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Home My WebLink AboutCity Council Meeting - Council Workshop - Agenda - 10/25/2005 • KENT W A S H I N G T O N NOTICE OF SPECIAL WORKSHOP Kent City Council NOTICE IS HEREBY GIVEN that the Kent City Council will hold a special workshop at 7:00 p.m. on Tuesday, October 25, 2005, to discuss the 2006 Annual Budget. The workshop will be held in the Council Chambers at Kent City Hall, 220 4th Avenue South, Kent. Any person requiring a disability accommodation should contact the City Clerk's Office in advance at 253-856- 5725. For TDD relay service call Washington Telecommunications Relay Service at 1-800-833-6388. Brenda Jacober, CMC City Clerk NOTICE OF SPECIAL WORKSHOP Kent City Council NOTICE IS HEREBY GIVEN that the Kent City.Council will hold a spe- cial workshop at 7:00 p.m.on Tuesday, October 25,2005,to discuss the 2006 Annual Budget.The workshop will be held in the Council Chambers at Kent City Hall, 220 4th Avenue South, Kent. Any person requiring a disability accommodation should contact the City Clerk's Office in advance at 253- 856-5725. For TDD relay service call Washington Telecommunications Re- lay Service at 1-800-833-6388. Brenda Jacober,CMC City Clerk Published in the King County Journal October 22,2005.#849759 n 1 ran- m � v � m ao .o a C � d p L O U <n :w C 0 o o p V E 76 t O to 0 a U U L � U Rs 3 � �a s a� N O M rl- (D L V M N O u L w U) 61 m E - a M G w C Q E a d 0 O ` s a y OEM" 3 L L R .J s a� M O = cuMOMQ H v Y u7A off 3 0 U) i C/) (A - d*_ � m+ M E ai 0 U (n > m Co 0 In N U_ E Co U) O U o � � y cu O m 5 o O ° N . 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Ln V a�N LL .a a7 C U Y 0. r d L C w C6 �• LL a o �a 00 v 3 m L a o � o Ln o W Q X d c O a Comparison of Average Per Capita Population to In-House Legal Counsel City Population City Attys Bellevue 116,500 Bellevue 8 Federal Way 83,840 Federal Way 3.5 Bellingham 71,080 Bellingham 5.5 Auburn 46,135 Auburn 3 Kirkland 45,800 Kirkland 3 Olympia 43,040 Olympia 3 Total 40 395 Total 26 Average Population 67732.5 Average # Civil Attys: 4.333333 Average Per Capita - Population to In-House Legal Counsel: 15,630.58 Kent Po ulation: 84,560 Divide by Average Per Capita: 15,630.58 Number of Civil Attys Needed to Meet Average Per Capita Pop. to In-House Counsel 5.409908014 2 Comparison of Average Per Capita FTEs to In-House Legal Counsel city FTEs City Attys Bellevue 1191 Bellevue 8 Federal Way* 476 Federal Way 3.5 Bellingham 748 Bellingham 5.5 Auburn 452 Auburn 3 Kirkland 399 Kirkland 3 Olympia 509 Olympia 3 Total 3775 Total 26 Average FTE 629.167 Average # Civil Attys: 4.33333 i I Average Per Capita - FTEs to In-House Legal Counsel: 145.192 Kent FTEs: 758 Divide by Average Per Capita: 145.192 Number of Civil Attys Needed to Meet Average Per Capita FTEs to In-House Counsel 5.22067 *Note: Federal Way has 283 FTEs on staff. The above calculations include another 130 FTEs in Federal Way's fire dist.and another 63 FTEs in its water and sewer district. Total utility district employees are approx. 100 with a 34 sq.mile service area. Federal Way is approximately 21.5 square miles;therefore, it could be estimated that 63%of the employees in the utility district serve Federal Way(63 FTEs). 1 Primary TASKS Priority Est Hours Atty CARRIED FORWARD FROM 2004& 2005 FIRE Title 13 revisions required for accreditation Mand 15 Pat Update KCC and City policy manual Code revisions concerning the Int'I Fire Code High 20 Tom PUBLIC WORKS west billing issues Mand 60 Tom Impact Fees High 150 Tom Procurement and bidding policies and regulations Med 60 Tom COMM DEVELOPMENT 2nd phase of revisions to KCC regarding code enforc. Med 40 Pat POLICE PD Corrections; ADA&program eligibility High 20 Pat ES Civil service personal history statement- revise Med 10 Pat PARKS Fees-in-lieu RE street trees and other improvements Med 15 Kim IT MOU with KSD for I-NET Med 20 Tom TOTALCARRYOVER 410 2006 TASKS ADMINISTRATION WS A Mand 50 All Kent Station Mand 200 Tom Phases 2 3 4 - Negotiation and purchase of remaining property. On going development and permitting issues. Municipal Lot Block- Park development and construction Mand 300 Tom Land transaction real estate closing, private development. Legislative Issues Mand 200 Tom &Pat General legal counsel to Mayor,Admin Council Boards Mand 520 All Committees. TOTAL ADMIN 1270 COMM. DEVELOPMENT