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HomeMy WebLinkAboutCC Special Meeting Packet 10242023October 24, 2023 Port Angeles City Council Meeting Page 1 October 24, 2023 City of Port Angeles Council Special Meeting Agenda This meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Council members, and City staff have the option to attend the meeting in person, in Council chambers at City Hall located at 321 East 5th Street, Port Angeles, or remotely via telephone or video link. To attend City Council meetings virtually, follow the instructions below or visit www.cityofpa.us for more information regarding our virtual meetings. For audio only please call: 1-844-992-4726 Webinar number: 2550 774 3897 Webinar password: QTsSDSuh742 (78773784 from phones and video systems) Webex link: https://cityofpa.webex.com/cityofpa/j.php?MTID=md934e3a914c319e4925b42c2e1303a05 These access codes are good for the October 24, 2023 meeting only. I. Call to Order – Special Meeting at 5:00 p.m. – II. Budget Work Session • 2024 Budget Presentation by Finance Director Sarina Carrizosa • City Council Discussion III. Adjournment 7:00 p.m. The Mayor and Council members encourage citizen participation. An opportunity for public comment will be available at a later date. Upcoming meeting information can be found on the City website: Meetings & Agendas | Port Angeles, WA - Official Website (cityofpa.us). Community members may also contact City Council by email at council@cityofpa.us, or written letter mailed to 321 East 5th Street, Port Angeles, WA 98362 or by dropping it by City Hall. Learn more by visiting: www.cityofpa.us/137/City-Council Port Angeles City Hall is accessible for persons with disabilities. Requests for special accommodations can be made by contacting the City Clerk’s Office. Closed captioning can also be made available. Please contact City Clerk Kari Martinez-Bailey by phone at 360-417-4634, or by email at cityclerk@cityofpa.us, to request accommodations or receive instructions for closed captioning. NOTICE SPECIAL MEETING of the PORT ANGELES CITY COUNCIL Notice is hereby given that the City Council of the City of Port Angeles will hold a special meeting on Tuesday, October 24, 2023, from 5:00 p.m. to 7:00 p.m. Listening and webcast options will be available at www.cityofpa.us. The meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Council members, and City staff have the option to attend in person at the City Hall Council Chambers, located at 321 East 5th Street in Port Angeles, or remotely via telephone or video link. The purpose of the meeting is for the Council to conduct a work session to review the 2024 proposed budget. To attend City Council meetings virtually, follow the instructions below or visit www.cityofpa.us for more information regarding our virtual meetings. For audio only please call: 1-844-992-4726 Webinar number: 2550 774 3897 Webinar password: QTsSDSuh742 (78773784 from phones and video systems) Webex link: https://cityofpa.webex.com/cityofpa/j.php?MTID=md934e3a914c319e4925b42c2e1303a05 These access codes are good for the October 24, 2023 meeting only. The Mayor and Council members encourage citizen participation. An opportunity for public comment will be available at a later date. Upcoming meeting information can be found on the City website: https://www.cityofpa.us/583/Meetings-Agendas. Community members may also contact City Council by email at council@cityofpa.us, or written letter mailed to 321 East 5th Street, Port Angeles, WA 98362 or by dropping it by City Hall. Learn more by visiting: www.cityofpa.us/137/City-Council Port Angeles City Hall is accessible for persons with disabilities. Requests for special accommodations can be made by contacting the City Clerk’s Office. Closed captioning can also be made available. Please contact City Clerk Kari Martinez-Bailey by phone at 360-417-4634, or by email at cityclerk@cityofpa.us, to request accommodations or receive instructions for closed captioning. Kari Martinez-Bailey City Clerk cityclerk@cityofpa.us (p) 360-417-4634 │TTY 360-417-4645 2024 BUDGET WORK SESSION October 24, 2023 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 2AGENDA INTRODUCTIONBalancing the Budget Budget Process 2024 Preliminary Operating Budget All Funds General Fund Special Revenue Funds Enterprise Funds Capital Funds Internal Service Funds Fiduciary & Permanent Funds 2024 Budget Schedule Council Discussion 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 3BALANCING THE 2024 BUDGET INTRODUCTIONThe success of balancing the budget relies on a collaborative effort of City Council,City Staff and the Port Angeles Community.The result of which fosters innovation,commitment and heightened fiscal stewardship.In line with these principles the 2024 Budget was balanced by: Utilizing a conservative and conscientious approach by all departments to consider the overall needs of the City. 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 4BALANCING THE 2024 BUDGET INTRODUCTIONA key step to balancing the budget was the Council taking initiative to identify six new revenue sources for implementation. These revenue sources include: 0.1% TBD Tax increase Review Fees to Offset the Cost of Service 0.1% increase for 911 Tax Vacant Property Fee Short-term Rental Fee Border Area Fuel Tax Already Council has stepped up to take on the difficult work of adopting the 0.1% TBD increase and is close to the final adoption of permit, cemetery and fire fee updates. 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 5BALANCING THE 2024 BUDGET INTRODUCTIONThis portion of the Budget process is Council’s opportunity to engage with discussion and questions regarding the proposed budget. If, during this process, there are changes that Council recommends now is the best opportunity to discuss these as a group to determine if the changes should be considered as an action item during the adoption of the budget. If the changes recommended by Council include increasing funding for a specific program or the addition of services, suggestions for corresponding budget reductions or revenue collections should also be considered. 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 6BALANCING THE 2024 BUDGET INTRODUCTIONThe 2024 Citywide Budget is balanced without reducing the core services expected by City residents.Use of reserves in any fund are the result of one-time projects and items. Citywide Total Budget $161,903,200. More than $26.1 million in capital funding. Overall,a 0.6%decrease compared to 2023. 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 7BALANCING THE 2024 BUDGET INTRODUCTIONREVENUES EXPENDITURES $26,902,800 $26,902,800 The General Fund is balanced. Use of reserves in the amount of $153,600, is planned for one-time capital and one- time large specialized projects only. The use of reserves held for specific purposes for is also planned in the 2024 Budget. Revenue collection in 2023 is anticipated to increase the fund balance to required levels. The 2024 General Fund Balance will be 23.0%. 