City Manager’s Proposed Budget FY 2021 August 4, 2020 1
Budget Process Month-Meeting Type Topics April 14 th -Council Retreat Strategic Map & Goals, COVID Financial Impact Update, General Fund Balance & Assignments, FY21 Budget Strategy, Debt Capacity, Council Priorities May 12 th -Budget & Audit Budget Key Dates & Tasks Update, FY21 Preliminary Review, General Fund, Health Insurance Update June 2 nd -Work Session Budget Summaries, Tax Rate, Capital Financing/Debt Capacity June 16 th -Work Session Sales Tax, Special Revenue Funds, Other Governmental Funds, Internal Service Funds, Financial Management Policy Statement June 30 th -Work Session Other Enterprise Funds, Initial Discussion of Tax Supported CIP July 14 th -Budget & Audit Utilities Rates, Fee Schedule, Outside Agencies, Tax Rate July 21 st -Work Session General Fund, General Debt CIP, City Manager’s Initiatives 2
Highlights • General Fund – Manager’s Initiatives in response to Council’s strategic goals – Net Taxable Value YOY value increase: 1.33% • 6.74% below previous 4-year average – Tax rate unchanged at .776232 • 1.89 cents shifted from operations to debt • .7253 cents below the No New Revenue Tax Rate of 78.3485 – Property & Sales Tax account for 70% of FY21 (71.4% FY20) • Combined decrease 3.8% ($4M) • Sales tax down 7.7% due to COVID-19 uncertainty – 2.19% reduction in budget (after one-time drawdowns) 3
Highlights • Other funds – CIP: $90 million in improvements – New tiered rate structure in Water department – Solid Waste collection fees unchanged – Increased subsidy from General Fund for Cameron Park Zoo • Reserve usage required for Zoo – Convention Center & Ranger Museum/Hall of Fame • operational deficit, use of reserves 4
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High Performing City Government STRATEGIC GOALS Enhance Quality of Life $1,804,800 $2,675,000 • Expand IT capabilities in MIS • Neighborhood Vitality and transparency ($177,800; Initiative ($225,000; 1 FTE) 2 FTE) • Investment in Parks & • Create Management Recreation Development/Fellowship • Capital: $2.1M Program ($127,000; 2 FTE) • Master Plan Update: $350,000 • Employee Compensation • Zoo expansion partnership • Veteran’s Day holiday w/ County: $14.5M • No insurance increases • Conditional compensation @ midyear: $1.5M • Create OMB w/ existing staff 6
Facilitate Economic Development STRATEGIC GOALS Building a Culture of Equity $3.3M $667,000 • Increase WMCEDC funding • Equity support in CMO $250,000 ($2.75M) • 1 FTE; $125,000 • Small Business • Assignments to support Development and Resiliency equity: $542,000 • Small business • Disparity study: $350,000 development loan program • STEAM study: $40,000 to leverage CDBG • Future programs • $300,000 General Fund • Linkages with Small • First payment to Riverfront: Business Development & $2.75M (EcoDev Resiliency Assignments) 7
Provide A Safe & Vibrant City STRATEGIC GOALS Support Sustainability & Resiliency $2.1 million TBD • Create Community Policing • Subdivision ordinance update Initiative: $1.5M • Impact fees • Update to vehicle inventory and • 7 FTE; $638,000 LCC for EV utilization • Facility finish out: $450,000 • Development of Replacement in bonds Program for Roofs ($5M) and • One-time equipment HVAC ($1.7M) purchases funded with • Solar unit evaluation General Fund balance & • SEER/EnergyStar non-General Fund sources: • Construction & evaluation of $387,000 solar panels @ FS#6 • Fire apparatus replacement • 7 apparatus; $600,000 8
Improve Infrastructure STRATEGIC GOALS Tax Supported: $23.9M Rate Supported: $66.4M $0.50 $0.25 $1.00 $2.00 $18.8 $22.5 $2.48 $1.0 $17.65 $1.5 $22.7 Streets (Bonds) Streets Cash Water (Bonds) Water (Cash) Infrastructure Leverage Bridge Maintenance Wastewater (Bonds) Wastewater (Cash) Traffic Signals Facilities WMARSS (Bonds) 9 $2.1M in tax supported Park Improvements shown under Quality of Life
ALL FUNDS SUMMARY 10
Expenditures by Use Transfers Out - FY21 EXPENSES Debt Service Transfers Out 7% All Other 3% 15% Supplies 4% Capital Projects 16% Salaries and Wages 20% Purchased Debt Professional 10% Technical Services Other Employee Maintenance 4% 9% Benefits 4% 8% 11
Sources of Funding FY 21 REVENUES Sales Tax Capital Projects Funding 7% 18% Intergovernmental 3% Property Tax 17% Business and occupation Fees Charges for 2% Services 33% Transfers In 11% Indirect - Cost Allocation Other Overhead 7% 2% 12
