Budget Message & 5-Year Capital Improvement Plan

Transcription

1 Budget Message & 5-Year Capital Improvement Plan Positioned to Keep Mebane Positively Charming David S. Cheek, City Manager

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3 CONTENTS Budget Message... 1 All Budgeted Funds for FY Economic Outlook... 3 The General Fund... 4 General Fund Revenues... 4 Property Taxes... 5 Sales Tax... 5 Intergovernmental Revenue... 6 Permits and Fees... 6 Other Financing Sources... 6 Proposed Fee Changes... 6 General Fund Spending... 6 General Fund Budget Requests... 6 General Fund Budget Overview... 7 General Fund Department Budgets... 8 The Utility Fund Utility Fund Revenues Customer Fees Proposed New Rates Other Financing Sources Utility Fund Spending Administration Operations Water Resource Recovery Non-Departmental Budget Message Conclusion Year Capital Improvement Plan Overview General Fund... 15

4 Utility Fund Year CIP Conclusion...17 Appendix 1: Budget Message Line Item Budget City Council Administration Finance Information Technology Economic Development Public Facilities Police Fire Planning Inspections Public Works Sanitation Recreation & Parks Non-Departmental Billing & Metering (Administration) Utility Operations Water Resource Recovery (WWTP) Non-Departmental Appendix 2: Budget Message Fee Schedule Changes General Fund Fee Changes Utility Fund Fee Changes Appendix 3: 5-Year CIP General Fund Requests by Department Appendix 4: 5-Year CIP Utility Fund Requests by Department... 45

5 B U D G E T M E S S A G E May 7, 2018 Mayor and City Council City of Mebane, North Carolina Dear Mayor and Council, It is a great time to be in Mebane! New jobs, both in and around Mebane, are drawing new residents to our community in growing numbers just as our demographic forecasts have projected. The inventory of new homes and apartments, along with continuing industrial inquiries, points to a continuing and increasing growth outlook for the next several years. These factors, combined with Mebane s small town charm, prime location near the Triangle, and quality City amenities, will continue to draw new people. Thanks partly to this growth, the City continues to enjoy strong investment levels that enable high quality municipal services at a sustained low tax rate. Mebane was the only city in the area to cut its tax rate last year. This year, I am not proposing a tax increase; however, utility rates are recommended to increase by 5%. This will continue Mebane s tradition of low taxes and utility rates. The balancing act for the coming year and years to come is to continue providing quality services and infrastructure, maintain our small-town atmosphere, and embrace the new people moving into the City. The City Council has positioned our City to keep it Positively Charming. The City has spent the last several years operating in the midst of progressive growth, while diligently planning for growth to come. With extensive citizen input, the City Council has initiated plans for recreation and parks; bike, pedestrian and vehicular transportation; utilities and land use. Mebane by Design, the City s Comprehensive Land Development Plan, was approved in 2017, and we are currently in the process of updating our Unified Development Ordinance to dovetail with this plan. Within the next six months, plans for a safer railroad corridor and a downtown vision will be finalized. The purpose of all this planning is (1) to clarify the City Council s vision of what Mebane will look like in the future; (2) to direct the agenda for making smart, strategic operational and infrastructure decisions; and (3) to ensure that we stay true to the values that the City holds dear. Significant strides have been made to implement the 2014 Recreation and Parks Master Plan with grand opening of the new $9 million Community Park slated for this summer. The only significant projects remaining include a community swimming pool and fitness center, Lake 1

6 Michael trails, and greenway development, the latter being one of the top priorities in the plan. The Bike & Pedestrian Transportation Plan (BPTP) was approved in 2015, and several sidewalk and crosswalk projects have been completed since then. This year, the City Council took another major step of the BPTP by appointing the Bike and Pedestrian Advisory Committee. The committee is charged with advising the Council on prioritization of projects, advocacy for the plan, and seeking opportunities for funding and partnership. The BPTP is an expansive, but expensive plan with hundreds of potential projects. The expense is evident as the preliminary design for our first 1.5-mile greenway is projecting a $2.4 million price tag. The Council is carefully grappling with how to fund a comprehensive greenway plan with this 1.5 miles as the first step. As a brand new service and amenity, greenway trails in Mebane will require a consistent and significant funding source over the next few years. The BPTP is a long-term infrastructure plan and will require a long-term funding source. With this in mind, and with an eye toward the future, I am pleased to provide the Recommended Budget for the fiscal year ended June 30, 2019 (FY 2019) and 5-Year Capital Improvement Plan for (5-Year CIP). I believe this spending plan is focused on the City Council s vision for the future, developed within the framework of the City s planning processes, and will accomplish the City Council s goals for this year and for years to come. A LL B U D G E T E D F U N D S F O R FY The annual budget now includes five funds: two General and Utility operating funds, two respective capital funds and a Utility Capital Reserve Fund, as shown below. The capital funds allow the City to remove larger capital outlays from operations for more consistent reporting and evaluation of operating trends. The capital funds also allow the City to accumulate reserves for future capital outlays. The Utility Capital Reserve Fund is the direct result of implementing the General Assembly s House Bill 436 and adopting System Development Fees. These fees will replace the current water and sewer connection fees and as required by the statute, these fees must be deposited into a capital reserve fund. Taken as a whole, for comparison s sake, the General Fund is increasing by 5.3% over last year, while the Utility Fund is 7.7% more than the FY 2018 budget. 2

7 All Budgeted Funds FY 2018 Original FY 2019 Recommended % Change from FY 2018 General Fund Operating... $ 18,551,000 $ 17,967,470 (3.1%) Capital ,561,530 N/A Total... $ 18,551,000 $ 19,529, % Utility Fund Operating... $ 6,838,741 $ 7,673, % Capital... 1,166, ,000 (52.8%) Capital Reserve ,000 N/A Total... $ 8,005,035 $ 8,623, % E C O N O M I C O U T L O O K According to the N.C. League of Municipalities, the national economic outlook appears high for the next year. In the Duke University-CFO Global Business Outlook Index, the Optimism Index is at an all-time high. Forty percent of companies plan to increase wages, and 38 percent plan to increase hiring, in part as a result of federal corporate tax reform. Similarly, the American Institute of CPAs Outlook Index is at its all-time high, with optimism reflected in employment and capital spending plans. The Consumer Confidence Index is near its highest level since 2000, and the Dow Jones index peaked in January with a correction through April but remains 18% up from a year ago. Similar to the national economy, North Carolina s economic outlook is strong. According to Dr. Michael Walden of N.C. State, the State s aggregate growth rate in real GDP surpassed national growth for the third straight year in Walden s index of economic indicators is up by 2.9 percent from last year. Walden projects that economic growth in 2018 will expand real GDP by 2.8 percent, reduce the jobless rate to 3.6 percent, and add 70,000 jobs. He does, however, cite inflation, higher interest rates, and a possible trade war as factors to watch in Unemployment continues to improve in the City. The Alamance County unemployment rate has improved to 4.3% compared to 4.6% the previous year. The Orange County rate has also improved from 3.7% last year to 3.1% this year. The improved unemployment numbers reflect state and national rates, but are also a sign of the many new jobs recruited to Mebane. New single-family home construction is on the upsurge as the first phases of The Meadows (369 lots) and Woodlawn Estates (26 lots) are appearing. Building permits for this year are expected to approach 300, almost double the 5-year annual average of 150. With the rate of new home construction steadily growing, demand for housing has prices on the rise. Several other housing developments are in various stages of construction including Magnolia Glen 3

