City of York BudgetFISCAL YEAR 2020-2021

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What is a BudgetA financial plan that communicates

Community and organizational priorities for next 12 months and beyond

Investments in the future

An estimate of the revenue and expenditures needed to accomplish Council goals

A budget must be submitted to Council within 45 days of the beginning of next FY

A balanced budget must be adopted by the start of the fiscal year

Requires two readings and a public hearing prior to adoption

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Council Budget ScheduleIn May, the Budget Schedule was unveiled as follows:

May 18th Council Budget Input Session

July 13th Budget Work Session I – Presentation of 1st Draft and General Fund Discussion

July 20th Budget Work Session II – Discussion of Enterprise Fund and any follow-up regarding GF

August 4th First Reading of Budget Ordinance

August 17th Council Work Session – Budget Work Session III (if necessary)

September 1st Public Hearing & Second Reading of Budget Ordinance

October 1st FY Budget 2021 begins

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Council Priorities

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Budgeting ProcessActivities undertaken by staff during budget preparation

Revenue forecasting – trend lines, growth patterns, economic indicators,

Expenditure evaluation – trend lines, known maintenance & operation expenses, inflation, federal, state, county changes, Capital Investment Program

Finance Director prepares budget prep sheets for Department Heads

Dept. Heads project expenses using similar methods discussed above including capital & personnel needs

Dept. Heads, Finance Director and City Manager meet for 1-on-1 meetings to discuss dept. budget

Final balanced budget is prepared and brought to Council for review, comment, adoption

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Overall ChallengesCovid-19

Increase in Health Insurance Premiums (10% increase planned)

Retirement Contribution

Retirement Payouts & Other Post Employment Benefits

County Fee Increases (Indigent Defense, Land Fill Fees)Rock Hill Water Rate Increase (15%)

FY21* FY22** FY23** FY24**

SCRS 15.56% 16.56% 17.56% 18.56%

PORS 18.24% 19.24% 20.24% 21.24%

*FY21 – 1% Increase delayed**Projected increases based upon previous schedule

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Budget OverviewGoals for the budget were simple – 3 R’s:

Restraint

Recover

Reinvestment

Bare bones, basic budget with limited investment and capital expenditures, but we have options

Minimized reliance on inter-fund transfers

Debt Service is now included in departmental budgets

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Budget OverviewFiscal Year 2021 Budget

Revenues Expenses Short/Over

General Fund $9,018,425 $9,018,425 $ -

Enterprise Fund $5,022,500 $5,022,500 $ -

Tourism Fund $ 566,000 $ 566,000 $ -

$14,606,925 $14,606,925 $ -

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The Good StuffGeneral Fund Enterprise Fund Tourism Fund

Code Enforcement OfficerFaçade Grants Increased OT for PDFacilities/Park StudySidewalk Repair/MaintenanceDedicated Council Training Funds

Emergency Notification SystemReserve for Future ExpansionDedicated Hydrant Repair Fund

City Marketing StrategyBeautification/StreetscapingFacilities/Park StudyWeather Detector (Complex)Historic Tour AppH-Tax Event GrantsA-Tax Event GrantsReserve

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General Fund SummaryComprised of 12 Departments/Budgets

Administration Planning and ZoningCouncil (NEW) Recreation DepartmentMunicipal Court Public WorksPolice Department Public Works CommercialFire Department Public Works RecyclingFire Suppression Non-Departmental

Funded by Taxes, Fees, Fines, Service Contracts, Grants, and Transfers

Provides essential City services and other services defined by Council

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General Fund RevenueHIGHLIGHTS

Covid-19 will limit growth

Revenue is tracked on over 29 line items

Business License reduction likely, but minor

Increase in York Co. Fire Services Contract

Enterprise Fund and H-Tax transfer Limited

Taxes $ 4,210,000 Business License $ 1,521,000 Fines $ 72,000 Fees $ 1,420,500 Intergovernmental $ 532,500 Transfers $ 846,125 Grants $ 201,000 Building Permits $ 95,000 Other $ 112,300

$ 9,018,425

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Tax RevenueCurrent Millage Rate: 124.6

Current Value of Mill: ~$27,000

Projected Revenue: $3,00,000

The City last raised taxes in 2018 from 117.2 mills to 124.6 mills.

