Presentation of Proposed Budget ◦ Budget Overview Requirements, Format, Funds, Process ◦ Citywide Goals & Priorities ◦ Capital Projects / Purchases ◦ Operating Budget Overview ◦ Community Funding ◦ Revenue Assumptions ◦ Status of Fund Reserves ◦ Contingency Planning ◦ Next steps
Colorado Revised Statutes requirements: Submit an estimated budget on or before October 15 Budget format and content: By fund & spending agency ◦ Sources of revenue & object of expenditures ◦ Compare to prior completed fiscal year, current fiscal year (est.) ◦ Fund balances (est.) at beginning & end of year ◦ Written “budget message” ◦ Lease-purchase disclosure ◦ Notice of Budget Budget Hearing, Adoption, Appropriate of Funds Certified copy filed with the State of Colorado Supplemental budget amendment & appropriation
Separate funds – different revenue sources and expenditures ◦ Government funds – tax revenue used for public services ◦ Proprietary funds (Enterprise funds) – fees charged to specific users Salida has four separate funds, five separate budgets ◦ General Fund ◦ SteamPlant Enterprise Fund ◦ Water Activity Enterprise Fund Water Operations Sewer Operations ◦ Conservation Trust Fund (CTF) Separate with some city-wide costs allocated to multiple funds
Funding Sources / Uses of Each Fund: General Fund – tax revenue used for general government services; partial cost recovery for certain user-based services Enterprise Funds – user fees for the services provided (goal is to be self-sustaining; like a business) Conservation Trust Fund – state lottery proceeds (distributed based on population) for parks / recreation / open space
"Revenue" means all resources available to finance expenditures "Expenditure" means any use of financial resources of the local government consistent with its basis of accounting for budget purposes for the provision or acquisition of goods and services for operations, debt service, capital outlay, transfers, or other financial uses If expenditures exceed current revenues, this requires the use of reserves or financing
Internal Process: Continual process – projects and goals discussed throughout the year in work sessions, public meetings Website post and “City News” column announce the “official” beginning of the annual budget process City Administrator and Finance Director meet with Department Heads before taking requests to the council ◦ Alternatives considered ◦ Timing, readiness of projects ◦ Prioritization Staff obtains direction from city council in the budget work sessions before completing the first draft
Internal Process, continued: All work sessions with council are noticed and the public is invited After presenting the proposed budget, a Notice of Budget is published in the Mountain Mail and Public Hearing date set A copy of the proposed budget is made available at City Hall and on the website Additional budget work sessions may follow Budget Hearing Fee schedules, pay plan update adopted Adopted by Council before end of the year
Budget directs resources to achieve goals and priorities set by the council Public input 2015 Goals: ◦ Maintain and improve Salida’s existing assets ◦ Do it right and make it last ◦ Increase pride in the community and confidence in local government ◦ Invest in employees ◦ Practice fiscal responsibility and manage debt responsibly while performing city services effectively and efficiently
Services Provided: Administrative – general government, liquor and marijuana licensing, birth and death certificates, municipal court, intergovernmental facility management, water & wastewater operations Community Development – land use and zoning, planning improvements, historic preservation Police – 24/7 crime prevention & law enforcement Fire – 24/7 emergency & fire response & prevention Public Works – operation, maintenance and improvements of all City infrastructure including parks and trails (tracked separately) Arts & Recreation – swimming pool, recreation programs, event center Other – airport, community funding program, etc. Water Treatment and Delivery Wastewater Collection and Treatment
Proposed budget includes $14.6 million in expenditures. Total “normal” annual budget is ~ $10 to 11 million. Again in 2015, we will exceed this level due to the timing of major capital projects (with significant grant funding) in the water and wastewater enterprise fund, as well as the general fund.