Permit/SEPA/La nd use appeals Mand 840 Kim General legal counsel to Comm. Development Mand 300 Kim Code Enforcement Hi h 210 Julie Update of zoning code High 120 Kim TOTAL COMM DEV 1470 EMPLOYEE SERVICES Employee discipline and termination issues Mand 380 Pat Significant corrections personnel issue Mand 80 Pat Labor contracts-AFSCME Tmsters PD Fire Mgt Mand 40 Pat Will require review of contract and possible legal counsel during negotiations New performance evaluations stem Mand 30 Pat Pilot with MLT ES Law Finance. Fire and PD will need to be on board and City needs standard process for all for WS A. Pat may be needed for training. General legal counsel to Employee Services Mand 400 Pat Sick leave abuse issues High 15 Pat Employee health insurance issues HAS&VEBA High 40 Pat Civil service issues Med 20 Pat TOTAL ES 1005 FINANCE LID foreclosures IMand 20 Kim Page 1 Primary TASKS Priority Est Hours Atty General legal counsel to Finance Mand 75 Kim Bankruptcies Low 5 Kim TOTAL FINANCE 100 FIRE Contracts RFPS and surplus issues for apparatuses Mand 25 Pat General legal counsel to Fire Mand 185 Pat TOTAL FIRE 210 IT Copier lease up in April Mand 25 Tom RFP and contract negotiations Tiburon update -JDE Peo lesoft Oracle Issues Mand 80 Tom Contract negotiations- Substantially large contract Will need atty representation in negotiations KIVA Mand 20 Tom Excel Accel? bought KIVA and is trying to move its automation product General legal counsel to IT Mand 85 Tom Cable TV franchise contract High 50 Tom Comast up in 2008--negotiations begin 3 yrs. prior Back-up recovery program High 20 Tom Software hardware and services Contract negotiations Wireless network High 20 Tom Software or hardware or third party provider Prosecution management system High 25 Tom RFP contract negotiations, and staff implementation TOTAL IT 325 LAW Department head - Management of department Mand 240 Tom General department business and staff supervision Mand 340 All Mandatory CLE and training for attorneys Mand 72 All Required training in order to retain license to practice Citizen complaints and requests for information Mand 50 All Instruction preparation and presentation Med 36 All Networking and City functions Low 30 All TOTAL LAW 768 LAWSUITS Defense work for lawsuits filed against City and Mand 1200 All enforcement of City regulations as plaintiff in lawsuits initiated by the City- Includes time spent on WCIA insured claims and non-insured claims. TOTAL LAWSUITS 1200 MUNICIPAL COURT AND PROSECUTION In-custodies processed twice per month by Mand 24 Pat Deputy City Attorney Legal counsel for municipal court Mand 24 Pat TOTAL MUNICIPAL COURT&PROSECUTION 48 PARKS Quiet Title Action Mand 50 Kim Uhler property- no clear title to lot Riverview Park Service Club Ball Fields Mand 30 Kim Development issues Golf restaurant lease up in March 2006 Mand 40 Kim Current tenant may locate a new owner Will have to renew with Fire Creek or renegotiate with new owners General legal counsel to Parks Mand 175 All Page 2 Primary TASKS Priority Est Hours Atty Acquisitions High 80 Kim Dr. Lake house Dr. Lake property, Walla house Walla property, Cooper property (Central Ave. south of Kent Memorial Park Riverview Park High 60 Kim Work with Army Corps RE: salmon nesting sot and improvements—Will require extensive legal work Consultant and construction contracts Lake Meridian Boat Launch High 60 Kim Similar agreement with Army Corpas 256th flume- Will require extensive legal work Consultant and construction contracts Facility project support High 100 All Parking lot overlays Exhaust extraction at fire station East Hill Maintenance Facility Cell tower leases Floor coverings West Fenwick neighborhood park Hi h 30 Kim Kent Commons Playfields Med 40 Kim Trade with county; pool TOTAL PARKS 665 POLICE Occupational Health Services Mand 6 Pat Complete contract negotiations in 2006 Inmate overcrowding issues Mand 50 Pat ACA jail accreditation Mand 20 Pat General legal counsel to Police Mand 300 Pat Vehicle theft issue High 20 Pat Red light cameras on Hwy 99 High 40 Pat TOTAL POLICE 436 PUBLIC RECORDS Public records management and legal counsel Mand 250 25 TOTAL PUBLIC RECORDS 250 25 PUBLIC WORKS Desi n Division - S. 224th Extension - Draft&Final EIS issues Mand 80 Kim S. 224th Extension - LID Formation Mand 80 Tom S. 277th Extension 116th Ave. - LID Formation Mand 