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2008 Budget
Bremerton City of Washington Annual 2008 Budget ÷ÎË ÉÕØ ÍØËÔÎÙ óÜÏÈÜËÄ ÉÕËÈ ùØÚØÐÛØË Office of the Mayor 345 6th Street, Suite 600 Bremerton, WA 98337-1873 Telephone: 360-473-5266 Fax: 360-473-5883 mayor@ci.bremerton.wa.us ______________________________________________________ Cary Bozeman, Mayor December 6, 2007 Citizens of the City of Bremerton Honorable Bremerton City Council Re: Transmittal of the Adopted 2008 Budget Bremerton’s revitalization has taken off! The September 2007 issue of Horizon Air Magazine highlighted Bremerton's new developments along with others in the West Puget Sound area. This is just one of many affirming acknowledgements that the City’s transformation has received. This positive feedback is a testimony to the City of Bremerton’s outstanding staff and our excellent community partners. Together we are improving the quality of life in Bremerton I believe success in revitalizing Bremerton is dependent on five major areas; downtown economic renewal, neighborhood improvements, a strong school system, providing a quality health care system, and expanding opportunities for higher education at Olympic College. Revitalization of Downtown The hallmark characteristic of great cities is a vibrant and inviting downtown area. Urban renewal requires the restoration of Bremerton’s core downtown area. Significant progress has been made on this priority. The recently completed Harborside Fountain Park, Naval Museum and waterfront condominiums - build upon the previous accomplishments of the Harborside Conference Center, Hotel & Plaza, Transit Center, Norm Dicks Government Center, and Kitsap Credit Union building projects. These projects have fueled the take off of Bremerton’s revitalization – charting the course for Bremerton's Harborside Fountain Park lands on the cover additional development that is currently of the September 2007 issue of Horizon Air Magazine! underway. Neighborhood Improvements Our neighborhoods have two major problems. We have a deteriorating street system and old neighborhood park systems that are in decay. Both need more attention through an improved maintenance program. In order to expand the revitalization of Bremerton out to our communities, I have advanced a proposal called “Neighborhoods Now”, a six year plan to improve parks and streets, build and repair sidewalks, and provide more walking and bike trails throughout the City. The City Council voted to put Phase I of the Neighborhoods Now proposal on the ballot in November for a vote of the citizens. Unfortunately, Bremerton voters were in no mood to take on more taxes and overwhelmingly said no to the Neighborhoods Now levy. This is a setback for our park system but we will continue to work at trying to find funding to restore some of the older neighborhood parks. With a soft housing market and rising gas prices, citizens said this was not the time to be asking for additional funding. Strong School System A vital and growing community must have a great school system and I believe Bremerton School District is on its way to becoming a first class school district. The Bremerton School District was named one of three grand prize winners in the American School Board Journals 2007 Magna Awards program. The award was for the “Starting Early for Success”, a program which the district set up to better prepare children to start kindergarten and to improve new students’ reading skills. I am proud of our school district. They are very progressive and are fast becoming one of the better school districts in the State. The school system is an important partner in revitalization and the City must do all we can to work with and support the District under the able leadership of Superintendent Bette Hyde and the Bremerton School Board. Nothing is more important than our children. Quality Healthcare System Bremerton’s revitalization program has a primary goal of resurrecting and transforming an economy that was previously stagnating - encouraging new development and business growth. The City’s financial results for the past several years indicate that our local economy is indeed benefiting from efforts to date. I believe we need to continue and strengthen our partnership with City health care providers - such as Harrison Medical Center - to further Bremerton’s economic expansion. A world class health care system in our community is critical to our economic future. New companies and their families want to work and live in a community that provides superior health care. I believe we will see many baby boomers move to our community to retire and they will require an excellent health care system. Harborside Fountain Park Grand Opening - May 2007 Higher Education Opportunities A barrier to large scale business growth and development is an absence of a significant baccalaureate degree program. Most large employers consider the availability and quality of higher education systems when making decisions to locate or expand their business. Olympic College has recently added a four year nursing program which is a very positive step in the right direction. I am working in partnership with the college, our legislators, and with the regional economic development community to further advance baccalaureate degree opportunities in Bremerton. The 2008 budget for the City of Bremerton builds off of the momentum that has been created from our efforts to date - by focusing on the completion of the downtown renewal, expanding revitalization to Bremerton neighborhoods, and emphasizing the continued provision of core City services such as law enforcement, fire and emergency medical services, community planning, utility services, and access to quality parks and recreation resources. With limited resources available to us, we have prioritized our spending and balanced our budget by living within our means and staying focused on providing the basics of City service while ensuring the continued success of the important revitalization efforts in Bremerton. This budget supports the core mission, goals, and objectives of the City in a responsible manner while taking into account the financial challenges faced today by virtually all municipal and state governments. City staff is operating in an environment in which the greatest degree of scrutiny and prioritization must take place in order to both fulfill our primary mission and goals and balance our budget. OVERALL BUDGET Due to the improving economic activity in Bremerton and significant cost reduction efforts by City departments over the past several years, I am pleased to say that the overall financial health of the City is in good order. Unfortunately, the growth in general government revenues that we are experiencing from increased economic activity is just barely keeping pace with cost increases associated with maintaining our existing staff and service provision levels. Ongoing financial challenges include 1) continued unfunded mandates imposed by the State, 2) dramatic increases in the cost of health insurance for employees, 3) revenue restrictions imposed by HB2416 which reinstated the 1% limit on property tax per I-747, 4) volatile fuel costs, 5) growing inflation pressure on personnel and supplies expenses, and 6) a pressing need for the addition of staff in key service areas such as law enforcement, parks maintenance, and emergency services. The total 2008 City budget is $151,019,285, which is a 0.49% increase over the 2007 budget as amended. A few highlights of the budget include: development of several parks and public spaces (including the Harborside Plaza & Commons and the Evergreen Park expansion), final design and initial permitting on the Bremerton Boardwalk expansion project, construction of the southwest Bremerton sewer expansion system, and continued improvements to the City’s fire stations, general facilities, and utility systems. We include in this document an expanded discussion for the General Fund budget because this is where most of the day-to-day operations of city government are provided for. The total budget for the General Fund is $39,191,973 which is a 6.17% increase over the 2007 budget as amended. The two largest programs in the General Fund budget are Law Enforcement which represents 27.6% of the General Fund budget ($10.8 million) and Fire/Emergency Medical which represents 20.2% of the General Fund budget ($7.9 million). On the following pages of this budget document you will find summarizations and detailed program descriptions – outlining in greater detail the elements of the 2008 budget. The budget is a major policy document for the City. Preparing it takes the time and cooperation of almost every employee in the City over many months. I want to thank the City Council members, department directors, and all the staff members who participated in this process for their assistance and thoughtful contributions. Together we have developed a plan for the coming year that maximizes our resources and ensures that we continue making measurable progress towards our goals. We have a lot to be proud of in Bremerton. I am pleased to present to you the 2008 budget for the City of Bremerton. I believe that this financial plan provides the necessary funding and direction to further advance the City’s Strategic Objectives during 2008. Cary Bozeman, Mayor City of Bremerton CITY OF BREMERTON 2008 BUDGET Budget Overview/Summary Budget Overview...................................................................................................................01 Revenue Sources - All Funds.................................................................................................38 Expenditure Sources - All Funds...........................................................................................40 Budget Comparison by Fund – Revenues..............................................................................42 Budget Comparison by Fund - Expenditures.........................................................................44 Comparative Tax Information................................................................................................46 Ordinances 2008 Taxes.............................................................................................................................47 2008 B&O Tax …………..………………………………….…………………...…………49 2008 Utility Rates..................................................................................................................90 2008 Rates & Fees.................................................................................................................100 2008 Budget ..........................................................................................................................118 Staffing/Personnel Staffing Overview..................................................................................................................123 2008 Staffing Levels..............................................................................................................126 Staffing Authorization - All Departments/Funds...................................................................127 Salary Schedules....................................................................................................................132 Organization Charts...............................................................................................................143 General Fund General Fund Overview.........................................................................................................153 Revenue Resources................................................................................................................162 Revenues by Source...............................................................................................................167 Sources of Revenue - Chart & Table.....................................................................................169 Tax Revenue - Chart & Table................................................................................................170 Expenditure by Category - Chart & Table.............................................................................171 Expenditures by Service - Chart & Table..............................................................................172 City Council...........................................................................................................................173 Executive................................................................................................................................175 Financial Services..................................................................................................................177 Legal .....................................................................................................................................180 Human Resources..................................................................................................................182 Community Development......................................................................................................185 Municipal Court.....................................................................................................................188 City Auditor...........................................................................................................................191 Law Enforcement...................................................................................................................192 Fire/Emergency Medical........................................................................................................200 Police & Fire Pension……………………………………………………………………….204 General Facilities...................................................................................................................206 Parks.......................................................................................................................................207 Engineering............................................................................................................................210 Economic Development.........................................................................................................212 Non-Departmental..................................................................................................................214 Ending Fund Balance.............................................................................................................217 Special Revenue Funds Special Revenue Funds Overview.........................................................................................219 Special Revenue Funds – Chart & Table...............................................................................221 Arterial Streets.......................................................................................................................222 Streets.....................................................................................................................................225 Contingency Reserve.............................................................................................................229 Civic Improvement................................................................................................................231 Parking Systems.....................................................................................................................233 Community Development Block Grant.................................................................................236 Abatement Revolving............................................................................................................239 Police Special Projects...........................................................................................................241 Public Access Television ......................................................................................................243 Gift & Donations....................................................................................................................245 Trial Improvement.................................................................................................................247 One Percent for Art................................................................................................................249 Conference Center.................................................................................................................251 Debt Service Fund Debt Service Funds Overview...............................................................................................255 Bond Fund..............................................................................................................................258 Capital Improvement Funds Capital Improvement Funds Overview..................................................................................261 Capital Improvement Funds - Chart & Table........................................................................264 Public Safety Bond................................................................................................................265 Harborside Plaza & Commons……………………………………………………………...267 General Government Capital Improvement...........................................................................269 Park Facilities Construction...................................................................................................271 Boardwalk…………………………………………………………………………………...273 Enterprise Funds Enterprise Funds Overview....................................................................................................275 Enterprise Funds - Chart & Table..........................................................................................277 Water Utility..........................................................................................................................278 Wastewater Utility.................................................................................................................286 Southwest Bremerton Sewer………………………………………………………………..291 Stormwater Utility.................................................................................................................292 Gold Mountain Golf Course..................................................................................................296 Utility Debt Reserve..............................................................................................................298 Internal Service Funds Internal Service Funds Overview...........................................................................................299 Internal Service Funds - Chart & Table.................................................................................300 Risk Management..................................................................................................................301 Equipment Rental Reserve.....................................................................................................303 Information Technology........................................................................................................306 Trust & Agency Fund Trust & Agency Funds Overview..........................................................................................313 Police & Fire Pension............................................................................................................314 Capital Improvement Plan Introduction............................................................................................................................315 2008-2013 Financial Summary – All Funds………………………………………………..318 2008-2013 Summary..............................................................................................................319 2008 Summary by Type.........................................................................................................320 2008 Summary of Expense Categories..................................................................................321 2008-2013 Fund/Department Projects by Year.....................................................................322 2008 Fund/Department Project Narratives............................................................................347 Supplemental Information Financial Goals & Policies ....................................................................................................373 About Bremerton & Map.......................................................................................................377 Community Events & Web Sites……………………………………………………………378 Miscellaneous Statistics & Community Information……………………………………….380 Schedule of Insurance............................................................................................................391 Fund Matrix...........................................................................................................................392 Budget Glossary & Acronyms...............................................................................................394 The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Bremerton, Washington for its annual budget for the fiscal year beginning January 1, 2007. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements and we are submitting it to GFOA to determine its eligibility for another award. ________________________________________________________________________ Budget Overview INTRODUCTION THE CITY OF BREMERTON The City of Bremerton operates as a first class charter city under a Mayor/Council form of government. The Mayor is elected and is the full-time Chief Executive Officer of the City. The Mayor appoints department directors and hires all City employees. The Council has nine elected, part-time members. The City provides mandatory, essential, and discretionary services, including fire protection/emergency medical services; law enforcement; municipal court; water, sewer, and stormwater utility services; economic development; community development, infrastructure construction and maintenance; and parks and recreational facilities. Located in Kitsap County, eleven miles across the water west of Seattle, the City of rd Bremerton is the geographic center of the Puget Sound region. Bremerton is the 23 largest city in the State of Washington with a current population of 35,910 within an incorporated area of approximately 23 square miles. ELECTED OFFICIALS Mayor ........................................................................Cary Bozeman District #1 Council Member .....................................Brad Gehring District #2 Council Member .....................................Cecil McConnell District #3 Council Member .....................................Adam Brockus District #4 Council Member .....................................Roy Runyon District #5 Council Member .....................................Mike Shepherd District #6 Council Member .....................................Dianne Robinson District #7 Council Member .....................................Carol Arends District #8 Council Member .....................................Will Maupin District #9 Council Member .....................................Nick Wofford Municipal Court Judge ..............................................James Docter DEPARTMENT DIRECTORS AND APPOINTED OFFICIALS City Attorney ............................................................Roger Lubovich Director of Public Works & Utilities ........................Phil Williams Police Chief ...............................................................Craig Rogers Fire Chief ..................................................................Al Duke Director of Financial Services ..................................Laura Lyon Director of Community Development ......................Andrea Spencer Director of Parks & Recreation .................................Wyn Birkenthal ________________________________________________________________________ Budget Overview CITY FINANCIAL GOALS AND POLICIES The City Council has by resolution adopted financial goals and policies for the City of Bremerton. The goals and policies define what constitutes a “good outcome” for the City in regards to financial planning and decisions. The City is accountable to its citizens for the efficient use of public dollars. Resources entrusted to the City should be used in a manner that provides services, public facilities, and infrastructure necessary to meet the needs of the community – both in the immediate term and in the future. The financial goals and policies establish a framework of financial health and stability that is necessary to meet those expectations. The goals expressed are designed to achieve financial sustainability and flexibility, demonstrate proper stewardship of public funds, and provide accountability. The adopted financial goals and policies are included in their entirety in the Supplemental Information section of this budget document. The measurables included in those policies are incorporated into the following budget overview. CITY BUDGET AND PROCESS The budget is the City’s plan of action for the fiscal year 2008 expressed in dollars. While much can be learned about the City’s finances by reviewing the budget, it is also designed to serve other functions. For example, the budget is a policy document that presents the major policies that guide how the City is managed. The budget is an operations guide that gives the public, elected officials, and City staff information pertaining to the productivity and priorities of specific City operations. In addition, the budget is a communication device, intended to provide complex information in an understandable format for an audience composed of readers with varying levels of backgrounds and interests. The City of Bremerton prepares its budget on an annual basis under the authority granted by chapter 35.33 RCW. The budget process is designed to meet the operations and service needs of the City by integrating the planning and implementation of City programs and objectives with the allocation of resources sufficient to support such services and programs. The budget, as adopted, constitutes the legal authority for expenditures. The City’s budget is balanced. This means that operation and maintenance expenditures are generally funded from current revenues. In instances where expenditures may be funded from fund balance (reserves), such funding is from fund balance amounts which exceed the target levels identified by the City’s Financial Goals & Policies. It is the City’s practice to use fund balance only to fund one-time items in governmental funds. Fund balance (reserves) may be used on occasion to fund utility system budgets. Generally, this is to level rates, and the intent is to use prior year revenue collections which exceeded expenditure requirements to level future year’s rate revenue requirements. The Capital Improvement Funds budgets are balanced with anticipated additional revenue or reserves. ________________________________________________________________________ Budget Overview The City budget consists of 30 separate funds, each with its own revenue and expenditure accounts. Federal, state and municipal laws govern the establishment and administration of funds. The City budget is adopted by fund and departments within those funds, and by category group level which consist of five distinct categories – 1) personnel, 2) supplies, services and taxes, 3) debt service, 4) capital expenditures, and 5) transfers. Expenditures may not legally exceed appropriations as established by fund, department, and category group. Transfers or revisions within funds are allowed, but supplemental appropriations must be approved by the City Council following public hearings. All appropriations, including capital projects, lapse at year-end. Prior to the end of the year, appropriation changes that have received Council approval will be incorporated into a budget adjustment ordinance – providing the appropriations as specified in RCW 35.33.151. The process utilized for amending the budget is the same as that used to adopt the original budget and related ordinances. FUND TYPES BUDGETED BY THE CITY GOVERNMENTAL FUNDS Funds generally used to account for tax-supported activities. There are four different types of governmental funds utilized by the City of Bremerton; the general fund, special revenue funds, debt service funds, and capital projects funds. General Fund The General Fund is the City’s primary operating fund. It accounts for all revenues and expenditures which are not accounted for in any other fund. The majority of General Fund revenues come from taxes, state and local shared revenues, and charges for services. General Fund revenues are the source of money that pay for the City services of police, fire, parks, municipal court, and City administration. Special Revenue Funds These funds account for proceeds of specific revenue sources that are restricted for specific expenditure purposes. Other restricted resources are accounted for Arterial Street in debt service, trust, and capital project funds. Street Contingency Reserve Civic Improvement Parking System Community Development Block Grant Abatement Revolving Police Special Projects Public Access Television Gift & Donations Trial Improvement One Percent for Arts Conference Center Operations Debt Service Funds These funds are used to account for the accumulation of resources for and payment of general obligation bond principal and interest from governmental Bond Fund resources. Capital Improvement Funds These funds are used to account for the acquisition or construction of major capital facilities other than those financed by proprietary and trust funds. The Public Safety Bond City’s Capital Improvement Plan (CIP) is included in the supplementary Harborside Plaza & Commons section of this document. General Government Capital Improvement Park Facilities Construction Boardwalk Project ________________________________________________________________________ Budget Overview FUND TYPES BUDGETED BY THE CITY (continued) PROPRIETARY FUNDS Proprietary Funds are used to account for the City’s business-type activities. Business-type activities provide specific goods or services to a group of customers that are paid for by fees charged to those customers. Enterprise Funds Enterprise Funds are used to account for goods and services provided to citizens. The City of Bremerton enterprise funds account for utility and golf Water Utility facility operations, which are self-supported through user charges. These Wastewater Utility operations are financed and operated like a private business enterprise which SW Bremerton Sewer requires periodic determination of revenues earned, expenses incurred, and net Stormwater Utility income for capital, maintenance, public policy, management control, and Gold Mountain Golf accountability. Utility Debt Reserve Internal Service Funds Internal Service Funds are used to account for goods and services provided internally to various City departments. The City uses internal service funds to Risk Management account for maintenance and acquisition of its fleet of vehicles, insurance Equipment Rental Reserve premiums and claims, as well as information technology services. Information Services FIDUCIARY FUNDS Funds used to report assets held in a trustee or agency capacity for others and which therefore cannot be used to support the City’s own programs. Trust and Agency Funds There has been one Trust and Agency Fund for the City which is the Police & Fire Pension Fund. This fund accounted for payments of medical premiums, Police & Fire Pension pension and disability payments for firefighters and law enforcement officers hired under the Law Enforcement Officers and Fire Fighters (LEOFF) 1 retirement program. In 2008 this fund is being closed and the activity moved to a separate department in the General Fund. BUDGET BASIS: Budgetary basis refers to the basis of accounting used to estimate financing sources and uses in the budget. Cash Basis indicates transactions are recognized only when cash is increased or decreased. Accrual Basis indicates revenues are recorded when they are earned (whether or not cash is received at the time) and expenditures are recorded when goods and services are received (whether cash disbursements are made at the time or not). Modified Accrual Basis is the method under which revenues and other financial resource increments are recognized when they become susceptible to accrual; that is, when they become both “measurable” and “available to finance expenditures of the current period.” “Available” means collectible in the current period or soon enough thereafter to be used to pay the liabilities of the current period. For this purpose the City of Bremerton considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City of Bremerton budgets on a modified accrual basis. ACCOUNTING BASIS: The basis of accounting refers to when revenues and expenditures or expenses are recorded in the accounts and reported in the financial statements. The City’s Annual Financial Report shows the status of the City’s finances in conformance with generally accepted accounting principles (GAAP). In most cases this conforms to the way the City prepares its budget. Exceptions are as follows: Compensated absences liabilities that are expected to be liquidated with expendable available financial resources are accrued as earned by employees (GAAP) as opposed to being expended when paid (Budget Basis) Principal payments on long-term debt within the Enterprise Funds are applied to the outstanding liability on a GAAP basis, as opposed to being expended on a Budget basis. Capital Outlays within the Proprietary Funds are recorded as assets on a GAAP basis and expended on a Budget basis. ________________________________________________________________________ Budget Overview A Capital Improvement Plan is prepared annually in accordance with the requirements of the Washington State Growth Management Act and defines the long-term capital plans of the City. However, the individual capital project expenditures are appropriated through annual budget ordinances. A Transportation Improvement Plan and Comprehensive Wastewater and Water Plans have been previously prepared and adopted by the City Council in separate actions. The General Capital Improvement Plan has been updated and is included in the Capital Improvement Funds section of this 2008 budget document. The budget process begins mid-year with workshops to establish issues and goals to be addressed in the development of the budget. The workshops are held with the City Council, Department Directors, and the Mayor. In mid July, budget preparation guidelines are distributed to departments. These guidelines provide instructions and forms necessary for the development of the budget. The budget submittals and requests are then due to Finance by mid August and are subsequently compiled for the review of the Department Directors and Mayor. The review and revision process takes place over the course of the next several weeks.Throughout the budget process, meetings are held with appropriate staff to discuss the proposed operating budget, its overall financial picture and relevant services to be provided. The final management review of the budget is performed with the participation of Department Directors and the Mayor in a series of meetings - as needed to complete the review and come to agreement on the final budget to be proposed to the City Council for adoption. In accordance with RCW 35.33.055, the preliminary budget is then made available for public review in the office of the City Clerk on or before November 1 of each year. In late October, the Mayor and Director of Financial Services submits the proposed operating budget to the City Council in a public workshop meeting - initiating the public hearing and review process which is then conducted throughout the month of November. Several workshops are held with the City Council during November to explain significant sections of the proposed budget and answer questions. After the review period is concluded, any changes determined necessary are then incorporated and the budget ordinance is presented for public hearing and City Council action. The City budget is required to be adopted by no later than December 31. 2008 SCHEDULE – CITY COUNCIL REVIEW & ADOPTION Date Meeting Type Description/Topics 10/24/07 Study Session Proposed Budget Overview Presentation and Review Process “kick-off” 11/01/07 Workshop Revenue Sources 11/07/07 Workshop General Fund 11/08/07 Workshop Enterprise Funds 11/13/07 Workshop Capital/Miscellaneous Funds & Wrap-up Issues 11/14/07 Council Meeting First Hearing on 2008 Budget and Revenue Sources for 2008 Budget Ordinance - Setting Property Tax Levies for 2008 Ordinance - Modifications of the Business & Occupation Tax 11/28/07 Council Meeting Ordinance – Setting Rates & Fees for 2008 Ordinance – Setting Utility Rates for 2008 12/05/07 Council Meeting Final Hearing on Proposed 2008 Budget Ordinance Adopting FY 2008 Budget ________________________________________________________________________ Budget Overview The City encourages public participation in the budget process. Budget information is made available to the public through open meetings, by televising regular Council meetings on Bremerton Kitsap Access Television, as well as by providing copies of the budget and Council agenda items on the City’s website (http://www.ci.bremerton.wa.us/ ) and making hardcopies available in the City Council office located on the sixth floor of the Norm Dicks Government Center. CITY STRATEGIC PRIORITIES AND INITIATIVES The Mayor and City Council have developed vision and mission statements and strategic priorities to guide the development, direction, and management of the City. Specific initiatives to support these strategic priorities have been identified with goals and measures described. Vision Statement The City of Bremerton is a vibrant urban waterfront community that celebrates diversity in its residents, and in its economic, residential and recreational opportunities. Mission Statement Provide quality services as required by law or mandated by the public to enhance the health, safety and general well-being of the citizens of the City of Bremerton. Strategic Priorities Distinctive Growth, with Viable Neighborhoods and Centers that Provide Greater Choice and Convenience The City will actively work towards achieving cohesive, stable neighborhoods that have a homeowner majority. The architectural styles and scales, established boundaries, and central features of neighborhoods will guide the criteria and standards for new development to ensure compatibility with surrounding qualities. Designated Centers along with existing traditional neighborhood businesses will offer and promote higher density lifestyles, encourage convenient commercial and employment services, and provide a greater diversity of housing choices. Enticing New Development and Retaining Existing Businesses, With a Focus on the Downtown Regional Center The City of Bremerton will position itself to attract development and retain existing businesses, especially where there are opportunities for new or expanded employment. Zoning categories will provide sufficient industrial, commercial, and mixed use lands for business opportunities. The City will take actions to ________________________________________________________________________ Budget Overview ensure a friendly, welcoming environment which highlights the City’s unique maritime atmosphere. Provide adequate parking while also promoting efficient circulation. In key areas identified for economic expansion, developable sites will be pre-qualified for environmental permitting as “planned actions”. This will extend to rehabilitation programs, such as grant funding to clean up the City’s challenging brownfield sites. Special accommodations, such as advanced utility planning and the provision of cutting edge technology, will further encourage use of these sites. The City and its partnering jurisdictions will apply appropriate tax strategies to attract and retain businesses. Supportive Transportation, with Seamless, Efficient, and Varied Choices Bremerton’s size and role as a regional hub provides the foundation for an exemplary transportation system, with diverse and convenient mobility options. The City, in cooperation with State and with other transportation providers, will work to enhance and maintain services and facilities that build on that diversity, while striving to reduce the dominance of single-occupant automobile transportation. Improved Accessibility, Especially for the Pedestrian The City’s transportation system is well positioned for innovative development, especially expanded use of alternative travel options, enabled by the existing transit and ferry systems. Designated Centers will be strongly characterized by walkable designs with linkages to one another. Trails and bike lanes will emphasize safety and have uniform signage. Street ends, parks, and open spaces will offer recreational opportunities as well as access to the shoreline for everyone’s enjoyment. Quality Housing, with Broader Choices The City will promote quality, affordable housing, for all family types, ages, and incomes. New, creative housing projects, such as artists’ lofts and courtyard homes, will meet the need of special populations such as short term residents and citizens in need of transitional housing. Bremerton will promote private and public efforts to secure adequate capital for affordable housing projects at competitive and favorable market costs. Priority will go to projects that advance owner-occupied units. Safe, Healthy, Livable Neighborhoods The City will (within the limits of fiscal resources) proactively enforce ordinances, especially in relation to Code Enforcement, Emergency Management and Community Policing. Public safety is primary. Public facilities and services will be conveniently and equitably located throughout the community, chiefly through the prescription and monitoring of service levels that reflect community values in areas such as law enforcement, fire protection, and sanitary sewers. The City will partner with citizens, schools, and other local organizations to increase and enhance educational opportunities and provide an environment that embraces and supports families and youth. ________________________________________________________________________ Budget Overview Open Spaces, Natural Areas, and Parks that Maximize the Natural Environment and Promote Community Pride Bremerton citizens will benefit from an open-space system that increases the amount of green-space and compliments habitat protection goals, public safety concerns, and recreational needs. City owned properties will be well maintained and strategically incorporated into this system. Efficient, Accountable, and Financially Responsible City Governance The City of Bremerton will maintain public trust and confidence by utilizing resources in the most open and efficient manner possible. Resources entrusted to the City will be used in a manner that provides services, public facilities, and infrastructure necessary to meet the needs of the community – both today and in the future. The City’s adopted financial goals and policies provide the framework for financial health and stability that is necessary to meet those expectations. The financial goals are designed to achieve financial sustainability and flexibility, demonstrate proper stewardship of public funds, and provide accountability. ________________________________________________________________________ Budget Overview Prior year Budget Initiatives to Support Strategic Priorities - Completed Several items included in the adopted 2007 budget “Initiatives to Support Strategic Priorities” have been subsequently completed. Due to the fact that they are not on-going in nature, they are now removed from the 2008 budget version of Initiatives to Support Strategic Priorities. The following are the items previously included that are now concluded. “Distinctive Growth, with Viable Neighborhoods and Centers that Provide Greater Choice and Convenience” Develop and Implement an Annexation Plan for Tracyton – Completed in 2006 Adopt a New Critical Areas Ordinance – Completed in 2006 Support Bremerton Housing Authority’s Development of the Westpark Sub-Area Plan – Plan Adopted by City Council in 2007 “Enticing New Development and Retaining Existing Businesses with a Focus on the Downtown Regional Center” Implement a “wireless internet cloud” in downtown Bremerton – Completed in 2006 Study Impact of City’s B&O Tax on Business Growth and Retention and Recommend Changes as Appropriate – Plan Completed and Adopted by Council Action in 2006 “Quality Housing with Broader Choices” Adopt a Multi-Family Housing Property Tax Abatement Ordinance – Completed in 2006 with City Council Approval of the Ordinance “Safe HealthyLivable Neighborhoods” Establish and Fund a Neighborhood Enhancement Project – Completed in 2006 Relocate Police Department to the Burwell Site – Facilities Opened for Operations in April 2007 Relocate Municipal Court to New Location – Moved to Temporary Location in February 2007 Complete 6-Year Update of the Bremerton Water System Plan – Completed in 2006 ________________________________________________________________________ Budget Overview 2008 BUDGET OVERVIEW FINANCIAL CONSTRAINTS Over the past several years, statewide initiatives have impacted current and future revenues that fund the City of Bremerton’s governmental services. Initiative 695 and 747 resulted in losses of ongoing revenues and limited property tax growth for Washington cities. Bremerton has undertaken an aggressive revitalization program primarily to mitigate for these revenue losses by growing revenues associated with an expanded retail base, along with increases in other revenues associated with economic expansion. The results of the City’s efforts to increase economic activity and growth are apparent in the General Fund revenues for 2006 which were 7.8% greater than the previous year. The first half of 2007 continues to provide encouraging results, with 2007 projected revenue receipts expected to exceed the 2006 results by 6.1%. GENERAL FUND REVENUES ACTUALSPROJECTEDBUDGET 200320042005200620072008 Taxes 19,669,70618,770,694 20,792,008 21,928,072 23,669,000 23,873,941 Licenses & Permits 862,913720,506 1,138,578 1,043,642 965,000 1,022,900 Intergovernmental 1,138,9241,054,075 854,118 1,042,097 1,050,000 1,083,516 Charges for Services 2,266,6752,499,113 2,706,671 2,985,796 2,675,000 2,907,940 Fines & Forfeits 430,361559,711 423,556 483,449 700,000 2,312,000 Other Revenue 2,670,6572,378,872 2,722,840 3,398,334 3,714,239 3,542,006 27,039,23625,982,971 28,637,771 30,881,390 32,773,239 34,742,303 ________________________________________________________________________ Budget Overview Unfortunately, the growth in General Fund revenues is just barely keeping pace with cost increases associated with existing staffing and service levels. Over the last several years (due to the lack of adequate fund availability), the City has had to defer needed street maintenance resulting in a significant buildup of work and deterioration of neighborhood street conditions. In addition, the City’s park system has grown, and will continue to grow, with the successful efforts of the City to obtain grant funding to assist in the expansion of Evergreen Park, construction of the Boardwalk, development of the upper portion of Harborside Park (Harborside Plaza and Commons), and the Blueberry Park improvement project. These projects along with the current demands of existing City parks require additional staffing resources and supplies for maintenance and upkeep. In order to address the growing gap in funding for streets and parks and expand Bremerton’s revitalization out to the City neighborhoods – Mayor Bozeman and the Bremerton City Council have initiated the Neighborhoods Now plan. Neighborhoods Now is a six year revitalization initiative designed to improve Bremerton neighborhoods. There are three phases to the plan: The first phase focuses on parks (operations & maintenance and community park development/upgrades), community improvement, and sidewalk upgrades and expansion. The City Council voted to put funding of Phase I of the Neighborhoods Now proposal on the ballot in November for a vote of the citizens. Unfortunately, Bremerton voters were in no mood to take on more taxes and overwhelmingly said no to the Neighborhoods Now levy. This is a setback for our park system but the City will continue to work at trying to find funding to restore some of the older neighborhood parks. With a soft housing market and rising gas prices, citizens said this was not the time to be asking for additional funding. The second phase addresses preservation and repair of neighborhood streets. The street improvements phase is funded by a proposed local car tab fee of $20/year combined with the continuation of the City’s current funding sources for street maintenance. The third phase is about connecting neighborhoods with transformational trail projects. The City’s Boardwalk Project and anticipated future Bridge to Bridge Trail project are the centerpieces of this final phase. These significant capital projects will be funded by a combination of Federal and State grants, City REET, General Fund resources, and community contributions. ________________________________________________________________________ Budget Overview As can be seen in the following table and chart, the City made significant efforts to cut General Fund expenditures in 2003 and 2004 in an effort to rebuild operating reserves. Thankfully, the City was able to achieve this goal of building the General Fund Ending Balance back to an adequate level - providing for daily and monthly cash flow variability. However rising personnel costs and significantly increased fuel expense (among others) have pushed expenditures beginning in 2005 back up - and the 2008 budget continues that trend as well. GENERAL FUND EXPENDITURES ACTUALSPROJECTEDBUDGET 200320042005200620072008 Personnel 16,481,87218,408,385 16,994,418 18,189,582 19,887,093 24,545,261 Supplies & Services 6,208,3046,048,558 6,630,585 7,032,463 8,146,103 9,042,690 Capital Outlay 89,757212,716 57,048 306,675 576,700 573,077 Debt Service 29,754882,319 432,084 431,580 430,441 432,685 Transfers 2,718,631753,837 3,408,529 4,071,721 3,691,340 1,476,630 25,528,31826,305,815 27,522,664 30,032,021 32,731,677 36,070,343 While the City is working creatively to keep pace with growing needs, these efforts have (on an “on-going” basis) allowed Bremerton to tread financial waters - but no more. A comparison of the General Fund Revenues and Expenditures shows that in 2008 the City’s budgeted expenditures exceed the current revenue stream. This is a planned usage of operating reserves (fund balance) which is in excess of target levels identified by the City’s Financial Goals & Policies. It is the City’s practice to use fund balance only for one-time items in governmental funds (as opposed to on-going expense items). In 2008 the reduction of Fund balance is used for General Fund capital expenditures, outside ________________________________________________________________________ Budget Overview services for development of the Manette sub area plan, a special event series in the new Harborside Park, and a transfer to the Boardwalk Project as part of the funding of the governmental portion of this significant capital improvement program. Beyond 2008, the projected trend indicates on-going revenue expectations sufficient to provide for cost increases associated with maintenance of the status quo. This leaves virtually no capacity for additional service provision or flexibility to cover unexpectedly higher cost increases than those which have been historically experienced - a distinct possibility in light of recent economic indicators that point to growing inflationary pressures. The City will need to exercise great caution in avoiding commitments for additional on-going expense obligations while continuing to aggressively work on improving the overall economic activity in Bremerton. ECONOMIC DEVELOPMENT Bremerton is well into an aggressive revitalization and development program. The center piece project is the Bremerton Harborside Development which will give the City claim to its long awaited place as a premier waterfront community in the Puget Sound. Of the multi year plans to revitalize Bremerton - the following were completed in the last several years; the Harborside Conference Center, Hotel and Plaza, Bremerton Ice Arena, Kitsap Credit Union Headquarters/Office building, new downtown Naval Parking Garage, and the construction of the new Norm Dicks Government Center building and downtown Fire Station. The Harborside Park and Heritage Naval Museum, new Police Station on Burwell Street, and two separate waterfront condominium developments were completed in 2007. Currently in progress are; the Harborside Plaza and Commons project, West Park mixed use redevelopment project, the Downtown Pedestrian Bremerton Transit Center Access project, the marina expansion, and the Boardwalk Project. Projects that are in the preliminary stages include; the development of a new Municipal Court facility, and the Port Washington Trail project. ________________________________________________________________________ Budget Overview These (and many other) projects that are occurring throughout Bremerton are a product of both public and private investments. Economic development is a critical component of achieving the City’s goal of “enticing new development and retaining existing businesses, with a focus on the downtown regional center”. The ability of Bremerton to provide sufficient funding for future core government services is directly related to the continued successful implementation of economic development efforts today. Harborside Fountain Park BUSINESS AND OCCUPATION TAX The City of Bremerton levy’s a local Business & Occupation (B&O) tax. Over the past several years, statewide initiatives have impacted current and future revenues that are available to fund Bremerton’s core City services. Like other cities in Washington, Bremerton must increasingly rely on revenues generated from business growth to fund essential services for its citizens. As a consequence, Bremerton’s B&O tax and local retail sales tax have become increasingly important as a revenue source for the City and their growth is vital for continued provision of core City services. To this end, one of the key goals of the revitalization efforts is to expand the City’s retail base and foster a general economic expansion. Of the two economic based revenue sources (B&O and local sales tax), the City’s B&O tax is more problematic in that it is not a universally applied tax (different rate structures from city to city and not applied in unincorporated areas) and it has been under increasing pressure by recent legislation. This inconsistency in tax structure from the City in relation to the adjacent unincorporated areas may actually provide a barrier to the goal of enticing new development and retaining existing businesses. The City’s B&O tax is a significant component of the General Fund’s resource mix representing approximately 14% of the General Fund’s tax revenues, but given the issues surrounding this type of tax, it appears that the City’s efforts to aggressively grow revenues should focus primarily on local sales tax - with less emphasis on the local B&O tax. ________________________________________________________________________ Budget Overview As part of the 2007 budget adoption and revenue actions, the City Council adopted a plan and made changes to the City’s B&O tax as deemed appropriate to encourage existing business to expand and grow and/or attract new business to Bremerton while ensuring that the financial health of the City is not deteriorated meaningfully in the process. The changes adopted by City Council are as follows: 1.The revenue exemption for B&O taxes was changed to a true exemption. The previous exemption of $20,000 only applied if revenues did not exceed that amount (i.e. as soon as $20,001 of revenues was achieved all of it became subject to tax). 2.The revenue exemption was not only made a true exemption but the amount was increased from $20,000 to $40,000 effective January 1, 2007. 3.Implemented a 3 year local B&O tax exemption for businesses located in an area annexed by the City on the date of annexation. 4.Adopted tax credits for qualified jobs creation within the City of Bremerton. 5.In addition, a plan for future actions was laid out - such that at the end of each calendar year (after the annual state audit is completed) the actual growth of sales tax revenue will be computed by comparing the actual amount to the prior year actual amounts. If the annual growth is 6% or greater, then the next step of exemption increase will be recommended for implementation to the City Council during the next annual budget development process. 