CITY OF NORFOLK, NEBRASKA ANNUAL BUDGET FISCAL YEAR

Transcription

1 BRASKA ANNUAL BUDGET FISCAL YEAR

2 CITY OF NORFOLK, NEBRASKA FISCAL YEAR ANNUAL BUDGET SUMMARY MAYOR Josh Moenning COUNCILPERSONS Jim Lange Shane Clausen Dave Fauss Corey Granquist Gary Jackson Rob Merrill Thad Murren Dick Pfeil CITY ADMINISTRATOR Andrew Colvin COVER Norfolk Avenue Bridge and Roadway Construction Project.

3 City of Norfolk Mayor and City Council Mayor Josh Moenning Council President Jim Lange Councilmember Shane Clausen Councilmember Dave Fauss Councilmember Corey Granquist Councilmember Gary Jackson Councilmember Rob Merrill Councilmember Thad Murren Councilmember Dick Pfeil

4 Section 1 Introductory Section Readers Guide 5 Organizational Chart 6 Department to Fund Relationship 7 Principal Officials 8 Personnel Summary 9 Boards/Commissions/Agencies 10 Distinguished Budget Award Certificate 11 History/Facts 12 to 14 Budget Message 15 to 45 Strategic Plan Mission Statement 46 Vision Statement 46 Goals & Action Steps 47 to 59 Long-term Financial Plan 60 to 62 Council Ordinance, State Forms, & LID Committee Review 63 to 69 Budget Process Fund Description 70 to 72 Financial Policy & Basis of Budgeting 73 to 74 Debt Policy 75 Capital Improvement Policy 76 Budget Calendar 77 to 79 Budget Preparation 80 2 Summary Budgets Comprehensive City Budget 81 to 83 General Fund 84 to 132 Special Revenue Funds City Highway Allocation Fund(CHAF) 133 Vehicle Parking Fund 134 to 135 Community Development Block Grant(CDBG) 136 Specialized Narcotics Abuse Reduction Effort Fund(SNARE) 137 to Fund 140 Region 11 Emergency Management Fund 141 to 144 Storm Water Management Fund 145 LB 840 Economic Development Fund 146 Wireless 911 Fund 147 Economic Development Operations 148 to 150 Debt Service Fund 151 Capital Projects Fund 152 Special Assessments Funds 153 Enterprise Fund 154 to 171 Internal Service Fund Debt & Capital Improvement Debt Summary 173 to 177 Capital Improvement Summary 178 to Statistical Data & Glossary of Terms/Acronyms Statistical Data 197 to 209 Glossary of Terms/Acronyms 210 to 219 TABLE OF CONTENTS

5 How To Use This Book The City of Norfolk Budget provides the City Council and residents a funding plan for the fiscal year 2017/2018. The City of Norfolk s budget is a comprehensive decision making-document, designed to present an accurate description of how the City operates, its policies, goals and services provided. Organization of this Book The City of Norfolk s annual budget is divided into 4 sections: Introductory This section contains the Organizational chart, list of principal officials, boards/commissions/agencies, distinguished budget award certificate, a brief history and miscellaneous statistics, budget message, Citywide Mission & Goals, Council ordinance, state forms & LID committee review, and the budget process. Summary Budgets - This section contains a comprehensive City budget and summary budgets for the General, Special Revenue, Debt Service, Capital Project, Special Assessment, Enterprise and Internal Service Funds. Debt and Capital Improvement - This section contains schedules of bonded indebtedness and detailed Capital Improvements Projects. Statistical Data and Glossary This section contains different tables with statistical information and a list of the terminology used in this document along with a short entry that defines it within the context of which it is used. Financial Plan The budget details the costs associated with providing municipal services and how the services will be funded. In the Introductory Section we explain the accounting structure and budgetary policies. In the Summary Budgets section explanations are given on how we estimate our revenues and expenditures for the different departments. Operations Guide The budget informs the readers of all activities, services and functions carried out by each department. The budget provides information on debt management, staff levels, capital spending plans and performance measures. Communication Device The budget includes the Budget Message Section which provides readers with a condensed synopsis of the fiscal plans for the upcoming fiscal year. The document also includes a table of contents and a glossary to make it easy to find and understand the contents. In every section there are charts, graphs, tables and texts to consolidate the information as much as possible. In addition to the above functions, the budget process affords both an interesting and challenging opportunity to reassess objectives, goals, means of accomplishing them and the direction of the City. Through this effort the budget is the single most important policy document produced each year. Mission of document Policy Document - The budget reflects decisions about a variety of policy issues such as whom to tax, what to tax, what programs to fund or reduce or when to issue debt. In this context the budget acts as a policy document in that decisions are made within the budget reflect the general principles or plans that guide actions taken for the future. 5 READERS GUIDE

6 City of Norfolk, Nebraska Organizational Chart CITIZENS OF NORFOLK MAYOR & CITY COUNCIL CITY ADMINISTRATOR PUBLIC WORKS PLANNING FINANCE HUMAN RESOURCES INFORMATION SYSTEMS PUBLIC SAFETY CITY ATTORNEY ECONOMIC DEV. WATER & SEWER MAINTENANCE WATER POLLUTION CONTROL CITY CLERK LIBRARY RECREATION FIRE SOLID WASTE MANAGEMENT SPECIAL ASSESSMENTS HOUSING COMMUNICATIONS REGION 11 EMERGENCY MANAGEMENT ENGINEERING STREET MAINTENANCE DEBT SERVICE POLICE STORM WATER MANAGEMENT SPECIALIZED NARCOTICS ABUSE REDUCTION EFFORT PARK MAINTENANCE CITY HIGHWAY ALLOCATION FUND 911 FUND WIRELESS 911 FUND RISK MANAGEMENT VEHICLE PARKING 6 ORGANIZATIONAL CHART

7 Department to Fund Relationship of Budgeted Funds The graphic below shows the relationship between the City s functional units (departments) and its major, non-major, and proprietary funds. MAJOR FUNDS - Governmental GENERAL FUND Administration Engineering Street Maintenance Park Maintenance Housing Recreation Library Fire Police DEBT SERVICE FUND Debt Service SPECIAL REVENUE FUNDS CDBG CHAF CAPITAL FUNDS Special Assessments Capital Projects PROPRIETARY FUNDS NON-MAJOR FUNDS - Governmental ENTERPRISE FUNDS Business Type MAJOR FUNDS WATER FUND Water Maintenance SEWER FUND Water Pollution Control Sewer Maintenance INTERNAL SERVICE FUND Governmental NON-MAJOR FUNDS Group Insurance SOLID WASTE FUND Solid Waste Management SPECIAL REVENUE FUNDS Vehicle Parking District SNARE 911 Fund Region 11 Stormwater LB 840 Economic Development Wireless 911 Economic Development Operating 7 DEPARTMENT TO FUND RELATIONSHIP

8 BRASKA List of Principal Officials October 1, 2017 Title Name Mayor Josh Moenning Council Member Gary L. Jackson Council Member Corey Granquist Council Member Dave Fauss Council Member Jim Lange Council Member Shane Clausen Council Member Dick Pfeil Council Member Rob Merrill Council Member Thad Murren City Administrator/Economic Development Director Andy Colvin City Attorney Clint Schukei City Clerk Elizabeth A. Deck City Planner Valerie Grimes Director of Public Works Vacant Director of Public Safety Shane Weidner Finance Officer Randy Gates Fire Chief Scott Cordes Housing Director Gary Hilkemann Human Resources Director Sheila Schukei Information Systems Manager Jim McKenzie Library Director Jessica Chamberlain Operations Manger Jim Dooley Risk Manager Lyle Lutt Park & Building Maintenance Superintendent Pat Mrsny Police Chief William Mizner Wastewater Plant Superintendent Todd Boling Water & Sewer Director Dennis Watts 8 PRINCIPAL OFFICIALS

9 BRASKA PERSONNEL EMPLOYEE COUNT APPROVED APPROVED APPROVED APPROVED DIVISION FY FY Administration Engineering Street Maintenance Park Maintenance Housing Recreation Library Fire Region 11 Emergency Management Fund Police Specialized Narcotics Abuse Reduction Effort Fund Economic Development Operating Fund Water Sewer Maintenance Water Pollution Control Solid Waste Grand Total City PERSONNEL SUMMARY 9

10 BOARDS/COMMISSIONS/AGENCIES AGENCIES: # of Members Community Development Agency(CDA) 9 Norfolk Housing Agency Board of Directors 8 BOARDS: Building Code Appeals/Property Maintenance Board of Appeals 6 Library Advisory Board 5 Trail Advisory Board 5 Tree Advisory Board 5 Vehicle Parking District Advisory Board 9 Vehicle Parking District Loan Advisory Board 5 Zoning Board of Adjustment 5 COMMISSIONS: Civil Service Commission 3 Planning Commission 9 COMMITTEES: Property Tax Compliance Review (LID Committee) 5 CITY-CREATED NOT FOR PROFIT CORPORATION: City of Norfolk Facilities Corporation 3 10 BOARDS/COMMISSIONS/AGENCIES

11 The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Norfolk, Nebraska for its annual budget for the fiscal year beginning October 1, In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. This award is valid for a period of one year only. The City of Norfolk has received a Distinguished Budget Presentation Award for the last twenty-four consecutive fiscal years. We believe our current budget continues to conform to program requirements and we are submitting it to GFOA to determine its eligibility for another award. 11 DISTINGUISHED BUDGET AWARD CERTIFICATE

12 History/Facts of Norfolk, Nebraska The history of Norfolk begins on July 17, 1866 with the arrival of 44 German families from the Wisconsin area at the junction of the Elkhorn and North Fork Valleys. The rich open land attracted them for settlement. These pioneers along with others from Wisconsin form the community to become known as Norfolk. Others including some from New England soon arrived and established a water powered grist mill using water from the North Fork River. Soon a mill store was opened to serve as the location of the town. Northeast Nebraska. Norfolk is the location for more than 50 manufacturing plants employing more than 5,000 people. Based on 2016 figures, Madison County s total labor force is 19,627. About 80 wholesale firms and 250 retail firms are also based in Norfolk. By 1881 settlers organized the town of Norfolk. Legend states the original name as Norfork after the North Fork River. However, Postal authorities assumed the name was misspelled and changed the spelling to Norfolk. To this day, it is still a mystery what the founders intended the name to be. Norfolk with a present population of 24,348 is located in northeast Nebraska in the Elkhorn River Valley of Madison County. U.S. Highways 81 and 275 and Nebraska Highways 24 and 35 intersect in Norfolk. U.S. Highways 81 and 275 are designated for development as four-lane expressways. Norfolk is 119 miles northwest of Omaha, 129 miles northwest of Lincoln, and 84 miles southwest of Sioux City, Iowa. Norfolk is the economic center for an area encompassing six counties. Basic economic activities of Norfolk are manufacturing, agriculture (both livestock and grain farming), education, retailing, and wholesaling. Norfolk is the major retail trade center for 12 Norfolk stakes its claim to fame as the hometown of the worldrenowned talk show host, Johnny Carson. Early in his entertainment career, he was employed by a local radio station. When Mr. Carson closed his office in California, he donated a multitude of artifacts of great importance to the world, the television industry and the people in Norfolk and the surrounding area to the local museum. These artifacts include numerous awards, including his Emmy awards, Kennedy Center Honor Award, Medal of Freedom (the highest civilian honor given by the Television Academy of Arts and Sciences), Peabody Award, Variety Club award, plus many more awards, framed magazine covers, and other pictures and memorabilia. In the past, Mr. Carson has also made major contributions to the Public High School Theater and to the local hospital. Norfolk has also been the recipient of various awards and recognitions in the past year. The City has been the recipient of both of GFOA s Certificate of Achievement of Excellence in Financial Reporting for twenty-eight years and The Distinguished Budget Presentation Award for twenty-four consecutive years. The Insurance Services Office ranks the City of Norfolk s Public HISTORY/FACTS

13 Protection Classification at Class 2. This rating puts Norfolk in the top.7 percent of all U.S. cities and results in lower insurance premiums paid for fire protection. BRASKA MISCELLANEOUS STATISTICS 2016 Date of Incorporation September 12, 1881 Form of Government Mayor/Council Location Northeast Nebraska Elevation 1,544 Area in square miles Average annual rail fall (inches) Average annual snow fall (inches) 26.9 Average growing season (days) 153 Number of employees (excluding police officers and firefighters): Full time 136 Part time 9 Seasonal (as of September 30, 2016) 11 City of Norfolk facilities and services: Miles of streets Number of street lights 2,281 Parks and recreation: Number of parks 13 Area of parks in acres 414 Swimming pools 2 Tennis courts 5 Fire protection: Number of stations 2 Number of firemen: Full time 30 Reserve 28 Police protection: Number of stations 1 Number of police officers 37 Water and sewer system: Number of customers 9,464 Number of water treatment plants 2 Number of sewage treatment plants 1 Miles of sanitary sewers 131 Miles of water mains 126 Libraries 1 Facilities and services not included in the reporting entity: Education: Number of schools: Elementary 8 Junior High 1 Middle School 1 Senior High 4 College 1 Number of students: Elementary 2,270 Middle/Junior/Senior High 2,894 College: Full time students 2,083 Part time students 2,968 Number of instructors: Elementary/Middle/Junior/Senior High 384 College 126 Hospitals: Number of hospitals 1 Number of patient beds HISTORY/FACTS

14 Principal Area Employers Employer Type of Business # of Employees Faith Regional Health Services Health Care 1,275 Norfolk Public Schools Education 705 Northeast Community College Education 704 Associated Wholesale Grocers Wholesale Grocery 654 Medtronic Disposable hypodermic 500 syringes Vulcraft, a Division of Nucor Mfg. steel joists, metal 478 Steel deck Nucor Steel, Division of Nucor Steel angles, rounds, 423 flats and channels Wal-Mart Retail 407 Veyance Technologies Hydraulic high-pressure 350 hose Norfolk Iron & Metal Co. Wholesale steel distribution 320 Source: Chamber of Commerce Principal Taxpayers Taxpayers Type of Business 2016 Assessed Valuation Percentage of Total Assessed Valuation of $1,383,993,778 N S P LLC Shopping Mall $13,165, % Faith Regional Health Medical Offices $9,984, % Services Wal-Mart Stores, Inc. Retail Store $9,792, % Heartland Pantry Inc. Retail Store $8,800, % (Hy-Vee) Heritage of Norfolk Nursing Home $6,565, % Inc. Menard Inc. Retail Store $6,244, % Timm Village Green Apartments $5,808, % LLC Union Pacific Railroad Railroad $5,766, % Co. Qwest Corporation Telephone $5,455, % Wis-Pak Bottling $5,334, % Distributing Total $76,919, % 14 Sources: Demographic Statistics Last Ten Fiscal Years Personal Income (2) (000s) (1) These figures are estimates compiled from the most recent data available from the Bureau of Census and the Nebraska Department of Labor numbers are unavailable. (2) State of Nebraska, NE Department of Economic Development and 2015 numbers are unavailable for Personal Income and for Per Capita Personal Income. (3) Norfolk Public Schools, PreK -12. (4) State of Nebraska, NE Department of Labor Per Capita Income (2) School Enrollment (3) Fiscal Year Population (1) ,146 1,134,031 30,066 3, % ,940 1,176,748 31,413 3, % ,355 1,198,153 33,843 3, % ,210 1,213,230 34,728 4, % ,248 1,305,431 37,372 4, % ,332 1,380,610 39,836 4, % ,523 1,506,700 42,709 4, % ,444 1,550,788 44,089 4, % ,366 N/A N/A 4, % 2016 N/A N/A N/A 4, % Unemployment Rate (4) HISTORY/FACTS

15 right at home. M E M O To: Citizens of Norfolk Mayor and City Council From: Subject: Randy Gates Finance Officer FY Budget Date: August 28, N 5 th Street Norfolk, NE P F PLANNING & BUDGETING PROCESS The City s budgeting process starts with long-term financial planning. The Council selected the City s top priorities at a Council/Staff Retreat. These priorities are incorporated into the capital improvement program (CIP), budget, and long-term financial plan (LTFP). The LTFP monitors the effect of large capital projects, revenue and expenditure trends out ten years along with expected levy rates. The City s LTFP is discussed in detail in a separate section of this budget document. The City annually prepares a ten-year CIP. This program outlines capital needs for the next ten years and identifies potential funding sources. These projects are prioritized in the categories of urgent, necessary, desirable or deferrable. The CIP is prepared so that capital items do not exceed funding sources provided in the revenue and expenditure trends. The CIP can change from year to year as the revenue and expenditure trends change. The Council determines its top goals and works with City staff to develop strategies to achieve these goals. An action plan is created and specifics are incorporated into the budget to carry out the action plan. The City also developed Water and Sewer Master Plans. These plans were updated several years ago by Black and Veatch. Each year City departments and divisions submit their budget requests in four service levels. The first level assumes a 1% increase in funding authorized in the prior year. The second level assumes a 2% increase. Both of these levels are reduced service levels since budgets must absorb inflation and growth to maintain service. The third level is a 3% increase over the prior year and is the maintenance level. This increase should approximately match growth and inflation over the long-term. The fourth level normally allows an increase of up to 6% and is the level the department or division head feels is ideal. In addition to the City s budget document, the City s website contains brief, one-page summaries BUDGET MESSAGE 15

16 of each division or fund budget updated with any changes. The City s budget calendar and budget meeting schedule are also posted on the website. The address for the City s website is The City prepares a summary budget document for citizens who are not interested in the detail contained in the full budget document. MAYOR AND COUNCIL PRIORITIES This year Mayor and Council are focusing on the same goals as last year. Progress has been made on the goals over the past year but there are still steps left to complete. One of the Mayor and Council goals is a library expansion. A half-cent sales tax increase was approved at the November 2014 general election. This raises the City s sales tax rate from 1.5% to 2%. The sales tax increase will be in effect for 36 months and will end on March 31, Together with a $750,000 grant from the State of Nebraska, the sales tax will provide funding for a 2,500 square feet addition, expanded parking, drive-up access to the book drop, improvements to the children s and teen s areas, expanded meeting rooms, and updated work spaces for the Library and Information Services staff. Construction is currently in progress and anticipated to be complete in the summer of Economic development continues to be a priority of the Mayor and Council. Increasing the capacity of natural gas flowing to Norfolk had been a goal for a number of years. As explained in the next section, Black Hills Energy has constructed an eight inch natural gas pipeline from Bancroft to Norfolk. To support economic development, plans to extend water and sewer lines to industrial areas are currently in process. The Mayor and Council also want to increase area planning efforts and resources. A few of ways they plan to do this is by doing industrial site assessment and analysis, conducting an annexation study, and continuing lobbying efforts for state and federal funding for infrastructure projects. Another of the Mayor and Council goals is parks and recreation. The Council desires adding more trails and have the additional trails connect existing trails. A trail advisory board was formed whose responsibility is to help identify, promote, and seek funding for new and expanding trails in and around Norfolk. The City was recently awarded a grant from the Nebraska Game and Parks Commission for the Highway 275 underpass trail. This project is estimated to be $345,617, with $297,808 funded by grants, and construction is anticipated in The City will soon begin construction of a 5,115 feet long trail in Johnson Park and along the north fork of the Elkhorn River. In addition to trails the Mayor and Council desire adding more soccer fields and providing funding specifically for tree projects. They support efforts for an indoor recreation space for the whole community and support fundraising efforts to build a new skate park. BUDGET MESSAGE 16

17 Street maintenance continues to be a goal of the Mayor and Council. Reconstruction of the Norfolk Avenue bridge over the North Fork of the Elkhorn River is currently in progress. This is a $5.7 million project that includes a trail under the bridge, a water main, and a new roadway section from First Street to Cottonwood Street. The new roadway section will have five lanes with landscaping, decorative lighting and roadway lighting to tie in with the downtown business district. Other street maintenance goals this year include improvements to Prospect Avenue and Pasewalk Avenue. Staff will look into potential funding sources for street improvements, hiring seasonal help for streets, and identify streets for upgrade or repair possibly utilizing Armor coating. Studying costs to expand Benjamin Avenue into five lanes and holding public open houses to explain the 1 to 6 year street plan are also goals. Other Mayor and Council goals include: supporting efforts to expand Highway 275 to four lanes, increasing emergency cash reserves, and improving community engagement and public relations by identifying and implementing new and creative ways to engage citizens. Another goal is to develop and implement a long-term engineered solution to manage the Elkhorn River and hydraulically move the river back into a sustainable alignment. The Fire Division continues to identify and inspect dilapidated properties in the City with a Council goal of enforcing the property maintenance code in an aggressive and consistent manner. ECONOMIC CONDITION Low grain prices have slowed the rural agricultural economy. This has contributed to stagnant sales tax receipts in Norfolk. Sales tax for the first ten months of fiscal year 2017 is up just 1.86% from the same period in the prior year. Despite the downturn in the agricultural economy, Norfolk continues to have low unemployment. The unemployment rate for Madison County was 2.9% in June 2017 compared to the national average of 4.4%. Real estate values are increasing in Norfolk. For the fourth year in a row there is a significant increase in assessed valuation. Norfolk s 2017 assessed valuation increased 5.96% and the 2016 assessed valuation increased 4.86%, most of which was due to increased value of existing property. This comes after 4 years of little increase in assessed valuation. On October 28, 2015 OCT Pipe announced its plans to locate a new manufacturing plant in Norfolk. Original plans were to construct a facility that was more than 1-million-square-foot with an investment of over $100 million creating at least 180 jobs. Plans have grown and now include constructing a 1.3 million square foot main building and two additional buildings, one about 100,000 square foot and the other about 200,000 square foot, and creating more than 300 jobs with an estimated annual payroll of $25 million. This significantly increases the dollar amount of investment. Dirt work has started on the project and construction is BUDGET MESSAGE 17

18 expected to begin soon. OCT Pipe will produce and sell drilling and production pipe to major oil and gas production companies. The expanded plans add to the product line to include premium pipe products, couplings and special threaded pipe. The local Nucor steel mill is expected to be a major supplier of raw materials to the plant supplying 350,000 tons of steel annually. Making this project even more significant is the decision by Black Hills Energy to build a 50 mile natural gas pipeline to Norfolk from the east, connecting to the Northern Natural Gas interstate pipeline near Bancroft. This addressed one of Norfolk s biggest economic development roadblocks, a lack of natural gas capacity. With construction of the Black Hills pipeline, Norfolk is served by two different pipeline companies, one providing service from the west and the other from the east. The City entered into a funding assistance agreement with Black Hills Energy to provide $5 million for construction of this pipeline when certain conditions are met. $3.6 million is from the City s LB 840 economic development program approved by Norfolk citizens at the May, 2010 primary election. This program provides $400,000 of property tax annually for 10 years to be used for economic development and allows for bonds to be issued in anticipation of these tax receipts. On June 4, 2014 the City issued a $2,365,000 economic development fund bond. Bond proceeds, along with $1,235,000 of cash held in the Economic Development Fund was disbursed to Black Hills Energy in May 2016 after construction of the pipeline commenced. The other $1.4 million will come from grant proceeds from the State of Nebraska from its Site and Building Development Fund. Black Hills Energy has constructed the pipeline and it can be gasified when there is a user for the gas. The City and Community Development Agency approved a Redevelopment Agreement in January 2016 which provides for using tax increment financing for infrastructure development at the site of OCT Pipe s manufacturing plant to be located in northeast Norfolk at the southwest corner of the intersection of Eisenhower Avenue and Victory Road. The Community Development Agency anticipates issuing an $11 million tax increment financing bond to reimburse the developer for infrastructure costs. The City has also entered into an agreement with OCT Pipe to provide up to $1 million of Keno lottery proceeds to OCT Pipe as an incentive to complete the project and create new jobs in Norfolk. Funds will be paid to OCT Pipe on a reimbursement basis for construction of a public water main, public sanitary sewer main, storm sewers, and railroad improvements. A Redevelopment Agreement was recently approved which provides for using tax increment financing for infrastructure development in the redevelopment project area generally located on the BUDGET MESSAGE 18

19 northwest corner of 13 th Street and Omaha Avenue. The plan is to construct a 2,724 square foot building, a 10,050 square foot building, and extensive concrete parking. The buildings will have first class retail, restaurant, office, and medical tenants. The Redevelopment Agreement provides for a maximum of $450,000 of tax increment financing bonds. Another recently approved Redevelopment Agreement is for Phase I of the Fountain Point North Redevelopment Project at the southwest corner of 37 th Street and Highway 275. The project involves the construction of a 70-80,000 square foot medical office building and an 87 unit senior living facility with associated improvements. The Redevelopment Agreement provides for a maximum of $3,970,000 of tax increment financing bonds. The Norfolk area is experiencing a housing shortage. A 2016 study found that Norfolk needs 762 new housing units by 2021, including 444 owner and 318 rental housing units, to meet current demand and support future population growth. Actual construction has lagged far behind. A housing task force was formed years ago to address the housing shortage. The task force has discussed ideas to encourage speculative housing construction and the use of tax increment financing to build streets, water, and sewer in the area. The City s Economic Development staff is also focusing on this issue, as it is difficult to recruit new businesses to the area if there is no supply of housing. The City and Community Development Agency approved a Redevelopment Contract which provides for using tax increment financing for infrastructure development in the area located south of Benjamin Avenue and bordered by Meadow Ridge Development. The redevelopers plan to construct single family attached units and single family detached units for a total of 53 housing units. The Redevelopment Contract provides for a maximum of $900,000 of tax increment financing bonds. A number of houses have been constructed and others are currently under construction at this time. The City and Community development Agency approved a Redevelopment Contract which provides for using tax increment financing for rehabilitation of Skyline Apartments. The building has 92 apartments and common areas for disabled and senior residents. The rehabilitation will include many safety features, such as a new fire alarm system and emergency lighting, and improvements to bring the building up to code. The Redevelopment Contract provides for a maximum of $415,000 of tax increment financing bonds. In addition, the City is providing $348,000 of reuse funds from previous grants to be used for the rehabilitation. The old DeLay Bank Building in downtown Norfolk is currently under rehabilitation to provide 8 apartments on the upper floor and commercial space on the first floor. A maximum of $240,750 of tax increment financing bonds are authorized for this project. BUDGET MESSAGE 19

20 Other economic indicators appear mainly favorable. Norfolk s population decreased slightly from an estimated 24,366 in 2015 to an estimated 24,348 in Madison County s unemployment rate decreased 0.3% from 3.2% in June 2016 to 2.9% in June Public school enrollment increased from 4,244 in 2015 to 4,325 in Construction permits were 37 valued at $24.5 million in FY compared to 41 valued at $11.6 million in FY The most recent assessed valuation which was released August 18, 2017, shows taxable property in Norfolk valued at $1,466,525,323 a 5.96% increase from the prior year. MUNICIPAL BUDGETED PROPERTY TAX COMPARISON The following is a yearly property tax comparison from FY to FY : DEBT ECONOMIC VEHICLE GENERAL SERVICE DEVELOPMENT PARKING YEARS FUND FUND FUND FUND TOTAL FY , ,676-78,626 1,512,209 FY ,497, ,676-79,576 2,268,159 FY ,497, , ,000 77,736 2,666,319 FY ,497, , ,000 74,642 2,663,225 FY ,497, , ,000 77,351 2,665,934 FY ,497, , ,000 76,605 2,665,188 FY ,839, , ,000 78,693 3,009,310 FY ,980, , ,000 79,010 3,150,500 FY ,200, , ,000 80,453 3,371,552 FY ,729, , ,000 89,991 3,749,988 The City s property tax increases $378,436. General Fund property tax increases $528,898 and Debt Service property tax decreases $160,000. The City s assessed valuation increased 5.96% this year. The City is allowing its General Fund property tax to increase for any increase in assessed valuation. This increases property tax $205,972. $160,000 of property tax in the Debt Service Fund is moved to the General Fund to offset slow revenue growth in that fund. Legislative bill 432 eliminates the 5% BUDGET MESSAGE 20

21 delinquent tax allowance that entities can budget. In order to keep property tax receipts consistent with prior years and maintain a constant levy rate, it was necessary to increase property tax budgeted 5% due to LB 432. The tax from the 5% delinquency allowance in the Debt Service Fund and Economic Development Fund is budgeted in the General Fund. The Parking District levies the maximum $.35 allowed by statutes. An increase in assessed valuation this year and the 5% adjustment made due to LB 432 increases Parking District property tax $9,538. Based on levy rates of Nebraska first class cities last year, Norfolk will have the fourth lowest levy rate of the thirty first class cities ahead of York, Kearney, and Scottsbluff. The following table compares the municipal property tax levy for FY to FY FY FY Municipal Property Tax Municipal Property Tax Tax Valuation of Home per $100 per $100 $50,000 $ $ $60,000 $ $ $70,000 $ $ $80,000 $ $ $90,000 $ $ $100,000 $ $ $150,000 $ $ $200,000 $ $ BUDGET MESSAGE 21

22 REVENUE HIGHLIGHTS The following compares by major revenue source the FY budget with the FY proposed budget: Dollar Percentage BUDGET BUDGET Increase Increase SOURCE FY FY (Decrease) (Decrease) Balance Brought Forward 36,187,256 32,851,649 (3,335,607) (9.22%) Taxes 17,043,634 16,793,049 (250,585) (1.47%) Licenses & Permits 284, ,945 (18,560) (6.52%) Inter-Govern. Revenue 6,486,985 6,994, , % Charges for Service 13,660,853 14,089, , % Rent & Other Revenue 5,509,268 5,791, , % Interest Income 108, ,208 65, % Transfers 4,730,288 3,832,316 (897,972) (18.98%) Proceeds of Debt 15,315,000 19,115,000 3,800, % Special Assess. Levied 68,554 44,180 (24,374) (35.55%) Non-revenue Receipts 25,906 21,559 (4,347) (16.78%) TOTAL 99,420,755 99,973, , % Beginning balance decreases $3,335,607 or 9.22% going from $36,187,256 last year to $32,851,649 this year. Reconstruction of the Norfolk Avenue bridge is the primary reason for a $2.6 million decrease in the City Highway Allocation Fund. Beginning fund balance in the Sewer Fund decreases $1.6 million due to construction of the southwest sanitary sewer interceptor. In the Capital Projects Fund beginning balance decreases $515,613 as work continues on the library expansion and renovation. Partially offsetting these decreases is a $756,193 increase in the Water Fund primarily due to accumulating use fees for future capital outlay. The Debt Service Fund increases $475,004 as property tax and occupation tax receipts are accumulated to pay future debt service. Taxes include property, occupation, franchise, sales, and other miscellaneous taxes. Taxes decrease $250,585 or 1.47%. Sales tax, the General Fund s largest revenue source, decreases $622,991 due to the half-cent sales tax for the library expansion and renovation terminating March 31, The last significant amount of this sales tax will be received in May 2018 so the decrease is the remaining 4 months of the fiscal year without this half-cent sales BUDGET MESSAGE 22

23 tax. Property tax increases $378,436, most of which is in the General Fund, as described in the property tax comparison section of this memo. Licenses and permits consist of construction permits such as building and moving, mechanical, excavation, and electrical permits. Also included are liquor licenses, dog and cat fines, and other licenses and permits. Licenses and permits decrease $18,560 or 6.52% due to a decrease in construction related permits. Intergovernmental revenue consists of revenue received from other governmental entities. Examples of intergovernmental revenue include: highway allocation, community development block grants, county funding for economic development, and miscellaneous federal grants. Intergovernmental revenue increases $507,245 or 7.82% going from $6,486,985 last year to $6,994,230 this year. Effective January 1, 2017 the fixed rate component of the State s gas tax going to cities and counties increases from 3.8 cents to 4.8 cents per gallon resulting in a $280,000 increase in highway allocation receipts. Intergovernmental revenue in the Capital Projects Fund increases $358,328 primarily due to reimbursement from the Norfolk Rural Fire District for an aerial fire apparatus. Partially offsetting these increases is a $90,141 decrease in grants in the Community Development Block Grant Fund. Approximately 62% of the charges for services are use fees for water, sewer, and solid waste. Other charges for services include: city and employee share of health costs budgeted as revenue in the Group Insurance Fund, ambulance charges, administration fees, and other various admissions and fees. Charges for services increase $428,294 or 3.14%. The majority of the increase is from an increase in use fees for sewer. Sewer rates increase 6% effective September 1, 2017 resulting in an increase in use fees of $293,000. Charges for services in the General Fund increase $147,437 primarily due an increase in administration fees paid by the Water, Sewer, Solid Waste, and Economic Development Operating Funds for services provided by the General Fund, which is partially offset by a decrease in ambulance charges. Rent and other revenue increases $282,450 or 5.13%. Approximately 78% of rent and other revenue is lease revenue from NPPD. NPPD pays the City 12% of their revenues for use of the Cityowned electrical distribution system. NPPD is not planning a rate increase next year and lease revenue is therefore budgeted the same as last year s expected receipts which are $33,510 or 0.74% more than budgeted. The remaining increase is contributions for a $250,000 splash pad west of the YMCA. Interest income consists primarily of interest budgeted at.6% on average balance available for investment, up from.3% budgeted last year. It also BUDGET MESSAGE 23

24 includes interest on special assessments. Interest income increases $65,702 or 60.55% going from $108,506 last year to $174,208 this year. Interest on special assessments decreases $9,024. No new special assessments were assessed this past year and as current assessments are paid, it reduces the amount of future collections. Transfers are transfers between funds such as keno funds and property tax transferred from the General Fund to the Capital Projects Fund for capital outlay. Other significant transfers are transfers to the General Fund from the City Highway Allocation Fund for street maintenance and from the 911 Fund to the General Fund to reimburse a portion of personnel expense. For 36 months sales tax is transferred from the General Fund to the Capital Projects Fund for a library expansion and renovation. The last of these transfers will be in May 2018, which is the primary reason for the $897,972 or 18.98% decrease in transfers. The absence of the sales tax transfer in the last four months of the fiscal year accounts for $821,051 of the decrease. The transfer of keno funds to the Capital Projects Fund decreases $90,158 this year. There was a spike in keno revenue following the June 2014 hail storm as repair contractors temporarily located in Norfolk, but since then the increase has tapered off and keno revenue has started to decrease. Proceeds of debt is primarily debt issued to finance capital outlay. It also can include proceeds of refunding bonds. Proceeds of debt increases $3,800,000 going from $15,315,000 last year to $19,115,000 this year. Proceeds of debt in the Solid Waste Fund increases $1.8 million to fund the construction of a truck maintenance facility. The Sewer Fund proceeds of debt increases $2 million, up from $8,175,000 in the prior year. No debt was issued in the prior year so the entire amount is rebudgeted along with an additional $2 million to fund the various sewer extension projects described later in this memo. Other proceeds of debt includes: 1,430,000 for public safety tax anticipation bonds, 855,000 for flood control bonds, $1,500,000 for combined utilities bonds in the Water Fund, $3,105,000 for bond anticipation notes to fund special assessment projects, and $250,000 for lease purchase to cover radios for Engineering, Street, and Park Divisions. Special assessments levied is revenue collected from special assessments levied for paving, water, or sewer districts. Special assessments levied decreases $24,374 going from $68,554 last year to $44,180 this year. As mentioned with the special assessment interest, no new special assessments were assessed this past year and as current assessment are paid, it reduces the amount of future collections. Non-revenue receipts consist of loan repayments in the Community Development Block Grant Fund and the Vehicle Parking Fund. Non-revenue receipts decrease $4,347 or 16.78% due to a decrease in home loan repayments. BUDGET MESSAGE 24

25 EXPENDITURE HIGHLIGHTS The following compares by major expenditure object the FY budget with the FY proposed budget: Dollar Percentage BUDGET BUDGET Increase Increase OBJECT FY FY (Decrease) (Decrease) Personnel 21,638,487 22,373, , % Operations & Maintenance 12,206,789 12,790, , % Capital Expenditure 35,086,295 35,675, , % Debt Service 4,498,995 4,049,207 (449,788) (10.00%) Transfers 4,730,288 3,832,316 (897,972) (18.98%) Fund Ending Balance 21,259,901 21,251,775 (8,126) (0.04%) TOTAL 99,420,755 99,973, , % Personnel cost increases $735,421 or 3.40%. The budget contains a 2.5% cost of living adjustment along with normal merit pay increases. Group health insurance premiums increase 2% and VEBA contributions increase $120 per employee. In June 2017 the Economic Development Director was promoted to City Administrator. The City Administrator became the Public Safety Director. This is a new position budgeted half-time in the Fire Division and half-time in the Police Division. The new City Administrator will retain economic development duties so the Economic Development Director position was eliminated. An Engineering Aide and Special Counsel were added during a transition period to new employees. In the Administration Division, a Communications Director was reclassified to a Communications Manager and an Administrative Assistant was reclassified to Secretary II. An Equipment Operator in the Street Division retired and was replaced with a Maintenance Worker. A Park Caretaker was reclassified to a Crew Leader. Library Assistant hours were adjusted to add a Library Aide position. The Water & Sewer Mechanic was reclassified to a Utility Worker. The net result of the personnel changes is an increase of 2 full-time equivalent employees, going from last year to this year. Operations and maintenance increases $583,544 or 4.78%. Utilities and maintenance in the Water Pollution Control Plant increase $356,934 primarily BUDGET MESSAGE 25