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 8BALANCING THE 2024 BUDGET INTRODUCTIONWhen balancing the budget there were a few key components that impacted all areas of the budget that required the commitment of Staff to continue a stable,realistic and sustainable approach. PERSONNEL –In 2024 the Budget includes Cost of Living Assessments (COLA)that range between 2.5%to 5.5%. One bargaining group is still in negotiations for the 2024 year ;however,the budget includes a COLA increase at the same rate as the other bargaining groups at 5.5%.Medical benefits were projected to increase by 5%and dental and vision coverage by 2%. 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 9 STRENGTHENING OUR FOUNDATION INVESTING IN CORE SERVICES City of Port Angeles | 2024 Budget INTRODUCTION2024 BUDGET THEME 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 10STRENGTHENING OUR FOUNDATION INTRODUCTIONEnhancing the Customer Service Experience Increasing the Safety of Our Local Community Promoting Environmental Resilience Investing in Upgrades to City Infrastructure 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 11STRENGTHENING OUR FOUNDATION INTRODUCTIONCommunity Development Technician from proposed permit fees Communications & Records Management Coordinator permanently incorporated into the budget Front Desk Attendant permanently incorporated into the budget Housing permit fee waivers to promote more sustainable housing Housing Administrator position permanently included in the Budget Metrics and performance expectations Enhancing the Customer Service Experience 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 12STRENGTHENING OUR FOUNDATION INTRODUCTIONRetaining the Downtown Resource Officer; partially funded by business donations. Funding for Fire Inspections for life safety inspections. Operation Shielding Hope program; funded by opioid settlement funds. Continuation of the Community Paramedicine Program. Increasing the Safety of Our Local Community 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 13STRENGTHENING OUR FOUNDATION INTRODUCTIONAdditional position in the Stormwater fund to help meet state compliance with the National Pollutant Discharge & Elimination System (NPDES). Natural Resources/Grant Assistant Planner position Comprehensive Plan Update and Climate Resiliency Planning First purchase of fully electric vehiclesPromoting Environmental Resilience 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 14STRENGTHENING OUR FOUNDATION INTRODUCTIONThe 2024 Budget incorporates the inclusion of: Project Manager to assist with project completion and reduce the cost of consultants. City Electrician position to assist with project completion and permit requirements. Grant Administrator position to identify federal/state grants for infrastructure needs. Fleet Mechanic position to assist with maintaining our aging fleet for optimal performance. Investing in Upgrades to City Infrastructure 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 15STRENGTHENING OUR FOUNDATION INTRODUCTIONRecognizing the proposed additions to the City’s 2024 Budget are both essential and significant Staff will be monitoring new services to ensure we are meeting our commitment to our residents that maintain: Efficiencies in Customer Interactions Enhanced Customer Service Completion of backlogged projects Increased Safety Environmental Resilience Staff will create performance measurements in every area where new services have been proposed to ensure the limited funding available is used most effectively for our community. 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 16BUDGET PROCESS INTRODUCTIONCapital Facilities Plan & Transportation Improvement Plan prepared and Adopted. Council budgetary direction is received through Strategic Planning, Long-range planning, policy updates, budget work sessions and/or retreats. JANUARY -JUNE JUNE - JULY Departments enter revenue and expenditure budgets. Personnel worksheets reviewed by Department Directors. 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 17BUDGET PROCESS INTRODUCTIONDepartmental Requests delivered to City Manager for review. City Manager meets with Dept. Directors to review requests. Preliminary Budget is updated based on meetings and City Manager input.AUGUST –SEPT. OCTOBER –DEC. Recommended Preliminary Budget complete and posted. 2024 Budget was posted on October 6th. Workshops and Public Hearings are held on the Preliminary Budget, Revenue Sources and Property Tax. Final Budget is adopted by the 31st of December. (Recommend adoption on December 5th.) ALL CITY FUNDS 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 18 Total revenue and expenditures for all City funds. 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 19ALL FUNDS -REVENUE ALL CITY FUNDSThis table can be found on page 35 of the 2023 Preliminary Budget Document. $$% Taxes $16,650,475 $18,907,074 $1,844,104 $17,482,200 $19,397,700 1,915,500 10.96% Licenses & Permits 618,859 609,047 651,530 832,100 1,254,300 422,200 50.74% Intergovt. Revenue 7,289,855 7,707,719 7,456,902 19,026,600 12,198,400 (6,828,200)-35.89% Charges for Goods & Svcs.65,874,640 71,950,423 73,355,711 75,428,100 81,417,800 5,989,700 7.94% Fines & Penalties 1,590 695 596 1,800 1,500 (300)-16.67% Miscellaneous Revenue 10,844,704 5,522,115 (38,793)10,309,600 11,429,200 1,119,600 10.86% Capital Contributions 197,055 108,967 111,806 50,000 150,000 100,000 200.00% Non-Revenues - 2,000,000 25,200 1,535,400 1,510,200 5992.86% Other Financing Sources 10,688,774 12,735,488 7,278,582 12,180,400 16,105,200 3,924,800 32.22% Reserves Used - - - 26,668,200 18,413,700 (8,254,500)-30.95% TOTAL REVENUE $112,165,952 $117,541,528 $92,660,438 $162,004,200 $161,903,200 (101,000)-0.06% Change from Prior Yr. $$($1,240,245)$5,375,576 ($24,881,090)$69,343,762 Change from Prior Year %-1.10%-4.57%-17.39%37.83% 2024 PROPOSED BUDGET VARIANCE FROM 2023 BUDGET AMEND. #2 2021 ACTUAL REVENUE 2023 BUDGET AMEND. #2 2022 ACTUAL 2020 ACTUAL 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 20ALL FUNDS -REVENUE ALL CITY FUNDSThis table can be found on page 35 of the 2024 Preliminary Budget Document. Taxes 11.98%Licenses & Permits 0.76% Intergovt. Revenue 7.53% Charges for Goods & Svcs. 50.29% Fines & Penalties 0.00% Capital Contributions 0.09% Non-Revenues 0.93% Reserves Used 11.37% CITYWIDE REVENUES BY CATEGORY (TOTAL $161,903,200)26.77%23.68%26.84%1.48%2.22%7.25%2.91%4.42%3.18%1.25%Other UtilityPhoneTBDHousingLodgingREET I &II Criminal Justi TAXESPropertySales34.76%8.86%9.27%19.48%4.15%3.20%0.50%10.40%0.41%3.58%0.87%4.52%Other Internal ChargesParks & RecreationEquipment Replacements ElectricWaterWastewaterSolid WasteStormwater CHARGES Conservation Medic OnePermits 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 21ALL FUNDS -EXPENDITURES ALL CITY FUNDSThis table can be found on page 36 of the 2024 Preliminary Budget Document. $$% Salaries and Wages $19,114,903 $21,069,698 $24,359,884 $25,410,500 $27,341,500 1,931,000 7.60% Personnel Benefits 7,417,187 7,750,393 8,079,087 9,437,500 9,907,800 470,300 4.98% Supplies 14,257,709 18,586,655 18,669,858 20,014,200 21,031,500 1,017,300 5.08% Other Services & Charges 36,289,437 38,403,813 42,174,735 42,872,400 50,046,200 7,173,800 16.73% Intergovmt/Interfund Svcs 12,324,589 12,793,257 8,528,681 13,963,200 19,167,000 5,203,800 37.27% Capital Outlay 4,169,458 8,052,013 8,890,649 41,457,600 26,147,800 (15,309,800)-36.93% Debt Service: Principal 8,134,875 5,144,091 6,669,747 4,973,400 4,020,400 (953,000)-19.16% Debt Service: Interest 