FY 2019-2020 Millage Cap: 3.44%FY 2020-2021 Millage Cap: 4.09% Home values + 13.1% in last 12mo. in 29745

Total Possible Increase: 9.55 Mills York, SC home values +3% to 5% annuallyTotal Possible Revenue: $257,850

2017-2018 Actual

2018-2019 Actual

2019-2020 Budget

2020-2021 Projected

Property Taxes $ 2,591,861 $ 3,175,196 $ 2,928,450 $ 3,000,000 Vehicle Taxes $ 274,346 $ 305,510 $ 280,000 $ 290,000 Franchise Fees $ 686,614 $ 691,791 $ 670,000 $ 680,000 Delinquent Taxes $ 128,802 $ 145,736 $ 128,000 $ 160,000 Fees in Lieu of Taxes $ 53,182 $ 71,842 $ 65,000 $ 80,000

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115

117.2

124.6

110

112

114

116

118

120

122

124

126

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Millage Rate History

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Fees RevenueYear-over-year increase expected

Recreation Reg Fees contained both registration fees and County Rec. Supplement

York County Fire Protection Service Contract Fee increased

Garbage Fee revenue is expected to increase because of more accounts

60 new accounts in last 6 months Garbage Fees $ 1,040,000 Recreation Reg Fees $ 50,000 Recycling Fees $ 50,000 Fire Protection Fee $ 104,000 SRO Contract Fee $ 176,500

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Sanitation RevenueProjected Revenue - Residential $620,000- Roll Out: $381,000 - Landfill: $239,000- Commercial: $420,000

Recycling- No COY charge for service- $50k revenue to service Clover

Revenue falls short of Expenses$620,000

$420,000

$50,000

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Residential Commercial Recycling

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General Fund Revenue Transfers InLimited FY 2021 annual transfer of Enterprise Fund & Tourism Fund monies

Included year 2 of 3 of Due-To Due-From of $500kEnterprise Fund

Franchise Fee (5%) $ 251,125 Due-to Due-From $ 500,000

Tourism FundEvents Coordinator $ 70,000 A-Tax $ 25,000

$ 846,125

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Transfers to General Fund

Utility Fund H-Tax H-Tax Debt Payments

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Departmental BudgetEach departmental budget is summarized into three categories for this presentation as follows:

Personnel- Salaries, fringe, retirement, etc.- Insurance

Operations (ongoing expenses)- All expenses needed to accomplish the mission/goals- Supplies, maintenance, service contracts, training- Professional services, membership dues, and more

Capital (typically new purchases or one time expenses)- Machines, equipment, vehicles- Buildings, and infrastructure- Payments on bonds & leases

FY 2020 FY 2021Personnel $ 663,719 $ 516,000 Operations $ 128,940 $ 101,500 Capital $ 10,000 $ -

$ 802,659 $ 617,500

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Administration (4110)HIGHLIGHTS

Moved all Council expenses to separate budget.

Personnel includes: City ManagerFinance DirectorMunicipal ClerkFinancial Clerks (2)Events Coordinator

FY 2020 FY 2021Personnel $ 663,719 $ 516,000 Operations $ 128,940 $ 101,500 Capital $ 10,000 $ -

$ 802,659 $ 617,500 18

Council (4130)HIGHLIGHTS

$2k Training Funds for each Member

$3k Election Expenses for Nov. 2021 Election

FY 2020 FY 2021Compensation $ 113,000 Operations $ 23,000 Capital $ -

$ - $ 136,000

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Court (4150)HIGHLIGHTS

Public Defender Contract increased to $27k

Personnel Includes:Clerk of CourtJudge (2 part-time) FY 2020 FY 2021

Personnel $ 113,220 $ 118,700 Operations $ 33,578 $ 36,200 Capital $ - $ -

$ 146,798 $ 154,900 20

Police (4210)HIGHLIGHTSPersonnel Includes:ChiefAssistant Chief (Cpt.)1st Lieutenant (1)Detectives (3)Narcotic Officers (2)FSU (1)Community Officer (1)Traffic Safety Officer (1)SROs (6)Patrol (18)Dispatchers (5)YPD Admin (1)

FY 2020 FY 2021Personnel $ 2,862,584 $ 2,958,500 Operations $ 401,560 $ 400,500 Capital $ 42,900 $ -Debt Service $ - $ 95,750

$ 3,307,044 $ 3,454,750 21

Police (cont.)3 planned retirements, budgeting to replace 2 slots (drop from 42 to 41 slots)

Increased Overtime from $33k to $43k

Capital Includes:- 2 Vehicles to replace 1 admin, 1 patrol (vehicles out of service will be sold)

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Fire (4220) & Fire County Suppression (4230)HIGHLIGHTS

Personnel Include:ChiefAssistant Chief Fire Fighters (10)Admin (1)

7 Fire Fighters are EMT certified

No significant changes.

