Budget Committee Meeting May 7, 2019 Budget guidance Replenish - - PowerPoint PPT Presentation

Budget Committee Meeting

May 7, 2019

▪ Replenish reserves ▪ Maintain levels of service, to the extent possible ▪ Reorganize and adjust to assure long-term viability

Budget guidance

▪ PERS costs average 33% across City ▪ Health insurance plans increases ▪ 4% (BlueCross BlueShield) ▪ 17.8% (PacificSource)

Cost drivers

Year one: ▪ Freeze 1 lieutenant position and 3 police officer positions ▪ 94.25 budgeted FTE, down from 98.25 FTE in Fiscal Year 2018-2019. ▪ Sworn positions from 65 to 61

Police

Year two: ▪ Freeze 1 additional lieutenant position and 2 police officer positions ▪ Positions frozen through attrition with planned retirements ▪ Reduced to 91.25 budgeted FTE ▪ Sworn positions reduced to 58

Police

Police

Calls for Calls for s service ervice increa ncreased sed 9.2% 9.2%

Police

Par Part t 1 1 Crimes Crimes increas increased ed 12 12.4% .4% in in 201 2018

Other challenges: ▪ Equipment replacement ▪ Cuts in overtime budget

Police

Accomplishments: ▪ Body worn cameras ▪ Community engagement

Youth Citizens’ Academy, Citizen’s Academy, Shop with a Cop, Safety Camp, Neighborhood Watch, Coffee with a Cop, National Night Out, Cadet and volunteer program

▪ 47 commendations in 2018 including Lifesaving and Medal of Valor awards ▪ CALEA accreditation in November 2019

Police

Fire, April 2 scenario

▪ Eliminating Technical Rescue Team ▪ Freezing 3 vacant firefighter positions ▪ Laying off 6 firefighters ▪ Demoting 2 day-staff personnel ▪ Ending our participation in Medic 71 program by laying off 2 single-role medics

Fire, 9-1-1 Responses

6,145 6,391 6,370 6,716 7,218 7,657 8,476 9,477 9,463 10,455 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 9,500 10,000 10,500 11,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 *2019

*Estimate based on call volume as of 4/25/2019

Fire, current scenario

▪ Freezing 3 vacant firefighter positions

Fire, 9-1-1 Responses

6,145 6,391 6,370 6,716 7,218 7,657 8,476 9,477 9,463 10,455 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 9,500 10,000 10,500 11,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 *2019

*Estimate based on call volume as of 4/25/2019

Medic 71

Program Goal: Keep dual-role firefighter/paramedics in-district and available to respond to emergencies in Albany

380 499 100 200 300 400 500 600 2017 2018

Single-Role Medic Units with Lebanon and Tangent Fire Districts

Responded to 499 calls in 2018 for Albany Fire Department ▪ 267 interfacility transfers ▪ 232 emergency responses ▪ Total time on calls in 2018: 813 hours (2.23 hours per day)

Revenue generated by Fire Department

Ambula bulance nce serv ervice ice fees fees $3,153,155 Rur Rural al Fir Fire D e Dis istricts tricts and and contr contrac act t fees fees $2,444,374 Gra Grant nts, , rei reimbur bursab able le pr prog

• grams

ams, , and and mis

• isc. income
• c. income

$661,155 Fir FireMed eMed $173,000

Estimate for FY 2019

$6,431 $6,431,684 ,684 in revenue in FY 2019, supporting 37.6 37.6% of the department’s operating budget

2018 Wildfire Conflagrations

Oregon

▪

Graham $ 10,992

▪

Substation $ 101,367

▪

South Valley $ 7,567

▪

Memaloose 2 $ 9,384

▪

Garner Complex $ 105,214

▪

Taylor Creek $ 187,210

▪

Sugarpine-Miles $ 45,886

▪

Stubblefield $ 53,506

▪

Ramsey $ 14,217

▪

Hugo $ 22,334

▪

Klondike $ 97,855

California

▪

Camp Fire $329,775

$181,417 generated

for Fire Department Equipment Replacement

Total: $985,308

Other impacts:

▪ Community Risk Reduction decreased by 34% ▪ Education and training reduced by 23.5% ▪ Personal Protective Equipment reduced by 33% ▪ Uniform budget reduced by 30% ▪ Fire station facility fund decreased by 33% ▪ Fire equipment decreased by 37.5%

