PRELIMINARY 2017 Unified Budget & Levies

Transcription

1 Metropolitan Council PRELIMINARY 2017 Unified Budget & Levies August 10, 2016 Council Meeting

2 Council Budget Development Operating Budget Operations Pass-through Debt Service Capital Program Authorized Projects Planned (6-year) Annual Spending 2

3 3 Timeline for Budget Development May-July Staff - Budget Development Activities Aug (before Sept1) Council - Adopt Preliminary Budget/Levies Oct Dec (before Dec 20) Council - Adopt Public Comment Drafts Council - Adopt Final Budget/Levies

4 Transitioning the Capital Program from 2016 to 2017 Today s Presentation Current 2016 Capital Program, as amended Highlight of Proposed Changes October Summary of Proposed Changes Proposed 2017 Capital Program Tables December Final 2017 Capital Program Tables 4

5 Proposed Payable 2017 Levy $83.6M $6.6 8% Parks Debt Service Transit Debt Service $ % $ % Livable Communities $ % General Purposes Dollars in millions 5

6 Recommended Levies + 1.9% Limit Non-Debt Service Levies General Purposes $ $ $ Highway Right of Way Livable Communities: - Demonstration Acct Tax Base Revitalization Total Non-Debt Levies $ $ $ % Debt Service Levies Parks $ $ Transit Total Debt Levies $ $ Total All Levies $ $ % 1.9% Change Implicit Price Deflator: 0.210% Dollars in millions 6

7 General Purposes Levy Uses - $14.5 M Community Development Operations $8.6 59% $4.5 31% Targeted Initiatives $1.0 7% $0.4 3% RA Operations Statutory Transfer to LHI Account Dollars in millions 7

8 8 Targeted Initiatives General Purpose Levy Use - $4.5 M CD - Housing Corridor Study Blue Line Extension ES Grant Program Pilots Stormwater/Green Infrastructure RA - Robert Street Building Elevators and Accessibility Enterprise Technology Infrastructure Network Redundancy/Database Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

9 9 Impact on the Taxpayer Transit Tax Communities Inside Outside $250,000 $ $0.35 $ $0.29

10 10 Change in Council s Property Tax Levies Compared to Inflation Council Levies Compared to Inflation: % 25.0% 20.0% 15.0% 10.0% 5.0% 26.0% Inflation 17.7% Council Levies 0.0%

11 Council s Property Tax Levies Compared to Other Taxing Authorities 11

12 Proposed 2017 Operating Budget Dollars in Millions $981 $1, Passthrough Debt Service OPEB Operations Proposed Increase 4% 12

13 Proposed 2017 Operating Budget Funding Sources - $1,021 B Federal Local Property Taxes $91 9% $38 4% $84 8% Other $26 3% WW Charges $265 26% Charges for Services 36% State Revenues 39% State Appr $110 11% MVST $290 28% Fares $106 10% Reserves $11 1% Dollars in millions 13

14 Operations Budget Comparison Dollars in Millions $685 $ Other Contracted Services Salaries & Benefits Proposed Increase 3.7% 14

15 15 Proposed FTEs 4,410 by Division % Environmental Services Transportation 3,370 76% 331 8% 2% Regional Administration Community Development 88

16 Regional Administration 16

17 Regional Administration $62.5 M Uses by Department Uses by Category Transfers Out Information Services $ % $4.4 7% Admin $7.1 12% Finance $ % Business Services $ % Sources Salaries & Benefits $ % Contracted Services $ % Other $6.0 10% $4.4 7% Transfers Out RA Allocation $ % $4.5 7% Other $0.8 1% Property Tax Dollars in millions Reserves $0.6 1% 17

18 18 Thrive in Motion Stewardship Workforce Development Prosperity Equity Infrastructure preservation Robert Street Building Accessibility Elevator Refurbish Livability Sustainability Network and Database Infrastructure Integration Collaboration Accountability

19 COMMUNITY DEVELOPMENT Beth Reetz, Director 19

20 20 Thrive in Motion Local Planning Assistance Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

21 21 Housing Choice Thrive in Motion Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

22 22 Thrive in Motion Climate Change Resiliency, Data & Research, Equitable Park Usage Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

23 Community Development - $16.3M General Fund and HRA Uses by Department Uses by Category 23 HRA Admin $6.3 38% Dollars in millions Div Mgmt $1.9 12% Community Development $4.7 29% RA Cost Allocation $3.4 21% Sources Property Taxes $8.9 55% Other Federal $4.9 30% FAHP Rents $2.2 13% Salaries & Benefits $8.8 54% $0.3 2% Contract Services $2.4 15% RA Cost Allocation $3.4 21% Other $1.7 10% 23

24 Community Development - $87.8M Passthrough Programs Sources Uses Federal $ % Property Taxes $ % State $ % Other $2.2 3% Metro HRA $ % Livable Comm Grants $ % Parks $ % Dollars in millions 24