4220 FY 2020 FY 2021Personnel $ 977,082 $ 977,000 Operations $ 141,700 $ 154,000 Capital $ -Debt Service $ - $ 148,800

$ 1,118,782 $ 1,279,800

4230 FY 2020 FY 2021Personnel $ - $ -Operations $ 17,900 $ 18,000 Capital $ -

$ 17,900 $ 18,000 23

Planning and Zoning (4230)HIGHLIGHTS

Personnel Include:Planning DirectorBuilding InspectorZoning AdministratorBusiness License ClerkCode Enforcement (NEW FTE)

$20k Included for Façade Grants

1 Vehicle to replace aging fleet

FY 2020 FY 2021Personnel $ 308,067 $ 362,000 Operations $ 69,670 $ 68,000 Capital $ 20,000 $ 3,000 Debt Service $ - $ 7,200

$ 397,737 $ 440,200

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Parks & Recreation (4240)HIGHLIGHTS

Personnel Includes:DirectorBuilding & Grounds SupervisorMaintenancePrograms DirectorPrograms Coordinators (2)Part-time & Seasonal

Outsourcing- landscaping for Parks and Complex- Concession Operations at Complex

Year-Over-Year reduction in budget is due to Personnel Cost savings, eliminating capital expenditures, and more closely aligning resources with needs.

FY 2020 FY 2021Personnel $ 576,895 $ 523,500 Operations $ 310,050 $ 281,000 Capital $ 126,150 $ 15,000 Debt Service $ - $ -

$ 1,013,095 $ 819,500

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Public Works Revenue vs. ExpendituresRoll-Out Fee: $9.69/mo (in-City)Roll-Out Fee: $14.69/mo (out-of-City)Landfill Fee: $6.77/mo

Landfill Fee last updated in 2016.

County increased landfill fees July 1:Municipal Solid Waste - $42/ton to $43/tonConstruction Debris - $34/ton to $38/tonLand Clearing Debris - $32/ton to $34/tonConcrete/Brick Waste - $32/ton to $34/ton

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

FY17 FY18 FY19 FY20 FY21

Revenue Expenditures

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Public Works (4250)HIGHLIGHTS

Personnel Includes: Public Works SupervisorResidential Truck DriverSanitation Crew (4)Public Works Admin

Purchase 300 new rollout carts

$15k for Sidewalk Maintenance

Repair and replace existing Tinks bucket – move repaired to reserve

Landfill Fees Expenses projected: $285kLandfill Revenue projected: $239k

FY 2020 FY 2021Personnel $ 521,861 $ 478,500 Operations $ 432,000 $ 547,000 Capital $ 11,000 $ 15,000 Debt Service $ - $ 113,550

$ 964,861 $ 1,154,050

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Public Works Commercial (4256)HIGHLIGHTS

Personnel Include:Commercial Driver

$20k in dumpster replacement

Commercial Expenses: $257,300Commercial Revenue: $420,000

FY 2020 FY 2021Personnel $ 55,968 $ 54,500 Operations $ 182,850 $ 202,800 Capital $ - $ -Debt Service $ - $ -

$ 238,818 $ 257,300

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Public Works Recycling (4258)HIGHLIGHTS

Personnel Include:Recycling Truck Driver

Purchase 250 Recycling Bins

New recycling truck was put into service inFY 2020.

Cost of recycling truck and program shared by Town of Clover.

