FY 2013 End of Year Report

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1 FY 2013 End of Year Report Photo Courtesy ISHS

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3 Table of Contents Mayor s Recommendation Letter... 1 Executive Summary... 3 Fund Summaries... 6 General Fund... 6 Departmental Analysis Arts and History City Council Finance and Administration Fire Human Resources Information Technology Legal Library Office of the Mayor Parks and Recreation Planning and Development Services Police Public Works Capital Fund Enterprise Funds Other Funds Appendices Appendix A: Budget Workshop Initiatives Appendix B: End of Year Appropriation Resolution and Exhibit Appendix C: FY 2013 Rebudget and Encumbrance Resolution and Exhibit Appendix D: Authorized Staffing Levels Appendix E: Impact Fee Summary Report

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5 MAYOR S RECOMMENDATION Mayor s Recommendation Letter If any recent year deserved to be called historic, it was 2013 in the City of Trees. The commemoration of Boise s sesquicentennial our 150 th anniversary as a city exceeded expectations by every measure. From the city wide Sesqui Party in July and the year long Walk 150 program to the wildly successful series of programs and events hosted by the Sesqui Shop, enthusiastic Boiseans joined in great numbers to celebrate our city s past and chart its future. That future looks bright thanks to our city s resiliency during the economic downturn and our strong resurgence during the past year. For city government, 2013 meant moving forward on a host of important projects, many of which had been deferred or delayed by the recession. Among those accomplishments: Construction cranes rose once again across the downtown skyline as the long awaited 8 th and Main building neared completion, the Simplot JUMP project began to rise at the foot of the Connector, and Boise prepared to welcome its first Trader Joe s. The Boise Airport, named one of the nation s best by Travel + Leisure magazine, got even better with the opening of its new air traffic control tower and its expanded parking garage. The City made perhaps the most significant Foothills purchase yet by acquiring 260 acres of pristine open space commonly called the Hillside to Hollow property, providing incredible new hiking opportunities. Boise received a tremendous gift with the donation of Quail Hollow Golf Course, expanding the City s ability to provide exceptional recreation opportunities to the community for years to come. Marianne Williams Park became the newest addition to Boise s Ribbon of Jewels system; Terry Day Park opened to provide a great new amenity for the Bench; and the City announced the purchase of the former Franklin school site for a future park. The City joined with the Ada County Highway District in the dedication of Whitewater Park Boulevard, a long awaited north south connection that will help jumpstart the economic revitalization of the western portion of downtown. Boise, Ada County, and other local jurisdictions signed a historic emergency medical services agreement that will provide patients with the highest standard of care while saving taxpayer dollars. Public Works won federal approval for Dixie Drain, an innovative phosphorous removal project, and made significant progress on water quality efforts at the West Boise and Lander Street facilities that continue to make Boise a leader in environmental responsibility. City of Boise Annual Financial Report Fiscal Year

6 MAYOR S RECOMMENDATION The rates of most serious crimes continued their multi year decline, thanks in large part to the Boise Police Department s commitment to community policing and strong cooperation from businesses, neighborhoods, and families. Our city s ability to continue enhancing our prosperity and livability was dealt a setback in November, when a strong (60 percent plus) voted in favor of two bond measures for new parks, open space, and fire facilities but not the 67 percent required for passage. Our task in the coming year will be to chart an alternative course that ensures we are able to continue making the infrastructure investments that are so essential to our future. As always, we must accomplish all of this within the four corners of a prudent, structurally balanced budget that provides flexibility for unexpected contingencies while supporting high quality direct services to our citizens. Our departments commitment to these principles has brought the City of Boise to the end of Fiscal Year 2013, the final year of the two year budget cycle, in solid fiscal condition an excellent foundation from which to act on the key decisions and critical challenges ahead. The Executive Summary that follows provides an overview and department level summaries of the City s financial performance in Fiscal Year After funding the deferred capital, equipment, and one time expenses approved by the City Council during the June 2013 Budget Workshop (Appendix A), and completing end of year accounting reservations and designations, the Department of Finance and Administration estimates that the City s General Fund had an undesignated fund balance of $3.4 million. I am recommending that this balance be transferred to the Capital Contingency Account until the Council has determined a post bond election capital strategy and an updated framework for the Fiscal Year 2015 budget update process. I couldn t be more optimistic. Our businesses and citizens are fully engaged in helping to build a bright tomorrow; our City Council, departments, and employees constantly strive to provide innovative solutions and outstanding customer service; and our great city continues to demonstrate the creativity and commitment so essential to our livability. Here s to a magnificent start to Boise s next 150 years. Respectfully submitted, David H. Bieter Mayor 2 City of Boise 150 North Capitol Boulevard Boise Idaho

7 EXECUTIVE SUMMARY Executive Summary General Fund Fiscal Year 2013 was the second year of the City s Biennial Budget. Positive effects from the economic recovery were being recognized as the City s General Fund ended the year on a solid footing, with a net operating surplus of $3.3 million or 1.9% of total expenditures. Nearly half (48.5%) of the operating surplus is attributable to increases in Development Fee and Sales Tax revenue. We anticipated several revenue categories, including Sales Tax and Development Fees, to exceed budget expectations by significant amounts. To maintain a conservative fiscal approach, the City has elected to treat these increases as one time in nature. This prevents building base expenditure increases, until the revenues have stabilized over several periods. The fund began the year with $8.8 million in prior year resources. Combining the prior year resources of $8.8 million and the operating surplus of $3.3 million and deducting Budget Workshop Initiatives of $7.7 million and the net changes in fund reservations of approximately $0.3 million, the General Fund end of year net unallocated available resources total $4,012,619 or 2.2% of total FY 2013 expenditures. The following summarizes the major components of the General Fund performance: The General Fund began the year with $8.8 million in prior year resources, $5.2 million more than the FY 2012 prior year resource amount of $3.6 million. This is typical for the second year of the biennium. Revenues totaled $182 million, which is $6.1 million (3.5%) more than budgeted and $10.0 million (5.8%) more than FY 2012 actual revenues. Expenditures totaled $179 million, which is $6.0 million (3.3%) less than budgeted and $11.8 million (7.1%) more than FY 2012 actual expenditures. It should be noted that, in this report, M&O includes many items typically outside of ordinary M&O accounts including transfers out, interest and other miscellaneous expenditures. The net of operating revenues and expenses ended in a surplus of $3.3 million or 1.9% of total expenditures. General Fund FY 2012 Actual FY 2013 Actual FY 2013 Revised Budget FY 2013 Actual to Revised Budget FY 2013 Actual to FY 2012 Actual Total Revenues $ 172,122,323 $ 182,086,639 $ 176,009,314 $ 6,077,325 $ 9,964,316 Total Expenditures 166,946, ,761, ,806,958 (6,045,106) 11,815,514 Net General Fund Operations $ 5,175,986 $ 3,324,788 $ (8,797,644) $ 12,122,431 $ (1,851,199) Prior Year Resources 8,797,644 Budget Workshop Initiatives (7,730,930) Subtotal: 4,391,501 Net Change in Reservations (378,882) Available Resources $ 4,012,619 City of Boise Annual Financial Report Fiscal Year

