HomeMy WebLinkAboutMemo - Read Before Packet - 9/26/2017 - Memorandum From Mike Beckstead Re: Additional Information And Updates For The 2018 Budget Revisions2018 Budget Revisions
Council Work Session - September 26, 2017 Mike Beckstead - CFO
Agenda for the 2018 Budget Revisions
2
1) 2017 Revenue Update and Economic Outlook
2) Review of Proposed 2018 Reductions
3) Budget Revisions – Overview & Assumptions
4) Review of Proposed 2018 Additions
2018 Budget Objectives
3
Objective of the 2018 budget Revision Process is to:
1. Right size ongoing expenses with updated 2018 Sales Tax
forecast
2. Fund one-time expenditures using available reserves without
adding to ongoing expenditures
Macro View - 2017 Revenue
4
• During BFO, Council set aside $4.4M of General Fund reserves for Contingency
• Feb & Mar 2017 saw a year over year Sale Tax decrease
• Reviewed with Council Finance – developed contingency plan framework
• YTD Combined S&U Tax net impact on the GF of approximately $(.6M) shortfall
• YTD Sales Tax growth positive but YTD $(2.9M) short of budget
• Use Tax was planned to decline, stronger than budget – YTD $2M ahead
• Total General Fund Revenue ahead of budget by $1.6M
Implications: 2017 Revenue OK, Other Revenue Covers Shortfall….
2018 Expenditures Need to be Adjusted for Shortfall of Ongoing Revenue
Sales Tax Monthly Year over Year Change
5
Growth Slowed in Second Half 2016, Continued into 2017
Contingency Plan Framework
6
Budget Adjustment Actions
• Identify Vacancy & Fuel savings
• Utilize a portion of $4.4M GF set aside each year
− Blend between use of set aside and reductions below
− Use up to 1/3 maximum in 2017 and the remaining 2/3 in 2018
• Identify reductions in Purchased & Tech Services, Supplies to close gap
• Determine stop doing list & other savings from those programs
• Drilling Platform – stop doing list of programs
Reviewed with Council Finance Committee & Council Work session
Monitor Revenue Performance & Adjust 2017 as Needed….
Develop Specific Stop Doing List for 2018
General Fund Revenue – YTD August
7
Total General Fund Revenue Slightly Over Budget
Budget 2017 Actual 2017
Over/ (Under)
Budget
Sales & Use Tax $ 56,279 $ 55,641 $ (639)
Property Tax 21,001 21,062 61
PILOTs 6,621 6,839 219
General Govern Fees 4,920 4,408 (513)
Other 10,321 12,798 2,477
Subtotal $ 99,142 $ 100,747 $ 1,605
Unrealied Gains/Losses 0 422 422
Total $ 99,142 $ 101,169 $ 2,026
($ 000’s)
General Fund Expenses – YTD August
8
Total General Fund Expenditures $4.9M Under Budget
Budget 2017 Actual 2017
(Over)/ Under
Budget
Personnel Costs $37,664 $37,359 $305
Purchased Prof & Tech Services 21,673 20,656 1,017
Purchased Property Services 9,651 6,767 2,884
Other Purchased Services 2,206 2,156 50
Supplies 3,773 2,826 947
Capital Outlay 2,419 2,356 63
Other 2,492 2,102 390
Debt & Other Uses 8 9 (1)
Transfers 18,917 19,666 (749)
Total $98,802 $93,897 $4,906
($ 000’s)
9
General Fund Reserves
Historical General Fund
Reserve Balances
Pie Chart in order of Most to Least Constrained
$74.9M
Macro-Economic Indicators
10
Macro Indicators Remain Stable, Mostly Strong….
