![Page 1: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/1.jpg)
Long-term Strategies for Budgeting New Money
Rodney MillerAssistant City Manager and CFO, City of Hickory, NC
Gabriel EngelandCity Manager, City of Sierra Madre, CAKathleen VonAchenChief Financial Officer, Unified Government of Wyandotte County and Kansas City, KS
MODERATOR/SPEAKER
SPEAKERS
#GFOA2017
Monday ■ MAY 22, 2017 2:40 - 3:55 PM
![Page 2: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/2.jpg)
GFOA Conference 2017
Monday, May 22, 2017
![Page 3: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/3.jpg)
Conference Session:New Influx of Revenues
Rodney N. MillerAssistant City Manager/CFO
City of Hickory, North Carolina(former Catawba County, NC CFO)
![Page 4: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/4.jpg)
Catawba County, NC2016 Demographics
• Population: 156,182• Total 2016 County Property Tax Base:
– $16.1 billion• Apple, Inc. Property Tax Base:
– $1.1 billion (6.62%)• Property Tax Rate = $.575/$100• Unemployment Rate = 5.1%• Workforce = 25% Manufacturing
– Historically furniture & textiles
![Page 5: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/5.jpg)
Apple, Inc.2016 Demographics
• Based in Cupertino, CA• Incorporated in January 1977• $233 Billion in sales• 110,000 Employees• Market worth of approximately $800 Billion • Most profitable company in the world
![Page 6: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/6.jpg)
Apple Inc. Announcements• June 2009
– $1 Billion iData Center (East Coast Operations Center) in Catawba County/Town of Maiden
– 500,000 s.f. building on 183-acre site– Hosts iCloud, iTunes and Siri servers – Largest private investment in North Carolina
history– 150 initial jobs (estimated impact of 3,000 jobs in
region, plus hundreds of construction jobs)– County Unemployment Rate 15.5% in May 2009
![Page 7: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/7.jpg)
Apple Inc. Announcements• February 2012
– $100 Million Solar Farm adjacent to Data Center on 170-acre site
• 20-megawatt renewable energy plant• Nations largest end-user owned solar facility
– 10-Megawatt Fuel Cell• Powered with biogas and provides 40 million kilowatt
hours of electrical power– Future plans (2017)
• Double size and capacity of Data Center ($2 billion)• Adding 5 new solar projects to increase on-site clean
energy to 87-megawatts
![Page 8: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/8.jpg)
Key Management Considerations• Innovate Catawba
– Collaboration between local governments in advance of securing a buyer– Catalyze job growth by building facilities and sites that could be used to
attract new business (utilities, roads, sidewalks, signage)• Multi-jurisdictional partnership
– ncData Campus (MJP) in Conover (utilities, roads, signage)
– Investment = return (%) for county/four municipalities• 2014 NACo case study, Strong Economies, Resilient Counties: The
Role of Counties in Economic Development• Selling Points
– Power (reliable, affordable & sustainable)– Water (City of Hickory – regional provider)– Transportation (road network/Charlotte Douglas International
Airport)– Low Tax Rate
![Page 9: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/9.jpg)
Impact to Catawba County -2016• County Property Tax Revenues
– $86 million• Apple Tax Base/Revenues
– $1.1 billion x .00575 = $6.1 million (7.1%)– Property tax incentives (avg. 75%) based on $ investment/job
matrix– Net property tax revenues of $1.5 million (1.7%)
• Approximately $200 million investment each year • More than 400 jobs currently• National Exposure – Data Center corridor: Google,
Facebook, Walt Disney Co. in surrounding counties
![Page 10: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/10.jpg)
Impact to City of Hickory/Town of Maiden
• City of Hickory: Water Sales– 72 million gallons/year (198,610/day)– $260,000 in revenue/year (Annual revenues of $25
million or 1.0%)
• Town of Maiden– Approximately $1 million in new property tax revenue– New City Hall– New Fire Station
![Page 11: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/11.jpg)
Long Term Strategies for Budgeting New MoneyKathleenVonAchen, CFO | Unified Government
of Wyandotte County & KansasCity, KansasAnnual Conference, May 2017
![Page 12: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/12.jpg)
Case Study:Unified Government of WyandotteCounty and Kansas City, Kansas▪ Economic development / tourism project areas description
▪ How much “New Money”?