8 EXECUTIVE SUMMARY Capital Projects Fund The following summarizes the major components of the Capital Fund performance: Capital Fund revenues amounted to $16.4 million, which was $6.7 million more than anticipated. This difference is the net result of less than expected interest, donations and grant amounts ($2.8 million) offset by a larger than budgeted transfer in from the General Fund. This larger transfer from the General Fund was due to a net transfer of $863,295 of Cash Flow Reserve for the City Hall Code Update Project as well as the use of FY 2012 end of year funds for the Capital Contingency. Capital Fund expenditures of $13.7 million were significantly less than the budgeted amount of $24.4 million. Of the $10.7 million difference, $9.2 million will be rolled into FY 2014, including $2.2 million in encumbrances, for continuation of approved projects. The remaining $1.5 million will fall to the bottom line. With the changes in ERP, detailed reporting on specific capital projects was not currently available. A capital status report update is currently being designed and will be included in future end of year reports. Capital Fund FY 2012 Actual FY 2013 Actual FY 2013 Revised Budget FY 2013 Actual to Revised Budget FY 2013 Actual to FY 2012 Actual Total Revenues $ 10,798,684 $ 16,415,693 $ 9,751,442 $ 6,664,251 $ 5,617,010 Total Expenditures 14,424,768 13,687,328 24,427,809 (10,740,481) (737,440) Net Capital Fund Operations $ (3,626,084) $ 2,728,365 $ (14,676,367) $ 17,404,732 $ 6,354,450 Net Change in Reservations (2,727,365) Available Resources $ 1,000 FY 2013 figures in this report reflect year end results but are not yet audited by the City s independent auditors, and are subject to change. 4 City of Boise 150 North Capitol Boulevard Boise Idaho

9 EXECUTIVE SUMMARY Economic Summary Commencing at the start of FY 2009, the Budget Office began reporting on key economic indicators and related financial information on a monthly basis. Starting in FY 2013, these reports were made on a quarterly basis. All economic indicator reports are located on the City s website at Labor Figures provided by the Idaho Department of Labor indicate the labor market has continued to improve. At the beginning of FY 2013, the Boise Metropolitan Statistical Area ( MSA ) had an unadjusted unemployment rate of 6.5% and a labor force of approximately 284,624 willing workers. In the following twelve months, the unadjusted unemployment rate decreased by 60 basis points to 5.9% and the labor force increased 4,773 willing workers to approximately 289,397. Development Construction activity in FY 2013 showed positive economic growth indications, both in the number of permits issued and in total valuation. In FY 2013, 16,983 permits were issued 11.7% more than the 15,175 issued in FY Total permit valuation increased from $315 million to $340 million during the same period a 7.9% increase. Further analysis concerning construction activity is addressed later in the General Fund revenues section of this report. Transportation Airport passenger traffic at the Boise Airport is an important economic indicator. During FY 2013, passenger volumes declined by 1.8% when compared to FY This decrease in passenger traffic, however, is much smaller than the 5.1% decline from FY 2011 to FY Some new flights were added in FY 2013, such as the new Allegiant Airlines nonstop flight to Honolulu, HI. Additional flights are announced for FY 2014 with carriers such as Alaska Airlines. City of Boise Annual Financial Report Fiscal Year

10 FUND SUMMARIES Fund Summaries The following analysis provides a closer review of the City s primary funds General, Capital, Airport, Sewer, Solid Waste, Housing, and Risk Management. The review briefly describes the most significant differences from last fiscal year and from the revised budget. Because budget appropriation is approved at the department level within the General Fund, department financial summaries are included in the General Fund section. General Fund Showing continued signs of improvement, total actual revenues exceeded the budgeted amount by $6.1 million or 3.5%, and prior year s revenue by $10.0 million or 5.8%. Stronger construction activity affecting development fee revenues, a few extraordinary revenue items, and departmental fiscal control were the contributing factors for a positive end of year. In the chart below, the Other Revenue category includes Traffic Fines, Parking, Franchise Fees, Contingency and Donations, many of which are addressed in more detail later. Many departments maintained strong fiscal control throughout the year enabling the Mayor and City Council to begin resolution of many long term capital project needs Year End General Fund Year over Year Actual/Budget Actual Variance Budget Variance Over/(Under) 2013 Over/(Under) Revenues Property Tax Revenue $ 108,732,929 $ 114,095,110 $ 5,362,181 $ 113,873,181 $ 221,929 Sales Tax Revenue 12,396,634 13,251, ,714 12,026,889 1,224,459 Development Fees 5,882,277 6,638, ,350 4,656,134 1,982,493 External User Fees 17,545,893 18,243, ,776 18,118, ,738 Other Revenue 27,564,590 29,857,885 2,293,295 27,334,179 2,523,706 Total Revenue $ 172,122,323 $ 182,086,639 $ 9,964,316 $ 176,009,314 $ 6,077,325 Expenditures Personnel Services $ 117,096,170 $ 118,871,078 $ 1,774,908 $ 123,298,762 $ (4,427,684) Maintenance & Operations 47,397,862 55,933,043 8,535,181 55,594, ,523 Major Equipment 2,452,305 3,957,731 1,505,426 5,913,676 (1,955,945) Total Expenditures $ 166,946,337 $ 178,761,851 $ 11,815,514 $ 184,806,958 $ (6,045,106) Net Fund Source/(Use) $ 5,175,986 $ 3,324,788 $ (1,851,199) $ (8,797,644) $ 12,122,431 Changes in Designations & Reservations (2,698,109) (378,882) 2,319,227 - (378,882) Prior Year's Spendable Resources * 3,516,078 8,797,644 5,281,566 8,797,644 - Budget Workshop Initiatives - (7,730,930) (7,730,930) - (7,730,930) Net Available Resources $ 5,993,955 $ 4,012,619 $ (1,981,336) $ - $ 4,012,619 Total Resources include current year revenues and prior years' reserves and designations allocated for use during the fiscal year. * Prior Year's Spendable Resources are net revenues from FY 2012 used to support approved and budgeted expenditures in FY City of Boise 150 North Capitol Boulevard Boise Idaho