8 (244 lots), Villas on Fifth (110 lots), Northeast Village (99 lots), Phase III of the Villages at Copperstone (50 lots), the Villages at Lake Michael (68 lots), and Cambridge Park (731 lots). All in all, approved single-family projects total 1,698 units. Of these, roughly 492 have been permitted for construction with 1,206 dwelling units remaining to be permitted. Of the six apartment complexes (1,055 units) approved in recent years, five are complete or under construction. These numbers do not include older approved developments that have not been fully developed, such as Mill Creek. The recently approved multifamily projects total 1,055 units, of which 463 have been permitted for construction. All except Arrowhead North (162 units) will likely be constructed and occupied by the end of the summer. The City s apartment inventory has now risen to 2,651 units that are 95% occupied. During this past year, Airgas USA announced that the City was its choice to locate a $47 million facility with 35 new jobs paying an average wage of $79,286. Lotus Bakeries broke ground recently on its $55 million manufacturing plant which will make Biscoff cookies. The company will hire 60 employees at an average salary of $35,931. Prescient, located in the N.C. Commerce Park, has begun operations as well, promising to employ 205 people at an average wage of $46,322. These projects add to Mebane s economic development successes during this decade, with almost $500 million in new taxable investment and over 1,800 new jobs. T H E G E N E R A L F U N D As stated previously, the 2019 budget includes the General Fund and its Capital Fund. Since FY 2019 is our first year with both funds, for purposes of this budget message, these two funds are combined for easier comparison to the FY 2018 budget and the FY 2017 actual expenditures. Therefore, when the spending plan is discussed, all capital items have been included in the department for which the items will be purchased. As mentioned earlier, the General Fund budget for FY 2019 amounts to $19,529,000, an increase of 5.3% over the FY 2018 budget. The balanced budget formula required by State statute requires that estimated revenues plus other financing sources, including appropriated fund balance, equal the total budget appropriation. G E N E R A L F U N D R E V E N U E S The General Fund s primary sources of revenue include property taxes, sales taxes, intergovernmental revenues, and permits and fees. Property and sales taxes, make up just over 80% of all General Fund revenues. Over the past decade, the City s revenue sources have become much less diversified due to the repeal of taxes at the state level, resulting in an increased dependence on the property tax. This year the City expects solid revenue growth due to a strengthening housing market, an expanding tax base and continued growth in retail sales. Total revenues are estimated to grow 5.3% over this year, and total $17,101,923. Other financing sources total $2,427,077, and balance the budget at 4

9 $19,529,000. Included in other financing sources are debt financing of $677,077 and appropriated fund balance of $1,750,000. % Change FY 2018 FY 2019 from FY General Fund Original Projected 2018 Revenues Property taxes... $ 10,013,053 $ 10,633, % Sales taxes... 3,200,000 3,317, % Privilege licenses % Unrestricted intergovernmental... 1,758,943 1,677,700 (4.6%) Restricted intergovernmental , , % Permits & fees , , % Sales & services , , % Investment earnings... 12,000 12, % Miscellaneous , ,025 (4.1%) Total revenues... 16,311,146 17,101, % Other financing sources Transfers in N/A Debt proceeds , , % Appropriated fund balance... 1,803,854 1,750,000 (3.0%) Total other financing sources... 2,239,854 2,427, % Total revenues & other financing sources.. $ 18,551,000 $ 19,529, % PROPERTY TAXES Property taxes comprise 62% of revenues. The budget does not propose a property tax increase, and is balanced with a property tax rate of $0.47 which means that for every $100,000 in value of property, $470 is levied in property tax. At this tax rate, along with a 98.5% collection rate, property tax revenues will total $10,633,448, a 6.2% increase over this year. The additional property tax revenue is due to growth in the City s tax base and in motor vehicle taxes. The total tax base for FY 2019 is projected to be $2,174,684,816, a 6.5% increase over last year. One cent on the tax rate produces $200,426. SALES TAX Sales tax makes up 19% of the City s total revenues. Two cents of the combined state and local sales tax rate of 6.75% is distributed to local governmental jurisdictions. These local option sales tax revenues are distributed on a proportional population basis to municipalities within Alamance County. Mebane s share of sales tax revenues is projected to be $3,317,200, a modest 3.7% increase over FY While this continues a positive trend, the growth rate is down from the double-digit growth of recent years, due in part to a change in the way the State distributes statewide sales taxes. 5

10 INTERGOVERNMENTAL REVENUE Intergovernmental revenues consist primarily of the Electricity Sales Tax and the Powell Bill Allocation, and comprise approximately 12% of revenues. The Electricity Sales Tax is collected by the State and is distributed to the City based on the actual receipts from the providers of electricity within the City s limits. The Powell Bill Allocation from the State is restricted to maintaining, repairing, or constructing City owned streets and rights -of-way. Other state-shared revenues include sales taxes on telecommunications, video programming and natural gas. Restricted intergovernmental revenue is estimated to be $419,650, a 14.8% increase over this year. Unrestricted intergovernmental revenue is decreasing to $1,677,700 compared to this year s budget. This 4.6% decline is primarily the result of a drop in utility franchise and telecommunications taxes, and a better estimate in shared tax revenues from the NCCP interlocal agreement. PERMITS AND FEES Permits and Fees consist primarily of planning and inspection fees associated with residential and non-residential development within the City and its extraterritorial jurisdiction (ETJ). Total permits and fees are expected to be $819,000, making up about 5% of total revenues. The residential sector is continuing its strong pace of growth accounting for much of the 10.8% rise in permits and fees. Also, contributing to this increase are proposed fee increases to bring the City s fee schedule more in line with the surrounding market. OTHER FINANCING SOURCES In order to balance the budget, appropriated fund balance of $1,750,000 is required in addition to a $677,077 bank loan to purchase police cars and radios. The amount of fund balance that is appropriated is a financially prudent goal that allows the flexibility to adjust for unexpected opportunities or challenges during the year without requiring amendments to the budget. PROPOSED FEE CHANGES The only fee changes proposed in the General Fund budget are changes to certain inspection fees. The proposed changes are in keeping with fees charged by neighboring jurisdictions. Appendix 2 provides a redlined fee schedule that is proposed for FY G E N E R A L F U N D S P E N D I N G GENERAL FUND BUDGET REQUESTS The General Fund includes all the basic governmental functions for operating the City. Requests from departments totaled $22,419,156, so to maintain the current $0.47 tax rate, I am recommending reductions in the department requests totaling $2,890,156. These reductions are not made lightly. I work with the department heads in making these changes 6

