TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA - CM, City Manager
Jay Reinstein, Assistant City Manager
FROM: Tracey Broyles, Budget and Evaluation Director
DATE: June 26, 2017
RE:
Title
Adoption of the Fiscal Year 2017-2018 Budget Ordinance and Fee Schedule, the Fiscal Year 2017-2018 Strategic Plan, the Fiscal Years 2018-2022 Capital and Technology Improvement Plans, Capital Project Ordinances 2018-1 through 2018-12, and Capital Project Ordinance Amendments 2018-1 through 2018-12
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Mission: The City provides resilient and sustainable municipal services in a cost-effective manner to create a business friendly environment where citizens thrive and prosper.
Executive Summary:
Council is asked to consider adoption of the Fiscal Year 2017-2018 Budget Ordinance which incorporates changes to the recommended budget in accordance with Council direction at the June 19th special budget 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 $4.25 per month and the residential solid waste fee at $108 per year, and adopts the fee schedule presented.
Council is also asked to approve the Fiscal Year 2017-2018 Strategic Plan, and the Fiscal Year 2018-2022 Capital and Technology Improvement Plans which reflect revisions confirmed by Council at the June 19th work session, 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 presented to City Council on May 8, 2017. City Council has deliberated the recommended budget at five budget work sessions on May 11th, 18th and 25th, and June 13th and 19th. At the June 19th work session, Council voted on final direction for changes to the recommended budget.
The proposed budget ordinance incorporates the following changes to the recommended budget presented by staff:
• Add Sunday bus service
• Add funding for a downtown parking study
• Remove planned funding for the construction of a parking deck behind City Hall
• Maintain the general tax rate at 49.95 cents per $100 (2.75 cents below the calculated revenue neutral rate of 52.7 cents)
• Increase the residential solid waste fee from $48 to $108 to allow for the general tax rate to remain unchanged
• Add use of $150,000 of fund balance for potential required payments for “pension spiker” benefit costs to allow for a recurring source of funds for the added Sunday bus service
Incorporation of the changes above results in the following updates to the proposed budget for the fiscal year 2018:
General Fund Expenditures
|
Community Investment |
|
|
Parking Study |
$ 100,000 |
|
Operations |
|
|
Parks & Recreation Bond Funding |
1,082 |
|
Other Appropriations |
|
|
Transfer to Environmental Services Fund |
(3,712,225) |
|
Transfer to Transit Fund for Sunday Service |
95,596 |
|
Capital Funding Plan Debt Service |
(166,031) |
|
|
|
|
Total General Fund Expenditure Changes |
($3,681,578) |
General Fund Revenues
|
Current Year Ad Valorem Taxes |
($3,687,754) |
|
Fund Balance Appropriation |
|
|
Capital Funding Plan |
(159,735) |
|
Parking Study |
100,000 |
|
Pension Spiking Costs |
150,000 |
|
Miscellaneous to Balance |
(84,089) |
|
(Allows for recurring funding for annual for |
|
|
costs of Sunday bus service implemented |
|
|
34 weeks in FY2018) |
|
|
|
|
|
Total General Fund Revenue Changes |
($3,681,578) |
Environmental Services Fund Revenues
|
|
|
|
Functional Revenues |
|
|
Residential Solid Waste Fee |
$3,712,225 |
|
Interfund Transfer from General Fund |
(3,712,225) |
|
Total Env. Svcs. Fund Revenue Changes |
$ 0 |
Transit Fund Expenditures
|
Sunday Bus Service* |
$219,532 |
*Includes staffing additions of 5.6 FTE positions, overtime, temporary employee wages, and operating costs primarily including fuel and vehicle maintenance for 34 weeks.
Transit Fund Revenues
|
Bus Fares |
$11,134 |
|
Federal Grants |
|
|
Preventive Maintenance |
42,482 |
|
Operating Assistance |
70,320 |
|
General Fund Transfer |
95,596 |
|
|
|
|
Total Transit Fund Revenue Changes |
$219,532 |
The fee schedule presented for adoption with the budget ordinance is unchanged from the fee schedule included in the recommended budget.
The FY2017-2018 Strategic Plan document attached reflects the results of the February, 2017 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 2018 - FY 2022 Capital and Technology Improvement Plans (CIP and TIP) presented for Council approval reflect the changes distributed and discussed at the June 19th work session. Those changes include the elimination of the proposed project to construct a parking deck behind City Hall, and adjustments to the stormwater project schedule in future fiscal years.
Capital Project Ordinances 2018-1 to 2018-12 and Capital Project Ordinance Amendments 2018-1 to 2018-12 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 five work sessions since its introduction on May 8, 2017.
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 2017-2018 Budget Ordinance and Fee Schedule, the Fiscal Year 2017-2018 Strategic Plan, the Fiscal Years 2018-2022 Capital and Technology Improvement Plans, Capital Project Ordinances 2018-1 through 2018-12 and Capital Project Ordinance Amendments 2018-1 through 2018-12 as presented.
Attachments:
Fiscal Year 2017-2018 Annual Budget Ordinance
Fiscal Year 2017-2018 Fee Schedule
Fiscal Year 2017-2018 Strategic Plan
Fiscal Years 2018-2022 Capital Improvement Plan
Fiscal Years 2018-2022 Technology Improvement
Capital Project Ordinances 2018-1 through 2018-12
Capital Project Ordinance Amendments 2018-1 through 2018-12
PowerPoint Presentation