|
CITY COMMISSION AGENDA ITEM |
|
|
Department: |
City Manager’s Office |
Commission Meeting Date: July 10, 2018 |
||
|
Staff Contact: |
Casey Toomay, Assistant City Manager Danielle Buschkoetter, Strategic Projects Manager |
|||
|
Recommendations/Options/Action Requested: |
|
|||
|
Receive the 2019 Operating Budget and 2019-2023 Capital Improvement Plan revenue and expenditure updates and provide direction as appropriate. |
|
|||
|
Executive Summary: |
On June 12, 2018, the City Commission was presented the City Manager’s Recommended Budget which totaled $206,068,000. The budget as presented maintained the current mill levy rate and included moderate fee increases for water and sewer and stormwater.
Since that meeting, the City has received updated revenue figures and has made some modifications to expenditures. These adjustments have resulted in a net increase to the budget of $445,000 bringing the total budget to $206,513,000. A summary of adjustments is outlined below.
Revenue Adjustments Since the June 12, 2018 meeting, staff received assessed valuations from the County. The budget as presented June 12 assumed a 6% increase over 2018 and the actual assessed valuation was a 5.3% increase. This resulted in a net decrease totaling $223,000 across all three (3) property tax-supported funds.
Additionally, staff re-evaluated delinquency rates and updated them to align with prior year actuals and current trends. This change resulted in a net increase totaling $173,000 across all three (3) property tax-supported funds.
Finally, staff updated the transfer from the General Fund to the Capital Improvement Reserve Fund and Equipment Reserve fund so both transfers would be $200,000 in 2019.
Expenditure Adjustments Since the June 12, 2018 meeting, there have also been several expenditure adjustments. Staff has added or made changes to the following expenditures in the General Fund: · Updated County Figures for dispatching services and added funds for a Disproportionate Minority Contact study; · Added Citizen Satisfaction Survey; · Added Priority Based Budgeting Implementation Costs; and · Moved 3.0 FTEs from the Parking Fund to the General Fund.
Additionally, there have been several minor adjustments to a number of funds. · Housing Trust Fund: reduced expenditures to align with projected revenues. · Library Fund: reduced expenditures to align with updated assessed valuations figures and an updated budget request from the library. · Solid Waste Fund: increased expenditures because the original budget inadvertently double counted the saving from eliminating 2.0 vacant solid waste loader positions. · Capital Improvement Reserve Fund: adjusted figures to align expenditures with the appropriate department. In the original budget, some projects were displayed in the wrong department. This did not have an impact on the total expenditures in the Capital Improvement Reserve Fund. · Updated Cemetery Perpetual Care Fund to align with anticipated fee changes and a change in policy to fund long-term care of the cemeteries. · Moved the Downtown Public Cameras from the Equipment Reserve Fund to the Special Alcohol Fund to help spend down fund balance.
Finally, there were a few adjustments made to the Capital Improvement Plan. The Sidewalk Mitigation Program was broken out into two (2) distinct projects. The first project (PW19E4CIP) is to be used for grants and the second project (PW19E5CIP) is to be used to fund sidewalks that are the City’s responsibility. Secondly, funds were moved from 2018 for the Transit Hub into 2019.
Parking Fund Adjustments A number of adjustments were made in the Parking Fund. For several years there have been 3.0 FTEs from the Police Department that have been paid for out of the Parking Fund. Staff have moved these FTEs back to the General Fund.
This adjustment was made in part so that the Parking Fund could begin taking over debt payments for the parking garage. Moving this debt from the Debt Service Fund to the Parking Fund reduced the mill levy needed in the Debt Service Fund by .447 mills.
However, that millage is now needed in the General Fund to pay for the 3.0 FTEs that were moved from the Parking Fund. This adjustment resulted in no overall change in the mill levy but did require a decrease to the Debt Service millage and a corresponding increase to the General Fund millage.
Next Steps On July 17, 2018, the City Commission will be asked to establish the maximum expenditure authority and authorize publication of the 2019 Proposed Budget. Additionally, the City Commission will be asked to authorize publication of the 2018 Amended Budget.
On August 7, 2018, a Public Hearing will be conducted for both the 2018 Amended Budget as well as the 2019 Proposed Budget and the first reading of the respective ordinances will be on the agenda.
On August 14, 2018, the second reading of the 2018 Amended Budget and the 2019 Proposed Budget will be on the agenda.
It should be noted that this timeline assumes that no election will be held to increase the mill levy rate beyond the consumer price index. |
|||
|
Strategic Plan Critical Success Factor |
Effective Governance/Professional Administration Innovative Infrastructure and Asset Management Core Services Sound Fiscal Stewardship Economic Growth and Security |
|||
|
Fiscal Impact (Amount/Source): |
The total City Manager’s Recommended budget for expenditures is $206,513,000 across all funds and the General Fund is $77,664,000.
|
|||
|
Attachments: |
||||
|
Reviewed By: (for CMO use only) |
☐TM ☐DS ☒CT ☐BM |