▪ Citizen engagement process
▪ Public policy and long term financial strategies
▪ Governing body direction and outcomes
Strategic Direction: Which Road toTake?
12
![Page 13: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/13.jpg)
Northeast Corner of KansasWest of the Kansas and Missouri Rivers Kansas City, Missouri is East of Rivers Wyandotte County Population 163,000Total Annual Budget $345 million
(excludes electric/water utility)Total FTE: 2,200
STAR Bond TIF Districts
13
![Page 14: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/14.jpg)
Wyandotte County, Kansas DemographicsThe Business Case for Economic Development / JobGrowth
▪ Population Declines▪25,000 residents moved out of the County
between 1970 and 1990
▪ Low Resident Income Levels▪ Median household income (2014) - $36,637 p/yr.▪ Living below the poverty line – 16.5% of residents
▪ Low Public Health Ranking▪ County ranks 101 out of 102 Kansas counties▪ Affluent Johnson County (neighbor to the south) ranks
#1 of all Kansas counties
▪ Life Expectancy byWyandotte County Zip Code▪ East side of County – 66 years of age▪ West side of County – 72 years of age
White 43%
Hispanic or Latino 21%
Black or African
American 20%Other Race
11%Twoor More Races 3%
Asian 2%
Race & Ethnicity - Wyandotte County
14
![Page 15: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/15.jpg)
Tourism – NASCAR - Casinos – Soccer - Retail
15
Tax Increment Financing
Tourism Districts (Kansas STAR
Bonds)Planning began in 1998
![Page 16: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/16.jpg)
The Base and the Sales TaxIncrement
Constant
Changes based on new retail
sales above base
sales
Base Sales
State Sales Tax Rate of 6.5% on additional retail
sales
City / County Sales Tax Rateof 2.625% on
additionalretail sales
Base Sales
No New Development
Sales tax revenue collections used to pay debt service on STAR bonds
16
![Page 17: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/17.jpg)
Legends Outlets KansasCity
17
Opened 2006; lifestyle center1.2 million sq. ft. super-regional mall 122 businesses employing 5,700 people 10 million shoppers/visitors annually Shopping Center Cost: $230 million Annual Sales: $730 million
Cabela’sOpened in 2002 195,500 sq. ft. featuring hunting, fishing, and outdoor items
Nebraska Furniture Mart Opened in 20031.1 million sq. ft. of furniture, electronics, appliances, & floor covering retail
![Page 18: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/18.jpg)
Kansas SpeedwayOpened 1999; Seats 82,0001.5 mile race track4 NASCAR major races p/yr & Many other eventsStadium Cost: $280 million
Sporting KC – Children’s Mercy Park Major League Soccer (MLS) Stadium Opened 2010; Seats 25,0001st “European Style” soccer venue in theUSKC team won MLS Cup in 201313 home games p/ yr & eventsStadium cost: $200 million
18
![Page 19: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/19.jpg)
19
![Page 20: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/20.jpg)
How much “New Money”? $17 million annuallyfor the Unified Government
20
▪ Village West STAR tax increment financing▪ STAR bonds paid off December 2016▪ Paid off 5 years early due to strong revenue performance▪ An additional $12.4 million in sales tax revenue to the Unified Government (UG)
▪ 19% increase in total sales tax revenue▪ 4.6% increase in General Fund revenue base
▪ State of Kansas “new money” = $43 million annually
▪ Hollywood Casino Revenue Sharing Per Developer Agreement (began in 2012)▪ 3% of gross casino revenue remitted = $3.3 million annually▪ 1% of gross casino revenue donation = $1.4 million annually
![Page 21: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/21.jpg)
Citizen Engagement Process:Mayor’s Listening Tour▪ Eight neighborhood meetings/events
▪ Exercise: How would you spend $12 million?
