2017-2018 PROPOSED BUDGET PRESENTATION - · PDF file2017-2018 proposed budget presentation . by: adam brown, ... transfers. debt service. ... $300,000. $400,000. $500,000

M A Y 9 , 2 0 1 7

2017-2018 PROPOSED BUDGET PRESENTATION

BY: ADAM BROWN, BUDGET OFFICER, CITY MANAGER

THANK YOU

Budget Committee Ronald Verini, Mayor Darin Bell Norm Crume Council President Michael Braden Thomas Jost Michael Blackaby Ramon Palomo LeRoy Cammack Tessa Winebarger John Hall Marty Justus Bob Quinn Betty Carter Judy Snyder

5/9/2017 2017-2018 Budget Presentation 2

THANK YOU

• Kari Ott, Finance Director • Tori Barnett, City Recorder • Terry Leighton, Fire Chief • Anita Zink, Human Resources Manager • Cal Kunz, Police Chief • Debbie Jefferies, Recreation Manager • Dan Cummings, Community Development Director • Sheri Smith, Technology Supervisor • Cliff Leeper, Director of Public Works • Betsy Roberts, City Engineer


PROCESS

• Look Back at Finances Historically • Projection of Finances Forward • Strategic Direction From Council (just begun and will

continue) • Departments Submitted Requests • We Solicited Ideas for Filling the Gap • Collaboration on Ideas and Collaboratively Worked

Together to Solve Problems • Generated Some Permanent Efficiencies • Generated a Proposal for the Budget Committee


NEW TO THE BUDGET

Performance Metrics Five-Year Capital

Improvement Plan Financial Forecasting Staff Collaboration on

Solutions and Priorities Functional Organization

Charts for each Department Strategic Direction from

Council Fund Balance Planning


CITY CORE VALUES


STRATEGIC DIRECTION

• Communication • Changing the Narrative, Engaging Partners, Communicate

Positivity, Engage Individuals to Solve Community Challenges • Revenues

• Financial Stability, Revenues for Critical Services, and public safety

• Safety • Create a Feeling of Safety, Keep School Zones Safe, Serve

Special needs Populations • Vision

• Sustainability of Critical Services such as Fire, Police, Roads, and Water, Create Community Amenities, Sustainable City Organization


REVENUE HISTORY


$-

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

$16,000,000.00

$18,000,000.00

$20,000,000.00

2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD2016

TOTAL CITY REVENUE

Revenue

Revenue without grants

FUND BALANCE

All revenues were previously budgeted in contingency

Fund Balance Retention Policy

Planned Use of Fund Balance

Continuity of Operations

Cash Flow


-$1,000,000

-$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2014 2015 2016 2017 2018 2019 2020 2021Reserve RecommendationAnnual Surplus/(Deficiency)Ending Fund Balance

TEN YEAR GENERAL FUND BUDGET HISTORY


$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

TRANSFERSDEBT SERVICECAPITAL OUTLAYMATERIALS & SUPPLIESPERSONNEL

2018 PROPOSED REVENUES


APPLICATION, $1,500

BUSINESS REGISTRATION, $1,700 CEMETERY, $45,500

CODE ENFORCEMENT, $10,998

FIRE, $133,622

FRANCHISE FEE, $1,634,300

GENERAL FUND REVENUES, $3,015,703

PARKS, $101,900

POLICE, $202,475

RECREATION, $74,900

TAXES, $3,575,489

$8,798,087


$2,954,085

$3,497,671

$1,665,241

$3,015,703

$3,575,489

$1,634,300

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

General Revenues Taxes Franchise Fees

NON DEPARTMENTAL REVENUES

REVENUES 2017-2018

REVENUES 2017-2018


$1,500

$60,800

$1,900 $1,500

$133,622

$10,048

$216,845

$71,400

$1,700

$45,500

$101,900

$1,500

$133,622

$10,998

$202,475

$74,900

-

50,000

100,000

150,000

200,000

250,000

BusinessRegistration

Cemetery Parks CommunityDevelopment

Fire CodeEnforcement

Police Recreation

DEPARTMENTAL REVENUES

2017 Proposed 2018

GENERAL FUND

2016-2017 Use of Fund Balance • Budgeted

$450,000 2017-2018 Use of Fund Balance • Proposed

$850,000


$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2015 2016 2017 2018Proposed