25 Parks Capital Program - $344 M Parks Implementing Agencies $151 90% Land Acquisition $10 6% $6 Passthrough 4% Parks Implementing Agencies $144 81% Land Acquisition $24 14% $9 5% Equity Grants Authorized Projects - $167M Planned Projects - $177M Expand $ % Preserve $ % Land Acquisition $ % Dollars in millions Projects By Category $344M 25

26 CIP By Park Implementing Agency $21.4 $6.1 $59.7 $21.6 $71.7 $53.0 $9.4 $16.7 Unallocated Acquisition Pool, Equity Grants and Other Units of Government $49.1M $12.0 $23.4 Dollars in millions 26

27 Parks Capital Program - $344M Funding Sources State General Obligation Bonds $282 82% $62 18% Council General Obligation Bonds Dollars in millions 27

28 28 Parks Debt Service & Bonds Outstanding Dollars in Millions '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 Outstanding Debt Debt Service

29 Proposed Changes For The 2017 Capital Program No changes to existing projects Add planned projects to 2022 Regional Parks Projects Land Acquisition Grants Preliminary 2017 Capital Budget - $36 M 29

30 Environmental Services Leisa Thompson, General Manager 30

31 31 Thrive in Motion Water Efficiency Grants Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

32 32 Thrive in Motion Stormwater/Reuse Grants Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

33 33 Thrive in Motion Energy Conservation Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

34 34 Thrive in Motion Taskforce, outreach, coordination Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

35 35 Operating Budget Highlights Municipal Wastewater Charge: +5.4% FY17 = $211.9M (+$10.9M vs. 2016) +$15 per year per household Sewer Access Charge: No Change $2,485 per SAC (flat since 2014) Total FY17 transfer = $39.4M Industrial Waste Strength Charge: +7.8% Industrial Waste Permit Fees: +5.4%

36 MWC Increases Compared to NACWA Average 9.0% 8.0% 7.0% 7.3% 8.2% 6.0% 5.0% 4.0% 3.0% 2.0% 3.4% 6.0% 6.1% 5.4% 5.4% 3.0% 2.4% 6.1% 4.9% 4.4% 3.8% 3.4% 3.2% 5.5% 3.0% 4.1% 3.5% 5.4% 5.4% 5.3% 4.5% 4.0% 3.0% 5.0% 4.5% 1.0% 0.0% 0.5% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 MCES MWC NACWA Average Source is NACWA 2015 Service Charge Index (future years are projections) 36

37 Annual Retail Sewer Charge per Household Average Annual Service Charge per Household, $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $- $473 $448 $412 $381 $324 $295 $262 $273 $239 $222 $235 $255 $216 $171 $177 $186 $181 $ NACWA Index (2016 Projected) Twin Cities Region Consumer Price Index (as $ amount) Source: NACWA 2015 Cost of Clean Water Index, and 2016 MCES Rate Survey 37

38 5-Year MWC Projections MWCs % Increase 2016 $201,013, $211,932, $223,080, $234,260, $246,491, $260,288, Key Assumptions: 3% annual expense inflation PAYGO flat at $7M per year 4% annual increase in Industrial Waste rates Includes reduced revenue and increased expense due to IPIP No surpluses or deficits budgeted, except in 2017 Based on most recent Capital Improvement Program Includes some smoothing of principal repayment on new debt 38

39 Environmental Services Operations: $146M Operations $ % Dollars in millions Uses by Department Technical Support $ % $8.4 6% Admin/Other $ % Maintenance Services Municipal Wastewater Charges $ % Sources $13.0 9% Uses by Category Salaries & Benefits $ % State Appr, $2.2, 1% Contracted Services $ % Other, $1.3, 1% Reserves, $1.3, 1% $6.3 4% Industrial Waste Charges PAYGO $7.0 Chemicals, 5% Supplies $ % Utilities $ % $ % RA Allocation Other 39

40 Environmental Services Capital Program - $1.6B Interceptor System $904 71% Treatment Plants $371 29% Interceptor System $117 36% Treatment Plants $211 64% Authorized Projects - $1,275M Planned Projects - $328M Preserve $1,309 82% Expand $180 11% $114 7% Improve Dollars in millions Projects By Category $1.6B 40

41 Proposed Changes For The 2017 Capital Program Authorized Capital Program (ACP) Adjustments $163 M Increase for Existing Projects $ 16 M Add for Brooklyn Park-Champlin Interceptor Renewal $221 M Decrease for Completed Projects $ 42 M Net Decrease in Authorizations 2017 Capital Budget - $184 M Capital Improvement Program (CIP) Increases Brooklyn Park Lift Station 32 Coon Rapids-Fridley Interceptor Renewal Coon Rapids Lift Station 34 Minneapolis and St. Paul interceptors $175 M Increase in Planned Authorizations 41

42 Environmental Services Capital Program $1.6B Funding Sources Council GO Bonds & PFA Loans $1,539 96% $64 4% PAYGO Dollars in millions 42