▪ Over 700 residents participated
21
![Page 22: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/22.jpg)
Mayor’s Listening Tour – Lots of Ideas
22
Aging Services
Animal Control
Park Improvements
Fire Protection
Curbs, Sidewalks, Street InfrastructureHome Repair & Rehabilitation
Police
New Business Development
Job Training
Land Bank & Vacant LotsAuto Registration
Demolition
Mowing Vacant Lots
Transit, Bus Shelters & Bike & Trail Lanes
Youth & Education
Property Tax Relief Street Resurfacing
UG Employee Salaries
Grocery Store/Food Access Code Enforcement
Fund Balance ReservesSnow Removal
Citizen EngagementRecreational Programs/ Pools
![Page 23: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/23.jpg)
23
![Page 24: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/24.jpg)
24
![Page 25: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/25.jpg)
25
![Page 26: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/26.jpg)
Governing Body Public Policy and Long Term Financial Strategies
▪ Strategic Planning Retreat October 2013 SetGuidelines▪ Reduce property tax rate over time
▪ Repay money previously borrowed from internal service funds
▪ Address long-neglected needs (employee compensation, deferred maintenance)
▪ Pursue capital improvement needs using pay-as-you-go
▪ Pursue initiative to reduce blight and abandoned homes
▪ Strategic Planning Retreat April 2016 Revisited Guidelines▪ Align funding decisions to community survey results
▪ Focus on one-time projects to maximize future funding flexibility
▪ Governing Body small group exercise using MuniCast Interactive Tool to reach consensus on five-year spending plan
▪ Presented a Long Term Financial Forecast April 2017
26
![Page 27: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/27.jpg)
27
![Page 28: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/28.jpg)
28
![Page 29: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/29.jpg)
Governing Body Direction and Outcomes
29
▪ Village West STAR revenue of $12.4 million annually
▪ Allocated based on citizen feedback from listening tours and community survey
▪ Retained some future flexibility▪ About ½ of total allocated for one-time projects▪ Remaining ½ of total funded on-going operational costs
▪ Hollywood Casino shared revenue allocation of $5.7 million
▪ 3% of gross casino revenue ($3.3 million) allocated for financing the “Healthy Campus” (food desert-grocery store/YMCA)
▪ 1% of gross casino revenue donation ($1.4 million) distributed to local non-profits through annual competitive grant applicationprocess
![Page 30: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/30.jpg)
Governing Body Conclusion and QuestionStemming from the Citizen Engagement and LongTerm Financial Planning Process
It became clear that the “new money” can’t support all our community needs!
How can we identify low-priority/ inefficient programs that can be re-allocated to meet higher-priority effective programs that better meet our community needs?
30
![Page 31: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/31.jpg)
31
![Page 32: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/32.jpg)
Long-term StrategiesforBudgeting New Revenue:
Case Study - Kansas City, Kansas
32
![Page 33: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/33.jpg)
Planning For One-Time Revenues
5/20/2017 33
![Page 34: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/34.jpg)
Trinidad, CO: Just the Facts
• Population 8,153 (peak pop. 13,223)• Median Age: 40.8• Median Income: $43,614• Median House Value: $156,331• College Degree or Higher: 16.9%• Unemployment: 6.9%• Job Growth: -1.93%
Trinidad is older, less educated, poorer, with higher unemployment than Colorado average.
5/20/2017 34
![Page 35: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/35.jpg)
Today’s Agenda
1. The Abyss of Nothingness2. Angering Your City Council (Budget Edition)3. Policies to Promote Responsible and Prudent
Spending of One-Time or Unstable Revenues4. Angering Your City Council (Regulatory Edition)5. Marijuana Money6. 2016 City of Trinidad Budget (Sustainable vs.
