[PPT] - FY 2020-21 Proposed Budget Finance Department 1 August 6, 2020 ID PowerPoint Presentation

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Finance Department

FY 2020-21 Proposed Budget

August 6, 2020 ID 20-1154

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Presentation Objectives

COVID Financial Response Timeline
Proposed Budget Priorities
Financial Overview
Assessed Value and Tax Rate Assumptions
Tax Rate Discussion
General Fund Revenue Discussion
General Fund Forecast
Capital Improvement Plan
Other Funds
Next Steps

August 6, 2020 ID 20-1154

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COVID Financial Response Timeline

Financial Event (COVID) Action March

City declares local emergency in response to COVID-19

Financial Disaster Plan Implemented

Non-essential businesses close in response to pandemic

Finance Staff began forecasting possible financial impact in response to

non-essential business closer

Delayed and reprioritized capital projects
City implements hiring freeze
Ceased discretionary travel and training
Ceased merit increases
Analyzed contracts for possible savings

April

Non-essential businesses remain close in response to pandemic

Phase #1 cost reduction strategies
Forecasted General Fund revenue loss of $10 - $15 million
Forecasted Utility revenue loss $10 - $20 million
Electric Return on Investment (ROI) increased to 6%
Enacted Voluntary Separation Program (VSP)

Non-essential businesses begin a phased reopening approach

Staff begins to adjust forecast based on a slow recovery in the economy

May

Denton County notifies the City of CRF funding

Received notification from Denton County of $7,619,755 in CRF funding

June

Staff receives April sales tax data from comptroller

Finance Staff update end of year forecast based on April sales tax

collection

Departments update end of year estimate for FY 2019-20
Forecasted General Fund revenue loss of $5 - $7 million
Forecasted Utility revenue loss $4 - $6 million
VSP ended
On March 13, 2020, the City of Denton declared a Local Disaster for Public Health Emergency
In response to the pandemic staff has taken the following steps to mitigate the financial impact of COVID-19

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Assessed Value (AV) and Tax Rate Assumptions

2020 Appraisal Process

Denton CAD protests significantly higher across all entities.
ARB review timeline delayed due to remote review process.
Implementation of new software by Denton CAD caused issues.
Certified Totals were not available on July 24th as typically anticipated.
Denton CAD provided a Certified Estimate.

Certified Estimates

Currently, there are a total of 8,125 parcels under protest representing 39% of total value.
The proposed budget assumes approval of 85% of value under protest.
85% is a projection for budget purposes and based on limited information from DCAD.
Staff will continue to revise projections and present tax rate implications to Council in advance of budget adoption
The “No New Revenue” and “Voter Approval” tax rate calculates assume the lowest protest values resulting

in a “No New Revenue Rate” higher than our current tax rate.

August 6, 2020 ID 20-1154

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Total Assessed Value

3% 1%

2%

3% 5% 4% 12% 9% 8% 14% 10% 12% 4% $0 $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 $14,000,000,000

2%

0% 2% 4% 6% 8% 10% 12% 14% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Tax Year

Property Value Growth (Annual Percentage Change)

Assessed Value and Tax Rate Assumptions (cont.)

August 6, 2020 ID 20-1154

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*Includes TIRZ and Frozen Value

Currently, 39.3% of total assessed value is under protest.
If Appraisal District has not approved appraisal records, the Chief Appraiser shall provide a

certified estimate.

The high percentage of protest creates uncertainty in total assessed values and revenues.

Assessed Value and Tax Rate Assumptions (cont.)