2,130,320 1,958,336.00 1,635,105 1,524,000 1,375,400 (148,600)-9.75% Interfund Pmts. for Services 249,541 314,682 348,395 216,300 299,300 83,000 38.37% Designated for Reserves $8,077,933 - - 2,135,100 2,566,300 431,200 0.00% TOTAL EXPENDITURES $112,165,952 $114,072,938 $119,356,141 $162,004,200 $161,903,200 (101,000)-0.06% Change from Prior Yr. $$$1,240,245 $1,906,986 $5,283,203 $42,648,059 Change from Prior Year %1.12%1.70%4.63%35.73% 2024 PROPOSED BUDGET VARIANCE FROM 2023 BUDGET AMEND. #2 EXPENDITURES 2023 BUDGET AMEND. #2 2021 ACTUAL 2022 ACTUALS 2020 ACTUAL 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 22ALL FUNDS -EXPENDITURES ALL CITY FUNDSThis table can be found on page 36 of the 2024 Preliminary Budget Document. Salaries and Wages 16.89% Supplies 12.99% Other Services & Charges 30.91% Capital Outlay 16.15% Debt Service: Principal 2.48% Debt Service: Interest 0.85% Interfund Pmts. for Services 0.18%Designated for Reserves 1.59% CITYWIDE EXPENDITURES BY CATEGORY (TOTAL $161,903,200) Professional Services 13.02%Medical & Benefit Premiums 9.99%Taxes 13.94%Allocations 10.90%Repairs & Maintenance 4.73%Equipment Services 6.43%IT 4.11%Other 20.58%Liability Insurance 8.76%Utilities 3.21%Communication 1.11%Travel & Training 1.16%Conservation Incentives 1.13%PenCom User Fees 0.91% OTHER SERVICES Capital 70.42%Street/Medic 1/Code Enforcement Transfers 9.06%Contract for Jail Services 5.68%Debt 4.54%Other 10.30% INTERFUND SERVICES 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 23ALL FUNDS -EXPENDITURES ALL CITY FUNDSMedical,PERS/LEOFF retirement,and Workers Comp are expected to increase . $$% Full time Salaries 17,026,697$ 18,467,535$ 19,973,677$ 23,515,700$ 25,284,100$ 1,768,400 7.52% Part Time Salaries 250,788 184,005 517,467 433,600 656,500 222,900 51.41% Seasonal/Temporary Salaries 276,419 276,424 204,528 335,300 346,800 11,500 3.43% Overtime 987,692 1,055,038 1,473,231 888,500 805,300 (83,200) -9.36% Benefits 7,672,795 7,750,382 8,152,491 8,790,500 9,907,800 1,117,300 12.71% Travel & Training 290,014 183,331 322,273 500,600 543,200 42,600 8.51% Memberships & Subscriptions 110,142 191,719 116,006 169,700 171,800 2,100 1.24% Uniforms 64,417 55,332 77,907 76,800 52,500 (24,300) -31.64% TOTAL EXPENDITURES 26,678,964$ 28,163,766$ 30,837,580$ 34,710,700$ 37,768,000$ 3,057,300 8.81% Change from Prior Yr. $$444,768$ 1,484,802$ 2,673,814$ 3,873,120$ Change from Prior Year %1.70%5.57%9.49%12.56% 2021 ACTUAL 2022 ACTUAL EXPENDITURES 2020 ACTUAL VARIANCE FROM 2023 BUDGET AMEND. #2 2024 PROPOSED BUDGET 2023 BUDGET AMEND. #2 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 24ALL FUNDS –FUND BALANCES ALL CITY FUNDS0.0% 20.0% 40.0% 60.0% 80.0% 100.0% % of 2024 Expenditures Fund Balance Target % GENERAL FUND 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 25 The General Fund is the main operating fund of the City. City Council City Manager’s Office Finance Department Legal Department Community & Economic Development Public Works & Utilities Parks & Recreation Police Department Fire Department 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 26GENERAL FUND GENERAL FUNDThis table can be found on page 46 of the 2024 Preliminary Budget Document. $$% Taxes 14,009,132$ 15,179,927$ 15,023,317$ 14,770,600$ 15,953,800$ 1,183,200 8.01% Licenses & Permits 495,661 486,789 509,223 700,300 1,041,100 340,800 48.66% Intergovt. Revenue 2,312,499 1,932,181 2,155,272 1,649,300 3,100,900 1,451,600 88.01% Charges for Goods & Svcs.4,649,739 4,817,582 4,927,960 5,720,700 6,260,800 540,100 9.44% Fines & Penalties 1,590 695 596 1,800 1,500 (300) -16.67% Miscellaneous Revenue 176,628 67,490 (578,670) 258,800 230,400 (28,400) -10.97% Prop./Trust Income - - - - - - N/A Non-Revenues - - - - - - N/A Other Financing Sources 165,000 63,566 121,889 88,000 160,700 72,700 82.61% TOTAL REVENUE 21,810,249$ 22,548,230$ 22,159,587$ 23,189,500$ $26,749,200 3,559,700 15.35% Change from Prior Yr. $$822,568$ 737,981$ (388,643)$ 1,029,913$ Change from Prior Year %3.92%3.38%-1.72%4.65% 2021 ACTUAL REVENUE 2023 BUDGET AMEND. #2 2024 PROPOSED BUDGET VARIANCE FROM 2023 BUDGET AMEND. #22022 ACTUAL 2020 ACTUAL 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 27GENERAL FUND GENERAL FUNDThis table can be found on page 46 of the 2024 Preliminary Budget Document. Taxes 59.64% Licenses & Permits 3.89% Intergovt. Revenue 11.59% Charges for Goods & Svcs. 23.41% Fines & Penalties 0.01% Miscellaneous Revenue 0.86%Other Financing Sources 0.60% Property Tax 32.55% Utility Tax 32.76% Sales Tax 28.79% Other Tax 5.88% TAXES Allocations 87.09% Activity & Rental Fees 1.15% Planning Fees 4.95% Cemetery Services 2.16% Other 4.65% CHARGES FOR SERVICES 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 28GENERAL FUND GENERAL FUNDThis table can be found on page 47 of the 2024 Preliminary Budget Document. $$% Salaries and Wages 9,198,883$ 9,616,205$ 10,123,753$ 11,042,800$ 12,042,700$ 999,900 9.05% Personnel Benefits 3,582,560 3,667,459 3,800,904 4,301,200 4,450,900 149,700 3.48% Supplies 624,833 603,268 878,667 841,200 838,900 (2,300) -0.27% Other Services & Charges 4,409,986 5,318,598 5,284,183 4,711,500 4,871,000 159,500 3.39% Intergovmt/Interfund Svcs 3,532,140 3,746,895 2,996,612 3,655,900 4,699,300 1,043,400 28.54% Capital Outlay - - - - - - N/A Debt Service: Principal - - - - - - N/A Debt Service: Interest - - 3 - - - N/A Interfund Pmts. for Services 13,534 49,754 12,991 - - - N/A TOTAL EXPENDITURES 21,361,936$ 23,002,179$ 23,097,113$ 24,552,600$ $26,902,800 2,350,200 9.57% Change from Prior Yr. $$1,605,413$ 1,640,243$ 94,934$ 1,455,487$ Change from Prior Year %8.13%7.68%0.41%6.30% 2021 ACTUAL EXPENDITURES 2023 BUDGET AMEND. #2 2024 PROPOSED BUDGET VARIANCE FROM 2023 BUDGET AMEND. #22022 ACTUAL 2020 ACTUAL 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 29GENERAL FUND GENERAL FUNDThis table can be found on page 47 of the 2024 Preliminary Budget Document. Salaries and Wages 44.76% Personnel Benefits 16.54% Supplies 3.12% Other Services & Charges 18.11% Intergovmt/Interfund Svcs 17.47% Professional Services 25.34% Equipment Services 19.69% IT Services 12.29% Utilities 9.97% PenCom User Fees 6.08% Communication 4.60% Travel & Training 4.51% Insurance 7.97% Repairs & Maintenance 4.55% Façade Improvements 1.03% Other Services & Charges 3.97% SERVICES & CHARGES Transfers - Street Fund 19.30% Contract for Jail Services 23.15% Transfers - Medic 1 Fund 5.65% Transfers - Capital 45.59% Transfers - Debt Service 0.90% Transfers - Code Enforceme 5.41% Other Intergovernmental 0.00% INTERGOVERNMENTAL 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 30 $39,605 $17,269 $20,207 $40,700 $69,300 $63,944 $57,491 $60,046 $71,800 $101,800 $- $20,000 $40,000 $60,000 $80,000 $100,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget CITY COUNCIL 2024 PRELIMINARY BUDGET Revenues Expenditures CITY COUNCIL GENERAL FUNDMajor Revenue Source:Allocations Change in Expenditures from 2023:In 2023,City Council passed an ordinance to increase City Council’s monthly compensation.The new rates will apply only to newly elected members in 2024.All other positions will remain at the previous rate in 2024. 