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HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 10/15/2013 .60� • T W< 1.oTo Kent City Council Workshop October 15, 2013 The meeting was called to order at 5:31 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. Interstate 405 and State Route 167 H®V Lane Letter. Council President Higgins presented the topic and introduced City Senior Transportation Planner Cathy Mooney and Design Engineer Manager Mark Howlett. Mooney discussed the project and noted that Phase One is going on and is scheduled to be completed in 2015. She reviewed Phase One and Phase Two of the projects and stated that Phase Two is from Bellevue to Renton and is scheduled to open in 2021. She highlighted that toll revenue will be used to pay for the project and keep traffic to 45 mph. She said if both objectives aren't accomplished the toll lanes will be terminated and reverted back to the existing two person carpool lanes. She communicated that the 3+ carpool free lanes during peak hours and 2+ carpool free off peak lanes is the most viabale option to all groups and a reasonable transition if future regional operations require carpool policy to be 3+ carpool. She also noted that SR 167 users were more accepting of 3+ carpool lanes because they understood the benefits of express toll lanes. She communicated the schedule of the projects. She noted that the direct connection of I405 and SR167 in Renton is the item that is most important to Kent because there are 25 properties in the right-of-way. She highlighted that the design work is going on now, but there won't be any funding for the construction until some of the toll funding is realized. Councilmember Albertson arrived at 5:40 p.m. Council President Higgins verified with Ms. Mooney that the Washington State Department of Transportation (WSDOT) doesn't want to change the two-person designation on SR167 until the I405/SR167 connector is built. He asked the Council to consider signing and supporting the letter. Councilmember Ralph asked if WSDOT could adjust the carpool lane on SR167 so drivers can get to the Kent exit. Mayor Cooke communicated that the State informed her that the off-ramp is too dangerous for motorists to get off of the highway because the exits are too close to meet their hot lane standards. She also stated that the City staff should investigate how close the exits are to meeting the standards. Council President Higgins communicated that he wants language added concerning better signage in the hot lanes when exiting in Kent. 1 Kent City Council Workshop Minutes October 15, 2013 2014 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. She stated that this is the first two-year budget the City has ever had and this is the opportunity to make adjustments. She said the 2013-2014 budget was adopted at the end of 2012 and that this second year of the biennimun is for refinements. She said this is to ensure the budget is still on track. The City is in negotiations with two unions, she said, but one, the KPOA, did settle, and those adjustments are reflected in the budget adjustments. She communicated that some revisions required by the Affordable Care Act in 2014 will be seen in 2015. She said the economy is beginning to rebound and permitting demand has increased causing staffing additions. There are also some public safety concerns that will be addressed, and at some point the State may discontinue the $5 million dollar 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, includes 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. 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 that 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. Nachlinger communicated about the internal debt and said there are two parts of it; 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 these by $4.5 million in 2013 and 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 cost. Due to a recent change in law, the water utility will once again 2 Kent City Council Workshop Minutes October 15, 2013 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 Poors 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 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 remaining $1.4 million for the City to allocate. However, there are labor negotiations, debt to pay, and other items the funds will be allocated to. Councilmember Albertson inquired about the cost allocation line. Nachlinger replied that budget line reflects the amount of general fund services that are spread out among other funds. 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 justive 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. 3 Kent City Council Workshop Minutes October 15, 2013 Councilmember Boyce communicated that there aren't enough police officers and will be advocating for the hiring of more than six 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 strorm drainage items need to be reviewed as a council. 