Fire

▪ Generates revenue through permit or application fees ▪ Revenues go directly to the general fund ▪ Revenues collected = total City cost for conducting reviews ▪ Revenues collected do not cover the cost of the entire planning division ▪ General fund monies, other than those collected through planning permit/applications fees, are required to fund the department

Planning

Services provided ▪ Implementing community visions and policies for growth through Comprehensive Plan and Development Code ▪ Reviewing land use applications for compliance with Development Code ▪ Long-range planning ▪ Administration of historic preservation and related grants ▪ Code compliance ▪ Floodplain management ▪ Administration of Community Development Block Grant (CDBG) programs

Planning

Proposed budget includes funding for ▪ development code amendment project ▪ buildable lands inventory ▪ housing needs analysis ▪ economic opportunities analysis ▪ grant for study and development of a plan for East I-5 area

Planning

Shortfall of $397,000 ▪ Freezing 1 vacant position (5% of workforce) ▪ Increasingly limited selection on library shelves ▪ Increasingly dependent upon outside funding ▪ Deferred maintenance

Library

Shortfall of $1,258,900 forced several actions to close the gap

▪ Increased revenues from fee-based programs ▪ Reductions in various non-personnel line items ▪ Elimination of 7 positions (5.1 FTE)

▪ closing of Maple Lawn Preschool (Coordinator and 4 part-time teachers), ▪ elimination of 1 Park Maintenance Supervisor, and ▪ elimination of 1 Recreation Assistant at the Senior Center

Parks and Recreation

Impacts

▪ Reduction in staffing to 25 budgeted FTE, lowest level since FY 2004-2005 ▪ Recreation program staff remain to maintain department’s revenue-producing capacity ▪ No general revenue funding for capital improvements (such improvements dependent upon Parks SDCs, donations, and grants) ▪ Nominal park maintenance resources available for deferred maintenance projects ($75,000 funding vs. $4 million list of projects)

Parks and Recreation

▪ Enterprise fund (supported by revenues from building permits) ▪ Guidelines prevent use on anything other than building division activities ▪ Building division balances revenues and expenses, carries reserves within its own fund ▪ Payoff of General Fund loan $300K

▪ City’s code enforcement program: Code Compliance Officer position created through this process. In next budget cycle, a new funding source will need to be identified for the Code Compliance Office position.

Building

▪ TLT revenue decreasing for last 3 years… at 1% per year ▪ TLT policy: “if reserve funds are insufficient to sustain allocations at previous years’ levels, all recipients shall receive a proportionate decrease in funds.” ▪ Proposed budget incorporates proportional 5% decrease in funds to outside agencies and City programs/events ▪ CTP (Collaborative Tourism Promotion) ▪ Economic Development Opportunity fund

Economic Development

▪ 127 budgeted FTE ▪ Operations Division: Chris Bailey ▪ Engineering Division: Jeff Blaine ▪ Four broad areas: ▪ Transportation ▪ Drinking Water ▪ Wastewater ▪ Stormwater ▪ Partnerships ▪ Personnel changes

Public Works

Transit, airport, street maintenance, related capital budgets ▪ Public transit system: fixed routes. Funding from federal transit funding, partner agencies, General Fund ▪ Airport: hangar leases, runways, taxiways, clearance areas, all airport property, compliance with FAA regulations. Funding from lease of land and structures, TLT, and FAA grants. ▪ Streets: state STP funds critical for accomplishing key projects, insufficient for street maintenance requirements

Public Works: Transportation

▪ 196 miles of gravity pipes, 6.6 miles of pressure pipes, 4,337 manholes, 11 sewer lift stations, Water Reclamation Facility, and Talking Water Gardens wetlands ▪ 3.5% rate increase July 1, 2019, and 3.5% increase July 1, 2020 ▪ Albany and Millersburg litigation with CH2M Hill (Jacobs) ▪ Composting facility: $3M project - about 50% of currently produced solids ▪ Riverfront interceptor project ▪ 23 miles of sewer mains will require major maintenance or repair within 10 years

Public Works: Wastewater

▪ 265 miles of pipes, 7 pump stations, 7 reservoirs, 19,150 service lines, 1,855 hydrants, 7,329 valves, the 18-mile Santiam-Albany Canal, and 2 water treatment plants ▪ 5% water rate increase January 1, 2020; assumes 5% increase January 1, 2021 ▪ Asset management of distribution network, efficiency in

• perations of treatment and hydropower facilities

▪ Growing focus on emergency management ▪ Effort to reduce regulatory burden with hydropower facility

