BUDGET OVERVIEW 1 CHALLENGES FOR THE GENERAL FUND $30,000,000 - - PowerPoint PPT Presentation

2016 Readoption

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BUDGET OVERVIEW

$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Revenues Expenses

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CHALLENGES FOR THE GENERAL FUND

$- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

GF Fund nd Bal

GF Fund Bal

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CHALLENGES IN GF STRUCTURE

$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Taxes

• Lic. & Permits

Intergovt. Charges for Srvs Fines & Forfeit.

• Misc. Rev.

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SOURCES OF FUNDING

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Property Tax Sales Tax Franchise Gambling

• Priv. Timber Tax

Property Taxes are 75% of General Fund taxes collected. This revenue source may

• nly increase

by 1% per year.

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SOURCES OF TAXES

$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Base Revenue Growth Dependent

10% 11% 10% 8% 9% 11% 14% 13% 13% 15% 16% 14% 6

SUSTAINABLE VS. DEVELOPMENT

68% 69% 70% 71% 72% 73% 74% 75% 76% 2011 2012 2013 2014 2015 2016

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RATIO OF LABOR TO OPERATING COSTS

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

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SERVICE COST PER CAPITA

90 95 100 105 110 115 120 125 2009 2010 2011 2012 2013 2014 2015 2016

Washougal Fire Employees added 9

NUMBER OF CITIZENS PER FTE

$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2011 2012 2013 2014 2015 2016 Transfers Capital Intergovt. Services Supplies Benefits Salaries

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GROWTH IN EXPENDITURES

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NUMBER OF FTE

2011 2012 2013 2014 2015 2016 Fire 41 41 44 53 54 54 Comm Dev 19.8 19.8 18.8 18.8 19.8 19.8 Police 31.4 31.5 31.5 31.5 32.5 32.5 Public Works 45.1 45.5 45.6 47.1 48.1 48.1 Parks 8.15 8.17 7.46 7.13 7.1 7.1 Library 15.1 14.39 14.78 14.33 14.3 14.3 Finance 7.8 7.8 7.8 9 9 9

• Adm. Srv.

5 4 4 5.6 6.6 6.6 Judicial 1 1 1 Executive 2 2 2 2.4 2.4 2.4 50 100 150 200 250

175 174 176 190 195 195

50 100 150 200 250 300 2011 2012 2013 2014 2015 2016 FTEs Seasonal

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FTE AND SEASONAL WORKERS

No Pool Seasonals

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2011 2012 2013 2014 2015 2016 Salaries Benefits

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PAYROLL INCREASES

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COST OF LIVING INCREASES

COLA by Employee Group

Group 2011 2012 2013 2014 2015 2016 Total Non-Rep 0.00% 1.00% 0.00% 3.00% 2.50% 2.50% projected 9.00% AFCSME 0.00% 1.00% 0.50% 3.00% 2.50% 2.50% 9.50% OPEIU 0.00% 1.00% 0.50% 3.00% 2.60% 2.00% 9.10% CPOA 0.00% 1.00% 0.00% 2.70% 4.00% 1.80% 9.50% IAFF* 0.00% 1.00% 0.00% 3.50% 3.00% 3.00% 10.50% CPEA 0.00% 1.00% 0.50% 3.00% 2.50% 2.50% 9.50% IAFF * In 2014, there was an adjustment to reflect the decompressing of the pay schedule created by merger ILA as well as an adjustment to reinstitute a 20% differential distributed evenly across the six

• steps. Additionally, all employees in the bargaining unit received a 1.25% increase in base pay.

This overall equated to a wage increase between 3% and 4% depending on step - 3.5% is used as an average.

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EMPLOYER SHARE PENSION COSTS INCREASES

PERS 1/2/3 increased 5.87% over 5 years - 117 employees LEOFF 2 remained stable over 5 years 78 employees

Note: 2014/2015 Kaiser rates reflect bargaining units settling contract with higher deductible plans.