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 31CITY COUNCIL GENERAL FUND 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 32CITY MANAGER’S OFFICE GENERAL FUNDMajor Revenue Source:Allocations Change in Expenditures from 2023:There is an increase to supplies for computer replacements required for City Council and Council Chambers.The decrease for one- time professional service fees for the City code updates is the result of budget that will carry into the 2024 budget.$501,374 $571,740 $457,001 $579,100 $551,300 $806,675 $880,033 $980,436 $1,276,400 $1,304,200 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget CITY MANAGER'S OFFICE 2024 PRELIMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 33CITY MANAGER’S OFFICE GENERAL FUNDOvertime , $900 Overtime, $1,000 Supplies, $4,000 Supplies, $4,000 Travel & Training , $13,300 Travel & Training , $14,600 Professional Services, $143,600 Professional Services, $64,700 Equipment Services, $400 Equipment Services, $400 Communication Expenses, $13,800 Communication Expenses, $14,900 Software, $14,500 Software, $16,500 $- $50,000 $100,000 $150,000 $200,000 $250,000 2023 2024 Overtime Supplies Travel & Training Professional Services Equipment Services Communication Expenses Software 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 34FINANCE DEPARTMENT GENERAL FUNDMajor Revenue Source:Tax Revenues. Change in Expenditures from 2023:Professional Services cost increases for credit card processing,utility bill mailings,and the City’s annual audit.$16,515,135 $17,158,366 $16,544,642 $17,504,900 $18,781,100 $2,787,383 $2,899,115 $3,154,292 $3,402,200 $3,670,300 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget FINANCE DEPARTMENT 2024 PRELIMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 35FINANCE DEPARTMENT GENERAL FUNDOvertime, $6,700 Overtime, $6,700 Supplies, $25,200 Supplies, $25,200 Professional Services, $391,900 Professional Services, $455,200 Travel & Training, $23,500 Travel & Training, $23,500 Equipment Services, $21,600 Equipment Services, $26,400 IT Services, $541,200 IT Services, $598,500 Communication Expenses, $31,500 Communication Expenses, $31,900 Software, $2,200 Software, $2,200 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2023 2024 Overtime Supplies Professional Services Travel & Training Equipment Services IT Services Communication Expenses Software 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 36LEGAL DEPARTMENT GENERAL FUNDMajor Revenue Source:Allocations. Change in Expenditures from 2023:4.5%increase to prosecution fees to the County based on the CPI index.$346,789 $355,906 $173,378 $217,200 $213,000 $1,409,490 $1,426,588 $1,540,513 $1,636,400 $1,709,900 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget LEGAL DEPARTMENT 2024 PRELIMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 37LEGAL DEPARTMENT GENERAL FUNDSupplies, $4,600 Supplies, $4,500 Travel & Training, $8,000 Travel & Training, $8,100 Professional Services, $100 Professional Services, $100 Criminal Justice Transfer, $1,041,100 Criminal Justice Transfer, $1,087,900 Equipment Services, $1,300 Equipment Services, $1,300 Communication Expenses, $2,000 Communication Expenses, $2,400 Software, $1,800 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2023 2024 Supplies Travel & Training Professional Services Criminal Justice Transfer Equipment Services Communication Expenses Software 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 38COMMUNITY & ECONOMIC DEVELOPMENT GENERAL FUNDMajor Revenue Source:Permits and Fees. Change in Expenditures from 2023:In 2024,an increase to salaries and personnel benefits is planned for inclusion of the Natural Resources and Grants Assistant Planner position and promotions for senior staff.As well as the inclusion of budget for the Comprehensive Plan update .$1,143,788 $798,291 $661,112 $1,155,000 $1,220,900 $808,799 $1,484,800 $839,887 $1,183,000 $1,301,200 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget COMMUNITY & ECONOMIC DEVELOPMENT 2024 PRELIMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 39COMMUNITY & ECONOMIC DEVELOPMENT GENERAL FUNDOvertime, $1,000 Overtime , $1,000 Supplies, $4,000 Supplies, $3,500 Travel & Training, $15,600 Travel & Training, $15,600 Professional Services, $255,000 Professional Services, $165,000 Façade Improvements, $70,000 Façade Improvements, $50,000 Equipment Services, $5,100 Equipment Services, $5,600 Communication Expenses, $3,600 Communication Expenses, $4,800 Software, $5,000 Software, $5,000 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 2023 2024 Overtime Supplies Travel & Training Professional Services Façade Improvements Equipment Services Communication Expenses Software 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 40POLICE DEPARTMENT GENERAL FUNDMajor Revenue Source:Grants,tax revenue,State shared revenues. Change in Expenditures from 2023:Increases for the purchase of replacement vehicles approved in the CFP.$941,242 $1,148,327 $1,004,114 $1,239,400 $1,196,800 $6,248,317 $6,357,626 $6,921,315 $7,367,800 $7,684,000 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget POLICE DEPARTMENT 2024 PRELIMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 41POLICE DEPARTMENT GENERAL FUNDOvertime , $344,900 Overtime, $260,400 Supplies, $117,700 Supplies, $109,900 Travel & Training, $61,700 Travel & Training , $61,700 Professional Services, $334,000 Professional Services, $334,000 Utilities Expense , $6,600 Utilities Expense , $7,200 Equipment , $288,100 Equipment , $378,900 Communication Expenses, $79,900 Communication Expenses, $88,500 PenCom Services, $291,600 PenCom Services, $280,800 Repairs & Maintenance, $4,700 Repairs & Maintenance, $4,700 Fuel, $60,500 Fuel, $60,500 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2023 2024 Overtime Supplies Travel & Training Professional Services Utilities Expense Equipment Communication Expenses PenCom Services Repairs & Maintenance Fuel 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 42FIRE DEPARTMENT GENERAL FUNDMajor Revenue Source:Allocations. Change in Expenditures from 2023:A decrease in intergovernmental transfers from capital transfers outlined in the CFP.The 2024 budget includes additional funding for fire inspection services.The amount transferred to the Medic 1 Utility remained the same as in the 2023 budget.$67,429 $71,764 $99,191 $76,800 $174,200 $2,713,505 $2,344,899 $2,364,753 $2,468,000 $2,468,600 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget FIRE DEPARTMENT 2024 PRELIMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 43FIRE DEPARTMENT GENERAL FUNDOvertime, $70,000 Overtime, $70,000 Supplies, $61,200 Supplies, $50,600 Travel & Training, $37,100 Travel & Training, $37,100 Professional Services, $20,700 Professional Services, $20,700 Equipment Services, $266,800 Equipment Services, $268,500 PenCom Services, $26,700 PenCom Services, $15,500 Repairs & Maintenance, $12,000 Repairs & Maintenance, $13,000 Utilites Expense, $34,400 Utilites Expense, $38,600 Capital (including transfers), $86,700 Capital (including transfers), $69,200 Fuel, $17,100 Fuel, $17,700 Communication Expenses, $17,200 Communication Expenses, $18,100 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2023 2024 Overtime Supplies Travel & Training Professional Services Equipment Services PenCom Services Repairs & Maintenance Utilites Expense Capital (including transfers)Fuel Communication Expenses 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 44PARKS & RECREATION GENERAL FUNDMajor Revenue Source:Rental revenue and allocations. Change in Expenditures from 2023:There was a decrease in interfund services resulting from changes to capital projects as compared to 2023 as outlined in the CFP.