11 which, for example, might involve decisions like repairing old trucks and equipment for another year instead of replacing them or doing without a new position for one more year. The following snapshot list provides some of the significant requested items included in the budget, as well as some not included in the budget. Requests Included in the Budget Requests Not Included in the Budget Street repaving... $ 550,000 Sidewalks - US70 & 9th St... $ 281,000 Police replacement radios ,430 Sanitation truck ,000 2% COLA and merit increases ,025 Leaf truck replacement ,000 MACC-Holt Street greenway design.. 219,700 Traffic Officer ,457 Four replacement police vehicles ,648 Sidewalk connectors ,674 BPTP - Sidewalk Projects ,400 Dump truck ,000 Three Firefighters - Half Year ,557 Deputy Chief Position... 98,236 New Park operating & equipment ,900 Communications Manager (PIO)... 92,290 New Park personnel & benefits... 94,246 IT Specialist... 81,053 Fire replacement brush truck... 90,000 HR Specialist... 68,399 Fire preemption System... 72,000 Cemetery entrance walls... 60,000 Handicap ramps & crosswalks... 40,000 Police motorcycles... 54,000 MACC gutter replacement... 37,500 Fire training pickup... 41,500 Contract for PIO... 30,000 Sanitation pickup... 26,000 Police space needs study... 30,000 Fire HVAC... 24,000 Christmas decorations... 30,000 IT replacement servers... 15,000 GENERAL FUND BUDGET OVERVIEW The proposed spending plan for the General Fund amounts to $19,529,000, a 5.3% increase over last year s adopted budget of $978,000. New items significantly increasing this budget include the purchase of police radios and four new police vehicles; a full year of personnel and operational costs at the new community park; the design of the MACC-Holt Street Park Greenway; the addition of three firefighters; new sidewalks on West Center, West Clay, North Second and West Jackson Streets; and increased funding for street resurfacing. Offsetting some of these items is a reduction in expected economic incentive payments and the capital outlay reduction in Fire due to the purchase of radios in FY FY 2018 Original Budget Salaries & Benefits 9,482,713 FY 2019 Recommended % Change $ $ 9,841, % Operations 7,770,318 8,057, % Capital Outlay 1,297,969 1,630, % Total $ 18,551,000 $ 19,529, % Salaries & Benefits The budget provides for a 2% COLA and merit raises, along with an allowance for a Staterequired increase in the retirement rate. Health claims were much lower this year and our 7

12 renewal quote for employee health benefits came in with only a slight increase in some rates, while maintaining the existing coverage levels. The City currently has 135 employees and departments requested eight (8) new positions. The Police Department requested a traffic officer; the Fire Department requested a Deputy Chief and three Firefighters; Administration requested a Communication Manager (PIO) position and a Human Resource Specialist; and Information Technology (IT) requested an IT Specialist. I am recommending we fund three firefighters for one-half the year, but not the other requested positions. One Public Works position has been moved to the Utility Fund as discussed later, and the budget includes funding to contract for the public information service improvements. The FY 2019 budget includes the continuation of the allocation of administrative costs to the Utility Fund, totaling $577,901. Operations Operating costs for the coming year are increasing by 3.7%. Operating costs for the new park, first year of debt service on the new park, and an increase in street repaving account for the majority of the costs, which are somewhat offset in the past by a reduction in expected economic incentive payments expected to be due. Capital Outlay The budget includes $1,630,455 in capital purchases including police cars and radios, new sidewalks, several lawn mowers for Public Works and Recreation, a brush truck and preemption system for Fire, the Joe Thompson legacy sculpture, and design of the new greenway. GENERAL FUND DEPARTMENT BUDGETS The budget following table contains the recommended budget for each department in the City. This is followed by an executive summary of the significant items for each departmental budget. The line-item budget is included in Appendix 1. 8

13 General Fund FY 2018 Original FY 2019 Recommended % Change from FY 2018 Council... $ 86,022 $ 86, % Administration... 1,005,906 1,033, % Finance , ,176 (21.2%) Information Technology , ,889 (1.0%) Economic Development... 1,105, ,850 (38.0%) Public Facilities , , % Police... 3,813,906 4,397, % Fire... 3,225,525 2,869,249 (11.0%) Planning , , % Inspections , , % Public Works... 2,151,996 2,348, % Sanitation ,415 1,127, % Recreation & Parks... 1,373,484 1,629, % Non-Departmental... 2,182,924 2,444, % Total... $ 18,551,000 $ 19,529, % Administration This budget is increasing by 2.8%, and includes $30,000 to contract for communications services to start an Official City of Mebane social media page to improve communications to and from the public, as well as improving content and current information on the City website. The other new item in this budget is the addition of security improvements at the front desk in City Hall. Finance The Finance Department budget s decrease from the prior year is largely due to the removal of one-time costs for the financial system conversion expected to be completed in FY Information Technology The Information Technology budget reflects a reduction for capital items completed in the prior year, with a focus on implementation of new technology in FY Economic & Physical Development Based on construction schedules and milestones for various agreements, economic incentives expected to be due in FY 2019 reflect a reduction from the prior year. Public Facilities The Public Facilities budget includes funding for the Thompson Legacy Sculpture and foundation repairs to the library. These new costs are offset by reduced spending compared to FY 2018 for the Council chambers technology improvements. Police The Police budget includes full-year funding for positions newly hired in FY18, replacement 9

14 radios and four replacement vehicles. The continued funding of in-car cameras nets with a reduction for one-time critical incident preparedness kits for minimal operating impact. Fire The Fire Department budget includes the addition of three new firefighters for half the year netted against a reduction in part-time salaries. The reduction in capital is the result of the one-time purchase of replacement radios last year netted with the addition of a replacement brush truck. Planning The 2019 budget separates Planning and Inspections into separate departments, with Planning retaining the majority of the shared office expenses. The Planning budget includes the full year costs of the Development Director position hired in FY18, one-time funding for grants and additional professional services to aid in plan review, GIS updates and the like. Inspections The Inspections Department, separated from Planning in FY 2019, includes the addition of funding for the purchase of planning and permit software to integrate with the new accounting system to provide better customer service and online capabilities which should result in greater efficiency for the Department. Public Works Personnel costs in the Public Works budget reflect the transfer of a position to the Utility Fund. Operations reflect an increase in funding for street repaving. The increase in capital is for sidewalks recommended by the Bike & Pedestrian Plan. Sanitation Fully staffed in FY 2019, the Sanitation budget includes an increase in vehicle maintenance for major repairs in order to delay purchase of replacement garbage trucks. Recreation & Parks The new City Park includes full year funding for two positions hired for only three months in FY18, along with first year estimates of operating costs. Capital includes funding for the new park s amphitheater and miscellaneous equipment, replacement mowers, and replacement gutters and automatic door closers for the Mebane Arts & Community Center. Non-Departmental Included in this department, the city funds several outside agencies that provide services for the citizens of Mebane. I am proposing to assist the United Way with the funding of their 211 services provided to our citizens. Mebane citizens who have emergency needs for housing, food, utilities, mental health issues, and other household needs are connected to appropriate agencies for assistance. In the last year, the agency took 199 calls for service. Burlington and the County also support this service. The following table includes the 10

15 proposed funding for all outside agencies for FY Agency Amount Mebane Historical Museum Subsidy $ 37,600 Alamance County Arts Council 10,000 Train Collection Expenses 5,900 ACTA Subsidy 5,252 United Way 211 1,000 Other non-departmental expenses include retiree health care and property and liability insurance, with an increase in FY 2019 for the new park and for cyber insurance. Debt service costs also include the first full year payment on the new park. T H E U T I L I T Y F U N D The Utility Fund is an enterprise fund designed to account for all revenues and costs associated with the City s water and sewer system. Utility operations are budgeted across three funds in FY 2019: the annual enterprise fund, capital fund and capital reserve fund. The recommended budget (net of internal transfers) for FY 2019 is $8,623,390, a 7.7% increase over the FY 2018 budget. U T I L I T Y F U N D R E V E N U E S CUSTOMER FEES The adoption of HB436 required a study of the system s revenues and expenditures related to growth of the system. At the same time, the requirement to budget system development fees in a separate capital reserve fund presented the necessity to review fees for general operations of the utility fund as well. The City engaged a consultant to perform a rate study to include proposed water and sewer rates. The City last completed a comprehensive study of its rate structure in 2008, and Council elected to shift from a system-wide decreasing block rate to a uniform rate for all in-city and out-of-city customer classes. It has been six years since the City last revised the uniform rate structure in The minimum bill for all customers is based on a usage of 2,000 gallons since The table below, taken from the study, shows the City s recent uniform rate tiers. Use 0-2,000 gallons Present Each Additional 1,000 gallons 0-2,000 gallons Each Additional 1,000 gallons In-City Water $9.50 $4.75 $11.64 $5.82 In-City Sewer $10.20 $5.10 $12.50 $6.25 Out of City Water $19.00 $9.50 $12.80 $12.80 Out of City Sewer $20.40 $10.50 $12.50 $

