city of meridian fy2012 budget hearing mayor – tammy de weerd council president – david zaremba...
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CITY OF MERIDIAN FY2012 BUDGET HEARING
Mayor – Tammy de Weerd
Council President – David Zaremba
Council Vice President – Brad Hoaglun
Councilman – Keith Bird
Councilman – Charlie Rountree
FY2012 Budget Recap• This budget is not just an “income statement” budget but also a “balance
sheet” budget. It is not prepared looking at one year in isolation but looking out at least five years forward and evaluating revenue streams and fund balances.
• First year we incorporated our five year capital improvement plan.
• We are not taking any of the allowed statutory increase for property tax.
• Significant changes in the General Fund include increasing the number of command personnel in the Fire Department and three Parks capital projects from the CIP plan.
• The Enterprise Fund is not adding any personnel and is concentrating on core functions, the treatment plant, wells, and line repair and expansion with the exception of some reclaimed water projects.
FY2012 Revenue Forecast• FY2012 Development Services revenue (building permit revenue) is
budgeted 12% below the FY2011 budget. This is due to the a year over year decline in FY2011 residential building permits. FY2011 revenue will in fact slightly exceed the budget due to an increase in commercial building permits. Commercial and even residential building permit sales projections have a high possibility of error so budgeted amounts remain conservative.
• Interest rate revenue will be insignificant.
• State Revenue Sharing (sales tax) will remain at about $3 million as no surge in consumer spending is expected. Revenue sharing is budgeted at $2.75 million to provide a safety cushion.
• The Enterprise Fund revenue budget is 3% below the FY2011 revenue budget. This is a protection against the variability in water sales. Sewer sales are lowered just slightly. The budget does not include a fee increase or a significant increase in the number of accounts.
• Assessment revenue from new buildings connecting to the utility system will remain relatively low consistent with the last two years.
• The City is not taking the 3% allowable property tax budget increase. Property tax increases by 2% due to new construction.
• Overall the General Fund revenue is budgeted at almost exactly the same number that it was in FY2011.
Accounting Details• We now show transfers as a separate line below personnel, operating
expense, and capital outlay so true cost of the department before transfer will be reflected.
• 50% of Finance, IT, HR, Construction Manager, and Legal Department to Enterprise Fund
• 15% of Mayor’s Office personnel (except Mayor) to Enterprise Fund• City Hall cost split with all departments in building according to square
footage
• The Enterprise Fund added a new department headed by the Environmental Program Manager. This department is funded with monies taken from other departments within the fund.
• Definition of “total” budget can vary depending on inclusion of carry forward. This presentation often excludes carry forward in order to represent the “new” budget.
• Inclusion of “Use of fund balance” balances the total budget. It is generally not used in the revenue graphs to highlight the new sources of revenue. Use of fund balance offsets carry forward or is for one-time capital projects selected to be spent from amounts saved in the fund balance. Used for Enterprise Fund depreciation (non-cash).
Total City of Meridian FY2012 Budget $67,136,453
New Capital14%
Carry Forward15%
Wages/Operations71%
Projected FY2012 Total City of Meridian Revenue$53 Million
Development Services
Utility Sales
Other Utility Revenue
Property Tax
Intergovernmental
Utility Connections
General Fund Impact Fees
Misc General Fund
Franchise Fees
Total City of Meridian FY2012 New Budget by Class - $56,763,709 (w/o CF)
Capital16%
Operating31%
Personnel52%
City of Meridian Total FY2012 City Budget by Department/Division - $56.8 Million (w/o CF)
Public Safety37%
Develop Services
3%
PW/Utility Billing7%
Water14%
WWTP24%
Support Services
6%
Parks/Rec9%
• For the last three years about 80% of each year’s new budget has been for on-going costs, personnel and operating. This includes one-time operating items which are generally immaterial for General Fund but can be substantial for the Enterprise Fund.
Total City of Meridian Budget History
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
FY2012 FY2011 FY2010 FY2009 FY2008
Personnel & Operating
Carry Forward
New Capital
Projected FY2012 City of Meridian General Fund Revenue $30.3 Million
Property Tax65%
Development Service Fees
6%
Other Govern Revenue Sharing
17%
Impact Fees3%
Franchise Fees4%
General Fees/Misc
5%
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
General Fund Revenue DistributionGrant Revenue
Impact Fees
Discretionary Revenue
Base Budget
• This Graph illustrates only Funds 01 through 20• 70% of the FY2012 Base Budget is Public Safety
-$2,000,000
-$1,000,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
City of Meridian Development Services Fund Discretionary Revenue Discretionary Revenue
Base Budget
Property Tax - FY2012
• Not taking the allowable 3% increase in budget authority means foregoing $568,435.
• Total taxable value of all Meridian property dropped just under 4% percent (compared to 10.5% last year). Total residential property values dropped 7.5% while total commercial property values dropped 1.28%.