National:
Consumer confidence 16 year high
Small business confidence Optimistic - NFIB index at highest since 2005
Unemployment – National 4.3% July – lowest since 2007
Interest rates Historical lows – anticipated increase
Housing sales & prices 5.7% increase - May YOY (Case-Shiller price index)
Consumer price index 2.4% increase July YOY
Q2 2017 GDP 2.6% (preliminary) - consumer spending up
Average hourly earnings 2.5% increase July YOY - $26.36 (preliminary)
State / Local:
Unemployment – State 2.3% June 2017, lowest since 1976
Unemployment – Fort Collins 2.0% June 2017
Housing sales & prices – Denver 7.9% increase - May YOY (Case-Shiller price index)
Business licenses 6.8% increase July YOY
Building permits issued 2.3% decrease July YOY
Building permit valuations 15.4% increase July YOY
Development project submittals received 36.3% decrease July YOY
11
• Sales Tax Revenue Continues Moderate Growth
• GF Revenue slightly above YTD Budget
• GF and Total Expenditures under budget
• No Budget Adjustments Necessary in 2017
• 2018 Budget Revision Process will Align Ongoing Spending
With Revised 2018 Sales Tax Revenue Forecast
Summary
12
Review of Proposed
2018 Reductions
Required Adjustment to 2018 Ongoing Expenses
13
Added Property Tax Revenue & Fuel Saving Plus a $1M use of Contingency…
Need a $2.1M Reduction in the General Fund & KFCG
($ millions)
General
Fund
Ongoing
KFCG GF + KFCG
0.25% S&U
Tax Funds
TOTAL
Sales Tax Revenue ($2.8) ($0.9) ($3.7) ($0.8) ($4.5)
Municipal Court Revenue (0.5) 0.0 (0.5) 0.0 (0.5)
Revenue Shortfall ($3.3) ($0.9) ($4.2) ($0.8) ($5.0)
Property Taxes $0.7 $0.0 $0.7 $0.0 $0.7
Fuel Savings 0.4 0.0 0.4 0.0 0.4
Contingency Funding 0.6 0.4 1.0 0.0 1.0
SHORTFALL TO 2018 BUDGET ($1.6) ($0.5) ($2.1) ($0.8) ($2.9)
14
Summary of Offer Reductions
in General Fund and KFCG Fund
Proposed Reductions TOTAL
Street Maintenance Program ($900)
Dispatch and Transcription Services ($186)
Parks variable hourly healthcare ($182)
Railroad Crossing Maintenance funding elimination ($150)
Delay HVAC Replacement at EPIC and Senior Center ($132)
Long Term vacancy cut - Facilities Project Manager ($116)
Training and Vehicle Repair in Patrol ($81)
Reduce budget for utilities by 2.5% ($50)
Long Term vacancy - Bus Cleaner ($50)
Parking Lot Maintenance ($40)
Facility Paint Projects by 50% ($40)
Cancel Skillsoft Online Courses Contract in 2018 ($40)
Other (Reduction Offers less than $40k) ($367)
Total Proposed Reductions ($2,333)
Reduction Guidelines: ($ 000’s)
• Limit impact on critical svcs
• Impact non personnel service
• Must be on-going expense
• Focus on General Fund &
KFCG
15
Budget Revisions –
Overview and Assumptions
2018 Budget Revision Objectives
16
− The recommended 2018 Budget Revisions are intended to address:
• Ongoing expenditures to match current ongoing revenue estimates
• Council priorities
• Fiduciary responsibilities & fund balance
• High-priority projects and other needs not known at the time of the adoption of the
2017-18 Budget – that can be funded with one-time resources
− Criteria for New Requests:
• The request is specifically directed by the City Manager or City Council
• The request is related to a previously approved Offer where either unanticipated
revenue shortfalls or unforeseen expenses are significantly impacting the delivery of
that program or service
2017-18 2018 Revenue Updates
17
− Sales Tax: 2017 shortfall impacts the base for 2018 growth
• Retain 2018 growth forecast at 3% over the revised 2017 base
• Results in a $4.5M Citywide shortfall over the original 2018 revenue estimate
− 2018 Use Tax: $22.0M - No change from original budget
− Property Tax: Larimer County estimates the City’s portion of 2018 Property
Tax to increase $2.1M
• $700k available for 2018 Ongoing (1/3 of total due to IGA with PFA)
• $1.4M available for 2018 One-Time (This portion goes to PFA in 2019)
− Muni Court projected shortfall in 2018 of $500k due to waiving costs for
indigent defendants and case load being flat
− Other Revenue: Coming in at or above budget; no changes forecasted for
2018 except for restricted Capital Expansion Fees
Governmental Revenue Detail
18
Overall Flat Revenue vs. Original Budget….
