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Home My WebLink About11/02/2017 BUDGET WORKSHOP ___________________________________________________________ th CITY COUNCIL 345 6 Street, Suite 600, Bremerton, WA 98337 Phone (360) 473-5280 NOTICE RE-ISSUED: November 1, 2017 (To amend the time and location) You are hereby notified that the BREMERTON CITY COUNCIL will participate with the Mayor, Department Directors, and City Staff in several BUDGET WORKSHOPS starting th at 4:15 PM in the MAYORS CONFERENCE ROOM located on the 6 Floor of the Norm th Dicks Government Center located at 345 6 Street, Bremerton, WA as follows: Thursday, November 2, 2017 Monday, November 6, 2017 Thursday, November 9, 2017 Tuesday, November 14, 2017 (Only if necessary The 2018 Proposed Annual Budget is available online at: http://www.BremertonWA.gov/1045/2018- Annual-Budget To download the 2018 Proposed Annual Budget as One Document: 2018 Proposed Annual Budget (PDF) The Budget Workshops are open for the general public to attend, however no opportunities will be provided for input or participation Presentation of the final 2018 Annual Budget is scheduled for action at the Council Meeting on Wednesday, December 6, 2017 Notice submitted on behalf of the City Council by: \[~x b|xw Legislative Assistant Bremerton City Council City.Council@ci.bremerton.wa.us www.BremertonWA.gov Americans with Disabilities Act accommodations provided upon request. Those requiring special accommodations -5323 at least 24 hours prior to the November 2, 2017 2018 Proposed Budget Workshop (optional) – th 9 Public Works and Utilities Departments City Wide Revenue and Expenditure OverviewAll Governmental FundsQ & ADeliberationsFinal Q & A •••••• November 2ndNovember 6thNovember November 14th Questions during the presentation should be limited to clarifying questions. All other questions or requests for information should be held until the end of the presentation.Tonight’s Presentation will be emailed after the meeting and posted on the City’s website.Questions and requests for information after this workshop should be emailed to DeWayne Pitts or Caroline Tompson and copied to City Council. Responses that are emailed in advance of the next meeting will be copied to all.Council suggested changes to the budget as presented will be presented and discussed at the November 9th workshop. and available th . th End Estimates - Determines Budgeted Beginning Fund Balance – End Estimates Submitted - r Personnel Estimates CalculatedBenefit Assumptions IdentifiedRevenue Budgets & 2017 YearExpenditure Budget Requests Submitted2017 YearCIP FinalizedPreliminary ReviewProjections Updated Budget Balancing2018 Proposed Budget Presented to Council on October 25on the City’s website October 26 ugust •••••••••• JuneJulyASeptembeOctober 14 - Property Tax LevyAdoption of Rates and Fees Budget WorkshopsPublic Hearing on Revenue BudgetActions that Support the BudgetAdoption of 2018 Budget Nov 2Nov 15Dec 6 ••• NovemberDecember (page 9) (page 23) wide (page 24) - 2018 – Budget SummaryFund and Department Revenue and Expenditure recap Proposed staffing changes cityHistorical staffing 2012 Overview tab contains a high level overview of the proposed budget. BMC 3.02 establishes the structure of the City’s budget. The expenditure budget is adopted by department and category group. There are five category groups: Personnel, Supplies and Services, Debt Service, Capital Expenditures and Transfers.The code also places limits on the authority of the Mayor to authorize transfers between these category groups. (generally limited to $10,000 one time per year)Departments are not authorized to exceed the authorized budget without City Council approval. revenue (page 164) % 1,152,230 Goals & Policies Target, $ General Fund 8.5%Enterprise Funds 122018 Balance