26 due to budgeting holding tank wall repair, sequential batch reactor influent valve, and painting. Due to the Economic Development Director being promoted to City Administrator but retaining economic development duties, an administration fee of $107,158 is charged to the Economic Development Operating Fund to cover a portion of the City Administrator and other staff s personnel costs for their time spent on economic development. Administration fees in the Water, Sewer, and Solid Waste Funds increase $91,818 for services provided by the General Fund. The largest expenditure category, capital expenditures, increases $589,167 or 1.68% going from $35,086,295 last year to $35,675,462 this year. Many of the capital outlay projects budgeted in the prior year were not completed and are rebudgeted in the current year. A truck maintenance facility in the Solid Waste Fund was added to the budget this year for $1,858,000. Capital outlay in the Sewer Maintenance Division increases $932,000 primarily due to cost increases for the Highway 35 interceptor project. Partially offsetting these increases is a $2,360,000 decrease in capital outlay in the City Highway Allocation Fund primarily due to reconstruction of Norfolk Avenue bridge currently in progress. Debt service decreases $449,788 or 10.00% going from $4,498,995 last year to $4,049,207 this year. The decrease is primarily due to final maturity of three bond issues. Series 2007 public safety bonds, Series 2011 flood control bonds, and Series 2011 utilities refunding bonds were all paid off in the prior year. Partially offsetting these decreases is an increase in debt service in the Special Assessment Fund to pay off a portion of bond anticipation notes for a sewer district. Also, debt service on a bond issue to fund the truck maintenance facility was added to the budget this year. Transfers decrease $897,972 or 18.98% primarily due to a decrease in sales tax transferred to the Capital Projects Fund for the library expansion and renovation as explained in the revenue highlights section of this memo. Ending fund balance remains relatively the same as the prior year, decreasing $8,126 or 0.04%. Debt Service Fund ending fund balance increases $693,777. Half of the increase is accumulation of occupation taxes to fund debt service on the Series 2016 Recreation Facility Refunding Bonds and the other half is an increase in unrestricted fund balance. General Fund ending fund balance increases $279,187 of which $112,221 was for the 5% delinquent tax allowance that was eliminated by LB 432. The General Fund unrestricted target balance increased 2% from the prior year and the restricted amount of cash at Madison County Treasurer increased $76,914. The increases in these two funds is offset by decreases in capital outlay intensive budgets. The Capital Projects Fund, Special Assessment Fund, Sewer Fund, and Solid Waste Fund all had decreases in ending fund balance as funds are used for capital outlay projects. BUDGET MESSAGE 26

27 BUDGET SUMMARIES The following is a fund comparison of the FY budget with the FY budget. The City s total budget remains relatively unchanged from the prior year, increasing 0.56%. Reconstruction of the Norfolk Avenue bridge in the prior year decreases the City Highway Allocation Fund $2.4 million. This is offset by an increase in capital outlay in the Sewer and Solid Waste Funds. Dollar Percentage Budgeted Budgeted Increase Increase FUND (Decrease) (Decrease) General Fund 27,646,078 27,583,921 (62,157) (0.22%) CHAF 7,019,945 4,659,320 (2,360,625) (33.63%) Community Dev. Block Grant 2,325,382 2,252,482 (72,900) (3.13%) Vehicle Parking Fund 227, ,227 (32,507) (14.27%) SNARE 245, ,754 (41,018) (16.69%) 911 Fund 237, ,835 (8,600) (3.62%) Region 11 Emergency Mgmt. Fund 358, ,690 55, % Storm Water Management 173, ,572 (66,177) (38.09%) LB 840 Economic Development Fund 880, ,229 60, % Wireless 911 Fund 306, ,916 95, % Economic Development Operating Fund 615, ,614 23, % Debt Service Fund 6,012,536 6,372, , % Capital Construction Fund 11,262,836 11,400, , % Special Assessments 4,000,573 4,092,485 91, % Water Fund 9,371,261 9,163,054 (208,207) (2.22%) Sewer Fund 18,148,779 18,826, , % Solid Waste Management 2,597,144 4,576,372 1,979, % Group Insurance Fund 7,989,807 7,912,949 (76,858) (0.96%) TOTAL 99,420,755 99,973, , % BUDGET MESSAGE 27

28 GENERAL FUND General Fund beginning balance decreases $82,895 or 1.63%. Slow growth in the General Fund s two largest revenue sources causes a decrease in beginning balance for the second year in a row and only the second decrease since fiscal year Receipts from the City s 1 ½ cent sales tax for fiscal year 2017 are estimated to be only 1.54% more than the prior year and NPPD lease revenue is estimated to be only 0.39% more than the prior year. Meanwhile, estimated expenditures for fiscal year 2017 are 3.36% more than prior year actual. The largest change in General Fund revenue is a $147,437 or 7.18% increase in charges for services. The increase is partially due to an increase in administration fees from the Enterprise Funds. Previously the Water and Sewer Funds were paying the General Fund 6% of use fees for administration of the funds and the Solid Waste Fund was paying the General Fund 2.5% of use fees. This year the administration fees increase to 7% of use fees for the Water and Sewer Funds and 3% for the Solid Waste Fund. Due to the Economic Development Director being promoted to City Administrator but retaining economic development duties, an administration fee of $107,158 is charged to the Economic Development Operating Fund to cover a portion of the City Administrator and other staff s personnel costs for their time spent on economic development. This is partially offset by a decrease in ambulance charges. The second largest change in General Fund revenue is a $129,093 or 0.93% decrease in taxes. As explained earlier the decrease is due to the library half-cent sales tax terminating March 31, A $528,898 increase in property tax, also explained earlier, partially offsets this decease. Also contributing to the decrease in taxes is a $50,000 decrease in cable TV franchise tax and a $5,000 decrease in telecommunications occupation tax, which is partially offset by a $20,000 increase in motor vehicle property tax. Rent and other revenue increases $27,410 or 0.53% primarily due to an increase in NPPD lease revenue. Interest income increases $7,100 due to a.3% increase in budgeted interest rate. Intergovernmental revenue increases $6,444 or 1.22% primarily due to a $10,000 grant for a housing study. There was a decrease in the remaining two General Fund revenue categories. Licenses and permits decrease $18,560 or 6.52% due to a decrease in construction related permits. Non-revenue receipts decrease $20,000 due to a decrease in the transfer from the 911 Fund as less funds are available to transfer to reimburse a portion of personnel expense. Total General Fund expenditures are budgeted to decrease $341,344 or 1.38% this year. An $812,051 decrease in the transfer of sales tax to the Capital Projects Fund is the primary reason for the decrease. BUDGET MESSAGE 28

29 Without the transfer of sales tax in either the prior year or current year, there is a $470,707 or 2.12% increase in expenditures this year. Due to slow growth in the two largest General Fund revenue sources, the City Administrator recommended the department and divisions present their Level 2 budgets to the Mayor and Council for consideration during budget work sessions. The Level 2 budgets allow a 2% increase in expenditures. With a 2.5% cost of living adjustment some items had to be cut from the capital expenditure and operations and maintenance account to avoid increasing the levy rate. The Police Division and Fire Division had the largest increases in expenditures, increasing $271,768 and $134,418, respectively. The addition of a Public Safety Director split between the two divisions and budgeting two attorneys in the Police Division for the first part of the year while transitioning to a new City Attorney, are the cause of the increases above the 2% allowed in the Level 2 budgets. In addition to the Library Division decrease due to the sales tax transfer, the Administration Division also had a decrease. The Administration Division decreases $30,235 or 0.76% primarily due to a decrease in the transfer of keno funds to the Capital Projects Fund. The remaining divisions had increases within the 2% allowed in the Level 2 budgets. The City is able to increase budgeted ending General Fund balance from $2,860,649 last year to $3,139,836 this year, an increase of $279,187. The City increased ending balance $112,221 for the 5% delinquent tax allowance that was eliminated by LB 432 and added to budgeted property tax. Of the $3.1 million ending balance, $478,106 of this is either restricted or held by the County Treasurer resulting in unrestricted General Fund cash budgeted at about $2.7 million or 12.7% of operating expenditures. The Government Finance Officers Association recommends minimum General Fund unrestricted cash reserves of two months, or about 16% of operating expenditures, and the City has been increasing budgeted General Fund ending balance for the last nine years. Most similar sized Nebraska cities and area governmental entities have a much higher ratio of ending fund balance to expenditures. CITY HIGHWAY ALLOCATION FUND (CHAF) Beginning fund balance decreases $2,638,925 going from $4,143,645 in the prior year to $1,504,720 in the current year primarily due to reconstruction of the Norfolk Avenue bridge currently in progress. Highway allocation receipts increase $280,000 or 9.76%. Effective January 1, 2017 the fixed rate component of the State s gas tax going to cities and counties increases from 3.8 cents to 4.8 cents per gallon resulting in more highway allocation receipts. Interest income decreases $1,700 due to a decrease in fund balance. Capital outlay is budgeted at $4,200,000 compared to $6,560,000 last year. Capital outlay includes: $950,000 to finish BUDGET MESSAGE 29

30 reconstruction of the Norfolk Avenue bridge, and $500,000 for miscellaneous bridge maintenance improvements. Capital outlay also includes $2,750,000 for street maintenance projects. Ending fund balance remains relatively unchanged, decreasing $625 or 1.79%. VEHICLE PARKING FUND Beginning fund balance decreases $45,556 or 42.19% primarily due to concrete repairs and striping in downtown parking lots and improving handrails along the sidewalks in fiscal year Property tax increases $9,538 due to valuations increasing $1,603,284 and the 5% delinquent tax adjustment made due to LB 432. The Vehicle Parking District levies the maximum $.35 per $100 of property valuation. Rent and other revenue increases $3,340 due to an increase in parking lot rent of $5,740, which is partially offset by a decrease in advertising income. Total expenditures decrease $84,770 or 46.35% going from $182,893 last year to $98,123 this year. Fund balance in the Vehicle Parking Fund has consistently been decreasing over the last several year. The Vehicle Parking District board has decided to significantly cut expenditures to strive toward increasing fund balance. Capital outlay infrastructure decreases $40,000, while utilities and maintenance decreases $28,600 primarily due to a decrease in parking lot maintenance. Public relations decrease $10,000 due to a decrease in advertising and promotions. Ending fund balance increases $52,263 going from $44,841 last year to $97,104 this year as a result of the decrease in expenditures. COMMUNITY DEVELOPMENT BLOCK GRANT FUND Beginning fund balance increases $20,341 or 2.29% primarily due to the accumulation of program income. Intergovernmental revenues decrease $90,141 or 6.37% primarily due to a decrease in Community Revitalization Grants. This year the City is budgeting $224,859 for Community Revitalization Grants, $350,000 for a Downtown Revitalization Grant, $350,000 for a Comprehensive Development Grant, and $400,000 for other grants for economic development and housing. Other operating costs increase $26,206 primarily due to rehabilitation of Skyline apartments. Other administration and overhead decreases $99,106 due to a decrease in Community Revitalization Grants and finishing Phase I of the Downtown Revitalization Grant in the prior year. Once again, all available funds are expected to be spent resulting in no ending fund balance. SPECIALIZED NARCOTICS ABUSE REDUCTION EFFORT (SNARE) FUND SNARE is a drug enforcement program funded by contributions from member cities, counties, and the Nebraska State Patrol. SNARE has been in existence since the early 1990s and was previously BUDGET MESSAGE 30

31 funded with federal grant revenue received through the Nebraska Crime Commission. The primary focus of SNARE is to address the drug problem in a ten county area in Northeast Nebraska. The contributing members are the Nebraska State Patrol, Antelope, Butler, Colfax, Knox, Madison, Nance, Pierce, Platte, Polk, and Stanton County Sheriff Departments; Columbus, Norfolk, Schuyler, and Wayne Police Departments. The larger communities covered by the SNARE Task Force are Columbus, Madison, Norfolk, Schuyler and Wayne. SNARE serves an area of Northeast Nebraska with a population base in excess of 110,000. There are no grant funds budgeted this year, compared to $10,000 budgeted last year. Member contributions are budgeted at $36,900, the same as last year. Total expenditures increase $2,879 or 3.74% going from $76,907 last year to $79,786 this year. Personnel costs increase $151 due to a 2.5% cost of living adjustment. Other administration and overhead increases $2,530 primarily due to the addition of a computer and an increase in internet costs. Ending fund balance decreases $43,897 or 26.00% primarily due to a decrease in beginning fund balance of $31,018 caused by an increase in buy money in the prior year. 911 FUND This fund accounts for the monthly surcharge of $1.00 on each local telephone line that physically terminates within the City s designated 911- telephone service area. In September 2006 the City expanded revenue subject to the City s 3% occupation tax to include revenue from cell phones and other telecommunication services to offset declining 911 surcharges and telephone occupation tax. The Council directed two-thirds of the expanded telecommunications occupation tax go to the 911 Fund with the remaining one-third to the General Fund. The almost $10,000 decrease in revenue is due to a decrease in telecommunications occupation tax. Expenditures from the fund are for operation of the City E-911 service covering parts of four counties. The primary expenditure is a transfer to the General Fund to reimburse a portion of dispatcher personnel costs. This transfer is budgeted to decrease $20,000 as a result of the decrease in revenue and an increase in capital outlay. There is $13,243 of capital outlay budgeted this year for a server and long-term recorder compared to no capital outlay budgeted last year. Utilities and maintenance decreases $1,286 due to a decrease in office equipment maintenance. Once again, almost all available revenue is expected to be spent resulting in ending fund balance of $8,711 compared to $9,347 budgeted last year. REGION 11 EMERGENCY MANAGEMENT FUND This fund was created pursuant to an interlocal agreement approved in January of This interlocal agreement between Antelope, Madison, and Pierce Counties and the City of Norfolk formed the Region 11 Emergency Management Agency BUDGET MESSAGE 31

32 providing emergency management services in these jurisdictions. Norfolk s Assistant Fire Chief is the administrator of this program and the City s Emergency Management Coordinator conducts day to day operations under the agreement. Region 11 receives funding from both federal grants and contributions made by participating agencies. Beginning fund balance is budgeted to increase $48,945 or 25.16% primarily due to unspent contributions in the prior year. Miscellaneous federal grants consist of $19,917 for a Homeland Security Haz Mat grant and $46,994 for an EMPG grant, an increase in grants of $1,911. The remaining intergovernmental revenue is local funding from Antelope, Madison, and Pierce Counties which increases $2,405. Non-revenue receipts, which is the City s contribution to the fund, increases $1,604. Total expenditures increase $4,001 or 2.79%. Operating supplies and materials increase $8,323 due to the addition of small apparatus such as: hazmat suits, gas monitors, and automated external defibrillator. Legislative affairs increase $4,400 due to an increase in hazmat training. There is no capital outlay budgeted this year compared to $10,200 in the prior year. Ending fund balance increases $51,764 or 24.03% primarily due to the increase in beginning fund balance. STORM WATER MANAGEMENT FUND This fund was budgeted for the first time in FY and is used to account for implementation of the storm water management plan required by the Nebraska Legislature in The Nebraska Department of Environmental Quality provides grant funding to cities for implementation of the storm water plan according to population size and requires a 20% match from the community. Beginning fund balance decreases $19,981 or 16.93% primarily due to consultant costs for post construction master plan spent in the prior year. State funding is expected to be minimal to nothing this year so no state funding is budgeted this year, compared to $46,296 last year. City funding of $9,259 is the same as the prior year. Total expenditures decrease $49,613 or 32.34%. Legislative affairs decreases $30,600 due to a decrease in public and contractor education and employee travel and training. Capital outlay decreases $25,000 due to eliminating GIS storm water tracking software from the budget. Other administration and overhead increases $5,970 primarily due to an increase in consultant costs. Ending fund balance decreases $16,564 going from $20,336 last year to $3,772 this year primarily due to the decrease in beginning fund balance. LB 840 ECONOMIC DEVELOPMENT FUND This fund was budgeted for the first time in after Norfolk voters approved an LB 840 economic development program at the May 2010 primary. LB 840 was the legislative bill approved by the Nebraska Legislature in 1991 adopting the Local Option Municipal Economic Development Act. This Act authorizes cities to spend local BUDGET MESSAGE 32

33 revenue for economic development including offering incentives to attract business. This program authorizes collecting $400,000 from property tax each year for ten years starting in fiscal year to be used for economic development. Beginning fund balance increases $61,735 or 13.72% due to accumulating property tax for future debt service. Total revenues remain relatively unchanged decreasing $1,000 or 0.23%. Intergovernmental revenues decrease $3,000 due to a decrease in in-lieu-of-tax, while interest income increases $2,000 due to a 0.3% increase in budgeted interest rate. Total expenditures decrease $2,095 or 0.55%. There are no funds budgeted in this program this year for economic development. The only expenditure budgeted is debt service of $380,495. Ending fund balance goes from $497,904 last year to $560,734 this year, an increase of $62,830 which is property tax accumulated to pay future debt service. WIRELESS 911 FUND This fund was created pursuant to an agreement with the Nebraska Public Service Commission in 2010 to track receipt and expenditure of the City s allocation of wireless 911 funds. The funds are used for equipment, software, maintenance, and any other expenditures necessary for the provision of wireless 911 service. Beginning fund balance increases $89,984 going from $251,205 last year to $305,189 this year primarily due to accumulating wireless 911 funds for future capital outlay. Intergovernmental revenue, which is the City s allocation of wireless 911 funds, increases $3,941 or 4.34%. Interest income increases $1,200 due to an increase in fund balance and a 0.3% increase in budgeted interest rate. Expenditures increase $51,308 going from $34,484 last year to $85,792 this year. The increase is primarily $56,457 of capital outlay budgeted this year. Capital outlay includes: IBM 15 replacement server, long-term recorder, and programming for long-term recorder. Utilities and maintenance decreases $5,485 due to a decrease in office equipment maintenance. Ending fund balance increases $43,817 or 16.09% primarily due to the increase in beginning fund balance. ECONOMIC DEVELOPMENT OPERATING FUND This fund was budgeted for the first time in to account for Madison County partnering with the City to enhance economic development efforts. Madison County and the City both contribute to fund personnel costs, travel, and other necessary operating expenses relating to economic development. Beginning fund balance increases $14,894 or 5.78%, which is contributions remaining from prior years. Revenues increase $8,206 or 2.29%. Both the City and Madison County increased their contributions to the fund by $3,653 according to the annual CPI adjustment in the interlocal agreement. The only other change in revenues is a $900 increase in interest income. Total expenditures remain relatively flat, increasing BUDGET MESSAGE 33

34 $2,595 or 0.67%. Personnel costs decrease $104,563 primarily due to the promotion of the Economic Development Director to City Administrator. The City Administrator will retain economic development duties but his personnel costs are budgeted in the Administration division. The Economic Development Operating Fund will pay the General Fund an administration fee to cover a portion of the City Administrator and other staff s personnel costs for their time spent on economic development. This is the primary reason for the increase in administration and overhead of $114,277. Legislative affairs decreases $7,119 due to a decrease in travel and training. Ending fund balance increases $20,505 or 9.09% primarily due to the increase in beginning fund balance. DEBT SERVICE FUND Beginning fund balance is budgeted to increase $475,004 or 14.24% going from $3,334,705 last year to $3,809,709 this year. Half of the increase is accumulation of occupation taxes to fund debt service on the Series 2016 Recreation Facility Refunding Bonds and the other half is an increase in unrestricted fund balance. Taxes decrease $121,000 or 4.85%. Due to final payment of the Series 2011 Flood Control Refunding Bonds in the prior year, property taxes decrease $160,000 so this amount can be levied in the General Fund. Partially offsetting the decrease in property taxes is a $21,000 increase in lodging occupation tax and an $18,000 increase in food and beverage occupation tax. Interest income increases $14,000 due to an increase in fund balance and a.3% increase in interest rate. Non-revenue receipts consist of a transfer from the General Fund for debt service on the administration building. These bonds were refunded, resulting in a $7,854 or 5.90% decrease in transfers in. Transfers out, which consist of transfers to the Special Assessments Fund for the general obligation portion of special assessments, increase $36,765 or 43.38% due to the addition of a transfer for a sewer district extending sewer south of the river. Debt service decreases $371,172 or 16.52% primarily due to final maturity of the 2011 Flood Control Refunding Bonds and the 2007 Public Safety Bonds. Ending fund balance increases $693,777 or 19.04%. Similar to the increase in beginning fund balance, half of the increase is accumulation of occupation taxes to fund debt service on the Series 2016 Recreation Facility Refunding Bonds and the other half is an increase in unrestricted fund balance. Restricted fund balance accounts for $1,987,927 of the ending fund balance with the remaining $2,350,325 being unrestricted. CAPITAL PROJECTS FUND This fund accounts for large capital outlays funded by transfers from other funds, grants, and bond issues. Beginning fund balance decreases $515,613 primarily due to spending sales tax on the library renovation and expansion. Intergovernmental revenues increase $358,328 primarily due to reimbursement from Norfolk Rural Fire District for BUDGET MESSAGE 34

35 a fire aerial apparatus and an increase in federal grants for trail projects. Rent and other revenue increases $250,000 for contributions for a splash pad west of the YMCA. Interest income increases $7,400 due to an increase in budgeted interest rate. Non-revenue receipts increase $37,860 due to a $950,000 increase in proceeds of debt for public safety bonds, which is mostly offset by a decrease in transfers in due to a decrease in sales tax and keno revenue transferred from the General Fund. Other professional fees increase $154,700 due to an increase in industrial site planning and bond issuance costs. Capital outlay of $9,583,822 includes: $21,000 for land for Victory Road detention cell, $184,500 for unspecified council priority projects, $40,000 for entrance signs, $52,500 for Johnson Park enhancements, $525,300 for North Fork Riverfront trail project in Johnson Park and upstream to Elm Avenue, $4,094,000 for library renovation and expansion, $250,000 for skatepark rebuild, $455,400 for improvements to the park west of the YMCA, $250,000 for splash pad west of the YMCA, $25,300 for Ta-Ha-Zouka enhancement, $100,000 for Ta-Ha-Zouka soccer fields, $625,360 for radio upgrades, $130,000 for a sweeper, $1,300,000 for an aerial fire apparatus, $75,000 for police in-car video camera upgrade, $175,000 for police radio console upgrade, $655,000 for drainage at Victory Road/Sunrise Addition, $155,000 to complete Spring Branch Drainage improvements, $88,010 for engineering for the flood control trail undercrossing of Omaha Avenue, $100,000 for flood control renovation, and $282,452 for landscaping per the landscape master plan. Ending fund balance decreases $240,332 going from $1,742,121 last year to $1,501,789 this year. The decrease is primarily due to spending sales tax on the library renovation and expansion anticipated to be completed in the summer of SPECIAL ASSESSMENTS FUND Beginning fund balance increases $61,949 or 8.30% as special assessments are collected to pay debt service on the special assessment bonds. Special assessments levied decreases $24,374 or 35.55%. Similarly, other interest income, which is primarily interest on special assessments, decreases $7,428 or 35.32%. No new special assessments were assessed this past year and as current assessments are paid, it reduces the amount of future collections. Nonrevenue receipts increase $61,765 due to an increase in proceeds of debt and transfers in. No debt was issued last year so the proceeds of debt is a carryover from the prior year plus a $25,000 increase. Transfers in increases due to a transfer from the Debt Service Fund for a sewer district extending sewer south of the river. Capital outlay consists of $400,000 for street paving, $224,000 for a sidewalk district along Victory Road, and $2,359,000 to extend water and sewer to industrial sites. Administration and overhead increases $12,000 or 27.27% due to an increase in bond issuance costs. Debt service increases $352,957 primarily due to budgeting to pay off a portion of the bond anticipation notes for the sewer district. BUDGET MESSAGE 35

36 Ending fund balance decreases $252,705 going from $647,213 last year to $394,508 this year primarily due to the increase in debt service. WATER FUND Beginning fund balance increases $756,193 going from $4,149,931 last year to $4,906,124 this year. The increase is due to accumulating use fees for future capital outlay. Revenues remain unchanged from the prior year, with the exception of nonrevenue receipts and interest income. Use fees remain the same at $2,616,000. Interest income increases $10,600 due to an increase in fund balance and interest rates. Non-revenue receipts consist of proceeds of debt of $1,500,000, a decrease of $975,000 from the prior year. No debt was issued in the prior year and as use fees were accumulated, less proceeds of debt is necessitated this year. Expenditures decrease $188,622 or 2.37%. A large portion of the decrease is a $160,500 decrease in capital outlay, going from $5,756,640 last year to $5,596,140 this year. This year s large capital outlay items include: $2,300,000 for an industrial tank at Victory Road and Benjamin Avenue, $1,150,000 for water mains on 1 st Street and 13 th Street to the south side of Elkhorn River, $620,000 to connect the 1 st Street extension to the 13 th Street extension, and $705,000 for water main improvements at Omaha Avenue and Victory Road. Personnel costs increase $26,714 or 3.07% primarily due to a 2.5% cost of living adjustment, normal merit increases, and an increase in VEBA contribution. Utilities and maintenance increase $65,340 or 9.02% primarily due to roof repairs and a security system. The addition of a total trihalomethanes study and an increase in administration fees for services provided by the General Fund is the primary reason for a $47,289 or 14.82% increase in administration and overhead. Final payment on an outstanding bond issue results in a $169,323 decrease in debt service. Ending fund balance decreases slightly from $1,398,599 last year to $1,379,014 this year, a decrease of $19,585 or 1.40%. SEWER FUND Beginning fund balance decreases $1,627,195 going from $6,126,179 last year to $4,498,984 this year primarily due to construction of the southwest sanitary sewer interceptor in the prior year. Sewer use fees include a 6% rate increase, which increases use fees $270,000. Trucked waste increases $20,000 as more waste is brought in from outside the city. Rent and other revenue increases $1,700 due to an increase in rental income from the house at 402 East Monroe Avenue. Interest income increases $9,800 due to an increase in interest rate. Non-revenue receipts increase $2 million due to an increase in proceeds of debt. No debt was issued in the prior year so the proceeds of debt is budgeted again with an increase for additional capital outlay in the Sewer Maintenance Division. BUDGET MESSAGE 36

37 Water Pollution Control Plant expenditures decrease $653,795 or 18.51%. The primary decrease in expenditures is from final payment on an outstanding bond issue in the prior year, which decreased debt service $635,355. Capital outlay goes from $973,400 last year to $590,400 this year, a decrease of $383,000. This year s largest capital outlay item is $200,000 for overland receiving station. Utilities and maintenance increase $356,934 or 36.97% primarily due to budgeting holding tank wall repair, sequential batch reactor influent valve, and painting. Sewer Maintenance Division expenditures increase $1,653,813 going from $10,341,800 last year to $11,995,613 this year. Capital outlay goes from $8,919,700 last year to $10,234,700 this year, an increase of $1,315,000. This year s large capital outlay items include: $3,040,000 for Omaha Avenue lift station and force main, $2,035,000 for Highway 35 interceptor, $1,100,000 to extend sanitary sewer from 25 th Street and Omaha Avenue to Highway 275, $1,120,000 to extend sanitary sewer to 25 th Street and Eisenhower Avenue from 13 th Street, $950,000 for northeast industrial sewer main extension, and $900,000 to extend sanitary sewer along Highway 275 from 27 th Street to 37 th Street. Debt service increases $236,943 due to an increase in principal payments on the Series 2012B Combined Utilities Revenue Bonds and an increase in proceeds of debt. Administration and overhead increases $86,121 or 21.80% primarily due to an increase in administration fees for services provided by the General Fund and an increase in bond issuance costs. Ending fund balance decreases $322,713 going from $4,274,260 last year to $3,951,547 this year primarily due the large capital outlay projects. Restricted fund balance accounts for $3,373,047 of the ending fund balance with the remaining $578,500 being unrestricted. SOLID WASTE FUND Beginning fund balance increases $177,328 or 26.73% primarily due to the accumulation of use fees. Use fees remain the same at $1,931,550. Budgeted tonnage is 34,492 tons and tipping fees are $56.00 per ton. Interest income increases $1,900 due to an increase in interest rate. Nonrevenue receipts consist of $1.8 million of proceeds of debt to fund the construction of a truck maintenance facility. Expenditures increase $2,237,717 going from $1,819,760 last year to $4,057,477 this year. Addition of a truck maintenance facility, compost turner, utility tractor, and power washer increases capital outlay $1,909,000. The issuance of bonds for the truck maintenance facility increases debt service $138,377. Personnel costs increase $16,866 or 3.19% due to a 2.5% cost of living adjustment, normal merit increases, and an increase in VEBA contribution. Operating supplies and materials increase 15,379 or 16.35% primarily due to an BUDGET MESSAGE 37

38 increase in fuel costs. Utilities and maintenance increase $79,085 primarily due to an increase in truck maintenance and roll-up door repair. The addition of bond issuance costs and an increase in administration fees for services provided by the General Fund are the primary reason for the $77,068 increase in administration and overhead. Ending fund balance decreases $258,489 going from $777,384 last year to $518,895 due to the increase in capital outlay. GROUP INSURANCE FUND Beginning fund balance decreases $82,137 or 1.72% going from $4,789,088 last year to $4,706,951 this year. It is preferred to maintain a high enough balance in this fund so that if in a given year claims reach the aggregate retention this fund would remain solvent. Internal service fund billing remains relatively flat, decreasing $12,143 or 0.38%, and includes a 2% increase in both the City s share and employee s share of health insurance from the prior year estimated. Interest income increases $17,422 due to the increase in interest rate. Personnel costs increase $91,006 due to an increase in reinsurance costs and COBRA premium paid for a dependent with a costly medical condition. Other administration and overhead decreases $111,141 primarily due to the removal of bundle service administration and health consultant. The net result of the changes is a $56,723 or 1.28% decrease in ending fund balance going from $4,425,797 last year to $4,369,074 this year. GFOA SUBMITTAL AND ACKNOWLEDGMENTS The City received the Government Finance Officers Association s Award for Distinguished Budget Presentation for the last twenty-four years. The City also will submit the FY budget to the awards program. Administrative and Engineering Division staffs compile a budget document worthy of the high standards of the awards program. The elected officials and staff thank Senior Accountant Sheila Rios and Engineering Secretary Kelli Svitak who compiled much of the information contained in the budget document. BUDGET MESSAGE 38

39 REVENUE/EXPENDITURE SUMMARY Fiscal Year Special Revenue Funds General Fund CHAF Veh. Pking. CDBG SNARE 911 Fund Region 11 Storm Water LB 840 Econ. Dev. Wireless 911 Econ. Dev. Oper. Debt Service Capital Project Fund Enterprise Funds Special Assess. Fund Water Sewer Solid Waste Internal Service Fund Total Beginning Fund Balance 4,997,407 1,504,720 62, , ,854 13, ,514 98, , , ,744 3,809,709 4,194, ,182 4,906,124 4,498, ,722 4,706,951 32,851,649 Revenues: Property Tax 2,729,321-89, , , ,749,988 Local Sales Tax 9,870, ,870,591 Other Taxes 1,112, , , ,843, ,172,470 Licenses and Permits 265, ,945 Intergovern. Revenue 532,713 3,150,000-1,324,859 36, ,570-24,000 94, ,135 40,000 1,505, ,994,230 Charges for Service 2,200, ,667,000 4,119,000 1,931,550 3,170,701 14,089,147 Rent & Other Revenue 5,241,148-36, , ,500-71,030 7, ,791,718 Interest Income 18,100 4,600 1,035 2, , ,975 1,900 1,600 24,000 17,100 13,601 18,900 25,400 4,100 35, ,208 Transfers 615, ,106 9, , ,301 2,762, , ,832,316 Proceeds of Debt Issues ,535,000 3,105,000 1,500,000 10,175,000 1,800,000-19,115,000 Special Assess. Levied , ,180 Non-Revenue Receipts - - 5,159 16, ,559 Total Revenue 22,586,514 3,154, ,795 1,343,959 36, , ,176 9, ,375 96, ,870 2,562,977 7,205,819 3,284,303 4,256,930 14,327,100 3,735,650 3,205,998 67,121,352 Total Funds Available 27,583,921 4,659, ,227 2,252, , , , , , , ,614 6,372,686 11,400,811 4,092,485 9,163,054 18,826,084 4,576,372 7,912,949 99,973,001 Expenditures: Personnel 16,375, ,956-92, , , , ,279 3,326,122 22,373,908 Operations & Maint. 4,562,118 10,000 77,225 2,252,482 73,830 6,881 55, ,800-29, ,442 36, ,200 56,000 1,199,316 2,195,449 1,365, ,753 12,790,333 Capital Outlay 410,200 4,200, , , ,583,822 2,983,000 5,596,140 10,825,100 2,007,500-35,675,462 Debt Service , , ,876, ,977 90, , ,377-4,049,207 Transfers 3,095, , , , ,832,316 Total Expenditures 24,444,085 4,625,000 98,123 2,252,482 79, , , , ,495 85, ,636 2,034,434 9,899,022 3,697,977 7,784,040 14,874,537 4,057,477 3,543,875 78,721,226 Ending Balance 3,139,836 34,320 97, ,968 8, ,149 3, , , ,978 4,338,252 1,501, ,508 1,379,014 3,951, ,895 4,369,074 21,251,775 S BUDGET MESSAGE 39

40 Balance Brought Forward $32,851, % Proceeds of Debt Issues $19,115, % Transfers $3,832, % TOTAL REVENUES FY Distribution by Source Property Tax $3,749, % Rent & Other Revenue $5,791, % Local Sales Tax $9,870, % Other $3,678, % Inter-Governmental Revenue $6,994, % Charges for Service $14,089, % Property Tax increases $378,436 or 11.22% due to increases in tax in the General Fund and Vehicle Parking Fund. Local Sales Tax budgeted decreases $622,991 or 5.94% due to the half-cent sales tax for the libray terminating March 31, Other taxes decrease $6,030 or 0.19% due to decreases in the telecommunications occupation and cableone franchise taxes, which are partially offset by increases in the lodging and food & beverage occupation taxes. Intergovernmental Revenue increases $507,245 or 7.82% primarily due to budgeting additional highway allocation funds and the reimbursement from Norfolk Rural Fire District for an aerial. Charges for Service increase $428,294 or 3.14% primarily due to administration fee increases in the general fund, and a sewer rate increase. Rent and Other Revenue increases $282,450 or 5.13% primarily due to budgeting $250,000 in contributions for the splash pad. Transfers decrease $897,972 or 18.98% primarily due to a decrease in sales tax transfered to the Capital Projects Fund for the Library renovation project. Proceeds of Debt increase $3,800,000 or 24.81% primarily due to bond issues in the capital projects, water, sewer, and solid waste funds to cover capital projects. Debt Service $4,049, % Transfers $3,832, % Ending Fund Balance $21,251, % TOTAL EXPENDITURES FY Distribution by Major Object Personnel $22,373, % Operations & Maintenance $12,790, % Personnel increases $735,421 or 3.40% primarily due to the addition of Special Counsel and an Engineering Aide III, a 2.5% cost of living adjustment, and a 2% increase in health insurance premiums. Operations and Maintenance increase $583,544 or 4.78% due primarily to budgeting an administrative fee in the Economic Development Fund, and an increase in administrative fees for water, sewer and solid waste, and an increase in maintenance at the Water Pollution Plant. Capital Outlay increases $589,167 or 1.68% primarily due to budgeting additional capital items in the Capital Projects, Sewer and Solid Waste funds. Debt service decreases $449,788 or 10.00% primarily due to public safety, flood control, water and sewer, bonds reaching maturity. Transfers decrease $897,972 or 18.98% primarily due to a decrease in the sales tax transfered for the Library renovation project. Capital Outlay $35,675, % 40 BUDGET MESSAGE

41 MUNICIPAL PROPERTY TAX LEVIED AND SALES TAX BUDGETED BY FISCAL YEARS $14.00 $13.00 $12.00 $11.00 $10.00 Voters approved a half-cent sales tax increase to fund library renovation and expansion. TAXES ($MILLIONS) $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Increased General Fund Property Tax $400,000 for Council priority projects and $355,000 due to slow sales tax growth. Increased property tax $400,000 for voter-approved economic development program. Increased General Fund property tax $326,556 to fund a portion of park personnel and the addition of two police officers SALES TAX PROPERTY TAX Increased General Fund property tax $219,609 due to an increase in assessed valuation and to fund levee certification and an increase in fund balance. LOCAL SALES TAX HAS REDUCED MUNICIPAL PROPERTY TAX (Municipal property tax does not include the Vehicle Parking District which is levied by the Downtown Parking District) 41 BUDGET MESSAGE

42 Major Revenue Trends Nebraska Public Power District (NPPD) Lease 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Dollars (in thous.) Estimated Budget Fiscal Year NPPD leases the city-owned electrical distribution system for 12% of the systems revenues. NPPD implemented a 5.7% retail rate increase January 1, 2010, a 10% rate increase January 1, 2011, a 6.5% rate increase January 1, 2012 and a 3.75% rate increase January 1, BUDGET MESSAGE 42

43 Major Revenue Trends City Highway Allocation Fund (CHAF) 3,500 3,000 2,500 2,000 1,500 1, Dollars (in thous.) Estimated Budget Fiscal Year This revenue is received from proceeds of the State gasoline tax and is to be used for street expenditures. This allocation is based on population, motor vehicle registration and lane miles of streets. Legislative bill 610 approved May 2015, increases the fixed fuel tax distributed to cities and counties by one cent per year starting January 1, 2016 until a tax increase of four cents per gallon is reached on January 1, BUDGET MESSAGE

44 Major Revenue Trends Water and Sewer Use Fees Dollars (in thous.) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Water Sewer Estimated Budget Fiscal Year Water and sewer rates increased 10% on October 1, 2009 to fund capital improvements. Milk Specialties Company began operations at the former Protient plant in December 2009 also increasing sewer revenue. To fund capital improvements, sewer rates increased 7.5% on October 1, 2010, 7% on October 1, 2011, and 4% on October 1, Water usage was up in FY and FY because of the extremely dry summer of Sewer usage was down in FY due to an industrial customer cleaning up their waste stream. Sewer rates increased 6% on September 1, 2015, 8% on October 1, 2016, and 6% on September 1, Water rates increased 9% on October 1, BUDGET MESSAGE

45 History of Total Budget 120,000, ,000,000 80,000,000 Dollars 60,000,000 40,000,000 20,000, Fiscal Year The increase in FY is primarily due to large capital projects in the Enterprise Funds including the Benjamin Avenue/Victory Road booster station, water transmission main from the West Plant, and the southwest interceptor sewer. The 35.33% increase in FY is primarily due to the $16.4 million bond issue to fund baseball, football, and swimming improvements at Veterans Memorial Park and Ta- Ha-Zouka Park. Also contributing to the increase is paying off $1,490,000 of water utility bonds and refunding $3,550,000 of flood control bonds and $2,005,000 of utilities bonds. In FY approximately $9.2 million of bond proceeds carries over from the prior year for the recreation project. In FY the budget is reduced by completion of the following projects: 25th Street Reconstruction, Veterans Memorial Field and AquaVenture water park. The increase in FY is primarily from an increase in capital outlay in the Capital Projects Fund for public safety, streets, and parks and an increase in the General Fund for normal operations. The increase in FY is primarily from increases in the CDBG and LB840 Funds as well as increases in capital projects in the Special Assessments and Capital Projects Funds. The increase in FY is primarily due to the 1/2 cent sales tax for the library renovation and expansion and $11.22 million of refunding bonds to refund the Recreation Facilities Bonds. The sales tax for the library renovation and expansion is budgeted first in the General Fund and then again when it is transferred to the Capital Projects Fund. FY budget decreased slightly due to the elimination of some CDBG grant funds, natural gas payment being made the previous year, and refunding recreation facility bonds the previous year, which was partially offset by budgeting bond issues to fund capital expenditures in the water and sewer funds. 45 BUDGET MESSAGE