• Property tax revenue increased $385,000 due to new construction. ($433,157 from new construction last year)
Change in Property Tax Revenue Year Over Year Increases
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Change in Property TaxRevenue
Change in Taxable Value to Change in Levy Rate
$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
$7,000,000,000
FY2003FY2004
FY2005FY2006
FY2007FY2008
FY2009FY2010
FY2011FY2012
0.000000000
0.000500000
0.001000000
0.001500000
0.002000000
0.002500000
0.003000000
0.003500000
0.004000000
0.004500000
0.005000000
City Taxable Value
Levy Rate
`
Impact of Levy and Market Value Change Average Residential Property
City of Meridian Change in Levy Rate
2011 2010Assessed Value $147,725 $155,500
Home Owners Exemption $73,863 $77,500Taxable Value $73,862 $78,000Levy Rate 0.004331 0.004090Tax $319.90 $319.02
Estimated City of Meridian Resident 2011 Property Tax
24%
1%
9%
20%5%
0%
1%
City of Meridian 33%
3%
4%
Ada County
Emergency Medical
Ada CountyHighwaySchool District #2
Meridian Library
Meridian City
Meridian Cemetary
Mosquito Abatement
Western AdaRecreationCollege of WesternIdaho
Total General Fund(funds 01 thru 55)
FY2012 New Budget Request - $30.85 Million
(excluding Carry Forward)CIP Fund Carry Forward - $1.7 million
City of Meridian FY2012 General Fund Budget by Program $30.85 million
Police37%
Fire28%
Building3%
Planning3%
Parks & Rec17%
Econ Develop
1%
Admin11%
City of Meridian FY2012 General Fund Budget by Object
New Capital9%
Operating21%
Personnel70%
• FY2012 Total Enhancements, Replacements, and Wage Adjustments - $2,972,788
– Personnel - $502,826 : $165,260 transfer to Enterprise Fund Total personnel cost increased 3% between FY2011 and FY2012. Between FY2008 and FY2012 total personnel cost increased 18%.
– Operating - $223,204– Capital - $2,415,670 ($2,385,500 from Capital Improvement Plan)
City of Meridian General Fund Annual Budget Comparisons(Funds 01 thru 55)
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
FY2012 FY2011 FY2010 FY2009 FY2008
Capital
Operating
Personnel
General Fund – Police Department FY2012 Budget Request
• Small grants and small equipment upgrades - $181,921
• Moved the Police Pay Step Plan 3%
• Vehicle Replacement $285,500
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Personnel Operating Capital
FY2012 Police Budget Request
FY2012
FY2011
General Fund Fire Department FY2012 Budget Request
• 3 Division Chiefs- $405,803
• Bush Chassis - $49,500
• Capital Replacements - $113,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Personnel Operating Capital
FY2012 Fire Budget Request
FY2012
FY2011
General Fund – Parks and Recreation FY2012 Budget Request
• Capital Improvement Plan projects– Field House - $500,000– Pathway Connections -
$100,600– Maintenance Facility -
$1,547,895
• Franklin Road - $66,333
• Increase Recreation Employee to 2/3rd Time - $22,824
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Personnel Operating Capital
FY2012 Parks and Recreation Budget Request
FY2012
FY2011
General Fund Administration FY2012 Budget Request
• City Hall Building Maintenance Worker - $43,058
• 1.5 Additional GIS staff - $118,824
• Various Wage Adjustments - $45,742
• Street Lights $51,000
• IT Software and Hardware Replacements - $148,245
City Administration FY2012 Budget Request $5.2 Million Before Transfers
7%
11%
2%
15%
10%20%
8%
10%
10%
7%City Clerk
City Hall
Council
Finance
Human Resources
InformationTechnologyLegal
Mayor's Office
Other Government
Street Lighting
Development Services FY2012 Budget Request
• Planning South Meridian Public Outreach - $40,000
• Wage Adjustment - $4,926
Development Services FY2012 Budget Request $2.1 Million
Planning42%
Building50%
Economic Development
8%
FY2012 Enterprise Fund Budgeted Revenue - $22,690,000
Misc/Int5%
Water Connection
Fees5%
Sewer Usage Sales52%
Water Usage Sales30%
Sewer Connection
Fees8%
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
BudgetFY2012
BudgetFY2011
BudgetFY2010
BudgetFY2009
BudgetFY2008
BudgetFY2007
Budget FY2006
BudgetFY2005
Enterprise Fund Revenue Distribution Cash Basis
Discretionary Revenue
Base Budget
• Connection and utility sales revenue are mixed in this graph. Connection revenue has largely paid for infrastructure expansion and sales revenue for day to day operations costs but they are mixed in the fund balance.
