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HomeMy WebLinkAbout092119 CC Min Budget Workshop The City of West University Place A Neighborhood City CITY COUNCIL STAFF Bob Higley, Mayor David J. Beach, City Manager Kevin Trautner, Mayor Pro Tem Alan Petrov, City Attorney John P. Barnes, Councilmember Thelma Gilliam, City Secretary Lauri Lankford, Councilmember Ed Sobash, Councilmember CITY COUNCIL BUDGET WORKSHOP MINUTES The City Council of the City of West University Place, Texas, met in a workshop on Saturday, September 21, 2019, in the Municipal Building, 3800 University, West University Place. Call to Order. Mayor Higley called the workshop to order at approximately at 9:00 a.m. in the Municipal Building Council Chambers. Council and Staff in attendance were: Mayor Pro Tem Trautner, Councilmembers Barnes, Lankford and Sobash, City Manager Beach, City Secretary Gilliam, Human Resource Director Urban, Finance Director Kalka, Fire Chief Taylor, Interim Public Works Director Barrera, Interim IT Director Dang, Captain Niko, Sergeant Ly, and Treasurer Harrison 1. 2020 Budget Matters related to discussion regarding the City’s annual budget, to include the City finances for all funds, the Community Improvement Program, tax rates, staffing, fees, and revenue and expenditures for all funds. Recommended Action: Discuss the annual budget process and provide staff with feedback and direction as desired. City Manager Beach presented an overview of the 2020 Budget for council to discuss with staff and provide feedback and direction. A copy of the presentation is attached. 2. Adjourn With no further discussion, Mayor Higley adjourned the workshop at 2:04 p.m. Prepared by: Thelma A. Gilliam, TRMC, City Secretary Council Approved: CITY COUNCIL WORKSHOP SEPTEMBER 21, 2019 •Budget Calendar •Property Tax Rate •Budget Summary •General Fund •Debt Service fund •Water & Sewer Fund •Solid Waste Fund •Internal Service Funds •Special Revenue Fund •CIP •Personnel •Fee Schedule 2020 BUDGET WORKSHOP Agenda 2 2020 BUDGET WORKSHOP Budget and Tax Rate Adoption Calendar •Monday, September 23 –Regular Council Meeting •1st Public Hearing on Proposed 2019 Tax Rate •Monday, September 30 –Special Council Meeting •Public Hearing on Proposed 2020 Budget •2nd and Final Public Hearing on Proposed 2019 Tax Rate •Monday, October 7 –Regular Council Meeting •2020 Budget and 2019 Tax Rate Adoption •1st Reading of 2020 Fee Schedule •Monday, October 28 –Regular Council Meeting •2nd and Final Reading of 2020 Fee Schedule 3 2020 BUDGET WORKSHOP 4 West U’s Budget’s Life Cycle: 5 PROPERTY TAX RATE 2020 BUDGET WORKSHOP 6 PROPERTY TAX RATES TAX YEAR 2018 2019 Inc. / (Dec) EFFECTIVE RATE 0.31519 0.30264 (0.01255) ROLLBACK RATE 0.33049 0.31909 (0.01140) ACTUAL PROPOSED MAINT. & OPERATION 0.19277 0.19251 (0.00026) DEBT 0.12403 0.11952 (0.00451) TOTAL RATE 0.31680 0.31203 (0.00477) 2020 BUDGET WORKSHOP AVERAGE TAXABLE VALUE TAXPAYER 7 Tax Year 2018 Tax Year 2019 Tax Year 2019 @ 2018 Actual Rate @ Effective Rate @ Proposed Rate Average taxable value -residence homestead $1,142,858 $1,198,614 $1,198,614 Tax rate per $100 assessed value 0.31680 0.30264 0.31203 Average Annual Tax $3,620.57 $3,627.49 $3,740.04 Average Monthly Tax $301.71 $302.29 $311.67 2019 Proposed VS 2019 Effective 2019 Effective VS 2018 Actual 2019 Proposed VS 2018 Actual Value Increase (Decrease)$55,756 $55,756 Tax Increase (Decrease) from Value $0.00 $168.74 $173.98 Tax Increase (Decrease) from Rate $112.55 -$161.83 -$54.51 Average Taxpayer Annual Tax Increase (Decrease) over 2018 $112.55 $6.91 $119.47 Increase (Decrease) per month $9.38 $0.58 $9.96 % Increase (Decrease) YTY 0.19%3.30% 8 COMBINED SUMMARY REVENUES & EXPENDITURES 2020 BUDGET WORKSHOP COMBINED SUMMARY OF REVENUES, EXPENDITURES AND FUND BALANCE/RETAINED EARNINGS 9 SOURCES Beginning Balance (Estimated)Taxes Licenses, Permits, Fees & Charges