FY END of YEAR REPORT. Zions Bank Building, Shannon Cade

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1 FY 216 END of YEAR REPORT Zions Bank Building, Shannon Cade

2 Table of Contents Mayor s Message... 1 Executive Summary... 3 Fund Summaries... 7 General Fund... 7 Departmental Analysis Arts and History City Council Community Engagement Contractual Services Finance and Administration Fire Human Resources Information Technology... 2 Legal Library Office of the Mayor Parks and Recreation Planning and Development Services Police Public Works Capital Fund Enterprise Funds Other Funds Appendix A: Budget Workshop Initiatives Appendix B: End of Year Appropriation Resolution and Exhibit Appendix C: FY 216 Rebudget and Encumbrance Resolution and Exhibit Appendix D: Authorized Staffing Levels Appendix E: YearEnd Contingency Accounts Appendix F: Quarterly Economic Brief Appendix G: Capital Fund Status Report. 77

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4 MAYOR S MESSAGE Mayor s Message It s been a remarkable year in Boise. The benefits of an extraordinary amount of public and private investment in our city more than 1 billion in downtown Boise alone is transforming our community in ways that might have seemed impossible a generation ago. Our city s success and progress comes from many strengths, but five characteristics in particular underpin our vision for Boise s future: Growth of economic opportunity and the fostering of our business community Continued development of sustainable practices and our city s extraordinary outdoor recreational opportunities Investment in education and workforce development Opening our arms and hearts to those looking for refuge and stability Deepening sophistication and investment in Boise s unique and creative arts culture These foundational elements help us define what it means to be a Boisean and guide our work to provide our residents with the excellent services at the best value possible. I thank the members of the Boise City Council for their leadership and support of these and many more efforts that are building the Boise of tomorrow. Here are some of the initiatives from fiscal year 216 that are helping the work we do to make Boise the most livable city in the country: Celebrated an explosion of investment in our downtown core, which saw unprecedented construction of hotels, condos, public spaces, infrastructure and corporate investment Celebrated the opening of the 55acre Esther Simplot Park, the latest addition to Boise s celebrated Ribbon of Jewels riverside park system, thanks to extraordinary generosity of the J.R. Simplot Foundation and the Simplot family Opened City Center Plaza and the Clearwater Building, where civic purpose meets commercial demand through the creation of a 21st century transit hub, the establishment of Boise State University s Computer Science Department and the expansion of the Boise Centre on the Grove Led the communitywide effort to create permanent supportive housing for the community s chronically homeless through the Housing First model Developed the Transportation Action Plan, a vision for creating real transportation choice that offers safety, optimizes infrastructure and supports vibrant neighborhoods Commissioned the Dixie Drain, an innovative precedentsetting phosphorous removal facility that is greatly enhancing water quality in the Boise and Snake rivers by removing up to 14 pounds of phosphorus per day, or roughly 1 tons annually Redoubled our effort to ensure Boise remains a welcoming city to everyone, no matter their race, gender, religion, sexual orientation or gender identity, including those seeking refuge from global violence and extremism in the world s war zones Continued fostering the development of downtown s West End through investment in parks, transportation infrastructure and real estate, including mixedincome housing Opened Rhodes Skate Park, a worldclass remaking of a twodecadeold skate park made possible by a 1.25 million gift from the J.A. and Kathryn Albertson Family Foundation CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 1

5 MAYOR S MESSAGE Established the James Castle House, a project to preserve the home of James Castle, a deaf, selftaught artist, whose work has been acclaimed internationally Initiated the new Start Your Business Tool, which is designed to streamline the process for starting a new business Formalized Boise Codes, a series of coding and technology education classes taught at the library and complementing other downtown coding education offerings from Trailhead and Boise State University Formalized Boise s economic relationship with the Basque country through efforts to expand the longstanding cultural and academic ties between us Broke ground on two of four new fire stations and a stateoftheart fire training center made possible by a 214 ballot measure overwhelmingly supported by 76 percent of voters With these milestones achieved, the Department of Finance and Administration estimates that the City s General Fund ended the fiscal year on September 3, 216 with an undesignated fund balance of 13. million underlining the value of city services our residents enjoy. With these endofyear accounting reservations and designations complete, I recommend that the remaining undesignated endofyear fund balance, after addressing identified onetime needs, be transferred to the Capital Fund to ensure the city can continue to invest in infrastructure and strategic improvements that will continue to build the Boise of the future. At the center of much of this success is innovative thinking about how we deliver services and build a city that sets up the next generation for success. No matter the issue or challenge, we reach for solutions that go beyond just meeting our obligations or the expectations of our residents. We are able to make good outcomes great through partnerships that help us leverage our efforts and earn a greater return on the taxpayer s investment. By committing ourselves to our longstanding values, we can embrace and direct our growth and success in ways that protect the characteristics that make Boise uniquely great. Respectfully submitted, David H. Bieter Mayor 2 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

6 EXECUTIVE SUMMARY Executive Summary General Fund The General Fund is a property taxsupported fund that provides all revenues and expenditures not accounted for in a specificpurpose fund. The general governmental functions of the City, carried out by the City s departments, are within the General Fund. Fiscal Year 216 concluded on September 3, 216 and the economic environment remains positive as the City s General Fund ended the year with a net operating surplus of 11. million or 5.7% of total expenditures. The operating surplus is primarily attributable to increases in Development Fee and Sales Tax revenue. The City anticipated several revenue categories, including Sales Tax and Development Fees, would exceed budget expectations. To maintain a conservative fiscal approach, the City has elected to treat these increases as onetime in nature. This prevents building base expenditure increases on unreliable revenue. The budget for Sales Tax and Development Fees has been increased in FY 217 to accommodate operational needs; the increase represents a new collection threshold that we believe is sustainable long term. Any revenue collected over budget will go towards onetime needs via midyear budget adjustments or the FY 217 end of year allocations. This relationship will help ensure that base operations remain sustainable well into the future. The General Fund end of year net unassigned available resources totaled 13. million, or 6.8% of total FY 216 expenditures. This figure is the result of 11. million in operating surplus, plus 2.3 million gained from changes in reservations, less Budget Workshop Initiatives of 285k. The following summarizes the major components of the General Fund performance. Detailed revenue and expenditure analysis occurs later in the report. Total General Fund revenues were 23.4 million, 425k more than the budget of 23. million. The General Fund budget includes the use of prior year resources in order to balance the budget. This amount is budgeted, but by accounting best practice these carryover funds are not realized as current year revenue (prior year resources are reflected on the balance sheet). As a result, excluding prior year carryover funds of 5.1 million, revenues were actually 5.5 million (2.7%) above budget, much more than the 425k shown in the table below. Expenditures totaled million, which is 1.5 million (5.2%) less than budgeted and 1.9 million (1.%) less than FY 215 actual expenditures. The net of operating revenues and expenditures resulted in a surplus of 11. million, or 5.7% of total expenditures. 23,394, ,442,416 1,952,223 22,969,796 22,969,796 FY 215 Audited General Fund Total Revenues Total Expenditures Net General Fund Operations FY 216 UnAudited FY 216 Revised Budget 198,22, ,33,686 3,871,673 Budget Workshop Initiatives Subtotal: Net Change in Reservations Available Resources FY 216 Actual to Revised Budget 424,842 (1,527,38) 1,952,223 FY 216 Actual to FY 215 Actual 5,192,28 (1,888,27) 7,8,55 (285,) 1,667,223 2,355,385 13,22,68 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 3

7 EXECUTIVE SUMMARY Capital Projects Fund The Capital Projects Fund is a property taxsupported fund primarily reserved for approved single or multiyear capital projects, major repair & maintenance, and major equipment. The following summarizes the major components of the Capital Fund performance: Capital Fund revenues amounted to 27.3 million, which was 12.6 million less than budgeted. The Capital Fund is balanced with transfers from various funds (General, Impact Fee, Foothills Levy, Heritage, and Debt Service). The budgeted transfers assume all expenditures occur within the fiscal year. Many of the projects are multiyear in nature and thus did not require a corresponding transfer because the expenses have yet to occur. The revenue received within the Capital Fund is dependent on the progress of projects and the timing of expenses. Capital Fund expenditures of 23.5 million were significantly less than the budgeted amount of 62.2 million. Of the 38.7 million difference, 3.8 million will be rolled into FY 217, including 1.9 million in encumbrances, for the continuation of approved projects. FY 215 Audited Capital Fund Total Revenues Total Expenditures Net Capital Fund Operations Net Change in Reservations Available Resources 23,754,93 2,339,47 3,415,46 FY 216 UnAudited 27,346,957 23,473,393 3,873,565 FY 216 Actual to Revised Budget FY 216 Revised Budget 39,94,699 62,193,164 (22,252,465) (12,593,741) (38,719,771) 26,126,3 FY 216 Actual to FY 215 Actual 3,592,28 3,133, ,15 (283,41) 3,59,524 FY 216 figures in this report reflect yearend results but are not yet audited by the City s independent auditors, and are subject to change. 4 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

8 EXECUTIVE SUMMARY Economic Summary The Budget Office in the Department of Finance and Administration reports on key economic indicators on a quarterly basis. All economic reports are located on the City s website at: Employment Figures provided by the Idaho Department of Labor indicate the Boise labor market has continued to grow. At the start of FY 216, the City of Boise had an unadjusted unemployment rate of 3.3% for a labor force of 117,326 willing workers. By the end of FY 216, the unadjusted unemployment rate improved 1 basis points to 3.2%. The City s labor force grew 2,592 willing workers, totaling 119,918 at fiscal yearend. Development Construction activity in FY 216 continued at a strong pace. Total permit issuances increased from 2,15 in FY 215 to 2,733 total permits in FY 216, a 2.9% increase. Total permit revenues increased from 8.6 million to 1. million during the same period, a 16.8% increase. The rate of development growth is projected to slow given that the industry is operating at a high level after three years of rapid growth, but construction activity remains strong. Sales Tax Gross sales tax collected by the State, a portion of which is shared with cities, increased by 98.8 million, or 6.7%, in FY 216. Sales tax revenue for the City in FY 216 posted a stronger gain, up 7.8% to 16.3 million. This increase follows growth of 8.5% for the prior year. For FY 217 we project this revenue source will again grow at a pace of 5.% or more based on current economic conditions. For FY 217, sales tax revenue was conservatively budgeted at 15.6 million, 721k less than the actual figure for FY 216, ensuring we are not counting on onetime revenue spikes to support base operations. Should the City s sales tax receipts grow 5.% in FY 217, this amount would exceed the budget by 1.5 million. Air Transportation Boise Airport passenger traffic is an important economic indicator. During FY 216, passenger volume increased by 9.4% when compared to FY 215. This increase in passenger traffic marks the third fiscal year in a row of solid passenger growth. FY 216 growth was boosted by the addition of flights to Reno and Sacramento by Southwest Airlines, and Dallas by American Airlines. Outlook Economic growth in 216 has been positive but is down significantly from 214 and 215. Real U.S. Gross Domestic Product (GDP adjusted for inflation) is projected to be 1.5% in 216, down 1.% from the average for 214 and 215. Idaho s economy is tracking similarly. It s uncertain why the economy has slowed, but business investment, wage growth, and worker productivity are lower than expected. Barring unforeseen economic challenges which trigger a recession, Real GDP is expected to grow at a faster pace over the next three years, above 2.%. Economists also project that historically low interest rates will trend upward during Consumer sentiment, as measured by the University of Michigan Consumer Sentiment Index, remains in a good range, 91.6 out of 1. as last measured for November. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 5

