City Managers Proposed Budget David Gaines Finance Director - - PowerPoint PPT Presentation

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City Managers Proposed Budget David Gaines Finance Director August 20, 2019 August 20, 2019 - ID19-1930 Objective Budget Calendar Proposed Budget Changes General Fund Forecast Supplemental Packages Next Steps August 20,

SLIDE 1

City Manager’s Proposed Budget

David Gaines Finance Director August 20, 2019

August 20, 2019 - ID19-1930

SLIDE 2

Objective

Budget Calendar
Proposed Budget Changes
General Fund Forecast
Supplemental Packages
Next Steps

August 20, 2019 - ID19-1930

SLIDE 3

Key Budget Dates

✓ June 18, 2019

General Fund Five Year Forecast Presentation, Departmental Presentations

✓ June 25, 2019

Departmental Presentations

✓ July 16, 2019

2nd General Fund Five Year Forecast Discussion, Departmental Presentations

✓ July 23, 2019

Departmental Presentations

✓ July 24, 2019

Final Certified Value Received

✓ August 1, 2019

1st Budget Workshop – City Manager’s Proposed Budget Submitted to Council

✓ August 13, 2019

2nd Budget Workshop

August 20, 2019

3rd Budget Workshop/1st Public Hearing on Tax Rate

September 10, 2019

2nd Public Hearing on Tax Rate & Public Hearing on Budget

September 17, 2019

Council Adopts Budget

August 20, 2019 - ID19-1930

SLIDE 4

Development Fee Increase/Effective Tax Rate

August 20, 2019 - ID19-1930

Increased Development Service Fee Revenue $2.8 Million
Reduce Property Tax Rate to Effective Rate
Funded Development Fee Grant or Other Assistance an Additional $150,000
Decreased Engineering Services Transfer $500,000 due to Engineering Review Fee

changes

Increased Meet and Confer Allocation $60,000 ($510,000 total)
Increased City Council Contingency Budget from $1,600 to $1,700

Changes to Proposed Budget

SLIDE 5

Development Fee Increase/Effective Tax Rate

August 20, 2019 - ID19-1930

Update Barrier Funds-Housing in Tier 1 to Housing/Rapid Re-Housing, increased

funding from $50,000 to $100,000

Funded Public Safety Technology $172,500
Funded 2030 Comprehensive Plan Update $95,000
Funded Tier 4 Supplemental Items
Permitting and Planning Software maintenance $300,000
Our Daily Bread Security $15,000
Funded Recreation Capital Replacements $150,000
Funded Animal Services Officers and Volunteer Coordinator Positions $210,242
Additional Traffic Operations FTE’s - $151,559

Changes to Proposed Budget

SLIDE 6

$50,000 CURRENT SUPPLEMENTAL $50,000 ADDITIONAL REQUEST The community has lost critical funding for Rapid Rehousing programs that provide housing assistance necessary for shelters to move people from homeless to housed.

Image (modified) www.FocusStrategies.net

DISCUSSION: Dedicate funds to Rapid Rehousing CONCEPT:

Funding direct to MKOC, TSA shelters

and ODB (also DCFOF).

Leverage other successful resources:
Housing Navigator
Barriers Funding
Track Housing Outcomes

SLIDE 7

Property Values and Tax Rate

Proposed Tax Rate Maintenance & Operation $0.385364 / $100 Debt Service $0.205090 / $100 Total Proposed Tax Rate $0.590454/ $100 Effective Tax Rate $0.590454 / $100 Rollback Tax Rate (Current 8%) $0.633033/ $100

Future “Rollback Tax Rate” (Future 3.5%) $0.610501 / $100 (Beginning in FY2021 For Reference Only)

* Excluding TIRZ Values

Certified Taxable Value* $12,620,560,528 Value Increase 11.52% Freeze Adjusted Certified Taxable Value* $12,620,560,528 Value Increase 11.3%

August 20, 2019 - ID19-1930

SLIDE 8

General Fund Forecast – Development Fee Increase/Effective Tax Rate

August 20, 2019 - ID19-1930

FY 2018-19 Budget FY 2018-19 Estimate FY 2019-20 Proposed FY 2020-21 Projected FY 2021-2022 Projected FY 2022-23 Projected FY 2023-2024 Projected Beginning Fund Balance 30,317,385 $ 30,317,385 $ 30,135,495 $ 30,196,334 $ 30,172,956 $ 29,999,320 $ 30,401,716 $