11 GENERAL FUND General Fund Revenues Total General Fund revenues during FY 2013 amounted to $182.1 million. This was nearly $6.1 million or 3.5% over the budgeted amount of $176.0 million. The majority of revenue categories ended the year very close to budget except for Development Fees, Sales Tax, Liquor Tax, Franchise Fees, and Fines & Forfeitures. Several revenue categories including Sales Tax and Development Fees we anticipated to exceed budget expectations by significant amounts. To maintain a conservative fiscal approach though, the City has elected to treat these increases as one time in nature. This prevents building base expenditure increases until the revenues have stabilized over several periods. Property tax revenue totaled $114.0 million, $221,900 (0.2%) above the budgeted amount. Consistent with prior years, the City receives outstanding delinquent property taxes, which drives the total property taxes received above the budgeted amount. Sales tax revenue amounted to approximately $13.2 million or $1,224,500 (10.2%) over the budgeted amount. This represents a 6.9% increase ($854,700) compared to FY This is a strong indicator of an improving local economy. Liquor tax revenues were budgeted at $2.9 million assuming flat sales statewide. Actual revenues disbursed to the City totaled $3.3 million or $333,606 (11.4%) over budget. The overage is primarily due to increased overall liquor sales combined with higher proportionate sales within City limits. Total franchise fee revenue was $138,670 (2.6%) less than the budgeted amount of $5.3 million and $68,836 (1.3%) above FY Both Natural Gas and Garbage revenue fell short of expectations. The Idaho Public Utilities Commission approved a rate decrease for Intermountain Gas in October 2013 of 7.1%, but the budget was not adjusted because the City anticipated ending the year in a positive financial condition. Franchise Fees 2012 Actual 2013 Actual 2013 Budget Variance Over/(Under) % of Budget Collected/ Expended Natural Gas $ 1,698,401 $ 1,707,977 $ 2,014,722 $ (306,745) 85% Garbage 1,143,929 1,128,133 1,194,691 (66,558) 94% Cable Television 1,160,773 1,156,415 1,100,049 56, % Water 1,124,306 1,203,721 1,025, , % Total Franchise Fees $ 5,127,409 $ 5,196,245 $ 5,334,915 $ (138,670) 97% o Natural Gas: The total amount anticipated for natural gas franchise fee revenue was $2.0 million. The total received was $1.7 million or $306,745 (15.2%) under budget, based primarily on the rate reduction that occurred in October of o Garbage: Solid Waste franchise fees ended the year under budget by $66,558 (5.6%) and below FY 2012 by 15,797 (1.4%). City of Boise Annual Financial Report Fiscal Year

12 FUND SUMMARIES o o Cable: Total cable franchise feee revenue ended the yearr $56,366 (3. 8%) above budget and $ 13,580 (1.2%) above FY This could indicate stabilization from customers transitioning between cable service, satellite service, and internet based entertainment. Water: Water franchise fee revenue finishedd $178,268 (17.4%) over budget. This could be due in part to the prematuree closure of irrigation services in FY 2013 because of low reservoir levels and increased residential economic activity. External user fees came in at $18.2 million, $124,7388 (0.7%) over the budget. External user fees include Fire and Police service contracts, Park services utilization fees, Library fees, and other miscellaneous fees. Fine and forfeiture revenue amounted to $3.0 million $544,308 (15.2%) below budget and $219,247 (6.7%) below FY This was the result of a $307,3577 (17.1%) budgetary shortfall in traffic fines and $179,7477 (12.5%) in parking fines. Although the budget for FY 2013 was adjusted down by $300,0000 when compared to FY 2012, to account for the downward trend, a more aggressive budget approach may be necessary to fully capture the revenue decline. Total development revenues amounted to $6.6 million, approximately $2.0 million (42.6%) over budget, indicating a vastly improving economy. The increase is shared between residential and commercial construction growth. o According to the September 2013 Construction Report, the number of new single family residence units showed a slight decrease, down 2% (11 units) during the fiscal year when compared to FY Multi family construction experienced a 23% decrease in activity in FY 2013 as compared to FY 2012 with 38 fewer units, but November of 2013 (FY 2014) saw this number rebound dramatically with 92 additional units. Additionally, the value of commercial construction postedd an 8% increase during FY City of Boise 150 North Capitol Boulevard Boise Idaho

13 GENERAL FUND General Fund Expenditures At fiscal year end, General Fund expenditures totaled $178,761,851 and were $6.0 million (3.3%) under budget. This was $11.8 million (7.1%) more than the amount expended in FY 2012 because of purchases that were postponed from FY 2012 into FY The budgetary savings occurred primarily in personnel ($4,427,700), contract services ($1,033,000), professional services ($2,261,800), and un used contingencies. EMT will be evaluating the budgetary savings to determine whether a long term relationship exists or if these savings were a result of volatility from the ERP transition. General Fund End of Year Budget Of the $6.0 million in total budget savings, City Council approved $5,493,767 in rebudget reservation and/or designations. The rebudgets consist of the following: $4,433,043 in net rebudget requests for operating projects or purchases initiated but not yet completed, and for business plan continuation $1,060,724 in encumbrances to account for contractual obligations that could not be completed within the fiscal year Summary of General Fund Equity The end of FY 2013 leaves the General Fund equity total at $31.8 million: $18.7 designated for specific purposes, $4.0 million undesignated and available for Mayor and Council discretionary spending, and $9.1 million in Cash Flow Reserve. The General Fund Cash Flow Reserve amounts to 5.0% or 18 days of total FY 2014 budgeted expenditures of $182.2 million. Undesignated, 4,012,619, 12% General Fund Equity Total $31,796,489 Cash Flow Reserve, 9,111,116, 29% Designated, 18,672,754, 59% City of Boise Annual Financial Report Fiscal Year