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MEDICAL PLAN INCREASES

# Employees 2011 2012 2013 2014 2015 2016 Total Regence 65% 11.00% 11.00% 6.00% 0.00% 5.00% 5.00% 38.00% Kaiser 35% 17.40% 6.20% 5.09% 5.94% 6.30% 4.90% projected 45.83%

• 1.2% 6.60%

2009  Police Officer

• Salary = $ 77,282
• Overtime=$ 2,049
• LEOFF = $ 4,016
• Benefits= $ 23,064

Total $106,411 2015

 Police Officer

• Salary = $86,759* 12.26%
• Overtime= $ 2,804
• LEOFF =

$ 4,710 17.29%

• Benefits = $30,148 30.71%

Total $126,469 18.85%

Includes Prem. Pay 1%, Education Incentive 3%, Master Patrol Officer 6.5% and Specialty Pay 1.5%

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COST OF AVERAGE POLICE EMPLOYEE

2009  Engineer

• Salary = $ 57,297
• Overtime=$ 0
• PERS III = $ 3,893
• Benefits= $ 18,786

Total $79,976 2015  Engineer

• Salary = $76,220 33.0%
• Overtime= $ 0
• PERS III = $ 7,756 99.2%
• Benefits = $23,151 23.2%

Total $107,127 33.9%

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COST OF AVERAGE ENGINEER

REVENUES  Property Tax Limitations  Lack of Commercial Activity  Shared Revenue Declining  Fees are subsidized EXPENDITURES  Employee needs  COLAs and Healthcare costs continue to increase  Pension Costs growing  Debt service gaps  ER&R rates not at costs

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PRESSURES IN BOTH DIRECTIONS

 Revenues on average are increasing 2.9% annually  Expenditures on average are increasing 5% annually Fund Balance has declined on average 6% annually

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SIMPLE MATH

 Use of seasonal help – Parks and Public Works  Cost sharing with partners – Fire and EMS, Municipal Court  Restructuring – Administrative Services, Finance, Community Development, Engineering  Use of Technology – Police, Building, Finance, Parks and Recreation, City-wide  Budget changes including biennial budget, limiting supplemental budget adjustments, baseline budget with decision packages  Revisiting financial policies and updating to Best Practicies

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STRATEGIES IMPLEMENTED

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OTHER PRESSURES

 Streets

• Preservation
• Maintenance

 Parks and Recreation

• Swimming Pool and Programming
• Recreation Programming

 Cemetery

• Maintenance
• Record Keeping

 Debt

• Debt Service for Street Projects, Fire, and Parks

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PROGRAMS SUBSIDIZED

$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2009 2010 2011 2012 2013 2014 2015 2016

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STREETS GENERAL FUND SUPPORT

Use of Banked Capacity

$- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 2009 2010 2011 2012 2013 2014 2015

Revenues Expenses

2009 $58,802 2010 $79,464 2011 $35,809 2012 $48,297 2013 $27,404 2014 $32,578 2015 $68,819 *

* N o t a l l e x p e n s e s a c c o u n t e d f o r a t t h i s t i m e

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SWIMMING POOL SUPPORT

$- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 2011 2012 2013 2014 2015 2016

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CEMETERY SUBSIDY

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GROWING CITY –INVESTING IN INFRASTRUCTURE

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000

GO Bonds

• Govt. Loans

$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Revenues Expenditures

Revenues include Property Taxes and State-Shared Expenditures are cost of services per capita at current service levels with modest inflation and population based on housing growth 28

NUGA REVENUES VS. EXPENDITURES

Budget Overview & Forecast – September

Capital - September

• Property Taxes
• Fee Schedule
• Equipment Rental & Replacement

Revenue Budget – September Recommended Budget – October

• Public Hearings

Public Input – Nov

• Property Tax Resolutions
• Fee Schedule

Budget Approval Dec

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BUDGET PROCESS