Sales Tax Decrease Requires On-Going Expense Reduction
Overall Flat Revenue vs. Original Budget….
Sales Tax Decrease Requires On-Going Expense Reduction
2016 2017 2018
Actual Original
Budget Projection
Original
Budget
Revised
Budget
Sales Tax $109.3 $115.6 $111.2 $119.1 $114.5
Use Tax Base 14.5 14.5 14.5 14.5 14.5
Use Tax One-Time * 12.3 7.5 10.5 7.5 7.5
Property Tax 20.6 21.3 21.3 21.7 23.8
Intergovt., Shared & Grant Revenue ** 28.7 24.6 29.1 25.4 27.6
Cultural, Parks & Rec Fees 14.8 12.9 12.9 13.2 14.8
PILOT Fees 10.0 10.0 10.0 10.3 10.3
Transportation Fees 8.8 7.9 7.7 8.5 8.4
Licenses, Permits and Devel Fees 6.5 5.6 5.6 5.8 5.8
All Other Govt. Revenue *** 26.6 28.4 27.9 26.7 26.8
Subtotal Governmental Revenue $252.1 $248.3 $250.7 $252.7 $253.9
Use of Prior Year Reserves ** $21.1 $26.6 $17.7 $25.3
Total Governmental Budgeted Revenue $269.4 $277.3 $270.4 $279.2
Utility Rate Assumptions
19
Rate Changes:
2015 2016 2017 2018
Utility Actual Actual Budget Budget
L&P 2.0% 3.2% 3.45% 1.8%
Water 0.0% 0.0% 5.0% 5.0%
Wastewater 3.0% 3.0% 3.0% 3.0%
Storm Water 0.0% 0.0% 5.0% 0.0%
No Change to Anticipated 2018 Utility Rates or Revenue Projections
Cost Assumptions
20
2017 2018
General Inflation 2.3% 2.3%
Salary Pool 2.5% 2.5%
Medical and Dental Costs 12.5% 10.0%
Gas Prices (Unleaded) $2.50 $2.40
Pension Contributions No Change
GERP Supplemental Contribution $1.1M $1.1M
Budgeted Staffing at 98% No Change
Only Change to Assumptions is Reduced Average Fuel Prices for 2018
21
Review of Proposed
2018 Additions
2018 Available Funding
22
Note: Release of reserve for Woodward of $1.6 anticipated in 2017
Reserves Available for Future One-Time Uses
($ millions)
General
Fund
Ongoing
General
Fund One-
Time
KFCG
Natural
Areas
Capital
Expansion
- Comm
Parkland
Neighbor-
hood
Parkland
Transpor-
tation
Other Utilities TOTAL
Reserves - 2017-18 Budget Contingency $ 4.4 $ 4.4
Reserves - Council Priorities Set Aside 3.3 3.3
Reserves - 2016 Year-end Available Balance 5.3 6.3 13.5 2.3 1.0 6.3 - 34.8 69.5
Reserves - 2017 Supplemental Use of Reserves (2.6) (0.9) (10.8) - (0.8) - (1.0) (16.0)
Other Available or Unanticipated Revenue 0.1 2.5 1.4 0.2 4.3
Lincoln Avenue Offer Funds 0.3 0.5 0.8
Reduced Police Training Facility Design 0.3 0.3
TOTAL $ 0.1 $ 11.1 $ 5.4 $ 2.7 $ 4.8 $ 2.4 $ 6.0 $ 0.2 $ 33.8 $ 66.6
Summary of Offer Additions
23
Majority of Additions for Capital / Equipment Replacement
($ millions)
General
Fund
Ongoing
General
Fund One-
Time
KFCG
Natural
Areas
Capital
Expansion -
Comm
Parkland
Neighbor-
hood
Parkland
Transpor-
tation
Other Utilities TOTAL
Capital/Equipment Replacement $0.0 $0.2 $0.0 $1.4 $3.0 $1.2 0.0 $0.0 $0.4 $6.3
Safety & Security 0.1 0.3 0.0 0.1 0.0 0.0 0.0 0.0 0.0 $0.5
365 Transfort Service 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 $0.2
Other 0.0 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $1.2
TOTAL $0.1 $1.6 $0.0 $1.5 $3.0 $1.2 $0.0 $0.2 $0.4 $8.2
($ millions)
General
Fund
Ongoing
General
Fund One-
Time
KFCG
Natural
Areas
Capital
Expansion -