for Services Other Total Expenditures and Transfers Out Ending Balance General Fund $ 8,828,468 $ 14,713,216 $ 3,779,000 $ 2,508,150 $ 21,000,366 $ 20,821,185 $ 9,007,649 Debt Service Fund $ 900,585 $ 7,810,741 -$ 1,236,983 $ 9,047,724 $ 9,047,783 $ 900,526 Water and Sewer Fund $ 826,178 -$ 8,002,000 $ 203,900 $ 8,205,900 $ 8,207,283 $ 824,795 Solid Waste Fund $ 449,248 -$ 1,786,200 $ 10,800 $ 1,797,000 $ 1,876,800 $ 369,448 Capital Project Fund $ 879,284 --$ 7,800 $ 7,800 $ 825,000 $ 62,084 2019 CO Fund $ 2,534,669 --$ 37,100 $ 37,100 $ 2,458,169 $ 113,600 Transportation Improvement Fund $ 1,330,613 --$ 64,142,200 $ 64,142,200 $ 62,611,000 $ 2,861,813 Water and Sewer Capital Fund $ 1,471,214 --$ 921,100 $ 921,100 $ 2,219,000 $ 173,314 Employee Benefit Fund $ 1,484,879 --$ 2,736,500 $ 2,736,500 $ 2,826,100 $ 1,395,279 Vehicle Replacement Fund $ 3,236,835 --$ 701,700 $ 701,700 $ 959,000 $ 2,979,535 Technology Management Fund $ 112,409 --$ 1,687,200 $ 1,687,200 $ 1,613,500 $ 186,109 Equipment Replacement Fund $ 2,542,229 --$ 723,700 $ 723,700 $ 181,800 $ 3,084,129 Parks Fund $ 96,254 --$ 51,400 $ 51,400 $ 43,000 $ 104,654 Friends of West U Parks Fund $ 617 -$ 478,000 $ 478,000 $ 478,000 $ 617 Court Technology Fund $ 22,730 --$ 8,000 $ 8,000 $ 2,000 $ 28,730 Tree Replacement Fund $ 269,244 --$ 34,600 $ 34,600 $ 50,000 $ 253,844 Court Security Fund $ 45,779 --$ 8,700 $ 8,700 $ 15,000 $ 39,479 Metro Fund $ 113,351 --$ 592,200 $ 592,200 $ 550,000 $ 155,551 Police State Forfeited Property Fund $ 27,882 --$ 500 $ 500 -$ 28,382 Police Training Fund $ 26,279 --$ 500 $ 500 -$ 26,779 Fire Training Fund $ 1,518 -----$ 1,518 Good Neighbor Fund $ 4,050 ----$ 2,500 $ 1,550 Total All Funds $ 25,204,316 $ 22,523,957 $ 13,567,200 $ 76,091,033 $ 112,182,190 $ 114,787,120 $ 22,599,385 10 GENERAL FUND SUMMARY REVENUES & EXPENDITURES 2020 BUDGET WORKSHOP GENERAL FUND –STATEMENT OF REV. & EXP. 11 GENERAL FUND STATEMENT OF REVENUES AND EXPENDITURES BY DEPARTMENT Actual Actual Budget Estimated Budget 2017 2018 2019 2019 2020 REVENUES: AD VALOREM TAXES $10,897,253 $11,652,747 $11,920,468 $11,873,000 $12,532,716 SALES TAXES 1,064,672 1,172,256 1,110,900 1,184,000 1,184,000 FRANCHISE TAXES 1,159,730 1,128,060 1,085,500 1,074,500 985,500 OTHER TAXES 14,330 13,528 14,000 11,000 11,000 TOTAL TAXES 13,135,984 13,966,591 14,130,868 14,142,500 14,713,216 PERMITS, LICENSES AND FEES 542,903 668,594 527,500 590,150 574,000 CHARGES FOR SERVICES 2,803,900 3,034,958 2,782,800 3,193,225 3,205,000 FINES AND FORFEITURES 172,569 220,610 159,200 216,400 206,400 INVESTMENT EARNINGS 42,852 248,349 213,300 257,200 225,000 OTHER REVENUE 417,977 808,083 425,150 437,500 440,550 TRANSFERS IN 1,751,400 1,530,048 1,702,500 1,702,500 1,636,200 TOTAL REVENUES 18,867,586 20,477,233 19,941,318 20,539,475 21,000,366 EXPENDITURES BY DEPARTMENT: ADMINISTRATION 1,209,075 1,317,355 1,623,685 1,578,950 1,565,010 FINANCE 2,217,546 2,006,284 2,207,500 2,936,680 2,151,275 POLICE 4,575,579 4,554,734 5,177,650 4,604,440 5,323,200 FIRE 3,492,944 3,598,587 3,589,450 3,613,330 3,870,000 PUBLIC WORKS 3,014,672 3,088,900 3,247,150 3,029,195 3,573,700 PARKS & RECREATION 3,597,884 3,698,880 4,056,700 4,126,275 4,338,000 TRANSFERS OUT 500,000 200,000 --- TOTAL EXPENDITURES 18,607,701 18,464,739 19,902,135 19,888,870 20,821,185 NET REVENUES (EXPENDITURES)259,885 2,012,494 39,183 650,605 179,181 BEGINNING FUND BALANCE 5,905,484 6,165,369 7,192,857 8,177,863 8,828,468 ENDING FUND BALANCE 6,165,369 8,177,863 7,232,040 8,828,468 9,007,649 ASSIGNED*119,000 119,000 127,000 197,000 203,000 RESTRICTED**403,747 403,747 439,747 439,747 439,747 UNASSIGNED FUND BALANCE $ 5,642,622 $ 7,655,116 $ 6,665,293 $ 8,191,721 $ 8,364,902 * Assigned for City Manager's Contract ** Restricted for PEG fees 2020 BUDGET WORKSHOP GENERAL FUND –REVENUE BY TYPE 12 AD VALOREM TAXES 59.7% SALES TAXES 5.6% FRANCHISE TAXES 4.7% OTHER TAXES 0.1% PERMITS, LICENSES AND FEES 2.7% CHARGES FOR SERVICES 15.3% FINES AND FORFEITURES 1.0% INVESTMENT EARNINGS 1.1% OTHER REVENUE 2.1%TRANSFERS IN 7.8% 2020 BUDGET WORKSHOP GENERAL FUND-REVENUE –NOTABLE CHANGES 13 TYPE 2019 2020 Inc. / (Dec.)