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 over year. He stated that there is tremendous unmet need in the City. Solid Waste Transfer Plan. Gina Hungerford, Environmental Conservation Specialist discussed the nine alternatives under the King County Solid Waste Transfer System Plan and noted that the Council has until October 23rd to comment on them. She suggested the Council support Alternative A or B. Council President Higgins agreed with Hungerford and communicated that he would have the letter drafted and share it with the Council for their approval. Councilmember Perry stated that if this comes to the Sound Cities Association Policy Issues Committee the City's representative should communicate that it is harmful to cities and not take a position. The meeting adjourned at 6:43 p.m. Ronald F. ,Dore, MMC City Clerk 4 2014 Mid-Biennium Review Council Workshop October 15, 2013 Agenda Opening Remarks Page 2 2013 Financial Accomplishments Page 4 General Fund Page 8 2014 Proposed Budget Adjustments Page 9 Next Steps Mid-Biennium Framework y 2014 budget was adopted in December 2012 as part of the 2013-14 Biennial Budget. v A mid-biennium review is required per RCW 35A.34.130 • Purpose of the mid-biennium review is to "tune up" the adopted budget for any needed refinements. • Ensure that the policy benchmarks we set for the city last year in the budget are being met and are accomplishing the goals we set. • Questions to consider: o Are we doing what we intended with this budget at this midpoint in the biennium? o Are there any policy goals or major drivers that we didn't consider last year that we might want to incorporate into this final year? Proposed changes fall into 3 main categories: ■ Budget Refinements - examples include: o Update revenue forecasts o Adjust population based budgets (i.e. city arts program, human service agencies) o Adjust internal service rates (i.e. medical premiums, liability insurance) • Contracts and Mandates - examples include: o Pay adjustments per bargaining unit contract o Costs associated with healthcare reform • Business and Economic Drivers - examples include: o Robust permitting activity - staffing to maintain level of service o Public safety concerns - additional police officers o SST Mitigation at risk - explore retail options Council Workshop 10/15/2013 Page 2 of 9 Highlights of the 2014 Adopted Budget r Continuation of revenue streams added in 2013, including: • 6% cable utility tax - address technology operating and capital needs • 3% internal utility tax - dedicated to paying down internal debt and increasing the General Fund reserve. • B&O Tax - approximately $5 million annually dedicated to street infrastructure and maintenance. y Continuation of City services and programs, including: • General Government: Council, Mayor's Office, Human Resources, Law, Finance, Information Technology, Facilities, etc. • Public Safety: Police, Corrections Facility, Municipal Court • Culture & Recreation: athletic, cultural, adaptive recreation, youth/teen, and senior programs; park operations and maintenance; golf complex • Human Services • Economic & Community Dev: economic development; building permits and plans review; planning • Public Works: engineering, street maintenance and operations • Utilities: water, sanitary sewer and storm drainage. Includes adopted utilities rate increases: o Water - 3% o Sanitary Sewer - 4% o Storm Drainage - 5% Continuation of capital funding, including: • Street overlays, maintenance and materials - $4.7 million • Parks life cycle - $500k • Facilities life cycle - $570k • Technology, hardware and software - $1.2 million • Water projects - $3 million • Sanitary Sewer projects and equipment - $1.1 million • Storm Drainage projects - $5.4 million Council Workshop 10/15/2013 Page 3 of 9 City Council Workshop October 15, 2013 SUMMARY OF ACCOMPLISHMENTS i Summary of Accomplishments 2013 Fiscal Year n -- - ------- The City of Kent has made great strides in the achievement of its financial goals in 2013. General Fund Balances will have achieved the lo% reserve target; the Contingency for Unanticipated Costs will be fully funded; and the Strategic Opportunities Fund will receive its first funding. • The City has paid down both internal and external debt. The total governmental funds balance will increase by $17 million in 2012, $lo million in 2013, and $7.5 million in 2014. Council Workshop 10/15/2013 Page 4 of 9 General Fund Reserve Balance (amounts in millions) $9,0 ----- - ---------------- ------------------ ---------- -------- ---------- $7.0 $&0 $40 4.0 *ft 0 UO *LO $0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EST BUD Resemes-Cash Mw ContingemnJor Unanticipated Costs Strategic OpportinfitieS —lo%Target General Fund Reserves as a Percentage of General Fund Expenditures 18.0% 16.0% 14.0% ----------- 12.096 1--------------- 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2004 2005 2006 2007 2008 2000 2010 2011 2012 2013 2014 EST BUD General Fmd Resm es io%Cash Flow ResenT Council Workshop 10/15/2013 Page 5 of 9 f Governmental oneDebt Principal Payments on Bonded Debt - OOq 9 8 G M C5 24 Prindpnl 8 2 i D 20042oD52oD6200720082009 2010 2011 2012 21)13 2014 Overnmental BOnde—Deb --- Annual Principal and Interest --- - - - -- ---- to c 6 cr... �. 5 4 3 -- 2 0 N N IS N N N N hi N W N N N N N , W �a7 a P V 00 :S r N 9 V ONO Principal Intffest Council Workshop 10/15/2013 Page 6 of 9 Internal Debt Outstanding _---- -------- ------------- - _ -- ---- -- 30 25 20 UnsUmblued Stlllct<ued 10 5 0 -- 2012 2013 Eat 2014 Bud Governmental unac, Total Fund Balance 50 ; -- -- 40 30 20 10 - I 0 i 2004 2005 2006 2007 2008 200q ol0 2011 012 2013 2014 -10 __-_-___.