Comm
Parkland
Neighbor-
hood
Parkland
Transpor-
tation
Other Utilities TOTAL
Capital/Equipment Replacement $0.0 $0.2 $0.0 $1.4 $3.0 $1.2 0.0 $0.0 $0.4 $6.3
Safety & Security 0.1 0.3 0.0 0.1 0.0 0.0 0.0 0.0 0.0 $0.5
365 Transfort Service 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 $0.2
Other 0.0 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $1.2
TOTAL $0.1 $1.6 $0.0 $1.5 $3.0 $1.2 $0.0 $0.2 $0.4 $8.2
24
Summary of Offer Additions
Strategic Objective Budget Revision FTE Ongoing $ One-Time $ Total
Capital/Equipment Replacement
C&R 2.1 Community Park Development - East Community Park $0 $3,000,000 $3,000,000
HPG 7.8 Natural Areas - Shop Expansion 0 1,420,000 1,420,000
C&R 2.1 Neighborhood Park Development - Sidehill Park 2018 Funding 0 1,200,000 1,200,000
ENV 4.1 Microhydro Power Generator at the Water Treatment Facility 0 430,000 430,000
C&R 2.1 Parks Department Equipment Replacement 0 101,000 101,000
HPG 7.8 Lincoln Center Roof Replacement 0 100,000 100,000
Sub-Total $0 $6,251,000 $6,251,000
Safety & Security
SAFE 5.1 Encampment Cleaning Services $130,000 $0 $130,000
SAFE 5.2 Dedicated Jail Space for Municipal Offenders 115,000 0 115,000
SAFE 5.6 Arc Flash Hazard Study and Assessment 0 100,000 100,000
HPG 7.1 Cyber Security Risk and Vulnerability Management 0 100,000 100,000
SAFE 5.1 Municipal Court Interim Security Enhancement 0.5 0 40,000 40,000
HPG 7.4 215 N. Mason Overall Security Enhancements 0 29,000 29,000
Sub-Total 0.5 $245,000 $269,000 $514,000
25
Summary of Offer Additions
* This is an internal service that is funded by other departments that already have budgeted appropriations.
Strategic Objective Budget Revision FTE Ongoing $ One-Time $ Total
365 Transfort Service
HPG 7.1 Transfort Maintenance Shop Staffing (WFO)* 2.0 $140,000 $0 $140,000
TRAN 6.1 Transfort 365 Funding Shortfall for 2018 81,000 0 81,000
Sub-Total 2.0 $221,000 $0 $221,000
Other
TRAN 6.2 Parking Technology $750,000 $750,000
NLSH 1.4 Parkway Renovations 3,000 200,000 203,000
NLSH 1.1 Occupancy Study 0 78,000 78,000
HPG 7.7 City Fund Foundation 0 65,000 65,000
ECON 3.4 Business Engagement Support 0 45,000 45,000
ENV 4.4 Air Quality Program Technical Support 0 40,000 40,000
Sub-Total $3,000 $1,178,000 $1,181,000
Grand Total 2.5 $469,000 $7,698,000 $8,167,000
2018 Available Funding After Additions
26
2018 Budget Additions Use Only a Portion of Available Revenue
($ millions)
General
Fund
Ongoing
General
Fund One-
Time
KFCG
Natural
Areas
Capital
Expansion -
Comm
Parkland
Neighbor-
hood
Parkland
Transpor-
tation
Other Utilities TOTAL
Summary of Available Revenue $ 0.1 $ 11.1 $ 5.4 $ 2.7 $ 4.8 $ 2.4 $ 6.0 $ 0.2 $ 33.8 $ 66.6
Total of Proposed Additions (0.1) (1.6) 0.0 (1.5) (3.0) (1.2) 0.0 (0.2) (0.4) (8.2)
Remaining Available Reserves/Revenue $ - $ 9.4 $ 5.4 $ 1.2 $ 1.8 $ 1.2 $ 6.0 $ - $ 33.4 $ 58.4
2018 Budget Revision Summary
27
Guidance Requested:
1. What questions or feedback does City Council have on
the City Manager’s Recommended Revisions to the 2018
Budget?
