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HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 11/19/2013 1V Tr IN.s1 1...nu Kent City Council Workshop November 19, 2013 The meeting was called to order at 5:01 p.m. by Council President Dennis Higgins. Councilmembers present: Higgins, Boyce, Thomas, Perry, and Ralph. Councilmember Albertson was expected to attend and Councilmember Ranniger was excused. 2013-2014 Biennial Budget Adjustments. Tom Brubaker Interim Chief Administrative Officer introduced the item and discussed the schedule of events. Mayor Cooke comunicated that the City is almost halfway through the biennial budget and that this is the first two-year budget the City has ever had. She said the 2013- 2014 budget was adopted at the end of 2012 and that this is to ensure the budget is still on track. The City is in negotiations with two unions, she said, but one, the Kent Police Officers Association (KPOA) has agreed to terms and those adjustments are reflected in the budget adjustments. She communicated that some revisions are required by the Affordable Care Act in 2014 and will be seen in 2015. She said the economy is beginning to rebound and permit demand has increased causing the need for staff additions. There are also some public safety concerns that will be addressed and at some point the State may discontinue the $5 million streamlined sales tax (SST) mitigation which will cause a hit to the City's budget. She also communicated that the City wants to explore how to increase its retail options base. Brubaker communicated that the 2014 Budget is built upon continued revenue streams such as utility taxes. He communicated how the internal utility tax is broken down. He noted that the budget, as enacted for the 2013-2014 biennium, assumes that the City will continue funding the same City services as it did in 2013, including a utility rate increase, and funds the Capital Improvement Program (CIP). He also noted that there is $9.5 million going to water, sewer, and storm drainage projects throughout the City. He warned that although there is some good news with the budget, the debt still needs to go down, and there are unmet needs on our roads and parks. He added that the City still has a long way to go and needs to be careful on what is done with the funds. Councilmember Albertson arrived at 5:13 p.m. Bob Nachlinger, Finance Director highlighted that the general fund balance will have achieved the 10% reserve target by the end of the year. He also noted that the Contigency for Unanticipated Costs will be fully funded at $1,500,000, and the Strategic Opportunities Fund will receive its first funding. He stated that the City has paid down both internal and external debt and the total governmental funds balance has grown by $34.5 million over the past three years. He noted the specifics of the general fund, bonded debt, internal debt, and the governmental fund balances. He also reviewed the annual principal and interest. 1 Kent City Council Workshop Minutes November 19, 2013 Nachlinger communicated that there are two parts to the internal debt; unstructured and structured. He communicated that the structured debt pertains to the ShoWare operating fund which is $500,000 per year from the general fund and $1 million annually for the capital projects fund. He further stated that unstructured debt started at $14.85 million, including $2.5 million for the golf fund. He said that his estimate is that the City will reduce it by $4.5 million in 2013 and it will be reduced by $4 million per year thereafter. He communicated that the City wants to pay back the unstructured debt as soon as possible to show it is responsible with its debts. Councilmember Perry questioned Brubaker whether fire hydrants and street lights were being paid for out of the general fund. Brubaker clarified that there was a 4% internal utility tax to supplement the general fund so it wasn't burdened by the street light and hydrant costs. Due to a recent change in law, the water utility will once again cover the cost of providing water hydrants, and to the extent fire hydrant or street light costs from the general fund are freed up, those funds will go towards IT and streets. However, because $6 or $7 million is still owed in unstructured debt, all excess money from those revenues are being directed to pay down capital debt. Mayor Cooke confirmed that the funds were to be allocated to streets and technology after it is applied to debt. Brubaker read the