9 EXECUTIVE SUMMARY While down slightly from 215 s average of 92.9, it is higher than 214 s average of 84.1, and prior year averages in the 6 s and 7 s going back to the Great Recession years of 28 and 29. Calendar year 216 marks the seventh consecutive year of economic growth, which is a relatively long period without experiencing an economic downturn. We continue to build longterm forecasts based on conservative growth trends without a recession. We have modeled the possibility of a recessionary period, given recent recessions have occurred at a frequency of one every six to ten years. The results of this recession analysis have been presented to City leadership, and we are aware that tradeoffs may be necessary to balance the budget should an economic downturn occur. 6 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

10 GENERAL FUND Fund Summaries The following analysis provides a closer review of the City s primary funds: General, Capital, Airport, Geothermal, Sewer, Solid Waste, Housing, Fleet Services and Risk Management. The review briefly describes the most significant differences from last fiscal year and from the revised budget. Because budget appropriation is approved at the department level within the General Fund, department financial summaries are included in the General Fund section. General Fund The General Fund finished the year with 11. million in operating surplus. After considering the changes in balance sheet reserves and planned funding for City Council initiatives, the undesignated fund balance was 13. million. The strong economic environment affecting the construction sector (development fees) and disposable spending (sales tax) along with departmental fiscal control were the primary contributing factors for a positive end of year figure. In the chart below, the Other Revenue category includes Traffic Fines, Parking, Franchise Fees, Internal Charges, Liquor Tax, Prior Year Resources, Contingency, and Donations, many of which are addressed in more detail later. 216 Year End General Fund Actual 215 Revenues Property Tax Revenue Sales Tax Revenue Development Fees External User Fees Other Revenue Total Revenue 123,953,978 15,146,775 9,683,13 21,16,8 28,311, ,22, ,371,623 16,321,14 11,187,261 22,262,126 22,252,488 23,394, ,685,322 57,586,914 1,17, ,442, ,891,92 65,468, , ,33,686 3,871,673 Expenditures Personnel Services Maintenance & Operations Major Equipment Total Expenditures Net Fund Source/(Use) Changes in Designations & Reservations Budget Workshop Initiatives Net Available Resources 216 Year over Year Variance Over/(Under) 8,455,674 (4,24,645) 8,86,72 1,952,223 13,22,68 13,326,48 14,143,739 8,29,765 21,88,519 28,328,725 22,969,796 5,793,43 (7,881,861) 2,188 (1,888,27) 136,189,215 65,48,386 1,3,195 22,969,796 7,8,55 2,355,385 (285,) 7,417,645 1,174,365 1,54,247 1,155,326 (6,59,34) 5,192,28 Actual/Budget Variance Over/(Under) Budget 216 (6,1,289) 3,955,645 4,935,96 (2,53,893) (7,893,472) (13,16) (1,527,38) CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 1,45,575 2,177,41 2,896, ,67 (6,76,237) 424,842 1,952,223 2,355,385 (285,) 13,22,68 7

11 GENERAL FUND General Fund Revenues Total actual revenues were 425k more than budgeted. The Other Revenue budget includes 5.1 million in planned use of prior year resources. Prior year resources are not recognized on the income statement but are reserved on the balance sheet. When considering prior year resources, actual revenues exceeded the budgeted amount by 5.5 million or 2.7%, and FY 215 revenue by 5.2 million or 2.6%. Several revenue categories, including Sales Tax and Development Fees, were anticipated to exceed budget expectations by significant amounts. To maintain a conservative fiscal approach, the City has elected to treat these increases as onetime in nature. This prevents building base expenditure increases until the revenues can be relied upon as a sustainable level of collection. Each of the major revenue categories are discussed below: Property Tax revenue totaled million, 1. million (.8%) above the budgeted amount. The City receives outstanding delinquent property taxes, which drives the total property taxes received above the budgeted amount. The delinquent collections in FY 216 were more than in years past, due to increased efforts by Ada County to collect delinquent property taxes. Sales Tax revenue totaled 16.3 million or 2.2 million (15.4%) over the budgeted amount. This represents a 7.8% increase (1.2M) compared to FY 215. Sales Tax receipts continue to experience strong yearoveryear growth. The FY 217 budget has been adjusted upward to 15.6 million, representing a new base level of collection. Total development fee revenues amounted to 11.2 million, approximately 2.9 million (34.9%) over budget and 1.5 million (15.5%) over last year. The increase was driven by residential activity, including higher residential value, and trade permits. The FY 217 development fee budget was increased for the third consecutive year, during the budget workshop, to recognize the projected base component of these revenues. o 8 According to City Construction Reports, the number of new singlefamily permits increased by 89 (14.7%) during the fiscal year when compared to FY 215. Trade permits increased by 5 (3.%). Commercial and multifamily permits, and commercial valuation, were down yearoveryear, but remain at a high level. External user fees came in at 22.3 million, 382k (1.7%) over budget. External user fees include Fire and Police service contracts, Park services utilization fees, Library fees, and other miscellaneous fees. The predominant contributor to the revenue excess was Parks and Recreation user fees as the programs continue to grow participation yearoveryear. Internal user fees (within the Other Revenue category) primarily consists of indirect reimbursement from Enterprise Funds. Internal user fees totaled 5.7 million and were 465k (7.5%) under budget. One change to note within this category is that computer charges, which previously were direct billed, decreased from 5.1 million to in FY 216. This accounting change is in concert with a focus towards full cost accounting. Computer service charges are now part of the indirect cost plan. The revenue received in the form of indirect reimbursement represents the amount from the Enterprise/Other funds for general overhead costs. The amount charged to the Enterprise/Other funds depends on several allocation factors, thus what is received will vary from CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

12 GENERAL FUND the budget. Given FY 216 was the first year of the change to the indirect cost plan, this item will be reviewed and adjusted if needed. Liquor Tax revenues (within the Other Revenue category) were budgeted at 3.4 million. Actual revenues disbursed to the City totaled 3.8 million or 357k (1.4%) over budget. The overage is primarily due to increased overall liquor sales combined with higher proportionate sales within city limits. Total franchise fee revenue (within the Other Revenue category) was 298k (5.5%) less than the budgeted amount of 5.5 million and 136k (2.7%) more than FY 215. Both Natural Gas and Cable Television revenue fell short of expectations. Both of these budgets were adjusted during the budget development process for FY Audited Franchise Fees Natural Gas Garbage Cable Television Water Total Franchise Fees 1,645,252 1,265,245 83,517 1,278,161 5,19, UnAudited 1,652,485 1,317, ,615 1,295,453 5,155, Budget 1,811,213 1,286,382 1,138,951 1,216,944 5,453,49 Variance Over/(Under) (158,728) 31,43 (249,336) 78,59 (298,152) % of Budget Collected/ Expended 91% 12% 78% 16% 95% o Natural Gas: The total amount anticipated for natural gas franchise fee revenue was 1.8 million. The total received was 1.7 million or 159k (8.8%) under budget, and 7k (.4%) above FY 215. Reduced usage along with an average 5.7% rate reduction on 1/1/215 led to the budgetary shortfall. o Garbage: Solid Waste franchise fees ended the year over budget by 31k (2.4%) and above FY 215 by 53k (4.2%). The surplus and yearoveryear growth is predominately due to customer growth. o Cable: Total cable franchise fee revenue ended the year 249k (21.9%) below budget and 59k (7.1%) above FY 215. Cable franchise fee receipts fell dramatically in FY 215 and there was concern that the decreases would continue in FY 216. FY 216 receipts showed an increase and this level of collection represents a projected new base. The FY 216 budget was not adjusted during the year, however the FY 217 budget is in line with the collection amounts in both FY 215 and FY 216. This item remains a watch item given the significant changes in the industry including increased competition and internet streaming options. o Water: Water franchise fee revenue finished 79k (6.5%) over budget. This positive variance is due to a 6% rate increase in December of 215. Fines and forfeiture revenue (within the Other Revenue category) amounted to 2.6 million 6k (2.2%) below budget and 39k (11.6%) below FY 215. The budget to actual variance in FY 216 is the net result of a surplus in traffic fine revenue (15k) and a shortfall within parking & towing fines (23k). The shortfall in parking & towing fines was expected due to the recent change in the parking strategy downtown. Given the proposed change, the City anticipated that CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 9

13 GENERAL FUND parking fines would decrease and meter revenue would increase, and that is what occurred in FY 216. Meter revenue is within the External Fee category and finished 267k over budget. As anticipated the parking program revenue remained essentially the same but compliance increased. The planned reduction in parking fines, as previously mentioned, was the reason for the yearoveryear decline in this category. General Fund Expenditures At fiscal yearend, General Fund expenditures totaled million and were 1.5 million (5.2%) under budget. This was 1.9 million (1.%) less than the actual amount expended in FY 215. Total expenditures within the General Fund include typical operating expenses. General Fund expenditures also include a transfer to the Capital Fund based on total capital expenditures and the amount needed to cover items that are encumbered and/or rebudgeted within the Capital Fund. In past years the Capital Facilities Contingency was rebudgeted as part of the end of year process and thus a transfer was made to allow the spending authority to carry forward. During the FY 216 end of year process it was determined that the Capital Facilities Contingency would not be rebudgeted, alternatively an interim budget change will be brought forth to move the entire remaining balance from the General Fund to the Capital Fund in FY 217. This properly aligns resources for both capital and operations given the projected use of the contingency is for capital projects. The budget to actual variance was due to the combination of savings across each of the expenditure categories. Personnel savings occurred due to vacant positions and unspent personnel contingencies. Budgetary savings within M&O were from several areas, the most notable being contingency accounts, professional services, contract services, fuel costs, and minor equipment. Contingency savings occurred in both the operating contingency (2.5M) and the strategic planning contingency (48k). These savings are onetime in nature as the contingencies are budgeted in FY 217. Also, 1.5 million of the savings for FY 216 was planned to increase the City s cash flow reserve, to get the City closer to the goal of 8% of the General Fund budget. Savings within contract services (2.M), professional services (1.6M), and minor equipment (375k) are dependent on the timing of expenditures, and much of the savings is requested as part of the rebudget/encumbrance process. Fuel savings (478k) occurred in FY 216 due to favorable fuel prices. Given the volatility of this expense, conservative budgeting practices are recommended and used. General Fund End of Year Budget Of the total budget savings of 1.5 million, 3.2 million in expenditure appropriation is requested via the rebudget process. Requested revenue rebudgets total 246k, for a net rebudget request of 3. million. The rebudgets consist of the following: million in net rebudget requests for operating projects or purchases initiated but not yet completed CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

14 GENERAL FUND 449k in encumbrances to account for contractual obligations that could not be completed within the fiscal year Summary of General Fund Fund Balance The end of FY 216 leaves the total fund balance at 5.2 million: 12.3 million designated for specific purposes, 13.3 million undesignated and available for Mayor and City Council discretionary spending, and 12. million in Cash Flow Reserve. The General Fund Cash Flow Reserve amounts to 5.8% of total FY 217 adopted expenditures of 28.6 million. As mentioned above in the General Fund Expenditure section, the 12.5 million in Capital Facilities Contingency listed below was as of 9/3/216. It will be moved to the Capital Fund in early FY 217 to better align resources with their intended use. General Fund: Fund Balance Total 5.2 Million Undesignated, 13.3, 26% Capital Facilities Contingency, 12.5, 25% Designated, 12.3, 25% Cash Flow Reserve, 12., 24% General Fund Department Summaries The following departmental sections provide a closer review of each General Fund department. The review briefly describes significant changes from last fiscal year and variances from the revised budget. The City continues to look at longterm models to measure financial sustainability and make decisions accordingly. Personnel costs make up the vast majority of base operating costs within the General Fund and thus are frequently subject to analyses across departments to ensure the City s operations remain financially sustainable and prudent. In summary, total General Fund departmental operating revenue exceeded the budget by 2.2 million (5.6%). These figures exclude Intergovernmental revenues and expenses, such as property taxes, which were discussed earlier in this report. Expenditure savings were experienced in all three major categories including: personnel savings of 1.7 million (1.3% below budget), M&O savings (before encumbrances and rebudgets) of 8.2 million (11.6%), and major equipment savings (before encumbrances and rebudgets) of 13k (1.%). After encumbrances and rebudgets, the operating departments recognized 8.9 million in net income. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

