 - $(766,860) • Balance @ 8/8/19 - $(420,436) • Balance @ 8/12/19 - $(174,576) • Balance @ 8/19/19 - $(114,026) • Balance @ 8/27/19 - $(25,785) • Balance @ 8/28/19 - $0
General Fund Overview • Balanced at $17,729,856 – Up $300,109 in spending from 2019 • No property tax rate increase – Remains at $17.23526/$1,000
General Fund Overview • State Aid remains the same – Remains at $2,027,613 • Sales Tax increased by $183,654 – Continued growth in 2019
General Fund Overview • Water/Sewer Transfer increased by $114,239 due to annual growth in salaries & benefits and added staff to be allocated • Many equipment purchases to be funded through Equipment Reserve – Total of $296,348 – Long term interest savings
General Fund Overview • Debt Service decreased by $191,989 – Due to significant debt roll off in 2020 – Will see relief on debt service expenses continuing in 2020 and beyond.
General Fund Overview • Percentages of Total Revenue – Debt 15.13% – Personnel 67.88% – Total 83.01%
General Fund Balance • Fund Balance: $2,940,746 (as of 1/1/19) • 2020 Proposed Budget: $17,729,856 • Percentage: 16.59%
Water Fund Overview 2020 Water Fund Proposed Budget
Water Fund Deficit Timeline • Balance @ 7/24/19 - $(302,666) • Balance @ 7/29/19 - $(186,666) • Balance @ 8/8/19 - $(304,355) • Balance @ 8/12/19 - $(420,355) • Balance @ 8/19/19 - $(221,005) • Balance @ 8/27/19 - $(252,810) • Balance @ 8/28/19 - $0
Water Fund • Balanced at $4,214,576 – Down $65,741 in spending from 2019 • Proposed water rate increase of 8.5% to make up for decreased consumption and increasing maintenance costs.
Water Fund • Debt Service expenses decreased $43,169 from 2019. – Due to significant debt roll off in 2020 – Will see relief on debt service expenses continuing in 2020 and beyond.
Water Fund • Equipment reserve in the water fund will support $175,000 of new equipment for 2020. – Reserve balance of $245,258 after 2020 scheduled draw.
Water Fund • Percentages of Total Revenue – Debt 35.48% – Personnel 31.61% – Total 67.08%
Water Fund Balance • Fund Balance: $1,036,240 (as of 1/1/19) • 2020 Budget: $4,214,576 • Percentage: 24.59%
Sewer Fund Overview 2020 Sewer Fund Proposed Budget
Sewer Fund Deficit Timeline • Balance @ 7/24/19 - $(427,292) • Balance @ 7/29/19 - $(142,292) • Balance @ 8/8/19 - $(29,124) • Balance @ 8/12/19 - $(314,124) • Balance @ 8/19/19 - $(92,623) • Balance @ 8/27/19 - $0
Sewer Fund • Balanced at $5,081,533 – Down $422,784 in spending from 2019 • Proposed sewer rate increase of 5.7% to make up for decreased consumption and increasing maintenance costs.
Sewer Fund • Debt Service expenses decreased $83,541 from 2019. – Due to significant debt roll off in 2020 – Will see relief on debt service expenses continuing in 2020 and beyond.
Sewer Fund • Equipment costs were temporarily put on hold to try to recover from a shrinking fund balance. – No scheduled draws from equipment reserve for sewer in 2020. – Decrease of $238,267 from 2019.
Sewer Fund • Percentages of Total Revenue – Debt 39.31% – Personnel 33.55% – Total 72.87%
Sewer Fund Balance • Fund Balance: $1,239,577 (as of 1/1/19) • 2019 Budget: $5,081,533 • Percentage: 24.39%
Capital Plan Overview 2020 Capital Plan
2020 Projects Project Cost Lafayette Ave Rehab $2,750,000 WTP Main Transformer $270,000 Street Resurfacing $275,000 Parks Master Plan Improvements $175,000___ Total: $3,470,000
2020 Project Funding Funding Source Amount State Funding/Grants $275,000 Bonded Indebtedness $3,195,000 General: $1,275,000 Water: $957,500 Sewer: $962,500 Total Capital Plan Funding $3,470,000
Add’l Budget Items 2020 Workers’ Comp & Tax Cap
Workers’ Compensation • In 2013, Ontario County made the levy of taxes associated with workers’ compensation costs the responsibility of the host jurisdiction. • The levy required to do this for 2020 is $394,923, a $54,272 increase from 2019. • This will result in an increase of the workers’ compensation rate of 13 cents per $1,000 of assessed value.
Tax Cap Impact • The State of New York provides a formula for calculation of allowable increases to the property tax levy. • Current projections indicate that the proposed levy will not exceed the statutory cap. However, due to the heavy penalties associated with violations, staff recommends a precautionary override. • This will be presented by separate local law, requiring a 2/3 vote of City Council.
Future Revenue Potential
Cultivating Future Revenue • Real Estate Market Growth • Smaller Infill Potential • Development Opportunities • Geneva Food and Beverage Industry Consortium • Public-Private/Interagency Partnerships • Waste Water Treatment Plant Potential • Finger Lakes Economic Development Regional Council and State Project Support
Cultivating Future Revenue 2008 Buki Neighborhood Study Findings • Real Estate Market Growth 6% growth in last several years 2020 Revaluation takes effect in 2021 with values expected to grow • Smaller Infill Potential
Cultivating Future Revenue • Geneva Food and Beverage Industry Consortium Partnership with Cornell AgriTech’s Center of Excellence in Food and Agriculture
Cultivating Future Revenue • Development Opportunities
Cultivating Future Revenue • Public-Private/Interagency Partnerships • Waste Water Treatment Plant Potential • Finger Lakes Economic Development Regional Council and State Project Support
Mindful Compromises
Mindful Compromises • Capital Fund – Postponed one project from each fund for 2020 • Police Department – Personnel and some equipment requests were not funded for 2020 • Fire Department – Ladder truck postponed until 2021 - Uniquely Urban -
Mindful Compromises • Lakefront Maintenance – Continuing with our temporary solution for maintenance but it is not sustainable once DRI projects are complete • Recreation Department – No summer recreation in 2020 – Leaving one position frozen for 2020 • Partner Agencies – Recommended funding $29,900 less than 2019 - Uniquely Urban -
Mindful Compromises • Office of Neighborhood Initiatives – New name • Office of Community, Economic and Neighborhood Vitality – City Manager to manage the department for another year – Director position expected to be proposed in 2021 - Uniquely Urban -
Priority Project Highlights
Celebrating Successes • Staff managing over a dozen investment projects • Approx. $10.5 million in State grants, $9 million in City investment, over $1.5 million in private Photo by Kevin Colton • Downtown and lakefront core focus • Review of project 2019 project highlights and 2020 action to come
Celebrating Successes • Police Department – Body cameras and Implicit Bias Trainings • City Hall Accessibility project • LED Street Light Conversation • Downtown Revitalization Initiative projects
Celebrating Successes • Food Access efforts • Marina and public beach projects • Ridgewood Park and Ice Rink • Grant application for East Lakeview access to the lakefront and increased recreational trails • Grant award to focus on zombie properties • Pilot project with Geneva 2030 and Geneva Resiliency Center
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