46 STRATEGIC PLAN The City of Norfolk s Strategic Plan is designed to be a 5-year living document that defines the mission and vision for the community. It is adjusted and updated as the action plan is worked, existing goals are refined and completed, and new goals are established. The Mayor and City Council, along with senior staff members, meet at least annually in a strategic planning session to review the status of the goals set at previous sessions and to look toward the future to establish new goals and initiatives. These sessions are the beginning of the annual budget process and incorporate the capital improvement program and the refinement of the impact analysis completed by each city division lead and reviewed by the city administrator and the city council. The strategic plan provides information on how the city is organized, along with a short history of the community and how it is supported by the employers and taxpayers. Incorporated in the strategic plan is the recently updated comprehensive plan. This plan speaks to the future growth and goals of the community and its extraterritorial jurisdiction over the next ten to twenty years. Much community input was received at key points during the approximately year long process to adopt the comprehensive plan. Norfolk city government is designed to serve the community with a high level of quality public services with confidence, expertise, and honesty. Mission Statement The mission of the City of Norfolk is to provide quality public services. O Norfolk Moving Forward E Vision Statement Working together as one community Norfolk moves forward with intentional and strategic purpose. Norfolk is a place people want to visit, experience and stay. Norfolk is a place where you can own a home, walk to school, retain a quality job, be within a short drive of work and enjoy an evening with your friends at the park, a local restaurant or community event. As residents of Norfolk we care about each other and our community. We are connected to one another, feel safe, and cherish living in a friendly neighborhood. We enjoy a high quality of life defined by exceptional livability, a strong identity, and civic pride. Community life includes quality educational, cultural and outdoor opportunities that are valued locally, known regionally and recognized nationally. Our vision is straightforward: one community moving forward. Through the creation of vibrant places, meaningful community activities and abundant economic opportunities Norfolk will leverage established assets so that future residents can discover and enjoy Norfolk living! As one community moving forward Norfolk is a community of strength that takes pride in being a clean, safe, friendly, prosperous, united city with modern municipal facilities. Norfolk is a healthy community with state of the art medical facilities, abundant water resources and environmentally friendly practices. Norfolk is a vibrant growing community offering shovel ready industrial sites, a network of transportation corridors, abundant low cost utilities, diverse education opportunities and quality workforce. Norfolk is an active community know as a place with abundant recreational, entertainment and cultural opportunities. 46 STRATEGIC PLAN

47 Goals and Objectives from 2017 City of Norfolk Comprehensive Plan Abundant Economic Opportunity: focused upon the creation/retention of jobs and businesses, as well as workforce development and support o Seek to diversify economic opportunities through strategic employment creation and retention efforts focusing on the following core sectors: Agriculture, Commercial Trades and Services, Education, Manufacturing, Medical, Outdoor Recreation/Tourism. o Be known as entrepreneurial community that encourages small business development through programs targeting: Youth, Ownership Skills, Idea/Concept mentoring, Local venture capital. o Purposefully address continuing workforce education and the provision of services to develop and support the Norfolk workforce in the following area: Basics (GED, English), Trade skills, Management Preparation, Career Specific, Day Care, Medical Advancement/Training o Create a Community Continuing Education Forum made up of local employers and education providers to do the following: Identify workforce needs and develop educational partnerships with local businesses for additional vocational development and technical training. Work with area community colleges and universities to establish enhanced online and in town extension and expanded educational services. Develop local library programs and services to enhance this facility as a community education center working jointly with other libraries in the area. Strategic Physical Growth and Development: focused upon creating vibrant and sustainable places o Create a vibrant riverfront that serves as a spine for new residential, commercial, and recreational activities while providing opportunities to enjoy the river daily. Create a riverfront development district and develop a master plan for redevelopment and reinvestment along the river as well as immediately adjacent neighborhoods. Promote high quality residential and commercial development along the riverfront that leverages the presence of the river and complements the desired scale and intensity of downtown Norfolk. Continue efforts to develop a community trail along the riverfront that connects with other community facilities and destinations. Create a Riverfront Zoning District to establish and guide the implementation of desired design and development qualities. o Continue to develop downtown as a regional destination with unique experiences and qualities. Continue to nurture the development of a vibrant and visually appealing downtown / "main street" that serves as a hub for commerce and community activity. Support the activities of Downtown Business and Property Owners Association as an effective peer group for addressing organization, economic structure, physical design / conditions, and promotion of Downtown Norfolk. Encourage and support downtown / main street scaled commercial development (e.g. 1 to 3 stories; zero setback; on street parking; etc.) that serves the daily needs of adjacent neighborhoods, provides community retail and entertainment venues, and draws people from around the area to unique shops and experiences. Continue to expand the attractive qualities of downtown / main street with programed aesthetic and functional improvements (e.g. signage, lighting, pedestrian enhancements, multi functional streetscape, roadway, etc.) beyond Main Street into the Downtown District. Develop a downtown master plan for long term design and development guidance, and establish a Downtown Zoning District to guide the implementation of desired design and development qualities. 47 STRATEGIC PLAN

48 o Maintain a proactive, strategic, and problem solving development policy framework. Revisit the comprehensive plan annually to assess potential changes to the goals and objectives based on planning and development decisions and various changes in community dynamics. Update the comprehensive plan every five to ten years to incorporate changes in demographic and market conditions. Conduct a comprehensive assessment and update of zoning and other design / development oriented regulations to align with the vision and goals of the comprehensive plan. Pursue voluntary and involuntary annexation of land located outside of the current city limits in a strategic fashion. Coordinate annexation activities and growth opportunities into areas of logical infrastructure expansion. Ensure that appropriate policies are in place to tie extension of utility services with agreements to annexation and payment of additional system fees when not in the city or an immediate growth area. Develop infrastructure policies that match required improvement levels and provision policies with the density / intensity of development. Work with the County to minimize the creation of land into lots / properties smaller than 40 acres without requiring urban level infrastructure improvements and annexation agreements within ½ mile of the city limits of Norfolk thus preserving future municipal level growth potential. Minimize the development of residential properties into lots larger than 1 acre within the city limits that can be served by municipal infrastructure. Assess the potential for adopting minimal architectural and site design guidelines focused on desired aesthetic and functional qualities in various high visibility districts / corridors. Utilize agricultural zoning as a holding zone to protect and preserve land within the city limits until acceptable development proposals, in concert with the vision, goals, and land use recommendations of the plan, are brought forward. Regularly review and update local development regulations to promote desired or discourage unwanted future development forms. Develop a strategy for attracting developer / development interest in the various opportunities presented through the vision, goals and objectives of this plan. 48 STRATEGIC PLAN

49 Increase the capacity of natural gas flowing to Norfolk Goal 1 Economic Development Objectives Completed Action Steps Remaining Action Steps & Departmental Responsibility Continue dialogue with natural gas Work with Black Hills Energy stakeholders and action items from o Finalize installation of pipeline their viewpoint o Facilitate final city/state financial support of project Set meeting with federal delegation o Open the pipe and economic development personnel (Finance Officer page 88) while on D.C. trip Encourage Open Season to support the industrial coalition firming up natural gas supply Recruit an industry with enough natural gas need and help negotiate a second gas line to the community Installation of an eight inch natural gas line to Norfolk Increase Norfolk area planning efforts and resources Develop Request for Qualifications (RFQ) for planning consultant Select consultant Explore and develop Community Planner job description and present to Council for discussion and action Hire Planner Negotiate contract for consultant to begin industrial site assessment Review codes concerning telecommunications and aerial locations Continue working with Nebraska Public Power District industrial site analysis team Finalize TIF Guiding Document Continue industrial site development for Norfolk area (City Administrator page 87, Economic Development page 148) 49 STRATEGIC PLAN

50 Infrastructure development to support continued community growth Goal 1 Economic Development Objectives Completed Action Steps Remaining Action Steps & Departmental Responsibility Installation of southwest water Development and installation of water line to northeast industrial interceptor area as identified by need. (Engineering page 101) Completed sewer development south of Look into creative ways of sharing the assessment burden of river (completion Fall 2016) development i.e. connection districts, utilities/financing (Finance Begin sewer design for northeast Officer page 89) expansion to Nucor and industrial area Continue lobbying efforts at the state and federal level for continual (Fall 2016) and increased funding for infrastructure projects including Extend sewer to OCT property transportation, water, sewer, storm water, etc. Continue Norfolk Leadership in the N.E.E.D. and Four Lanes for Nebraska Retail development in the community to grow as a regional retail hub Housing Study Identify potential funding sources o Nebraska State Roads (Build Nebraska Act) Continue lobbying efforts to place Highway 275 in second 10 year phase of Build Nebraska Act or sooner Assess potential sites Evaluate area in west and southwest Norfolk for possible annexation study Conduct blighted and substandard study if appropriate Hire Hanna Keenan to do housing study Identify potential funding sources o Bonding o Infrastructure bank Engage in area-wide planning efforts (City Administrator page 87) Conduct annexation study if warranted Discuss annexation with property owner(s) Annex property Offer Tools to attract Destination retail (Finance Officer page 88) 50 STRATEGIC PLAN

51 Goals and Objectives from 2017 City of Norfolk Comprehensive Plan Outstanding Quality of Life: focused upon enhancing daily living through diverse offerings, activities and events. o Promote healthy living through the creation of communitywide health and wellness programs and activities. Create a Healthy Lifestyle Alliance to leverage resources and conduct activities and programs through partnerships among education, recreation and medical providers, as well as corporate sponsors. o Enhance accessibility to Recreation Opportunities. Promote the development of neighborhood scale institutions (i.e. schools, places of worship), facilities (i.e. parks, community gardens) and amenities whenever possible to support informal and formal recreation activity. Continue implementation efforts related to the Riverfront Trail, and develop viable network to connect parks, community facilities and destinations with neighborhoods via designated pedestrian and bicycle trails. Become known as a welcoming and accommodating community in the region offering unique daily recreational experiences for citizens and annual recreational events for visitors with special needs. o Diversify the number and type of Cultural Activities and Entertainment Events. Continue efforts to develop historic/recreational/tourism elements of the community including the development of museums, public art, and interpretative education elements. Become known as a community that gathers frequently to celebrate and promote social interaction as part of the fabric of Norfolk. Establish a local arts academy that invites children and youth to create, explore and discover a variety of traditional and nontraditional art and entertainment forms (e.g. comedic, culinary, visual/graphic, theatre, music, etc.). Embrace and celebrate the notable people and their crafts associated with Norfolk through community festivals and activities (e.g. Johnny Carson, Orville Carlisle, Joyce Hall, Philip N. Karsne, Thurl Ravenscroft, etc.). 51 STRATEGIC PLAN

52 Goal 2 Parks and Recreation Objectives Completed Action Steps Remaining Action Steps & Departmental Design a plan to complete Ta-Ha-Zouka Phase 3 additional soccer fields Refine community trail plan Compile list of available property o FEMA buyout property o Hupp Property o Airport Property Identify potential funding sources o Seed money in budget every year o Grant opportunities Establish/Assign Trails Committee Continue working with private groups, i.e. Trails committee, Riverwalk, Game and Parks, Lower Elkhorn Natural Resources District (LENRD) Make small improvements each year Install new trails o Secure easements o Install trails North Park/3 rd Street Trail and Elkhorn River Un-signalized pedestrian crosswalk at Cedar Avenue and Victory Road Install trails Omaha Avenue to Bluff Avenue Trail Complete Ta-Ha-Zouka Trail Loop Proposal and present to Council for review and action Johnson Park Improvements including the possibility of closing Nebraska Avenue Complete Ta-Ha-Zouka Trail Loop Review options and do a cost impact analysis for installation of a sidewalk along Victory Road o Explore special assessment funding in combination with debt service Apply for grant for trail under Omaha Avenuereceived $250,000 Responsibility Identify potential funding sources o Keno o Grant opportunities o Property tax increase o Partnering public/private Identify potential funding sources o Council priority dollars o Landscape funding o Property tax increase/sales Tax o Keno (Finance Officer page 89) Install new trails o Complete engineering and design bid process (Engineering page 101) Continue to explore potential of River Overlay District with Trails Committee, consultant, and Planning Commission (City Administrator page 87) Complete installation of Johnson Park Trail (Fall 2017) (Human Resources Director page 96, Park Maintenance page 109) Be more aggressive requiring sidewalks in community Install sidewalk along Victory Road 52 STRATEGIC PLAN

53 Goal 2 Parks and Recreation Objectives Completed Action Steps Remaining Action Steps & Departmental Responsibility Skate park Committed 100% match up to $125,000 from Keno Support fundraising efforts to build new skate park funds for community (Park Maintenance page 109) Indoor facility Support efforts for an indoor recreation space for the whole community Embrace Park/Splash pad/multi-use Fields Commit a portion of land west of YMCA to project Explore in-kind donation i.e. recreation property west of YMCA and potential of funding for community betterment Partner with group to bid/build project Design and build additional multi-use fields (Human Resources Director page 96) Tree Board Provide funding specifically for tree projects (Human Resources Director page 96) 53 STRATEGIC PLAN

54 Goals and Objectives from the 2017 City of Norfolk Comprehensive Plan Extraordinary Service Provision: focused on the delivery of efficient and reliable basic/essential services o Provide and sustain the highest level of water, sanitary sewer and storm water service delivery minimizing interruptions to daily life. Continually assist the quality of existing infrastructure system components identifying, prioritizing, and programming necessary maintenance and improvement. Study and encourage the application of Best Management Practices on private property and public property to minimize the impacts of storm water drainage. Coordinate system extension/expansion policies with long range community development plans and identified growth areas to match service levels and provision policies with the density/intensity of development. Monitor and proactively pursue public and private funding opportunities that can support future infrastructure system development. Investigate the use of a formal asset management system for all utilities and infrastructure systems including locally maintained roadways. o Develop a comprehensive multi modal Transportation network pedestrian, vehicular, rail, and air. Develop and maintain a pedestrian and bicycle network that is integrated with local transportation and recreation master planning efforts, thus creating opportunities for communitywide use connecting neighborhoods to essential daily needs and destinations. Investigate the application of complete streets and road diets to enhance downtown, and other select pedestrian and residential oriented areas. Develop context sensitive design criteria for roadways based upon topographic features and development type and character. Retain the resiliency of the predominant street grid through the hierarchy of local, collector and arterial roadway placement based on priority functional needs. Develop an airport master plan and strategic marketing effort that seeks to maintain and expand the airport in a manner supportive of economic development efforts related to general aviation, fly in events, recreational services / events, and commerce. Develop and diversify community transportation opportunities including community ride assistance that connects people to jobs and daily needs, and alternative rural transportation services connecting Norfolk to other nearby communities. Establish / Expand fiber network provision in Norfolk in support of economic and community development efforts. 54 STRATEGIC PLAN

55 Goal 3 Street Expansion & Maintenance Objectives Completed Action Steps Remaining Action Steps & Departmental Accelerate street maintenance program and find long-term funding source Do a story on street repair funding Develop options on using $120,000 of priority dollars to increase City s ability to repair streets Isolate/hire private contractors to complete specific projects i.e. ADA sidewalk, small street repair, etc. Free up City crews to focus attention on street repair Projects 2015 o 20 th Street, 18 th Street, Sunset Circle, and general maintenance o 5 th Street, Victory Road and Norfolk Avenue o Prospect Turn lane by college 37 th Street Roundabout Responsibility Identify potential funding sources o City Highway Allocation Fund (Finance Officer page 89) Projects: o Prospect Avenue (27 th Street to Ridgeway Drive) o Norfolk Avenue Bridge o Pasewalk west of 13 th Street (Engineering page 101) Study Paving and Armor coating of select streets (Street Maintenance page 105) Look into hiring seasonal help for streets Provide a breakdown of street projects, an inventory of what streets need to be paved and what length of the streets are, assessable and nonassessable costs (City Administrator page 87) Study costs of five lanes on Benjamin Avenue Hold public open house each October to explain 1 to 6 year street plan with community input Landscape Master Plan Review code on parking on terraces Landscaping, brick pavers and decorative pedestrian lighting on Norfolk Avenue from 1 st Street to Cottonwood Street will be done with East Norfolk Avenue bridge Review and identify landscape/trail projects Create well landscaped corridors within the community (City Administrator page 87) Work on entrances to the City 55 STRATEGIC PLAN

56 Goals and Objectives from the 2017 City of Norfolk Comprehensive Plan Provide outstanding professional Public Safety services (e.g. Police, Fire, EMS) o Develop a cross agency coordination and planning group to leverage opportunities for training / education of personnel, coordinated cooperative policies, shared assets and programs, enhanced communications and community outreach efforts, etc. o Monitor the need for improvements to such services and facilities through proactive capital planning to meet and maintain the highest levels of service delivery. o Continue to strengthen relationships through community programs that reach out to and educate the community regarding public safety and health initiatives. o Partner with local health care facilities and services to create unique and enhanced methods of community service delivery. Maintain a cooperative and positive Governance atmosphere o Develop and implement joint (City and County) policies addressing future growth and development through the provision of infrastructure and the delivery of services in a manner that is efficient and cost effective. o Create a Governance Institute to educate and inspire citizens, public servants, and leaders via greater understanding of the duties and responsibilities of local government agencies (e.g. county, city, school district) and public service entities. o Broaden local leadership mentoring programs to prepare people to serve on various boards and committees, and pursue political office in the future. 56 STRATEGIC PLAN

57 Goal 4 Community Engagement and Public Relations Objectives Completed Action Steps Remaining Action Steps & Departmental Identify and implement new and creative ways to engage our citizens Identify potential funding sources o General Fund revenue Implement quarterly meeting immediately after regular City Council meeting in conjunction with Public comment with rotating Council person 1 per Ward Continue to offer Norfolk 101 Citizens Academy Continue to develop Norfolk Now E-newsletters 2033 subscribers More engagement with media More staff and elected officials engaged with community groups Consider blog expansion Norfolk community app Continue succession planning for manager positions Responsibility Discuss Youth Norfolk 101 program with area school leaders/educators Begin process of redesigning of city s website Ask employees in annual reviews where they will be in 1 year, 5 years, etc. Consider periodic work sessions as needed (Human Resources Director page 96) Goal 5 Increase Emergency Cash Reserve Objectives Completed Action Steps Remaining Action Steps & Departmental Develop a sustainable plan to increase the budgeted emergency cash reserve to match the GFOA minimum standards of 16% of expenditures. Target at same percentage as budget growth or greater without decreasing levy rate Responsibility Identify potential funding sources o All sources Continually assess financial status of City Fund as dollars become available and are warranted by Council and economic conditions Budget to GFOA minimum of 16% of General Fund Revenues 20% or greater ideal (Finance Officer page 89) 57 STRATEGIC PLAN

58 Goal 6 Property Maintenance Objectives Completed Action Steps Remaining Action Steps & Departmental Identify and remedy dilapidated property within the city limits Identify potential funding sources o $36,000 in fiscal year budget Enforce the property maintenance code in an aggressive and consistent manner including vehicle parking in inappropriate places Prevention staff continues identification and inspection process of dilapidated properties in City Market the fact that the City is working to improve dilapidated properties Responsibility Develop vacant property registry Explore private/public partnership for house demolition and subsequent new home rebuild (City Administrator page 87, Housing page 113) Goal 7 Elkhorn River Railroad Embankment Stabilization Objectives Completed Action Steps Remaining Action Steps & Departmental Develop and implement a long-term engineered solution to manage the Elkhorn River and hydraulically move the river back into a sustainable alignment Consultant engineering o Conduct assessments Identify solution and costs Identify potential funding sources o Natural Resources District o Railroad Transportation Safety District o Industrial stake holders Reach consensus on funding plan Interlocal agreement Responsibility Engage an engineer and contractor Proceed with project by Fall 2017 (City Administrator page 87) 58 STRATEGIC PLAN

59 Goal 8 Library Expansion Objectives Completed Action Steps Remaining Action Steps & Departmental Remodel and expand Norfolk Public Library Identify potential funding sources o Increase sales tax to 2% Needs assessment supports expansion Hold public meetings/town hall meetings Hold public vote at general election Identify potential funding sources o Grant opportunities Responsibility Complete final design and build over next three years (Information Systems page 94, Human Resources Director page 96, Engineering page 101, Library page 120) 59 STRATEGIC PLAN

60 LONG-TERM FINANCIAL PLAN The City s long-term financial plan is a forward looking document concentrating on key areas of the City. It focuses on General Fund, Debt Service Fund, capital outlay, and an overall focus on property taxes. It projects revenues and expenditures out ten years and is updated throughout the year during times of Council/Staff retreat, CIP preparation, and budget preparation. Included in this budget document is the Property Tax Summary and General Fund model from the LTFP. The Property Tax Summary links property taxes from the General Fund model and the Debt Service Fund model. Summary Since the City s two largest revenue sources, sales tax and NPPD lease revenue, are not keeping up with the 3% maintenance level budget, property tax needs to increase to fill in the gap. The LTFP shows the City s property tax rate going from in to in In the City s property tax levy rate was 4 th lowest of the 30 first class cities in Nebraska. It would have moved to 14 th highest with the projected levy rate. The General Fund model uses linear regression looking back nine years to project out ten years. Accounts are then adjusted based on known events. Key assumptions are as follows: Key Assumptions Nebraska Public Power District (NPPD) lease revenue remains constant through fiscal year and increases 1% per year starting in fiscal year based on predictions from NPPD. Sales tax, the City s largest revenue source, increases 2.1% per year based on past history. The half-cent sales tax for the library expansion and renovation ends in May 2018 along with the related transfer to the Capital Projects Fund. Voters approve to continue funding the City s LB840 Economic Development Program after fiscal year 19-20, currently the last year to be funded. (Shown in italics on the Property Tax Summary.) 60 LONG-TERM FINANCIAL PLAN

61 Property Tax Summary Units Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Valuation $ 1,466,525,323 1,525,186,336 1,586,193,789 1,649,641,541 1,715,627,203 1,784,252,291 1,855,622,382 1,929,847,278 2,007,041,169 2,087,322,815 General Fund Property Tax $ 2,352,614 3,565,709 3,932,765 4,406,140 4,870,593 5,333,870 5,797,657 6,209,452 6,619,942 7,014,742 General Fund Levy Rate $/$ LB 840 Property Tax 404, , , , , , , , , ,000 LB 840 Levy Rate Unspecified Council Priority Projects 111, , , , , , , , , ,083 Council Priority-Debt Service on Admin Bldg 126, , , , , , , , , ,515 Council Priority-Transfer to Econ Dev Fund 51,673 51,673 51,673 51,673 51,673 51,673 51,673 51,673 51,673 51,673 Park personnel formerly funded with Keno 114, , , , , , , , , ,729 Total Council Priority Project Property Tax $ 404, , , , , , , , , ,000 Council Priority Levy Rate Levied in General Fund $ 2,756,614 3,969,709 4,336,765 4,810,140 5,274,593 5,737,870 6,201,657 6,613, ,023,942 7,418,742 Debt Service Property Tax $ 535, , , , , , , , , ,983 Debt Service Levy Rate $/$ Total Property Tax $ 3,696,597 4,909,692 5,276,748 5,750,123 6,214,576 6,677,853 7,141,640 7,553,434 7,963,924 8,358,725 Total Levy Rate $/$ General Fund Property Tax Change $ 444,166 1,213, , , , , , , , ,800 Debt Service Property Tax Change $ -196, Total Property Tax Change $ 208,032 1,213, , , , , , , , ,800 General Fund Levy Rate Change $/$ Debt Service Levy Rate Change $/$ Property Tax Rate Change $/$ General Fund Levy Rate Change % % % 6.052% 7.728% 6.289% 5.300% 4.515% 2.983% 2.510% 1.888% Debt Service Levy Rate Change % % % % % % % % % % % Property Tax Rate Change % 0.000% % 3.342% 4.780% 3.920% 3.322% 2.832% 1.698% 1.379% 0.921% Property Tax on $100,000 Home $ Property Tax Change on $100,000 Home $ LONG-TERM FINANCIAL PLAN 61

62 General Fund Model Description Property Tax 2,729,321 3,930,405 4,293,827 4,762,515 5,222,369 5,681,059 6,140,254 6,547,972 6,954,398 7,345,289 Motor Vehicle Property Tax 505, , , , , , , , , ,574 Utility Franchise 676, , , , , , , , , ,976 Local Sales Tax 10,090,660 8,429,370 8,606,387 8,787,121 8,971,651 9,160,056 9,352,417 9,548,818 9,749,343 9,954,079 Other Taxes 44,813 44,719 44,624 44,529 44,434 44,340 44,246 44,150 44,056 43,961 Licenses & Permits 284, , , , , , , , , ,447 Miscellaneous Federal Grants 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 Intergovernmental Revenues 628, , , , , , , , , ,775 Administration Fees 574, , , , , , , , , ,455 Pool Admissions and Concessions 425, , , , , , , , , ,320 Charges for Service 1,097,404 1,112,540 1,127,677 1,142,810 1,157,946 1,173,082 1,188,218 1,203,352 1,218,488 1,233,625 NPPD Lease 4,525,800 4,525,800 4,525,800 4,525,800 4,525,800 4,525,800 4,525,800 4,571,058 4,616,769 4,662,936 Keno 551, , , , , , , , , ,000 Rent & Other Revenue 234, , , , , , , , , ,428 Interest Income 40,345 75, , , , , , , , ,963 Interfund Operating Transfer In 554, , , , , , , , , ,000 TOTAL Revenues 22,966,406 22,595,638 23,321,874 24,056,556 24,786,746 25,519,163 26,256,840 26,991,655 27,730,790 28,458,028 Personnel Costs 13,393,846 13,807,998 14,222,145 14,636,294 15,050,441 15,464,592 15,878,737 16,292,887 16,707,032 17,121,179 Group Insurance 2,403,636 2,515,358 2,627,079 2,738,801 2,850,522 2,962,242 3,073,964 3,185,683 3,297,407 3,409,127 Operating Supplies & Materials 752, , , , , , ,762 1,002,501 1,038,244 1,062,989 Other Operating Costs 146, , , , , , , , , ,531 Utilities 739, , , , , , , , ,854 1,007,618 Maintenance 813, , , , , ,728 1,032,209 1,068,687 1,105,173 1,141,653 Legislative Affairs 354, , , , , , , , , ,644 Professional Fees 398, , , , , , , , , ,363 Administration & Overhead 780, , , , , , , , ,862 1,002,586 Capital Outlay 644, , , , , , , , , ,386 Gov't Subsidies & Transfers 1,918,657 83,991 83,992 83,991 83,991 83,992 83,991 83,991 83,991 83,993 Transfer to Econ Dev Operating Fund 105, , , , , , , , , ,511 Transfer of Keno to Capital Projects Fund (CPF) 402, , , , , , , , , ,800 Transfer of Property Tax and Sales Tax to CPF 437, , , , , , , , , ,164 Transfer of Council Priority 287, , , , , , , , , ,647 TOTAL Expenditures 23,577,954 22,529,654 23,257,372 23,986,571 24,717,278 25,449,554 26,183,424 26,918,948 27,656,202 28,384,191 NET OF REVENUES/APPROPRIATIONS (611,548) 65,984 64,502 69,985 69,467 69,608 73,416 72,707 74,588 73,837 BEGINNING FUND BALANCE 4,340,251 3,728,703 3,793,177 3,860,663 3,926,200 4,001,572 4,063,823 4,146,048 4,208,493 4,294,800 ENDING FUND BALANCE 3,728,703 3,794,687 3,857,679 3,930,648 3,995,668 4,071,181 4,137,239 4,218,755 4,283,081 4,368,637 LONG-TERM FINANCIAL PLAN 62

63 THE ANNUAL APPROPRIATION BILL AN ORDINANCE OF THE BRASKA, ADOPTING THE BUDGET STATEMENT TO BE TERMED THE ANNUAL APPROPRIATION BILL; APPROPRIATING SUMS FOR NECESSARY EXPENSES AND LIABILITIES; ADOPTING THE PROPRIETARY BUDGET STATEMENT; ADOPTING THE STRATEGIC PLAN; PROVIDING FOR SEVERABILITY; PROVIDING WHEN THIS ORDINANCE SHALL BE IN FULL FORCE AND TAKE EFFECT; AND PROVIDING FOR THE PUBLICATION OF THIS ORDINANCE IN PAMPHLET FORM. BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF NORFOLK, NEBRASKA: Section 1. That after complying with all procedures required by law, the budget presented and set forth in the budget statement is hereby approved as the Annual Appropriation Bill for the fiscal year beginning October 1, 2017 through September 30, All sums of money contained in the budget statement are hereby appropriated for the necessary expenses and liabilities of the City of Norfolk, Nebraska. Section 2. That there is required to be levied upon taxable property within the City of Norfolk an all-purpose and exclusive annual levy sufficient to raise $2,756,614 for all municipal purposes except bonded indebtedness, the Vehicle Parking Fund, and the Economic Development Fund, and there is required a levy sufficient to raise $535,983 to cover interest and principal for general obligation bonds, $90,891 for the Vehicle Parking Fund, and $404,000 for the Economic Development Fund. Section 3. That after complying with all procedures required by law the Proprietary Budget Statement presented for the Water, Sewer and Solid Waste funds is hereby approved for the fiscal year beginning October 1, 2017 through September 30, Section 4. That the strategic plan presented and set forth in the budget statement is hereby approved. Section 5. If any section of this ordinance, or any part of any section shall be declared invalid or unconstitutional, such declaration of invalidity shall not affect the validity of the remaining portions thereof. Section 6. That this ordinance shall be in full force and effect from and after its passage, approval and publication as provided by law, and publication in pamphlet form. COUNCIL ORDINANCE, STATE FORMS, & LID COMMITTEE REVIEW 63

64 LID COMPUTATION FORM Norfolk IN Madison County COMPUTATION OF LIMIT FOR FISCAL YEAR PRIOR YEAR RESTRICTED FUNDS AUTHORITY OPTION 1 OR OPTION 2 OPTION Restricted Funds Authority (Base Amount) = Line (8) of last year s LC-3 Form 11,170, Option 1 - (1) Line (1) of Lid Computation Form OPTION 2 - Only use if a vote was taken at a townhall meeting to exceed Lid for one year Option 2 - (A) Allowable Percent Increase Less Vote Taken (From Lid Computation Form Line (6) - Line (5)) % Option 2 - (B) Dollar Amount of Allowable Increase Excluding the vote taken Line (A) X Line (B) - Option 2 - (C) Calculated Restricted Funds Authority (Base Amount) = Line (A) Plus Line (C) - Option 2 - (1) ALLOWABLE INCREASES 1 BASE LIMITATION PERCENT INCREASE (2.5%) 2.50 % (2) 2 ALLOWABLE GROWTH PER THE ASSESSOR MINUS 2.5% - % (3) 11,709, / 1,383,993, = 0.85 % 2017 Growth per Assessor 2016 Valuation Multiply times 100 To get % COUNCIL ORDINANCE, STATE FORMS, & LID COMMITTEE REVIEW 64

65 LID COMPUTATION FORM Norfolk IN Madison County 3 ADDITIONAL ONE PERCENT COUNCIL/BOARD APPROVED INCREASE 1.00 % (4) 7 / 8 = % # of Board Members voting "Yes" for Increase Total # of Members in Governing Body Must be at least 75% (.75) of the Governing Body ATTACH A COPY OF THE BOARD MINUTES APPROVING THE INCREASE. 4 SPECIAL ELECTION/TOWNHALL MEETING - VOTER APPROVED % INCREASE Please Attach Ballot Sample and Election Results OR Record of Action From Townhall Meeting (5) % TOTAL ALLOWABLE PERCENT INCREASE = Line (2) + Line (3) + Line (4) + Line (5) 3.50 % (6) Allowable Dollar Amount of Increase to Restricted Funds = Line (1) x Line (6) 390, (7) Total Restricted Funds Authority = Line (1) + Line (7) 11,561, (8) Less: Restricted Funds from Lid Supporting Schedule 10,084, (9) Total Unused Restricted Funds Authority = Line (8) - Line (9) 1,476, (10) LINE (10) MUST BE GREATER THAN OR EQUAL TO ZERO OR YOU ARE IN VIOLATION OF THE LID LAW. THE AMOUNT OF UNUSED RESTRICTED FUNDS AUTHORITY ON LINE (10) MUST BE PUBLISHED IN THE NOTICE OF BUDGET HEARING. COUNCIL ORDINANCE, STATE FORMS, & LID COMMITTEE REVIEW 65

66 Norfolk in Madison County LID SUPPORTING SCHEDULE Calculation of Restricted Funds Total Personal and Real Property Tax Requirements Motor Vehicle Pro-Rate In-Lieu of Tax Payments Prior Year Budgeted Capital Improvements that were excluded from Restricted Funds. (1) $ 3,787, (3) $ 6, (2) $ 189, Prior Year Capital Improvements Excluded from Restricted Funds (From LC-3 Lid Support, Line (17)) $ 10,125, (4) LESS: Amount Spent During $ 8,789, (5) LESS: Amount Expected to be Spent in Future Budget Years Amount to be included as Restricted Funds ( Cannot Be A Negative Number) $ 1,335, (6) (7) $ - Motor Vehicle Tax (8) $ 480, Local Option Sales Tax (9) $ 9,870, Transfers of Surplus Fees (10) $ - Highway Allocation and Incentives (11) $ 3,150, MIRF (12) $ - Motor Vehicle Fee (13) $ - Municipal Equalization Fund (14) $ 83, Insurance Premium Tax (15) $ - Nameplate Capacity Tax (15a) $ - TOTAL RESTRICTED FUNDS (A) (16) $ 17,567, LC-3 Lid Exceptions Capital Improvements (Real Property and Improvements on Real Property) $ 6,857, (17) LESS: Amount of prior year capital improvements that were excluded from previous lid calculations but were not spent and now budgeted this fiscal year (cannot exclude same capital improvements from more than one lid calculation.) Agrees to Line (6). $ 1,335, (18) Allowable Capital Improvements (19) $ 5,521, Bonded Indebtedness (20) $ 457, Public Facilities Construction Projects (Statutes to ) Interlocal Agreements/Joint Public Agency Agreements (21) (22) $ 1,503, Public Safety Communication Project (Statute ) Payments to Retire Interest-Free Loans from the Department of Aeronautics (Public Airports Only) (23) (24) Judgments (25) Refund of Property Taxes to Taxpayers Repairs to Infrastructure Damaged by a Natural Disaster (26) (27) TOTAL LID EXCEPTIONS (B) (28) $ 7,482, TOTAL RESTRICTED FUNDS For Lid Computation (To Line 9 of the Lid Computation Form) To Calculate: Total Restricted Funds (A)-Line 16 MINUS Total Lid Exceptions (B)-Line 28 $ 10,084, Total Restricted Funds for Lid Computation cannot be less than zero. See Instruction Manual on completing the LC-3 Supporting Schedule. COUNCIL ORDINANCE, STATE FORMS, & LID COMMITTEE REVIEW 66

67 right at home. 309 N 5 th Street Norfolk, NE P F services not directly related to the fee. Exempted from the lid are restricted funds budgeted for purchase of real property and improvements on real property, debt service, interlocal agreements, and some other limited exceptions. Allowable growth in net restricted funds is limited to the total of the following: August 25, 2017 Mayor Josh Moenning and Norfolk City Council City of Norfolk 309 North 5 th Street Norfolk, NE Dear Mayor Moenning and City Council Members: The Property Tax Relief Assurance Committee was established by Ordinances No and No to provide a review responsibility of use of local sales tax for property tax relief. LB 989, enacted in the Nebraska Legislature s 1998 session, preempts the City s selfimposed 5% lid; therefore the committee has conducted its annual evaluation of the City s FY General Fund budget on LB 989 criteria. LB 989 places a lid on certain revenues (restricted funds) including both property tax and sales tax. In addition, the lid covers motor vehicle tax, in lieu of taxes, motor vehicle pro-rate, municipal equalization funding, city highway allocation funds and transfers of surplus fees to fund a) 2.5% annual growth for the fiscal year ending 2018 b) The increase in taxable valuation attributable to growth, in excess of 2.5% c) An additional 1% upon ¾ vote of the governing body d) Carry-over of unused budget authority from prior years. Each year City departments and divisions submit their budget requests in four service levels. The first level assumes a 1% increase in funding authorized in the prior year. The second level assumes a 2% increase. Both are reduced service levels since budgets must absorb inflation and growth to maintain service. The third level is a 3% increase over the prior year and is the maintenance level. This increase should approximately match growth and inflation over the long-term. The fourth level allows an increase normally limited to 6% and is the level the department or division head feels is ideal. The City s assessed valuation increased 5.96% this year. Three years ago was the first significant increase in assessed valuation over the last eight years. The total increase in assessed value from 2009 to 2013 was less than 2% while the consumer price index increased almost 11% during that same period. During this period the City kept its property tax constant allowing the levy rate to decline COUNCIL ORDINANCE, STATE FORMS, & LID COMMITTEE REVIEW 67