6.Future B&O tax revenue exemption increase steps are recommended to occur as follows: a.Increase to $60,000 upon achieving a full year of sales tax revenue growth of 6% or greater b.Increase to $75,000 upon achieving another full year of sales tax revenue growth of 6% or greater c.Increase to $100,000 upon achieving an additional full year of sales tax revenue of 6% or greater d.Review and recommend what steps further (if any) should be taken subsequently upon reaching the $100,000 exemption level. The 2006 sales tax revenue for the City was 7.8% higher than in 2005. Since this annual growth was greater than the trigger level of 6% growth, the next step of exemption increase to $60,000 is recommended for adoption as part of the 2008 budget process and related revenue actions. This has been factored into the development of the B&O tax revenue expectations for 2008. The ordinance amending the Bremerton tax code to implement this City initiated change is included in this budget document and was adopted by the City Council on November 14, 2007. The State Legislature, through EHB2030, has mandated that all B&O tax cities adopt a new allocation/apportionment method for taxing service-based businesses commencing on January 1, 2008. In the case of sales of tangible personal property, the taxable activity is taxed in the location where the delivery to the buyer occurs. Gross income from taxable service activities is apportioned to a location on the basis of a two-factor formula consisting of a payroll and service income factor. This new system of allocation and ________________________________________________________________________ Budget Overview apportionment is a change from the current methods and is expected to result in a loss of revenue for the City of Bremerton of approximately $350,000 per year. This change was enacted in 2003 with delayed implementation of this last portion of the legislated changes. This has been anticipated by the City in prior revenue forecasts. The 2008 budget includes this estimated reduction in B&O tax revenue. The ordinance amending the Bremerton tax code to implement this State mandated change is included in this budget document and was adopted by the City Council on November 14, 2007. STREET MAINTENANCE AND IMPROVEMENTS The repeal of the motor vehicle excise tax after Initiative 695, the 1% property tax limitation contained in Initiative 747, and the repeal of the local license fee that cities previously used to match transportation grant dollars, have all resulted in drastic funding reductions for City overlay and maintenance work. Bremerton has had to virtually stop most overlay and preventative maintenance work on City streets. For several years now, the City has had very limited resources to apply to this need - creating a buildup of deferred maintenance and repairs. Phase II of the Neighborhoods Now plan includes implementation of a Transportation Benefit District (TBD) in the City of Bremerton for the purpose of improving the condition of City streets. The State Legislature, through SHB1858, has provided Transportation Benefit Districts the ability to impose up to $20 of vehicle fees – providing funding for the District’s improvement program. The City is required by the legislation to wait until January 22, 2008 to create a TBD and intends to do a large community outreach and education effort prior to adoption of such a program. The 2008 budget includes implementation of a Transportation Benefit District as a new program in the Street Fund with a partial year of revenues and expenditures ($285,000 each) in recognition of the time needed to implement the community outreach efforts and required administrative procedures. FLEET AND EQUIPMENT OPERATIONS The majority of the City transportation and heavy equipment maintenance and replacement are performed by the Equipment Rental Reserve (ERR) Fund. A significant cost issue has surfaced since 2005 with considerable and rapid cost increases associated with fuel for the City’s transportation fleet and heavy equipment. The 2006 expenditures increased by over $59,500 for all fleet fuel expense as compared to the 2005 expenditures – a 15.1% increase. 2007 expenditures to date have been quite volatile but are currently projected to end the year roughly comparable to 2006. The 2008 budget anticipates further increases (18.7%) in fuel prices due to the recent rise of fuel prices through the early fall period of 2007 and based on industry analysts predictions of continued price pressure. The overall expense is considerably higher than in prior years and is ________________________________________________________________________ Budget Overview vulnerable to future rapid price increases. The volatility of fuel prices also translates into higher costs for related products such as asphalt for paving projects. Asphalt costs per ton have gone from $35.40/ton in 2005, to $45.61/ton in 2006, and are currently at $52.12/ton for 2007. The 2008 budget assumes an asphalt cost of $60/ton. City staff will continue to monitor the changing situation and evaluate options available to use the fleet equipment in the most efficient manner possible and consider alternatives for increased fuel efficiency when replacing equipment. LABOR NEGOTIATIONS The City has in place collective bargaining agreements with the International Association of Firefighters, Teamsters, Bremerton Police Officer’s Guild and the Police Management Association which expire on December 31, 2008. Negotiations for new bargaining agreements will occur in 2008 in advance of that expiration. The 2008 budget includes the labor cost increases provided for in those contracts. STAFFING LEVELS AND CHANGES The 2008 budget provides for very few changes in staffing levels. In the General Fund, additions are essentially limited to reclassification of an existing part-time position in Financial Services from “other labor” categorization to “regular labor” which has no financial impact but properly characterizes the position’s ongoing nature, and an increase in the current part time Legal Assistant position in the Legal Department from a .5 to .55 FTE to reflect required time commitments from that position. The Legal Assistant position is shared by the Legal Department and Risk Management on a 50/50 basis. Other FTE changes in the City include reclassification of an existing part-time position in Gold Mountain Golf from “other labor” categorization to “regular labor” which has no financial impact but properly characterizes the position’s ongoing nature, and the addition of 1 Mechanics Helper in Equipment Rental Reserve. Other staffing changes include; reclassification of a current Accounting Assistant II position to a Customer Service Representative and upgrading another existing Accounting Assistant II position to Accounting Assistant Senior in Financial Services in order to better align staff to work loads and responsibilities, the Municipal Court will implement a pay band upgrade of the Legal Technician Senior from Step 10 to Step 14 based upon a review of pay scales of other comparable jurisdictions, a title and pay band change will be implemented for the existing Office Assistant Senior in Economic Development to a Project Assistant based upon a Civil Service Officer review of the position and job duties, the Water and Wastewater Utilities will hire two temporary (1 year) Tech 1 positions split 60/40 to Water and Wastewater to provide additional resources for change out of approximately 16,000 MXU batteries scheduled for 2008, and ________________________________________________________________________ Budget Overview Information Technology has a PC Technician that will be upgraded to a Lead PC Technician (pay band 13 to band 15). Public Works and Utilities have several position title changes within the same pay grade/step which do not have a monetary impact to the 2008 budget. 2008 Staffing Changes Department Position Action FTE change $ Impact Customer Service Rep Reclassification of Acct Asst. II None ($ 2,215) Accounting Asst Senior Position Upgrade None $ 1,544 Financial Reclass Regular Part Time Services Part-Time Clerical Employee Out of “Other Labor” Category 0.38 None Increase FTE from .5 to .55 (split LegalLegal Assistant with Risk Management) 0.025 $ 1,366 Municipal Court Legal Technician Sr. Reclassification and Upgrade 0.00 $ 4,234 Economic Title and Pay Band Change for Development Project Assistant Existing Position None$ 1,435 New – “Other Labor” Category Temporary – 1 Year Position Two Temporary Positions for 1 Tech IYear – Split 60/40 to Water and Public Works & Wastewater None$ 72,309 Utilities Sewer/Storm Collection Title Change Requested in Same SupervisorGrade/Step NoneNone Reclass Regular Part Time Gold Mountain Golf Operations Supervisor Employee Out of “Other Labor” Golf Category 0.55 None RiskIncrease FTE from .5 to .55 (split Management Legal Assistant with General Fund - Legal) 0.025 $ 1,366 Equipment Rental Reserve Mechanics Helper New Position 1.00 $ 57,977 Information Title and Pay Upgrade for Existing TechnologyLead PC Technician Position None$ 3,064 Total Change in 2008 Budget 1.98 $141,080 All other personnel related budget changes are cost of living adjustment for all City staff (4.8618% based on a 1.5% increase matching all collective bargaining agreement increases and CPI of 3.3121% ) who are not covered by bargaining unit agreements, and increases in medical and dental benefit costs along with other cost increases anticipated for core payroll related expenditures. An increase in the Mayor’s compensation of $10,000 is included in this budget along with an adjustment to the Municipal Court Judge’s compensation to ensure continued eligibility for participation in state shared revenues under the Trial Improvement Fund programs. UTILITIES The City’s water, wastewater, and stormwater utilities have undertaken the construction of a significant number of capital projects over the past several years which have been funded in large part with grants and loans. The most significant projects are related to the wastewater utility – and much of that has been most recently related to completion of required Combined Sewer Overflow (CSO) Reduction and Stormwater Separation Projects. These capital programs have placed significant financial pressure on the ________________________________________________________________________ Budget Overview utility systems in the form of both cash flow and debt management challenges. The City concluded a comprehensive utility rate study in 2004 resulting in a multi-year plan for increasing rates and implementing significant increases in general facility charges to cover the cost of new capital improvements. Upon the conclusion of this study, the City Council approved the utility rate increase plan with the adoption of an ordinance implementing the first phase of rate increases and the new general facilities charges – which became effective on November 1, 2004. Subsequently in 2005, the City Council approved the planned second year increases for the water and stormwater utilities and (due to more extreme financial pressures for the wastewater utility) the planned rate increases for the next two years were folded into one increase for the wastewater utility. These second year rate adjustments became effective January 1, 2006. Effective January 1, 2007 the City began implementing annual utility system rate increases based upon the most current Consumer Price Index and general facility charge increases based upon the most current Seattle Construction Index. Per the Bremerton Municipal Code 15.06.015 (b) - if the City Council does not otherwise adjust the utility rates they are to be adjusted annually based upon the most current Consumer Price Index for all Urban Consumers, Seattle, and the general facility charges are to be adjusted according to the most current Seattle Construction Index. The 2008 budget includes implementation of a CPI adjustment of 3.5% for all three utility system rates, and a 0.2% increase in general facility charges based on the most current Seattle Construction Index. The City Council approved the 2008 utility system rate increases on November 28, 2007. The implemented utility rate adjustments plus the final retirement of the outstanding Water and Sewer Revenue bonds in late 2007 (in combination) have placed the wastewater utility on much firmer financial footing. ________________________________________________________________________ Budget Overview CAPITAL IMPROVEMENT PLAN Projects funded in the 2008 Capital Improvement Plan amount to $42,672,419. These projects are identified and explained in more detail in the 2008 - 2013 Capital Improvement Plan provided in the supplement section of this budget document. Significant projects included are (among others): In-Car Video Equipment and Other Software/Training Systems for the Police Department Replacement of the Self Contained Breathing Apparatus (SCBA) equipment for the Fire Department Street improvements on Pacific Avenue, installation of additional illuminated street signs, continuation of the on-going traffic signal equipment replacement program, and purchase of a sidewalk cleaner machine. Completion of the multi-phase SR 304 Bremerton Gateway transportation Improvement Project as well as other transportation improvement projects as specified in the adopted Transportation Improvement Plan Continuation of the multi-year Bremerton Boardwalk Project and Evergreen Park Expansion project Permanent Facility for the Municipal Court Initial design and planning for Parks maintenance facility relocation – potential site is Olympus Building upon relocation of Public Works to an expanded and remodeled Oyster Bay Facility location Oyster Bay building remodel and expansion to accommodate consolidation of Public Works Construction of the Harborside Memorial Plaza and Commons Various park developments and improvements including the Blueberry Park improvements, Lions Park ball field lighting improvements, Senior Center kitchen upgrade, Harborside Fountain Park restroom installation, Stephenson Canyon trails and signage Phase II improvements to the Martin Luther King Library renovation project Completion of the Public Access Television System studio relocation Utility system capital programs in accordance with the adopted Comprehensive Water, Wastewater, and Stormwater Utility Capital Plan which includes the Wastewater Treatment Plant Upgrade and CSO projects at Anderson Cove and Pacific Avenue Completion of the South West Bremerton Sewer Expansion project Vehicle and Equipment replacements as reserved for in the Equipment Rental Reserve Fund Improvements to general facilities including continued improvements to fire stations ________________________________________________________________________ Budget Overview PROPERTY TRANSACTIONS Bremerton maintains many properties and buildings throughout the City. A review of these assets coupled with an assessment of best use and need - is a fruitful exercise to undertake periodically. Every property the City owns requires resources to maintain. An evaluation of the benefits in comparison to the costs of that property ownership is important to undertake to ensure the greatest value and efficiency is being provided by City owned assets. The 2008 budget does not anticipate any General Fund property transactions occurring (budgeted in the Contingency Reserve Fund). Funds available from previous net property sales transactions are budgeted to be used in the following fashion: $35,000 which is a small portion of the net proceeds from the sale of the West Hills Precinct building (concluded in 2007) will be set aside in the Park Facilities Construction Fund to be used for preliminary design and planning of a parks maintenance building relocation project. $250,000 from Capital Hill Fire Station sale proceeds (concluded in 2007) will be used for the Bremerton Boardwalk Project. The majority of these proceeds from General Fund property transactions - combined with grant funds, and other available City funds (primarily Real Estate Excise Tax revenues) - will be used by Bremerton to develop a new parks maintenance building facility, and cover final design and permits related to the construction of the Bremerton Boardwalk and expansion of Evergreen Park. More complete project information is included in the Capital Fund narratives and in the Capital Improvement Plan which is included in the supplement section of this budget document. Conceptual Image of the Bremerton Boardwalk Project ________________________________________________________________________ Budget Overview FINANCIAL SUMMARY OF THE 2008 BUDGET The 2008 Bremerton budget provides sufficient resources to fund essential municipal services and programs - necessary to maintain a healthy, safe, and secure community - while supporting the ongoing efforts to revitalize and reinvest in the City. In addition, the budget is in compliance with the City’s adopted Financial Goals and Policies. Key Budget Parameters contained in the Financial Goals & Policies “The City Utility System shall strive to maintain a minimum debt service coverage (annual gross revenues less annual operating and maintenance expenses divided by annual debt service) of the combined Utilities (Water, Wastewater, Stormwater) of at least 1.5x.” The budgeted 2008 debt service coverage factor of the combined utility systems is 2.04x, which meets and exceeds the expectations of the financial goals and policies. “The City will strive to maintain ending cash and investment balances in the General Fund of no less than 8.5% of the total planned annual operating expenses.” The target ending fund balance for the General Fund necessary to meet an 8.5% balance (based upon the 2008 budgeted annual operating expenses) is $3,017,268. The budgeted ending fund balance for the General Fund is $3,121,630 which meets and exceeds the expectations of the financial goals and policies. “The City will strive to maintain ending cash and investment balances of no less than 12% of total planned annual operating expenses for the Gold Mountain Golf Complex, Water Utility, Wastewater Utility, and Stormwater Utility.” The target ending fund balance for the designated enterprise funds (based upon the 2008 budgeted annual operating expenses) and the 2008 budgeted ending fund balance is as follows: Targeted Ending Budgeted 2008 Fund Balance Ending Fund Balance Gold Mountain Golf$ 445,613$ 340,544 Water Utility 1,158,3984,167,558 Wastewater Utility 1,332,8624,095,096 Stormwater Utility 227,273319,535 The ending fund balances for the Water, Wastewater, and the Stormwater utilities meet and exceed the expectations of the financial goals and policies. The ending fund balances for the Gold Mountain Golf Fund does not meet the targets but increased from the budgeted 2007 ending fund balances of $340,242 demonstrating some advancement being made towards achieving the goal. “The City will strive to maintain a balance of at least $1,000,000 in the Contingency Reserve fund as a provision for unforeseen or catastrophic events and emergencies.” The ending fund balance of the Contingency Reserve Fund is $1,356,983 which meets and exceeds the expectations of the financial goals and policies. ________________________________________________________________________ Budget Overview 12/10/2007 2008 REVENUE SOURCES - ALL FUNDS BEGLIC.INTER-CHARGESFINES2008 2007FUNDANDGOV'TFORANDOTHETOTAL R FUNDBUDGETBAL.TAXESPERMITSREVENUESERVICEFORFEITSREVENUEBUDGET General Fund General Government: City Council89,14100099,8250099,825 Executive91,311000139,90000139,900 Financial Service4,644,8533,967,500339,0000382,27505,0004,693,775 s Legal150,718000169,85000169,850 Human Resources155,590000159,75000159,750 Community Development892,2000461,0000368,90000829,900 Municipal Court835,000000313,900501,00030,000844,900 City Auditor44,68000051,0000051,000 Law Enforcement659,53902,900303,13361,72010,00010,175387,928 Fire/Emergency Medical1,765,486979,0640256,439627,3201,00001,863,823 Police & Fire Pension00042,00000042,000 General Facilities422,79700077,550070,080147,630 Parks682,550000443,1500169,750612,900 Engineering58,500075,00008000075,800 Economic Development25,0000000000 Non-Departmental21,935,50618,927,377145,000481,94412,0001,800,0003,257,00124,623,322 Beginning Fund Balance4,408,1084,449,6704,449,670 Total General Fund36,860,9794,449,67023,873,9411,022,9001,083,5162,907,9402,312,0003,542,00639,191,973 Special Revenue Funds: Arterial Street15,281,8277,478,327005,679,50000140,00013,297,827 Street3,433,991170,000645,0000610,000344,25001,681,5003,450,750 Contingency Reserve3,056,7571,591,9830000050,0001,641,983 Civic Improvement538,500123,500335,00000002,000460,500 Parking System2,348,483158,2280001,500340,0001,757,0002,256,728 Comm. Dev. Block Grant1,852,438001,074,828150,000041,0001,265,828 Abatement Revolving Fund172,075137,57500019,500020,000177,075 Police Special Projects566,896329,896000037,000115,000481,896 Public Access Television543,3107,275240249,300091,794011,250359,859 Gift & Donations Fund134,96182,937000003,40086,337 Trial Improvement19,7161,716009,60000011,316 One Percent for Arts122,04433,9800000032,02066,000 Conference Center Oper2,376,117177,4670001,301,8390261,0001,740,306 Total Spec. Rev. Funds30,447,11510,292,884980,240249,3007,373,9281,908,883377,0004,114,17025,296,405 Debt Service Fund: Bond Fund2,460,786418,036903,96000001,122,7302,444,726 Total Debt Service Fund2,460,786418,036903,96000001,122,7302,444,726 Capital Improvement Funds: Public Safety Bond2,927,2711,404,1320000035,0001,439,132 Harborside Plaza & Commons004,250,00000500,0004,750,000 General Govt Capital Improv.3,420,577535,8011,600,000000050,0002,185,801 Park Facilities Construction2,479,656332,65100397,17000310,0001,039,821 Boardwalk Project1,193,895183,895001,612,50000980,0002,776,395 Total Capital Improv. Funds10,021,3992,456,4791,600,00006,259,670001,875,00012,191,149 12/10/2007 2008 REVENUE SOURCES - ALL FUNDS BEGLIC.INTER-CHARGESFINES2008 2007FUNDANDGOV'TFORANDOTHETOTAL R FUNDBUDGETBAL.TAXESPERMITSREVENUESERVICEFORFEITSREVENUEBUDGET Enterprise Funds: Water Utility18,489,7676,144,4690009,568,71102,089,69517,802,875 Wastewater Utility20,605,7116,729,86360,00002,481,98413,116,91904,997,76327,386,529 SW Bremerton Sewer4,456,4424,456,44200000371,0004,827,442 Stormwater Utility2,804,462636,4670001,807,0110130,0002,573,478 Gold Mountain Golf Complex4,056,242340,2420003,669,296096,4444,105,982 Utility Debt Reserve575,8591,117,5110000088,8761,206,387 Total Enterprise Funds50,988,48319,424,99460,00002,481,98428,161,93707,773,77857,902,693 Internal Service Funds: Risk Management2,593,3981,183,363000001,369,8482,553,211 Equipment Rental Reserve7,987,4594,989,9950001,979,00403,013,6209,982,619 Information Services1,127,802175,629000945,880001,121,509 Total Internal Service Funds11,708,6596,348,9870002,924,88404,383,46813,657,339 Trust & Agency Fund Police & Fire Pension2,636,443335,000335,000 Total Trust & Agency2,636,443335,000000000335,000 Total Non-General Funds108,262,88539,276,3803,544,200249,30016,115,58232,995,704377,00019,269,146111,827,312 Total All Funds145,123,86443,726,05027,418,1411,272,20017,199,09835,903,6442,689,00022,811,152151,019,285 Revenue Sources - All Funds Fines & Forfeits Other Revenue $2,689,000 $22,811,152 2% 15% Charges for Service $35,903,644 24% Beginning Fund Balance $43,726,050 29% Intergovernmental $17,199,098 Taxes 11% Licenses & Permits $27,418,141 $1,272,200 18% 1% 12102007 // 2008 EXPENDITURES - ALL FUNDS 2007SUPPLIES &DEBTCAPITALENDIN2008 G FUNDBUDGETPERSONNELSERVICESSERVICEOUTLATRANSFERSFUND BAL.BUDGET Y General Fund General Government: City Council294,310278,23633,544000311,780 Executive368,858241,730104,967000346,697 Financial Services1,390,517950,400387,6760001,338,076 Legal Department691,811443,578233,522000677,100 Human Resources469,840373,852120,326000494,178 Community Development1,248,8571,105,825226,9960017,5001,350,321 Municipal Court1,138,984820,332410,0450001,230,377 City Auditor146,041138,55620,212000158,768 Law Enforcement10,048,8918,137,6142,512,3140164,522010,814,450 Fire/Emergency Medical7,023,2536,671,049941,4540296,55520,0007,929,058 Police & Fire Pension02,195,000205,1000002,400,100 General Facilities1,162,124136,343735,4180112,0000983,761 General Parks3,306,3692,267,7621,052,62020,500003,340,882 Engineering567,486545,00994,469000639,478 Economic Development161,513104,97530,636000135,611 Non-Departmental5,391,172135,0001,933,391412,18501,439,1303,919,706 Ending Fund Balance3,450,9533,121,6303,121,630 Total General Fund36,860,97924,545,2619,042,690432,685573,0771,476,6303,121,63039,191,973 Special Revenue Funds: Arterial Street15,281,827027,50005,792,00007,478,32713,297,827 Street3,433,9911,738,1571,606,4000105,70804853,450,750 Contingency Reserve3,056,7570000285,0001,356,9831,641,983 Civic Improvement538,5000304,00000155,0001,500460,500 Parking System2,348,48339,220596,229015,5001,591,60014,1792,256,728 Comm. Dev. Block Grant1,852,438149,698967,07600100,00049,0541,265,828 Abatement Revolving Fund172,0755,61734,500000136,958177,075 Police Special Projects566,8960160,600045,0000276,296481,896 Public Access Television543,310230,04947,808055,00025,0002,002359,859 Gift & Donations Fund134,961021,0000010,00055,33786,337 Trial Improvement19,7160000011,31611,316 One Percent for Arts122,0440750064,00001,25066,000 Conference Center Oper2,376,117117,5561,531,513050,000041,2371,740,306 Total Spec. Rev. Funds30,447,1152,280,2975,297,37606,127,2082,166,6009,424,92425,296,405 Debt Service Fund: Bond Fund2,460,786001,917,01500527,7112,444,726 Total Debt Service Fund2,460,786001,917,01500527,7112,444,726 Capital Improvement Funds: Public Safety Bond2,927,2710001,437,13801,9941,439,132 Harborside Plaza & Commons00004,750,000004,750,000 General Govt Capital Improv.3,420,577000125,0002,045,00015,8012,185,801 Park Facilities Construction2,479,656055,00013,164970,00001,6571,039,821 Boardwalk Project1,193,8950002,725,00028,75022,6452,776,395 Total Capital Improv. Funds10,021,399055,00013,16410,007,1382,073,75042,09712,191,149 12102007 // 2008 EXPENDITURES - ALL FUNDS 2007SUPPLIES &DEBTCAPITALENDIN2008 G FUNDBUDGETPERSONNELSERVICESSERVICEOUTLATRANSFERSFUND BAL.BUDGET Y Enterprise Funds: Water Utility18,489,7673,791,8073,839,826761,0003,982,0001,260,6844,167,55817,802,875 Wastewater Utility20,605,7112,866,4552,902,7493,876,25012,184,2501,461,7294,095,09627,386,529 SW Bremerton Sewer4,456,4420004,750,000077,4424,827,442 Stormwater Utility2,804,462865,849760,30616,800360,000250,988319,5352,573,478 Gold Mountain Golf Complex4,056,24255,4093,035,914622,11552,0000340,5444,105,982 Utility Debt Reserve575,859000001,206,3871,206,387 Total Enterprise Funds50,988,4837,579,52010,538,7955,276,16521,328,2502,973,40110,206,56257,902,693 Internal Service Funds: Risk Management2,593,398391,462978,3860001,183,3632,553,211 Equipment Rental Reserve7,987,459556,1281,411,80102,018,45025,0005,971,2409,982,619 Information Services1,127,802495,750447,479073,0000105,2801,121,509 Total Internal Service Funds11,708,6591,443,3402,837,66602,091,45025,0007,259,88313,657,339 Trust & Agency Fund Police & Fire Pension2,636,4430000335,0000335,000 Total Trust & Agency2,636,4430000335,0000335,000 Total Non-General Funds108,262,88511,303,15718,728,8377,206,34439,554,0467,573,75127,461,177111,827,312 Total All Funds145,123,86435,848,41827,771,5277,639,02940,127,1239,050,38130,582,807151,019,285 Expenditures - All Funds Transfers Ending Fund $9,050,381 Balance 6% $30,582,807 Debt Service 20% $40,127,123 27% Personnel $35,848,418 24% Capital Outlay Supplies & Services $7,639,029 $27,771,527 5% 18% 2008 REVENUES - ALL FUNDS BUDGET COMPARISON BY FUND 2008DIFFERENCE% 20062007 BUDGETAMOUNT ACTUABUDGET L General Fund: City Counci77,74889,14199,82510,68411.99 l Executiv113,98891,311139,90048,58953.21 e Financial Service4,220,4834,644,8534,693,77548,9221.05 s Legal Departmen150,183150,718169,85019,13212.69 t Human Resource130,668155,590159,7504,1602.67 s Community Developme1,088,387892,200829,900(62,300)(6.98) n Municipal Cour855,599835,000844,9009,9001.19 t City Audito41,20844,68051,0006,32014.15 r Law Enforcemen591,732659,539387,928(271,611)(41.18) t Fire/Emergency Medica1,508,9651,765,4861,863,82398,3375.57 l Police & Fire Pensio42,00042,000N/ nA General Facilitie263,710422,797147,630(275,167)(65.08) s Parks711,198682,550612,900(69,650)(10.20) Engineerin91,68958,50075,80017,30029.57 g Economic Developmen50,00025,0000(25,000)(100.00) t Non-Departmenta20,985,83021,935,50624,623,3222,687,81612.25 l Beginning Fund Balanc3,541,2654,408,1084,449,67041,5620.94 Total General Fun 34,422,65536,860,97939,191,9732,330,9946.32 d Special Revenue Funds : Arterial Stree2,475,53315,281,82713,297,827(1,984,000)(12.98) t Stree2,694,3573,433,9913,450,75016,7590.49 t Contingency Reserv2,542,3223,056,7571,641,983(1,414,774)(46.28) e Civic Improvemen341,155538,500460,500(78,000)(14.48) t Parking Syste1,998,6342,348,4832,256,728(91,755)(3.91) m Comm. Dev. Block Gran1,193,3291,852,4381,265,828(586,610)(31.67) t Abatement Revolving Fun80,067172,075177,0755,0002.91 d Police Special Project297,718566,896481,896(85,000)(14.99) s Public Access Televisio273,613543,310359,859(183,451)(33.77) n Gift & Donation Fun38,546134,96186,337(48,624)(36.03) d Trial Improvemen10,11619,71611,316(8,400)(42.60) t One Percent for Art51,913122,04466,000(56,044)(45.92) s Conference Center Operatin1,974,2242,376,1171,740,306(635,811)(26.76) g Total Special Revenue Fund 13,971,52630,447,11525,296,405(5,150,710)(16.92) s Debt Service Fund: Bond Fun2,095,8832,460,7862,444,726(16,060)(0.65) d Total Debt Service Fun 2,095,8832,460,7862,444,726(16,060)(0.65) d Capital Improvement Funds : Public Safety Bon1,425,1822,927,2711,439,132(1,488,139)(50.84) d Harborside Plaza & Common4,750,0004,750,000N/ sA General Govt. Cap. Imp1,824,7643,420,5772,185,801(1,234,776)(36.10) Park Facilities Constructio 811,3462,479,6561,039,821(1,439,835)(58.07) n Boardwalk Projec614,3871,193,8952,776,3951,582,500132.55 t Total Capital Improve Fund 4,675,67810,021,39912,191,1492,169,75021.65 s 2008 REVENUES - ALL FUNDS BUDGET COMPARISON BY FUND 2008DIFFERENCE% 20062007 BUDGETAMOUNT ACTUABUDGET L Enterprise Funds: Water Utilit11,018,65418,489,76717,802,875(686,892)(3.71) y Wastewater Utilit14,214,85220,605,71127,386,5296,780,81832.91 y SW Bremerton Sewe4,456,4424,827,442371,0008.33 r Stormwater Utilit2,275,6952,804,4622,573,478(230,984)(8.24) y Gold Mountain Gol3,588,5894,056,2424,105,98249,7401.23 f Utility Debt Reserv63,665575,8591,206,387630,528109.49 e Total Enterprise Fund 31,161,45550,988,48357,902,6936,914,21013.56 s Internal Service Funds : Risk Managemen1,298,7252,593,3982,553,211(40,187)(1.55) t Equipment Rental Reserv3,816,0157,987,4599,982,6191,995,16024.98 e Information Technolog898,4041,127,8021,121,509(6,293)(0.56) y Total Internal Service Fund 6,013,14411,708,65913,657,3391,948,68016.64 s Trust & Agency Fund s Police & Fire Pensio2,312,2302,636,443335,000(2,301,443)(87.29) n Total Trust & Agency Fund 2,312,2302,636,443335,000(2,301,443)(87.29) s Total All Fund 94,652,571145,123,864151,019,2855,895,4214.06 s 2008 EXPENDITURES - ALL FUNDS BUDGET COMPARISON BY FUND 200620072008DIFFERENCE% ACTUALBUDGETBUDGETAMOUNT General Fund: City Counci275,013294,310311,78017,4705.94 l Executiv 266,344368,858346,697(22,161)(6.01) e 1,201,1111,390,5171,338,076(52,441)(3.77) Financial Service s Legal Departmen560,761691,811677,100(14,711)(2.13) t Human Resource349,140469,840494,17824,3385.18 s Community Developmen1,000,2851,248,8571,350,321101,4648.12 t Municipal Cour888,6681,138,9841,230,37791,3938.02 t City Audito123,701146,041158,76812,7278.71 r Law Enforcemen8,937,03910,048,89110,814,450765,5597.62 t Fire/Emergency Medica6,552,7327,023,2537,929,058905,80512.90 l Police & Fire Pensio2,400,1002,400,100N/A n General Facilitie834,5311,162,124983,761(178,363)(15.35) s General Parks2,851,3273,306,3693,340,88234,5131.04 Engineerin446,845567,486639,47871,99212.69 g Economic Developmen144,884161,513135,611(25,902)(16.04) t Non-Departmenta5,599,6405,391,1723,919,706(1,471,466)(27.29) l Ending Fund Balance4,408,1083,450,9533,121,630(329,323)(9.54) Total General Fund 34,440,12836,860,97939,191,9732,330,9946.32 Special Revenue Funds: Arterial Stree1,913,26515,281,82713,297,827(1,984,000)(12.98) t Stree2,774,3073,433,9913,450,75016,7590.49 t Contingency Reserv2,723,8113,056,7571,641,983(1,414,774)(46.28) e Civic Improvemen265,000538,500460,500(78,000)(14.48) t Parking Syste2,050,2072,348,4832,256,728(91,755)(3.91) m Comm. Dev. Block Gran2,099,6331,852,4381,265,828(586,610)(31.67) t Abatement Revolving Fun4,365172,075177,0755,0002.91 d Police Special Project50,157566,896481,896(85,000)(14.99) s Public Access Televisio325,683543,310359,859(183,451)(33.77) n Gift & Donation Fun22,322134,96186,337(48,624)(36.03) d Trial Improvemen19,71611,316(8,400)(42.60) t One Percent for Art122,04466,000(56,044)(45.92) s Converence Center Operatin1,890,9922,376,1171,740,306(635,811)(26.76) g Total Special Revenue Funds 14,119,74330,447,11525,296,405(5,150,710)(16.92) Debt Service Fund: Bond Fun2,005,1162,460,7862,444,726(16,060)(0.65) d Total Debt Service Fund 2,005,1162,460,7862,444,726(16,060)(0.65) Capital Improvement Funds: Public Safety Bon5,787,3072,927,2711,439,132(1,488,139)(50.84) d Harborside Plaza & Common4,750,0004,750,000N/A s General Govt. Cap Imp.1,747,6413,420,5772,185,801(1,234,776)(36.10) Parks Facilities Constructio209,6132,479,6561,039,821(1,439,835)(58.07) n Boardwalk Projec344,9621,193,8952,776,3951,582,500132.55 t Total Capital Improve Funds 8,089,52210,021,39912,191,1492,169,75021.65 2008 EXPENDITURES - ALL FUNDS BUDGET COMPARISON BY FUND 200620072008DIFFERENCE% ACTUALBUDGETBUDGETAMOUNT Enterprise Funds: Water Utilit11,659,59618,489,76717,802,875(686,892)(3.71) y Wastewater Utility15,733,40120,605,71127,386,5296,780,81832.91 SW Bremerton Sewer4,456,4424,827,442371,0008.33 Stormwater Utility1,367,6882,804,4622,573,478(230,984)(8.24) Gold Mountain Golf3,934,6644,056,2424,105,98249,7401.23 Utility Debt Reserve557,859575,8591,206,387630,528109.49 Total Enterprise Funds 33,253,20850,988,48357,902,6936,914,21013.56 Internal Service Funds: Risk Management1,818,7212,593,3982,553,211(40,187)(1.55) Equipment Rental Reserve2,597,9347,987,4599,982,6191,995,16024.98 Information Technology820,1891,127,8021,121,509(6,293)(0.56) Total Internal Service Funds 5,236,84411,708,65913,657,3391,948,68016.64 Trust & Agency Funds: Police & Fire Pension2,319,5752,636,443335,000(2,301,443)(87.29) Total Trust & Agency Funds 2,319,5752,636,443335,000(2,301,443)(87.29) Total All Funds 99,464,136145,123,864151,019,2855,895,4214.06 2008 COMPARATIVE TAX INFORMATION Estimated 2002200320042005200620072008 Total Property Tax Levy Levied by the City of Bremerton Regular$4,980,977$5,076,748$5,193,426$5,275,463$5,468,572$5,662,522$6,442,873 Special971,7941,934,4731,911,6851,785,5121,958,5851,992,4811,877,146 Total$5,952,771$7,011,221$7,105,111$7,060,975$7,427,157$7,655,003$8,320,019 Property Tax Rate ($ per $1,000) Levied by the City of Bremerton Regular$3.30$3.20$3.03$2.85$2.46$2.10$1.90 Special0.651.231.120.970.890.750.60 Total$3.95$4.43$4.15$3.82$3.35$2.85$2.72 Distribution of Property Levy Rate (For a Bremerton Resident) State$3.20$2.93$3.08$2.96$2.60$2.30N/A Kitsap County1.611.601.361.261.090.92N/A City of Bremerton General Fund3.303.203.032.852.462.101.90 Emerg. Medical Serv.0.500.480.500.470.410.350.31 Special Law Debt Service0.150.750.620.500.480.400.29 Port of Bremerton0.500.490.480.430.380.77N/A School District #1004.824.844.584.333.733.38N/A Library0.480.460.450.420.360.31N/A Public Utility District0.110.100.100.090.080.07N/A Total$14.67$14.85$14.20$13.31$11.59$10.60$2.50 Sales Tax Rates: State6.50%6.50%6.50%6.50%6.50%6.50%6.50% Transit0.80%0.80%0.80%0.80%0.80%0.80%0.80% Kitsap County0.35%0.35%0.45%0.45%0.45%0.45%0.45% City of Bremerton0.85%0.85%0.85%0.85%0.85%0.85%0.85% Total8.50%8.50%8.60%8.60%8.60%8.60%8.60% Parking Tax Rates: 6.0%8.0%10.0%10.0%10.0%10.0% Utility Tax Rates: Electric6.0%6.0%6.0%6.0%6.0%6.0%6.0% Gas6.0%6.0%6.0%6.0%6.0%6.0%6.0% Solid Waste11.0%11.0%10.0%10.0%10.0%9.5%9.5% Cable Television7.0%7.0%7.0%7.0%7.0%7.0%7.0% Telephone6.0%6.0%6.0%6.0%6.0%6.0%6.0% Water6.0%7.0%8.5%8.5%8.5%8.5%8.5% Wastewater6.0%7.0%8.5%8.5%8.5%8.5%8.5% Stormwater0.0%7.0%8.5%8.5%8.5%8.5%8.5% ïîï ïîî INTRODUCTION The City of Bremerton provides services and programs for its citizens through the efforts of its qualified and capable staff. The 2008 budget includes changes to staffing levels and pay band changes as noted in the following tables. The approved pay bands are included in this section of the budget document. A base salary increase of $10,000 was approved for the Mayor. In addition, the Municipal Court Judge compensation was set at 95% of the District & Superior Court judges’ salaries as updated on September 1, 2007. The Judge’s compensation adjustment is required in order to remain eligible to participate in certain state shared revenues. In addition, the 2008 budget includes a cost of living adjustment of 4.8618% for those employees covered under the “management, professional, confidential & fiduciary” pay plans. Finally, the budget also includes pay adjustments required per the various labor agreements of the City. 2008 FTE Level Changes Department Position Action FTE change Authorized Staffing Level per 2007 Budget 370.00 Reclass Regular Part Time Financial Services Part-Time ClericalEmployee Out of “Other Labor” Category 0.38 Increase FTE from .5 to .55 (split LegalLegal Assistant with Risk Management) 0.025 Reclass Regular Part Time Gold Mountain Golf Operations Supervisor Employee Out of “Other Labor” Golf Category 0.55 Increase FTE from .5 to .55 (split Risk Management Legal Assistant with General Fund - Legal) 0.025 Equipment Rental ReserveMechanics Helper New Position 1.00 Authorized Staffing Level per 2008 Budget 371.98 City of Bremerton Wellness Walk - Sponsored by the Wellness Committee May 22, 2007 - Lions Park _______________________________________________________________________ Staffing Overview ïîí All 2008 Staffing Changes Department Position Action FTE change $ Impact Customer Service Rep Reclassification of Acct Asst. II None ($ 2,215) Accounting Asst Senior Position Upgrade None $ 1,544 Financial Reclass Regular Part Time Services Part-Time Clerical Employee Out of “Other Labor” Category 0.38 None Increase FTE from .5 to .55 (split LegalLegal Assistant with Risk Management) 0.025 $ 1,366 Municipal Court Legal Technician Sr. Reclassification and Upgrade 0.00 $ 4,234 Economic Title and Pay Band Change for Development Project Assistant Existing Position None$ 1,435 New – “Other Labor” Category Temporary – 1 Year Position Two Temporary Positions for 1 Tech IYear – Split 60/40 to Water and Public Works & Wastewater None$ 72,309 Utilities Sewer/Storm Collection Title Change Requested in Same SupervisorGrade/Step NoneNone Reclass Regular Part Time Gold Mountain Golf Operations Supervisor Employee Out of “Other Labor” Golf Category 0.55 None RiskIncrease FTE from .5 to .55 (split Management Legal Assistant with General Fund - Legal) 0.025 $ 1,366 Equipment Rental Reserve Mechanics Helper New Position 1.00 $ 57,977 Information Title and Pay Upgrade for Existing TechnologyLead PC Technician Position None$ 3,064 Total Change in 2008 Budget 1.98 $141,080 Some City employees who are eligible under state law to be represented by a labor organization are employed under labor contract provisions on such matters as salaries, vacation, sick leave, medical and dental insurance, working conditions, and grievance procedures. Bremerton strives to complete these agreements in a timely manner and promote labor relations policies that are mutually beneficial to the City and employees. The City concluded labor negotiations in 2006 for contracts covering 2006 – 2008 with the Teamsters, Bremerton Police Officer’s Guild, Police Management Association, and the International Association of Firefighters. Negotiations for new bargaining agreements will occur in 2008 in advance of the contract expirations on December 31, 2008. _______________________________________________________________________ Staffing Overview ïîì EMPLOYEE GROUPS Represented: Teamster’s – (188.5 members, contract expires December 31, 2008) Bremerton Police Officer’s Guild - (60 members, contract expires December 31, 2008) Police Management Association – (5 members, contract expires December 31, 2008) International Association of Firefighters – (53 members, contract expires December 31, 2008) Non-Represented: Management and Professional – 52.5 Elected Positions – 11 MEDICAL PLANS The City provides medical insurance coverage to employees and their dependents and provides for the payment of insurance premiums with a modest contribution from employees per month per dependents covered. Currently the City’s medical insurance plans are provided through KPS and Group Health. In 2008, the City will pay 90% of dependents coverage premiums; a decrease of 5% from 2007 - with employees assuming the additional 5%. The City has continued to experience rapid escalation of medical insurance premium costs and the 2008 budget anticipates a weighted average increase for medical insurance premiums of 9.58% more than the 2007 rates based upon early insurance renewal rate indicators. PENSION PLANS Substantially all City full-time and qualifying part-time employees participate in either the Public Employees Retirement System (PERS) or the Law Enforcement Officers and Fire Fighters (LEOFF) Retirement System. PERS and LEOFF are statewide local government retirement systems administered by the Department of Retirement Systems. The employer contribution for the LEOFF 2 and PERS retirement systems has increased significantly from the prior year. The employer contribution for LEOFF 2 has increased by 0.66% and the employer contribution for PERS has increased by 3.03%. Employee contributions have also increased significantly for LEOFF 2 and PERS 2 and PERS 3. Pension Plans Rate of Contributions (Effective September 1, 2007) City Employee Total LEOFF 1 0.16%0.00%0.16% LEOFF 2 5.33%8.60%13.93% PERS 1 6.13%6.00%12.13% PERS 2 6.13%4.15%10.28% PERS 3 6.13%VariableVariable The following schedules provide the detail of positions and pay bands included in the 2008 budget. _______________________________________________________________________ Staffing Overview ïîë 2008 STAFFING LEVELS 2005200620072008 General Fund Executive 2.002.002.002.00 City Council 10.8010.8010.8010.80 Financial Services 12.0011.0011.0011.38 Human Resources 3.004.004.004.00 Community Development 13.0013.0013.0013.00 Legal 3.003.503.753.775 Municipal Court 10.0010.0010.0010.00 Law Enforcement 77.0078.0083.0083.00 Fire/Emergency Medical 58.0058.0058.0058.00 Parks 24.2025.7026.0026.10 City Auditor 1.201.201.201.20 General Facilities 1.191.161.161.16 Engineering 4.794.564.564.56 Economic Development 1.501.001.001.00 Total General Fund 221.68223.92229.47229.975 Other Funds: Arterial Streets 5.064.124.124.12 Street 19.8019.4919.9919.99 Parking System 0.490.49 Comm. Dev. Block Grant 2.002.002.002.00 Economic Development 0.50 BKAT 1.002.002.002.00 Convention Center Operating 1.001.501.761.76 General Gov. Capital Improv 0.100.100.10 Public Safety Bond 0.500.500.50 Harborside Plaza & Commons 0.500.500.50 Water Utility 47.5746.6748.1748.17 Wastewater Utility 35.6235.4936.4936.49 Stormwater Utility 8.3210.7611.0111.01 Gold Mountain Golf Course 1.550.550.500.95 Risk Management 1.001.501.751.775 Equipment Services (ERR) 6.156.156.157.15 Information Technology 5.005.005.005.00 Total Non-General 134.57136.33140.53142.01 Total All Funds 356.25360.25370.00371.98 2005 - 2008 Staffing History 2008 2007 2006 2005 0255075100125150175200225250275300325350375400 All FundsOher FundsGeneral Fund ïîê STAFFING AUTHORIZATION - ALL DEPARTMENTS/FUNDS 200720082008 Monthly Salary Range JOB CLASSIFICATION BY DEPARTMENTBUDGETBUDGETMinimumMaximum City Council City Council Member9.009.001,0001,150 Legislative Assistant1.001.004,9125,985 Council/Auditor Assistant0.800.804,2365,161 10.8010.80 Executive Mayor1.001.009,8069,806 Executive Assistant1.001.004,9125,985 2.002.00 Financial Services Director of Financial Services1.001.008,45710,304 Finance Officer1.001.006,2887,662 City Clerk1.001.005,6976,941 Assistant Finance Officer1.001.005,6976,941 Budget Analyst1.001.004,6765,697 Accounting Assistant Sr.3.004.003,4514,061 Office Assistant Sr. Spec.1.001.003,4514,061 Accounting Assistant II2.000.003,1113,644 Customer Service Representative0.001.002,9503,451 Part-Time Clerical0.000.382,1402,856 11.0011.38 Legal City Attorney1.001.008,45710,304 Assistant City Attorney1.501.506,6078,049 Paralegal1.001.004,9125,985 Legal Assistant0.250.2753,6534,450 3.753.775 Human Resources Human Resources Manager1.001.007,6629,335 Civil Service Officer/HR Assistant1.001.004,2365,161 Human Resources Analyst1.001.004,6765,697 Payroll Specialist1.001.003,4514,061 4.004.00 Community Development Director of Community Development1.001.008,0499,808 Assistant Director1.001.006,2887,662 Senior Planner 2.002.004,9125,985 Office Assistant Sr. Spec. 1.001.003,4514,061 Code Enforcement Officer1.001.004,7775,647 Planner II1.001.004,7775,647 Planner I2.002.004,2905,053 Building Development Specialist III1.001.004,7775,647 Building Development Specialist II1.001.004,2905,053 Building Development Specialist I2.002.003,6444,290 13.0013.00 Municipal Court Municipal Court Judge1.001.0010,21810,218 Court Services Manager1.001.005,9857,292 Probation Officer1.001.003,8484,527 Legal Technician Sr.1.001.004,2905,053 Legal Technician 6.006.003,1113,644 10.0010.00 ïîé STAFFING AUTHORIZATION - ALL DEPARTMENTS/FUNDS 200720082008 Monthly Salary Range JOB CLASSIFICATION BY DEPARTMENTBUDGETBUDGETMinimumMaximum City Auditor City Auditor1.001.006,6078,049 Council/Auditor Assistant0.200.204,2365,161 1.201.20 Police Department Police Chief 1.001.008,88510,826 Police Captain2.002.008,2629,031 Police Lieutenant3.003.007,2537,928 Police Sergeant8.008.006,2516,798 Police Officer52.0052.004,6865,774 Court Home Detention Specialist1.001.003,8484,527 Warrant Server3.003.003,8484,527 Police Support Manager1.001.005,1616,288 Police Records Specialist II5.005.003,2793,848 Office Assistant Senior4.004.003,1113,644 Evidence Property Control Specialist1.001.002,9503,451 Lead Evidence Property Control Specialist1.001.003,1113,644 Community Relations & Information Specialist1.001.004,2905,053 83.0083.00 Fire Department Fire Chief1.001.008,45710,304 Assistant Fire Chief1.001.007,6629,335 Battalion Chief1.001.008,0808,727 Fire Captain3.003.007,8208,342 Fire Captain - Deputy Fire Marshal1.001.007,8208,342 Fire Captain - Medical Officer1.001.007,8208,342 Firefighter/Fire Prevention2.002.004,6797,219 Fire Lieutenant13.0013.006,8337,379 Firefighter 12.0012.004,1596,417 Firefighter / SCBA3.003.004,3256,673 Firefighter /Equip. Maint.3.003.004,3256,673 Paramedic/Firefighter15.0015.004,6797,219 Office Assistant Sr. Spec.1.001.003,4514,061 Office Assistant II1.001.002,8023,279 58.0058.00 Parks & Recreation Director of Parks & Recreation0.750.857,7629,335 Parks Development Planner1.001.004,9125,985 Parks Maintenance Manager1.001.005,1616,288 Athletics/Recreation Manager1.001.005,1616,288 Parks Maintenance Supervisor1.001.005,0535,967 Office Assistant III0.750.752,9503,451 Office Assistant II1.001.002,8023,279 Parks Facilities Specialist1.001.004,5275,341 Parks Service Specialist, Sr.3.253.253,8484,527 Parks Service Specialist4.004.003,4514,061 Parks Laborer 5.255.252,5262,950 Recreation Program Coordinator III1.001.003,8484,527 Recreation Program Coordinator II2.002.003,6444,290 Recreation Program Coordinator I3.003.003,1113,644 26.0026.10 ïîè STAFFING AUTHORIZATION - ALL DEPARTMENTS/FUNDS 200720082008 Monthly Salary Range JOB CLASSIFICATION BY DEPARTMENTBUDGETBUDGETMinimumMaximum General Facilities Lead Facilities Service Specialist0.820.824,5275,341 Facilities Service Specialist Senior0.040.044,0614,777 Facility Inventory Supervisor0.150.155,0535,967 1.011.01 Engineering City Engineer0.300.307,6629,335 Office Assistant Sr.0.300.303,1113,644 Project Manager0.060.065,9857,292 Project Assistant0.250.253,4514,061 Managing Engineer0.740.746,2887,662 Civil Engineer II0.500.505,3416,302 Permit Technician0.210.213,6444,290 Engineering Technician Sr.0.310.315,3416,302 Engineering Technician III1.211.214,0614,777 Engineering Technician IV0.530.534,5275,341 4.414.41 Public Works Director of Public Works and Utilities0.100.108,45710,304 Administrative Analyst0.100.104,9125,985 PW&U Financial Manager0.100.105,6976,941 0.300.30 Economic Development Redevelopment Projects Administrator0.500.508,45710,304 Project Assistant0.000.503,4514,061 Office Assistant Sr.0.500.003,1113,644 1.001.00 TOTAL GENERAL FUND229.47229.98 Community Development Block Grant Community Development Programs Administrator1.001.005,1616,288 Community Development Programs Coordinator1.001.004,6765,697 2.002.00 BKAT Public Access Manager1.001.004,9125,985 Production Administrator1.001.004,2365,161 2.002.00 Convention Center Parks Laborer0.250.252,5262,950 Parks Service Specialist Senior0.750.753,8484,527 Journey Level Electrician 0.500.504,5275,341 1.501.50 Economic Development - Various Capital Projects Redevelopment Projects Administrator0.500.508,45710,304 Project Assistant0.000.503,4514,061 Office Assistant Sr.0.500.003,1113,644 1.001.00 Gold Mountain Golf Course Director of Parks & Recreation0.250.157,6629,345 Golf Operations Supervisor0.000.553,0933,093 Office Assistant III0.250.252,9503,451 0.500.95 ïîç STAFFING AUTHORIZATION - ALL DEPARTMENTS/FUNDS 200720082008 Monthly Salary Range JOB CLASSIFICATION BY DEPARTMENTBUDGETBUDGETMinimumMaximum Public Works & Utilities Street Department Public Works Operations Manager1.001.006,2887,662 Electronics Supervisor1.001.005,0535,967 Street Service Specialist Supervisor2.002.005,0535,967 Sign Shop Service Specialist Supervisor1.001.005,0535,967 Electronics Technician4.004.005,0535,967 Journey Electrician 1.501.505,0535,967 Street Service Specialist Sr.3.003.004,0614,777 Street Service Specialist5.005.003,6444,290 Sign Shop Service Specialist Sr.1.001.004,0614,777 Sign Shop Service Specialist1.001.003,6444,290 Accounting Assistant Senior1.001.003,4514,061 21.5021.50 Engineering City Engineer0.700.707,6629,335 Managing Engineer1.261.266,2887,662 Project Manager1.941.945,9857,292 Office Assistant Senior0.700.703,1113,644 Project Assistant0.750.753,4514,061 Civil Engineer III1.001.005,6476,625 Civil Engineer II2.502.505,3416,302 Civil Engineer I 1.001.004,7775,647 Engineering Technician Sr.1.691.695,3416,302 Engineering Technician IV4.474.474,5275,341 Engineering Technician III1.791.794,0614,777 Engineering Technician II 1.001.003,6444,290 Permit Technician0.790.793,6444,290 19.5919.59 Utility Operations (Water, Wastewater, Stormwater) Director of Public Works & Utilities0.900.908,45710,304 Project Manager1.001.005,9857,292 Utility Operations Manager1.001.006,2887,662 Water Resources Manager1.001.006,2887,662 Wastewater Manager1.001.006,2887,662 Forestry Manager1.001.006,2887,662 PW&U Financial Manager0.900.905,6976,941 Administrative Analyst0.900.904,9125,985 Utility Accounts Supervisor1.001.004,5275,341 Accountant1.001.004,2905,053 Accounting Assistant Sr.4.004.003,4514,061 Accounting Assistant III1.001.003,2793,848 Accounting Assistant II2.002.003,1113,644 Office Assistant Senior Spec.1.001.003,4514,061 Office Assistant Senior 1.001.003,1113,644 Office Assistant II 2.002.002,9503,451 Web Support Specialist0.500.503,4514,061 Water Operator Lead1.001.004,5275,341 Water Operator Senior2.002.004,0614,777 Water Operator2.002.003,6444,290 ïíð STAFFING AUTHORIZATION - ALL DEPARTMENTS/FUNDS 200720082008 Monthly Salary Range JOB CLASSIFICATION BY DEPARTMENTBUDGETBUDGETMinimumMaximum Wastewater Treatment Plant Operations Supv.1.001.005,0535,967 Wastewater Treatment Plant Maint. Supv.1.001.005,0535,967 Wastewater Treatment Plant Operator I3.003.004,2905,053 Wastewater Treatment Plant Operator II2.002.004,5275,341 Wastewater Treatment Plant Maint. Tech.4.004.003,8484,527 Computerized Maint. Mgmt. Sys. Tech.1.001.004,5275,341 Journey Electrician1.501.504,5275,341 Lead Facilities Service Specialist0.180.184,5275,341 Facilities Service Specialist Senior0.960.964,0614,777 Water Resources Operations Supervisor1.001.005,0535,967 Water Distribution Supervisor1.001.005,0535,967 Forestry Service Specialist Supervisor1.001.005,3416,302 Utilities Service Specialist Supervisor1.000.005,0535,967 Sewer/Storm Collection Supervisor0.001.005,0535,967 Facilities/Inventory Supervisor0.850.855,0535,967 Lead Utilities Service Specialist3.003.004,5275,341 Forestry Service Specialist Senior2.002.003,8484,527 Utilities Service Specialist Senior7.007.004,0614,777 Utilities Serv. Spec. 11.0011.003,6444,290 Facilities Service Specialist2.002.003,6444,290 Cross Connection Control Specialist1.001.004,7775,647 Lead Water Distribution Specialist1.001.004,5275,341 Utilities Customer Service Representative1.001.004,0614,777 WWTP Laboratory Technician1.001.004,0614,777 Water Resources Assistant1.001.003,2793,848 Electronics Technician1.001.004,5275,341 Environmental Technician2.502.504,5275,341 79.1979.19 Risk Management Risk Manager1.001.006,2887,662 Assistant City Attorney0.500.506,6078,049 Legal Assistant0.250.2753,6534,450 1.751.775 Equipment Maintenance Fleet Manager1.001.005,4226,607 Accounting Assistant II1.001.002,8023,279 Automotive Equipment Technician Supervisor1.001.005,0535,967 Automotive Equipment Tech3.003.004,0614,777 Mechanic's Helper0.001.003,1113,644 6.007.00 Information Technology Information Systems Manager1.001.006,2887,662 Network Administrator1.001.005,0535,967 Customer Service/PC Technician1.000.004,5275,341 Application Support Analyst0.001.004,5275,341 Lead PC Technician0.001.004,5275,341 PC Technician2.001.004,0614,777 Web Support Specialist0.500.503,4514,061 5.505.50 TOTAL EMPLOYEES370.00371.98 ïíï CITY OF BREMERTON SALARY SCHEDULE AND JOB CLASSIFICATION ELECTED OFFICIALS 2008 ANNUA L JOB CLASSIFICATIONCOMPENSATION COUNCIL PRESIDENT13,800 COUNCIL MEMBERS12,000 MAYOR *117,671 MUNICIPAL COURT JUDGE **127,521 *Includes Base Adjustment and 4.86% Cost of Living ** Based on 95% Parity Adjustment ïíî ïíí ïíì ïíë ïíê CITY OF BREMERTON SALARY SCHEDULE AND JOB CLASSIFICATION NON-UNIFORMED REPRESENTED EMPLOYEES Effective 1-1-2008 STEP AND MONTHLY SALARY GRADEJOB CLASSIFICATIONABCDEFG 4Parks Laborer2,5262,5922,6532,7272,8022,8732,950 5Office Assistant I2,6532,7272,8022,8732,9503,0253,111 6Office Assistant II2,8022,8732,9503,0253,1113,1913,279 7Customer Service Representative2,9503,0253,1113,1913,2793,3643,451 Evidence Property Control Specialist Office Assistant III Police Records Specialist I 8Accounting Assistant II3,1113,1913,2793,3643,4513,5483,644 Lead Evidence Property Control Specialist Legal Technician Mechanic's Helper Office Assistant Sr. Recreation Prog. Coor. I 9Accounting Assistant III3,2793,3643,4513,5483,6443,7403,848 Police Records Specialist II Water Resources Assistant 10Accounting Assistant Sr.3,4513,5483,6443,7403,8483,9544,061 Office Assistant Senior Specialist Parks Service Specialist Payroll Specialist Project Assistant Web Support Specialist 11BDS I3,6443,7403,8483,9544,0614,1804,290 Engineering Technician II Facilities Service Specialist Permit Technician Recreation Program Coord. II Sign Shop Service Specialist Street Service Specialist Utilities Service Specialist Water Operator WWTP Operator Trainee 12Court Home Detention Specialist3,8483,9544,0614,1804,2904,4034,527 Forestry Service Specialist Sr. Parks Service Specialist Sr. Probation Officer Rec. Program Coordinator III Warrant Server WWTP Maintenance Technician ïíé CITY OF BREMERTON SALARY SCHEDULE AND JOB CLASSIFICATION NON-UNIFORMED REPRESENTED EMPLOYEES Effective 1-1-2008 STEP AND MONTHLY SALARY GRADEJOB CLASSIFICATIONABCDEFG 13Automotive Equipment Technician4,0614,1804,2904,4034,5274,6574,777 Engineering Technician III Facilities Service Specialist Sr. PC Technician Sign Shop Svc. Specialist Sr. Streets Svc. Specialist Sr. Utilities Customer Service Rep. Utilities Svc. Specialist Sr. Water Operator Sr. WWTP Lab Technician 14Accountant4,2904,4034,5274,6574,7774,9105,053 BDS II Legal Technician Senior Planner I WWTP Operator I 15Application Support Analyst4,5274,6574,7774,9105,0535,1895,341 Assistant Network Administrator Customer Service/PC Tech. Electronics Technician Engineering Tech IV Environmental Technician Journey Level Electrician Lead Automotive Equipment Tech. Lead Facilities Service Specialist Lead PC Technician Lead Utilities Service Specialist Lead Water Distribution Specialist Lead Water Operator Parks Facilities Specialist Parks Lead Service Specialist Utility Accounts Supervisor WWTP CMMS Technician WWTP Operator II 16BDSIII4,7774,9105,0535,1895,3415,4975,647 Civil Engineer I Code Enforcement Officer Cross Connection Cont. Spec. Planner II ïíè CITY OF BREMERTON SALARY SCHEDULE AND JOB CLASSIFICATION NON-UNIFORMED REPRESENTED EMPLOYEES Effective 1-1-2008 STEP AND MONTHLY SALARY GRADEJOB CLASSIFICATIONABCDEFG 17Auto Equip. Tech. Supervisor5,0535,1895,3415,4975,6475,8085,967 Electronics Supervisor Facilities Inventory Supervisor Network Administrator Parks Maintenance Supervisor Sewer/Storm Collection Supervisor Sign Shop Service Spec. Supvr. Streets Service Spec. Supvr. Utilities Service Spec. Supvr. Water Distribution Supervisor Water Resources Oprns. Supvr. WWTP Maintenance Supvr. WWTP Operations Supervisor 18Civil Engineer II5,3415,4975,6475,8085,9676,1346,302 Engineering Technician Sr. Forestry Service Spec. Supvr. 