2019Proposed

GENERAL FUND BEGINNING FUND BALANCES

Recommended Reserve

BUDGET DRIVERS

• Street Fund • PERS • Insurance • CH2M Contract • Union Increases


STREET FUND

• Contract Costs Exceed Revenues • Revenues Come From

• City share of fuel tax (based on population) • Transient Occupancy tax (26.25%) • Public Works Franchise Fees


5/10/2017 17 Sales Tax Forum

2015-2017 RATES 2017-2019 RATES

TIER ONE/TWO 22.69% 28.49%

OPSRP GENERAL SERVICE

14.89% 17.72%

OPSRP POLICE & FIRE 19.00% 22.49%

*City also pays 6% for union employees

PUBLIC EMPLOYEE RETIREMENT SYSTEM (PERS)

The City of Ontario is obligated for all the past and current employees and cannot opt out of the system for future employees.

5/10/2017 18 Sales Tax Forum

2015-2017 RATES 2017-2019 RATES

2016-2017 PERS BUDGETED AMOUNTS

$719,037 $847,778

Difference $128,741 17.9% expense increase

PUBLIC EMPLOYEE RETIREMENT SYSTEM (PERS)

The City is required to make these payments

INSURANCE

• Liability increase 2.7% • Auto Physical Damage increase 6.5% • Property increase 7.3% • Medical insurance increase 5% • Vision Increase 5% • Dental Increase 2% • Life Insurance increase 0% Total Increase ~$45,000


CH2MHILL CONTRACT

3.1% INCREASE BUDGETED


$157,548

Formula Increase 4.25%

UNION INCREASES

• JULY 1, 2017 1% INCREASE - $24,562 • JANUARY 1, 2018 1% INCREASE-$28,679


FIRE DEPARTMENT

POLICE DEPARTMENT

• JULY 1, 2017 2.5% INCREASE-$79,509 • DECEMBER 31, 2017-.5% INCREASE-$84,606

WHEN THE DUST SETTLED

First Draft

• We had a $700,000 gap to fill

Today We have closed that gap with a number of recommendations.

Deferment of Capital Projects Street Maintenance Fee No increases to compensation Efficiencies


STRATEGIES

7,975,492

8,225,492

- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000

GENERAL REVENUES2018 First Projection2018 Revised Projection


Estimated Year-End Savings +$200,000 Re-estimated Tax Revenue +$50,000 Total +$250,000

RE-VISITED REVENUE PROJECTION

STRATEGIES


Transfer Fully Depreciated Assets to Other Departments

Value

$-

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

2011 2012 2013 2014 2015 2016 2017

$60,000.00

$50,000.00

$40,000.00

$30,000.00

$20,000.00

$10,000.00

0

$60,000 Truck Depreciated Over 6 Years

Either purchase vehicles or equipment after a few years, or wait until they are full depreciated to transfer to another fund.


Revenue Possibilities Considered Sales Tax – Capture funding from outside the city $3,000,000

Public Safety Fee (with Utility Billing) $228,000-$364,800

Street Maintenance Fee (with Utility Billing) $228,000-$364,800 Voter Approved Public Safety Operating Tax

Voter Approved Dedicated Street Maintenance Tax Gas Tax $.01 – capture a lot of out of town money with two truck stops

$258,000

Recreation District – would create new administrative structure Cemetery District – Need to evaluate fees

STRATEGIES

PLAN

Edits – Should be done regardless


Description Savings Service Level Impact Adjustment for new hire (comp & wage)

$20,486 None

Savings in Contract Labor. Move seasonal recruitment in house.

$4,000 No referees for Division 1 & 2 Soccer and some other youth sports. Parents will run games as is common in other leagues.

Parking Lot at Community Development Center

$20,000 CH2M will provide site prep work for the general fund match portion.

Parks Vehicle – Transfer asset from Water Department

$20,000 No service impact

Mower cost split shared between water, sewer, and parks.

$40,000 No impact

PLAN

Capital Project Deferment and Scope Changes


Description Savings Service Level Impact Chip and Seal $70,000 No chip and seal for one year, just crack fill.

Eliminate Tennis Court Resurfacing

$45,000 Further deterioration – seek grants.

Road Repair $40,000 Public Works staff will conduct part of the labor on W. Idaho/NW 8th St. and SE 2nd St/SE 3rd Ave.

Curb and Gutter – reduce budget for unplanned curb and gutter repair.

$30,000 Impact of losing this item is minimal and minor curb and gutter repairs necessary through out the City can still be conducted under the Repairs Budget.