$586,670 $649,808 $731,059 $706,700 $847,800 $3,126,569 $3,343,834 $3,616,815 $3,914,100 $3,597,900 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget PARKS & RECREATION DEPARTMENT 2024 PRELIMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 45PARKS & RECREATION GENERAL FUNDOvertime , $29,700 Overtime , $29,900 Supplies, $221,500 Supplies, $226,500 Travel & Training, $8,000 Travel & Training, $8,000 Equipment, $207,800 Equipment, $269,100 Prof. Services, $17,000 Utilities Expense , $356,000 Utilities Expense, $372,200 Repairs & Maintenance, $88,000 Repairs & Maintenance, $88,000 Transfers to Capital , $516,100 Transfers to Capital , $106,000 Fuel, $39,800 Fuel, $39,800 Comm. Expenses, $23,600 Comm. Expenses, $23,300 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2022 2023 Overtime Supplies Travel & Training Equipment Prof. Services Utilities Expense Repairs & Maintenance Transfers to Capital Fuel Comm. Expenses 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 46PUBLIC WORKS & UTILITIES GENERAL FUNDMajor Revenue Source:Allocations. Change in Expenditures from 2023:Decreased transfers to the Street fund due to the additional 0.1%increase to transportation benefit district tax.An increase for a proposed Technology Project Manager,Capital Projects Manager and Grant Administrator positions.$861,221 $949,146 $1,269,356 $1,274,200 $1,603,200 $2,059,603 $2,041,287 $2,179,941 $2,738,900 $2,706,800 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget PUBLIC WORKS & UTILITIES DEPARTMENT 2024 PRELIMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 47PUBLIC WORKS & UTILITIES GENERAL FUNDOvertime , $1,000 Overtime , $1,000 Supplies, $15,200 Supplies, $17,200 Travel & Training, $26,500 Travel & Training, $26,500 Professional Services, $55,300 Professional Services, $65,300 Software, $55,000 Software, $62,500 Transfer to Street Department, $1,196,300 Transfer to Street Department, $906,900 Equipment Services, $20,800 Equipment Services, $23,600 Communication Expenses, $12,400 Communication Expenses, $18,600 Capital , $161,000 Capital , $30,000 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2023 2024 Overtime Supplies Travel & Training Professional Services Software Transfer to Street Department Equipment Services Communication Expenses Capital 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 48NON-DEPARTMENTAL GENERAL FUNDChange in Expenditures from 2023:Transfer of $1.8M for the HVAC projects.$80,996 $802,046 $1,199,527 $395,500 $2,091,600 $1,337,651 $2,166,510 $1,439,115 $494,000 $2,358,100 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget NON -DEPARTMENTAL 2024 PRELIMINARY BUDGET Revenues Expenditures SPECIAL REVENUE FUNDS 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 49 Special Revenue funds account for and report the proceeds of specific resources that are committed for specific purposes other than debt service or capital projects. Lodging Tax Street REET I & II PenCom Housing Fund Code Compliance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 50LODGING TAX SPECIAL REVENUESMajor Revenue Source :Tax revenues . Change in Expenditures from 2023:Lodging Tax administration will be based on the following percentages in 2024.20%toward capital expenditures;5%toward committee priorities; 25%toward marketing;33%for operations of city owned tourism related facilities;12%toward events and 5%remaining in reserves for capital items.$507,237 $1,056,807 $1,084,719 $764,100 $876,200 $759,776 $528,233 $601,408 $897,100 $1,069,900 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget LODGING TAX 2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 51LODGING TAX SPECIAL REVENUEEvent Grants, $76,000 Event Grants, $105,200 Tourism & Marketing, $308,300 Tourism & Marketing, $361,400 Capital, $215,500 Capital, $387,700 Administrative Services & Operations, $221,600 Administrative Services & Operations, $152,400 Debt Service , $19,500 Debt Service , $19,400 Capital Reserve, $38,200 Capital Reserve, $43,800 Committee Priorities , $38,200 Committee Priorities , $43,800 $20,000 $220,000 $420,000 $620,000 $820,000 $1,020,000 2023 2024 Event Grants Tourism & Marketing Capital Administrative Services & Operations Debt Service Capital Reserve Committee Priorities 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 52STREET DEPARTMENT SPECIAL REVENUEMajor Revenue Source :Tax revenues as well as General Fund &Utilities support.The 2024 budget includes an increase for the TBD tax of 0.1%that results in $509,100. Change in Expenditures from 2023:Changes were a result of increased employee costs, cost of supplies,fuel and equipment service replacement charges.$1,671,370 $1,720,799 $1,625,249 $1,928,600 $2,168,700 $1,474,393 $1,656,385 $1,736,213 $2,101,500 $2,168,700 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget STREET FUND 2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 53STREET DEPARTMENT SPECIAL REVENUEOvertime , 13,800 Overtime , 13,800 Supplies, 59,000 Supplies, 66,000 Building & Maintenance Supplies, 162,200 Building & Maintenance Supplies, 130,200 Traffic Supplies, 129,100 Traffic Supplies, 121,600 Fuel, 39,600 Fuel, 39,600 Prof. Services, 63,500 Prof. Services, 65,500 Travel & Training , 14,900 Travel & Training , 16,400 Utilites Expense, 98,900 Utilites Expense, 98,900 Street Lighting , 102,000 Street Lighting , 102,000 Repairs & Maintenance, 109,900 Repairs & Maintenance , 119,900 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2023 2024 Overtime Supplies Building & Maintenance Supplies Traffic Supplies Fuel Prof. Services Travel & Training Utilites Expense Street Lighting Repairs & Maintenance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 54REET I SPECIAL REVENUEMajor Revenue Source:Tax revenues . Change in Expenditures from 2023:Capital spending for the City Hall and Senior Center’s Fire Detection System,Intersection Control Study,Laurel Street Stairs and the Restroom Replacement program.$430,742 $555,717 $389,025 $321,800 $313,200 $387,900 $617,800 $355,200 $900,600 $767,800 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget REAL ESTATE EXCISE TAX 1 -2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 55REET II SPECIAL REVENUEMajor Revenue Source :Tax revenues. Change in Expenditures from 2023:Capital spending for the Intersection Control Studies,School Area Speed Signs,and Waterfront Trail Repair projects.$429,099 $555,625 $401,796 $320,100 $313,800 $142,530 $920,422 $512,000 $1,076,300 $200,000 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget REAL ESTATE EXCISE TAX II -2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 56PENCOM SPECIAL REVENUEMajor Revenue Source :Taxes and User Fees. Change in Expenditures from 2023:Increase in personnel costs,repairs and maintenance costs of equipment and an increase in administrative costs.There is a decrease in spending for the 911 center as approved in the CFP.