Public Works: Water

(continued) ▪ Two drinking water plants ▪ Cyanotoxin concerns ▪ Water quality assurance efforts ▪ Loss of $75K in annual revenue from Lebanon

Public Works: Water

▪ 137 miles of stormwater pipes, 70 miles of ditches, 2,414 manholes, 4,363 catch basins/inlets, and 150 stormwater quality facilities ▪ Willamette River TMDL and NPDES MS4 Phase II general permit ▪ Stormwater programs growth ▪ Lawsuits against DEQ ▪ Significant needs but no capital projects ▪ Council funding plan: 17% rate increase (about $1.27) on March 1, 2020, and assumed 17% rate increase March 2021.

Public Works: Stormwater

▪ Hiring chill… but expect increase in recruitments ▪ In-house training program ▪ IT and GIS Services programs reduced proposed budget by $273,000

▪ reducing after-hours IT support ▪ reducing two positions from 1.0 FTE to 0.9 FTE in IT Services program ▪ eliminated 0.5 temp FTE in FY20 and additional 0.5 FTE in FY21.

▪ Increases generated by higher cost of enterprise software licenses, employee wages, and benefits ▪ Creative use of aftermarket program: saved $80K

Support elements

Conclusion & Public Comment

*Includes six firefighter positions partially funded through the SAFER Grant FY ending June 30 2010 2011 2012 2013 2014* 2015 2016 2017 2018 2019 10-Year % Change Population 49,165 49,530 50,325 50,520 50,710 50,720 51,270 51,670 52,540 52,710

7.21%

Budgeted FTEs 427.425 424.925 424.925 388.825 389.775 385.875 399.508 406.558 424.118 438.493

2.59%

Budgeted FTEs per 1,000 population 8.694 8.579 8.444 7.696 7.686 7.608 7.792 7.868 8.072 8.319

• 4.31%

350 360 370 380 390 400 410 420 430 440 450 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Population Budgeted FTEs 7 7.2 7.4 7.6 7.8 8 8.2 8.4 8.6 8.8 Budgeted FTEs per 1,000 population

Budgeted FTEs…

2.59 .59%

• 4.31

.31%

per per 1,000 Population 1,000 Population

% of Total % of Total General Fund Req General Fund Requirements uirements

Public Safety (Police, Fire, Municipal Court) $34,857,900 87%

Library $2,8 $2,889,9 89,900 00

7% 7%

Community Development (Planning, Code Enforcement) $1 $1,253,600 ,253,600

3% 3%

Nondepartmental (City Hall Building Maintenance Charges, Transit State Revenue Sharing, Urban Forestry Management, funding to outside agencies, etc.) $1,202,800 $1,202,800

3% 3%

% of Total % of Total Annual General Fund Requirements Annual General Fund Requirements

79.90 81.78 83.28 83.62 83.08 86.22 86.03 84.97 85.26 86.70 9.32 8.67 8.59 8.62 8.61 7.86 7.83 7.9 7.42 7.19 4.34 4.31 4.07 3.4 3.03 2.71 2.64 2.5 2.8 3.12 6.44 5.24 4.06 4.36 5.28 3.21 3.5 4.63 4.52 2.99 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Public Safety (Police, Fire, Municipal Court) Library Community Development (Planning, Code Enforcement) Nondepartmental

2017 2017-20 2018 18 Li Linn nn Cou County nty Pr Prop

• perty

erty Taxes Taxes

• n
• n Assesse

Assessed d Value Value of

• f $250,000

$250,000

Greater eater Albany Albany Public blic Sch Schools ls $0.3 $0.33 Lin Linn Co County ty $0.2 $0.21 LBCC LBCC $0.0 $0.03 URD URD $0.0 $0.04 ES ESD D $0.0 $0.01 4H E 4H Ext.

• xt. <$0.0

$0.01 Poli lice e & & Fir Fire e (Gen (Gener eral al Fu Fund) d) 66% 66%, , $0.2 $0.25 Poli lice e & & Fir Fire (Public blic Sa Safety Levy fety Levy) 13% 3%, , $0.0 $0.05 Par arks ks & & Rec Recreati eation 17% 7%, , $0.0 $0.06 Gen ener eral al Obligatio ligation n Bo Bonds ds 4%, 4%, $0.0 $0.02 Cit City of Al f Alba bany

$0.3 $0.38

Tot Total Pro al Propert rty Ta Tax Im x Impose sed:

$5,018 $5,018