__ Est_._-Bud -20 Council Workshop 10/15/2013 Page 7 of 9 GENERAL FUND includes Annexation 2013 Estimated Actual as of August 31,2013 2011 2012 2013 2013 2014 Actual Actual Adj Budget Est Actual Budget Beginning Fund Balance 826,109 643,515 4,129,976 4,129,976 8,468,528 Revenues Taxes: Property Tax 19,367,630 19,811,488 20,176,059 20,153,483 20,527,820 Sales Tax 20,787,961 20,120,481 19,902,489 20,114,698 20,118,628 Utility Tax 15,544,305 17,478,468 18,807,401 18,533,348 19,071,967 Other Tax 1,130,390 1,116,791 1,456,619 1,346,602 1,480,024 Licenses and Permits 2,249,021 3,036,340 3,365,746 3,838,479 3,481,558 Intergovernmental Revenue 2,529,964 2,609,331 2,007,357 2,106,607 2,446,476 Charges for Services 3,417,680 4,248,388 4,779,967 5,099,447 4,788,874 Fines and Forfeitures 1,543,311 1,499,054 1,537,250 1,401,752 1,552,429 Miscellaneous Revenue 1,209,774 1,377,519 1,249,884 1,408,659 1,246,807 Transfers In 1,001,277 935,202 1,119,139 1,119,139 1,006,524 Subtotal - Adopted Budget 68,781,313 72,233,062 74,401,911 75,122,214 75,721,107 Adjustments (approved at 8/20 Council Workshop): 384,782 Total Revenues 68,781,313 72,233,062 74,401,911 75,122,214 76,105,889 Expenditures Salaries & Benefits 46,855,685 47,115,556 48,236,742 47,684,917 48,950,156 Supplies 2,160,818 2,081,119 3,354,551 2,592,842 3,274,606 Services &Charges 24,298,959 26,210,355 28,024,576 26,700,754 28,836,183 Capital Outlay 132,572 120,963 Cost Allocation (10,444,195) (10,376,660) (10,614,161) (10,069,142) (10,642,278) Transfers Out 5,960,068 3,595,268 3,874,291 3,874,291 3,632,880 Subtotal - Adopted Budget 68,963,907 68,746,601 72,875,999 70,783,662 74,051,547 Proposed Adjustments: 2014 Refinements - see separate sheet (601,490) 2014 Dept Changes - see separate sheet 1,089,938 Total Expenditures 68,963,907 68,746,601 72,875,999 70,783,662 74,539,995 Net Revenues less Expenditures (182,594) 3,486,461 1,525,912 4,338,552 1,565,894 Ending Fund Balance 643,515 4,129,976 5,655,888 8,468,528 10,034,422 Comprised of: General Fund Reserves - Cash Flow 1,298,783 3,669,463 4,652,790 5,631,248 7,532,447 2.5% 6.6% 8.1% 10.0% 12.7% Contingency for Unanticipated Costs 500,000 1,500,000 1,500,000 Estimated Strategic Opportunities Fund ** 458,690 458,690 Annexation Fund Balance (655,268) 460,513 503,098 878,590 543,286 10% General Fund Reserves Calculation 5,631,248 5,938,134 Available ** 1,434,881 ** Subject to ongoing negotiations with our union groups. Other opportunities/potential uses include paying down internal debt and addressing capital needs. Council Workshop 10/15/2013 Page 8 of 9 2014 Proposed Budget 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 Cl 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 2,800 2,800 Valley Comm: adjust to VC budget (71,000) (71,000) Fire Hydrant Mtc absorbed by Water Fund (500,000) (500,000) Utility Clearing Fund Corrections 3,942 (49,388) (45,446) Total Budget Refinements 0.00 (601,490) (535,011) (1,136,501) 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 Technoloov 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 10.225 488,448 (119,891) 368.557 Council Workshop 10/15/2013 Page 9 of 9 2014 Mid-Biennium Review Council Workshop October 15, 2013 Table of Contents Budgets by Fund Budget Summary 1 General Fund 3 Special Revenue Funds 4 Debt Service Funds 8 Enterprise Funds 9 Internal Service Funds 12 * Includes only those funds affected by the proposed changes. 2013-14 Biennia/ Budget 2014 Mid-Biennium Adjustment Budget Summary Inc (Dec) Beginning Ending in Fund Fund Fund Revenues Expenditures Balance Balance Balance GOVERNMENTALFUNDS GENERALFUND Excluding Annexation 64,169,159 62,576,215 1,592,944 7,589,939 9,182,883 Annexation 11,551,948 11,475,332 76,616 878,590 955,206 Rev Adjust-per Workshop 8/2013 384,782 384,782 384,782 Refinements (601,490) 601,490 601,490 Economic &Community Dev 123,831 (123,831) (123,831) Human Resources 113,806 (113,806) (113,806) Information Technology 197,698 (197,698) (197,698) Parks, Recreation & Comm Svcs 97,385 (97,385) (97,385) Police 542,995 (542,995) (542,995) Public Works 14,223 (14,223) (14,223) 76,105,889 74,539,995 1,565,894 8,468,529 10,034,423 SPECIAL REVENUE FUNDS Street Operating 9,601,506 9,625,185 (23,679) 424,441 400,762 Refinements (68,592) 68,592 68,592 9,601,506 9,556,593 44,913 424,441 469,354 LEOFF 1 Retiree Benefits Fund 1,075,794 1,184,337 (108,543) 598,392 489,849 Lodging Tax Fund 196,862 178,500 18,362 111,496 129,858 Youth/Teen Programs 903,061 898,524 4,537 85,988 90,525 Capital Improvement 10,685,466 10,599,674 85,792 (7,055,821) (6,970,029) Rev Adjust-per Workshop 8/2013 769,374 769,374 769,374 Refinements (34,479) 34,479 34,479 11,454,840 10,565,195 889,645 (7,055,821) (6,166,176) Criminal Justice 2,563,979 2,553,781 10,198 1,226,564 1,236,762 Rev Adjust-per Workshop 8/2013 (75,940) (75,940) (75,940) Refinements 84,279 (84,279) (84,279) Information Technology 48 (48) (48) New Police Officers 228,928 (228,928) (228,928) 2,488,039 2,867,036 (378,997) 1,226,564 847,567 Community Block Grant 748,000 748,000 Other Operating Projects 118,280 118,280 449,027 567,307 Refinements 2,800 2,800 2,800 121,080 121,080 449,027 570,107 ShoWare Operating Fund 1,400,000 820,200 579,800 (1,815,552) (1,235,752) DEBT SERVICE FUNDS Voted 2,284 2,284 LTGO Debt 10,053,059 10,053,059 Refinements (87,919) (87,919) 9,965,140 9,965,140 Special Assessment 3,484,056 2,502,519 981,537 1,845,844 2,827,381 Council Workshop 10/15/2013 Page 1 of 20 2013-14 Biennial Budget 2014 Mid-Biennium Adjustment Budget Summary Inc (Dec) Beginning Ending in Fund Fund Fund Revenues Expenditures Balance Balance Balance CAPITAL PROJECTS FUNDS Street Projects 4,700,000 4,700,000 Parks Projects 510,000 510,000 Technology Projects 1,247,808 1,247,808 PROPRIETARY FUNDS ENTERPRISE FUNDS Water 18,636,186 18,236,351 399,835 1,103,594 1,503,429 Refinements (82,445) 82,445 82,445 Information Technology 37,470 (37,470) (37,470) Public Works 28,445 (28,445) (28,445) 18,636,186 18,219,821 416,365 1,103,594 1,519,959 Sewerage 43,824,145 40,370,473 3,453,672 