2. Does City Council support the use of $1.0M of the $4.4M
contingency in the 2018 Annual Appropriations?
28
Backup Information
August Results
Front Range Comparison
29
Year over Year Growth QII 2017
• Fort Collins adj for mall 0.8%
• Fort Collins adj for audit & mall 2.4%
• Boulder 1.0%
• Loveland 6.4%
• Longmont 12.6%
• Westminster 5.2%
• Thornton 2.5%
• Arvada 5.6%
Moderate Growth continues in August and Adjusted YTD
Fort Collins – August Results
with w/out
Compared to 2016 mall mall
Sales Tax Month August 3.7% 3.7%
Sales Tax YTD August 1.6%
Sales Tax YTD (w/o Audit) 3.0% 2.8%
Use Tax YTD (7.4%)
Compared to Budget YTD
Sales Tax $(2,889k)
Use Tax 2,030k
$( 859k)
Governmental Revenue – YTD August
30
Total General Fund Revenue Slightly Over Budget
Budget 2017 Actual 2017
Over/ (Under)
Budget
Sales & Use Tax $ 91,193 $ 90,328 $ (865)
Use Tax Incentives 0 112 112
Property Taxes 23,879 24,739 861
Intergovt. Shared Revenues 7,596 8,587 991
Culture, Parks, Rec & Nat A. Fees 11,100 10,952 (148)
Payment in Lieu of Taxes 6,621 6,839 219
General Government Fees 37,016 36,128 (889)
Transportation Fees 4,375 5,348 973
Interest Revenue 1,762 1,875 113
Unrealized Invst. Gains/Losses 0 1,304 1,304
Other Miscellaneous 15,216 16,869 1,653
Total 198,757 203,082 4,325
($ 000’s)
Expenditures to Budget – YTD August
31
All Governmental Fund Expenditures Under Budget, as expected
Budget 2017 Actual 2017
(Over)/ Under
Budget
General Fund $98,802 $93,897 $4,906
Keep Fort Collins Great 20,187 16,224 3,963
Natural Areas 11,361 9,393 1,968
Cultural Services 2,510 2,183 327
Recreation 4,563 4,259 304
Transportation 15,907 15,874 33
Golf* 2,476 2,365 111
Self Insurance Fund 3,498 2,974 524
Benefits Fund 18,654 17,833 822
URA - N. College District 2,986 2,861 125
Other Funds 47,262 33,351 13,911
Fund Lapsing Total 228,208 201,215 26,993
Less Transfers & Depreciation (37,183) (32,328) (4,855)
TOTAL $191,024 $168,887 $22,138
($ 000’s)
Adjustments for Quarter Cent Support Spending
32
($ millions)
Street Maintenance Natural Areas CCIP
Original Sales Tax Budget $6.80 $6.80 $6.80
Revised Sales Tax Projection 6.54 6.54 6.54
Shortfall ($0.26) ($0.26) ($0.26)
2018 Ongoing Revenue Available 0.26 0.99
2016 Revenue Overage 0.70
Net Available/(Short) $0.00 $0.73 $0.44
General Fund Contingency for 2017-18 Budget
33
− $4.4M General Fund Reserves Assigned as Contingency
• Buffer for a potential economic downturn
• Allow time to plan changes to the expense structure
• A portion of the set aside can be used in each year
− None of the contingency used in 2017
− Proposing to use $1.0M of the contingency in 2018
− Council Finance asked about additional reductions vs. using contingency
• In process – staff working on possible additional reductions
Staff Recommends Using $1M of Contingency in 2018
Reduction Details
34
35
Summary of Offer Reductions
Department
Out
come
Offer # Budget Reduction
General
Fund
TOTAL
KFCG
TOTAL
Planning, Dev & Trans
Engineering TRAN 1.11 Railroad Crossing Maintenance funding elimination ($150,000) ($150,000)
Streets TRAN 60.1 Street Maintenance Program - Reduction of services (625,000) (275,000) (900,000)
Sub-Total ($775,000) ($275,000) ($1,050,000)
Operation Services
Operation Services HPG 19.1/19.2 Op Svcs - Reduce General Facility Maintenance ($15,000) ($15,000)