Balanced Budget)7. Spending
5/20/2017 35
![Page 36: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/36.jpg)
Agenda
1. The Abyss of Nothingness2. Angering Your City Council (Budget Edition)3. Policies to Promote Responsible and Prudent
Spending of One-Time or Unstable Revenues4. Angering Your City Council (Regulatory Edition)5. Marijuana Money6. 2016 City of Trinidad Budget (Sustainable vs.
Balanced Budget)7. Spending
5/20/2017 36
![Page 37: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/37.jpg)
The Abyss of Nothingness
5/20/2017 37
http://www.cnn.com/2016/04/20/health/trinidad-colorado-small-town-marijuana/index.html
![Page 38: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/38.jpg)
Trinidad, CO
• Center of the Santa Fe Trail for the “wild west”• Doc Holliday, DDS• Billy the Kid• Marshall Bat Masterson• Al Capone
• Economy based on “Boom and Bust”• Coal• Gas/Fracking • Sex Changes• Marijuana
5/20/2017 38
![Page 39: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/39.jpg)
Extraction Well Sites
5/20/2017 39
![Page 40: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/40.jpg)
Sex Change Capital of the World
“Taking a trip to Trinidad”w/Dr. Stanley Biber
5/20/2017 40
![Page 41: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/41.jpg)
Sex Change Capital of the World
5/20/2017 41
Dr. Marci Bowers
![Page 42: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/42.jpg)
Marijuana Dispensaries, Trinidad, CO
5/20/2017 42
![Page 43: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/43.jpg)
The Green Mile
5/20/2017 43
![Page 44: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/44.jpg)
5/20/2017 44
![Page 45: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/45.jpg)
Marijuana Reviews, Trinidad, CO
5/20/2017 45
![Page 46: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/46.jpg)
Marijuana Reviews + Maps, Trinidad, CO
5/20/2017 46
![Page 47: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/47.jpg)
Budtender Jobs (420 Careers), Trinidad, CO
5/20/2017 47
![Page 48: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/48.jpg)
420 Recreational Tours, Trinidad, CO
5/20/2017 48
![Page 49: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/49.jpg)
Trinidad, CO History
1973—Trinidad perfected government…
…they wrote the book on it!
• New 40 mile water transmission line
• New fire engine
• Balanced budget w/ surplus
• New sewer pipes
• New-ish water pipes
• Full employment
• Four department stores downtown
• Two car dealerships
• Three drugstores
• Under 10% vacancy
5/20/2017 49
![Page 50: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/50.jpg)
Trinidad, CO History
5/20/2017 50
![Page 51: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/51.jpg)
Extraction Well Sites
5/20/2017 51
![Page 52: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/52.jpg)
Trinidad, CO History
Looking forward from 1973, In the next 45 years:• Each decade will see population loss • Negative job growth & shrinking local economy as
energy economy craters• Downtown vacancy will top 60% • No sewer pipes will be replaced• No upgrades will be made to Power and Light• No water pipes will be replaced (80% of all water pipes
will pass useful life)• Water system will lose 40% of its water annually• The “new” fire engine is still in service in 2015
5/20/2017 52
![Page 53: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/53.jpg)
Main Street, Trinidad, CO, Mid-Century
5/20/2017 53
![Page 54: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/54.jpg)
Main Street, Trinidad, CO, Early-Century
5/20/2017 54
![Page 55: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/55.jpg)
Main Street, Trinidad, CO (Rendering)
5/20/2017 55
![Page 56: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/56.jpg)
Main Street, Trinidad, CO, Present Day
5/20/2017 56
![Page 57: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/57.jpg)
Trinidad, CO, 2016
5/20/2017 57
![Page 58: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/58.jpg)
Trinidad, CO, 2015
5/20/2017 58
![Page 59: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/59.jpg)
Trinidad, CO, 2017
What is the gap between how we see ourselves and how others perceive us?