4,442,897 7,896,569 Refinements (101,013) 101,013 101,013 Information Technology 36,382 (36,382) (36,382) Public Works 28,445 (28,445) (28,445) 43,824,145 40,334,287 3,489,858 4,442,897 7,932,755 Golf Complex 3,122,234 3,106,588 15,646 (2,486,259) (2,470,613) Refinements (12,431) 12,431 12,431 Information Technology 2,843 (2,843) (2,843) 3,122,234 3,097,000 25,234 (2,486,259) (2,461,025) INTERNAL SERVICE FUNDS Fleet Services 4,392,240 3,707,872 684,368 1,393,225 2,077,593 Refinements (9,103) 9,103 9,103 Information Technology 15,830 (15,830) (15,830) Public Works 12,550 (12,550) (12,550) 4,392,240 3,727,149 665,091 1,393,225 2,058,316 Central Services 6,735,556 6,663,554 72,002 749,840 821,842 Refinements 294,450 (18,614) 313,064 313,064 Information Technology 314,450 (314,450) (314,450) 7,030,006 6,959,390 70,616 749,840 820,456 Facilities Fund 5,065,110 5,092,307 (27,197) 813,942 786,745 Refinements (41,023) 41,023 41,023 Information Technology 4,179 (4,179) (4,179) 5,065,110 5,055,463 9,647 813,942 823,589 Insurance 16,906,345 16,214,708 691,637 11,436,211 12,127,848 Refinements (880,082) (163,671) (716,411) (716,411) 16,026,263 16,051,037 (24,774) 11,436,211 11,411,437 TOTAL GROSS BUDGET 222,098,259 213,727,994 8,370,265 21,794,642 30,164,907 LESS: Internal Service Funds 30,182,787 30,182,787 Transfers 21,355,152 21,355,152 TOTAL NET BUDGET 170,560,320 162,190,055 8,370,265 21,794,642 30,164,907 Council Workshop 10/15/2013 Page 2 of 20 General Fund (including Annexation) Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE 643,515 4,129,977 4,129,977 4,387,081 8,468,529 Revenues Taxes: Property 19,811,488 20,176,059 10,606,687 20,527,820 20,527,820 Sales Tax 20,120,481 19,902,489 12,499,998 20,118,628 20,234,460 Utility 17,478,468 18,807,401 12,778,236 19,071,967 19,071,967 Other 1,116,791 1,156,619 605,676 1,180,024 1,057,905 Business and Occupation Tax 300,000 291,584 300,000 300,000 Licenses and Permits 3,036,340 3,365,746 2,804,815 3,481,558 3,669,971 Intergovernmental Revenue 2,609,331 2,007,357 1,397,874 2,446,476 2,372,929 Charges for Services 4,248,388 4,779,967 3,633,770 4,788,874 5,029,870 Fines and Forfeitures 1,499,054 1,537,250 1,007,775 1,552,429 1,552,429 Miscellaneous Revenue 1,377,520 1,249,884 981,659 1,246,807 1,282,014 Transfers In 935,202 1,119,139 525,000 1,006,524 1,006,524 Total Revenues 72,233,062 74,401,911 47,133,073 75,721,107 76,105,889 Expenditures Salaries & Benefits 47,115,556 48,236,742 31,297,094 48,950,156 49,730,148 Supplies 2,081,119 3,354,551 1,457,034 3,274,606 3,416,487 Services &Charges 26,210,355 28,024,576 17,225,182 28,836,183 28,397,106 Capital Outlay 120,963 Cost Allocation (10,376,660) (10,614,161) (6,622,069) (10,642,278) (10,639,426) Transfers Out 3,595,268 3,874,291 108,926 3,632,880 3,635,680 Total Expenditures 68,746,601 72,875,999 43,466,167 74,051,547 74,539,995 Change in Fund Balance 3,486,461 1,525,912 3,666,906 1,669,560 1,565,894 ENDING FUND BALANCE 4,129,976 5,655,889 7,796,883 6,056,641 10,034,423 Comprised of: General Fund Reserves - Cash Flow 3,669,463 4,652,791 4,479,903 7,532,447 6.6% 8.1% 7.6% 12.7% Contingency for Unanticipated Cost 500,000 1,000,000 1,500,000 Estimated Strategic Opportunities Fund 458,690 Annexation Fund Balance 460,513 503,098 576,738 543,286 Expenditures by Department City Council 262,887 335,474 194,219 342,822 338,438 Mayor's Office 2,009,424 2,109,006 1,500,957 2,064,795 2,173,096 Municipal Court 2,726,273 2,862,271 1,780,988 2,910,082 2,908,901 Human Resources 953,173 1,363,167 670,405 1,331,182 1,443,954 Law 918,399 1,081,932 608,676 1,104,377 1,101,635 Finance 1,871,788 2,187,338 1,303,498 2,229,884 2,234,262 Police 25,262,361 26,601,813 16,811,804 26,987,565 27,645,375 Fire Services 7,175,085 7,613,807 4,980,615 7,800,079 7,833,133 Economic &Community Dev 5,167,571 5,380,714 3,303,708 5,724,652 5,691,113 Public Works 4,730,439 4,771,654 3,061,919 5,002,591 4,441,089 Parks, Rec &Comm Services 14,311,359 14,919,783 9,140,236 15,143,918 15,319,399 Non Departmental 3,357,843 3,649,040 109,143 3,409,600 3,409,600 Total Expenditures 68,746,601 72,875,999 43,466,167 74,051,547 74,539,995 Council Workshop 10/15/2013 Page 3 of 20 Street Operating Fund Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE 355,417 275,044 275,044 237,517 424,441 Revenues Fuel Tax - Unrestricted 1,865,667 1,886,725 1,223,525 1,905,592 1,905,592 B & 0 Tax 4,700,000 2,108,034 4,700,000 4,700,000 Water 162,924 167,414 112,375 172,436 172,436 Sewer 223,450 231,245 162,995 238,182 238,182 Drainage 165,087 173,236 116,840 178,433 178,433 Electric 1,088,861 1,119,842 767,650 1,131,040 1,131,040 Gas 350,459 393,959 264,599 397,899 378,210 Garbage 156,016 205,866 151,134 207,925 207,925 Telephone 710,882 669,929 406,819 669,929 689,618 Miscellaneous Revenue (47,995) 70 2,514 70 70 Total Revenues 4,675,351 9,548,286 5,316,485 9,601,506 9,601,506 Total Resources 5,030,768 9,823,330 5,591,529 9,839,023 10,025,947 Expenditures and Transfers Debt Service PW Trust Fund Loan 797,200 827,069 827,069 789,798 823,391 LTGO Bonds 2000 28,775 148,276 LTGO Bonds 2002 553,692 652,007 GO Refund (96) 2004 136,393 139,507 20,769 151,089 151,089 GO Refund 2005 (93,95,00,96TF) 37,789 114,714 15,972 112,485 112,485 LTGO Bonds 2008 487,066 466,921 144,610 472,025 472,025 LTGO Bonds 2009 207,213 207,107 23,679 207,637 207,637 GO Refund 2012 (2000/2002) 253,557 600,023 95,407 713,250 Total Debt Service 2,501,685 2,355,341 1,127,506 2,533,317 2,479,877 Effective Transportation System Operating Costs Street Utility Operations 11805,094 1,674,419 