recurring expenses to recurring operating Replacement Reserves for Equipment (ERR) and IT replacementsMaintain required Debt Service Coverage in utility funds of 1.5x. Average current Debt Service Coverage is 8.5xMaintains ending cash and investment balancesMaintains Contingency Reserve balance ••••• Financial Aa3 2018 $42m 8.50% $6.1m 14.47%16.67% Aa3 2017 $41m 8.50% $7.2m 17.60%16.67% A1 2016 $41m 8.50% $7.5m 18.32%16.67% A1 2015 $37m 8.50% $5.3m 14.14%16.67% grade (examples, Aa1, Kirkland, Spokane, Aa2, Kitsap Cnty, Olympia, Aa3, - medium bonds of poor - - high speculative term Debt Ratings- - A1 - upper medium grade (examples, Kent, subject to high credit 2014 - $35m - 8.50% $4.6m 3 13.36%16.67% highest rating, representing minimum credit risk (examples, Seattle, Bellevue) - highly speculative -lowest rating, bonds, typically in default, little prospect for recovery - Moody's LongInvestment GradeAaaAa1, Aa2, Aa3 Tacoma)A1, A2, A Des Moines)Baa1, Baa2, Baa3 grade Speculative GradeBa1, Ba2, Ba3 elements B1,B2, B3 risk Caa1, Caa2, Caa3 standing Ca C A1 2013 $34m 8.50% $4.6m 13.63%16.67% 2018 A1 2017 2012 $34m 8.50% $4.1m 12.15%16.67% GFOA Best Practice 2016 A1 2015 2011 $34m Policy 8.65%8.50% $2.9m 16.67% 2014 2013 2012 2011 Fund balance as % of opertating exp % of Annual Annual Exp. 8.00%6.00%4.00%2.00%0.00% 20.00%18.00%16.00%14.00%12.00%10.00% General Fund BalanceActual Operating expenditures% of Annual Annual Exp.PolicyGFOA Best PracticeCurrent Bond Rating Aa3 (Moody)Moody's bond rating increased in 2017 from A1 to Aa3 (page 102) (page 157) 0.05% 8% 1.45% – – – Adopted Debt Service Schedules – 11.95% 5.43% 3% 11% 12.70% – – 9% (page 23) – – – – Projects Identified in CIP – AWC LEOFF PLAN B & F Kaiser Dental PERS PSERS LEOFF Budget Incorporates Previously Approved PositionsMedical Benefit AssumptionsPension Rates (City Contribution)Employment Security Accumulated Leave ••••• Personnel Debt Service Capital 426,268 6,108,6923,397,2653,511,1217,544,750 14,684,27135,672,367 Fund Ending Balance 8,628,8602,434,6726,987,0156,902,908 42,201,72955,724,428 122,879,612 Budget Expenditure 7,754,7452,430,7915,778,4516,638,017 41,081,95243,376,874 107,060,830 Budget Revenue 430,149 7,228,4694,271,3804,719,6857,809,641 27,031,82551,491,149 Balance Beginning Fund Funds Type Fund General FundSpecial RevenueDebt Service FundsCapital Improvement FundsEnterprise FundsInternal Service FundsTotal Budget includes planned spending for capital improvement projects. Other 0.61% Revenue 25,085,71314,520,11514,608,093 0.11% Forfeits Fines & 1,549,1741,557,8001,559,450 4.03% Services 47,696,46745,271,51147,096,526 Charges For -59.21% 4,542,4514,849,360 11,888,965 Intergovernmental Wide Revenue Comparison - 2.00% City Permits 1,499,8461,500,6851,530,769 Excluding Beginning Fund Balance Licenses & Taxes 5.88% 34,998,30935,338,64037,416,632 0 60,000,00050,000,00040,000,00030,000,00020,000,00010,000,000 2016 Actual2017 Budget2018 Budget% Change 1.79% Transfers 8,590,2495,365,7645,461,574 Capital -26.91% 9,940,332 33,428,93224,433,464 0.92% 7,221,4217,590,1647,659,648 Debt Service 6.95% (Excluding Fund Balance) Wide Expenditure Comparison - 39,167,47339,051,92641,767,476 Supplies & Services City 3.92% Personnel 37,020,29641,916,05643,557,450 0 5,000,000 50,000,00045,000,00040,000,00035,000,00030,000,00025,000,00020,000,00015,000,00010,000,000 2016 Actual2017 Budget2018 Budget% Change page 76 9,023 69,63974,31542,165 366,828331,445273,225188,263154,555205,516530,061 1,152,230 $3,397,265 Fund Ending Balance 0 1,200 84,00018,00014,000 810,000701,395218,500536,597 2,931,4631,545,7141,767,991 $8,628,860 Budget Expenditure 2,800 27,00043,00020,30012,800 120,974607,500591,000474,355 2,589,5581,491,0001,774,458 $7,754,745 Budget Revenue 2,556 68,03972,01543,365 708,733533,945327,939298,658211,555381,016592,303 