TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA - CM, City Manager
Telly Whitfield, Ph.D., Assistant City Manager
FROM: Tracey Broyles, Budget and Evaluation Director
DATE: June 11, 2018
RE:
Title
Adoption of the Fiscal Year 2018-2019 Budget Ordinance and Fee Schedule, the Fiscal Year 2018-2019 Strategic Plan, the Fiscal Years 2019-2023 Capital and Technology Improvement Plans, Capital Project Ordinances 2019-1 through 2019-14, Capital Project Ordinance Amendments 2019-1 through 2019-11, and Capital Project Ordinance Amendment 2018-65
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal V: Sustainable Organizational Capacity
Objective A: To ensure strong financial management with fiduciary accountability and plan for future resource sustainability by aligning resources with City priorities.
Executive Summary:
Council is asked to consider adoption of the Fiscal Year 2018-2019 Budget Ordinance and Fee Schedule which incorporate changes from the recommended budget in accordance with the summary of proposed changes distributed to Council at the June 4th work session. In addition to setting the general ad valorem tax rate at 49.95 cents, the Central Business Tax District rate at 10 cents and the Lake Valley Drive Municipal Service District ad valorem tax rate at 39.4 cents, the ordinance also levies the stormwater fee at $6.00 per month and the residential solid waste fee at $190 per year, and adopts the fee schedule presented.
Council is also asked to approve the Fiscal Year 2018-2019 Strategic Plan and the Fiscal Year 2019-2023 Capital and Technology Improvement Plans (CIP and TIP), and to adopt related capital project ordinances and capital project ordinance amendments to establish project budgets as planned.
Background:
The City Manager’s recommended budget was distributed to City Council on May 4, 2018. City Council has deliberated the recommended budget at three budget work sessions on May 10th, 17th and 24th, and a public hearing on the budget was conducted on May 29th. A summary of proposed changes to the recommended budget was distributed to Council on June 1st and updated at the June 4th work session.
The proposed budget ordinance incorporates the following changes to the recommended budget presented by staff:
• For General Fund operations, Council directed the addition of a pool at Lake Rim Park for west Fayetteville (to be financed); the addition of pool dome covers for the Bates and Westover pools for off-season operations; continuation funding for Pathways for Prosperity; signage and landscaping improvements at cemetery entrances; and, increases in fees for burial plots and other cemetery fees. In addition, staff identified the need for increased funding for debt service for the stadium and parking deck based upon final amortization tables for the limited obligation bonds.
• For Stormwater operations, Council directed an increase in the stormwater fee of $1.75 to $6.00 per equivalent residential unit per month and an acceleration of watershed studies.
• For Transit operations, Council elected not to proceed with the proposed fare increase and chose to amend Route 11 services. In addition, staff identified savings for new physical damage insurance coverage premiums based upon quotes received.
• For Solid Waste operations, staff recommended the addition of contract services to assist with a timely review of outsourcing alternatives and to mitigate any concerns of objectivity in the review.
Further refinement of the implementation of the proposed changes as listed above results in the following financial updates to the proposed budget for the fiscal year 2019:
General Fund
Expenditures:
|
Community Investment |
|
|
Pathways for Prosperity |
$ 15,000 |
|
Operations |
|
|
Pool Dome Covers |
125,000 |
|
Off-season Pool Operating Costs |
22,000 |
|
Cemetery Entrance Beautification |
20,000 |
|
Other Appropriations |
|
|
Transfer to Transit Fund |
32,314 |
|
Transfer to Environmental Services Fund |
50,000 |
|
Stadium Funding Plan - Stadium Debt Service Increase |
40,787 |
|
Capital Funding Plan - Parking Deck Debt Service Increase |
16,890 |
|
Total General Fund Expenditure Changes |
$ 321,991 |
Revenues:
|
Functional Revenues |
|
|
Off-season Pool Operating Revenues |
$ 22,000 |
|
Cemetery Fee Increase Revenues |
17,920 |
|
Interfund Transfer |
|
|
Risk Management Fund Loan Increase for Stadium Funding Plan |
40,000 |
|
Fund Balance Appropriations * |
|
|
Pool Dome Covers |
125,000 |
|
Pathways for Prosperity |
15,000 |
|
Cemetery Entrance Beautification |
20,000 |
|
Solid Waste Outsourcing Study |
50,000 |
|
July/Aug Route 11 General Fund Support |
9,602 |
|
Lake Rim Pool - 3 years debt service |
981,000 |
|
Miscellaneous to Balance |
4,792 |
|
Stadium Funding Plan - Debt Service Increase |
787 |
|
Capital Funding Plan - Debt Service Increase |
16,890 |
|
Capital Funding Plan - GF Transfer for Future Pool Debt Service |
(981,000) |
|
Total General Fund Revenue Changes |
$ 321,991 |
* Following the uses of Fund Balance and the expenditure changes above, undesignated General Fund fund balance is projected to be $20,091,512, or 12.22% of expenditures, excluding the County Recreation District.