August 6, 2020 ID 20-1154

Values as of Certified Total or Certified Estimate ~ July 24th Each Year Fiscal Year Certified Value* Total ARB Value Proposed ARB Value (85%) Properties In Review 2020-21 $8,796,479,166 $5,688,656,463 $4,835,357,994 39.3% 2019-20 $12,545,128,503 $244,259,543 $244,259,543 1.91% 2018-19 $10,936,139,629 $491,429,271 $492,429,271 4.30% 2017-18 $10,123,139,187 $293,722,030 $293,722,030 2.82%

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Current Tax Rate $0.590454
In 2019, City received 87% of the protest value

85% Protest Value State Calculated AV

Certified Value $8,796,479,166 Protest Value $4,343,166,707 Frozen Values ($1,594,241,870) TIRZ ($179,689,497) Certified Estimate $11,365,714,506

City Calculated AV

Certified Value $8,796,479,166 Protest Value $4,835,357,994 Frozen Values ($1,594,241,870) TIRZ ($198,541,948) Total AV $11,839,053,342

Proposed Budget Assumption

AV Increase over July 2019 Certified Values – 1% State Calculated No New Revenue Rate - $0.616399 State Calculated Voter Approval Rate - $0.635860 AV Increase over July 2019 Certified Values – 4% Proposed Tax Rate - $0.590454

Assessed Value and Tax Rate Assumptions (cont.)

August 6, 2020 ID 20-1154

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Assessed Value and Tax Rate Assumptions (cont.)

August 6, 2020 ID 20-1154 Lowest Value 82% 85% 87%

Certified Value $8,796,479,166 $8,796,479,166 $8,796,479,166 $8,796,479,166 Protest Value $4,343,166,707 $4,664,698,300 $4,835,357,994 $4,949,131,123 Frozen Values/TIRZ ($1,773,931,367) ($1,786,827,560) ($1,792,783,818) ($1,840,915,177) Total AV $11,365,714,506 $11,674,349,906 $11,839,053,342 $11,904,695,112 Proposed Tax Rate $0.590454 $0.590454 $0.590454 $0.590454 Total Levy $67,109,316 $68,931,666 $69,904,164 $70,291,748 Levy Difference from Proposed Budget ($1,822,350) ($972,498) $0 $670,329

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Assessed Value and Tax Rate Assumptions (cont.)

August 6, 2020 ID 20-1154 Over 65 Tax Freeze History

Freeze Taxable Actual Tax Levy Taxable Equivalent* Assessed Value Difference City Tax Revenue Difference FY 2020-21 1,593,633,620 $ 1,427,164,560 $ (166,469,060) $ (980,178) $ FY 2019-20 1,434,521,842 $ 1,257,454,060 $ (177,067,782) $ (1,045,504) $ FY 2018-19 1,253,423,086 $ 1,140,448,592 $ (112,974,494) $ (700,981) $

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Tax Rate Discussion

*Proposed Rate

Fiscal Year Operations Rate Debt Rate Total Rate Average Taxable Value Average Tax Bill 2021 $0.380364 $0.21009 $0.59045* $248,909 $1,470 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 $214,379 $1,367 2017 $0.46674 $0.21660 $0.68334 $197,379 $1,349

The proposed budget includes a tax rate equal to the current tax rate of $0.59045.

Of this amount, $0.380364 is provided to operation and maintenance expense and $0.210090 for debt.

The maintenance and operations rate decreased by $0.005.
The debt service rate will increase by $0.005, to support the City’s continued

investment in public safety and street infrastructure.

August 6, 2020 ID 20-1154

The 2021 taxable value is currently equal to the 2020 value. This is due to the fact

that the taxable value received from Appraisal District is below the 2020 value.

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Residential Annual Tax and Utility Bill Impact

Tax Impact Fiscal Year 2019 2020 2021 - Proposed Comments Tax Rate $0.62048 $0.59045 $0.59045 Average Taxable Value $233,165 $248,909 248,909 Average Tax Bill $1,447 $1,470

$1,470

$0 Increase Utility Impact Water $650 $650 $637 2% Rate Decrease Wastewater $378 $378 $378 No Rate Change Electric $1,500 $1,500 $1,500 No Rate Change Solid Waste $300 $260 $248 $1.00/Month Decrease* Average Utility Bill $2,820 $2,788

$2,763

$24.00 Utility Decrease

Total Average Bill $4,267 $4,258 $4,233 $24.00 Decrease

* Residential rate decrease

Tax Rate Discussion (cont.)