5/20/2017 59
![Page 60: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/60.jpg)
Agenda
1. The Abyss of Nothingness2. Angering Your City Council (Budget Edition)3. Policies to Promote Responsible and Prudent
Spending of One-Time or Unstable Revenues4. Angering Your City Council (Regulatory Edition)5. Marijuana Money6. 2016 City of Trinidad Budget (Sustainable vs.
Balanced Budget)7. Spending
5/20/2017 60
![Page 61: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/61.jpg)
Trinidad, CO Budget History (2010-16)
5/20/2017 61
![Page 62: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/62.jpg)
City of Trinidad2016 Proposed Budget
Trinidad will provide the highest quality service at the lowest possible cost
![Page 63: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/63.jpg)
5/20/2017 63
$(2,000,000)
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
2010 2011 2012 2013 2014 2015
Trinidad Budget 2010-15
Revenue Expenditures Surplus/Deficit (2010-15)
![Page 64: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/64.jpg)
5/20/2017 64
$58,124
$(92,585)
$(336,461)
$(631,558)
$(802,350)$(928,900)
$(1,000,000)
$(800,000)
$(600,000)
$(400,000)
$(200,000)
$-
$200,000
2010 2011 2012 2013 2014 2015
Surplus/Deficit (2010-15)
![Page 65: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/65.jpg)
6.17%
9.90%
22.75%
14.32%
22.06%
4.24% 4.90%
13.97%
3.46%
9.57%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2011 2012 2013 2014 2015
Revenue vs. Expenditure
Expenditure Increase from 2010 Revenue Increase from 2010
5/20/2017 65
![Page 66: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/66.jpg)
$906,696 $906,696 $958,548
$1,337,880 $1,338,000 $1,294,800
2010 2011 2012 2013 2014 2015
Transfers from Utilities to GF (2010-15)
5/20/2017 66
![Page 67: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/67.jpg)
6%10%
23%
14%
22%
5% 4% 4%-2%
6%
2011 2012 2013 2014 2015
True Revenue vs. Expenditure
Expenditure Increase from 2010Percentage Revenue Growth w/o Utility Transfers
5/20/2017 67
![Page 68: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/68.jpg)
5/20/2017 68
Trinidad Balanced Budgets 2011-15
![Page 69: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/69.jpg)
Agenda
1. The Abyss of Nothingness2. Angering Your City Council (Budget Edition)3. Policies to Promote Responsible and Prudent
Spending of One-Time or Unstable Revenues4. Angering Your City Council (Regulatory Edition)5. Marijuana Money6. 2016 City of Trinidad Budget (Sustainable vs.
Balanced Budget)7. Spending
5/20/2017 69
![Page 70: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/70.jpg)
Policies to Promote Responsible and Prudent Spending of One-Time or Unstable Revenues
5/20/2017 70
Bureaucratic Rules to the Rescue
![Page 71: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/71.jpg)
Bureaucratic Rules to the Rescue
New Policies:• Policy of Responsible Financial
Management• Use of One-Time Revenues • Use of Unpredictable Revenues
• Capital Purchasing Policy • What, When, How Much?
• Long-Range Infrastructure Policy• Infrastructure planning based on age,
condition, maintenance history, depreciation
• Fund Balance Reserve Policy• No less than 25% of GF expenditures
5/20/2017 71
![Page 72: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/72.jpg)
Bureaucratic Rules to the RescueOne-Time Revenues: Any revenue that cannot be relied on in future budget periods.• Fund Balance and/or
Contingency• Grants
• YES, multi-year grants are one-time!