Stormwater Fund
Expenditures:
|
Commence Five Watershed Studies, with Project Management |
$1,587,250 |
|
Miscellaneous to Balance |
1,165,440 |
|
Total Stormwater Fund Expenditure Changes |
$2,752,690 |
Revenues:
|
Functional Revenues |
|
|
Stormwater Fee - Additional $1.50 per month per ERU |
$2,752,690 |
|
Total Stormwater Fund Revenue Changes |
$2,752,690 |
Transit Fund
Expenditures:
|
Route 11 Savings for 10 Months (incl. one full-time driver position) |
( $58,166) |
|
Bus Physical Damage Insurance Premium |
( 48,000) |
|
Total Transit Fund Expenditure Changes |
($106,166) |
Revenues:
|
Bus Fares - Elimination of Fare Increases and Route 11 Adjustment |
($130,255) |
|
Federal Grants - Preventive Maintenance Funding from Route 11 |
( 8,225) |
|
General Fund Transfer |
32,314 |
|
Total Transit Fund Revenue Changes |
($106,166) |
Environmental Services Fund
Expenditures:
|
Contract Services for Outsourcing Review |
$ 50,000 |
Revenues:
|
Interfund Transfer from General Fund |
$ 50,000 |
The fee schedule presented for adoption with the budget ordinance reflects the following changes from the fee schedule included in the recommended budget:
• Transit fare increases have been eliminated
• Fee increases have been added for burial plots and miscellaneous cemetery services
• Stormwater fee change has been increased from $0.25 to $1.75 per month
The FY 2019 Strategic Plan document attached reflects the results of the February, 2018 Council Retreat, and confirms the main elements of the City’s strategic plan that represent a commitment to serving the community: The Vision for the community; the organizational Mission; Core Values; five-year Goals and Objectives that support the long-term vision for the City; and, Targets for Action (TFA) to advance progress toward the goals. The City Manager has the overall responsibility of ensuring implementation of the strategic plan. Project managers are assigned for each Target for Action and will lead implementation efforts for that target. Staff will continue the current practice of providing updates to the City Council on the advancement of the strategic plan during Council meetings. The TracStat system will also be used to monitor performance results and communicate results to the public in an effort to ensure transparency and accountability.
The FY 2019 - FY 2023 Capital and Technology Improvement Plans (CIP and TIP) presented for Council approval reflect the following changes as compared to the CIP and TIP included in the recommended budget document:
• Add pool at Lake Rim Park $3,032,500 (to be financed)
• Add two pool dome covers $ 125,000
• Add watershed studies $8,580,700
• Increase Cape Fear River Trail $ 641,532 (additional grant revenues)
• Reduce municipal agreements ($ 25,000)
While there are changes pending for the Parks and Recreation Bond projects, the CIP reflects the projects as previously listed pending final Council direction for the project updates.
Capital Project Ordinances 2019-1 to 2019-14 and Capital Project Ordinance Amendments 2019-1 to 2019-11 and 2018-65 presented for adoption are consistent with the CIP and TIP funding plans discussed.
Issues/Analysis:
Council has deliberated the recommended budget and related items at three work sessions since its introduction on May 4, 2018.
Budget Impact:
As presented in the recommended budget document and outlined above.
Options:
Adopt the proposed Budget Ordinance, Strategic Plan and related documents as presented.
Amend the proposed Budget Ordinance, Strategic Plan and related documents and adopt as amended.
Do not adopt the proposed Budget Ordinance and Strategic Plan and provide further direction to staff.
Recommended Action:
Staff recommends that Council move to adopt the proposed Fiscal Year 2018-2019 Budget Ordinance and Fee Schedule, the Fiscal Year 2018-2019 Strategic Plan, the Fiscal Years 2019-2023 Capital and Technology Improvement Plans, Capital Project Ordinances 2019-1 through 2019-14 and Capital Project Ordinance Amendments 2019-1 through 2019-11 and 2018-65 as presented.
Attachments:
Fiscal Year 2018-2019 Annual Budget Ordinance
Fiscal Year 2018-2019 Fee Schedule
Fiscal Year 2018-2019 Strategic Plan
Fiscal Years 2019-2023 Capital Improvement Plan
Fiscal Years 2019-2023 Technology Improvement
Capital Project Ordinances 2019-1 through 2019-14
Capital Project Ordinance Amendments 2019-1 through 2019-11
Capital Project Ordinance Amendment 2018-65
PowerPoint Presentation