Recycling Service Expense: $116,700Recycling Service Revenue: $50,000

FY 2020 FY 2021Personnel $ 54,330 $ 54,500 Operations $ 23,700 $ 29,000 Capital $ - $ -Debt Service $ - $ 33,700

$ 78,030 $ 117,200

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Non-Departmental (4500)HIGHLIGHTS

Christmas Bonus for all FTE - $250 each

Retiree Leave Payout - $177.5k (4 employees)

Retiree Health Insurance - $95k

Street Lighting - $128K

Debt Service for IT Upgrades in FY20 – $31,750

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Enterprise FundCHALLENGES

Covid-19

Rock Hill 15% water rate increase (expected 10%)

Health insurance increase (10%)

Need to save for future expansion

Water/Sewer rates drive EF Revenue

Revenue is distributed into 16 items

Revenues FY 2018 FY 2019 FY 2020 FY 2021Interest $ 5,485 $ 15,260 $ 13,000 $ 5,000 Miscellaneous $ 1,814 $ 3,472 $ 2,500 $ 2,500 Grant Revenue $ 325,387 $ 71,079 $ 2,000 $ 2,000 Water/Sewer Receipts $ 2,084,081 $ 2,237,832 $ 2,700,000 $ 3,200,000 Base Charges $ 1,505,644 $ 1,439,862 $ 1,461,000 $ 1,465,000 DHEC Charges $ 70,191 $ 71,891 $ 74,000 $ 70,000 Penalty $ 96,173 $ 105,545 $ 100,000 $ 100,000 Water/Sewer Taps $ 22,492 $ 19,892 $ 12,000 $ 15,000 Connection Fees $ 29,012 $ 33,600 $ 30,000 $ 30,000 Hydrant Fees $ 11,244 $ 13 $ 1,000 $ 8,000 Meter Reinstallation $ 2,280 $ 1,973 $ 750 $ 1,000 Meter Installation $ 19,119 $ 35,952 $ 20,000 $ 20,000 Administrative Fees $ 55,575 $ 51,357 $ 52,000 $ 46,000 Pretreatment $ 17,416 $ 22,729 $ 14,000 $ 20,000 Hydrant Repair Fee $ - $ - $ - $ 38,000

$ 4,245,914 $ 4,110,454 $ 4,482,250 $ 5,022,500 31

64%

29%

1%3% 3%

Water/Sewer SalesBase ChargesDHECPenalty/Admin FeeOther Fees

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Water Purchase Projections FY2021

40,000 38,000

36,000 36,000 35,000 38,000

40,000 42,000

44,000

50,000

55,000 53,000

-

10,000

20,000

30,000

40,000

50,000

60,000

Oct Nov Dec Jan ‘21 Feb Mar April May June July Aug Sept

COY Projects 507 MM Gallons in FY2021

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2016 Willdan StudyIdentified Combined $6.124 million Capital Improvement Program

Projected Annually: 0.5% Customer Growth 12% Wholesale Rate 4% Labor Costs 3% Inflation

No changes in rates would lead to massive annual losses over next 10 years (pg. 8)

Limit the Funds ability to borrow money in the future

Recommended annual 3% increases to ensure profitability of fund until 2025

City made adjustments

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$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Operating Revenues vs. Expenses

Operating Revenues Operating Expenses

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$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$(500,000)

$(400,000)

$(300,000)

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Operating Income (Loss) vs. Water Rates

Operating Income (Loss) Water Rates Per 1K36

$2.50

$2.80 $3.14

$3.30 $3.47 $3.64

$3.82 $3.94

$4.06 $4.18 $4.60

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Water/Sewer Base & Per 1k

Base Water

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$88.20

$81.42

$54.75

$96.18

$105.05

$92.98

$-

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

York Co City of York Rock Hill Clover Tega Cay Fort Mill

Regional Water/Sewer Rates Per 6k Gallons Mo.

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Enterprise Fund (6000)HIGHLIGHTS

Personnel Includes:Utilities DirectorWWTP SuperintendentWWTP Operators (3)Distribution Crew (4)Meter Readers (2)Billing Clerk

Projected purchase of 507 MM gallons from Rock Hill

$400k Reserve for future expansion

$40k Fire Hydrant Repairs

$4k Emergency Notification System (CodeRED)

5% Franchise Fee to General Fund

FY 2020 FY 2021

Personnel $ 904,751 $ 854,500

Operations $ 2,749,255 $ 2,525,000

Capital $ 144,270 $ 42,265 Debt Service $ - $ 449,610 Reserve $ 53,974 $ 400,000 GF Transfer $ 350,000 $ 251,125

GF Repayment $ 500,000 $ 500,000

$ 4,702,250 $ 5,022,500

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Capacity Fee Fund (250)Assessed by Planning Department for all water/waste water development

Project a slight revenue decline dueto Covid-19

Funds are held in Reserve untilneeded for new development

By law, funds can only be spent on water and waste water system improvements

Revenue FY 2020 FY 2021Capacity Fees $ 154,327 $ 150,000 Interest $ 2,067 $ 1,000

$ 156,394 $ 151,000 Expense

Capacity Fee Reserve $ 156,394 $ 151,000

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Capital Projects Fund (500)Separate fund created in FY2019 to budget and track expenses for capital projects and equipment.