1,031,256 $4,271,380 Fund Balance Beginning Revolving Access Television Donations Percent for Arts StreetContingency ReserveLodging TaxParking SystemCDBGAbatementPolice Special ProjectsPublicGift &Trial ImprovementOneConference Center OperatingTotal “Funds used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects.” Other 9.70% Revenue 3,140,8192,650,3282,907,374 Forfeits Fines & 312,664354,150265,000 -25.17% -9.44% Services 1,463,4101,755,2271,589,613 Charges For 3.17% 1,431,8981,279,0201,319,558 Intergovernmental 0.00% Permits 295,523293,200293,200 Licenses & Special Revenue Funds Revenue Taxes -21.81% 1,689,3641,765,0001,380,000 0 500,000 -500,000 3,500,0003,000,0002,500,0002,000,0001,500,0001,000,000 2016 Actual2017 Budget2018 Budget% Change 58.92% 476,555325,000516,500 Transfers Capital 410,922380,000155,000 -59.21% 13.56% 494,858535,685608,308 Debt Service 3.59% 4,819,4785,331,6095,523,252 Supplies & Services Special Revenue Funds Expenditures 1.74% 1,495,8701,794,5901,825,800 Personnel 0 6,000,0005,000,0004,000,0003,000,0002,000,0001,000,000 -1,000,000 2016 Actual2017 Budget2018 Budget% Change presentation th Transfer from General Fund $115,974 – Routine Operations and Maintenance Police Special Projects Fund to support Special Operations Abatement Revolving Fund to support Code Enforcement -- – quo program budget - $30,000 $50,000 Group (SOG) See Residential Street and Sidewalk Fund and Transportation Projects Funds for capital and major maintenance projectsMore discussion during November 6Target based on $0.375 per $1,000 of assessed valuation, $1,152,230Charges for services:StatusPublic outreach and workshops planned for 2018 Street Fund Contingency Reserve To help balance the General FundParking Fund •••• Budget Highlights: age 102 P 96,92776,06457,046 196,231 $426,268 Fund restricted, Ending Balance 538,717334,363500,500 1,061,092 $2,434,672 Budget Expenditure 540,056326,000501,600 1,063,135 $2,430,791 Budget Revenue 94,88484,42755,946 194,892 $430,149 Fund Balance Beginning to expenditure for principal and interest….” 2010 LTGO2010 UTGO/LTGO (B)Government Center LTGO2015 Public Safety BondTotal “Funds used to account for and report financial resources that are committed, or assigned refunded - $362,800 - (2.9% reduction from the prior year) $1.36 million - $130,603 - $75,000 $171,500 – - in to support debt service - $320,000 - $859,288$501,000 REET General Fund Parking FundFund debt service on voted 2002 Public Safety Bonds2010Fund debt service on voted 2015 Fire Public Safety Bonds BABS Subsidy Local Revitalization Financing Funding TransfersProperty Tax Levy •••• Budget Highlights: 0 page 110 151,735343,767762,198232,712 2,020,709 $3,511,121 Fund Ending Balance ….” 15,000 950,000330,900 1,374,1001,329,0002,988,015 $6,987,015 Budget Expenditure capital assets 700 5,000 552,000278,187 1,560,0003,382,564 $5,778,451 and other Budget Revenue 52,713 166,035367,649 1,834,8091,120,7671,177,712 $4,719,685 Balance Beginning Fund (REET) Fund Construction “Funds used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities General Gov’t Capital ImpPark FacilitiesResidential Street & Sidewalk FundTransportation ProjectsFire Public Safety CapitalLebo Blvd ConstructionTotal Other 41.46% 228,084609,226861,800 Revenue 0.00% Forfeits Fines & 0.00% Services Charges For -75.48% 1,719,1668,970,2242,199,531 Intergovernmental 0.00% Permits Capital Improvement Funds Revenue Licenses & Taxes 57.73% 1,291,7621,722,6302,717,120 0 9,000,0008,000,0007,000,0006,000,0005,000,0004,000,0003,000,0002,000,0001,000,000 -1,000,000 10,000,000 2016 Actual2017 Budget2018 Budget% Change 25.71% 570,825 Transfers 1,093,0791,374,100 Capital -64.37% 1,958,9074,663,915 13,090,332 000 0.00% Debt Service 32,666 471,554766,000 2244.95% Supplies & Services Capital Improvement Funds Expenditures 00 