19Civil Engineer III5,6475,8085,9676,1346,3026,4636,625 LONGEVITY WAGE RATES Date of hire thru 5 years:+0% 6th through 10th years:+1% 11th through 15th years:+2% 16th through 20th years:+3% 21st year and thereafter:+4% ïíç CITY OF BREMERTON SALARY SCHEDULE AND CLASSIFICATION - 2008 MONTHLY SALARY POLICE MANAGEMENT POSITIONS JOB CLASSIFICATION 0-1 Yr.1-2 Yr.2-3 Yr.3-4 Yr.4-5 Yr. Police Lieutenant7,2537,4177,5847,7547,928 Police Captain8,2628,4488,6388,8329,031 LONGEVITYLEOFF II 6th through 10th years:0.00% 11th through 15th years:2.00% 16th through 20th years:3.00% 21st through 25 years:7.75% 26th and over continuous years:9.00% BPOG POSITIONS 0-1 Yr.1-2 Yr.2-3 Yr.3-4 Yr.4-5 Yr. Patrol Officer4,6864,8615,0865,3135,774 Police Sergeant6,2516,3896,5226,6626,798 LONGEVITY 6th through 10th years:1.25% 11th through 15th years:2.50% 16th through 20th years:7.75% 21st through 25th years:9.00% 26th and over continuous years:10.50% ïìð ïìï ïìî ïìí ïìì ïìë ïìê ïìé FIRE CHIEF OFFICE ASSISTANT SR ASSISTANT CHIEF OFFICE BATTALION CHIEF ASSISANT II TRAINING LIEUTENANT CAPTAINCAPTAINCAPTAINFIRE MEDICAL SRVS 'A' SHIFT'B' SHIFT'C' SHIFTMARSHAL CAPTAIN LIEUTENANTLIEUTENANTLIEUTENANTFF STATION 1STATIN 1STATION 1INSPECTOR FF FF/MECHFF/MECHFF/MECH INSPECTOR FFFFFF LIEUTENANTLIEUTENANTLIEUTENANT STATION 2STATION 2STATION 3 FFFFFF FF/PMFF/PMFF/PM FF/PMFF/PMFF/PM LIEUTENANTLIEUTENANTLIEUTENANT STATION 3STATION 3STATION 3 FF/SCBAFF/SCBAFF/SCBA FF/PMFF/PMFF/PM FF/PMFF/PMFF/PM RELIEFRELIEFRELIEF LIEUTENANTLIEUTENANTLIEUTENANT FF/PMFF/PMFF/PM FFFFFF FFFFFF ïìè ïìç ïëð ïëï ïëî INTRODUCTION The General Fund is the principal governmental fund of the City of Bremerton and is used to account for all revenues and expenditures which are not accounted for in any other fund. The majority of General Fund revenues come from taxes, state and local shared revenues and charges for services.The General Fund revenues are the sources of money that pay for the City services of police, fire, parks, municipal court, and administration. REVENUES GENERAL FUND REVENUES ACTUALSPROJECTEDBUDGET 200320042005200620072008 Taxes 19,669,70618,770,694 20,792,008 21,928,072 23,669,000 23,873,941 Licenses & Permits 862,913720,506 1,138,578 1,043,642 965,000 1,022,900 Intergovernmental 1,138,9241,054,075 854,118 1,042,097 1,050,000 1,083,516 Charges for Services 2,266,6752,499,113 2,706,671 2,985,796 2,675,000 2,907,940 Fines & Forfeits 430,361559,711 423,556 483,449 700,000 2,312,000 Other Revenue 2,670,6572,378,872 2,722,840 3,398,334 3,714,239 3,542,006 27,039,23625,982,971 28,637,771 30,881,390 32,773,239 34,742,303 Property Tax The City’s property tax is levied based on the assessed property value from the previous year, as determined by the Kitsap County Assessor’s Office. The office of the Kitsap County Treasurer is responsible for both billing and collecting all property taxes. Each year the Bremerton City Council sets the property tax levy as part of the annual budget process. Prior to January 1, 2002, state statutes allowed for a property tax increase up to 6 percent plus revenues generated from new construction. With the voter approval of I- 747, cities are now limited to revenue increases of 1 percent plus new construction. Property tax levies may be increased by more than one percent only when a majority of the voters of the taxing district approve the budgetary increase.Special levies as approved by voters for bonds are not subject to the 1% limitation of HB2416 which recently reinstated property tax limits under I-747. The 2008 budget for the City of Bremerton includes a 1% increase from the prior year levy amount plus a levy on new construction and annexation assessed valuations. The following tables recap the City’s recent property tax levy information. ________________________________________________________________________ General Fund Overview ïëí Property Taxes Levied – City of Bremerton Emergency Medical Assessed Valuation RegularServices Year Amount Per/$1,000Amount Per/$1,000 2004 $1,713,798,770$5,193,426$3.03$857,645 $0.50 2005 $1,848,037,215$5,275,463$2.85$873,482 $0.47 2006 $2,222,892,524$5,468,572$2.46$904,604 $0.41 2007 $2,692,388,791$5,662,522$2.10$937,093 $0.35 2008 $3,112,062,260$5,880,210$1.90$973,577 $0.31 2008 Estimated per Kitsap County Assessor Historical Ad Valorem Property Tax Rates in the City of Bremerton (Rates In Dollars per $1,000 of Assessed Valuation) Emergency School City Regional CollectionGeneralCityMedicalWashKitsap Port of District YearFundBondsServices State CountyBremerton No. 100 PUDLibraryTotal 2007 $2.10 $0.40 $0.35 $2.30 $0.92 $0.77 $3.38 $0.07 $0.31 $10.60 20062.46 0.48 0.41 2.60 1.09 0.38 3.73 0.08 0.36 11.59 20052.85 0.50 0.47 2.96 1.26 0.43 4.33 0.09 0.42 13.31 20043.03 0.62 0.50 3.08 1.36 0.48 4.58 0.10 0.45 14.20 20033.20 0.75 0.48 2.93 1.60 0.49 4.84 0.10 0.46 14.85 2002 3.30 0.15 0.50 3.15 1.61 0.50 4.82 0.11 0.48 14.61 Source: Kitsap County Treasurer’s and Assessors offices. Sales & Use Tax Sales tax has become the largest source of revenue in the General Fund. The current sales tax rate is 8.6%. The City has a local sales and use tax of up to 1% to fund general government programs. Currently Bremerton imposes both the basic 0.5% and the optional 0.5% sales and use tax.Of this total, 0.15% is provided to the County per state law. The distribution of the 8.6% sales & use tax is shown in the table on the following page. This sales and use tax is imposed on personal and business purchases of tangible property. The retail sales tax is also assessed on some services such as repairs and construction. Sales tax is paid by businesses to the Department of Revenue. The Department then distributes the money to local governments. ________________________________________________________________________ General Fund Overview ïëì City of Bremerton City of Bremerton Sales & Use Sales & Use Tax Tax Rate per $1.00 Regular Criminal Justice State $0.0650 2003 $5,898,009 $390,571 Bremerton $0.0085 2004 $5,942,018 $415,333 County $0.0015 2005 $6,189,209 $447,939 Juvenile Facilities $0.0010 2006 $6,671,967 $485,800 Emergency 2007 $6,939,000 $484,000 Communications $0.0010 2008 $7,043,000 $508,000 Public Transit $0.0080 2007 Regular Sales & Use Tax Projected based on Year to Date Criminal Justice $0.0010 Actuals thru 8/31/07 Total $0.0860 2008 Budget Estimate In 2007, the State legislature implemented the Streamlined Sales Tax Act (SSTA) which goes into effect mid year 2008. The law prior to implementation of SSB 5089 provides that the local sales tax on sales of goods is allocated to the jurisdiction of the retail outlet at which or from which delivery is made. With implementation of the Streamlined Sales Tax Bill (SSB 5089) it shifts local sales taxes to the place of delivery instead. In most instances, the customer accepts delivery at the store, with no practical difference between current practice and the SSTA law implementation. However, when goods are delivered to the customer at a separate location, the SSTA will allocate sales tax to the jurisdiction where the customer is located rather than the jurisdiction where the retailer is located. The changes in the sourcing rule do not impact use taxes or sales taxes related to construction and certain types of major purchases such as automobiles, mobile homes, boats, and airplanes. Due to the “sourcing” rule changes, the Department of Revenue has identified the potential for substantial shifts in revenue from jurisdictions with businesses that involve delivery of goods to customers in other areas (such as warehousing operations). Because of this likely substantial negative financial impact to certain jurisdictions in the State, the legislation provides for full mitigation for revenue losses from destination based sourcing. Mitigation is not permanent – it ends for each mitigated city and county when voluntary compliance revenues exceed the sourcing change based loss. New money to the state (estimated to be $37.5 million the first year) from voluntary compliance will recoup the investment in mitigation to cities and counties – current estimated at $31.6 million during the first nine month period. Department of Revenue estimates indicate that Bremerton will enjoy financial benefits from the legislative change of approximately $80,000 per year initially. The largest portion of the annual increase (approximately $55,000/year) is from the shift in revenues from other Washington jurisdictions due to the “sourcing” change. The remaining estimated annual benefit of approximately $25,000 is expected to be from voluntary compliance revenues from participating out-of-state retailers collecting Washington State sales tax. ________________________________________________________________________ General Fund Overview ïëë The City of Bremerton’s sales tax revenue is substantially provided by activity in auto sales, construction, and local commercial enterprises that conduct “in store” transactions. As a result of these characteristics, Bremerton is positioned to be one of the cities in the State that experiences positive benefits from these “sourcing” changes and from the State participating fully in the national Streamlined Sales Tax Act. Sales tax revenue moves positively and negatively with the variations in the local economy. Slight changes in economic conditions can produce dramatic changes in sales tax revenues that the City experiences. Bremerton has been enjoying a steady increase in the sales & use tax receipts over the last several years. The average annual increase from 2002 through 2006 was 5.34%. The growth in 2006 over 2005 alone was a significant 7.8% and based upon actual results through August the 2007 sales tax revenues are projected to end the year at $6,939,000 (2007 budgeted revenues of $6,660,000) which is a 4.0% increase over 2006 actual results. Due to the variability of this revenue source it may “on average” increase from year to year - but any one year in the period may depart significantly from the “average”. The budget for 2008 assumes a 1.5% growth in sales tax revenue for the City over the projected 2007 revenues which is equivalent to a 5.75% increase over the 2007 budgeted revenues. Growth has been relatively consistent for several years now and the 2006 and projected 2007 results are particularly strong as a percentage increase year over year. It is anticipated that construction activity in the City will continue to support and sustain current sales tax revenue levels through the remainder of 2007 and into 2008, however, economic growth (both nationally and in the Northwest region) is showing definite signs of slowing - therefore the growth rate for 2008 is estimated to be much more moderate than what has been more recently experienced by the City. The City’s allocation of criminal justice sales tax is anticipated to increase 5% from the prior year budget based upon an analysis of historical and current revenue receipts through 2007 to date. Utility Tax Utility taxes are taxes levied on the gross operating revenues earned by private utilities from operations within Bremerton. Utilities on which taxes are levied include electric, gas, telephone, cable television, and solid waste. The private utility tax rate varies from 6% to 9.5% with the tax on electric, gas and telephone services being capped by state statute at 6%. ________________________________________________________________________ General Fund Overview ïëê The private utility taxes generally increase from year to year with growth that can be largely attributed to the rate increases invoked by the private utilities themselves. The 2008 budget anticipates receipts of $5,408,220 from these various utility tax sources, which is an increase of 6.0% over the prior year budget amount and was determined based upon an analysis of historical and current revenue receipts with adjustments for recently implemented rate increases by the utility companies, as well as the impacts of the removal of the Bonneville Power Administration (BPA) Residential Exchange Credit mid year in 2007 – which increased energy bills for residential electric customers by approximately 9.8%. Business & Occupation Tax The City of Bremerton imposes a local business and occupation tax which applies to the gross income of businesses that engage in business activity within the City. Tax rates vary from 0.125% to 0.2% of gross revenue depending on the classification of business activity. Business & occupation tax is the fourth largest source of revenue in the General Fund. Business & occupation tax revenue projections for 2008 indicate a continued strong growth trend due to economic activity generated from redevelopment of the downtown core, tax compliance auditing and enforcement efforts by the City, citywide construction projects, and increased contractor activity within Puget Sound Naval Shipyard. The anticipated increase from all of these factors is entirely offset by the planned reduction in revenue from the implementation of an increase in the revenue exemption amounts allowed under the Bremerton B&O tax code (increasing from $40,000 to $60,000 - initiated by the City), and more significantly by the State mandated implementation of new allocation/apportionment methodology for determining taxable revenues for City business and occupation taxes. The State Legislature, through EHB2030, has mandated that all B&O tax cities adopt a new allocation/apportionment method for taxing service-based businesses commencing on January 1, 2008. In the case of sales of tangible personal property, the taxable activity is taxed in the location where the delivery to the buyer occurs. Gross income from taxable service activities is apportioned to a location on the basis of a two-factor formula consisting of a payroll and service income factor. This new system of allocation and apportionment is a change from the current methods and is expected to result in a loss of revenue for the City of Bremerton of approximately $350,000 per year. The 2008 budget anticipates receipts of $3,450,000 from B&O taxes, which is unchanged from the 2007 budgeted amount. This anticipated revenue level was determined based upon trend analysis of historical revenue receipts which have had an annual average growth rate of approximately 9% from 2002 through 2006 and as then reduced by anticipated revenue losses from implementation of proposed increased revenue exemptions and implementation of EHB2030 apportionment and allocation changes. ________________________________________________________________________ General Fund Overview ïëé Other Taxes The remaining tax revenues compose a small share of total tax receipts for the City. These other taxes are as follows: Amusement Device Gross Receipts Tax – rate of 2% on gross revenues Admission Tax – rates vary from 2% to 5% of admission price Gambling Taxes (including pulltabs, cardrooms, bingo, raffles, and fundraising) – rates vary from 2% to 20% Leasehold Tax – State tax of 12.84% of which the City is allocated a 4% portion The 2008 budget anticipates receipts of $567,500 from these sources, which is a decrease of 4.0% over the prior year budgeted receipts and was determined based upon trend analysis of historical revenue receipts. In general the tax receipts are increased from the prior year but offset by a reduction in expected interest and penalties collected from business tax enforcement efforts in 2008. Licenses and Permits Bremerton collects license and permit fees that include (among others) annual business licenses, building permits, and franchise fees. The Department of Community Development issues a number of permits for new construction and development including building permits and various building, plumbing, and mechanical inspection permits. These building related fees are dependent on new construction and can be an unstable source of income. Based upon known and estimated projects, the building permit revenue is forecasted to remain strong in 2008. The 2008 budget anticipates receipts of $1,022,900 from various license and permit sources, which is an increase of 1.38% over the prior year and was determined based upon trend analysis of historical revenue receipts with consideration given to known large projects which will be in the permit phase during 2008. Intergovernmental Revenue Intergovernmental revenues are made up of State shared revenues, grants, and other intergovernmental revenues. State-collected revenues that are shared with all cities are allocated to individual jurisdictions on a per capita basis. Population figures, determined annually as of April 1 by the State demographer in the Office of Financial Management, are used as the basis for the per capita distribution of these funds. The City receives liquor excise tax receipts. To be eligible to receive liquor taxes and profits, the City must devote at least two percent of its distribution to support an approved alcoholism or drug addiction program. ________________________________________________________________________ General Fund Overview ïëè The 2008 budget anticipates receipts of $1,083,516 from these sources, which is a decrease of 11.02% over the prior year and was determined based upon approved grant receipts and funding agreements for 2008 and calculations of state shared revenues based upon current estimated per capita allocation amounts as provided by the Municipal Research and Services Center of Washington (MRSC). Charges for Service Plan check fees are charged for checking development drawings, prior to the issuance of building permits. Similar to the trend in building permits, this is expected to continue in a strong manner through 2008 based upon known and projected development activity. Zoning fees are anticipated to decline in 2008 further ramping down from a peak of activity in 2006. The City of Bremerton Parks & Recreation department provides a variety of services for our residents. The fees from these services include all participant and sponsorship fees for City recreation programs. The 2008 estimates are based on program service level estimates, and planned fee rates. Many of the City’s administrative services are provided centrally for the benefit of all departments and funds. These costs are allocated to all the Proprietary funds. The 2008 charges are calculated on the basis of the cost allocation plan. The projected revenue for 2008 is $1,080,150 for general government service, which is a 19.92% increase over the 2007 budgeted amount. Fines & Forfeits The amount received from fines and forfeits includes traffic citations and other fines imposed through enforcement of ordinances. The projected revenue for 2008 is $2,312,000 which is 135.78% greater than the 2007 budgeted amount. The primary driver of this increase is the first full year implementation of the traffic photo enforcement system. The receipts estimated to be provided by this activity is $1,800,000. Expenditures related to this program implementation have also been included in the 2008 budget including the primary outside services contract for operation and billing, a full year of related Police Department staffing increases made mid-year in 2007, and additional labor expense for the Municipal Court to cover anticipated increased administration costs of this new program for the City. ________________________________________________________________________ General Fund Overview ïëç Miscellaneous Revenues Miscellaneous revenues include interest on investments, donations, and other revenues from lease and rental arrangements. The budgeted revenues from these sources in 2008 are $508,605. Other Financing Sources The Other Financing category is composed of transfers in from other funds. Real Estate Excise Tax funds are transferred in from the General Government Capital Improvement Fund to Non-Departmental ($210,000) to provide for Bremerton’s allocation of annual debt service payment on bonds issued by the Kitsap Consolidated Housing Authority to finance the construction of the Norm Dicks Government Center. A transfer in of $335,000 to Non-Departmental from the Police & Fire Pension Fund is provided for in 2008 in order to close out the remaining balance in the previously separately budgeted fund. Transfers in also include net available proceeds from the Parking System after all Parking System obligations have been provided for which is $425,000 in the 2008 budget. In addition a transfer of $25,000 from the Public Access Television (BKAT) Fund is included in the 2008 budget which represents a portion of the cable franchise fees collected that cover administrative costs of the General Fund for the franchise. The most significant transfers in to the General Fund are from the City utility systems for Payments In Lieu of Taxes (PILOT). Prior to 2004 this revenue was displayed in utility taxes along with the Private Utility Taxes, but accounting guidance in GASB 34 now requires that this be shown as a transfer rather than a tax. The PILOT payments for 2008 include $778,684 from Water, $1,108,729 from Wastewater, and $150,988 from the Stormwater systems. Combined, the PILOT is 2.7% higher than the 2007 budgeted amount which is based upon the anticipated utility rate increases for 2008. ________________________________________________________________________ General Fund Overview ïêð EXPENDITURES GENERAL FUND EXPENDITURES ACTUALSPROJECTEDBUDGET 200320042005200620072008 Personnel 16,481,87218,408,385 16,994,418 18,189,582 19,887,093 24,545,261 Supplies & Services 6,208,3046,048,558 6,630,585 7,032,463 8,146,103 9,042,690 Capital Outlay 89,757212,716 57,048 306,675 576,700 573,077 Debt Service 29,754882,319 432,084 431,580 430,441 432,685 Transfers 2,718,631753,837 3,408,529 4,071,721 3,691,340 1,476,630 25,528,31826,305,815 27,522,664 30,032,021 32,731,677 36,070,343 General Fund expenditures have had an annual average increase of 8.6% for the 3 year period spanning 2005 through the projected end of 2007. The budgeted 2008 expenditures represent a 10.2% increase over the projected 2007 expenditures. Included in the 2008 expenditures is a transfer of $500,000 to the Boardwalk Project – a one time transfer utilizing fund balance in excess of the target levels identified by the City’s Financial Goals & Policies for this capital improvement project. With the one time expenditure of $500,000 removed from the calculation, the annual increase in 2008 over the 2007 projected expenditures is 8.7%. The primary driver of General Fund expenditure increases are labor costs – both in wages and benefits. Police and Fire Pensionprogram was previously budgeted for in a separate Trust & Agency Fund (Fund 601) from 2004 through 2007. A review of Generally Accepted Accounting Principles (GAAP) guidance revealed that this fund does not properly qualify as a Trust & Agency Fund due to the “pay as you go” nature of the City’s funding of this obligation. Accordingly, the Police and Fire Pension Fund is being closed in 2008 and established as a separate General Fund budget department. Transfers out to the Pension Fund have been removed from the 2008 budget of Non-Departmental - offsetting the addition of the new Police and Fire Pension department personnel and supplies & services expenditures in the General Fund. The following departmental budgets provide details on objectives, goals, and planned General Fund expenditures for 2008. Conceptual Image of the Evergreen Park Expansion and Bremerton Boardwalk Project ________________________________________________________________________ General Fund Overview ïêï 2008 GENERAL FUND REVENUE RESOURCES 20072008 BudgetBudget BEGINNING FUND BALANCE4,408,1084,449,670 ̸·¿½½±«²¬®»½±®¼¬¸»»¬·³¿¬»¼¿³±«²¬±ºº«²¼¾¿´¿²½»¿¬¬¸»¾»¹·²²·²¹±º ¬¸» §»¿®ô ±® »¨½» ±º º«²¼ ¿»¬ ±ª»® ´·¿¾·´·¬·»ò ß´± µ²±©² ¿ º«²¼ »¯«·¬§ò TAXES22,883,86023,873,941 ̸» º±´´±©·²¹ ¬¿¨» ¿®» ´»ª·»¼ º±® ¬¸» «°°±®¬ ±º ¬¸» Ù»²»®¿´ Ú«²¼æ eal and Personal Property êôëçëôèêðêôèçéôðîï R 못²«»º®±³¬¿¨»±²¿»»¼ª¿´«»±º®»¿´»¬¿¬»ø·²½´«¼·²¹´¿²¼ô ¬®«½¬«®»¿²¼·³°®±ª»³»²¬÷¿²¼±²¿»»¼ª¿´«»±º°»®±²¿´°®±°»®¬§ ø·²½´«¼·²¹·²ª»²¬±®§ôº«®²·¸·²¹¿²¼º·¨¬«®»÷òÚ±®Ý·¬§Ù»²»®¿´Ú«²¼ °«®°±»ô¬¸»´¿©±º¬¸»Í¬¿¬»±ºÉ¿¸·²¹¬±²·³°±»¿´·³·¬±²¬¿¨¬¸¿¬ ½¿²¾»´»ª·»¼ò̸·´·³·¬·¬¸»´»»®±ºüíòêð°»®üïôðð𱺿»»¼ ª¿´«¿¬·±²ô´»´»ª·»¾§¬¸»´·¾®¿®§¼·¬®·½¬¿²¼º·®»¼·¬®·½¬ô±®ïðïû±º ¬¸»¸·¹¸»®¿³±«²¬±º°®±°»®¬§¬¿¨¬¸¿¬½±«´¼¸¿ª»¾»»²´»ª·»¼·²½» ïçèëô ©¸·½¸»ª»® · ´»ò Business & Occuation Tax p íôìëðôðððíôìëðôððð 못²«»º®±³¬¿¨»´»ª·»¼±²°»®±²½±²¼«½¬·²¹¾«·²»©·¬¸·²¬¸» Ý·¬§ ¾¿»¼ ±² »´·¹·¾´» ¹®± ¾«·²» ®»½»·°¬ Local Sales Tax êôêêðôðððéôðìíôððð 못²«»¼·¬®·¾«¬»¼¾§¬¸»Í¬¿¬»º±®¬¸»Ý·¬§ù¸¿®»±º¬¿¨»·³°±»¼ «°±²¬¸»¿´»¿²¼½±²«³°¬·±²±º¹±±¼¿²¼»®ª·½»ò̸»Ý·¬§®»½»·ª» ïû¬¿¨±²¹®±¿´»·²¬¸»Ý·¬§ô´»ïëû¬¸¿¬·¼·¬®·¾«¬»¼¬±¬¸» ݱ«²¬§ò̸»¿³±«²¬¬±¾»½±´´»½¬»¼¿®»«¾¶»½¬¬±º´«½¬«¿¬·±²º®±³ §»¿®¬±§»¿®¼«»¬±½¸¿²¹»·²¬¸»»½±²±³§¿²¼¬¸»¾«§·²¹¸¿¾·¬±º ½±²«³»®ò Sales Tax - Criminal Justice ìèìôðððëðèôîðð 못²«»¼·¬®·¾«¬»¼¾§¬¸»Í¬¿¬»·²¬¸»¿³±«²¬±ºïñïð±ºï°»®½»²¬ ¿¼¼·¬·±²¿´¿´»¬¿¨¿«¬¸±®·¦»¼º±®½®·³·²¿´¶«¬·½»º«²¼·²¹òÌ»²°»®½»²¬ ±º¬¸»°®±½»»¼±ºº¬¸»¬±°¿®»¼·¬®·¾«¬»¼¬±¬¸»Ý±«²¬§¿²¼¬¸» ®»³¿·²·²¹çð°»®½»²¬·¼·¬®·¾«¬»¼¬±¬¸»½±«²¬§¿²¼½·¬·»±²¬¸»¾¿· ±º °±°«´¿¬·±²ò Utility Taxes ëôïðìôðððëôìðèôîîð 못²«»¹»²»®¿¬»¼º®±³¬¿¨»½¸¿®¹»¼¬±¬¸»«¬·´·¬§½±³°¿²·»»®ª·²¹ ¬¸»½·¬§ù½±²«³»®å·ò»ò»´»½¬®·½ô¹¿ô¬»´»°¸±²»ô½¿¾´»¬»´»ª··±²ô ¹¿®¾¿¹»ñ±´·¼ ©¿¬»ò Other Miscellaneous Taxes ëçðôðððëêéôëðð Ê¿®·±« ±¬¸»® ¬¿¨» ©¸·½¸ ·²½´«¼» ¿¼³··±²ô ¹¿³¾´·²¹ ¿²¼ ¿³«»³»²¬ ¼»ª·½»ò ïêî 2008 GENERAL FUND REVENUE RESOURCES 20072008 BudgetBudget LICENSES AND PERMIT1,008,9501,022,900 S Ô·½»²»¿²¼°»®³·¬º»»¿®»¼»·¹²»¼¬±½±ª»®½±¬±º¿¼³·²·¬®¿¬·±²ô ·²°»½¬·±²ô¿²¼½±²¬·²«·²¹»®ª·½»º±®¬¸±»±½½«°¿¬·±²ô¬®¿¼»ô¿²¼ ¿½¬·ª·¬·» ®»¹«´¿¬»¼ ¾§ ¬¸» ½·¬§ò ̸»» ®»ª»²«» ¿®» ½¿¬»¹±®·¦»¼ ¿ º±´´±©æ Business Licenses íîèôêððííçôððð Ô·½»²»·«»¼¬±¿´´¾«·²»»½±²¼«½¬·²¹¾«·²»¿½¬·ª·¬§·²¬¸» Ý·¬§ò ranchise Fees ïïëôðððïîðôððð F Ú®¿²½¸·»º»»¿®»½±´´»½¬»¼º®±³¬¸»Í±´·¼É¿¬»½±³°¿²§»®ª·²¹¬¸» Ý·¬§ò Building Structures and Equipment ìéèôçððëîêôððð ß²«³¾»®±º°»®³·¬¿®»·«»¼¾§¬¸»Ü»°¿®¬³»²¬±ºÝ±³³«²·¬§ Ü»ª»´±°³»²¬òÚ»»¿®»½¸¿®¹»¼º±®¾«·´¼·²¹°»®³·¬ô°´¿²½¸»½µô ª¿®·±« ¾«·´¼·²¹ ·²°»½¬·±²ô °´«³¾·²¹ô ¿²¼ ³»½¸¿²·½¿´ °»®³·¬ò Other Non-Business Licenses and Permits ôëéô èêìðíçðð л®³·¬¿²¼²±²ó¾«·²»´·½»²»·«»¼¾§¬¸»Ý·¬§±ºÞ®»³»®¬±²ò Û¨¿³°´»¿®»¿²·³¿´´·½»²»ô½±²½»¿´»¼©»¿°±²°»®³·¬¿²¼ °»¼¼´»®ñ³±¾·´» ª»²¼·²¹ °»®³·¬ò INTERGOVERNMENTAL REVENUE1,217,6901,083,516 S Ù®¿²¬ô»²¬·¬´»³»²¬ô¸¿®»¼®»ª»²«»ô¿²¼°¿§³»²¬º±®¹±±¼¿²¼»®ª·½» °®±ª·¼»¼¾§±²»¹±ª»®²³»²¬¿´»²¬·¬§¬±¿²±¬¸»®ò̸»³¿¶±®®»ª»²«»±«®½» ¿®» ¿ º±´´±©æ Traffic Safety ïôëððïìôððð epartment of Justice D îðîôèðëêíôéçè COPS MORE Gran ìèôïëðð t Ù®¿²¬º«²¼·²¹®»½»·ª»¼º±®«°¹®¿¼·²¹¬»½¸²±´±¹§½¿°¿¾·´·¬·»·²¬¸» б´·½» Ü»°¿®¬³»²¬ò COPS GRANT - Additional Office r îëôðððîðôððð Other Law Enforcemen t îôðððîôððð School District Security íìôðëîíëôìðð Ú«²¼®»½»·ª»¼º®±³¬¸»Í½¸±±´Ü·¬®·½¬·²«°°±®¬±º¿Î»±«®½»Ñºº·½»® б·¬·±² ¿¬ ¬¸» ´±½¿´ Þ®»³»®¬±² ½¸±±´ò Bremerton Housing Security ïïîôìçíïððôîîî Criminal Justice (Lo Pop) íëôðððíëôððð ͬ¿¬»¼·¬®·¾«¬»¼»¨½·»¬¿¨¾¿»¼±²°±°«´¿¬·±²º±®½®·³·²¿´¶«¬·½» °«®°±»ò ïêí 2008 GENERAL FUND REVENUE RESOURCES 20072008 BudgetBudget Criminal Justice Special Programs îêôëïçîêôéïí ͬ¿¬»¼·¬®·¾¬«¬·±²±²°»®ó½¿°·¬¿¾¿·«»¼¬±«°°±®¬¬¸»º±´´±©·²¹ °®±¹®¿³æײ²±ª¿¬·ª»Ô¿©Û²º±®½»³»²¬Í¬®¿¬»¹§ô߬óηµÝ¸·´¼ñݸ·´¼ ß¾«» λ°±²»ô ¿²¼ ܱ³»¬·½ Ê·±´»²½» λ¼«½¬·±²ñݱ«²»´·²¹ò Criminal Justice - DCTED & OS T ìîôçððð UI - Cities êôðððêôððð D ̸»Ü®«¹Û²º±®½»³»²¬ß¹»²½§øÜÛß÷°®±ª·¼»®»·³¾«®»³»²¬±º ±ª»®¬·³» ½±¬ º±® ÜË× ¿²¼ ²¿®½±¬·½ ´¿© »²º±®½»³»²¬ ¿½¬·ª·¬·»ò Liquor Board Profits îêéôïéðîëíôëíë ͬ¿¬»¼·¬®·¾«¬·±²±º´·½»²»¿²¼°»®³·¬º»»ô°»²¿´¬·»ôº±®º»·¬«®»ô¿²¼ ±¬¸»®·²½±³»¾§¬¸»Í¬¿¬»Ô·¯«±®Ý±²¬®±´Þ±¿®¼¾¿»¼±²°±°«´¿¬·±²ò Ì©± °»®½»²¬ ±º ¬¸» ¬±¬¿´ ®»½»·ª»¼ ³«¬ ¾» °»²¬ ±² ¿´½±¸±´·³ °®±¹®¿³ò Liquor Excise Tax ïëíôííêïêèôíðé ͬ¿¬»¼·¬®·¾«¬»¼¬¿¨»±²´·¯«±®±´¼¿¬¬¿¬»´·¯«±®¬±®»ñ¿¹»²½·»¿²¼ ±²±¬¸»®®»¬¿·´¿´»±º©·²»¾¿»¼±²°±°«´¿¬·±²òÌ©±°»®½»²¬±º¬¸» ¬±¬¿´ ®»½»·ª»¼ ³«¬ ¾» °»²¬ ±² ¿´½±¸±´·³ °®±¹®¿³ò epartment of Health D ðïôìíç Bremerton Housing Authority ëèôíëïêðôïðî п§³»²¬ ¾§ ¬¸» Þ®»³»®¬±² ر«·²¹ ¿«¬¸±®·¬§ ·² ´·»« ±º ¬¿¨»ò Kitsap County - Sales Tax Compensation ðð λ·³¾«®»³»²¬ º®±³ ײ¬»®´±½¿´ ¿¹®»»³»²¬ ¬± ®»°´¿½» ¿ °±®¬·±² ±º ¿´» ¬¿¨ ´±¬ ¼«» ¬± Ô±©» ³±ª·²¹ ±«¬ ±º Þ®»³»®¬±²ò ire Protection Services F îðîôìïìîçéôððð CHARGES FOR GOODS AND SERVICE2,789,1302,907,940 S ݸ¿®¹»ôº»»ô¿²¼½±¬º±®»®ª·½»®»²¼»®»¼ò̸»³¿¶±®®»ª»²«»±«®½»·² ¬¸· ½¿¬»¹±®§ · ¿ º±´´±©æ General Government éîôçððèðôéðð ײ½´«¼»¾·´´·²¹»®ª·½»º»»ô½±«®¬¿¼³·²·¬®¿¬·ª»º»»¿²¼³·½»´´¿²»±« °®·²¬·²¹ô °«¾´·½¿¬·±² ¿²¼ ±¬¸»® ¹»²»®¿´ ¹±ª»®²³»²¬¿´ º»»ò Law Enforcement Services êîôïéðèèôêéð ݸ¿®¹»º±®Ð±´·½»Ñºº·½»®©±®µ·²¹±ººó¼«¬§·²¿»½«®·¬§¶±¾ ®»·³¾«®»¼¾§¬¸»½±³°¿²§²»»¼·²¹¬¸»»½«®·¬§åº·²¹»®°®·²¬·²¹ô®»½±®¼ »¿®½¸ô ¿²¼ ¼±³»¬·½ ª·±´»²½» º·´·²¹ò ïêì 2008 GENERAL FUND REVENUE RESOURCES 20072008 BudgetBudget robation Fees îïðôðððîîëôððð P ݸ¿®¹»·³°±»¼«°±²¿¼«´¬©¸±¸¿ª»¾»»²¿·¹²»¼¬±°®±¾¿¬·±²¾§ ¬¸» ³«²·½·°¿´ ½±«®¬ ¶«¼¹»ò Home Detention Fees îëôðððíðôððð Ú»»½±´´»½¬»¼¬¸®±«¹¸³«²·½·°¿´º±®¼»º»²¼¿²¬ù°¿®¬·½·°¿¬·±²·²¬¸» ¸±³» ¼»¬»²¬·±² ¿´¬»®²¿¬·ª» »²¬»²½·²¹ °®±¹®¿³ò ALS Transport Fees êîêôèîðëççôèîð Ú»» ½¿®¹»§ ¬» Ú®»ÛÓ±® ¿³«¿²½» ¬®¿²°±®¬ »®ª½»ò ¸¼¾¸·ñͺ¾´· Criminal Court Filing Fees ïéôëððïðôêðð Cemetery Fees ïéôðððïëôððð Ú»» ½¸¿®¹»¼ ¾§ ¬¸» п®µ Ü»°¿®¬³»²¬ º±® ת§ Ù®»»² ½»³»¬»®§ »®ª·½» Zoning Fees êêôëððïîíôèðð lan Checking Fees íððôðððîëðôððð P ool/Park Activity Charges ìèôèððìèôèðð P Ì»»»»²½«» °®±¹®¿³ »»±® ¬» п®¯«¿¬½ °®±¹®¿³ò ¸º·´¼ºº¸µñß· ecreation Fees íêèôîëðíêèôîëð R Ì»»»»²½«» °®±¹®¿³ »»±® ¬» п®Î»½ °®±¹®¿³ ¸º·´¼ºº¸µñò Interfund General Government ïôðèðôïëðçððôêçð ß´´±½¿¬·±²±º½±¬±º»®ª·½»°®±ª·¼»¼¾§¬¸»Ù»²»®¿´Ú«²¼¬±±¬¸»®Ý·¬§ ¼»°¿®¬³»²¬ ¿²¼ñ±® ±«¬·¼» ¿¹»²½·»ò Other Miscellaneous Fees ïîôèëðìéôèðð Ó·²±®º»»º±®»ª»²¬¿¼³··±²ô±¬¸»®½«´¬«®»¿²¼®»½®»¿¬·±²ô¬»´»°¸±²» §¬»³ «» º»»ò FINES AND FORFEIT980,5602,312,000 S Ú·²»º±®¬¸»½±³³··±²±º³«²·½·°¿´±ºº»²»¿²¼ª·±´¿¬·±²±º´¿©º«´®«´» ¿²¼®»¹«´¿¬·±²ô¿²¼¿³±«²¬½±²º·½¿¬»¼º±®¼»°±·¬¸»´¼·²¬¸»º±®³±º ¹«¿®¿²¬»»ò Municial Court p ̸»º±´´±©·²¹¿®»º·²»½±´´»½¬»¼¬¸±«¹¸±«®Ó«²·½·°¿´Ý±«®¬º±® °¿§³»²¬ ±º º·²»ô º±®º»·¬«®»ô º»»ô ½±¬ ¿²¼ °»²¿´¬·» ¿±½·¿¬»¼ ©·¬¸ ¬¸» »²º±®½»³»²¬ ±º ´±½¿´ ±®¼·²¿²½»æ Ì®¿ºº·½ ײº®¿½¬·±²íèðôððð íèðôððð Ѭ¸»® Ò±²óÌ®¿ºº·½ ײº®¿½¬·±²íêôððð íêôððð 豬± Û²º±®½»³»²¬ л²¿´¬·»ìèêôîêð ïôèððôððð ÜË× Ð»²¿´¬·»êôððð êôððð Ѭ¸»® Ý®·³·²¿´ Ì®¿ºº·½íïôððð ìçôððð ïêë 2008 GENERAL FUND REVENUE RESOURCES 20072008 BudgetBudget alse Alarm Fees ïïôðððïêôððð F Ú·²»¿²¼º»»½±´´»½¬»¼º±®°«¾´·½¿º»¬§¼»°¿®¬³»²¬ù®»°±²»¬±¿º¿´» ¿´¿®³ ·¬«¿¬·±²ò Other Fines and Forfeits íðôðððîëôíðð MISCELLANEOUS REVENU373,442508,605 E Ѭ¸»® ®»ª»²«» ®»½»·ª»¼ º®±³ ª¿®·±« ±«®½» ²±¬ ½´¿·º·»¼ ·² ¬¸» °®»ª·±«´§ ´·¬»¼ ½¿¬»¹±®·»ò Investment Interest and Interest on Receivables îíðôðððïëëôððð ײ¬»®»¬ »¿®²»¼ ±² ¬¸» ·²ª»¬³»²¬ ±º ·¼´» ½¿¸ ¾¿´¿²½» ¬¸®±«¹¸ ·²ª»¬³»²¬ ±º °«¾´·½ º«²¼ô ¿ ¿´´±©»¼ ¾§ ´¿©ò ̸» ¿³±«²¬ ®»½»·ª»¼ ©·´´ ª¿®§ ©·¬¸ ·²¬»®»¬ ®¿¬» ¿²¼ ¬¸» ¿³±«²¬ ±º ½¿¸ ¿ª¿·´¿¾´» º±® ·²ª»¬³»²¬ ¼«®·²¹ ¿ °¿®¬·½«´¿® ¾«¼¹»¬ §»¿®ò acilities Rentals and Leases ïçðôïðëïîëôïðð F Contributions & Donations ðéôèìî ß³±«²¬ ®»½»·ª»¼ º®±³ ±«¬·¼» ¿¹»²½·» ±® ½±³³«²·¬§ ³»³¾»® º±® ¬¸» «°°±®¬ ±º Ý·¬§ °»½·º·½ º«²½¬·±² ±® ±°»®¿¬·±²ò Other Miscellaneous Revenue èèôëððèëôëðð OTHER FINANCING SOURCE3,199,2393,033,401 S Non-TaxableSaleof Asset Transfers from Other Funds ééèôêèìéêêôìïî п§³»²¬ ·² Ô·»« ±º Ì¿¨» øÐ×ÔÑÌ÷ ó É¿¬»® ˬ·´·¬§ ïôïðèôéîçïôðéïôîêè п§³»²¬ ·² Ô·»« ±º Ì¿¨» øÐ×ÔÑÌ÷ ó É¿¬»©¿¬»® ˬ·´·¬§ ïëðôçèèïìêôéëç п§³»²¬ ·² Ô»·« ±º Ì¿¨» øÐ×ÔÑÌ÷ ó ͬ±®³©¿¬»® ˬ·´·¬§ ìîëôðððëðëôððð п®µ·²¹ Ú«²¼ ëèôðððð ݱ³³«²·¬§ Ü»ª»´±°³»²¬ Þ´±½µ Ù®¿²¬ ëðôðððð б´·½» Í°»½·¿´ Ю±¶»½¬ îðôðððîëôððð Þ®»³»®¬±² Õ·¬¿° ß½½» Ì»´»ª··±² ðííëôððð б´·½» Ú·®» ú л²·±² ëëêôèððîïðôððð Ù»²»®¿´ Ù±ª Ý¿°·¬¿´ ׳°®±ª»³»²¬ îëôðððð Ý·ª·½ ׳°®±ª»³»²¬ TOTAL GENERAL FUND REVENUE$ 39,191,97336,860,979$ S ïêê 2008 GENERAL FUND REVENUES BY SOURCE 200620072008 ACCOUNTACTUALBUDGETBUDGET% CHANGE TAXES 311.1000General Property Tax6,436,7096,595,8606,897,021 4.57% 311.2000County Road Tax141 311.3000Sale of Tax Title Property36 313.1000Retail Sales & Use6,671,9686,660,0007,043,000 5.75% 313.7100Sales Tax - Criminal Justice485,800484,000508,200 5.00% 316.1000B & O Taxes3,183,9593,450,0003,450,000 0.00% 316.2000Admission Taxes20,55415,00022,500 50.00% 316.4100Electric Utility Taxes1,410,7901,414,0001,597,820 13.00% 316.4300Gas Utility Taxes951,9491,145,0001,200,000 4.80% 316.4500Garbage/Solid Waste476,226520,000530,400 2.00% 316.4600Television Cable Taxes486,684525,000550,000 4.76% 316.4700Telephone Taxes1,379,2091,500,0001,530,000 2.00% 317.2000Leasehold Excise Tax43,56230,00050,000 66.67% 317.5000Gambling/Amusement323,615370,000375,000 1.35% 319.6000Business Taxes Penalty56,870175,000120,000 -31.43% TOTAL TAXES21,928,07122,883,86023,873,9414.33% LICENSES & PERMIT S 321.0000Business Licenses/Permits415,574443,600459,000 3.47% 322.1000Construction Permits519,455478,900471,000 -1.65% 322.3000Animal Licenses24,79426,00025,000 -3.85% 322.4000Right Of Way Permits64,93845,00055,000 22.22% 322.8000Non-Business License Penalty9050-100.00% 322.9000Other Non-Business Licenses2,7373,4002,900 -14.71% 329.0000Interfund Licenses16,05412,00010,000 -16.67% TOTAL LICENSES & PERMITS1,043,6421,008,9501,022,9001.38% INTERGOVERNMENTAL REVENU E 331.0000Federal Grants - Direct178,740275,95583,798 -69.63% 333.0000Federal Grants - Indirect7,414 334.0000State Grants101,51144,40015,439 -65.23% 335.0231Reforestation Harvest Tax9,148 335.0233State Timber Sales(11,471) 336.0620Criminal Justice High Crime56,754 336.0621Law & Justice (LO POP)35,11035,00035,000 0.00% 336.0626Criminal Justice - Special Programs27,32726,51926,713 0.73% 336.0651DUI - Cities5,9806,0006,000 0.00% 336.0652Fire Insurance Premium 42,000 100.00% 336.0694Liquor Excise Tax158,023153,336168,307 9.76% 336.0695Liquor Board Profits235,077267,170253,535 -5.10% 337.0700Bremerton Housing Authority72,77158,35160,102 3.00% 337.0801Kitsap County16,921 338.2100Bremerton Housing Security107,550112,493100,222 -10.91% 338.2130Brem. School Dist Security26,51234,05235,400 3.96% 338.2140Other Law Enforcement Services1,0742,0002,000 0.00% 338.2200Fire Protection Service13,655202,414255,000 25.98% TOTAL INTERGOVERNMENTAL REVENUE1,042,0971,217,6901,083,516-11.02% ïêé 2008 GENERAL FUND REVENUES BY SOURCE 200620072008 ACCOUNTACTUALBUDGETBUDGET% CHANGE CHARGES FOR SERVIC E 341.0000General Government84,81280,70072,900 -9.67% 342.1000Law Enforcement Services63,61388,67062,170 -29.89% 342.2000Fire Protection Services1,10018,350-100.00% 342.3300Probation Fees246,074225,000210,000 -6.67% 342.3600Home Detention Fees26,01030,00025,000 -16.67% 342.4000Inspection Fees3,6983,6002,000 -44.44% 342.5000Emergency Service Fee3,6884,0004,000 0.00% 342.6000ALS Transport Fees576,200599,820626,820 4.50% 342.9000Criminal Court Filing Fees11,97910,60017,500 65.09% 343.2000Engineering Fees/Charges1,122200500 150.00% 343.6000Cemetery Fees13,20915,00017,000 13.33% 345.8100Zoning Fees321,955123,80066,500 -46.28% 345.8300Plan Check Fees228,346250,000300,000 20.00% 347.3000Pool/Park Rentals62,82848,80048,800 0.00% 347.4000Event Admission Fee11,3056,3506,350 0.00% 347.6000Recreation Fees348,438368,250368,250 0.00% 347.9000Other Culture & Recreation5882,200-100.00% 349.1000Interfund General Government930,832900,6901,080,150 19.92% 349.7600Interfund Recreation Services50,00013,100-100.00% TOTAL SERVICE CHARGES2,985,7972,789,1302,907,9404.26% FINES & FORFEITURE S 351.9100Other Court Penalties73 352.3000Proof of Insurance6,3566,0006,000 0.00% 353.0000Non-Parking Infractions359,990380,000380,000 0.00% 354.0000Photo Enforcement Penalties486,2601,800,000 270.17% 355.0000Criminal Traffic Misdemeanor33,97331,00049,000 58.06% 356.0000Non-Traffic Misdemeanors37,28336,00036,000 0.00% 357.3000Court/Public Defender Recoupment29,00425,30030,000 18.58% 359.0000Non-Court Fines16,77016,00011,000 -31.25% TOTAL FINES & FORFEITURES483,449980,5602,312,000135.78% MISCELLANEOUS REVENUES 361.0000Interest Earnings170,875155,000230,000 48.39% 362.0000Rents & Royalties138,912125,100144,025 15.13% 366.2000Interfund Rents46,080 100.00% 366.9000Other Interfund Revenues26,043 367.0000Contributions & Donations7,842-100.00% 369.0000Other Miscellaneous Revenue109,39585,50088,500 3.51% TOTAL MISCELLANEOUS REVENUES445,225373,442508,60536.19% OTHER FINANCING SOURCES 395.0000Sale of Assets549 397.0000Operating Transfers-In1,064,3721,214,800995,000 -18.09% 397.0401Transfer From Water - PILOT698,801766,412778,684 1.60% 397.0451Transfer From Waste - PILOT1,043,6471,071,2681,108,729 3.50% 397.0481Transfer From Storm - PILOT145,739146,759150,988 2.88% TOTAL OTHER FINANCING2,953,1093,199,2393,033,401-5.18% TOTAL GENERAL FUND REVENUE$ 32,452,87130,881,390$ 34,742,303$ 7.05% S ïêè 2008 General Fund Sources of Revenue Fines & Forfeits Miscellaneous $2,312,000 Revenues Charges for 6% $508,605 Services 1% Other Financing $2,907,940 Sources 7% $3,033,401 8% Intergovernment $925,276 3% Beginning Fund Balance $4,449,670 11% Licenses & Permits $1,022,900 3% Taxes $23,873,941 61% 2006 Actual2007 Budget2008 Budget Taxes 21,928,07122,883,86023,873,941 Licenses & Permits 1,043,6421,008,9501,022,900 Intergovernmental 1,042,0971,217,6901,083,516 Charges for Services 2,985,7972,789,1302,907,940 Fines & Forfeits 483,449980,5602,312,000 Miscellaneous Revenues 445,225373,442508,605 Other Financing Sources 2,953,1093,199,2393,033,401 Sub-Total30,881,39032,452,87134,742,303 Beginning Fund Balance 3,541,2654,408,1084,449,670 Total Revenue34,422,65536,860,97939,191,973 ïêç 2008 General Fund Tax Revenue Utility $5,408,220 23% B & O Other Taxes $3,450,000 $1,075,700 14% 5% Property $6,897,021 Sales 29% $7,043,000 29% 2006 Actual2007 Budget2008 Budget Property Tax 6,436,7096,595,8606,897,021 Sales Tax 6,671,9686,660,0007,043,000 B & O Tax 3,183,9593,450,0003,450,000 Utility Taxes 4,704,8585,104,0005,408,220 Other Taxes 930,5771,074,0001,075,700 Total Taxes21,928,07122,883,86023,873,941 ïéð 2008 General Fund - Expenditures By Category Debt Service $432,685 Transfers Capital Outlay 1% $573,077$1,476,630 4% 1% Ending Fund Balance $3,121,630 Supplies & 8% Services $9,042,690 23% Personnel $24,545,261 63% 2006 Actual2007 Budget2008 Budget Personnel 18,189,58220,485,15824,545,261 Supplies & Services 7,032,4638,251,5879,042,690 Capital Outlay 306,675551,500573,077 Debt Service 431,580430,441432,685 Transfers 4,071,7213,691,3401,476,630 Sub-Total30,032,02033,410,02636,070,343 Ending Fund Balance 4,408,1083,450,9533,121,630 Total Expenditures34,440,12836,860,97939,191,973 ïéï 2008 General Fund - Expenditures By Service Culture and Mental and Recreation Debt Service Physical Health 3,320,382 432,685 77,500 Economic 9.2% 1.2% 0.2% Environment Transfers Out 1,468,432 1,476,630 4.1% 4.1% Transportation 639,478 Capital Outlay 1.8% 573,077 1.6% Utilities & Environment General 220,928 Government 0.6% 7,070,093 19.6% Public Safety 20,791,138 57.6% 2006 Actual2007 Budget2008 Budget General Government 5,065,6206,206,2217,070,093 Public Safety 15,448,71517,001,02320,791,138 Utilities & Environment 205,012214,865220,928 Transportation 446,845567,486639,478 Economic Environment 1,127,6691,392,8701,468,432 Mental and Physical Health 71,28574,35277,500 Culture and Recreation 2,856,8993,273,7283,320,382 Debt Service 431,580430,441432,685 Transfers Out 4,071,7213,691,3401,476,630 Capital Outlay 306,675557,700573,077 Total Expenditures Excluding Ending Fund Balances 30,032,02033,410,02636,070,343 ïéî CITY COUNCIL General Fund Mission Statement: The City Council is the City of Bremerton’s legislative body and as such is responsible for the development and adoption of all City legislative policies and approval of all appropriations. In addition to those duties specified in the Charter of the City of Bremerton, Council Members serve on various committees to develop, review and oversee the enforcement of policies and procedures related to the City. Function Description: The powers and duties of the City Council are to organize and regulate the City’s internal affairs; define the functions, powers and duties of City employees; fix compensation and working conditions of City employees, establish/maintain civil service/merit systems and retirement/pension system; exercise powers in regard to all aspects of collective bargaining; adopt and enforce ordinances relating to and regulating local or municipal affairs and appropriate to the good government of the City; exercise all powers for the City, including acquisition, sale, ownership, maintenance, protection, restoration, use, leasing, disposition, vacations, abandonment, beautification of public ways, real estate of all kinds, structures, water ways, or other improvements or use of real or personal property; provide for rendering of local social, cultural, recreational, educational, governmental, or corporate services including the operating and supplying of utilities and municipal services; powers of eminent domain, borrowing, taxing, and the granting of franchises; and other duties. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel221,866248,708264,230278,236 Supplies, Services & Taxes 21,33526,30530,08033,544 Capital Expenditures 4,6770 Debt Service 0000 Transfers 0000 TOTAL 247,878275,013294,310311,780 Staffing Level 10.8010.8010.8010.80 Budget and Program Highlights: •The ongoing objective of the City Council is to perform the legislative functions of the City in the most efficient manner possible. •The City Council develops and maintains knowledge of City operations and current and planned projects by conducting study sessions, committee meetings and individual consultations with City staff. •City councilmembers represent the City as Members of boards and committees that facilitate coordination between the City and other governmental and community organizations. •The City Council provides for the continuing education and professional growth of councilmembers via training and attendance at meetings and events which provide opportunities for interaction with public officials and staff Members from other jurisdictions. Departmental Initiatives: GOAL OR Measurement DEPARTMENTAL GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Provide adequate revenues for Develop a plan for sustainable Availability of funding core City services and Long term funding source 2007 funding of City streets and parks secured infrastructure ïéí 2009-2013 Budgetary Considerations: There are no significant changes to funding requirements anticipated in the short-term horizon (2009-2013). ïéì EXECUTIVE DEPARTMENT General Fund Mission Statement: Provide administrative direction and leadership to ensure the delivery of quality services as required by law or mandated by the public to enhance the health, safety and general well-being of the citizens of the City of Bremerton. Function Description: The Executive Department function is to coordinate and direct the overall administration of all City departments. The Executive Department is directed by the Mayor who is the administrative head of the City government. The responsibilities include: administrating programs and policies established by the City Council; direction and coordinating departmental operations; informing the Council on City affairs, problems and future needs; reviewing policies and regulations involving municipal governmental management overseeing the preparation of the City’s annual budget and all major projects; providing assistance in responding to citizen requests developing and promoting employee morale; and performing all other duties for the effective operation of the City of Bremerton. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel181,841191,956223,468241,730 Supplies, Services & Taxes 77,26474,388145,390104,967 Capital Expenditures 00 Debt Service 0000 Transfers 0000 TOTAL 259,105266,344368,858346,697 Staffing Level 2.002.002.002.00 Budget and Program Highlights: The ongoing objectives of the Executive Department include: •Overall management of all City functions and services •Implementing Council policies and directives •Providing Intergovernmental coordination •City representation •Liaison between Council and staff •Budget preparation and implementation •Regular and special reports •Coordinating the activities of various departments •Providing the guidance and support for the development of effective programs •Providing the planning, evaluation, analysis, control, and general management of the programs •Oversee marketing of the City •Coordinate the Sister City Program Recent Accomplishments and 2007 Initiative Status Recaps: • Established and funded a Neighborhood Enhancement Project • Completed a comprehensive citizen outreach program •Instituted our citizen E-News program ïéë • Developed the Neighborhoods Now plan to revitalize Bremerton neighborhoods • Secured $5 million from the State capital budget Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Enticing New Development and Retaining Existing Businesses, With a Focus on the Downtown Regional Center InitiativeOutcome Work with Kitsap Transit to Provide a business friendly Increase Park and Ride Commute Availability of Service Availability of Service 2008 environment Options to Downtown Businesses InitiativeOutcome Develop a Plan and Recommend Provide a Proactive Effort to Staffing Levels for On-going Market Existing and Future Completion of a Staffing Council Approval of Economic Development Functions 2008 Bremerton Business Properties and Work Plan Recommended Changes and Public Outreach and and Activities Communications for the City Support Transportation, with Seamless, Efficient, and Varied Choices InitiativeOutcome Work with Kitsap Transit to Additional More Efficient Develop Passenger Only Ferry Transportation Option for Availability of Service Availability of Service 2009 Service to Seattle Citizens 2009-2013 Budgetary Considerations: Nothing out of the ordinary is anticipated in the future budget periods of 2009-2013. ïéê DEPARTMENT OF FINANCIAL SERVICES General Fund Mission Statement: The Department of Financial Services strives to provide efficient and cost effective centralized services and support to all City departments and to assist in improving the productivity and performance of City operations. The Department shall seek to protect and maintain the fiscal integrity and financial solvency of the City government through development and implementation of fiscally and operationally sound budgets, policies and procedures. Function Description: The Department of Financial Services is comprised of the Finance Division, City Clerk, Human Resources, Public Access Television (BKAT) and Risk Management. The operating budget for Human Resources is presented as a separate department within the General Fund. The operating budgets for BKAT and Risk Management are not contained in the General Fund but in separate dedicated funds. The Finance Division provides service support for both external users and internal users by providing information to facilitate the decision-making process. The department’s major program responsibilities include: budgeting, accounting, reporting, treasury management, revenue collection and payment services in the areas of purchasing and accounts payable. The City Clerk Division is responsible for official city records, public information disclosure, records and contract management, and serves as City Council Liaison. The City Clerk also provides for the planning, funding and management of the City’s parking system and serves as the Secretary of the City’s LEOFF pension boards. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel791,005857,588893,918950,400 Supplies, Services & Taxes 211,821343,523496,599387,676 Capital Expenditures 00 Debt Service 0000 Transfers 0000 TOTAL 1,002,826 1,201,111 1,390,517 1,338,076 Staffing Level 12.0012.0011.0011.38 Budget and Program Highlights: •The Financial Services Department provides support to the core functions of the City. In FY 2008, the Financial Services Department’s operations will continue to be staffed with the Financial Services Director, City Clerk, Office Assistant Senior Specialist, Budget Analyst, Finance Officer, Asst. Finance Officer, (4) Accounting Assistant Senior and (1) Customer Service Representative. •In addition to day to day operations, the objectives for 2008 include: •Continuation of an audit program to identify and collect previously unidentified revenues in the areas of Business and Occupation Tax and Utility Excise Tax. The potential collection of past taxes due is anticipated to exceed the cost of the audit program. •Completion of training efforts on procurement policies for City employees. This was begun in late 2007 and will be completed no later than first quarter 2008. •Expand City departments’ archiving/imaging programs to include web based presentation and implementation of state certification of permanent records. This will decrease on and off site storage requirements. ïéé •Prepare an application andinitiate required resolutions for State LIFT (Local Infrastructure Finance Tool) Project Designation for the City of Bremerton. LIFT Project Designation would potentially provide an additional financing tool for the City’s redevelopment efforts. Recent Accomplishments and 2007 Initiative Status Recaps: • Successfully concluded the issuance of water and sewer refunding and revenue bonds in the principal amount of $5.375 million. The new money portion of the bond issue provides funds for the Southwest Bremerton sewer line extension. • Reviewed and recommended updates to the City Financial Goals & Policies. City Council approved the recommended changes by Resolution No. 3034 on August 15, 2007. th • Financial system upgrade was completed early in 2007 - going live on February 9. • Reviewed and recommended updates to the City’s Investment Policies. City Council approved the recommended changes by Ordinance No. 5024 and Resolution No. 3035 on October 3, 2007. • In cooperation with the City’s Legal and Information Technology Departments, provided training on public records and electronic records retention to City employees. • Annual goals and objectives for annual operating budget - demonstrating compliance with adopted financial goals and policies were all met with the exception of the ending cash/investment balance for Gold Mountain which was below the target level. The following are the measurable results for the 2007 budget: •The Utility System debt service coverage on a combined utility basis was 2.0x which meets and exceeds the target level of 1.5x. •The ending cash & investment balance in the General Fund was 8.6% of total planned operating expenses (excludes capital) which meets and exceeds the target level of 8.5%. •The ending cash & investment balance for the Water, Wastewater & Stormwater Utilities were 36.3%, 13.2% and 12.2%, respectively, of total planned operating expenses (excludes capital) which meets and exceed the target level of 12%. •The ending cash & investment balance of Gold Mountain Golf was 11% of total planned operating expenses (excludes capital) which is below the target level of 12%. Changes have been implemented with the execution of new management contracts which are anticipated to continue to improve the operating performance of the golf course. •The Contingency Reserve Fund is budgeted to end the 2007 year with a balance of $1,030,722 which meets and exceeds the prior minimum fund level of $500,000 as well as the recently updated minimum fund level of $1,000,000. Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Enticing New Development and Retaining Existing Businesses, With a Focus on the Downtown Regional Center InitiativeOutcome Conduct a review of progress Application of appropriate tax made on B&O Tax revisions Report completion and Council approval of strategies to attract and retain 2009 initiated in 2007 and recommend presentation to Council recommended changes business further actions – next steps Efficient, Accountable and Financially Responsible City Governance InitiativeOutcome Assure growth related costs are Review and recommend property shared with Report completion and Council approval of 2007 implementation of impact fees developments creating City presentation to Council recommended changes growth. ïéè InitiativeOutcome Minimum debt service coverage of the combined Numerical Value Annual utility systems of at least 1.5% Ending cash and investment balance in the General Fund of no less Numerical Value Annual Annual operating budget that than 8.5% of total planned demonstrates compliance with operating expenses Protect the financial health and adopted Financial Goals and Ending cash and stability of the City Policies investment balances of no less than 12% of total planned operating Numerical Value Annual expenses for Gold Mountain Golf, Water, Wastewater and Stormwater Utilities Balance of at least $1,000,000in the Numerical Value Annual Contingency Reserve Fund InitiativeOutcome Seek State LIFT (Local Infrastructure Finance Tool) Increase financing tools to fund Application to State for Submittal of 2008 project designation for the City of City redevelopment efforts project designation Application Bremerton Departmental Initiatives: GOAL OR Measurement DEPARTMENTAL GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Provide Training on Purchasing Ensure effective initiation of the Purchases of goods and Policy bid process, contract services follow City Completion of Training 2007 completion, and accounting policy InitiativeOutcome Review and Update Accurate, concise, and easily Revised and updated Administrative Policies & accessible guidance on City Approval of Updates 2009 policies and procedures Procedures Manual policies and procedures 2009-2013 Budgetary Considerations: Other than normal cost of living increases and changes of ongoing projects, there are no significant changes to funding requirements anticipated in future years. Expansion of City departments’ archiving/imaging programs to include web based presentation and implementation of state certification of permanent records are likely to take several years of concerted effort to accomplish. However this work will meet the state certification requirements while physically decreasing on and off site storage of records. This is anticipated to provide efficiency and cost benefits in the future. ïéç CITY ATTORNEY'S OFFICE General Fund Mission Statement and Function Description: The mission and function of the City Attorney's Office is to provide quality legal services for the City of Bremerton, including but not limited to: the oversight of the prosecution of all criminal violations of the Bremerton Municipal Code, the limitation and reduction of liability exposures, and to provide legal advice to the Mayor, City Council, and all departments of the City. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel283,155346,234411,140443,578 Supplies, Services & Taxes 269,108214,527280,671233,522 Capital Expenditures 0000 Debt Service 0000 Transfers 0000 TOTAL 552,263560,761691,811677,100 Staffing Level 3.003.503.753.775 Budget and Program Highlights: The Charter and Bremerton Municipal Code direct that the City Attorney shall be the legal advisor of the City and represent the City in all legal matters involving the City including, but not limited to: •Serve as legal counsel to the City Council and Mayor and advise department heads, employees, advisory bodies, committees, and commissions on the interpretation of state, local and federal law. •Represent the City in civil litigation and administrative proceedings in which the City is either a plaintiff or defendant. •Administer all legal services as required for the City, managing and coordinating all civil litigation matters, and representing the City’s legal position in judicial and administrative forums. •Oversee the policy direction of the Kitsap County Prosecutor’s Office in the execution of its contract with the City to provide misdemeanor prosecutions for violations of the City Criminal Code. •Approve contracts and Council Agenda Bills, and provide representation at all Council Meetings. •Provide legal support and guidance on City actions and general policy development considerations of City officials. •Draft and review City Codes, ordinances, contracts, agreements, easements, deeds, and other legal documents. Recent Accomplishments: •Coordination of various real property transactions including: forest land purchase from McCormick Land Company, acquisition of the Plumber’s Union property for Evergreen Park expansion, acquisition of Burwell parking lot, sale of the Capital Hill Fire Station, Warren Avenue Tennis Courts, Sheldon Avenue lots and West Precinct Building, and disposal of excess property relating to the SR 304 improvement •Negotiated and drafted new golf management service agreement, food and beverage agreement and lease •Participated in Leadership Kitsap •Organized and conducted continuing legal education seminar on diversity •Successful litigation program ïèð Departmental Initiatives: GOAL OR Measurement DEPARTMENTAL GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Updated and new Provide legal support for City Draft and review all new Council and Mayor ordinances and policies Ongoing Strategic Priorities legislationapproval adopted and implemented InitiativeOutcome Effective, Efficient Limit/reduce liability Project Legal Representation Ongoing representation of the City exposureaccomplishment InitiativeOutcome Maintain a comprehensive Cost efficient and effective Limit/reduce liability Project Ongoing litigation program litigation program exposureaccomplishment InitiativeOutcome Make recommended Initiate a comprehensive review of Enhance prosecution activities Improved prosecution changes to existing 2008 the City’s prosecution program as appropriate services program 2009-2013 Budgetary Considerations: Generally, the City Attorney's Office future budgetary considerations are minimal. Aside from the unpredictability of outside legal counsel needs and a significant change in City programs, future budgetary forecasts can rely on inflation and the CPI for general increases. Outside counsel costs can only be predicted on a historical basis and with due consideration for the then active lawsuits and claims. This budget item can be fluid based on the level of litigation activity. Additionally, staffing needs should be reviewed annually to ensure appropriate service to City Council, the Mayor and City Departments and to comply with the duties of the City Attorney's Office. ïèï HUMAN RESOURCES General Fund Mission Statement: To provide consistent and timely guidance and direction to management and employees in all Human Resources functions including recruitment, selection, orientation, development and training, labor relations, and to ensure compliance with established policies and procedures, labor contracts and employment laws. Function Description: The Human Resources (HR) Division provides administrative and personnel services to all departments of the City and acts as a conduit between employees and management. This is accomplished by monitoring compliance with established policies and procedures, labor contracts, employment laws, and by managing the City’s “human resources” to meet the City’s established goals and objectives. HR is responsible for providing support to employees and management by performing the centralized functions of recruitment, selection, orientation, benefits enrollment and administration, development and training, and labor and employee relations, including contract negotiations and administration. HR also serves as a resource in assisting administrative and managerial personnel in managing, motivating, and disciplining employees effectively, and assuring compliance with all legal requirements such as the Civil Service Code through the Civil Service Officer and Civil Service Commission, Bremerton Municipal Code, RCW, Equal Employment Opportunity, Fair Labor Standards, ADA, FMLA, and Collective Bargaining Laws. Human Resources is also responsible for payroll payment processing and administration. With salaries and benefits comprising approximately 65% of the City’s budget, effective management of the “human resource” function is critical. Therefore, HR’s primary goal is to design, evaluate, refine and implement legally sound HR policies and procedures that will support organizational goals and fulfill the City’s workplace needs as economic conditions continue to change. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel239,004259,889352,125373,852 Supplies, Services & Taxes 69,91089,250117,715120,326 Capital Expenditures 0000 Debt Service 0000 Transfers 0000 TOTAL 308,914349,140469,840494,178 Staffing Level 3.003.004.004.00 Budget and Program Highlights: Employment and Recruiting - Recruitment, testing, interviews, etc. Training and Development - Orientation, general employee/supervisory training, performance appraisal program, Sexual Harassment Awareness and Prevention, etc. Compensation - Wage and salary administration, job descriptions, job evaluation and analysis, payroll interface, salary surveys Benefits-Leave policies and administration, insurance benefits administration, pension and deferred comp administration, unemployment appeals Employee/Departmental Services - Employee benefits/status changes, problem troubleshooting for departments, counseling, pre-retirement planning ïèî Employee and Organizational Relations - Disciplinary procedures oversight, exit interviews, union/labor relations including negotiation of contracts and contract administration/interpretation, oversee grievance/arbitration issues, employee communications, EEO and labor law compliance at the Federal, State and local level Payroll -Process payroll for all departments including vendor payments for benefits, deductions, W-2 processing, etc. Personnel/HR Records - Personnel/HR recordkeeping, hiring/promotion/transfer/separation processing, evaluations, COLAS, step and longevity increase tracking/processing, deferred comp administration/tracking, payroll deduction paperwork, etc. Health and Safety - Pre-employment physical and drug testing, return to work (Fitness for Duty) coordination with Risk Management, random drug testing administration for CDL license holders, FMLA administration/tracking, and COBRA administration/tracking Strategic Planning - HR forecasting/planning, succession planning Recent Accomplishments: •Expanded wellness program to include special “walks”, cholesterol/blood glucose screening and blood pressure kits for each building •Updated payroll process city-wide and initiated electronic timesheets program •Provided four (4) modules of Leadership Training for Management/Professional employees st •Planned and coordinated the 1 Employee Recognition Award Breakfast •Provided all employees with detailed year-end wages/benefits statements •Provided Diversity Training for all City employees/City Council Departmental Initiatives: GOAL OR Measurement DEPARTMENTAL GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Labor negotiations with all four Contracts ratified by the To complete substantially Progress made during 2008 (4) bargaining units bargaining units/City in 2008 negotiations InitiativeOutcome Expanded Employee Orientation Improved skills and knowledge Revised and updated Program 2008 Programin employees programimplementation InitiativeOutcome Training for all Public Improved skills and knowledge Supervisory Training Program Works/Parks & Recreation Training completed 2008 in employees supervisory personnel InitiativeOutcome Improved health of City Increase programming and Events/Programs Expanded Wellness Program 2008 employees participationOffered InitiativeOutcome Allow employees to change To reduce amount of time Usage by City personal information/view pay, HR must spend answering Employee Access Program employees once in 2008 etc. from any in-house/outside easily accessed place computer information/questions InitiativeOutcome To ensure the City is offering RFP, proposals review Deferred Compensation review the best program to our City Complete and recommendation to 2008 employees Council 2009-2013 Budgetary Considerations: • Propose to add new position of Benefits Coordinator to HR staff •Provide refresher training on Sexual Harassment Prevention & Awareness to all employees ïèí •Provide funding for temporary position each year to assist in performing routine clerical duties, thereby freeing staff for more complex assignments • Reinstitute Section 125 program for unreimbursed medical/child care •Add Medical Savings account as a benefit to reduce medical premium costs and/or provide a source of funding for retirees’ medical coverage •Provide funding for an Employee Assistance Program ïèì COMMUNITY DEVELOPMENT General Fund Mission Statement: Work with our community to make Bremerton a place of sound social, economic and physical health by providing collaborative planning processes and responsive development services to achieve the community’s desired future. Function Description: The Department functions include: leading citywide and neighborhood planning for growth and development, conducting environmental planning, administering land use and environmental codes, performing plan review and inspections, providing public information on community plans and development rules, pursuing annexations consistent with growth plans, insuring compliance with land use, building and nuisance codes, supporting urban design initiatives and project reviews, providing program administration for CDBG and HOME program activities, and providing administrative and technical support for the Hearing Examiner, Planning Commission, Design Review Board, and Arts Commission. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel819,254855,2391,011,653 1,105,825 Supplies, Services & Taxes 137,743127,546219,704226,996 Capital Expenditures 00 Debt Service 00 Transfers 17,50017,50017,50017,500 TOTAL 974,4971,000,285 1,248,857 1,350,321 Staffing Level 13.0013.0013.0013.00 Budget and Program Highlights: Current Planning. The Current Planning division is responsible for assisting the public by providing information regarding land use codes and permit applications, reviewing building permits for compliance with applicable land use requirements, and interpretation and application of multiple City and State regulations. The Current Planning staff administers the recently adopted Zoning Code, and continually monitors how well the Code works and initiates needed revisions. Current Planners also participate in drafting new development standards and urban design guidelines during various sub-area planning processes. Building. The Building division is responsible for the administration and enforcement of the International Building, Fire, and Mechanical Codes and the Uniform Plumbing Code as adopted by the State of Washington and the City of Bremerton. These functions involve reviewing building plans, providing information to the public, coordinating with other departments and agencies, issuing permits, and conducting project inspections. Long-Range Planning. Facilitating public involvement in planning for the City’s healthy future is the main responsibility of the Long Range Planning division. Sub-area planning will continue for Manette. Staff will coordinate with staff from Kitsap County on regional growth issues such as assignment of unassociated Urban Growth Areas (UGAs) to Bremerton and the development of Urban Growth Area Management Agreements (UGAMAs). Code Compliance. The City Council enacts local rules for land use, property maintenance, and building safety. The Code Compliance section helps insure that property owners adhere to these rules for development and use of property. CDBG/HOME. The CDBG/HOME division administers federal HUD-funded CDBG and HOME grants. This includes conducting the annual allocation process, providing technical assistance to applicants and grantees, contract monitoring, and reporting to HUD. The program coordinates capital projects and is coordinated with the City’s Comprehensive Plan. The division is also responsible for the City’s Rehabilitation Loan and Down ïèë Payment Assistance Programs. Recent Accomplishments and 2007 Initiative Status Recaps: • Completed the Tracyton Annexation • Managed and brought forward to City Council for adoption the sub-area plans for Westpark, Wheaton-Riddell District Center, and Downtown Regional Center • Adopted updated International Building, Plumbing, Mechanical, and property Maintenance Codes • Worked with City Council to create the Design Review Board • Strived to work cooperatively with developers and efficiently process land use and building permits Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Distinctive Growth, with Viable Neighborhoods and Centers that Provide Greater Choice and Convenience InitiativeOutcome Implement Comprehensive Plan Develop Charleston Sub-Area Plan Sub-Area Plan completion Council Approval 2009 expectations InitiativeOutcome Develop and Implement an Implement Comprehensive Plan Annexation Plan Annexation Plan for Navy Yard Council Approval 2008 ExpectationsDocument City InitiativeOutcome Passage of Joint Assignment of Central Kitsap Resolution with Kitsap Council Approval 2008 UGA County Passage of Joint Assignment of Gorst UGA Resolution with Kitsap Council Approval 2009 Assignment and annexation plan County for all Urban Growth Areas Passage of Joint (UGAs) Resolution with Kitsap Assignment of ULID6 UGA Council Approval 2010 County Passage of Joint Assignment of SKIA Resolution with Kitsap Council Approval 2011 County InitiativeOutcome Complete Shoreline Inventory Report 2008 Inventory Adopt a Comprehensive Shoreline Required by State Law, GMA Master Program Expectation Code Development Draft Plan 2010 Adoption of Plan Council Approval 2011 InitiativeOutcome Develop Downtown Regional Implement Comprehensive Plan Sub-Area Plan 2007 Council Approval Center Sub-Area Plan ExpectationsCompletion InitiativeOutcome Support Development of Implement Comprehensive Plan Sub-Area Plan Wheaton/Riddell District Center Council Approval 2007 ExpectationsCompletion Sub-Area Plan InitiativeOutcome Develop Manette Neighborhood Implement Comprehensive Plan Sub-Area Plan Council Approval 2008 Center Sub-Area Plan ExpectationsCompletion InitiativeOutcome During the annual comprehensive Adoption of Land Use planning process examine centers Update Land Use Map Council Approval 2009 Map designations ïèê Quality Housing, with Broader Choices InitiativeOutcome Recommended Action Downtown Sub-Area Plan 2007 Presented to Council Encourage investment in multi- Wheaton/Riddell District Recommended Action Review expansion opportunities family housing by reviewing tax 2007 Sub-Area Plan Presented to Council for the Multi-Family Tax abatement expansion Manette Neighborhood Recommended Action Abatement Program opportunities with the adoption 2008 Center Sub-Area Plan Presented to Council of each sub-area plan Recommended Action Charleston Sub-Area Plan 2009 Presented to Council InitiativeOutcome Support Eastpark Development Significant Addition of New Permitting Completed to Permits Issued 2007 Project Housing for the City Release Construction InitiativeOutcome Support West Hills Development Significant Addition of New Permitting Completed to Permits Issued 2007 Project Housing for the City Release Construction InitiativeOutcome Support Sinclair Ridge Significant Addition of New Permitting Completed to Permits Issued 2007 Development Project Housing for the City Release Construction Safe, Healthy Livable Neighborhoods InitiativeOutcome Implement Community Revitalize Bremerton Approval of Levy LID Improvement Program – Proactive Neighborhoods – Safe, Healthy, Plan Implementation 2008 Lift by Voters Community Resources Attractive Neighborhoods 2009-2013 Budgetary Considerations: The City’s planned growth and development will put increasingly high demands on staff for customer service, responsive permitting, annexations, and neighborhood/sub-area planning. Priority will be given to Council- directed, targeted planning projects in neighborhoods and special districts. Centers planning, including the creation of design guidelines and development standards for each, will consume much of the Long-Range Planning staff. Full update of the Shoreline Master Program and continued development of a Design Review Program, will result in an increased workload. Support from the Council for the hiring of outside consulting firms to aid in the development of sub-area plans and scientific reports (such as that required for the Shoreline Master Program Update) will help leverage our existing staff to meet all the GMA expectations. The Plan Review/Inspection staff (now, 2.0 FTE) is among the lowest staffing per capita in Puget Sound. The number of building plan reviews and inspections - particularly of major, complex projects and large, new home subdivisions - continues to grow. Support from the Council for plan review services by consulting firms will allow DCD to remain flexible and respond to increased demands for permit review. With the creation of 2,000 newly platted residential lots in 2007-2008 as well as continued high levels of commercial development, an additional Current Planner will be needed to maintain the City’s position as one of the most responsive permitting environments in the region. The increased volume of permit activity will generate more than adequate revenues to support the additional cost for new staff. On a technical side, expanded capacity of the GIS, LIS, City web site and other information technology systems will benefit operational efficiency, our ability to review land information for permit review, and provide enhanced customer service. This will entail acquisition of hardware and software as well as user training, as budget priorities allow. ïèé MUNICIPAL COURT General Fund Mission Statement: The Bremerton Municipal Court aims to fully and fairly hear every individual who has business before the Court. Everyone appearing in Court or in the clerk’s office shall be treated with courtesy, dignity and respect. We are honored to serve the citizens of Bremerton and others who have court business here. Function Description: The Bremerton Municipal Court is a court of limited jurisdiction for the City hearing cases involving alleged violations of City ordinances and State misdemeanor statutes, traffic and parking infractions, requests for orders of protection, and hearing examiner appeals. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel616,048664,512736,474820,332 Supplies, Services & Taxes 227,958224,156402,510410,045 Capital Expenditures 14,0150 Debt Service 0000 Transfers 0000 TOTAL 858,021888,6681,138,984 1,230,377 Staffing Level 10.0010.0010.0010.00 Budget and Program Highlights: To fully and fairly hear all cases involving alleged violations of City ordinances and State misdemeanor statutes, parking and traffic infractions, requests for orders of protection and hearing examiner appeals Justification: •Mission and Function Implementation: •Expand current staffing levels and service contracts to account for new photo enforcement initiative •Provide training to judicial position and staff to ensure quality customer service Manage all available options and resources to expand jail alternatives reducing the use of costly incarceration Justification: • Preferred by statute •Most cost efficient •Available options offer rehabilitation that is proven to reduce recidivism •Available resources are therapeutic vs. punitive and have been proven to reduce recidivism Implementation: •Maintain current staffing levels •Provide training to judicial position and staff to insure most current and proven programs and techniques are being utilized Continue with current levels of budgeted pro tem dollars to ensure the movement of all cases toward early, efficient and just disposition Justification: •Continued need for pro tem judicial officer to handle judicial conflicts and affidavits of prejudice •Continued need for pro tem judicial officer to enable presiding judge to fulfill his obligation of various committee assignments for the District and Municipal Court Judge Association •Continued need for pro tem judicial officer to allow for presiding judge to fulfill administrative and management duties mandated by Supreme Court Rules ïèè Implementation: •Continue to provide pro tem for contested infraction calendar and other judicial conflicts Provide continuous training and education to judicial officer and staff to ensure a high level of competency and efficiency Justification: •Legislative changes and technology advancements necessitate continued training to provide access to justice to the public and adjudication of criminal matters in a just and timely manner Implementation: •Attendance and participation in Judicial, Court Management and Presiding Judge Conferences • Attendance and participation in classes offered by the National Center for State Courts •Provide applicable software and equipment training to both judicial officer and staff Implement both technological and programmatic initiatives to increase efficiency and access to justice Justification: •Improved services by utilizing existing technology to support courtroom personnel •Better utilization of staff resources and space Implementation: • Implementation of new case management system sponsored by the Washington Administrative Office of the Courts •Continue with computer terminal at Prosecuting and Defense Attorney’s station to utilize state supported docketing software •Research options and feasibility of providing strategically placed kiosk for public accessibility of state supported software Provide a secure courtroom for the process of criminal cases that protects litigants, witnesses, spectators and court personnel Justification: •Instill public confidence and trust in the judiciary process •Protect the litigants, witness and spectators during all court proceedings •Protect the defendants’ civil rights and due process • Protect court personnel in the administration of duties in the judicial process •Access to Justice issues - ADA requirements Implementation: •Continue to develop and implement security initiatives for courtroom and clerk’s office • Install an interior and exterior camera system that allows for the monitoring of court facilities • Install adequate computer equipment and FTR Gold recording system for Courtroom two Provide permanent working space for judicial officer(s) and staff Justification: •Current judicial and clerk workspace is temporary by design •Jury room is currently utilized as a waiting room for court and second courtroom in addition to Jury usage •Access to Justice issues - ADA requirements Implementation: •Work closely with City council to develop design, build and transition into permanent court facility •Work closely with internal customers to ensure adequate public spaces such as lobby, Public Defender Interview Space Recent Accomplishments: • Supporting the City Council’s goal to improve accessibility of city services through the implementation of technology, the court will continue to research the feasibility of establishing a public computer terminal for accessing court documents and viewing photographic evidence for the photo enforcement initiative. • Supporting the Mayor’s goal to move the court to a new facility, the municipal court moved into the property at 900 Pacific Ave. until a permanent solution can be finalized. • The court hired a new court manager in August of this year filling a six month vacancy. ïèç • Under the direction and with the support of the City Council, the Municipal Court worked with other city departments to bring Photo Enforcement to the City of Bremerton. Departmental Initiatives: GOAL OR Measurement DEPARTMENTAL GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Provide a court friendly Construction and relocation of Relocation of Personnel Opening of permanent environment and Improved 2009 court facility and Equipment Facilities for Operation Service Provision capability InitiativeOutcome Court Management will be a Court Management Certify Court Management certified with the National attendance of Core classes through the National Center for Certification 2008 Center for State Courts as required for Court State Courts Management Program InitiativeOutcome Each defendant appearing before the Court/clerk’s office Each case coming before No case will be Increase current staffing and range the clerk’s office will be treated the court will be heard in a dismissed due to lapse 2008 of court/clerk services with courtesy, dignity and timely manner. of trial time. respect. InitiativeOutcome Provide opportunity for Every individual charged with a every individual charged Domestic Violence offense with a Domestic Violence Documentation in case Domestic Violence Assessments opportunity to have a needs offense the opportunity to 2007 file of referral process. assessment completed by a state have a needs assessment licensed private provider. completed by a state licensed private provider. 2009-2013 Budgetary Considerations: Over the next five years the Bremerton Municipal Court anticipates several staffing needs. With the expected increase in the number of defendants who need additional attention and supervision, a second probation officer who has skills in testing and assessing risks and needs is anticipated, especially in light of the 2007’s initiative and goal to have each defendant who has a domestic violence charge be given an assessment opportunity prior to being sentenced. As we design and build the new court facility, space will need to be considered. Additionally, the court will continue to pursue job parity increases within job descriptions. It is important to recognize the need to hire and keep qualified staff. Keeping wages competitive with other courts of the same size will increase our ability to do this. Revenue streams can have wide year-to-year fluctuation as a result of entity policy, policy activity and emphasis, and judicial changes. Unless these factors remain constant, a trend analysis is very difficult to analyze. However, current judicial time is hovering around 96%. With anticipated growth of citizenry in Bremerton, a part-time judicial officer should be on council’s radar. Again, as we design and build the new court facility, space needs should be anticipated. ïçð CITY AUDITOR General Fund Mission Statement: As defined by the Institute of Internal Auditors, Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Function Description: The Charter for the City of Bremerton requires that the city have an auditor and audit committee. The City Auditor’s Office conducts financial, compliance and performance audits to assure citizens, elected City Officials and management that municipal departments are utilizing resources in an effective and efficient manner. The audits are conducted in accordance with government auditing standards. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel105,929114,972127,061138,556 Supplies, Services & Taxes 15,9268,72918,98020,212 Capital Expenditures 00 Debt Service 0000 Transfers 0000 TOTAL 121,855123,701146,041158,768 Staffing Level 1.201.201.201.20 Budget and Program Highlights: • Annual work plan of department and program audits is approved by the Audit Committee • Perform other special audits or projects as approved by the Audit Committee • Provide assistance to City Departments and City Council as requested, and approved by the Audit Committee Recent Accomplishments: • Completed compliance and performance audits as posted on the city web page • Engaged regional CPA firm for follow up of their technical review of IT Departmental Initiatives: GOAL OR Measurement DEPARTMENTAL GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Financial, Compliance Perform operational audits and Increase Citywide efficiency Annual Work Planand Performance audit Annual reviewsand effectiveness reports 2009-2013 Budgetary Considerations: Continue departmental and/or fund audits on a rotating basis ïçï LAW ENFORCEMENT General Fund Mission Statement: The primary mission of the Bremerton Police Department is to coordinate and lead the efforts within the community to preserve the public peace, protect the rights of persons and property, prevent crime and generally provide service to the citizens of Bremerton. The Department serves the people of Bremerton by providing Law Enforcement service in a professional and courteous manner and it is to these people that the Department is ultimately responsible. Function Description: The Bremerton Police Department is responsible for the maintenance of public order, responding to incidents of criminal activity, traffic control, criminal investigations, crime prevention, Homeland Security issues and other related public services. The Chief of Police and all Officers under his direction are tasked with enforcement of all Federal Laws, Washington State Laws and City of Bremerton Ordinances within the boundaries of the City of Bremerton. Objectives: The Bremerton Police Department’s objective is to provide quality, base-line service to the citizens of Bremerton through adequate staffing at a level of two officers per 1000 population. While still below the national average of 2.3 officers per thousand, this staffing level will allow for 911 response as well as a focused approach to policing, such as ProAct Team enforcement of troubled areas and increased bike patrols in the Harborside district. With a population of 35,910, four FTE police officers will bring the force to 70 officers and achieve the desired staffing level. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel6,467,642 6,651,201 7,474,068 8,137,614 Supplies, Services & Taxes 2,102,415 2,128,957 2,381,068 2,512,314 Capital Expenditures 0156,882193,755164,522 Debt Service 00 Transfers 00 TOTAL 8,570,057 8,937,039 10,048,891 10,814,450 Staffing Level 77.0078.0083.0083.00 Budget Accounts and Program Highlights: Administration Provide Administrative oversight and support service in areas that include, but are not limited to the following: • Budgeting • Policy and Procedures • Resource Allocation • Personnel • Grant preparation and tracking • Records Management • Front Counter Services • Warrant / Subpoena / Protection Order Service • Community Outreach and Education • Fingerprinting ïçî • Public Disclosure • Concealed Weapon Permits • Criminal Records Checks Investigations The General Investigations Unit is responsible for the on-going investigative follow-up of felony crimes as well as: • Investigation of Crimes Against Persons and Property • Apprehension of offenders • Development of intelligence information • Cultivation of informants • Creating and maintaining cooperative and effective working relationships with other Law Enforcement agencies and the Kitsap County Prosecutors office • Location of missing persons • Recovery and return of stolen property • Assist crime victims • Case management • Crime scene management Crime Scene Investigation involves the use of scientific methods, physical evidence, deductive reasoning, and their interrelationships to gain explicit knowledge of the series of events that surround the commission of a crime. The Crime Scene investigators are detectives assigned to the Investigations Unit. Their responsibilities include but are not limited to the following: • Collection of evidence • Storage of evidence and found property • Processing for latent prints • Processing for DNA evidence • Processing for fibers • Sampling for fluids • Photography • Scene sketching Patrol The Operations Division of the Police Department consists of the largest number of employees. The primary mission of the Operations Division is to provide “first responder” services to the citizens of Bremerton to preserve and protect life and property while being the “front line” of communication with the citizens of Bremerton. •: K-9 UnitProvide K-9 units to enhance the ability to capture criminal suspects in otherwise dangerous/hazardous situations. To allow for the detection of illegal narcotics to stop the proliferation of drug trafficking in the community. • A Westpark:proactive program that provides Officer presence and assistance to Bremerton Housing Authority, in a low income, section eight housing area with a tradition of high crime rates. This is funded by the Federal Government. A • School Resource Officer:proactive program in which a police officer is the Police Department liaison to the School District and has direct contact with the school administrators on a daily basis. This program provides juvenile crime follow up and intervention in all Bremerton schools. This is partially funded by the School District. • Mountain Bike Patrol:Provides a street level interaction in a community friendly format that gives greater mobility, accessibility and deterrence as well as a proactive approach to community problem areas. This unit is operational when patrol staffing levels permit. • Water Safety Unit:Provide marine patrol service on Kitsap Lake when patrol staffing levels permit. • Reserve Officer Program:Consists of volunteer Reserve Police Officers who assist with special events, transport prisoners and support operational needs as required. • Explorer Program mentors:The Operations Division provides Mentors and Advisors for this program involving youth 14 to 21 years of age. • Firearms training unit:Provides up-to-date real training to prepare officers for critical incidents such as active shooter incidents, officer rescue etc. ïçí • Defensive tactics/Use of force training unit:Trains officers in the use of force and techniques for gaining control of offenders with the least amount of force needed while maximizing officer safety. • Bomb Unit:One officer from the department is trained in bomb identification and disposal. He works in conjunction with the State Patrol Bomb unit for Kitsap County wide shared coverage. • SWAT:One Officer participates on the Kitsap County SWAT team as part of a multi-agency shared effort to provide Swat service to all agencies in the county. • A Chaplains Unit:volunteer unit used for all critical incidents to provide care and comfort to the citizens of Bremerton. This all volunteer program also provides assistance to Officers. Special Operations Group The Special Operations Group (SOG) is responsible for the investigation of drug and vice-related crime. This group of Detectives works closely with our Operations Division as well as the West Sound Narcotics Enforcement Team (WestNET) and the Drug Enforcement Agency (DEA) to effectively reduce/eliminate the manufacture, sale and use of illicit drugs in the City of Bremerton. The Special Operations Groups has also formed partnerships with the Naval Criminal Investigative Service (NCIS) and the Department of Corrections to better coordinate operations through information and resource sharing. Property & Evidence This unit is charged with intake, custody control, tracking, lab testing, inventory, auditing and disposal of the evidence and found property stored at the police department. The evidence and property room currently stores in excess of 18,000 items. Community Resources The objective of this program is to create partnerships between the Police Department and the Community, emphasizing crime reduction and/or prevention. Services provided include but are not limited to the following: • Creation and support of Block Watch Programs • Citizens Academy • Landlord/Tenant Training • Explorer Program • Nuisance Property issues • Special Event Coordination • Crime Statistics • Department of Community Development (DCD) funding for Serious Habitual Offender Community Action Program (SHOCAP) • YWCA ALIVE Program • General Community Outreach Explorers The intent of Law Enforcement Exploring is to educate and involve youth in police operations, to interest them in possible Law Enforcement careers (police officer, police dispatcher, corrections officer, prosecuting attorney, crime lab technician, etc.). The Law Enforcement-Exploring program has three main themes that all goals and objectives must provide for. These are: • To further the Explorer’s education. • To encourage the Explorer’s participation in a rewarding and productive service activity. • To enhance the Explorer’s preparation for future roles as citizens, community members, leaders, and in future law enforcement careers. Facilities This fund provides for the cost of repairs associated with electronic equipment such as: • Portable radios • Vehicle radios • Light bars • Flashlights Traffic Unit The mission of the Traffic unit is to create safe streets with reasonable traffic flow. To educate the public and enforce traffic safety laws. Investigate criminal traffic violations and prepare cases for prosecution resulting from cases such as; vehicular assault, reckless driving, driving under the influence and vehicular homicide. To monitor, educate and enforce the laws as set forth in RCW Title 46, Motor Vehicles. To work in partnership with Engineering to create common sense traffic solutions to complex traffic issues. To provide professional, technical, ïçì collision investigation and reconstruction for critical incidents as they occur. This is accomplished by three assigned traffic officers. Additional functions include: • Motorcycles:This is comprised of two officers operating motorcycles on varying schedules to address traffic enforcement issues. They are used as manpower allows. • Fatality investigations:All traffic fatalities in the City are investigated by the Traffic unit. This includes in-depth scene analysis, event reconstruction, and follow up investigations. Detailed reports and information are generated for review by the City to determine liability and need for safety related changes. • DUI emphasis:The traffic unit participates in traffic safety programs to include monthly Kitsap County wide DUI emphasis patrols. • Traffic safety programs:Traffic officers work with the Washington State Traffic Safety Commission to provide quality training and enforcement in programs such as: • Passenger Restraint Enforcement • School Zone Enforcement • Traffic Trailer Utilization • Pedestrian Safety • Education and Outreach Programs • Photo Enforcement Off Duty-Contracted This fund provides for the cost of providing off-duty Police Officers services to private businesses and organizations via contractual arrangements with the City of Bremerton. Reimbursements for these expenditures are shown on the revenue side of the budget. Home Detention The objective of this program is to provide an alternative to incarceration. Although there are costs associated with this program, it produces savings for the City by eliminating per diem incarceration costs when utilized by Bremerton Municipal Court. Care/Custody of Prisoners This fund provides for incarceration costs as well as costs associated with medical care and prescription drugs for prisoners. Central Dispatch Services Central Communications (CenCom) provides call taker and dispatch service for the Bremerton Police Department. In addition, CenCom responds to inquiries relating to vehicles and wanted person’s information, warrants, as well as information relating to Domestic Violence Orders and No Contact Orders. Recent Accomplishments and 2007 Initiative Status Recap: •Implemented Red-light photo enforcement • Move to new facility at 1025 Burwell • Computerized the Property and Evidence system • Initiated proactive patrol as a focused approach to policing • Transition Property and Evidence to civilian staff - hired 2 civilian specialists • Adopted, and trained personnel on, departmental Vision, Mission and Core Values • Hired 4 police officers to fill vacant positions • Selected and trained 2 General Investigation Detectives to fill vacancies • Security video system • Completed wireless project for in-car network access of records management system • Upgraded I/LEADS Records Management System • Transitioned to Black & White patrol cars • Drafted Chronic Nuisance Ordinance • Increased participation in Community Block Watch Programs • 4 New Block Watches • New Block Watch Captains Group • Separated Traffic Unit from the Patrol Division • Enhanced community communications and information distribution through improved website. ïçë Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Safe, Healthy, Livable Neighborhoods InitiativeOutcome Yearly Average Response PatrolTimes Under 4 Minutes Numerical Value Annual Achieve Adequate Base Level for Priority 1 and 2 Calls of Response by Patrol Officers Yearly Average Response to 911 Calls Times Under 5 Minutes Numerical Value Annual for Priority 3 and 4 Calls At Least 720 Cases Investigations Continue the improvement of Assigned for Investigation Numerical Value Annual Increase Investigative service delivery by the criminal Per Year Examinations of Cases That justice system At Least 80 Man Hours of Might Not Normally Be Cold Case Homicide Numerical Value Annual Assigned to Detectives Investigations Per Year Traffic Law Enforcement Improve Safety in At Least 2,500 Traffic Neighborhoods and Reduce Numerical Value Annual Citations Per Year Collisions in High Accident Locations 2009-2013 Budgetary Considerations: The Police Department’s planning has been based around rebuilding an eroded police force whose staffing level had been allowed to lag significantly behind the national average and our neighboring Kitsap County municipalities. This has hindered Bremerton in providing the level of law enforcement service expected of a first class City by its citizens. The good news is that the staffing deficit has been significantly reduced in the last two budget cycles. The requested staffing of 70 officers will form the solid base to provide quality service to today’s population. Future City population growth needs to be matched by a corresponding increase in staffing, at the ratio of two officers per thousand, in order to provide the desired police coverage. More people bring more calls for service. Large annexations need special consideration to avoid overwhelming the available police resources. Pre-hiring of officers has been adopted by many municipalities so they can meet the sudden increase in work load, on the annexation date, with adequate manpower. Staffing levels are predicated on impacts of Bremerton’s re-development, annexation and population growth. Re- development and annexation calls for new patrol districts and re-thinking or developing our policing strategies in support of a more proactive response to citizens’ needs. Open common areas like the Harborside Park, the marina expansion, the added boardwalk, new condominiums and retailing businesses come with an expectation of community safety through a very visible law enforcement approach/strategy rather than just responding to 911 calls for service. The Police Department needs to be varying and fluid in its ability and approach to addressing ever changing crime trends and problems. Policing cannot solve the problems of increasing criminality unless supplemented by preventive measures. Preventive measures start with the increase in staffing levels that allow the Department to fully staff each shift and unit of work each and every day; provide a proactive uniformed response by utilizing bike patrols; implementing an anti-street crimes unit; and keep the ability to target problem areas without sacrificing staffing levels from regular patrolling districts and traffic unit responsibilities. 2008 is the year we turn the corner to policing in the proactive stance instead of the reactive posture. We must cite the future or we will be subject to continued resource shortages that result in no significant gain in reducing crime and its unrelenting negative impact on the Bremerton community. ïçê The City of Bremerton has one of the highest violent crime rates per thousand population of any city in the State of Washington. Since there is truly a commitment to improving the quality of life in Bremerton, its law enforcement must stop simply reacting to crime. It must come out front and be proactive in its policing approach. Adequate staffing levels allow the Bremerton Police Department to incrementally build up manpower levels and meet the required staffing needs to address Bremerton’s ever present criminal elements, and play a lead role for providing a safe and secure community for our citizens. ïçé POLICE DEPARTMENT BUDGET BREAKDOWN 20072008 BUDGETBUDGET ADMINISTRATION Personnel844,140898,230 Supplies & Services1,039,8991,163,708 TOTAL EXPENDITURES 1,884,0392,061,938 FTE1010 INVESTIGATION Personnel1,307,5431,074,469 Supplies & Services38,00038,720 TOTAL EXPENDITURES 1,345,5431,113,189 FTE1111 PATROL Personnel3,661,4834,682,875 Supplies & Services173,460139,364 TOTAL EXPENDITURES 3,834,9434,822,239 FTE4545 PROPERTY & EVIDENCE Personnel298,836121,223 Supplies & Services23,39524,380 TOTAL EXPENDITURES 322,231145,603 FTE44 SPECIAL OPERATIONS UNIT Personnel739,551743,516 Supplies & Services37,89543,660 TOTAL EXPENDITURES 777,446787,176 FTE88 COMMUNITY RESOURCES Personnel75,47476,712 Supplies & Services46,97245,666 TOTAL EXPENDITURES 122,446122,378 FTE11 FACILITIES Supplies & Services58,90065,500 TOTAL EXPENDITURES 58,90065,500 ïçè POLICE DEPARTMENT BUDGET BREAKDOWN 20072008 BUDGETBUDGET TRAFFIC UNIT Personnel395,684404,547 Supplies & Services4,0008,500 TOTAL EXPENDITURES 399,684413,047 FTE33 HOME DETENTION Personnel74,85780,542 Supplies & Services31,20336,615 TOTAL EXPENDITURES 106,060117,157 FTE11 EXPLORERS Supplies & Services6,3864,886 TOTAL EXPENDITURES 6,3864,886 OFF DUTY - CONTRACTED Personnel76,50055,500 TOTAL EXPENDITURES 76,50055,500 COMMUNICATIONS Supplies & Services399,958336,815 TOTAL EXPENDITURES 399,958336,815 CARE & CUSTODY OF PRISONERS Supplies & Services521,000604,500 TOTAL EXPENDITURES 521,000604,500 CAPITAL Capital Outlay193,755164,522 TOTAL EXPENDITURES 193,755164,522 GRAND TOTAL 10,048,89110,814,450 TOTAL FTE 8383 ïçç FIRE/EMERGENCY MEDICAL SERVICES General Fund Mission Statement: The mission of the Bremerton Fire Department is to heighten the quality of life for the citizens of Bremerton in a safe and efficient manner by the prevention of fires, the mitigation of natural and manmade hazards and providing assistance to citizens in the need of emergency services. Function Description: The Fire Department is responsible for protecting the citizens of Bremerton from the adverse effects of unfriendly fires, sudden medical emergencies, hazardous material incidents, and man-made or natural disasters. Major program currently includes fire suppression, emergency medical first response, fire suppression education, code development, public safety education and disaster planning. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel5,016,519 5,618,599 6,091,248 6,671,049 Supplies, Services & Taxes 895,592934,133932,005941,454 Capital Expenditures 22,640296,555 Debt Service 00 Transfers 00020,000 TOTAL 5,934,752 6,552,732 7,023,253 7,929,058 Staffing Level 58.0058.0058.0058.00 Budget and Program Highlights: Administration •The Bremerton Fire Department has an administrative staff of four individuals consisting of the Fire Chief, an Assistant Chief, an Office Assistant Senior Specialist and an Office Assistant II. The Administration provides overall direction, coordination and support of the Department’s resources and efforts. Fire Suppression • The Fire Suppression division encompasses a wide range of services involving not only the traditional firefighting role, but also emergency medical response, service calls and first response to HazMat and technical incidents. •The goal of this division is to be on scene within 5 minutes of dispatch. Fire Prevention and Investigation •The Fire Marshal’s Office is a critical element in the total system of fire protection to the community. The office is responsible for: plans review, attending pre-construction meetings, researching codes and providing contractors with all fire requirements for construction, inspecting buildings for final occupancy and helping all contractors understand code requirements. •The office also performs all fire investigations, prepares all criminal reports for the county prosecutors, performs juvenile firesetter intervention and submits all evidence for future prosecution. This is in accordance with International Fire Code #104.10. •The office performs all public fire education, public relations and acts as the department information officers. •The division provides for the enforcement of the International Fire Code as it relates to general fire and life safety practices which are followed in commercial occupancies. This is in accordance with International Fire Code #104.6.2, 105.2.2, 107.2.1 and 901.6. îðð •To attain the division’s goals, the division is staffed with 3 people, two Firefighter/Fire Prevention Officers and one Captain/Fire Marshal. •The objective of the Bremerton Fire Marshal’s Office is to improve life safety for the citizens of Bremerton, to reduce fire deaths, property loss due to fire, loss of jobs and preserve businesses and revenues within the City. Rescue & Emergency Aid •The EMS Division of the Bremerton Fire Department is responsible for medical/trauma responses, EMS personnel, EMS training (in conjunction with the Training Division), EMS equipment and supplies. There are a total of 17 certified paramedics that provide Advance Life Support and 33 Emergency Medical Technicians (EMT) that provide Basic Life Support. All members of the Bremerton Fire Department are dual function, they respond as both medical technicians and firefighters. •The EMS Division’s objective is to provide the highest quality Emergency Medical Services to the public. The objectives are met with quality training, equipment, supplies and personnel. •EMS Training Objectives are accomplished both in house and externally. EMS is continually evolving and challenging all EMS personnel. WAC 246-976-161 defines the level of training necessary for required continuing education. •Equipment. As in most medical fields there continues to be equipment changes and needs. Bremerton Fire Department’s goal and objective is to continue to stay current with necessary equipment needs. •Supplies: As with any supply issues the challenge is to stay within budget and to maintain a suitable disposable and re-usable supply inventory for any emergency large or small. •Personnel: The main objective for personnel is to provide the highest level of service. Training •The Training Division oversees all training required by the fire department to meet the mission statement of the Bremerton Fire Department. The training is driven by meeting compliance objectives (mandates) as outlined with the state RCW’s and WAC’s as determined by Washington State Department of Labor and Industries 296-305. •Additional training, both internal and external is then blended to enhance the mandated training by using industry standards to achieve these mandates. This type of training is often offered in the form of conferences, seminars and/or guest speakers. •Additional training is offered to enhance career-building opportunities for those members wishing to advance their careers. This type of training is generally college level courses with an emphasis on getting a degree. Facilities •The facilities portion of the budget is to maintain the three City fire stations in Bremerton. These buildings are used to house fire department personnel on a 24/7 schedule 365 days a year. •Maintaining these stations to meet local and state codes allows a healthy/safe work environment for our employees. Maintenance of these buildings includes interior and exterior of the buildings as well as the grounds. Electrical/mechanical systems, plumbing, roofs, paint, doors, appliances/furnishings are all items that require continual maintenance/repairs. •These buildings are designed for a life expectancy of 40-50 years. •Station #1 is a new facility while the other two fire stations are over 20 years old and require continual upgrading to avoid possible costly repairs due to neglect. ALS Billing Services •Bremerton Fire Department’s patient transport billing is accomplished through a contract with Systems Design in Silverdale, Washington. The Bremerton Fire Department has had a working relationship with Systems Design since 1992. •A Medical Incident Report (MIR) is generated for every patient that Bremerton Fire Department transports. Each MIR is inputted into the Fire Department’s data base for statistical, research, billing and reconciliation information. A copy of each transport MIR is sent to Systems Design for processing and billing of insurance companies, Medicare, Medicaid and, if necessary, directly to the patient or residence. By direction of the City and State Auditor’s offices, Bremerton Fire Department staff personnel reconcile and quality assure all accounts each month. At this time a charge of $21 plus postage is billed to the Fire Department for each report processed by Systems Design. îðï •The funds that are collected by Systems Design or receipted at City Hall are deposited in the General Fund. Central Dispatch Services •Bremerton Fire Department is dispatched through a countywide dispatch service called CenCom (Central Communications). The City of Bremerton has been a partner in the county wide dispatch center since 1976. •The objective of CenCom is to dispatch all life threatening medical and fire calls within 60 seconds of the time the call is received. Recent Accomplishments and 2007 Initiative Status Report: • Contained fires with initial attack to the room of origin 73.6% of the time during 2006. • Provided advanced life support services 92.4% of the time within 8 minutes during 2006. Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Safe, Healthy, Livable Neighborhoods InitiativeOutcome Provide Fire Suppression Responses Within 6 Numerical Value Annual Minutes 90% of the Time Decreased Fire Loss Contain Fire With Initial Attack to the Room of Numerical Value Annual Origin 60% of the Time Continue the improvement of fire Decrease the Incidents of Fire in Inspect Once a Year All Inspections Completed Annual protection and emergency services Commercial Occupancies Commercial Occupancies delivery Provide Basic Life Support Services Within 6 Numerical Value Annual Minutes 90% of the Time Strengthen the Chain of Provide Advanced Life Survival Support (ALS-Paramedic) Numerical Value Annual Services Within 8 Minutes 90% of the Time 2009-2013 Budgetary Considerations: Replace one ambulance in 2008 through the vehicle replacement fund. To replace the (3) LifePak 12 cardiac monitor and defibrillator in 2009. This would be funded through the CIP. îðî FIREDEPARTMENT BUDGETBREAKDOWN 20072008 BUDGETBUDGET ADMINISTRATIO N Personnel378,876403,071 Supplies & Service25,18944,471 s TOTAL EXPENDITURES 404,065447,542 FTE44 FIRE SUPPRESSION Personnel3,635,5164,166,846 Supplies & Services245,657236,111 TOTAL EXPENDITURES 3,881,1734,402,957 FTE3535 FIRE PREVENTION & INVESTIGATIO N Personnel344,789379,575 Supplies & Services33,32154,668 TOTAL EXPENDITURES 378,110434,243 FTE33 TRAINING 58,23074,624 Supplies & Services TOTAL EXPENDITURES 58,23074,624 FACILITIES Supplies & Service82,10587,105 s TOTAL EXPENDITURES 82,10587,105 ALS BILLING SERVICES (Supplies & Services) 36,50036,500 RESCUE & EMERGENCY AID Personnel1,732,0671,721,557 Supplies & Service296,563279,792 s TOTAL EXPENDITURES 2,028,6302,001,349 FTE1616 CENCOM Supplies & Services154,440128,183 TOTAL EXPENDITURES 154,440128,183 CAPITAL OUTLA Y Capital Outlay0296,555 TOTAL EXPENDITURES 0296,555 TRANSFERS OUT 020,000 GRAND TOTAL 7,023,2537,929,058 TOTAL FT5858 E îðí POLICE AND FIRE PENSION General Fund Function Description: The General Fund Police and Fire Pension budget accounts for pension payments for firefighters and law enforcement officers who were hired under the LEOFF 1 Retirement System and Prior Retirement Acts. This program pays for medical premiums, pension and disability payments for law enforcement officers and firefighters hired prior to October 1, 1977 and who are vested in the system. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel2,195,000 Supplies, Services & Taxes 205,100 Capital Expenditures 0 Debt Service 0 Transfers 0 TOTAL 0002,400,100 Staffing Level Budget and Program Highlights: •Police and Fire Pensionprogram was previously budgeted for in a separate Trust & Agency Fund (Fund 601) from 2004 through 2007. A review of Generally Accepted Accounting Principles (GAAP) guidance revealed that this fund does not properly qualify as a Trust & Agency Fund due to the “pay as you go” nature of the City’s funding of this obligation. Accordingly, the Police and Fire Pension Fund is being closed in 2008 and established as a General Fund budget “department”. Transfers out to the Pension Fund have been removed from the budget of Non-Departmental - offsetting the addition of the new Police and Fire Pension department in the General Fund. •Record FY 2008 pension expenditures and administer statutory pension benefits for all qualified retired law enforcement officers and firefighters. •Identify and provide the most effective and cost saving program for long-term care. •Coordinate the completion of the actuarial study initiated in 2007 of the LEOFF I population to determine how best to finance future health benefits including a review of insurance coverage for medical expenses and long-term health care. Recent Accomplishments: • Development of an actuarial study was initiated in 2007 for the LEOFF I population. Data has been compiled which will provide the basis for further analysis and review in 2008 on how best to finance future health benefits including a review of insurance coverage options for medical expenses and long-term health care. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Complete Analysis of Actuarial Create a more Predictable Identify Alternative More Effective Findings regarding how best to Funding Strategy for Long-term Funding Strategies for Budgeting for Long-2008 fund Long-term Health Care Health Care Benefits for Fiscal Planning term Health Care Benefits for LEOFF I Members LOEFF I Members îðì InitiativeOutcome Adoption of the most Cost Review Insurance Coverage for Effective Approach to LEOFF I Medical Benefits to Cost Savings in Medical Decrease in Annual Insuring Medical 2008 Determine the Best Coverage for Benefits Administration Medical Benefits Costs Expenses for LEOFF I the Lowest Cost Members 2009-2013 Budgetary Considerations: The benefit administrator for the Police and Fire Pension program needs to systematically analyze the cost/benefit quotient for spreading long-term care risk between available insurance coverage and direct budgeting from current year expenditures. As this group of retirees’ age, medical and long-term care costs will escalate putting more and more strain on funding for the program. îðë GENERAL FACILITIES General Fund Function Description: General Facilities Maintenance is a section of the Utilities Operations Division of the Public Works & Utilities Department under the direction of the Utility Operations Manager. This division is responsible for the upkeep and maintenance of all City buildings and grounds, other than those in the Parks and Recreation Department, and for inventory of the utility department’s equipment and supplies. The General Facilities activities include maintaining City buildings and properties consistent with sound property management principles. Budget Data Recap:. Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel108,47090,996143,952136,343 Supplies, Services & Taxes 583,703617,430686,372735,418 Capital Expenditures 10,716126,105331,800112,000 Debt Service 00 Transfers 0000 TOTAL 702,889834,5311,162,124 983,761 Staffing Level 1.191.161.161.16 Budget and Program Highlights: •Maintain City buildings and properties consistent with property management principles •Manage the custodial services and uniform maintenance contracts •Manage the fire suppression equipment and security alarm contracts • Manage annual elevator and boiler inspections •Perform the General Facilities Capital Improvements Projects approved in the 2008 budget •Manage Facility keys and locks •Manage monthly and quarterly HVAC service and maintenance contracts. Prior to the sale of the Permit Center, maintenance will still need to be performed during 2008 and therefore budget still needs to be made available until ownership transfers. Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Efficient, Accountable and Financially Responsible City Governance InitiativeOutcome Move Public Works Create More Efficient Working Administration to Oyster Occupancy by Staff 2008 Centralize Public Works & Environment by Centralizing Bay Utilities the Department Move Engineering, Utility Billing and Water Occupancy by Staff 2009 Resources to Oyster Bay 2009-2013 Budgetary Considerations: Several new City buildings are being added - Naval Museum, Police Station, Court offices, new Fire Station #1, Government Center and Bremerton Harborside. These are, or will be, new structures, so warranties will be used to the greatest extent possible. Preventative maintenance schedules will be developed and implemented for all new buildings in order to maximize their useful life and limit major maintenance. Public Works and Utilities’ goal is to relocate the Olympus Drive facility to the Oyster Bay facility. The purpose is to consolidate the department under one roof for more efficient operation. îðê PARKS AND RECREATION General Fund Mission Statement: Bremerton Parks and Recreation is committed to enriching the lives of Bremerton citizens with aquatic, athletic and recreational opportunities for persons of all ages and to provide safe and attractive parks and facilities for play, health and fitness, enjoyment, and celebrations. Function Description: The Parks and Recreation Department provides safe and attractive parks, facilities and programs for the enjoyment of Bremerton's citizens. The Department operates and maintains the Sheridan Park Community Center, Bremerton Senior Center, Glenn Jarstad Aquatic Center, Ivy Green Cemetery, and Gold Mountain Golf Complex. The Park Department maintains 335 acres of park land including 31 parks and beautification areas located throughout the City. The Parks and Recreation Department offers a broad menu of recreational programs and activities for a variety of ages and interests. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel1,687,890 1,817,449 2,164,118 2,267,762 Supplies, Services & Taxes 842,298959,6951,095,810 1,052,620 Capital Expenditures 23,68744,9450 Debt Service 20,49520,49520,49620,500 Transfers 030,0000 TOTAL 2,550,683 2,851,327 3,325,369 3,340,882 Staffing Level 24.2025.7026.0026.10 Budget and Program Highlights: The number of beautification and street right of way areas that fall under the responsibility of the Parks Department to maintain is growing significantly with the expansion of the Flower Program to Manette, Callow Avenue, Washington Avenue and the Kitsap Transit Center beautification improvements. The addition of Harborside Fountain Park and the expansion of Kitsap Lake Park have added to the inventory of recreation properties that require daily maintenance. The community survey performed as part of the Long Range Park Plan indicates that citizens are interested in receiving more consistent maintenance and security in neighborhood parks and recreation facilities. There is a request to increase park security by having a security firm or off duty police lock and open the Harborside Fountain Park gates on a daily basis to and patrol Evergreen Park during high use weekends where criminal activity and noise ordinance violations have been prevalent. In addition to these maintenance and security priorities the 2008 budget addresses the need for a modest amount of additional supplies and utilities to operate the second greenhouse purchased to accommodate the expanded flower program. The increased supply costs are in part driven by rising prices for petroleum based products including fertilizer and herbicide. The general theme of the 2008 parks operating budget is to provide better and more consistent maintenance of existing parks and expand city beautification efforts. Major 2008 Objectives include: • Continued reinvestment in Neighborhood Parks • Continue to work toward relocation of Parks Maintenance Shop to the Olympus site îðé • Maintain Harborside Park in a safe and high quality fashion Recent Accomplishments: • Scheduled December adoption of Long Range Park and Open Space Plan • Development of a levy package for improvement of Neighborhood Parks • Expansion of Flower Program to Callow Avenue • Landscaping of Harborside Park th • Renovation of 9 Street Park landscaping • Volunteer clean-ups organized at Forest Ridge and NAD Park • Construction of a second greenhouse for flower propagation Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Open Spaces, Natural Areas and Parks that Maximize the Natural Environment and Promote Community Pride InitiativeOutcome Long Range Plan will Document Completion Update Parks Comprehensive Plan Determine the Future of the Council Adoption 2007 and Adoption by Council City Park System InitiativeOutcome Protect the Park’s Unique Develop Master Plan for NAD Features and Increase Citizen Document Completion Council Adoption 2010 Park with Public Input Use and Enjoyment of this City and Adoption by Council Asset InitiativeOutcome Develop Partnership with Bremerton School District for Efficient and Expanded Use of Partnership Agreements Council Adoption 2008 Joint Use of Existing Developed Recreational Facilities for Use Sports Fields InitiativeOutcome Create and Distribute Widely a Increase Public Awareness and Completion of Comprehensive and Updated Map Printing and Use of City Parks and Open Comprehensive Map of 2008 Listing City Open Spaces and Distribution of Map Spaces City Parks & Open Spaces Parks InitiativeOutcome Seek Additional Funding for Park Provide Adequate Revenues for Maintenance and Operations and Core City Infrastructure Needs Ballot Measure Approved Funding Source 2007 Neighborhood Parks Development Approval by Voters and Upgrades Efficient, Accountable and Financially Responsible City Governance InitiativeOutcome Assure Most Efficient Use of Review Options for Management Completion of Cemetery City Resources and Increase Implementation of Plan 2008 and Operation of City Cemetery Business Plan Service Level InitiativeOutcome Review Options for Asset Completion of Gold Assure Most Efficient Use of Management and Operations for Mountain Golf Business Implementation of Plan 2009 City Resources Gold Mountain Golf Plan 2009-2013 Budgetary Considerations: Passage of the November 6, 2007 Neighborhoods Now Levy will facilitate capital investment to revitalize aging neighborhood parks and provide additional staffing to maintain these improvements. The completion of the Boardwalk, Harborside Park Phase 2, Evergreen Park Expansion and growth of the City beautification efforts at the Downtown Tunnel and along Pacific Avenue will continue to challenge manpower needs. îðè PARKS & RECREATION BUDGET BREAKDOWN 20072008 BUDGETBUDGET PARKS ADMINISTRATION Personnel176,783199,733 Supplies & Services88,25026,872 TOTAL EXPENDITURES 265,033226,605 PARKS MAINTENANCE Personnel1,158,5121,239,566 Supplies & Services583,880619,076 TOTAL EXPENDITURES 1,742,3921,858,642 RECREATION PROGRAMS Personnel503,891504,661 Supplies & Services281,590274,884 TOTAL EXPENDITURES 785,481779,545 AQUATICS, ATHLETICS, & FITNESS Personnel324,932316,802 Supplies & Services135,890138,788 TOTAL EXPENDITURES 460,822455,590 DEBT SERVICE 20,49620,500 CAPITAL 32,1450 GRAND TOTAL 3,306,3693,340,882 îðç ENGINEERING General Fund Function Description: Engineering is a division of the Public Works and Utilities Department managed by the City Engineer. Engineering manages comprehensive planning, design and construction of City infrastructure; traffic engineering; development project review and permitting; provides engineering services to all City departments; obtains grant and low interest loan funding from Federal and State sources; and assists in regional transportation coordination. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel372,044367,759380,710545,009 Supplies, Services & Taxes 71,91979,085186,77694,469 Capital Expenditures 00 Debt Service 00 Transfers 00 TOTAL 443,963446,845567,486639,478 Staffing Level 4.794.564.564.56 Budget and Program Highlights: •Help to establish new street revenue source to fund pavement management and signal needs •Complete design and construction of capital projects assigned to Engineering in the annual CIP •Issuance of Rights-of-Way permits and sewer and water permits. •Development review for subdivision and commercial development •Update the current traffic counts on key streets •Continue to develop the City’s GIS capabilities by implementing an internet and intranet browser Recent Accomplishments and 2007 Initiative Status Recaps: •Began construction of SR 304 & Warren Ave off-ramp • Complete Non-motorized Transportation Plan • Began construction of CW-1 • Eastpark Construction • Provided Engineering support to West Park Sub-area Plan/Riddell-Wheaton Sub-area Plan Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Improved Accessibility, Especially for the Pedestrian InitiativeOutcome Ensures City actions support strategic priorities. Positions Develop a Non-Motorized the City to be more competitive Document completion and Council Adoption 2007 in obtaining funding for non- Transportation Plan adoption by Council motorized projects from grant sources. îïð Open Spaces, Natural Areas and Parks that Maximize the Natural Environment and Promote Community Pride InitiativeOutcome Clean up of contamination Provide useable area in Rehabilitation and Reuse of so area can be used in a Completion of Anderson Cove where brown 2008 Brown Fields Areas manner compatible with Environmental fields currently exist the neighborhood and the Assessment Document Comprehensive Plan Distinctive Growth, with Viable Neighborhoods and Centers that Provide Greater Choice & Convenience InitiativeOutcome Develop a Plan for Coordination of Utilities and Infrastructure to Successfully Provide Urban Completion of a Plan Implementation of Plan 2008 Support Annexations and Services to UGAs Facilitate Assignments of UGAs 2009-2013 Budgetary Considerations: •Obtain GPS equipment to support GIS activities •Complete the input old record drawings into database and create an engineering drawing locator •Maintain engineering drawing locator (BEDA) •Create and maintain user friendly and accessible GIS •Implement a Non-motorized Transportation Capital Plan •Update streets pavement management report on the 3 to 5 year cycle •Update Transportation Improvement Plan (TIP) •Maintain traffic count database •Maintain coordination with KRCC, PRTPO and PSRC on transportation issues îïï ECONOMIC DEVELOPMENT General Fund Mission Statement: Facilitate the growth, diversification and stability of the Bremerton economy; create meaningful employment and housing opportunities for all of the citizens of the City and, by expanding the economy, to provide a stable and growing tax base for the operations of City government. Function Description: The City is in the middle of an aggressive revitalization and development program. The center piece project is the Bremerton Harborside Development which will give Bremerton claim to its long awaited place as a premier waterfront community in the Puget Sound. The Economic Development Department is focused on enhancing the economic vitality of the City through project management and the promotion of public investment, private investment and partnering as the foundation of the downtown revitalization plan. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel63,37578,14095,993104,975 Supplies, Services & Taxes 20,62166,74365,52030,636 Capital Expenditures 00 Debt Service 00 Transfers 00 TOTAL 83,996144,884161,513135,611 Staffing Level 1.501.001.001.00 Budget and Program Highlights: Economic development is a discretionary activity of the City which is undertaken for the purpose of achieving City goals. •In FY 2008, the Economic Development Department’s operation will continue to be staffed with the Redevelopment Projects Administrator and a Project Assistant. 50% of the personnel costs for these two positions will be covered by the General Fund (Economic Development Department) - 50% will be charged to both the Harborside Plaza and Commons Capital Improvement Fund (Fund 304) as the Economic Development Department provides project management and oversight for these capital programs. •The objectives for 2008 include: •Successfully manage capital projects • Attract private investment •Attract new employers •Establish Bremerton as a destination •Strengthen and harmonize the downtown core and waterfront •Provide enhanced activities and amenities for the community Recent Accomplishments and 2007 Initiative Status Recaps: • Relocated Police Department to the Burwell Site - Facilities Opened for Operations in April 2007 • Managed the Construction of Harborside Park and Naval Museum - Opened to the Public in 2007 • Successfully Obtained $5 million in State Funding for the Harborside Plaza and Commons Capital Improvement Program • Implemented a signage program in the Harborside District - Funded by an allocation of lodging tax revenues îïî Departmental Initiatives: GOAL OR Measurement DEPARTMENTAL GOALS/INITIATIVESWhen MEASURECriteria Enticing New Development and Retaining Existing Businesses, With a Focus on the Downtown Regional Center InitiativeOutcome Implement a Holiday Light Attract Visitors to the “Lighting” of the Park Program for Harborside Park and Downtown Area & Harborside Completion of Installation 2007 & Tree Downtown Area Park During Off Season 2009-2013 Budgetary Considerations: This budget area is expected to remain fairly stable in the next 5 year period. The nature of work will vary as the current revitalization and capital projects are completed and new ones are undertaken - but the core operating costs for economic development are not anticipated to vary greatly from the current picture. îïí NON-DEPARTMENTAL General Fund Function Description: This General Fund Non-Departmental budget accounts for activities of a general nature not associated with a specific service function or department Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel20,37626,339115,000135,000 Supplies, Services & Taxes 1,082,972 1,137,995 1,192,387 1,933,391 Capital Expenditures 5,00000 Debt Service 411,588411,085409,945412,185 Transfers 3,391,029 4,024,221 3,673,840 1,439,130 TOTAL 4,910,965 5,599,640 5,391,172 3,919,706 Staffing Level 0.000.000.000.00 Budget and Program Highlights: •Legislative - payment to Kitsap County Auditor’s Office for voter registration and election services. •Emergency Services - the City contracts with Kitsap County Emergency Management Services for the delivery of a comprehensive, all-hazards emergency management program. •Employee Benefits - the City pays to the State of Washington for unemployment compensation paid on behalf of employees who have terminated employment with the City. •Employee Benefits - reserve funds to cover potential but undeclared retirement expenses. •General Government services - payments for participation in professional associations, including the Puget Sound Regional Council, Kitsap Business Assistance Center, Association of Washington Cities, Kitsap Regional Coordinating Council, and Kitsap Regional Economic Development Alliance. • Alcoholism Program - local governments are legally responsible for expending at least 2% of collected liquor excise taxes and profits for alcoholism programs. •Health Services - the City contracts with the Bremerton-Kitsap County Health District for certain public health support and services. •Natural Resources - the City is responsible for funding the enforcement of the “Clean Air Act” through the Puget Sound Clean Air Agency. •Professional Services Contracts – lobbyist and Photo Enforcement contract. •Animal Control - The City contracts with the Humane Society for animal control services. •Payment of Government Center Debt. îïì •Operating Transfer Out - the General Fund transfers monies out to financially support the following funds: Street Fund, Conference Center Operating Fund, CDBG Fund, and the Bond Fund. In addition, the General Fund transfers include a transfer of $500,000 to the Boardwalk Project utilizing fund balance in excess of the target levels identified by the City’s Financial Goals & Policies for this capital improvement project, and a transfer of $200,000 to Parks Capital Improvement Fund which is the proceeds from the Levy LID Lift designated for parks development and improvements. Recent Accomplishments: • The Connections Group has been retained to provide the City with a communication plan and recommendation for communicating effectively with Citizens and utilization of the most efficient means possible to promote economic development in Bremerton. Report to be provided prior to the end of 2007. Departmental Initiatives: GOAL OR Measurement DEPARTMENTAL GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Recommendation on Most Efficient Means to Promote More efficient use of limited Proposal submitted to Approval by Mayor and 2008 Economic Development in General Fund resources Mayor and City Council City Council Bremerton 2009-2013 Budgetary Considerations: This budget area overall is expected to remain relatively stable in the next 5 year period. The Street Fund transfers have the potential to dramatically increase but are currently also expected to be relatively stable in the future - based on an expectation that alternative additional funding will be implemented by the City Council in 2008 with imposition of car tab fees as permitted under the RCW. If the City is not successful in obtaining additional and sustainable funding for street maintenance, then the budgeted transfers from the general fund to the street fund will require significant increases that are likely to significantly exceed the available funds. In addition, the Non-Departmental budget includes a reserve for potential excess cost of retirements. With an aging workforce, the potential for these types of costs to increase in the next five year period is growing. îïë NON-DEPARTMENTAL BUDGET BREAKDOWN _____________ _ 20072008 BUDGETBUDGET Negotiations & Salary Increase00 s Unemployment Compensatio85,00085,000 n Set Aside - Retirement50,00050,000 s Postag55,00055,000 e Animal Control Contrac202,500206,558 t Lobbyis25,00045,000 t CATV Operation20,0000 s Hearing Examine36,0000 r Interfund Insuranc407,708464,648 e Transfer to Bond Fun282,340271,130 d Transfer to Conference Cente125,00050,000 r Transfer to Street Fun718,000593,000 d Transfer to Naval Museum Fun47,0000 d Transfer to Boardwalk Projec0500,000 t Transfer to Police & Fire Pension Fund 2,483,5000 Transfer to CDBG Fun18,00025,000 d Photo Enforcement Professional Service143,600850,000 Miscellaneou5,00015,000 s Election Service69,00069,000 s Emergency Service47,77748,065 s Puget Sound Clean Air Agenc12,36514,370 y Alcoholis28,00030,000 m Kitsap Economic Development Allianc8,00017,000 Kitsap Business Assistance Cente5,0005,000 r Kitsap Regional Coordinating Counci30,47533,000 Bremerton-Kitsap County Health Distric46,35247,500 t Association of Washington Citie21,15023,250 s Puget Sound Regional Counci9,46010,000 Payment of Government Center De409,945412,185 b Tota5,391,1723,919,706 l îïê ENDING FUND BALANCE General Fund Function Description: This account is used to indicate the estimated and actual amounts of fund balance for the General Fund on a working capital basis as of the end of the year. It represents the excess of General Fund current assets over current liabilities. Budget Data Recap: Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel Supplies, Services & Taxes Capital Expenditures Debt Service Transfers Ending Fund Balance 3,541,265 4,396,097 3,450,953 3,121,630 TOTAL 3,541,265 4,396,097 3,450,953 3,121,630 Budget and Program Highlights: The principal objective of the “Ending Fund Balance” for each fiscal year is to provide sufficient operating reserves (working capital) to manage monthly and daily cash flow variability and ensure adequate liquidity in the event of a disruption of revenues (natural disaster, unexpected loss of revenue source, etc.) for a limited duration of time. The City’s financial goals and policies stipulate that the City will strive to maintain ending cash and investment balances in the General Fund of no less than 8.5% of total planned annual operating expenses. Maintaining an adequate ending fund balance is necessary to maintain sufficient cash flow for normal General Fund operations and to provide sufficient short term financial flexibility to cope with unexpected changes in receipts or required expenditures of the Fund. The target minimum “ending Fund Balance” for the General Fund for 2008 would be $3.065 million based upon 8.5% of the 2008 budgeted operating expenditures. The budget for 2008 provides an “Ending Fund Balance” of $3.121 million which meets and exceeds the expectations of the financial goals and policies. 2009-2013 Budgetary Considerations: The maintenance of adequate working capital in the General Fund will become increasingly important in future periods given the expected greater reliance on receipts from sales and B&O tax revenues to fund core City government services. These tax revenues are susceptible to volatility and variation in relation to the general economic conditions and activity throughout the City. INTRODUCTION Special revenue funds are a category of funds which account for proceeds of specific revenue sources - which are restricted for specific purposes and expenditures. The 2008 budget includes 13 special revenue funds: Arterial Street Fund – dedicated capital construction fund for the purpose of making capital improvements to the City’s arterial street system as provided in the Transportation Improvement Plan. Primary source of revenues is state and federal grant funds. Street Fund - comprised of three main functions: Street Maintenance – streets/sidewalk maintenance, snow/ice control, etc Traffic Maintenance – traffic control devices maintenance Electronics – maintenance of traffic signals, streetlights, telephones, radios, etc Funding for the street program comes from a combination of fuel taxes, parking taxes, Real Estate Excise Tax (REET) funds transferred in from the General Government Capital Improvement Fund, Community Development Block Grant (CDBG) fund allocations, a portion of the net Revenues of the Parking System, charges to other departments and governmental agencies for services provided, and transfers from the General Fund. Contingency Reserve – this fund was established to protect the City’s General Fund in the event of unforeseen and unfunded emergency requirements. By City ordinance, all proceeds from the sale of general government property is to be deposited into the Contingency Reserve Fund. Civic Improvement Fund - established for the collection and expenditure of lodging taxes which are to be used for stadium facilities, convention center facilities, performing arts facilities, visual arts centers, and the promotion of tourism. Parking System – used to account for the revenues and expenditures for the entire City’s parking facilities and lots – including the City’s parking garage, conference center parking garage, Fifth and Park lot, and the Craven lots, along with all metered on-street parking in the City and all fees collected from parking violations. Community Development Block Grant – provides 1) administration of federal Community Development Block Grant (CDBG) and Home programs, and 2) establishment and implementation of housing projects using federal, state, and private funds. Abatement Revolving Fund – established as a source of funding for carrying out repair, demolition, or removal of conditions which are subject to abatement under the City’s building, fire, zoning, and nuisance ordinances. Police Special Projects - created to account for monies and proceeds from the sale of property seized during drug investigations and forfeited pursuant to state and federal law. ________________________________________________________________________ Special Revenue Funds Overview Public Access Television (BKAT) – accounts for revenues and expenditures of the Public, Education, and Government (PEG) channel which provides public access television service to the citizens of Kitsap County through franchise agreements with local cable providers. Revenue sources come from a combination of PEG fees collected by the cable providers, cable franchise fees, service contract fees with other governmental entities, and a variety of charges for services for production assistance and equipment usage. Gift and Donation Fund - established for the purpose of accepting gifts and donations on behalf of all departments of the City. Trial Improvement Fund – In 2005 the legislature passed SB5454 for the expressed purpose of providing relief to cities who have courts of limited jurisdiction, as well as district and state courts. Each city that has an elected municipal court judge that is compensated at 95% but not more than 100% of the district court judge salary will receive an annual distribution of $9,600. Each city for which the state contributes to the municipal court judge’s salary is required to create a trial court improvement account. This account must be funded in an amount equal to the state’s contribution ($9,600 in 2008) and must be appropriated by the City Council to fund improvements to court staffing, programs, facilities, and services. The staffing changes for 2008 include a salary adjustment for the Municipal Judge to bring it up to the required 95% of District Court Judges in order to ensure eligibility for participation in these funds. One Percent for the Arts – Bremerton City Council established a One Percent (1%) for the Arts Program for designated city funded capital projects by Ordinance No. 4940. The Council action established a One Percent for the Arts Fund to account for the pool of appropriated funds and donations that are accumulated in accordance with the ordinance. Conference Center Operating Fund - this fund was established to account for revenues and expenditures related to the operation, maintenance, security, and capital improvements to the new Conference Center complex. Revenues are provided by Conference Center charges for services, as well as a lodging tax allocation, and General Fund contributions. ________________________________________________________________________ Special Revenue Funds Overview 2008 Budget Special Revenue Funds Gift & Donations Public Access Television $86,337 $359,859 Trial Improvement 0.34% 1.42% $11,316 Police Special Projects 0.04% $481,896 1.90% One Percent Arts $66,000 Abatement Revolving 0.26% $177,075 0.70% Conference Center $1,740,306 6.88% Com. Dev. Block Grant $1,265,828 5.00% Parking System $2,256,728 8.92% Civic Improvement Arterial Street $460,500 $13,297,827 1.82% 52.57% Contingency Reserve Street $1,641,983 $3,450,750 6.49% 13.64% 2006 Actual2007 Budget2008 Budget Arterial Street 9,316,67715,281,82713,297,827 Street 3,080,0633,433,9913,450,750 Contingency Reserve 4,802,9183,056,7571,641,983 Civic Improvement 502,999538,500460,500 Parking System 2,300,1912,348,4832,256,728 Com. Dev. Block Grant 2,612,7151,852,4381,265,828 Abatement Revolving 141,940172,075177,075 Police Special Projects 492,052566,896481,896 Public Access Television 316,686543,310359,859 Gift & Donations 122,433134,96186,337 Trial Improvement 10,11619,71611,316 One Percent for Arts 51,913122,04466,000 Conference Center 2,058,8652,376,1171,740,306 Total Special Revenue25,809,56830,447,11525,296,405 ARTERIAL STREETS Special Revenue Fund - 101 Function Description: The Arterial Streets Fund is managed by the Engineering Division of the Public Works and Utilities Department as a dedicated capital construction fund for the purpose of making capital improvements to the City’s arterial street system. As a standard policy, most of these funds are leveraged as match for federal highway grants for new construction identified in the Transportation Improvement Plan. Approximately 25% of gas tax revenue is set aside each year for maintenance overlays on arterial streets. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 6,220,104 6,841,144 7,403,412 7,478,327 Taxes0000 Licenses & Permits 0000 Intergovernmental717,0202,069,445 7,438,415 5,679,500 Charges for Services 00 Fines & Forfeits 0000 Other Revenue 300,503406,089440,000140,000 TOTAL 7,237,627 9,316,677 15,281,827 13,297,827 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel405,333103,20820,2500 Supplies, Services & Taxes 924,3991,597,395 307,25027,500 Capital Expenditures (933,249)212,6617,476,000 5,792,000 Debt Service 00 Transfers 00 Ending Fund Balance 6,841,144 7,403,412 7,478,327 7,478,327 TOTAL 7,237,627 9,316,677 15,281,827 13,297,827 Staffing Level 5.064.124.124.12 Budget and Program Highlights: The following is a list of transportation system capital improvement projects which are scheduled to be planned, designed and/or constructed in 2008: •Complete Navy Yard Highway Phase 1-D of the SR 304 project C •onstruct pedestrian improvements on Harlow Drive •Provide an annual upgrade of traffic signal equipment •Complete annual maintenance overlays on arterial streets •Provide technical assistance to the Public Works Operations Manager th •Begin design of 11 Street and Warren Avenue improvements Recent Accomplishments: • Began construction of Navy Yard Highway Phase 1-D • Completed Auto Center Way • Completed Warren Avenue off-ramp • Design and construct Phase I of Pacific Avenue improvements • Completed annual overlays for arterial streets Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Sustainable funding Develop a funding source for Implement car tab 2007- Maintenance Funding stream for streets streets maintenance initiative 2008 maintenance InitiativeOutcome Funds available for 2007- th Capital Funding Funding for 11 & Warren Receive funding ROW acquisition & 2008 construction 2009-2013 Budgetary Considerations: •Increase street maintenance activities based on new funding source •Pursue funding for projects on the Transportation Improvement Plan. The first two projects are Arsenal Way th improvements and 11 and Warren intersection improvements. STREETS Special Revenue Fund - 102 Mission Statement: To perform all necessary functions of maintenance, as spelled out by function description, to serve the citizens and working staff of Bremerton to make this a model community where people would be willing to live in and raise their families. Function Description: The Maintenance Operations of Public Works and Utilities Department is comprised of three divisions: Streets, Electronics, and Traffic. Under the Special Revenue Fund 102, the Street & Traffic Divisions are charged with the responsibility of maintaining the streets, sidewalks, right-of-way structures, and facilities as nearly as possible in its original condition as constructed or subsequently improved. This includes snow and ice control, abatement of hazardous properties, and other project work as directed. The Electronics Division is responsible for the maintenance of City and contracted traffic signals, street lighting, telephone and radio communications systems, water fountain & pumping systems, and electrical maintenance of all City owned facilities. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 214,046386,505289,054170,000 Taxes399,703313,781360,000645,000 Licenses & Permits 00 Intergovernmental531,600590,031610,503610,000 Charges for Services 369,071489,483344,300344,250 Fines & Forfeits 00 Other Revenue 1,251,402 1,301,063 1,830,134 1,681,500 TOTAL 2,765,822 3,080,063 3,433,991 3,450,750 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel1,262,674 1,333,141 1,649,949 1,738,157 Supplies, Services & Taxes 1,095,643 1,296,061 1,433,989 1,606,400 Capital Expenditures 0108,037204,101105,708 Debt Service 21,00021,00048,6340 Transfers 00 Ending Fund Balance 386,505322,62497,318485 TOTAL 2,765,822 3,080,863 3,433,991 3,450,750 Staffing Level 19.8019.4919.9919.99 Budget and Program Highlights: •Work with the public, Mayor, Council, Public Works Director, and Engineering staff to adopt a local car tab for the street asphalt overlay program to increase the overall rating of the street system to an acceptable level. •Establish a program to replace aging traffic light system to meet the demands of the growing community. •Work towards completing the software programming to control record keeping of maintenance, billing and inventory systems through Cartegraph. • Establish a program in coordination with the Parks Department to regularly clean the Harborside Plaza, Louis Mentor Boardwalk, City-owned Harborside parking garage, and sidewalks to improve the appearance of downtown. Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Supportive Transportation, with Seamless, Efficient and Varied Choices InitiativeOutcome Implement sustainable funding source for Street Maintenance and Provide Adequate Revenues for Long Term Funding Approval of Funding 2008 Overlay Program – Phase II of Core City Infrastructure Needs SourceMechanism and Plan Neighborhoods Now Plan Supportive Transportation, with Seamless, Efficient and Varied Choices InitiativeOutcome Revitalized Bremerton Implement Expanded Sidewalk Approval of Levy LID Neighborhoods – Safe, Healthy, Plan Implementation 2008 Improvement Program Lift by Voters Attractive Neighborhoods 2009-2013 Budgetary Considerations: •Replace aging traffic signal software system. •Begin a program to replace 5 traffic signal intersections control equipment each year for the next 6 years. •Acquire funding to add additional staff to both Electronics staff & Traffic Shop. •Add 10-ton used asphalt roller to equipment fleet for better performance of asphalt overlays. •Replace aging “red” LED signal heads for traffic signal (2year program). •Replace green lamps to green LED signal heads and reduce power consumption by 30%. •Add portable pressure washer to equipment for maintenance needs. STREET BUDGET BREAKDOWN 20072008 DESCRIPTIONBUDGETBUDGET ELECTRONICS Personnel306,450258,274 Supplies & Services185,700193,668 TOTAL EXPENDITURE 492,150451,942 ROADWAY Personnel492,255493,979 Supplies & Services657,751846,040 TOTAL EXPENDITURES 1,150,0061,340,019 SIDEWALKS Personnel75,15075,062 Supplies & Services26,9745,000 TOTAL EXPENDITURES 102,12480,062 STREET LIGHTS Personnel11,70015,366 Supplies & Services301,000317,500 TOTAL EXPENDITURES 312,700332,866 TRAFFIC CONTROL Personnel359,550333,565 Supplies & Services145,018155,316 TOTAL EXPENDITURES 504,568488,881 PARKING FACILITIES Personnel5,17510,244 Supplies & Services5001,000 TOTAL EXPENDITURES 5,67511,244 SNOW & ICE CONTROL Personnel18,90055,710 Supplies & Services3,0005,000 TOTAL EXPENDITURES 21,90060,710 ROADSIDE Personnel76,50055,021 Supplies & Services5,5004,500 TOTAL EXPENDITURES 82,00059,521 STREET BUDGET BREAKDOWN 20072008 DESCRIPTIONBUDGETBUDGET ANCILLARY Personnel60,210157,248 Supplies & Services42,5870 TOTAL EXPENDITURES 102,797157,248 ADMINISTRATION Personnel203,559208,608 Supplies & Services61,85974,176 TOTAL EXPENDITURES 265,418282,784 TRAINING Personnel20,70032,703 Supplies & Services4,0004,000 TOTAL EXPENDITURES 24,70036,703 COMMUNITY EVENTS Personnel19,80042,377 Supplies & Services100200 TOTAL EXPENDITURES 19,90042,577 DEBT SERVICE Principal46,7630 Interest1,8710 TOTAL DEBT SERVICE 48,6340 CAPITAL 204,101105,708 ENDING BALANCE 97,318485 TOTAL EXPENDITURES 3,433,9913,450,750 CONTINGENCY RESERVE Special Revenue Fund - 103 Function Description: This Fund was established as a special revenue fund to protect the City’s General Fund in the event of unforeseen and unfunded emergency requirements. This fund shall maintain a minimum balance of $1,000,000. Proceeds from all General Fund real property shall be deposited into this fund. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 774,1252,260,596 2,079,107 1,591,983 Taxes0000 Licenses & Permits 0000 Intergovernmental0000 Charges for Services 0000 Fines & Forfeits 0000 Other Revenue 1,530,451 2,542,322 977,65050,000 TOTAL 2,304,576 4,802,918 3,056,757 1,641,983 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel00 Supplies, Services & Taxes 43,9800 Capital Expenditures 00 Debt Service 00 Transfers 2,723,811 1,959,774 285,000 Ending Fund Balance 2,260,596 2,079,107 1,096,983 1,356,983 TOTAL 2,304,576 4,802,918 3,056,757 1,641,983 Staffing Level 0.000.000.000.00 Budget and Program Highlights: •The 2008 budget does not anticipate any receipts from the sale of General Government real property. •Transfers out for 2008 include: •$35,000 to Parks Facilities & Construction Fund (Fund 310) - Portion of the net proceeds from West Hills Precinct sale concluded in 2007 to be used for preliminary design and planning of parks maintenance building project. •$250,000 to Boardwalk Project (Fund 311) - Proceeds from the sale of Capital Hill Fire Station which closed in 2007. Recent Accomplishments: • In 2007, funds were transferred in the amount of $500,000 which was used to retire in full the remaining balance of the Conference Center Line of Credit debt obligation. • An analysis and recommendation on the appropriate minimum level to maintain in the Contingency Reserve Fund was completed in 2007. The City Council, by Ordinance No. 5021, increased the minimum Contingency Reserve Fund balance from $500,000 to $1,000,000 on August 15, 2007. • The Contingency Reserve Fund has remained at or above the required minimum level during 2007 and is projected to continue exceeding the minimum requirements throughout 2008. Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Efficient, Accountable and Financially Responsible City Governance InitiativeOutcome Develop a plan and recommend Recommendation on Assure most efficient use of Adoption and staffing levels for General Fund organizational assignment 2008 City resources implementation of plan property management and staffing 2009-2013 Budgetary Considerations: The expenditure of Contingency Reserve funds for capital purposes that is in excess of $1,000,000 is at the discretion of City Council. CIVIC IMPROVEMENT Special Revenue Fund - 104 Function Description: This Fund was established as a special revenue fund for the collection and expenditure of Lodging Taxes as provided under Chapter 67.28.180 RCW. These funds may be used for stadium facilities, convention center facilities, performing arts facilities, visual arts centers and the promotion of tourism. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 96,062161,844238,000123,500 Taxes317,825333,577300,000335,000 Licenses & Permits 00 Intergovernmental00 Charges for Services 00 Fines & Forfeits 00 Other Revenue 10,0397,5785002,000 TOTAL 423,926502,999538,500460,500 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel00 Supplies, Services & Taxes 145,778148,696145,114304,000 Capital Expenditures 00 Debt Service 16,30416,30459,8860 Transfers 100,000100,000180,000155,000 Ending Fund Balance 161,844237,999153,5001,500 TOTAL 423,926502,999538,500460,500 Staffing Level 0.000.000.000.00 Budget and Program Highlights: The Lodging Taxes collected and receipted in the Civic Improvement Fund shall be used and distributed for 2008 as provided below: •City of Bremerton Conference Center - $155,000 •Admiral Theatre - $90,000 •Remainder ($214,000) recommended by the Lodging Tax Advisory Committee to be allocated as follows: •Bremerton Symphony -$25,000 •Historic Ships - $10,000 •Historical Museum - $19,428 •Washington State Science & Engineering Fair - $10,900 •Kitsap Visitor & Convention Bureau - $20,000 •Bremerton Chamber of Commerce - $47,600 •Admiral Theatre - $40,000 •Sports Council - $2,500 •City of Bremerton (Funding for a Consultantto Develop a Marketing Plan) - $38,572 Recent Accomplishments: • Completed updates to the City policy and procedures for the lodging tax allocation process and requirements. • Completed updates to the Lodging Tax Allocation Committee rating criteria and process for application review. Revised process and criteria were utilized in the development of the recommendations for the 2008 budget allocation. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Hold a Mid-Year Allocation Increased Ongoing Committee Meeting to Follow-up Improved Communications and Participation of Meeting 2008 and Check Status of Projects Follow-Through Committee Members Funded InitiativeOutcome In Coordination with the Better Guidance on Where Comprehensive Marketing Economic Development Resources are likely to be Most Development for Completion of Plan 2008 Department – Hire a Consultant to Effective in Increasing Tourism Bremerton Prepare a Marketing Plan in Bremerton 2009-2013 Budgetary Considerations: The revenue from lodging taxes has been growing as a result of increased tourism activity in Bremerton. It is anticipated that capital programs such as the Harborside Park and private investment in the downtown area will further increase the revenues from lodging taxes in the future. Long-term ongoing fund utilization is expected annually for the Admiral Theatre for operations ($90,000/year) and for the Kitsap Conference Center ($155,000/year). Other uses of lodging taxes outside of these ongoing commitments vary from year-to-year based upon applications received and approved by the review committee and the availability of funds. PARKING SYSTEM OPERATING Special Revenue Fund - 105 Function Description: This Fund was established as a special revenue fund to account for the receipt of revenues and expenditures for all th of the City’s parking facilities and lots comprised of the City 4/Washington Parking Garage, Conference Center Parking Garage, Fifth and Park lot and the Craven lots, all metered on-street parking in the City, and all fees collected from parking violations. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 295,427301,557249,983158,228 Taxes00 Licenses & Permits 00 Intergovernmental00 Charges for Services 2,0551,7701,5001,500 Fines & Forfeits 271,031341,947340,000340,000 Other Revenue 1,626,191 1,654,916 1,757,000 1,757,000 TOTAL 2,194,704 2,300,191 2,348,483 2,256,728 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel10,7732,91643,15539,220 Supplies, Services & Taxes 523,352514,205559,000596,229 Capital Expenditures (3,668)71,84778,50015,500 Debt Service 00 Transfers 1,362,690 1,461,238 1,529,600 1,591,600 Ending Fund Balance 301,557249,984138,22814,179 TOTAL 2,194,704 2,300,191 2,348,483 2,256,728 Staffing Level 0.000.000.490.49 Budget and Program Highlights: •Collect revenues from all of the City’s parking operating system, including metered on-street parking, parking garages and lot parking violations. •Manage and oversee theContract for parking enforcement services and maintenance, management and security services for the City’s parking garages and other related costs of operating the parking system. •Record and pay FY 2008 principal and interest debt payments on the Conference Center Parking Garage weekly demand revenue bonds. •Use real estate excise revenues transferred in from the General Government Capital Improvement Fund to pay principal on the Conference Center Parking Garage debt plus a portion of the interest payment. •Assess and review the adequacy of lighting in City parking lot areas and recommend changes as needed for the next Capital Improvement Plan update. Recent Accomplishments: • Completed cost sharing discussions with substantive agreement reached with agencies that use the Conference Center Parking Garage. Agreed understanding is expected to be incorporated into revised and updated agreements before the end of 2007. Agreement provides cost recovery of expenditures made by the City - which benefit other users of the facility. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Complete an Inventory and Report and Assessment Assessment of Current City Efficient Planning for Future Proactive Determination Completed and 2008 Parking Assets - Considering Needs of Future Needs Submitted to Financial Future Anticipated Demand/Need Services Director 2009-2013 Budgetary Considerations: The Parking System has a requirement to provide for the debt service obligation of the Conference Center Parking garage after first covering normal operating and maintenance expenses of the system. A review and recommendation on the adequacy of City parking assets will be prepared in 2008 which should provide greater insight into future periods budget considerations - particularly as it relates to improvements and additions that should be planned for. COMMUNITY DEVELOPMENT BLOCK GRANT Special Revenue Fund - 106 Mission Statement: To work with the community to administer Federally funded programs with the goal of making Bremerton a place of social, economic, and physical health. Function Description: The City receives three types of annual funding from the US Department of Housing and Urban Development (HUD): Community Development Block Grant (CDBG) for community projects that primarily benefit low income people, HOME funds for affordable housing, and Shelter Plus Care funds to serve homeless individuals suffering from substance abuse, mental illness, or both. The City also maintains a portfolio of loans made to low income homeowners at subsidized interest rates. Income from these loans and the HOME program provide an ongoing program for income qualified first time homebuyers and homeowners within the City of Bremerton. Two staff persons are fully funded by these programs and are charged with carrying out the compliance and public information requirements mandated by Federal regulations. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 1,368,879 1,419,387 513,0820 Taxes00 Licenses & Permits 00 Intergovernmental1,460,448 906,9921,166,356 1,074,828 Charges for Services 329,580218,433150,000150,000 Fines & Forfeits 00 Other Revenue 30,39567,90323,00041,000 TOTAL 3,189,302 2,612,715 1,852,438 1,265,828 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel145,844141,347160,778149,698 Supplies, Services & Taxes 1,344,680 1,449,572 1,473,360 967,076 Capital Expenditures 0 Debt Service 0 Transfers 279,391508,715218,300100,000 Ending Fund Balance 1,419,387 513,08249,054 TOTAL 3,189,302 2,612,715 1,852,438 1,265,828 Staffing Level 2.002.002.002.00 Budget and Program Highlights: CDBG and HOME funds are allocated through an annual competitive cycle. A Citizens Advisory Committee (CAC) reviews the applications, interviews the applicants, and provides a list of recommended funding priorities for the City Council. The Council is responsible for the ultimate funding decisions. HOME funded projects may also be initiated by the City through an RFP process. These projects will be presented at a Public Hearing at the City Council. The Council votes on City-initiated HOME projects individually and may not involve the input of the CAC. Residential loan applications are also accepted throughout the year, and are approved as funding is available. Shelter Plus Care funds are renewed annually in February. Recent Accomplishments: •Completed construction of the new KCR Services Center •Completed security improvements for the Bremerton Foodline facility •Began improvements to Eastpark and Jarstad Pool facilities serving low income populations •Provided a variety of vital services to Bremerton’s low income population throughout the year assisting: •Approximately 3,300 children and youth with childcare, after-school programs, abuse intervention •More than 13,600 individuals risking or experiencing homelessness •The elderly and disabled with home delivered meals, vital home repair, and ADA sidewalks •More than 155 prospective business owners with counseling and seminars •Initiated a small grants program to empower neighborhoods to improve their surroundings •Implemented and funded an improved vital home repair program for Bremerton homeowners Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Maintain and fund a quality Vital Safe housing for long time, Number of projects Projects completed (10) 2007 Home Repair Program low-income homeowners completed or underway InitiativeOutcome Partner with the Washington State Increased DPA to meet a Purchase by first time Housing Finance Commission for changing real estate market; homebuyer enabled with Number of home matching funds for the Down Increased home ownership in City support purchases enabled or 2007 Payment Assistance Program the City Low-Income (7) underway by program Moderate Income (3) InitiativeOutcome Encourage more purchase/ Rise in quality of the City’s Number of units in Upgraded units preserved rehabilitation projects with the rental housing stock while upgraded condition and 2008 as affordable housing (20) City’s HOME funds affordability is maintained preserved as affordable InitiativeOutcome Ensure that CDBG projects Closer adherence to HUD Continued community implement the goals and objectives regulations; better chances for Future HUD funding 2007 support for program of the Consolidated Plan ongoing funding in the future InitiativeOutcome Formulate and implement new Deeper understanding of A well documented, tools to better guide the CAC Consolidated Plan and strategic integrated and Continued community towards higher quality, deliberate use of funding to more fully deliberate 2007 support for program funding recommendations meet needs of the community recommendation process InitiativeOutcome Encourage projects that leverage Bigger, better projects with Higher quality projects Number of higher more matching funds from other more outside funding for with leveraged outside quality projects with 2008 public and private sources Bremerton, to stretch limited funding (5) leveraged funding HUD entitlement funding InitiativeOutcome Maintain ongoing HUD McKinney Continued services for local Fewer mentally ill or Steady number of funding for the Shelter Plus Care mentally ill and chemically chemically dependent graduates successfully 2007 Program.dependent homeless people. homelesscompleting the program InitiativeOutcome Projects completed by the Number of projects Administer a Neighborhood Community projects that unite community (4); number of completed by Enhancement Program, and plan 2007 and beautify neighborhoods new communities community future funding plan involved (3) 2009-2013 Budgetary Considerations: The City expects to continue to receive consistent Federal funding for the CDBG, HOME and Shelter Plus Care programs over the next five years, though a slight decrease may occur each year. The Consolidated Plan was updated in Fall 2005 to set priorities for the funding received. While funding is expected to be consistent or slightly reduced, the need for services continues to grow; therefore, the City continues to value projects that leverage other funding sources, both public and private, in order to ensure maximum benefit to the community. The City of Bremerton Block Grant program administration (staff payroll, benefits, operating expenses) is currently fully funded with a maximum allowable percentage of the City’s annual CDBG (20%), HOME (10%), and S+C (2%) entitlements. These, together with a portion of Program Income receipts, have been stretched to near capacity, as the City’s entitlement continues to decrease and administration costs continue to rise. For 2008 the Block Grant Program hopes to include City general funds to help bridge the gap. The City continues to administer loan programs to low income homeowners in the City of Bremerton which provide program income. Federal regulations prohibit the practice of setting aside large amounts of program income as a revolving loan fund; rather the income shall be reallocated to eligible projects in annual funding cycles. For the City, this means spending down program income in advance of entitlement income and allocating all available financial resources. The Department of Housing and Urban Development measures the City’s CDBG Program for timeliness. Primary Jurisdictions, like Bremerton, can only have 1½ times their annual entitlement and program income in nd reserve on the benchmark date of November 2 each year. A greater reserve places the City at risk of recapture of funds or loss of future funding; therefore the timely completion of CDBG and HOME funded projects is vital. ABATEMENT REVOLVING Special Revenue Fund - 108 Mission Statement: To work with diverse elements of the community to develop the City of Bremerton as a socially, economically and physically healthy City by providing collaborative processes and responsive services that achieve the community’s desired future. Function Description: This fund was established as a source of funding for carrying out repair, demolition or removal of conditions which are subject to abatement under the City’s building, fire, zoning, and nuisance ordinances. Sources of funds include all collections under abatement proceedings, fines and penalties levied by the City’s administrative hearing examiner, interest earnings, and periodic transfers from the General Fund. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 101,08761,873137,575137,575 Taxes000 Licenses & Permits 000 Intergovernmental000 Charges for Services 15,18358,07314,50019,500 Fines & Forfeits 000 Other Revenue 168,73721,99420,00020,000 TOTAL 285,007141,940172,075177,075 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel3,0005,617 Supplies, Services & Taxes 5,1804,36531,50034,500 Capital Expenditures 00 Debt Service 217,9540 Transfers 00 Ending Fund Balance 61,873137,575137,575136,958 TOTAL 285,007141,940172,075177,075 Staffing Level 0.000.000.000.00 Budget and Program Highlights: To further the City’s focus to make Bremerton a great place to raise a family and to create a community of safe, healthy neighborhoods, code enforcement must shift from the current complaint-based operation to a more violation-based program in order to foster improvement in the condition of Bremerton’s neighborhoods. This will potentially result in more abatement actions. Recent Accomplishments: • Filed another lawsuit to compel cleanup of Sesko Arsenal Way site; • Prevailed in the Court of Appeals for $18,000 lien for demolition of structures on Sesko Werner Road site; • Prevailed in all 17 Hearing Examiner hearings (January through August). Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Safe, Healthy, Livable Neighborhoods InitiativeOutcome Establish Multi- Apply a Holistic Department Increase Emphasis on Property Improved Neighborhood Compliance Team and 2007 Interdepartmental Maintenance – Code Enforcement Environments Compliance Strategy Set Target Area Priorities 2009-2013 Budgetary Considerations: Future annexations will likely result in increased code enforcement activities, particularly in those areas that developed under less stringent codes and have existed under lower levels of scrutiny for compliance with property maintenance and safety codes. POLICE SPECIAL PROJECTS Special Revenue Fund - 110 Function Description: This fund was created to account for monies and proceeds from the sale of property seized during drug investigations and forfeited pursuant to state and federal law. This fund has also been established for the purpose of accumulating funds for expansion and improvement of law enforcement services. Money retained under this fund may not be used to supplant pre-existing funding sources. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 192,390194,335441,896329,896 Taxes00 Licenses & Permits 00 Intergovernmental00 Charges for Services 00 Fines & Forfeits 27,11743,03035,00037,000 Other Revenue 79,826254,68790,000115,000 TOTAL 299,333492,052566,896481,896 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel00 Supplies, Services & Taxes 100,59950,157142,000160,600 Capital Expenditures 4,39845,00045,000 Debt Service 00 Transfers 050,0000 Ending Fund Balance 194,335441,895329,896276,296 TOTAL 299,333492,052566,896481,896 Staffing Level 0.000.000.000.00 Budget and Program Highlights: •This program utilizes sufficient funds for the purchase of illicit narcotics, drugs and controlled substances during drug investigations. All such purchases will be affected under the auspices of a commissioned police officer. •Procure designated law enforcement training, equipment and maintenance and the purchase and maintenance of vehicle fleet and fuel. •Provide sufficient operational cash flow. Recent Accomplishments: • Managed 312 incidents/investigations for 2006 • Arrested and charged 136 individuals with felony crimes in 2006 • Street value of narcotics purchased or seized in 2006 in excess of $315,942 nd • Initiated 134 new cases through 2 quarter of 2007 Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Quick turnover Officer safety Replace vehicles that are Continued growth of U/C vehicle Provide quality U/C vehicles Cost effective no used in undercover 2008 programand ability to rotate same vehicle replacement operations as needed cost or maintenance costs InitiativeOutcome Maintain ability to address Arrest and prosecute Ability to run U/C operations with community issue that require felony drug cases and Numerical value 2008 sufficient cash flow undercover and covert other cases as assigned operations InitiativeOutcome Provide quality operational Quality of Purchase high end equipment not Meet all operational equipment and officer safety investigations and 2008 supported by General fund needs. equipment as needed officer safety 2009-2013 Budgetary Considerations: Sustained revenue or fund balance growth are needed to fund drug operations, maintain a functional fleet of vehicles; keep current with technological changes in covert surveillance equipment and to keep our officers outfitted with quality tactical ballistic gear. This is equipment of high cost and normally not funded by the general fund. BREMERTON KITSAP ACCESS TELEVISION Special Revenue Fund - 113 Mission Statement: Bremerton Kitsap Access Television (BKAT) provides non-commercial television to the citizens of Kitsap County. BKAT provides the opportunity for Public, Local Government Agencies and Educational institutions to produce community programming that informs, entertains, and responds to the public interest in the cable service environment. Function Description: BKAT is a Public, Education and Government (PEG) channel provided to the citizens of Kitsap County through franchise agreements with local cable providers. BKAT provides PEG programming on the cable system in the City of Bremerton and Kitsap County. BKAT provides training to the public in television production. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 10,24643,073(8,997)7,275 Taxes40,03839,443150,010240 Licenses & Permits 0145,342249,300 Intergovernmental82,088107,2410 Charges for Services 102,065125,057105,95591,794 Fines & Forfeits 00 Other Revenue 5781,871151,00011,250 TOTAL 235,015316,686543,310359,859 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel168,535203,711217,486230,049 Supplies, Services & Taxes 23,40867,04857,19747,808 Capital Expenditures 054,924241,35255,000 Debt Service 00 Transfers 020,00025,000 Ending Fund Balance 43,073(8,997)7,2752,002 TOTAL 235,015316,686543,310359,859 Staffing Level 1.002.002.002.00 Budget and Program Highlights: The program highlights for 2008 include new revenue expectations from the conclusion of the City’s Cable Franchise agreement with Comcast. Key program initiatives for 2008 include significant capital re-investment, improved contract/volunteer programs and BKAT marketing efforts. Program Highlights include: •Videotape for broadcast for Kitsap County: Board of County Commissioners, Hearing Examiner and Planning Commission meetings and other programs as requested. •Videotape for broadcast for the City of Bremerton: City Council meetings, Mayor’s Roundtable and Inside Bremerton, Mayor’s Town Hall Meetings, and other programs as requested. •Video tape for broadcast for the City of Poulsbo: City Council meetings and other programs as requested. •Video tape for broadcast for the City of Port Orchard: City Council meetings and other programs as requested. •Implement elements identified in the BKAT business plan for 2008 specifically: •Develop marketing materials and begin implementation of marketing actions identified in the BKAT business plan. The objective of this effort is to seek and attract new participants on the system, raise public awareness of programs on BKAT through training, marketing and resources to the community, obtain donations and sponsorships and to recruit volunteers. •Develop a more robust cadre of volunteers to assist in providing services to the community. •Complete theexpansion of the Tibardis Road building and relocate the BKAT production studio from it’s current location at the Comcast building on Sylvan Way to Tibardis. Ensure head end connectivity is completed at Tibardis and relocate playback equipment there as well. Work requires coordination with Kitsap County. Recent Accomplishments • Comcast Cable Franchise agreement successfully concluded in June 2007 - provides capital funding and franchise agreement fees provide for ongoing BKAT operational expenses as well as General Fund expenses associated with Franchise administration. Funding for a studio relocation was provided by Comcast in order to facilitate the City moving the studio and playback equipment out of the Comcast building on Sylvan Way. • Completed an agreement with Kitsap County permitting the City to make leasehold improvements to the County’s building on Tibardis Road and providing for an extended period of usage by BKAT in order to ensure recovery of capital invested in the expansion. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Community will be more aware More involvement and Sponsorships Develop Marketing Program 2008 of BKATexcitement in BKAT recognized in programs InitiativeOutcome Additional revenue for Commitments form Secure sponsorships Sponsorship $$ 2008 operationssponsors InitiativeOutcome Larger pool of staff for Volunteer/Contractor Team Larger Production team Increase the pool to 7 2008 productions 2009-2013 Budgetary Considerations: Significant equipment upgrading is planned for 2007 and will continue into 2008 for the purposes of replacing aged and deteriorated equipment, upgrading to digital formats, and providing for significant labor savings by allowing administration and playback to occur from one location with less manual processes and significantly reduced staff time associated with the current practice of having to travel to the studio location several times a week to perform these functions. The identified efficiencies and the greater use of volunteers are expected to improve operations, flexibility and quality of productions. BKAT intends to continue using contract labor through a cadre of production staff to help with workloads as needed - but the usage will vary and be driven by increased business needs and limited to production activities. These business changes and actions are vital to the long term sustainability of BKAT. GIFT AND DONATION Special Revenue Fund - 114 Function Description: This Fund was established as an expendable trust fund for the purpose of accepting gifts and donations on behalf of all departments of the City as authorized by RCW 35.21.100. The fund shall receive donations, memorials, bequests and other contributions made to the City by citizens and organizations. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 82,56283,887100,11182,937 Taxes00 Licenses & Permits 00 Intergovernmental00 Charges for Services 1,1825500 Fines & Forfeits 00 Other Revenue 17,63537,36434,3003,400 TOTAL 100,197122,433134,96186,337 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel0 Supplies, Services & Taxes 16,31022,32252,02421,000 Capital Expenditures 0 Debt Service 00 Transfers 010,000 Ending Fund Balance 83,887100,11182,93755,337 TOTAL 100,197122,433134,96186,337 Staffing Level 0.000.000.000.00 Budget and Program Highlights: Fire The Fire Donation fund is used to receive donations from constituents for the purchase of capital equipment other than vehicles, medical supplies, training courses for the public and other emergency medical aid purposes recommended by the employees’ advisory committee and approved by the Fire Chief. This fund is established under BMC 3.26.400. Parks and Recreation The Parks and Recreation Department is committed to enriching the lives of Bremerton citizens with aquatic, athletic and recreational opportunities for persons of all ages and provide safe, attractive parks and facilities for play, health and fitness, and celebrations. The Department receives donations from a variety of sources. Most of these donations are earmarked by the donor for specific uses either for programs or for capital improvements. This fund enables the Department to receive and expend donated funds. The Department also offers scholarships for patrons who cannot afford regular class or program fees. According to Department policy, the Scholarship fund subsidizes the patron according to their income level. •To provide a vehicle for individuals and organizations to donate funds to support programs and projects of their choice. •To offer funding assistance to patrons who are not able to afford class or program fees according to the Department policy. Police The Police Department receives donations for law enforcement equipment and services. Funds has been donated to support the K-9 program and equipment needs. Miscellaneous Donations to the City or administered by the City of an ad hoc or non-recurring nature. Fund Initiatives: GOAL OR Measurement DEPARTMENTAL GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome To purchase capital equipment To allow for a minimum other than vehicles, medical To allow for additional of six (6) CPR classes for Number of classes supplies, training courses for the the public equipment, training for the 2008 public and other emergency public and first responders not To allow paramedics to medical aid purposes not allowed allowed in the budget process attend classes above and Number of classes in the budget beyond the normal classes InitiativeOutcome Work with Service Clubs - Lions Increased awareness and Speak to service clubs and Rotary, Kiwanis to tell our story donations to assist in park 5 Club presentations 2008 other similar groups and publicize park needs programs and capital projects InitiativeOutcome Contingency planning for Provide continued narcotic Timely purchase of a Police K-9 team replacement of aging police dogs and/or tracking dog services to suitable police dog 2008 accreditation should need arise the community candidate 2009-2013 Budgetary Considerations: In aggregate the fund should continue to see small sustained donations and expenses. TRIAL IMPROVEMENT FUND Special Revenue Fund - 116 Mission Statement: The Trial Improvement Fund is dedicated solely to fund improvements to the municipal court’s staffing, programs, facilities, or services. Function Description: Municipalities with an elected judge who is compensated at a rate equivalent to at least ninety-five percent, but not more than one hundred percent, of a district court judge receive an apportionment from the State Administrator for the Courts for court improvements. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 10,1161,716 Taxes0 Licenses & Permits 0 Intergovernmental10,0479,6009,600 Charges for Services 0 Fines & Forfeits 0 Other Revenue 690 TOTAL 10,11619,71611,316 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel0 Supplies, Services & Taxes 3,0000 Capital Expenditures 15,0000 Debt Service 0 Transfers 0 Ending Fund Balance 10,1161,71611,316 TOTAL 10,11619,71611,316 Staffing Level 0.000.000.00 Budget and Program Highlights: 2007 focused on the augmentation of security equipment for the temporary court facility. This included the purchase of a stationary scanner that is located at the front door of the facility as well as a hand wand. This equipment enables court security to check every person that enters the court facility for objects that could cause a potential hazard. The focus for the 2008 budget will be to increase security as well as bring the second courtroom up to a fully functional state, while continuing to build a modest fund balance. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Develop recommendation of trial Efficient use of allocated Refined budget Plan for expenditures 2007 improvement priorities resourcesdefinition 2009-2013 Budgetary Considerations: Revenue will ramp up in succeeding years providing a needed source of funds to equip and provision the new court facility. In addition to this, the court will continue to focus on court security, equipment, and new technologies. ONE PERCENT FOR ARTS Special Revenue Fund - 117 Mission Statement: To enhance the quality of life for the residents of Bremerton by expanding their experiences with the arts through Public Art. Function Description: One percent of the costs related to the new construction of City projects (generally exclusive of utilities, equipment purchases and roadways) are dedicated to public art. The program is administered by the Arts Commission supported by the Department of Community Development. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 51,91333,980 Taxes00 Licenses & Permits 00 Intergovernmental00 Charges for Services 00 Fines & Forfeits 00 Other Revenue 51,91370,13132,020 TOTAL 51,913122,04466,000 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel0 Supplies, Services & Taxes 1,000750 Capital Expenditures 70,00064,000 Debt Service 0 Transfers 0 Ending Fund Balance 51,91351,0441,250 TOTAL 51,913122,04466,000 Staffing Level 0.000.000.00 Budget and Program Highlights: The primary objective is to operationalize the Arts Commission receipt of one percent of qualified construction costs and begin the process of selecting art. The Commission began meeting in February 2006 and has been growing as an organization. Recent Accomplishments: Developed Advertisement Developed & Signed First Postcard Artist Contract •The Commission developed policies and procedures for advertising “artist calls” and was successful in having artist responses to the call for artists for the Art Morken Building. •The Commission developed a standard artist contract. •The Commission selected two artists, J.D. Francis and James Kelsey, to create artwork for the Art Morken Building. The artist contracts were signed in September 2007. •During the year the Commission worked to develop an Arts Master Plan and hopes to present a draft to the City Council in 2008. This plan will help identify key areas in the city where public art can be placed. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Establish public art selection Enhanced visual interest of new Install art on two projects Dedication of Art 2007 processCity capital projects 2009-2013 Budgetary Considerations: The Commission will work with the Boardwalk project team to identify opportunities for public art and ensure that art is integrated as part of the project proposal. The creation of the Arts Master Plan (currently in development) will identify key areas where public art can be placed and where opportunities exist to integrate public art with the City’s capital investments. CONFERENCE CENTER Special Revenue Fund - 120 Function Description: This special revenue fund was established to account for and fund the contracted operations of the Kitsap Conference Center at Bremerton Harborside as well as the maintenance and improvements to the Harborside facility. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 173,84984,642191,735177,467 Taxes00 Licenses & Permits 00 Intergovernmental00 Charges for Services 1,122,132 1,334,546 1,226,382 1,301,839 Fines & Forfeits 00 Other Revenue 203,678639,677958,000261,000 TOTAL 1,499,659 2,058,865 2,376,117 1,740,306 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel77,122104,109146,606117,556 Supplies, Services & Taxes 1,308,919 1,410,145 1,500,794 1,531,513 Capital Expenditures 21,92545,00050,000 Debt Service 28,976330,951506,2500 Transfers 0 Ending Fund Balance 84,642191,735177,46741,237 TOTAL 1,499,659 2,058,865 2,376,117 1,740,306 Staffing Level 1.001.501.761.76 Budget and Program Highlights: The Conference Center is a discretionary program which was undertaken for the sole purpose of attracting visitors to the City of Bremerton and surrounding communities. In addition, the Conference Center was developed with the expectation that it would serve as a catalyst for the redevelopment of Bremerton’s waterfront and downtown core, providing a cornerstone to the long-term growth in Bremerton and Kitsap County. The facility is intended to increase local hotel occupancy and generate restaurant and retail business by attracting groups that will stay multiple days in the City - stimulating economic activity through the creation of jobs, tax revenues, and commercial activity. •2008 Sales Objectives: •Achieve an economic impact on the region of $2 million. •Increase multi-day conference business from the region by targeting King County Olympia, and Naval business. •2008 Marketing Objectives: •Maximize marketing opportunities jointly with downtown Bremerton businesses to promote the Conference Center and the Harborside District. •Increase awareness of Kitsap Conference Center at Bremerton Harborside as the premier waterfront conference, meeting, and social event venue in the West Sound through professional public relations activities. Recent Accomplishments: • Successfully retired all of the remaining Conference Center ($500,000) Line of Credit debt obligation in 2007. This fund no longer carries a continuing debt obligation. •Cost sharing with other plaza occupants (Kitsap Transit, Hampton, and Anthony’s) has been informally agreed to and is expected to be formally concluded via multi party contract/agreements - prior to the end of 2007. Costs to be reimbursed are a proportionate share of common area maintenance costs and waste receptacle area cleaning expense. • Expanded and remodeled the Oyster Bay Room in the main conference center building. Provides greater utility for the room and should enhance use and bookings. • Amended the Columbia Hospitality Agreement to include management of the operations of the recently opened Fountain Room at Harborside Park. • Amended the Columbia Hospitality Agreement in 2007 to attend to minor contract issues (housekeeping items) noted in a recent City of Bremerton internal audit process. Fund Initiatives: GOAL OR Measurement DEPARTMENTAL GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Develop Business & Operating Provide Excellence in Citizen Financial Plan Plan for the Conference Center Satisfaction While Reducing Incorporated into Development of Plan 2008 OperationsGeneral Fund Financial Support Adopted 2009 Budget 2009-2013 Budgetary Considerations: Current projections anticipate continued financial support to the Conference Center Operating Fund by the General Fund. Now that we have a few years of operational experience behind us, it is time to review the operations to consider appropriate alternative funding sources, potential operational changes, and chart a revised blueprint for the overall financial management of this critical City asset. This work was begun in 2007 with the completion of necessary cost sharing agreements between other plaza area occupants. Final completion of the revised financial plan and forecast for the Conference Center Operating Fund will occur allowing the analysis to include additional information as it becomes available on the usage and initial financial results of the recently opened Fountain View room in Harborside Park. INTRODUCTION Debt service funds are a category of funds intended to demonstrate the proper funding and repayment of general obligation and local improvement district debt obligations and the mandatory reserves associated with such debt. The 2008 budget includes 1 debt service fund: Bond Fund – established to account for the accumulated resources for the payment of principal and interest for various general obligation and local improvement district (LID) bonds. Revenue Bonds and other loans secured by revenues pledges are included in the Enterprise Funds that have undertaken those obligations. SUMMARY OF CITY DEBT City of Bremerton Direct Debt Obligations (As Of October 4, 2007) General Obligation Debt (Debt Service Funds): Voted General Obligation Bonds Outstanding $11,640,000 Non-Voted General Obligation Bonds Outstanding (councilmanic) 17,962,522 General Obligation Debt Balance $29,602,522 Revenue Bonds and Loans (Enterprise Funds): Revenue Bonds $10,993,811 Loans 30,647,575 Capital Leases 0 Revenue Bonds and Loans Balance $41,641,386 Total Direct Debt Outstanding $71,243,908 Debt management is an important component of the City’s financial management practices. Generally, debt financing is reserved for funding large capital projects. The public may vote to approve bond issues for general government in an amount not to exceed 2.5% of the assessed value of all taxable property within the City. Within that 2.5% limit, the City Council may approve bond issues in an amount not to exceed 1.5% of the City’s assessed valuation. Bremerton’s remaining debt capacity within the 2.5% limit is estimated to be $38,798,874. The public may also vote to approve park facilities and utility bond issues, each of which is also limited to 2.5% of the assessed valuation of taxable property within the City. ________________________________________________________________________ Debt Service Funds Overview Unlimited tax general obligation requires an approving vote of the people, and any election to validate such general obligation debt must have a voter turnout of at least 40 percent of those who voted in the last general election and at which 60 percent must vote favorably. The following Table outlines the City’s statutory debt capacity as of October 4, 2007. City of Bremerton Statutory Debt Limit Calculations (As Of October 4, 2007) 2006 Valuation for Collection Year 2007 $2,692,388,791 General Purposes: a. Non-Voted Indebtedness Limit (1.5% of Assessed Valuation) $40,385,832 Less: Non-Voted Bonds Outstanding (17,962,522) Plus: Assets Available for Debt Service 1,032,326 Remaining Capacity for General Purposes (Non-Voted) $23,455,636 b. Voted Indebtedness Limit (2.5% of Assessed Valuation) $67,309,720 Less: Voted Bonds Outstanding (11,640,000) Less: Non-Voted Bonds Outstanding (17,962,522) Plus: Assets Available for Debt Service 1,091,676 Remaining Capacity for General Purposes (Voted) $38,798,874 Utility Purposes (2.5% of Assessed Valuation) Limit $67,309,720 Less: Bonds Outstanding -0- Remaining Capacity for Utility Purposes $67,309,720 Parks and Open Spaces and Economic Development Purposes (2.5% of Assessed Valuation) Limit $67,309,720 Less: Bonds Outstanding -0- Remaining Capacity for Parks and Open Space Purposes $67,309,720 Revenue bonds may be issued to finance projects for any City enterprise that is self- supporting. These bonds may finance water, wastewater, Stormwater, and golf courses. Payment for debt service on revenue bonds comes from user fees and rates generated by the utility for which the capital facility is being built for. ________________________________________________________________________ Debt Service Funds Overview DEBT RELATED FINANCIAL GOALS & POLICIES The City of Bremerton Financial Goals & Policies describes specific provisions and expectations on the appropriate usage of debt in the conduct of the City’s financial operations. Key provisions of the goals and policies related to debt are as follows: Goals for Financial Sustainability (debt related items only) – Debt financing should be used to smooth the effects of unusual or significant amounts of capital expenditures and/or to finance facilities that are dedicated to the benefit of limited users (for example – Local Improvement District “LID”). Policy - Deficit financing and borrowing will not be used to support on-going City services and operations. Expenses will be reduced to conform to the long-term revenue forecast. Interfund loans are permissible to cover temporary gaps in cash flow, but only when supported by a clear expectation and schedule for repayment over a short duration of time (3 years or less) and with interest assessed based on the current Washington State Local Government Investment Pool rate. Long-term borrowing will be confined to significant capital improvements (or similar projects) which have an extended life and when it is not practicable to be financed from current revenues. All other available and appropriate sources of financing should be exhausted before long term borrowing is pursued. Bonds cannot be issued for a longer maturity schedule than a conservative estimate of the weighted average useful lives of the assets to be financed. The City will keep the average maturity of general obligation bonds at or below twenty years. Where possible, the City will use special assessment revenue, or other self- supporting bonds instead of general obligation bonds. The City Utility Systems shall strive to maintain a minimum debt service coverage (annual gross revenues less annual operating and maintenance expenses divided by annual debt service) of the combined Utilities (Water, Wastewater, Stormwater) of at least 1.5x. 2006 Actual2007 Budget 2008 Budget Bond Fund 2,423,152 2,460,786 2,444,726 Total Debt Service 2,423,152 2,460,786 2,444,726 ________________________________________________________________________ Debt Service Funds Overview BOND FUND Debt Service Fund - 201 Function Description: The Bond Fund was established as a debt service fund to account for the accumulation of resources for and the payment of principal and interest for various general obligation and local improvement district (LID) bonds used to fund capital improvement projects and capital equipment acquisitions. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2007 Budget Beginning Fund Balance 158,037327,269418,036418,036 Taxes970,9141,059,580 1,050,810 903,960 Licenses & Permits 00 Intergovernmental00 Charges for Services 00 Fines & Forfeits 00 Other Revenue 2,587,282 1,036,303 991,9401,122,730 TOTAL 3,716,233 2,423,151 2,460,786 2,444,726 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel00 Supplies, Services & Taxes 00 Capital Expenditures 00 Debt Service 3,388,964 2,005,116 2,042,750 1,917,015 Transfers 00 Ending Fund Balance 327,269418,036418,036527,711 TOTAL 3,716,233 2,423,152 2,460,786 2,444,726 Staffing Level 0.000.000.000.00 Budget and Program Highlights: •To record principal and interest debt service payments on the following bonds: •2002 UTGO Public Safety •2003 Conference Center Parking •2005 LTGO Refunding •Options to lock in and fix the interest rate on the 2003 Conference Center Parking variable rate debt will be analyzed in the fourth quarter 2007. If determined feasible, the issuance of replacement fixed rate debt will be completed at the next interest payment date of the variable rate bonds. If a rate lock is not pursued at that time, then the Reimbursement Agreement (providing credit support to the variable rate debt) will be extended accordingly - as it expires in February 2008. Recent Accomplishments: • $375,000 advance principal payment completed in 2007 for the 2003 Conference Center Parking Bonds Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome $270,000 Advance Principal Advanced principal Payment on 2003 Conference Improved financial condition Principal payment 2008 repayment Center Parking Bonds 2009-2013 Budgetary Considerations: There is currently no plan or expectation of the City issuing additional general obligation debt in the next five year period other than that which may be supported by a voter approved bond levy. INTRODUCTION Capital improvement funds account for the acquisition and/or construction of major capital projects by the City with the exception of capital projects undertaken by the City’s enterprise funds - which are included within those funds (as they generally are financed with revenue bonds and/or rates generated by the utility for which the capital facility is being built). The 2008 budget includes 5 capital improvement funds: Public Safety Bond – established to account for and fund the costs for constructing public safety capital facilities and acquisition of public safety equipment as approved (and funded by) the voter approved 2002 Public Safety – Unlimited Tax General Obligation Bonds. Harborside Plaza & Commons – a capital improvement fund established to account for and fund the administration, planning, design, and construction of the Harborside Memorial Plaza and Commons project. This project is funded by a combination of state grant funds and City Real Estate Excise Tax revenues transferred in from the General Government Capital Improvement Fund. Conceptual Image and Drawing – Harborside Plaza & Commons ________________________________________________________________________ Capital Improvement Funds Overview General Government Capital Improvement - this fund accounts for expenditures related to various general government capital improvement projects. The primary source of revenues for this fund is the Real Estate Excise Tax (REET) receipts. The REET is levied on all sales of real estate. The City is authorized, by State law, to levy a quarter st percent tax (described as “REET 1 Quarter”). Cities that plan under the Growth Management Act (GMA) have the authority to levy a second quarter percent tax (“REET nd 2 Quarter”). Bremerton has imposed both the first and second quarter REET. The total estimated revenues from each quarter percent for 2008 are $800,000 - for a total annual estimate of $1,600,000. The anticipated revenues from REET can fluctuate greatly based upon the sales price and volume of real estate transactions. It is anticipated that 2008 will provide comparable (slightly less) revenues to those experienced in 2007. Expenditures funded by REET must meet the qualifications specified in the state statutes. Generally, the REET funds are receipted into this Fund and are then transferred to the Fund and Department with designated eligible projects as described in the budget. Park Facilities Construction - this capital fund accounts for expenditures related to Parks capital improvement projects. Funding for these projects largely come from a combination of grant funds, proceeds from the sale of park facilities as transferred from the Contingency Reserve Fund, and transfers of REET funds for eligible projects from the General Government Capital Improvement Fund. Boardwalk Project – this fund is established to account for and fund the administration, planning, design, and construction of the Bremerton Boardwalk and Evergreen Park expansion project. Funding for this project is provided by a combination of state and federal grant funds and proceeds from the sale of land as transferred from the Contingency Reserve Fund. Conceptual Image of the Bremerton Boardwalk Project ________________________________________________________________________ Capital Improvement Funds Overview CITY CAPITAL IMPROVEMENT PLAN A Capital Improvement Plan is prepared annually in accordance with the requirements of the Washington State Growth Management Act which defines the long-term capital plans of the City. Separate Transportation Improvement, Water, and Wastewater Comprehensive Plans have been previously prepared and adopted by the City Council after separate public hearing processes. The general capital improvement plan (included in the supplemental section of this budget document) incorporates those more detailed plans (in summary) as then combined with the remaining general governmental capital expenditure plans of the City. ANNUAL CAPITAL EXPENDITURE BUDGET The Capital Improvement Plan provides capital expenditure expectations for the period 2008 through 2013. Individual capital project expenditures are then appropriated through annual budget ordinances. The Capital Improvement Plan for 2008 is integrated into the 2008 annual operating budget of the City. Harborside Fountain Park – Opened May 5, 2007 ( Photos by Glen Davis, Legendary Portraits of Manette) ________________________________________________________________________ Capital Improvement Funds Overview 2008 Budget Capital Improvement Funds Boardwalk Project Public Safety 2,776,395 1,439,132 23% 12% Park Facilities 1,039,821 9% Harborside Plaza & Commons General Gov Cap. 4,750,000 Imp. 38% 2,185,801 18% 2006 Actual2007 Budget2008 Budget Public Safety Bond 7,814,5782,927,2711,439,132 Harborside Plaza & Commons 004,750,000 General Government Cap. Imp. 3,340,7683,420,5772,185,801 Park Facilities Construction 1,112,6642,479,6561,039,821 Boardwalk Project 614,3871,193,8952,776,395 Total Capital Projects Funds12,882,39710,021,39912,191,149 PUBLIC SAFETY CAPITAL PROJECTS Capital Improvement Fund - 302 Function Description: This capital projects fund was established to account for and fund the planning, design and construction of public safety capital project and purchase of equipment/vehicles. The revenue source for this fund is voter-approved unlimited tax general obligation bonds as supplemented with additional revenues from grants, real estate excise taxes, General Fund transfers and proceeds from sale of property assets. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 6,736,624 6,389,396 2,027,271 1,404,132 Taxes00 Licenses & Permits 00 Intergovernmental38,4220 Charges for Services 00 Fines & Forfeits 00 Other Revenue 1,352,148 1,425,182 900,00035,000 TOTAL 8,127,194 7,814,578 2,927,271 1,439,132 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel21,01636,0170 Supplies, Services & Taxes 175,00596,3800 Capital Expenditures 1,531,408 4,973,744 1,523,139 1,437,138 Debt Service 10,369681,1660 Transfers 00 Ending Fund Balance 6,389,396 2,027,271 1,404,132 1,994 TOTAL 8,127,194 7,814,578 2,927,271 1,439,132 Staffing Level 0.000.000.000.50 Budget and Program Highlights: The City of Bremerton Public Safety Bond in the amount of $12,979,000 was passed by the voters on September 17, 2002. The objective of this capital program is to provide adequate facilities and equipment for the City’s Police, Fire, and Municipal Courts which are core and essential services for the City. The Police and Fire projects are expected to be completed prior to the end of 2007. The 2008 budget is therefore comprised entirely with the remaining Municipal Court building project expenditures. Recent Accomplishments and 2007 Initiative and Status Recaps: • Relocated Municipal Court Facility to a temporary location - as required with the sale of old City Hall and in the absence of completion of this portion of the Public Safety Bond Fund projects. • The Police Department Facility was completed at the Burwell site in 2007.Staff and equipment were relocated and the facilities opened for operations in February 2007. Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Safe, Healthy, Livable Neighborhoods InitiativeOutcome Cost Effective Provisions of Acquire or Construct a Permanent Municipal Court Services and Relocation of Personnel Opening of Facilities 2009 Municipal Court Building Completion of 2002 Public and Equipment for Operation Safety Bond Projects 2009-2013 Budgetary Considerations: The capital projects covered by the 2002 Public Safety Bond are expected to be concluded no later than 2009. This fund will then be closed. HARBORSIDE PLAZA & COMMONS CAPITAL IMPROVEMENT Capital Improvement Fund - 304 Function Description: This capital project fund is established to account for and fund the administration, planning, design and construction of the Harborside Plaza and Commons capital improvement project. The source of revenues for this project is from Washington CTED grants and City REET funds. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 0 Taxes0 Licenses & Permits 0 Intergovernmental4,250,000 Charges for Services 0 Fines & Forfeits 0 Other Revenue 500,000 TOTAL 4,750,000 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel0 Supplies, Services & Taxes 0 Capital Expenditures 4,750,000 Debt Service 0 Transfers 0 Ending Fund Balance 0 TOTAL 4,750,000 Staffing Level 0.50 Budget and Program Highlights: The Harborside Memorial Plaza and Commons is the northwest gateway to Bremerton Harborside extending from Burwell Street south along the west side of Pacific Avenue to Building 50, Harborside Fountain Park and east on the north side of First Street to the intersection with the Harborside Conference Center. Memorial Plaza will incorporate some wallboard art and artifacts, the history of the Puget Sound Naval Shipyard, its role during the world wars and its current leadership as a major force in our national defense. The five stepped plazas will extend north the Harborside Fountain Park landscape theme - with three WET Design water pools and features, large erratic rocks, and specimen trees. The southeast section of the Plaza will widen the First Street sidewalk area 40 feet, remove curbs, install decorative pavers, a boulevard, planters, trees and lighting, and outdoor café seating areas for events and activities interconnecting the Bremerton Harborside, Boardwalk, Conference Center, Condominiums, the ferry terminal, the Harborside Park, PSNS main gate, and new Naval Museum. Harborside Commons is part of the renovation and revitalization of the old Penney’s Building in the heart of Bremerton Harborside. The grant funding covers the public segment of the renovation including grand stairs at the south east corner of the project connecting to the Harborside Conference Center. This project will include public spaces for events and open spaces crossing from Burwell to Second Street. Recent Accomplishments: • Secured $5 million in State Grant Funding for this project Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Open Spaces, Natural Areas and Parks that Maximize the Natural Environment and Promote Community Pride InitiativeOutcome Provide Public Areas & Construct Harborside Plaza and Completion/Opening Connect Harborside Park with Project Completion 2008 Commons Ceremonies Downtown Bremerton 2009-2013 Budgetary Considerations: This project is expected to be substantially completed in 2008. Future Parks Operations and Public Works budgets will require additional operational funds to support maintenance of the public spaces and planned water features. GENERAL GOVERNMENT CAPITAL IMPROVEMENT Capital Improvement Fund - 308 Function Description: This fund accounts for expenditures related to various General Government capital improvement projects, major leases and purchases and special projects approved by the City Council. Excise taxes from real estate sales are receipted into this fund for the purpose of funding certain capital improvement projects as permitted by state law. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 1,212,122 1,516,004 1,593,127 535,801 Taxes1,241,980 1,749,179 1,400,000 1,600,000 Licenses & Permits 00 Intergovernmental100,00012,588387,4500 Charges for Services 00 Fines & Forfeits 00 Other Revenue 695,34762,99840,00050,000 TOTAL 3,249,449 3,340,768 3,420,577 2,185,801 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel37,12700 Supplies, Services & Taxes 28,42612,588322,4500 Capital Expenditures 382,89274,892436,000125,000 Debt Service 000 Transfers 1,285,000 1,660,161 2,481,800 2,045,000 Ending Fund Balance 1,516,004 1,593,127 180,32715,801 TOTAL 3,249,449 3,340,768 3,420,577 2,185,801 Staffing Level 0.000.100.100.10 Budget and Program Highlights: The objective of this fund is to transfer funds to appropriate capital programs. Smaller capital programs may be budgeted directly in this fund if there is not an appropriate fund or department established to track the project. The program descriptions for the items funded will be found in the budget detail for each fund that is a recipient of these transfers. •Capital expenditure of $125,000 for completion of phase II of the Martin Luther King Regional Library renovation project. This work was begun in 2007 and will be completed in 2008. •Transfer of $210,000 to the General Fund (Fund 001) for the purpose of providing: •Government Center. Allocate funds to contribute to the annual debt service payment on bonds issued by the Kitsap Consolidated Housing Authority to finance the construction of the Government Center capital project. $210,000 •Transfer of $425,000 to the Parking Fund (Fund 105) to provide funds for principal and interest payments on the bonds issued to finance the construction of the Park Plaza capital project at the Kitsap Conference Center at Bremerton Harborside. Total debt service transferred to the Bond Fund (Fund 201) from the Parking Fund is $836,600 of which $425,000 is funded by this transfer of REET funds and covers a principal payment of $295,000 and a portion of the interest payment. The remaining amount of interest payment is provided for by net revenues from the Parking Fund. •Transfer of $500,000 to the Harborside Plaza and Commons Fund (Fund 304). Provide City contribution of funds for the Harborside Plaza and Commons Capital Improvement program. •Transfer of $200,000 to the Parks Development Fund (Fund 310). Provide matching funds for proposed Levy Lid Lift community parks capital redevelopment program. •Transfer of $140,000 to the Arterial Street Fund (Fund 101) to provide funds for arterial street overlay and improvement projects. •Transfer of $360,000 to the Street Fund (Fund 102) to provide funds for street overlay and improvement projects. •Transfer of $210,000 to the Boardwalk Project Fund (Fund 311) to provide funds for the Boardwalk construction project. Recent Accomplishments: • Harborside Park was opened in 2007 - partially funded by City REET contributions. • Glen Jarstad Pool liner was replaced in 2007 - funded by City REET contributions. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Secure Grant Funding to Proceed Completion of Renovation Grant Funding to Match with Additional Renovations at the Grant Funding Secured 2008 Project as Originally Scoped REET Funds Martin Luther King Library 2009-2013 Budgetary Considerations: The revenues from real estate excise tax have been growing in recent years as a result of increased home values and an active real estate market. The revenue stream from these transactions can vary significantly depending on the current local economy - so utilization of conservative assumptions for receipt expectations is recommended. Long-term ongoing fund utilization is expected annually for the Norm Dicks Government Center debt obligation and for the Kitsap Conference Center debt obligation until such time as these obligations are retired. Other uses of REET funds outside of these ongoing commitments vary from year to year based upon identified eligible projects and the availability of funds. PARK FACILITIES CONSTRUCTION Capital Improvement Fund - 310 Mission Statement: Bremerton Parks and Recreation is committed to enriching the lives of Bremerton citizens with aquatic, athletic and recreational opportunities for persons of all ages and provide safe and attractive parks and facilities for play, health and fitness, and celebrations. Function Description: This Capital Improvement Fund is established to account for revenue and expenditures related to Parks, Trail, Open Space and Recreational capital improvements. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008Budget Beginning Fund Balance 240,863301,318789,882332,651 Taxes00 Licenses & Permits 00 Intergovernmental173,0706,1701,245,170 397,170 Charges for Services 3420 Fines & Forfeits 00 Other Revenue 276,376805,176444,604310,000 TOTAL 690,6511,112,664 2,479,656 1,039,821 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel8,9040 Supplies, Services & Taxes 71,42745,77545,00055,000 Capital Expenditures 295,842150,6782,131,670 970,000 Debt Service 13,16013,16013,16513,164 Transfers 00 Ending Fund Balance 301,318903,051289,8211,657 TOTAL 690,6511,112,664 2,479,656 1,039,821 Staffing Level 0.000.000.000.00 Budget and Program Highlights: The 2008 Parks capital improvement plan places an emphasis on renovating and restoring neighborhood parks. Projects include construction of Blueberry Park improvements, a new restroom facility at Harborside Park, ball field lighting at Lions Park, Stephenson Canyon Trails and Signage and upgrades to the Senior Center. Recent Accomplishments: • Construction of Lions Park pathway • Pool tank renovation • Renovation of Jarstad Pool tank and locker\restroom • Kitsap Lake Park expansion • Design of East Park landscape and irrigation improvements • Pat Carey Vista renovation • Construction of Lions Park shelter and perimeter path • Harborside Park landscape construction • Application for Lions Park Low Impact Development Grant Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Open Spaces, Natural Areas and Parks that Maximize the Natural Environment and Promote Community Pride InitiativeOutcome Provide Additional Greenspace Expansion of Evergreen Park and Maximize Shoreline Access Completion Project Completion 2008 for Citizens and Visitors Efficient, Accountable and Financially Responsible City Governance InitiativeOutcome Locate Site to Replace Parks Increased Maintenance Acquisition of Site Council Approval 2007 Maintenance Facility Efficiency Improve Accessibility, Especially for the Pedestrian InitiativeOutcome Funding Sources Secured Funding Provided 2009 Trail will Provide Increased Finish Design Work and Pedestrian Routes and Increase Design and Permitting Environmental Reviews Implement the Port Washington 2010 Shoreline Accessibility for Completed and Permits Concluded (Bridge to Bridge) Trail Project Everyone Construction Completed Project Completed 2011 2009-2013 Budgetary Considerations: Additional funding sources will be needed for continued park system renovations. BOARDWALK PROJECT Capital Improvement Fund - 311 Function Description: The City of Bremerton is developing a project that will construct a 3,200-foot over water boardwalk connecting the existing Louis Mentor Boardwalk in the Harborside District to the City’s popular Evergreen Park. The boardwalk will serve two purposes; it will provide a recreational waterfront experience for residents and visitors and it will provide access for maintenance of an adjacent sewer on the beach. The project has three components; construction of the boardwalk, replacement of the existing beach sewer line and redevelopment of a former industrial property into the southern expansion of Evergreen Park. The vision for the boardwalk has existed for over 30 years. It was recently revived during a discussion of how to solve the maintenance access problems with the aging Washington Avenue beach sewer. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 0269,425183,895 Taxes0000 Licenses & Permits 0000 Intergovernmental0001,612,500 Charges for Services 0000 Fines & Forfeits 0000 Other Revenue 0614,387924,470980,000 TOTAL 614,3871,193,895 2,776,395 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel000 Supplies, Services & Taxes 000 Capital Expenditures 0344,9621,110,000 2,725,000 Debt Service 000 Transfers 00028,750 Ending Fund Balance 269,42583,89522,645 TOTAL 614,3871,193,895 2,776,395 Staffing Level 0.000.000.00 Budget and Program Highlights: •Begin pre-design of the Boardwalk •Begin environmental analysis phase •Continue to pursue funding sources Recent Accomplishments and 2007 Initiative Status Recaps: • Agreed Order with DOE completed and signed. • Received $2.8M in IAC Grants Pre-design complete 30% for boardwalk and sewer Initiated an active public outreach program. Applied for all resource agency permits in Oct 2007 Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Improved Accessibility, Especially for the Pedestrian InitiativeOutcome Design and Permitting Environmental Reviews 2007 Boardwalk will Provide Completed and Permits Concluded Design and Implement the Increased Pedestrian Routes and Remaining Funding Boardwalk and Sewer Access Funding Provided 2008 Increase Shoreline Accessibility Sources Secured Project for Everyone Construction Completed Project Completion 2010 Open Spaces, Natural Areas, and Parks that Maximize the Natural Environment and Promote Community Pride InitiativeOutcome Provide Additional Green-space Expansion of Evergreen Park & Maximizes Shoreline Access Completion Project Completion 2010 for Citizens and Visitors 2008-2012 Budgetary Considerations: A significant portion of the funding for this project has been obtained. However, securing the remaining funding will be a priority for the remainder of 2007 and in 2008. INTRODUCTION Enterprise funds are proprietary funds used by local governments to account for certain fee-based or rate-based business activities. These businesses provide specific goods and services to a group of rate payers or users without transfers, subsidies, or other monetary support from the City’s General Fund. There is a direct relationship between the fees paid and the services received. The 2008 budget includes 6 enterprise funds: Water Utility – this program and service of the City constructs, operates, and maintains a water supply and distribution system meeting state and federal water quantity and quality standards and provides for fire protection. Wastewater Utility – the City’s two wastewater treatment plants and its wastewater collection system protect the environment by providing for collection, treatment, and disposal services meeting federal and state discharge limits for flow, pollutant concentration and loading, and receiving water quality. Southwest Bremerton Sewer – this construction fund was established to account for the administration and construction of the Southwest Bremerton Sewer expansion project. Funding for this project is provided primarily from proceeds of the 2007 Water and Sewer Revenue Bonds in combination with transfers of rate revenue from the Wastewater Utility system. Stormwater Utility - the Stormwater utility provides a city-wide storm drainage capital improvement and maintenance program. Utility Debt Reserve – this fund was established to account for the reserve funds needed to meet debt reserve requirements for the three City utilities. Gold Mountain Golf Complex - this fund was established to provide for the two golf courses owned, operated and maintained by the City at its Gold Mountain Golf complex. ________________________________________________________________________ Enterprise Funds Overview UTILITY SYSTEM RATE ADJUSTMENTS The City concluded a comprehensive utility rate study in 2004 resulting in a multi-year plan for increasing rates and implementing significant increases in general facility charges to cover the cost of new capital improvements. Upon the conclusion of this study, the City Council approved the utility rate increase plan with the adoption of an ordinance implementing the first phase of rate increases and the new general facilities charges – which became effective on November 1, 2004. Subsequently in 2005, the City Council approved the planned second year increases for the water and stormwater utilities and (due to more extreme financial pressures for the wastewater utility) the planned rate increases for the next two years were folded into one increase for the wastewater utility. These second year rate adjustments became effective January 1, 2006. Effective January 1, 2007 the City began implementing annual utility system rate increases based upon the most current Consumer Price Index and general facility charge increases based upon the most current Seattle Construction Index. Per the Bremerton Municipal Code 15.06.015 (b) - if the City Council does not otherwise adjust the utility rates they are to be adjusted annually based upon the most current Consumer Price Index for all Urban Consumers, Seattle, and the general facility charges are to be adjusted according to the most current Seattle Construction Index. The 2008 budget includes implementation of a CPI adjustment of 3.5% for all three utility system rates, and a 0.2% increase in general facility charges based on the most current Seattle Construction Index. The implemented utility rate adjustments plus the final retirement of the outstanding Water and Sewer Revenue bonds in late 2007 (in combination) have placed the wastewater utility on much firmer financial footing. ________________________________________________________________________ Enterprise Funds Overview 2008 Budget Enterprise Funds Gold Mountain Golf Stormwater Utility $4,105,982 $2,573,478 7% 4% SW Bremerton Utility Debt Reserve Sewer $1,206,387 $4,827,442 2% 8% Water Utility $17,802,875 31% Wastewater Utility $27,386,529 48% 2006 Actual2007 Budget2008 Budget Water Utility 15,005,29618,489,76717,802,875 Wastewater Utility 17,011,88720,605,71127,386,529 SW Bremerton Sewer 4,456,4424,827,442 Stormwater Utility 2,695,3732,804,4622,573,478 Gold Mountain Golf 3,955,8314,056,2424,105,982 Utility Debt Reserve 557,859575,8591,206,387 Total Enterprise Funds39,226,24650,988,48357,902,693 WATER UTILITY Enterprise Fund - 401 Function Description: The Bremerton Water Utility provides safe drinking water to a population of approximately 56,000 people and the Puget Sound Naval Shipyard. The Utility is an enterprise fund established to maintain a water supply system in compliance with Federal and State water quantity and quality requirements. The Water Utility completes all activities associated with the operation and maintenance of the water system, which includes planning, engineering, and managing water supplies and treatment, meter reading and billing, processing utility service requests, development reviewing, permitting, responding to repairs and emergency breakdowns, inspecting facilities, monitoring, providing public outreach and conservation, maintenance management, managing the watershed and forestry activities, biosolids program operations and management, and providing other labor, material, equipment, and overhead costs. Revenue is provided through monthly water rates, grants, loans, fees, timber revenue, and charges. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 1,899,140 3,976,011 5,660,009 6,144,469 Taxes00 Licenses & Permits 00 Intergovernmental143,2800 Charges for Services 8,148,946 8,725,036 10,020,762 9,568,711 Fines & Forfeits 0 Other Revenue 2,435,751 2,304,249 2,808,996 2,089,695 TOTAL 12,627,117 15,005,296 18,489,767 17,802,875 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel2,482,100 3,455,046 3,356,745 3,791,807 Supplies, Services & Taxes 2,768,247 3,070,798 3,516,203 3,839,826 Capital Expenditures 2,063,760 1,581,703 3,735,704 3,982,000 Debt Service 574,083797,8821,137,029 761,000 Transfers 762,916698,801826,4121,260,684 Ending Fund Balance 3,976,011 5,401,066 5,917,674 4,167,558 TOTAL 12,627,117 15,005,296 18,489,767 17,802,875 Staffing Level 47.5746.6748.1748.17 Budget and Program Highlights: Water Resources The Water Resources Manager is responsible for managing the water resources, water treatment, dam safety, water quality control, and customer outreach and conservation programs for Bremerton’s drinking water system. These activities are closely coordinated with the Washington Departments of Health and Ecology and the U.S. EPA. The water system is comprised of 13 production wells, 9 water pump stations, 16 reservoirs, Casad Dam, and surface water supply from the 1.4 billion gallon Union River Reservoir. The average demand is about 8 million gallons per day serving over 16,000 accounts. Bremerton’s water supply is one of the few approved unfiltered systems in the United States. Environmental regulatory compliance responsibilities include monitoring drinking water quality, combined sewer overflows, baseline stream flows, stormwater, and the biosolids site. Responsibilities include: • Operate and maintain the City’s drinking water system in compliance with all State and Federal drinking water regulations. • Provide customer education on water quality and conservation. Complete annual Customer Confidence Report. Ensure conservation goals adopted by City Council are achieved. • Manage water rights and applications. • Supply State and Federal monitoring and operating reports by required deadlines. • Represent the City on water quality and quantity committees, such as the Water PAK, Groundwater Management Committee, and Water Utility Coordinating Committee. • Participate in the update of the Kitsap County Coordinated Water System Plan. • Work with Forestry Manager to provide biosolids site monitoring and reporting in compliance with Federal, State, and local regulations. • Continue to improve water system security and emergency response planning. • Continue upgrade of Water Supervisory Control and Data Acquisition System (SCADA). • Prepare Water System Plan every 6 years for DOH approval. • Maintain Emergency Response Plans, Dam Emergency Action Plans, and Risk Management Plan for Chlorine in compliance with regulations. • Perform CSO flow and water quality monitoring as required by Federal regulations and legal agreements. Assist CSO components of the Sewer Comprehensive Plan. Prepare and transmit Annual CSO Report to PSA by January 31 per Consent Decree. Forestry The Forestry Manager is responsible for ongoing land and resource management on the City’s 8,300 acres of forested Water Utility lands and providing watershed protection/security for these lands and revenue from forest resources; and management of biosolids program, which beneficially uses 100% of the biosolids produced by the WWTP on permitted forest lands. The division maintains 60 miles of forest roads and trails for water supply operations, timber harvesting, fire protection, and plantation maintenance and application operations. Coordinates fishery and environmental issues on Water Utility lands. Responsible for compliance with Federal, State, and local forest practices, hydraulics, and biosolids regulations. Other responsibilities include: • Generate requested timber revenue for Water Capital fund subject to market conditions, sustainable harvest principles, and State forest practice regulations. • Perform post-harvest reforestation according to State forest practice regulations and inventory stocking guidelines. • Continue general forest management projects to maintain and improve forest health and stocking levels. • Continue Road Maintenance and Abandonment Plan (RMAP) schedule per State forest practice regulations to maintain/improve water quality and fish passage, and provide access for water and forest management activities. • Continue Biosolids Program for cost effective utilization on forest lands per State and local regulations. • Permit and develop additional biosolids application sites. • Coordinate with the Wastewater Manager on biosolids quality issues and application schedules in support of WWTP Operations. • Coordinate security and wildfire issues with Water Resources, Bremerton Police, Bremerton Fire, local fire districts, and the Department of Natural Resources. • Prepare and transmit annual biosolids reports to EPA, DOE, and KCHD. • Prepare and transmit annual RMAP accomplishment report to DNR. • Assist Water Resources with annual Watershed Control Program report to DOH. • Represent City on fishery and forest issues with public, tribes, and agencies related to Water Utility properties or activities. • Maintain and operate Jarstad Park facilities. Utilities Operations The Utilities Operations Manager is responsible for all field maintenance and day labor construction for 269 miles of distribution water lines and 30 miles of transmission water lines and reads 16,000 water meters. The Backflow & Cross-Connection section is responsible for identifying and eliminating connections that could result in contamination to the water system. The Customer Response Dispatch section responds to customer service requests for all PW&U divisions. Other Responsibilities include: • Water System - Continue: •Water main flushing program •Undersized main replacement program •Meter maintenance program •Reservoir cleaning program •Hydrant & valve maintenance program •Service line replacement program • Utility locates • Installation and reading of meters and MXUs • Water main installation and repair • Maintain approximately 294 miles of water mains • Backflow & Cross Connection - Continue: •Cross-connection program •Implementation of fireline backflow assembly upgrades •Grease trap inspection program •Setting up new billing accounts •Assisting Utility Billing operations •Updating existing billing accounts • Customer Response/Dispatch •Provide 1 to 2 hour response to any call from a customer with a problem •Customer feedback and satisfaction are the primary goals •Water and Wastewater Utilities (combined) provide funding for a Grant Writer • In 2006 Customer Response/Dispatch received 9,910 phone calls for assistance. Calls handled are Water, Sewer/Stormwater, Facilities, Streets, Sign Shop, & Electronics. Numerous calls are also received for Engineering, Billing/Customer Service, Parks, & DCD. Assist Billing/Customer Service with shut off/turn on, etc. • Utility Inventory Procurement and Control/Facilities •Utility asset management •Utility building and grounds maintenance •Improvement to utility building and property • Purchase and maintain utility inventory • Manage utility facility keys and locks Recent Accomplishments and 2007 Initiative Status Recaps : •Completed 6-year Update to Bremerton Water System Plan – approved by DOH in January 2007. •Completed conservation goal process with City Council. •Hired new position of Environmental Technician – Public Outreach in July 2007. •Completed PS2 upgrade project. •Completed PS2a project. •Completed replacement of interior coating for Reservoir 18. •Submitted Initial Distribution System Evaluation Plan to EPA and received approval for our approach in compliance with the Stage 2 Disinfection/Disinfection By-products Rule. •Began monthly monitoring of Cryptosporidium in compliance with the Long Term 2 Enhanced Surface Water Treatment Rule (LT2) •Completed ultraviolet treatment report for DOH in preparation for LT2 compliance. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome STAGE II DISINFECTION/DISINFECTANT Safe and Reliable Potable Compliance with Federal Initial Compliance 2008 BYPRODUCT RULE Water Service and State Regulations Implementation InitiativeOutcome LONG-TERM II ENHANCED SURFACE WATER Safe and Reliable Potable Compliance with Federal Initial Compliance 2008 TREATMENT RULE Water Service and State Regulations Implementation InitiativeOutcome Compliance with State Water Increased Water System Compliance with Increased Water 2008 Efficiency Regulations (HB1338) Efficiency HB 1338 Conservation 009-2013 Budgetary Considerations: 2 Water Several water regulatory changes promulgated in 2006 will have a significant effect on the Water Utility: The EPA’s Stage 2 Disinfection/Disinfectant Byproduct Rule will require increases in expenditures in monitoring, staff time to take samples, and consultant services to evaluate data and compliance. The EPA’s Long Term 2 Enhanced Surface Water Treatment Rule will require a multi-million dollar capital expenditures to maintain non-filtration status of Bremerton’s water system. It is anticipated that installation of ultraviolet light treatment will provide the additional water treatment to comply with this regulation. There is also an estimated $12,000 of additional water quality monitoring required under this rule. There is also an estimated $35,000 of additional water quality monitoring required under these new rules for 2008. The Washington State Department of Health finalized the new water system efficiency rules required by HB 1338 in January 2007. The rules will impact Bremerton by requiring additional water conservation public education, outreach, and involvement. An emphasis on upgrading security features in the water system will continue. Forestry The division will continue annual implementation of the Road Maintenance and Abandonment Plan (RMAP) mandated by State Forest Practice regulations for a 15-year schedule (2001-2016). Estimate average cost of about $20,000/year (culverts, construction costs, etc.) from Water Capital or timber revenue sources. Stream protocol surveys may be needed in the future to determine fish usage and associated crossing structure requirements. Reforestation costs (seedlings and labor) average $16,000/year at current harvest levels for planting approximately 130 acres annually. In 2007 an additional 30 acres of forest land was acquired that will be utilized for biosolids application and general forest management. Expenditures for development of this site (trails and environmental monitoring) will come from the Forestry O&M budget. Application equipment will likely need replacement within 4 years- estimated cost is $150K. Revenue from timber sales has been targeted for capital use since 2004. The annual targeted revenue from this source will be reduced by $100,000 each year until 2010, when the target will be approximately $1 million (based on current market conditions). This reduction is to adjust for recent studies that indicate a lower harvest rate to maintain a sustainable harvest level of between 2 ½ and 3 million board feet annually. Revised annual target revenue goals from timber harvest are as follows: 2008 - $1.2 million 2009 - $1.1 million 2010 and beyond - $1.0 million Sustainable harvest levels and revenue needs should be reviewed periodically to allow for adjustments due to regulatory, market, and other changing conditions. Land base should be reviewed periodically to identify parcels for acquisition and surplus based on future water supply and protection needs as well as forest management. Improvements to Jarstad Park have been preliminarily identified for 2008-2010. This includes a proposed 2008 budget of $50K for structure upgrades and development of a nature trail system within selected areas near the park. Potential revenue sources include grants and donations, as well as Water Capital. WATER UTILITY BUDGET BREAKDOWN 20072008 BUDGETBUDGET WATER RESOURCES Personnel Costs842,967945,617 Supplies & Services1,117,4461,297,902 TOTAL EXPENDITURES1,960,4132,243,519 WASTEWATER MANAGER Personnel Costs93,60079,660 Supplies & Services72,50074,901 TOTAL EXPENDITURES166,100154,561 WATER OPERATIONS Personnel Costs1,267,7531,451,932 Supplies & Services763,464819,012 TOTAL EXPENDITURES2,031,2172,270,944 WATER ADMINISTRATION Personnel Costs452,939527,728 Supplies, Services & Taxes1,230,5511,247,612 TOTAL EXPENDITURES1,683,4901,775,340 ENGINEERING Personnel Costs292,952340,536 Supplies & Services97,246102,981 TOTAL EXPENDITURES390,198443,517 FORESTRY Personnel Costs406,534446,334 Supplies & Services234,996297,418 TOTAL EXPENDITURES641,530743,752 TOTAL O & M EXPENDITURES6,872,9487,631,633 Capital Outlay3,735,7043,982,000 Debt Service1,137,029761,000 Transfers826,4121,260,684 Ending Balance5,917,6744,167,558 TOTAL EXPENDITURES18,489,76717,802,875 WASTEWATER UTILITY Enterprise Fund - 451 Function Description: The Wastewater Operating Utility serves a City population of approximately 39,000 people and PSNS. The Utility is an enterprise fund established to maintain the wastewater transmission, conveyance, treatment, and disposal system in compliance with State and EPA water quality guidelines. The Wastewater Utility completes all activities associated with operation and maintenance of the wastewater system, including planning, engineering, management, billing, meter readings, utility service requests, development reviews, facilities inspections, emergency/breakdown repairs, permit fees, supplies and testing, maintenance management and all other labor, material, equipment and overhead costs associated with the operation and maintenance of this system. Revenue for this program is provided through monthly wastewater rates, system development charges, grants and loans. Budget Data Recap: Category - Revenue 2005 Actual 2006 Budget 2007 Budget 2008 Budget Beginning Fund Balance 2,283,954 2,829,465 2,679,450 6,729,863 Taxes83,07255,85260,00060,000 Licenses & Permits 0 Intergovernmental280,8682,481,984 Charges for Services 10,706,585 12,336,261 12,778,183 13,116,919 Fines & Forfeits 0 Other Revenue 3,345,110 1,790,309 4,807,210 4,997,763 TOTAL 16,418,721 17,011,887 20,605,711 27,386,529 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel2,337,876 2,270,079 2,778,497 2,866,455 Supplies, Services & Taxes 2,694,456 2,627,434 2,700,351 2,902,749 Capital Expenditures 2,121,054 1,611,241 5,417,940 12,184,250 Debt Service 5,035,126 5,338,659 4,962,408 3,876,250 Transfers 1,400,744 1,085,023 1,111,268 1,461,729 Ending Fund Balance 2,829,465 4,079,451 3,635,247 4,095,096 TOTAL 16,418,721 17,011,887 20,605,711 27,386,529 Staffing Level 35.6235.4936.4936.49 Budget and Program Highlights: Wastewater The Wastewater Manager is responsible for the operation and maintenance of pump stations and treatment of all City wastewater. The Westside Wastewater Treatment Plant provides full secondary treatment to a peak capacity of 32 million gallons per day (MGD). The Eastside CSO Treatment Plant has a peak treatment capacity of 15 MGD. The City operates and maintains 36 pump stations and three remote chemical odor control stations. Other responsibilities include: •Operating and maintaining the City’s wastewater system in compliance with all State and Federal water quality regulations • Advertising for bids and completing construction of the upgrades for the Westside Treatment Plant. • Completing the construction upgrade to pump station CW-1. • Improving the emergency power supplies at the pump stations. • Maintaining and improving the infrastructure at the Westside WWTP. • Advertising for bids and completion of the SWB sewage pump station and force main. • Continue upgrades of the Wastewater Telemetry System (SCADA) • Continuing to improve our public image. • Continue with the pump station pump and piping upgrades. • Attain the DOE Outstanding Treatment Plant Award FY 2007 Utilities Operations The Utilities Operations Manager is responsible for all field operations for the collection system in the sewer utility. This division maintains 21 miles of sewer transmission mains and 146 miles of combined sewer collection system. Other responsibilities include: •Video program for line inspection •Sanitary main replacement program •Jetting of all sanitary lines •Grease interceptor program •Manhole inspections rehabilitation program •Cleanout installation program on sewer laterals •Root control program Recent Accomplishments: • Awarded an Outstanding Treatment Plant Award from DOE for 2005 & 2006 • Completed upgrades to Pump Stations OB-6, OB-1, CE-6, and KL-2 • Rehabilitation of Primary Clarifier #2 • Design, construction and installation of a new control system for Pump Station CE-1 • Installation of three new flow meters at Pump Station CE-4 Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Safe, Healthy, Livable Neighborhoods InitiativeOutcome Negotiated Agreement for Assumption of Pump Agreement Completion Assumption of Sewer Service in Supports Annexation of Navy Stations and Collection and Adoption by 2008 Navy Yard City of Bremerton Yard City System from Kitsap Council County InitiativeOutcome Improved Reliability and Completion of the Installation of New Westside WWTP Upgrade Redundancy Contract and Successful 2008 Equipment Reduce Environmental Risk Start-up 2009-2013 Budgetary Considerations: Budget consideration should be given to the completion of the Westside WWTP upgrades. These upgrades encompass the addition of a new centrifuge system, generator, boiler, biosolids storage, and an influent screen. This upgrade is being funded through rates and a USEPA State and Tribal Assistance Grant. Consideration should also be given to the aging infrastructure at the WWTP. This is an emerging issue that has been defined through inspections by plant personnel. The primary and secondary clarifier’s center-feed structures will be scheduled for replacement within the next 5-6 years. The clarifier concrete structures and aeration basin’s influent structure are also in need of rehabilitation due to corrosion damage. Budget consideration should also be given to the rehabilitation of the existing biofilter. This process unit has been off-line for 12 years, and its rehabilitation will aid the Westside WWTP in the treatment of nutrients. The budgetary costs for the Westside WWTP upgrade have been outlined in the current CIP and in the 2008 budget, whereas the costs for the aging infrastructure system and biofilter process rehabilitation will be identified in the next update of this document. WASTEWATER UTILITY BUDGET BREAKDOWN 20072008 BUDGETBUDGET WATER RESOURCES Personnel Costs65,19474,105 Supplies & Services33,74435,472 TOTAL EXPENDITURES 98,938109,577 WASTEWATER MANAGER Personnel Costs1,444,9541,489,529 Supplies & Services1,317,9271,466,198 TOTAL EXPENDITURES 2,762,8812,955,727 OPERATIONS MANAGER Personnel Costs556,021491,646 Supplies & Services239,516252,036 TOTAL EXPENDITURES 795,537743,682 WASTEWATER ADMINISTRATION Personnel Costs396,651443,951 Supplies, Services & Taxes1,022,6421,056,482 TOTAL EXPENDITURES 1,419,2931,500,433 ENGINEERING Personnel Costs315,677367,224 Supplies & Services86,52292,561 TOTAL EXPENDITURES 402,199459,785 TOTAL O & M EXPENDITURES 5,478,8485,769,204 Capital Outlay5,386,94012,184,250 Transfers1,111,2681,461,729 Debt Service4,993,4083,876,250 Ending Balance3,635,2474,095,096 TOTAL EXPENDITURES 20,605,71127,386,529 SW BREMERTON SEWER UTILITY Enterprise Fund - 452 Function Description: This project will provide sewer to the newly developing Anderson Creek area in Southwest Bremerton. Budget Data Recap: Category - Revenue 2005 Actual 2006 Budget 2007 Budget 2008 Budget Beginning Fund Balance 4,456,442 Taxes00 Licenses & Permits 0 Intergovernmental00 Charges for Services 00 Fines & Forfeits 00 Other Revenue 4,456,442 371,000 TOTAL 4,456,442 4,827,442 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel0 Supplies, Services & Taxes 0 Capital Expenditures 506,0004,750,000 Debt Service 0 Transfers 0 Ending Fund Balance 3,950,442 77,442 TOTAL 4,456,442 4,827,442 Staffing Level 0.000.00 Budget and Program Highlights: The project consists of a sewer pump station and 18,000 feet of pressure sewer to serve approximately 1,000 new homes in the Bayside and Sinclair Ridge plats. The force main could also support the sewering of the Gorst UGA and portions of the expanded West Bremerton UGA. Construction is estimated to be complete by the first half of 2008. Recent Accomplishments: •Design completed in September 2007. Bid complete on pump station in October 2007. Fund Initiatives: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Provide Sewer Services for Sewer Line Extension into SW Complete Trunk Sewer 1,000 New Homes – First Step Project Completion 2008 Bremerton and Pump Station in Sewering Gorst 2009-2013 Leverage the SW Bremerton Sewer force main to provide sewer service to all areas in the SW portion of the City of Bremerton and the Urban Growth Areas like the Gorst UGS and the expanded West Bremerton UGA. STORMWATER UTILITY Enterprise Fund - 481 Function Description: The Stormwater Operating Utility program serves a population of approximately 39,000 residents and provides a storm drainage capital improvement, operations and maintenance program. The Stormwater Utility program supports the Wastewater Utility in the CSO Control Program. The Stormwater Utility program completes all activities associated with the operation and maintenance of the stormwater system, including planning, engineering, management, billing, development reviews, facilities inspections, public education and involvement, maintenance management, and all other labor, material, equipment and overhead costs associated with the operation and maintenance of this utility. Revenue for this program is provided through monthly stormwater rates and fees. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 397,657480,3361,008,881 636,467 Taxes0 Licenses & Permits 0 Intergovernmental0 Charges for Services 1,426,779 1,731,299 1,735,581 1,807,011 Fines & Forfeits 0 Other Revenue 43,192483,73860,000130,000 TOTAL 1,867,628 2,695,373 2,804,462 2,573,478 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel667,351622,604840,805865,849 Supplies, Services & Taxes 364,253451,874599,465760,306 Capital Expenditures 138,275464,000360,000 Debt Service 8136,27516,96616,800 Transfers 216,600245,739246,759250,988 Ending Fund Balance 480,336 1,368,881 636,467 319,535 TOTAL 1,867,628 2,695,373 2,804,462 2,573,478 Staffing Level 8.3210.7611.0111.01 Budget and Program Highlights: Utilities Operations Division Utilities Operations is responsible for all operation and construction for the stormwater collection system. The division maintains 114 miles of storm sewers and 13 miles of open ditches. Other responsibilities include: •Video inspection program •Implementation of the new requirements mandated in the general Phase II NPDES permit was issued by the Department of Ecology in March 2007. •Continue: •Cleaning of storm lines •Catch basin and curb debris plug prevention program •Oil/water separator program •Street sweeping program •Open ditch line maintenance program •Storm drainage main replacement program •Illicit connection monitoring program •Response to calls for assistance with storm-related flooding •Involvement in Navy’s ENVVEST project Water Resources Division Stormwater involvement includes: •Implementing public education on stormwater and pollution source control •Work with the Kitsap County Health District to inventory and map all privately owned storm drainage and treatment infrastructures. •Other water quality monitoring as required by the new NPDES permit and the State’s TMDL Program. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Compliance with 2007- NPDES II Issuance of permit Administer Permit Conditions of Permit 2012 InitiativeOutcome Replace Brentwood Drive culvert Design Complete design & const Design to WDFW 2008 2008-2012 Budgetary Considerations: Stormwater The new Phase II Stormwater NPDES permit issued to the City by the Department of Ecology has extensive and permanent impacts to Bremerton’s stormwater utility. •Additional, costly, water quality monitoring •Additional efforts required for public outreach and involvement •BMP effectiveness monitoring •More detailed mapping of the storm system •Additional staff training •Increased inspections and documentation •Additional staff time to coordinate and manage a more complex stormwater program than is currently in place Other issues: •Navy’s ENVVEST Project •TMDL for Sinclair and Dyes Inlets STORMWATER UTILITY BUDGET BREAKDOWN 20072008 BUDGETBUDGET WATER RESOURCES Personnel43,59442,474 Supplies & Services39,00054,500 TOTAL EXPENDITURES 82,59496,974 OPERATIONS MANAGER Personnel481,496487,614 Supplies & Services224,064259,888 TOTAL EXPENDITURES 705,560747,502 ENGINEERING Personnel226,500233,240 Supplies & Services148,872231,455 TOTAL EXPENDITURES 375,372464,695 STORMWATER ADMINISTRATION Personnel89,215102,521 Supplies, Services & Taxes187,529214,463 TOTAL EXPENDITURES 276,744316,984 TOTAL O& M EXPENDITURES 1,440,2701,626,155 Capital464,000360,000 Transfers246,759250,988 Debt16,96616,800 Ending Balance636,467319,535 TOTAL EXPENDITURES 2,804,4622,573,478 GOLD MOUNTAIN GOLF Enterprise Fund - 407 Mission Statement: Bremerton Parks is committed to operating a 36 hole golf complex at Golf Mountain that offers exceptional quality of play and affordable pricing to members of the golfing public. Function Description: This is an enterprise fund established to provide for the operation and maintenance of the Gold Mountain Golf Complex. While the complex is administered by the Director of Parks and Recreation, it has a Board of Directors responsible for operating the complex as a business with the objective of providing quality golf experiences meeting the needs of the golfing community and ultimately providing capital funding support to the Parks and Recreation Department. Gold Mountain is operated through a golf management and a maintenance agreement with private contractors. The Gold Mountain Golf Complex is a full service facility with two 18 hole championship courses (the Cascade Course and the Olympic Course), four practice putting greens, two bunker practice areas, a 100 yard wide natural grass practice tee/driving range, a private covered teaching studio, pro shop, and restaurant and banquet facilities to accommodate nearly 400 people. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 321,434367,242340,242340,242 Taxes0 Licenses & Permits 0 Intergovernmental0 Charges for Services 2,240,571 3,387,674 3,617,000 3,669,296 Fines & Forfeits 0 Other Revenue 1,273,997 200,91599,00096,444 TOTAL 3,836,002 3,955,831 4,056,242 4,105,982 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel73,33883,24086,62055,409 Supplies, Services & Taxes 2,623,959 2,877,907 2,909,504 3,035,914 Capital Expenditures 146,66634,10697,20152,000 Debt Service 624,797620,336622,646622,115 Transfers 0 Ending Fund Balance 367,242 340,242 340,271 340,544 TOTAL 3,836,002 3,955,831 4,056,242 4,105,982 Staffing Level 1.550.550.500.95 Budget and Program Highlights: The focus for 2008 will be to develop a long range business plan for Gold Mountain and to increase the focus on marketing golf rounds in a highly competitive Western Washington golf market. Objectives include: • Negotiate Greens Superintendent contract • Increase number of rounds played by 1,500 over 2007 total • Increase customer service and satisfaction for food and beverage operations • Draft Business Plan for review by Mayor and City Council Recent Accomplishments: • Marketing program in conjunction with Haselwood Auto Group • Husky Invitational Tournament Held • Negotiated new Food and Beverage, Pro-Shop and Driving Range Lease and Golf Management Agreements • Upgrade Course Marshall Program • Renegotiated Operator Contracts Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness Outcome Number of Tournaments Increase marketing efforts Additional tournament play Numerical Value Annual Increased from Prior Year InitiativeOutcome Competitive pricing with other Report and Evaluate green fee structure Market study of fees 2008 like courses Recommendation 2009-2013 Budgetary Considerations: The Parks & Recreation Department will continue to operate and develop the Gold Mountain Golf Complex as a quality golf course, while paying off the construction bonds. The golf market has been fee sensitive for the past 5 years due to a slowing of growth in the sport. However Gold Mountain represents an exceptional value in terms of quality compared with the cost of play. A business plan to increase rounds played, reduce or eliminate bond debt and reduce operating expenses without affecting the quality of play is essential to the long term future of the Golf Complex. UTILITY DEBT RESERVE Enterprise Fund - 499 Function Description: This Utility Debt Reserve Fund accumulates and holds reserves equal to the average annual debt service on loans obtained by the Utilities through the State’s Centennial Clean Water Fund (CCWF) and Water Pollution Control Revolving Fund (WPCRF) loan programs as well as for the outstanding Revenue Bonds issued by the Combined Utility System. The reserves for CCWF and WPCRF loans are required to be accumulated over the first five to six years of the loan’s repayment period and must be held for the life of the loan. The reserves for the senior lien revenue bonds are determined at the issuance of debt and funded by bond proceeds at that time. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 494,194557,8591,117,511 Taxes0 Licenses & Permits 0 Intergovernmental0 Charges for Services 0 Fines & Forfeits 0 Other Revenue 494,19463,66518,00088,876 TOTAL 494,194557,859575,8591,206,387 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel0 Supplies, Services & Taxes 0 Capital Expenditures 0 Debt Service 0 Transfers 0 Ending Fund Balance 494,194 557,859 575,859 1,206,387 TOTAL 494,194557,859575,8591,206,387 Staffing Level 0.000.000.000.00 Budget and Program Highlights: Current balance in the fund combined with the anticipated interest earnings and budgeted transfer from Wastewater Utility System ($33,000) in 2008 covers the computed required reserve fund level for 2008. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Required annual reserve Accumulate sufficient reserves Receive sufficient reserves Fund Balance Annual balance 2009-2013 Budgetary Considerations: Each year the required Reserve Fund level must be computed and adjustments made to ensure the debt reserve is adequately funded in accordance with the terms of the underlying debt obligations. INTRODUCTION Internal service funds are used by governments to account for goods and services provided by one City department for another. Revenues are provided for these support functions from fees which are charged on a cost basis to the departments receiving the services or goods. The 2008 budget includes 3 internal service funds: Risk Management – this fund provides for the administration and maintenance of City risk management functions including the maintenance of reserve funds to provide the City with adequate protection to manage fluctuations in insurance premiums and claims. Equipment Rental Reserve - established to accumulate funds over a period of time to replace vehicles and equipment at the end of their useful life. In addition, this fund tracks the expenditures associated with maintenance and service needs on the City’s fleet of vehicles and large equipment. Information Technology – provides for support functions to the City’s network and technology systems and the maintenance and replacement of hardware and software components. ________________________________________________________________________ Internal Service Funds Overview 2008 Budget Internal Service Funds Information Risk Management Technology $2,553,211 $1,121,509 19% 8% Equipment Rental & Reserve $9,982,619 73% 2006 Actual2007 Budget2008 Budget Risk Management 2,905,7342,593,3982,553,211 Equipment Rental & Reserve 5,321,6137,987,4599,982,619 Information Technology 1,065,9691,127,8021,121,509 Total Internal Service Funds9,293,31611,708,65913,657,339 RISK MANAGEMENT Internal Service Fund - 503 Mission Statement: Assure the cost effective protection of City assets, resources and personnel through the identification and management of the City’s various exposures to loss. Function Description: The Risk Management Fund was established to consolidate the financial recording and administrative tracking of all property and casualty insurance activities in one cost center with joint costs to be shared by all funds as appropriate. Funds are provided for self-insured claims investigation and payment, litigation costs, insurance specification preparation, excess insurance premiums, risk identification and loss control, safety education, and workers compensation. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 1,415,569 1,607,009 1,380,428 1,183,363 Taxes00 Licenses & Permits 00 Intergovernmental00 Charges for Services 00 Fines & Forfeits 00 Other Revenue 1,394,020 1,298,725 1,212,970 1,369,848 TOTAL 2,809,589 2,905,734 2,593,398 2,553,211 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel218,104244,828431,365391,462 Supplies, Services & Taxes 920,680954,970978,670978,386 Capital Expenditures 00 Debt Service 00 Transfers 63,796325,5080 Ending Fund Balance 1,607,009 1,380,428 1,183,363 1,183,363 TOTAL 2,809,589 2,905,734 2,593,398 2,553,211 Staffing Level 1.001.501.751.775 Budget and Program Highlights: •Assure compliance with the State’s industrial insurance laws by providing mandatory workers’ compensation benefits in a cost-effective way. Oversee self-insured claim payments, claimant appeals, and conformity with medical restrictions placed on injured workers. Maintain sufficient reserves to cover incurred losses so operational budgets are not impacted by large losses. •Identify program and project liability loss exposures and hazardous working conditions. Recommend effective prevention, mitigation and financing techniques to City Council, Mayor, department heads, managers, and supervisors. Conduct risk management training for managers and staff and supervise Safety Officer. •Design, negotiate, procure and administer the City’s property, liability, workers’ compensation, and surety insurance and self-insurance programs. Present, negotiate, and resolve City insurance claims and secure recovery from others for damage done to City property. •Investigate, evaluate, defend, and resolve self-insured liability claims presented by attorneys, insurers, businesses, and the public alleging City negligence. Maintain sufficient reserves to cover incurred liabilities so operational budgets are not impacted when a large loss becomes payable. •Review and evaluate proposed City contracts, bid specifications, license applications, and permit requests and recommend risk transfer and reduction techniques. Analyze and approve contractors’ insurance. •Maintain risk management information system for loss reports to City Council, department heads, division managers, and insurers. Prepare complex financial analysis of projected losses, reserves and retention levels necessary for adequate loss financing and budgeting. •Provide direction and support for the Safety and Health Committee and City supervisors as they strive to enhance workplace safety. This includes funding minor equipment purchases designed to reduce exposures to hazardous conditions. Recent Accomplishments and 2007 Initiative Status Recaps: • The risk management fund continues to meet the established goal of maintaining a balance at least equal to the projected fund liability at year end. • Bremerton’s self-insured workers’ compensation assessments to its departments are between 43% and 96% of the Department of Labor and Industries published rates by occupational code. • Through third quarter, 2007, 144 documents were reviewed by risk management to identify and reduce risk. Risk management changes were recommended for 35% of these documents. 90% of those documents were changed to implement risk management recommendations. • The worker injury rate remains lower than the target rate but is increasing and troublesome. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Maintain sufficient funds to cover Minimal impact of large claims Fund equity Numerical value Annual incurred liabilities on operational budgets InitiativeOutcome Lower workers’ compensation Cost effective compliance with assessments than would be L & I published rates Numerical value Annual industrial insurance laws charged by State Fund InitiativeOutcome Review contracts, permits, etc to Recommended contract Number of revised Contract changes reducing risk Annual identify and reduce risk changes implemented contracts InitiativeOutcome Provide a safe workplace for Injuries per 10,000 hours Low rate of worker injuries Numerical value Annual employees worked 2009-2013 Budgetary Considerations: Long-term consideration should be given to the appropriate organizational placement and funding of the Safety Officer position. Currently, the Safety Officer position is located in the Department of Public Works and Utilities, which funds the position's salary, benefits, and most of the administrative expenses. The safety program's effort has been focused on Public Works' issues. City-wide programs need increased attention and direction, clearer supervision and authority, and ultimately direct control by the Office of Risk Management and Safety. EQUIPMENT RENTAL & RESERVE Internal Service Fund - 510 Function Description: The Equipment Rental & Reserve Fund is an internal service fund which finances the fueling, repair and replacement of City vehicles. Revenues are generated through user fees paid by departments utilizing fleet services. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 1,603,687 1,477,283 4,780,184 4,989,995 Taxes0 Licenses & Permits 00 Intergovernmental26,40200 Charges for Services 1,197,386 1,392,248 1,667,858 1,979,004 Fines & Forfeits 00 Other Revenue 1,991,484 2,452,082 1,539,417 3,013,620 TOTAL 4,818,959 5,321,613 7,987,459 9,982,619 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel425,774418,601505,307556,128 Supplies, Services & Taxes 890,635967,3071,132,717 1,411,801 Capital Expenditures 1,010,993 518,4241,310,806 2,018,450 Debt Service 00 Transfers 1,014,274 48,63425,000 Ending Fund Balance 1,477,283 3,417,281 4,989,995 5,971,240 TOTAL 4,818,959 5,321,613 7,987,459 9,982,619 Staffing Level 6.156.156.157.15 Budget and Program Highlights: The division manages the repair and replacement of City vehicles and equipment including fire trucks, police cars, backhoes, road graders and other equipment. ERR is responsible for maintaining vehicle and equipment records, required reports, cost analysis and replacement schedules. Other responsibilities include: •Maintaining fleet availability at 95% or better. •Expanding in-house OEM warranty program. •Reviewing fleet structure with user departments to ensure they have the appropriate equipment for their needs. •Ensuring technicians are up-to-date on needed training and certifications. •Updating fleet replacement and management policies and procedures consistent with the changing customer needs. •Developing a program to begin acquisition of alternatively fueled vehicles. •Providing service, repair and replacement for all remaining Police Department vehicles brought into the ERR Fund in 2004. Initiatives to Support City-Wide Strategic Priorities: GOAL OR Measurement STRATEGIC PRIORITYWhen MEASURECriteria Efficient, Accountable, and Financially Responsible City Governance InitiativeOutcome Implement Program for City Employee Vehicle Efficiency Improvements – Addressing; Trip Reduce Environmental and Employee Vehicle Use Adoption and 2008- Reduction/Single Occupancy Economic Impacts Efficiency Plan Implementation of Plan 2009 Vehicle Use Reduction/Officer Assigned Vehicles Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Develop Program to Begin Increased Fuel Efficiency and Recommended Program & 2007- Implementation of Alternatively Implementation of Plan Cost Savings to the City Plan 2008 Fueled Vehicles 2009-2013 Budgetary Considerations: •Increase staffing level by one full time mechanic to meet the expanding equipment inventory. •Increased fuel costs have been dramatic over the last 18 months. We must assume these costs will continue and increase our efforts to buy appropriate sized vehicles, maximize use of alternative fuel technologies, and reduce, where possible, unnecessary trips. Equipment Rental Reserve Fund 2008 Vehicles SalvageOther Fund/DeptVehicle #DescriptionLIC #ReservesValueFundingTOTAL 001-2014781989 GMC Safari Van06813D27,0001,00028,000 001-20150001 Ford Taurus31906D20,0001,80021,800 001-2015062001 Ford Crown Victoria31924D43,0002,00045,000 001-20151403 Ford Crown Vic33830D35,5001,50037,000 001-20151603 Ford Crown Vic33828D35,5001,50037,000 001-20151703 Ford Crown Vic33827D35,5001,50037,000 001-20151803 Ford Crown Vic33831D35,0001,50036,500 001-25210597 Dodge Caravan25201D31,2002,20033,400 001-25210697 Dodge Caravan25202D31,2002,20033,400 001-25210797 Dodge Caravan20900D31,2002,20033,400 001-25212097 Chevy C30 Ambulance19436D150,0001,000151,000 001-25NEWStaff Vehicle20,00020,000 001-45190596 F350 Svc Truck20874D77,3008,00085,300 001-4519231991 GMC 2500 Pick Up10443D44,0001,50045,500 001-51187698 John Deere 1070 N/A16,4001,50017,900 001-51187998 Toro Ground Mast. MowerN/A52,7003,00055,700 001-51188098 Dodge Ram P/U25270D23,3001,50024,800 001-51188298 Dodge Grand Caravan25273D33,6002,00035,600 001-51188398 Dodge Ram P/U25275D25,6001,50027,100 001-51188498 Chevy 3500 w/Svc Box25277D31,6004,50036,100 001-51188801 Toro IP3020 N/A12,500012,500 001-51188901 Toro IP3020 N/A12,500012,500 1023970Scope meterN/A6,30006,300 10230911987 Intern. 2754 Dump25225D39,0008,00047,000 102NewDump Truck Attachment9,6009,600 10239641996 Nu-Metrics Trf CntrN/A26,700026,700 1023969Sign PlotterN/A9,86008,14018,000 401002590 Intern 2554 Dump10403D126,20012,000138,200 40100281975 Chevrolet C65D2133114,4002,50026,00042,900 401003280 Fruehauf Equipment TrailerD856319,60019,600 401003773 Cat D6 DozerN/A79,0003,00082,000 401003870 Hyster S40CP Fork LiftN/A8,8508,850 401004994 Chevy 3500HD Svc. Truck16045D55,7002,50058,200 401008589 JD 400G DozerN/A70,3003,50073,800 401008785 JD 850 MowerN/A14,400014,400 401009696 Troybuilt TillerN/A3,70003,700 401009897 Ford F350SD Svc. Truck25208D55,2002,50057,700 401NEWVactor Truck400,000400,000 401NEWPick Up Truck20,00020,000 451035883 GMC J9C Brig truckD28664120,0005,000125,000 Total$1,453,810$80,900$483,740$2,018,450 INFORMATION TECHNOLOGY Internal Service Fund - 511 Mission Statement: To empower all City departments to process the information necessary for them to perform their assigned function(s) as efficiently and cost effectively as possible. Function Description: Information Technology provides City departments with customized automated systems, computer hardware/software support, local/wide area network infrastructure support. Information Technology provides design assistance, acquisition, installation, training and maintenance of hardware and software systems. Information Technology is responsible for the day-to-day operation, growth planning and security of all computers and the entire City network. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 106,441167,565259,649175,629 Taxes00 Licenses & Permits 00 Intergovernmental00 Charges for Services 920,526831,948843,153945,880 Fines & Forfeits 00 Other Revenue 5,28266,45625,0000 TOTAL 1,032,249 1,065,969 1,127,802 1,121,509 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel369,362412,795461,488495,750 Supplies, Services & Taxes 436,060322,048410,685447,479 Capital Expenditures 59,26269,97780,00073,000 Debt Service 00 Transfers 01,5000 Ending Fund Balance 167,565 259,649 175,629 105,280 TOTAL 1,032,249 1,065,969 1,127,802 1,121,509 Staffing Level 5.005.005.005.00 Budget and Program Highlights: Administration •Support for the operation of all computers and related equipment and software used on those computers. This includes research, acquisition, installation, training and general support (helpdesk). Functions require communicating and working with department heads and elected officials to identify the level of support required. •Repair/Maintenance of computer equipment and software, including printers and other devices/components. Includes computer and monitor replacement programs. •Support and monitoring of network operation. •Develop an information technology strategic plan with participation of the city department heads to address future direction and decision processes for critical City technology. Internet Connectivity • Information Technology maintains and provides access for City departments to other governmental agencies via the Inter Governmental Network (IGN). This connectivity includes the Court’s access to the Office of Administrator of the Courts for the District Court Information System (DISCIS), the Police Department’s access to State Patrol’s Information System, the Police Department’s access to the County’s I-LEADS Police Records System and various departments’ (DCD, Fire, Tax & License, Engineering) access to the County’s Land Information System (LIS). • In addition to access to other agencies, Information Technology also provides citywide access to the Internet via the same IGN. E-mail • Provide, secure, monitor and retain e-mail for all City users. This includes the provision of an e-mail server, software and backup hardware/software. Document Management •Assist departmental scanning needs. Information Technology will assist departments with their document management needs, maintaining scanners, servers and software. •Maintain Document Servers. •Maintain Scanning Software. •Replacement Scanners. Systems & Programming •Support for the Pentamation Accounting and Payroll products and support for the City’s Tax & License and Utility Billing applications. •Support for all other automated systems used by the City, including Police Records, Land Information System, cashiering. •Purchase of discrete departmental information technology components and the operational costs of shared printers and copiers in the Government Center. Infrastructure Upgrade and Maintenance •Continue to maintain and build out the high speed network providing either gigabit or 100 megabit links to all departments. Add resiliency to the existing infrastructure by providing ready spares for crucial network equipment. The time is here when the City cannot function without network connectivity. Website •The City now has a website that ranks with the best government sites. It is anticipated that during 2008 we will commence interactive website applications. Information Technology provides one-half of the funding for a position in Public Works for Website support. Applications Support •Assist the Finance Division in the continued upgrading of the Pentamation Integrated Accounting Package. •Provide support as needed of the Utility Billing System. •Continued assistance and support to the Public Works and Utilities Department in their implementation of the Cartegraph Inventory and Work Order Application. Wireless Applications Support •Research, acquisition, monitoring and support of all public and private wireless applications in the City. Recent Accomplishments and 2007 Initiative Status Recaps: • Implemented a “Wireless Internet Cloud” in downtown Bremerton. • Designed and programmed City E-News public communication tool. • Designed and programmed Crime Analysis and Engineering Spatial Display programs. Fund Initiatives: GOAL OR Measurement FUND GOALS/INITIATIVESWhen MEASURECriteria Efficiency and Effectiveness InitiativeOutcome Independent Network None/Few Network Improve Network Security Better Data Protection 2008 Penetration Test Breaches InitiativeOutcome Provide Back-up 2008 Provide Service Redundancy Improve Business Continuity Availability of Service Operation at Oyster Bay 2009-2013 Budgetary Considerations: We need to find a long term solution to Information Technology’s space requirements. Demands on the Division continue to show significant annual growth and will eventually exceed the capacity of the staff to handle them. We do not have sufficient space to increase the staffing size. Our server/network core space is full. We have no room to expand existing infrastructure. INFORMATION TECHNOLOGY 2008 BUDGET Beginning Fund Balance 175,629 Interfund Revenue 945,880 1,121,509 Expenditures: Personnel Benefits 495,750 Office Supply 25,500 Small Tools 500 Computer Related 92,191 Professional Services 291,585 Telecomm 2000 Equipment Rental 18,500 Travel 1,500 Interfund Insurance 9,523 Miscellaneous 3,000 Vehicle Expenses 3,180 Capital Outlay 73,000 1,016,229 Ending Fund Balance 105,280 1,121,509 INFORMATION TECHNOLOGY 2008 BUDGET – DISBURSEMENT Disbursements for 2008 for “global” expenditures will be on a per PC basis spread across the whole City. The exceptions to this are that the Court Office will not be charged PC replacement charges or reserve for replacement for those PCs provided by the OAC. BKAT will only be charged support for two PCs, this then covers their network accounts. There will be no support charges for non-networked portable PCs. Per PC charges will be based on a PC population of 312. “Global” charges to be spread across the whole City comprise: 20072008 IT Division Overhead Costs 491,000 522,740 Professional Services Overhead 70,000 101,860 Capital Expenditures 30,000 15,000 Less Reserve Reduction (78,000) 0 TOTAL (a) 513,000 639,600 Chargeable PC Population (b) 270 312 Per PC Charge for Support (a divided by b) $1,900 $2,050 Computer Replacement Program Costs 80,000 80,080 PCs in Program 250 280 Per PC Cost 320 286 INTRODUCTION Trust & agency funds are used by governments to account for assets held in a trustee capacity or as a custodian. The 2008 budget includes 1 trust & agency funds which is being closed out and moved into a separate department in the General Fund: Police/Fire Pension – this fund accounted for payments of medical premiums, pension, and disability payments for firefighters and law enforcement officers hired under the Law Enforcement Officers and Fire Fighters (LEOFF) 1 retirement program. The source of revenue that funds this program comes from the General Fund. The Police and Fire Pensionprogramhas been previously budgeted for in a separate Trust & Agency Fund from 2004 through 2007. A review of Generally Accepted Accounting Principles (GAAP) guidance revealed that this fund does not properly qualify as a Trust & Agency Fund due to the “pay as you go” nature of the City’s funding of this obligation. Accordingly, the Police and Fire Pension Fund is being closed in 2008 and established as a separate General Fund budget department. The only item budgeted in the Trust & agency fund in 2008 is the transfers out of remaining fund balance to the General Fund in order to close the Police & Fire Pension Fund. 2006 Actual2007 Budget2008 Budget Police & Fire Pension 2,320,381 2,636,443 335,000 Total Trust & Agency2,320,381 2,636,443 335,000 ________________________________________________________________________ Trust & Agency Funds Overview POLICE AND FIRE PENSION Trust & Agency Fund - 601 Function Description: This Fund was established to account and record for pension payments for firefighters and law enforcement officers who were hired under the LEOFF 1 Retirement System and Prior Retirement Acts. This program pays for medical premiums, pension and disability payments for law enforcement officers and firefighters hired prior to October 1, 1977 and who are vested in the system. Budget Data Recap: Category - Revenue 2005 Actual 2006 Actual 2007 Budget 2008 Budget Beginning Fund Balance 44,985116,788109,443335,000 Taxes00 Licenses & Permits 00 Intergovernmental38,25141,50443,0000 Charges for Services 00 Fines & Forfeits 00 Other Revenue 2,237,145 2,270,726 2,484,000 0 TOTAL 2,320,381 2,429,018 2,636,443 335,000 Category - Expenditures 2005 Actual 2006 Actual 2007 Budget 2008 Budget Personnel1,953,310 2,052,396 2,290,900 0 Supplies, Services & Taxes 250,282267,179297,6500 Capital Expenditures 00 Debt Service 00 Transfers 0335,000 Ending Fund Balance 116,788109,44347,8930 TOTAL 2,320,381 2,429,018 2,636,443 335,000 Staffing Level 0.000.000.000.00 Budget and Program Highlights: •The Police and Fire Pensionprogram has been budgeted for in this separate Trust & Agency Fund (Fund 601) from 2004 through 2007. Prior to that time period it was included in the General Fund. A review of Generally Accepted Accounting Principles (GAAP) guidance revealed that this fund does not properly qualify as a Trust & Agency Fund due to the “pay as you go” nature of the City’s funding of this obligation. Accordingly, the Police and Fire Pension Fund is being closed in 2008 and established as a General Fund budget “department”. The balance in the Fund as of the end of 2007 (beginning 2008 fund balance) is budgeted to be transferred to the General Fund in 2008 in order to close out this Trust & Agency Fund. CITY OF BREMERTON CAPITAL IMPROVEMENT PLAN 2008 – 2013 A Capital Improvement Plan (CIP) is a multiyear plan that provides a planned and programmed approach to utilizing the City’s financial resources in the most efficient manner to meet service and infrastructure needs. The City has prepared a comprehensive capital projects list as a part of the 2008 annual budget process. This list provides a six-year view of intended projects and serves as a resource for the City Council, City staff, and the citizens of Bremerton in understanding the scope, timing, and funding of key projects. While funding was identified as a part of each project description, some unfunded and underfunded projects have been included for the future periods of 2009 through 2013 in order to keep them in the forefront as targets for grants, ballot measures, and other continued funding efforts. Projects identified to occur in 2008 however were required to have a designated revenue source and are integrated into the City’s annual budget for 2008. The 2008 –2013 Capital Improvement Plan is comprised of general-purpose (municipal capital improvements), transportation, and utility projects. On September 6, 2006 the City Council adopted a separate Transportation Improvement Plan by Resolution no. 3007. In addition, on September 21, 2005 the Council adopted a Wastewater Comprehensive Plan by Resolution No. 2979. Finally, on December 20, 2006 the City Council adopted a Water System Plan by Ordinance No. 4992. These individual components of Bremerton’s Capital Improvement Plan are summarized and then incorporated into this citywide Capital Improvement Plan. These separate plans as previously adopted encompass the vast majority of the City’s planned capital programs and include detailed information on the scope, timing, and reason for their being undertaken. Readers are encouraged to review the separate transportation and utility system capital plans to learn more about the significant programs described for these specific areas. The City of Bremerton considers its six-year capital plan as a long-range plan for addressing capital needs. The purposes and goals of the CIP are to: Provide capital facilities and infrastructure that are needed by the community for civic purposes and support the vision of Bremerton’s future as articulated in the Comprehensive Plan. Support the provision of City services consistent with the expectations of the community, as expressed in the City’s declared level of service standards. Preserve levels of service as growth and development add new demands. Provide facilities that meet special needs of the community. Rehabilitate and/or replace the City’s facilities and infrastructure to extend useful life and assure continued efficiency. In developing the Capital Improvement Plan, the Department of Community Development has worked with Financial Services to ensure that the information required by the Growth Management Act (GMA) has been properly included in the plan. Each item has been reviewed and designated as either integral or not integral to the City’s Comprehensive Plan. If integral, it is noted as to it’s inclusion in the plan and whether it induces growth. Capital Improvement Plan Process The annual update of the capital improvement plan began with a request to the City departments to submit a list of various capital improvement projects to be considered. This was initiated approximately a month prior to the start of the scheduled annual budget development. Financial Services then compiled this list and ensured throughout the development of the annual operating budget that the CIP was kept current and consistent with the operating budget submittals and with the recently adopted Transportation Improvement Plan, Wastewater Comprehensive Plan, and Water System Plan, – all of which were prepared separately by the Public Works Department and adopted by the City Council after separate study sessions and public hearings. The final Capital Improvement Plan was then presented together with the proposed annual budget to the City Council for approval. The Council held public hearings to review the Capital Improvement Plan and annual budget. Upon completion of the public hearing process, the Capital Improvement Plan and annual budget were then be formally adopted by Ordinance. Impact of Capital Improvements on Operating Budget Several projects currently underway or planned for implementation in the 2008 through 2013 timeframe have been identified to have future operational cost impacts for the City. The most significant of these projects are the Harborside Plaza & Commons, Evergreen Park Expansion, and the Bremerton Boardwalk. Each of these projects have been identified as requiring additional staff support for maintenance and operations than is otherwise currently available – particularly in the areas of Parks & Recreation staff and General Facilities staff. These future demands are discussed by these departments in the narrative portion of the budget “2009-2013 Budgetary Considerations”. Overview of the 2008 – 2013 Capital Improvement Plan The 2008 – 2013 Capital Improvement Plan supports the City’s continued commitment to revitalization of Bremerton with the inclusion of major projects