% Diff Cable Franchise Fee 100,000 5,000 (95,000)-95.0% Building Permits 649,000 705,400 56,400 8.7% Alarm Monitoring Fees 700,000 730,000 30,000 4.3% Municipal Court Fees 150,000 200,000 50,000 33.3% Recreation Fees 1,730,900 2,108,200 377,300 21.8% •Sales tax increase due to reducing our conservative estimates •Franchise fee reduction due to recent State legislation •Building permits due to a combination of increased activity & rate increase •Alarm fees due to expected enrollment increase with enhanced functionality •Court fees due to increased activity •Recreation fees due to recent changes with program structure. There is also an increase in instructor fees of $120,100 14 GENERAL FUND EXPENDITURES BY DEPARTMENT 2020 BUDGET WORKSHOP GENERAL FUND –EXPENDITURES BY TYPE 15 PERSONNEL 64.5%INSURANCE 1.2% ELECTRICITY & NATURAL GAS 2.3% VEHICLE REPLACEMENT 1.7% TECHNOLOGY MANAGEMENT 7.2% EQUIP. REPLACEMENT 2.7% MAINTENANCE 3.0%FUEL 0.4% OTHER OPERATING 15.3% TRANSFERS 1.7%CAPITAL 0.5% 2020 BUDGET WORKSHOP ADMINISTRATION –NOTABLE CHANGES 16 OVERALL PERSONNEL COST $ (199,800)(18.07%) Notable Changes Personnel •City Manager Retirement (2019)$ (133,400) •Reclassify Comm. Director to Assistant to the City Manager $ (49,000) •Council foregoing pay $ (12,000) Notable Changes Operations (New) •Annual Strategic Vision & Goal Setting $ 30,000 •Marketing & Communications Firm $ 10,000 •Compensation Study $ 35,000 •Enhanced Communication Initiatives $ 10,000 •Citizens Academy $ 3,000 2020 BUDGET WORKSHOP FINANCE DEPARTMENT –NOTABLE CHANGES 17 OVERALL PERSONNEL COST $ 121,950 17.53% Notable Changes Personnel: •New position -Grants / Purchasing Administrator $ 111,000 •Addition of 3rd Judge on court night $ 5,400 Notable Changes Operations •Reduced cost associated retiree benefits $ (94,200) •Electricity savings -City Hall and streetlights $ (37,800) •Other benefits reduction $ (64,700) 2020 BUDGET WORKSHOP POLICE DEPARTMENT –NOTABLE CHANGES 18 OVERALL PERSONNEL COST (net)$ 77,100 1.79% Notable Changes Personnel •Patrol Officer / Dispatch compensation restructuring $ 97,000 •New position -Crime Prevention / Public Information Officer (DirectLink)$ 109,300 •Elimination of Support Services Manager / Upgrade Police Officer to Sergeant $ (111,500) Notable Changes Operations •DirectLink Marketing $ 30,000 2020 BUDGET WORKSHOP FIRE DEPARTMENT –NOTABLE CHANGES 19 OVERALL PERSONNEL COST $ 288,800 9.93% Notable Changes Personnel •Overtime increase due to paramedic school $ 121,000 •Retirement of a Captain $ 76,000 •Promotion of Firefighter -EMT to Firefighter Paramedic $ 18,000 Notable Changes Operations •Replacement training mankin with upgraded model $ 9,600 2020 BUDGET WORKSHOP PUBLIC WORKS DEPT. –NOTABLE CHANGES 20 OVERALL PERSONNEL COST $ 70,900 4.12% Notable Changes Personnel •New position -Facility Technician $ 79,000 •Public Works Director savings $ (22,000) Notable Changes Operations •New service vehicle for new Facility Technician $ 40,000 •City Engineer services $ 80,000 •Replat City owned property (combine sites into one parcel)$ 20,000 •Increase maintenance for streets and drainage $ 97,000 2020 BUDGET WORKSHOP PUBLIC WORKS DEPT. –NOTABLE CHANGES 21 CONTINUED Notable Changes Projects •Project -Install a new awning over the gas pumps $ 10,000 •Project -Install new pool deck lighting $ 18,000 •Project -Replace City Hall & Recreation Center parking lot lights with energy efficient LED $ 26,000 •Project -Replace HVAC Unit 1 Public Works Admin. Building $ 12,000 2020 BUDGET WORKSHOP PARKS & REC. DEPT. –NOTABLE CHANGES 22 Note: •increase in instructor fees has offsetting revenues of $377,300 •Requested