14 FUND SUMMARIES General Fund Department Summaries The following financial analysis provides a closer review of each department funded from the General Fund. The review briefly describes the significant changes from last fiscal year and from the revised budget. Earlier this year, City Council and the Executive Management Team (EMT) looked at a ten year historical analysis and discussed strategies for staying inside both Personnel and Maintenance & Operations (M&O) budget parameters. In some departments, readers may notice the backfilling of Personnel expenditure overages with M&O and equipment expense savings. Department M&O and equipment savings are usually achieved by underfunding needed equipment purchases and maintenance. This will be an ongoing discussion as we develop the FY 2015 Budget. In summary, total General Fund departmental operating revenue exceeded the budget by $1,850,200 (1.1%). Expenditure savings were experienced in all three major categories including: personnel savings of $2,015,000 (1.7%), M&O savings (before encumbrances and rebudgets) of $6,881,200 (17.3%), and major equipment savings (before encumbrances and rebudgets) of $1,904,100 (32.5%). After encumbrances and rebudgets, the operating departments recognized $7.2 million in net income. A portion of these funds was planned to be utilized during the FY 2014 budget workshop by the Mayor and City Council for future purposes. These figures exclude Intergovernmental revenues and expenses, such as property taxes, which were discussed earlier in this report. Departmental Analysis At the close of each fiscal year, the Department of Finance and Administration (DFA) reviews each department s financial status to determine department effected savings. The following department summaries represent departmental overages or shortages, both before and after encumbrances and rebudgets. Major Equipment Note In 2013, Major Equipment was budgeted in General Fund operations within each department. In FY 2014, it was moved into the Capital Fund. During the encumbrance and rebudget process the encumbrance budget was re loaded into the Capital Fund without removing it from the General Fund. Budget adjustments were made within the encumbrance and rebudget categories for each affected department, to account for the disparity. 10 City of Boise 150 North Capitol Boulevard Boise Idaho

15 GENERAL FUND Arts and History Actual vs Budget Variance Arts and History Actual Actual Budget $ % Revenue/Resources General Fund Contribution 820,265 1,014,669 1,014,669 (0) 0.0% Operating Revenue 27,766 67,116 25,500 41, % Subtotal 848,031 1,081,785 1,040,169 41, % Expenses Personnel Services 425, , ,556 (5,697) -1.1% Maintenance & Operations 252, , ,613 (54,737) -10.3% Major Equipment % Subtotal 678, ,949 1,040,169 (60,220) -5.8% Departmental Unused/(Needed) Appropriation $ 169,334 $ 101,836 $ - $ 101, % Encumbrances 58,598 13, ,397 Net Grants/Dedicated Funding 54,921 5, ,500 Rebudgets 33,569 80, ,934 Departmental Net Unused/(Needed) Appropriation $ 22,246 $ 2,005 $ - $ 2,006 Arts and History ended the year with unused appropriation of $101,836 (utilizing 90.0% of G.F. Contribution) before adjustments and $2,006 (utilizing 99.8% of G.F. Contribution) after adjustments. The unused appropriation was attributable to the Boise 150 celebration funding provided to Arts and History in preparation for the celebration year and was rebudgeted into FY 2014 to close out the program. Compared to FY 2012, departmental operating revenue increased by $39,351 (141.7%) primarily from miscellaneous revenue derived from the Boise 150 retail sales. The Boise 150 also caused expense increases of $301,253 (44.4%) for a net planned increased use of General Fund Contribution of $261,902. City of Boise Annual Financial Report Fiscal Year

16 FUND SUMMARIES City Council Actual vs Budget Variance City Council Actual Actual Budget $ % Revenue/Resources General Fund Contribution 460, , , % Operating Revenue 145, , ,664 (0) 0.0% Subtotal 605, , , % Expenses Personnel Services 503, , ,838 16, % Maintenance & Operations 32,689 45,847 83,386 (37,539) -45.0% Major Equipment % Subtotal 536, , ,224 (21,414) -3.6% Departmental Unused/(Needed) Appropriation $ 69,662 $ 21,414 $ - $ 21, % Encumbrances 8, ,419 Net Grants/Dedicated Funding Rebudgets 69, Departmental Net Unused/(Needed) Appropriation $ - $ 12,995 $ - $ 12,995 City Council ended the year with unused appropriation of $21,414 (utilizing 95.5% of G.F. Contribution) before adjustments and $12,995 (utilizing 97.3% of G.F. Contribution) after adjustments. Expenditure savings in professional services was the primary contributor to the unused appropriation. Compared to FY 2012, the department experienced a decrease in operating revenue of $20,625 (14.2%) and an increase in expenses of $44,611 (8.3%) for a net increase in departmental resource use of $65,236 funded by the General Fund Contribution. 12 City of Boise 150 North Capitol Boulevard Boise Idaho

17 GENERAL FUND Finance and Administration Actual vs Budget Variance Finance and Administration Actual Actual Budget $ % Revenue/Resources General Fund Contribution 534, , , % Operating Revenue 5,112,093 5,306,388 5,419,057 (112,669) -2.1% Subtotal 5,646,535 5,917,516 6,030,185 (112,669) -1.9% Expenses Personnel Services 3,887,919 3,814,778 3,890,710 (75,932) -2.0% Maintenance & Operations 1,448,964 1,723,330 1,923,521 (200,191) -10.4% Major Equipment , ,954 (43,102) -20.0% Subtotal 5,336,916 5,710,960 6,030,185 (319,225) -5.3% Departmental Unused/(Needed) Appropriation $ 309,619 $ 206,556 $ - $ 206, % Encumbrances 60,754 18, ,547 Net Grants/Dedicated Funding 18, Rebudgets 76,012 50,000 (30,000) 80,000 Departmental Net Unused/(Needed) Appropriation $ 154,263 $ 138,009 $ 30,000 $ 108,009 DFA ended the year with unused appropriation of $206,556 (utilizing 66.2% of G.F. Contribution) before adjustments and $108,009 (utilizing 82.3% of G.F. Contribution) after adjustments. Revenues declined as a result of lower parking fines because of downtown construction. These declines were more than offset by expenditure savings. The expenditure savings was a result of vacancy savings in Personnel and professional services in M&O. As previously noted, Major Equipment ($30,000) was moved from General Fund to the Capital Fund. Compared to FY 2012, the department experienced an increase in operating revenue of $194,295 (3.8%) and an increase in expenses of $374,044 (7.0%) for a net increase in departmental resource use of $179,749, funded by the General Fund Contribution. City of Boise Annual Financial Report Fiscal Year

