HomeMy WebLinkAboutAgenda Packet 08/28/2012AGENDA
A. CALL TO ORDER SPECIAL MEETING AT 5:00 P.M.
B. ROLL CALL
PLEDGE OF ALLEGIANCE
C. WORK SESSION
L 2012 Budget Status 2013 Budget Process
2. City Council Code of Ethics:
a. Discuss Draft Policy
b. Continue Consideration of Issues Regarding Councilmember Mania Action may follow
D. CONFIRM SCHEDULE
2012 2013 Criminal Justice Budget Issues (September 25)
Low- Impact Development Policy (October 23)
E. PENDING for FUTURE WORK SESSIONS
Parking Regulations Including Recreational Vehicles
Sign Regulations Including Sandwich Boards
Regional Fire Authority Status
Discuss Other Items for Consideration
D. ADJOURNMENT
August 28, 2012
PORTANGELES
W A S H I N G T O N U. S. A
AGENDA
CITY COUNCIL MEETING
321 E. FIFTH STREET
August 28, 2012
SPECIAL MEETING 5:00 P.M.
NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE
MAYOR TO DETERMINE TIME OF BREAK
Port Angeles City Council Meeting
Page 1
2012 Budget
Status Report
August 28, 2012
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Agenda
2012 Budget Status Review
Budget Gap
General Fund
REET-1 REET-2 Funds
Utilities
2. Action Plan
1
J
2012 General Fund
Reduced Revenues sales tax, building permits
Expenditures increased spending in non
discretionary areas (criminal justice /jail costs)
Real Estate Excise Tax (REET) Funds #1 #2
Significantly reduced revenue lack of sales
Expenditures long -term commitments to debt
service
Examples of Budget Adjustments
Revenue:
Reduction in Sales Tax ($120,000)
Reduction in Budding Permits
($105,000)
Utility Tax accounting change
($170,000)
Telephone Tax Lawsuit Settlement
($55,000)
Liquor Control Board Sale of Stores
($36,000)
Investment Interest ($35,000)
Areas of Concern
Expenditures:
Additional Criminal Justice /Jail Costs
$197,000
Professional Services
Contract/Finance $46,000
Buy -back of cemetery lots $29,000
Police full -time staffing savings
($66,000)
Public Works employee salary
benefit savings ($77,000)
Additional Adjustments/Options'
Staffing reductions due to vacant/unfilled positrons Sr Accountant, Fire Marshal, Rec
Supervisor, Seasonal Labor in Parks Recreation
Delete Gen Fund contribution for utility base charge (Nippon) utilities will see reduced costs as
a result of no charges (allocation) for Sr Accountant position not filled
Delete Gen. Fund contribution to Waterfront Develop. due to reduction of building permits back
filled from Econ. Development Fund
2
BEGINNING BUDGET Revenue
513,299,325
1 ITotal Revenue Adjustments (61 Items)
(237,391)
REVISED BUDGET Revenue for Budget Amendment e1
518,061,934
BEGINNING BUDGET Expenditures
519 500 325
1 ITotal Expenditure Adjustments (259 Items)
149,976
REVISED BUDGET Expenditures for Budget Amendment 01
$19,650,301
REVISED REVENUES LESS REVISED EXPENDITURES
(51,583,367)
1 I
FUND ING "CARRY-FORWARD far CAPITAL PROJECTS (from Fund Balance /Reserves)
51,201,000
FROM
I I
NET SHORTFALL OUT- of•BALANCE
(5387,367)
1 1
ADDITIONAL REDUCTIONS
UNFILLED POSITIONS INCLUDED IN AMENDED BUDGET
5124,301
5300 000
OPTIONS TO BALANCE THE BUDGET
I
CURRENT BUDGET GAP AFTER AMENDMENT e1
1
(5163,066)
I I
RESERVES UNASSIGNED (Ending- adjusted from original budget to 2011 Actual)
I
53,470,099
I I
REVISED RESERVES UNASSIGNED (Ending) (If no further savings or revenues identified)
53,307,033
1 1Reserves Unassigned as %of General Fund Expenditures
16 83%
1
Revised General Fund Summary
Cs
;A ug. 84
Arnopn
Total
REET -1 2
Long -term Commitments:
Marine Drive Reconstruction
($37,686/yr last pmt 2012)
8ch Street Peabody Culvert
Reconstruction ($4,593, last pmt.