16 PROPOSED NEW RATES According to the rate study, the average in-city residential account fails to yield adequate revenue to build operating reserves and the enterprise fund as a whole exhibits a significant imbalance in water and sewer profitability. After reviewing the study, staff recommends a 5% increase for in-city water rates to $6.11 per 1,000 gallons. This results in a monthly water billing increase of $1.04 for the average in-city residential customer and results in a minimal operating profit for the water system. Staff recommends a 5% increase for in-city sewer rates to $6.56 per 1,000 gallons. This results in a monthly sewer billing increase of $1.11 for the average in-city residential customer and still results in an operating loss for the sewer system. Sewer rates will require a multi-year phased increase in rates in order to overcome operating deficits. With the rate increases, we are proposing to lower the minimum monthly water and sewer charge. Currently the City relies on a minimum monthly charge equivalent to 2,000 gallons of billed consumption. Any rate increases may potentially be viewed as disproportionately affecting the lowest tier consumers who routinely consume less than the 2,000-gallon threshold. With this in mind, we propose a reduction in the minimum tier to 1,000 gallons. The red-lined City fee schedule is included in Appendix 2 showing these proposed changes in utility rates. About 90% of the revenues generated in the Utility Fund are comprised of the water and sewer fees charged to customers for service, and our customer base has been growing 5% to 6% each year. The proposed budget includes an increase in sales of around 11.7% to include a combination of new customers and the proposed rate increase. All Utility Funds FY 2018 Original FY 2019 Projected Change from FY 2018 Revenues Sales and Services... $ 5,416,390 $ 6,052, % Connection Fees ,000 - (100.0%) Intergovernmental... 61,300 87, % Permits and Fees... 88, , % Investment Earnings... 1,000 5, % Miscellaneous... 90,000 90, % Total revenues... 6,106,740 6,373, % Other financing sources Appropriated fund balance... 1,898,295 1,800,000 (5.2%) Total revenues & other financing sources.. $ 8,005,035 $ 8,173, % OTHER FINANCING SOURCES In order to balance the budget this year, I am recommending that the City Council appropriate fund balance of $1,800,000. With the proposed FY 2019 spending plan of 12

17 $8,623,390 and estimated revenues of $6,823,390, the budgetary use of fund balance will be required to fill the gap. As with the General Fund, the City has traditionally budgeted fund balance with the understanding that conservative budget techniques typically do not result in actually dipping into the City coffers. U T I L I T Y F U N D S P E N D I N G The total budget for the Utility Fund is proposed at $8,623,390, a 7.7% increase over the FY 2018 budget. Utility Fund FY 2018 Original FY 2019 Recommended % Change from FY 2018 Administration... $ 1,549,909 $ 2,049, % Operations... 3,301,970 3,961, % Water Resource Recovery... 1,995,701 2,142, % Non-Departmental... 1,157, ,614 (59.4%) Total... $ 8,005,035 $ 8,623, % ADMINISTRATION The administrative budget accounts for billing and metering, and includes continuation of the meter replacement program begun in FY18. The meter replacement project adds valuable service for water customers that (1) allows them online access to their account and daily usage of water and (2) notifies them via or cell in real time of potential leaks. For the City, the system allows all meters to be read through Verizon s cellular data network, eliminating the need for personnel to ride around manually reading meters. The City will also have the same access to water usage data to assist customers with problems related to billing and usage. Also displayed in Administration is the capital reserve required by adoption of HB436 to account for system development fees. OPERATIONS Operations include the transfer and reclassification of a position from Public Works to oversee maintenance and operations as the Utilities Director. In addition to the continuation of the Inflow/Infiltration study, the budget includes annual allocations for mainte nance of pumps and water and sewer lines. The capital budget includes funding for oversizing Cambridge Hills and Northeast Village water lines, phase II of the NC119 relocation project and the Hillsborough Road improvement project. WATER RESOURCE RECOVERY The Water Resource Recovery budget includes the addition of a plant mechanic position and additional funding for dewatering. Planned capital projects for the GKN Reroute, WRRF Upgrade and Floodwall construction will be debt-funded and therefore will be established in 13

18 a capital project ordinance. Design and engineering are planned for FY 2019, with construction to begin the following year. NON-DEPARTMENTAL The Non-Departmental budget includes a decline in debt service as we pay down debt, and a reduced transfer to the Utility Capital Fund established in last year s budget with the establishment of the Reserve Fund to account for System Development Fees. The prior year also included a one-time transfer for construction of water and sewer lines to the new park. B U D G E T M E S S A G E C O N C L U S I O N The City continues to provide efficient and effective government services for its citizens, while not increasing property taxes. The Utility Fund does require a modest 5% increase in rates, but this is the first increase in six years. The City Council s visionary plans to create a safe, family-friendly community are making Mebane a prime location for people to make their homes. The City is positioning itself well to meet the challenges of rapid growth, while also planning for new amenities for its citizens. 5 - Y E A R C A P I T A L I M P R O V E M E N T P L A N Looking to the future, Mebane is in a great position to embrace the coming growth. The City will complete its $8.5 million community park at the west end of Clay Street this summer. The completion of this park was the major project of the 2014 Recreation & Parks Master Plan (RPMP). The only major ventures left in RPMP include a community pool, some more parks, Lake Michael trails, and a fitness complex. On the heels of this, the City begins design of its premier greenway trail from the Mebane Arts and Community Center to Holt Street Park. This is the first big step of the 2016 Bicycle & Pedestrian Transportation Plan (BPTP). With the recent appointment of the Bike & Pedestrian Advisory Committee (BPAC), the City is poised to tackle the expansive goals of the BPTP. Other projects from the BPTP include several new sidewalk additions, a pedestrian connector to one of the City s outlying neighborhoods, and some bike projects. These two plans are important planning tools for the City Council in their efforts to carry out citizen-led initiatives. They are progressive and bring a new dimension of amenities to an already walkable and active Mebane. The next five years will be pivotal in carrying out the visionary plans of the City Council. The 5- Year CIP is a planning tool designed to aid the City Council in building, acquiring and replacing the City s capital assets. The plan is updated annually to ensure that it is based on the most accurate information available and is reflective of the current and projected economic environment. Adoption of the 5-Year CIP by the City Council does not constitute a commitment to fund a particular item, but rather signifies an intention to fund at he indicated amounts during the ensuing years. As the City prepares for mounting growth, funding for the very ambitious BPTP, as well as the RPMP, will need to be balanced with the ongoing infrastructure and capital needs of City departments. 14