18 FUND SUMMARIES Fire Actual vs Budget Variance Fire Actual Actual Budget $ % Revenue/Resources General Fund Contribution 35,008,478 36,919,917 36,919,917 (0) 0.0% Operating Revenue 7,616,993 8,341,188 8,150, , % Subtotal 42,625,471 45,261,105 45,070, , % Expenses Personnel Services 36,994,529 38,290,429 38,609,277 (318,849) -0.8% Maintenance & Operations 4,352,178 4,189,007 4,661,860 (472,853) -10.1% Major Equipment 650,086 1,068,653 1,799,595 (730,942) -40.6% Subtotal 41,996,792 43,548,089 45,070,732 (1,522,644) -3.4% Departmental Unused/(Needed) Appropriation $ 628,679 $ 1,713,016 $ - $ 1,713, % Encumbrances 58, ,817 (612,646) 828,463 Net Grants/Dedicated Funding 634, Rebudgets 0 195,396 (197,777) 393,173 Departmental Net Unused/(Needed) Appropriation $ (63,699) $ 1,301,803 $ 810,423 $ 491,380 Fire ended the year with unused appropriation of $1,713,016 (utilizing 95.4% of G.F. Contribution) before adjustments and $491,380 (utilizing 98.7% of G.F. Contribution) after adjustments. Operating revenues exceeded budget by $190,373 primarily from increased development plan checks. Expenditure savings were experienced in all three major categories. Personnel expenditures savings were a result of plans within Fire to minimize the effect of constant staffing increases. The primary contributors to M&O savings were minor equipment ($245,387) and miscellaneous contracted services ($108,256). As previously noted, Major Equipment ($810,423) was moved from General Fund to the Capital Fund. When compared to FY 2012, the department experienced an increase in operating revenue of $724,195 (9.5%) with an increase in expenses of $1,551,297 (3.7%) for a net increase in departmental resource use of $827,101 funded by the General Fund Contribution. The revenue increase is due to increased grant revenues (AFG radios and IMT Trailer) along with increased fire service contract revenues (Whitney, NACFR, Airport, VA and GSA). The year over year expense increase is due to a combination of personnel and equipment costs. Personnel experienced an increase caused by union contract costs associated with the union health trust contribution, while equipment increases were attributed predominately to the timing of minor and auto equipment purchases. 14 City of Boise 150 North Capitol Boulevard Boise Idaho

19 GENERAL FUND Human Resources Actual vs Budget Variance Human Resources Actual Actual Budget $ % Revenue/Resources General Fund Contribution 1,128,373 1,091,743 1,091, % Operating Revenue 379, , ,794 (9,522) -2.2% Subtotal 1,507,647 1,516,015 1,525,537 (9,522) -0.6% Expenses Personnel Services 1,110,343 1,050,816 1,045,394 5, % Maintenance & Operations 303, , ,143 (109,707) -22.8% Major Equipment 5, % Subtotal 1,418,624 1,421,251 1,525,537 (104,286) -6.8% Departmental Unused/(Needed) Appropriation $ 89,023 $ 94,764 $ - $ 94, % Encumbrances 51, Net Grants/Dedicated Funding (2,757) Rebudgets 39,814 32, ,050 Departmental Net Unused/(Needed) Appropriation $ (1) $ 62,214 $ - $ 62,214 Human Resources ended the year with unused appropriation of $94,764 (utilizing 91.3% of G.F. Contribution) before adjustments and $62,214 (utilizing 94.3% of G.F. Contribution) after adjustments. The majority of the savings was in M&O and is attributable to professional services, a portion of which was rebudgeted. Compared to FY 2012, the department experienced an increase in operating revenue of $44,998 (11.9%) with a corresponding increase in expenses of $2,627 (0.2%) for a net decrease in departmental resource use of $42,371. City of Boise Annual Financial Report Fiscal Year

20 FUND SUMMARIES Information Technology Actual vs Budget Variance Information Technology Actual Actual Budget $ % Revenue/Resources General Fund Contribution 1,459,356 1,972,128 1,972, % Operating Revenue 4,991,521 4,826,029 4,841,700 (15,672) -0.3% Subtotal 6,450,877 6,798,157 6,813,828 (15,671) -0.2% Expenses Personnel Services 4,611,819 4,634,741 4,537,442 97, % Maintenance & Operations 1,271,218 1,464,827 1,789,647 (324,820) -18.1% Major Equipment 78, , ,739 (298,651) -61.4% Subtotal 5,961,130 6,287,656 6,813,828 (526,172) -7.7% Departmental Unused/(Needed) Appropriation $ 489,747 $ 510,501 $ - $ 510, % Encumbrances 72, ,417 (150,616) 303,033 Net Grants/Dedicated Funding 25, Rebudgets 370, , ,290 Departmental Net Unused/(Needed) Appropriation $ 22,178 $ 250,794 $ 150,616 $ 100,178 IT ended the year with unused appropriation of $510,501 (utilizing 74.1% of G.F. Contribution) before adjustments and under budget by $100,178 (utilizing 94.9% of G.F. Contribution) after adjustments. The majority of the budgetary savings occurred in M&O and equipment accounts. In M&O, the savings was attributable to system maintenance ($44,226), minor equipment accounts ($68,616), professional services ($136,651) and various other accounts. As previously noted, Major Equipment ($150,616) was moved from General Fund to the Capital Fund. Compared to FY 2012, the department experienced a decrease in operating revenue of $165,493 (3.3%) combined with an expense increase of $326,526 (5.5%) for a total increase in departmental resource use of $492,018 which was funded by the General Fund Contribution. The majority of the year over year revenue decrease was attributable to indirect reimbursements that were adjusted based on the indirect plan. The increase in M&O is primarily a result of increased software maintenance, licensing fees and minor equipment associated with the Enterprise Resource Planning (ERP) implementation. 16 City of Boise 150 North Capitol Boulevard Boise Idaho