15 GENERAL FUND Departmental Analysis At the close of each fiscal year, the Department of Finance and Administration reviews each department s financial status to determine the net departmental position. The following department summaries represent departmental overages or shortages, both before and after encumbrances and rebudgets (adjustments). NOTE: Operating revenue within each of the departmental charts predominately consists of one or more of the following: grants, donations, contributions, indirect costs, and user fees. Indirect Cost Plan Note In FY 216, the City instituted a new indirect cost allocation plan (CAP), to allocate costs from certain General Fund departments and functions that provide services citywide. To allocate indirect costs, the organization has been broken down into numerous cost or activity centers that are then set up as payers of indirect cost or receivers of indirect costs as revenues. The result is that all departments show indirect cost as an expense, with some General Fund departments also receiving revenue (from payers). The CAP plan enables the General Fund to recover expenses from the Enterprise Funds for citywide services provided by and budgeted within the General Fund. CAP entries also include General Fund to General Fund transactions, in order to more accurately reflect the true cost of service delivery. It is important to note that within the General Fund, there is no net financial effect from these transactions, since all expenses have offsetting entries. As noted throughout this report, a number of large variances occurred in the CAP s first year, primarily attributable to actual expenditures coming in below budget. The CAP was budgeted to recover 4.9 million of indirect cost from the Enterprise Funds, but only 4.7 million was charged, a variance to budget of 246k. This variance represents cost savings for Enterprise Funds and a relatively small indirect revenue shortage in the General Fund. The departmental variances for General Fund to General Fund transactions again have no net effect. Going forward, Accounting and Budget are looking at ways to simplify the process, so that it generates equitable indirect cost transfer without creating unnecessary variances to budget. 12 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

16 GENERAL FUND Arts and History 215 Actual Arts and History 216 Actual Actual vs Budget Variance % Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 987,463 19,835 1,7,298 1,426,723 2,454 1,447,177 1,426,723 19,325 1,446,48 1,129 1,129 Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 622,85 332, , , ,18 1,427, , , ,446,48 16,89 (34,314) (49) (18,274) Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 51,553 Departmental Net Position After Adjustments 51,553 19,43 8,696 1,77 19,43.% 5.8%.1% 2.4% 4.5% 1.% 1.3%.% 8,696 1,77 Arts and History ended the year with unused appropriation of 18k and 1k in surplus revenue. These factors contributed to a net position of 19k before adjustments and 11k after adjustments. The majority of the unused appropriation was attributable to underspend in various maintenance and operating accounts offset partially by overages in personnel costs. The FY 217 budget has been adjusted based on personnel spending patterns. Compared to FY 215, departmental operating revenue increased by 1k (3.1%). Excluding indirect costs due to the new CAP, yearoveryear expenses increased 16k (36.5%) due primarily to the increase in the grant program and the addition of a parttime position during FY 216. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR Current vs

17 GENERAL FUND City Council 215 Actual City Council 216 Actual Actual vs Budget Variance % Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 521, ,44 738, ,93 117,81 783, ,93 123, ,876 (6,145) (6,145).% 5.%.8% Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 543,634 58,749 62, ,5 61, ,186 71,725 79, ,876 (46,72) (17,97) (64,69) 6.6% 22.7%.% 8.2% Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 136,54 Departmental Net Position After Adjustments 136,54 58,546 58,546 58,546.% 58,546 City Council ended the year with a positive departmental net position of 59k. Personnel savings of 47k were driven primarily by temporary vacancies in the Internal Audit and City Council divisions. Compared to FY 215, the department experienced a decrease in operating revenue of 1k (45.8%) and an increase in expenses of 123k (2.4%), for a net increase in General Fund Contribution of 222k. Operating revenue decreased due to a reduction in indirect revenue based on the new cost allocation plan. Expenditure increases yearoveryear were predominately due to personnel costs associated with filling vacant positons and the addition of staff as approved during FY CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 Current vs

18 GENERAL FUND Community Engagement 215 Actual Office of Community Engagement 216 Actual Actual vs Budget Variance % Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 598, ,89 598,74 598,74 Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 428, 166, , ,74 17, 598,74 Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments Departmental Net Position After Adjustments 3,65 3, %.%.% (74) (3,562) (3,635).% 2.1%.%.6% 3,65.% 3,65 Community Engagement ended the year with unused appropriation of 4k and k in surplus revenue, for a net position of 4k. The Community Engagement budget was built as FY 216 progressed and the FY 217 budget was built based on known contracts and approved staffing levels. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR Current vs

19 GENERAL FUND Contractual Services Contractual Services 215 Actual Actual Revenue/Resources General Fund Contribution Operating Revenue Subtotal 8,255, ,932 8,392,854 9,284, ,432 9,427,197 9,284, ,754 9,41, ,678 16,68.% 13.3%.2% Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 8,121,257 8,121,257 8,834,77 8,834,77 9,41,517 9,41,517 (575,81) (575,81).% 6.1%.% 6.1% 592,49.% Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 271, ,366 Departmental Net Position After Adjustments (13,77) 592,49 3, 292,49 Actual vs Budget Variance % Budget 3, 292,49 Contractual Services includes contributions to: Valley Regional Transit (VRT), Idaho Humane Society (Animal Control), and Magistrate Court. This department ended the year with unused appropriation of 576k and a revenue shortfall of 17k. The net position of the department was 592k before adjustments and 292k after adjustments. The rebudget listed above for 3k is the remaining funding dedicated to VRT, including unused capital contribution appropriation. Given the volatility of VRT s capital expenditures the City has made it a practice to rebudget the remaining funds. Compared to FY 215, the department experienced an increase in operating revenue of 6k (4.%) and an increase in expenses of 468k (5.8%), excluding indirect costs, for a net increase in departmental resource use of 462k. The increase in yearoveryear expenses was driven primarily by standard contract increases and strategic enhancements to VRT services via an increased contribution. 16 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 Current vs

20 GENERAL FUND Finance and Administration Finance and Administration 215 Actual Actual Revenue/Resources General Fund Contribution Operating Revenue Subtotal 1,149,815 5,787,854 6,937,669 5,315,413 2,99,196 7,414,69 5,315,414 2,355,296 7,67,71 (1) (256,1) (256,11).% 1.9% 3.3% Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 4,148,282 1,91,346 6,58,628 4,664,737 1,954,127 6,618,864 4,525,422 3,145,288 7,67,71 139,315 (1,191,161) (1,51,846) 3.1% 37.9%.% 13.7% Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 879, ,524 65,79 Departmental Net Position After Adjustments 171,88 795, ,485 33,26 Actual vs Budget Variance % Budget 795,745.% 492,485 33,26 Finance and Administration (DFA) ended the year with unused appropriation of 1.1 million and a revenue shortfall of 256k. The departmental net position was 796k before adjustments and 33k after adjustments. Operating revenues fell short of budget by 256k due to internal service charges in total. The revenue shortfall in this area is offset by corresponding expenditure savings and thus has no financial impact. DFA s expenditure savings were the result of professional services (35k), CAP indirect costs (191k), and savings associated with allocated onetime funds to assist in the Finance Optimization project. The onetime funds for the Finance Optimization Project are proposed for rebudget in FY 217. Compared to FY 215, the department experienced a decrease in operating revenue of 3.7 million and an increase in expenses of 56k, for a net increase in departmental resource use of 4.2 million. Operating revenue fell due to a change in where parking fines and meter revenue are recorded, changes in the indirect cost plan, and revenue associated with the reimbursement for collection services. Parking fines and meter revenue are now recorded within a citywide cost center and are allocated towards transportationrelated expenditures. Collection services were moved to the Sewer Fund during FY 216 and thus Finance and Administration no longer collects reimbursement revenue from the Sewer Fund. The increase in total expenses is the net result of changes in the indirect cost plan, net personnel changes due to the Finance Optimization Project (as approved during the FY 216 budget development process), the transfer of collections staff to the Sewer Fund, and reduced costs associated with professional services and contract services. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR Current vs

21 GENERAL FUND Fire Fire 215 Actual Actual Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 37,919,672 8,61,35 46,52,77 4,742,697 9,91,573 49,834,27 4,742,697 9,75,86 49,818,53 Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 37,787,156 4,693,218 24,911 42,55,285 39,579,441 8,8,568 34,786 48,414,795 39,849,982 9,913,174 55,347 49,818,53 Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 4,15, , ,63 Departmental Net Position After Adjustments 3,741,79 1,419, ,469 45, 1,157,6 Actual vs Budget Variance % 15,767 15,767 (27,541) (1,112,66) (2,561) (1,43,78) 1,419,475.%.2%.%.7% 11.2% 37.1% 2.8%.% 217,469 45, 1,157,6 Fire ended the year with unused appropriation of 1.4 million and 16k in surplus revenue. The departmental net position was 1.4 million before adjustments and 1.2 million after adjustments. Operating revenues were essentially on budget. Expenditure savings occurred in all three major categories. Personnel expenditure savings resulted from the regular fire recruit academies that have occurred over the past several years, which reduced overtimerelated costs. Having sufficient staff to cover retirements has reduced dependence on overtime and constant staffing during busy periods. The primary contributors to M&O savings were costs associated with the Fire Risk Map grant (146k rebudgeted), the Emergency Medical Services Joint Powers Agreement (173k) and savings in motor fuels (139k). Major equipment savings were nominal and grantrelated. When compared to FY 215, the department experienced an increase in operating revenue of 491k (5.7%) and an increase in expenses of 5.9 million (13.9%) for a net increase in departmental resource use of 5.4 million funded by the General Fund Contribution. The vast majority of the increase in expenditures when compared to FY 215 is due to the Cost Allocation Plan (CAP, 4.5M) that was enacted in FY 216. Personnel cost increases (1.8 million), as a result of contractual increases per the labor and Union Heath Trust agreements, were responsible for the remainder of the expenditure increase from the prior year. Excluding the CAP, M&O expenditures declined by 49k, predominantly in minor equipment (369k), insurance cost reductions (173k), and the net effect of various other M&O accounts. The reduction in minor equipment expenses was due to several onetime purchases in FY 215 that were not duplicated in FY CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 Current vs

22 GENERAL FUND Human Resources 215 Actual Human Resources 216 Actual Actual vs Budget Variance % Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 1,454, ,114 1,833,779 1,652,91 443,63 2,95,154 1,652,91 425,772 2,77,863 17,291 17,291 Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 1,295, ,623 1,721,115 1,47,69 364,4 1,835,9 1,449, ,5 2,77,863 2,751 (263,65) (242,854) Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 112,664 1, Departmental Net Position After Adjustments 12,664 26,145 37,2 223,125 26,145.% 4.1%.8% 1.4% 42.%.% 11.7%.% 37,2 223,125 Human Resources (HR) ended the year with unused appropriation of 243k and an operating revenue surplus of 17k. The departmental net position was 26k before adjustments and 223k after adjustments. After excluding savings within the indirect cost line (135k), the remainder of the savings within the M&O category were due to the timing associated with professional service contracts and miscellaneous onetime savings. The savings within these categories is not expected to become base expenditure reduction and the FY 217 budget is built accordingly. Compared to FY 215, the department experienced an increase in operating revenue of 64k (16.9%) and an increase in expenses of 114k (6.6%) for a net increase in departmental resource use of 5k funded by General Fund Contribution. The yearoveryear increase in operating revenue is due to indirect cost plan calculations, which have a net zero effect on the General Fund in total, and miscellaneous service reimbursements. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR Current vs