1,007,234 1,697,543 1,685,359 Street Tree Maintenance Program 196,017 267,968 107,967 274,145 271,177 Engineering Services Allocation 264,546 265,180 176,787 265,180 265,180 Total Operating Expenditures 2,265,657 2,207,567 1,291,987 2,236,868 2,221,716 Arterials Street Overlays and Materials 4,550,000 775,000 4,700,000 4,700,000 James Ave Impr (4th to UPRR) 39,685 Street Light Repair 150,000 15,000 Closed and other Arterial Projects (166,617) Total Arterials (126,932) 4,700,000 790,000 4,700,000 4,700,000 Other Improvements Transportation Master Plan 4,966 Mero Transit Services 155,000 155,000 155,000 155,000 Closed and Other Improvements (44,652) Total Other Improvements 115,315 155,000 155,000 155,000 Total Expenditures &Transfers 4,755,724 9,417,908 3,209,493 9,625,185 9,556,593 Change in Fund Balance (80,373) 130,378 2,106,991 (23,679) 44,913 ENDING FUND BALANCE 275,044 405,422 2,382,035 213,838 469,354 Council Workshop 10/15/2013 Page 4 of 20 Capital Improvement Fund Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actuals Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE (12,052,614) (11,082,376) (11,082,376) (6,677,326) (7,055,821) Revenues Sales Tax 4,608,055 4,340,469 3,137,003 4,405,576 4,874,950 Utility Tax 1,171,672 784,421 1,218,674 1,218,674 Real Estate Excise Tax 1,644,785 1,142,799 1,428,361 1,398,819 1,548,819 Real Estate Excise Tax - 2nd Qtr% 1,644,785 1,142,799 1,428,361 1,398,819 1,548,819 Real Estate Excise Tax - State 258,392 73,287 Miscellaneous Revenues 2,135 3,939 1,001 3,978 3,978 Transfer In - General Fund ** 2,201,772 2,193,787 2,259,600 2,259,600 Transfer In - Facilities 260,000 Sale of Property 198,526 2,500,000 1,783 575 3,500,000 3,500,000 Total Revenues 10,818,451 12,495,465 8,636,008 14,185,466 14,954,840 Expenditures and Transfers Debt Service Non-Voted Debt Service 6,820 1,171,672 941 1,218,674 1,218,674 LTGO Bonds 2000 76,575 Valley Communications 170,910 240,880 229,280 229,280 LTGO Bonds 2002 434,733 LTGO/Taxable Bonds 2003 667,274 666,340 33,606 186,491 186,491 GO Refund (96) 2004 1,447,831 1,480,875 220,467 1,603,821 1,603,821 GO Refund 2005 (93,95,00,96TF) 63,112 191,579 26,674 187,857 187,857 LTGO Bonds 2006 770,000 758,000 229,000 1,246,000 1,246,000 LTGO Bonds 2008 1,412,334 1,306,679 404,690 1,324,575 1,324,575 GO Refund 2009 (Part 1999) 721,641 721,268 82,464 723,120 723,120 GO Refund 2012 (2000/2002) 350,111 747,257 88,233 679,856 645,377 ShoWare Debt Service 2,764,025 2,500,000 1,257,179 2,400,000 2,400,000 Water Fund Loan Payoff 366,660 Subtotal Debt Service 9,252,026 9,784,550 2,343,254 9,799,674 9,765,195 Facilities Projects 260,000 Parks Projects Adopt-a-Park Program 23,602 23,602 Eagle Scout Projects 23,159 23,159 ShoWare Lifecycle 300,000 300,000 300,000 300,000 Park Lifecycle Program 400,000 178,991 (61,009) 500,000 500,000 Urban Forestry Plan 15,000 24,248 24,248 Closed and Other REET Projects (738) Subtotal Parks Projects 714,262 550,000 10,000 800,000 800,000 Technology Projects Hardware Lifecycle Replacements 120,000 Subtotal Technology Projects 120,000 Other Projects Annexation Study (48,076) Emergency Flood Preparedness (450,000) Closed and Other Projects (30,197) (30,197) Subtotal Other Projects (498,076) (30,197) (30,197) Total Expenditures&Transfers 9,848,212 10,304,353 2,323,057 10,599,674 10,565,195 Change in Fund Balance 970,239 2,191,112 6,312,951 3,585,792 4,389,645 Capital Reserves 250,000 250,000 500,000 500,000 Unreserved _ (9,141 264) (5,019,424) (3,591,534) (3 166 176) ENDING FUND BALANCE (11,082,375) (8,891,264) (4,769,424) (3,091,534) (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 10/15/2013 Page 5 of 20 Criminal Justice Fund Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE 867,522 1,145,679 1,145,678 1,062,008 1,226,564 Revenues Sales Tax - Local Option 1,924,193 1,814,268 1,328,676 1,841,482 1,942,648 MVET- Basic Crime 100,113 92,899 78,533 93,829 104,136 MVET- High Crime 46,314 191,199 193,110 MVET- Special Programs 78,549 74,406 61,213 75,150 80,747 Intergovernmental 197,935 198,239 189,098 198,239 198,239 Seized Assets 12,708 53,386 13,615 53,386 53,386 Miscellaneous Revenues 5,073 3,783 1,664 3,783 3,883 Transfers In - General Fund 121,500 121,500 105,000 121,500 Total Revenues 2,486,384 2,549,680 1,672,799 2,563,979 2,504,539 Expenditures Law Salaries&Benefits 548,523 554,171 361,633 561,938 558,291 Supplies 13,963 30,554 5,539 30,922 30,922 Services &Charges 9,129 22,349 5,897 22,754 22,453 Domestic Violence Salaries &Benefits 160,674 138,291 90,609 140,497 140,107 Services &Charges 7,511 8,198 5,455 8,361 8,361 KYFS-Youth Violence Prevention Services &Charges 25,000 25,000 25,000 25,000 Police Salaries &Benefits 974,852 1,151,809 679,078 1,145,683 1,433,254 Supplies 36,860 69,064 38,830 71,828 93,476 Services &Charges 34,285 123,132 28,156 130,396 137,056 Police Special Programs &Grants Salaries &Benefits 254,490 238,719 163,684 238,692 240,406 Supplies 24,663 40,643 43,289 41,456 41,456 Services &Charges 56,512 133,581 77,875 136,254 136,254 Vehicles and Equipment 45,264 Total Expenditures 2,191,727 2,535,511 1,500,044 2,553,781 2,867,036 Transfer Out 16,500 16,500 30,000 16,500 Change in Fund Balance 278,156 (2,331) 142,755 10,198 (378,997) ENDING FUND BALANCE 1,145,678 1,143,348 1,288,432 1,072,206 847,567 Council Workshop 10/15/2013 Page 6 of 20 City Arts Program Fund Summary 2012 2013 2013 YTD 2014 2014 Proposed Actual Adj Budget thru AugBudget Budget BEGINNING FUND BALANCE 352,204 328,776 352,204 449,027 449,027 Revenues Transfer In from General Fund 120,251 118,280 121,080 Total