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HomeMy WebLinkAboutAgenda Packet 06/26/2012.U-1-1 GELES W A S H I N G T O N, U. S. A. AGENDA CITY COUNCIL MEETING 321 E. FIFTH STREET June 26, 2012 SPECIAL MEETING 5:00 P.M. NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE MAYOR TO DETERMINE TIME OF BREAK June 26, 2012 Port Angeles City Council Meeting Page - 1 AGENDA A. CALL TO ORDER — SPECIAL MEETING AT 5:00 P.M. B. ROLL CALL PLEDGE OF ALLEGIANCE C. WORK SESSION 1. 2012 Mid -Year Budget Report 2. Port Angeles Fine Arts Center / 2012 Funding Requests 3. 2013 Budget Process & Challenges D. ITEMS PENDING for FUTURE WORKSESSIONS July 24, 2012: Review City Manager Semi -Finalist Applications a. Parking Regulations / Including Recreational Vehicles b. Sign Regulations / Including Sandwich Boards c. Regional Fire Authority Status d. Discuss Other Items for Consideration D. ADJOURNMENT NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE MAYOR TO DETERMINE TIME OF BREAK June 26, 2012 Port Angeles City Council Meeting Page - 1 2012 Mi*'d=Year Report Therese Agesson, $r. IWIN-P OT Agee 1. 2( 2. Q General Fund Summar -Y as ®f May 31St 5/31 Budget % of Potential Year -End Position 2012 2012 Budget \ Revenues 7,299,503 18,299,325 39.9% 17,900,000 t7 � Expenditures 7,673.754 19.500.325 39.4% 19,995.000 Net (374,251) (1,201,000) (2,095,000) Note: $1,201,000 budgeted "shortfall" funded by contribution from 1,201.000 General Fund for various capital projects. Capital funding of $1,201,000 was "carried over" from prior year. (894,000) Concerns: o Revenues not "keeping pace" with expenditures a Sales tax revenue shortfall may worsen a Un -budgeted costs/revenue loss: ✓ Criminal Justice ✓ State Revenue Sharing — liquor tax reduction ✓ Utility Tax — Electric Industrial Transmission ✓ Payout / recruitment costs ✓ Subsidy to REET ✓ Other unanticipated costs 3 General Fund Concerns & Issues © Sales tax collection shortfall of $74,000 as of May 31St — potential year-end shortfall of $176,000 © "Lost" liquor excise tax - $50,000 07/01/12 - 12/31/12 - $50,000 01/01/13 - 06/30/13 © Criminal Justice costs — potential of $200,000 of unbudgeted costs • Industrial Transmission Utility Tax © Potential subsidy to BEET © Potential other service additions and/or deletions that may be required or necessary w General Fund Ending Fund Balance ("Reserves") 5.00% -- -- -- - - - - - - - - -- - 30.00 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Est. 2012 Use of "Reserves": Ending Fund Balance ("Reserves")Targets: •$300,000 — BTOP •$1,950,000 Financial Policy Minimum (10.00%) •$250,000 — Police Remodel •$3,250,000 2 Months Reserve (16.66%) •$500,000 — Waterfront Development •$3,332,000 Beginning Est. 2012 Year-end (17.09%) •$103,000 — Security Cameras (match) •$3,900,000 Recommended Minimum (20.00%) •$ 48,000 —NICE Program ! •$4,873,000 Desired Minimum @ 3 Months (24.99%) 5 ® 2012: — $4,109,716 Budget — $2,218,498 Collected as of June — On -target for full collection by year-end ® Issues: — 1% increase • Not levied in 2010, 2012 • Levied in 2011 — Value of "lost" revenue: 2010 2011 2012 Cumulative Total 2010 tax $30,000 $30,000 $30,000 $ 90,000 2011 tax $0 $0 $0 $0 2012 tax $00 $0 $37,000 $37,000 Total $30,000 $30,000 $67,000 $127,000 3 Sales `fax as ®f May 31 st � rte. $280,000 $260,000 $240,000 $220,000 $200,000 $180,000 $160,000 $140,000 $1209000 o P � — $100,000 JAN FEB 'MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 0 2012 Budget o 2012 Actual Sales Tax Projection: Potential shortfall by year-end --$176,000 County revenue sharing in EUGA — impact of business re -location Economic climate — business openings / closings Utility Tax ]revenue - As ®f May 31 st $400,000 $350,000 $300,000 $250,000 $200,000 $1'50,000 $100,000 $5000 I i — JAN IFEB !MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 0 2012 Budget o 2012 Actual Utility Tax Rates: Electric 6.00% Solid Waste Collection 10.00% Water 10.00% Solid Waste Transfer Station 8.00% Wastewater 10.00% Stormwater 8.00% 8 Real Estate Excise `fax # 1 & #2 As ®f May 31s' REET-1 05/31/12 Actual 2012 Budget Balance Remaining % YTD Revenue 24,180 112,191 88,011 21.55% Expenditures 7,715 185,795 Net 16,465 (73,604) Begin. Fund Bal. 05/31/12 Actual 103,862 Balance Remaining YTD Budgeted Use 24,204 73,604 88,352 21.50% Est. End. Fund. Bal. 0 30,258 • REET-1 — Marine Dr. Reconstruction — 8th St. & Peabody Culvert — Laurel St. Sidewalk — Lauridsen Bridge — TOTAL OBLIGATION • REET-2 — 8th St. Reconstruction — Lauridsen Bridge — TOTAL OBLIGATION REET-2 05/31/12 Actual 2012 Budge Balance Remaining YTD Revenue 24,204 112,556 88,352 21.50% Expenditures 0 212,665 Net 24,204 (100,109) Begin. Fund Bal. 102,468 Budgeted Use 100,109 Est. End. Fund. Bal. 2,359 $ 37,700 2012 final pmt. $ 4,600 2012 final pmt. 18,500 2024 final pmt. $ 60,800 125000 per yr. '12—'14 $185,800 $ 87,700 2020 final pmt. $125,000 per yr. `12 —'14 $212,700 N Utilities Electric Utility: — Current operations on -target for budget — Projects / Issues: • Advanced Metering Infrastructure • Energy Conservation Street Light Replacement • Power Pole Replacement • Staff turn -over rate — Rate Study review — September / October 2012 — October 2013 — potential for BPA rate increase © Water Utility: — Current operations on -target for budget — Projects / Issues: • Concrete Cylinder Pipe Replacement • E -Street Reservoir Re -coating • NPS — CoPA Outstanding Items — Elwha River Restoration — Rate Study review — September / October 2012 10 Utilities, continued ® Wastewater Utility: — Current operations on -target for budget — Projects / Issues: • CSO Phase I — construction • CSO Phase 11— design • Plant Headworks Improvements (regulatory deadline 12/31/12) • Infiltration / in -flow pipe repair — Rate Study Review — September / October 2012 Solid Waste: — Current operations on -target for budget — Projects / Issues: • Bluff stabilization t i? Fi • Post -Closure Maintenance Fund impacts Deficit in recycling program — subsidy from Collections -- —$400,000 — Rate Study Review — September / October 2012 11 Utilities, c®ntinu ® Stormwater: — Current operations on -target for bud — Projects / Issues: a Needs assessment— NPDES Phase 2 • $1 mm grant for 4th Street LID project Fecal coliform study— Peabody Creek — Rate Study Review — September / C Summary • 2012 Budget Status — General Fund Revenue • Concerns regarding Sales Tax revenue • Liquor tax "loss" of $50,000 • Potential Industrial Transmission utility tax loss — General Fund Expenditures • Un -budgeted Costs: — Criminal Justice potentially @ $200,000 — Pay -out & Recruitment Costs — Subsidy to REET 1 & 2 to cover potential revenue shortfall in Real Estate Excise Tax — New / additional funding support for yet -to -be identified and authorized by Council 13 i �. Action Plan ® City Manager to re-evaluate & authorize filling of any General Fund related vacancies • Initiate "belt tightening" strategy to save $$ during remainder of the year — Travel & conferences — General Fund supported capital expense — Program & service reductions — to be identified — Potential for mandatory savings targets • Strategize options related to Criminal Justice costs ® Monthly review of budget status to identify changes in conditions that may warrant further action 14 6/26/2012 OURCERNS