21 GENERAL FUND Legal Actual vs Budget Variance Legal Actual Actual Budget $ % Revenue/Resources General Fund Contribution 3,744,159 3,805,960 3,805,960 (0) 0.0% Operating Revenue 1,113,885 1,165,105 1,166,703 (1,598) -0.1% Subtotal 4,858,044 4,971,065 4,972,663 (1,599) 0.0% Expenses Personnel Services 4,207,471 4,316,333 4,291,629 24, % Maintenance & Operations 500, , ,930 (158,809) -23.6% Major Equipment 42, ,105 (7,105) % Subtotal 4,750,767 4,831,454 4,972,664 (141,210) -2.8% Departmental Unused/(Needed) Appropriation $ 107,277 $ 139,611 $ - $ 139, % Encumbrances Net Grants/Dedicated Funding 27, Rebudgets 48, Departmental Net Unused/(Needed) Appropriation $ 31,810 $ 139,611 $ - $ 139,611 Legal ended the year with unused appropriation of $139,611 (utilizing 96.3% of G.F. Contribution) before and after adjustments. The expenditure savings in M&O was the key contributor to the unused appropriation. In M&O, the savings was attributable to improvements in electronic mailings and parking practices implemented by Legal to save money in postage, printing and parking expenses. Additionally, Legal staff spent budgeted funds conservatively to ensure no overspending would occur. Compared to FY 2012, the department experienced an increase in operating revenue of $51,220 (4.6%) offset by an increase in expenses of $80,687 (1.7%) for a net increase in departmental resource use of $29,468 funded by the General Fund Contribution. The majority of the increase occurred in personnel related expenses of Health Benefits, Retirement, Deferred Comp, and PEHP actuals were higher than what had been loaded into Legal s adopted budget. Legal has no ability to control these employee benefit related expenses. City of Boise Annual Financial Report Fiscal Year

22 FUND SUMMARIES Library Actual vs Budget Variance Library Actual Actual Budget $ % Revenue/Resources General Fund Contribution 9,078,252 9,495,029 9,495,029 (0) 0.0% Operating Revenue 687, , ,390 9, % Subtotal 9,765,659 10,155,922 10,146,419 9, % Expenses Personnel Services 4,920,128 4,926,573 5,013,666 (87,092) -1.7% Maintenance & Operations 3,447,972 3,579,921 5,062,860 (1,482,939) -29.3% Major Equipment 106,377 48,466 69,893 (21,427) -30.7% Subtotal 8,474,477 8,554,961 10,146,419 (1,591,458) -15.7% Departmental Unused/(Needed) Appropriation $ 1,291,183 $ 1,600,961 $ - $ 1,600, % Encumbrances 20,021 31,479 (42,480) 73,959 Net Grants/Dedicated Funding 728, , ,235 Rebudgets 303, Departmental Net Unused/(Needed) Appropriation $ 238,943 $ 768,247 $ 42,480 $ 725,766 Library ended the year with unused appropriation of $1,600,961 (utilizing 83.1% of G.F. Contribution) before adjustments and under budget by $725,766 (utilizing 92.4% of G.F. Contribution) after adjustments. It is important to note Library leadership is in the process of implementing a concerted cost containment effort to create base operating expense capacity in their operations for a new Library branch. This is the cause of the Library s operational unused appropriation listed above. Library experienced savings in personnel and early implementation of cost containment measures. The M&O accounts contain rebudgeted items for dedicated funding, such as the Integrated Online Library System (IOLS) ($525,147) and the Library gift fund ($276,088). The M&O areas that experienced savings include: utilities ($103,938), management contingency ($341,739) and numerous other small accounts as a result of cost containment strategies within the department. Funds in the Management Contingency account were not spent to provide for use in Fiscal Year 2014 for the Main Library Vision Project, which addresses options for a new Main Library. As previously noted, Major Equipment ($42,480) was moved from General Fund to the Capital Fund. Compared to FY 2012, the department experienced a decrease in operating revenue of $26,515 (3.9%) coupled with an expenditure increase of $80,484 (0.9%) for a total increase in departmental resource use of $106,999 funded by the General Fund Contribution. The revenue decrease was due to a decrease in donations through the Library gift fund. The majority of the expense increase was attributable to minor equipment, and multiple M&O accounts. 18 City of Boise 150 North Capitol Boulevard Boise Idaho

23 GENERAL FUND Office of the Mayor Actual vs Budget Variance Office of the Mayor Actual Actual Budget $ % Revenue/Resources General Fund Contribution 1,899,360 2,047,549 2,047,549 (0) 0.0% Operating Revenue 341, , ,023 9, % Subtotal 2,241,165 2,414,604 2,405,572 9, % Expenses Personnel Services 1,378,076 1,301,198 1,394,307 (93,109) -6.7% Maintenance & Operations 660, ,996 1,011,266 (363,270) -35.9% Major Equipment % Subtotal 2,038,387 1,949,194 2,405,572 (456,379) -19.0% Departmental Unused/(Needed) Appropriation $ 202,778 $ 465,410 $ - $ 465, % Encumbrances 62,099 43, ,722 Net Grants/Dedicated Funding 71, Rebudgets 37,311 84, ,372 Departmental Net Unused/(Needed) Appropriation $ 32,151 $ 337,316 $ - $ 337,316 The Mayor s Office ended the year with unused appropriation of $465,410 (utilizing 77.3% of G.F. Contribution) before adjustments and under budget by $337,316 (utilizing 83.5% of G.F. Contribution) after adjustments. The budgetary savings occurred in both personnel, as a result of vacancies, and M&O primarily attributable to professional services ($270,400). Compared to FY 2012, the department experienced an increase in operating revenue of $25,249 (7.4%) coupled with a decrease in expenses of $89,173 (4.4%) for a total decrease in departmental resource use of $114,443. The year over year increase in revenue was attributable to internal user fees ($28,679). Previously described vacancies were responsible for the decrease in personnel costs ($76,878). City of Boise Annual Financial Report Fiscal Year