40 Tom Review and approval of development related Mand 40 All agreements Environmental - HCP issues Mand 20 Pat Lanclsburg Mine issues Mand 20 Pat Gen'I PW- General legal counsel to Public Works Mand 3001 All Construction Division - High 60 Tom 2 bridges 4 major construction contracts outside of contract property access construction and easement review issues. Design Division - 116th Ave. SE&228th St. Grade Separations High 120 Kim Property transactions and condemnation issues Review utility relocation/joint trench agreements High 40 Tom with Qwest, Comcast PSE for 116th Ave. East Valle H - Review Comcast Qwest, and High 15 Kim PSE agreements East Valle Hwy- LID Formation High 40 Tom S. 167 Agreement w WSDOT High 30 Tom Page 3 Primary TASKS Priority Est Hours Atty Contracts-various issues High 20 Tom Environmental Meridian outlet-Work with Army Corps; Will High 60 Kim require extensive legal work Property Management Sale of Ramstead Plat High 10 Kim Water Division - Med 160 Tom WD 111 Assumption Design Division - S. 272nd I-5 ROW negotiations Med 80 Tom S. 272nd I-5 Utility relocation Med 80 Tom S. 272nd I-5 agreement with WSDOT Med 20 Tom S. 272nd I-5 Agreement with Sound Transit Med 60 Tom Development Ordinance for penalties due to permit violation Med 20 Julie and/or illegal construction activities w/o permit Design Division - S. 228th St. Extension Utilities Low 40 Tom TOTAL PUBLIC WORKS 1435 TOTAL2006 9592 TOTAL 2004 2005 CARRYOVER 410 TOTAL HOURS OF LEGAL COUNSEL NEEDED 10002 TOTAL MANDATORY(Carryover&2006 7381 ATTY HOURS AVAILABLE FOR WORK 5274 REMAINING HOURS AFTER MANDATORY 2107 TOTAL HIGH (Carryover&2006 1475 ATTY HOURS AVAILABLE FOR WORK -2107 REMAINING HOURS AFTER HIGH 3582 TOTAL MEDIUM (Carryover&2006 661 ATTY HOURS AVAILABLE FOR WORK -3582 REMAINING HOURS AFTER MEDIUM 4243 TOTAL LOW(Carryover&2006 75 ATTY HOURS AVAILABLE FOR WORK -4243 REMAINING HOURS AFTER LOW 4318 Page 4 r y .4 AA io City of Kent, Washington 2006 Proposed Annual Budget 1 2006 City of Kent Proposed Annual Budget We are presenting this proposed annual budget for the City of Kent for your review. The budget covers all funds and accounts of the City for the 2006 fiscal year. What is the Budget? The Annual Budget for the City of Kent can be viewed as the action plan for the City presented by its costs. The Budget process takes the priorities and plans of the Mayor, City Council and residents and turns them into the components necessary to accomplish the tasks. The Budget takes the necessary components and determines their costs. - 1 Budget and Financial Policies Contained within the Budget document are a recital of the policies that govern the budget and financial process. They are listed in four separate groups: Budgeting Policies Financial Principles Investment Policies Expenditure Control Procedures The Budget Structure The City Budget is comprised of a number of individual budgets. Each of these Budgets represents a grouping of cost centers under an umbrella of a Fund. The simple way to look at all of these individual budgets is as if the City was a conglomerate company and each of the funds was a company we owned. _ 2 The Budget Structure The General Fund is the largest individual budget and contains those functions traditionally thought of as Government functions: Police, Fire, Public Works and Parks. The Special Revenue Funds contain revenue sources limited to specific uses and grants for specific purposes. The Debt Service Funds contain the amounts to annually pay the principal and interest on our outstanding obligations. The Budget Structure The Capital Projects funds contain the funds to undertake the projects scheduled for the first year in the capital improvement plan. The Enterprise funds are those utility and other functions that are operated on a fee- for-service basis like a private enterprise. The Internal Service funds are similar to enterprise funds except they provide services to other funds and functions of the City. 3 Revenues — Taxes and Fees The City levies taxes on property, sales, utilities and other items to support those services for which no individual fee is charged. The general governmental services such as police, fire, streets and parks are examples of these tax supported services. The City charges fees for those services that are more individual in nature and lend themselves to a fee-for-service structure. Revenues and Sources of Funds For the 2006 year the City has four main sources of funds to finance its operations. These sources are: Taxes all types 52% Charges for services 32% Miscellaneous 12% Beginning Balances 4% 4 Total City Sources Beginning Balances Int.