Concrete Work Curb & Gutter – Downtown midblock and corner crossings

$49,000 Eliminates the replacement of the concrete bulb outs and design time. The bulbouts will be patched to install the trench drains. Re-using existing bulbouts.

PLAN

Other priority decisions for balancing


Description Savings Service Level Impact Poverty to Prosperity Funding $5,000 Unknown

Fund a Police Position Using the Public Safety Fund (TOT)

$96,200 Over $210,000 comes in each year from TOT to Public Safety Fund.

Decrease 911 Increase Projection

$20,000 911 Revenues are increasing by 3.4% which will go directly to the county dispatch.

Reduce amount budgeted for collective bargaining contract

$20,000 May get behind in compensation.

Non-union wage increases $21,252 Non-union will forgo wage increase for 2018

Street Maintenance Fee $228,000 A fee of $5 added to utility bill. This could be eliminated if a sales tax was imposed.

PLAN – NOT TO BE CUT


Other Items Considered Description Savings Service Level Impact

Part Time Ordinance Officer $20,126 Lessen ability to be proactive and address council strategic priority. Complaint driven response. Decrease case load 33%.

Front Desk Receptionist $54,000 Closures of the front counter for part of the week. Loss of administrative support.

Fire Fighter: Floater Position $105,600 Use reserve staff to fill in for shift vacancies.

Recreation Assistant $26,000 Some loss in revenue. Cut some programs. Replace with $20,000 in contract labor.

Malheur Transit $15,000 Loss of up to 195% in matching revenue from Federal and State government.

Snake River Economic Development Alliance (SREDA) $10,000

The city would lose seats on the SREDA Board of Directors. We would miss out on marketing for our community provided by SREDA.

Eliminate Police Officer $96,200 Will have long-term impacts on public safety.

Eliminate Police Officer $96,201 Will have long-term impacts on public safety.

STREET MAINTENANCE FEE

• A fee added to utility accounts that would go directly to the street fund.

• Recommended at $5.00 which would yield $228,000 • At $8.00 the fee would yield $364,800

• Additional funds could be used to replace chip sealing and curb and gutter budgets.

• Requires two resolutions by city council.


STREET MAINTENANCE FEE

Street Fund Projects Requested versus Proposed

$1,275,176

$421,176

$0$200,000$400,000$600,000$800,000

$1,000,000$1,200,000$1,400,000

2018

Needs vs. Ability to Pay

Requested Proposed

General Fund Subsidy to Street Fund

$506,539

$89,539

$- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000

2018

Street Fund Subsidized

Without Maintenance FeeWith Reductions and Maintenance Fee


ALL FUNDS REVENUES


26,911,671

29,626,265

26,521,643 28,506,090

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

2015 2016 2017 2018

All Funds Revenues Building

AirportAquatic FundAquatic Donations TrustRevolving LoanReserveTrust FundDebt ServiceSystem Development ChargesCapital ProjectsGrant FundGolf FundStorm WaterWaste Water TreatmentWater TreatmentStreet FundGeneral FundFundTotal

ALL FUNDS EXPENDITURES


14,236,380

16,714,627

26,521,643

28,506,090

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

2015 2016 2017 2018

All Funds Expendiutres Building

Airport

Aquatic Fund

Aquatic Donations Trust

Revolving Loan

Reserve

Trust Fund

Debt Service

System Development Charges

Capital Projects

Grant Fund

Golf Fund

Storm Water

Waste Water Treatment

Water Treatment

Street Fund

General Fund

ALL FUNDS Revenues Expenses

Fund 2015 2016 2017 2018 2015 2016 2017 2018 General Fund 7,288,771 9,015,258 8,614,612 8,798,087 6,106,958 6,235,102 8,614,612 8,798,087

Street Fund 4,598,812 4,179,877 2,020,035 2,024,061 1,778,500 3,363,299 2,020,035 2,024,061

Water Treatment 4,229,200 4,862,772 4,809,950 4,054,788 2,286,857 2,618,590 4,809,950 4,054,788

Waste Water Treatment 3,413,018 3,760,460 3,495,030 4,313,783 2,660,811 2,838,161 3,495,030 4,313,783

Storm Water 521,668 558,831 572,700 599,123 75,749 85,521 572,700 599,123

Golf Fund 151,931 21,149 40,000 803 151,931 21,149 40,000 803

Grant Fund 4,514 197,862 477,500 886,719 14,889 219,387 477,500 886,719

Capital Projects 2,801,921 3,258,820 2,955,163 3,343,956 55,113 438,216 2,955,163 3,343,956