24 FUND SUMMARIES Parks and Recreation Actual vs Budget Variance Parks and Recreation Actual Actual Budget $ % Revenue/Resources General Fund Contribution 13,844,942 15,087,471 15,087, % Operating Revenue 6,643,686 7,133,711 6,901, , % Subtotal 20,488,628 22,221,182 21,989, , % Expenses Personnel Services 12,055,869 12,149,367 12,189,692 (40,325) -0.3% Maintenance & Operations 6,866,128 7,635,716 8,548,841 (913,125) -10.7% Major Equipment 429, ,326 1,250,491 (486,165) -38.9% Subtotal 19,351,559 20,549,409 21,989,024 (1,439,615) -6.5% Departmental Unused/(Needed) Appropriation $ 1,137,069 $ 1,671,773 $ - $ 1,671, % Encumbrances 222,575 63,012 (174,976) 237,988 Net Grants/Dedicated Funding 203, , ,138 Rebudgets 466, , ,000 Departmental Net Unused/(Needed) Appropriation $ 244,094 $ 1,070,623 $ 174,976 $ 895,647 Parks and Recreation ended the year with unused appropriation of $1,671,773 (utilizing 88.9% of G.F. Contribution) before adjustments and they were under budget by $895,647 (utilizing 94.1% of G.F. Contribution) after adjustments. The revenue surplus was primarily attributable to increased utilization of Parks and Recreation programs in areas such as season passes, registrations and other various categories. Of the $913,125 M&O savings, $507,940 was attributable to an unused appropriation at Warm Springs Golf course, while the balance was attributable to Zoo Boise financial reserves and capital planning allocation. Other departmental M&O savings were achieved in supplies, minor equipment, utilities and multiple other categories. The Parks and Recreation department spent conservatively, holding purchases to a minimum as the majority of revenues are received during the final four months of the fiscal year. This strategy was used to ensure revenues were sufficient and comparable to the budgeted amount. Major equipment savings were due to $257,708 in encumbrances for equipment not received by year end; $127,000 in unused appropriation at Warm Springs Golf Course; and $100,000 for a Maintenance Management System which was pulled from the department and rolled into a citywide project. Compared to FY 2012, the department experienced an increase in operating revenue of $490,025 (7.4%), largely due to increased revenues at Zoo Boise as a result of increased admission prices, offset by an increase in expenses of $1,197,850 (6.2%) for a net increase in departmental resource use of $707,825 funded by the General Fund Contribution. The expenditure increase was attributable to M&O and equipment accounts, the majority of the increase occurred in supplies ($138,796), rentals and leases ($129,636) attributable to Zoo Boise and various other categories. 20 City of Boise 150 North Capitol Boulevard Boise Idaho

25 GENERAL FUND Planning and Development Services Actual vs Budget Variance Planning & Development Actual Actual Budget $ % Revenue/Resources General Fund Contribution 4,395,450 5,581,696 5,581, % Operating Revenue 5,864,344 6,518,611 4,897,818 1,620, % Subtotal 10,259,794 12,100,307 10,479,514 1,620, % Expenses Personnel Services 6,307,911 6,223,009 6,272,195 (49,186) -0.8% Maintenance & Operations 1,856,976 2,315,848 3,915,797 (1,599,949) -40.9% Major Equipment 9, , ,521 (104,485) -35.8% Subtotal 8,174,762 8,725,893 10,479,513 (1,753,620) -16.7% Departmental Unused/(Needed) Appropriation $ 2,085,032 $ 3,374,414 $ - $ 3,374, % Encumbrances 377,816 84, ,776 Net Grants/Dedicated Funding 147, , ,183 Rebudgets 277, , ,687 Departmental Net Unused/(Needed) Appropriation $ 1,282,645 $ 2,247,768 $ - $ 2,247,768 Planning and Development Services (PDS) ended the year with unused appropriation of $3,374,414 (utilizing 39.5% of G.F. Contribution) before adjustments and under budget by $2,247,768 (utilizing 59.7% of G.F. Contribution) after adjustments. Revenue was the predominant factor affecting the unused appropriation. This was because of the improved economic conditions affecting commercial and residential development. While all expense categories experienced budgetary savings, the largest unused appropriation was in M&O, specifically professional services ($1,049,181 before adjustments, $562,540 after), contract labor ($154,346), and numerous other smaller accounts. It is important to note that of the $1.6 million in remaining M&O budget appropriation at year end, $1.1 million was encumbered or rebudgeted for ongoing multi year projects such as Blueprint Boise and the Neighborhood Reinvestment Grants. Compared to FY 2012, the department experienced a substantial increase in operating revenue of $654,267 (11.2%) mostly offset by an increase in expenses of $551,131 (6.7%) for a net decrease in departmental resource use of $103,136. The revenue increase was attributable to a more favorable development environment directly affecting development fees, licenses and permits. The majority of expenditure increases were in professional services ($300,132) coupled with increases in indirect costs ($96,328). City of Boise Annual Financial Report Fiscal Year