• Historically we include depreciation but remove it for consideration of “balancing” the budget since it is a financial accounting number.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
BudgetFY2012
BudgetFY2011
BudgetFY2010
BudgetFY2009
BudgetFY2008
BudgetFY2007
Budget FY2006
BudgetFY2005
Enterprise Fund Revenue Distribution Cash Basis
Discretionary Revenue
Base Budget
-$5,000,000
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
BudgetFY2012
BudgetFY2011
BudgetFY2010
BudgetFY2009
BudgetFY2008
BudgetFY2007
Budget FY2006
BudgetFY2005
Enterprise Fund Revenue Distribution Financial Basis (including depreciation)
Discretionary Revenue
Depreciation
Base Budget
City of Meridian FY2012 Enterprise Fund Budget Request PC/OE/New Capital - $25.9 Million New Enhancements - $7.73 Million
City of Meridian Total Enterprise Fund FY2012 Budget - $25,916,501 (w/o CF)
Water32%
Utility Billing3%
Public Works13%
WWTP52% City of Meridian Enterprise Fund Total FY2012
Budget Request by Object (no C/F)
Personnel30%
Operating44%
Capital26%
Enterprise Fund FY2012 Enhancement Requests
• Water –Well Development and Rehabilitation - $763,413
• Water – Water Mains and Water Lines - $905,000
• Water – Pressure Equalization - $331,500
• Water – Machinery and Equipment - $268,000
• Water – Backflow Rebates - $203,000
• Public Works – Source Water Master Planning - $240,000
City of Meridian Enterprise Fund FY2012 Operating Enhancement Requests - $1,069,068
Water54%
WWTP23%
PW23%
City of Meridian Enterprise Fund - FY2012 New Capital Budget Request - $6.7 million
Carry Forward $5.9 million
Water, $1,925,000
WWTP, $4,738,500
Carry Forward,
$5,918,375
Enterprise Fund FY2012 Enhancement Requests
• Wastewater – Treatment Plant Improvements - $2,748,413
• Wastewater - Sewer Lines - $1,670,000
• Wastewater - Machinery and Equipment - $218,500
• Wastewater - Reclaimed Lines - $350,000
City of Meridian Enterprise Fund FY2012 Operating Enhancement Requests - $1,069,068
Water54%
WWTP23%
PW23%
City of Meridian Enterprise Fund - FY2012 New Capital Budget Request - $6.7 million
Carry Forward $5.9 million
Water, $1,925,000
WWTP, $4,738,500
Carry Forward,
$5,918,375
City of Meridian FY2011 Budget Amendment
August 23, 2011
City of Meridian FY2011 Budget Amendment
City of Meridian FY2011 Budget Amendment
City of Meridian FY2011 Budget Amendment
City of Meridian FY2011 Budget Amendment
City of Meridian FY2011 Budget Amendment
• Summary of major FY2011 Amendments• General Fund
– Parks Land Acquisition - $540,000– Contracted Legal Expenses - $1,500,000– Settlement Expenses - $2,300,000– City Hall Repairs - $1,883,700
• Enterprise Fund– Carryforward Adjustment to Actual - ($3,457,180)– Land Acquisition - $21,000
City of Meridian FY2011 Budget Amendment
City of Meridian FY2011 Budget Amendment
City of Meridian FY2011 Budget Amendment
• Any Questions
Fund Balance Policy
Why? To comply with GASB 54
When? Must approve a policy by year end
What the policy defines? Only applies to Governmental funds
Defines the 5 designations allowed to categorize fund balances
Delegates authority to assign funds (to Stacy)
Provides spending priority (restricted first)
Clarifies minimum fund balance reserve (4months)
Policy Defines Fund Balance1. Nonspendable – non cash funds such as inventory, long term notes,
property held for sale, prepayments or endowment funds– Fire Prevention & Burnout Trust Funds (only $4,000)– Prepayments for flex plan, postage, software maintenance plans, insurance
2. Restricted – external parties constraints, State Legislation, Federal or Court
– Impact Fund– Debt Service Fund– Grant Fund
3. Committed – internal constraints or self imposed restrictions, formally made by Council prior to year end for a specific use
– Budget of fund balance4. Assigned – internal self imposed restrictions but Council can grant
the authority to an appointee– Carryforward, commitments or encumbrances– Capital Projects Fund– Public Safety Fund
5. Unassigned – available fund balance– Minimum fund balance reserve
Action needed by Council
Adopt Fund Balance Policy by 9/30/2011
Questions ???New Designations Govermental
NonspendableFire Trust Fund 4,078 Prepaid items 206,455
RestrictedImpact Fund 1,964,241 Police Debt Service -
Committed -
AssignedCommitments (contracts) 216,799 Fund Balance Budget for Carryforward 3,009,195 Capital Projfects Fund 2,519,705 Public Safety Fund 2,070,983
UnassignedGeneral Fund 16,208,507
TOTALS 26,199,963
Prepared by the City of Meridian Department of Financial Management and Planning
For More Information call City Hall
at 888 – 4433, email us at [email protected] or check out our City of Meridian website at www.meridiancity.org – Finance Department