19 O V E R V I E W The 5-Year CIP includes capital outlays in the General and Utility Funds totaling $30,915,451. For FY2019, departmental capital outlays are included in the Manager s Recommended Budget. Any major projects expected to take more than a year to complete will require a capital project ordinance to be approved by the Council during FY2019. The General Fund improvements are estimated total $15,667,333 while the Utility Fund s projected costs amount to $15,248,118. These costs are divided into two major categories Capital Projects and Annual Capital Outlay. Capital Projects are those projects that require major capital expenditures and take more than one year to complete. In contrast, Annual Capital Outlay requests are made by department heads and include any capital items greater than $20,000 that will significantly impact their specific budgets. The funding plan for the 5-Year CIP includes $13,084,397 in debt financings, $17,393,554 in pay-as-go or cash, and $437,500 in grants. Project Budget Total General Fund... $ 15,667,333 $ 2,141,377 $ 5,491,816 $ 3,619,483 $ 2,754,655 $ 1,660,002 Utility Fund... 15,248,118 2,544,922 9,558,196 1,010,000 1,035,000 1,100,000 Total... $ 30,915,451 $ 4,686,299 $ 15,050,012 $ 4,629,483 $ 3,789,655 $ 2,760,002 Funding Sources Cash... $ 17,393,554 $ 3,821,722 $ 4,392,692 $ 3,399,483 $ 3,019,655 $ 2,760,002 Grant Funding , , ,000 - Debt Financing... 13,084, ,077 10,657,320 1,230, ,000 - Total... $ 30,915,451 $ 4,686,299 $ 15,050,012 $ 4,629,483 $ 3,789,655 $ 2,760,002 G E N E R A L F U N D In addition to General Fund annual projects, the primary capital need over the next five years is implementation of the Bicycle & Pedestrian Transportation Plan. Specifically, the MACC to Holt Street Park Greenway accounts for $2.4 million of the five year plan. Phase 2 of the new community park will include completing the amphitheater in 2019 and the parking lots in later years. Parking lots may be moved up as we evaluate the parking availability after the park opens this summer. Other significant projects include the extension of Lake Michael trails and improvements at Cates Farm Park. We are currently engaged with a consultant to determine improvements for the Cates Farm Park, but a preliminary estimate includes $500,000 in the out years of the 5-Year CIP. Departments also have ongoing capital outlay needs with Public Works leading the way with $3.3 million in needs over the next five years. Police, fire and sanitation also have significant needs in excess of $1 million. 15

20 Project Budget Total Recreation Master Plan Community Park Phase 2... $ 375,000 $ 25,000 $ - $ 75,000 $ 275,000 $ - Lake Michael Trails ,000-25, , Cates Farm Park , , ,000 - Bike & Pedestrian Plan Sidewalks... 1,168, , , , , ,650 Greenway Trails... 2,653, ,700 2,184, ,981 12,000 - Bicycle Improvements... 75,355 14,700 13,405 38,000 4,500 4,750 Connectors... 1,303, , , , ,318 Annual Capital Outlay Police... 1,378, , , , , ,284 Fire... 1,772, , , , ,000 - Information Technology ,500-37,500 45,000 25,000 25,000 Public Works... 3,322, , , , , ,000 Public Facilities , , ,500 47,500 10,000 10,000 Sanitation... 1,446, , , ,000 - Recreation , , , , Total... $ 15,667,333 $ 2,141,377 $ 5,491,816 $ 3,619,483 $ 2,754,655 $ 1,660,002 A detailed list of the departmental capital outlays in the General Fund is provided in Appendix 3. U T I L I T Y F U N D The major project in the Utility Fund s 5-Year CIP includes a $5.4 million upgrade to the water resource recovery facility. This project, being undertaken in phases, is intended to meet the standards set by the N.C. Environmental Management Commission for the Jordan Lake Rules governing discharge in the lake s drainage basin. In addition, the improvements will expand the permitted capacity of the plant from 2.5 MGD to 2.99 MGD. While the upgrades to the plant over the past few years are achieving desired results, a recent engineering study, along with the Long Range Utility Plan (LRUP) set forth the next steps in this project. During FY 2019, the floodwall will be designed along with the re-routing of the GKN pump station. Mebane negotiated an agreement with Graham to give the City 750,000 gallons per day (.750 MGD) of waste water capacity. As part of the agreement with Graham, Mebane needs to re-route the GKN pump station force main to pump west to the NCCP gravity lines installed two years ago that flow to Graham s Cherry Lane pump station. This project is expected to cost $1.5 million and will divert approximately 250 MGD from the Mebane WRRF. Design of this project will begin in FY Along with annual allocations for maintenance and repairs, other significant items in the Utility Fund include an inflow and infiltration study that will find problem areas in our sewer collection system increasing its efficiency and reducing treatment costs. An allocation of $200,000 each year over the next five years will fund any repairs noted during the study and is included in Sewer Mains. Included in Meters is the meter replacement program implemented in FY This is a plan to replace all meters in the City with internet-connected customer accounts that improve 16

21 accuracy and alert customers about their water usage. Project Budget Total WWRF Upgrades... $ 5,390,000 $ 400,000 $ 4,990,000 $ - $ - $ - WWRF Floodwall ,000 57, , GKN Reroute... 1,500, ,500 1,362, Annual Capital Outlays WWRF ,118 49,922 63,196 90,000 75,000 - Water Distribution... 2,170, , , , , ,000 Meters... 1,000, , , Lift Stations... 1,400, , , , , ,000 Sewer Mains... 2,760, , , , , ,000 Total... $ 15,248,118 $ 2,544,922 $ 9,558,196 $ 1,010,000 $ 1,035,000 $ 1,100,000 Funding Source Pay As Go... $ 7,420,618 $ 2,357,422 $ 1,918,196 $ 1,010,000 $ 1,035,000 $ 1,100,000 Grants , , Installment Financing... 7,640,000-7,640, Total... $ 15,248,118 $ 2,544,922 $ 9,558,196 $ 1,010,000 $ 1,035,000 $ 1,100,000 A detailed list of the departmental capital outlays in the Utility Fund is provided in Appendix Y E A R C I P C O N C L U S I O N The 5-Year CIP provides a guide for decision makers and the citizens alike. By fully examining alternatives and funding options during the planning process, the City Council can make informed decisions and maximize City resources. The 5-Year CIP is a solid plan and has been prepared with the goals of the City Council in mind. As required by the N.C. general statutes, please accept this document as my recommendation for the FY 2019 Budget and FY Capital Improvement Plan. As has been our tradition, I am proposing that you set a public hearing at our regular meeting on June 4, 2018 to consider a budget ordinance that will put this plan into action. Putting together a budget is not a small task, and I would like to recognize Jeanne Tate, Karen Louis, Misty Stewart of the Finance Department for all their contributions and crunching of numbers. Also, I would like to commend the department heads as key contributors in making sure the numbers translate into a workable plan, since they are responsible to carry it out. As always, staff looks forward to working with you to keep Mebane a positively charming place to live, work and play! Respectfully submitted, David S. Cheek City Manager 17

22 A P P E N D I X 1 : B U D G E T M E S S A G E L I N E I T E M B U D G E T General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 C I T Y C O U N C I L Salaries & Wages $ 54,500 $ 54, % FICA 4,172 4, % Group Insurance Contribution 1,500 1, % Subtotal Salaries 60,172 60, % Schools & Conferences 7,000 7, % Departmental Supplies 1,350 1, % Technology Supplies Equip - NA Dues & Subscriptions 17,500 17, % Subtotal Operating 25,850 25, % Total Council 86,022 86, % 18