• Land Sale(s) and/or Development
• Revenues which greatly exceed predictions
5/20/2017 72
![Page 73: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/73.jpg)
Bureaucratic Rules to the Rescue
Unpredictable Revenues: Revenues where the level generated or collected is difficult to determine AND can affect operations or financial outlook.• Mineral Production Leases• Interest Incomes • Lottery Revenues• Legal Fee Recovery• Revenues which greatly exceed
predictions
5/20/2017 73
![Page 74: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/74.jpg)
Bureaucratic Rules to the Rescue
One-Time/Unpredictable Revenue: Stabilization (temporary only)Startup CostsEarly Debt RetirementCapital Purchases*
*that do not add to on-going costs AND have an offsetting revenue source
One-Time/Unpredictable Revenue: Balance a FundIn-year modification to on-going costCover ANY on-going or recurring costCapital Purchase that adds to on-going costs without offsetting revenue
5/20/2017 74
![Page 75: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/75.jpg)
Bureaucratic Rules to the RescuePriority Based Budgeting • Revenues:
• One-Time vs. On-Going• Based on a rolling average (25%-25%-50%) of actual
experience, not budget• Revenues that exceed these projections are treated as one-
time• Expenditures
• One Time vs. On-Going• On-going expenditures paid for with on-going funds• Line by Line Review
• “Cost goes where benefit goes” (EX) Sewer Loan Payments Paid by Water ($420,000)
5/20/2017 75
![Page 76: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/76.jpg)
Bureaucratic Rules to the Rescue
This is a process, not an event (Balanced Budget vs. Sustainable Budget)• Have we considered:
• Deferred maintenance on facilities or infrastructure• Previous use of one-time revenues (fund balance)
• Budget is controlled with expenditures, not revenues• Normally occurring revenues must equal normally
occurring expenditures
5/20/2017 76
![Page 77: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/77.jpg)
Policy on Use of One-Time Funds
Policy on Use of One Time Funds:• GF will not be balanced using
reserves• One-time revenues go to one-time
uses • EX) Capital purchases, debt, startup
costs, limited programs• Unpredictable revenues
• Cannot be used for operating expenses• Cannot be used to balance budget• Cannot be used to add long-term costs
5/20/2017 77
![Page 78: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/78.jpg)
Deficit vs. Structural Deficit 2015 GF Budget
89.4%
10.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Deficit
71%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Structural Deficit
5/20/2017 78
Use of Reserves
On-Going Costs paid w/ One-Time Funds
(Reserves, Transfers, One-Time etc)
![Page 79: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/79.jpg)
10%11%8%
0%10%20%30%40%50%60%70%80%90%
100%
Revenue Type by Percentage 2015
Transfer in from UtilitiesUse of Fund BalanceOne Time RevenueOn-Going Revenue
71
5/20/2017 79
![Page 80: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/80.jpg)
Council Policy of Responsible Financial Management
The City’s financial policies establish the framework for overall fiscal planning and management.1. Balanced Budget: Expenditures will not exceed
revenues2. Long Range Planning: Long-term financial implications
of current and proposed budgets will be assessed3. Flexibility: The City will be in a position to respond to
opportunities and challenges4. Transparency and Communication: The City will
communicate financial information transparently and will seek input to facilitate sound decision making
5/20/2017 80
![Page 81: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/81.jpg)
Council Policy of Responsible Financial Management
Long Term
Service Level
Budgetary
Cash
5/20/2017 81
Ability to pay the bills!
Ability to plan for and pay future costs, including
infrastructure
Ability to provide needed and desired services
currently and in the future
Ability to balance the budget w/o one-time or
reserve funds
![Page 82: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/82.jpg)
Agenda
1. The Abyss of Nothingness2. Angering Your City Council (Budget Edition)3. Policies to Promote Responsible and Prudent
Spending of One-Time or Unstable Revenues4. Angering Your City Council (Regulatory Edition)5. Marijuana Money6. 2016 City of Trinidad Budget (Sustainable vs.