Moved most expenses back into departmental budgets, but will be leaving one lease behind:

FY21 Enterprise (car company) Lease

Revenue: $60,100- General Fund: $54,100- Enterprise Fund: $6,000

Expenses: $60,100

Will be used exclusively in the future for projects

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Debt and LeasesGeneral Fund Debt- No current General Obligation (GO) debt- Statutory Debt Limit: $2,353,000 (8% of total assessed value of taxable property)

Enterprise Fund Debt- 2014 WWTP Expansion Revenue Bond ($1.85 MM remaining)- Only able to borrow what can be repaid based upon revenue

Lease Purchases10 Active Leases (mostly with BB&T)1 Active Lease will roll-off this in FY2021 allowing for an additional revenue neutral lease

FY2021 Lease Purchase- 2 Police vehicles (1 admin; 1 patrol) - Tinks Bucket for Public Works- 1 Planning Dept. vehicle

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Tourism Fund (310)Formerly Hospitality Tax Fund

Focus on attracting tourist

Sought to keep more money in the fund

Revenue Drivers

Hospitality Tax

Accommodations Tax

Projecting 8% decline in revenue overFY 2019, but up year-over-year

*Year to Date

$471,913 $496,961 $545,318

$379,116 $500,000

$77,056 $110,080

$109,783

$66,063

$65,000

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

FY2017 FY2018 FY2019 FY2020* FY2021

H-Tax A-Tax

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Tourism Fund (cont.)FY 2021 Expense Highlights

City EventsSummerfest $35,000July 4th $15,000MLK Breakfast $ 5,000Concert Series $20,000Other $15,000

City Marketing Strategy $20,000

FY 2020 FY 2021Operations $ 15,000 $ 16,000 City Events $ 65,800 $ 90,000 Utilities $ 32,000 $ 60,000 Professional Services $ - $ 35,000 Capital Outlay $ 77,100 $ 170,000

H-Tax Event Grants $ - $ 50,000 A-Tax Grants $ - $ 25,000 Reserve $ - $ 25,000 Transfer to GF $ 305,100 $ 95,000

Transfer to Grants $ 20,000 $ -$ 515,000 $ 566,000

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Tourism Fund (cont.)Capital Outlay

Beautification $100,000Facility Study $15,000Weather Detect $10,000HVAC at Complex $10,000Landscaping Svc $15,000Historic Dist. App $20,000

H-Tax Event Grants $50,000

A-Tax Grants $25,000

Reserve $25,000

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Summerfest 2021 (320)Summerfest will return in 2021

H-Tax supports Summerfest, but goal is to make it self-sufficient

Revenue

Transfer from Htax $35,000.00

Craft Vendor Revenue $8,500.00

Summerfest Sponsor Rev $60,000.00

Food Vendor Revenue $12,000.00

$115,500

Expenses

Supplies $ 5,000.00

Advertising/Marketing $ 50,000.00

Specialized Supplies $ 50,500.00

Professional Services $ 10,000.00

Reserve for future event $ 5,000.00

$115,500

See you August 2021 in Downtown York, SC!!

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Budget OptionsOption A

Balanced BudgetNo Change in Rates

Option BInvestment

4 mills, +$2 Landfill Fee, 3% Water

Option CGoing Bold

6 mills, $2 Landfill Fee, 5% Water

General Fund- Code Enforcement Officer- Façade Grants- Increase OT for PD- Facilities/Park Study- Sidewalk Repairs

General Fund (+$178k)- Fire Fighter/EMT Mon-Fri til 12am- 2% COLA/Merit- PT litter control position

General Fund (+$232k)- FF/EMT- 2% COLA/Merit- PT litter control position- 2 PD Vehicles - PW Vehicle Cameras - PW Safety Lights

Enterprise Fund- Increased Repair & Maintenance- Reserve Fund- Hydrant Repairs

Enterprise Fund (+$70k)- WWTP Repairs

Enterprise Fund (+$116k)- WWTP Repairs- Aging Infrastructure

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