&Misc. r 4% Licenses&Permits 6% I 2% Property Tax 19% Intergoverm. 5% Fines&Forfeits \ 1% _Sales Tax t 16% Charges for Services 29 Utility&Other Taxes 15% Property Taxes The property taxes paid on all properties within the City represent over 19% of the total revenues received by the City. The growth in the amount of taxes that the City receives is limited to 1 % annually by Initiative #747. Overall, the City's portion of the total tax bill is about one-fifth or 22%. 5 Assessed Value and Tax Rates 1p 3.4 9 3.3 8 3.2 7 � 6 O = O C 5 3 Value m `m Tax Rate 4 2.9 4- 3 2.8 2 2.7 1 0 2.6 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 est. 2005 Property Tax Allocation Library Green River 4% EMS Flood Hospital 2% 0.4% District Kent 0 1/0 22% Kent Schools 37% State 21% Port of Seattle 2% County 11% 6 Property Taxes Our residents often point out that their property taxes are growing much faster than the 1% increase allowed. This is because Initiative #747 focused on the total of taxes and not what drives the taxes, the assessed value of the property. As the King County Tax Assessor has increased values on single family homes much faster than on businesses, there has been a major shift in property taxes from businesses to homeowners. Percentage Growth in Total Valuation and Residential and Commercial Valuation 15 10 5 �... m M =Home d 0 a -5 -10 -15 1999 2000 2001 2002 2003 2004 2005 7 Cumulative Relative Change in Value: Commercial and Single Family Homes as a % of the Total Taxable Value - - - - - 60% i 55% m R m 50% Commercial L ■Residential a 45% 40% 1998 1999 2000 2001 2002 2003 2004 2005 Sales Taxes The sales tax that everyone pays on purchases of goods and services produces 18% of the total revenue of the City. Of the total of $8.80 per $100 in sales taxes, the City receives $.85 or 9.7% of the tax. The bulk of the sales tax goes to the State which gets $6.50 or 73.9% of the tax. 8 SALES TAX DISTRIBUTION Per$1,000 of Sales County $1.50 State $65.00 —--� 1.7% 73.9% i ,-- City of Kent $8.50 9.7% Metro$8.00 9.1% Criminal i RTA$4.00 Justice$1.00 4.5% 1.1% Sales and Use Taxes Sales and Use Tax revenues have rebounded strongly during the economic recovery. Our 2004 and 2005 Sales Tax revenues are up over 18% from the 2003 year. We anticipate that the current upward trend will continue and be positively impacted by the opening of Kent Station. We project our revenue will be up in 2006 approximately 5% over the level of 2005. We direct 25% of sales tax to capital for one time expenditures and to increase the investment in the City's infrastructure. 9 Sales and Use Taxes 23 -- 22 I 21 20 .° 18 2 17- = i 1s 1514 I �,f ! 13 - - 1995 1997 1999 2001 2003 2005 Utility Taxes The City imposes a 6% tax on water, sewer, electricity, gas and telephone and an 7.8% tax on sanitation. These taxes are estimated to generate almost $15 million for the 2006 budget year. 10 Utility Tax Revenues 16 14 �. j 12 0 10 4 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Charges for Services The charges for services for the City are mainly related to our utility and enterprise services. The general fund has charges for various services, principally recreation fees. The total charges for services citywide is approximately $39.3 million and represents 29% of total City revenue. 11 Charges for Services amounts in$ millions General Fund, 3.571 Water,8.275 \�Golf,3.159 Drainage,8.18—/ Sewer,16.233 Intergovernmental Revenue Intergovernmental revenue is specifically dedicated revenue such as the EMS levy, fuel taxes and excise taxes. This revenue also contains grants such as Community Development Block Grant and grants for capital projects. This source of funds represents approximately 5% of total City revenues. 