Operation Services HPG 19.1/19.2 Op Svcs - Reduce Parking Lot Maintenance (40,000) (40,000)
Operation Services HPG 19.1/19.2 Op Svcs - Reduce Facility Paint Projects by 50% (40,000) (40,000)
Operation Services HPG 19.1/19.2 Op Svcs - Reduce budget for utilities by 2.5% (50,000) (50,000)
Operation Services HPG 19.1/19.2 Op Svcs - Reduce window washing by 50% (18,000) (18,000)
Operation Services HPG 19.3/19.4 Op Svcs - Delay HVAC Replacement at EPIC and Senior
Center
(132,000) (132,000)
Operation Services HPG 19.1 Op Svcs - L/T vacancy cut - Bus Cleaner (50,000) (50,000)
Operation Services HPG 19.2 Op Svcs - L/T vacancy cut - Facilities Project Manager (116,000) (116,000)
Sub-Total ($461,000) $0 ($461,000)
Police Services
Administration SAFE 29.8 Reduction of Training Funds in the Office of the Chief ($1,000) ($1,000)
Patrol SAFE 29.10/29.15Reduction of Training and Vehicle Repair in Patrol (8,000) (72,900) (80,900)
Police Information Svcs SAFE 29.1/29.47 Reductions in Dispatch and Transcription Services (185,600) (185,600)
Investigations SAFE 29.4/29.5 Reduced Detective/Advocate Training, Reduced Vehicle Repair (18,500) (11,000) (29,500)
Sub-Total ($213,100) ($83,900) ($297,000)
36
Summary of Offer Reductions
Department Out come Offer # Budget Reduction
General
Fund
TOTAL
KFCG
TOTAL
Comm & Op Services
Cultural Services C&R 56.1 Reduction of administrative expenses ($33,400) ($33,400)
Parks C&R 15.1 Reduction of Parks variable hourly healthcare (132,710) (48,890) (181,600)
Recreation C&R 65.1/65.2 Reduction of Recreation programs and activities (32,000) (32,000)
Sub-Total ($166,110) ($80,890) ($247,000)
Sustainability Services
Social Sustainability NLSH 27.1 SSD - Reduced support to various programs ($10,000) ($10,000)
Environmental Services ENV 26.1 ESD - Reduced support to various programs (21,000) (21,000)
Environmental Services ENV 26.2 ESD - Reduce Support for the Timberline Recycling Center 0 (20,000) (20,000)
Sustainability Services Admin ENV 24.1 SSA - Reduce annual operational support for Enviro Portal Web (10,000) (10,000)
Economic Health Office ECON 25.1 EHO - Reduced support to various programs (24,000) (4,000) (28,000)
Sub-Total ($65,000) ($24,000) ($89,000)
Info & Employee Svcs
Human Resources HPG 42.1 HR - Cancel Skillsoft Online Courses Contract in 2018 ($40,000) ($40,000)
Information Technology HPG 9.1 Reduction for IT Training and Innotas Test Environment (22,000) (22,000)
Information Technology HPG 9.1 Reduce/Right Size Managed Print Services (19,000) (19,000)
Sub-Total ($81,000) $0 ($81,000)
37
Summary of Offer Reductions
Department Out come Offer # Budget Reduction
General
Fund
TOTAL
KFCG
TOTAL
Financial Services
Budget HPG 10.8 3rd Party Training and Education Services Reduction ($25,000) ($25,000)
Finance Administration HPG 11.2 Reduce Enhanced Funding for the Low Income Rebate Program (34,950) (34,950)
Sub-Total ($59,950) $0 ($59,950)
Executive Services
City Clerk's Office HPG 13.1/13.2 Reduction of licensing, administrative and election expenses ($17,600) ($17,600)
City Council HPG 22.1 Reduced discretionary expenses (1,500) (1,500)
City Manager's Office HPG 22.2 Reduced support for programs and sponsorships (20,600) (20,600)
Sub-Total ($39,700) $0 ($39,700)
Legal Services
City Attorney's Office HPG 62.1 Reduce Hourly Law Clerk ($8,000) ($8,000)
Sub-Total ($8,000) $0 ($8,000)