2012)
8th Street Reconstruction ($87,665,
last pmt 2020)
Laurel Street Sidewalk ($18,316/yr,
last pmt 2024)
Laundsen Bridge
Comments Concerns.
Funding debt payments for 2011
2012 are OK
Funding for 2013 "may be" OK
except for Lauridsen Bridge project
but will require use of all REET
reserves
Lauridsen Bridge funding will
require additional GeneraTFund
support in late 2013 early 2014
depending on construction
schedule, approximately $250,000
unfunded as of now
Future funding of existing debt
service will need to come from
yearly REET current revenues or
General Fund subsidy
3
Utility Funds
Savings will accrue to utility funds from
reductions in personnel savings
No allocation of un- filled Sr. Accountant position to
utilities $60,000
Utilities are operating within normal seasonal
variance
Action Plan
Budget Amendment to Council in September
06/26/12 Shortfall estimate' $894,000
07/31/12 Actions reduced shortfall to: $260,675
08/28/12 Further actions reduced shortfall to: $163,066
12/31/12 Final goal for shortfall $0
Continue to re- evaluate vacancies before authorizing filling
Review capital budget for potential adjustment savings
Option of last resort use Reserves Un- assigned Fund
Balance
4
2013 Budget Development
City of Port Angeles
August 28, 2012
Agenda
Focus Area Reviw
Anybody Got a Rabbit?
2013 General Fund Projection Starting
"Profit Loss"
Revenues
Expenditures
Other Considerations
Street Fund
Laundsen Bridge Grant Match
Potential Revenue Enhancements
Expenditure Challenges Options
Summary
Workplan
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1
2013 Focus Areas 1
Preserving Protecting Our Assets
Physical Infrastructure
Road, street facility systems capable of meeting current and future needs
Financial Infrastructure
Adequate financial reserves
Employee Infrastructure
Training Development support to allow employees to be successful
Strengthening Community Safety Welfare
Public Safety Emergency Services
Community receives rapid, appropnate response
Environmental Quality of Life
Ensure that the City is a good steward of the environment
Criminal Justice
Assist cnme victims, provide advocacy and referrals for crime victim assistance
2013 Focus Areas 11
Planning Building for the Future
Economic Development
Strengthen opportunities for existing business to thrive
Partnerships
Develop partnerships with other agencies to share resources responsibilities
Sustainability
New assets need to factor in sustainable funding PRIOR to acquisition or development
2
Fresh Out of Rabbits
A Sampling of Prior Rabbit Uses
$372,000 from REET for capital
projects 2010 2012 (avg. $124k /yr.)
.$1,2oo,000 savings conversion to
metropolitan pool district in 2009
2012 (avg. $3ook /yr.)
$646,000 COPS grants for Police 2009
2012 (avg. $162k /yr.)
-'$1,143,000 Stormwater transfer to
Streets 2010 2012 (avg. $381k /yr.)
3
General Fund "Profit Et Loss"
Variance
2013 Initial vs.
2012Be inning
GENERAL FUND 2010 2011 2012 2012 2013
Actual Actual Begmnmg Amended Initial
Amount Percent
Revenue 18,790,027 18,972,124 18,781,624 18,544,233 18,268,000 (513,624) -2 73%
Expenditures 17,504,943 18,852,700 19,982,624 19,908,299 18,654,954 (1,327,670) -6 64%
Net (Revenue less Expenditures) 1,285,084 119,424 (1,201,000) (1,364,066) (386,954) 814,046 67.78%
"Carry Forward" for Capital 0 0 1,201,000 1,201,000 0 (1,201,000) 100 00%
Adjusted Net (Revenue less Expend 1,285,084 119,424 0 (163,066) (386,954) (386,954)
Reserves Unassigned (Ending) 4,242,794 4,421,099 3,332,189 3,169,123 2,782,169
Percent of G F. Expenditures 24.24% 13.45% 16 68% 15.92% 14.91%
Expenses NOT INCLUDED in 2013 Initial Expenditures:
(550,020) 16.51%
off -set from
10 o% to 12.5%
COLA $96,000 (for each 1 o% increase)
Health Ins. Premium Increase 170,000 (potential partial cost
enhanced employee contributions if employee contribution increases from
cost increase is reduced $66,000; `net" cost of $1o4,000)
Additional Criminal Justice Funding 50,000
Funding for Street Repairs 300,000
Fresh Out of Rabbits
A Sampling of Prior Rabbit Uses
$372,000 from REET for capital
projects 2010 2012 (avg. $124k /yr.)