in-kind contribution from Tri-Sports (trash, water, electricity, rentals, etc.) is estimated at $50,000 OVERALL PERSONNEL COST $ 123,400 6.75% Notable Changes Personnel •New position -Program Specialist / Community Engagement $ 90,600 Notable Changes Operations •Increased instructor fees -Recreation Center $ 99,600 •Increased instructor fees -Senior Services $ 20,500 •Parks programming study 5-year review/update $ 6,500 •Senior Services needs assessment/survey $ 10,700 •Electricity savings $ (16,000) •Requested Contribution from Tri-Sports $ 125,000 2020 BUDGET WORKSHOP PARKS & REC. DEPT. –NOTABLE CHANGES 23 CONTINUED Notable Changes Maintenance •Colonial Park Pool -replace check valve $ 4,000 •Colonial Park Pool -replace pump impeller $ 5,400 •Colonial Park Pool -replace EZ strainer $ 5,000 24 DEBT SERVICE FUND 2020 BUDGET WORKSHOP Debt Service Fund 25 •Debt service based on current outstanding debt including the Virtual Gate project –any new debt will increase future year’s debt service •Any decision on issuing new debt in 2020 will not affect the current debt service rate. TAX YEAR 2018 2019 Inc. / (Dec.) Debt Service $ 0.12403 $ 0.11952 $ (0.00451) (3.64%) 2020 BUDGET WORKSHOP GENERAL FUND Outstanding Debt Service General Fund Obligation –Significant Reduction in 2021 26 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 202020212022202320242025202620272028202920302031203220332034Annual Debt Service Requirements Principal Interest 27 WATER & SEWER FUND 2020 BUDGET WORKSHOP WATER & SEWER FUND –REV. & EXP. 28 WATER AND SEWER FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Actual Budget Estimated Budget 2017 2018 2019 2019 2020 REVENUES: FEMA REIMBURSEMENT $ -$ 54,672 $ -$ 22,500 $ - WATER SERVICE 5,021,910 4,837,966 4,900,000 4,810,000 4,932,500 SEWER SERVICE 2,398,041 2,849,955 2,950,000 2,980,000 3,069,500 PENALTIES 53,487 60,405 55,000 62,000 60,000 CONNECTION FEE 62,395 99,850 70,000 88,300 80,000 EARNINGS ON INVESTMENTS 915 3,193 -13,000 12,300 MISCELLANEOUS 9,062 52,591 7,000 4,900 7,000 TRANSFER FROM EMPLOYEE BENEFIT FUND -29,700 --44,600 TOTAL REVENUE 7,545,810 7,988,332 7,982,000 7,980,700 8,205,900 EXPENDITURES BY DEPARTMENT: DEBT SERVICE 1,250,528 1,196,193 1,196,038 1,196,038 1,184,183 FINANCE 278,441 238,800 246,800 239,005 271,700 PUBLIC WORKS 3,976,083 4,154,929 4,291,050 4,151,075 4,601,400 TRANSFER TO GENERAL FUND 1,545,500 1,250,000 1,250,000 1,250,000 1,250,000 TRANSFER TO WATER & SEWER CAPITAL PROJECTS -900,000 900,000 900,000 900,000 TOTAL EXPENDITURES 7,050,552 7,739,923 7,883,888 7,736,118 8,207,283 NET REVENUES (EXPENDITURES)495,257 248,410 98,112 244,582 (1,383) BEGINNING WORKING CAPITAL 76,163 333,186 779,995 581,596 826,178 ENDING WORKING CAPITAL $ 571,420 $ 581,596 $ 878,107 $ 826,178 $ 824,795 2020 BUDGET WORKSHOP WATER & SEWER FUND –EXPEND. BY TYPE 29 PERSONNEL 15.46%EQUIP., VEHICLE, BLDG. & GROUNDS MAINT. 1.12% WATER SYSTEM MAINTENANCE 2.41% SEWER SYSTEM MAINTENANCE 2.07% ELECTRIC SERVICE 4.51% SURFACE WATER 18.64% VEHICLE REPLACEMENT 1.11% TRANSFER TO GENERAL FUND 15.23% TRANSFER TO W&S CAPITAL RESERVE FUND 10.97% VEHICLE REPLACEMENT 1.12% TECHNOLOGY MANAGEMENT 1.06% OTHER OPERATING 12.98% 2020 BUDGET WORKSHOP WATER & SEWER FUND–NOTABLE CHANGES 30 OVERALL PERSONNEL COST $ 69,950 5.84% Notable Changes Personnel •Retirement of a Crew Leader $ 44,600 Notable Changes Operations •New -XFR of funds to Equipment Replacement Fund (W&S equip.)