Property Tax

46,259,982 $ 46,259,982 $ 48,711,580 $ 50,377,760 $ 51,940,816 $ 53,504,406 $ 55,068,551 $

Sales Tax

41,425,582 37,953,567 39,281,942 40,656,810 42,079,798 43,552,591 45,076,932

Other Revenues

40,015,741 41,492,342 48,324,603 48,122,504 49,424,283 50,964,842 52,668,747

Total Revenue

127,701,305 $ 125,705,891 $ 136,318,125 $ 139,157,074 $ 143,444,897 $ 148,021,839 $ 152,814,230 $

Base Expenditures*

129,184,436 $ 125,435,880 $ 130,754,458 $ 138,380,452 $ 143,618,533 $ 147,619,443 $ 151,995,275 $

New Recurring Expenses

5,128,343 $ 800,000 $

New One-Time Expenses

451,901 $ 374,485 $

Total Expenditures

129,184,436 $ 125,887,781 $ 136,257,286 $ 139,180,452 $ 143,618,533 $ 147,619,443 $ 151,995,275 $ Ending Fund Balance 28,834,254 $ 30,135,495 $ 30,196,334 $ 30,172,956 $ 29,999,320 $ 30,401,716 $ 31,220,671 $ Change in Fund Balance (1,483,131) $ (181,890) $ 60,839 $ (23,378) $ (173,636) $ 402,396 $ 818,955 $ Fund Balance as % of Total Expenditures 22.32% 23.94% 22.16% 21.68% 20.89% 20.59% 20.54%

SLIDE 9

Supplemental Package Summary General Fund

Supplemental packages have been grouped into tiers ranging from 1-5.
$374,485 one-time Cost, $4,806,129 on-going cost
Tiers 1-3 and a portion of Tier 4 included in this option

Tier 1

Tier 2 Tier 3 Tier 4 Tier 5

* Cumulative

Increase Above Effective Rate *Average Annual Tax Increase One-Time Cost Recurring Cost Tier Total Total Cost

Tier 1

$.00 $0 $80,000 $1,348,100 $1,428,100 $1,428,100

Tier 2

$.00 $0 $53,684 $1,184,034 $1,237,718 $2,665,818

Tier 3

$.00 $0 $145,801 $1,597,197 $1,742,998 $4,408,816

Tier 4 Funded

$.00 $0 $95,000 $676,798 $771,798 $5,180,614

Tier 4 Un-Funded

$.005 $12.50 $134,922 $306,347 $441,269 $5,621,882

Tier 5

$.015 $37.50 $182,650 $1,047,490 $1,230,140 $6,852,022

August 20, 2019 - ID19-1930

SLIDE 10

Supplemental Package Detail General Fund – Option 2

Tier Supplemental Package Title

Tier 1

Integrated Pest Management Street Outreach Program Co-Sponsorship Events Homelessness Initiatives Street Outreach Team

Tier 2

Sworn Officers Meet and Confer Construction Guide Temporary Kennel Technicians Fire Develop. Program Civilian Jailers

Tier 3

New Public Safety Employees Dispatcher Overtime Public Safety Officers

Tech. Service

Public Safety Special Council Internal Audit Park Maintenance Overdue Fines AP Automation Comprehensive Plan Update

Tier 4 Funded

Permitting and Planning Software Animal Services Volunteer Coordinator Animal Control Officers Our Daily Bread Security New Traffic Employees

Tier 4 Un-Funded

Internal Service Fund Request Walkability Study Public Engagement Platform New Traffic Employee

Tier 5

Closed Captioning Community Market Funding Air Quality Sensors Paid Parental Leave Non-Profit Fee Grant Program Veteran’s Village Park Site Living Wage Impact August 20, 2019 - ID19-1930

SLIDE 11

Average Taxable Value - History

Fiscal Year Operations Rate Debt Rate Total Rate Average Taxable Value Average Tax Bill 2020 $0.385364 $0.20509 $0.59045 $248,909 $1,470 2019 $0.40543 $0.21505 $0.62048 $233,165 $1,447 2018 $0.43031 $0.20755 $0.63786 $214,136 $1,366 2017 $0.46674 $0.21660 $0.68334 $197,379 $1,349 2016 $0.47456 $0.21519 $0.68975 $179,149 $1,236 2015 $0.48119 $0.20856 $0.68975 $166,728 $1,150 2014 $0.47480 $0.21495 $0.68975 $157,039 $1,083 2013 $0.47088 $0.21887 $0.68975 $154,354 $1,065 2012 $0.47088 $0.21887 $0.68975 $154,282 $1,064 2011 $0.47088 $0.21887 $0.68975 $153,160 $1,056