23 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 A D M I N I S T R A T I O N Salaries & Wages 691, , % Longevity Contribution 22,524 23, % Part-time Salaries 15,000 15, % Car Allowance - - NA FICA 55,795 57, % Group Insurance Contribution 52,465 47, % Retirement Contribution 128, , % 401K Retirement Contribution 35,717 36, % Utility Contra (227,827) (250,089) 9.8% Subtotal Salaries 774, , % Professional Services 118, , % Telephone & Postage 3,800 2, % Schools & Conferences 11,000 8, % Vehicle Maintenance & Repairs % Advertising 2,000 2, % Vehicle Expense % Departmental Supplies 23,500 20, % Train Collection Expenses - NA Technology Services & Supplies 5,500 5, % Wellness Program Expenses 7,100 7, % Small Equipment 1,500 1, % Contracted Services 5,000 5, % Dues & Subscriptions 8,220 5, % Subtotal Operating 185, , % Capital Outlay - Other Improvements 18,000 27, % Capital Outlay - Vehicles 28, % Subtotal Capital 46,000 27, % Total Administration 1,005,906 1,033, % 19

24 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 F I N A N C E Salaries & Wages 300, , % Longevity Contribution 7,594 7, % Part-Time Salaries 12,000 12, % FICA 24,504 24, % Group Insurance Contribution 52,775 44, % Retirement Contribution 55,496 57, % 401K Retirement Contribution 15,415 15, % Utility Contra (126,676) (155,465) 22.7% Subtotal Personnel 341, , % Professional Services 63,000 71, % Telephone & Postage 47,100 24, % Schools & Conferences 8,650 9, % Equipment Maintenance & Repairs % Advertising 1,800 1, % Tax Collection Fee 70,000 77, % Departmental Supplies 22,500 22, % Technology Services & Supplies 29,810 38, % Small Equipment 3,200 4, % Contracted Services 9,000 10, % Dues & Subscriptions 2,900 2, % Subtotal Operating 258, , % Capital Outlay - Other Improvements 140, % Capital Outlay - Equipment - 5,000 NA Subtotal Capital 140,000 5, % Total Finance 740, , % 20

25 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 I N F O R M A T I O N T E C H N O L O G Y Salaries & Wages 76,726 79, % Longevity Contribution 2,302 2, % Cell Phone Stipend NA FICA 6,046 6, % Group Insurance Contribution 8,890 8, % Retirement Contribution 14,027 14, % 401K Retirement Contribution 3,951 4, % Utility Contra (35,487) (36,414) 2.6% Subtotal Personnel 76,455 79, % Telephone and Postage % Schools and Conferences 3,450 3, % Equipment Maintenance & Repairs 5,000 5, % Departmental Supplies 1,000 1, % Technology Supplies and Services 1,100 3, % TWC Telecommunications 57,500 52, % Software Licensing and Maint - 3,200 NA Small Equipment 1,100 7, % Contracted Services 64,965 85, % Dues & Subscriptions % Subtotal Operating 135, , % Capital Outlay - Other - - NA Capital Outlay - Equipment 31, % Subtotal Capital 31, % Total IT 243, , % 21

26 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 E C O N O M I C D E V E L O P M E N T Professional Services 40,000 40, % Industrial Development 1,045, , % Alamance County Chamber of Commerce 20,000 20, % Subtotal Operating 1,105, , % Capital Outlay - Other - - NA Subtotal Capital - - NA Total Econ Dev't 1,105, , % 22

27 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 P U B L I C F A C I L I T I E S Salaries & Wages 200, , % Longevity Contribution 4,117 4, % Part-time Salaries & Wages 32,000 32, % FICA 18,081 18, % Group Insurance Contribution 52,465 44, % Retirement Contribution 36,784 38, % 401K Retirement Contribution 10,217 10, % Utility Contra (13,520) (13,764) 1.8% Subtotal Personnel 340, , % Professional Services 15,000 15, % Utilities 27,600 28, % Building Maintenance 30,000 30, % Grounds Maintenance 45,500 54, % Lake & Marina Maint & Ops 65,000 65, % Library Maint & Repairs 64,000 88, % Departmental Supplies 8,200 38, % Technology 59,000 10, % Facility Rental 4,800 4, % Contracted Services 62,000 47, % Subtotal Operating 381, , % Capital Outlay - Building - - NA Capital Outlay - Other Improvements 31, % Capital Outlay - Equipment - - NA Subtotal Capital 31, % Total Public Facilities 752, , % 23

28 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 P O L I C E Salaries & Wages 1,843,361 2,007, % Longevity Contribution 38,598 41, % Part-time Salaries 27,000 27, % Overtime Salaries 10,000 10, % LEO Separation Allowance 40,000 40, % FICA 149, , % Group Insurance Contribution 336, , % Retirement Contribution 28,829 34, % 401K Retirement Contribution 94, , % LEO Retirement Contribution 323, , % Subtotal Personnel 2,891,123 3,078, % Professional Services 97, , % Telephone & Postage 33,000 33, % Utilities 17,010 12, % Schools & Conferences 25,000 25, % Building & Grounds Maintenance 15,000 15, % Vehicle Maintenance & Repairs 40,000 42, % Vehicle Expense 70,000 67, % Departmental Supplies 95,000 77, % Technology Services & Supplies 29,000 36, % Uniforms & Accessories 39,500 40, % Federal Equitable Sharing Expense - - NA Small Equipment 21, % Contracted Services 42,000 42, % Vice Investigations 5,000 5, % Dues & Subscriptions 3,000 3, % Pet Adoption Center Subsidy 73,235 75, % Subtotal Operating 605, , % Capital Outlay - Other 77,080 28, % Capital Outlay - Vehicles 240, , % Capital Outlay - Machinery & Equipment - 10,621 NA Subtotal Capital 317, , % Total Police 3,813,906 3,928, % 24

29 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 F I R E Salaries & Wages 1,367,604 1,380, % Longevity Contribution 29,233 31, % Part-time Salaries & Wages 30,000 40, % Overtime Salaries 60,000 60, % FICA 117, , % Group Insurance Contribution 230, , % Fraternal Insurance Contribution 6,000 6, % Retirement Contribution 242, , % 401K Retirement Contribution 67,390 77, % Fire Retirement Contribution 5,000 5, % Pension Expense 35,000 35, % Subtotal Personnel 2,190,672 2,220, % Professional Services 10,000 10, % Telephone & Postage 23,000 20, % Utilities 25,000 25, % Schools & Conferences 25,000 25, % Volunteer Reimbursements 25,000 20, % Building & Grounds Maintenance 33,000 25, % Equipment Maintenance & Repairs 12,000 12, % Vehicle Maintenance & Repairs 40,000 60, % Vehicle Expense 22,000 24, % Departmental Supplies 45,000 45, % EMT Equipment 10,000 10, % Technology Services & Supplies 18,000 18, % Uniforms & Accessories 74, , % Small Equipment - 35,237 NA Contracted Services 97,338 12, % Dues & Subscriptions 6,000 6, % Christmas Party 4,500 4, % Subtotal Operating 469, , % Capital Outlay - Vehicles - - NA Capital Outlay - Machinery & Equipment 565,015 90, % Subtotal Capital 565,015 90, % Total Fire 3,225,525 2,779, % 25