$3,192,057 $2,851,500 $3,744,166 $3,744,200 $3,570,700 $3,053,005 $3,186,529 $3,784,497 $4,367,200 $4,024,500 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget PENCOM 2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 57PENCOM SPECIAL REVENUEOvertime, 120,000 Overtime, 120,000 Supplies, 21,900 Supplies, 21,900 Admin. Services, 196,900 Admin. Services, 219,900 Professional Services, 17,500 Professional Services, 17,500 Travel & Training , 55,600 Travel & Training, 55,600 Repairs & Maintenance, 472,600 Repairs & Maintenance, 494,500 Communication Expenses, 42,200 Communication Expenses, 46,100 Capital Projects , 50,000 - 200,000 400,000 600,000 800,000 1,000,000 2023 2024 Overtime Supplies Admin. Services Professional Services Travel & Training Repairs & Maintenance Communication Expenses Capital Projects 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 58BUSINESS IMPROVEMENT AREA SPECIAL REVENUEMajor Revenue Source :Fees collected from Downtown Business for parking. Change in Expenditures from 2023:None .$9,312 $16,410 $32,615 $35,000 $32,900 $38,800 $4,000 $9,000 $-$- $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget BUSINESS IMPROVEMENT AREA FUND -2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 59PA HOUSING REHABILITATION SPECIAL REVENUEMajor Revenue Source :Affordable Housing Sales tax,Sales tax credit,and Grant revenues . Change in Expenditures from 2023:Expenditures decreased due to a CDBG grant for COVID related relief that is not occurring in 2024.A transfer to fund the Housing Administrator position in the Community &Economic Development Department using Affordable Housing Tax .$1,125,700 $699,212 $918,978 $1,155,700 $608,500 $809,279 $512,641 $200,000 $662,600 $254,700 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget PA HOUSING REHABILITATION FUND -2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 60CODE COMPLIANCE SPECIAL REVENUEMajor Revenue Source :Transfer from the General Fund. Change in Expenditures from 2023:Includes one full-time and two part-time Code Enforcement Officers as well as supplies and vehicle expenses for this division.It also includes a contract with Clallam County Sheriff’s Department for use of their Cleanup Crew.$594 $(315)$145,467 $261,900 $254,100 $326 $326 $128,603 $261,900 $254,300 $(10,000) $40,000 $90,000 $140,000 $190,000 $240,000 $290,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget CODE COMPLIANCE FUND -2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance ENTERPRISE FUNDS 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 61 Enterprise fund types account for activities for which a fee is charged to external users for goods or services. These fees cover the full cost to provide these services. Electric Water Wastewater Solid Waste Stormwater Medic 1 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 62ELECTRIC ENTERPRISE FUNDSSignificant Changes:An increase in the amount of power purchased from Bonneville Power Association (BPA),an increase in departmental charges for services,an increase in transfers for light operations building capital project,and an increase to personnel to include the City Electrician position.$23,814,676 $28,224,260 $26,575,967 $28,876,200 $29,085,800 $27,554,791 $25,820,286 $25,662,508 $27,578,500 $33,055,700 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget ELECTRIC UTILITY 2024 PRELIMINARY BUDGET Revenues Expenditures Cash Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 63ELECTRIC ENTERPRISE FUNDSProfessional Services, 141,400 Professional Services, 128,800 Utilities, 72,100 Utilities, 81,200 Admin. Services, 1,729,000 Admin. Services, 1,860,600 Travel & Training, 53,100 Travel & Training, 60,200 Taxes , 2,793,900 Taxes , 2,793,900 Fuel , 33,100 Fuel, 33,100 Capital , 821,400 Capital , 4,515,100 Liability Insurance , 146,600 Liability Insurance , 146,600 Debt Payments , 232,600 Debt Payments , 235,200 Power Purchase, 16,529,000 Power Purchase, 17,355,000 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 2023 2024 Professional Services Utilities Admin. Services Travel & Training Taxes Fuel Capital Liability Insurance Debt Payments Power Purchase 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 64ELECTRIC CONSERVATION ENTERPRISE FUNDSSignificant Changes:Incentive revenue is budgeted based on the anticipated increase of purchased power.Expenditures are budgeted higher due to an increase in incentive expectations from BPA .$263,060 $275,165 $386,812 $348,000 $709,600 $411,980 $358,573 $503,329 $347,500 $709,600 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget ELECTRIC CONSERVATION UTILITY 2024 PRELIMINARY BUDGET Revenues Expenditures Cash Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 65ELECTRIC CONSERVATION ENTERPRISE FUNDSAdvertising, 3,300 Advertising, 3,500 Admin Services, 13,700 Admin Services, 22,100 Professional Svcs, 2,000 Professional Svcs, 2,000 Travel & Training, 5,000 Travel & Training, 5,000 Communication, 1,300 Communication, 600 Conservation Incentives , 150,000 Conservation Incentives , 500,000 Equipment Services, 6,100 Equipment Services, 7,200 - 100,000 200,000 300,000 400,000 500,000 600,000 2023 2024 Advertising Admin Services Professional Svcs Travel & Training Communication Conservation Incentives Equipment Services 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 66WATER ENTERPRISE FUNDSSignificant Changes:Expenditure changes are attributed to an increase in supplies for repairs and building maintenance and insurance.There is a decrease planned in debt services for the 2013 Water/Wastewater revenue bond pay off the 2013 revenue bond.Additionally,$1,125,300 is included in the budget for the industrial water treatment plant from NPS settlement funds. Finally,the Water division will provide a $1.5 million interfund loan to the Solid Waste division.$9,383,963 $6,572,756 $5,278,244 $7,447,300 $7,499,400 $6,658,721 $6,762,455 $8,522,831 $9,408,500 $12,784,900 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget WATER UTILITY 2024 PRELIMINARY BUDGET Revenues Expenditures Cash Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 67WATER ENTERPRISE FUNDSProfessional Services, 161,000 Professional Services, 179,800 Travel & Training, 28,400 Travel & Training, 30,400 Liability Insurance , 368,000 Liability Insurance , 579,500 Utilities, 393,000 Utilities, 294,900 Administrative Services, 1,123,100 Administrative Services, 1,191,800 Taxes , 1,035,700 Taxes , 1,035,700 Fuel , 29,300 Fuel , 29,300 Capital Transfers, 786,400 Capital Transfers , 2,790,100 Debt Payments , 1,560,500 Debt Payments , 560,100 Building & Maintenance Supplies , 78,500 Building & Maintenance Supplies , 86,000 Repairs & Maintenance , 304,500 Repairs & Maintenance , 484,500 Equipment Services , 131,200 Equipment Services , 161,200 Industrial Water, 867,900 Industrial Water, 1,125,300 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 2023 2024 Professional Services Travel & Training Liability Insurance Utilities Administrative Services Taxes Fuel Capital Transfers Debt Payments Building & Maintenance Supplies Repairs & Maintenance Equipment Services Industrial Water 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 68WASTEWATER ENTERPRISE FUNDSSignificant Changes:Increases in expenditures compared to the 2023 Budget are for liability insurance premiums,transfers for capital projects,and administrative services.Payment for debt service are expected to decrease as a result of the early maturity of the 2013 Water/Wastewater revenue bonds.Finally,the movement of the Pollution Specialist position into Stormwater division is reflected in salaries and wages.