23 GENERAL FUND Information Technology 215 Actual Information Technology 216 Actual Actual vs Budget Variance % Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 1,772,757 5,569,548 7,342,35 7,214, ,982 8,154,856 7,214, ,97 8,21,972 (1) (56,115) (56,116).% 5.6%.7% Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 5,267,24 1,955,521 12,93 7,234,854 5,787,689 2,352,386 8,14,76 5,647,69 2,563,282 8,21, ,999 (21,896) (7,896) 2.5% 8.2%.%.9% 14,781.% Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 17,451 1, 94,15 Departmental Net Position After Adjustments 3,346 14,781 14,781 () 14,781 () Information Technology (IT) ended the year with unused appropriation of 71k and an operating revenue deficit of 56k. The departmental net position was 15k before adjustments and after adjustments. The operating revenue shortage was due to indirect cost reimbursement. The expenditure savings is the net result of personnel overages and savings in M&O. The personnel overage was due to extensive use of oncall field techs, support for major projects, and several retirements of long term employees. M&O savings were primarily due to savings in contract labor and system maintenance. Compared to FY 215, the department experienced a reduction in operating revenue of 4.6 million (83.1%) combined with an expense increase of 95k (12.5%) for a net increase in departmental resource use of 5.5 million. The majority of the yearoveryear revenue decrease was attributable to a change in how the indirect cost plan is represented at the fund level. The IT department received operating revenue in the form of computer charges in past years, however the new indirect methodology removed this revenue entry and thus had a corresponding increase in the General Fund Contribution to the department. The end result is a net zero change as the fund level and represents a change in how the fund and department recognize the revenue. The yearoveryear expense increase in personnel costs was due to citywide performance pay increases, market pay analysis, and additional position needs. The other primary reason for the total expenditure increase is increased costs within software maintenance due to the addition of various systems across city operations. 2 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 Current vs

24 GENERAL FUND Legal 215 Actual Legal 216 Actual Actual vs Budget Variance % Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 4,23,142 1,12,746 5,35,888 4,698,266 1,53,144 5,751,41 4,698,266 1,124,7 5,822,336 (7,926) (7,926).% 6.3% 1.2% Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 4,655,38 528,144 5,183,182 4,89, ,322 5,56,136 4,876, ,48 5,822,336 (67,114) (249,86) (316,2) 1.4% 26.3%.% 5.4% Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 122,77 15, Departmental Net Position After Adjustments 17,77 245, , 91, ,274.% 154, 91,274 Legal ended the year with unused appropriation of 316k and a revenue deficit of 71k. The departmental net position was 245k before adjustments and 91k after adjustments. After considering the requested rebudget, M&O savings were spread across professional services and indirect costs. The savings in indirect costs has a net zero impact to the General Fund. Compared to FY 215, the department experienced a decrease in operating revenue of 5k (4.5%), combined with an increase in expenses of 323k (6.2%), for a net increase in departmental resource use of 373k funded by General Fund Contribution. The decrease in operating revenue is the net result of an increase in contract service revenue due to the addition of the Garden City contract, coupled with a decrease in indirect revenue from the cost allocation plan. The increase in yearoveryear expenditures is due to standard increases in personnel costs and increases to internal charges, specifically CAP indirect costs. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR Current vs

25 GENERAL FUND Library Library 215 Actual Actual Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 1,457,461 61,478 11,67,939 11,427, ,72 12,89,964 11,427,89 772,375 12,2,265 2 (11,33) (11,31).% 14.3%.9% Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 5,237,662 3,582, ,458 9,717,697 5,342,676 4,135,246 1,129,753 1,67,675 6,98,572 4,967,155 1,134,538 12,2,265 (755,896) (831,99) (4,785) (1,592,59) 12.4% 16.7%.4% 13.1% Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 1,35, ,63 Departmental Net Position After Adjustments 1,62,613 1,482,289 22,7 1,28,282 Actual vs Budget Variance % 1,482,289.% 22,7 1,28,282 Library ended the year with unused appropriation of 1.6 million and a revenue deficit of 11k. The departmental net position was 1.5 million before adjustments and 1.3 million after adjustments. Operating revenue was slightly lower than projected, due to donation revenue received but classified as unearned in FY 216. Within M&O, savings were in contracted and miscellaneous costs (213k), and system maintenance (17k). Indirect cost savings due to the CAP also contributed to M&O underspend (416k). Personnel and M&O savings were expected as the FY 216 budget was built with the anticipated operating needs of the Bown Library. Given the timing of the project, the operating expenses were not utilized during the fiscal year. Compared to FY 215, the department experienced an increase in operating revenue of 52k (8.5%), coupled with an expenditure increase of 89k (9.2%), for a net increase in departmental resource use of 942k funded by the General Fund Contribution. The revenue increase was due to a 65k increase in donations in FY 216. Personnel costs increased 15k, which is consistent with annual increases via the pay for performance model. The rest of the expense increase was attributable to a change in the indirect cost plan, increasing 1.3 million, slightly offset by lower costs for internal charges (519k). Other increases include transfer out expenses primarily associated with donations received in the General Fund designated to the ongoing capital project (442k), timing of major equipment purchases (232k), purchase of additional books/materials (44k) in preparation for the Bown Crossing opening, and building & grounds maintenance (19k). 22 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 Current vs

26 GENERAL FUND Office of the Mayor 215 Actual Office of the Mayor 216 Actual Actual vs Budget Variance % Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 2,266, ,757 2,72,631 2,473,278 46,624 2,933,92 2,473, ,949 3,121,225 2 (187,325) (187,323).% 28.9% 6.% Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 1,191, ,413 2,167,224 1,413,542 1,454,552 2,868,94 1,422,373 1,698,852 3,121,225 (8,831) (244,3) (253,131).6% 14.4%.% 8.1% Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 553,46 37,25 89,22 113,594 Departmental Net Position After Adjustments 313,36 65,89 56,618 9,191 () 65,89.% 56,618 9,191 () The Mayor s Office ended the year with a revenue shortfall of 187k, offset by unused appropriation of 253k. The departmental net position was 66k before adjustments and after adjustments. The revenue shortfall was primarily due to overbudgeted grant revenue. Expense savings were predominantly in M&O for program cost (147k), meetings and transportation (8k), and professional services (8k), offset by some small items where cost exceeded budget. Compared to FY 215, the department experienced an increase in operating revenue of 7k (1.5%) coupled with an increase in expenses of 71k (32.3%) for a total increase in departmental resource use of 78k. The yearoveryear expenditure increase is due to increased personnel costs of 222k and increased M&O costs in professional services (195k) and CAP indirect cost (29k). Increases in personnel costs were driven by the filling of several vacant positions, and the M&O cost increases within professional services were due to various citywide strategic projects. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR Current vs

27 GENERAL FUND Parks and Recreation Parks and Recreation 215 Actual Actual Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 15,199,43 8,871,51 24,7,454 2,495,58 9,48,957 29,544,15 2,495,57 8,58,444 29,75,51 Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 14,271,89 8,887,97 23,159,797 14,26,738 13,71,686 27,962,424 14,245,924 14,829,577 29,75,51 Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments Zoo & Golf Reserves Departmental Net Position After Adjustments 91,657 86,92 (4,535) 18,84 683, ,581,59 2,58 486,665 1,74,867 Actual vs Budget Variance % 1 468, ,513 14,814 (1,127,891) (1,113,77).1% 7.6%.% 3.8% 1,581,59.% 2,58 486,665 1,74,867.% 5.5% 1.6% Parks and Recreation ended the year with unused appropriation of 1.1 million and 469k in surplus revenue. The departmental net position was 1.6 million before adjustments and 1.1 million after adjustments. Operating revenue exceeded budget by 469k due to strong program fee revenue, in particular golf course and zoo revenues, as well as miscellaneous revenue. Expenditure savings in M&O are due to various accounts, the largest being contract services(448k) and motor fuels (127k). CAP indirect cost generated the remaining surplus in M&O (478k). Compared to FY 215, the department experienced an increase in operating revenue of 178k (2.%), offset with an increase in expenses of 4.8 million (2.7%), for a net increase in departmental resource use of 4.6 million funded by General Fund Contribution. The revenue increase was primarily driven by fee income and staff reimbursement. The large expenditure increase of 4.6 million was due to increased CAP indirect cost of 5.9 million, minor equipment (17k), and utilities (85k). Offsetting expense savings were in discontinued internal charges for computer services (588k), insurance costs (132k), professional services (118k), and vehicle maintenance (18k). 24 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 Current vs

28 GENERAL FUND Planning and Development Services Planning & Development 215 Actual Actual Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 6,76,783 9,282,676 15,359,459 4,95,759 1,692,165 14,787,924 4,95,76 8,26,655 12,122,415 (1) 2,665,51 2,665,59.% 33.2% 22.% Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 7,342,262 2,542, ,885,4 7,738,457 3,218,211 1,956,669 7,964,876 4,157,539 12,122,415 (226,419) (939,328) (1,165,746) 2.8% 22.6%.% 9.6% Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 5,474, , ,55 Departmental Net Position After Adjustments 4,484,9 3,831,256 48, ,16 3,151,959 Actual vs Budget Variance % 3,831,256.% 48, ,16 3,151,959 Planning and Development Services (PDS) ended the year with 1.2 million of unused appropriation and 2.7 million of surplus revenue. The departmental net position was 3.8 million before adjustments and 3.2 million after adjustments. Revenues continued to post strong gains as a result of economic conditions. In FY 216 singlefamily residential development posted yearoveryear gains, whereas multifamily residential permits were lower, and commercial permits and valuation were slightly lower, than FY 215. While yearoveryear comparisons present a mixed picture, and are possibly influenced by the timing of large projects, development continues at a strong pace. The budget for FY 217 operating revenue has been conservatively set at 9.3 million, below the 1.7 million generated in FY 216, but the upward adjustment from the FY million budget represents an assumed level of reliable collection. Personnel cost savings were due to the timing of hiring for new positions. The majority of M&O savings (939k) is requested to be rebudgeted/repurposed for ongoing initiatives (679k), such as the LIV initiative, downtown housing incentives, and various professional service contracts. Other cost savings were due to minor equipment, fuel and utilities, and contracted costs. Compared to FY 215, the department experienced a substantial increase in operating revenue of 1.4 million (15.2%), partially offset by an increase in expenses of 1.1 million (1.8%), for a net decrease in departmental resource use of 338k. The revenue increase was attributed to development fees, licenses, and permits. The net expenditure increase is explained by CAP indirect cost (1.1 million). Other expense variances offset each other, including personnel cost increases of 396k, reduced M&O cost for internal charges (265k), and some smaller items. The yearoveryear personnel cost increase reflects the addition of five FTEs authorized early in FY 216 (in last year s End of Year Report) to accommodate development activity, four of which have been hired. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR Current vs