that are part of the plan for redevelopment and revitalization, along with other projects that rehabilitate or restore existing infrastructure, including major maintenance projects identified in the plan. The City’s capitalization policy defines capital assets as tangible objects of a long-term character that will continue to be held or used such as land, buildings, machinery, furniture, and other equipment with a life expectancy greater than 1 year and having a value of $5,000 or greater. While the majority of expenditures identified in the Capital Improvement Plan are capital expenditures, there are programs included that are not characterized as “capital” per the City’s accounting policy on capitalization, but are included in the CIP due to their significant impact on infrastructure and as required by state RCW to ensure appropriate eligibility for the use of Real Estate Excise Tax to fund these efforts. Examples of the type of expense that is included in the CIP are; street overlayments and major maintenance, and debt service undertaken to finance City buildings. A summary recap is provided for 2008 showing the capital expenditures ($40,127,123) and expense items ($2,545,296) which together comprise the total Capital Improvement Plan ($42,672,419). The capital expenditures per the Capital Improvement Plan agree to the total budgeted 2008 capital expenditures for the City. The Capital Improvement Plan pages that follow contain brief descriptive narratives for each project as well as identify funding source. The Capital Improvement Plan is consistent with and supports the City’s Comprehensive Plan. Conceptual Image - Harborside Memorial Plaza FINANCIAL SUMMARY- ALL FUNDS 2008 - 2013 CAPITAL IMPROVEMENT PROGRAM FUNDING SOURCES TOTAL CIP CATEGORYPROJECTS200820092010201120122013 General Fund2,256,185702,185421,000331,000281,000276,000245,000 Dedicated Taxes22,417,4093,518,0193,848,8103,888,9353,870,5153,770,6553,520,475 User Fee Assessments38,005,5366,521,5366,835,0006,693,2005,135,4007,800,6005,019,800 Asset Sale or Debt Issuance18,937,7635,637,7631,850,0004,950,0002,000,0004,500,000 Reserves & Fund Balance17,004,56210,998,4442,101,6921,171,0061,362,576928,340442,504 Grants & Other54,617,47215,294,4726,108,00018,345,0007,700,0004,800,0002,370,000 Unidentified (1)35,355,0004,260,0001,375,0001,420,0003,625,00024,675,000 Total188,593,92742,672,41925,424,50236,754,14121,769,49125,700,59536,272,779 EXPENDITURES TOTAL FUND DESCRIPTIONPROJECTS200820092010201120122013 General Fund - Police248,522164,52221,00021,00021,00021,000 General Fund - Fire1,446,173296,555180,618369,000350,000250,000 General Fund - General Facilities543,000112,000161,000110,00060,00055,00045,000 General Fund - Non-Departmental2,462,575412,185408,810409,935410,515410,655410,475 Arterial Streets 23,472,0005,792,0002,480,0004,130,0003,100,0005,200,0002,770,000 Streets 12,620,0191,480,0192,400,0002,185,0002,185,0002,185,0002,185,000 Parking Operating 4,686,300719,300777,000794,200755,400770,600869,800 Police Special Projects 45,00045,000 BKAT 282,00055,000108,00074,00030,0005,00010,000 1% for Arts 264,00064,00050,00050,00050,00050,000 Conference Center Operating 393,00050,00045,000126,00045,00082,00045,000 Public Safety 3,787,1381,437,1382,350,000 General Gov't Capital Improv 125,000125,000 Harborside Plaza & Commons 4,750,0004,750,000 Park Facilities 35,705,0001,025,0002,385,0001,675,0001,720,0003,925,00024,975,000 Boardwalk Project 16,318,0002,725,0003,878,0009,715,000 Water Utility 25,855,0003,982,0002,883,0005,560,0003,350,0007,505,0002,575,000 Gold Mountain Golf 1,582,00052,000430,000380,000345,000215,000160,000 Wastewater Utility 40,064,25012,184,2504,740,0009,945,0007,765,0003,915,0001,515,000 SW Bremerton Sewer 4,750,0004,750,000 Stormwater Utility 2,335,000360,000915,000265,000265,000265,000265,000 Equipment Rental & Reserve 6,506,9502,018,4501,132,074895,0061,267,576796,340397,504 Information Technology 353,00073,00080,00050,00050,00050,00050,000 Total188,593,92742,672,41925,424,50236,754,14121,769,49125,700,59536,272,779 (1)ArterialStreet,Streets,BoardwalkandParksCapitalProjectsFundsmayincludedprojectswithunidentifiedfundingsourcesand/or anticipatedgrantrevenues.TheCIPincludessomeunfundedandunderfundedprojectsforthefutureperiodsof2009through2013inorder tokeepthemintheforefrontastargetsforgrants,ballotmeasures,andothercontinuedfundingefforts.Theseprojectswillnotproceeduntil funding sources and/or awarded grant revenues become available. Capital Improvement Plan 2008 - 2013 Projects by Year Police Project Title200820092010201120122013 In-Car Video 76,00021,00021,00021,00021,00020,000 MILO Training System 73,522 Total Collision/Accident Workstation & Software 15,000 Grand Total164,52221,00021,00021,00021,00020,000 Capital Improvement Plan 2008 - 2013 Projects by Year Fire Project Title200820092010201120122013 Architectural Study for Fire Station Improvements 40,000 Breathing Air Compressors 70,618 Bunker Gear Dryers 19,000 Intersection of Sylvan/Sheridan & Olympus 200,000 Electronic Sign for Station #1 50,000 Emergency Generator for Fire Station #1 50,000 Remodel Fire Station #2 350,000 Remodel Fire Station #3 350,000 SCBA Replacement 296,555 Staff Car 20,000 Grand Total296,555180,618369,000350,000250,0000 Capital Improvement Plan 2008 - 2013 Projects by Year General Facilities Project Title200820092010201120122013 42,000 Fire Station #1, 911 Park Ave - Apparatus Door Impr. 6,000 Fire Station #1, 911 Park Ave - Fire Alarm Panel 70,000 Fire Station #2 5005 Kitsap Way Dormitory Addition 15,000 Fire Station #2, 5005 Kitsap Way - Carpet 5,000 Fire Station #2, 5005 Kitsap Way - Electrical Impr. 5,0005,000 Fire Station #2, 5005 Kitsap Way - HVAC Impr. 10,0005,00010,000 Fire Station #2, 5005 Kitsap Way - Misc. Impr. 5,000 Fire Station #2, 5005 Kitsap Way - Plumbing Impr. 45,000 Fire Station #2, 5005 Kitsap Way - Roof Replacement 10,000 Fire Station #2, 5005 Kitsap Way - Seal Floor 5,000 Fire Station #2, 5005 Kitsap Way, Bunker Lockers 70,000 Fire Station #3 3031 Olympus Dr. Dormitory Addition 15,000 Fire Station #3, 3031 Olympus Dr - Carpet 5,0005,000 Fire Station #3, 3031 Olympus Dr - Electrical Impr. 5,0005,000 Fire Station #3, 3031 Olympus Dr - Mechanical Impr. 5,00010,0005,000 Fire Station #3, 3031 Olympus Dr - Misc. Impr. 5,0005,000 Fire Station #3, 3031 Olympus Dr - Plumbing Impr. 45,000 Fire Station #3, 3031 Olympus Dr - Re-Roof 10,000 Fire Station #3, 3031 Olympus Dr - Seal Floor 5,000 Fire Station #3, 3031 Olympus Dr. - Bunker Lockers 10,000 Fire Station #3, 3031 Olympus Dr. - Custom Cabinetry 5,00015,0005,00025,0005,00015,000 Library Building, 612 5th St. - Misc. Impr. 5,0005,0005,000 Naval Museum - Miscellaneous Impr. 10,000 Police Station, 1025 Burwell - HVAC Impr. 5,000 SOG Building, Misc. Improvements Grand Total112,000161,000110,00060,00055,00045,000 Capital Improvement Plan 2008 - 2013 Projects by Year Non-Departmental Project Title200820092010201120122013 Debt Service On Government Center 412,185408,810409,935410,515410,655410,475 Grand Total412,185408,810409,935410,515410,655410,475 Capital Improvement Plan 2008 - 2013 Projects by Year Arterial Streets Project Title200820092010201120122013 Arsenal Way/ Patten Improvements 2,500,0002,500,000 Harlow Drive Pedestrian Improvements 290,000 Lower Wheaton Way Alignment 100,0001,305,000 Miscellaneous 100,000100,000100,000100,000100,000100,000 Neighborhood Sidewalk Program 100,000100,000100,000100,000100,000100,000 Pacific Avenue Improvements 140,0001,510,000 Park Avenue Signal Upgrades 200,000300,000 Pavement Rating Improvement Project 70,00070,000 Port Blakely Alternative Route Analysis 125,000 SR 303 Corridor 100,000 SR303 11th St. and Warren Ave. 162,000100,0002,300,000 SR304 Navy Yard HWY Stage D 5,000,000 Werner Road Improvements 2,500,0002,500,000 Wheaton Way/Magnuson Intersection 500,000 Grand Total 5,792,0002,480,0004,130,0003,100,0005,200,0002,770,000 Capital Improvement Plan 2008 - 2013 Projects by Year Street Project Title200820092010201120122013 ADA Sidewalk Access 50,00060,00060,00060,00060,00060,000 Green Machine 25,000 Illuminated Street Signs 30,00050,000 Kitsap Way Lighting 125,000 Pavement Management Maintenance 1,340,0192,050,0002,050,0002,050,0002,050,0002,050,000 Phone System Upgrade 40,000 Traffic Signal Equipment Replacement 35,00075,00075,00075,00075,00075,000 Grand Total 1,480,0192,400,0002,185,0002,185,0002,185,0002,185,000 Capital Improvement Plan 2008 - 2013 Projects by Year Parking Operation Project Title200820092010201120122013 Debt Service - Harborside Conference Center 703,800717,000729,200740,400750,600769,800 Harborside Parking Security Camera System 20,000 Parking Facility, 405 WA Ave - Clean Decking 20,000 Parking Facility, 405 WA Ave - Install Railing 20,000 Parking Facility, 405 WA Ave - Re-Bar & Concrete 60,000 Parking Facility, 405 WA Ave - Elevator Landings 10,000 Parking Facility, 405 WA Ave - Replace Cables 15,000 Parking Facility, 405 WA Ave - Re-Seal Concrete 15,000 Parking Facility, 405 WA Ave - Top Coat Elev. Landings 5,500 Parking Facility, 405 WA Ave. - Re-Stripe 10,00010,000 Parking Lot Lighting - Burwell, 4th St & Park 75,000 Parking Lot Sign Replacement - Burwell, 4th St & Park 15,000 Grand Total719,300777,000794,200755,400770,600869,800 Capital Improvement Plan 2008 - 2013 Projects by Year Police Special Projects Project Title200820092010201120122013 Special Operations Group Vehicle 25,000 Unidentified/ Emergent Machinery and Equipm 10,000 Unidentified/Emergent Furniture and Equipm 10,000 Grand Total 45,00000000 Capital Improvement Plan 2008 - 2013 Projects by Year Bremerton Kitsap Access Television Project Title200820092010201120122013 BKAT Production Equipment Upgrades 5,0008,00036,0005,0005,00010,000 Cameras for Public Use 9,000 Computer Replacement 10,00012,000 Edit Stations & Software 4,000 Mobile Production Van 100,00028,000 Studio Relocation 50,000 Grand Total55,000108,00074,00030,0005,00010,000 Capital Improvement Plan 2008 - 2013 Projects by Year One Percent For Arts Project Title200820092010201120122013 Public Art Work 64,00050,00050,00050,00050,000 Grand Total64,00050,00050,00050,00050,0000 Capital Improvement Plan 2008 - 2013 Projects by Year Conference Center Operating Project Title200820092010201120122013 Audio Visual Enhancements 5,0005,0005,0005,0005,0005,000 Augmentation of Place Setting Inventory 5,0005,0005,0005,0005,0005,000 Food & Beverage Enhancements 5,0005,0005,0005,0005,0005,000 Haborview Room Blinds & Shades 30,000 Information Technology Enhancements 5,0005,0005,0005,0005,0005,000 Kitchen Upgrade 30,000 Replace Lobby Carpet 18,000 Replace Lobby Furniture 15,000 Replace Meeting Room Carpets 48,000 Replace Wall Fabric 32,000 Unforeseen & Emergency Conv. Ctr. Repairs 25,00025,00025,00025,000 Grand Total50,00045,000126,00045,00082,00045,000 Capital Improvement Plan 2008 - 2013 Projects by Year Public Safety Project Title200820092010201120122013 Court - New Facility 1,437,1382,350,000 Grand Total1,437,1382,350,0000000 Capital Improvement Plan 2008 - 2013 Projects by Year General Government Capital Improvement Project Title200820092010201120122013 Library Renovation Phase II 125,000 Grand Total125,00000000 Capital Improvement Plan 2008 - 2013 Projects by Year Harborside Plaza & Commons Project Title200820092010201120122013 Harborside Plaza & Commons 4,750,000 Grand Total4,750,00000000 Capital Improvement Plan 2008 - 2013 Projects by Year Park Facilities Project Title200820092010201120122013 30,000 9th St. Mini-Park Shoreline Rehab. & Redevelop. 2,000,000 Acquire East Bremerton Jr. High Property 750,000 Anderson Cove Waterfront Acquisition 440,000 Blueberry Park Development 1,500,000 Bridge to Bridge Trail Acquisition & Develop. 5,000 Cemetery Improvements 10,000 Digital Security System - Sheridan Comm. Build. 20,000 Eastpark Picnic Shelter 550,000 Forest Ridge Park Renovation 6,500,000 Glenn Jarstad Aquatic Center Pool Expansion 160,000 Harborside Restroom 200,000 Irrigation to Street Trees & Flower Baskets 30,000 Ivy Green Cemetery - Construct Office 400,000 Aquatic Center - Major Repair & System Upgrade 65,000 Kitsap Lake - New Shelter/Dock 1,000,000 Kitsap Lake Pedestrian Bike Path 700,000 Kitsap Lake Wetland Boardwalk Trail 325,000 Kiwanis Park - Rehab fields 75,000 Lions Park - Boat Dock Replacement 135,000 Lions Park - Coal Dock Renovation 450,000 Lions Park - Lot Rehab. & Landscape Impr. 85,000 Lions Park - Upgrade Ball field Lighting 35,000740,000750,000 Maintenance Facility Relocation 70,000 Mataan Park Improvements 15,00015,00015,00015,00015,000 Minor Equipment Replacement 25,00025,00025,00025,00025,000 Minor Facilities Improvements 2,500,000 Mosquito Fleet Trail Development 100,000 N.A.D. Marine Park Picnic Area 2,500,000 N.A.D. Marine Park Development Capital Improvement Plan 2008 - 2013 Projects by Year Park Facilities Project Title200820092010201120122013 200,000200,000200,000200,000200,000200,000 Neighborhoods Now 7,500,000 New Community Center 25,000 Off-Leash Dog Park Project 75,000 Pat Carey Vista - Shoreline Rehabilitation 320,000 Pendergast Park - Softball Field Development 150,000 Pendergast Park - Softball Field Drainage 45,000 Pendergast Park - Softball Field Renovation 1,400,000 Pendergast Park - Turf Soccer Field Development 100,000 Pendergast Park Maintenance Facility 30,00030,00030,00035,000 Playground Equipment Replacement 450,000 Riddell Area Neighborhood Park Acquisition 25,000 Senior Center - Kitchen Upgrade 250,000 Senior Center Interior Remodel 20,00010,000 Shelters & Gazebo Renovations 150,000235,000 Sheridan Community Center - Renovation 25,000 Sheridan Comm. Center - Tables/Chairs Replace. 400,000 Sheridan Park Redevelopment 25,000 Stephenson Canyon Trails and Signage 30,00040,000 Tennis Court Resurfacing 60,000 Tree Grates for Downtown 25,00025,00025,00025,00025,000 Unidentified/Emergent Projects 10,000 Upgrade Automatic Irrigation Communications 75,000 Vehicle Equipment Additions 35,000 Warren Ave. Playfield Lighting 300,000 Warren Avenue Playfield Renovation Grand Total 1,025,0002,210,0001,675,0001,720,0003,925,00024,975,000 Capital Improvement Plan 2008 - 2013 Projects by Year Boardwalk Project Project Title200820092010201120122013 Boardwalk - Design & Construction 540,0003,630,0008,575,0004,300,000 Boardwalk - Park Develop., Design & Const. 2,185,000248,0001,140,000300,000 Grand Total 2,725,0003,878,0009,715,0004,600,00000 Capital Improvement Plan 2008 - 2013 Projects by Year Water Utility Project Title200820092010201120122013 30,000850,000 12" Dist. Main 3rd St., High St., and Ohio St. 250,0001,750,000 24' Pipe - C St. from Oyster Bay to National Ave 110,000 Booster Station 3 Abandonment 60,000 Casad Dam Early Warning System 6,000 Clean and Seal Floor at Oyster Bay Warehouse 2,500,000 Construction of Additional Water Storage 1,000,0001,000,000500,000500,0001,000,000500,000 Distribution Main Improvements 40,000360,000 Emergency Source Upgrade 60,000 Equip. Srvs. 100 Oyster Bay - Enclose Work Bay 3,0005,0004,000 Equip. Srvs. 100 Oyster Bay - Misc. Improv. 20,00020,00020,00020,00020,00020,000 Fire Hydrants 150,000 Forestry Office 10,000 Genie Portable Aerial Work Platform 50,000350,000 Gold Mountain Golf Course Irrigation 200,000 Hardening of Casad Dam Overflow 40,000 Heinz Creek Bridge (2000 Rd. Culvert) 50,000 Inserta Valve 50,000 Jarstad Park - Trail/Facilities Improvements 75,000 Manette Bridge Water Main 75,000 McKenna Weir Modification 100,000100,000100,000100,000100,000100,000 Meter Replacement 100,000100,000100,000100,000100,000100,000 Meter Replacement - Large 15,00015,00015,00015,00015,00015,000 Misc Equipment - Utility Operations Manager 400,000375,000 Oyster Bay Remodel & Expansion 50,00050,000 Pressure Relief Valves 10,000 PW&U 100 Oyster Bay Ave - Coat Roof 5,000 PW&U 100 Oyster Bay Ave - Electrical Improv. 15,000 PW&U 100 Oyster Bay Ave - Parking Lot 5,0003,000 PW&U 100 Oyster Bay Ave - HVAC Improv. Capital Improvement Plan 2008 - 2013 Projects by Year Water Utility Project Title200820092010201120122013 5,0005,000 PW&U 100 Oyster Bay Ave - Paint Interior 7,000 PW&U 100 Oyster Bay Ave - Refurbish Floors 50,000 Pump station 17 MCC/Gorst control valve 7,000 Purchase Mueller Tapping Machines 15,000 Rebuild Mueller Tapping Machine 10,000 Rebuild Ridged Pipe Threading Machine 400,000 Reservoir 12 Roof Replace & Seismic Upgrade 25,000275,000 Reservoir 14 Demolition 100,000 Reservoir 15, 18 17, 19, 20 & 5 Isolation Valves 200,000 Reservoir 8 Drain 50,000 Road Easement to Gold Mountain Watershed 20,00020,00020,00025,00025,00020,000 Road Maintenance and Abandonment Plan 200,000300,000300,000325,000325,000350,000 Substandard Water Main Replacement 40,000 Survey Total Work Station - Engineering 65,00065,00065,00070,00070,00070,000 Taps/Meters 75,000 Trailer Mounted Generator 75,000 Twin Lakes Diversion Improvements 100,000700,0002,000,0002,000,000 Ultraviolet Treatment Facility 75,000 Union River Sluice Gate & Diversion to E Branch 50,000500,000 Upgrade Disinfection Syst.- Union River Supplies 200,000 Upgrade SKADA 100,000 Warren and Manette Isolation Valves 200,0001,000,000 Warren Ave Bridge Seismic Upgrade/Joint Repair 100,000100,000100,000125,000125,000125,000 Water Resources Misc Capital Improvements 135,000 Watershed Land Purchase 200,000 Well 1 R Upgrades 75,000 Well 18 Pump and Motor 120,000 Well 22 pump and controls 150,000 West Branch Diversion Expansion Grand Total 3,982,0002,883,0005,560,0003,350,0007,505,0002,575,000 Capital Improvement Plan 2008 - 2013 Projects by Year Gold Mountain Golf Course Project Title200820092010201120122013 Annual Replacement of Capital Equipment 32,00080,00080,000100,00010,00010,000 Clubhouse Interior Upgrades 20,00010,00010,00010,00010,000 Covered Area into Clubhouse 75,000 Covered Storage for Maintenance Facility 10,000 Extend and Improve 9th Hold on Olympic Course 75,000 Install Restroom Facilities 25,000 Install Restroom/Concession Facility 80,000 Maintenance Road Improvements 5,000 Purchase New Chairs 10,000 Replace Irrigation System on Cascade Course 100,000100,000100,000100,000 Road and Cart Path Improvements 40,00020,00020,00020,000 Road and Parking Lot Improvements 25,000 Sand in Bunkers on Cascade Course 75,000 Satellites For Irrigation on Cascade Course 20,00020,00020,00020,00020,00020,000 Tournament Area Cover Project 60,000 Unidentified/Emergent Projects 20,00020,00020,00020,00020,000 Upgrade to Maintenance Facility 50,000 Grand Total52,000430,000380,000345,000215,000160,000 Capital Improvement Plan 2008 - 2013 Projects by Year Wastewater Utility Project Title200820092010201120122013 1,130,000 Anderson Cove CSO 75,000200,000200,000 Beach and Critical Force Main Cleaning 125,0001,000,000 Beach Main Replacement (16" Siphon) 400,0001,600,0002,500,000 Bremerton Boardwalk Sewer 200,000 CIPP Installation Equipment 150,000150,000150,000150,000150,000 Collection Syst. Evaluation & Inspection 75,000650,000200,000 Collection Syst. - Oyster Bay Beach Sewer 65,000800,000 Cross-Town Pipeline Ventilation/Odor Control 100,000 Gorst & W Brem UGA Sewerage - PreDesign 250,0005,000,0005,000,000 Gorst Sewerage - Design and Construction 38,000 Grundotugger 50,000 Improvement Between Schley and Fir Street 50,000 Improvement on Homer Jones 225,000 KL1 Pump Station Upgrade 160,000180,000200,000250,000250,000 Lateral I&I Reduction 15,00015,00015,00015,00015,00015,000 Miscellaneous Equipment 30,000 New roof on WWTP Control Building 396,250375,000 Oyster Bay Remodel & Expansion 1,400,000 Pacific Avenue CSO 1,400,000 Pacific Avenue CSO - Collector SD's 800,000 Pacific Avenue CSO - Trunk SD 300,000 Sheldon Blvd Sewer Replacement 350,000350,000350,000350,000350,000350,000 Substandard Main Replacement Program 100,000 Wastewater Reuse 500,000500,000550,000600,000650,000650,000 WWTP and Pump Station Improv. Program 150,000 WWTP Frontage Improvements 250,0002,500,000 WWTP Outfall 5,000,000 WWTP Upgrade Grand Total 12,184,2504,740,0009,945,0007,765,0003,915,0001,515,000 Capital Improvement Plan 2008 - 2013 Projects by Year SW Bremerton Sewer Project Title200820092010201120122013 Southwest Bremerton Sewerage 4,750,000 Grand Total4,750,00000000 Capital Improvement Plan 2008 - 2013 Projects by Year Stormwater Utility Project Title200820092010201120122013 Catch Basin Replacement 10,00040,00040,00040,00040,00040,000 Culvert at Brentwood Dr & Ostrich Bay Creek 150,000 Eagle Avenue Storm Drain 500,000 Eastpark Stormwater Outfall 100,000 Kitsap Way Storm Drain 150,000 Storm Drainage Replacement Program 100,000225,000225,000225,000225,000225,000 Grand Total360,000915,000265,000265,000265,000265,000 Capital Improvement Plan 2008 - 2013 Projects by Year Equipment Rental and Reserve Project Title200820092010201120122013 Purchase of New City Vehicles 440,000 Replacement of City Vehicles 1,578,4501,132,074895,0061,267,576796,340397,504 Grand Total397,504 2,018,4501,132,074895,0061,267,576796,340 Capital Improvement Plan 2008 - 2013 Projects by Year Information Technology Project Title200820092010201120122013 Network Upgrade-Server Replacement 23,00030,000 Police MCT Program 50,00050,00050,00050,00050,00050,000 Grand Total73,00080,00050,00050,00050,00050,000 Attachment A – Resolution No. 3034 City of Bremerton Financial Goals & Policies The City of Bremerton is accountable to its citizens for the efficient use of public dollars. Resources entrusted to the City should be used in a manner that provides services, public facilities, and infrastructure necessary to meet the needs of the community – both for today and for the future. The following financial goals and policies establish a framework of financial health and stability that is required to meet those expectations. The goals expressed here define what constitutes a “good outcome” for the city in regards to financial planning and decisions. Goals indicate the objectives - while the policies describe actual boundaries (or measurable) that are deemed necessary to achieve those goals. Goals for Financial Sustainability – Diversified annual resources that are sufficient to provide for the regular and ongoing operations associated with core city services – plus enough additional margins to cover debt service requirements and normal (average) ongoing capital expenditures. Debt financing should be used to smooth the effects of unusual or significant amounts of capital expenditures and/or to finance facilities that are dedicated to the benefit of limited users (for example – Local Improvement District “LID”). Policy - The budget and financial plans of the City shall balance recurring operating expenses, debt service, and average ongoing capital requirements to recurring operating revenue. Average ongoing capital requirements are defined to include payments necessary to the various Internal Service funds (i.e. ER&R, and Information Technology) and average recurring capital expenditures. Before the City undertakes capital expenditures or accepts grant funds, the ongoing costs and commitments should be described fully including identification of the revenue sources expected to provide for such ongoing costs- so that proper consideration may be given to the longer term financial sustainability of the project or commitment. Where possible, grants or contributions of capital will be identified for proposed City expenditures. Deficit financing and borrowing will not be used to support on-going City services and operations. Expenses will be reduced to conform to the long-term revenue forecast. Interfund loans are permissible to cover temporary gaps in cash flow, but only when supported by a clear expectation and schedule for repayment Attachment A – Resolution No. 3034 over a short duration of time (3 years or less) and with interest assessed based on the current Washington State Local Government Investment Pool rate. Cash balances in excess of the amount required to maintain strategic reserves may be used to fund one-time or non-recurring costs. Preference should be given to uses that reduce ongoing expenses (for example - early retirement of debt). Replacement Reserves based on expected replacement cost will be collected and placed in the Equipment Rental and Reserve Fund (ER&R) for equipment (other than computer equipment) or vehicles (other than fire engines) with a value of $20,000 or more if it is expected to be a continued need beyond its estimated initial useful life. The cost of computer equipment replacement will be included in the annual payments made to the Information Technology Fund (IT) for each computer by its using department. These payments are based on an expected five- year replacement schedule. In addition to ER&R and IT, other internal service funds may be established to appropriately account for and collect expenses for specific costs with the approval of the Director of Financial Services and the City Council. An amount equal to the annual fractional estimated cost of replacement based on the expected useful life of an asset will be included in the service charges paid by City departments to the various Internal Service funds (i.e. Equipment Rental & Reserve fund and Information Technology). Replacement cost will be reevaluated periodically throughout the life of the asset and replacement reserve charges adjusted accordingly. Assets with an initial value less than $20,000 may be included in the Equipment Rental and Reserve Fund upon request by the using department with the approval of the Director of Public Works and Utilities and the Director of Financial Services. Long-term borrowing will be confined to significant capital improvements (or similar projects) which have an extended life and when it is not practicable to be financed from current revenues. All other available and appropriate sources of financing should be exhausted before long term borrowing is pursued. Bonds cannot be issued for a longer maturity schedule than a conservative estimate of the weighted average useful lives of the assets to be financed. The City will keep the average maturity of general obligation bonds at or below twenty years. Where possible, the City will use special assessment revenue, or other self- supporting bonds instead of general obligation bonds. The City Utility Systems shall strive to maintain a minimum debt service coverage (annual gross revenues less annual operating and maintenance expenses divided by annual debt service) of the combined Utilities (Water, Wastewater, Stormwater) of at least 1.5x. Attachment A – Resolution No. 3034 Goals for Financial Flexibility – Sufficient operating reserves (working capital) to manage monthly and daily cash flow variability. Adequate liquidity to provide for limited interruptions in revenues (natural disasters, unexpected loss of revenue source, etc). Contingency and reserve funds should be available for use in the event of emergency and/or unforeseen events. Policy – The City will maintain reserves required by law, ordinance, and/or bond covenants. The City will strive to maintain ending cash and investment balances in the General Fund of no less than 8.5% of total planned annual operating expenses. The City will strive to maintain ending cash and investment balances of no less than 12% of total planned annual operating expenses for the Gold Mountain Golf Complex, Water Utility, Wastewater Utility, and Stormwater Utility. The City will strive to maintain a balance of at least $1,000,000 in the Contingency Reserve fund as a provision for unforeseen or catastrophic events and emergencies. Goals for Stewardship of Public Funds – Maintain public trust and confidence by utilizing resources in the most efficient manner possible. Expenditures should be necessary to either: meet regulatory requirements o provide core city services o contribute to the achievement of stated goals and policies o or undertaken in anticipation of an emerging requirement. o Policy – Budget managers will provide sufficient documentation to support requested budget appropriations and in a manner that clearly demonstrates that the expenditure is necessary to either meet regulatory requirements, provide core city services, or contributes to the achievement of stated goals or policies of the City. A comprehensive multi-year (minimum of six years) plan for City capital improvements will be prepared and updated annually. The Capital Improvement Plan will be consistent with and support the City’s Comprehensive Plan. The Comprehensive Plan service level goals should be included in the Capital Improvement Plan. Attachment A – Resolution No. 3034 Goals for Accountability – Reports demonstrating the status of financial activity and results should be prepared on a timely basis and in compliance with BARS and GAAP accounting requirements. Reports showing the status of financial policy compliance should be provided periodically. Ensure the legal use of public assets through an effective system of internal controls. To ensure all local, state, and federal rules are followed. Policy - An annual audit will be performed by the State Auditor’s Office and include the issuance of a financial opinion. A Comprehensive Annual Financial Report shall be prepared in accordance with generally accepted accounting principles (GAAP) and shall be distributed to the City Council, Mayor, Director of Financial Services, Department Directors, City Audit Committee, and any other interested party. Quarterly a budget status report will be prepared and distributed to the City Council, Mayor, and Department Directors providing an overview of financial activities for the City with comparison to the approved budget. Information on the status of compliance with financial policies will be provided in this report. Regular monthly financial statements will be prepared on a timely basis and posted for review on the City’s internet and intranet site. The City will maintain a budgetary control system to ensure compliance with the approved budget. The City will maintain adequate internal controls to safeguard public assets. The Director of Financial Services will work cooperatively with the City’s Internal Auditor and the Audit Committee to identify and address material deficiencies in internal controls. The City shall manage and invest its residual cash through the City Treasurer on a continuous basis in accordance with the City’s investment policies and within the guidelines established by the Washington State Statutes based upon the following order of priorities: 1) safety, 2) liquidity, and 3) yield. CITY OF BREMERTON, WASHINGTON The City of Bremerton is located in Kitsap County in Washington State. The City lies east of the Olympic Mountains directly across Puget Sound from Seattle. For over a century, Bremerton has been home to Puget Sound Naval Shipyard which continues to service U.S. Navy ships and its yard employs over 9000 civilians and nearly 6,000 active duty military. Bremerton was incorporated on October 14, 1901, and operates under the laws of the State of Washington applicable to a home-rule charter city with a Council/Mayor form of government. The City is a general purpose government which provides police, fire, water, wastewater, street maintenance, parks and recreation, planning and zoning, municipal court and general governmental services to it residents. The downtown core is undergoing a comprehensive revitalization with a new Conference Center, parking A second garages, a hotel, three condominiums, Harborside Park, as well as a new Government Center. hotel, Boardwalk project, a Ferry Terminal Traffic Tunnel, a retail development project, and Harborside Plaza and Commons are currently under design and construction. Bremerton Community Events FirstFridayArtWalk –ThefirstFridayofeverymonthgalleries,museumsandbusinessesin downtownBremertonandManettestayopenlatetoprovideopportunitytoenjoyBremerton’s culture and unique shops. SecondFridayArtsWalk– HeldthesecondFridayof themonthintheCharlestonDistrict.Businessesand galleriesintheareahaveextendedhourstoservethe needs of residents and tourists alike. AllCityArtsWalk- Bremertoncelebratesartand culturethefirstSaturdayinJune.Peoplegatherindowntowntocelebratetheartsbyenjoying gallery exhibits, music, sidewalk sales and children's activities. St.Patrick’sDayParade –Everyone canbeIrishfortheday.Enjoyfestival activitieswhilebagpiperspassbyonthe paraderoute.Thisannualdowntown gatheringiscoordinatedbyBremerton Main Street Association. ArmedForcesFestival -CoordinatedbytheBremertonChamber,thisisourspecial"thankyou" tothehard-workingmenandwomenofourArmedForces.Bremertonhasthedistinctionof coordinatingthenation'slargestandlongest-runningArmedForcesDayParadeonthethird SaturdayofMay.Theparadebeganin1948-twoyearsbeforeArmedForcesDaybecamea federally recognized holiday. ConcertsontheBoardwalk -JoinusonfourconsecutiveFridaynightsinJulywhenthe Bremertonwaterfrontboardwalkbecomesanopenconcertseries.Thiseventisoneofthemost popular downtown summer events of the season. BlackberryFestival -LaborDayweekendprovidestheperfectopportunitytocelebratesummer ontheboardwalk.Jointhousandsofpeoplesamplingblackberryfavoriteswhileenjoyinggreat weather, live music and family activities. DowntownTrick-or-Treating -HalloweenisbroughttoyoucourtesyoftheDowntown Bremerton Association. Safe trick-or-treating is an annual family event enjoyed by all. Winterfest -ComecelebratewiththeannualtreelightingandthearrivalofSantaindowntown andinManette.HeldthefirstFridayinDecember,thisfamilyfriendlyeventprovidestheperfect opportunity to celebrate the holiday season. LightedBoatParade -PresentedbytheBremertonYachtClub,boatsdecoratedwithholiday lights glide along the shoreline in mid-December. COMMUNITY WEB SITES Bus Schedules (Kitsap Transit)Naval Undersea Warfare Center Division Keyport www.kitsaptransit.org www.keyport.kpt.nuwc.navy.mil Bremerton Chamber of Commerce Puget Sound Naval Shipyard & Intermediate www.bremertonchamber.org Maintenance Facility Ferry Schedules www.psns.navy.mil www.wsdot.wa.gov/ferries Newspapers Home Builders Association of Kitsap CountyKitsap Peninsula Business Journal www.kitsaphba.comwww.kpbj.com HospitalsBremerton Patriot Harrison Hospital www.bremertonpatriot.com www.harrisonhospital.org Central Kitsap Reporter Naval Hospital Bremerton www.centralkitsapreporter.com http://nh_bremerton.med.navy.mil Kitsap Sun Kitsap Conference Center at Bremerton Harborside www.kitsapsun.com www.kitsapconferencecenter.com Bainbridge Island Review Kitsap County Association of Realtors www.bainbridgereview.com www.kitsaprealtor.org North Kitsap Herald Kitsap County Consolidated Housing Authority www.northkitsapherald.com www.kccha.org Port Orchard Independent Kitsap County Government www.portorchardindependent.com www.kitsapgov.com Olympic College Kitsap County Health District & Public Health www.oc.ctc.edu www.kitsapcountyhealth.com Port of Bremerton Kitsap County Parks & Recreation www.portofbremerton.org www.kitsapgov.com/parks Washington State Department of Revenue Kitsap Peninsula Visitor & Convention Bureau www.dor.wa.gov www.visitkitsap.com Washington State Employment Security www.golfkitsap.com Labor Market & Economic Analysis Branch Kitsap Regional Economic Development Agency www.wa.gov/esd/lmea www.kitsapeda.org Washington State Labor Market Analysis Navy Web Sites www.access.wa.gov Commander Navy Region Northwest Washington State Office of Financial www.cnbs.navy.mil Management Commander Submarine Group 9 www.ofm.wa.gov www.csg9.navy.mil/html/top.ssi Washington State University, Washington Naval Base KitsapCenter for Real Estate Research www.nbk.navy.milwww.cbe.wsu.edu/~wcrer MISCELLANEOUS STATISTICS DATE OF INCORPORATION October 14, 1901 FORM OF GOVERNMENT Council - Mayor TYPE OF GOVERNMENT Home-Rule Charter DEMOGRAPHICS IN 2007 Total Area for City of Bremerton23.0 Square Miles NUMBER OF CITY EMPLOYEES Full-Time Equivalents371.98 FIRE PROTECTION Number of Personnel58 Number of Stations3 Fire and Aid Calls - 20077,529 Priority 1 Response Time (minutes)5:43 POLICE PROTECTION Number of Police Officers83 Calls for Service - 200755,128 Average Priority 1 Response Time (minutes) 3:06 Average Priority 2 Response Time (minutes)3:50 PARKS & RECREATION Number of Developed Parks34 Number of Park Acres696.02 Senior Centers1 Community Pool - Jarstad Aquatic Center1 Golf - Gold Mountain Golf Complex1 Ice Arena - Bremerton Ice Arena1 WATER UTILITY SERVICES Residential Accounts15,744 Commercial Accounts1,733 Storage Capacity - Gallons33,240,000 Average Daily Demand - Million Gallons per Day7.7 Reservoirs16 Watershed Land (square miles)12.96 Sources: Surface Supply - 60% 60% Ground Supply - 8,200.000 Gallons per Day Capacity13 Miles of Main299.5 Bremerton supplies 3.3 billion gallons of water each year to 55,000 people, representing 36% of all the water supplied in Kitsap County. Bremerton regularly monitors the physical, chemical, and bacteriological characteristics to ensure that the drinking water is safe and water quality is the best possible. SEWER UTILITY SERVICES Residential Sewer Accounts9,239 Commercial Sewer Accounts873 Miles of Main188.25 Miles of Force Main16 Pump Lift Stations36 Sewage Treatment: Average Annual Flow - MGD7.6 Hydraulic Peak Capacity - MGD32 Solids Treated Tons/Year: Wet Tons3,624 Dry Tons644 Bremerton's sewage system provides sewer service to approximately 37,000 people. The wastewater collection system serves City residents as well as nearby areas in unincorporated Kitsap County. STORMWATER UTILITY SERVICES Residential Accounts9,717 Commercial Accounts1,007 Miles of Mains114.12 It is the mission of the Stormwater Program within the Department to control flooding, enhance water quality, protect sensitive habitat areas, and optimize the recharge of local aquifers. CITY STREETS Street Miles159.44 State Highway Miles10.5 Miles of Sidewalks103.75 Signalized Traffic Intersections37 Street Lights: City Owned371 Leased from Puget Sound Energy1699 FORESTRY Water and Utility Forest Lands (square miles)8,500 Miles of Forest Roads60 PUBLIC SCHOOLS Bremerton is served primarily by Bremerton School District #100. A small percentage of children attend Central Kitsap School District #401. Elementary6 Middle School1 Junior High1 High School1 Vocational School1 COLLEGES Olympic CollegeNavy College Naval Kitsap Bremerto 1600 Chester Ave., Bremerto n n 360 792-60502255 Cole Ave. Bldg. 853, Bremerto n 1 800 259-6718360 476-4282 Ext. 9176 HOSPITALS Harrison Medical Center Naval Hospital Bremerton 2520 Cherry Ave., Bremerton1 Boone Road, Bremerton 360 377-39111 800 422-1383 LOCAL TRANSPORTATION Washington State Ferries Seattle Bremerton Route - Total Annual Rides (2006)2,415,438 Kitsap Transit (2006) Foot Ferry Port Orchard Ferry Dock - Annual Rides340,310 Annapolis Ferry Dock - Annual Rides113,152 Buses Annual Bus Rides (Bremerton)1,693,636 Kitsap Access Bus (County Wide)435,624 Sources: Washington State Ferries Kitsap Transit BREMERTON AND KITSAP COUNTY HOME SALES Source: Kitsap County Consolidated Housing Authority 2007 Summer Trends Report APARTMENT & OFFICE SPACE VACANCIES THROUGHOUT KITSAP COUNTY Source: Kitsap County Consolidated Housing Authority 2007 Spring/Summer Trends Report, Bradley Scott, Inc. CITY OF BREMERTON DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS FiscalPoulation *PercenSchool **# of ***Rate of *** pt* YeaNumbeChaneEnrollmentHousin UnitsUnemloment rrggpy 199837,749(2.20)6,55216,6855.2 199936,270(3.92)6,13816,8035.0 200036,160(0.30)6,05816,7965.6 200137,2603.046,00116,7446.0 200238,6043.615,89416,5766.1 200338,7300.335,78716,6175.4 200437,520(3.10)5,70316,6155.9 200534,580(7.84)5,41216,6075.1 200635,9103.855,20916,6154.7 200735,810(0.28)5,13016,7974.4 *State of Washington Office of Financial Management **State of Washington, Office of Financial Management, Office of Superintendent of Public Instruction. State of Washington, Office of Financial Management. *** State of Washington, Employment Security Department. **** 1,568,585,817 CITY OF BREMERTON PRINCIPAL PROPERTY TAXPAYERS FOR THE YEAR ENDED DECEMBER 31, 2006 Percen t 2006 Assesse of Total d Type of Businessaluation NameAssessed Valu V e Bay Point Retirement CommCare Facility9,368,7400.3% Beta East Town CntrCommunity Center10,708,5500.4% Bremer TrustProperty Management15,440,9000.6% Capital Inc. MortgageBusiness Services8,777,5200.3% FLT RE 1 LLCProperty Management8,870,4000.3% Kitsap Community Federal CUCredit Union17,109,0800.6% Merit CompanyBusiness Service8,146,9200.3% s Puget Sound Energy EleUtility30,938,4551.2% c R & L Property Mgmt LLCuto Dealer8,856,7900.3% As Ship II Bremerton LLCpartments13,235,1100.5% A Total Taxable Assessed Valu e of 10 Largest Taxpayer122,083,7254.6% s Total Taxable Assessed Valu e of all Other Taxpayers2,560,936,32695.4% Total Taxable Assessed Value of all Taxpayers2,683,020,051100.0% CITY OF BREMERTON RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES LAST TEN FISCAL YEARS Ratio of Deb t TotalTotal Service To Genera l FiscalDebtGeneral Expenditure s YeaPrincialInteresServiceExendituresPercent rptp() 1997335,781330,933666,71424,876,2132.68 1998458,769271,955730,72434,050,4172.15 1999457,391265,036722,42729,621,8622.44 2000425,716242,742668,45830,078,2912.22 2001370,000222,556592,55634,769,8951.70 2002865,000201,0521,066,05232,755,3353.25 2003714,0001,098,8321,812,83247,892,5863.79 2004737,5001,190,8321,928,33249,297,2833.91 20051,060,8631,367,1912,428,05436,478,3076.66 20061,367,0001,380,1522,747,15237,261,8117.37 Includes general, special revenue and debt service funds; does not include Golf Course Bonds . CITY OF BREMERTON WATER AND SEWER REVENUE BOND COVERAGE LAST TEN FISCAL YEARS MaintenanceNet RevenueCurren t iscalGross& OeratinAvailable FoCurrenCoverae Fpgrtg YeaRevenueExensesDebt ServicePrincialInteresTotalRatio rp*pt 199718,663,01711,688,7706,974,2471,515,0001,211,8262,726,8262.56 199814,185,2769,261,5944,923,6831,650,0001,060,3502,710,3501.82 199916,723,5268,648,9958,074,5311,650,0001,031,6382,681,6383.01 200017,465,1419,324,8248,140,3171,735,000973,7252,708,7253.01 200115,698,6648,562,3597,136,3051,830,000878,3002,708,3002.63 200216,447,1328,770,2777,676,8552,025,000735,2002,760,2002.78 200317,724,9199,759,0037,965,9162,145,000657,6202,802,6202.84 200419,014,71011,175,4027,839,3082,270,000533,7202,803,7202.80 200521,180,98511,751,6799,429,3062,390,000413,4102,803,4103.36 200624,909,99912,125,48112,784,5182,555,659305,1442,860,8034.47 * Net of depreciation, amortization and City taxes. RATIO OF NET GENERAL BONDED DEB T TO ASSESSED VALUE AND NET BONDED DEBT PER CAPIT A LAST TEN FISCAL YEAR S G.O.Less Deb% Net Bonded t FiscalssesseBondedServiceNet BondedDebt toDebt Pe Adr YeaPoulationalueDebtFundDebtssessed ValuCaita rpVAep 199738,6001,347,295,68210,190,860234,9529,955,9080.74258 199837,7491,343,271,0679,527,897266,3999,261,4980.69245 199936,2701,410,350,7339,135,759285,5448,850,2150.63244 200036,1601,482,231,2978,440,000327,1318,112,8690.55224 200137,2601,509,101,89910,930,000311,65410,618,3460.70285 200238,6041,568,585,81722,986,363356,52322,629,8401.44586 200338,7301,585,140,39626,962,502375,43626,587,0661.68686 200437,5201,713,798,77033,170,000158,03733,011,9631.93880 200538,7301,848,037,21531,875,139327,26931,875,1391.72823 200637,2592,692,398,79130,318,6641,429,27428,889,3901.07775 City of Bremerton 2008 Fund Matrix by Area of Responsibility GENERAL FUND (001) CITY COUNCIL (11) X EXECUTIVE (12) X FINANCIAL SERVICES (13) X LEGAL (14) X HUMAN RESOURCES (15) X COMMUNITY DEVELOPMENT (16) X MUNICIPAL COURT (17) X CITY AUDITOR (18) X LAW ENFORCEMENT (20) X FIRE/EMERGENCY MEDICAL (25) X POLICE AND FIRE PENSION (28) X GENERAL FACILITIES (49) X PARKS (51) X ENGINEERING (61) X ECONOMIC DEVELOPMENT (62) X NON-DEPARTMENTAL (73) X ARTERIAL STREET FUND (101) X STREET FUND (102) X CONTINGENCY RESERVE (103) X CIVIC IMPROVEMENT (104) X PARKING SYSTEM (105) X COMMUNITY DEVELOPMENT BLOCK GRANT(106) X ABATEMENT REVOLVING (108) X POLICE SPECIAL PROJECTS (110) X PUBLIC ACCESS TELEVISION (113) X GIFT AND DONATIONS (114) PARKS DONATIONS (91)X POLICE DONATIONS (92)X FIRE DONATIONS (93)X MISCELLANEOUS DONATIONS (94)X TRIAL IMPROVEMENT (116) X ONE PERCENT FOR ARTS (117) X City of Bremerton 2008 Fund Matrix by Area of Responsibility CONFERENCE CENTER OPERATIONS(120) X BOND FUND (201) X PUBLIC SAFETY BOND (302) X HARBORSIDE PLAZA & COMMONS (304) X GENERAL GOVERNMENT CAPITAL IMPROVEMENT (308) X PARK FACILITIES CONSTRUCTION (310) X BOARDWALK PROJECT(311) X WATER FUND (401) X GOLD MOUNTAIN GOLF COURSE (407) X WASTEWATER FUND (451) X SW BREMERTON SEWER (452) X STORMWATER FUND (481) X UTILITY DEBT RESERVE (499) X RISK MANAGEMENT (503) X EQUIPMENT RENTAL RESERVE (510) X INFORMATION TECHNOLOGY (511) X POLICE AND FIRE PENSION (601) X BUDGET GLOSSARY ACCOUNTING SYSTEM – The set of records BEGINNING FUND BALANCE – The amount and procedures that are used to record, classify, remaining after accounting for the previous and report information as to the financial status year’s revenues less the previous year’s and operating conditions of an entity. expenditures. ACCRUAL BASIS OF ACCOUNTING -BOND – A debt instrument with a written Under this accounting method, transactions are promise to pay a specified principal amount recognized when they occur, regardless of the along with periodic interest at specific future timing of related cash receipts and dates. Bonds are typically used for the disbursements. Proprietary (enterprise and financing of specific capital expenditures. internal service) and non-expendable trust funds use this basis for accounting. BUDGET – A plan of financial operation embodying an estimate of proposed ANNUAL OPERATING BUDGET – A budget expenditures for a given period and the where the appropriations lapse at the end of the proposed means of its financing (revenue fiscal year. estimates). The term is also sometimes used to denote the officially approved expenditure APPROPRIATION – An authorization made by ceilings under which the City and its the City Council that permits officials to make departments operate. expenditures or incur obligations against governmental resources. Appropriations are BUDGET AMENDMENT – A change to a usually made for fixed amounts and are budget adopted in accordance with State law. A typically granted for a one year period. Multi-budget may be amended to increase year appropriations can also be established for expenditures/expenses at the fund level by capital project and other special purpose funds.ordinance without public notice or public Multi-year appropriation authority remains in hearing requirements, when unanticipated effect until the amount appropriated has been revenues occur or emergencies exist (RCW totally expended or until the fund, program, or 35A.33.080 and 35A.33.120). Also called project is closed because its assigned purpose Supplemental Appropriation. has been changed or accomplished. BUDGET CALENDAR – The schedule of key ASSESSED VALUATION – The estimated dates or milestones that the City follows in value placed upon real and personal property by preparation and adoption of the budget. the Kitsap County Assessor as the basis for levying property taxes. CAPITAL (OUTLAY/ASSET) – Expenditures made to acquire, reconstruct, or construct major B.A.R.S. – The prescribed “Budgeting, fixed or capital assets. A fixed asset is a Accounting, and Reporting System” where tangible object of a long-term character that will compliance is required for all governmental continue to be held or used such as land, entities within the State of Washington. buildings, machinery, furniture, and other equipment. A capital asset must exceed $5,000 BALANCED BUDGET - Revenues (including in cost and have an expected life expectancy of Beginning Fund Balance) equals or exceeds 12 months. For purposes of this definition, a expenditures (including Ending Fund Balance). “fixed asset” includes a group of items purchased together that will be used for a “single purpose” that could not be used FULL-TIME EQUIVALENT (FTE) – An effectively by themselves. expression of staff in terms of full-time employment (40 hours per week). For example, CAPITAL IMPROVEMENT FUND – Account a person who works 40 hours per week is for the acquisition or construction of major described as 1 FTE and 20 hours per week as capital facilities, with exception to those .50 FTE. facilities financed by proprietary and trust funds.FUND – An independent fiscal and accounting entity with a self-balancing set of accounts CAPITAL IMPROVEMENT PROGRAM (CIP)recording cash and/or other resources together – A plan for a capital expenditure to be incurred with all related liabilities, obligations, reserves, each year over a period of five or more future and equities that are segregated for the purpose years setting forth each capital project, the of carrying on specific activities or attaining amount to be expended in each year, and the certain objectives. method of facing those expenditures. FUND BALANCE – The amount of an entity’s CONTINGENCY – A budgetary reserve set assets above the amount of its liabilities. A aside for emergencies or unforeseen negative fund balance is sometimes called a expenditures not otherwise budgeted. deficit. An undesignated fund balance reflects historical receipts less than historical DEBT SERVICE – Payment of interest and expenditures in non-proprietary funds. When repayment of principal to holders of the City’s all designated and reserved resources are debt instruments. removed or deducted in arriving at the year-end undesignated fund balance, the remaining value DEBT SERVICE FUND – Accounts for the is that available for budgetary appropriation. accumulation of resources for and the payment Also called Ending Fund Balance. of principal, interest and other debt service costs relating to the City’s tax anticipation notes. GOVERNMENTAL FUNDS – Funds generally used to account for tax-supported activities. DEPARTMENT – An organizational unit There are five different types of governmental usually within a fund, though in a broader sense, funds: the general fund, special revenue funds, a department can encompass more than one debt service funds, capital projects funds, and fund. Departments can further be segregated permanent funds. into Divisions. GENERAL FUND – Accounts for all receipts ENTERPRISE FUND – Account for City and disbursement transactions associated with operations that are financed and operated in a ordinary City operations not required to be manner similar to private business. The costs of accounted for in another fund. This fund is both providing related services are primarily tax and general revenue supported. Major supported through user charges. revenue sources for the General Fund include property, sales excise, and miscellaneous EXPENDITURE/EXPENSES – The type of permits and fees. accounts that record transactions for the cost of goods received or services rendered whether INTERFUND SERVICES – Payments for cash payments have been made or not. These services rendered made by one City department accounts are called expenditures on the or fund to another. Internal service billings are modified accrual basis of accounting and included in this category. expenses on the accrual basis. INTERNAL SERVICE FUND – Account for OBJECT – As used in expenditure the financing of goods and services provided by classification, this term applies to the type of one department or agency to other departments item purchased or the service obtained (as or agencies of a government, or to other distinguished from the results obtained from governments, on a cost reimbursement basis. expenditures). Examples include personnel services, contractual services, and materials and INTERFUND TRANSFERS – Contributions supplies. from one City fund to another in support of activities of the receiving fund. Equity transfers OPERATING BUDGET – The operating to internal service funds in support of “first budget is the primary means by which most of time” asset acquisitions are included. the acquisition, spending, and service delivery INTERGOVERNMENTAL SERVICES – activities of a government are controlled. Law Services purchased from other governmental requires the use of annual operating budgets. agencies. This normally includes types of services that only government agencies provide. OPERATING TRANSFER – Routine or recurring transfers of assets between funds that INTERLOCAL AGREEMENT – A contract support the normal operations of the recipient between two government entities whereby one fund. government assumes the lead responsibility of a project that overlaps both jurisdictions. PERSONNEL BENEFITS – Employer contributions paid by the City as part of the LEVY – (Verb) To impose taxes, special conditions of employment. Examples include assessments, or service charges for the support health/dental/vision insurance, state public of governmental activities. (Noun) The total employee’s retirement system, and employment amount of taxes, special assessments, or service security. charges imposed by a government. RESERVE – An account used to indicate that a MODIFIED ACCRUAL BASIS – The modified portion of fund equity is legally restricted for a accrual basis of accounting is used in specific purpose. governmental funds (general, special revenue, debt service, and capital project funds), RESOURCE – Total dollars available for expendable trust, and agency funds. Under it, appropriations including estimated revenues, revenues and other financial resource fund transfers, and beginning fund balances. increments are recognized when they become both measurable and available to finance REVENUE – Income received by the City in expenditures of the current period.support of a program of services to the Expenditures are generally recognized when community. It includes such items as property they are incurred (bring forth a liability). The taxes, fees, user charges, grants, fines and City budgets all funds on a modified accrual forfeitures, interest income, and miscellaneous basis.revenue. MULTI-YEAR BUDGETED FUND – A fund REVENUE BONDS – Bonds issued pledging that is not part of an annual operating budget future revenue (usually enterprise charges such since it is budgeted on a multi-year or project as surface water management) to cover debt oriented basis. The appropriation authority for service payments. these funds remains in effect until totally expended or the project has been changed or SERVICES AND CHARGES – An expenditure completed. classification that includes professional services, communication, travel, advertising, rentals, SUPPLEMENTAL APPROPRIATION – An leases, insurance, public utility services, and appropriation approved by Council after the repairs and maintenance. initial budget is adopted. SPECIAL REVENUE FUND – Accounts for TAXES – Compulsory charges levied by a the proceeds of revenue sources (other than government for the purpose of financing special assessment, expendable trusts or major services performed for the common benefit. capital projects) that are legally restricted to expenditures for specified purposes. TRUST FUND – Account for assets held by a government in a trustee capacity for individuals, SUPPLIES – An expenditure classification for private organizations, other governmental units, articles and commodities purchased for and/or other funds. consumption or resale. Examples include office and operating supplies, fuel, power, water, gas, inventory, resale items, small tools and equipment. Commonly Used Acronyms BARS Budget Accounting and Reporting System BKAT Bremerton Kitsap Access Television BMC Bremerton Municipal Code BPOG Bremerton Police Officers Guild CAC Citizens Advisory Committee CDBG Community Development Block Grant CENCOM Central Communications COBRA Consolidated Omnibus Budget Reconciliation Act COLA Cost of Living Adjustment CPI Consumer Price Index CSO Combined Sewer Overflow DCD Department of Community Development DEA Drug Enforcement Agency DOE Department of Ecology DOH Department of Health EMS Emergency Medical Services EMT Emergency Medical Technicians EPA Environmental Protection Agency ERR Equipment Rental Reserve FMLA Family and Medical Leave Act GAAFR Governmental Accounting, Auditing & Financial Reporting GAAP Generally Accepted Accounting Principles GASB Government Accounting Standards Board GIS Geographic Information Systems GMA Growth Management Act HUD Housing and Urban Development IAFF International Association of Fire Fighters ILEADS Intergraph Law Enforcement Automated Data Systems IT Information Technology KPS Kitsap Physicians Service LEOFF Law Enforcement Officers and Fire Fighters LID Low Impact Development MGD Million Gallons per Day MIR Medical Incident Report MRSC Municipal Research Service Center NCIS Naval Criminal Investigative Service PERS Public Employees Retirement System PILOT Payments In Lieu of Taxes PSNS Puget Sound Naval Shipyard RCW Revised Code of Washington REET Real Estate Excise Tax RMAP Road Maintenance and Abandonment Plan SCADA Supervisory Control and Data Acquisition SCBA Self Contained Breathing Apparatus SOG Special Operations Group SSTA Streamline Sales Tax Act TIP Transportation Improvement Plan UGA Urban Growth Areas WAC Washington Administrative Code WESTNET West Sound Narcotics Enforcement Team WWTP Wastewater Treatment Plan