FY2019 Initial Budget Presentation August 13, 2018 The Budget - PowerPoint PPT Presentation

FY2019 Initial Budget Presentation August 13, 2018

The Budget Process 3. Council holds Public 1. The Mayor considers Hearings on the staff recommendations proposed Budget as he prepares his (08/ 27/ 18 Budget and 09/ 17/ 18) 2. The Mayor presents his Budget proposal to 4. Mayor and Council the City Council adopt a final Budget (08/ 13/ 18) (09/ 17/ 18) FY 2019 Budget Present at ion 2

Executive Summary S ix S trategic Goal Areas form basis of budget  Transportation, Recreation & Parks, Economic Development, Government Efficiency, Public S afety, and Quality of Life Examine operating expenditures and revenues  Close review of departmental expenditures to control growth and ensure balanced budget Continued use of Accruals  Updated data to ensure adequate levels for the future  Added new Equipment Accrual Five Themes throughout budget  Transparency, budget maturity, promise made – promise kept, reflecting true cost of service, year of stormwater FY 2019 Budget Present at ion 3

M AJOR B UDGET T HEMES

Five Major Budget Themes 1. Transparency  Detailing moves / shifts within the Budget  Detailing one-time and non-recurring expenditures 2. Budget Maturity  Adding Equipment Accrual  S hifting Repairs and Maintenance out of Operations 3. Promise Made / Promise Kept  Fire S tation #64 Construction  Abbotts Bridge S ound Abatement FY 2019 Budget Present at ion 5

Five Themes with Budget 4. Reflecting True Cost of Service  Adj usting based on known costs  Meeting defined service level expectations 5. Year of Stormwater  Inventory / Assessment of S ystem  End Y ear with a long term maintenance plan and options for funding mechanisms FY 2019 Budget Present at ion 6

G ENERAL F UND : S Y O VER UMMAR VIEW FY 2019 Budget Present at ion

Total Amount Collected/ Budgeted (in millions) General Fund Revenue Trends (‘ 16-‘ 19) $10.0 $15.0 $20.0 $25.0 $30.0 $5.0 $- 20.0 20.2 20.0 20.9 15.2 5.9 17.3 18.4 4.8 5.1 4.8 5.1 2.5 2.5 2.2 2.3 1.7 1.8 1.8 1.8 1.3 1.4 1.3 1.2 1.1 1.1 1.1 1.0 0.8 0.8 0.8 0.8 0.9 0.6 0.7 0.8 0.7 0.7 0.7 0.7 4.9 28.1 3.7 3.7 0 0 0.7 3.3 FY 2019 Proposed FY 2018 Revised FY 2017 FY 2016

General Fund Revenue: $59,963,891 Real Property Prior Year, 1% Property Taxes Current Year Insurance Premium Tax, 9% 30% Electric Franchise Fees, 4% Business & Occupation Tax, 3% Municipal Court Local Option Fees, 2% Sales Tax Television Cable … 35% Alcohol Beverage Excise, 1% Building Residential, 1% Gas Franchise Fees, 1% FY 2019 Budget Present at ion 9 All Other Revenues, 6%

Top 10 Revenue Comparison (‘ 18 to ‘ 19) $60 Use of Reserves: $3.3 All Ot her Revenues:$3.7 Use of Reserves: $0.7 Gas Franchise Fees: $0.7 All Ot her Revenues:$3.7 Building Resident ial: $0.8 Alcohol Beverage Excise:$0.8 Gas Franchise Fees: $0.7 $50 Television Cable Franchise … Building Resident ial: $0.7 Municipal Court Fees: $1.2 Alcohol Beverage Excise:$0.8 Television Cable Franchise … Business & Occupat ion Tax: $1.8 Municipal Court Fees: $1.3 Elect ric Franchise Fees: $2.3 Business & Occupat ion Tax: $1.8 Elect ric Franchise Fees: $2.2 Insurance Premium Tax:$5.1 Total Revenue Amount $40 Insurance Premium Tax:$4.8 Propert y Taxes (Prior Year): $0.7 Propert y Taxes (Prior Year): $0.6 (in millions) Property Taxes Property Taxes $30 (Current Year): (Current Year): $17.7 $16.7 $20 Local Option Local Option Sales Tax: Sales Tax: $10 $20.9 $20.0 $0 FY 2018 Revised FY 2019 Proposed FY 2019 Budget Present at ion