Code language concerning the payments. Nachlinger discussed the governmental funds total fund balances. He noted that the total fund balances started off in 2011 at a negative $14 million and now it is estimated to be $20 million in 2014.. He added that the City's rating was lowered by Standard and Poor's in 2011 and the fund balance needs to be around $30 million to improve its rating. Brubaker pointed out that the City is required to separate annexation funds when reporting in the budget and it is included in this general fund document. The City, he said, is fully funding the Contingency for Unanticipated Costs fund and adding $458,690 into the Strategic Opportunities Fund at the end of this year. Nachlinger communicated that in 2014 the adopted general fund budget total for revenues is $75.7 million. At the August 28 Council workshop meeting, he added, the Council authorized an additional $385,000 which equates to a budget of $78.1 million dollars. The approved expenditure budget was a little over $74 million and there are negative $601,000 in refinements. He noted that after all the adjustments, the ending fund balance is just over $10 million. Brubaker summarized that after all the end of year allocations, current projections show that the Council may have a remaining balance of $1.4 million to allocate. However, there are labor negotiations, debt to pay, and other items the funds still need to be allocated to. Councilmember Albertson confirmed with Nachlinger that the cost allocation budget line reflects the amount of general fund services that are spread out among other funds. 2 Kent City Council Workshop Minutes November 19, 2013 Brubaker communicated the specific staffing adjustments to the budget and noted that some staff adjustments are intended to mitigate anticipated costs caused by compliance with the affordable healthcare act. Councilmember Boyce discussed the ability of the criminal justice fund to absorb, on an annual ongoing basis, the cost of adding two additional police officers from that fund. Brubaker communicated that it was sustainable and that there is enough room in the fund to hire two more police officers. Councilmember Ralph communicated that there were six positions frozen in the criminal justice fund and verified that two would be unfrozen. Brubaker continued and discussed Public Works and their refinements. Councilmember Boyce communicated that there aren't enough police officers and will be advocating for the hiring of at least six more police officers in the future. Councilmember Perry communicated that she is very concerned about the application of utility tax receipts and Nachlinger said he will bring more information at the next workshop. Councilmember Thomas communicated that he agreed with Councilmember Boyce on adding more officers. Council President Higgins said he would like to see information on adding transit (ORCA card) passes. Councilmember Ralph suggested looking at the two union labor contracts that are still out there and also seeking additional support for the police department. Councilmember Albertson said the water, sewer, and storm drainage items need to be reviewed. She said the rates are already high and wondered if the Council needs to look at the 5% increase closer. Council President Higgins said he would follow up with staff, and encouraged them to work with Brubaker on getting their questions answered. Brubaker communicated that the labor contract hasn't been concluded, which would cause additional drawdown on the budget and that the $1.4 milliion is "one-time" money and isn't sustainable year after year. He stated that there is tremendous unmet need in the City. The meeting adjourned at 6:43 p.m. ( J J Ronald F. core, MMC City Clerk 3 Council Workshop 11/19/2013 2014 Mid-Biennium Expenditure Adjustment Adopted vs. Proposed Budget by Fund 2014 Adopted 2014 Proposed Expenditures Expenditures Variance % Change Page # Unchanged Funds LEOFF 1 Retiree Benefit Fund 1,184,337 1,184,337 - 0.0% Lodging Tax 178,500 178,500 - 0.0% Youth Teen 898,524 898,524 - 0.0% ShoWare Operating Fund * 820,200 520,200 (300,000) -36.6% Special Assessment 2,502,519 2,502,519 - 0.0% Street Capital Projects 4,700,000 4,700,000 - 0.0% Parks Capital Projects * 510,000 810,000 300,000 58.8% Technology Capital Projects 1,247,808 1,247,808 - 0.0% Central Services - Central Stores 518,406 518,406 - 0.0% * ShoWare Lifecycle project re-classified from ShoWare Operating Fund to Parks Capital Projects Fund, due to