0.00% 183,000 Personnel 0 8,000,0006,000,0004,000,0002,000,000 -2,000,000 14,000,00012,000,00010,000,000 2016 Actual2017 Budget2018 Budget% Change th Close out project more on November 6 – – REET Revenue, $1.55 millionFunding for General Facilities $100,000, Conference Center $85,000 and Debt Service $320,000, Transportation Projects, $769,100DNR Forestry Management Plan, $15,000$1.329 million program Dedicated Funding from Stormwater Utility Tax, $617,120REET Funding, $769,100Complete Fire Station #2 and #3 remodel project, $950,000 General Government Capital ImprovementParks Facilities ConstructionResidential Street and Sidewalk FundTransportation Projects FundFire Public Safety Capital FundLebo Blvd Construction •••••• Budget Highlights: Page 157 $24.4 million - year capital and - wide capital expenditures - Required for REET fundingRequired for grant funding Similar to the adopted Transportation Improvement Plan (TIP) which was adopted on June 21, 2017Projects identified in the CIP: •• The CIP is a comprehensive sixmajor maintenance program that is adopted with the annual budget. Capital expenditures are programmed in the individual fund budgets.Total city age 145 P 95,741 501,172131,318230,940 2,917,8023,667,777 $7,544,750 Fund Ending Balance provided by one 60,000 300,000 1,648,1971,642,8201,791,0981,460,793 $6,902,908 Budget Expenditure 18,000 378,000 1,648,1971,599,7651,507,9341,486,121 .” $6,638,017 or agencies of a Budget Revenue 53,318 543,172138,796205,612 2,917,8023,950,941 $7,809,641 Balance Beginning Fund to other departments on a cost reimbursement basis or agency Liability Equipment Reserve “A fund used to account for the financing of goods or services department government,… Risk ManagementEmployment SecurityAccumulated LeaveER&R Operations & MaintenanceER&RInformation TechnologyTotal Other 6.50% Revenue 2,775,6673,339,7053,556,631 0.00% Forfeits Fines & 13.87% Services 2,534,7022,706,1093,081,386 Charges For 0.00% Intergovernmental Internal Service Funds Revenue 0.00% Permits Licenses & Taxes 0.00% 0 500000 4000000350000030000002500000200000015000001000000 2016 Actual2017 Budget2018 Budget% Change 000 0.00% Transfers Capital 20.81% 1,045,4071,482,0781,790,429 000 0.00% Debt Service 6.86% 3,000,7063,010,7563,217,329 Internal Service Funds Expenditures Supplies & Services -7.62% 1,305,8202,051,4551,895,150 Personnel 0 500,000 -500,000 3,500,0003,000,0002,500,0002,000,0001,500,0001,000,000 2016 Actual2017 Budget2018 Budget% Change th hire date) hire date) st st $57,750 (July 1 - $101,400 (January 1 - Addresses the increased workload due to new remote devices and increased business analysisProvides support for increased workload in application development Amount charged to other funds will increase by from .85% to 1.45% due to increased number and size of leave payoutsPC Technician Associate Developer Accumulated Leave Liability FundERR Operations and Reserves will be covered on November 6Information Technology ••• Budget Highlights: Legal Human Resources DCD Finance Court Municipal Executive Police Legislative Dept. - Fire Non Pension Engineering Parks Facilities Page 38 % 4.13% 4.65%2.49%3.30%3.92%2.10%1.55% - 6,657 30,08440,00225,650 - 207,657 1,399,694 $1,629,740 Difference 435,740 1,237,5691,171,6685,501,1011,246,450 2018 31,489,424 Budget $41,081,952 429,083 1,211,670 1,207,4855,293,4441,220,800 2017 30,089,730 $39,452,212 Budget & Other In - Category & Forfeitures TaxesLicenses & PermitsIntergovernmentalCharges for ServicesFinesTransfersTotal Other 1.55% 262,619429,083435,740 Revenue 2.10% Forfeits Fines & 1,195,7401,220,8001,246,450 3.92% Services 5,034,0485,293,4445,501,101 Charges For -3.30% 1,160,7501,211,6701,171,668 Intergovernmental General Fund Revenue 2.49% 1,204,3231,207,4851,237,569 Licenses & Permits Taxes 4.65% 30,082,63530,089,73031,489,424 