Revenue Variance Analysis (‘ 18 to ‘ 19) 77.9% 80.0% 70.0% 60.0% ears 50.0% Change between Fiscal Y 40.0% 30.0% 18.6% 20.0% 11.4% 10.0% 5.9% 5.6% 4.3% 4.3% 1.8% % 0.7% 0.0% 0.0% -0.9% -10.0% -7.3% -7.4% -20.0% Propert y Propert y Business Televisio Local Insurance Elect ric Municipal Alcohol Building Gas Taxes Taxes & n Cable All Other Use of Opt ion Premium Franchise Court Beverage Resident i Franchise (Current (Prior Occupat i Franchise Revenues Reserves S ales Tax Tax Fees Fees Excise al Fees Year) Year) on Tax Fees 11 FY18 t o FY19 Variance 4.3% 5.6% 18.6% 5.9% 4.3% 0.0% -7.4% -7.3% 1.8% 11.4% 0.7% -0.9% 77.9%

Revenue Trends (‘ 17 to ‘ 19) $70 $0.0 $4.0 $1.2 $60 $1.7 $2.3 $3.3 Use of Reserves $3.7 $5.1 $0.7 $28.1 All Ot her Revenues $3.7 $50 Gas Franchise Fees $1.2 $1.8 $1.3 Building Residential $2.3 Total Revenue Amount $13.4 $1.8 $2.2 $5.1 Alcohol Beverage Excise $40 (in millions) $4.8 $0.7 Television Cable Franchise Fees $0.6 $1.4 $1.8 Municipal Court Fees $2.5 $30 Business & Occupation Tax $17.7 $17.7 $5.1 $16.7 Elect ric Franchise Fees $2.0 Insurance Premium Tax $3.9 $20 Property Taxes (Prior Year) Property Taxes (Current Year) $20.9 $20.9 Local Option S ales Tax $20.2 $20.0 $10 12 $0 FY 2017 FY 2018 Revised FY 2018 Annualized FY 2019 Proposed

General Fund Expenditures E911 Supplement, 0.2% Capital Projects Fund, Base Operations 9.0% Operations 26.2% Infrastructure Maintenance Accrual, 14.2% Equipment Accrual, 1.2% Vehicle Replacement Accrual, Base Operations 1.7% Personnel Positions and Associated 43.3% Vehicles/Equipment, 0.7% City Hall Debt Service, 3.4% FY 2019 Budget Present at ion 13

Expenditure Comparison (‘ 18 to ‘ 19) $60 Base Operations - Base Operations, $50 Operations - $15.7 Operations, Total Expenditure Amount $18.6 $40 Base (in millions) Operations Base $30 - Personnel: Operations $26.0 - Personnel: Posit ions and Associat ed … $20 $25.4 City Hall Debt Service, $2.0 Vehicle Replacement Accrual, $1.0 Equipment Accrual, $0.7 Infrastructure Maintenance Vehicle Replacement Accrual, … $10 Accrual: $8.5 Infrastructure Maintenance Accrual: $6.6 Capital Projects Fund, $5.5 Capital Projects Fund, $2.9 FY 2019 Budget Present at ion E911 S upplement , $0.1 E911 S upplement , $0.1 $0 Expenditure Categories by Fiscal Year

Expenditure Variance Analysis (‘ 18 to ‘ 19) 100.0% 100.0% 95.0% 72.2% 75.0% ears Change between Fiscal Y 55.0% 46.6% 35.0% 22.6% 15.0% 2.3% 1.5% % 0.0% -5.0% -18.3% -25.0% Posit ions and Infrastructure Vehicle Base Base E911 Capit al Equipment Associat ed Cit y Hall Debt Maint enance Replacement Operat ions - Operat ions - S upplement Proj ect s Fund Accrual Vehicles/ Equi S ervice Accrual Accrual Personnel Operat ions 15 pment FY18 t o FY19 Variance 0.0% 46.6% 22.6% 100.0% 1.5% 100.0% 72.2% 2.3% -18.3%

