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Home My WebLink About(2) Proposed Budget 08.17#1FY 2021-2022 Proposed Budget August 17, 2021 1 Staff Recommended Changes to Proposed Budget •General Fund (pages 2,4,14, 29) •Transfer of 1 position from City Attorney to Development Services: •City Attorney –decrease Admin Clerk II ($55,229) •Development Services/Planning –Increase Customer Svc Specialist +55,229 •Capital Reserve Fund –Equipment Schedule (page 109) •Parks & Recreation •Crew Cab for $100,000 should be 2 trucks for $100,000 •Bucket Truck for $60,000 should be Herbicide Spray Truck for $60,000 2 Highlights •A focus of this budget is on Capital Projects •Includes a five-year capital plan to assist in long term financial planning •FY2022 capital budget includes a total of $53.3 million in projects, including: •$13.5 million Streets Projects •$26.6 million in projects funded by the American Recue Plan Act (ARPA) •$4.3 million City Facilities •$1.3 million Parks and Recreation 3 Estimated Results YE 2021 •Operating Budgets were balanced in all major operating funds with the exception of a planned reduction in the Debt Service Fund •Estimates reflect a decrease in balances of $4.3 million primarily due to transfers to Capital and lower than expected revenues in the Solid Waste Fund •There was a $7.1 million positive movement from the amended budget to the year end estimate •This movement was primarily due to higher than budgeted revenues in the General Fund and Water Fund as well as management’s efforts to contain costs 4 Comparison of Assessed Value Tax Years 2020-2021 Certified Certified Inc/(Dec)% (in Billions)2020 2021 2020-2021 Inc/(Dec) Total Market Value 4,166 4,744 578 14% Less Caps & Exemptions 1,188 1,364 176 15% Taxable Value 2,978 3,380 402 13% 6 Tax Rate Calculation FY 2021-2022 •No New Revenue Tax Rate (Previously Effective Tax Rate) •Basically the tax rate needed to generate the same amount of taxes as last year •Voter Approval Tax Rate (Previously Rollback Rate) •The highest tax rate a taxing unit can adopt without holding an election •New legislation in 2021 created a modification of formula used for the M&O rate •Change in maximum rate from 8% to 3.5% without requiring an automatic election •Special provisions allow City to use 8% calculation again this year •Calculation resulted in a required $.05 reduction in proposed property tax rate 7 Proposed Tax Rates FY 2021-2022 Calculated:FY2021 FY2022 Inc/(Dec) No-New Revenue Tax Rate .781411 .705171 (.08) Voter Approval Tax Rate .814427 .740715 (.07) Proposed: M&O Rate .507979 .492084 (.02) Debt Rate .284021 .248631 (.03) Total Proposed Tax Rate .792000 .740715 (.05) 8 FY 2021-2022 Budget Highlights •Tax Rate reduction of $0.05 -From $0.792 to 0.740715 per $100 Valuation •Salary Increase for all employees –2% •Budgets are balanced in all major operating funds with the exception of transfers to capital improvements •Some adjustments to current rate structure for Water and Solid Waste •Overall –operating departments are budgeted at a “status quo” with limited additions. 9 FY 2021-2022 Budget Highlights •Funding for Capital Improvements primarily from operations, new bond issues and grants •From Operations •General Fund $7.9 million •Water Utilities Fund $1.5 million •New Bond Issues •General Revenue $10 million Street Reconstruction Program •Grants •American Rescue Plan Act $26.6 million 10 FY 2020-2021 Budget Highlights •Changes include: •Equipment purchases of $5.8 million ($2.7 million new, $3.1 million replacement) •New technology purchases of $360,000 •Increase of 10 authorized positions (3 are grant funded) •Increase of 3.8% in projected costs for health insurance •Increase of 9.4% in projected costs for general property insurance 11 New