$ 86,900 •Electricity savings $ (80,000) •Increase water system maintenance (prev. amount $160,000)$ 198,000 •Increase sewer system maintenance (prev. amount $151,000)$ 170,000 •City Engineer services increase (prev. amount $25,000)$ 50,000 2020 BUDGET WORKSHOP WATER & SEWER FUND 31 CONTINUED Notable Changes Projects •Project cost increase (prev. amount $80,000)$ 165,000 Replace sludge line in Clarifier #1 -$25,000 Replace discharge line in lift station #2 -$25,000 Remove grit from WWTP digester basin -$115,000 •Wastewater treatment plant & equipment (Prev. amount $58,500)$ 101,000 Install new catwalk for employee safety during the cleaning process -$40,000 Replace SCADA equipment -$25,000 Purchase Dissolve Oxygen PH and solid monitoring probes -$10,000 Purchase camera for inspection of 45 degree turns in lateral sewer lines -$10,000 Replace two lift stations pumps -$16,000 2020 BUDGET WORKSHOP WATER & SEWER FUND 32 WATER &SEWER RATES Notable Changes Rates Rate increase –water (avg.monthly bill)$ 1.86 2.32% Rate increase –sewer (avg. monthly bill)$ 1.73 2.76% TOTAL AVG. MOS. RATE INCREASE: $ 3.59 Based upon the average customer usage of 13,482 gallons per month,the average bill would increase $3.59 per month or $43.08 per year.Customers using more or less water each month will experience less or more than the average increase. Rate Increases: •Water rates were last raised in April 2016 •Sewer rates were last raised in July 2018 2020 BUDGET WORKSHOP WATER & SEWER FUND Outstanding Debt Service Water & Sewer Fund –Significant Reduction in 2023 33 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2020202120222023Water & Sewer Annual Debt Service Requirements Principal Interest 34 SOLID WASTE FUND 2020 BUDGET WORKSHOP SOLID WASTE FUND 35 SOLID WASTE FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Actual Budget Estimated Budget 2017 2018 2019 2019 2020 REVENUES FEMA REIMBURSEMENT $ -$ 19,873 $ -$ -$ - SOLID WASTE COLLECTION 1,729,184 1,750,275 1,752,000 1,735,300 1,785,700 SOLID WASTE SPECIAL COLLECTION 100 500 500 2,000 500 SALE OF RECYCLABLES 12,876 2,319 --- EARNINGS ON INVESTMENTS 3,292 9,638 7,900 10,700 10,200 MISCELLANEOUS 39,881 10,348 600 700 600 TOTAL REVENUE 1,785,333 1,792,954 1,761,000 1,748,700 1,797,000 EXPENDITURES BY DIVISION CURBSIDE SOLID WASTE 940,481 980,557 953,600 966,940 971,800 RECYCLING FACILITY 7,356 ---- CURBSIDE RECYCLING 291,184 340,477 365,800 373,625 395,100 CURBSIDE GREEN WASTE RECYCLING 153,562 167,587 191,700 192,025 199,900 TRANSFER TO GENERAL FUND 59,400 260,000 310,000 260,000 310,000 TOTAL EXPENDITURES 1,451,983 1,748,622 1,821,100 1,792,590 1,876,800 NET REVENUES (EXPENDITURES)333,350 44,332 (60,100)(43,890)(79,800) BEGINNING WORKING CAPITAL 209,278 448,806 555,092 493,138 449,248 ENDING WORKING CAPITAL $ 542,628 $ 493,138 $ 494,992 $ 449,248 $ 369,448 working capital days 136 103 99 91 72 Working Capital Days 136 103 99 91 72 Reserve for unexpected revenue shortfalls (10% of current revenue estimates)178,533 179,295 176,100 174,870 179,700 Over(under) reserve requirement 364,095 313,843 318,892 274,378 189,748 2020 BUDGET WORKSHOP SOLID WASTE FUND 36 Rate Increase: •Solid waste rates last raised in Jan. 2016 OVERALL PERSONNEL COST $ 21,300 4.32% Notable Changes Personnel None Notable Changes Operations Recycling disposal/processing fee increased (prev. amount $100,00)$120,000 Contract labor cost decreased (prev. amount $144,000)$140,000 Notable Changes Rates Monthly Annual Rate increase -Regular $ 1.70 $ 20.40 5.00% Rate Increase -Senior Discount $ 0.87 $ 10.44 5.00% 2020 BUDGET WORKSHOP SOLID WASTE FUND –EXPEND. BY FUNCTION 37 CURBSIDE SOLID WASTE 51.78% CURBSIDE RECYCLING 21.05% CURBSIDE GREEN WASTE RECYCLING 10.65%TRANSFER TO GENERAL FUND 16.52% 2020 BUDGET WORKSHOP SOLID WASTE FUND –EXPEND. BY TYPE 38 PERSONNEL 28.33% SOLID WASTE DISPOSAL FEE 17.52% LANDFILL MAINTENANCE 0.66%OTHER CONTRACTED SERVICES 15.70% TRANSFER TO GENERAL FUND 17.08% VEHICLE REPLACEMENT 11.84% TECHNOLOGY MANAGEMENT 2.43% COMMUNITY RELATIONS 1.16% OTHER OPERATING 5.29% 39 INTERNAL SERVICE FUNDS 2020 BUDGET WORKSHOP INTERNAL SERVICE FUNDS VEHICLE REPLACEMENT FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Actual Budget Estimated Budget 2017 2018 2019 2019 2020 TOTAL REVENUES 627,769 737,090 682,300 712,850 701,700 TOTAL EXPENDITURES 37,457 70,467 