68 slightly. Starting three years ago the City allows its property tax to increase for any increase in assessed valuation to partially offset inflation over the 4 years when the property tax asking remained constant. The 5.96% increase in assessed valuation this year increases General Fund property tax budgeted by $205,972. The City s largest General Fund revenue, sales tax, is budgeted to decrease $622,991 or 5.94% due to the halfcent sales tax for the library addition and renovation terminating March 31, The City s 1.5 cent sales tax is budgeted to increase $189,059 or 2.40%. NPPD lease revenue, the second largest General Fund revenue, is budgeted to increase $33,510 or 0.74%. Together these two revenue sources comprise $14 million or 64% of total General Fund revenue. Slow revenue growth in the two largest General Fund revenues puts pressure on property taxes, the third largest General Fund revenue. This year $160,000 of property tax in the Debt Service Fund is moved to the General Fund since two bond issues were paid off in the Debt Service Fund. Legislative bill 432 eliminates the 5% delinquent tax allowance that entities can budget. In order to keep property tax receipts consistent with prior years and maintain a constant levy rate, it was necessary to increase property tax budgeted 5% due to LB 432. The tax from the 5% delinquency allowance in the Debt Service Fund and Economic Development Fund is budgeted in the General Fund. Total General Fund property tax is budgeted to increase $528,898 or 24.04%. Total General Fund revenue remains relatively flat, increasing from $22,565,776 last year to $22,586,514 in the current year, a.09% increase. Total General Fund expenditures are budgeted to decrease $341,344 or 1.38% this year. An $812,051 decrease in the transfer of sales tax to the Capital Projects Fund is the primary reason for the decrease. Without the transfer of sales tax in either the prior year or current year, there is a $470,707 or 2.12% increase in expenditures this year. Due to slow growth in the two largest General Fund revenues, the City Administrator recommended the department and divisions present their Level 2 budgets to the Mayor and Council for consideration during budget work sessions. The Level 2 budgets allow a 2% increase in expenditures. With a 2.5% cost of living adjustment, some items had to be cut from the capital expenditure and operations and maintenance account to avoid increasing the levy rate. The Police Division and Fire Division had the largest increases in expenditures, increasing $271,768 and $134,418, respectively. The addition of a Public Safety Director split between the two divisions, and budgeting two attorneys in the Police Division for the first part of the year while transitioning to a new City Attorney, are the cause of the increases above the 2% allowed in the Level 2 budgets. In addition to the Library Division decrease due to the sales tax transfer, the Administration Division also had a decrease. The Administration Division decreases $30,235 or 0.76% primarily due to a decrease in the transfer of keno funds to the Capital Projects Fund. The remaining divisions had increases within the 2% allowed in the Level 2 budgets. The City is able to increase budgeted ending General Fund balance $279,187 or 9.76%. The City increased ending balance $112,221 for the 5% delinquent tax allowance that was eliminated by legislative bill 432 and added to COUNCIL ORDINANCE, STATE FORMS, & LID COMMITTEE REVIEW 68

69 budgeted property tax. Of the $3.1 million ending balance, $478,106 of this is either restricted or held by the County Treasurer resulting in unrestricted General Fund cash budgeted at about $2.7 million or 12.7% of operating expenditures. The Government Finance Officers Association recommends minimum General Fund unrestricted cash reserves of two months, or about 16% of operating expenditures, and the City has been increasing budgeted General Fund ending balance for the last nine years. Most similar sized Nebraska cities and area governmental entities have a much higher ratio of ending fund balance to expenditures. As LB 989 preempts this charge, our conclusions are affected accordingly. The FY budget complies with LB 989 and uses local sales tax for property tax relief. The City could have increased property tax an additional $1,476,362 and still complied with LB 989. Sincerely, Property tax budgeted in the Economic Development Fund remains the same as last year. Property tax in the Debt Service Fund decreases $160,000 due to moving it to the General Fund. The Vehicle Parking Fund levies the maximum 35 cents per $100 of valuation allowed by state statutes. The assessed valuation for the Vehicle Parking District increased 6.58%; which along with the 5% adjustment made due to LB 432, increased property taxes $9,538. The City s levy rate remains the same as the prior year at and is projected to remain the fourth lowest of the 30 Nebraska first-class cities. Our function is not to oppose nor advocate certain budgetary policy decisions of the Mayor and City Council. Our responsibility by City ordinance is to review the General Fund revenues as they are impacted by Ordinances No and No and inform Norfolk citizenry as to two factors: (1) the use of local sales tax for property tax relief; and (2) the impact of the City s self-imposed budget limitation ordinance on proposed General Fund Revenues. COUNCIL ORDINANCE, STATE FORMS, & LID COMMITTEE REVIEW 69

70 Fund Description The City of Norfolk utilizes a fund structure as outlined below. A fund is an accounting entity that has a set of self-balancing accounts and records all financial transactions for specific activities or governmental functions. Funds are divided into various types. Funds used to account for a state or local government s governmental type activities and are known as governmental funds. Fund types used to account for a government s business-type activities and are known as proprietary funds. Following is the City of Norfolk s fund structure: GOVERNMENTAL FUNDS: General Fund The General Fund accounts for of the financial resources of the city except those required to be accounted for in another fund. It serves as the primary reporting vehicle for current governmental operations including Police, Fire, Culture and Recreation, Public Works, and General Administration. Special Revenue Funds Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources which, by law, are designated to finance particular functions or activities of government and which therefore cannot be diverted to other uses. The City has the following special revenue funds: City Highway Allocation Fund This fund is used to account for the City s share of motor fuel tax revenues that are legally restricted to street expenditures. 70 Vehicle Parking Fund This fund is used to account for the revenues and expenditures of Parking District No. 1. This is a special taxing district, encompassing the downtown area, created for the purpose of providing and maintaining off-street parking lots for employees and customers of the downtown businesses. Community Development Block Grant Fund This fund is used to account for various community development grants and related program income. The use of these funds is restricted to community and economic development activities, as defined in the grant agreements. Specialized Narcotics Abuse Reduction Effort Fund This fund is used to account for contributions from various local law enforcement agencies in a nine county area of northeast Nebraska. The contributions are used for drug enforcement actives in the area. This fund was previously funded with federal grant revenue received through the Nebraska Crime Commission. 911 Fund This fund is used to account for proceeds from a $1.00 per month surcharge on each local exchange access telephone line which physically terminates within the City of Norfolk s designated 911 telephone service area. Beginning September, 2007 the City expanded its telecommunication occupation tax with 2/3 of the expanded occupation tax going to the 911 Fund. These funds are used for the provision of 911 emergency telephone services to various emergency response agencies in the City of Norfolk s 911 telephone service area. This service area covers parts of four (4) counties and receives emergency BUDGET PROCESS - FUND DESCRIPTION

71 phone calls for the provision of law enforcement, fire, and rescue services. Region 11 Emergency Management Fund This fund is used to account for revenue received for emergency management in Antelope County, Pierce County, Madison County, and the City of Norfolk. These governments contribute to the fund based on population. This fund also accounts for emergency management grants received for the area. Storm Water Management This fund is used to account for revenue to implement the Storm Water Management Plan required by the Nebraska Legislature in The Nebraska Department of Environmental Quality (NDEQ) grants funds according to population size and there must be a 20% match from the community. LB840 Economic Development Fund This fund is used to account for receipts from the levy of property taxes on real and personal property for the LB 840 economic development program. LB 840 was the legislative bill approved by the Nebraska Legislature in 1991 adopting the Local Option Municipal Economic Development Act. This Act authorizes cities to spend local sales or property tax revenue for economic development including offering incentives to attract business. Wireless 911 Fund This fund was created pursuant to an agreement with the Nebraska Public Service Commission to track receipts from the State for wireless 911 taxes. The funds are used for equipment, software, maintenance, and any other 71 expenditures necessary for the provision of wireless 911 service. Economic Development Operating Fund This fund was created to account for the operations of the Economic Development Fund. Madison County and the City of Norfolk both contribute equally to fund personnel costs, travel, and other necessary operating expenses relating to economic development. This contribution is adjusted annually according to the CPI. Debt Service Fund The Debt Service fund is used to account for the accumulation of resources for the payment of general obligation bond principal and interest from governmental resources, and special assessment bond principal and interest from special assessment levies when the government is obligated in some manner for the payment. Capital Projects Fund The Capital Projects Fund is used to account for the acquisition and construction of assets included in the Capital Improvement Program, generally those assets costing $50,000 or more, other than those financed by propriety funds and trust funds. Special Assessment Funds The Special Assessment Funds are used to account for the construction and financing of infrastructure fixed assets financed through special assessment against property benefited. BUDGET PROCESS - FUND DESCRIPTION

72 PROPRIETARY FUNDS: Two fund types are used to account for a government s business-type activities (activities that receive a significant portion of their funding through user fees). These are the enterprise funds and the internal service funds. Enterprise Funds The enterprise funds account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the government is that the cost of providing goods or services to the general public on a continuing bases be financed or recovered primarily through user charges or where the government has decided that periodic determination of net income is appropriate for accountability purposes. Enterprise funds budgeted and included in the document are: Water Sewer Solid Waste Management Internal Service Funds Internal service funds are used by state and local government to account for the financing of goods or services provided by one department or agency to other departments or agencies on a cost reimbursement basis. Group Insurance Fund The Group Insurance Fund is used to account for the accumulation of resources and fund claims under the City s self-insured health and dental plans. agency funds. These funds are not part of the budget, but are a part of the City s audited financials. Trust Funds Trust funds are used to account for assets held by the City in a trustee capacity such as the following pension trust funds, which are used to account for the accumulation of resources for pension benefit payments to qualified employees: Firemen s Retirement Fund Police Retirement Fund Civilian Retirement Fund Agency Funds Agency funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. Community Development Agency Fund This fund is used to account for the accumulation of resources for payment of principal and interest on tax increment financing bonds issued by the Community Development Agency of the City of Norfolk. These bonds were issued to provide the long-term financing for the redevelopment of various blight and substandard areas around the City of Norfolk. These bonds are payable only from real estate taxes on certain property located within these plan areas and do not constitute general obligations of the Agency or the City. FIDUCIARY FUNDS NOT BUDGETED: Two fund types are used to account for assets held by the City in trust or agency capacity. These are the trust funds and the 72 BUDGET PROCESS - FUND DESCRIPTION

73 Financial Policy and Basis of Budgeting To accomplish efficient tracking and control spending, all funds are budgeted on a line-item cash basis, which differs from the financial statements that are prepared in accordance with generally accepted accounting principles. Under this basis Fund Balance is the funds cash balance. Under the cash basis of accounting, transactions are recognized when cash is received or paid. Cash basis accounting measures financial results for a period as the difference between cash received and cash paid. A balanced budget is when available funds beginning cash plus revenues equal or exceed expenditures. The City upholds the following budgetary and financial policies to achieve a balanced budget, while maintaining or enhancing current service levels: Conservative revenue projections. In most cases revenues are budgeted at the amount actually received in the prior year even for revenues, which show consistent growth. Competitive employee compensation through an annual comparability study encompassing salary and benefits of eight first class cities. Adequate fund reserve for the General Fund as established by the City Council at a target of $2,458,424 plus restricted funds and cash held by the County Treasurer. Ordinance No adopted August 15, 1988 requires a minimum General Fund ending balance of $1 million. If adjusted for inflation, this would be $2 million. Sound cash management and investment. Cash and investments are pooled. Investments are limited to fully collateralized local bank Certificates of Deposits (CDs) or U.S. Treasury obligations with a maximum maturity of one year. The operating account is bid with the local banks every four years to achieve the highest return net of expenses. Sound debt management. Annual and multi-year review of capital projects. Utilizing long-term financial plan to monitor the effect of large capital projects and revenue and expenditure trends out ten years along with expected levy rates. The basis of accounting the City uses for purposes of financial reporting is in accordance with generally accepted accounting principles (GAAP), which is not the same basis used in preparing the budget document. Governmental funds are required to use the modified accrual basis and proprietary funds are required to use the accrual basis of accounting in GAAP financial statements whereas the cash basis of accounting is used in those same funds for budgetary purposes. Disparities between GAAP and the budgetary basis of accounting often occur because regulations governing budgets differ from GAAP. Nebraska cities are required to budget on the cash basis. The timing of revenue and expenditures are different under the City s GAAP basis of accounting than under the budgetary basis of accounting. In GAAP accounting revenues are recognized in governmental funds as soon as they are both measureable and available whereas revenue recognition under the budgetary basis of accounting is deferred until amounts are actually received in cash. Under the GAAP basis of accounting used in proprietary funds, the receipt of longterm debt proceeds, capital outlays, and debt service principal payments are not reported in operations, but allocations for depreciation and amortization expense are recorded. The opposite is true under the budgetary basis of accounting. The BUDGET PROCESS FINANCIAL POLICY/BASIS OF BUDGETING 73

74 Special Assessments Fund structure used for budgetary purposes differs from the structure used in the City s GAAP financial statements. The City s budget document does not include trust funds or agency funds that are included in the GAAP financial statements. Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse; that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles; and present supplementary schedules comparing budget to actual. Detailed reports are distributed monthly to all divisions for review and to facilitate internal control. The budget modification process depends on the type of modification being sought. If a department or division head wishes to purchase unbudgeted machinery, tools or equipment, he can choose to do so by exchanging it for another item within the same account. If an exchange is not possible and the item is not deferrable, the City Administrator must review and approve the request, or at his discretion, the Mayor and City Council. Exchanges of budgetary authority between accounts is generally not allowed. If any piece of equipment fails and was unforeseen at budget time, purchasing normally approves replacement up to $1,500. Amounts over $1,500 are approved by the City Administrator or the Mayor and City Council. if actual expenditures for a proprietary function exceed budget, the governing body adopt a proprietary function reconciliation statement within 90 days after the end of the fiscal year reflecting any difference between the adopted proprietary budget statement and the actual expenditures for the year. After adoption, the proprietary function reconciliation statement must be published in a newspaper of general circulation. If expenditures exceed the budget by more than 10%, the proprietary function reconciliation statement shall only be adopted following a public hearing. Legally a municipality is not required to amend its budget if total expenditures for all non-proprietary functions are not exceeded. If total expenditures are exceeded, the budget must be formally amended after a public hearing. Notice of this hearing must be published at least five days in advance and a copy of the revised budget as adopted, filed with the County Clerk and Auditor of Public Accounts. The Municipal Proprietary Function Act allows Cities to separately adopt budgets for their proprietary functions. The City of Norfolk has three proprietary functions: Water, Sewer and Solid Waste. The budget for these funds is adopted under the Municipal Proprietary Function Act. The Act requires that BUDGET PROCESS FINANCIAL POLICY/BASIS OF BUDGETING 74

75 Debt Policy The State of Nebraska has no mandated restrictions or limits for municipalities indebtedness; therefore, the City of Norfolk developed the following policies to insure sound financial management of the City s debt: 7. The last independent bond rating the City received was on the Series 2016 Recreation Facilities Refunding Bonds. Moody s rated this issue Aa3. The justification and impact on current and future operations of items purchased with new debt issues are detailed in the Capital Improvement Summary section of this document. 1. The City will not issue bonds with maturities longer than the estimated useful life of the projects being financed. 2. Refundings for interest rate savings are not normally undertaken unless the present value of the interest rate savings is at least 4% of the refunded principal. 3. Normally, advance refundings for the purpose of interest rate savings are not undertaken unless the escrow account can be invested at an interest rate at least equal to the rate on the refunding bonds. 4. Revenue bond principal and interest are payable solely from the revenues of the enterprise funds and are not general obligation debt of the City. 5. The debt of the City s three enterprises is legally backed by revenue of all three enterprises (Combined Utility); however, the City s policy is to pay the debt issued for each only out of revenues of the enterprise receiving the benefits. 6. All City special assessment debt is issued with a general obligation backing; however, the portion of this debt issued to finance projects which specially benefit particular properties are repaid from assessments against the properties benefited. 75 BUDGET PROCESS DEBT POLICY

76 Capital Improvement Policy 1. The City is required to submit a six year Street Improvement Plan (SIP) to the Nebraska Department of Roads by March 1 of each year. The City also prepares a complete capital improvement program (CIP) for all capital outlays for the next ten years costing in excess of $50,000, which is approved as part of the budgeting process. 2. Each capital outlay meeting this criteria is identified along with a description of the project and its relationship to other projects. Project expenditures by years are estimated along with total project cost. Project income and future impact on the operating budget related to the project after completion are identified. 3. Projects are ranked in four categories urgent - Project cannot reasonably be postponed because it will provide a remedy for conditions dangerous to citizen health, welfare and safety or it brings the municipality into compliance with legal requirements. necessary - Project should be carried out within a few years because present service capability will be over extended. desirable - Project needed for additional departmental efficiency to improve service delivery or to conserve future public funds. deferrable - Project needed for ideal operation, either not adequately planned or must be reviewed regarding community needs. 4. Proposed funding sources for the project are identified Department and division requests are submitted to the risk manager/purchasing agent for inclusion in the CIP and long-term financial plan. 6. The Council reviews the CIP as part of the long-term financial planning process and incorporates the upcoming year of the CIP in the budget. 7. The CIP is forwarded to the Norfolk Planning Commission for review. The SIP is separately considered so it can be forwarded to the Department of Roads by March 1 due date. 8. The Planning Commission reviews and forwards its recommendation to the City Council. 9. Formal public hearings in front of the City Council are held to consider the SIP and CIP. 10. After the public hearings, the plans, as amended by the City Council, are formally approved and the SIP forwarded to the Nebraska Department of Roads. 11. Any debt issued to finance projects must fall within the City's debt policies as described elsewhere in the budget. 12. All General Fund CIP items are budgeted in the Capital Projects Fund and funded by transfer from the General Fund budgeted in the Administration Division. The transfer for those items purchased with general revenues and not some dedicated revenue source, such as bonds, is consistent from year to year adjusting for inflation. The anticipated future impact on debt service of capital items purchased through debt issues are detailed in the Debt Summary section of this document. BUDGET PROCESS CAPITAL IMPROVEMENT POLICY

77 Mid/Late January Late January Early February Mid February Mid March Council Retreat Council priorities are identified and any large capital items associated therewith are included in the CIP. Issuance of Capital Improvement Projects (CIP) Instructions Memo is sent to all divisions and department heads requesting CIP requests for next ten years Norfolk Planning Commission Norfolk Planning Commission reviews the proposed Street Improvement Plan (the first six years of the Street portion of the CIP) and amends as needed. Council Hearing on the Street Improvement Plan Street Improvement Plan is approved and forwarded to the Nebraska Department of Roads by the March 1 due date. Departmental CIP Submittals Every department submits on each capital item request: (1) description (2) cost (3) source of funding (4) justification (5) impact analysis (6) construction period-if applicable April CIP Committee Review Plans are drafted by the committee for the CIP. Late April Late April City Administrator s Review CIP plan is reviewed with the CIP committee. Issuance of Budget Instructions Operational supplies and utilities cost variables for the upcoming budget year and cost-of-living assumption are included. Each department or division is instructed to submit the budget in four service level options, two that reduce expenditures and services, after accounting for inflation, and two that either maintain or improve services. 77 BUDGET PROCESS BUDGET CALENDAR

78 May Preparation of Revenue Projections and Departmental Budgets Expenditure requests are prepared in four levels: (1) Assumes a one percent increase in the amount of funding authorized in the prior year, which due to inflation is a reduction in real dollar terms. (2) Assumes a two percent increase in the amount of funding authorized in the prior year, which due to inflation is a reduction in real dollar terms. (3) Assumes a three percent increase over prior year authorized budget. (4) Assumes a variable percentage increase between three and six percent. Late May Revenue Projections and Departmental Submittals Personnel, operations and maintenance, and capital outlay requests along with goals/objectives and impact analysis are submitted. June Balancing Process Early July Early July Long-term Financial Plan updates The long-term financial plan is updated to reflect the budget. City Administrator Review Sessions Each department head reviews their budget requests with the City Administrator Late July Council Work Sessions The Council reviews proposed budget, proposed CIP, and the long-term financial plan in work sessions. August 1 Political Subdivisions submit Requests Preliminary requests for levy allocations to subdivisions presented to City Council. Early August Townhall Meeting The Mayor and Council hold a town hall meeting to solicit citizen comments on the budget and long-term financial plan including the CIP. Early August Planning Commission Review of CIP Planning Commission forwards their recommendation to the City Council. Early August Proposed Budgets Placed on the City s Web Site for Citizen Review 78 BUDGET PROCESS BUDGET CALENDAR

79 August 20 Late August Late August September 1 Early September Early September September 10 September 15 September 20 October 1 October 13 Deadline for Certification of the Current Value of Taxable Property The County Assessor certifies the current taxable value of the taxable property subject to the applicable levy. Property Tax Relief Assurance/Budget Limitation Compliance Review Committee Review the proposed budget for use of sales tax for property tax relief and compliance with lid law. They issue a report to the City Council. Budgets Distributed The budget is electronically distributed to Mayor, City Council, Department and Division managers. Summary budget booklets are also distributed to the Mayor and City Council as well as other entities and citizens upon request and available at the budget hearing. Final Allocation for Public Subdivisions City Council determines final levy authority for subdivisions. Proposed Budget and CIP Filed with City Clerk and Public Hearing Notice published at least five days prior to hearing. Citizen s comments are obtained and reviewed. Adoption of Final Budget and CIP Appropriations ordinance approved and submission of State forms. Ordinances require three readings unless the rules are suspended by super-majority vote. County Clerk sets Preliminary Property Tax Rate Rates are set for each public subdivision by applying the prior year property tax request to the new valuation. Preliminary Property Tax Rates Published in Newspaper Deadline for County and State to receive Approved Budget Fiscal Year Begins Property Tax Levy Adopted by County Board Prior to this, the City Council may change the property tax levy from the preliminary rate by a majority vote of the Council after a special public hearing. 79 BUDGET PROCESS BUDGET CALENDAR

80 Budget Preparation The FY municipal budget preparation involves interaction of City department and divisions, Planning Commission, Finance Committee, City Council, and the general public. The process begins with the issuance of capital improvement projects (CIP) instructions. (The detailed capital improvement policy and procedure is discussed in section 3 of this budget.) The Finance Officer issues the budget instructions in late April. These instructions require each department or division to submit its request in four service level options, two that reduce expenditures and services, after accounting for inflation, and two that either maintain or improve services. The four service level options are outlined as follows: Decremental Level #1: This level assumes a one percent increase in the amount of funding authorized for the department or division from the previous fiscal year. Though a specific decreased percentage is not required, this forces the department or division manager to decrease services or expenditures until the funding level absorbs the projected impact of inflation. Decremental Level #2: This level assumes a two percent increase in the amount of funding authorized for the department or division from the previous year. The City maintains salary and benefit comparability according to criteria of the Nebraska Commission of Industrial Relations, which may require allocations to personnel accounts at the expense of other line items. Maintenance Level #3: This level assumes a three percent increase in the amount of funding authorized for the department or division from the previous year. This level is the TARGET and will be the level that the budget review committee focuses their initial review. 80 Model Level #4: This level assumes a variable percentage increase between three and normally up to six percent increase in the amount of funding authorized for the department or division from the previous year. This level will be utilized if the manager believes there are serious needs still unmet. This category, however should be more than budgetary wishful thinking and be calculated in a serious, realistic manner. Most budget requests are organized into three major categories of line items: (1) personnel; (2) operations and maintenance; and (3) capital outlay. Others include debt service. Fixed costs (i.e. utilities, telephone, debt service, etc.) are likely irreducible and are budgeted the same in all service levels. Each division provides supporting detail, which includes a narrative of all line items, individually identified by expenditure code and description, of each proposed service level. In every service level the manager must provide their frank assessment of the budgetary trade-offs. These four service level options are reviewed by administration staff in June and the budget brought into balance and the longterm financial plan updated to reflect the budget. In July each department or division head reviews their budget requests with the City Administrator. Council work sessions are then held to review the proposed budget and CIP. A town hall meeting is held to solicit citizen input on the proposed budget and longterm financial plan. The preliminary budgets are put on the City s web site for citizen review and comments and in mid- September the Council holds the formal budget hearing after which the budget is adopted. BUDGET PROCESS BUDGET PREPARATION

81 BUDGET SUMMARY Fiscal Year SPECIAL CAPITAL SPECIAL REVENUES GENERAL FUND REVENUE FUNDS* DEBT SERVICE FUND PROJECTS FUND ASSESSMENT FUNDS ENTERPRISE FUND** INTERNAL SERVICE FUND TOTAL Beginning Fund Balance 4,997,407 4,088,578 3,809,709 4,194, ,182 10,245,830 4,706,951 32,851,649 Taxes 13,712, ,661 2,373, ,793,049 Licenses & Permits 265, ,945 Inter-Govern. Revenue 532,713 4,916,291 40,000 1,505, ,994,230 Charges for Service 2,200, ,717,550 3,170,701 14,089,147 Rent & Other Revenue 5,241,148 86, ,500-78,730-5,791,718 Interest Income 18,100 17,710 24,000 17,100 13,601 48,400 35, ,208 Transfers 615, , ,301 2,762, , ,832,316 Proceeds of Debt ,535,000 3,105,000 13,475,000-19,115,000 Special Assess. Levied , ,180 Non-revenue Receipts - 21, ,559 Total Revenue 22,586,514 5,956,061 2,562,977 7,205,819 3,284,303 22,319,680 3,205,998 67,121,352 Total Funds Available 27,583,921 10,044,639 6,372,686 11,400,811 4,092,485 32,565,510 7,912,949 99,973,001 EXPENDITURES Personnel 16,375, , ,414,443 3,326,122 22,373,908 Operations & Maintenance 4,562,118 2,842,316 36, ,200 56,000 4,760, ,753 12,790,333 Capital Outlay 410,200 4,269,700-9,583,822 2,983,000 18,428,740-35,675,462 Debt Service - 401,393 1,876, ,977 1,112,785-4,049,207 Transfers 3,095, , , ,832,316 Total Expenditures 24,444,085 8,385,779 2,034,434 9,899,022 3,697,977 26,716,054 3,543,875 78,721, Ending Balance 3,139,836 1,658,860 4,338,252 1,501, ,508 5,849,456 4,369,074 21,251,775 Total Funds Accounted For 27,583,921 10,044,639 6,372,686 11,400,811 4,092,485 32,565,510 7,912,949 99,973,001 * Special Revenue Funds include the following funds: CHAF, Vehicle Parking, CDBG, SNARE, 911 Fund, Region 11, Storm Water, LB 840 Economic Development, Wireless 911, and Economic Development Operating. **Enterprise Funds include the following funds: Water and Sewer Maintenance, Water Pollution Control, and Solid Waste Management. 81 SUMMARY BUDGET

82 Enterprise Fund 22,319, % Special Assessment Fund 3,284, % Capital Project Fund 7,205, % Debt Service Fund 2,562, % Enterprise Fund 26,716, % Special Assessment Fund 3,697, % Capital Project Fund 9,899, % Debt Service Fund 2,034,434 Special Revenue Funds 2.58% 8,385, % Internal Service Fund 3,205, % Special Revenue Funds 5,956, % Internal Service Fund 3,543, % SOURCE OF FUNDS FY Taxes 13,712, % General Fund 22,586, % USE OF FUNDS FY General Fund 24,444, % Licenses & Permits 265, % Transfers 615, % Inter-Govern. Revenue 532, % Charges for Service 2,200, % Rent & Other Revenue 5,241, % Interest Income 18, % Personnel 16,375,973 Operations & Maintenance 20.80% 4,562, % 82 Capital Outlay 410, % Transfers 3,095, % General Fund increases $20,738 or 0.09% primarily due to increases in intergovernmental revenue, charges for service, rent and other revenue, and interest income. The Special Revenue Funds increase $151,139 or 2.60% primarily due to an increase in intergovernmental revenue. Debt Service Fund decreases $114,854 or 4.29% primarily due to a decrease in property taxes. The Capital Projects Fund increases $653,588 or 9.98% primarily due to the addition of grants and proceeds of debt to fund projects. The Water, Sewer and Solid Waste Funds increase due to budgeting bond issues to fund capital projects. General Fund decreases $341,344 or 1.38%, primarily due to a decrease in transfers of sales tax for the library renovation project. The Special Revenue funds decrease primarily due to decreases in capital projects budgeted. The Debt Service Fund decreases $333,627 or 14.09% primarly due to Public Safety and Flood Control bonds maturing. The Special Assessment Fund increases $344,617 or 10.28% primarily due to paying off a portion of bond anticipatoin notes. The Enterprise Funds increase $3,049,113 or 12.88% due to capital outlay projects. SUMMARY BUDGET

83 BUDGET SUMMARY HISTORY Dollar Percent Increase Increase REVENUES ACTUAL ACTUAL ESTIMATED BUDGET BUDGET (Decrease) (Decrease) Balance Brought Forward 33,723,455 40,568,355 38,595,922 36,187,256 32,851,649 (3,335,607) (9.22%) Taxes 15,275,902 16,870,327 17,213,201 17,043,634 16,793,049 (250,585) (1.47%) Licenses & Permits 322, , , , ,945 (18,560) (6.52%) Inter-Govern. Revenue 4,915,175 4,809,525 6,926,250 6,486,985 6,994, , % Charges for Service 12,661,531 13,393,210 13,875,374 13,660,853 14,089, , % Rent & Other Revenue 6,159,921 5,500,841 5,858,051 5,509,268 5,791, , % Interest Income 69,390 83, , , ,208 65, % Transfers 4,537,380 4,735,133 4,835,469 4,730,288 3,832,316 (897,972) (18.98%) Proceeds of Debt 3,930,000 10,565,613 1,520,000 15,315,000 19,115,000 3,800, % Special Assess. Levied 187, , ,602 68,554 44,180 (24,374) (35.55%) Non-revenue Receipts 570, ,873 42,655 25,906 21,559 (4,347) (16.78%) Total Revenue 48,630,268 56,869,992 50,914,069 63,233,499 67,121,352 3,887, % Total Funds Available 82,353,723 97,438,347 89,509,991 99,420,755 99,973, , % EXPENDITURES Personnel 18,873,859 19,790,630 20,601,975 21,638,487 22,373, , % Operations & Maintenance 8,131,833 11,183,026 10,989,385 12,206,789 12,790, , % Capital Outlay 6,821,759 7,815,070 14,765,195 35,086,295 35,675, , % Debt Service 3,420,537 15,318,566 5,466,318 4,498,995 4,049,207 (449,788) (10.00%) Transfers 4,537,380 4,735,133 4,835,469 4,730,288 3,832,316 (897,972) (18.98%) Total Expenditures 41,785,368 58,842,425 56,658,342 78,160,854 78,721, , % Ending Balance 40,568,355 38,595,922 32,851,649 21,259,901 21,251,775 (8,126) (0.04%) Total Funds Accounted For 82,353,723 97,438,347 89,509,991 99,420,755 99,973, , % 83 SUMMARY BUDGET

84 FUND BUDGET SUMMARY FUND CODE: 001 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 5,169,854 6,011,559 5,617,601 5,080,302 4,997,407 (82,895) (1.63%) Taxes 12,083,226 13,631,397 13,996,346 13,841,805 13,712,712 (129,093) (0.93%) Special Assessments Levied Licenses & Permits 322, , , , ,945 (18,560) (6.52%) Intergovernmental Revenues 718, , , , ,713 6, % Charges for Service 1,880,260 1,979,233 2,059,100 2,053,459 2,200, , % Rent & Other Revenue 5,668,876 5,274,193 5,263,448 5,213,738 5,241,148 27, % Other Interest Income 1,997 4,511 15,600 11,000 18,100 7, % Non-Revenue Receipts 668, , , , ,000 (20,000) (3.15%) Total Revenue 21,344,076 22,531,718 23,076,205 22,565,776 22,586,514 20, % Total Funds Available 26,513,930 28,543,277 28,693,806 27,646,078 27,583,921 (62,157) (0.22%) Administration 3,699,969 3,820,548 3,909,352 3,964,472 3,934,237 (30,235) (0.76%) Engineering 531, , , , ,028 15, % Street Maintenance 2,567,080 2,705,704 2,619,070 2,907,361 2,942,589 35, % Park Maintenance 1,534,522 1,468,693 1,452,268 1,570,460 1,573,848 3, % Housing 445, , , , ,818 2, % Recreation 505, , , , ,184 10, % Library 2,211,986 4,002,249 4,173,925 4,195,603 3,411,306 (784,297) (18.69%) Fire 3,789,207 4,025,361 3,989,516 4,262,810 4,397, , % Police 5,217,235 5,286,086 5,630,771 5,750,079 6,021, , % Total Expenditures 20,502,371 22,925,676 23,696,399 24,785,429 24,444,085 (341,344) (1.38%) Ending Balance 6,011,559 5,617,601 4,997,407 2,860,649 3,139,836 * 279, % Total Funds Accounted For 26,513,930 28,543,277 28,693,806 27,646,078 27,583,921 (62,157) (0.22%) * Includes restricted funds of $90,167 for: World War II Memorial $6,347, Hazardous Material Program $29,970, and Housing Agency Bonds $53,850. Also includes $387,939 of cash held by County Treasurer. 84 GENERAL FUND

85 Ending Balance 3,139, % GENERAL FUND EXPENDITURES FY Distribution by Division or Function Administration 3,934, % Engineering 807, % Police 6,021, % Street Maintenance 2,942, % Park Maintenance 1,573, % Fire 4,397, % Library 3,411, % Recreation 850, % Housing 505, % Total General Fund budget decreases $62,157 or 0.22%. General Fund expenditures decrease $341,344 or 1.38% primarily due to a decrease in transfers of sales tax to the Capital Projects Fund for the library renovation project. The half-cent sales tax for the library renovation project expires March 31, GENERAL FUND

86 Administration Organizational Chart CITY ADMINISTRATOR FINANCE OFFICER PLANNER INFORMATION SYSTEMS MANAGER HUMAN RESOURCES DIRECTOR PUBLIC SAFETY DIRECTOR CITY CLERK SENIOR ACCOUNTANT ADMINISTRATIVE ASSISTANT PROGRAMMER/ ANALYST TECHNOLOGY & IMPLEMENTATION SUPPORT SPECIALIST ADMIN. SECRETARY/ PERSONNEL TECH. RISK MANAGER/ PURCHASING AGENT ADMINISTRATIVE ASSISTANT ACCOUNTANT CLAIMS COORDINATOR/ SECRETARY ADMINISTRATIVE ASSISTANT ACCOUNT CLERK III ACCOUNT CLERK III (2) LIBRARY DIRECTOR HOUSING DIRECTOR RECREATION COORDINATOR COMMUNICATIONS MANAGER 86 ADMINISTRATION

87 Mission Statement To coordinate response to the requests and needs of citizens; to implement the directives of elected officials and provide qualified staffing for all departments; to provide high quality reporting and accounting functions; to oversee the maintenance and preservation of all vital city documents; and to assure cost effectiveness in all purchases and sales of city supplies and services. Description of Office To oversee and integrate administrative responsibilities of the city that are under the direction of the Mayor and Council. Services Attends all meetings of the city council Investigates all affairs of the city and makes recommendations to the mayor and council Oversees and assesses the functions, duties, and activities of the various departments Keeps the Mayor and Council fully advised as to the financial condition of the city Responsible for preparation of annual budget Serves as public relations officer of city government; endeavors to investigate and adjust all complaints made or filed against the city; and cooperates with all community organizations to advance the best interests of the city and its citizens Accomplishments for Continued improvement of Economic Development Program. Continued improvement of internal and external City Communications and promoted customer service. Continued Active River Management Planning for Elkhorn River. Continued support/lobby of passage of the federal Mainstreet Fairness Act for level collection of remote sales tax. Continued progress on Sewer Master Plan and extensions to support new development. 87 Completion of development and adoption of a new Comprehensive Plan. Goals for Continue joint efforts with Madison County to provide a strong Economic Development Program for the area. Continue improvement of internal and external City Communications and strengthen customer service. Work with community and economic development groups to develop site ready land for new business siting. (Mayor and City Council Goal #1) Continue support/lobby of passage of the federal Mainstreet Fairness Act for level collection of remote sales tax. Complete active river management plan for Elkhorn River. (Mayor and City Council Goal #7) Continue progress on Sewer Master Plan and extensions to support new development. Explore partnership possibilities for water system extension south of Norfolk. Continue Trail Planning and Development in and around the community of Norfolk. (Mayor and City Council Goal #2) Develop and implement a street improvement program, including creative strategies to address gap-paving. (Mayor and City Council Goal #3) Continue lobbying/planning efforts for 4-lane highway development and completion to Norfolk. (Mayor and City Council Goal #1) Continue to create/support community efforts to increase housing development in and around community. (Mayor and City Council Goal #6) Facilitate recreation and development along the Elkhorn River, including adoption and implementation of overlay zoning regulations. Develop an implementation strategy for the landscape master plan, with particular emphasis on corridor beautification. (City Council Goal #3) ADMINISTRATION CITY ADMINISTRATOR

88 Mission Statement To support City operations by effectively procuring and utilizing municipal financial resources. Description of Office To obtain the financial resources to run City government, including collecting revenues, using these revenues as directed by the Mayor and City Council, investing the revenues prior to disbursement, and accounting for the entire process of collecting, spending, and custody. CITY CLERK Finance Officer Organizational Chart CITY ADMINISTRATOR FINANCE OFFICER Services Cash management Debt management Pension management Accounting and financial reporting Grant administration Budgeting SENIOR ACCOUNTANT ACCOUNTANT ACCOUNT CLERK III (2) 88 Serves as treasurer for the Community Development Agency of the City of Norfolk and the Northeast Nebraska Solid Waste Coalition Accomplishments for Worked with the software vender and City staff to further modify software and procedures to better utilize the new accounting software. Reviewed current blight designations and removed those that had been remediated allowing designation of new blight areas for redevelopment. Refunded the $1,510,000 of remaining 2011 City of Norfolk Facilities Corporation bonds realizing a new present value savings of $115,380. Worked with redevelopers on numerous tax increment financing projects including: Fountain Point, Nor-Park, Medelman s Lake, Skyline Apartments, SCM 10X, Meadow Ridge, DeLay Bank Building, and OCT Pipe. Goals for Work with the software vendor and City staff to get cash basis statements working correctly. Work with Black Hills and the Nebraska Department of Economic Development for payment of $1.4 million to Black Hills for the 8-inch natural gas pipeline from the Northern Natural gas pipeline near Bancroft to Norfolk once installation is finalized. (Mayor and City Council Goal #1). Work with consultant on annexation study. (Mayor and City Council Goal #1). ADMINISTRATION FINANCE OFFICER