August 6, 2020 ID 20-1154

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General Fund Revenue Discussion – Sales Tax

Sales tax through May totaled $25,114,194

which is $33,539 below the original budget

The revised forecast is $1.45 million below the

adopted FY 2019-20 budget of $39,281,942. This represents a 10% reduction from June- September.

Preliminary FY2021 Sales Tax Budget is

$36,441,831.

10% Sales Tax Reduction in October through

March of FY2021

Staff will receive June and July sales tax data

during August and September

August 6, 2020 ID 20-1154

$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000

Total Sales Tax Collection

Budget April 21, 2020 Revised Estimate

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General Fund Revenue Discussion – Sales Tax (cont.)

August 6, 2020 ID 20-1154

5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000

Sales Tax History

Annual Sales Tax Total

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General Fund Revenues FY 2019-20 Proposed Budget $140,303,258

Ad Valorem Tax 38% Sales Tax 30% Franchise Fees 4% Fees, Permits, Use of Reserves 14% ROI 7% Cost of Service 7%

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General Fund Expenditures by Category FY 2019-20 Proposed Budget $140,301,932

Personnel Services 69% Materials & Supplies 2% Maintenance & Repairs 1% Insurance 1% Miscellaneous 3% Operations 11% Cost of Service 12% Transfers 1%

Expenses

August 6, 2020 ID 20-1154

The proposed FY 2020-21 budget includes $703,450 in homelessness initiatives

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Compensation & Benefits Assumptions

Civil Service pay adjustments to maintain meet and confer agreement (5% above survey

cities average) and STEP increases

Budget includes a one-time merit payment of 2.5%-3% for Non-Civil Service employees
Health Insurance
Assumes no change to City contributions
Retirement
TMRS rate increase from 17.46% to 17.76%
Fire pension remains rate at 18.5%

August 6, 2020 ID 20-1154

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Positions Summary

Position Reductions
85.84 FTEs removed from Budget across all funds
Result of Voluntary Separation Program and other vacancies
All vacant positions are evaluated by an internal Committee, and according to the

needs of the organization, positions are filled, transferred or eliminated.

New Positions
11 New FTEs added to budget
6 Police Positions
3 Fire Positions*
2 Legal Positions**
Net Reduction of 74.84 FTEs across all funds

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*total cost $345,742, $195,986 is funded by SAFR Grant **Cost is allocated to the utilities

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Position Summary – All Funds

PERSONNEL 2019-20 2020-21 Full Time Equivalents (FTE) MODIFIED Reductions New Positions PROPOSED General Fund Neighborhood Services 228.76 4.84 223.92 Public Safety 521.73 3 9 527.73 Transportation 13.00 13.00 Administrative & Community Services 92.75 4 2 90.75 TOTAL GENERAL FUND 856.24 11.84 11 855.40 Internal Service, Utilities Electric Fund 189.00 20 169.00 Water Fund 107.50 6 101.50 Wastewater Fund 125.00 13 112.00 Solid Waste Fund 128.00 5 123.00 Airport Fund 6.00 1 5.00 Customer Service Fund 45.00 2 43.00 Technology Services Fund 61.75 5.0 56.75 Facilities Management Fund 20.50 4.5 16.00 Materials Management Fund 26.50 4.5 22.00 Fleet Management Fund 26.00 26.00 Risk Retention Fund 10.00 3 7.00 Engineering Services Fund 51.00 51.00 Street Improvement Fund 43.00 5 38.00 Recreation Fund 55.87 5 50.87 CDBG Fund(1) 3.00 3.00 Tree Mitigation Fund 0.50 0.50 TOTAL OTHER FUNDS 898.62 74.0 824.62

TOTAL ALL FUNDS

1,754.86 85.84 11 1,680.02

Net Reduction of 74.84 FTEs across all funds

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Financial Forecast - General Fund