new reporting standards from the Governmental Accounting Standards Board (GASB). Refinements Only (see page 22 for details) Street Operating 9,625,185 9,573,391 (51,794) -0.5% 3 Capital Improvement 10,599,674 10,565,195 (34,479) -0.3% 4-5 Community Block Grant 748,000 914,499 166,499 22.3% 6 Debt Service Funds 10,053,059 9,965,140 (87,919) -0.9% 7 Golf Complex 3,106,588 3,112,768 6,180 0.2% 8 Fleet Services 3,707,872 3,740,708 32,836 0.9% 9 Facilities Fund 5,092,307 5,067,496 (24,811) -0.5% 10 Insurance Funds 16,214,708 16,062,826 (151,882) -0.9% 11-15 Utility Funds Water Operating 18,236,351 18,257,158 20,807 0.1% 16 Sewerage Operating 40,370,473 40,400,398 29,925 0.1% 17 Other Funds Criminal Justice 2,553,781 2,863,414 309,633 12.1% 18 Central Services - Info Tech 6,145,148 6,501,736 356,588 5.8% 19 General Fund, including Annexation 74,051,547 74,665,708 614,161 0.8% 20-21 Total Gross Expenditure Budget 213,064,987 214,250,731 1,185,744 0.6% See page 22 for a detailed list of the 2014 Proposed Expenditures Budget Adjustments. This Page Intentionally Left Blank Street Operating Fund Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE 3551417 275,044 237,517 424,441 Revenues Fuel Tax - Unrestricted 1,865,667 1,886,725 1,905,592 B & O Tax 4,700,000 4,700,000 Water 162,924 167,414 172,436 Sewer 223,450 231,245 238,182 Drainage 165,087 173,236 178,433 Electric 1,088,861 1,119,842 1,131,040 Gas 350,459 393,959 397,899 Garbage 156,016 205,866 207,925 Telephone 710,882 669,929 669,929 Miscellaneous Revenue (47,995) 70 70 Total Revenues 4,675,351 9,548,286 9,601,506 9,601,506 Expenditures and Transfers Debt Service PW Trust Fund Loan 797,200 827,069 789,798 LTGO Bonds 2000 28,775 LTGO Bonds 2002 553,692 GO Refund (96) 2004 136,393 139,507 151,089 GO Refund 2005 (93,95,00,96TF) 37,789 114,714 112,485 LTGO Bonds 2008 487,066 466,921 472,025 LTGO Bonds 2009 207,213 207,107 207,637 GO Refund 2012 (2000/2002) 253,557 600,023 800,283 Total Debt Service 2,501,685 2,355,341 2,533,317 2,533,317 Operating Costs Street Utility Operations 1,805,094 1,674,419 1,697,543 Street Tree Maintenance Program 196,017 267,968 274,145 Engineering Services Allocation 264,546 265,180 265,180 Total Operating Expenditures 2,265,657 2,207,567 2,236,868 2,236,868 Projects Street Overlays and Materials 4,550,000 4,700,000 Street Light Repair 150,000 Metro Transit Services 155,000 155,000 155,000 Closed and Other Projects (166,618) Total Projects (11,618) 4,855,000 4,855,000 4,855,000 2014 Proposed Adjustments Refinements -'Debt Services (53,440) Refinements Salaries &Benefits 1,646 Total Expenditures &Transfers 4,755,724 9,417,908 9,625,185 9,573,391 Net Revenues less Expenditures (80,373) 130,378 (23,679) 28,115 ENDING FUND BALANCE 275,045 405,422 213,838 452,556 Council Workshop 11/19/2013 Page 3 Capital Improvement Fund Fund Summary 2012 2013 2014 2014 Actuals Adj Budget Adopted Adjustments BEGINNING FUND BALANCE (12,052,614) (11,082,376) (6,677,326) (7,055,821) Revenues Sales Tax 4,608,055 4,340,469 4,405,576 Utility Tax 1,171,672 1,218,674 Real Estate Excise Tax 1,644,785 1,142,799 1,398,819 Real Estate Excise Tax - 2nd Qtr % 1,644,785 1,142,799 1,398,819 Real Estate Excise Tax - State 258,392 Miscellaneous Revenues 2,135 3,939 3,978 Transfer In - General Fund ** 2,201,772 2,193,787 2,259,600 Transfer In - Facilities 260,000 Sale of Property 198,526 6,000,000 Subtotal - Adopted Budget 10,818,451 15,995,465 10,685,466 10,685,466 Adjustments (approved at 8/20 Council Workshop) 76 j,374 Sale of Property (3,500,000) 3,500,000 Total Revenues 10,818,451 12,495,465 10,685,466 14,954,840 Expenditures and Transfers Debt Service Non-Voted Debt Service 6,820 1,171,672 1,218,674 LTGO Bonds 2000 76,575 Valley Communications 170,910 240,880 229,280 LTGO Bonds 2002 434,733 LTGO /Taxable Bonds 2003 667,274 666,340 186,491 GO Refund (96) 2004 1,447,831 1,480,875 1,603,821 GO Refund 2005 (93,95,00,96TF) 63,112 191,579 187,857 LTGO Bonds 2006 770,000 758,000 1,246,000 LTGO Bonds 2008 1,412,334 1,306,679 1,324,575 GO Refund 2009 (Part 1999) 721,641 721,268 723,120 GO Refund 2012 (2000/2002) 350,111 747,257 679,856 ShoWare Debt Service 2,764,025 2,500,000 2,400,000 Water Fund Loan Payoff 366,660 Subtotal Debt Service 9,252,026 9,784,550 9,799,674 9,799,674 Facilities Projects 260,000 Technology Projects 120,000 Parks Projects Adopt-a-Park Program 23,602 Eagle Scout Projects 23,159 ShoWare Lifecycle 300,000 300,000 300,000 Park Lifecycle Program 400,000 178,991 500,000 Urban Forestry Plan 