89 Work with Redevelopers on tax increment financing projects. Research creative ways to share the costs of infrastructure in addition to traditional special assessment districts. (Mayor and City Council Goal #1). Develop a plan to fund additional trails. (Mayor and City Council Goal #2) Develop a plan to fund an accelerated street maintenance program. (Mayor and City Council Goal #3) Develop a plan to increase and maintain budgeted General Fund cash reserves of at least 16% of budgeted expenditures. (Mayor and City Council Goal #5) Performance Measures Actual Estimated Estimated Workload: Accounts Payable Checks Written 2,282 2,100 2,000 Water/Sewer Customers Billed 9,350 9,481 9,511 Water/Sewer Connection Fees Paid ADMINISTRATION FINANCE OFFICER

90 Mission Statement To effectively communicate with and act as a liaison between citizens, elected officials, and City staff. Description of Office Perform the functions of a municipal clerk including knowledge of State Statute requirements for first class cities; good management and supervisory skills; general knowledge of investment practices; writing and composition skills to ensure proper preparation of proceedings of all meetings, as well as oral and written communication skills; and maintain and preserve all vital city documents. ADMINISTRATIVE ASSISTANT City Clerk Organizational Chart CITY ADMINISTRATOR FINANCE OFFICER CITY CLERK Services ACCOUNT CLERK III Provide billing and collection of accounts receivable and all occupation taxes for the City Issue miscellaneous licenses and permits Preserve, microfilm and/or digitally archive all official records 90 Coordinate retention and disposition of all official records Supervise preparation and distribution of agenda packets for City Council meetings and publication to the City s web site Process and secure the execution of all action items on council agendas Prepare and maintain official minutes of meetings Publish legal notices Ensure all City ordinances are published in the Official City Code on the City s web site Daily deposits of City funds Daily merchant card payment processing Research, prepare and implement applicable cost reduction programs Monitor cash flow and invest all City funds Maintain Administration, Finance and About Norfolk web sites Accomplishments for Publication of all City ordinances to the Official City Code on the City s web site Reorganization/disposal of obsolete records according to Records Retention Schedules Attended Northeast Nebraska Economic Development District meetings as the City s Council of Officials representative for Norfolk Presentation on City Clerk duties at the Norfolk 101: Citizens Academy Updated property tax charts and graphs and published to the Finance web page Updated retail tobacco license holders list for 2017 and ed to the Department of Health and Human Services Provided the City s HIPAA policy and training information to Administration, Engineering and Economic Development staff as an annual review of the regulations Submitted quarterly Unemployment reports to the State of Nebraska ADMINISTRATION CITY CLERK

91 Submitted enrollment revalidation documentation to Wisconsin Physicians Service Insurance Corporation (WPS Medicare) as required every five years and received approval Goals for Cross-train staff on Transfer Station and NNSWC end of month payment reports and reconciliations Records management to conform with State Statue regulations on disposal of records Continued electronic storage of records Implement electronic filing & recording legal documents Continue setting up more customers to accept ed invoices Review and assist with implementation of acceptance of merchant card payments in-person and at additional city facility locations Performance Measures Actual Estimated Estimated Demand: City Council Meetings Work Session Meetings Documents Filed and Recorded with Register of Deeds Receipts 58,146 59,000 60,000 Ordinances Resolutions Workload: Ambulance Invoices 1,567 1,500 1,550 Ambulance Invoices ($) $1,018,096 $1,00,000 $1,00,000 Ambulance Accounts to Collection Ambulance Accounts to Collection ($) $156,173 $100,000 $100,000 Bike Licenses Issued Scooter Licenses Issued Dog/Cat Licenses Issued 935 1,000 1,000 Handicap Permits Issued Parking Tickets Issued Parking Tickets Paid Effectiveness: Annual Cash Long/Short (8.59) $0.00 $0.00 Frequency of Cash Long/Short Storage Space Freed (in cubic feet) (1 cubic foot = approximately 2,000 documents) ADMINISTRATION CITY CLERK

92 Mission Statement To support and promote managed development, through sustainable planning and zoning practices, within the City of Norfolk and its extraterritorial jurisdiction. Description of Office To manage development and zoning proposals while responding to community needs. Planner Organizational Chart CITY ADMINISTRATOR Accomplishments for Adoption of the new Comprehensive Plan. River Overlay District code in process. Planning Commission Secretary responsibilities transferred to new employee. Airport Overlay District code and map updated per State. Revised code throughout the year, as necessary. Goals for Begin update of the complete zoning and subdivision ordinances to correspond with the new comprehensive plan. Coordinate with other staff to put code in place to have the ability to work with the new communication tower specialist. Revise floodplain code based on the Nebraska Model Floodplain Ordinance Update. ADMINISTRATIVE ASSISTANT PLANNER Performance Measures Actual Estimated Estimated Demand: Planning Commission Meetings City Council Meetings Board of Adjustment Meetings Services Assist citizens with zoning related needs Administration of floodplain regulations Assist developers with development of new subdivisions, commercial building and city wide zoning regulations Prepare and maintain a comprehensive plan Implement provisions of the zoning ordinance Assist Board of Zoning Adjustment and contact for those citizens requesting an appeal before the Board 92 Workload: Preliminary Plats Final Plats Zoning Changes Amend Comprehensive Plan Amend City Code Conditional Use Permits Lot Boundary Changes Hard Surface Waiver Sidewalk Waiver Planned Development (new or abandoned) Redevelopment Plan ADMINISTRATION PLANNER

93 Mission Statement To support the information systems needs of our elected officials and all City divisions. To improve efficiency, accuracy, and information accessibility through the use of technology. To encourage the availability of necessary information technology related infrastructure and skills within the community. Description of Office To manage, operate, maintain and secure all computers and related technology across all agencies of the City; store, manage, and secure information and provide communication links between agencies and information systems. Services Analyze the needs of each agency and select new computer hardware and software to meet those needs Implement computer hardware and software solutions across all City divisions Repair and maintain personal computers, printers, networking equipment, and associated peripherals Design and develop new software systems Manage and maintain the citywide Ethernet network Manage and maintain the citywide fiber optic network Manage and maintain the citywide phone system Manage and maintain security for all data and computer systems Provide support and training for computer users across all agencies of the City Promote competitive high-speed low cost telecommunications Information Systems Manager Organizational Chart PROGRAMMER/ANALYST CITY ADMINISTRATOR INFORMATION SYSTEMS MANAGER TECHNOLOGY & IMPLEMENTATION SUPPORT SPECIALIST 93 Accomplishments for Relocated fiber optic cables entering the Library in preparation for renovation work. Implemented new routers and public and private wireless access points in City buildings and Parks. Continued to publish articles, information, and videos to the City website and to social networking sites to improve communications with our citizens. Worked with other partners to enhance broadband access in Norfolk. Worked on the design of cabling, security, and video systems for the Library expansion and renovation. Implemented replacement alarm receiver and backup unit at the Police division. Implemented new backup hardware and software to support ever growing data storage needs. Implemented new print management software and hardware in the Library. ADMINISTRATION INFORMATION SYSTEMS

94 Assisted the Library expansion and renovation project through building, cabling, security, and audio video design and implementation. Rolled out access and training on the new oblique aerial photography. Expanded video security systems at the City facilities. Implemented on-line access and submission of many Preventive Bureau forms. Goals for Assist in design and implementation planning for the new public safety communications tower and radio system. Implement new weather alert hardware and software. Work with other partners to enhance broadband access in Norfolk and economic development. Analyze options for new content management system and revamp of the City website. Upgrade archive server and software. Replace main City wide data server. Transition from shared fiber connection for Internet service to independent fiber service. Assist the Library expansion and renovation project through building, cabling, security, and audio video design and implementation. (Mayor and City Council Goal #8) Install new video security systems at the Fire division. Implement new wireless hardware and software in City facilities, and modernize existing. Continue to analyze security risks and best practices to protect City information systems. Convert Fire division NFIRS software to different software or to a newer hosted version. Implement new in-car cameras and video archive server at the Police division. Implement in person credit card acceptance at Administration and Fire. 94 Performance Measures Actual Estimated Estimated Demand: Number of Computer Users Workload: Personal Computers Supported Peripheral Devices Supported Phone Devices Supported Packaged Software Applications Supported Custom Software Applications Supported ADMINISTRATION INFORMATION SYSTEMS

95 Mission Statement The Personnel Office will provide support to all City Department and Divisions in the area of personnel management. The Personnel Office is responsible to provide the City with qualified individuals to perform its public service mission through the classification, recruitment, and examination process. The Personnel Office is responsible for coordinating, developing, and monitoring the City's personnel management and evaluation process; investigating complaints made by and against City employees; conducting salary and benefit information by reviewing data from comparable municipalities; and the monitoring of the administration of the workers compensation and self-insured health programs. Description of Office To perform personnel functions of the City including all aspects of working conditions, salary, and benefits of City employees. Human Resources Director Organizational Chart HOUSING DIRECTOR COMMUNICATIONS MANAGER LIBRARY DIRECTOR CITY ADMINISTRATOR HUMAN RESOURCES DIRECTOR CLAIMS COORDINATOR/ SECRETARY RECREATION COORDINATOR ADMIN. SECRETARY/ PERSONNEL TECH. 95 Services Meet with employees and various employee groups regarding personal and work-related concerns Provide technical information to department/division heads and Mayor and City Council regarding laws and other pertinent information of the personnel management system Maintain accurate and current personnel records of all employee Accomplishments for Participated in hiring process for Firefighter, Firefighter/Inspector, Fire Lieutenant, Fire Captain, Staff Engineer, Water Plant Operator, Police Officer, Transfer Station Operator, Solid Waste Operator, Street Maintenance Worker, Economic Development Director and Communications Manager. Participated in the promotional process with the Civil Service Commission for the positions of Fire Inspector, Fire Lieutenant, Fire Captain, Police Sergeant, Detective Sergeant, and Police Corporal. Made the necessary salary and benefit adjustments to remain in comparability with other first-class cities. Provided in-service programs on pension, health insurance, customer service and other job-related training. Implemented changes to the City s group health plan with the full year with a new network provider and requirements for the Affordable Care Act. Continued to add information to the personnel website to include on-line resources for job opening announcements and on-line completion of the application form. Participated with other City staff as part of the team of planning, reviewing and making recommendations as Alley Poyner Macchietto design the new addition and renovation to the Public Library. Participated in the management of AquaVenture Water Park for the fifth season of its operation. ADMINISTRATION HUMAN RESOURCES DIRECTOR

96 Continued in the process of transferring human resource files and data from paper to digital. Complied with the Affordable Care Act in the calculation and transmission of the required Patient Centered Outcomes Research Initiative Fees. Complied with the Affordable Care Act for reporting requirements for applicable large employers by gathering needed data to provide employees with 1095-B. Held one Norfolk 101: Academy seven week three hour workshops one to help citizens learn more about City government. Organized a workshop entitled Transitioning to Retirement. Assisted Tree Advisory Board as Secretary; worked with Advisory Board in tree planting and grant applications. Worked with a volunteer citizen group in the development of Embrace Park, which is an all-inclusive playground and splash pad. Continue to assist the Tree Advisory Board in promoting the Tree Bud program and obtaining grants for more trees. (Mayor and City Council Goal #2) Performance Measures Actual Estimated Estimated Workload: Employment Openings Applicants In-Service Programs Citizens Academy E-Blasts Subscribers Articles Submitted on Web Goals for Monitor salary and benefits of comparable first-class cities. Continue to provide staff assistance in the development of Embrace Park that will finish the playground area and develop a Request for Proposal for the splash pad. (Mayor and City Council Goal #2) Review the group health plan and the market for competitive rates in providing third party services, reinsurance and ancillary services. Work with other City staff to implement the design and improvements for the addition and renovation of the Public Library. (Mayor and City Council Goal #8). Continue to update and revise job descriptions through the remaining divisions of the City. Assist with development of the improvement and trail plans for Johnson s Park. (Mayor and City Council Goal #2) Hold another Norfolk 101: Citizens Academy for 20 participants to help them learn more about City government. (Mayor and City Council Goal #4) 96 ADMINISTRATION HUMAN RESOURCES DIRECTOR

97 Mission Statement To provide orderly procurement of all materials, supplies and capital outlay items in coordination with the departmental purchasing. Oversight of contractual insurance provisions and effective risk transfer for the maximum protection of taxpayer dollars and assets. Description of Office To purchase or contract for all materials, supplies, equipment and contractual services needed by any agency of the City; dispose of surplus supplies and equipment; manage the City s insurance and risk management functions. Risk Manager/Purchasing Agent Organizational Chart CITY ADMINISTRATOR PUBLIC SAFETY DIRECTOR RISK MANAGER/ PURCHASING AGENT ADMINISTRATIVE ASSISTANT Services Procure the highest quality supplies and contractual services at the least expense Process payment of all City invoices 97 Coordinate and manage to City s property and casualty insurance Plan, organize, develop and conduct effective risk management programs Prepare risk management agreements and monitor renewals Manages disposal and/or sale of all surplus City equipment and property Accumulate research and prepares related work on various cost reduction projects and programs Accomplishments for Sold City property at the location of 1004 Koenigstein Avenue. Expansion of TaHaZouka Park to include 708 McKinley Avenue. Partnership with University of Nebraska Medical Center on mobile simulation unit project. Secured consultant for both communication tower management and the tower construction project. Goals for Construct radio communication tower. Research and evaluate radio communication equipment required by each Division for necessary upgrade. Continue to evaluate and modify event and contractor insurance requirements. Complete Welcome Sign project on East Highway 275. Levee Certification. Annexation Study. Performance Measures Actual Estimated Estimated Workload: Invoices 12,961 10,200 10,100 Event Applications >$30,000 Purchases (Transactions/ Total) 16 / $1.4m 8 / $675, / $1.4m ADMINISTRATION RISK MANAGER/PURCHASING AGENT

98 Administration Personnel Roster Position Wage Grade FY FY FY FY Mayor Councilmember City Administrator Information Systems Manager Finance Officer Human Resources Director Operations Manager Programmer/Analyst Risk Manager/Purchasing Agent Senior Accountant Planner City Clerk Technology & Implementation Support Specialist Accountant Communications Director Communications Manager Admin. Sec./Personnel Tech Administrative Assistant Accounting Specialist Account Clerk III Administrative Secretary Claims Coordinator/Secretary Secretary II Secretary I Total The Communications Director position was reclassified as a Communications Manager. Due to retirement, One Administrative Assistant position was reclassified as a Secretary II. Current Budget Issues Personnel: The personnel costs increase $36,889 or 1.90% due to normal merit pay increases, and a 2.5% cost-of-living increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: Capital outlay is budgeted at $44,000 compared to $14,200 in the prior year. This is an increase of $30,000 or %. The capital outlay includes: $14,000 for a data server, $10,000 for mail archive server, and $20,000 for a copier. Significant changes to other categories: Operating Supplies and Materials decrease $1,845 or 73.89% due to a decrease in fuel costs. Utilities and Maintenance increase $12,140 or 15.46% due to an increase in office equipment maintenance. Legislative Affairs increase $11,285 or 6.39% due to increases in travel & training, and dues & publications. Other Administration and Overhead decreases $41,829 or 10.04% primarily due to decreases in professional fees due to budgeting funds for the comprehensive plan update and community development plan grant match the previous year. Insurance and office supplies also had decreases which were partially offset by an increase in telephone. Government Subsidies & Transfers decrease $76,875 or 5.76%. The amount of Keno funds transferred to the Capital Projects fund decreased $90,158. Property tax transferred to the Capital Projects Fund for Capital Improvement Program expenditures increased $12,750. Economic Development transfers increase slightly due to CPI adjustments. Council priority debt service transfer for the Administration building decreases slightly due to a decrease in bond payments. Council priority transfer to Capital projects fund increases slightly allowing for more capital project funds. *Combined Budget for Mayor and Council, City Administrator, Administration and Personnel. ADMINISTRATION 98

99 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 110 Dollar Percent * Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 1,658,525 1,888,109 1,872,299 1,940,223 1,977,112 36, % Operating Supplies & Materials 1, ,555 2, (1,845) (73.89%) Other Operating Costs 1,101 1, Utilities & Maintenance 132,836 76,486 62,027 78,515 90,655 12, % Legislative Affairs 106, , , , ,840 11, % Other Admin. & Overhead 537, , , , ,849 (41,829) (10.04%) Gov't Subsidies & Transfers 1,214,380 1,372,714 1,331,278 1,335,104 1,258,229 (76,875) (5.76%) Capital Outlay 48,049 19,411 18,442 14,000 44,000 30, % Total Expenditures 3,699,969 3,820,548 3,909,352 3,964,472 3,934,237 (30,235) (0.76%) Dollars 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 Expenditure History Other Admin. & Overhead* Budget 9.53% Legislative Affairs 4.77% Utilities & Maintenance 2.30% Gov't Subsidies & Transfers 31.98% Capital Outlay 1.12% 1,500,000 1,000, , Actual Actual Budget Fiscal Year Estimated * Budget Other Operating Costs 0.02% Operating Supplies & Materials 0.02% Personnel Costs 50.26% *Combined Budget for Mayor and Council, City Administrator, Administration and Personnel. 99 ADMINISTRATION

100 Mission Statement To provide accurate, responsive civil engineering services and advice on public improvements. Description of Division To design, manage, construct and maintain public infrastructure improvements and assist other divisions and various entities during the maintenance and improvement of public infrastructure. ADMINISTRATIVE ASSISTANT Engineering Organizational Chart CITY ADMINISTRATOR PUBLIC WORKS DIRECTOR CITY ENGINEER Services ENGINEERING AIDE III (3) STAFF ENGINEER Subdivision and site plan review Perform assessment, construction management, inspection, and cost analysis of public infrastructure improvements Provide sound engineering design and work interactively with engineering consultants for public infrastructure projects Retain accurate filing system of subdivision plats, water, sewer, street, and storm sewer improvements 100 Retain necessary public infrastructure information, agreements, and records Update pavement management system for street maintenance purposes Maintain accurate water, sanitary sewer, and storm sewer location maps Ensure sidewalk improvements and maintenance Provide enforcement of City Code Accomplishments for Continued updating and computerizing water map, sanitary sewer map and storm sewer map. Inputted new plats into Computer Aided Drafting database. Continued filing of as-built drawings. Continued study of Geographic Information System and implemented to water, sewer, and storm sewer maps. Provided engineering services for: Replacement, resurfacing, or repair of various streets. Sidewalk Maintenance. Review of new subdivisions and plans for associated infrastructure. Site plan review. Continued use of GPS on plans for street improvement and other various projects. Continued final design of the Victory Road Trail and preliminary design of other various potential trail projects. Continued oversight for design phases of various water and sanitary sewer projects to extend and improve the existing systems. Continued progress on development and implementation of the City s stormwater Management program. Completed water main installation on 3 rd Street from Prospect Avenue to Elm Avenue. Completed Northeast Sewer Phase I. Completed Southwest Sewer Phase I. ENGINEERING

101 Completed water main installation on Madison Avenue from 1 st Street to 7 th Street. Goals for Continue updating and computerizing water map, sewer map and storm sewer map. Input new plats into Computer Aided Drafting database. Continue filing of as-built drawings. Continue study of Geographic Information System and implement to water, sewer, storm sewer maps. Provide engineering services for: Concrete repair of various streets. (Mayor and City Council Goal #3) Sidewalk Maintenance. Review new subdivisions and plans for associated infrastructure. Site plan review. Continue working with Pavement Management. Continue use of GPS for location of existing water, sewer and storm sewer lines. Complete engineering and construction of various trail projects to enhance City of Norfolk trail system. (Mayor and City Council Goal #2) Assist Water Department with engineering and maps to tear down the water tower at Prospect Avenue and 25 th Street. Assist Library with any maps or necessary engineering aspects for the renovation/expansion of the Library building. (Mayor and City Council Goal #8) Further develop and implement the City s Stormwater Management Program. Work with engineering consultants on various water main and sanitary sewer extension and improvement projects. (Mayor and City Council Goal #1) 101 Performance Measures Estimated Estimated Estimated Demand: Subdivision Reviews Building Site Plan Review Workload: Miles of Water Main* Miles of Sanitary Sewer Main* Lane Miles of Paving Districts Lane Miles of Street Reconstruction Projects* Lane Miles of Street Resurfacing or Maintenance Lane Miles of Micro Surfacing or Maintenance Miles of new or reconstructed Trails *Not including new subdivisions. Engineering Personnel Roster Position Wage Grade FY FY FY FY Public Works Director City Engineer Assistant City Engineer Staff Engineer Engineering Aide III Administrative Assistant Administrative Secretary Total An additional Engineering Aide III position was added for training time due to retirement. Current Budget Issues Personnel: The personnel costs increase $68,864 or 11.42% primarily due to an increase in the City Engineer s grade, the addition of an Engineering Aide III position for training time because of retirement, normal merit pay increases, and a 2.5% cost-of-living increase. Personnel ENGINEERING

102 costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: The capital outlay budgeted is $8,000 for a GPS data control system. Significant changes to other categories: Operating Supplies and Materials increase by $808 or 14.69% due to an increase in fuel costs. Utilities & Maintenance increases $3,000 or 16.64% due to an increase in office equipment maintenance costs, which includes $3,000 for pavement management software maintenance. Legislative Affairs increase by $477 or 3.47% due to an increase in dues and publications, which is partially offset by a decrease in travel and training. Other Administration and Overhead decrease by $42,938 or 33.39% due to decreases in funds for GIS mapping, insurance, and office supplies. 102 ENGINEERING

103 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 220 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 496, , , , ,816 68, % Operating Supplies & Materials 1,814 1,714 3,086 5,500 6, % Utilities & Maintenance 6,937 4,735 9,077 18,033 21,033 3, % Legislative Affairs 6,603 7,829 8,459 13,727 14, % Other Admin. & Overhead 15,638 13,740 82, ,605 85,667 (42,938) (33.39%) Capital Outlay 4,391 3,270 15,897 23,000 8,000 (15,000) (65.22%) Total Expenditures 531, , , , ,028 15, % Expenditure History 900, , , Budget Operating Supplies & Materials 0.78% Utilities & Maintenance 2.61% 600,000 Dollars 500, , ,000 Legislative Affairs 1.76% 200, , Actual Actual Budget Estimated Budget Personnel Costs 83.24% Capital Outlay 0.99% Other Admin. & Overhead 10.62% Fiscal Year 103 ENGINEERING

104 Mission Statement To serve the public transportation needs by providing safe, clean, and functional streets and alleys, an efficient and effective equipment maintenance program, traffic control management, and a storm sewer maintenance program. Description of Division To maintain all publicly dedicated street and alley surfaces, City traffic control devices, storm sewers, sweep public streets and service all City owned motor vehicles. PARK & BUILDING MAINTENANCE SUPERINTENDENT Street Maintenance Organizational Chart ELECTRONIC SPECIALIST PREVENTIVE MAINTENANCE EQUIPMENT MECHANIC I (2) CITY ADMINISTRATOR PUBLIC WORKS DIRECTOR OPERATIONS MANAGER SHOP SUPERVISOR EQUIPMENT OPERATOR (2) (STREET SWEEPERS) STREET SUPERVISOR EQUIPMENT OPERATOR (9) CREW LEADER (2) PART-TIME SECRETARY I (.62) MAINTENANCE WORKERS (2) 104 Services Provide enforcement of City Code. Street maintenance includes sweeping, blading, graveling, joint sealing, litter control, curb and gutter repair, patching and concrete repairs Roadside maintenance includes mowing, weed control, shoulder and ditch repair Drainage maintenance includes storm sewer and ditch maintenance Traffic service includes snow removal, sanding, salting, traffic signal maintenance, pavement marking and signing Equipment service includes vehicle and equipment repair and preventative maintenance for all City owned vehicles Miscellaneous work includes flood control work, parking lot maintenance, and ADA sidewalk compliance Accomplishments for Installation of additional pedestrian crossings at 13 th Street and Monroe Avenue, 1 st Street and Benjamin Avenue, 1 st Street and Madison Avenue, and 6 th Street and Pasewalk Avenue. Installation of new traffic signal loops at 1 st Street and Madison Avenue. Installed and placed into service signal head with left turning arrows at 1 st Street and Madison Avenue. Completed the installation of a fire alarm system and compressed air system in the new storage building. Completed street sealing project for future microsurfacing project. Continued work on storm water maintenance program. Maintained compliance with ADA sidewalk program. Bid out and placed into service 4x4 dump truck. Bid out and placed into service new tractor and mower. Relocated the fiber for future expansion of the library. Worked with local utilities to get USACE approval of gas and power line in flood control right-of-way. STREET MAINTENANCE

105 Mitigated drainage issues at 20 th Street and Benjamin Avenue and Marconnit Circle. Researched how to mitigate drainage issues at the dog park and 2 nd Street and Jackson Avenue. Started levee accreditation program. Started bridge rehabilitation program. Continued conversion of lighted street signs to LED style. Repaired wiring for street lighting as required by Nebraska Public Power District. Started rehabilitation of the Koenigstein Bridge using street staff. Assisted and moved books and shelving for library expansion project. Removed trees for the library expansion project. Researched and developed cost analysis for providing street sweeping service for the City of Madison. Goals for Bid out and complete bridge rehabilitation program. Complete conversion of lighted street signs to LED. Bid out and place into service new street sweeper. Continue progress on the levee accreditation program. Bid out and place into service new brine maker. Bid out and place into service new snow plow. Maintain compliance with new ADA sidewalk program. Complete microsurfacing project. (Mayor and City Council Goal #3) Complete the rehabilitation of the Koenigstein Bridge with street staff. Maintain street lighting as required by Nebraska Public Power District. Clean out the box culvert at 3210 Dover. Continue progress on storm water maintenance program. 105 Performance Measures Actual Estimated Estimated Demand: Utility Breaks Snow/Ice Handled (inches) Sweeping Material (Cubic Yards) 4,500 5,000 5,000 Concrete Placed (Cubic Yards) 1,200 1,200 1,200 Asphalt Patching Material Placed (Tons) Joint Sealing in Blocks Vehicle Oil Sample Analysis Street Miles Workload: Storm Sewer Inlets Rebuilt Failed Utility Cut Repairs Handicap Ramps Installed Storm Drain Inlets Cleaned Stop Signs Replaced Expansion Joints Replaced Adjust Manhole to Grade/Valves Replace Manhole Ring and Cover Alley Returns Replaced ADA Curb Planing (L.F.) Productivity: Annual Cost of Utility Breaks $30,000 $40,000 $40,000 Annual Cost of Storm Inlets $11,000 $11,000 $11,000 Annual Cost of Snow/Ice $150,000 $200,000 $200,000 Annual Cost of Sweeping Mater. $95,000 $120,000 $120,000 Annual Cost of Concrete Placed $100,000 $120,000 $120,000 Annual Cost of Patching $45,000 $35,000 $35,000 Annual Cost of Joint Sealing $15,000 $15,000 $15,000 Annual Cost of Vehicle Preventive Maint. Insp. $62,000 $72,000 $72,000 Annual Cost of Vehicle Oil Sample Analysis $1,700 $4,800 $4,800 STREET MAINTENANCE

106 Annual Cost of ADA Planing $15,000 $15,000 $15,000 Effectiveness: % of Work Orders completed in 10 working days 99% 99% 99% % of Service Requests completed in 10 working days 99% 99% 99% % of Citizens Requests completed in 10 working days 99% 99% 99% % of Street Name Signs Replaced 100% 100% 100% Street Maintenance Personnel Roster Position Wage Grade FY FY FY FY Operations Manager Street Supervisor Shop Supervisor Electronic Specialist Preventive Maint. Mechanic Crew Leader Equipment Mechanic I Equipment Operator Maintenance Worker Secretary I Total Due to retirement of an Equipment Operator a new Maintenance Worker was hired, which will remain for 3 years until they are upgraded to an Equipment Operator. Capital Outlay: Capital outlay is budgeted at $79,000 compared to $67,000 in the prior year. This is an increase of $12,000 or 17.91%. The machinery and equipment budget includes $30,000 for LED signs, $25,000 for a brine maker, $17,000 for a snow plow, and $7,000 for a pickup truck plow. Significant changes to other categories: Operating Supplies and Materials increase by $812 or 1.9% due primarily to increases in fuel and road maintenance materials & supplies, which is partially offset by a decrease in minor tools. Legislative Affairs decrease by $2 or 0.06% due to a decrease in travel and training. Other Administration and Overhead increase $13,170 or 18.28% due to increases in insurance, telephone, office supplies, and legal notices & advertising. The $9,259 budgeted in Government Subsidies & Transfers is for the City s match for the Storm Water Management grant received for implementation of the Storm Water Management Plan as required by the Nebraska Legislature in Current Budget Issues Personnel: The personnel costs increase $9,248 or 0.53% due to normal merit pay increases, and a 2.5% cost-ofliving increase. Personnel costs are also impacted by employee turnover, adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. 106 STREET MAINTENANCE

107 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 221 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 1,617,002 1,650,921 1,657,151 1,737,556 1,746,804 9, % Operating Supplies & Materials 356, , , , , % Other Operating Costs 12,259 33,538 16,314 57,670 57, Utilities & Maintenance 483, , , , , Legislative Affairs 1,363 1,667 2,799 3,336 3,334 (2) (0.06%) Other Admin. & Overhead 21,756 68,528 76,669 72,031 85,201 13, % Gov't Subsidies & Transfers 9,259 9,259 7,668 9,259 9, Capital Outlay 65,302 75,050 99,333 67,000 79,000 12, % Total Expenditures 2,567,080 2,705,704 2,619,070 2,907,361 2,942,589 35, % 3,500,000 3,000,000 Expenditure History Other Admin. & Overhead 2.90% Gov't Subsidies & Transfers 0.31% Capital Outlay 2.68% Budget Dollars 2,500,000 2,000,000 1,500,000 1,000,000 Legislative Affairs 0.11% Utilities & Maintenance 18.41% 500, Actual Actual Budget Fiscal Year Estimated Budget 107 Other Operating Costs 1.97% Operating Supplies & Materials 14.26% Personnel Costs 59.36% STREET MAINTENANCE

108 Mission Statement To maintain all City parks and City owned properties in an efficient and safe manner giving the public an aesthetically pleasing and safe environment to enjoy recreationally and leisurely. Description of Division To operate and maintain two City pools, twelve City parks and grounds around City buildings. FACILITIES TECHNICIAN Park Maintenance Organizational Chart CREW LEADER CITY ADMINISTRATOR OPERATIONS MANAGER PARK & BUILDING MAINTENANCE SUPERINTENDENT PARK SUPERVISOR PARK CARE- TAKERS (6) SUMMER WORK-ERS (5) SEASONAL PARK CARE- TAKERS (9) 108 Services Park buildings and grounds maintenance City pool maintenance City property grounds maintenance Snow removal on City owned sidewalks Provide and maintain athletic facilities for City schools and the public Accomplishments for Renovated the TaHaZouka Park bridge over the lagoon. Purchased a replacement 6-foot deck riding mower. Repainted the AquaVenture aquatics facility pool vessels. Secured grant funding for the Flood Control Trail Under Omaha Avenue project. Built a short trail piece connecting the McKinley Avenue Trail to the hard surfaced entrance to the TaHaZouka Park adult softball complex. Secured a Community Forestry Tree Grant and planted 22 trees along 7 th Street between Pasewalk Avenue and Michigan Avenue. Secured ReTree and EAT grants and planted 42 trees along the TaHaZouka Park Elkhorn River Trail area. Renovated the TaHaZouka Park softball field #4 infield. Renovated the Veteran s Memorial baseball infield. Installed a Duro bike repair station at the trailhead to the Cowboy Trail at TaHaZouka Park. Performed renovation work on the interior of the TaHaZouka Park Club House rental cabin. Installed AED s in the two concession stands at TaHaZouka Park. Replaced the aluminum shrub and tree bed edging with concrete curbing at the USBank memorial. Retrofitted the WWII Memorial area lighting at Central Park with LED lighting. Renovated three large park whirls over the winter months. Refurbished the swing set from 4 th and Elm Avenue park and repurposed it a Central Park. PARK MAINTENANCE

109 Installed a concrete picnic table and slab at Skyview Park. Installed posts and cables for the adult softball complex parking lot at Ta-Ha-Zoula Park. Goals for Continue to work on the North Fork Riverfront Trail project. (Mayor and City Council Goal #2) Continue working with advocates on forwarding the new skate park project that the city has committed a $125,000 match towards. (Mayor and City Council Goal #2) Armor coat previously treated park roads. Replace the worn chain link backstop fabric on TaHaZouka Park ballfield #4. Purchase a replacement 6-foot front deck riding mower. Purchase a motorized infield groomer for ball field maintenance. Secure a ReTree grant and plant 10 trees in the parks. Secure a Community Forestry grant and plant an estimated 20 trees in the parks. Secure an EAT grant and plant 30+ trees in the parks. Resurface the two tennis courts at Central Park. Purchase 6 aluminum picnic tables and add to the park compliment of picnic tables. Refurbish large playground whirls from the parks over the winter months. Performance Measures Actual Estimated Estimated Demand: Number of Parks Park Acres Miles of Sidewalks/Trails Sports Fields Workload: Trash Runs Mowing Cycles Snow Removal Operations Games on Sports Fields 1,725 1,550 1,550 Service Requests Completed Effectiveness: Quality of Service Complaints Service Requests Completed within 3 days 99% 99% 99% Trash Removed from Parks (tons) Park Personnel Roster Position Wage Grade FY FY FY FY Park & Building Maintenance Superintendent Park Supervisor Facilities Technician Crew Leader Park Caretaker Maintenance Worker Seasonal Park Caretaker Total One Park caretaker position was reclassified to a Crew Leader. Current Budget Issues Personnel: The personnel costs increase $33,502 or 3.60% due to normal merit pay increases, and a 2.5% cost-ofliving increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: Park Capital Outlay increases $38,700 or % over the previous year. Park machinery and equipment includes a 6 front end mower for $15,000 and an infield groomer for $10,000. Infrastructure items include: $12,500 for NECC funded improvements, $8,000 PARK MAINTENANCE

110 for park/playground updates, and $30,700 for DTR grant match. Significant changes to other categories: Operating Supplies and Materials decrease by $5,409 or 9.07% due to decreases in fuel and other operating supplies & materials, which is partially offset by increases in minor apparatus & tools, signs, paint, and lumber. Utilities and Maintenance decreases $37,600 or 9.02% primarily due to decreases in natural gas and building ground and plant maintenance costs, which is partially offset by an increase in electricity. Legislative Affairs decrease $168 or 2.19% due to decreases in travel & training and dues & publications. Other Administration and Overhead increases by $363 or 0.57% due to an increase in telephone, which is partially offset by decreases in insurance and office supplies. Gov t Subsidies & Transfers decreases $26,000 due to budgeting a transfer to Capital Projects Fund to assist with funding of the Flood Control trail under Omaha Avenue the previous year. 110 PARK MAINTENANCE

111 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 227 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 874, , , , ,797 33, % Operating Supplies & Materials 37,854 28,415 38,826 59,615 54,206 (5,409) (9.07%) Other Operating Costs 9,224 10,889 11,041 15,400 15, Utilities & Maintenance 519, , , , ,245 (37,600) (9.02%) Legislative Affairs 1,401 1,391 1,658 7,674 7,506 (168) (2.19%) Other Admin. & Overhead 22,980 65,938 68,602 63,631 63, % Gov't Subsidies & Transfers 12,500 12,500 26,000 38,500 12,500 (26,000) (67.53%) Capital Outlay 56,719 44,534 55,157 37,500 76,200 38, % Total Expenditures 1,534,522 1,468,693 1,452,268 1,570,460 1,573,848 3, % Expenditure History Other Admin. & Overhead 4.07% Gov't Subsidies & Transfers 0.79% Capital Outlay 4.84% Budget 1,800,000 1,600,000 1,400,000 Legislative Affairs 0.48% Dollars 1,200,000 1,000, , , , , Actual Actual Budget Estimated Budget Utilities & Maintenance 24.10% Other Operating Costs 0.98% Operating Supplies & Materials 3.44% Personnel Costs 61.30% Fiscal Year 111 PARK MAINTENANCE

112 Mission Statement To provide decent, safe and quality housing to Norfolk s low to moderate income families and to promote adequate and affordable housing, economic opportunity and a suitable living environment free from discrimination. Description of Division To administer a Housing and Urban Development (HUD) Rental Assistance Program, prepare grant applications for HUD rental assistance funding for very low income families, supervision of owner rehabilitation funding for repairs and refurbishment of homes for low income families, supervision of rental rehabilitation program for second story downtown and other rental rehabilitation units in the community. Ownership and management of a 57 unit apartment complex in downtown Norfolk, as well as a tax credit 24 unit complex in Meadow Ridge. Management of 14 homes that are Tax Credit Rent-to-Own in Woodland Park. Purchasing vacant lots to rehab/build new homes and sell them to income qualified buyers. HOUSING PROGRAM MANAGER CLIENT SUPPORT ASSISTANT (2) Housing Organizational Chart HOUSING DIRECTOR CITY ADMINISTRATOR HUMAN RESOURCES DIRECTOR HOUSING COORDINATOR ACCOUNTING SPECIALIST 112 Services Upgrade and enhance housing rental assistance and rehabilitation programs Work closely with social agencies Availability to entrepreneurs, builders, developers, and homebuyers for direction and advice Prepare and submit grants for rental assistance and owner rehabilitation Knowledge of Housing Quality Standards Rental Agency Apartments and Commercial Space Increase/improve housing stock in the community both independently and through partnerships Getting information out in the community about housing discrimination Accomplishments for Maintained the quota of serving 254 families in the rental assistance program or utilizing the maximum funding provided by HUD. Continued assisting with the Community Revitalization (CR) grant. Worked with the National Association of Housing Redevelopment Officials (NAHRO), Congress and the Senate on Legislative advocacy to keep our housing programs funded. Maximized utilization of federal funding to serve the most people in the community (100% expected.) Maintained nearly 100% occupancy in Meadow Ridge Estates. Maintained high occupancy of rental units and commercial space at the Kensington. Maintained nearly 100% occupancy for the Royal Oaks Estates homes in Woodland Park. Worked with owners on the Rental Rehabilitation Grant for the downtown. Worked with Hanna: Keelan Associates to complete the Norfolk Community Housing Study. HOUSING