206,000 394,600 959,000 BEGINNING FUND BALANCE 1,661,650 2,251,961 2,367,761 2,918,585 3,236,835 ENDING FUND BALANCE $ 2,251,961 $ 2,918,585 $ 2,844,061 $ 3,236,835 $ 2,979,535 40 2020 BUDGET WORKSHOP INTERNAL SERVICE FUNDS 41 VEHICLE REPLACEMENT FUND 2020 PURCHASES $ 959,000 2020 REPLACEMENTS •Purchase Fire Pumper $ 750,000 •Purchase Fire Marshal / Backup Command Vehicle (1/2 ton truck)$ 32,000 •Purchase Animal Control / Code Enforcement Vehicles ( 1/2 truck or van)$ 56,000 •Purchase Building Inspector Vehicle (Small SUV)$ 27,000 •Purchase Water & Sewer Service Vehicle (1/2 ton truck)$ 30,000 •Purchase Public Works Service Vehicle (1/2 ton truck)$ 30,000 •Purchase Hydro Pack (water & sewer) $ 9,000 •Purchase Additional High Water Vehicle $ 25,000 2020 BUDGET WORKSHOP INTERNAL SERVICE FUNDS 42 TECHNOLOGY MANAGEMENT FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Actual Budget Estimated Budget 2017 2018 2019 2019 2020 TOTAL REVENUES 1,476,741 1,607,428 1,621,300 1,624,100 1,687,200 PERSONNEL 601,387 665,182 592,700 633,345 535,000 OPERATIONS 860,586 801,414 964,800 997,020 1,078,500 TOTAL EXPENDITURES 1,461,973 1,466,596 1,557,500 1,630,365 1,613,500 BEGINNING FUND BALANCE*28 (22,157)74,302 118,674 112,409 ENDING FUND BALANCE $ 14,796 $ 118,674 $ 138,102 $ 112,409 $ 186,109 *2018 beginning fund balance reflects a prior period audit adjustment 2020 BUDGET WORKSHOP INTERNAL SERVICE FUNDS 43 OVERALL PERSONNEL COST $ (57,700)(9.74%) Notable Changes Personnel •Reclassify IT Operations Manager to IT Analyst $ (31,000) •Retired IT Director savings $ (41,000) Notable Changes Operations •New -transfer to Equipment Replacement Fund $ 20,000 •New-Hardware & software maintenance contracts $ 21,400 Office 365 webhosted service -$15,000 Neogov Onboarding /Offboarding -6,400 •New -Other contracted services -contracts $ 38,300 Secureworks penetration test -$12,300 Secureworks vulnerability test -$26,000 2020 BUDGET WORKSHOP INTERNAL SERVICE FUNDS 44 EQUIPMENT REPLACEMENT FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Actual Budget Estimated Budget 2017 2018 2019 2019 2020 TOTAL REVENUES 878,968 698,011 613,600 625,100 723,700 TOTAL EXPENDITURES 86,749 400,927 257,800 213,000 181,800 BEGINNING FUND BALANCE 1,040,826 1,833,045 2,130,129 2,130,129 2,542,229 ENDING FUND BALANCE $ 1,833,045 $ 2,130,129 $ 2,485,929 $ 2,542,229 $ 3,084,129 Possible Renaming of Fund: This fund provides monies for the replacement of more than just equipment. Considering changing name to Asset Replacement Fund in 2020. 2020 BUDGET WORKSHOP INTERNAL SERVICE FUNDS 45 EQUIPMENT REPLACEMENT FUND 2020 PURCHASES $ 181,800 2020 PURCHASES •Re-plaster Colonial Park Pool $ 117,500 •Replace two water pumps -City Hall chiller $ 11,000 •Recreation Center equipment -recumbent bike $ 5,900 •Recreation Center equipment -fixed arm elliptical $ 6,700 •Recreation Center equipment -two treadmills $ 18,800 •Colonial Park Pool equipment -umbrellas $ 5,900 •Colonial Park Pool equipment -chaise lounges $ 16,000 2020 BUDGET WORKSHOP INTERNAL SERVICE FUNDS 46 EMPLOYEE BENEFITS FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Actual Budget Estimated Budget 2017 2018 2019 2019 2020 TOTAL REVENUES 2,496,751 2,344,461 2,652,500 2,471,050 2,736,500 TOTAL EXPENDITURES 2,315,156 2,076,303 2,716,100 2,522,100 2,826,100 BEGINNING FUND BALANCE 1,086,176 1,267,771 1,183,721 1,535,929 1,484,879 ENDING FUND BALANCE $ 1,267,771 $ 1,535,929 $ 1,120,121 $ 1,484,879 $ 1,395,279 2020 BUDGET WORKSHOP INTERNAL SERVICE FUNDS 47 EMPLOYEE BENEFITS FUND NOTABLE CHANGES •Transfer to General Fund for known retirement $ 76,200 •Transfer to Water & Sewer Fund for known retirement $ 44,600 •Health insurance experienced a 2% rate reduction $ (217,000) •Health insurance plan restructuring and HSA contribution $ 225,000 •Dental insurance rate increased by 24%$ 24,600 •Oct. 1, 2020 Insurance Budget (final 