12 Licenses and Permits Fines and Forfeitures Both of these revenue sources are related to General Fund activities. Licenses and permits relate to business licenses and permit activity for building. Fines and forfeitures relate principally to the activities of the Municipal Court. The two sources are included at the beginning of this presentation as charges for services and they represent 2% and 1 % of total revenue respectively. Interest and Miscellaneous Revenues Interest and Miscellaneous revenues are estimated at slightly under $8 million for the 2006 year. Interest income is estimated at approximately $2.7 million and all other at $5.3 million. The $5.3 million in other miscellaneous revenue covers approximately 100 line items and includes rents, system development charges and asset sales. The total category represents 6% of total revenue. 13 Fund Balances The fund balances of the various funds of the City will be reduced by slightly over $6 million in the 2006 budget. The target balance for the General Fund is increasing from 6.4% to 7.4%. Major changes in fund balances occur in the Special Assessment Debt Service Fund (-$1 .1 million), the Water Fund (-$2.2 million) and the Fleet Fund (-$1 .8 million). Operating Expenditures — 2006 The total 2006 budget is approximately $179.4 million for all funds. The net expenditures (less the Internal Service Funds and internal transfers) is approximately $137.7 million. 14 Total 2006 Budget amounts in $millions Internal Trust Funds, General, Service,--- 0.36 l 71.34 28.96 Y t \� Enterprise, 39.26 Capital Debt Special Projects, Service, Revenue, 5.63 14.23 19.63 City staffing City staffing has declined from a high of 826 positions in 2002 to the proposed 786 positions in 2006. We are proposing the addition of 8.25 full time equivalent positions for the 2006 budget. The new positions are: one civil attorney one transportation engineer one parks maintenance worker one code enforcement officer one police patrol officer one police public education specialist one environmental engineer two facilities maintenance workers reduction of a three-fourths safe havens project coordinator. 15 City Staffing by Year 900 ❑General Gov. 800 ' ■Capital Projects 700 ❑Internal Services 600 ■Enterprise 500 ■Health and Human Services 400 0 Leisure Services 300 ®Com.Dev.&Public Works 200 ❑Public Safety 100 0 1999 2001 2003 2005 Total Expenditures There are two alternative ways to view the expenditures of the City. The next slide shows the expenditures by type, such as salaries and benefits, supplies, etc. The slide following shows the expenditures by function, such as public safety, parks, etc. 16 Total Expenditures by Type Supplies Capital 4.8% 9.6% Debt Service 12.5% Salaries& Benefits 52.3% Services 20.8% City Expenditures by Function Debt Service 12.7% Health& Human Public Safety Services \ 36.8% 2.8% \� Com.Dev./Pub. � Wks. k 33.7% aG Y+ General Government 4.5% Leisure Services 9.5% 17 The General Fund The General Fund is the major operating unit of the City. The expenditures from this Fund are primarily personnel related. The cost centers in this fund are the traditional governmental services such as police, fire, public works and parks. Most of these services are not on a fee-for- service basis and are supported by taxes. General Fund Expenditures by type Transfers& Services&Allocations CapitalU 9"/0 19.1% Supplies 3.9% Salaries& Benefits 76.1% 18 General Fund - $71 .3 Million Expenditures by Program Public Safety 64.1% General Government 8.1% Health&Human Services �\ Com. Dev./Pub. 4.1% - Wks. Leisure Services 11.2% 12.4% General Fund Public Safety Within the General Fund, Public Safety represents over 64% of total expenditures. Included in this group are: Police $ 21.957 Million Fire and life safety 19.956 Million Municipal court 1.932 Million Training center .123 Million Prosecutor's office .201 Million Youth/teen programs .796 Million Civil service commission .080 Million Total $ 45.083 Million 19 General Fund Public Safety 50 40 ■Civil Service ■Youth/Teen 30 ■Prosecutors 1❑Training 2 20 — I !Court 1 1 Fire&Life Safety i:1 Police 10 0 i 2003 2004 2005 2006 General Fund - Community Development/Public Works The Community Development/Public Works segment comprises 12.4% of the General Fund. Included in this group are: Permit center $ 732,308 Planning services 1,222,930 Building services 1,606,360 Community Development admin. 652,288 Engineering 2,295,718 Streets 2,283,265 _ Hearing examiner 72,459 Planning Commission and Boards 6,623 Total $ 8,871,951 20 General Fund - Community Development/Public Works 9 8 �. 7 ■Hearing & Board 6 0 Streets 0 5 I El Engineering 4 CD Admin. 