113 Worked with homeowners on the Owner Rehabilitation program to improve the housing quality of homes in the community with re-use funds. Purchased 2 new lots and completed construction on 3 homes that were sold to 80% low to moderate income home buyers. Put together and hosted the Northeast Nebraska Fair Housing Conference for the 2 nd year. Goals for Maintain the quota of 254 families in the rental assistance program despite decreasing funding in the last several years. Continue our portion of assisting with the Community Revitalization portion of the grant. This grant works with owners to rehabilitate their rental units. Continue to work with National Association of Housing Redevelopment Officials (NAHRO), Congress and the Senate on Legislative advocacy to keep our housing programs fully funded. Utilize our funding in the best way possible to maximize the number of families we can assist with rent. Continue our high occupancy rates at the Kensington, Royal Oaks Estates and Meadow Ridge Estates. Maintain occupancy of commercial space at the Kensington. Continue the owner rehabilitation program with any re-use funds that become available. Work with Landlords in the Rental Rehabilitation program who will be receiving funding for 2 nd story rentals in the downtown. Purchase/rehab/build homes in the community for 80% low to moderate income home buyers. Identify and remedy dilapidated property within City limits (Mayor and City Council Goal #6) Performance Measures Actual Estimated Estimated Demand: # of Landlords Average # of Households: White Black Hispanic Native American /Alaskan Native Other Total Average # of Households: Family Elderly Disabled Total Workload: Average Households Assisted Monthly Average # of People Assisted Monthly Productivity: Average # of New Leases Average # of Inspections Effectiveness: # of Families Leaving the Assistance Program Housing Personnel Roster Position Wage Grade FY FY FY FY Housing Director Housing Development Manager Housing Program Manager Housing Coordinator Accounting Specialist Client Services Specialist HOUSING

114 Client Support Assistant Total The Client Services Specialist position was reclassified as a Client Support Assistant. Current Budget Issues Personnel: The personnel costs increase $15,083 or 3.36% due to normal merit pay increases, and a 2.5% cost-ofliving increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: No Capital Outlay is budgeted for this year. Significant changes to other categories: The Housing budget is primarily personnel costs and operating costs in the form of supplies, as well as typical office supplies such as paper, pencils, etc. Operating Supplies & Materials increase $24 or 1.38% due to an increase in fuel costs. Utilities and Maintenance increase $3 or 0.03% due to an increase in machinery & vehicle maintenance. Other Administration and Overhead decreases $2,587 or 11.34% due to a decrease in office supplies. 114 HOUSING

115 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 366 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 418, , , , ,546 15, % Operating Supplies & Materials ,700 1,736 1, % Utilities & Maintenance 2,276 2,042 8,500 9,379 9, % Legislative Affairs 4,352 3,792 5,435 9,895 9, Other Admin. & Overhead 9,366 14,495 34,050 22,822 20,235 (2,587) (11.34%) Capital Outlay 10,323 2,445 8,103 10,000 - (10,000) (100.00%) Total Expenditures 445, , , , ,818 2, % 600,000 Expenditure History Budget Operating Supplies & Materials 0.35% Utilities & Maintenance 1.85% 500, ,000 Legislative Affairs 1.96% Dollars 300, ,000 Other Admin. & Overhead 4.00% 100, Actual Actual Budget Fiscal Year Estimated Budget Personnel Costs 91.84% 115 HOUSING

116 Mission Statement To provide quality athletic and recreational programs and facilities, including two municipal pools, and to improve aesthetics by maintaining various flower beds in the City parks. Description of Division To provide recreational programs, operate the City's swimming pools, maintain flowerbeds, maintain the employees Section 125 Plan and prepare payroll for the City. Recreation Organizational Chart CITY ADMINISTRATOR HUMAN RESOURCES DIRECTOR Services RECREATION COORDINATOR FACILITIES MANAGER PART-TIME SEASONAL RECREATION PROGRAM STAFF Plan, plant and maintain flowerbeds in City parks Organize and provide recreation programs Operate AquaVenture water park and Liberty Bell pool Book reservations for cabins at Ta-Ha-Zouka Park and open air shelters at Ta-Ha-Zouka Park and Skyview Park 116 Maintain employees Section 125 Plan Payroll Organize operations of the concession stands at Veterans Memorial Field and Ta-Ha-Zouka ball fields Accomplishments for Worked with local companies to hold their company picnics at AquaVenture. This year there were five along with two private birthday parties. Facilities Manager certified/recertified all guards in-house. Changed from a Family Season pass at AquaVenture to a Group Season pass to allow any group of six individuals to get a season pass. Operated three concession stands two at TaHaZouka Park and one at AquaVenture. Continued to train personnel as back-up for the payroll system. Reserved over 240 cabins at TaHaZouka Park. Continued to learn different parts of the new software for the new payroll system. Collected and updated information for the Affordable Care Act requirements on reporting health insurance for employees. Worked with the programmer and the IRS on the submittal of the ACA forms. Continued to transfer all human resources data from paper to electronic files. Completed and filed the 2016 Equal Employment Opportunity Commission report, a federal requirement. Goals for Create additional activities for AquaVenture to include after hour swim parties, various swim classes, etc. Continue to train and hire quality staff to operate AquaVenture. Continue to improve on flower beds throughout the City parks. Provide in-service training for the waterpark staff. Promote the Group Season Pass to increase the number of passes sold at AquaVenture. RECREATION

117 Continue to look for ways to improve the operations of the three concession stands that the Recreation Division operates. Work with staff to increase the number of company parties held at AquaVenture. Collect and update information from employees to comply with the Affordable Care Act Reporting Requirements (Form C). Complete and submit the 2017 Equal Employment Opportunity Commission report, a federal requirement. Continue to learn and train back-up on the newly installed payroll system. Performance Measures Actual Estimated Estimated Demand: Swimming Pool Single Passes Swimming Pool Family/Group Passes Quantity of City Park Flower Beds Downtown: Potts Medians beds Sidewalk beds 60 5 blocks 7 blocks 60 5 blocks 7 blocks 60 5 blocks 7 blocks TaHaZouka Park Cabin Reservations Open Air Shelter Reservations Productivity: Swimming Pool Personnel Costs $265,500 $280,000 $300,000 Personnel Costs to Maintain Flower Beds $14,500 $16,100 $18,000 Recreation Personnel Roster Position Wage Grade FY FY FY FY Recreation Coordinator Facilities Manager Total Current Budget Issues Personnel: The personnel costs increase $20,661 or 3.26% due to normal merit pay increases, and a 2.5% cost-ofliving increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: No capital items are budgeted this year. Significant changes to other categories: The $9 or 0.19% decrease in Legislative Affairs is due to a reduction in travel and training costs for staff. The $10,000 or 6.72% decrease in Other Administration and Overhead is due to a decrease in program promotions. Workload: Swimming Pool Lesson Participants Private Swim Lessons 1, , RECREATION

118 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 411 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 407, , , , ,137 20, % Operating Supplies & Materials 3,331 4,178 5,840 8,100 8, Other Operating Costs 10,682 8,918 17,732 43,500 43, Utilities & Maintenance ,000 1, Legislative Affairs 1, ,920 4,722 4,713 (9) (0.19%) Other Admin. & Overhead 78,979 95, , , ,734 (10,000) (6.72%) Total Capital Outlay 3,354 3, Total Expenditures 505, , , , ,184 10, % Dollars 900, , , , , ,000 Expenditure History Utilities & Maintenance 0.12% Other Operating Costs 5.12% Legislative Affairs 0.55% Other Admin. & Overhead 16.32% Budget 300, , ,000 Operating Supplies & Materials 0.95% Actual Actual Budget Fiscal Year Estimated Budget 118 Personnel Costs 76.94% RECREATION

119 Mission Statement Library Organizational Chart The Norfolk Public Library provides innovative library services that give community members of all ages the means to fulfill their recreational interests, interact with others in the community, get information on a broad array of topics, access resources to help them learn to read and use information effectively, and continue to learn throughout their lives. Description of Division REFERENCE/ SYSTEMS ASSISTANT CITY ADMINISTRATOR HUMAN RESOURCES DIRECTOR LIBRARY DIRECTOR LIBRARIAN I Collect, organize, make accessible and disseminate both traditional printed materials and a wide variety of contemporary print and nonprint resources. Services The library encourages lifelong learning by providing citizens with access to quality informational and recreational materials on a wide variety of subjects and in a variety of formats. This information comes from print books, electronic resources, DVDs, CDs, newspapers, magazines and includes the computers the library provides for the public. The library provides educational and cultural programs for all ages. Programs for children encourage early literacy skills and support their educational development as they grow. Programs for adults cover a variety of educational, historical and specialty topics to help citizens pursue their interests. With assistance from highly-trained library staff, the library helps citizens find information, access the internet, answer general information questions, provide computer training, and provide assistance with genealogy and historical research. REFERENCE LIBRARY ASSISTANT (2) CIRCULATION SUPERVISOR LIBRARY ASSISTANT (.5) LIBRARIAN I LIBRARY ASSISTANT I LIBRARY AIDE (.375) LIBRARY ASSISTANT I LIBRARY ASSISTANT II LIBRARY TECHNICIAN (.5) LIBRARY TECHNICIAN I LIBRARY ASSISTANT/SECURITY MONITOR (.64) SECRETARY I LIBRARY ASSISTANT (.675) LIBRARY TECHNOLOGY SPECIALIST MAINTENANCE WORKER (.5) 119 LIBRARY

120 Accomplishments for Replaced 8 public computers, 10 catalog computers, and 12 laptops. Completed the digitization of the library microfilm collection and worked with the Information Services Division to make the complete collection available to the public through a new server. Continued to modernize the library and staff processes through allowing online registration for library classes and requests for use of the public meetings rooms. Completed design plans for the renovation and expansion of the library and began construction. Goals for Complete the renovation and expansion of the library and open the full facility to the public. (Mayor and City Council Goal #8) Keep technology current by replacing 11 public computers, and adding 5 new public computers, adding 3 early literacy stations for youth ages 2-8, and adding 9 new staff computers. Continue to modernize library staff and user experiences by replacing the current magnetic materials inventory and security control with a new radio frequency system. Continue to provide a high-quality collection of materials for the community through strategic spending with a reduced collection budget. Performance Measures Actual Estimated Estimated Demand: Population Served 24,366 24,366 24,366 Library Card Holders 13,901 14,000 14,000 %Card Holders-Norfolk % Card Holders-Other Open Hours Per Week Open Hours Per Year 3,136 3,136 3,136 Annual Attendance 145, , , Annual Program Attendance 9,978 9,900 10,000 Children s Programs 7,025 7,000 7,000 Adult Programs 2,953 2,900 3,000 Workload: Adult Circulation/Year 150, , ,000 Juvenile Circulation/Year 100, , ,000 Total Circulation/Year 250, , ,000 Reference Question/IT Instruction 5,476 5,200 5,500 Patron Internet Uses 21,139 20,000 22,000 Children s Programs Adult Programs Material Items Added 11,990 10,000 9,000 Material Items Deleted 11,707 9,000 8,500 Productivity: Items Circulated per Capita Circulations/Hour Reference Transactions/ Hour Internet Use/Hour/ Station Effectiveness: Public Internet Work Stations Library Personnel Roster Position Wage Grade FY FY FY FY Library Director Reference Systems Assistant Librarian I Library Technology Specialist Circulation Supervisor Library Technician I Library Technician Maintenance Worker LIBRARY

121 Secretary I Library Assistant II Reference Library Asst Library Assistant I Library Assistant I Library Assistant/Security Monitor Library Assistant Library Aide Total Total Library Assistant hours were adjusted to add a Library Aide position. to the Capital Projects Fund to pay for construction of the Library addition decreases. Current Budget Issues Personnel: The personnel costs increase $45,264 or 4.5% due normal merit pay increases, and a 2.5% cost-of-living increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: The Capital budget consists of $30,000 for two self-checkout machines and $15,000 for security gates. Significant changes to other categories: The $89,480 or 31.38% decrease in Operating Supplies & Materials is due to a decrease in library materials. The $3,881 or 5.10% decrease in Utilities & Maintenance is due to decreases in building ground and plant maintenance and office equipment maintenance, which is partially offset by increases in electricity, natural gas, and water & sewer. The $675 or 1.54% decrease in Legislative Affairs is due to decreases in travel & training and dues and publications. The $39,454 or 26.05% increase in Other Administration & Overhead is primarily due to an increase in office supplies, which is partially offset by decreases in telephone, computer service, and other professional fees. Governmental Subsidies & Transfers for the transfer of a half-cent sales tax 121 LIBRARY

122 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 444 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 900, , ,859 1,006,985 1,052,249 45, % Operating Supplies & Materials 262, , , , ,700 (89,480) (31.38%) Other Operating Costs % Utilities & Maintenance 55,045 47,483 65,715 76,028 72,147 (3,881) (5.10%) Legislative Affairs 28,038 35,753 38,500 43,966 43,291 (675) (1.54%) Other Admin. & Overhead 84, , , , ,902 39, % Gov't Subsidies & Transfers 871,096 2,639,956 2,673,036 2,623,396 1,811,345 (812,051) (30.95%) Capital Outlay 9,461 22,504 8,000 8,000 45,000 37, % Total Expenditures 2,211,986 4,002,249 4,173,925 4,195,603 3,411,306 (784,297) (18.69%) Dollars 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , Actual Expenditure History Actual Budget Fiscal Year Estimated Budget 122 Gov't Subsidies & Transfers 53.09% Budget Capital Outlay 1.32% Other Admin. & Overhead 5.60% Legislative Affairs 1.27% Personnel Costs 30.85% Operating Supplies & Materials 5.74% Other Operating Costs 0.02% Utilities & Maintenance 2.11% LIBRARY

123 Mission Statement To support a higher quality of life through public education, loss prevention, and service resxponse. Description of Division To respond to community needs in the areas of fire prevention, fire suppression, emergency medical and rescue services, emergency management, planning and zoning, electrical, mechanical, general construction, health, environmental inspections, and public education. RESERVES ASST. CHIEF OPERATIONS Fire Organizational Chart FIRE CAPTAIN (3) CITY ADMINISTRATOR PUBLIC SAFETY DIRECTOR FIRE CHIEF FIRE LIEUTENANT FIRE FIGHTER/ INSPECTOR FIRE FIGHTER (18) ASST. CHIEF PREVENTION FIRE MARSHAL BUILDING OFFICIAL HEALTH INSPECTOR ELECTRICAL INSPECTOR BUILDING INSPECTOR ADMINISTRATIVE ASSISTANT (.55) Services Fire Prevention -- Enforce the Fire Codes in the interest of the community Fire Suppression -- Locate, confine, and extinguish fires or explosions, and to control and eliminate other hazardous conditions Emergency Medical Services -- Respond and provide emergency medical care and transport of patients Prevention and Codes -- Assist contractors, home builders, and general public with building, zoning, fire prevention, health, and other code concerns Public Education -- Delivery of safety information to the community in order to develop awareness and skills to prevent hazardous situations and reduce injury and damage in emergencies Hazardous Materials Response Technical level response to release of hazardous materials Accomplishments for Continued strategic planning process. Performed internal and external communications improvements: Reviewed radio and other electronic communications. Reviewed staff and other internal communication loops and methods, and Reviewed Fire Division communications within our community. Conducted joint mutual aid drill with mutual aid towns. Provided excellent customer service while providing exceptional service to the community. Provided critical support for the Community Redevelopment project. Maximized Fire division resources to provide the best service. Completed specifications for a new 100 foot mid-mount platform aerial apparatus. PERMITS TECHNICIAN 123 FIRE

124 Goals for Continue strategic planning process. Perform internal and external communications improvements: Review radio and other electronic communications capabilities, Review staff and other internal communication loops and methods, and Review Fire Division communications within our community. Conduct joint mutual aid drill with mutual aid towns. Complete a SOG review and Stand Down for Safety Seminar. Complete a Reserve Recruitment and Initial Recruit class. Begin Fire Fighter 2 course curriculum. Implement CPAP Patient Care Protocols. Review New AHA guidelines and consider implementation. Enhance performance measurement data collection. Evaluate building infrastructure and identify and complete needed improvements. Provide excellent customer service while providing exceptional service to the community. Provide critical support for the Community Redevelopment project. Maximize Fire division resources to provide the best service. Complete purchase of new aerial platform device. Adopt and implement the 2012 Edition of the International Building Code Series. Study and evaluate the emergency response staffing levels for the community. Begin design and specifications for new ambulance. Performance Measures Actual Estimated Estimated Demand: City Population 24,210 24,210 24,220 Rural District Population 4,950 4,950 4,950 Total Geographical Area Served City Area Rural Area Mutual Aid Area 1,345 1,345 1,345 Workload: Total # of Responses 2,365 2,450 2,500 Emergency Medical Calls 2,066 2,080 2,100 # of Patients Encountered 2,078 2,200 2,350 # of Trauma Patients # of Medical Patients 2,135 2,200 2,200 Fire Calls Structure Fires % Contained to Room of Origin 73% 60% 60% % Contained to Structure of Origin 95% 100% 100% Wildland Fires Hazardous Material Calls # of Level 1 Call Backs # of Level 2 Call Backs # of Citizens Who Toured the Fire Station or attended classes 1,546 1,600 1,600 Public Education (Student Contact) 6,700 6,700 6,700 Valuation of Fees/Building Permits Issued $24,923,322 $35,000,000 $35,000,000 Building Permits Issued # of Inspection Requests 5,213 5,800 5,800 FIRE

125 # of Burning Permits Issued Productivity: Total Training Hours 5,929 6,000 6,000 Average Training Hours per Fire Fighter Feet of Hose Maintained 25,250 25,250 25,250 # of Pumps Tested & Maintained # of Warning Sirens Tested & Maintained # of Preemption Devices Maintained # of SCBA Tested and Maintained # of Emergency Vehicles Maintained # of Defibrillators Maintained Effectiveness: % of Established Patient IV s % of Established Endotracheal Tubes % of Misplaced Endotracheal Tubes Average Response Time per Call 4:30 4:30 4:30 # of Incidents with 1 st Arriving Units within 5 minutes 1,544 1,820 1,824 % of Total 81% 80% 80% Valuation of Protected Property $4,444,600 $10,000,000 $15,000, Dollar Amount Loss Due to Fire $750,650 $700,000 $700,000 Average Years of Service of Employees Fire Personnel Roster Position Wage Grade FY FY FY FY Public Safety Director Fire Chief Assistant Fire Chief Prevention Prevention Manager Assistant Fire Chief-Operations Fire Operations Manager Fire Captain Building Official Health Inspector Fire Marshal Electrical Inspector Building Inspector Fire Lieutenant Fire Fighter/Inspector Fire Fighter Administrative Assistant Permit Technician Administrative Secretary Total Current Budget Issues Personnel: The personnel costs increase $152,214 or 4.38% due to the addition of a ½ time Public Safety Director, normal merit pay increases, and a 2.5% cost-ofliving increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: This year s capital outlay purchases reflect routine equipment replacement. A prudent replacement schedule of emergency equipment, such as bunker gear FIRE

126 allows the division to protect the personnel with up to date equipment. The capital outlay includes $10,000 for rural signage, $5,000 for color copier permits, and $37,000 for staff pickup. Significant changes to other categories: Operating Supplies and Materials increase by $4,273 or 1.87% due to increases in fuel, minor apparatus & tools, and operating supplies & materials. Utilities and Maintenance increase by $803 or 0.43% due to increases in electricity and building ground & plant maintenance, which is partially offset by a decrease in machinery and vehicle maintenance costs. Legislative Affairs increase by $8,831 or 9.32% due to increases in public relations and travel & training costs. Other Administration and Overhead decreases by $207 or 0.13% primarily due to a decrease in other professional fees, which is partially offset by increases in insurance, telephone and office supplies. Government Subsidies and Transfers increase $1,604 or 4.06% due to adjustments to the City s match contribution to the Regional 11 Emergency Management fund. 126 FIRE

127 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 530 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 3,245,108 3,312,672 3,224,514 3,472,397 3,624, , % Operating Supplies & Materials 53,004 41, , , ,651 4, % Other Operating Costs 1,507 1,125 1,500 1,750 1, Utilities & Maintenance 130, , , , , % Legislative Affairs 51,564 58,511 72,800 94, ,630 8, % Other Admin. & Overhead 75, , , , ,878 (207) (0.13%) Gov't Subsidies & Transfers 35,776 37,590 39,502 39,502 41,106 1, % Capital Outlay 196, , ,000 85,100 52,000 (33,100) (38.90%) Total Expenditures 3,789,207 4,025,361 3,989,516 4,262,810 4,397, , % Dollars 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , Actual Expenditure History Actual Budget Estimated Budget Budget Personnel Costs 82.43% Operating Supplies & Materials 5.29% Capital Outlay 1.18% Other Operating Costs 0.04% Utilities & Maintenance 4.27% Legislative Affairs 2.36% Other Admin. & Overhead 3.50% Gov't Subsidies & Transfers 0.93% Fiscal Year 127 FIRE

128 Mission Statement To provide effective and efficient law enforcement services to the community. Description of Division To effectively prevent and control conduct threatening life and property, to aid and protect individual and constitutional guarantees, to identify and resolve conflicts and problems and to create and maintain security in the community. PATROL SERGEANT (4) CORPORAL (4) CRIMINAL INVESTIGATORS (4) PATROL OFFICERS (22) COMMUNITY SERVICE OFFICER SCHOOL RESOURCE OFFICER DETECTIVE SERGEANT DRUG/GANG INVESTIGATORS (1) Police Organizational Chart FIELD SERVICES BUREAU CAPTAIN CITY ADMINISTRATOR PUBLIC SAFETY DIRECTOR POLICE CHIEF SUPPORT SERVICES BUREAU CAPTAIN PROPERTY CONTROL OFFICER DISPATCH SUPERVISOR RECORDS SUPERVISOR ADMINISTRATIVE ASSISTANT DISPATCHERS (11) SECRETARY I 128 Criminal investigation Traffic enforcement Accident investigation Drug enforcement Crime prevention Conflict resolution General assistance to public Animal control Services Accomplishments for Provided initial and field training for three new officers. Continued upgrade of patrol cruisers to Explorers. Completed and submitted request for continued Wireless E911 Funds. Coordinated the annual National Night Out activity in Central Park. Participated and helped coordinate the annual Landon Bos Bicycle Rodeo. Continued participation in and coordination of the SNARE Drug Task Force. Completed thirteenth year of the School Resource Officer Program, the fifth year in which the officer was assigned to Norfolk Senior High School. Assisted Nebraska State Patrol with several fatality collisions in Northeast Nebraska. Continued monitoring of local registered sex offenders. Maintained mandated training requirements for officers and dispatchers. Assisted area law enforcement agencies with cell phone forensic examinations. Maintained compliance with the Juvenile Justice & Delinquency Act on detention of juveniles. Completed and submitted proposed Division Capital Improvement Program budget. Completed and submitted proposed FY Division budget. POLICE

129 Goals for Provide orientation for the Public Safety Director. Develop a Division strategic plan. Upgrade CAD/Records Management software. Evaluate traffic selective enforcement program. Initiate development of standard operating procedures. Provide active shooter response training to City personnel. Maintain response time for Priority I and Priority II calls for service. Complete and submit request for continued Wireless E911 funds. Receive Jail Standards certification. Maintain mandated training standards for officers and dispatchers. Complete 2017 Division Annual Report. Complete and submit proposed FY budget. Complete and submit proposed Division Capital Improvement Program. Performance Measures Actual Estimated Estimated Demand: Calls for Service 20,091 19,528 19,600 Accidents Workload: Criminal Arrests 1,761 1,753 1,750 Traffic Arrests 2,004 1,768 1,800 Alcohol Arrests Drug Arrests Parking Citations Warning and Defect Tickets 6,140 5,049 5,000 Productivity: Cost per Service Call $ $ $ Cost per Arrest $1, $1, $1, POLICE

130 Mission Statement To provide legal support services to the Mayor, City Council and various City departments. Description of Division To plan, direct, and participate in the provision of complex professional legal services to the Mayor, City Council, City Administrator, and Department and Division Heads; to perform administrative work in directing the legal activities of the City; and to provide policy, technical and administrative support to the Mayor, City Council and City Administrator. City Attorney Organizational Chart CITY ATTORNEY LEGAL ASSISTANT (2) CITY ADMINISTRATOR Services SPECIAL COUNSEL Provide legal assistance to the City Administrator and Mayor and City Council Provide legal assistance to the Norfolk Airport Authority Prosecute municipal code violations 130 Represent the interest of the City in the conduct of appeals of municipal code violations and other matters in State and Federal appellate courts Prepare legal opinions relating to City matters Draft ordinances, resolutions, contracts, leases, agreements and other legal documents Assist in formulating proposed legislation for enactment by the Legislature regarding matters of interest to the City Advise on the City s legal problems and questions Accomplishments for Processed approximately 1,750 County Court complaints alleging various ordinance violations. Provided professional legal services to the Mayor, City Council, City Administrator and Department and Division Heads. Provided professional legal services to the Norfolk Airport Authority. Goals for Continue effective prosecution of ordinance violations. Continue to provide professional legal services to the Mayor, City Council, City Administrator and Department and Division Heads. Continue to provide professional legal services to the Norfolk Airport Authority. Performance Measures Actual Estimated Estimated Workload: City Ordinance Code Violations Processed 1,621 1,750 2,000 CITY ATTORNEY

131 Police Personnel Roster Position Wage Grade FY FY FY FY Public Safety Director City Attorney Special Counsel Police Chief Police Captain Police Detective Sergeant Police Sergeant Police Corporal Police Officer/Investigator School Resource Officer Police Officer Dispatch Supervisor Records Supervisor Legal Assistant Administrative Assistant Administrative Secretary Community Service Officer Dispatcher I Maintenance Worker Secretary I Property Control Officer Total A half time Public Safety Director position and a Special Counsel position were added. Significant changes to other categories: Operating Supplies and Materials decrease $11,387 or 6.75% due to decreases in uniforms and minor apparatus and tools, which is partially offset by an increase in fuel cost. Other Operating Costs decrease $10,000 or 13.30% due to a decrease in tow and storage. Utilities and Maintenance decrease $3,453 or 2.46% due to decreases in natural gas, building ground and plant maintenance, machinery and vehicle maintenance, office equipment maintenance and communication equipment maintenance, which his partially offset by an increase in electricity. Legislative Affairs decrease $12,081 or 15.37% due to decreases in community service and travel & training, which is partially offset by an increase in dues and publications. Other Administration & Overhead increases $2,130 or 0.80% due to an increase in office supplies, which is partially offset by a decrease in insurance costs. Current Budget Issues Personnel: The personnel costs increase $295,259 or 6.00% due to the addition of a ½ time Public Safety Director and a Special Counsel position, normal merit pay increases, and a 2.5% cost-of-living increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: The capital outlay costs increase $11,300 or 11.93% and includes: $88,200 for three police cruisers and $17,800 for IBM 15 Replacement Server. 131 POLICE

132 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 533 Dollar Percent * Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 4,508,569 4,555,327 4,878,648 4,924,642 5,219, , % Operating Supplies & Materials 114,489 90, , , ,407 (11,387) (6.75%) Other Operating Costs 69,433 59,787 60,250 75,191 65,191 (10,000) (13.30%) Utilities & Maintenance 94, , , , ,954 (3,453) (2.46%) Legislative Affairs 41,976 44,916 60,912 78,623 66,542 (12,081) (15.37%) Other Admin. & Overhead 125, , , , ,852 2, % Capital Outlay 262, ,094 92,500 94, ,000 11, % Total Expenditures 5,217,235 5,286,086 5,630,771 5,750,079 6,021, , % Expenditure History 7,000,000 6,000,000 * Budget Operating Supplies & Materials 2.61% Other Operating Costs 1.08% Dollars 5,000,000 4,000,000 3,000,000 2,000,000 Utilities & Maintenance 2.27% Legislative Affairs 1.11% 1,000, Actual Actual Budget Estimated * Budget Personnel Costs 86.69% Other Admin. & Overhead 4.48% Capital Outlay 1.76% Fiscal Year *Combined Budget for City Attorney and Police. 132 POLICE*

133 FUND BUDGET SUMMARY FUND CODE: 101 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 1,267,455 3,128,734 4,204,656 4,143,645 1,504,720 (2,638,925) (63.69%) Intergovernmental Revenues 2,742,338 2,966,190 2,959,080 2,870,000 3,150, , % Interest Income 2,466 5,214 16,622 6,300 4,600 (1,700) (26.98%) Total Revenue 2,744,804 2,971,404 2,975,702 2,876,300 3,154, , % Total Funds Available 4,012,259 6,100,138 7,180,358 7,019,945 4,659,320 (2,360,625) (33.63%) Other Operating Costs ,000 10, Other Admin. & Overhead Government Subsidies 415, , , , , Capital Outlay 468,369 1,480,317 5,215,152 6,560,000 4,200,000 (2,360,000) (35.98%) Total Expenditures 883,525 1,895,482 5,675,638 6,985,000 4,625,000 (2,360,000) (33.79%) Ending Balance 3,128,734 4,204,656 1,504,720 34,945 34,320 (625) (1.79%) Total Funds Accounted For 4,012,259 6,100,138 7,180,358 7,019,945 4,659,320 (2,360,625) (33.63%) Dollars 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, Actual Revenue/Expenditure History Actual Budget Fiscal Year Estimated Revenues Expenditures Budget 133 Interest Income 0.15% Capital Outlay 90.81% Revenue Expenditure Intergovernmental Revenues 99.85% Other Operating Costs 0.22% Government Subsidies 8.97% CITY HIGHWAY ALLOCATION FUND (CHAF)

134 FUND BUDGET SUMMARY FUND CODE: 103 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 146, , , ,988 62,432 (45,556) (42.19%) Taxes 82,972 87,826 83,805 80,753 90,261 9, % Rent & Other Revenue 20,968 28,258 21,125 33,000 36,340 3, % Other Interest Income 1,754 1,263 1, , % Non-Revenue Receipts 9,490 24,589 4,155 5,006 5, % Total Revenue 115, , , , ,795 13, % Total Funds Available 261, , , , ,227 (32,507) (14.27%) Other Operating Costs 6,183 57,366 7,456 10,500 10, Utilities & Maintenance 38,627 28,027 74,632 58,000 29,400 (28,600) (49.31%) Legislative Affairs 28,399 38,424 21,753 20,000 10,000 (10,000) (50.00%) Other Admin. & Overhead 10,094 31,524 32,039 33,375 27,325 (6,050) (18.13%) Capital Outlay 13, ,000 - (40,000) (100.00%) Debt Service - Principal 15,000 15,000 15,000 15,000 15, Debt Service - Interest 6,168 6,108 6,018 6,018 5,898 (120) (1.99%) Total Expenditures 117, , , ,893 98,123 (84,770) (46.35%) Ending Balance 143, ,205 62,432 44,841 97,104 52, % Total Funds Accounted For 261, , , , ,227 (32,507) (14.27%) 134 VEHICLE PARKING FUND

135 FUND BUDGET SUMMARY FUND CODE: Revenue Taxes 67.97% Revenue/Expenditure History Revenue 200,000 Expenditure 180, , ,000 Non-Revenue Receipts 3.88% Dollars 120, ,000 80,000 Other Interest Income 0.78% Rent & Other Revenue 27.37% 60,000 40,000 20, Actual Actual Budget Estimated Budget Expenditure Other Admin. & Overhead 27.85% Fiscal Year Legislative Affairs 10.19% Debt Service 21.30% Other Operating Costs 10.70% Utilities & Maintenance 29.96% 135 VEHICLE PARKING FUND

136 FUND BUDGET SUMMARY FUND CODE: 104 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 323, , , , ,523 20, % Intergovernmental Revenues 619, ,053 2,147,201 1,415,000 1,324,859 (90,141) (6.37%) Rent & Other Revenue Other Interest Income 411 1,170 2,800 1,300 2,700 1, % Non-Revenue Receipts 561, ,281 38,500 20,900 16,400 (4,500) (21.53%) Total Revenue 1,181, ,545 2,188,564 1,437,200 1,343,959 (93,241) (6.49%) Total Funds Available 1,504,752 1,097,414 3,064,272 2,325,382 2,252,482 (72,900) (3.13%) Other Operating Costs 730, ,066 2,071,269 2,147,282 2,173,488 26, % Other Admin. & Overhead 57,912 25,640 84, ,100 78,994 (99,106) (55.65%) Total Expenditures 788, ,706 2,155,749 2,325,382 2,252,482 (72,900) (3.13%) Ending Balance 715, , , Total Funds Accounted For 1,504,752 1,097,414 3,064,272 2,325,382 2,252,482 (72,900) (3.13%) 2,500,000 2,000,000 Revenue/Expenditure History Revenue Expenditure Revenue Intergovernmental Revenues 98.58% Non-Revenue Receipts 1.22% Dollars 1,500,000 1,000,000 Other Interest Income 0.20% 500, Actual Actual Budget Fiscal Year Estimated Budget Other Operating Costs 96.49% Expenditure Other Admin. & Overhead 3.51% COMMUNITY DEVELOPMENT BLOCK GRANT FUND 136

137 Mission Statement Reduce the presence of illicit drugs and the propensity for violence associated with the drug culture through the coordinated and enhanced investigative efforts of a consortium of skilled investigators from member law enforcement agencies. Description of Division Investigate illicit drug violations and associated violent crime incidents. Drug violation investigation Violent crime investigation SNARE Organizational Chart CITY ADMINISTRATOR PUBLIC SAFETY DIRECTOR POLICE CHIEF POLICE CAPTAIN CLERK/RECEPTIONIST/ OFFICE MANAGER (.125) Services Accomplishments for Completed 28 th year of operation as a task force. Continued administrative oversight of the SNARE Drug Task Force. Goals for Identify additional funding sources. Increase drug arrests. Performance Measures Estimated Estimated Estimated Demand: Clandestine Meth Labs Detected & Seized Workload: Cases Initiated Drug Arrests Productivity: Cost Per Case $ $ $ Cost Per Arrest $ $ $ Federal Seizures $2,000 $2,500 $2,500 Narcotic Prescription Pills Seized Position Clerk/Receptionist/Office Manager SNARE Personnel Roster Wage FY FY FY FY Grade Total SPECIALIZED NARCOTICS ABUSE REDUCTION EFFORT 137

138 Current Budget Issues Revenues: The Specialized Narcotics Abuse Reduction Effort Fund (SNARE) is a program funded by local agency match and the SNARE cash reserve. The Police Division anticipates receiving local agency match shares of $36,900 this year. Expenditures: Personnel costs are $5,956 consisting of a clerk/receptionist. Operating Costs are $16,800. Utilities and Maintenance costs are $3,300. Other Administration and Overhead costs are $53,730. The primary focus of SNARE is to address the drug problem in the nine county area in Northeast Nebraska. The contributing members are the Nebraska State Patrol, Antelope, Butler, Colfax, Knox, Madison, Nance, Pierce, Platte, Polk, and Stanton County Sheriff Departments; Columbus, Norfolk, Schuyler, and Wayne Police Departments. The larger communities covered by the SNARE Task Force are Columbus, Madison, Norfolk, Schuyler, and Wayne. SNARE serves an area of Northeast Nebraska with a population base in excess of 110,000. SPECIALIZED NARCOTICS ABUSE REDUCTION EFFORT 138

139 FUND BUDGET SUMMARY FUND CODE: 109 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 209, , , , ,854 (31,018) (15.60%) Intergovernmental Revenues 50,900 26,005 36,900 46,900 36,900 (10,000) (21.32%) Rent & Other Revenue 36,635 13,043 12, Total Revenue 87,535 39,048 49,400 46,900 36,900 (10,000) (21.32%) Total Funds Available 297, , , , ,754 (41,018) (16.69%) Personnel Costs 5,095 5,086 4,987 5,805 5, % Other Operating Costs 15,624 12,144 16,800 16,800 16, Utilities & Maintenance 2,652 2,690 3,060 3,102 3, % Other Admin. & Overhead 50,505 41,254 58,202 51,200 53,730 2, % Total Expenditures 73,876 61,174 83,049 76,907 79,786 2, % Ending Balance 223, , , , ,968 (43,897) (26.00%) Total Funds Accounted For 297, , , , ,754 (41,018) (16.69%) Dollars 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, Actual Revenue/Expenditure History Actual Budget Fiscal Year Estimated Revenue Expenditure Budget Other Admin. & Overhead 67.34% Intergovernmental Revenues % Expenditure Revenue Personnel Costs 7.46% Other Operating Costs 21.06% Utilities & Maintenance 4.14% SPECIALIZED NARCOTICS ABUSE REDUCTION EFFORT FUND (SNARE) 139

140 FUND BUDGET SUMMARY FUND CODE: 110 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 6, ,726 12,395 13,735 1, % Taxes 252, , , , ,000 (10,000) (4.44%) Other Interest Income % Total Revenue 252, , , , ,100 (9,940) (4.42%) Total Funds Available 258, , , , ,835 (8,600) (3.62%) Utilities & Maintenance 5,315 2,119 4,735 5,461 4,175 (1,286) (23.55%) Other Administration & Overhead 3,524 2,752 2,556 2,627 2, % Government Subsidies 250, , , , ,000 (20,000) (9.09%) Capital Outlay ,243 13, % Total Expenditures 258, , , , ,124 (7,964) (3.49%) Ending Balance 97 18,726 13,735 9,347 8,711 (636) (6.80%) Total Funds Accounted For 258, , , , ,835 (8,600) (3.62%) Dollars 300, , , , ,000 50, Actual Revenue/Expenditure History Actual Fiscal Year Budget Estimated Revenue Expenditure Budget Taxes 99.95% Expenditure Government Subsidies 90.85% Revenue Other Interest Income 0.05% Capital Outlay 6.02% Utilities & Maintenance 1.90% Other Administration & Overhead 1.23% 911 FUND 140