43 43 Wastewater Outstanding Debt $2,000 $1,800 $1,600 Projected Dollars in Millions $1,400 $1,200 $1,000 $800 $ $400 $200 $0 '13 '14 '15 '16 '17 '18 '19 '20 '21 existing new (Average 2.8% Increase)

44 44 Peer Agencies * 2013 data from 2014 NACWA survey

45 45 Transportation Ed Petrie Director, Metro Transit Finance TRANSPORTATION DIVISION Heather Aagesen-Huebner Manager, MTS Administration

46 46 Thrive in Motion A-Line Opened June 11, 2016 Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

47 47 Bus Shelters Thrive in Motion Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

48 48 Thrive in Motion Transit Oriented Development Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

49 49 Thrive in Motion Cedar In-Line Station Construction Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

50 50 Thrive in Motion Asset Management & Fleet Policy Study Stewardship Prosperity Equity Livability Sustainability Integration Collaboration Accountability

51 Transportation Budget Objectives Support Implementation of Thrive MSP 2040 Regional Transportation Policy Plan Thrive Lens Grow ridership & meet needs across region Construct a balance transit budget over four years Prioritize structural solutions mitigate structural gaps over time Minimize impact on Council levies Maintain reserves at policy levels 51

52 Mitigating Revenue and Expense Volatility Motor Vehicle Sales Tax Budget 95% of current State Forecast and; Actual MVST receipts above 95% from prior year Fuel Price Hedging Budget certainty for 90% of projected fuel consumption over next 24 months Operating Fund Reserve Targets Address volatility in other revenues and expenses Regional revenue allocation procedure 52

53 Budget Assumptions No regional fare increase Regional fare policy review to continue Regional ridership remains stable Metro Mobility ridership growth 8% Operations Revenues allocated based on Regional Allocation Model Maintain 2016 service levels Light Rail and Commuter Rail Overhaul Program Fund Travel Behavior Inventory Study and development of Transit Asset Management Plan Green Line Extension FFGA Application 53

54 Regional Ridership In Millions '13 Actual 94.3 '14 Actual Actual 98.7 '16 Budget '17 Budget MT MTS STP U of M

55 Transportation: $468.0M Transportation Operations - $545 M Dollars in millions Uses by Department Metropolitan Transportation Services $107 20% Metro Transit $438 80% State Appr $95 17% MVST $256 47% Sources Fares $106 20% $29 5% $38 7% Uses by Category Salaries & Benefits $319 59% Federal Local Other, $6, 1% Reserves, $15, 3% $22 4% $53 10% $38 7% Transit Programs $84 15% $29 5% Other Contracted Svcs Fuel & Supplies RA Alloc 55

56 2017 Metro Transit Operations $438 M State Appr $34 8% CTIB\ Local $36 8% Reserves, $15 3% $22 Federal 5% Blue Line $37 9% Green Line $39 9% North Star $19 4% MVST $231 53% Fares $99 22% Bus $343 78% Sources Other $3 1% Uses Dollars in millions 56

57 Metropolitan Transportation Services Operations $107 M CTIB, $2, 2% Federal $6 6% Reserves, $3, 3% Fares $10 9% Planning $8 7% Regular Route $21 20% $7 7% Transit Link State Appr $61 57% MVST $25 23% Metro Mobility $71 66% Sources Uses Dollars in millions 57

58 58 MTS Passthrough Program - $33.4 M MVTA and SWT will receive Regionally Allocated MVST Maple Grove and Plymouth continue to use reserves over regional targets

59 Transportation Capital Program $6.7 B Facilities $199 7% Fleet $329 11% $103 4% Other Facilities $121 3% Fleet $498 13% Other $86 2% Transitways $2,198 78% Transitways $3,132 82% Authorized Projects - $2.8B Planned Projects - $3.9B Dollars in millions 59

60 Transportation Capital Program By Category Preserve $940 14% Expand $395 6% Expand $395 26% Transitways $5,330 80% Preserve $940 63% Transitways $163 11% Total - $6.7B W\O New Starts Rail - $1.5B Dollars in millions 60

61 Transportation Capital Program $6.7B Funding Sources State Bonds $525 8% Federal $3,576 54% $1,488 22% Counties Transit Improvement Board $501 7% $575 9% Local/Other Council Bonds Dollars in millions 61

62 Debt Service & Bonds Outstanding Dollars in Millions '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 Outstanding Debt Debt Service 62

63 Proposed Changes For The 2017 Capital Program Add planned projects to 2022 Preservation of Fleet and Facilities Building Major Transitways CMAQ and Suburban Transit Provider Projects Metro Mobility fleet expansion needs are under review Preliminary 2017 Capital Budget - $600 M 63

64 64 Council Action on August 25 Adopt Preliminary Operating Budget Set Maximum Property Tax Levy

65 Preliminary Operating Budget & Levies Operating Budget $1.02 B Property Tax Levies - $83.6 M OPEB $13 1% Passthrough $123 12% Debt Service $174 17% General Purposes $ % LCDA $ % TBRA $5.0 6% Parks $6.5 8% Operations $711 70% Transit $ % Dollars in millions 65