Positions •Information Technology Network Infrastructure Supervisor Digital Content Coordinator•Development Services Administrative Clerk II (Code Enforcement)•Equipment Services Heavy Equipment Mechanic•Police Secretary•Fire Captain (Suppression)•Parks & Recreation Assistant Director•Grant Funded Housing Revitalization Tech (Dev Svcs) Route Supervisor and Operator (Transit) 12 Fund Balance Policy Target Fund Balance=60 days operating expenditures Oper. Exp. Days General Fund Ending Balance (FY2022)$20.0 M 102 Required $11.8 M 60 General Fund Additional Policy Requirement $1.5 M 8 Excess $6.7 M 34 13 FY2021-2022 General Fund Addition Highlights •Keep City Clean Program (Excludes Capital Equipment $400,000)531,000 •Voting Machine Conversion (City Secretary)250,000 •Redistricting (City Secretary/City Attorney)150,000 •City wide Strategic Plan and Organizational Analysis (Admin)150,000 •GPS Vehicle Tracking Software (PW/Equipment Services)100,000 14 General Fund Summary FY 2021 Budget FY 2021 Estimate FY 2022 Proposed Revenues 76,560,164 80,239,407 77,809,914 Operating Expenditures 68,712,191 66,202,126 71,755,046 Transfers & Other Exp 18,523,141 19,446,017 13,518,500 Rev over (under) Exp (10,675,168)(5,408,736)(7,463,632) Beginning Balance 32,874,364 32,874,364 27,465,628 Ending Balance 22,199,196 27,465,628 20,001,996 15 General Fund Transfers To Other Funds FY 2021 Budget FY 2021 Estimate FY 2022 Proposed Capital Improvement 13,144,806 13,144,806 7,869,000 Capital Reserve 2,340,135 2,340,135 3,493,000 Solid Waste 1,000,000 1,000,000 General Liability 1,875,000 1,875,000 1,875,000 EDC 72,000 Transit Operating 21,000 Health Grant 108,000 108,000 96,000 Golf Course 50,000 50,000 50,000 TIRZ 5,200 5,200 42,500 Total 18,523,141 18,523,141 13,518,500 16 General Fund Department Expenditures FY 2021 Budget FY 2021 Estimate FY 2022 Proposed Budget Increase (Decrease) Administration 2,042,441 3,258,390 2,123,103 80,662 City Secretary 1,906,844 1,905,224 2,158,799 251,955 City Attorney 1,450,905 1,450,799 1,629,618 178,713 Finance 2,558,958 2,325,986 2,703,328 144,370 Information Technology 1,779,780 1,631,055 2,182,033 402,253 Human Resources 817,891 725,079 854,416 36,525 Development Services 5,207,328 5,269,384 5,630,779 423,451 17 General Fund Department Expenditures (cont’d) FY 2021 Budget FY 2021 Estimate FY 2022 Proposed Budget Increase (Decrease) Civic Center 1,110,915 1,088,062 1,185,147 74,232 Police 20,054,449 18,251,925 20,150,532 96,083 Fire 14,846,424 14,846,380 14,923,782 77,358 Public Works 10,685,135 9,513,978 11,112,868 427,733 Health 1,690,247 1,547,103 1,714,393 24,146 Parks and Recreation 3,222,006 3,050,475 3,932,305 710,299 Library 1,338,868 1,338,286 1,453,943 115,075 Total $ 68,712,191 $ 66,202,126 $ 71,755,046 $ 3,042,855 18 Water Utility Fund Summary FY 2020 Budget FY 2020 Estimate FY 2021 Proposed Revenues 28,275,003 30,184,000 30,984,000 Operating Expenditures 19,487,084 19,616,989 21,488,119 Transfers out 8,694,841 8,564,841 9,271,098 Revenue over (under) expenses $ 93,078 $ 2,002,170 $ 224,783 19 Solid Waste Fund Summary FY 2020 Budget FY 2020 Estimate FY 2021 Proposed Revenues 10,870,000 10,185,100 10,510,100 Operating Expenditures 8,087,202 8,087,000 7,091,330 Transfers out 2,824,684 2,824,684 3,396,386 Revenue over (under) expenses $ (41,886)$ (726,584)$ 22,384 20 Key Dates •August 13 Proposed budget was filed with the City Secretary and posted on the City’s website •August 17 City Council Proposed Budget Overview •August 31 Public Hearing on Budget and City Council Budget Workshop •Sept. 7 Public Hearing on Tax Rate and City Council Budget Workshop •Sept. 14 Adoption of the Budget Ordinance Denotes a special Council Meeting 21 Next Workshop August 31 Discussion : Capital and Debt Suggestions?? 22