$7,247,320 $7,249,337 $6,724,359 $7,685,900 $7,678,700 $6,799,511 $6,839,416 $6,995,583 $8,421,200 $9,164,700 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget WASTEWATER UTILITY 2024 PRELIMINARY BUDGET Revenues Expenditures Cash Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 69WASTEWATER ENTERPRISE FUNDSProfessional Services, 178,200 Professional Services, 151,500 Travel & Training, 24,200 Travel & Training, 26,000 Liability Insurance , 275,000 Liability Insurance , 616,700 Utilities, 440,000 Utilities, 468,700 Administrative Services, 1,130,900 Administrative Services, 1,176,000 Taxes , 1,229,100 Taxes , 1,229,100 Fuel , 83,000 Fuel , 73,000 Capital Transfers , 1,299,900 Capital Transfers , 1,873,000 Debt Payments , 769,300 Debt Payments , 360,900 Building & Maintenance , 115,000 Building & Maintenance , 115,000 Repairs & Maintenance , 185,000 Repairs & Maintenance , 245,000 Equip. Services , 120,200 Equip. Services , 120,200 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2023 2024 Professional Services Travel & Training Liability Insurance Utilities Administrative Services Taxes Fuel Capital Transfers Debt Payments Building & Maintenance Repairs & Maintenance Equip. Services 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 70SOLID WASTE ENTERPRISE FUNDSSignificant Changes:The increase in expenditures are largely due to increased solid waste service costs and an additional $315,200 for debt payments associated with the $1.5 million interfund loan that will mature in 2028.In addition,there is $473,000 in the 2024 budget for Landfill post closure costs associated with the Landfill bluff project .These amounts are not included in rate revenue calculations.$12,584,274 $12,793,881 $14,501,297 $12,449,600 $17,520,500 $12,338,899 $15,582,254 $19,556,407 $12,880,700 $16,707,500 $(800,000) $4,200,000 $9,200,000 $14,200,000 $19,200,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget SOLID WASTE UTILITY 2024 PRELIMINARY BUDGET Revenues Expenditures Cash Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 71SOLID WASTE ENTERPRISE FUNDSProfessional Services, 548,100 Professional Services, 693,700 Travel & Training, 15,400 Travel & Training, 17,800 Transfer Station Services, 1,600,000 Transfer Station Services, 1,550,000 Admin. Services, 1,075,500 Admin. Services, 1,121,200 Taxes , 1,571,000 Taxes , 1,918,800 Fuel , 258,000 Fuel , 258,000 Capital Transfers , 181,400 Capital Transfers , 400,100 Debt Payments , 425,200 Debt Payments , 420,200 Contractual Services, 3,470,300 Contractual Services, 4,643,000 Repairs & Maintenance , 123,300 Repairs & Maintenance , 175,800 Equip. Services , 735,000 Equip. Services , 760,000 Street Transfers, 125,000 Street Transfers, 150,000 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 2023 2024 Professional Services Travel & Training Transfer Station Services Admin. Services Taxes Fuel Capital Transfers Debt Payments Contractual Services Repairs & Maintenance Equip. Services Street Transfers 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 72STORMWATER ENTERPRISE FUNDSSignificant Changes:An increase in expenditures are attributed to the cost of grant funded equipment replacements,an increase in transfers for capital,and increase to personnel for one Utility Worker to assist with additional requirements for NPDES permits as well as the movement of the Pollution Prevention Specialist from the Wastewater division.$2,622,180 $2,500,501 $2,504,123 $2,768,400 $3,724,400 $2,195,577 $2,561,880 $2,700,401 $3,212,700 $3,924,400 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget STORMWATER UTILTY 2024 PRELIMINARY BUDGET Revenues Expenditures Cash Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 73STORMWATER ENTERPRISE FUNDSProfessional Services, 201,600 Professional Services, 205,500 Travel & Training, 20,100 Travel & Training, 20,000 Administrative Services, 716,100 Administrative Services, 689,900 Taxes , 267,800 Taxes , 335,500 Capital Transfers , 575,000 Capital Transfers , 827,100 Repairs & Maintenance , 45,000 Repairs & Maintenance , 45,000 Equip. Services, 195,600 Equip. Services, 510,600 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2023 2024 Professional Services Travel & Training Administrative Services Taxes Capital Transfers Repairs & Maintenance Equip. Services 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 74MEDIC I ENTERPRISE FUNDSSignificant Changes:The General Fund transfers remained the same as 2023 to keep the Medic 1 fund balance at 25%.A decrease in expenditures is due to the reduction of the budget to include two Community Paramedics instead of three until grant funding is confirmed.There is also a planned use of $100,000 from excess reserves for rate stabilization to occur each year through 2025 as approved in the COSA process.$3,281,262 $3,018,901 $3,054,788 $3,810,500 $3,445,400 $3,115,992 $2,995,431 $3,155,346 $3,856,200 $3,738,200 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget MEDIC 1 2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 75MEDIC I ENTERPRISE FUNDSSupplies , 76,000 Supplies , 76,000 Professional Services, 365,500 Professional Services, 256,100 Travel & Training, 90,200 Travel & Training, 90,200 PenCom Services, 160,000 PenCom Services, 161,100 Fuel, 18,000 Fuel, 18,000 Equipment Services, 63,000 Equipment Services, 63,000 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2023 2024 Supplies Professional Services Travel & Training Fuel Equipment Services 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 76FIRE DEPT & MEDIC I COMBINED ENTERPRISE FUNDSThe General Fund transfer for support has been excluded from this chart to more accurately show revenues and expenditures.$2,674,891 $3,090,665 $3,153,979 $3,887,300 $3,619,600 $5,155,697 $5,340,330 $5,520,099 $6,324,200 $6,206,800 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget FIRE & MEDIC 1 COMBINED 2024 PRELIMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 77HARBOR CLEAN-UP ENTERPRISE FUNDSSignificant Changes:Decrease in the amount of insurance reimbursements.