FY 2019-20 Budget FY 2019-20 Estimate FY 2020-21 Proposed FY 2021-22 Projected FY 2022-2023 Projected FY 2023-24 Projected FY 2024-2025 Projected Beginning Fund Balance 30,132,466 $ 30,132,466 $ 31,067,364 $ 31,068,690 $ 31,035,868 $ 29,823,135 $ 28,153,072 $ Property Tax 48,629,729 $ 48,629,729 48,339,022 52,086,112 53,808,043 55,825,279 57,919,177 Sales Tax 39,281,942 37,834,982 36,441,831 38,263,923 40,177,119 42,185,975 44,295,274 Franchise Agreements 4,598,933 3,882,830 3,998,933 3,878,965 3,762,596 3,649,718 3,540,227 Other Taxes 501,870 225,528 314,539 360,220 412,753 473,166 542,641 Service Fees 8,167,157 6,743,219 7,927,788 8,189,617 8,263,319 8,296,087 8,329,249 Fines and Fees 3,576,618 2,527,723 3,534,817 3,642,241 3,753,229 3,867,901 3,986,385 Licenses and Permits 6,626,452 6,108,706 6,122,621 6,263,167 6,407,282 6,555,066 6,706,625 Transfers 12,662,121 12,342,121 13,156,436 13,551,129 13,957,663 14,376,393 14,807,685 Return on Investment (ROI) 8,978,547 11,452,923 14,577,141 14,563,513 9,570,755 9,763,560 10,885,323 Other Revenues 3,312,573 2,674,534 2,890,130 2,556,284 2,572,664 2,602,252 2,626,283 CRF Funding

4,619,755

3,000,000

Total Revenue

136,335,942 $ 137,042,049 $ 140,303,258 $ 143,355,171 $ 142,685,422 $ 147,595,397 $ 153,638,869 $ Personnel Services 93,228,390 $ 93,117,979 96,604,735 $ 98,536,830 $ 100,507,566 $ 102,517,718 $ 104,568,072 $ Materials & Supplies 3,288,810 2,434,114 3,550,314 3,656,823 3,443,511 3,443,511 3,443,511 Maintenance & Repair 1,711,553 1,513,947 1,700,561 1,751,578 1,773,156 1,826,351 1,881,142 Insurance 1,569,761 1,565,878 1,551,820 1,598,375 1,665,360 1,715,321 1,766,781 Miscellaneous 1,573,452 3,924,820 3,727,213 3,839,029 1,637,019 1,669,759 1,703,154 Operations 17,874,101 16,362,752 15,095,703 15,397,617 15,705,569 18,358,144 18,907,744 Transfers 16,654,364 16,773,452 17,472,369 17,996,540 18,536,436 19,092,529 19,665,305 Fixed Assets 596,117 414,209 599,217 611,201 629,537 642,128 648,549 Total Expenditures 136,496,548 $ 136,107,151 $ 140,301,932 $ 143,387,993 $ 143,898,155 $ 149,265,461 $ 152,584,258 $ Ending Fund Balance 29,971,860 $ 31,067,364 $ 31,068,690 $ 31,035,868 $ 29,823,135 $ 28,153,072 $ 29,207,682 $ Change in Fund Balance (160,606) $ 934,898 $ 1,326 $ (32,822) $ (1,212,733) $ (1,670,064) $ 1,054,610 $ Fund Balance as % of Total Expenditures 21.96% 22.83% 22.14% 21.64% 20.73% 18.86% 19.14%

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General Government Proposed Debt Internal Service Fund Proposed Debt

Streets Projects (2019 Bond Election)

$12.40 Million

Police Facility Projects (2019 Bond Election)

$42.90 Million

Completion of 2012/2014 Street Reconstruction (CO)

$8.90 Million

Vehicle Funding (CO)

$3.36 Million

Facility Improvements

$1.48 Million Total New General Government Debt $69.04 Million

FY 2020-21 Capital Improvement Plan – Proposed Debt

Fleet Expansion (Fleet Fund)

$2.9 Million

311 CRM System (Tech Services Fund)

$1.3 Million Total New Internal Service Funded Debt $4.2 Million

Utilities Funds Proposed Debt

Electric

$65.03 Million

Water

$35.52 Million

Wastewater

$32.87 Million

Solid Waste

$3.00 Million Total New Utility Debt $136.42 Million

August 6, 2020 ID 20-1154

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FY 2020-21 Capital Improvement Plan – 311 CRM $1.3 Million

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Project Goals and Objective

Centralized city-wide activity tracking for coordination, process improvement

and analytics

Easy and traceable routing of work between departments.
Improving the overall customer experience as a city-wide goal.
A more functional request submission process that drives the effectiveness of

routing.