Expenditure Trend (‘ 16 – ’ 19) $80.0 $70.0 $19.4 $60.0 $20.2 Total Expenditure Amount Base Operat ions - Operat ions $15.7 $50.0 Base Operat ions - Personnel $21.9 (in milions) $18.6 Cit y Hall Debt S ervice Posit ions and Associated Vehicles/ Equipment $40.0 $22.6 Vehicle Replacement Accrual $1.7 Equipment Accrual $26.0 $7.6 $30.0 Infrast ruct ure Maint enance Accrual $25.4 Capital Proj ect s Fund $20.0 E911 S upplement $2.0 $0.4 $1.0 $26.4 $0.7 $10.0 $1.0 $8.5 $6.6 $5.5 $2.9 $0.5 $0.4 $- $0.1 $0.1 FY 2019 Budget Present at ion 16 Actuals Revised Proposed FY 2016 FY 2017 FY 2018 FY 2019

G ENERAL F UND : B AS E O PERATIONS O VER VIEW FY 2019 Budget Present at ion

Base Operations City Manager City Council City Clerk Communications Community 3% 1% 1% 1% Development Parks 5% 5% Facilities 4% Public Works 14% Finance 3% Fire Police 26% 26% Municipal Legal Court IT/GIS Human Resources 2% 5% 1% 3% 18

Total Expenditure Amount (in millions) FY 2019 Budget Present at ion Dept. Expenditures Trends (‘ 16-‘ 19) $10.0 $12.0 $2.0 $4.0 $6.0 $8.0 $- 0.6 0.4 0.7 0.4 0.3 0.3 0.4 0.3 1.2 1.3 1.2 1.1 0.7 0.5 0.6 0.6 2.7 2.4 2.4 2.2 1.7 1.9 1.5 1.5 1.1 1.0 1.3 1.3 $10.5 11.2 11.2 11.0 0.6 0.8 1.0 1.1 2.1 1.9 2.0 1.9 0.3 0.3 0.5 0.4 0.6 0.6 0.7 0.7 9.4 9.8 11.0 11.0 7.3 8.2 7.3 6.0 2.1 2.2 2.3 2.0 19 FY 2019 Proposed FY 2018 Revised FY 2017 FY 2016

Personnel v. Operations (‘ 16 to ’ 19) 30.0 Clerk 25.0 CM CM Comm Dev Council Comm Dev Facilit ies CM CM Facilit ies Finance Finance CM Comm Dev Facilit ies Comm 20.0 Comm Dev CM Finance Total Expenditure Amount Facilit ies CM Finance Comm Dev Comm Dev CM Comm Dev Comm Dev Court (in millions) Facilit ies Fire Fire Facilit ies CM Finance Facilities 15.0 Facilit ies Finance Comm Dev Fire Fire Finance Fire Fire Finance Fire HR Facilit ies HR IT/GIS Finance HR IT/GIS Fire Fire IT/GIS HR Police HR HR HR Police IT/GIS IT/GIS 10.0 IT/GIS Police HR HR IT/GIS IT/GIS IT/GIS Police Legal PW PW PW Police Police 5.0 Police PW Police Police PW Rec & Parks Rec & Parks Rec & Parks Rec & Parks Rec & Parks PW PW PW PW - Persons Ops Persons Ops Persons Ops Persons Ops 20 FY 2016 FY 2017 FY 2018 Revised FY 2019 Proposed

Personnel Costs Changes (‘ 16 to ‘ 19) $26.0 $25.4 $25.0 $22.6 $21.9 $20.0 Total Expenditures (in millions) $15.0 $10.0 $5.0 $- FY 2016 FY 2017 FY 2018 Revised FY 2019 Proposed FY 2018 Budget Book Present at ion 21