a 6SUIES o Can the Fine Arts Center meet its obligation for $115,000 in 2012 for contributions? o Current director's salary ft leave pay -out will consume nearly all budgeted funds for position for all of 2012 o Funding request of $52,000 targeted to pay for new director salary ft benefits for remainder of 2012 o Fine Arts Center Advisory Council seeking full funding for director's position for 2013 ft beyond - approximately $62,000 in additional City support (total support of -$100,000. BUDGET MSTUVI [e, EI, a Of nn ylex 009 Y/ EOY/ IO33 Y/ 301 3/31/.. %Cellene —einl� [gal P—d, VENUE .tryT ntler 1—Oen 1..0 0.)fO y,]30 �3 f\ -,0 ......... Gra nta 6 438 <1• (nMrlbNbnS BDonatlms 733 WelN-0., NMp I6)Wd f ff 711:1 3903 M 1x3913 u9x lleaelD f3 Old 30,66 atal ErteSMlt ores 193,3) 9,39 1]6,33 N13 38 16 ]10,i9 �endlw rex 13)6 30 1)] 33 33 o Three (3) major tasks: a New director selection o Funding plan - short-term and long-term' • Review and revise agreement 4 6/26/2012 2 Vol o Three (3) major tasks: a New director selection o Funding plan - short-term and long-term' • Review and revise agreement 4 6/26/2012 2 F67 EV`MAL OFTW S & WASW Y9 NS o Re-atlocation of currently authorized General Fund Budget = reduction of currently planned Gen. Fund programs 8 services Requires five (5) votes from Council to approve o Lodging Tax support . Requires Lodging Tax Advisory Committee review . Requires four (4) votes from Council o Potential to "contract in" work on art facilities planning for the Promenade project 5 P07 EAAAL✓a UPTiO '' S CONSWERAMNS o Inter -fund Loan . Requires four (4) votes from Council . Could allow new director time to develop new operating 8 funding strategy . May help a transition to the Fiero Marine Life Center model or other model of governance o General Fund reserve/fund balance . Requires 5 votes from Council o Dedication of future tax increase . Potential for utility tax increase . Property tax levy lid lift (voter approval required) . Requires four (4) votes from Council o Other yet -to -be identified options 6/26/2012 3 6/26/2012 0 6/26/2012 2013 Budget Development • General Plan • City Manager will present a balanced, proposed budget for Council review & consideration • Goal for delivery of proposed budget by mid-October for allowing for additional Council review & discussion • Council may revise/modify proposed budget through a consensus adjustment process to make changes desired by Council • Continue advancing "Budgeting by Priorities" in the 2013 Budget 2013 Budget Calendar • Jul. 17 — Public Hearing on 2013 Budget — Citizen Needs & Desires + 2012 Budget Amendment #1 • Aug. 28 — Workshop on 2013 Budget — Issues, Needs & Desires • Sep. 25 — Workshop on 2oi2 Budget Year-end + 2013 Budget • Oct. 23 — 2013 Proposed Budget delivered to Council • Oct. 30 — Workshop on 2013 Proposed Budget + 2012 Budget Status • Nov. G — Public Hearing on Revenue Sources & Property Tax Levy • Nov. 20 — 1't Public Hearing on Budget + 2013 Property Tax LeN3 Adoption • Dec. 4 — 2"d Public Hearing on Budget + Budget Adoption + 2012 Budget Amendment #2 2013 Budget Development, Pt. 1 • Challenges: General Fund • Revenues • Tax -based Revenue • Potential for future changes in State Shared Revenues • Expenditures • Personnel Costs & Benefits • Inflation & cost of materials/supplies • General Fund -supported capital & operating costs • Street Fund • Other Funds 6/26/2012 2 6/26/2012 2013 Budget Development, Pt. 2 • Challenges: Other Funds • Utilities • Rising Cost of Senice • Personnel costs & benefits • Cost of materials & supplies • Infrastructure Repair & Replacement • Costs of Regulations Questions Et Comments