0 5,000,000 35,000,00030,000,00025,000,00020,000,00015,000,00010,000,000 2016 Actual2017 Budget2018 Budget% Change age 38 P 0.6% 100% 27.4% 29.4%31.8%10.8% 181,550 8,627,0009,258,0003,400,000 10,022,874 $31,489,424 Budget (including criminal justice) Tax * Tax reflects exemption increase to $180,000 Tax RevenuePropertySales Tax Utility TaxB&OOtherTotalTaxes represent 76.7% of General Fund Revenue*B&O $3,072,612,490 - Estimated Assessed Value • All figures are estimates based on preliminary numbers from the County (includes the full 1% increased allowed by law) Page 38 581,527408,945154,280 -62.27% Stormwater 3.76% 2,964,6773,007,9103,120,860 Wastewater Water 12.08% 1,717,5411,889,4252,117,734 3.26% Phone 860,916750,500775,000 7.69% 727,765650,000700,000 TV/Cable Utiity Tax Revenue Solid Waste 11.85% 653,451599,000670,000 Gas 13.24% 346,428340,000385,000 9.38% Electric 1,921,4641,920,0002,100,000 0 500,000 3,500,0003,000,0002,500,0002,000,0001,500,0001,000,000 2016 Actual2017 Budget2018 Budget% Change Page 39 $1.889 million - $50k - $293k - million $1.568 million $30k - - $1.694 - General Engineering Risk Management Abatement Police Special Projects $5,501,101 - General Government/Public Safety Cost Allocation ExternalInternal •• Second largest revenue source for the General Fund Page 42 2.80% 42,201,729 36,703,71541,052,196 Total 952,832 20.93% - & 1,480,8831,170,974 Other Transfers 0 115,000187,000 62.61% Capital 00 N/A 127,415 Debt Service & 0.17% 8,735,184 10,064,04310,081,055 Services Supplies 4.66% 26,888,28429,392,27030,762,700 Personnel Year 2016 Actual2017 Budget2018 Budget% Change 4.66% 1,370,430 Total 29,392,27030,762,700 6.94% 296,470 4,270,8304,567,300 Medical 9.47% 335,592 3,544,3083,879,900 Benefits Budget Comparison 21.42% 695,500546,500149,000 - - Pension Side - 170,000421,000251,000 A 147.65% - Labor Set 3.07% General Fund Personnel 636,368 20,711,632 21,348,000 Salaries 2017 Budget2018 BudgetDifference% Change Personnel is 72.9% of General Fund Budget This position is solely dedicated to utility time employee. This is a net zero increase - side personnel costs for pending Wage and - a - Indirect Cost – . The total increase in interfund charges to support these positions are $85,925 st Departmental - Budget includes refurbishment of existing fire and rescue boat, $87,000 Ongoing maintenance, $15,000.Includes the addition of a .50 FTE for a regular partdue to elimination of professional services contract for janitorial services.Includes the addition of a Engineering Technician III. capital projects and is offset by charges for services from the utility funds.The budget includes the addition of a PC Technician and an Associate Developer with a hire date of July 1The budget includes $421,000 in setClassification Study. ••••• Fire DepartmentParks DepartmentEngineeringInformation Technology Non $7,142,504, - $6,108,692 - quo expenditure budget - 2.8% – 14.5% (excluding capital)Minimum target $3,571,252 Exceeds recommended level of 8.5%2018 Ending Fund Balance •• Revenue budget reflects 4.13% increase Essentially a statusService levels maintained with cost increases kept to a minimum Fund balanceBest Practice Recommendation (16.67%) TransportationCDBG Grants • State Capital BudgetState shared revenueFederal economic climateWage and Classification Study going Transportation Benefit District Dollars - Funded with on Dedicated Stormwater Utility TaxDedicated Residential Street Program Continued planned business outreach and development ••• Transportation FundingEconomic Development DeWayne Pitts or and requests for information after this Questions…..Questions workshop should be emailed to Caroline Tompson and copied to City Council. Responses that are emailed in advance of the next meeting will be copied to all. November 6thPublic Works and Utility Funds