3 months of fiscal year) 10%$ 37,900 •New -required Hepatitis B test & shot $ 2,850 •New -job recruitment using online services $ 2,000 •New -incentive program for employees $ 5,000 Note In order to get health related benefits on a calendar year, the City will issue an RFP for dental & vision and request a rate pass from our medical insurance provider 48 SPECIAL REVENUE FUNDS 2020 BUDGET WORKSHOP SPECIAL REVENUE FUNDS 49 PARKS DONATION FUND $ 43,000 NOTABLE CHANGES PROJECTS & EQUIPMENT •Wier basketball players $ 10,000 •Colonial Park -stain east end decks $ 18,000 •Recreation Center -stretch room equipment / flooring $ 5,000 •Recreation Center -pool furniture replacement $ 5,000 •Community Building & Scout House -water boltle fillers $ 5,000 FRIENDS OF WEST U PARKS FUNDS $ 478,000 NOTABLE CHANGES PROJECTS •Colonial Park Pool -water features $ 215,000 •Colonial Park -east redevelopment $ 263,000 2020 BUDGET WORKSHOP SPECIAL REVENUE FUNDS 50 TREE REPLACEMENT FUND $ 50,000 NOTABLE CHANGES PROJECTS •Tree Planting Program (prev. amount $35,000)$ 50,000 COURT TECHNOLOGY FUND $ 2,000 NOTABLE CHANGES PROJECTS •Replace laptop computer $ 2,000 COURT SECURITY FUND $ 3,500 NOTABLE CHANGES PROJECTS •Add third bailiff for court night $ 3,500 2020 BUDGET WORKSHOP SPECIAL REVENUE FUNDS 51 METRO FUND $ 550,000 NOTABLE CHANGES PROJECTS •Transfer to Transportation Improvement Fund (CIP)$ 550,000 52 2020-2024 COMMUNITY IMPROVEMENT PROGRAM (CIP) 2020 BUDGET WORKSHOP COMMUNITY IMPROVEMENT PROGRAM (CIP) 53 PROJECTS FUNDED WITH EXISTING RESOURCES (PAYG)Funding Source 2020 Proposed Budget Sept. 17 Workshop Bridge Management Plan Cash General Fund $ 65,000 $ 65,000 Storm Water Management Program Cash General Fund $ 100,000 $ 100,000 Citywide Facilities Master Plan Cash General Fund $ 75,000 $ 75,000 City Hall Audio/Video Upgrades Cash General Fund $ 110,000 $ 110,000 Shared Drainage System Federal Funds $ 1,600,000 $ 1,600,000 Alternative Stormwater Detention Options Feasibility Study METRO Funds $ 50,000 $ 50,000 Virtual Gate Previous CO's Issued $ 2,458,169 $ 2,458,169 Water Pumping & Storage Study Cash Water & Sewer Fund $ 150,000 $ 150,000 Water Line Replacement Program Cash Water & Sewer Fund $ 250,000 $ 250,000 WWTP Clarifier Automation Cash Water & Sewer Fund $ 200,000 $ 200,000 SCADA Water System Replacement Cash Water & Sewer Fund $ 95,000 $ 95,000 Reclamation Feasibility Study Cash Water & Sewer Fund $ 50,000 $ 50,000 Flow Meter Replacement/Installation Cash Water & Sewer Fund $ 110,000 $ 110,000 Booster Pump Replacement Cash Water & Sewer Fund $ 200,000 $ 200,000 WWTP Gate Replacement Cash Water & Sewer Fund $ 120,000 $ 120,000 WWTP Floodwater Protection Study Cash Water & Sewer Fund $ 75,000 $ 75,000 WWTP Inflow and Infiltration Study Cash Water & Sewer Fund $ 90,000 $ 90,000 2020 BUDGET WORKSHOP COMMUNITY IMPROVEMENT PROGRAM (CIP) 54 DEBT SERVICE PROJECTS Funding Source 2020 Proposed Budget Sept. 17 Workshop Buffalo Speedway Road & Drainage Improvements* Certificate of Obligation, and/or Federal Funds $ 32,600,000 $ 32,600,000 *Previous approved amount of $2.4 million PROJECTS NEEDING FURTHER DISCUSSION Funding Source 2020 Proposed Budget Sept. 17 Workshop Drainage and Street Improvements -Areas 1, 2 and 3 General Obligation $ 28,000,000 ? Sidewalk Management Plan Cash General Fund $ 475,000 ? 