August 20, 2019 - ID19-1930

SLIDE 12

Property Tax Rate History

August 20, 2019 - ID19-1930

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Operations Rate $0.47088 $0.47088 $0.47088 $0.47480 $0.48119 $0.47456 $0.46674 $0.43031 $0.40543 $0.38536 Debt Rate $0.21887 $0.21887 $0.21887 $0.21495 $0.20856 $0.21519 $0.21660 $0.20755 $0.21505 $0.20509 Total Rate $0.68975 $0.68975 $0.68975 $0.68975 $0.68975 $0.68975 $0.68334 $0.63786 $0.62048 $0.59045 $0.00000 $0.10000 $0.20000 $0.30000 $0.40000 $0.50000 $0.60000 $0.70000 $0.80000 TOTAL TAX RATE

SLIDE 13

Next Steps

Public Hearings – August 20th and September 10th
Development Services Cost of Service Study –

August 20th

Budget Discussions – All work sessions through September 17th
Budget Adoption – September 17th
Tax Rate Vote – 2/3 Vote (5 of 7)
Budget Vote – Majority

August 20, 2019 - ID19-1930

SLIDE 14

August 20, 2019 - ID19-1930

SLIDE 15

Living Wage Adjustment

August 20, 2019 - ID19-1930

Employment Type Count Difference at $15/hr Difference at $20/hr Full Time 214 $14,099 $1,106,606 Part Time 31 $7,645 $204,242 3/4 Time 1 $0 $3,294 Seasonal 401 $610,466 $1,511,357 Temporary 3 $0 $10,507 Grand Total 650 $632,210 $2,836,006

SLIDE 16

Supplemental Funding Requests - Funded in FY 2019-20

August 20, 2019 - ID19-1930 Department Tier Program Title FTEs Personnel Services On-Going Costs One-Time Costs Requested Expense Amount 2019-20 Revenue/Cost Offset Net Cost Tier #1

Council Initiative 1 Integrated Pest Management - Topdressing (Parks) 461,100 $ 461,100 $ 461,100 $ Council Initiative 1 Block Party - Street Closures (Parks) 2,400 $ 2,400 $ 2,400 $ Council Initiative 1 Creation of Co-Sponsorship Special Event Fund (Parks) 280,000 $ 280,000 $ 280,000 $ Council Initiative 1 Barrier Funds - Diversion 40,000 $ 40,000 $ 40,000 $ Council Initiative 1 Housing/Rapid Re-Housing 100,000 $ 100,000 $ 100,000 $ Council Initiative 1 Expand & Enhance MKOC Shelter (7 nights/week) 400,000 $ 80,000 $ 480,000 $ 480,000 $ Council Initiative 1 Street Outreach Team Expansion 64,600 $ 64,600 $ 64,600 $ Total 1,348,100 $ 80,000 $ 1,428,100 $

1,428,100 $

SLIDE 17

Supplemental Funding Requests - Funded in FY 2019-20 (Continued)

August 20, 2019 - ID19-1930

Department Tier Program Title FTEs Personnel Services On-Going Costs One-Time Costs Requested Expense Amount 2019-20 Revenue/Cost Offset Net Cost Tier #2

Police 2 Sworn Officers 4.00 441,949 11,772 $ 41,068 $ 494,789 $ 494,789 $ Police 2 Meet and Cofer 510,000 $ 510,000 $ 510,000 $ Public Affairs 2 Construction Guide 40,000 $ 40,000 $ 40,000 $ Animal Services 2 Two Temporary Kennel Techs 0.50 17,498 $ 17,498 $ 17,498 $ Fire 2 Fire Operations Professional Development Program 18,986 $ 10,000 $ 28,986 $ 28,986 $ Police 2 Civilian Jailers 2.00 131,429 $ 2,400 $ 12,616 $ 146,445 $ 146,445 $ Total 6.50 609,862 $ 574,172 $ 53,684 $ 1,237,718 $

1,237,718 $

SLIDE 18

Supplemental Funding Requests - Funded in FY 2019-20 (Continued)

August 20, 2019 - ID19-1930

Department Tier Program Title FTEs Personnel Services On-Going Costs One-Time Costs Requested Expense Amount 2019-20 Revenue/Cost Offset Net Cost Tier #3