30 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 P L A N N I N G Salaries & Wages 150, , % Longevity Contribution 3,745 3, % Part-time Salaries - 10,000 NA Ovetime wages - 5,000 NA Cell Phone Stipend 11, % FICA 17,780 14, % Group Insurance Contribution 27,823 15, % Retirement Contribution 7,729 34, % 401K Retirement Contribution - 9,414 NA Utility Contra - - NA Subtotal Personnel 219, , % Professional Services 126, , % Telephone & Postage 2,960 7, % Schools & Conferences 4,438 4, % Building & Grounds Maintenance 970 1, % Vehicle Maintenance & Repairs NA Advertising 3,000 4, % Vehicle Expense - 2,000 NA Departmental Supplies 3,710 5, % Technology Services & Supplies 9,300 19, % Uniforms & Accessories 1,750 1, % Impact Alamance Grant - - NA Partners for Green Growth - 10,000 NA Downtown Revitalization - 61,500 NA Contracted Services 1,025 3, % Dues & Subscriptions 870 5, % Subtotal Operating 154, , % Capital Outlay - Vehicles - NA Subtotal Capital - - NA Total Planning 374, , % 26

31 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 I N S P E C T I O N S Salaries & Wages 278, , % Longevity Contribution 3,868 4, % Part-time Salaries 14,000 10, % Ovetime wages 10,000 5, % Cell Phone Stipend NA FICA 23,421 23, % Group Insurance Contribution 44,760 38, % Retirement Contribution 52,588 52, % 401K Retirement Contribution 14,606 14, % Utility Contra (14,645) (13,084) -10.7% Subtotal Personnel 426, , % Telephone & Postage 7,266 2, % Schools & Conferences 7,638 14, % Building & Grounds Maintenance - - NA Vehicle Maintenance & Repairs 4,500 2, % Advertising - - NA Vehicle Expense 6,000 4, % Departmental Supplies 5,840 4, % Technology Services & Supplies 14,400 13, % Uniforms & Accessories 1,750 2, % Contracted Services 6,525 4, % Dues & Subscriptions % Subtotal Operating 54,629 47, % Capital Outlay - Other Expenditures - 42,825 NA Capital Outlay - Vehicles 25, % Subtotal Capital 25,000 42, % Total Inspections 506, , % 27

32 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 P U B L I C W O R K S Salaries & Wages 610, , % Longevity Contribution 15,090 13, % Part-time Salaries 40,000 40, % Overtime Wages 20,000 20, % Fica 52,475 47, % Group Insurance Contribution 115,880 97, % Retirement Contribution 100,069 83, % 401K Retirement Contribution 26,797 22, % Utility Contra (182,137) (122,169) -32.9% Subtotal Personnel 799, , % Professional Services 100, , % Professional Services II 50,000 60, % Telephone & Postage 12,500 14, % Utilities 203, , % Schools & Conferences 2,000 2, % Building & Grounds Maintenance 42,935 33, % Sidewalk Maintenance & Repair 190,000 70, % Storm Sewer & Driveway Pipe Maintenance 40,000 40, % Street Maintenance & Repair 525, , % Equipment Maintenance & Rep 17,000 17, % Vehicle Maintenance & Repair 23,000 44, % Vehicle Expense 26,000 25, % Departmental Supplies 50,000 50, % Technology Services & Supples 21,725 25, % Uniforms & Accessaries 12,300 11, % Contracted Services 10,000 13, % Dues & Subscriptions 2,500 2, % Subtotal Operating 1,327, , % Capital Outlay - Other Improvements 25,000 14, % Capital Outlay - Vehicles - - NA Capital Outlay - Equipment - 12,500 NA Subtotal Capital 25,000 27, % Total Public Works 2,151,996 1,596, % 28

33 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 S A N I T A T I O N Salaries & Wages 315, , % Longevity Contribution 3,732 5, % FICA 24,431 25, % Group Insurance Contribution 76,120 64, % Retirement Contribution 57,584 60, % 401K Retirement Contribution 16,218 16, % Subtotal Personnel 493, , % Telephone and Postage 2,500 3, % Equipment Maintenance & Repairs 7,000 7, % Vehicle Maintenance & Repairs 70, , % Vehicle Expense 55,000 57, % Departmental Supplies 11,000 11, % Roll-out Garbage Cans 27,000 22, % Uniforms 7,200 9, % Landfill Tipping Fees 290, , % Contracted Services 25,000 25, % Subtotal Operating 494, , % Capital Outlay - Vehicles - - NA Subtotal Capital - - NA Total Sanitation 988,415 1,127, % 29

34 General Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 R E C R E A T I O N & P A R K S Salaries & Wages 417, , % Longevity Contribution 15,450 16, % Part Time Salaries & Wages 90, , % FICA 40,768 46, % Group Insurance Contribution 74,845 76, % Retirement Contribution 74,324 84, % 401K Retirement Contribution 20,646 23, % Subtotal Personnel 733, , % Professional Services 50,000 25, % Telephone & Postage 20,030 20, % Utilities 79, , % Ballfield Lights 41,500 60, % Schools & Conferences 4,600 4, % Building & Grounds Maintenance 101, , % Equipment Maintenance & Repairs 22,950 27, % Vehicle Maintenance & Repairs 7,437 10, % Vehicle Expense 10,625 14, % Departmental Supplies 59,050 68, % Athletic Uniforms & Equipment 20,000 20, % Technology Services & Supplies 2,700 2, % Uniforms & Accessories 2,100 2, % Small Equipment - - NA Contracted Services 27,500 30, % Dues & Subscriptions 1,000 1, % Special Activities 63,000 63, % Summer Camps 10,000 10, % Subtotal Operating 522, , % Capital Outlay - Land - - NA Capital Outlay - Other Improvements 16,000 77, % Capital Outlay - MACC Renovation - 63,500 NA Capital - Fifth Street Pocket Park - - NA Capital - First St Pocket Park - - NA Capital Outlay - Vehicles 52, % Capital Outlay - Machinery & Equipment 49,100 38, % Subtotal Capital 117, , % Total Recreation 1,373,484 1,629, % 30

35 N ON- D E P A R T M E N T A L Group Insurance Contribution 115, , % Salaries for potential retirement - 52,192 NA Unemployment Insurance Contribution 20,000 20, % Subtotal Personnel 135, , % Website Hosting 4,600 4, % Train Collection Expenses - 5,900 NA Miscellaneous Contracted Services % Property & General Liability Insurance 409, , % Alamance County Arts Council Subsidy 10,000 10, % ACTA Subsidy 5,252 5, % Mebane Historical Museum Subsidy 37,600 37, % United Way - 1,000 NA Subtotal Operating 466, , % Principal Issue (Rec & City Hall) 213, , % Principal Issue (Police Station) 60, % Principal Issue (Library) 153, , % Principal - Truck/Equipment 96,702 97, % Principal - Fire Station BB&T 173, , % Principal - Fire Station PEMC 140, , % Principal - New Park 388, , % Principal - Fire Truck 49,000 46, % Principal - Fire Radios - 86,375 NA Principal - Police Vehicles - 41,530 NA Principal - Police Radios - 93,886 NA Interest Issue (Rec & City Hall) 43,179 35, % Interest Issue (Police Station) 1, % Interest Issue (Library) 12,797 7, % Interest - Truck/Equipment 2, % Interest - Fire Station BB&T 57,841 52, % Interest - New Park 187, , % Interest - Fire Radios - 6,792 NA Interest - Police Vehicles - 7,891 NA Interest - Police Radios - 17,838 NA Subtotal Debt Service 1,580,801 1,740, % Transfer to Special Revenue Fund - - NA Transfer to Capital Fund - 1,561,530 NA Transfer to City Park Project - - NA Subtotal Transfers Out - 1,561,530 NA Total Nondepartmental 2,182,924 4,006, % 31