26 FUND SUMMARIES Police Actual vs Budget Variance Police Actual Actual Budget $ % Revenue/Resources General Fund Contribution 41,197,279 43,100,115 43,100,115 (0) 0.0% Operating Revenue 6,701,359 6,328,701 6,307,569 21, % Subtotal 47,898,638 49,428,816 49,407,684 21, % Expenses Personnel Services 38,306,866 39,006,016 40,325,802 (1,319,786) -3.3% Maintenance & Operations 7,808,486 6,797,924 7,463,956 (666,031) -8.9% Major Equipment 1,087,183 1,487,220 1,617,926 (130,706) -8.1% Subtotal 47,202,535 47,291,160 49,407,684 (2,116,524) -4.3% Departmental Unused/(Needed) Appropriation $ 696,103 $ 2,137,656 $ - $ 2,137, % Encumbrances 0 74,302 (24,485) 98,787 Net Grants/Dedicated Funding 255, Rebudgets 440, , ,900 Departmental Net Unused/(Needed) Appropriation $ 19 $ 1,816,454 $ 24,485 $ 1,791,968 Police ended the year with unused appropriation of $2,137,656 (utilizing 95.0% of G.F. Contribution) before adjustments and $1,816,454 (utilizing 95.8% of G.F. Contribution) after adjustments. Police posted revenue that was essentially on budget. Personnel expenditures were $1,319,786 (3.3%) below budget because of held vacancies. M&O and major equipment savings also contributed to the unused appropriation. Savings resulted from reductions in vehicle maintenance ($119,449), supplies ($78,213), minor equipment ($185,626) and other miscellaneous accounts. Major equipment savings was rebudgeted into FY Compared to FY 2012, the department experienced a decrease in operating revenue of $372,658 (5.6%) combined with an increase in expenses of $88,625 (0.2%) for a total increase in departmental resource use of $461,284 funded by the General Fund Contribution. The revenue decrease was attributable to a reduction in the COPS grant ($530,878) offset with minor revenue increases in other categories. Personnel expenses increased $699,150 due to union contract costs. Major Equipment also increased by $400,037 because of vehicle purchases that were deferred from FY 2012 into FY M&O declined significantly ($1,010,561) which nearly eclipsed the Personnel and Major Equipment increases. Elimination of the ACS Records contract ($1,320,753) was the reason for the decrease. 22 City of Boise 150 North Capitol Boulevard Boise Idaho

27 GENERAL FUND Public Works Actual vs Budget Variance Public Works Actual Actual Budget $ % Revenue/Resources General Fund Contribution 4,029,300 4,856,993 4,856, % Operating Revenue 963, , ,328 (134,958) -13.8% Subtotal 4,993,272 5,702,363 5,837,321 (134,958) -2.3% Expenses Personnel Services 1,941,328 1,821,881 1,990,492 (168,611) -8.5% Maintenance & Operations 2,602,459 3,227,006 3,724,271 (497,266) -13.4% Major Equipment 19,401 40, ,557 (81,681) -66.6% Subtotal 4,563,188 5,089,764 5,837,321 (747,557) -12.8% Departmental Unused/(Needed) Appropriation $ 430,084 $ 612,599 $ - $ 612, % Encumbrances 39, , ,112 Net Grants/Dedicated Funding (16,542) Rebudgets 332, Departmental Net Unused/(Needed) Appropriation $ 74,795 $ 317,487 $ - $ 317,487 Public Works ended the year with unused appropriation of $612,599 (utilizing 87.4% of G.F. Contribution) before adjustments and under budget by $317,487 (utilizing 93.5% of G.F. Contribution) after adjustments. Expenditure savings were experienced in all major categories. Personnel savings were the result of vacancies. The majority of the savings in M&O categories was in professional services ($269,860), contract services ($93,990), and savings in various other categories. The savings in Major Equipment was the result of a decision to postpone the replacement of two vehicles. Compared to FY 2012, the department experienced a decrease in operating revenue of $118,602 (12.3%) combined with an increase in expenses of $526,576 (11.5%) for a total increase in departmental resource use of $645,177. The majority of the year over year revenue decrease was the lack of a transfer from the Geothermal Fund ($100,000). The majority of the expense increase was attributable to M&O accounts such as utilities ($291,551) and building and ground maintenance ($230,155), and other miscellaneous accounts. City of Boise Annual Financial Report Fiscal Year

28 FUND SUMMARIES Capital Fund Revenues and expenditures in the Capital Projects Fund fluctuate from year to year depending on the types and size of projects and the timing of revenues such as grants, donations, and project progress Actual 2013 Actual 2013 Budget Variance Over/(Under) % of Budget Collected/ Expended Revenues Electric Franchise Fee Revenue $ 2,062,166 $ 2,850,080 $ 2,550,000 $ 300, % General Fund Transfer In 7,993,213 12,115,603 2,731,879 9,383, % Other Revenue 743,304 1,450,010 4,469,563 (3,019,553) 32% Total Revenue $ 10,798,684 $ 16,415,693 $ 9,751,442 $ 6,664, % Expenditures Intergovernmental $ 710,425 $ 2,343,689 $ 2,909,061 $ (565,372) 81% Arts and History 157, , ,768 (230,772) 42% City Council % Finance and Administration - 218, ,537 (100,981) 68% Fire 1,161, ,537 1,344,508 (563,971) 58% Human Resources % Information Technology 3,370,224 1,777,326 2,515,708 (738,382) 71% Library 366, , ,396 (402,602) 58% Mayor's Office % Parks and Recreation 2,812,559 2,105,059 6,622,001 (4,516,942) 32% Planning & Development 326, % Police 79,559 88, ,000 (351,619) 20% Public Works 5,439,318 5,644,990 8,914,830 (3,269,840) 63% Total Expenditures $ 14,424,768 $ 13,687,328 $ 24,427,809 $ (10,740,481) 56% Prior Year's Spendable Resources * 3,627,084 (2,727,365) 14,676,367 (17,403,732) -19% Net Available Resources $ 1,000 $ 1,000 $ - $ 1,000 * Prior Years' Spendable Resources represent funds received in prior years used to support approved capital projects in FY Capital Fund Revenues Capital Improvement Plan ( CIP ) revenue earned during the fiscal year totaled $16,415,693, or 68.3% above the budgeted amount. Electric franchise fees and tax support from the General Fund are typically the largest sources of revenue for the Capital Fund. Grants, donations, and partnership contributions are smaller but essential resources that allow the City to leverage its ability to pay for capital assets. Electric franchise fee revenue was over budget by $300,080 (11.8%). Interest income fell well below budget by $194,304 (99.4%) primarily because of the minimal fund balance combined with low interest rates and a GASB 31 adjustment to market value. The $12.1 million transfer from the General Fund was approximately $9.4 million more than the budgeted amount. This larger transfer from the General Fund was due to a net transfer of $0.9 million of Cash Flow Reserve for the City Hall Code Update Project, the use of FY 2012 end of year funds for the Capital Contingency, and offsetting revenue and expenditure entries that occurred after the system close. Other revenues experienced a budgetary shortfall of approximately $3.0 million (67.6%), which is attributable to dedicated funding resources such as grants and donations. 24 City of Boise 150 North Capitol Boulevard Boise Idaho