City Manager’s Proposed Budget David Gaines Finance Director August 20, 2019 August 20, 2019 - ID19-1930
Objective • Budget Calendar • Proposed Budget Changes • General Fund Forecast • Supplemental Packages • Next Steps August 20, 2019 - ID19-1930
Key Budget Dates General Fund Five Year Forecast Presentation, Departmental Presentations ✓ June 18, 2019 Departmental Presentations ✓ June 25, 2019 2 nd General Fund Five Year Forecast Discussion, Departmental Presentations ✓ July 16, 2019 Departmental Presentations ✓ July 23, 2019 Final Certified Value Received ✓ July 24, 2019 1 st Budget Workshop – City Manager’s Proposed Budget Submitted to Council ✓ August 1, 2019 2 nd Budget Workshop ✓ August 13, 2019 3 rd Budget Workshop/1 st Public Hearing on Tax Rate • August 20, 2019 2 nd Public Hearing on Tax Rate & Public Hearing on Budget • September 10, 2019 Council Adopts Budget • September 17, 2019 August 20, 2019 - ID19-1930
Development Fee Increase/Effective Tax Rate Changes to Proposed Budget • Increased Development Service Fee Revenue $2.8 Million • Reduce Property Tax Rate to Effective Rate • Funded Development Fee Grant or Other Assistance an Additional $150,000 • Decreased Engineering Services Transfer $500,000 due to Engineering Review Fee changes • Increased Meet and Confer Allocation $60,000 ($510,000 total) • Increased City Council Contingency Budget from $1,600 to $1,700 August 20, 2019 - ID19-1930
Development Fee Increase/Effective Tax Rate Changes to Proposed Budget • Update Barrier Funds-Housing in Tier 1 to Housing/Rapid Re-Housing, increased funding from $50,000 to $100,000 • Funded Public Safety Technology $172,500 • Funded 2030 Comprehensive Plan Update $95,000 • Funded Tier 4 Supplemental Items • Permitting and Planning Software maintenance $300,000 • Our Daily Bread Security $15,000 • Funded Recreation Capital Replacements $150,000 • Funded Animal Services Officers and Volunteer Coordinator Positions $210,242 • Additional Traffic Operations FTE’s - $151,559 August 20, 2019 - ID19-1930
The community has lost critical funding for Rapid Rehousing programs that provide housing assistance necessary for shelters to move people from homeless to housed. DISCUSSION: Dedicate funds to Rapid Rehousing $50,000 CURRENT SUPPLEMENTAL $50,000 ADDITIONAL REQUEST CONCEPT: • Funding direct to MKOC, TSA shelters and ODB (also DCFOF). • Leverage other successful resources: o Housing Navigator o Barriers Funding • Track Housing Outcomes Image (modified) www.FocusStrategies.net
Property Values and Tax Rate Proposed Tax Rate Maintenance & Operation $0.385364 / $100 Debt Service $0.205090 / $100 Total Proposed Tax Rate $0.590454/ $100 Effective Tax Rate $0.590454 / $100 Rollback Tax Rate (Current 8%) $0.633033/ $100 Future “Rollback Tax Rate” (Future 3.5%) $0.610501 / $100 (Beginning in FY2021 For Reference Only) Certified Taxable Value* $12,620,560,528 Freeze Adjusted Certified Taxable Value* $12,620,560,528 Value Increase 11.52% Value Increase 11.3% * Excluding TIRZ Values August 20, 2019 - ID19-1930
General Fund Forecast – Development Fee Increase/Effective Tax Rate FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-2022 FY 2022-23 FY 2023-2024 Budget Estimate Proposed Projected Projected Projected Projected Beginning Fund Balance $ 30,317,385 $ 30,317,385 $ 30,135,495 $ 30,196,334 $ 30,172,956 $ 29,999,320 $ 30,401,716 $ 46,259,982 $ 46,259,982 $ 48,711,580 $ 50,377,760 $ 51,940,816 $ 53,504,406 $ 55,068,551 Property Tax 41,425,582 37,953,567 39,281,942 40,656,810 42,079,798 43,552,591 45,076,932 Sales Tax 40,015,741 41,492,342 48,324,603 48,122,504 49,424,283 50,964,842 52,668,747 Other Revenues $ 127,701,305 $ 125,705,891 $ 136,318,125 $ 139,157,074 $ 143,444,897 $ 148,021,839 $ 152,814,230 Total Revenue $ 129,184,436 $ 125,435,880 $ 130,754,458 $ 138,380,452 $ 143,618,533 $ 147,619,443 $ 151,995,275 Base Expenditures* $ 5,128,343 $ 800,000 New Recurring Expenses $ 451,901 $ 374,485 New One-Time Expenses $ 129,184,436 $ 125,887,781 $ 136,257,286 $ 139,180,452 $ 143,618,533 $ 147,619,443 $ 151,995,275 Total Expenditures Ending Fund Balance $ 28,834,254 $ 30,135,495 $ 30,196,334 $ 30,172,956 $ 29,999,320 $ 30,401,716 $ 31,220,671 Change in Fund Balance $ (1,483,131) $ (181,890) $ 60,839 $ (23,378) $ (173,636) $ 402,396 $ 818,955 Fund Balance as % of Total Expenditures 22.32% 23.94% 22.16% 21.68% 20.89% 20.59% 20.54% August 20, 2019 - ID19-1930