Balanced Budget)7. Spending
5/20/2017 82
![Page 83: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/83.jpg)
Marijuana Rollout and Regulations
5/20/2017 83
![Page 84: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/84.jpg)
Marijuana Rollout (AKA Oops)
Recreational Marijuana is Legalized in Trinidad in 2014Trinidad allows……
• Only 5 stores, first come, first serve. It’s the most fair.• Oops, we meant a lottery system, that’s MOST fair (sorry
to the campers)• Oops, please don’t sue. It’s lotto + campers. This is the
absolute MOST fair.• Okay, how about everyone gets a Marijuana Store?
Letting the market decide is the truly, the absolute and MOST fair way to go!
5/20/2017 84
![Page 85: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/85.jpg)
Retail Locations
5/20/2017 85
![Page 86: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/86.jpg)
Marijuana Regulations
• No limits***• No setbacks• No separation • No distance
requirements• Not a lot of sense…..….but a lot of revenue
5/20/2017 86
![Page 87: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/87.jpg)
Agenda
1. The Abyss of Nothingness2. Angering Your City Council (Budget Edition)3. Policies to Promote Responsible and Prudent
Spending of One-Time or Unstable Revenues4. Angering Your City Council (Regulatory Edition)5. Marijuana Money6. 2016 City of Trinidad Budget (Sustainable vs.
Balanced Budget)7. Spending
5/20/2017 87
![Page 88: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/88.jpg)
Let’s Talk About Marijuana Money
How do you convince a council to stick with policies limiting spending, when there is SOOOOO much money?
5/20/2017 88
![Page 89: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/89.jpg)
Marijuana Revenues (Cont.)
5/20/2017 89
![Page 90: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/90.jpg)
Marijuana Revenues (Cont.)
• 27 locations (1:300 Ratio)• 85%-90% of sales from out of state• 10.5% of sales tax goes to Trinidad• $2,000,000 in sales tax annually• More than 20% of GF and growing• In 2016 several months of industry
sales exceeded $1,000,000
5/20/2017 90
![Page 91: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/91.jpg)
Marijuana Revenues (Cont.)
• The Sales and Use Tax projected to increase 20.6% • Revenue projections for permits increase 85.5%• Total revenue for 2017 is $1,496,845 more than
2016 projected
• Council Reactions were, well, mixed…..
5/20/2017 91
![Page 92: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/92.jpg)
Agenda
1. The Abyss of Nothingness2. Angering Your City Council (Budget Edition)3. Policies to Promote Responsible and Prudent
Spending of One-Time or Unstable Revenues4. Angering Your City Council (Regulatory Edition)5. Marijuana Money6. 2016 City of Trinidad Budget (Sustainable vs.
Balanced Budget)7. Spending
5/20/2017 92
![Page 93: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/93.jpg)
Sustainable vs. Balanced Budget
5/20/2017 93
![Page 94: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/94.jpg)
Marijuana Revenues (Cont.)
5/20/2017 94
![Page 95: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/95.jpg)
2015 Budget
5/20/2017 95
![Page 96: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/96.jpg)
2016 Budget
5/20/2017 96
![Page 97: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/97.jpg)
2015 vs. 2016 General Fund Expenditures
• 2015 vs. 2016 Budgeted Expenditures are down 16.2% • The executive team has cut $0.17 from every $1.00 from last
year’s budget
• 2015 Actual Expenditures vs. Budgeted are down $1.3M (savings this year)
• Funds Available for Future Appropriation increase from $21,602 to $372,320
5/20/2017 97
![Page 98: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/98.jpg)
2015 vs. 2016 General Fund Expenditures
New policies called for cuts when revenues were growing:Revenues are flat or down across the board with one exception:
• Sales Tax is up 9.2%, w/o marijuana sales overall Sales Tax increase would be at 5.5%