36 Utility Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 B I L L I N G & M E T E R I N G (AD M I N I S T R A T I O N ) Salaries & Wages 170, , % Longevity Contribution 1,708 1, % FICA 13,200 13, % Group Insurance Contribution 9,200 7, % Retirement Contribution 31,058 31, % 401K Retirement Contribution 8,627 8, % Pension Expense - - NA Indirect Contra 600, , % Subtotal Personnel 834, , % Professional Services 4,500 4, % Telephone & Postage 5,000 9, % Bank Charges 50,000 35, % Equipment Maintenance & Repairs 2,000 2, % Departmental Supplies & Meters 95, , % Technology Services & Supplies 52,000 8, % Contracted Services 30,077 40, % Misc Over/Short - - NA Subtotal Operating 238, , % Capital Outlay - Other - - NA Subtotal Capital - - NA Total Billing & Metering 1,073,615 1,149, % 32

37 Utility Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 U T I L I T Y O P E R A T I O N S Salaries & Wages 342, , % Longevity Contribution 6,317 12, % Part-time Salaries & Wages - - NA Overtime Salaries 30,000 30, % FICA 28,987 35, % Group Insurance Contribution 80,320 67, % Retirement Contribution 68,204 83, % 401K Retirement Contribution 18,946 22, % Pension Expense - - NA Subtotal Personnel 575, , % Professional Services 195, , % Telephone & Postage 17,500 18, % Utilities 80,000 92, % Schools & Conferences 8,000 8, % Building & Grounds Maintenance 5,000 6, % Street Maintenance & Repair 30,000 NA Equipment Maintenance & Repairs 85,000 97, % Vehicle Maintenance & Repairs 11,000 48, % Advertising 1,000 1, % Vehicle Expense 27,500 28, % Departmental Supplies 130, , % Fire Hydrant Maintenance & Repair 45,000 50, % Chemicals 85,000 88, % Formerly Chemicals, now Technology 2,500 5, % Uniforms & Accessories 8,600 11, % Contracted Services 153, , % Purchase of Water 740, , % Dues & Subscriptions 10,000 14, % Subtotal Operating 1,604,600 1,739, % Capital Outlay - Other Improvements 880, , % Capital Outlay - Farrar Lane Pump Sta - - NA Capital Outlay - Force Main Upgrade - - NA Capital Outlay Bypass Relocations - 250,000 NA Capital Outlay - Equipment 42, , % Subtotal Capital 922,000 1,366, % Total Utility Operations 3,101,970 3,773, % 33

38 Utility Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 W A T E R R E S O U R C E R E C O V E R Y ( W W T P ) Salaries & Wages 480, , % Longevity Contribution 9,026 10, % Part-Time Salaries 10,000 10, % Overtime Salaries 20,000 20, % Car Allowance 3,600 3, % FICA 40,002 44, % Group Insurance Contribution 72,230 63, % Retirement Contribution 88, , % 401K Retirement Contribution 25,714 28, % Pension Expense - - NA Subtotal Personnel 749, , % Professional Services 15,500 15, % Telephone & Postage 10,300 6, % Utilities 146, , % Schools & Conferences 4,700 4, % Buildings & Grounds Maintenance 7,900 8, % Equipment Maintenance & Repairs 70,000 81, % Vehicle Maintenance & repair 2,000 1, % Advertising % Vehicle Expense 2,500 2, % Departmental Supplies 39,650 43, % Chemicals 85,000 89, % Formerly Chem, Now Technology 6,400 8, % Software License-Utility Cloud 4,000 2, % Uniforms & Accessaries 3,400 4, % Small Equipment 16,000 18, % Contracted Services 252, , % Laboratory Services 24,200 22, % SCADA Services 12,800 15, % Dues & Subscriptions 11,500 12, % Subtotal Operating 714, , % Capital Outlay - Vehicles - - NA Capital Outlay - Equipment 41,922 97, % Subtotal Capital 41,922 97, % Total WWTP 1,505,701 1,685, % 34

39 Utility Fund FY 2018 Original FY 2019 Recommended Change from FY 2018 N ON- D E P A R T M E N T A L Property & Liabilty Insurance 100,000 62, % Subtotal Operating 100,000 62, % Principal Issue (Water Plant) - - NA Principal Refunding Issue 95, % Prinicpal Issue (WWTP) - - NA Principal Issue (SE Pump Station) 133, , % Principal Issue (9th St. Sewer) 4,806 4, % Principal - Water Upgrade/Exension 272, , % Water Plant Capacity Payment 127, , % Sewer Capacity Payment 200, , % Principal - GKN Pump Sta, Floodwall, WRRF 61, , % Interest Issue (Water Plant) - - NA Interest Refunding Issue 4, % Interest Issue (WWTP) - 19,250 NA Interest Issue (SE Pump Station) 24, % Interest - Water Upgrade/Expansion 104,234 97, % Interest - GKN Pump Sta, Floodwall, WRRF 30,000 40, % Subtotal Debt 1,057,455 1,002, % Transfer to Capital Project Fund 1,166, , % Transfer to City Park Project - - NA Subtotal Transfers 1,166, , % Total Non-Departmental 2,323,749 1,564, % 35

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45 U T I L I T Y F U N D F E E C H A N G E S Fee Schedule Development Fees DRAFT Effective July 1, 2018 Schedule Subject to Change Upon Approval by City Council Water & Sewer Rates Inside water (per 1,000 gallon) Inside sewer (per 1,000 gallon) Outside water (per 1,000 gallon) Outside sewer (per 1,000 gallon) Metered sewer users not using Mebane water (Multipe of the inside Unmetered residential sewer users- (inside city limits) Unmetered residential sewer users- (outside city limits) Deposit water (inside city limits) Deposit sewer (inside city limits) Deposit water (outside city limits) Deposit sewer (outside city limits) $ Meter re-read with no city error (per re-read) $ Cutoff List Fee $ Late Fee (added each month after the 20th) $ Return Check Fee $25 $54.57 Users Fee - Trash & Recycle pick-up (per month) $6.50 $66.77 Additional Trash Receptacle $65.00 $75 Water Shortage Resposne Plan - Excess Users Charge (per event for $100 $75 Water Line Assessment Rate (per linear foot) $14 $150 Sewer Line Assessment Rate (per linear foot) $20 41

46 Fee Schedule Development Fees DRAFT Effective July 1, 2018 Water & Sewer Connection System Development Fees Customer Type - Water Meter Size Single Family Dwelling Unit - 3/4" Single Family Dwelling Unit - 1" Single Family Dwelling Unit - >1" Multi-Family Dwelling Unit (Per Unit) - NA Hotels, Retirement Homes, Assisted Living Facilities (per room) All Other Zoning Catergories - 3/4" All Other Zoning Catergories - 1" All Other Zoning Catergories - 1.5" Water Connection System Development Fee Sewer Connection System Development Fee Water Connection System Development Fee Sewer Connection System Development Fee $1,100 $1,420 All Other Zoning Catergories - 2" $8,250 $10,920 $1,540 $1,970 All Other Zoning Catergories - 3" $17,050 $21,850 Use Fee Under Other Zoning All Other Zoning Catergories Catergories - 4" $26,400 $33,860 All Other Zoning $1,100 $1,420 $41,800 $49,150 Catergories - 6" 75% of Single Family for 3/4" 75% of Single Family for 3/4" $1,320 $1,750 All Other Zoning Catergories - 8" $82,500 $105,950 $2,200 $2,840 All Other Zoning Catergories - 10" $128,700 $166,030 $4,400 $5,680 Schedule Subject to Change Upon Approval by City Council Customer Type - Water Meter Size Water & Sewer System Development Fees 42