15,000 24,248 Closed and Other REET Projects (738) Subtotal Parks Projects 714,262 550,000 800,000 800,000 Closed &Other Projects (498,076) (30,197) Council Workshop 11/19/2013 Page 4 Capital Improvement Fund Fund Summary 2012 2013 2014 2014 Actuals Adj Budget Adopted Adjustments 2014 Proposed Adjustments Refinements - Debt Service (34,479)' Total Expenditures &Transfers 9,848,212 10,304,353 10,599,674 10,565,195 Net Revenues less Expenditures 970,239 2,191,112 85,792 4,389,645 Capital Reserves 250,000 500,000 500,000 Unreserved (9,141,264) (7,091,534) (3,166,176) ENDING FUND BALANCE (11,082,375) (8,891,264) (6,591,534) (2,666,176) ** Per Ordinance #4020 passed on 12/13/2011, the equivalent of 4% utility tax on the City's internal utilities is to be transferred to the Capital Improvement Fund. These monies, as they become available, are to apply equally to information technology and street capital needs. Because the CIP fund is still running a deficit, these monies are not available for information technology and street capital needs. Council Workshop 11/19/2013 Page 5 Community Block Grant Fund Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments Revenues CDBG Block Grant - HUD 892,713 691,888 748,000 Subtotal - Adopted Budget 892,713 691,888 748,000 2014 Proposed Adjustments Refinements - per draft funding allocation 166,499 Total Revenues 892,713 691,888 748,000 914,499 Expenditures Salaries 350,645 329,421 332,195 Benefits 158,387 162,975 166,471 Supplies 61,163 30,994 33,193 Services 322,517 168,073 216,141 Subtotal - Adopted Budget 892,713 691,463 748,000 2014 Proposed Adjustments Refinements - per draft funding allocation 166,499 Total Expenditures 892,713 691,463 748,000 914,499 Council Workshop 11/19/2013 Page 6 Non-Voted Debt Service Fund Fund Summary 2012 2013 2014 2014 Actuals Adj Budget Adopted Adjustments Beginning Fund Balance 14,000 Revenues &Transfers In Non-Voted Debt Service 804,020 1,998,741 2,008,472 LTGO Bonds 2000 105,350 Valley Communications 170,910 240,880 229,280 LTGO Bonds 2002 988,425 LTGO / Taxable Bonds 2003 667,274 666,340 186,491 GO Refund (96) 2004 1,584,224 1,620,382 1,754,910 GO Refund 2005 (93, 95, 00, 96TF) 100,901 306,293 300,342 LTGO Bond 2006 770,000 758,000 1,246,000 LTGO Bonds 2008 1,899,400 1,773,600 1,796,600 GO Refund 2009 (Part 1999) 1,048,675 1,050,125 1,050,825 GO Refund 2012 (2000/2002) 603,669 1,347,280 1,480,139 Subtotal - Adopted Budget 8,756,847 9,761,641 10,053,059 10,053,059 2014 Proposed Adjustment Refinement- Debt Service (87919)'' Total Revenues &Transfers In 8,756,847 9,761,641 10,053,059 9,965,140 Expenditures Principal 5,747,813 5,713,775 6,009,687 Interest 2,981,033 4,047,866 4,043,372 Subtotal - Adopted Budget 8,728,847 9,761,641 10,053,059 10,053,059 2014 Proposed Adjustment Refinement- Debt Service (87919)' Total Expenditures 8,728,847 9,761,641 10,053,059 9,965,140 Council Workshop 11/19/2013 Page 7 Golf Operating Fund Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE (2,174,297) (2,395,200) (2,280,581) (2,486,259) Revenues Charges for Services 1,823,239 2,201,000 2,218,000 Rentals 169,463 218,000 218,000 Leases 71,779 81,350 60,000 Sales 509,787 563,994 618,344 Miscellaneous Revenue 115,622 7,890 7,890 Total Revenues 2,689,890 3,072,234 3,122,234 3,122,234 Expenditures 18 Hole Course 1,694,756 1,724,636 1,754,017 Par 3 Course 302,746 294,944 299,546 Driving Range 471,474 479,598 488,012 Merchandising 441,817 554,930 565,013 Transfers Out 2,946 Subtotal - Adopted Budget 2,910,793 3,057,054 3,106,588 3,106,588 2014 Proposed Adjustments Refinements - Salaries & Benefits 3,337 Information Technology Costs 2,843 Total Expenditures 2,910,793 3,057,054 3,106,588 3,112,768 Net Revenues less Expenditures (220,903) 15,180 15,646 9,466 ENDING FUND BALANCE (2,395,200) (2,380,020) (2,264,935) (2,476,793) Council Workshop 11/19/2013 Page 8 Fleet Services Fund Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE 2,628,235 1,866,304 1,237,151 1,393,225 Revenues Fleet Operations 2,961,063 3,187,651 3,335,555 Fleet Replacement 374,875 792,850 1,042,850 Sale of Property 29,335 Interest Income 3,335 13,835 13,835 Total Revenues 3,368,608 3,994,336 4,392,240 4,392,240 Expenditures Salaries & Benefits 847,779 827,334 835,845 Supplies 1,596,595 1,583,964 1,615,815 Services 786,363 739,124 756,212 Capital Outlay 820,905 1,364,440 500,000 Transfers Out 78,898 134 Subtotal - Adopted Budget 4,130,540 4,514,996 3,707,872 3,707,872 2014 Proposed Adjustments Refinements - Salaries & Benefits 4,456 Information Technology Costs 15,830 Public Works - Admin Assistant 12,550 Total Expenditures 4,130,540 4,514,996 3,707,872 3,740,708 Net Revenues less Expenditures (761,931) (520,660) 684,368 651,532 ENDING FUND BALANCE 1,866,304 1,345,644 1,921,519 2,044,757 Council Workshop 11/19/2013 Page 9 Facilities Fund Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE 305,273 866,612 498,933 813,942 Revenues Rental Fees - Internal 4,240,371 3,997,582 4,178,609 Intergovernmental - RFA 843,316 843,316 843,316 Leases 26,918 26,916 26,916 Miscellaneous Revenue 20,683 16,269 16,269 Total Revenues 5,131,288 4,884,083 5,065,110 5,065,110 Expenditures Salaries & Benefits 2,082,742 2,165,481 2,209,721 Supplies 271,314 351,202 360,176 Services and Charges 1,802,990 1,873,365 1,920,696 Capital Outlay 40,500 Principal and Interest 152,903 109,115 31,714 Transfer Out-Life Cycle Projects 260,000 500,000 570,000 Subtotal - Adopted Budget 4,569,949 5,039,663 5,092,307 5,092,307 2014 Proposed Adjustments Refinements - Salaries & Benefits (28,990), Information Technology Costs 4,179 Total Expenditures 4,569,949 5,039,663 5,092,307 5,067,496 Net Revenues less Expenditures 561,339 (155,580) (27,197) (2,386) ENDING FUND BALANCE 866,612 711,032 471,736 811,556 Council Workshop 11/19/2013 Page 10 Insurance Fund Unemployment Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE 201,790 280,233 188,738 420,207 Revenues Contributions 389,106 402,324 402,324 Interest Income 354 250 250 Total Revenues 389,460 402,574 402,574 402,574 Expenditures Salaries and Benefits 16,592 23,951 24,262 Supplies 4,177 4,260 Services and Charges 2,796 5,087 5,189 Claims Paid 291,629 400,000 370,000 Subtotal - Adopted Budget 311,017 433,215 403,711 403,711 2014 Proposed Adjustments Refinements - Salaries & Benefits 343 Total Expenditures 311,017 433,215 403,711 404,054 Net Revenues less Expenditures 78,443 (30,641) (1,137) (1,480) ENDING FUND BALANCE 280,233 249,592 187,601 418,727 Council Workshop 11/19/2013 Page 11 Insurance Fund Workers Compensation Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BLANCE (509,195) 693,747 160,609 1,070,540 Revenues Contributions 1,602,991 1,656,075 1,656,075 Interest Income 3,775 3,000 3,000 Total Revenues 1,606,766 1,659,075 1,659,075 1,659,075 Expenditures Salaries and Benefits 66,368 106,022 107,262 Judgements and Damages 742,840 1,000,000 950,000 Ultimate Loss Adjustment (676,087) Liability Insurance 43,329 78,234 79,799 Intergovernmental Services 138,790 204,000 204,000 Adminisrative Costs 64,362 53,777 54,853 Other Expenses 4,427 16,660 16,962 Safety Program 19,795 90,262 92,066 Subtotal - Adopted Budget 403,824 1,548,955 1,504,942 1,504,942 2014 Proposed Adjustments Refinements- Salaries & Benefits 1374 Total Expenditures 403,824 1,548,955 1,504,942 1,506,316 Net Revenues less Expenditures 1,202,942 110,120 154,133 152,759 ENDING FUND BALANCE 693,747 803,867 314,742 1,223,299 Council Workshop 11/19/2013 Page 12 Insurance Fund Health and Employee Wellness Fund Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE 4,634,833 5,963,620 6,062,526 6,856,399 Revenues Contributions Blue Cross 9,163,751 9,606,586 10,086,916 Group Health 3921117 424,534 445,761 Employee Share Blue Cross 907,667 1,043,069 1,095,222 Group Health 50,938 55,476 58,250 RFA Contributions 3,687,875 COBRA 156,845 86,282 90,596 Interest Income 10,854 10,500 11,025 Miscellaneous Income 186,012 137,568 144,446 Subtotal - Adopted Budget 14,556,059 11,364,015 11,932,216 11,932,216 2014 Proposed Adjustments Refinements - remove 5% increase (529,038) Refinements - 10% premium reduction (1,149,156), Total Revenues 14,556,059 11,364,015 11,932,216 10,254,022 Expenditures Salaries and Benefits 329,982 350,704 356,411 Blue Cross Claims 10,418,590 8,045,679 8,881,459 Blue Cross Administration Fees 565,520 397,404 417,274 Blue Cross Audit Fees 59,332 60,519 Delta Dental Claims 1,027,473 811,325 860,816 Delta Dental Administration Fees 62,369 46,015 48,316 Vision Service Plan Claims 117,180 95,021 95,021 Vision Service Plan Admin Fees 26,325 14,293 15,008 Stop Loss Fees 469,190 415,113 477,380 Stop Loss Reimbursements (193,310) (349,793) (349,793) Group Health Premiums 443055 531,269 610,959 IBNR Adjustment (110:300) (127,800) 61,700 Wellness 16,012 88,314 89,482 Transfer Out 49 Other Professional Services 55,188 53,289 54,345 Subtotal - Adopted Budget 13,227,272 10,430,214 11,678,897 11,678,897 2014 Proposed Adjustments Refinements- Salaries'&Benefits 4,684 Total Expenditures 