GENERAL FUND SUMMARY The General Fund is the general operating fund in the City. It is used to account for all financial resources except those required to be accounted for in other funds, such as the Water and Sewer Fund, Solid Waste Fund or Special Revenue Funds. The General Fund is the City’s largest fund. The General Fund accounts for the majority of City services, including general government, parks and recreation, public safety, and public works. Budgeted expenditures include salaries and benefits, supplies, maintenance, services, and capital outlays. 13
Expenditure Comparison FY 20 Adopted FY 21 Proposed Change $ Change % Salaries & Wages $68,193,369 $71,312,375 $3,119,006 4.57% Employee Benefits $25,331,735 $26,030,578 $698,843 2.76% Purchases Prof/Tech Services $5,694,513 $6,339,618 $645,105 11.33% Purchased Property Services $1,419,734 $1,517,317 $97,583 6.87% Maintenance $8,632,656 $8,987,781 $355,125 4.11% Other Purchased Services $4,171,304 $4,945,119 $773,815 18.55% Supplies $7,619,690 $7,494,909 -$124,781 -1.64% Other $3,819,346 $1,704,336 -$2,115,010 -55.38% Contractual Services $3,125,753 $5,658,984 $2,533,231 81.04% Capital Expenditures $2,623,553 $1,075,256 -$1,548,297 -59.02% Interdepartmental Billing $1,911,654 $1,510,822 -$400,832 -20.97% Indirect Cost Allocation Overhead $138,390 $78,233 -$60,157 -43.47% Transfers Out Cash CIP $6,481,910 $2,482,119 -$3,999,791 -61.71% Transfers Out $13,533,061 $14,568,820 $78,233 0.58% Total Expenditures $152,696,668 $153,706,267 $1,009,599 0.66% Drawdown for One Time Expenditures -$3,700,896 -$7,979,534 -$4,278,638 115.61% Net Expenditures $148,995,772 $145,726,733 -$3,269,039 -2.19% 14
FY 21 General Expenditures by Use Purchased Professional Technical Services Maintenance Supplies Transfers Out 4% 6% 5% 9% Transfers Out - Cash CIP Other 2% 11% Employee Benefits 17% Salaries and Wages 46% 15
Revenue Comparison FY 20 Adopted FY 21 Proposed Change $ Change % Property Tax $67,326,605 $66,297,422 -$1,029,183 -1.53% Sales Tax $39,017,059 $36,000,000 -$3,017,059 -7.73% Business & Occ Fees $10,089,776 $9,561,776 -$528,000 -5.23% Overhead Allocation $8,637,931 $9,341,069 $703,138 8.14% PILOT $5,084,754 $5,353,541 $268,787 5.29% Business & Occ Fees- Enterprise Funds $4,127,814 $4,517,204 $389,390 9.43% Other $2,776,658 $2,396,542 -$380,116 -13.69% Intergovernmental $2,269,028 $3,021,417 $752,389 33.16% Interdepartmental Billing $2,075,493 $2,510,153 $434,660 20.94% Charges for Service $1,767,891 $1,190,519 -$577,372 -32.66% Fines $1,567,373 $942,373 -$625,000 -39.88% Licenses & Permits $1,553,021 $1,927,949 $374,928 24.14% Investment Interest $1,086,259 $125,030 -$961,229 -88.49% Transfers In $751,838 $1,797,466 $1,045,628 139.08% Contributions $627,782 $627,782 $0 0.00% Net Merchandise Sales $236,490 $116,490 -$120,000 -50.74% Total Revenues $148,995,772 $145,726,733 -$3,269,039 -2.19% Drawdown for One Time Expenses $3,700,896 $7,979,534 $4,278,638 115.61% Total Revenues w/ Drawdown $152,696,668 $153,706,267 $1,009,599 0.66% 16
FY 21 General Revenues by Type Indirect - Cost Allocation Fees Taxes (PILOT) Overhead 3% 4% 6% Business and Property Tax occupation 45% Fees 7% Other 10% Sales Tax 25% 17
FY 21 General Fund Totals & Use of Fund Balance Revenues $145,726,733 Expenses $153,706,267 Revenues Over/(Under) Expenses ($7,979,534) Use of Assignments $7,602,394 Use of Unassigned $377,140 Use of Assignments: Use of Unassigned: • $912,311 Street CIP Cash • $350,000 for Parks Master Plan • $250,000 for Traffic Signal Master • $ 27,140 for portion of Community Plan Policing Initiative vehicles • $2.75M Riverfront Project • $3.19M transfer to Capital Projects Reserve • $500,000 for IT Infrastructure 18
General Fund Balance & Assignments Projections Per GF Income Statement With Proposed Policy Revision 19
Sales Tax: COVID-19 Impact 20
General Fund Sales Tax: Pre COVID-19 Analysis than 21
General Fund – Sales Tax with COVID Impact • The month to month comparison in July shows a similar collections rat e to July of FY19. • Staff is projecting $39.01M in FY20. • Staff is proposing a budget of $36M in FY21. • Strategic and conservative approach to hedge against the unknown impact of COVID. • Made possible because General Fund is 45% funded by stable Property Tax revenues. • Ability to amend the Budget 22
Property Tax: Valuation & Rates 23
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