Centralized management of inquiries coming into the city.
General and personalized citizen notifications (e.g. trash pickup, holidays, major

announcements) Estimated Timeline

Fall 2020 – Release RFP and Select Vendor
Winter/Spring 2021 – Implement 311/CRM Platform, Procedures, Policies
Summer 2021 – Begin Public-Facing Rollout

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FY 2020-21 Capital Improvement Plan – 311 CRM (cont.)

August 6, 2020 ID 20-1154 customer inquiries centralized responses by customer service reps (311) centralized software to manage customer relations

CRM

ne source for data,

analytics, and service-level agreements CRM communicates with departments’ systems CRM assigns tasks departments solve customer issues

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FY 2020-21 Capital Improvement Plan – Fleet Expansion $2.9 Million

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Project Goals and Objective

Addition of 12 heavy repair bays to current fleet facility
Improve capacity to meet projected organizational needs through 2030
Align with consultant’s recommended facility standards
Maintain consistent repair rates / cost of operations

Timeline

September 2020 - Solicit / Evaluate Construction Bids
December 2020 - Present to Council for consideration
March 2021 – Initiate construction
January 2022 – Project completion

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Other Funds

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Electric Forecast – No rate increase, reduced TCOS revenue

The No Sale TMPA option is

reflected

Non-rate Revenue decreases

due to lower anticipated return for Transmission Revenue beginning in FY 2023

$21 Million included in

Purchase Power for TMPA decommissioning costs from 2021-2024

ROI expense will reduce from

6% to 3.5% in 2023

Actual Budget Estimate Proposed Projected Projected Projected Projected 2019 2020 2020 2021 2022 2023 2024 2025 Revenues Base Rate Revenues 91,676,163 $ 91,742,314 $ 87,874,709 $ 88,749,090 $ 90,710,991 $ 95,580,683 $ 100,239,007 $ 101,772,563 $ ECA Revenues 55,781,982 54,747,516 52,089,181 53,434,189 54,615,413 57,547,365 60,352,056 61,275,381 Non-rate Revenues 53,496,669 50,677,675 61,064,726 64,670,773 60,132,563 48,222,849 44,200,317 47,224,287 DEC Revenue 37,482,023 25,073,394 25,073,394 24,545,418 21,024,916 16,788,653 14,291,590 11,539,816 Revenue 238,436,836 $ 222,240,899 $ 226,102,010 $ 231,399,469 $ 226,483,882 $ 218,139,551 $ 219,082,970 $ 221,812,048 $ Planned Use of Reserves

6,987,310

3,365,880

6,494,086

7,097,536 880,759 Total Revenue 238,436,836 $ 229,228,209 $ 229,467,890 $ 231,399,469 $ 226,483,882 $ 224,633,636 $ 226,180,506 $ 222,692,808 $ Expenditures Purchase Power 97,075,122 86,805,525 86,805,525 83,337,505 73,120,996 73,373,821 71,431,779 59,987,656 Transmission of Power 16,997,292 18,616,102 17,911,273 19,182,169 19,375,338 21,806,720 22,551,864 24,202,659 O&M 24,807,387 36,171,482 35,495,229 34,017,180 34,755,466 35,549,812 36,329,840 39,261,705 Cost of Service Transfers 14,730,804 16,844,035 15,701,049 17,250,361 17,720,872 17,210,647 17,715,117 18,234,721 ROI & Franchise Fee 15,371,434 16,062,096 18,825,846 21,813,137 21,640,803 16,340,725 16,601,888 19,112,883 NON DEC Debt Service 36,314,570 37,450,771 37,450,771 38,218,269 41,921,118 43,043,575 44,229,903 44,588,315 DEC Debt 14,330,417 17,278,198 17,278,198 17,285,053 17,294,941 17,308,336 17,320,115 17,304,869 Revenue Funded Capital 16,312,335