Revenues 120,251 118,280 121,080 Total Resources 352,204 449,027 352,204 567,307 570,107 Expenditures Supplies Services 100,140 100,140 Art 89,164 89,164 Total Expenditures 189,305 189,305 Change in Fund Balance (189,305) 120,251 (189,305) 118,280 121,080 ENDING FUND BALANCE 162,899 449,027 162,899 567,307 570,107 The Arts Commission develops a plan for art projects and acquisitions. This plan will be presented to Council for adoption, including establishment of the expenditure budget. Council Workshop 10/15/2013 Page 7 of 20 Non-Voted Debt Service Fund Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actuals Adj Budget thru Aug Budget Budget Beginning Fund Balance 14,000 Revenues &Transfers In Non-Voted Debt Service 804,020 1,998,741 828,010 2,008,472 2,042,065 LTGO Bonds 2000 105,350 Valley Communications 170,910 240,880 229,280 229,280 LTGO Bonds 2002 988,425 LTGO/Taxable Bonds 2003 667,274 666,340 33,606 186,491 186,491 GO Refund (96) 2004 1,584,224 1,620,382 241,236 1,754,910 1,754,910 GO Refund 2005 (93, 95, 00, 96TF) 100,901 306,293 42,647 300,342 300,342 LTGO Bond 2006 770,000 758,000 229,000 1,246,000 1,246,000 LTGO Bonds 2008 1,899,400 1,773,600 549,300 1,796,600 1,796,600 GO Refund 2009 (Part 1999) 1,048,675 1,050,125 120,063 1,050,825 1,050,825 GO Refund 2012 (2000/2002) 603,669 1,347,280 183,640 1,480,139 1,358,627 Total Revenues &Transfers In 8,756,847 9,761,641 2,227,501 10,053,059 9,965,140 Expenditures Principal 5,747,813 5,713,775 775,866 6,009,687 6,054,199 Interest 2,981,033 4,047,866 1,451,635 4,043,372 3,910,941 Total Expenditures 8,728,847 9,761,641 2,227,501 10,053,059 9,965,140 Council Workshop 10/15/2013 Page 8 of 20 Water Operating Fund Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE (242,692) 1,583,484 1,583,485 1,103,594 1,103,594 Revenues Charges for Services 16,249,512 16,732,904 11,262,220 17,223,626 17,223,626 System Dev/Connection Charges 1,266,547 1,268,447 954,063 1,268,447 1,268,447 Other Revenue 713,106 144,113 140,619 144,113 144,113 Total Revenues/Other Sources 18,229,165 18,145,464 12,356,902 18,636,186 18,636,186 Expenditures (Transfers) Salaries and Benefits 3,105,497 3,006,032 1,914,893 3,046,570 3,018,743 Supplies 541,390 697,179 410,866 711,101 711,101 Services 7,035,164 7,697,979 5,203,596 7,878,544 7,889,840 Transfer Out - Projects 3,151,301 2,700,000 3,000,000 3,000,000 Transfer Out - Debt Service 46,969 48,936 5,595 47,064 47,064 Transfer Out- Central Stores 5,012 5,012 Capital Outlay 69,000 69,000 Debt Service - Principal 1,667,974 2,348,315 2,348,315 2,375,131 2,375,131 Debt Service - Interest 1,812,601 1,376,262 1,376,262 1,333,273 1,333,273 Debt Service - Other Costs Cost Allocation (737,533) (154,236) (154,236) (155,332) (155,332) Total Expenditures (Transfers) 16,623,362 17,794,479 11,179,302 18,236,351 18,219,820 Change in Fund Balance 1,605,802 350,985 1,177,600 399,835 416,366 Ending Balance 1,363,111 1,934,469 2,761,084 1,503,429 1,519,960 Council Workshop 10/15/2013 Page 9 of 20 Sewerage Operating Fund Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE 8,270,589 7,704,819 7,704,820 4,442,897 4,442,897 Revenues Intergovernmental Revenue 161,900 73,907 Licenses and Permts 61,423 50,000 35,822 50,000 50,000 Charges for Services 38,732,590 41,936,143 28,042,057 43,105,212 43,105,212 System Dev/Connection Charges 753,142 616,950 470,809 616,950 616,950 Other Revenue 31,412 51,983 7,224 51,983 51,983 Total Revenues/Other Sources 39,740,467 42,655,076 28,629,819 43,824,145 43,824,145 Expenditures (Transfers) Salaries and Benefits 4,569,685 3,859,534 2,466,649 3,905,127 3,874,480 Supplies 315,418 423,096 208,975 431,498 431,498 Services &Charges 25,668,245 27,967,203 19,379,458 28,217,489 28,211,950 Capital Outlay 186,500 Transfer Out - Projects 8,439,543 10,491,643 4,241,636 6,522,146 6,522,146 Transfer Out - Debt Service 72,852 72,814 8,325 73,004 73,004 Transfer Out- Central Stores 4,817 Debt Service - Principal 1,445,713 1,514,591 75,000 1,108,167 1,108,167 Debt Service - Interest 802,578 811,210 408,097 753,033 753,033 Cost Allocation (553,245) (639,991) (351,356) (639,991) (639,991) Total Expenditures (Transfers) 40,760,789 44,691,417 26,436,784 40,370,473 40,334,287 Change in Fund Balance (1,020,322) (2,036,341) 2,193,035 3,453,672 3,489,858 ENDING FUND BALANCE 7,250,267 5,668,478 9,897,855 7,896,569 7,932,755 Council Workshop 10/15/2013 Page 10 of 20 Golf Operating Fund Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Ad' Budget thru Aug Budget Budget BEGINNING FUND BALANCE (2,174,297) (2,395,200) (2,395,200) (2,280,581) (2,486,259) Revenues Charges for Services 1,823,239 2,201,000 1,474,708 2,218,000 2,251,000 Rentals 169,463 218,000 157,702 218,000 218,000 Leases 71,779 81,350 53,996 60,000 81,350 Sales 509,787 563,994 379,307 618,344 563,994 Miscellaneous Revenue 115,622 7,890 786 7,890 7,890 Total Revenues 2,689,890 3,072,234 2,066,499 3,122,234 3,122,234 Total Resources 515,593 677,034 (328,701) 841,653 635,975 Expenditures 18 Hole Course 1,694,756 1,724,636 1,246,422 1,754,017 1,748,935 Par 3 Course 302,746 294,944 234,490 299,546 297,894 Driving Range 471,474 479,598 278,421 488,012 485,693 Merchandising 441,817 554,930 319,355 565,013 564,478 Transfers Out 2,946 117 Total Expenditures 2,910,793 3,057,054 2,078,805 3,106,588 3,097,000 Change in Fund Balance (220,903) 15,180 (12,306) 15,646 25,234 ENDING FUND BALANCE (2,395,200) (2,380,020) (2,407,506) (2,264,935) (2,461,025) Council Workshop 10/15/2013 Page 11 of 20 Fleet Services Fund Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE 2,628,235 1,866,304 