Supplemental Package Summary Tier 1 General Fund Tier 2 Tier 3 • Supplemental packages have been grouped into tiers ranging from 1-5. Tier 4 • $374,485 one-time Cost, $4,806,129 on-going cost Tier 5 • Tiers 1-3 and a portion of Tier 4 included in this option Increase Above *Average One-Time Recurring Tier Total Total Cost Effective Rate Annual Tax Cost Cost Increase Tier 1 $.00 $0 $80,000 $1,348,100 $1,428,100 $1,428,100 Tier 2 $.00 $0 $53,684 $1,184,034 $1,237,718 $2,665,818 Tier 3 $.00 $0 $145,801 $1,597,197 $1,742,998 $4,408,816 Tier 4 Funded $.00 $0 $95,000 $676,798 $771,798 $5,180,614 Tier 4 Un-Funded $.005 $12.50 $134,922 $306,347 $441,269 $5,621,882 Tier 5 $.015 $37.50 $182,650 $1,047,490 $1,230,140 $6,852,022 * Cumulative August 20, 2019 - ID19-1930
Supplemental Package Detail General Fund – Option 2 Tier Supplemental Package Title Integrated Pest Street Co-Sponsorship Homelessness Street Outreach Tier 1 Management Outreach Events Initiatives Team Program Sworn Officers Meet and Construction Temporary Fire Develop. Civilian Tier 2 Confer Guide Kennel Program Jailers Technicians New Public Dispatcher Public Safety Tech. Service Special Council Park Overdue AP Comprehensive Tier 3 Safety Overtime Officers Public Safety Internal Audit Maintenance Fines Automation Plan Update Employees Permitting and Animal Animal Control Our Daily Bread New Traffic Tier 4 Planning Services Officers Security Employees Funded Software Volunteer Coordinator Tier 4 Internal Service Walkability Public New Traffic Fund Request Study Engagement Employee Un-Funded Platform Closed Community Air Quality Paid Parental Non-Profit Fee Veteran’s Living Tier 5 Captioning Market Sensors Leave Grant Program Village Park Wage Funding Site Impact August 20, 2019 - ID19-1930
Average Taxable Value - History Fiscal Year Operations Rate Debt Rate Total Rate Average Taxable Value Average Tax Bill 2020 $0.385364 $0.20509 $0.59045 $248,909 $1,470 2019 $0.40543 $0.21505 $0.62048 $233,165 $1,447 2018 $0.43031 $0.20755 $0.63786 $214,136 $1,366 2017 $0.46674 $0.21660 $0.68334 $197,379 $1,349 2016 $0.47456 $0.21519 $0.68975 $179,149 $1,236 2015 $0.48119 $0.20856 $0.68975 $166,728 $1,150 2014 $0.47480 $0.21495 $0.68975 $157,039 $1,083 2013 $0.47088 $0.21887 $0.68975 $154,354 $1,065 2012 $0.47088 $0.21887 $0.68975 $154,282 $1,064 2011 $0.47088 $0.21887 $0.68975 $153,160 $1,056 August 20, 2019 - ID19-1930
Property Tax Rate History $0.80000 $0.70000 $0.60000 $0.50000 TOTAL TAX RATE $0.40000 $0.30000 $0.20000 $0.10000 $0.00000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Operations Rate $0.47088 $0.47088 $0.47088 $0.47480 $0.48119 $0.47456 $0.46674 $0.43031 $0.40543 $0.38536 Debt Rate $0.21887 $0.21887 $0.21887 $0.21495 $0.20856 $0.21519 $0.21660 $0.20755 $0.21505 $0.20509 Total Rate $0.68975 $0.68975 $0.68975 $0.68975 $0.68975 $0.68975 $0.68334 $0.63786 $0.62048 $0.59045 August 20, 2019 - ID19-1930
Next Steps • Public Hearings – August 20 th and September 10 th • Development Services Cost of Service Study – August 20 th • Budget Discussions – All work sessions through September 17 th • Budget Adoption – September 17 th • Tax Rate Vote – 2/3 Vote (5 of 7) • Budget Vote – Majority August 20, 2019 - ID19-1930
August 20, 2019 - ID19-1930
Living Wage Adjustment Employment Type Count Difference at $15/hr Difference at $20/hr Full Time 214 $14,099 $1,106,606 Part Time 31 $7,645 $204,242 3/4 Time 1 $0 $3,294 Seasonal 401 $610,466 $1,511,357 Temporary 3 $0 $10,507 Grand Total 650 $632,210 $2,836,006 August 20, 2019 - ID19-1930
Supplemental Funding Requests - Funded in FY 2019-20 2019-20 Personnel On-Going One-Time Requested Revenue/Cost Department Tier Program Title FTEs Services Costs Costs Expense Amount Offset Net Cost Tier #1 Integrated Pest Management - Topdressing (Parks) Council Initiative 1 $ 461,100 $ 461,100 $ 461,100 Block Party - Street Closures (Parks) Council Initiative 1 $ 2,400 $ 2,400 $ 2,400 Creation of Co-Sponsorship Special Event Fund (Parks) Council Initiative 1 $ 280,000 $ 280,000 $ 280,000 Barrier Funds - Diversion Council Initiative 1 $ 40,000 $ 40,000 $ 40,000 Housing/Rapid Re-Housing Council Initiative 1 $ 100,000 $ 100,000 $ 100,000 Expand & Enhance MKOC Shelter (7 nights/week) Council Initiative 1 $ 400,000 $ 80,000 $ 480,000 $ 480,000 Council Initiative 1 Street Outreach Team Expansion $ 64,600 $ 64,600 $ 64,600 Total $ 1,348,100 $ 80,000 $ 1,428,100 $ - $ 1,428,100 August 20, 2019 - ID19-1930
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