Total Expenditures

235,939,361 $ 229,228,209 $ 229,467,890 $ 231,103,674 $ 225,829,533 $ 224,633,636 $ 226,180,506 $ 222,692,808 $ Net Income 2,497,475 $

$
$

295,796 $ 654,350 $

$
$
$

Rate Increase 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Working Capital 254,814,510 18,338,257 18,357,431 18,488,294 18,066,363 17,970,691 18,094,441 17,815,425 Operating Reserve 58,527,551 29,814,378 54,393,365 54,532,008 55,619,848 42,729,970 28,407,757 26,932,899 77,919,827 $ 48,655,053 $ 73,231,035 $ 73,526,830 $ 74,181,180 $ 61,193,009 $ 46,997,936 $ 45,236,417 $ Fund Balance as % of Budgeted Expenses 29.49% 14.60% 26.65% 26.40% 27.16% 20.56% 13.41% 12.76% Rating Agency Debt Coverage Calculation 1.67 1.17 1.30 1.40 1.38 1.16 1.15 1.29

Wrking Cptl/ Op Reserve Target - 60 Days (16%) $37,750,298 $36,676,513 $36,670,663 $36,976,588 $36,132,725 $35,941,382 $36,188,881 $35,630,849 Wrking Cptl/ Op Reserve Target - 75 Days (21%) $49,547,266 $48,137,924 $48,130,246 $48,531,771 $47,424,202 $47,173,064 $47,497,906 $46,765,490

Days of Cash on Hand

121 77 116 116 120 99 76 74

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Water Forecast

2% Rate Decrease
Emphasis of Revenue Funded Capital pertaining to Water Plant

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Wastewater Forecast (Includes Drainage)

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Solid Waste Forecast - Includes Rate Decrease

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Streets Fund - Forecast

Includes $10.6 million in street maintenance and capital funding.

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Recreation Fund - Forecast

FY 2019-20 Adopted FY 2019-20 Estimate Preliminary FY 2020-21 Forecast FY 2021-22 Forecast FY 2022-23 Forecast FY 2023-24 Forecast FY 2024-25 Beginning Fund Balance 384,391 $ 384,391 $ 122,618 $ $ $ $ $ Leisure Services Admin 80,284 27,000 69,406 70,794 72,210 73,654 75,127 Youth and Teen Services 540,484 145,000 405,363 413,470 421,740 430,174 438,778 Recreational Facilities 925,156 249,683 854,515 871,605 889,037 906,818 924,955 Athletics, Drving Range, Tennis 691,324 307,500 518,493 528,863 539,440 550,229 561,233 Other Programs 57,518 16,000 38,952 39,731 40,526 41,336 42,163 Total Resources 2,294,766 $ 745,183 $ 1,886,729 $ 1,924,464 $ 1,962,953 $ 2,002,212 $ 2,042,256 $ Leisure Services Admin 671,297 688,856 727,943 742,502 757,352 772,499 787,949 Youth and Teen Services 867,228 389,474 921,032 939,453 958,242 977,407 996,955 Recreational Facilities 3,562,014 2,276,992 3,563,432 3,566,923 3,638,261 3,711,026 3,785,247 Athletics, Drving Range, Tennis 1,264,433 821,318 1,432,570 1,461,221 1,490,446 1,520,255 1,550,660 Public Relations 419,623 413,470 248,469 253,438 258,507 263,677 268,951 Voluntary Seperation Program (VSP)

41,571

(310,124) (155,062)

Total Expenditures

6,784,595 $ 4,631,680 $ 6,583,322 $ 6,808,475 $ 7,102,808 $ 7,244,864 $ 7,389,761 $ General Fund Transfer 4,228,056 $ 3,624,725 $ 4,573,975 $ 4,884,011 $ 5,139,855 $ 5,242,652 $ 5,347,505 $ Change in Fund Balance (261,773) (261,773) (122,618) Ending Fund Balance 122,618 $ 122,618 $ $ $ $ $ $