1,866,304 1,345,644 1,393,225 Revenues Fleet Operations 2,961,063 3,187,651 2,144,762 3,335,555 3,335,555 Fleet Replacement 374,875 792,850 530,073 1,042,850 1,042,850 Sale of Property 29,335 12,306 Interest Income 3,335 13,835 1,988 13,835 13,835 Total Revenues 3,368,608 3,994,336 2,689,129 4,392,240 4,392,240 Expenditures Salaries & Benefits 847,779 827,334 548,640 835,845 829,189 Supplies 1,596,595 1,583,964 958,381 1,615,815 1,615,815 Services 786,363 739,124 551,203 756,212 782,145 Capital Outlay 820,905 1,364,440 298,062 500,000 500,000 Transfers Out 78,898 134 Total Expenditures 4,130,540 4,514,996 2,356,286 3,707,872 3,727,149 Change in Fund Balance (761,931) (520,660) 332,843 684,368 665,091 ENDING FUND BALANCE 1,866,304 1,345,644 2,199,147 2,030,012 2,058,316 Council Workshop 10/15/2013 Page 12 of 20 Central Services Fund Central Stores Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE (122,352) (168,200) (168,200) 192 (39,914) Revenues Charges for Services: Central Stores 101,236 217,827 74,183 222,183 222,183 Postage 199,667 296,204 112,180 301,610 301,610 Transfers In 120,882 Total Revenues 300,903 634,913 186,362 523,793 523,793 Expenditures Central Stores 115,813 207,454 63,938 211,603 211,603 Postage 211,638 282,099 146,329 287,248 287,248 Central Services 19,301 19,361 12,907 19,555 19,555 Total Expenditures 346,752 508,914 223,175 518,406 518,406 Change in Fund Balance (45,849) 125,999 (36,812) 5,387 5,387 ENDING FUND BALANCE (168,200) (42,201) (205,013) 5,579 (34,527) Council Workshop 10/15/2013 Page 13 of 20 Central Services Fund Information Technology Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE 399,972 414,500 414,500 458,698 789,754 Revenues Utility Tax 1,040,000 785,600 1,045,200 1,045,200 Charges for Services: Internal Fees 4,533,585 4,212,504 2,659,599 4,324,362 4,618,812 Intergovernmental - RFA 471,972 444,012 299,999 452,893 452,893 Technology Fees 413,035 374,800 319 566 389,308 389,308 Total Revenues 5,418,592 6,071,316 4,064,764 6,211,763 6,506,213 Expenditures Systems&Tech Svcs Salaries and Benefits 2,138,636 1,887,305 1,084,229 2,003,262 1,895,104 Supplies 176,164 41,438 43,683 43,349 42,152 Services and Charges 1,169,621 1,196,198 1,093,055 1,259,113 1,526,968 Telecommunications Salaries and Benefits 147,407 147,009 88,730 149,498 148,420 Supplies 2,155 14,774 1,623 15,058 15,058 Services and Charges 296,732 406,661 206,646 415,337 415,287 Multimedia Salaries and Benefits 561,058 663,316 423,430 583,105 674,734 Supplies 55,733 77,012 53,371 77,282 78,479 Services and Charges 289,156 368,605 141,725 351,336 396,974 Transfers Out HW/SW Capital Projects 850,000 250,000 858,500 858,500 Long Term Lifecycle Replacement 411,764 374,800 319,566 389,308 389,308 Total Expenditures 5,248,426 6,027,118 3,706,058 6,145,148 6,440,984 Change in Fund Balance 170,166 44,198 358,706 66,615 65,229 ENDING FUND BALANCE 570,138 458,698 773,206 525,313 854,983 Council Workshop 10/15/2013 Page 14 of 20 Facilities Fund Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE 305,273 866,612 866,612 498,933 813,942 Revenues Rental Fees - Internal 4,240,371 3,997,582 2,665,055 3,997,582 4,178,609 Intergovernmental - RFA 843,316 843,316 577,390 843,316 843,316 Leases 26,918 26,916 17,946 26,916 26,916 Miscellaneous Revenue 20,683 16,269 9,789 16,269 16,269 Total Revenues 5,131,288 4,884,083 3,270,180 4,884,083 5,065,110 Expenditures Salaries&Benefits 2,082,742 2,165,481 1,302,973 2,165,481 2,169,392 Supplies 271,314 351,202 172,018 351,202 360,176 Services and Charges 1,802,990 1,873,365 1,019,432 1,873,365 1,924,181 Capital Outlay 40,500 Principal and Interest 152,903 109,115 76,452 108,166 31,714 Transfer Out-Life Cycle Projects 260,000 500,000 20,000 500,949 570,000 Total Expenditures (Transfers) 4,569,949 5,039,663 2,590,875 4,999,163 5,055,463 Change in Fund Balance 561,339 (155,580) 679,305 (115,080) 9,647 ENDING FUND BALANCE 866,612 711,032 1,545,917 383,853 823,589 Council Workshop 10/15/2013 Page 15 of 20 Insurance Fund Unemployment Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE 201,790 280,233 280,233 188,738 420,207 Revenues Contributions 389,106 402,324 252,547 402,324 402,324 Interest Income 354 250 318 250 250 Total Revenues 389,460 402,574 252,865 402,574 402,574 Expenditures Salaries and Benefits 16,592 23,951 12,730 24,262 24,115 Supplies 4,177 4,260 4,260 Services and Charges 2,796 5,087 2,097 5,189 5,189 Claims Paid 291,629 400,000 114,173 370,000 370,000 Total Expenditures 311,017 433,215 129,000 403,711 403,564 Change in Fund Balance 78,443 (30,641) 123,865 (1,137) (990) ENDING FUND BALANCE 280,233 249,592 404,098 187,601 419,217 Council Workshop 10/15/2013 Page 16 of 20 Insurance Fund Workers Compensation Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adi Budget thru Aug Budget Budget BEGINNING FUND BLANCE (509,195) 693,747 693,747 160,609 1,070,540 Revenues Contributions 1,602,991 1,656,075 1,006,908 1,656,075 1,656,075 Interest Income 3,775 3,000 2,527 3,000 3,000 Total Revenues 1,606,766 1,659,075 1,009,435 1,659,075 1,659,075 Expenditures Salaries and Benefits 66,368 106,022 50,920 107,262 106,673 Judgements and Damages 742,840 1,000,000 164,128 950,000 950,000 Ultimate Loss Adjustment (676,087) Liability Insurance 43,329 78,234 50,025 79,799 79,799 Intergovernmental Services 138,790 204,000 105,689 204,000 204,000 Adminisrative Costs 64,362 53,777 39,163 54,853 54,853 Other Expenses 4,427 16,660 5,054 16,962 16,962 Safety Program 19,795 90,262 1,116 92,066 92,066 Total Expenditures 403,824 1,548,955 416,095 1,504,942 1,504,353 