System Development Charges 138,574 138,574 - 202,001 - - - 202,001

Debt Service 240,768 205,076 164,200 142,330 69,131 66,665 164,200 142,330

Trust Fund 714,403 786,196 692,283 741,012 317,027 406,055 692,283 741,012

Reserve 1,815,958 1,652,728 1,690,930 1,959,484 395,435 119,130 1,690,930 1,959,484

Revolving Loan 588,038 526,682 551,764 516,977 94,689 11,287 551,764 516,977

Aquatic Donations Trust 25,000 25,814 25,450 25,814 - - 25,450 25,814

Aquatic Fund 54,109 102,052 122,452 623,297 20,641 43,723 122,452 623,297

Airport 54,827 72,447 90,474 85,255 54,914 72,935 90,474 85,255

Building 270,160 261,667 199,100 188,600 153,735 175,405 199,100 188,600

Total 26,911,671

29,626,265

26,521,643

28,506,090

14,236,380

16,714,627

26,521,643

28,506,090



CAPITAL PLAN 2017-2018 BUDGET

POLICE FLEET


2008 64,500

2009 83,362

2010 56,000

2012 57,288

2010 79,280

2012 62,067

2012 87,171

2012 90,139

2015 13,493

2015 17,286

2008 140,760

Despite not having high mileage, the vehicles have high engine hours.

We will not be replacing any vehicles with new vehicles this year. We will look for surplus vehicles from other communities.

CAPITAL IMPROVEMENT PROJECTS


Description Costs Community Development

Parking Lot Improvements $9,100 Parks

Playground Equipment $100,000 Toro Mower (Split with water & sewer $20,000 Technology

Website Revision $5,475 TOTAL GENERAL FUND $134,575

GENERAL FUND



Description Costs

Crack fill $30,000

Concrete Work: SW or C/G $36,000

Road Repair $30,000

E. Idaho Meadow Planter Agreement $40,000

Back Parking Lot Improvements $33,000

TOTAL STREET FUND $169,000

STREET FUND



Description Costs Ford F150 $20,000

Ford F150 4WD Pickup $25,000 Microclor Cell Replacement $27,000

Solids Removal $50,000 Baffle Wall Replacement $175,00

Chlorine Analyzer $15,000

WATER FUND

Description Costs Water Master Plan $175,00

Toro Mower (split parks & sewer) $20,000

5 YD Dumptruck $97,500 Wash Arms $60,000

Skidsteer (split public safety) $50,000

Security Upgrade $15,000

Total Water Fund $729,500



Description Costs UTV $12,000

Facility Plan $270,000 Interim Facility Improvements $250,000

Microclor Cell $10,000

SEWER FUND

Description Costs Wastewater Reuse Plan

Update $50,000

Toro Mower (split parks & water) $20,000

5 YD Dump Truck (split water) $97,500 SRCI Lower Lift Station $40,000

Total Sewer Fund $749,500



Description Costs Storm Drainage Mainline Repair $120,000

STORM SEWER FUND



Description Costs Water Line Replacement $200,000

Fire Hydrant Replacement $25,000 Valve Replacement $30,000

Sanitary Sewer Replacement $20,000 TOTAL UCF DEPARTMENT $455,000

UTILITY CAPITALIZATION FEE DEPARTMENT

CAPITAL PLAN – CONT.

Ontario Splash Pad • Funded by Transient Occupancy Tax, Local

Donations, Hospital Grant, and State Recreation Grant (applied not awarded)


Ontario Splash Pad Low operational cost opportunity to provide activity for youth

NON-DEPARTMENTAL APPROPRIATION

Organization 2016 2017 2018 Poverty to Prosperity $5,000 $5,000 Malheur Transit $15,000 $15,000 $15,000 SREDA $10,000 $10,000 $10,000 Total $30,000 $30,000 $25,000


Recommendation

WHAT WE COULD BE


NEXT STEPS

• Questions from Budget Committee • Discuss by Alternatives Rather Than by Department • Other Fund Discussions • Capital Plan


2017-2018 PROPOSED BUDGET PRESENTATION - · PDF file2017-2018 proposed budget presentation . by: adam brown, ... transfers. debt service. ... $300,000. $400,000. $500,000

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