$991,047 $1,152,676 $165,059 $2,050,600 $2,050,600 $964,816 $1,251,975 $207,653 $2,050,600 $2,050,600 $(500,000) $- $500,000 $1,000,000 $1,500,000 $2,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget HARBOR CLEAN -UP 2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance CAPITAL FUNDS 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 78 Capital Funds are used to account for financial resources to be used for the acquisition or construction of capital facilities and projects. Revenues occur in the form of transfers from other funds and grants. Transportation Benefit District Governmental Utility 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 79GENERAL GOVERNMENT CAPITAL FUNDSAll projects that were approved in the 2024-2029 Capital Facilities Plan are included in the 2024 Budget. $1,822,899 $1,149,087 $1,277,675 $6,079,800 $3,004,000 $820,193 $371,319 $1,811,617 $7,688,100 $3,097,500 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget GOVERNMENTAL CAPITAL PROJECTS 2024 PRELMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 80TRANSPORTATION BENEFIT DISTRICT CAPITAL FUNDSAll projects that were approved in the 2024-2029 Capital Facilities Plan are included in the 2024 Budget. $1,772,659 $3,997,896 $1,863,971 $10,620,800 $5,277,300 $1,169,852 $2,858,388 $1,373,010 $12,913,500 $6,335,400 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget TRANSPORTATION BENEFIT DISTRICT FUND 2024 PRELIMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 81ALL UTILITY CAPITAL FUNDS CAPITAL FUNDSAll projects that were approved in the 2024-2029 Capital Facilities Plan are included in the 2024 Budget. $8,993,337 $6,571,287 $6,382,743 $9,521,400 $14,228,100 $5,046,538 $7,135,158 $5,405,762 $19,683,400 $17,771,300 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget UTILITY CAPITAL FUNDS 2024 PRELIMINARY BUDGETS Revenues Expenditures INTERNAL SERVICE FUNDS 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 82 Internal Service funds account for services provided from one fund to another fund on a cost reimbursement basis. Equipment Services IT Self Insurance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 83EQUIPMENT SERVICES INTERNAL SERVICESignificant Changes:The 2024 Budget includes an entry level Fleet Maintenance Mechanic to increase capacity for the department and provide services Citywide .There is an increase in supplies as a result of increased replacement costs for supplies and tools.There is a decrease in spending due to fewer vehicle replacements than in the 2023 budget as outlined in the CFP.$1,739,302 $4,455,629 $1,588,064 $2,413,600 $3,054,100 $1,170,105 $1,833,836 $4,430,540 $4,942,700 $3,134,700 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget EQUIPMENT SERVICES 2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 84EQUIPMENT SERVICES INTERNAL SERVICEFuel, 16,800 Fuel, 16,800 Equipment Replacements, 3,734,300 Equipment Replacements, 1,700,100 Equipment Rentals, 38,900 Equipment Rentals, 30,000 Admin. Services, 229,500 Admin. Services, 292,600 Travel & Training, 6,000 Travel & Training, 18,000 Utilities Expense , 21,000 Utilities Expense , 21,000 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 2023 2024 Fuel Equipment Replacements Equipment Rentals Admin. Services Travel & Training Utilities Expense 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 85INFORMATION TECHNOLOGY INTERNAL SERVICESignificant Changes:Expenditures include an increased cost in supplies for computer replacements and computer software needs.Additionally in 2024,the IT Department has fewer planned capital projects as outlined in the CFP.$2,118,407 $2,746,034 $2,513,519 $2,336,700 $2,576,000 $1,723,611 $1,991,349 $2,078,386 $4,816,800 $2,432,200 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget INFORMATION TECHNOLOGY 2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 86INFORMATION TECHNOLOGY INTERNAL SERVICEProfessional Services, 58,000 Professional Services, 66,000 Comm. Expenses, 250,600 Comm. Expenses, 260,800 Network Expenses, 180,000 Network Expenses, 180,000 Travel & Training, 6,500 Travel & Training, 6,500 Copier Leases , 64,600 Copier Leases , 64,600 Software/Hardware Maintenance, 570,600 Software/Hardware Maintenance, 581,000 Repairs & Maintenance, 32,500 Repairs & Maintenance, 32,500 Capital , 2,850,400 Capital , 380,000 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2023 2024 Professional Services Comm. Expenses Network Expenses Travel & Training Copier Leases Software/Hardware Maintenance Repairs & Maintenance Capital 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 87SELF INSURANCE INTERNAL SERVICE$5,075,424 $5,247,027 $5,641,558 $6,346,500 $7,885,600 $5,125,846 $5,354,126 $5,671,452 $6,346,500 $7,885,600 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget SELF INSURANCE 2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance FIDUCIARY & PERMANENT FUNDS 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 88 Firemen’s Pension Fund Cemetery Endowment Fund 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 89FIREMAN’S PENSION FIDUCIARY FUND$60,631 $69,149 $(85,894)$19,200 $19,200 $35,533 $33,736 $28,471 $69,400 $69,400 $(100,000) $(50,000) $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget FIREMAN'S PENSION 2024 PRELIMINARY BUDGET Revenues Expenditures Fund Balance DEBT SERVICE FUNDS 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 90 2014 LTGO Bond –Landfill Stabilization 2015 LTGO Bond –Western Urban Growth Area 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 91DEBT SERVICE FUNDS DEBT SERVICE FUNDSLANDFILL –matures in 2029 (5 Years left in 2024) WUGA –matures in 2025 (1 Year left in 2024)$1,205,910 $830,729 $807,462 $837,200 $834,700 $918,542$1,891,238$828,811$833,000$832,500 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 2020 Actual 2021 Actual 2022 Actual 2023 Amended Budget 2024 Proposed Budget COMBINED DEBT SERVICE FUNDS 2024 PRELIMINARY BUDGET Revenues Expenditures 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 92MOUNTAIN OF DEBT DEBT SERVICE FUNDS $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 200420052006200720082009201020112012201320142015201620172018201920202021202220232024202520262027202820292030203120322033203420352036203720382039GENERAL GOVERNMENT + UTILITY DEBT PRINCIPAL & INTEREST BALANCE OWING AT YEAR-END General Government Debt 2014 LTGO - Solid Waste Utility Debt 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 93DEBT SERVICE FUNDS DEBT SERVICE FUNDS $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 GENERAL GOVERNMENT + UTILITY DEBT PRINCIPAL & INTEREST BALANCE OWING AT YEAR-END General Government Debt 2014 LTGO - Solid Waste Utility Debt Prior Debt Owed 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 94CONCLUSION CONCLUSIONThe budget carefully reflects the visions, goals, and long-term planning of the Council and community. Years of conservative budgeting have laid the groundwork that has allowed the City to persevere and provide exemplary services to our community coupled with Council direction to build the City’s revenue sources to further solidify the City’s financial position. This has enabled the City to: Balance the budget for a sustainable future Move backlogged projects forward Increase safety Citywide Promote environmentally conscious spending Despite inflation, economic trends and rising labor and supply costs the budget considers affordability and maintains the City’s commitment to our community to provide essential services. 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 95CONCLUSION CONCLUSION2024 Property Tax Presentation, Public Hearing & First Reading of Ordinance. Tentative Budget Work Session –if needed 2024 Property Tax 2nd Public Hearing & Adoption of Ordinance and resolution. 2024 Budget Presentation, Public Hearing & 1st Reading of Ordinance. 2024 Budget Public Hearing, 2nd Reading of Ordinance and Adoption NOV 8 NOV 14 NOV 21 DEC 5 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 96COUNCIL DISCUSSION Staff requests consensus on any items Council would like additional information about or items that will return to Council for further consideration. Inquiry items do not require a consensus CONCLUSION 2024 BUDGET WORK SESSION –OCTOBER 24, 2023 972024 BUDGET THEME INTRODUCTIONSTRENGTHENING OUR FOUNDATION INVESTING IN CORE SERVICES City of Port Angeles | 2024 Budget