Change in Fund Balance 1,202,942 110,120 593,340 154,133 154,722 ENDING FUND BALANCE 693,747 803,867 1,287,087 314,742 1,225,262 Council Workshop 10/15/2013 Page 17 of 20 Insurance Fund Health and Employee Wellness Fund Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE 4,634,833 5,963,620 5,963,620 6,062,526 6,856,399 Revenues Contributions Blue Cross 9,163,751 9,606,586 6,292,063 10,086,916 9,557,878 Group Health 392,117 424,534 247,014 445,761 445,761 Employee Share Blue Cross 907,667 1,043,069 592,115 1,095,222 1,095,222 Group Health 50,938 55,476 37,264 58,250 58,250 RFA Contributions 3,687,875 COBRA 156,845 86,282 82,862 90,596 90,596 Interest Income 10,854 10,500 3,853 11,025 11,025 Miscellaneous Income 186,012 137,568 85,546 144,446 144,446 Total Revenues 14,556,059 11,364,015 7,340,719 11,932,216 11,403,178 Expenditures Salaries and Benefits 329,982 350,704 204,419 356,411 354,212 Blue Cross Claims 10,418,590 8,045,679 4,955,797 8,881,459 8,711,459 Blue Cross Administration Fees 565,520 397,404 291,973 417,274 417,274 Blue Cross Audit Fees 59,332 60,519 60,519 Delta Dental Claims 1,027,473 811,325 484,094 860,816 860,816 Delta Dental Administration Fees 62,369 46,015 33,922 48,316 48,316 Vision Service Plan Claims 117,180 95,021 46,306 95,021 95,021 Vision Service Plan Admin Fees 26,325 14,293 15,016 15,008 15,008 Stop Loss Fees 469,190 415,113 227,359 477,380 477,380 Stop Loss Reimbursements (193,310) (349,793) (20,885) (349,793) (349,793) Group Health Premiums 443,055 531,269 279,429 610,959 610,959 IBNR Adjustment (110,300) (127,800) 61,700 61,700 Wellness 16,012 88,314 40,120 89,482 124,482 Cobra Medical Expense 9,571 Transfer Out 49 Other Professional Services 55,188 53,289 23,001 54,345 189,345 Total Expenditures 13,227,272 10,430,214 6,590,122 11,678,897 11,676,698 Change in Fund Balance 1,328,787 933,801 750,597 253,319 (273,520) ENDING FUND BALANCE 5,963,620 6,897,421 6,714,216 6,315,845 6,582,879 Council Workshop 10/15/2013 Page 18 of 20 Insurance Fund Liability Insurance Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Ad' Budget thru Aug Budget Budget BEGINNING FUND BALANCE 831,667 2,187,087 2,187,087 1,595,118 2,928,533 Revenues Contributions 2,340,300 2,340,300 1,560,200 2,340,300 1,989,256 Interest Income 6,164 4,000 4,227 4,000 4,000 Total Revenues 2,346,464 2,344,300 1,564,427 2,344,300 1,993,256 Total Resources 3,178,131 4,531,387 3,751,514 3,939,418 4,921,789 Expenditures Claims and Judgements 122,990 1,000,000 364,953 1,000,000 840,000 Insurance Premiums 664,509 719,750 691,440 755,737 755,737 Other Expenses 203,545 296,523 172,864 301,781 301,192 Total Expenditures 991,044 2,016,273 1,229,257 2,057,518 1,896,929 Change in Fund Balance 1,355,420 328,027 335,170 286,782 96,327 ENDING FUND BALANCE 2,187,087 2,515,114 2,522,257 1,881,900 3,024,860 Council Workshop 10/15/2013 Page 19 of 20 Insurance Fund Property Insurance Fund Summary 2012 2013 2013 YTD 2014 Adopted 2014 Proposed Actual Adj Budget thru Aug Budget Budget BEGINNING FUND BALANCE 104,731 141,317 141,317 146,843 160,532 Revenues Contributions 453,593 562,455 374,970 568,080 568,080 Interest Income 114 100 53 100 100 Total Revenues 453,707 562,555 375,023 568,180 568,180 Total Resources 558,439 703,872 516,340 715,023 728,712 Expenditures Brokerage Fees Insurance Premiums 387,734 510,000 494,705 520,200 520,200 Property Claims/ Deductibles 12,796 24,684 25,178 25,178 Other Costs 16,592 23,951 12,730 24,262 24,115 Total Expenditures 417,122 558,635 507,435 569,640 569,493 Change in Fund Balance 36,585 3,920 (132,412) (1,460) (1,313) ENDING FUND BALANCE 141,317 145,237 8,905 145,383 159,219 Council Workshop 10/15/2013 Page 20 of 20 Summary of Financial Accomplishments Fiscal Year 2013 The City of Kent has made great strides in 2013 towards the achievement of its financial goals, specifically in the areas of growing reserve balances and paying down internal and external debt. General Fund Reserves By the end of 2013, the General Fund will have General Fund Reserve Balance achieved: (amount in millions) ■ the 10% cash flow reserve target $10 Originally budgeted to reach 8.1% in 2013 $8 — and 10% in 2014. -s $6 ■ a fully funded Contingency for Unanticipated Costs ($1.5 million) $4 — Originally budgeted at $500k annually in $2 — 2013-2015. $o ■ the first funding for the Strategic 2012 2013 Est 2014 Bud Opportunities Fund. %Cash Flow Reserve-10%Target Per ordinance, 1% internal utility tax funding is %Contingency for Unanticipated Costs expected to sunset 12/31/2014. Estimated Strategic Opportunities Fund Governmental Funds Total Fund Balance * Governmental Funds Total Fund Balance The total governmental funds balance * amount in millions increased/will increase by: $25 ■ $17 million in 2012 (from a $14.7 million $20 deficit in 2011) $15 ■ $10 million in 2013 (estimated) $10 ■ $7.5 million in 2014 (estimated) $5 * Does not include Utilities, Golf and internal $0 service funds. 2012 2013 Est 2014 Bud Outstanding Internal Debt Outstanding Internal Debt Structured debt includes: amount in millions ■ ShoWare Operating Fund - $500k annually $30 from the General Fund $25 ■ Other Capital Projects Fund - $1m annually $20 from 2% internal utility tax $15 _ Unstructured debt includes: $10 ■- ■ Capital Improvement Fund - sale of land $5 — and excess REET over budget $0 2012 2013 Est 2014 Bud ■ Golf Complex Fund - options are currently %structured %Unstructured being evaluated Council Workshop 10/15/2013 Q.CO L O .N f/A N L a a� L - U W a C) o .� ,O - Y CD 41. 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