29 GENERAL FUND Police Police 215 Actual Actual Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 44,358,178 6,264,888 5,623,66 51,18,943 6,375,779 57,484,722 51,18,942 6,619,357 57,728,299 1 (243,578) (243,577).% 3.7%.4% Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 42,375,897 6,922,678 35,3 49,333,66 44,16,899 11,985,491 5,64 56,8,3 44,762,284 12,855,754 11,261 57,728,299 (745,385) (87,263) (14,621) (1,72,269) 1.7% 6.8% 94.9% 3.% Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 1,289, ,793 61,34 Departmental Net Position After Adjustments 1,21,633 1,476,692 14,87 25, 1,211,822 Actual vs Budget Variance % 1,476,692.% 14,87 25, 1,211,822 Police ended the year with unused appropriation of 1.7 million and a revenue deficit of 244k. The departmental net position was 1.5 million before adjustments and 1.2 million after adjustments. Police operating revenue was below budget predominantly because of grant revenue shortfalls (375k) and a shortfall in seizure funds (97k), offset by higher than anticipated traffic fine revenue (15k). Substantial savings in all three expenditure categories were the overwhelming driver behind the positive net position. Personnel savings (745k) were a result of salary savings coupled with health savings in both the contract and general labor groups due to vacancies within the department. M&O savings (878k) resulted primarily from minor equipment (35k) and motor fuels (173k). The City s Cost Allocation Plan (CAP) generated the remaining surplus in M&O (266k), but this is not true savings as it is offset in Intergovernmental with a citywide net result of zero. The remaining surplus in Major Equipment (14k) is the result of grants, but will not be rebudgeted as there is new spending authority built into FY 217. Compared to FY 215, the department experienced an increase in operating revenue of 111k (1.8%), combined with an increase in expenses of 6.7 million (13.5%), for a total increase in departmental resource use of 6.6 million. The revenue increase was attributable to operating grants (91k). The vast majority of the increase in expenditures when compared to FY 215 is due to the CAP (5.2 million) that was enacted in FY 216. Personnel cost increases (1.6 million) are the remaining contributor to yearoveryear increases. Personnel costs are the result of contractual increases per the labor agreement, including but not limited to base and onetime pay, and health plan contributions. Overtime expenses also increased yearoveryear due to vacancies that the department is in the process of hiring, additional requests from outside agencies (reimbursement occurs), and a temporary overtime rate increase resulting from the onetime pay as outlined in the labor contract. 26 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 Current vs

30 GENERAL FUND Public Works 215 Actual Public Works 216 Actual Actual vs Budget Variance % Budget Revenue/Resources General Fund Contribution Operating Revenue Subtotal 4,927, ,137 5,84,413 6,125,4 855,54 6,98,544 6,125,5 894,991 7,19,996 (1) (39,451) (39,452).% 4.4%.6% Expenses Personnel Services Maintenance & Operations Major Equipment Subtotal 2,128,494 3,331,231 5,459,725 2,463,352 4,121,522 6,584,874 2,369,148 4,65,848 7,19,996 94,24 (529,326) (435,122) 4.% 11.4%.% 6.2% Departmental Net Position Encumbrances Net Grants/Dedicated Funding Rebudgets/Adjustments 38,688 57,324 37,21 Departmental Net Position After Adjustments 16, ,669 67,969 33,56 24,14 395,669.% 67,969 33,56 24,14 Public Works ended the year with a revenue shortfall of 39k, offset by unused appropriation of 435k. The departmental net position was 396k before adjustments and 24k after adjustments. Higher personnel costs were driven by 5k of temporary wage costs, along with higher than anticipated benefit costs for health and retirement. M&O savings resulted primarily from building & grounds maintenance (276k) and professional services (327k). The majority of M&O savings is requested to be rebudgeted/repurposed for ongoing initiatives such as LIV Sustainability efforts and storm water regulatory monitoring requirements. Compared to FY 215, the department experienced a decrease in operating revenue of 58k (6.3%), combined with an increase in expenses of 1.1 million (2.6%), for a total increase in departmental resource use of 1.2 million that was funded by the General Fund Contribution. The yearoveryear revenue decrease was due to lower indirect reimbursement revenue of 115k, otherwise this revenue category would have increased. Expenditure increases resulted from increased personnel costs (335k) from filled vacancies, added positions, and employee health plan selections. M&O expenditures increased compared to last year due to the indirect cost reimbursement (94k). CITY OF BOISE END OF YEAR REPORT FISCAL YEAR Current vs

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32 CAPITAL FUND Capital Fund Revenues and expenditures in the Capital Projects Fund fluctuate from year to year depending on the types and size of projects and the timing of revenues such as grants and donations. 216 Year End Capital Fund by Department 215 Audited Revenues Electric Franchise Fee Revenue Transfer In Other Revenue Total Revenue Expenditures Intergovernmental Arts and History Finance and Administration Fire Human Resources Information Technology Library Parks and Recreation Planning & Development Police Public Works Total Expenditures Net Change in Reservations Net Available Resources 216 UnAudited 3,87,636 18,544,148 2,123,145 23,754,93 1,662, , ,393 1,312,46 11,1 1,596,749 1,217,785 5,212,62 43,488 1,858,236 5,896,659 2,339,47 (3,415,46) 216 Budget 3,81,597 22,256,4 2,9,321 27,346,957 1,25,91 432,983 15,4 924,298 1,223,453 4,958,226 6,527, ,199 2,878,728 5,29,768 23,473,393 (283,41) 3,59,524 Variance Over/(Under) % of Budget Collected/ Expended 3,164,36 31,898,298 4,878,41 39,94,699 (82,763) (9,642,258) (2,868,72) (12,593,741) 97% 7% 41% 68% 4,83,22 1,224, ,3 1,34,889 2,22,581 1,841,793 16,556,95 3,778,982 7,34,848 14,128,54 62,193,164 (3,777,319) (791,411) (157,999) (11,591) (997,128) (5,883,567) (1,29,118) (3,411,783) (4,462,12) (9,98,736) (38,719,771) 21% 35% 4% 89% % 55% 46% 39% 1% 39% 36% 38% 22,252,465 (22,535,56) 3,59,524 Capital Fund Revenues Capital Improvement Plan (CIP) revenue earned during the fiscal year totaled 27.3 million, 12.6 million (32%) below the budgeted amount of 39.9 million. Electric franchise fees and tax support from the General Fund are typically the largest sources of revenue for the Capital Fund. Impact fees, grants, donations, and partnership contributions are smaller but essential resources that allow the City to leverage its ability to pay for capital assets. Electric franchise fee revenue was under budget by 83k (2.6%). This is directly correlated to changes in power rates that were unknown when the original budget was established, as well as any usage changes based on weather. The majority of the revenue in the Capital Fund is attributable to transfers from other funds, most of which comes from the General Fund. The transfer reflects the amount approved by the City Council as part of the adoption of the budget, as well as the amount necessary to account for the use of prior year resources. As a result, the amount may vary from the budgeted amount significantly. It should be noted that beginning with FY 217, the transfer from the General Fund will be simplified, as the Capital Facilities Contingency will be held within the Capital Fund, rather than the General Fund as it is currently. Once this change is made, anticipated to be brought forward via an Interim Budget Change before the conclusion of the calendar year, the annual transfer from the General Fund will more closely approximate the CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

33 CAPITAL FUND budgeted transfer. At the time of this report, the Capital Facilities Contingency is 12.5 million. After considering this dynamic, the budget to actual difference on the General Fund contribution is within expectations. Other transfers into this fund, such as from the Impact Fee Fund, are highly dependent upon timing of expenditures, as the transfers are not recorded from other funds until the expenditures that they support are incurred. Other Revenue consists of donations, grants, and interest income. There is often a budget to actual variance for donations and grants, as these receipts are often tied to multiyear capital projects. Capital Fund Expenditures Expenditures on capital projects during FY 216 totaled 23.5 million (37.7%) of the available expenditure budget. Of the remaining 38.7 million in budget surplus, 3.8 million was rebudgeted or encumbered at year end, with the variance primarily attributable to unspent contingency funds. Following is a small sampling of the many projects completed or in progress during the fiscal year. A more detailed explanation for all Capital Fund projects can be found in Appendix G. 3 Major Equipment (5.3 million) Bown Crossing Library (3.5 million) Major Repair & Maintenance (3.2 million) Fire Station #8 (1.5 million) River Recreation Park Phase II (1.4 million) Fire Station #4 Renovation (1.2 million) Shooting Range Improvements (1.1 million) CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

34 ENTERPRISE FUNDS Enterprise Funds An Enterprise Fund is a classification used for businesstype activities similar to those found in the private sector. Businesstype activities include services primarily funded through user fees. Airport Fund The Airport Fund accounts for operation and management of the City s airport terminal. All revenues such as terminal rent, landing, parking fees, and other charges at the airport, as well as the expenditures that support the maintenance and general operation of the facility, are tracked in this fund. Capital improvements for the airport are primarily funded from operating cash flow, Federal Aviation Administration (FAA) grants, Passenger Facility Charges, and Customer Facility Charges. 216 Year End Airport Fund 215 Audited Revenues Operating Revenue Capital Revenue Total Resources 28,79,871 9,651,72 38,442,573 6,382,32 15,121, ,745 13,67,463 1,196,51 46,11,465 Net Change Retained Earnings Inc/(Dec) * Expenditures Personnel Services Maintenance & Operations Major Equipment Depreciation Capital Accounts Total Expenditures 216 UnAudited 216 Budget 32,237,38 9,361,173 41,598,553 6,697,5 15,216,949 2,793,87 13,358,229 8,548,584 46,615,69 (7,667,892) 6,2,571 Variance Over/(Under) 27,428,652 18,934,369 46,363,21 6,6, 18,245,89 3,654,99 11,91,933 24,896,43 65,297,163 (5,16,516) (18,934,142) 13,917,625 8,341,713 (7,32,29) 15,373,922 % of Budget Collected/ Expended 4,88,728 (9,573,197) (4,764,469) 118% 49% 9% 97,5 (3,28,14) (86,292) 1,456,297 (16,347,459) (18,682,94) 11% 83% 76% 112% 34% 71% * Retained Earnings Inc/(Dec) excludes noncash items such as Depreciation. Expenditures include capitalization amounts for equipment and capital. Revenues Airport total revenues amounted to 41.6 million at fiscal yearend, or 1.3% below the budgeted amount. This was 3.2 million more than the total received last year, primarily due to a combination of increases in parking revenue, land rent and car rental revenue. Actual operating revenue exceeded the budgeted amount by 4.8 million because of airport fees (4.M), which includes airline fees, parking fees, car rental revenue, rent revenue (land and terminal), and concession revenue. The other accounts that contributed to operating revenue exceeding budget were interest income (269k), and facility rental income (66k). Airport closely monitors all operating revenue as each year progresses and in the case of anticipated shortfalls will decrease expenditure plans below the budgeted amount to compensate if needed. Capital revenues are comprised of passenger facility charges (PFCs), customer facility charges (CFCs), and capital grants. Total actual capital revenue amounted to 9.4 million, a decrease of 291k (3.%) compared to FY 215. Although the total capital revenue yearoveryear was similar, there were differences in the composition of the revenue. Capital grant revenue increased significantly, 5.3 million or 171.7%, due to the progress on the baggage system (a 1% funded TSA grant that is nonrecurring), CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