Public Safety Communications 3 Additional Telecommunications Employees - 3 FTEs 3.00 294,517 $ 294,517 $ 294,517 $ Public Safety Communications 3 Dispatcher Overtime

105,060

$ 105,060 $ 105,060 $ Police 3 Public Safety Officers 3.00 201,884 $ 11,772 $ 30,801 $ 244,457 $ 244,457 $ Technology Services 3 Public Safety – Identix LiveScan Upgrade

37,000 $ 37,000 $ 37,000 $ Technology Services 3 Public Safety Redundancy

130,000 $ 130,000 $ 130,000 $ Technology Services 3 Kemp Replacement

7,272 $ 7,272 $ 7,272 $ Technology Services 3 AntiVirus 29,087 $

29,087 $ 29,087 $ Technology Services 3 Public Safety 172,500 $ 172,500 $ 172,500 $ Recreation Fund 3 North Lakes Driving Range Ball Machine 15,000 $ 15,000 $ 15,000 $ Council Initiative 3 Special Counsel - Internal Audit 25,000 $ 25,000 $ 25,000 $ Planning 3 Comprehensive Plan Update 95,000 $ 95,000 $ 95,000 $ Parks 3 New and Existing Parks Maintenance 2.70 508,105 $ 508,105 $ 508,105 $ Library 3 Eliminate Overdue Fines

75,000 $ 75,000 $ Finance 3 Accounts Payable Automation Software 200,000 $ 200,000 $ (100,000) $ 100,000 $ Total 8.70 601,461 $ 573,964 $ 687,573 $ 1,862,998 $ (25,000) $ 1,837,998 $ Tier 1 - 3 Totals 15.20 1,211,323 $ 2,446,236 $ 821,257 $ 4,478,816 $ (25,000) $ 4,453,816 $

SLIDE 19

Supplemental Funding Requests - Tier 4 Funded

August 20, 2019 - ID19-1930

Tier #4 - Funded

Public Affairs 4 Our Daily Bread Security 15,000 $ 15,000 $ Planning 4 Permitting & Planning Software Maintenance 300,000 $ 300,000 $ Planning 4 Comprehensive Plan Update 95,000 $ 95,000 $ Animal Services 4 Volunteer Coordinator 1.00 77,896 $ 77,896 $ Animal Services 4 Additional Animal Control Officers 2.00 132,346 $ 132,346 $ Traffic Operations 4 Signs and Marketing FTE 1.00 69,997 $ 69,997 $ Traffic Operations 4 Traffic Signal FTE 1.00 81,559 $ 81,559 $ Total 5 $ 1,543,595 $ 771,798 $ 771,798 $

SLIDE 20

Supplemental Funding Requests - Tier 4 Funded Unfunded

August 20, 2019 - ID19-1930

Tier #4 - Unfunded

Engineering, Fleet, Technology Services 4 Internal Service Fund Request 276,272 $ 276,272 $ Planning 4 Walkability Study 65,000 $ 65,000 $ Public Affairs 4 Public Participation & Engagement Platform 30,000 $ 30,000 $ Traffic Operations 4 Signs and Markings FTEs 1.00 69,997 $ 69,997 $ Total 1.00 441,269 $

441,269 $

SLIDE 21

Supplemental Funding Requests - Not Funded in FY 2019-20 Proposed Budget

August 20, 2019 - ID19-1930

Department Tier Program Title FTEs Personnel Services On-Going Costs One-Time Costs Requested Expense Amount 2019-20 Revenue/Cost Offset Net Cost Tier #5

Council Initiative 5 Closed Captioning 21,000 $ 21,000 $ 21,000 $ Council Initiative 5 Community Market Funding 110,000 $ 110,000 $ 110,000 $ Council Initiative 5 Air Quality Sensors TBD TBD TBD Council Initiative 5 Paid Parental Leave 284,280 $ 284,280 $ 284,280 $ Council Initiative 5 Non-Profit Fee Grant Program 100,000 $ 100,000 $ 100,000 $ Council Initiative 5 Veteran's Village Park Site (Parks) 10,000 $ 72,650 $ 82,650 $ 82,650 $ Council Initiative 5 Living Wage Impact - $15.00/hr 632,210 $ 632,210 $ 632,210 $ Total

632,210

$ 415,280 $ 182,650 $ 1,230,140 $

1,230,140 $ Tier 4 - 5 Totals 6.00 1,056,704 $ 938,417 $ 388,085 $ 2,383,206 $

2,383,206 $