141 Mission Statement Support a higher quality of life through public education, loss prevention, and service response. Description of Division Respond to Region 11 (Antelope, Madison, and Pierce Counties and the City of Norfolk) through mitigation, preparation and response and recovery of disasters. Region 11 Emergency Management Fund Organizational Chart CITY ADMINISTRATOR PUBLIC SAFETY DIRECTOR FIRE CHIEF EMERGENCY MANAGER EMERGENCY MANAGEMENT COORDINATOR Services Emergency Management Analysis, planning, decision making, and assignment of available resources to mitigate, prepare for, respond to, and recover from the effects of all hazards Accomplishments for Completed Biannual Strategy Implementation Report (BSIR) and Emergency Management Program Grant (EMPG) requirements to maintain funding. Continued networking with Region 11 first responders, volunteers and officials. Maintained relationship with the 12 Northeast Nebraska county emergency managers to plan and implement the use of 2015 and 2016 Homeland Security dollars. Finalized purchases and reimbursement of 2015 and 2016 Homeland Security grant funds (haz-mat) and are awaiting the award of the 2017 grant. Maintained Emergency Management Planning Grant dollars. Total updates of Antelope County Local Emergency Operations Plans and distributed new copies. Began total update of the Madison County Local Emergency Operations Plan. Goals for Complete Biannual Strategy Implementation Report (BSIR) and Emergency Management Program Grant (EMPG) requirements to maintain funding. Continue networking with Region 11 first responders, volunteers and officials. Maintain relationship with the 12 Northeast Nebraska county emergency managers to plan and implement the use of 2016 and 2017 Homeland Security dollars. Finalize purchases and reimbursement of 2016 Homeland Security grant funds (haz-mat) and begin purchases of 2017 equipment. Maintain Emergency Management Planning Grant dollars. Begin work on Flood Fight Plan of Norfolk levee. 141 REGION 11 EMERGENCY MANAGEMENT FUND

142 Performance Measures Actual Estimated Estimated Demand: Emergency Management Public Service Announcements # of Counties Covered Workload: Classes/Workshops Attended Emergency Management Planning Grant Awarded $44,403 $46,994 $45,000 Hazard Materials (MOU) Grant Awarded $20,000 $19,000 $20,000 Disaster Exercise Conducted yes yes yes Disaster declarations applied for Effectiveness: LEOP Updated yes yes yes Region 11 Emergency Management Fund Personnel Roster Position Wage Grade FY FY FY FY Emergency Manager Emergency Management Coordinator Total Current Budget Issues Revenues: Miscellaneous federal grants consist of: $19,917 for a 2016 Haz Mat grant and $46,994 for 2016 EMPG grant. Funding for the operation of Region 11 is received in Other Intergovernmental Funding and comes from Antelope County (20%), Madison County (23%) and Pierce County (17%). An Interfund Operating Transfer from the Fire Division budget represents the City of Norfolk s 40% contribution. Personnel: Personnel costs include a part-time Emergency Manager and a part-time Emergency Management Coordinator responsible for the operation and coordination of the region. The personnel costs increase $1,448 or 1.60% due to a 2.5% cost-of-living increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: No capital outlay is budgeted for FY Significant changes to other categories: The $8,323 or 69.73% increase in Operating Supplies and Materials is due to increases in fuel and minor apparatus & tools. The $4,400 or 74.58% increase in Legislative Affairs is due to an increase in travel and training. The $30 or 0.42% increase in Other Administration and Overhead is due to an increase in insurance. 142 REGION 11 EMERGENCY MANAGEMENT FUND

143 FUND BUDGET SUMMARY FUND CODE: 112 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 162, , , , ,514 48, % Intergovernmental Revenues 148, , , , ,570 4, % Other Interest Income , % Non-Revenue Receipts 35,776 37,590 39,502 39,502 41,106 1, % Total Revenue 184, , , , ,176 6, % Total Funds Available 346, , , , ,690 55, % Personnel Costs 85,433 87,707 90,772 90,772 92,220 1, % Operating Supplies & Materials ,100 11,936 20,259 8, % Utilities & Maintenance 2,853 16,456 7,070 17,570 17, Legislative Affairs ,900 10,300 4, % Other Admin. & Overhead 6,107 6,221 6,352 7,162 7, % Capital Outlay 91,168 7,401 10,200 10,200 - (10,200) (100.00%) Total Expenditures 186, , , , ,541 4, % Ending Balance 160, , , , ,149 51, % Total Funds Accounted For 346, , , , ,690 55, % REGION 11 EMERGENCY MANAGEMENT FUND 143

144 FUND BUDGET SUMMARY FUND CODE: 112 Dollars 200, , , , , ,000 80,000 60,000 40,000 20,000 - Revenue/Expenditure History Actual Actual Budget Fiscal Year Estimated Revenue Expenditure Budget Utilities & Maintenance 11.91% Non-Revenue Receipts 24.01% Other Interest Income 0.88% Legislative Affairs 6.98% Revenue Expenditure Other Admin. & Overhead 4.87% Intergovernmental Revenues 75.11% Operating Supplies & Materials 13.73% Personnel Costs 62.51% REGION 11 EMERGENCY MANAGEMENT FUND 144

145 FUND BUDGET SUMMARY FUND CODE: 113 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 70,235 79, , ,994 98,013 (19,981) (16.93%) Intergovernmental Revenues 46,296 46,296 38,342 46,296 - (46,296) (100.00%) Other Interest Income % Non-Revenue Receipts 9,259 9,259 7,668 9,259 9, Total Revenue 55,673 55,724 46,608 55,755 9,559 (46,196) (82.86%) Total Funds Available 125, , , , ,572 (66,177) (38.09%) Operating Supplies & Materials ,483 1, % Utilities & Maintenance ,200 1, Legislative Affairs 6,372 7,205 6,916 40,100 9,500 (30,600) (76.31%) Other Admin. & Overhead 34,730 10,687 57,894 85,630 91,600 5, % Government Subsidies 3, Capital Outlay 1, ,000 - (25,000) (100.00%) Total Expenditures 46,195 18,508 65, , ,800 (49,613) (32.34%) Ending Balance 79, ,929 98,013 20,336 3,772 (16,564) (81.45%) Total Funds Accounted For 125, , , , ,572 (66,177) (38.09%) Dollars 200, , ,000 50, Actual Revenue/Expenditure History Actual Budget Fiscal Year Estimated Revenue Expenditure Budget 145 Other Interest Income 3.14% Other Admin. & Overhead 88.24% Expenditure Revenue Non-Revenue Receipts 96.86% Operating Supplies & Materials 1.45% Utilities & Maintenance Legislative Affairs 1.16% 9.15% STORM WATER MANAGEMENT

146 FUND BUDGET SUMMARY FUND CODE: 114 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 3,954,521 3,970, , , ,854 61, % Taxes 392, , , , , Intergovernmental Revenues 56,865 60,007 58,966 27,000 24,000 (3,000) (11.11%) Rent & Other Revenue Interest Income 7, ,475 1,975 3,975 2, % Non-Revenue Receipts - 1, Total Revenue 456, , , , ,375 (1,000) (0.23%) Total Funds Available 4,411,289 4,424, , , ,229 60, % Other Operating Costs 60,008 3,600, Debt Service - Principal 320, , , , ,000 5, % Debt Service - Interest 61,116 57,790 52,590 52,590 45,495 (7,095) (13.49%) Total Expenditures 441,124 3,982, , , ,495 (2,095) (0.55%) Ending Balance 3,970, , , , ,734 62, % Total Funds Accounted For 4,411,289 4,424, , , ,229 60, % Dollars 5,000,000 4,000,000 3,000,000 2,000,000 1,000, Actual Revenue/Expenditure History Actual Budget Fiscal Year Estimated Revenues Expenditures Budget 146 Intergovernmental Revenues 5.59% Debt Service % Interest Income 0.93% Expenditure Revenue Taxes 93.48% LB 840 ECONOMIC DEVELOPMENT FUND

147 FUND BUDGET SUMMARY FUND CODE: 115 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 113, , , , ,189 89, % Intergovernmental Revenue 91,410 90,805 92,266 90,886 94,827 3, % Interest Income , ,900 1, % Total Revenue 91,580 91,114 93,566 91,586 96,727 5, % Total Funds Available 205, , , , ,916 95, % Utilities & Maintenance 18,195 8,521 19,599 23,285 17,800 (5,485) (23.56%) Other Administration & Overhead 11,993 10,661 10,897 11,199 11, % Gov't Subsidies & Transfers - - 5, Capital Outlay ,457 56, % Total Expenditures 30,188 19,182 35,538 34,484 85,792 51, % Ending Balance 175, , , , ,124 43, % Total Funds Accounted For 205, , , , ,916 95, % Dollars 120, ,000 80,000 60,000 40,000 20, Actual Revenue/Expenditure History Actual Budget Fiscal Year Estimated Revenues Expenditures Budget 147 Interest Income 1.96% Revenue Expenditure Capital Outlay 65.80% Utilities & Maintenance 20.75% Intergovernmental Revenue 98.04% Other Administration & Overhead 13.45% WIRELESS 911 FUND

148 Mission Statement To serve as a resource for existing businesses in the Norfolk area and for entrepreneurs; to address issues impacting the economic vitality of the City and region; and to recruit businesses to the area. Description of Division Assists existing businesses, recruits new businesses, and fosters entrepreneurship. Works to strengthen and diversify the economy of the city and the region. Creates and nurtures partnerships with area agencies, state and federal government, regional organizations, and the business community. Economic Development Operating Fund Organizational Chart ECONOMIC DEVELOPMENT COORDINATOR CITY ADMINISTRATOR Services ECONOMIC DEVELOPMENT PROPERTY COORDINATOR Work with all area businesses in an effort to identify trends and address issues at a macro level, such as workforce shortages Provide funding opportunities/incentives for new or retained jobs and investment in Madison County Coordinate with the Nebraska Department of Economic Development, local utility providers (like Black Hills Energy, NPPD, Elkhorn Rural Public Power District, etc.), the railroad, 148 and other agencies, to assist industries in overcoming any obstacles preventing them from expanding Accomplishments for Completed a Downtown Revitalization planning analysis. Assisted with 60 existing and potential small businesses. Neighborhood Champion Designee promoting Small Business Saturday county wide. Hosted Nebraska Diplomats Reginal Economic Development Celebration. Worked alongside Talent and Recruitment Director to address the workforce shortage. Facilitated discussions and provided information to developers interested in Norfolk area. Combined leadership with Greater Norfolk Economic Development Foundation and underwent a strategic planning process to set economic development priorities and goals. Initiated work on an economic development brand and website presence for Northeast Nebraska Economic Development Network. Participated in a regional planning process, which resulted in USDA grant dollars used to formulate regional strategies. Goals for Master-plan identified industrial sites (Mayor and City Council Goal #1) Shovel-ready industrial sites must be planned and options over those sites obtained. In cooperation with community partners, develop creative strategies to facilitate housing development. Continue to recruit businesses, assist small businesses and startups, and assist with business transitions. Market area properties. Conduct Business Retention & Expansion (BR!E) visits. Update the county wide economic development website. ECONOMIC DEVELOPMENT OPERATING FUND

149 Performance Measures Actual Estimated Estimated Workload: Proposals for businesses being recruited Contacts with existing & potential small business Applications received for LB Productivity: BR&Es with Existing Businesses LB840 $ awarded to businesses $3,660, Position Economic Development Operating Fund Personnel Roster Wage Grade FY FY FY FY Economic Development Director Economic Development Coordinator Economic Development Property Coordinator Total Personnel: The personnel costs decrease $104,563 or 39.64% primarily due to eliminating the Economic Development Director position, which is partially offset by normal merit pay increases, and a 2.5% cost-of-living increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Significant changes to other categories: Legislative Affairs decrease $7,119 or 33.14% due to a decrease in travel and training costs. Other Administration and Overhead increases $114,277 or % due to increases in insurance, office supplies and the addition of an administrative fee in other professional fees, which is partially offset by a decrease in carryover grant funds for Current Budget Issues Revenues: The Economic Development Operating Fund was created to account for contributions from the City and Madison County for the economic development program. Total revenues increased by $8,206 or 2.29% due to an annual CPI adjustment in contributions and an increase in interest rates. 149 ECONOMIC DEVELOPMENT OPERATING FUND

150 FUND BUDGET SUMMARY FUND CODE: 116 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 118, , , , ,744 14, % Intergovernmental Revenues 304, , , ,135 3, % Other Revenue - 50,000 50,000 50,000 50, Other Interest Income , % Non-Revenue Receipts 152, , , , ,135 3, % Total Revenue 457, , , , ,870 8, % Total Funds Available 575, , , , ,614 23, % Personnel Costs 248, , , , ,194 (104,563) (39.64%) Legislative Affairs 10,662 12,399 11,063 21,484 14,365 (7,119) (33.14%) Other Admin. & Overhead 13,246 51,245 98, , , , % Capital Outlay 1, Total Expenditures 273, , , , ,636 2, % Ending Balance 301, , , , ,978 20, % Total Funds Accounted For 575, , , , ,614 23, % Dollars 500, , , , , Actual Revenue/Expenditure History Actual Budget Fiscal Year Estimated Revenue Expenditure Budget 150 Other Revenue 13.67% Intergovernm ental Revenues 42.94% Revenue Expenditure Other Admin. & Overhead 55.80% Non- Revenue Receipts 42.95% Personnel Costs 40.54% Legislative Affairs 3.66% Other Interest Income 0.44% ECONOMIC DEVELOPMENT OPERATING FUND

151 FUND BUDGET SUMMARY FUND CODE: 201 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 3,596,587 4,450,099 3,383,155 3,334,705 3,809, , % Taxes 2,465,047 2,525,741 2,519,450 2,494,676 2,373,676 (121,000) (4.85%) Intergovernmental Revenues 98, , ,010 40,000 40, Other Interest Income 4,411 5,641 10,800 10,000 24,000 14, % Non-Revenue Receipts 135,395 10,008,008 1,641, , ,301 (7,854) (5.90%) Total Revenue 2,703,042 12,643,005 4,272,912 2,677,831 2,562,977 (114,854) (4.29%) Total Funds Available 6,299,629 17,093,104 7,656,067 6,012,536 6,372, , % Other Administration & Overhead 35, ,494 42,860 36,080 36, % Gov't Subsidies & Transfers 71,733 71,974 85,098 84, ,522 36, % Debt Service - Principal 1,155,000 12,990,000 3,370,000 1,881,000 1,575,600 (305,400) (16.24%) Debt Service - Interest 587, , , , ,452 (65,772) (17.96%) Total Expenditures 1,849,530 13,709,949 3,846,358 2,368,061 2,034,434 (333,627) (14.09%) Ending Balance 4,450,099 3,383,155 3,809,709 3,644,475 4,338, , % Total Funds Accounted For 6,299,629 17,093,104 7,656,067 6,012,536 6,372, , % Dollars 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - Revenue/Expenditure History Actual Actual Budget Fiscal Year Revenue Expenditure Estimated Budget Revenue Taxes 92.61% Expenditure Debt Service 92.22% Intergovernmental Revenues 1.56% Other Interest Non-Revenue Receipts 4.89% Other Administration & Overhead 1.81% Gov't Subsidies & Transfers 5.97% Income 0.94% DEBT SERVICE FUND 151

152 FUND BUDGET SUMMARY FUND CODE: 325 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 2,435,549 4,091,998 6,307,101 4,710,605 4,194,992 (515,613) (10.95%) Intergovernmental Revenues 37, , ,145 1,146,898 1,505, , % Rent & Other Revenue 5,762 5, , , , , % Other Interest Income 3,570 6,887 34,500 9,700 17,100 7, % Non-Revenue Receipts 3,104,676 4,202,227 3,743,025 5,260,133 5,297,993 37, % Total Revenue 3,151,732 4,628,381 4,677,970 6,552,231 7,205, , % Total Funds Available 5,587,281 8,720,379 10,985,071 11,262,836 11,400, , % Other Operating Costs - - 1,000, Other Admin. & Overhead 4, , , , , % Capital Outlay 1,491,251 2,413,191 5,788,416 9,360,215 9,583, , % Total Expenditures 1,495,283 2,413,278 6,790,079 9,520,715 9,899, , % Ending Balance 4,091,998 6,307,101 4,194,992 1,742,121 1,501,789 (240,332) (13.80%) Total Funds Accounted For 5,587,281 8,720,379 10,985,071 11,262,836 11,400, , % Dollars 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, Actual Revenue/Expenditure History Actual Budget Fiscal Year Estimated Revenue Expenditure Budget Revenue Non-Revenue Receipts 73.52% Capital Outlay 96.82% Expenditure Intergovernmental Revenues 20.89% Rent & Other Revenue 5.35% Other Interest Income 0.24% Other Admin. & Overhead 3.18% CAPITAL PROJECTS FUND 152

153 FUND BUDGET SUMMARY FUND CODE: Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 330,002 2,194, , , ,182 61, % Special Assessments Levied 184, , ,728 68,554 44,180 (24,374) (35.55%) Rent and Other Income 187, Other Interest Income 30,986 38,295 31,631 21,029 13,601 (7,428) (35.32%) Non-Revenue Receipts 2,661, ,974 85,098 3,164,757 3,226,522 61, % Total Revenue 3,064, , ,457 3,254,340 3,284,303 29, % Total Funds Available 3,394,536 2,969,824 1,090,399 4,000,573 4,092,485 91, % Other Admin. & Overhead 9,396 4, ,000 56,000 12, % Capital Outlay 971,667 1,746,609-3,003,340 2,983,000 (20,340) (0.68%) Debt Service- Principal 205, , , , , , % Debt Service- Interest 13,856 33,908 36,417 61,020 83,977 22, % Total Expenditures 1,199,919 2,151, ,217 3,353,360 3,697, , % Ending Balance 2,194, , , , ,508 (252,705) (39.05%) Total Funds Accounted For 3,394,536 2,969,824 1,090,399 4,000,573 4,092,485 91, % Dollars 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 - Revenue/Expenditure History Actual Actual Budget Fiscal Year Estimated Revenue Expenditure Budget Revenue Non-Revenue Receipts 98.24% Expenditure Capital Outlay 80.67% Special Assessments Levied 1.35% Other Interest Income 0.41% Debt Service 17.82% Other Admin. & Overhead 1.51% SPECIAL ASSESSMENTS FUND SUMMARY

154 FUND BUDGET SUMMARY FUND CODE: Dollar Percent Actual Actual Estimated Increase Increase Description Revenues Revenues Revenues Budget Budget Budget (Decrease) (Decrease) Beginning Fund Balance 11,782,411 10,420,368 11,147,993 10,924,094 10,939,504 10,245,830 (693,674) (6.34%) Special Ass. Levied Water 2, Total Special Assessments Levied 2, Intergovernmental Revenues Water - 1, Solid Waste Mgmt. 1, Total Intergovernmental Revenues 1,009 1, Charges for Service Water 2,407,903 2,591,780 2,717,025 2,621,000 2,667,000 2,667, Sewer Maintenance 3,499,222 3,837,611 4,040,719 3,572,000 3,826,000 4,119, , % Solid Waste Mgmt. 1,936,546 1,947,995 1,950,000 1,719,200 1,931,550 1,931, Total Charges for Service 7,843,671 8,377,386 8,707,744 7,912,200 8,424,550 8,717, , % Rent & Other Revenue Water 116, ,392 69,592 47,163 71,030 71, Sewer Maintenance 118,893 16,835 8,473 68,500 6,000 7,700 1, % Solid Waste Mgmt. 3,561 3,501 2, Total Rent & Other Revenue 239, ,728 80, ,663 77,030 78,730 1, % Interest Income Water 3,997 5,705 16,577 5,000 8,300 18,900 10, % Sewer Maintenance 7,876 9,049 20,690 8,800 15,600 25,400 9, % Solid Waste Mgmt. (2,400) (3,163) ,200 4,100 1, % Total Interest Income 9,473 11,591 37,267 14,400 26,100 48,400 22, % Interfund Operating Transfer In Sewer 1,700, , Total Interfund Operating Transfer In 1,700, , ENTERPRISE FUND

155 FUND BUDGET SUMMARY FUND CODE: Dollar Percent Actual Actual Estimated Increase Increase Description Revenues Revenues Revenues Budget Budget Budget (Decrease) (Decrease) Proceeds from Debt Issue Water ,475,000 1,500,000 (975,000) (39.39%) Sewer ,700,000 8,175,000 10,175,000 2,000, % Solid Waste Mgmt ,800,000 1,800, % Total Proceeds from Debt Issue ,700,000 10,650,000 13,475,000 2,000, % Total Revenue 9,795,820 8,520,624 8,825,626 10,042,263 19,177,680 22,319,680 3,142, % Total Funds Available 21,578,231 18,940,992 19,973,619 20,966,357 30,117,184 32,565,510 2,448, % 155 ENTERPRISE FUND

156 FUND BUDGET SUMMARY FUND CODE: Dollar Percent Actual Actual Estimated Increase Increase Description Expenditures Expenditures Expenditures Budget Budget Budget (Decrease) (Decrease) Water 3,584,678 1,767,250 2,274,845 3,608,633 7,972,662 7,784,040 (188,622) (2.37%) Water Pollution Control 2,844,259 2,346,891 2,995,138 3,091,676 3,532,719 2,878,924 (653,795) (18.51%) Sewer Maintenance 2,818,594 1,742,422 2,808,757 4,048,780 10,341,800 11,995,613 1,653, % Solid Waste Management 1,910,332 1,936,436 1,649,049 2,044,059 1,819,760 4,057,477 2,237, % Total Expenditures 11,157,863 7,792,999 9,727,789 12,793,148 23,666,941 26,716,054 3,049, % Ending Balance 10,420,368 11,147,993 10,245,830 8,173,209 6,450,243 5,849,456 (600,787) (9.31%) Total Funds Accounted For 21,578,231 18,940,992 19,973,619 20,966,357 30,117,184 32,565,510 2,448, % Revenue/Expenditure History Revenue Expenditure Proceeds from Debt Issue 60.37% Revenue 30,000,000 Dollars 25,000,000 20,000,000 15,000,000 Interest Income 0.22% Rent & Other Revenue 0.35% Charges for Service 39.06% 10,000, Expenditure 5,000, Actual Actual Budget Fiscal Year Estimated Budget 156 Water Pollution Control 10.78% Water 29.13% Sewer Maintenance 44.90% Solid Waste Management 15.19% ENTERPRISE FUND

157 Mission Statement To provide clean, safe drinking water in an adequate amount to our customers in a cost effective manner. Description of Division Operate and maintain Norfolk s two water treatment plants and water distribution system. Water Organizational Chart CITY ADMINISTRATOR Services Conduct backflow program Maintain and repair water mains, meters, and fire hydrants Install water valves and hydrants as needed Locate, trace, and mark water mains On-call 24 hours and standby duty during weekends to handle emergency calls Respond to all customers for water services to be on or off Handle water complaints Collect water samples per State regulations to ensure water meets all safe drinking water standards Assist contractors and customers on the installation and repair of water lines and attachments Accomplishments for PUBLIC WORKS DIRECTOR WATER & SEWER DIRECTOR WATER PLANT SUPERVISOR SECRETARY I Compliance with State of Nebraska Regulations Title 179 Chapter 22 concerning backflow prevention. Maintained compliance with State of Nebraska Health & Human Services for zero failures of required coliform testing of water samples. Maintained a reputable safety record. Published the Annual Consumer Confidence Report. Assist engineering and contractor with all proposed water projects. Goals for WATER PLANT OPERATOR II WATER PLANT OPERATOR I (3) UTILITY WORKER (3) WATER & SEWER MECHANIC II Compliance with State of Nebraska Regulations Title 179 Chapter 22 concerning backflow prevention. Maintain compliance with State of Nebraska Health & Human Services for zero failures of required coliform testing of water samples. Maintain a reputable safety record. Assist engineering and contractor with all proposed water projects. 157 WATER

158 Performance Measures Actual Estimated Estimated Demand: Water Mains Maintained (Miles) # of Customers 9,352 9,354 9,358 Booster Stations Maintained Wells Maintained Workload: Water Inspections Service Calls During Working Hours 5,567 5,600 5,600 Service Calls After Working Hours Locates 3,272 3,300 3,350 Productivity: Raw Water Pumped (Gallons) 1,479,284,824 1,550,000,000 1,650,000,000 Finished Water Pumped (Gallons) 1,421,364,960 1,490,000,000 1,590,000,000 Effectiveness: Water Samples Tested Fire Hydrants Flushed 1,258 1,278 1,298 Water Personnel Roster Position Wage Grade FY FY FY FY Water & Sewer Director Water Plant Supervisor Water & Sewer Mechanic II Plant Operator II Plant Operator I Utility Worker Maintenance Worker Secretary I Total Current Budget Issues Personnel: The personnel costs increase $26,714 or 3.07% due normal merit pay increases, and a 2.5% cost-of-living increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: The major infrastructure items in the Capital Outlay budget are as follows: Oversized pipe larger than 8 - $40,000. The City pays for piping sized over 8. (E4) Water Main Improvements; Omaha Avenue and Victory Road - $705,000 Water line to serve the proposed development on the east side of the flood control. This is a carryover from the FY budget. Replace water main 19 th, 21 st Drive, and 14 th and Koenigstein Avenue- $90,000 Trunking system for Communication Tower - $250,000 Erect communication tower at 25 th & Prospect - $230,000 Water line on Victory Road; Magnet to Eisenhower - $130,000. Industrial tank at Victory & Benjamin - $2,300,000 Water extension on 1 st & 13 th to South of Elkhorn River - $1,150,000 Connect 1 st Street connection to 13 th Street connection - $620,000 Machinery and Equipment budgeted includes: replace service truck for $26,500, replace main break trailer for $5,000, and replace mobile radios for $49,640. Significant changes to other categories: Utilities and Maintenance increase $65,340 or 9.02% primarily due to an increase in building ground and plant maintenance. Other Administration and Overhead increase $47,289 or 14.82% primarily due to bond issuance costs and a TTHM study. Also includes 1% increase in administration fees. Debt Service decreases $169,323 or 65.10% due a maturing bond issue. WATER

159 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 224 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 805, , , , ,827 26, % Operating Supplies & Materials 19,927 10,422 12,520 17,381 17, % Other Operating Costs 8,144 8,144 8,037 8,480 8, Utilities & Maintenance 460, , , , ,101 65, % Legislative Affairs 7,310 11,186 10,688 15,192 16,800 1, % Other Admin. & Overhead 203, , , , ,304 47, % Gov't Subsidies & Transfers 1,700,000 7, Capital Outlay 216, , ,966 5,756,640 5,596,140 (160,500) (2.79%) Debt Service - Principal 130, , , ,250 15,750 (124,500) (88.77%) Debt Service - Interest 33,397 10,473 8, ,830 75,007 (44,823) (37.41%) Total Expenditures 3,584,678 1,767,250 2,274,845 7,972,662 7,784,040 (188,622) (2.37%) Dollars 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, Actual Expenditure History Actual Budget Fiscal Year Estimated Budget 159 Capital Outlay 71.88% Budget Legislative Affairs Other Admin. 0.22% & Overhead 4.71% Debt Service 1.17% Personnel Costs 11.53% Operating Supplies & Materials 0.23% Other Operating Costs 0.11% Utilities & Maintenance 10.15% WATER

160 Mission Statement Comply with State and Federal wastewater treatment standards in the most efficient manner possible. Maintain a safe and productive work environment and an employee benefit package commensurate with duties and community standards. Convey a positive influence on all aspects of our environment and community. Description of Division The Water Pollution Control Division is comprised of the wastewater treatment plant and a staff of 8.5 employees. It provides activities necessary to clean the wastewater to State of Nebraska standards prior to discharge into the Elkhorn River, and to treat the residual solids to Environmental Protection Agency standards prior to being returned to farm land as a product for beneficial use. Water Pollution Control Organizational Chart CHEMICAL TECHNICIAN CITY ADMINISTRATOR PUBLIC WORKS DIRECTOR WASTEWATER PLANT SUPERINTENDENT WASTEWATER SUPERVISOR WASTEWATER PLANT OPERATOR I (4.5) SECRETARY II 160 Services Wastewater treatment Receive and treat overland wastes Bio-solids treatment for beneficial use Industrial wastewater monitoring and billing preparation Lab analysis for smaller communities Maintain equipment and assist with operations at the Transfer Station Provide contract Wastewater Operator services for smaller communities Conduct Stormwater sampling activities Accomplishments for Bid out and replaced the following: o Several wastewater samplers, o Exhaust fan 5 for SHB, o #3 Trickling Filter Pump overhaul, o 3 walk-in doors around the plant, o One set of SBR diffusers, o One flow meter, o Screen Building unit heater and supply fan, o SHB Northeast Rooftop Heater, o SBR Mixer electrical cables, and o Replacement of our used dump truck with a Street Division dump truck. Staff completed the following major projects: o Pumped down the No. 2 SBR basin to complete a 4- year routine diffuser replacement and mixer motor overhaul, o Unexpectedly, the No. 1 SBR basin required diffuser replacements due to fouled diffusers, Permit limits were met while the basins were offline o Replacement of the corroded tail pulley assemblies and belting on all three conveyors, o Replacement of the 1980 #1 Sludge Thickener pump and spare backup that is beyond repair, WATER POLLUTION CONTROL

161 o Wrote bid specs for contractors to replace the motor control center and associated ductbank wiring for the Aeration Building, o Worked with engineers and contractors on the completion of replacement of two influent pumps (#5 & 6), and o Wrote bid specs for contractors to replace the two trickling filter distributors. Staff attended the following training: o One staff member attended fundamentals of Supervisory Control And Data Acquisition (SCADA) training, and o Staff attended Computerized Maintenance Management Software (CMMS) training. Received the following overland waste and treated: o Spent Adhesive from Flexcon in Columbus, o Lagoon wastewater from Country Village Trailer Court, o Corn mash from Louis Dreyfus Ethanol Plant and Husker Ag, o Truck wash from Norfolk Iron and Metal, and o Several car washes around the area. Received domestic plant sludge from: o City of Stanton, o City of Battle Creek, o Village of Meadow Grove, and o Nucor. Continued to work on sewer rate program with Public Works Director. WPC lab staff successfully completed the annual EPA Discharge Monitoring Report Quality Assurance (DMRQA) evaluation by accurately accessing all analytes. This is a mandatory quality assurance program for wastewater labs. Continued to participate in SID/Woodland Park consultations regarding their sewer connection and flow. Construction of Woodland Park s retention lagoon was completed in the Fall of Gave a tour to Norfolk 101: Citizens Academy as well as City staff. At their request, assisted local communities with plant operations and review of their draft NPDES permits. Compiled and submitted the required annual Solids Management Plan to the EPA and NDEQ using the new online form. Started using EPA s new online reporting for our Discharge Monitoring Reports, instead of submitting paper copies. Was surprised inspected by DEQ with no issues. WPC received the Scott Wilbur and Safety Award at the 2016 Fall Conference (12 years in a row). Goals for Replace diffuser membranes in the next SBR basin. Replace SCADA computers in their time of rotation. Replace samplers. Staff to install UV module seal upgrade to prevent moisture. Replacement of the Komline Belt Press plows that are worn and well beyond their 20-year life. Replacement of portable radios in conjunction with all Public Works radio system. Thickener Sludge Depth Meter Replacement (1 of 2). Replacement of the Thickener Solids Analyzer (1 of 2) to analyze percent of solids being pumped. Replacement of two Effluent Pumps. #1 Primary Drive overhaul of a 1970 Primary drive. #1 Thickener Drive overhaul of a 1970 Thickener drive. Contractors sandblast and paint #1 Primary and #1 Thickener mechanisms. Headworks Analysis: engineering services to research grit/grease and mud/car wash handling at our Headworks. We are also experiencing sever corrosion on headworks slide gates. Holding Tank Well Repair: hire engineers to spec and bid contractors to sandblast and repaint the deteriorated epoxy wall. In 1993, the upper half of the interior Holding Tank was sand blasted and coated with an epoxy, because of the deteriorated cement. The epoxy is now peeling off and needs repeated as before to extend the life of the structure. WATER POLLUTION CONTROL

162 Overland Receiving Station: using the engineer s Headworks analysis, implement a receiving station for trucked in mud/car wash pits. Performance Measures Actual Estimated Estimated Demand: Plant Flow, MGD Overland Wastes Received (Gallons) 7,510,991 1,500,000 1,500,000 Million Gallons Treated (x1,000,000,000) 1,099 1,100 1,100 Average Daily lbs of BOD 12,444 13,000 13,000 Average Daily lbs of SS 10,069 10,000 10,000 Average Daily lbs of TKN 1,051 1,200 1,200 Solids Out (Tons/Day) # of Equipment Maintained (including Transfer Station) Workload: Total # of WPC Work Orders Generated & Completed 3,001 3,955 3,955 Total # of Transfer Station Work Orders Completed # of small communities lab analyses performed # of Industries monitored and billed # of In-house lab analyses performed 4,269 4,000 4,000 Productivity: Treatment cost/million Gallons (Domestic) $2, $2, $2, WPC assets maintained (Million dollars) $20.40 $20.50 $20.50 Effectiveness: % of CBOD removed % of SS removed % of Ammonia removed % of Nitrogen removed % of Phosphorous removed # of plant equipment failure responses (call backs) Water Pollution Control Personnel Roster Position Wage Grade FY FY FY FY Wastewater Plant Superintendent Wastewater Supervisor Wastewater Plant Operator I Chemical Technician Secretary II Total Current Budget Issues Personnel: The personnel costs increase $19,489 or 2.80% due to normal merit pay increases, and a 2.5% cost-ofliving increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: Capital outlay is budgeted at $590,400 compared to $973,400 the prior year. The following items are included for this year: $15,000 for SHB rooftop heaters, $18,000 for HVAC replacement, $15,000 for RAS pump replacement, $25,000 for 2 pre-aeration blower VFDs, $45,000 for utility tractor replacement $18,000 for thickener sludge depth meter, $16,000 for thickener solids analyzer, $10,000 for effluent pump replacement, $38,400 for radio replacement, $60,000 for #1 primary drive overhaul, $80,000 for #1 sludge thickener drive overhaul, $50,000 for headworks analysis, and $200,000 for overland receiving station. WATER POLLUTION CONTROL

163 Significant changes to other categories: Operating Supplies and Material costs increase $370 or 1.59% due to an increase in fuel costs. Utilities and Maintenance costs increase $356,934 or 36.97% due to increases in water, building ground and plant maintenance costs, and machinery and vehicle maintenance costs. Legislative Affairs decrease $10,343 or 41.03% due to a decrease in travel and training costs, which is partially offset by an increase in dues and publications. Other Administration and Overhead decrease $1,890 or 1.37% due to a decrease in office supplies, which is partially offset by increases in insurance, telephone, and other professional fees. Debt Service payments are eliminated due to bond issue payoff. 163 WATER POLLUTION CONTROL

164 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 225 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 636, , , , ,312 19, % Operating Supplies & Materials 16,961 15,079 16,818 23,278 23, % Other Operating Costs 25,157 28,627 17,215 76,000 76, Utilities & Maintenance 758, , , ,522 1,322, , % Legislative Affairs 10,696 10,318 17,557 25,209 14,866 (10,343) (41.03%) Other Admin. & Overhead 98, , , , ,242 (1,890) (1.37%) Gov't Subsidies & Transfers , Capital Outlay 668, , , , ,400 (383,000) (39.35%) Debt Service - Principal 605, , , ,000 - (630,000) (100.00%) Debt Service - Interest 23,715 15,398 5,355 5,355 - (5,355) (100.00%) Total Expenditures 2,844,259 2,346,891 2,995,138 3,532,719 2,878,924 (653,795) (18.51%) Dollars 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 Expenditure History Utilities & Maintenance 45.93% Budget Legislative Affairs 0.52% Other Admin. & Overhead 4.73% Capital Outlay 20.51% 1,000, , Actual Actual Budget Fiscal Year Estimated Budget Other Operating Costs 2.64% Operating Supplies & Materials 0.82% Personnel Costs 24.85% 164 WATER POLLUTION CONTROL (WPC)

165 Mission Statement To maintain the sanitary sewer infrastructure system in a cost effective manner to ensure sanitary sewers flow freely. Description of Division Maintain the City's sanitary sewer collection system and its fourteen lift stations, repair broken sewer lines, upgrade sewer manholes, rings and covers, repair pumps and pump seals, electric motors and level control systems. Read all water meters on a bi-monthly basis. UTILITY WORKER (2) Sewer Organizational Chart CITY ADMINISTRATOR PUBLIC WORKS DIRECTOR WATER & SEWER DIRECTOR* WATER PLANT SUPERVISOR* SEASONAL HELP METER READER/ MAINTENANCE WORKER *The Water and Sewer Director and Water Treatment Supervisor are budgeted in Water Fund. 165 Services Inspection of all sewer lift stations twice weekly On-call 24 hours and standby duty during weekends to handle emergency calls Clean the sewer collection system as preventive maintenance, approximately 133 miles Accomplishments for Maintained a reputable safety record. Cleaned entire sewer system. Preventive Maintenance of City sewer mains and interceptors ensuring no backups at customer s properties. Inspected all sewage manholes and recorded all deficiencies with sewage manholes during the annual cleaning. Aided contractor with construction services South West Sewer Phase 2. Goals for Preventive Maintenance of City sewer collection mains and interceptors ensuring no backups at customer s properties. Maintain a reputable safety record. Staff will repair all deficiencies with sewage manholes. Assist contractor with construction on sewer projects. Performance Measures Actual Estimated Estimated Demand: Sewer Lines Maintained (Miles) # of Customers 9,354 9,375 9,410 Lift Stations Maintained Workload: Sewer Inspections SEWER MAINTENANCE