35 ENTERPRISE FUNDS while collection of passenger facility charges (PFC) decreased 5.6 million as the full amount of eligible costs have been collected and are held in reserve for debt service payment. The budget for capital revenue contains a significant amount of contingent appropriation, thus the actuals are often well below the budget each year. Operating Expenditures Actual total operating expenditures amounted to 21.9 million about 2.9 million (11.8%) under budget. This represents a 411k (1.9%) increase compared to actual operating costs for FY 215. The 2.9 million in budgetary savings was equally shared between asset writeoff expense and professional services. This category does not include depreciation expense as it is not an operating expense. Capital Expenditures Of the total 28.6 million budgeted for capital projects (includes Major Equipment line above), Airport spent 11.3 million during FY 216. Many of the projects are multiyear projects and Airport requested nearly all of the remaining appropriation to be rebudgeted. Cash and Investments As of September 3, 216, cash and investment balances amounted to 51.4 million, which is 5.2 million more than the 46.2 million reported last year. Of the total amount, 22.3 million is dedicated to support approved PFC/CFC capital projects. The balance of 29. million is intended to support other commitments, primarily infrastructure. 32 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

36 ENTERPRISE FUNDS Geothermal Fund The Geothermal Fund supports capital improvement projects and operating needs related to the City s management of its unique geothermal energy source downtown. Geothermal is a clean, renewable energy source. Fees paid by customers of the geothermal energy system cover operating costs and the depreciation of assets. The current rates charged are competitive with natural gas rates. 216 Year End Geothermal Fund 215 Audited Revenues User Fee Revenue Other Revenue Total Resources 642,83 43, ,769 11,674 17,154 21,69 479,5 952,523 Net Change Retained Earnings Inc/(Dec) * Expenditures Personnel Services Maintenance & Operations Major Equipment Depreciation Capital Accounts Total Expenditures 216 UnAudited 216 Budget Variance Over/(Under) 676,524 21, , ,97 232,155 14, , ,8 772,864 (265,754) 15,551 (83,81) 936,352 (64,64) 318,885 (635,966) 954, , ,64 1,244,583 11,91 349,358 25, 194,835 1,44,29 2,75,384 % of Budget Collected/ Expended 11,5 (467,173) (366,168) 118% 3% 71% 15,69 (117,23) (1,63) 18,499 (1,28,282) (1,32,52) 115% 66% 58% 19% 14% 37% * Retained Earnings Inc/(Dec) excludes noncash items such as Depreciation. Expenditures include capitalization amounts for equipment and capital. Revenues In FY 216, user fee revenues in the Geothermal Fund were over budget by 11k (17.6%). This was due to the addition of three additional building connections coupled with more heating demand due to winter temperatures. Other revenue was under budget by 467K (69.8%) due to the timing of grant revenue related to the expansion of the Central Addition capital project. Operating Expenditures Operating expenses were under budget by 12k (22.6%). The savings occurred within various minor repair & maintenance accounts. Operating expenses increased 77k (28.4%) compared to FY 215 due to increased expenses for personnel cost, professional services and internal charges. This category does not include depreciation expense as it is not an operating expense. Capital Expenditures Of the total 1.4 million budgeted for capital projects (includes Major Equipment line above), Geothermal spent 21k during FY 216. The remaining budget at year end will be rebudgeted for the continuation of the Central Addition capital project that has an estimated completion date in FY 217. Cash and Investments As of September 3, 216, cash and investments in the Geothermal Fund amounted to 49k, an increase of 118k compared to FY 215 yearend. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

37 ENTERPRISE FUNDS Sewer Fund The Sewer Fund is an enterprise fund comprised of four divisions: Operations, Engineering, Environmental, and Administration. Each division supports the management and operation of the City s wastewater system. The City charges customer user fees to fund operating expenses and capital improvements. 216 Year End Sewer Fund 215 Audited Revenues Operating Revenue Capital Revenue Total Resources 39,566,793 8,481,112 48,47,95 14,477,354 12,459,211 1,87,233 9,48,52 18,917,236 57,24,85 Net Change (9,156,181) Retained Earnings Inc/(Dec) * Expenditures Personnel Services Maintenance & Operations Major Equipment Depreciation Capital Accounts Total Expenditures 216 UnAudited 323, Budget 42,881,731 1,757,158 53,638,889 15,954,697 14,524,368 1,476,932 1,219,722 23,55,142 65,725,861 Variance Over/(Under) 42,788,352 7,376,61 5,164,962 16,95,518 18,911,935 3,,119 9,86,198 39,7,956 88,369,726 (12,86,972) (38,24,764) 26,117,792 (1,867,25) (28,398,566) 26,531,316 93,379 3,38,548 3,473,927 (995,821) (4,387,567) (1,523,187) 413,524 (16,15,814) (22,643,865) % of Budget Collected/ Expended 1% 146% 17% 94% 77% 49% 14% 59% 74% * Retained Earnings Inc/(Dec) excludes noncash items such as Depreciation. Revenues In FY 216, overall revenues in the Sewer Fund were over budget by 3.5 million (6.9%). Operating revenues were 93k (.2%) over budget and 3.3 million (8.4%) more than FY 215. Charges for services were very close to the projected budget within operating revenue. The overage was due to a combination of budgetary shortfalls in rental revenue (46k) and miscellaneous revenue (47k) coupled with a budgetary surplus in interest income (225k). Yearoveryear operating revenue gains were due to increased user fee revenue from customer growth and a 4% increase that took place on 1/1/215. Capital revenues for FY 216 were 3.4 million (45.8%) more than budget. After excluding developer contributions (1.9 million) the overage was due to connection fees (1.5 million). Compared to FY 215 capital revenues increased 2.2 million (32.2%) due to connection fees. A strong development environment is driving the increase in connection fees. Operating Expenditures Personnel costs for the Sewer Fund were 996k (5.9%) under budget and 1.5 million (1.2%) more than FY 215. The primary reason for budgetary savings within personnel was due to capitalized salaries which reduced salary expense for the fiscal year. FY 216 M&O expenses were 4.4 million (23.2%) less than budget and 2.1 million (16.6%) more than FY 215. The majority of the budgetary savings occurred within professional services (2.4 million), supplies (943k), minor repairs and maintenance (746k), and utilities costs (349K). All of the professional services savings will be rebudgeted in FY 217 for the continuation of facility planning and regulatory compliance. This category does not include depreciation expense as it is not an operating expense. 34 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

38 ENTERPRISE FUNDS Capital Expenditures Of the total 42.7 million budgeted for capital projects (includes Major Equipment line above), 25. million was spent during FY 216. Many of the projects are multiyear projects and nearly all of the remaining appropriation will be rebudgeted for projects in progress. Cash and Investments As of September 3, 216, cash and investments in the Sewer Fund amounted to 28.2 million, a decrease of 5.9 million compared to FY 215 yearend. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

39 ENTERPRISE FUNDS Solid Waste Fund The Solid Waste Fund is an enterprise fund that supports the management and operation of the City s trash and recycling services. The City currently contracts with Republic Services to meet the City s solid waste disposal needs. The City charges users a fee based on the type of business or residential occupancy. Solid Waste also manages the household hazardous waste collection program and provides outreach services through environmental education programs. 216 Year End Solid Waste Fund 215 Audited Revenues User Fee Revenue Other Revenue Total Resources 25,382,535 1,584,543 26,967,78 37,6 3,539,951 43,958 3,954,59 Net Change Retained Earnings Inc/(Dec) * Expenditures Personnel Services Maintenance & Operations Major Equipment Depreciation Capital Accounts Total Expenditures 216 UnAudited 216 Budget 26,816,2 1,725,398 28,541,4 41,138 27,171,27 11,41 46,33 27,629,787 (3,987,431) (3,943,473) 26,865,42 1,674,52 28,539,472 Variance Over/(Under) % of Budget Collected/ Expended (49,418) 51,346 1,928 1% 13% 1% 81% 98% 99% 15% % 98% 497,499 27,662,41 11,55 43,958 4,591 28,219,999 (96,361) (491,194) (14) 2,75 (4,591) (59,212) 911, , , , , ,214 * Retained Earnings Inc/(Dec) excludes noncash items such as Depreciation. Expenditures include capitalization amounts for equipment and capital. Revenues Solid Waste Fund total revenues were 2k more than budgeted. Within total revenue, user fees were 49k short of budget while other revenue had a budgetary surplus of 51k due to strong fuel rebate revenue. Compared to FY 215, total revenue increased 1.6 million (5.8%) due to growth in user fees, including new customers, and a 2% rate increase that took place effective 1/1/215. Operating Expenditures FY 216 operating expenses totaled 27.6 million, 588k (2.1%) under budget. The budgetary savings were primarily due to the timing of professional services, minor repairs and maintenance, and bad debt expense. Compared to FY 215, operating expenses fell 3.3 million (1.8%) due to a onetime FY 215 expenditure for professional services (3.9 million) related to the environmental cleanup project at Esther Simplot Park. This category does not include depreciation expense as it is not an operating expense. Capital Expenditures There were no capital expenditures in FY 215. The capital appropriation related to Percent for Art appropriation has been placed on the rebudget list for future expenses. 36 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

40 ENTERPRISE FUNDS Cash and Investments As of September 3, 216, investments totaled 57k, 646k (56.%) less than this time last year. The decrease in cash and investments is the net result of expenses related to the environmental cleanup needs. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

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42 OTHER FUNDS Other Funds Housing and Community Development Funds The Housing and Community Development Funds support the receipt and disbursement of federal funds in support of affordable housing and community development. Most funding originates from the Department of Housing and Urban Development (HUD) and the City is accountable to HUD for related expenditures. 216 Year End Housing & Community Development Funds 215 Audited Revenues Housing Program Income Grant Revenue Other Revenue Total Resources Expenditures Personnel Services Maintenance & Operations Major Equipment Depreciation Capital Projects Total Expenditures 216 UnAudited 429,94 1,318, ,846 2,54, ,278 1,28,45 15, ,698 1,56,552 3,495, Budget 288,31 1,519, ,751 2,52,3 556,513 1,97,53 22,641 45, ,616 3,963,747 Variance Over/(Under) 35,849 2,558, 78,16 3,374,9 698,232 2,765, ,643 3,928,734 % of Budget Collected/ Expended 252,182 (1,38,752) (67,49) (853,979) 83% 59% 91% 75% (141,719) (795,86) 22,641 (13,719) 963,616 35,13 8% 71% % 97% % 11% Net Change (954,596) (1,443,718) (554,725) (888,993) Retained Earnings Inc/(Dec) * (527,898) (992,794) (9,82) (92,712) * Retained Earnings Inc/(Dec) excludes noncash items such as Depreciation. Expenditures include capitalization amounts for equipment and capital. Revenues Housing revenues were under budget by 854k (25.3%) and were 21k (.8%) below FY 215 revenues. The budgeted revenue shortfall was attributable to timing of federal and nonfederal grant revenue and program income. Grant and entitlement funding fluctuate depending on actual expenditures and the timing of when expenses are incurred. Several of the programs supported by grant funds are multiyear programs and the budget for entitlement funds represents the full amount, of which portions were not designated by yearend. Interest income was 377k (82.%) below the budgeted amount but only 43k (9.%) below last year. This is primarily driven by a steep reduction in deferred interest as the City has deliberately worked to improve the ongoing performance of its housing loan portfolio. Operating Expenditures Operating expenditures totaled about 2.5 million and were under budget by 938k (27.1%) at yearend. Of the 2.5 million, 142K is attributable to personnel savings and capitalized salaries. M&O expenses were under budget 796k (28.8%) and were attributable to unused appropriation for various federal programs. The remaining operating expenditure budgetary savings occurred due to the timing of expenses associated with operational grant expense. This line fluctuates depending on the timing of federal and nonfederal project expenditures. This category does not include depreciation expense as it is not an operating expense. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

