2015-16 Preliminary Budget Follow-up

Council BriefingNovember 3, 2014

1

Goals for Tonight

• Review adjustments made to Preliminary Budget after presentation

o Increased Property Tax estimates to reflect most recent assessed valuation estimate

o Updated benefit rates per Association of Washington Cities adopted rates for 2015

o Add Economic Development supplemental budget as presented on October 20

o Increase funding for Evergreen Poolo Increase funding for implementation of Community Engagement

Plan

2

2015-2016 Budget Process

• Six-year Financial Forecast/Financial Policies/Public Hearing and Preliminary Operating and CIP Budgets/Human Services and Arts and Culture Funding/Budget Supplementary Package – June 23 through October 20

• Budget Follow-up/Financial Policy Discussion/Public Hearing – November 3

• Property Tax Levy/Proposed SWM Rate Ordinances introduced – November 3

• Budget Ordinance introduced – November 17• Property Tax Levy/SWM Rates Adopted – November 17• Budget Ordinance/Financial Policies Adopted – December 1

3

Preliminary Budget Revisions

Increased Property Taxes by $20,000◦Updated Assessed Valuation from King County

Assessor’s Office ◦AV is still preliminary – will be finalized in December or

January◦Increased General Fund revenue by $10,000 each year

Increased B&O Tax Revenue by $860,000 for Economic Development Supplemental Budget package

4

Preliminary Budget Revisions

Updated 2015 medical and dental benefit rates to reflect final rates adopted by carriers (also reduces 2016 estimates)◦Regence = 5% increase (Preliminary Budget = 10%)◦Group Health = 6% increase (Preliminary Budget = 7%)◦Delta Dental = 8% increase (Preliminary Budget = 6%)◦Willamette Dental = 0% increase (Preliminary Budget = 6%)◦Savings for Biennium

General Fund = $44,400 Street Fund = $7,425 Surface Water Management Fund = $9,650 City-wide savings = $61,475

5

Preliminary Budget Revisions

Added Economic Development Supplemental Package – Expenditure Recommendations◦Added Economic Development Specialist position for

$213,610 over biennium◦Added Community-wide Branding effort - $120,000◦Added Downtown Mobility projects - $190,000◦Added Urban Land Institute for 1st Avenue development -

$150,000Added additional funding for Evergreen Pool - $20,000Added $100,000 for implementation of the

Community Engagement Plan6

Preliminary Budget Revisions General Fund

7

  2015 Preliminary

2015 Revisions

2015 Proposed

2016Preliminary

2016Revisions

2016 Proposed

Beginning Fund Balance

$7,858,755 $0 $7,858,755 $7,927,630 ($18,685) 7,908,945

Revenues 22,312,350 440,000 22,752,350 22,684,850 440,000 23,124,850

Transfers In 173,000 0 173,000 173,000 0 173,000

Total All Resources 30,344,105 440,000 30,784,105 30,785,480 421,315 31,206,795

Expenditures 22,206,475 458,685 22,665,160 22,679,285 290,525 22,969,810

Transfers Out 210,000 0 210,000 215,000 0 215,000

Total Exp. And Transfers

22,416,475 458,685 22,875,160 22,894,285 290,525 23,184,810

Ending Fund Balance

7,927,630 (18,685) 7,908,945 7,891,195 130,790 8,021,985

Total All Uses $30,344,105 $440,000 $30,784,105 $30,785,480 $421,315 $31,206,795

Preliminary Budget Revisions Street Fund

8

  2015 Preliminary

2015 Revisions

2015 Proposed

2016Preliminary

2016Revisions

2016 Proposed

Beginning Fund Balance

$981,995 $0 $981,995 $241,760 $3,485 245,245

Revenues 2,451,000 0 2,451,000 2,471,000 0 2,471,000

Transfers In 0 0 0 0 0 0

Total All Resources 3,432,995 0 3,432,995 2,712,760 3,485 2,716,245

Expenditures 1,683,235 (3,485) 1,679,750 1,684,470 (3,940) 1,680,530

Transfers Out 1,508,000 0 1,508,000 858,000 0 858,000

Total Exp. And Transfers

3,191,235 (3,485) 3,187,750 2,542,470 (3,940) 2,538,530

Ending Fund Balance

241,760 3,485 245,245 170,290 7,425 177,715

Total All Uses $3,432,995 $0 $3,432,995 $2,712,760 $3,485 $2,716,245

Preliminary Budget Revisions Surface Water Management Fund

9

  2015 Preliminary

2015 Revisions

2015 Proposed

2016Preliminary

2016Revisions

2016 Proposed

Beginning Fund Balance

$507,210 $0 $507,210 $255,460 $4,520 $259,980

Revenues 3,155,000 0 3,155,000 3,220,000 0 3,220,000

Transfers In 0 0 0 0 0 0

Total All Resources 3,662,210 0 3,662,210 3,475,460 4,520 3,479,980

Expenditures 2,266,750 (4,520) 2,262,230 2,295,695 (5,130) 2,290,565

Transfers Out 1,140,000 0 1,140,000 940,000 0 940,000

Total Exp. And Transfers

3,406,750 (4,520) 3,402,230 3,235,695 (5,130) 3,230,565

Ending Fund Balance

255,460 4,520 259,980 239,765 9,650 249,415

Total All Uses $3,662,210 $0 $3,662,210 $3,475,460 ($610) $3,479,980

Preliminary Budget Revisions Capital Improvement Program

Parks and General Government Fund

Recommend adding one unfunded project for Maintenance Facility/Emergency Operations Center

10

:

Next Steps

11

Action Timeline

Public Hearing on B&O Tax Increase November 17

Property Tax Levy Adopted November 17

SWM Rates Adopted November 17

Budget Ordinance/Financial Policy Discussion November 17

B&O Tax Ordinance Increase Discussion November 17

Budget Ordinance/Financial Policy/B&O Tax Ordinance Adoption December 1

Questions?

12