$ 7.2 million total (49% of total spending) $1.8 million projected from grants and contributions ◦ Grant secured for river trail ($500k), water treatment plant ($253k in 2015) and water line to wastewater plant ($430k in 2015) ◦ Grant applications pending for Scout Hut ($200K), outdoor soaking pools ($200k) and Kissell restoration ($72k) ◦ Donations for Kissel restoration, tennis courts, dog park timed locks and sound barrier Restricted funds – in addition to “normal” use of restricted sales tax revenue for general fund projects, the capital budget includes the use of some PEG fees and fees in lieu of open space Use of reserves - $1.5 million total
General Fund - $3.6 million Largest area of spending is streets -$1,134,800 Use of city funds for sidewalks - $130,000 Planned projects: ◦ H Street completion ◦ Slurry Seal N Street Nicholls Street 8th Street E Street Dodge ◦ Rebuild – 14th (J to K) and two blocks of K Streets Pool / Recreation projects – $585,600 Parks & trails projects - $363,300
Water System - $1.46 million Water treatment plant (final phase) H Street water mains Fire hydrant replacements Replacement pickup truck Design of disinfection compliance monitoring improvements Wastewater System – $1.04 million Placeholder for sewer line replacements (pending report from video camera project) Water line to plant Replacement pickup truck
Total Debt Reduction (all funds) - $677,000 Debt Service (P&I) – 8.6% of total revenue Debt Balances Remaining at end of 2015: ◦ General Fund - $1.4 million ◦ Water Fund - $2.5 million ◦ Wastewater Fund - $11.5 million Total Cash Balances at projected at $4.5 million at the end of 2015 after using some reserves for capital – 62% of operating revenue Debt agreements restrict the use of over $900,000 of the water and sewer reserves
Personnel Costs – most significant category of operating expenditures ◦ $3.7 million in compensation plus $1.3 million in taxes and benefits ◦ New full time position – Civil Engineer / Project Manager ◦ Two positions changing from part to full time ◦ 5% net increase in FTEs (hours worked) ◦ 3% COLA + 3% merit (except for management) and market adjustments for police, fire and public works staff ◦ Salary ranges in pay plan generally increasing by 3% COLA except at top and bottom; 4.5% at Level 2 and 1.9% at Level 3
Other Contracted Supplies & Operating Department Personnel Services Materials Utilities Costs Total Administration $ 399,400 $ 179,000 $ 7,500 $ 24,900 $ 180,700 $ 791,500 Community Development 184,200 16,400 2,100 100 14,700 $ 217,500 Police 1,288,200 196,000 59,800 28,800 31,200 $ 1,604,000 Fire Department 843,700 37,400 32,700 3,800 37,900 $ 955,500 Public Works 472,300 16,800 54,100 131,000 68,000 $ 742,200 Pool and Recreation 423,500 22,500 47,300 71,900 69,600 $ 634,800 Parks and Trails 183,500 2,300 19,000 49,500 20,500 $ 274,800 Other - 40,400 - 12,000 82,000 $ 134,400 Totals $ 3,794,800 $ 510,800 $ 222,500 $ 322,000 $ 504,600 $ 5,354,700 71% 10% 4% 6% 9% 100%
Net Operating Operating Cost Department Expense Revenue Expense Recovery Administration & General Government 791,500 38,000 753,500 5% Community Development 217,500 26,000 191,500 12% Police 1,604,000 75,000 1,529,000 5% Fire 955,500 85,000 870,500 9% Public Works 742,200 38,000 704,200 5% Recreation & Aquatic Center 634,800 435,600 199,200 69% Parks & Trails 274,800 - 274,800 0% Other 134,400 - 134,400 0% SteamPlant 349,400 261,000 88,400 75%
A record number of requests received (26) $93,599 in funds requested (more than 3x what is proposed for this funding round) Proposed budget of$30,000 ◦ $27,000 to be awarded now ◦ $3,000 to be reserved for fee waiver requests Objective to enhance city operations and enhance quality of life Staff committee evaluated requests and made recommendations for funding ◦ Needed support from more than one committee member ◦ Recommended amounts weighed for overall conclusion, as well as overall percentage support from city
Historical funding is as follows: ◦ 2007 – $750 ◦ 2008 – $5,750 ◦ 2009 – $22,785 ◦ 2010 – $10,000 ◦ 2011 – $16,863 ◦ 2012 – $52,147 ◦ 2013 – $61,629 ◦ 2014 – $62,000 (original budget) ◦ 2015 – $30,000 (proposed budget) Intent to “supplement municipal government operations…”
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