• The sales tax increase of 5.5% is likely due to activity from MJ• Property Taxes are down approximately 10% (account for 12% of budget)• Severance Tax and Mineral Leases are down and will continue to decrease• Utility transfers to GF are reduced by nearly 50% ($1.3M to $700k)• Decline in property and severance taxes are greater than increase in sales tax
5/20/2017 98
![Page 99: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/99.jpg)
$(1,000,000) $(800,000) $(600,000) $(400,000) $(200,000) $- $200,000 $400,000
2010
2011
2012
2013
2014
2015
2016
Surplus/Deficit (2010-16)
5/20/2017 99
![Page 100: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/100.jpg)
Budgeted Expenditures 2014-2016
6.77%
-16.23%-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
2014 2015 2016
5/20/2017 100
![Page 101: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/101.jpg)
Decrease in 2015 Expenditures
EXPENDITURES:General Government 2,661,300 2,263,881 2,941,014 Public Safety 4,037,100 3,581,677 3,208,320 Public Works 2,260,600 2,261,967 1,465,204 Parks & Recreation 492,200 459,382 331,383 Carnegie Public Library 244,100 237,735 175,824 GF In-Kind Expense to CIP - (400,000) -
Total Expenditures 9,695,300 8,404,641 8,121,745
5/20/2017 101
GENERAL FUNDSTATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE
2015 2015 2016BUDGET PROJECTED BUDGET
![Page 102: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/102.jpg)
Decrease in Total Revenues
2015 2015 2016BUDGET PROJECTED BUDGET
REVENUES:Taxes $ 5,580,500 $ 5,833,590 $ 5,826,301 Licenses & Permits 172,300 296,783 96,325 Intergovernmental Revenues 765,100 640,305 646,624 Charges for Services 686,400 591,135 850,764 Fines & Forfeitures 51,600 21,274 50,284 Miscellaneous Revenues 194,700 135,075 135,528 Other Revenues - Library 21,000 10,402 15,680 Transfers-in from Other Funds 1,294,800 1,294,800 689,600
Total Revenues 8,766,400 8,823,363 8,311,106
5/20/2017 102
![Page 103: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/103.jpg)
2010 vs. 2016 General Fund Budgets
Adopted Budget Revenue Utility Transfers % Change Utility Transfers2010 $8,001,008 $ 906,696 2016 $8,317,454 $ 689,600 -23.94%
5/20/2017 103
![Page 104: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/104.jpg)
Deficit vs. Structural Deficit 2015 GF Budget
89.4%
10.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Deficit
71%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Structural Deficit
5/20/2017 104
![Page 105: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/105.jpg)
Balanced vs. Sustainable Budget
97.54% 96.26%
3.76% 3.74%
ON-GOING REVENUES
ON-GOING EXPENDITURES
ONE-TIME REVENUES
ONE-TIME EXPENDITURES
5/20/2017 105
![Page 106: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/106.jpg)
Agenda
1. The Abyss of Nothingness2. Angering Your City Council (Budget Edition)3. Policies to Promote Responsible and Prudent
Spending of One-Time or Unstable Revenues4. Angering Your City Council (Regulatory Edition)5. Marijuana Money6. 2016 City of Trinidad Budget (Sustainable vs.
Balanced Budget)7. Spending
5/20/2017 106
![Page 107: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/107.jpg)
What did we spend the Marijuana Money on?• $3M water/sewer project
• Payments are sustainable w/o MJ money
• Economic Development programs • Downtown vacancy reduced to 20%
• Fire Engine
• Slip-lining water transmission line (planned)
• ArtSpace
5/20/2017 107
1973!
![Page 108: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/108.jpg)
ArtSpace
5/20/2017 108
![Page 109: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/109.jpg)
ArtSpace
5/20/2017 109
![Page 110: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/110.jpg)
ArtSpace
5/20/2017 110
![Page 111: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/111.jpg)
Thank you
• Questions or Comments
5/20/2017 111
![Page 112: Long-term Strategies for Budgeting New Money · Long-term Strategies for Budgeting New Money. Rodney Miller. Assistant City Manager and CFO, City of Hickory, NC. Gabriel Engeland](https://reader030.vdocument.in/reader030/viewer/2022041202/5d4d7e2e88c9938c058b89b1/html5/thumbnails/112.jpg)
Questions?