43 OTHER FUNDS The balance of outstanding housing loans (mortgage loans receivable) was nearly 8.8 million, a 1.5 million decrease from FY 215. The decrease is attributable to a number of loans being paid off, loans that were written off, and fewer new loans. Capital Expenditures Capital expenditures amounted to 964k largely from the continuation of the Rental Property Development Program (RPDP). These investments were primarily funded by loan portfolio program income and do not adversely impact the financial net position. These assets reside on the Housing balance sheet. Cash and Investments As of September 3, 216, cash and investments totaled approximately 3.4 million, 638k larger than a year ago. Nearly all of the investment balance is restricted in use to fund the City s housing programs. 4 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

44 OTHER FUNDS Property Management Fund The Property Management Fund is responsible for the daytoday operations of the City s affordable housing portfolio. The rental housing inventory was acquired through US Department of Housing Entitlement Funding. 216 Year End Property Management Funds 215 Audited Revenues Program Income Other Revenue Total Resources Expenditures Personnel Services Maintenance & Operations Major Equipment Depreciation Capital Projects Total Expenditures 216 UnAudited 1,328,525 22,162 1,548, , ,682 (75) 1,482, Budget 1,392,73 281,717 1,674, ,356 1,64,89 1,69,445 Variance Over/(Under) 1,344,493 19,483 1,453, ,862 1,79,835 1,623,697 % of Budget Collected/ Expended 48,21 172,234 22,445 14% 257% 115% 1,494 (15,746) (14,252) 1% 99% % % % 99% Net Change 66,622 64,975 (169,721) 234,696 Retained Earnings Inc/(Dec) * 66,547 64,975 (169,721) 234,696 * Retained Earnings Inc/(Dec) excludes noncash items such as Depreciation. Expenditures include capitalization amounts for equipment and capital. Revenues Property Management revenues exceeded budget by 22k (15.2%) and were 126k (8.1%) greater than the previous year s actual revenues. The budgeted revenue surplus was attributable to a transfer from other housing funds. Rental income was 52k (3.9%) above the budgeted amount. This was an increase of 68k (5.1%) compared to FY 215 yearend. Rental income increased due to the addition of rental properties throughout the year. Operating Expenditures Operating expenditures totaled 1.6 million and were essentially on budget at yearend. Several M&O accounts totaled approximately 15k in savings. Capital Expenditures There were no capital projects in FY 216. Cash and Investments As of September 3, 216, cash and investments totaled 61k, 72k more than this time last year. The investment balance is restricted in use to fund the City s Property Management programs. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

45 OTHER FUNDS Fleet Services Fund The Fleet Services Fund is an internal service fund that accounts for all fleet operating costs, including, repair facilities and staff for the maintenance of the City s automotive vehicles and equipment. The City uses the Fleet Services Fund unassigned balance to meet operating shortfalls and capital needs of the fleet maintenance program. 216 Year End Fleet Fund 215 Audited Revenues User Fee Revenue Other Revenue Total Resources Expenditures Personnel Services Maintenance & Operations Major Equipment Depreciation Capital Accounts Total Expenditures 216 UnAudited 3,25,97 3,24 3,28,994 1,44,89 2,97,2 67,113 8,25 3,217, Budget 2,975, ,961 3,45,682 1,118,896 1,847,532 31,557 6,23 3,58,188 Variance Over/(Under) 3,47, ,254 3,588,446 1,15, 2,144, ,548 81,3 3,512,62 % of Budget Collected/ Expended (494,471) 311,77 (182,764) 86% 364% 95% (31,14) (296,682) (14,991) (21,97) (453,874) 97% 86% 23% 74% % 87% Net Change (8,458) 347,494 76, ,111 Retained Earnings Inc/(Dec) * 58,654 47, ,684 25,13 * Retained Earnings Inc/(Dec) excludes noncash items such as Depreciation. Expenditures include capitalization amounts for equipment and capital. Revenues Fleet Services Fund total revenues were 183k (14.2%) less than budgeted. Fleet Fund revenues are on utilization and the type of work performed. Operating Expenditures FY 216 operating expenses totaled 3. million, 328k (1.%) under budget. The budgetary savings within operating expenses was due to contract services (46k), internal charges (41k), and the net effect of various accounts. This category does not include depreciation expense as it is not an operating expense. Capital Expenditures Capital expenditures consist of the major equipment line above. At yearend the major equipment line had a savings of 15k, however nearly all of the unspent appropriation was rebudgeted at yearend to finish planned purchases. Cash and Investments As of September 3, 216, cash and investments in the Fleet Service Fund amounted to 99k, an increase of 355k (64.%) compared to FY 215 yearend. Fund balance is used to maintain and replace the fleet inventory. 42 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

46 OTHER FUNDS Risk Management and Workers Compensation Funds The City accounts for the operation of its comprehensive liability and insurance programs, and employee training programs through the Risk Management Fund. Selfinsured liability and property losses and risk mitigation activities are paid through the Risk Management Fund. Costs are billed directly to City departments based on exposure, actual losses, and services provided. Unassigned fund balance is used to fund operating shortfalls due to unexpected losses and increased liability requirements, if necessary. The Workers Compensation Fund was initiated in FY 1999, whereby the City funds a claim liability account and selfinsured losses are paid through the Workers Compensation Fund. The workers compensation program and employee occupational safety and industrial hygiene program are funded through the Workers Compensation Fund. Costs are billed directly to City departments based on exposure, actual losses and services provided. Unassigned fund balance is used to fund operating shortfalls due to unexpected losses and increased liability requirements, if necessary. 216 Year End Risk Management & Workers' Compensation Funds 215 Audited Revenues Premiums Other Revenue Total Resources Expenditures Insurance Maintenance & Operations Total Expenditures Retained Earnings Inc/(Dec) * 216 UnAudited 4,315,44 955,497 5,27,937 2,448,73 1,54,722 3,989,452 1,281, Budget 3,387,154 91,357 3,478,511 2,26,22 1,44,141 3,7,361 48,15 3,387,152 63,567 3,45,719 2,571,336 1,349,385 3,92,72 (47,1) Variance Over/(Under) % of Budget Collected/ Expended 2 27,789 27,791 1% 144% 11% (545,116) (35,244) (85,36) 79% 77% 78% 878,151 * Retained Earnings Inc/(Dec) excludes noncash items such as Depreciation. Expenditures include capitalization amounts for equipment and capital. Risk Management Funds include the Workers Compensation Fund and the Risk and Safety Services Fund. Revenues support actuarially determined liability accounts and retained earnings at a targeted 9% confidence level. Under state law, a person has up to 18 days to file a claim from the date of the incident. The statute of limitations is two (2) years from the date of incident to file a suit. Workers Compensation law sets forth several filing milestones relating to different stages of a potential claim. Revenues The funds continue to experience claim payouts below the actuarially estimated amount. Operating revenues totaled approximately 3.5 million by the end of FY 216. This was 28k over the budgeted amount, due mainly to higher interest income. Expenditures Expenditures for FY 216 were under budget by 85k (21.7%) primarily due to an accounting transaction related to a reduction in the liability accounts based on an actuarial study (78k). The entry is booked as CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

47 OTHER FUNDS a negative expense per accounting best practices. The remainder of the budgetary savings occurred across various accounts. Compared to FY 215, expenditures decreased 919k (23.%). This decrease is due to the transaction mentioned above. The change to the liability was recognized as a revenue in prior years, however after further research by accounting, best practice is to show the change in the liability as an expenditure on the income statement. Other factors contributing to the decrease is the net effect of reduced insurance costs due to positive claims experience coupled with standard annual increases within the fund. Risk Reserves The City maintains liability accounts for outstanding claims and lawsuits from prior years. The liability accounts were funded at the 5% confidence level during the relevant fiscal year. This funding, combined with the undesignated retained earnings balance, equate to the overall confidence level. The City s goal is to maintain the Risk Management and Workers Compensation Funds above the 9% confidence level. Pending the end of year actuarial review, the Risk Management division believes that the levels are in line with the 9% goal. Cash and investments amounted to nearly 9.5 million, a decrease from 9.6 million in FY 215 driven by changes in assets and liabilities. Risk Management s funding and premium allocation plan was reviewed and revised by an external consultant to ensure that the City maintains an adequate funding formula for claim losses incurred through liability and workers compensation. The revised plan was used for the development of the FY 217 budget. Boise Municipal Health Care Trust Fund The City s established Health Insurance Trust Fund operates on plan years that conform to the calendar year. Trustees from the Health Trust will present their annual report to the City Council upon the close and audit of the Trust. 44 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

48 APPENDIX Appendix A: Budget Workshop Initiatives CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

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50 APPENDIX City of Boise FY 217 Budget Workshop Initiatives Preliminary Revised Maintain 5% Cash Flow Reserve1 Valley Regional Transit Contribution2 General Employee Onetime Increase Total FY 216 EOY Uses 1 Item accomplished as part of End of Year process 2 Item addressed as part of rebudget requests 285, 285, 285, CITY OF BOISE END OF YEAR REPORT FISCAL YEAR , 47

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52 APPENDIX Appendix B: End of Year Appropriation Resolution and Exhibit CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

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54 APPENDIX RESOLUTION BY THE COUNCIL: CLEGG, JORDAN, LUDWIG, MCLEAN, QUINTANA, THOMSON A RESOLUTION APPROVING THE TRANSFER OF FY 216 APPROPRIATIONS FROM THE BOISE CITY TRUST FUND TO IDENTIFIED OTHER FUNDS TO PROVIDE BUDGET AUTHORITY FOR CONTINGENT UNAPPROPRIATED GRANT AWARDS, ADDITIONAL SERVICES, AND OTHER APPROVED EXPENSES AND REVENUES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the FY 216 City budget was adopted with project fiscal year expenditures and revenues for each City fund, and WHEREAS, contingent accounts within the FY 216 City Budget that are established to provide for encumbrances, rebudgets and contingent unappropriated costs and revenues were consolidated within the Boise City Trust Fund, and WHEREAS, to enhance visibility and tracking of the use of contingent accounts, transfers of contingent appropriations will be authorized by City Council resolution, with supporting documentation attached, and WHEREAS, appropriation for unanticipated grant awards, additional services, and other approved expenses and revenues have been requested by departments and agencies, and WHEREAS, the Boise City Trust Fund has a total of 6,653,225 in contingent appropriations for unanticipated costs and 92,889,232 in contingent appropriations for unanticipated revenues. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF BOISE, IDAHO: Section 1. The Department of Finance and Administration is authorized to transfer 4,39,525 in expenditure appropriations and 4, revenue appropriations to or from the Boise City Trust Fund to or from the funds identified in the amounts listed on the attached Exhibit A, FY 216 Contingent Unappropriated Expenses and Revenues, September 216. Section 2. This Resolution shall be in full force and effect immediately upon its adoption and approval. APPROVED by the Mayor of the City of Boise, Idaho, this 2th day of December 216. ADOPTED by the Council of the City of Boise, Idaho, this 2th day of December 216. APPROVED: ATTEST: MAYOR EXOFFICIO CITY CLERK CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