2 17 Building Services 3 ❑Planning Services 2- ■Permit Center 1 0 2003 2004 2005 2006 General Fund Leisure Services Leisure services is the Parks and Recreation department and it comprises 11 .2% of the General Fund expenditures. 21 General Fund Leisure Services s 6 c 5 0 4- 3- 2- 0 2003 2004 2005 2006 General Fund Health and Human Services The Health and Human Services segment of the General fund totals 4.1 % of the total. Included in this grouping are: Human services agencies $ 663,049 Senior center 1 ,157,207 Special populations programs 395,204 Health and Human Services 728,882 Total $ 2,944,342 22 General Fund Health and Human Services 3.5 3 2.5 1_I Human Service _ _ ._ Agencies 0 2 f I Special Populations) M 1.5 0 Health & Human 1 Services Senior Center 0.5 0 2003 2004 2005 2006 General Fund General Government The General Government group represents 8.1% of the General Fund. All of the administrative areas of the Fund are represented in this group. The group contains: Mayor $ 1,329,876 City Council 250,200 City Clerk 435,562 City Attorney 617,991 Employee Services 1,328,874 Finance 1,822,069 Total $ 5,784,572 23 General Fund General Government 6- 5- 4 ■Finance y ®Employee Services C = 3 ❑City Attorney ❑City Clerk 2 ®City Council ®Mayor 1 0 2003 2004 2005 2006 Special Revenue Funds The Special Revenue Fund group is made up of those funds that originate from grants or dedicated revenues for specific purposes. In this area there are the following funds: Street Lodging Tax Youth/Teen Capital Improvement Criminal Justice Environmental Mitigation Community Block Grant Operating Projects. 24 Special Revenue Funds $18,849,889 Expenditures by Fund (amounts in$millions) Block Grant, 0 Street,4.443 Environmental, 0.gg Operating 0 g Projects,0.316 0.311 Criminal Lodging,0.161 Justice,2.75 Youth/Teen, 0.615 Capital Improvement, 10.161 Special Revenue Funds - Capital Improvement Fund $10, 160,982 The Capital Improvement Fund is the largest fund in this group at slightly over 50% of the total. It receives 25% of the sales tax revenue and the real estate excise tax monies as its ongoing revenues. J The projects included are the first year of the Capital Improvements Plan. 25 Special Revenue Funds Street Fund $4,443, 154 The Street Fund is the second largest fund in this group at 23% of the Special Revenue Funds. This fund receives its revenue from the fuel tax, dedicated to street work, and approximately one-sixth of the Utility Tax. The expenditures from this fund are for arterials, intersections, debt service on street bonds and traffic lighting. Special Revenue Funds Criminal Justice Fund $2,750,252 The Criminal Justice Fund represents approximately 14% of the Special Revenue Funds group. The Fund receives an allocation of sales tax (.1 %) as well as Motor Vehicle Excise Tax and seized assets from the Drug Task Force. The Fund uses its money to pay officers' salaries, undertake police projects, pay prosecutors' salaries and fund the domestic violence program. 26 Debt Service Funds The Debt Service Funds of the City are used to pay the annual cost of outstanding bonds for capital improvements. There are three debt service funds: Voted, Limited Tax General Obligations & City Share of Local Improvement Districts and Special Assessment (balance of LTD's). The total expenditures for debt service are $14,232,899. Debt Service Funds $ 14,2321199 Voted Special 12.9% Assessment 31.8% Pj OUGO 55.3% 27 Debt Service Funds Voted Debt Service $ 1 ,782,609 The Voted Debt Service Fund is used to pay the costs of debt authorized by the voters in general elections. There are two outstanding issues, the 1993 and 2004 General Obligation Refunding Bonds. The estimated property tax levy rate for these issues is .195 mills, down from .203 mills in 2005. Debt Service Funds — Limited Tax General Obligation Debt Service $7,619,936 The Limited Tax General Obligation Debt Service Fund is used to pay the annual costs of non-voted general obligation debt, the City's share of local improvement districts and other long-term debt. The principal portion of this annual cost is $4.568 million and the interest cost is $3.052 million. The revenue for the Fund comes in through transfers from other funds. 