55 PERSONNEL 2020 BUDGET WORKSHOP OVERVIEW PERSONNEL COSTS 56 2019 Budget 2020 Budget Change % Change (in millions) Compensation $10.889 $11.155 $0.267 2.45% Benefits 4.494 4.597 0.103 2.28% Total $15.383 $15.752 $0.369 2.40% 2020 BUDGET WORKSHOP OVERVIEW PERSONNEL COSTS 57 Notable Changes •New -compensation study -$35,000 •TMRS funding rate up slightly from 13.03% 13.07% •Police Officer and Dispatcher modification that kept the midpoint of the salary range mid- point the same, but compresses the range. Our currently starting salary is now higher than our neighbors. Estimated cost $97,000 •Annual Merit Increase -employees on average can earn up to 3% on their anniversary date with an additional 1.5% for a total of 4.5% for exceptional performance. Est. Cost $225,000 2020 BUDGET WORKSHOP OVERVIEW PERSONNEL 58 Public Works Reorganization EXISTING ORGANIZATIONAL CHART 2020 BUDGET WORKSHOP OVERVIEW PERSONNEL 59 Public Works Reorganization RESTRUCTURED ORGANIZATIONAL CHART 2020 BUDGET WORKSHOP 60 City Staffing 2004 –2020 Full-Time Equivalent (FTE) Position Summary DEPARTMENT 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 GENERAL FUND Administration 4 5 4 4 4 5 5 5 5 5 5 6 6 5 6 6 6 Finance 9 9 8 8 8 7 7 6 6 6 5 5 5 5 5 5 6 Police 33 32 32 32 32 32 32 33 35 35 35 35 35 38 38 38 38 Fire 24 25 25 24 24 24 24 23 23 23 23 23 23 23 23 23 23 Public Works 21 21 21 20 19 19 21 20 20 20 19 18 18 18 18 18 19 Parks & Recreation 8 8 8 10 10 10 11 11 11 11 11 12 12 12 12 12 13 TECHNOLOGY MANAGEMENT FUND Administration ---2 3 3 3 3 3 3 3 4 4 4 4 4 4 WATER & SEWER FUND Finance –Utilities -------2 2 2 2 2 2 2 2 2 2 Operations 14 14 14 14 12 12 12 12 12 12 12 12 11 11 11 11 11 SOLID WASTE FUND Operations 7 7 7 7 7 7 7 8 8 8 6 6 7 7 7 7 7 Total City FTE's 120 121 119 121 119 119 122 123 125 125 121 123 123 125 126 126 129 2020 BUDGET WORKSHOP OVERVIEW PERSONNEL 61 2019 POSITION RESTRUCTURE EST. COST CURRENT NEW DEPT Inc. / (Dec) Communications Director Assistant to the City Manager Admin $ (49,000) IT Operations Manager IT Analyst IT $ (31,000) 2019 POSITION RESTRUCTURE EST. COST CURRENT NEW Inc. / (Dec) Support Services Manager Crime Prevention / Public Information Officer Police $ 15,000 Total cost of reclassified position 110,000,but only is approximately a $15,000 increase over 2019’s budget.In 2018,a patrol officer was upgraded to sergeant to replace this position after the 2019 budget was approved One-Time Cost: •Crime Prev./PIO -$11,300 (police equipment,weapon,office equipment) •Assistant to the CM &IT Analyst (minimal cost) 2020 BUDGET WORKSHOP OVERVIEW PERSONNEL 62 Salary savings from downgrading the Communication Director and IT Operations Manager positions,as well as,the expected filling of the vacant IT Director’s position at a lower level provided funding for the entire cost of the Program Specialist and approximately a 1/3 of the proposed Grants/Purchasing Administrator 2019 PROPOSED ADDITION (Requesting Council Approval)DEPT EST. COST Program Specialist (Community Engagement / Events)Parks $ 98,000 2020 PROPOSED ADDITIONS (Requesting Council Approval)DEPT EST. COST Grants / Purchasing Administrator Finance $ 111,000 Facilities Technician Public Works $ 79,000 One-Time Cost: •Program Specialist -$4,300 (office &misc.equipment,desk &chair) •Grants/Purchasing -$800 (office equipment &chair) •Facilities Tech -$42,500 (vehicle,equipment,computer,desk &chair) 63 2020 PROPOSED FEE SCHEDULE 2020 BUDGET WORKSHOP 64 Increase -Solid Waste Rates Monthly Annual Rate increase -Regular $ 1.70 $ 20.40 5.00% Rate Increase -Senior Discount $ 0.87 $ 10.44 5.00% Increase -Water & Sewer Rates Rate increase –water (avg.monthly bill)$ 1.86 $ 22.32 2.32% Rate increase –sewer (avg. monthly bill)$ 1.73 $ 20.76 2.76% PROPOSED INCREASE IN FEES •Six drugs were increased to cover our cost See Fee Schedule •Increases in contractor registration & permit application fee See Fee Schedule •Construction permits increased $.05 / sq. ft.$60 / sq. ft. •Water meter connection & service increased $200 on all size Amount varies by size -see Fee Schedule •Water meter replacement charges increased to cover cost Amount varies by size -see Fee Schedule Water &Sewer rate increase based upon the average customer usage of 13,482 gallons per month,the average bill would increase $3.59 per month or $43.08 per year.Customers using more or less water each month will experience less or more than the average increase.