.$1,2oo,000 savings conversion to
metropolitan pool district in 2009
2012 (avg. $3ook /yr.)
$646,000 COPS grants for Police 2009
2012 (avg. $162k /yr.)
-'$1,143,000 Stormwater transfer to
Streets 2010 2012 (avg. $381k /yr.)
3
Notable Considerations in 2013
General Fund Revenue
Taxes: (from 2012 Budget)
1.o% Property Tax increase
included
+8482,00o from Street Fund
Property Tax
$120,000 Saks Tax
projection (-2012 actual)
$35,000 Criminal Justice
Sales Tax (-2012 actual)
Intergovernmental:
$26,000 Liquor
Profits /Liquor Excise Tax
o $278,000 "sunset" of earlier
grants; primarily COPS
Licenses Permits:
o $94,000 from Building
Permits
Charges for Services:
$5,600 from Recreation fees
o $7,000 from Planning
Building service fees
Other Revenue:
o $29,000 from reduced
parking fines municipal
court fines
2013 Revenues General Fund
Revenue Source
2010
Actual
2011
Actual
2012
Beginning
2012
Amended
2013
Initial
Variance
20131nitial vs.
2012 Be, inning
Amount Percent
Taxes 10,494,188
General Fund 10,976,487
Prop Tax Previous. In Street 482,299
Sub -Total Taxes
Intergovernmental
Licenses Permits
Charges for Services
Other Revenue
Fund Closures
TOTAL Operating Revenue
10,918,177
11,400,476
482,299
11,458,786 11,882,775
835,895 718,900
413,115 662,298
4,473,973 5,009,315
810,335 698,836
797,923 0
18,790,027 18,972,124
10,997,656
11,479,955
482,299
11,962,254
795,016
466,917
5,003,836
553,601
0
18,781,624
10,704,242 11,882,050
11,186,541 11,882,050
482,299 0
11,668,840 11,882,050
917,856 495,050
360,377 372,825
5,015,757 4,992,125
581,403 525,950
0 0
18,544,233 18,268,000
402,095
(482,299)
(80,204)
(299,966)
(94,092)
(11,711)
(27,651)
0
(513,6241
3.50%
100.00%
-0 67%
37.73%
-20 15%
-0.23%
-4 99%
n/a
-2.73%
Note
Begmnnmg with 2013, Property Tax previously directly allocated to the Street Fund ($482,000/ will be included as
General Fund Revenue A corresponding amount will be included in the Transfer Out to the Street Fund as an off -set.
2010.2012 has been restated to Include all property tax in the General Fund instead of directly allocating a portion to the Street Fund
4
Notable Considerations in 2013
General Fund Expenditures
Included in 2013 Initial
Expenditures:
Continuation of existing
programs services
+$197,000 in funding for
Criminal Justice /Jails
Backfill" for expiration of
COPS grant $278,000
Fine Arts Center funding
S38,800 same as 2012
Not Included in 2013 Initial
Expenditures:
Salary Employee Benefit
increases
Additional funding for
Criminal Justice /Jails
$5o,000
Funding for Street
repairs /restoration
$300,000
Funding for Lauridsen Bridge
grant match $100,000
$25o,000
2013 Expenditures General Fund
Expenditure Source
2010 2011
Actual Actual
2012 2012 2013
Beginning Amended Initial
Variance
2013 Initial vs.
2012 Beg,nnmg
Amount Percent
Salary Wages
Personnel Benefits
Supplies
Other Services Charges
Intergovernmental Services
Capital Outlay (Intl transfers)
Other Financing Uses
Debt Service
Interfund Transfers Out
Street Operations
"Regular" Transfer
Add-ln for Prop Tax
Sub -Total Street Oper
Medic I Operations
Contnbution to PenCom
Parks /Other
Sub -Total Transfers out
Sub -Total Other Financing
Total Expenditures Uses
8,987,382
3,144,935
574,019
2,295,353
706,323
380,000
9,225,207
3,514,732
627,798
2,305,644
715,277
1,182,149
9,586,767
3,690,383
718,749
2,466,778
673,624
1,378,500
45,208 45,172 45,100
145,010
482299
627,299
360,000
189,674
194,750
1,371,723
1,416,931
17,504,943
164000
482299
648,299
374,000
189,674
24,750
1,236,723
1,281,895
18,852,702
290,001
482,299
772299
386,000
189,674
74,750
1,422,723
1,467,823
19,982,624
9,367,903
3,590,561
734,524
2,603,364
870,624
1,349,500
250,000
482,299
732,299
386000
189,674
36750
1,346,723
1,391,823
19,908,299
9,480,092
3,528,138
720,674
2,537,012
863,624
58,000
45,100 44,990 (110) -024%
290,000
482,000
772,000
386,000
189,674
74,750
1,422,424
1,467,414
18,654,954
(106,675)
(162,245)
1,925
70,234
190,000
(1,320,500)
-1 11%
-4 40%
0 27%
2 85%
28 21%
-95 79%
O 000%
(299) -006%
(299) -004%
O 00016
O 000%
O 000%
(299) -0 02%
(409) -0 03%
(1,327,670) -0 0664412
5
Street Fund
Interdept
Other
3%
2013 Revenue Est.
Interest
Grants
1%
ptmn tot k a ...ta ...w l
Concerns:
Motor Vehicle Fuel Tax
(MVFT) has been declining
projected to continue
Ability of General Fund to
sustain current support level is
questionable
Ability to maintain current
funding support from
Stormwater and Solid Waste
could impact future utility
rates
Lack of funding for street
repair, renovation re-
building
Lauridsen Bridge Grant Match
REET
Revised Budget
Funded To Be Funded
Variance
General Fund
Revised Budget
Actually Funded
Variance
UNFUNDED TOTAL. $250,000
2011 2011
250,000 250,000
250,000 0
O (250,000)
250,000 100,000
250,000 0
O (100,000)
2013 TOTAL
150,000
250,000
100,000
650,000
500,000
(150,000)
O 350,000
O 250,000
O (100,000)
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Concerns:
REET 1 REET 2 may
only be able to cover
$250,000 of the
$400,000 obligation for
2013 2014
General Fund has
obligation for $100,000
in 2012 and may need to
cover the shortfall from
REET funding of
$150,000
6
Fee increases
Potential Revenue Enhancement
Authorize use of "Banked" capacity in property tax
$6o,000
Increase in utility tax rates (except electric)
Creation of a Transportation Benefit District with
"$2o car tab"
Could seek voter approval (in 2013) for more than $2o
for car tab
Expenditure Challenges Et Options
Challenges:
Employee Salaries Benefits
No COLA in 2011 or 2012
Criminal Justice
Jail Costs
Court Costs
Inflationary Costs:
Fuel petroleum -based
products
Options:
b Program and service review:
Reduction and /or
elimination of non priority
programs
Examine cost efficiencies of
private sector service
delivery
Staff re- alignment /re-
structuring potential for
reductions in force (RIF)
7
Summary
Current revenue stream cannot support current program
levels of service
Current economy will remain stressed through 2014
Support for infrastructure (streets, roads, buildings)
inadequate to prevent deterioration
Need to "do more with less" requires enhanced employee
training development
Long -term strategic financial plan needed to help align
available resources with needs, desires goals
Work Plan
Budget reviews with City Manager begin Wednesday, August 29th
Key Dates:
Special September Workshop with Council to for preliminary review of revenue
expenditure for all funds to be scheduled
2 "d round of budget review with City Manager begins September 25th
City Manager recommended budget delivered to Council City Clerk on October
Utility Rate Ordinance on October 25th
Public Hearing on Property Tax Levies November 6th
Council Budget Workshops in November
Adoption of 2013 Budget on December 4th
8