28 Debt Service Funds Special Assessment Fund $4,380,354 The Special Assessment Debt Service Fund is used to pay the property owners' costs of outstanding Local Improvement Bonds. The assessments are billed annually to benefited properties to pay that year's principal and interest portion of the debt. : The Fund will pay $3,420,000 in principal and $960,354 in interest for the 2006 fiscal year. Capital Projects Funds The City maintains five Capital Projects Funds: Street Projects, Parks Projects, Technology Projects, Facilities Projects and Other Capital Projects. These Funds are estimated to spend $5,629,000 during 2006. The projects incorporated into these funds are listed in detail in the Capital Improvement Plan for 2006-2011 . 29 Capital Projects Funds $5,629,000 Other Street 14.9% 24.1% Facilities 17.4% 490 Technology Parks 0 9.1 0 34.5% Enterprise Funds $39,261 ,515 The City maintains six funds in this group. Three of the Funds: Utility Clearing, Utility Billing and Public Works Administration & Warehouse are operated on a cost recovery basis with the costs charged to the other three enterprise funds and resulting in a $0 budget. The three operating funds: Water, Sewer & Drainage and Golf are the cost centers and are operated on a fee-for-service basis. 30 Enterprise Funds 40 35 30 = 25 ❑Golf 20 ®Sewer& Drainage 15 ■Water 10 5 0 2003 2004 2005 2006 Internal Service Funds $28,9581539 The City maintains five Internal Service Funds to service the needs of City operations. These funds are: Equipment Rental, Central Services, Information Technology, Facilities and Insurance. These funds provide a means to distribute the costs of their services to user departments on the basis of their use. 31 Internal Service Funds $28,958,539 30 25 El Insurance a V 4 20 ❑Facilities 15- ❑Information Technology 10 ®Central Services 5 ■Equipment Rental 0 — 2003 2004 2005 2006 Internal Service Funds Equipment Rental Fund $5,683,438 The Equipment Rental Fund provides the service and repair to all of the City's fleet of vehicles. It also maintains the radio equipment for all City operations. It uses a chargeback system to recover the cost of equipment so that it can purchase replacements when necessary. The replacement program includes all vehicles and major equipment including fire engines. 32 Internal Service Funds Information Technology $4,334,807 The Information Technology Fund is responsible for the computer hardware and software for the City. It is responsible for the information flow to the public through television and the City's web site. This Fund also coordinates the City's telephone system. Internal Service Funds Facilities Fund $4,436,129 r_ The Facilities Fund is responsible for the planning, leasing, improving, remodeling and constructing of City buildings. It also provides the building maintenance for certain City buildings. It maintains over 420,000 square feet of building space and over 45 acres of grounds. 33 Internal Service Funds Insurance Fund $13,8691742 The Insurance Fund is actually five separate funds for various types of insurance. The Funds are: Unemployment Compensation, Worker's Compensation, Health & Welfare, Liability and Property. Internal Service Funds Insurance Fund $13,869,742 14 12 10 0 Property o 8V ❑Liability ❑Health 6 ■Worker's Comp 4 ■Unemployment 2 0 2003 2004 2005 2006 34 Health Insurance $ 10,392,787 The Health Insurance Fund accounts for the insurance costs of the City. We are anticipating an 11% increase in our claims cost for the 2006 fiscal year. The revenue for the Fund comes from the employees (14%) and the City (86%). The Employee Services Department is developing a pilot program on Health Care Savings Accounts (HSA). Budget Calendar After this workshop on the Budget, discussions can take place at the Operations Committee of 11/1, 11/15 and 12/6. There will be a second workshop prior to the Council meeting of 11/15. At the 11/15 City Council meeting there will be the second public hearing on the budget and the hearing on the tax levy. The Administration will be looking for a recommendation on the budget from the Operations Committee of 12/6. Consideration of the adoption of the budget will be at the City Council meeting of 12/13. 35 Questions, Comments, Concerns If you wish some issue to be discussed in more depth for our next session in three weeks, please let me know so that I may gather the information you need. plan to contact each of you in the intervening period to meet individually with you to discuss any issues or concerns that you may have of the proposed budget. 36