13,227,272 10,430,214 11,678,897 11,683,581 Net Revenues less Expenditures 1,328,787 933,801 253,319 (1,429,559) ENDING FUND BALANCE 5,963,620 6,897,421 6,315,845 5,426,840 Council Workshop 11/19/2013 Page 13 Insurance Fund Liability Insurance Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE 831,667 2,187,087 1,595,118 2,928,533 Revenues Contributions 2,340,300 2,340,300 2,340,300 Interest Income 6,164 4,000 4,000 Subtotal - Adopted Budget 2,346,464 2,344,300 2,344,300 2,344,300 2014 Proposed Adjustments Refinements - reduce rates by 15% (351,044) Total Revenues 2,346,464 2,344,300 2,344,300 1,993,256 Expenditures Claims and Judgements 122,990 1,000,000 1,000,000 Insurance Premiums 664,509 719,750 755,737 Other Expenses 203,545 296,523 301,781 Subtotal - Adopted Budget 991,044 2,016,273 2,057,518 2,057,518 2014 Proposed Adjustments Refinements - Claims Costs (160,000) Refinements - Salaries & Benefits 1,374 Total Expenditures 991,044 2,016,273 2,057,518 1,898,892 Net Revenues less Expenditures 1,355,420 328,027 286,782 94,364 ENDING FUND BALANCE 2,187,087 2,515,114 1,881,900 3,022,897 Council Workshop 11119/2013 Page 14 Insurance Fund Property Insurance Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE 104,731 141,317 146,843 160,532 Revenues Contributions 453,593 562,455 568,080 Interest Income 114 100 100 Total Revenues 453,707 562,555 568,180 568,180 Expenditures Brokerage Fees Insurance Premiums 387,734 510,000 520,200 Property Claims / Deductibles 12,796 24,684 25,178 Other Costs 16,592 23,951 24,262 Subtotal - Adopted Budget 417,122 558,635 569,640 569,640 2014 Proposed Adjustments Refinements - Salaries & Benefits 343 Total Expenditures 417,122 558,635 569,640 569,983 Net Revenues less Expenditures 36,585 3,920 (1,460) (1,803) ENDING FUND BALANCE 141,317 145,237 145,383 158,729 Council Workshop 11/19/2013 Page 15 Water Operating Fund Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE (242,692) 1,583,484 1,103,594 1,103,594 Revenues Charges for Services 16,249,512 16,732,904 17,223,626 System Dev/Connection Charges 1,266,547 1,268,447 1,268,447 Other Revenue 713,106 144,113 144,113 Total Revenues/Other Sources 18,229,165 18,145,464 18,636,186 18,636,186 Expenditures (Transfers) Salaries and Benefits 3,105,497 3,006,032 3,046,570 Supplies 541,390 697,179 711,101 Services 7,035,164 7,697,979 7,878,544 Transfer Out - Projects 3,151,301 2,700,000 3,000,000 Transfer Out - Debt Service 46,969 48,936 47,064 Transfer Out - Central Stores 5,012 Capital Outlay 69,000 Debt Service - Principal 1,667,974 2,348,315 2,375,131 Debt Service - Interest 1,812,601 1,376,262 1,333,273 Cost Allocation (737,533) (154,236) (155,332) Subtotal - Adopted Budget 16,623,362 17,794,479 18,236,351 18,236,351 2014 Proposed Adjustments Refinements - Salaries & Benefits (45,108) Information Technology Costs 37,470 Public Works - Admin Assistant 28,445 Total Expenditures 16,623,362 17,794,479 18,236,351 18,257,158 Net Revenues less Expenditures 1,605,802 350,985 399,835 379,028 Ending Balance 1,363,111 1,934,469 1,503,429 1,482,622 Council Workshop 11/19/2013 Page 16 Sewerage Operating Fund Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE 8,270,589 7,704,819 4,442,897 4,442,897 Revenues Intergovernmental Revenue 161,900 Licenses and Permts 61,423 50,000 50,000 Charges for Services 38,732,590 41,936,143 43,105,212 System Dev/Connection Charges 753,142 616,950 616,950 Other Revenue 31,412 51,983 51,983 Total Revenues/Other Sources 39,740,467 42,655,076 43,824,145 43,824,145 Expenditures (Transfers) Salaries and Benefits 4,569,685 3,859,534 3,905,127 Supplies 315,418 423,096 431,498 Services & Charges 25,668,245 27,967,203 28,217,489 Capital Outlay 186,500 Transfer Out - Projects 8,439,543 10,491,643 6,522,146 Transfer Out - Debt Service 72,852 72,814 73,004 Transfer Out - Central Stores 4,817 Debt Service - Principal 1,445,713 1,514,591 1,108,167 Debt Service - Interest 802,578 811,210 753,033 Cost Allocation (553,245) (639,991) (639,991) Subtotal - Adopted Budget 40,760,789 44,691,417 40,370,473 40,370,473 2014 Proposed Adjustments Refinements - Salaries &Benefits (34,902)'' Information Technology Costs 36,382 Public Works - Admin Assistant 28,445 Total Expenditures 40,760,789 44,691,417 40,370,473 40,400,398 Net Revenues less Expenditures (1,020,322) (2,036,341) 3,453,672 3,423,747 ENDING FUND BALANCE 7,250,267 5,668,478 7,896,569 7,866,644 Council Workshop 11/19/2013 Page 17 Criminal Justice Fund Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE 867,522 1,145,679 1,062,008 1,226,564 Revenues Sales Tax - Local Option 1,924,193 1,814,268 1,841,482 MVET- Basic Crime 100,113 92,899 93,829 MVET- High Crime 46,314 191,199 193,110 MVET- Special Programs 78,549 74,406 75,150 Intergovernmental 197,935 198,239 198,239 Seized Assets 12,708 53,386 53,386 Miscellaneous Revenues 5,073 3,783 3,783 Transfers In - General Fund 121,500 121,500 105,000 Subtotal - Adopted Budget 2,486,384 2,549,680 2,563,979 2,563,979 2014 Proposed Adjustments Adjustments (approved at 8/20 Council Workshop) (75,940)' Total Revenues 2,486,384 2,549,680 2,563,979 2,488,039 Expenditures Law Salaries & Benefits 548,523 554,171 561,938 Supplies 13,963 30,554 30,922 Services &Charges 9,129 22,349 22,754 Domestic Violence Salaries & Benefits 160,674 138,291 140,497 Services &Charges 7,511 8,198 8,361 KYFS -Youth Violence Prevention Services &Charges 25,000 25,000 25,000 Police Salaries & Benefits 974,852 1,151,809 1,145,683 Supplies 36,860 69,064 71,828 Services &Charges 34,285 123,132 130,396 Police Special Programs &Grants Salaries & Benefits 254,490 238,719 238,692 Supplies 24,663 40,643 41,456 Services &Charges 56,512 133,581 136,254 Vehicles and Equipment 45,264 Subtotal -Adopted Budget 2,191,727 2,535,511 2,553,781 2,553,781 Proposed Adjustments Refinements - Salaries & Benefits 80,657 Information Technology 48 New Police Officers 228,928 Total Expenditures 2,191,727 2,535,511 2,553,781 2,863,414 Net Revenues less Expenditures 294,656 14,169 10,198 (375,375) ENDING FUND BALANCE 1,162,178 1,159,848 1,072,206 851,189 Council Workshop 11/19/2013 Page 18 Central Services Fund Information Technology Fund Summary 2012 2013 2014 2014 Actual Adj Budget Adopted Adjustments BEGINNING FUND BALANCE 399,972 414,500 458,698 789,754 Revenues Utility Tax 1,040,000 1,045,200 Charges for Services: Internal Fees 4,533,585 4,212,504 4,324,362 Intergovernmental - RFA 471,972 444,012 452,893 Technology Fees 413,035 374,800 389,308 Subtotal - Adopted Budget 5,418,592 6,071,316 6,211,763 6,211,763 2014 Proposed Adjustments Charges for Services - IT Costs 294450 Total Revenues 6,211,763 6,506,213 Expenditures Systems &Tech Svcs Salaries and Benefits 2,138,636 1,887,305 2,003,262 Supplies 176,164 41,438 43,349 Services and Charges 1,169,621 1,196,198 1,259,113 Telecommunications Salaries and Benefits 147,407 147,009 149,498 Supplies 2,155 14,774 15,058 Services and Charges 296,732 406,661 415,337 Multimedia Salaries and Benefits 561,058 663,316 583,105 Supplies 55,733 77,012 77,282 Services and Charges 289,156 368,605 351,336 Transfers Out HW/SW Capital Projects 850,000 858,500 Long Term Lifecycle Replacement 411,764 374,800 389,308 Subtotal-Adopted Budget 5,248,426 6,027,118 6,145,148 6,145,148 Proposed Adjustments Refinements 42,138 Information Technology Costs 314,450 Total Expenditures 61145,148 6,501,736 Net Revenues less Expenditures 170,166 44,198 66,615 4,477 ENDING FUND BALANCE 570,138 458,698 525,313 794,231 Council Workshop 11/19/2013 Page 19 GENERAL FUND includes Annexation 2013 Estimated Actual as of September 30,2013 2012 2013 2013 2014 2014 Actual Adj Budget Est Actual Adopted Adjustments Beginning Fund Balance 643,515 4,129,976 4,129,976 4,387,081 8,468,529 Revenues Taxes: Property Tax 19,811,488 20,176,059 20,215,937 20,527,820 Sales Tax 20,120,481 19,902,489 20,234,505 20,118,628 Utility Tax 17,478,468 18,807,401 18,840,663 19,071,967 Other Tax 1,116,791 1,456,619 1,353,101 1,480,024 Licenses and Permits 3,036,340 3,365,746 3,748,020 3,481,558 Intergovernmental Revenue 2,609,331 2,007,357 2,157,563 2,446,476 Charges for Services 4,248,388 4,779,967 5,029,069 4,788,874 Fines and Forfeitures 1,499,054 1,537,250 1,411,197 1,552,429 Miscellaneous Revenue 1,377,519 1,249,884 1,408,887 1,246,807 Transfers In 935,202 1,119,139 1,119,139 1,006,524 Subtotal -Adopted Budget 72,233,062 74,401,911 75,518,081 75,721,107 75,721,107 Adjustments (approved at 8/20 Council Workshop): " 384,782 Total Revenues 72,233,062 74,401,911 75,518,081 75,721,107 76,105,889 Expenditures Salaries & Benefits 47,115,556 48,236,742 47,913,857 48,950,156 Supplies 2,081,119 3,354,551 2,489,918 3,274,606 Services &Charges 26,210,355 28,024,576 26,819,534 28,836,183 Capital Outlay 120,963 Cost Allocation (10,376,660) (10,614,161) (10,047,818) (10,642,278) Transfers Out 3,595,268 3,874,291 3,874,291 3,632,880 Subtotal -Adopted Budget 68,746,601 72,875,999 71,049,782 74,051,547 74,051,547 Proposed Adjustments: Refinements- see page 20 for details (47,5,777)' Dept