August 6, 2020 ID 20-1154

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Tourist and Convention Fund

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PY 2020 Estimate PY 2021 Requests PY 2021 Recommendation Beginning Fund Balance 2,032,613 $ 1,272,352 $ 1,272,352 $ Revenues: Convention Center Hotel 400,000 $ 453,850 $ 453,850 Prior Year Refunds

482,488

482,488 Hotel Revenue - All Others 1,771,723 1,618,926 1,618,926 Total Revenues 2,171,723 $ 2,555,263 $ 2,555,263 $ Expenditures: Sub-total Recipient Expenditures 2,531,984 $ 2,429,140 $ 2,274,680 $ Sub-total Economic Incentive Expenditures 400,000 $ 453,850 $ 453,850 $ Total Expenditures 2,931,984 $ 2,882,990 $ 2,728,530 $ Ending Fund Balance 1,272,352 $ 944,625 $ 1,099,085 $

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Projected Appropriable Fund Balances

Special Revenue, Internal Service Funds Appropriable Fund Balance 9-30-20* FY 2020-21 Revenues FY 2020-21 Expenditures Appropriable Fund Balance 9-30-21* FY 2020-21 Change in Fund Balance

Parks Gas Well $37,370 $20,400 $50,000 $7,770 ($29,600) McKenna Trust Fund $10,145 $7,000 $5,000 $12,145 $0 PEG Fund $1,295,220 $270,000 $440,000 $1,125,220 ($170,000) Parkland Dedication Fund $2,980,673 $425,000 $1,000,000 $2,405,673 ($575,000) Parkland Development Fund $3,387,596 $350,000 $1,000,000 $2,737,596 ($650,000) Technology Services $743,350 $17,522,337 $17,846,554 $419,133 ($324,217) Material Management $10,197 $15,887,415 $15,741,663 $155,949 $0 Fleet Management $207,719 $10,841,200 $10,830,678 $218,241 $0 Risk Retention $1,417,526 $4,111,380 $4,070,378 $1,458,528 $0 Health Insurance $4,966,038 $29,888,100 $30,064,100 $4,790,038 $0 Engineering Services $323,091 $9,487,237 $9,487,237 $323,091 $0

*Estimate August 6, 2020 ID 20-1154

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Projected Appropriable Fund Balances (cont.)

Special Revenue, Internal Service Funds Appropriable Fund Balance 9-30-20* FY 2020-21 Revenues FY 2020-21 Expenditures Appropriable Fund Balance 9-30-21* FY 2020-21 Change in Fund Balance

Street Improvement Fund $3,972,314 $15,302,350 $15,893,757 $3,380,907 ($591,407) Tree Mitigation Fund $804,277 $180,000 $653,100 $331,177 ($473,100) Recreation Fund $122,619 $6,460,704 $6,583,323 $0 ($122,619) Downtown TIRZ $1,106,661 $759,695 $100,000 $1,766,356 $659,695 Westpark TIRZ $446,166 $587,002 $195,734 $837,434 $391,268 Roadway Impact Fee Fund $2,389,244 $3,000,000 $5,000,000 $389,244 ($2,000,000) Police Confiscation Fund $219,257 $0 $80,000 $139,257 ($80,000)

*Estimate August 6, 2020 ID 20-1154

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FY 2020-21 Proposed Budget by Fund $1,347,671,260

General Fund 11% Debt Service Fund 7% Utilities 30% Internal Service Funds 7% Capital Improvement Program 41% Other Funds 4%

August 6, 2020 ID 20-1154

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Next Steps

August 6, 2020 – Budget Workshop (Proposed Budget, Police Department)
August 11, 2020 – Council votes on Max Tax Rate
August 18, 2020 – Follow-up Budget Presentation
September 10, 2020 – Tax Rate and Budget Public Hearing
September 15, 2020 – Budget, CIP, Tax Rate Adoption

August 6, 2020 ID 20-1154

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Questions?

August 6, 2020 ID 20-1154