Municipal Court HPG None $0 $0 $0
Grand TOTAL ($1,868,860) ($463,790) ($2,332,650)
38
Summary of Offer Reductions
by Service Area in General Fund and KFCG Fund
*
* A portion of this reduction to currently budgeted ongoing expenses would be used to fund proposed
additional 2018 Offers that are ongoing in nature in the General Fund
($000's)
Service Area
Proposed
Reductions
PDT ($1,050)
Operation Services (461)
Police Services (297)
Community & Operation Services (no Ops Svcs) (247)
Sustainability Services (89)
Info & Employee Services (81)
Financial Services (60)
Executive Services (40)
Legal Services (8)
Total Proposed Reductions ($2,333)
Targeted Reduction $2,100
Reductions Greater than Target (available funding) ($233)
Expenditure Forecast & Net Cashflow
39
Municipal responsibility is to ensure spending is not greater than Council approved
appropriation. Current systems and process track spending to approved budget
Forecasting year end spending with a high degree of accuracy will require new
systems and processes given year end close process. Will need to forecast
1) Accrual of invoices received in January and February back to the prior year
2) Transfers and inter fund charge reconciliation
3) Budget carry forward of open purchase orders with enforceable contracts at year end
4) Annual Reappropriation of prior year budget for initiatives not completed in that year
Certainty exists that spending will be under budget and flows to fund balance which
is available to Council for future appropriation
40
• YTD Development Review revenue in the General Fund is $280k over budget,
this is 17% of the total General Fund revenue over budget ($1,605k on slide 5)
• Per a request from Council, staff is analyzing Development Review revenue and
expenses back to 2008
• The data will be shared with Council via a memo as soon as the analysis has
been completed
Development Review Activity
2017 Revenue YTD Projected % of
Budget YTD Actuals Budget $ Variance
General Fund $ 3,036,573 $ 3,316,238 109.21% $ 279,665
GID #1 321,695 315,606 98.11% (6,089)
Transportation 244,200 440,244 180.28% 196,044
Total $ 3,602,468 $ 4,072,088 113.04% $ 469,620
2015
Total
2016
Total
Appropriated,
Min. Policy, or
Scheduled
Available but
with some
Constraints
Available for
Nearly Any
Purpose
Assigned - Minimum 60 day Policy $ 22.7 $ 25.8 $ 25.8 $ - $ -
Non-spendable
Advances 5.2 5.1 5.1 - -
Landbank inventory 1.8 1.8 1.8 - -
Restricted
TABOR Emergency 6.4 6.7 6.7 - -
Police Programs 1.0 0.8 0.3 0.5 -
Donations & Misc 0.7 0.8 0.1 0.7 -
Economic Rebates 3.3 3.0 3.0 - -
DDA/Woodward Debt 2.3 2.3 2.3 - -
Committed
Traffic Calming 0.3 0.2 - 0.2 -
Culture & Recreation 0.2 0.3 - 0.3 -
Assigned
Prior Year Purchase Orders 3.3 4.2 4.2 - -
Manufacturing Use Tax Rebate 2.3 0.7 0.7 - -
Budgeted use of reserves 5.2 5.9 5.9 - -
Council Priorities set aside 3.3 3.3 1.5 - 1.8
Recession Contingency 4.4 4.4 - - 4.4
Camera Radar 0.8 1.1 - - 1.1
Affordable Housing Land Bank 0.2 0.3 - - 0.3
Waste Innovation 0.2 0.2 - - 0.2
Reappropriation 1.1 1.3 1.3 - -
Unassigned 7.7 6.7 1.4 - 5.3
Year End Total $ 72.4 $ 74.9 $ 60.1 $ 1.7 $ 13.1
General Fund - Year End 2016 - $74.9
41
$1.0M Police Facility Design
$500K Police CAD System
$500K Transit Bus Replacement
$500K Southridge Golf Irrigation
$750K On-street Pay Parking Meters