166 Service Calls During Working Hours Service Calls After Working Hours Lift Station Malfunctions After Working Hours Productivity: See Water Pollution Control (WPC) Effectiveness: See Water Pollution Control (WPC) Sewer Personnel Roster Position Wage Grade FY FY FY FY Water & Sewer Mechanic Utility Worker Meter Reader Meter Reader/Maintenance Worker Seasonal Worker Total Current Budget Issues Personnel: The personnel costs increase $7,326 or 2.96% due to normal merit pay increases, and a 2.5% cost-ofliving increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: The infrastructure capital items included in this budget are as follows: $20,000 for sewer main extensions larger than 8. $245,000 for Northeast Industrial Sewer Phase II. $705,000 for Northeast Industrial Sewer Phase III. $900,000 for extending sewer from 27th and Hwy 275 West to 37th and Hwy 275. $530,000 for 1st Street and Monroe Avenue sewer main replacement. $2,035,000 for Highway 35 interceptor. $3,040,000 for Omaha Avenue lift station and force main $350,000 for extending sanitary sewer from 13th and Monroe to 25th and Omaha (SW Ph II). $1,100,000 for extending sanitary sewer from 25th and Omaha to Hwy 275 (SW Ph III). $1,120,000 for extending sewer to 25th Street and Eisenhower Avenue. Machinery and equipment capital items include radios for $13,200, replacement of 1990 sewer jetter truck for $150,000, and replacement of service truck for $26,500. Significant changes to other categories: Operating Supplies & Materials increase by $324 or 2.49% due to an increase in fuel costs. Utilities & Maintenance increase by $8,100 or 7.09% due to an increase in building ground and plant maintenance costs. Legislative Affairs decrease $1 or 0.02% due to a decrease in travel and training costs. Other Administration & Overhead increase $86,121 or 21.80% due primarily to increases in postage and other professional fees, which primarily includes bond issuance costs and an increase in administration fees. This is partially offset by a decrease in insurance costs. Debt Service increases $236,943 or 36.64% due to a new bond issue. 166 SEWER MAINTENANCE

167 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 226 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 219, , , , ,025 7, % Operating Supplies & Materials 11,743 9,208 9,694 13,007 13, % Utilities & Maintenance 69,360 69,367 45, , ,357 8, % Legislative Affairs 722 1,232 1,000 5,376 5,375 (1) (0.02%) Other Admin. & Overhead 223, , , , ,174 86, % Capital Outlay 2,044, ,296 2,088,069 8,919,700 10,234,700 1,315, % Debt Service - Principal 114,000 90, , , , , % Debt Service - Interest 135, , , , ,401 87, % Total Expenditures 2,818,594 1,742,422 2,808,757 10,341,800 11,995,613 1,653, % Expenditure History 14,000,000 12,000,000 Legislative Affairs 0.04% Other Admin. & Overhead 4.01% Budget Dollars 10,000,000 8,000,000 6,000,000 4,000,000 2,000, Actual Actual Budget Fiscal Year Estimated Budget Utilities & Maintenance 1.02% Operating Supplies & Materials 0.11% Personnel Costs 2.13% Debt Service 7.37% Capital Outlay 85.32% 167 SEWER MAINTENANCE

168 Mission Statement Provide an efficient disposal system for Municipal Solid Waste that meets regulatory requirements and the needs of the community. Description of Division The Solid Waste Division, Transfer Station, is responsible for the inspection and transfer of solid waste from residential and commercial collection vehicles, to semi-trailers, or to alternate disposal and recycle points as determined by the waste type. The Household Hazardous Waste facility (HHW) provides a service to the home owner to remove sources of pollution from entering the ecosystem. The City owns, maintains, and operates the Over the Road trucks that haul the Solid Waste to the Coalition landfill in City owned trailers. Solid Waste Organizational Chart CITY ADMINISTRATOR PUBLIC WORKS DIRECTOR WASTEWATER PLANT SUPERINTENDENT SOLID WASTE SUPERVISOR SOLID WASTE OPERATOR (5) SCALE CLERK (1.38) 168 Services Screen waste to insure compatibility with Subtitle D landfills Route non-compatible wastes (asbestos, appliances, batteries, grass, liquid, oil, concrete, lumber, timber, tires) to alternate disposal sites Transfer compatible wastes from individual, business, and contract hauler vehicles to semi-trailers for transport, or to alternate disposal and recycling points Account for the volume of waste and the associated fees in and out of the Station HHW provides a safe disposal site for chemicals generated by the home owner. Accomplishments for A new trailer has been ordered and expected to be delivered before July 1, Due to highway detours to the landfill, 3 trucks and drivers have been utilized. Each load now takes an extra 4 gallons of fuel. The spare OTR/spare shag had the Turbo replaced, suspension air bags on frame and cab replaced, steering box replaced, and antifreeze leaks repaired. Alter Corporation picks up the appliances every other month. We receive around $ per pick-up. Staff replaced bad floor slats in 3 trailers to increase the life expectancy. Brush and Pallet piles were burned 3 times this past year. Acquired a RCRA Hazardous Waste number (NER ), which allows us to ship a larger quantity of waste at a time. Shipped barrels of oil based paint/solvents to be recycled, twice. Staff assisted a vendor in the removal and installation of the Knuckle boom. Vendor repaired hydraulic cylinders and worn parts. Landfill tonnage is estimated at 100,000 tons for the year. Construction of a new landfill cell has been completed but have not received permission from NDEQ to place trash in it. SOLID WASTE MANAGEMENT

169 We are expecting to receive 28,500 Transfer Station customers by year s end, and they will have delivered 33,000 tons of waste, 10,570 customers of yard waste/brush, and 435 tires. Goals for Ship household hazardous waste. Have a Site Master Plan developed. Purchase one Transfer Trailer to maintain a reliable fleet. Performance Measures Actual Estimated Estimated Demand: Municipal Solid Waste, tons received 33,556 30,571 30,571 Demolition Waste, tons received Appliances received Batteries received Crematory, tons received Refrigeration units received Yard Waste, bags received 12,802 12,000 12,000 Yard Waste, tons received Tires received Tree waste, tons received Workload: Crematory, cycles completed Peak month tons 3,158 3,100 3,100 Average daily tonnage Peak month tickets 3,301 6,325 3,325 Average daily ticket count Total scale transaction count 31,146 31,000 31,000 Total Bush & Tree transaction count 3,863 3,500 3,500 Total Grass transaction count 6,799 7,000 7,000 Total Municipal Solid Waste ticket count 16,993 16,000 16, Productivity: Municipal Solid Waste, tons shipped 34,087 31,500 31,500 Municipal Solid Waste, loads shipped 1,982 1,800 1,800 Effectiveness: Loads out, average payload (tons) Crematory, lb. per cycle Solid Waste Personnel Roster Position Wage Grade FY FY FY FY Solid Waste Supervisor Transfer Station Plant Operator I Solid Waste Operator Wastewater Plant Operator I Scale Clerk Total Current Budget Issues Personnel: The personnel costs increase $16,866 or 3.19% due to normal merit pay increases, and a 2.5% cost-of-living increase. Personnel costs are also impacted by adjustments in health insurance costs, workers compensation insurance, and VEBA contribution. Capital Outlay: The following is included in the fiscal year budget: Truck Maintenance Facility and Equipment for $1,625,000, engineering services for $233,000, trailer for $74,500, radio upgrade for $24,000, compost turner for $35,000, utility tractor (used from WPC) for $8,000, and power washer for $8,000. Significant changes in other expenditure categories: Operating Supplies and Materials increase $15,379 or 16.35% due to increases in uniforms and fuel, and minor tools costs. Other SOLID WASTE MANAGEMENT

170 Operating Costs increase $4,800 or 0.56% due to an increase in garbage fees. Utilities and Maintenance increase $79,085 or 55.35% due to increases in building, ground and plant maintenance, machinery and vehicle maintenance, and communications equipment maintenance. Legislative Affairs decrease $2,858 or 34.58% due to decreases in travel and training. Other Administration and Overhead increase $77,068 or 79.64% due to increases in insurance and other professional fees, which includes $65,000 for master site plan, bond issuance costs, and a ½% increase in administration fees. 170 SOLID WASTE MANAGEMENT

171 DIVISION EXPENDITURE BUDGET SUMMARY DIVISION CODE: 228 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Personnel Costs 400, , , , ,279 16, % Operating Supplies & Materials 16,554 59,937 82,163 94, ,452 15, % Other Operating Costs 1,152, , , , ,660 4, % Utilities & Maintenance 71, , , , ,964 79, % Legislative Affairs 3,330 2,824 2,178 8,266 5,408 (2,858) (34.58%) Other Admin. & Overhead 52,202 57,007 46,526 96, ,837 77, % Capital Outlay 196, ,151 74,500 98,500 2,007,500 1,909, % Debt Service - Principal 16, ,377 57, % Debt Service - Interest ,000 81, % Total Expenditures 1,910,332 1,936,436 1,649,049 1,819,760 4,057,477 2,237, % Dollars 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 Expenditure History Personnel Costs 13.47% Debt Service 3.41% Operating Supplies & Materials 2.70% Budget Other Operating Costs 21.06% Utilities & Maintenance 5.47% Legislative Affairs 0.13% Other Admin. & Overhead 4.28% Actual Actual Budget Fiscal Year Estimated Budget Capital Outlay 49.48% SOLID WASTE MANAGEMENT 171

172 FUND BUDGET SUMMARY FUND CODE: 701 Dollar Percent Increase Increase Description Actual Actual Estimated Budget Budget (Decrease) (Decrease) Beginning Fund Balance 4,036,452 4,500,046 4,656,593 4,789,088 4,706,951 (82,137) (1.72%) Internal Service Fund Billing 2,937,600 3,036,591 3,108,530 3,182,844 3,170,701 (12,143) (0.38%) Other Interest Income 6,440 6,961 17,555 17,875 35,297 17, % Total Revenue 2,944,040 3,043,552 3,126,085 3,200,719 3,205,998 5, % Total Funds Available 6,980,492 7,543,598 7,782,678 7,989,807 7,912,949 (76,858) (0.96%) Personnel Costs 2,345,896 2,714,222 2,898,884 3,235,116 3,326,122 91, % Other Admin. & Overhead 134, , , , ,753 (111,141) (33.79%) Total Expenditures 2,480,446 2,887,005 3,075,727 3,564,010 3,543,875 (20,135) (0.56%) Ending Balance 4,500,046 4,656,593 4,706,951 4,425,797 4,369,074 (56,723) (1.28%) Total Funds Accounted For 6,980,492 7,543,598 7,782,678 7,989,807 7,912,949 (76,858) (0.96%) Dollars 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 - Revenue/Expenditure History Actual Actual Budget Fiscal Year Estimated Revenue Expenditure Budget 172 Internal Service Fund Billing 98.90% Personnel Costs 93.86% Revenue Other Interest Income 1.10% Expenditure Other Admin. & Overhead 6.14% GROUP INSURANCE FUND

173 SCHEDULE OF BONDED INDEBTEDNESS BY MATURITIES DEBT SUMMARY & Beyond Total Total General Obligation Principal 1,910,000 1,880,000 1,895,000 1,910,000 1,650,000 1,660,000 1,720,000 1,725,000 14,350,000 Bonds Interest 347, , , , , ,744 68, ,741 1,572,626 Total Special Assessment Principal 245, ,000 85,000 85,000 90,000 35,000 40,000 80, ,000 Bonds Interest 13,552 10,775 7,254 5,955 4,479 2,765 2,208 2,328 49,316 Total Revenue Bonds Principal 290, , , , , , ,000 3,555,000 5,700,000 Interest 159, , , , , , , ,568 1,582,150 Total Bonds Principal 2,445,000 2,415,000 2,280,000 2,300,000 2,050,000 2,015,000 2,090,000 5,360,000 20,955,000 Interest 519, , , , , , , ,637 3,204,092 Combined 2,964,701 2,878,222 2,681,533 2,639,037 2,328,690 2,250,753 2,282,519 6,133,637 24,159, DEBT SUMMARY

174 SCHEDULE OF BONDED INDEBTEDNESS BY MATURITIES GENERAL OBLIGATION BONDS & Beyond Total 2010 Public Safety Bonds Principal 20,000 25,000 25,000 25,000 25, ,000 (Interest 2.70% %) Interest 3,703 3,163 2,438 1, , City Park & Rec Project Principal 725, ,000 (Interest 2.50%) Interest 9, , Parking District Refunding Bonds Principal 15,000 15,000 15,000 15,000 15,000 15,000 20, , ,000 (Interest 0.90% %) Interest 5,898 5,729 5,496 5,204 4,855 4,458 3,948 9,774 45, Economic Development Fund Bond Principal 335, , , , ,390,000 (Interest 2.70% %) Interest 45,495 36,450 25,755 13, , Public Safety Bonds Principal 80,000 80,000 85,000 85,000 85,000 85,000 90, ,000 1,180,000 (Interest 0.90% %) Interest 26,467 25,630 24,543 23,191 21,584 19,761 17,748 53, , City Park & Recreation Refunding Bonds Principal 615,000 1,290,000 1,300,000 1,300,000 1,400,000 1,425,000 1,475,000-8,805,000 (Interest 2.00% -3.00%) Interest 211, , , ,500 72,000 43,750 14, , Public Safety Bonds Principal 30,000 30,000 30,000 30,000 30,000 35,000 35, , ,000 (Interest 0.89% -2.99%) Interest 9,263 8,996 8,699 8,357 7,969 7,537 6,964 27,614 85, Refunding City of Norfolk Facilities Bond Principal 90,000 95,000 90,000 95,000 95, , , ,000 1,440,000 (Interest 1.34% -3.24%) Interest 35,301 34,095 32,632 31,066 29,223 27,238 24,998 96, ,028 Total General Obligation Principal 1,910,000 1,880,000 1,895,000 1,910,000 1,650,000 1,660,000 1,720,000 1,725,000 14,350,000 Bonds Interest 347, , , , , ,744 68, ,741 1,572,626 Combined 2,257,115 2,177,413 2,139,063 2,098,661 1,786,481 1,762,744 1,788,408 1,912,741 15,922, DEBT SUMMARY - GENERAL OBLIGATION BONDS

175 SCHEDULE OF BONDED INDEBTEDNESS BY MATURITIES SPECIAL ASSESSMENT BONDS & Beyond Total 2012 Various Purpose Bonds PD 495, WD 119 Principal 50,000 50,000 50,000 50,000 55, ,000 (Interest 1.25% to 2.20%) Interest 4,535 3,910 3,135 2,235 1, , Refunding Series 2009 Bonds PD , WD 118 SD246 Principal 160, , ,000 (Interest 1.15% %) Interest 4,240 2, , Various Purpose Bonds PD Principal 35,000 35,000 35,000 35,000 35,000 35,000 40,000 80, ,000 (Interest 0.89% %) Interest 4,777 4,465 4,119 3,720 3,269 2,765 2,208 2,328 27,651 Total Special Assessment Principal 245, ,000 85,000 85,000 90,000 35,000 40,000 80, ,000 Bonds Interest 13,552 10,775 7,254 5,955 4,479 2,765 2,208 2,328 49,316 Combined 258, ,775 92,254 90,955 94,479 37,765 42,208 82, , DEBT SUMMARY - SPECIAL ASSESSMENT BONDS

176 SCHEDULE OF BONDED INDEBTEDNESS BY MATURITIES REVENUE BONDS & Beyond Total 2011B Combined Revenue Bonds Principal 95,000 95, , , , , ,000 1,025,000 1,735,000 (Interest % %) Interest 55,335 53,578 51,478 49,028 46,284 43,318 40, , , B Combined Revenue Bonds Principal 195, , , , , , ,000 2,530,000 3,965,000 (Interest % %) Interest 103, ,456 98,738 95,393 91,446 86,926 81, ,099 1,076,570 Total Revenue Bonds Principal 290, , , , , , ,000 3,555,000 5,700,000 Interest 159, , , , , , , ,568 1,582,150 Combined 449, , , , , , ,903 4,138,568 7,282, DEBT SUMMARY - REVENUE BONDS

177 History of Ending Bond Indebtedness Last Ten Fiscal Years Dollars (in Thous.) 40,000 36,000 32,000 28,000 24,000 20,000 16,000 12,000 8,000 The City is budgeting $3,105,000 Special Assessments Bonds in FY for street, water and sewer infrastructure improvements, $2,535,000 General Obligation Bonds for public safety purchases, flood control improvements, and radios for various divisions and $13,475,000 Revenue Bonds for various water and sewer improvements and truck maintenance facility. Revenue Bonds Special Assessment Bonds 4,000 0 General Obligation Bonds Fiscal Year Budget 177 DEBT SUMMARY - BOND INDEBTEDNESS

178 FUTURE CAPITAL IMPROVEMENTS IN CIP BUDGET (projects greater than $50,000) SOURCE DIVISION EQUIPMENT/PROJECT FY FY FY FY FY OF FUNDS JUSTIFICATION FOR PURCHASE/IMPACT ON OPERATIONS Current capital outlays with an estimated cost over $100,000 are evaluated for the impact of purchase on current and future operations on summary sheets at the end of this spreadsheet. Items costing less than $100,000 are generally due to scheduled replacement of worn out equipment and are determined to have an immaterial change to future operations. Administration Data Server 14,000 General Fund Replacement. Mail Archive Server 10,000 General Fund Replacement. Copier 20,000 General Fund Replacement. Total 44, Engineering GPS Data Control System 8,000 General Fund Required update. Total 8, Street LED Signs 30,000 General Fund Scheduled replacement. Brine Maker 25,000 General Fund Scheduled replacement. Snow Plow 17,000 General Fund Scheduled replacement. Pickup Truck Plow 7,000 General Fund Scheduled replacement. Total 79, Park NECC Funded Improvements 12,500 General Fund Funding for improvements to facilities NECC and others use. Maintenance Park/Playground Upgrades 8,000 General Fund Enhance and add to existing playground. 6" Front End Mower 15,000 General Fund Scheduled replacement of an existing mower. Infield Groomer 10,000 General Fund Scheduled replacement. DTR Grant Match 30,700 General Fund Improvements to the downtown area. Total 76, Library Self-checkout machine 30,000 General Fund Replacement of aging technology. Security Gates 15,000 General Fund Replacement of aging technology. Total 45, Fire Rural signage 10,000 General Fund Support the installation of individual address signs for rural locations. Color copier permits 5,000 General Fund Replacement. Staff pickup 37,000 General Fund Replacement of aging staff vehicle. Total 52, Police Cruisers (3) 88,200 General Fund Replaces high mileage cruisers for better performance and reduced maintenance. IBM replacement server 17,800 General Fund Replacement. Total 106, CHAF Street Maintenance Contract 2,750, , , , ,000 CHAF Revenues Contract of maintenance work including asphalt overlay, crack sealing Work and concrete repair projects on streets in Norfolk. M(147) 8th Street - Michigan 625,000 CHAF Revenues Reconstruct deteriorating street to improve ridability and decrease Avenue to Omaha Avenue maintenance costs. M(153) Box Culvert on South 5th 125,000 CHAF Revenues Replace deteriorating steel culverts located over the Corporation Street over Corp. Gulch Gulch. CAPITAL IMPROVEMENTS SUMMARY 178

179 BUDGET FUTURE CAPITAL IMPROVEMENTS IN CIP (projects greater than $50,000) SOURCE DIVISION EQUIPMENT/PROJECT FY FY FY FY FY OF FUNDS JUSTIFICATION FOR PURCHASE/IMPACT ON OPERATIONS Current capital outlays with an estimated cost over $100,000 are evaluated for the impact of purchase on current and future operations on summary sheets at the end of this spreadsheet. Items costing less than $100,000 are generally due to scheduled replacement of worn out equipment and are determined to have an immaterial change to future operations. CHAF M(177) Widen Benjamin from 770,250 2,183,000 CHAF Revenues Improve street to add capacity and improve safety. (Continued) 4-lane to 5-lane 13th to 1st Street M(189) Reconstruct Bridge on 950,000 CHAF Revenues Rehabilitation of a deteriorating bridge on Norfolk Avenue, west of Norfolk Avenue & Cottonwood Cottonwood Avenue. M(193) Reconstruct Braasch Ave. 315, , , ,000 CHAF Revenues Project includes concrete street, driveway and sidewalk reconstruction, between 1st Street and 5th Street along with subgrade and minor storm sewer improvements. M(194) Prospect Avenue; 27th 650,000 Project includes concrete street, driveway and sidewalk reconstruction, Street to Ridgeway Drive along with subgrade and minor storm sewer improvements. M(199)Bridge Maintenance 500,000 CHAF Revenues Improvements for various bridges per study completed by Olsson Improvements Associates. Total 4,200,000 2,365,000 1,245,000 2,015,250 3,428, Fund IBM 15 Replacement Server 4, Fund Revenue Improve efficiency. Long-Term Recorder 4, Fund Revenue Improve efficiency. Programming Long-Term Recorder 4, Fund Revenue Improve efficiency. Total 13, Wireless 911 IBM 15 Replacement Server 17,982 Wireless 911 Fund Improve efficiency. Fund Revenue Long-Term Recorder 20,655 Wireless 911 Fund Improve efficiency. Revenue Programming Long-Term Recorder 17,820 Wireless 911 Fund Improve efficiency. Total 56, Revenue Capital Administration: Projects Unspecified Council Priority 184,500 Council Priorities Mayor & City Council have identified possible priority projects, but Project(s) property tax have not decided which to pursue. Network Switches - All Divisions 100,000 General Revenues Replacement of worn network switches. Engineering: Radios 15,080 Lease Purchase Replace old obsolete radios. Street: Sander/Snow Plow 105,000 General Revenues Replace 18 year old truck. Sweeper 130, ,000 General Revenues Replace 7 year old sweeper on set schedule. Landscape Master Plan 282, , , ,586 General Revenues The City of Norfolk desires to improve the image of the community by improving the landscaping along major streets. Boom Truck 75,000 General Revenues Scheduled fleet replacement. Tractor 85, ,000 General Revenues Scheduled fleet replacement. Large Sewer Cleaner 90,000 General Revenues Scheduled fleet replacement. Flood Control Renovation 100,000 General Revenues Improvements to minimize potential flooding. Snow Blower 65,000 65,000 General Revenues Scheduled fleet replacement. Asphalt Storage Tank 75,000 General Revenues Trailer used for storage of asphalt. 179 CAPITAL IMPROVEMENTS SUMMARY

180 BUDGET FUTURE CAPITAL IMPROVEMENTS IN CIP (projects greater than $50,000) SOURCE DIVISION EQUIPMENT/PROJECT FY FY FY FY FY OF FUNDS JUSTIFICATION FOR PURCHASE/IMPACT ON OPERATIONS Current capital outlays with an estimated cost over $100,000 are evaluated for the impact of purchase on current and future operations on summary sheets at the end of this spreadsheet. Items costing less than $100,000 are generally due to scheduled replacement of worn out equipment and are determined to have an immaterial change to future operations. Capital Spray Patcher 235,000 General Revenues Spray injection method for pothole repair. Projects Utility Box 60,000 General Revenues Replacement. (Continued) Water Truck 85,000 General Revenues Replacement. Radios 189,160 Lease Purchase Replace old obsolete radios. Park: Entrance Signs 40,000 General Revenues Continuation of program to add entrance signs to city entrances. North Fork Riverfront Trail Project 525,300 Keno/Grants Enhance and add to existing trail system. Trail Enhancement 105,000 Keno Enhance and add to existing trail system. Improvements to Park West of 455,400 Council Priorities/ Development of soccer fields and parking. YMCA Keno Funds Flood Control Trail Under Omaha 88,010 General Revenues/ Enhance and add to existing trail system. Avenue Grants Splash Pad West of YMCA 250,000 Donations Amenity improvements. Johnson Park Enhancement 52,500 Keno Funds Funds to develop/enhance Johnsons Park. South Trail Loop 150, , ,000 Keno Funds Enhance and add to existing trail system. Ta-Ha-Zouka Enhancement 25,300 General Revenues Enhance and add to Ta-Ha-Zouka Park. Ta-Ha-Zouka Phase III Soccer 100, ,000 Keno Funds Funds to develop and expand the youth soccer fields. Skatepark Rebuild Improvements 250,000 Keno Funds/ Renovation of existing skatepark into a concrete based facility. Donations YMCA Funding 625,000 Keno Funds Contribution towards YMCA expansion. Radios 42,160 Lease Purchase Replace old obsolete radios. Library: Library Addition 4,094,000 Sales Tax/ Grant Update and addition to library building. Public Works - Other: Spring Branch Drainage 155,000 Flood Control Project includes drainage improvements to minimize potential Improvements Bonds downstream industrial flooding. Land for Victory Road Detention 21,000 Flood Control Project includes drainage improvements to minimize potential Cell Bonds/TIF downstream flooding due to residential development. Drainage at Victory Road/Sunrise 655,000 Flood Control Project includes drainage improvements to minimize potential Bonds/TIF downstream flooding due to residential development. Fire: Ambulance 244, ,000 Public Safety Bond Ambulance to replace 14 year old unit. Aerial Fire Apparatus 1,300,000 Norfolk Rural Fire Replacement of existing unit reaching end of useful life. District/Public Safety Bond Hazmat Equipment 60,000 Public Safety Bond Replace aging equipment needed for haz-mat response. Radios 239,200 Public Safety Bond Replace old obsolete radios. Training Tower Repairs 100,000 Public Safety Bond Repair structural damage to burn rooms. Police: MDC Upgrade 100,000 Public Safety Bond Regular rotation of in-car computers. Radios 139,760 Public Safety Bond Replace old obsolete radios. In-Car Video Camera Upgrade 75,000 Public Safety Bond Upgrade of in-car video camera. CAPITAL IMPROVEMENTS SUMMARY 180

181 BUDGET FUTURE CAPITAL IMPROVEMENTS IN CIP (projects greater than $50,000) SOURCE DIVISION EQUIPMENT/PROJECT FY FY FY FY FY OF FUNDS JUSTIFICATION FOR PURCHASE/IMPACT ON OPERATIONS Current capital outlays with an estimated cost over $100,000 are evaluated for the impact of purchase on current and future operations on summary sheets at the end of this spreadsheet. Items costing less than $100,000 are generally due to scheduled replacement of worn out equipment and are determined to have an immaterial change to future operations. Capital Radio Console Upgrade 175,000 Public Safety Bond Upgrade of radio console. Projects CAD/Records/Jail MDC Upgrade 440,000 Public Safety Bond Improve office efficiency. (Continued) Wireless 911 portion of CAD upgrade 160,000 Wireless E911 Improve office efficiency. E911 Equipment 62,000 Public Safety Bond Replace equipment at end of expected life-cycle. E911 Equipment 248,000 Wireless E911 Replace equipment at end of expected life-cycle. Boiler Replacement 150,000 Public Safety Bond Replacement. Total 9,583,822 1,604, ,969 1,665,339 1,041,586 Special Infrastructure in new 624,000 Special Project consists of installation of streets, sidewalks and storm Assessments Developments Assessments sewers in newly developed areas. Wat. Dist. & Sew. Coll. Sys. 2,359,000 Special Project consists of installation of water and sewer systems to Assessments benefit specific property owners. Total 2,983, Water Oversize Piping Larger than 8" 40,000 Water Revenue Water Division pays for the additional cost difference for pipe over 8" in new developments. (E4) Water Main Improvements; 705,000 Water Revenue Project includes improvements to a water main located at Omaha Omaha Avenue and Victory Road Avenue and Victory Road. Water Revenue This will extend water service to industries in the Northeast industrial tract. Erect Communication Tower at 230,000 Water Revenue The elevated tank is not utilized in the water distribution system. 25th Street & Prospect Avenue The tank is in need of repairs that will cost in excess of $300,000. A communication tower will be erected to replace antenna stand function of the water tower. Trunking system for Communi- 250,000 Water Revenue Upgrade City wide communications network. cation Tower Water Line on Victory Road; 130,000 Water Revenue Water main has experienced several breaks over the past few years. Magnet to Eisenhower Replace water main 19th, 21st Drive, 90,000 Water Revenue Water main has experienced several breaks over the past few years. and 14th & Koenigstein Industrial Tank at Victory Road & 2,300,000 Water Revenue Improves water system operations during peak days in northeast Benjamin Avenue industrial area. Water Extension on 1st Street & 1,150,000 Water Revenue Provides expansion of water system south of Elkhorn River with 13th Street to South of Elkhorn redundancy. Connect 1st Street extension to 620,000 Water Revenue Provides expansion of water system south of Elkhorn River with 13th Street extension redundancy. 1st & Braasch Water Main Replac. 17,000 31,000 31,000 31,000 Water Revenue This street is scheduled for replacement and water main will be replaced at this time due to age of water main. Zone 2 Northwest Line 12" 2Z1 640,500 Water Revenue This water main will be constructed in northwest Norfolk as development occurs. Sheridan Drive Line 12" 2Z2 365,400 Water Revenue This water main will be constructed in northwest Norfolk as development occurs. CAPITAL IMPROVEMENTS SUMMARY 181

182 BUDGET FUTURE CAPITAL IMPROVEMENTS IN CIP (projects greater than $50,000) SOURCE DIVISION EQUIPMENT/PROJECT FY FY FY FY FY OF FUNDS JUSTIFICATION FOR PURCHASE/IMPACT ON OPERATIONS Current capital outlays with an estimated cost over $100,000 are evaluated for the impact of purchase on current and future operations on summary sheets at the end of this spreadsheet. Items costing less than $100,000 are generally due to scheduled replacement of worn out equipment and are determined to have an immaterial change to future operations. Water Zone 2 Southwest Line 12" 2Z3 869,400 Revenue Bonds This water main will be constructed in northwest Norfolk as (Continued) development occurs. Zone 3 Pumpstation at 37th Street & 1,540,000 Revenue Bonds This booster station will be needed as growth occurs outside of Eisenhower Avenue the Zone 2 service area. Radios 49,640 Water Revenue Replace old obsolete radios. Replace Service Truck 26,500 Water Revenue Replacement. Replace Main Break Trailer 5,000 Water Revenue Replacement Kobota Excavator (1/2 share) 60,000 Water Revenue Replacement. Total 5,596,140 17,000 2,211,500 1,325,800 31,000 Water PollutionHVAC Replacement 18,000 Sewer Revenue Scheduled replacement due to the corroded conditions. Control SHB Rooftop Heaters 15,000 Sewer Revenue Replacement. RAS Pump Replacement (1 of 2) 15,000 Sewer Revenue Replacement of the 1990 fiberglass SHB exhaust fan #5. 2 Pre-Aeration Blower VFDs 25,000 Sewer Revenue Replacement of the 1980 #1 Sludge Thickener pump and backup. Utility Tractor Replacement 45,000 Sewer Revenue Replacement. Thickener Sludge Depth Meter 18,000 Sewer Revenue Replacement 1 of 2. Thickener Solids Analyzer (1 of 2) 16,000 Sewer Revenue Replacement 1 of 2 to analyze percent of solids being pumped. Effluent Pump Replacement (2) 10,000 Sewer Revenue Replacements. Radio Replacement (9) 38,400 Sewer Revenue Replace old obsolete radios. #1 Primary Drive Overhaul 60,000 Sewer Revenue Replacement of the 1970 #1 primary clarifier drive. #1 Sludge Thickener Drive Overhaul 80,000 Sewer Revenue Replacement of the 1970 #1 sludge thickener drive. Headworks Analysis 50,000 Sewer Revenue Engineering services to research grit/grease and mud/car wash handling at Headworks. Overland Receiving Station 200,000 Sewer Revenue Use the engineer's Headworks analysis to implement a receiving station for trucked in mud/car wash pits. Biosolids Study 30,000 Sewer Revenue Research treatment options for wastewater solids, and identify one or more options that would improve public acceptance, reduce odor, and maximize safety with recommendation of a selected option. #2 Primary Drive Overhaul 50,000 Sewer Revenue Replacement of the 1958 #2 primary clarifier drive. SBR Underground Air Piping Repl. 60,000 Sewer Revenue Replacement of the underground SBR ductile airline piping due to corrosion. Grit/PreAer Gate Replacements 100,000 Sewer Revenue Replacement of failed and corroded gates. Paint Primary & Thick Mechanisms 100, ,000 Sewer Revenue Sand blast and paint the primary mechanisms. Admin Motor Control Center 300,000 Sewer Revenue Replacement of the 1970's obsolete motor control center. Replacement Grit Collector Replacement 100,000 Sewer Revenue Replacement of the 1970 Grit Collector. Belt Filter Press Overhaul 300,000 Sewer Revenue Scheduled overhaul of the 1990 Komine Belt Filter Press that has well exceeded it's 20-year life. Trickling Filter Bldg Motor Control 300,000 Sewer Revenue Replacement of the 1980's obsolete motor control center. Holding Tank Bldg Motor Control 300,000 Sewer Revenue Replacement of the 1980's obsolete motor control center. Trickling Filter A Media 550,000 Sewer Revenue Replacement of the 1984 trickline filter media. Biosolids Upgrade 4,000,000 Revenue Bonds A Biosolids upgrade that is a result from the Biosolids study. CAPITAL IMPROVEMENTS SUMMARY 182

183 BUDGET FUTURE CAPITAL IMPROVEMENTS IN CIP (projects greater than $50,000) SOURCE DIVISION EQUIPMENT/PROJECT FY FY FY FY FY OF FUNDS JUSTIFICATION FOR PURCHASE/IMPACT ON OPERATIONS Current capital outlays with an estimated cost over $100,000 are evaluated for the impact of purchase on current and future operations on summary sheets at the end of this spreadsheet. Items costing less than $100,000 are generally due to scheduled replacement of worn out equipment and are determined to have an immaterial change to future operations. Water PollutionPLC #5 & #6 Replacement 95,000 Sewer Revenue Normal cycle replacement of programmable logic controllers that control Control Total 590, , ,000 4,395, ,000 SBRs, trickling filter pumps and other associated equipment. (continued) Sewer Sewer Main Extension 20,000 Sewer Revenue The Sewer Division pays for the additional size cost larger than 8" in Maintenance larger than 8" new developments. Northeast Industrial Sewer Phase II 245,000 Revenue Bonds Request made by Nucor to handle sanitary waste. Northeast Industrial Sewer Phase III 705,000 Revenue Bonds Request made by Nucor to handle sanitary waste. Extend Sewer from 27th Street and 900,000 Revenue Bonds Provides extension of sewer service for new development. Highway 275 west to 37th and 275 Highway 35 Interceptor 2,035,000 Revenue Bonds Provides for expansion of sewer system to Omaha Avenue corridor east of Flood Control. Omaha Avenue Lift Station & 3,040,000 Revenue Bonds Provides extension of sewer service to Omaha Avenue corridor as well Force Main as expand capacity for all property east of the Flood Control. 1st Street & Monroe Avenue Sewer 530,000 Sewer Revenue This sewer replacement was identified in the HDR 2010 report. Main Replacement 18th Street from Vicki Lane to 950,000 Sewer Revenue This section of interceptor has become overloaded due to added loads Center, Center from 18th to Omaha upstream of this pipe. & Omaha, Center to 14th Extend Sanitary Sewer from 13th & 350,000 Revenue Bonds This interceptor would take some of the load off the existing system Monroe to 25th and Omaha - SW Ph II and would allow for future growth in northwest Norfolk. Extend Sanitary Sewer from 25th & 1,100,000 Revenue Bonds This interceptor would take some of the load off the existing system Omaha to Hwy SW Ph III and would allow for future growth in northwest Norfolk. 25th Street & Eisenhower from 13th 1,120,000 Revenue Bonds This will provide sewer service southwest of 25th & Eisenhower. 1st Street & Braasch Avenue Sewer 23,300 43,900 43,900 43,900 Revenue Bonds Replace old system during street construction. Main Replacement Line 30" Sanitary Sewer from 8th & 954,900 Revenue Bonds Provides for extended life of existing pipe. Omaha to 4th & Washington Replace Parkhill Liftstation 320,000 Revenue Bonds This was identified in the 2008 Sanitary Sewer Master Plan Kobota Excavator (1/2 share) 60,000 Sewer Revenue Replacement. 36" Sanitary Sewer from Bluff South 1,820,400 Revenue Bonds This sewer line is starting to show signs of deterioration and if lined will on Chestnut South to Monroe provide many additional years of use Large Sewer Cleaner(80%) 360,000 Revenue Bonds The sewer truck will be at the end of its life cycle and will need replaced. Radios 13,200 Sewer Revenue Replace old obsolete radios. Service Truck Replacement 26,500 Sewer Revenue Continued updating of rolling stock. Replace 1990 Sewer Jetter Truck 150,000 Sewer Revenue Continued updating of rolling stock. Total 10,234,700 1,338,200 2,814, , ,900 CAPITAL IMPROVEMENTS SUMMARY 183

184 BUDGET FUTURE CAPITAL IMPROVEMENTS IN CIP (projects greater than $50,000) SOURCE DIVISION EQUIPMENT/PROJECT FY FY FY FY FY OF FUNDS JUSTIFICATION FOR PURCHASE/IMPACT ON OPERATIONS Current capital outlays with an estimated cost over $100,000 are evaluated for the impact of purchase on current and future operations on summary sheets at the end of this spreadsheet. Items costing less than $100,000 are generally due to scheduled replacement of worn out equipment and are determined to have an immaterial change to future operations. Solid Waste Trailer 74,500 74,500 74,500 74,500 74,500 Solid Waste Rev. Scheduled fleet replacement. Management Over-the-Road Trucks 110, ,000 Solid Waste Rev. Scheduled replacement. Truck Maintenance Facility & Equip. 1,625,000 Revenue Bonds Building improvements for expansion of plant operations. Engineering for Truck Facility 233,000 Revenue Bonds Engineering for construction of the truck facility. Radios 24,000 Solid Waste Rev. Replace old obsolete radios. Compost Turner 35,000 Solid Waste Rev. Replacement. Utility Tractor (used from WPC) 8,000 Solid Waste Rev. Replacement. Power Washer 8,000 Solid Waste Rev. Replacement. Land Purchase 140,000 Solid Waste Rev. Land purchase for the expansion of the plant operations. New Scale 75,000 Solid Waste Rev. Replacement. Total 2,007, , ,500 74, ,500 Grand Total 35,675,462 6,248,700 8,048,269 9,579,789 5,698,986 Capital Budget to Total Budget CAPITAL BUDGET TOTAL BUDGET CAPITAL BUDGET YEAR TOTAL BUDGET BUDGET PERCENTAGE OF TOTAL ,390,817 14,025, % ,995,734 16,779, % ,483,519 25,692, % ,253,983 29,424, % ,048,695 19,481, % ,835,470 19,425, % ,965,638 19,455, % ,660,442 23,986, % ,420,755 35,086, % ,973,001 35,675, % ,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000, ,000, ,000,000 CAPITAL IMPROVEMENTS SUMMARY 184