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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
GFOA Conference 2017
Monday, May 22, 2017
Conference Session:New Influx of Revenues
Rodney N. MillerAssistant City Manager/CFO
City of Hickory, North Carolina(former Catawba County, NC CFO)
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
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
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
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
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
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
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
Long Term Strategies for Budgeting New MoneyKathleenVonAchen, CFO | Unified Government
of Wyandotte County & KansasCity, KansasAnnual Conference, May 2017
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
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
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
Tourism – NASCAR - Casinos – Soccer - Retail
15
Tax Increment Financing
Tourism Districts (Kansas STAR
Bonds)Planning began in 1998
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
Legends Outlets KansasCity
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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
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
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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
Citizen Engagement Process:Mayor’s Listening Tour▪ Eight neighborhood meetings/events
▪ Exercise: How would you spend $12 million?
▪ Over 700 residents participated
21
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
23
24
25
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
27
28
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
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
31
Long-term StrategiesforBudgeting New Revenue:
Case Study - Kansas City, Kansas
32
Planning For One-Time Revenues
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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
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
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
The Abyss of Nothingness
5/20/2017 37
http://www.cnn.com/2016/04/20/health/trinidad-colorado-small-town-marijuana/index.html
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
Extraction Well Sites
5/20/2017 39
Sex Change Capital of the World
“Taking a trip to Trinidad”w/Dr. Stanley Biber
5/20/2017 40
Sex Change Capital of the World
5/20/2017 41
Dr. Marci Bowers
Marijuana Dispensaries, Trinidad, CO
5/20/2017 42
The Green Mile
5/20/2017 43
5/20/2017 44
Marijuana Reviews, Trinidad, CO
5/20/2017 45
Marijuana Reviews + Maps, Trinidad, CO
5/20/2017 46
Budtender Jobs (420 Careers), Trinidad, CO
5/20/2017 47
420 Recreational Tours, Trinidad, CO
5/20/2017 48
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
Trinidad, CO History
5/20/2017 50
Extraction Well Sites
5/20/2017 51
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
Main Street, Trinidad, CO, Mid-Century
5/20/2017 53
Main Street, Trinidad, CO, Early-Century
5/20/2017 54
Main Street, Trinidad, CO (Rendering)
5/20/2017 55
Main Street, Trinidad, CO, Present Day
5/20/2017 56
Trinidad, CO, 2016
5/20/2017 57
Trinidad, CO, 2015
5/20/2017 58
Trinidad, CO, 2017
What is the gap between how we see ourselves and how others perceive us?
5/20/2017 59
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
Trinidad, CO Budget History (2010-16)
5/20/2017 61
City of Trinidad2016 Proposed Budget
Trinidad will provide the highest quality service at the lowest possible cost
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)
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)
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
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$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
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
5/20/2017 68
Trinidad Balanced Budgets 2011-15
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
Policies to Promote Responsible and Prudent Spending of One-Time or Unstable Revenues
5/20/2017 70
Bureaucratic Rules to the Rescue
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
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
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
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
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
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
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
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)
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
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
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
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
Marijuana Rollout and Regulations
5/20/2017 83
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
Retail Locations
5/20/2017 85
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
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
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
Marijuana Revenues (Cont.)
5/20/2017 89
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
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
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
Sustainable vs. Balanced Budget
5/20/2017 93
Marijuana Revenues (Cont.)
5/20/2017 94
2015 Budget
5/20/2017 95
2016 Budget
5/20/2017 96
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
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
$(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)
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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
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
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
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
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
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
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
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!
ArtSpace
5/20/2017 108
ArtSpace
5/20/2017 109
ArtSpace
5/20/2017 110
Thank you
• Questions or Comments
5/20/2017 111
Questions?