Changes - see page 20 for details 1,089,938 Total Expenditures 68,746,601 72,875,999 71,049,782 74,051,547 74,665,708 Net Revenues less Expenditures 3,486,461 1,525,912 4,468,299 1,669,560 1,440,181 Ending Fund Balance 4,129,976 5,655,888 8,598,275 6,056,641 9,908,710 Ending Fund Balance Comprised of: General Fund Reserves - 10% Cash Flow 3,669,463 4,652,790 5,657,808 4,479,903 5,951,208 General Fund Reserves - in excess of 10% 1,493,293 6.6% 8.1% 10.0% 7.6% 12.5% Contingency for Unanticipated Costs 500,000 1,500,000 1,000,000 1,500,000 Estimated Strategic Opportunities Fund 415,894 415,894 Restricted for Annexation 460,513 503,098 1,024,573 576,738 548,314 Total Ending Fund Balance 4,129,976 5,655,888 8,598,275 6,056,641 9,908,710 Council Workshop 11/19/2013 Page 20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o f Ln LnO V Ln Ln O O Ln V V ti O O O n n n U .-L.-1--.-i.�-i N.--�.--i .--i .ti M N N N O N N O tOM nN V Nt0 V n0 M 01OM V%0ro O n 00 o O V mO N 000nN O nl0 n MM.-L N n .--i Cr CD N to V C) 0 OM V ONCON OLn V n O N M N LnN In- Lf) V Ln n m O7 M O N O O NCO Ly O M M N M Ll)LO V Ln N In L() .-� LO CD It M Oi m. 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C U U > N m > 3 a+ is o. N O C C > m C LO a U Ln Ln u p A N > O LU o-d x y y a) 0) c m R Y a Ln aNi aci Oal a N Ln d £ m W U U Z c o) axi m m £ ° w c M a a m y H m °�' °�' a� c a a x d N N O N f0 C O 3 i N N 10 M � CY p Q 7 3 x x x c c In 0 1„a C H m U 12 o < Q� - 9 d m m o a N o LL LL T LO �O O ` r d 3 U O L a E L y C C C C y v C CM Ln 'a' n VI > Ln C C i6 £ > a3+ Ln to 0 O O 10 d �(] G 7 3 0) o°' rc ° IL LL ° ma)m.o, _', oC ea'a� m< J9 0C W d m a �, � IE Ew > a Ln O u C L c '_^ ` a m N M o 7 V 9 N N o N aNi y 0 F J Ulif F-y Q O xMU)MU U Fto a O d C C C� C7 U W d O m cc .,.sJ F W zw (- Z W W F Council Workshop 1111912013 Page 21 2014 Proposed Expenditure Adjustments General Other Other FTE Fund Funds Total Funds Budget Refinements On-going 2013 Approved Budget Changes 110,818 (125,709) (14,891) Various Police Pay Adjustments, per contract 466,939 33,277 500,216 CJ Fund Medical Insurance: remove 5% increase (387,229) (141,809) (529,038) Various Liability Insurance: reduce rates by 15% (248,875) (251,382) (500,257) Various Human Services: adjust for CPI/Population 21,115 21,115 City Arts Program: adjust for population 1,793 1,793 Valley Comm: adjust to VC budget (71,000) (71,000) Fire Hydrant Mtc absorbed by Water Fund (500,000) (500,000) Added or Updated after 10/15/2013 Workshop: Utility Clearing Fund Corrections 10,799 (28,092) (17,293) Block Grants: adjust to draft allocation 166,499 166,499 CDBG AF, NR, TM Pay Adjustments, per contracts 915,572 581,386 1,496,958 Various Medical Insurance: 10% premium reduction (795,709) (344,004) (1,139,713) Various Total Budget Refinements 0.00 (475,777) (109,834) (585,611) Department Changes Economic&Community Development Engineer I 1.000 97,586 97,586 offset by 2014 Code Enforcement Officer (0.525) (61,840) (61,840) Office Tech I - 4 month limited term full time 22,085 22,085 Overtime Increase 6,000 6,000 Retail Recruitment/Retention Strategy 60,000 60,000 Total Economic&Community Dev 0.475 123,831 0 123,831 Human Resources Convert Temp to Full Time FTE - HR Specialist 1.000 47,806 47,806 Respect Implementation 40,000 40,000 Performance Management System 26,000 26,000 Total Human Resources 1.000 113,806 0 113,806 Information Technology Software Mtc - omissions identified 143,730 70,340 214,070 IT Fund Microsoft Ent Agrmt - desktop/server licenses 53,968 26,412 80,380 IT Fund Cable Franchise - negotiations/legal fees 20,000 20,000 IT Fund Total Information Technology 0.000 197,698 116,752 314,450 Parks, Recreation &Community Services Park Operations Utility Costs Increase 10,000 10,000 Health Care Reform -Temp to FTE 2.750 198,635 198,635 offset by reduction in temp budget (111,250) (111,250) Total Parks 2.750 97,385 0 97,385 Police Accounting Services Assistant 3 1.000 85,139 85,139 Police Officer- Unfreeze 2 CJ Positions 228,928 228,928 CJ Fund Police Officer - New 4.000 457,856 457,856 Total Police 5.000 542,995 228,928 771,923 Public Works Utilities TV Truck Replacement 313,729 313,729 Utilities reallocate 2014 utilities capital budget (313,729) (313,729) Utilities Administrative Assistant II 1.000 14,223 69,440 83,663 GF/Utilities Total Public Works 1.000 14,223 69,440 83,663 Total Department Changes 10.225 1,089,938 415,120 1,505,058 Grand Total 10.225 614,161 305,286 919,447 Council Workshop 11/19/2013 Page 22