55 APPENDIX City of Boise FY 216 Contingent Unappropriated Expenses and Revenues September 3, 216 Exhibit "A" QR4 Fund Description Approved by Mayor & Council Expenditures Revenues Net Capital Fund (42) LB Bow n Crossing 9/13/216 PK Camel's Back Chute 9/13/216 PK Molenaar Park 9/13/216 PK Closeout of the Perpetual Care Fund 9/2/216 Subtotal Capital Fund 25, 7, 15, 11, 4, 4, 25, 7, 15, 3,59,525 3,7,525 (3,59,525) (3,59,525) Sewer Fund (526) West Boise Wastew ater Treatment Phosphorus Removal 7/26/216 Subtotal Sewer Fund 4, 4, 22, 22, (2,) (22,) (42,) 2, 2, 3,59,525 3,59,525 3,99,525 Community Development Block Grant Fund (54) Revenue transfer to 541 na Subtotal Community Development Block Grant Fund (22,) (22,) 22, 22, 4, 4, Special Activities and Programs Fund (541) (2,) (2,) 4, 2, 6, Subtotal Fleet Services Fund 3,59,525 3,59,525 TOTAL ALL FUNDS 4,39,525 Operations transfer to 542 na Revenue transfer from 54 Subtotal Special Activities and Programs Fund HOME Fund (542) Autumn Gold Senior Services 7/12/216 Operations transfer from 541 na Subtotal HOME Fund Perpetual Care Fund (776) Closeout fund and transfer balance to Capital Fund 52 9/2/216 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216 4,

56 APPENDIX Appendix C: FY 216 Rebudget and Encumbrance Resolution and Exhibit CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

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58 APPENDIX RESOLUTION BY THE COUNCIL: CLEGG, JORDAN, LUDWIG, MCLEAN, QUINTANA, THOMSON A RESOLUTION APPROVING THE TRANSFER OF FY 216 APPROPRIATIONS FROM THE BOISE CITY TRUST FUND TO IDENTIFIED OTHER FUNDS TO PROVIDE BUDGET AUTHORITY FOR APPROVED CARRY FORWARD BUDGETS FROM FY 216 INTO FY 217 (REBUDGETED AND ENCUMBERED ITEMS); AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the FY 217 City budget was adopted with project fiscal year expenditures and revenues for each City fund, and WHEREAS, contingent accounts within the FY 217 City Budget that are established to provide for encumbrances, rebudgets and unanticipated costs and revenues were consolidated within the Boise City Trust Fund, and WHEREAS, to enhance visibility and tracking of the use of contingent accounts, transfers of contingent appropriations will be authorized by City Council resolution, with supporting documentation attached, and WHEREAS, rebudgeted and encumbered accounts and projects from FY 216 have been requested by departments and agencies to carry forward unspent expenditure and uncollected revenue budgets for projects that are not complete at year end FY 216, and WHEREAS, the Boise City Trust Fund has a total of 175,, in contingent appropriations for encumbrances, rebudgets and unanticipated costs revenues. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF BOISE, IDAHO: Section 1. The Department of Finance and Administration is authorized to transfer 87,75,419 in expenditure appropriations and 19,299,488 in revenue appropriations from the Boise City Trust Fund to the funds identified and in the amounts listed on the attached Exhibit A, FY 216 Final Rebudgets and Encumbrances. Section 2. This Resolution shall be in full force and effect immediately upon its adoption and approval. APPROVED by the Mayor of the City of Boise, Idaho, this 2th day of December 216. ADOPTED by the Council of the City of Boise, Idaho, this 2th day of December 216. APPROVED: ATTEST: MAYOR EXOFFICIO CITY CLERK CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

59 APPENDIX City of Boise Contingent Account Transfers for FY 216 Rebudgets and Encumbrances into FY 217 9/3/216 QR4 Exhibit "A" Fund Description Approved by Mayor & Council Expenditures Revenues Net General Fund (11) 2,784, ,742 3,233,88 13,599,137 13,599,137 19,894,897 1,889,993 3,784,89 635, ,783 3,582,993 3,582,993 14,11,444 14,11,444 2,337,685 2,337,685 1,218,594 1,218,594 99,258 99,258 Subtotal Fleet Services Fund 13,547 13,547 TOTAL ALL FUNDS 87,75,419 Final Rebudgets Final Encumbrances Subtotal General Fund 246, ,473 2,537, ,742 2,986,615 Debt Service Fund (315) Final Rebudgets Subtotal Debt Service Fund 13,599,137 12,729,582 12,729,582 7,165,315 1,889,993 18,55,38 Capital Fund (42) Final Rebudgets Final Encumbrances Subtotal Capital Fund Foothills Fund (43) Final Rebudgets Subtotal Foothills Fund 635, ,783 3,582,993 3,582,993 8,426,78 8,426,78 Impact Fees Fund (45) Final Rebudgets Subtotal Impact Fees Fund Airport Fund (525) Final Rebudgets Subtotal Airport Fund 5,683,664 5,683,664 Sewer Fund (526) Final Rebudgets Subtotal Sewer Fund 2,337,685 2,337,685 Geothermal Fund (528) Final Rebudgets Subtotal Geothermal Fund 639, , , ,825 99,258 99,258 13,547 13,547 Solid Waste Fund (531) Final Rebudgets Subtotal Solid Waste Fund Fleet Services Fund (645) Final Rebudgets 56 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR ,299,488 68,45,931

60 APPENDIX Appendix D: Authorized Staffing Levels CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

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62 APPENDIX City of Boise Authorized Staffing Levels FY 216 FY 216 Adopted FTE Approved Total FTE Changes Department Airport Airport Fund Arts & History General Fund City Council General Fund Office of Community Engagement (CE) General Fund Finance & Administration (DFA) General Fund Fleet Services Fund Fire General Fund General Employees General Fund Contract Employees Human Resources (HR) General Fund Risk Management Fund 4.95 Workers' Compensation Fund 3.25 Information Technology (IT) General Fund FY 216 Final FTE Total 56. Comments NEW Cultural Assets/Conservation Prog Asst 1. NEW Department Coordinator NEW Graphic Designer Communication Optimization transfer from HR Communication Optimization transfer from IT Communication Optimization transfer from Mayor Communication Optimization transfer from Parks 1. Communication Optimization transfer from PDS NEW Finance Optimization increase Collections Division transfer to PW (Sewer) Finance Optimization transfer from IT Finance Optimization transfer from Library Finance Optimization transfer from Parks Finance Optimization transfer from PDS (Housing) Finance Optimization transfer from PW (General) Finance Optimization transfer from PW (Sewer) Finance Optimization transfer to IT Finance Optimization transfer from PFFA Finance Optimization transfer from PFFA NEW NACFR service level agrremeent NEW Employee Culture Coordinator Finance Optimization transfer from PFFA Communication Optimization transfer to CE 5.7 NEW Training & Development 3.5 NEW Training & Development Finance Optimization transfer from DFA Finance Optimization transfer to DFA Communication Optimization transfer to CE CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

63 APPENDIX Legal General Fund 5.35 Library General Fund Mayor's Office General Fund 13.4 Parks & Recreation General Fund Planning & Development Services (PDS) General Fund Housing Funds Police & Fire Finance and Admin (PFFA) General Fund Police General Fund General Employees (incl Command) * General Fund Contract Employees Public Works (PW) General Fund NEW Garden City Contract NEW Events Specialist Finance Optimization transfer to DFA NEW Strategic Innovation Communication Optimization transfer to CE NEW Zoo Asst Superintendent NEW Horticulture Maint Tech NEW Open Space Restoration Specialist Finance Optimization transfer to DFA Communication Optimization transfer to CE NEW WF Stabilization for service levels Communication Optimization transfer to CE Finance Optimization transfer to DFA Finance Optimization transfer to DFA Finance Optimization transfer to Fire Finance Optimization transfer to HR Finance Optimization transfer to Police Finance Optimization transfer from PFFA Solid Waste Fund Total All Funds ** Summary Totals by Fund General Fund Aiport Fund Fleet Services Fund Risk Management Fund Workers' Compensation Fund Housing Funds Geothermal Fund Sewer Fund Solid Waste Fund Total All Funds Geothermal Fund Sewer Fund Finance Optimization transfer to DFA Collections Division transfer from DFA Finance Optimization transfer to DFA 5. ** Beginning FY 216 count corrected 6 CITY OF BOISE END OF YEAR REPORT FISCAL YEAR 216

64 APPENDIX Appendix E: YearEnd Contingency Accounts CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

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66 APPENDIX Citywide Contingency Status Report FY 216 YTD Account Date Approved Item Description Amount Approved Actual Balance Workforce Planning Contingency: Used to address unanticipated workforce needs that occur outside of the budget process, such as, but not limited to, staffing and classification changes, pay adjustments, and WBT recommendations with EMT and City Council approval that result in a budgetary personnel overage for the department. 1/1/15 FY 216 Adopted Budget 4, 9/15/15 PK Zoo Assistant Superintendent 3/15/16 CE Building the Team 8/26/16 AH Temp Wages 6, 7, 8, 394, 387, 379, Balance 379, Health Contingency: Used to address health plan selections that may change due to a qualifying event that result in a budgetary personnel overage for a department. 1/1/15 FY 216 Adopted Budget 4, na AH EOY na IT EOY na PW EOY 2,297 7,294 35,34 Balance 397,73 39,49 355,15 355,15 2, 2, 5, Citywide Contingency: Used for unforeseen citywide expenditures towards initiatives and/or contributions. 1/1/15 FY 216 Adopted Budget Balance Strategic Plan Contingency: Used for City Council initiated strategic expenditures. 1/1/15 FY 216 Adopted Budget 6/2/15 PK SNAP Program 2, 48, Balance 48, Operating Contingency: Used to address operating issues as they arise throughout the fiscal year, including the operating impact of capital projects, and other planned commitments such as the effort to increase the cash flow reserve. 1/1/15 FY 216 Adopted Budget 2,371,123 1/1/16 Cash Flow Reserve distribution at FY16 EOY 1/1/16 Parking Strategy distributed as needed 1,5, 387, , , , 358,849 5, 4, 2, 2, 11, 38, , , , , ,3 = 275,974 remaining 3, = 245,974 remaining 1/1/16 Capital Projects Operating Impact distributed as needed Spaulding Park 8,937 = 116,63 remaining 12/28/15 Community Engagement Operating Budget 1/21/16 IT Permit Management System 2/23/16 Community Engagement Operating Budget 8/1/16 IT OnBase Mobile Modules 8/22/16 PW Facilities Project Management Balance 118,849 Notes: The Workforce Planning, Citywide, and Operating Contingencies have been combined in FY 217 going forward. The Strategic Plan Contingency was replenished to 5k during the FY 217 Budget Workshop. Unused contingencies at yearend contribute to the total available resources referenced in this report. CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

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68 APPENDIX Appendix F: Quarterly Economic Brief CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

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70 C I T Y O F B O I S E D E P A R T M E N T O F F I N A N C E A N D A D M I N I S T R A T I O N Office of Budget Development & Monitoring Economic Brief Mike Sherack, Senior Budget Analyst & Brent Davis, Budget Manager Volume 9 Quarter 3 (CY) 216 (July 1 September 3) Quarterly Summary Employment Construction Housing The labor force in Boise continues to grow and the unemployment rate remains low at 3.2%. Construction activity continues at a solid pace but Q3 permit volume and revenue fell from Q Inventory is 15% above this time last calendar year, but is still low and housing demand is high. The housing market remains a seller s market. Sales Tax Airport Traffic Projections State sales tax receipts increased by 3 Million, or 7.5%, over last year. Sales tax revenue growth is expected to remain strong. Total air passenger traffic continues to post solid yearoveryear (YOY) gains. The GDP outlook is good following what is turning out to be a subpar 216. Consumer sentiment is in a good range. Interest rates are rising and are projected to increase further in Idaho housing start growth is projected to slow from a very strong 216. Inside this issue: Quarterly Summary 67 NOTE: Signs indicate a general economic outlook compared to the previous quarter and/or year. Employment Data 67 Construction Activity 71 Employment Housing Trends 74 State Sales Tax 74 Airport Traffic 75 Projections 76 CY = Calendar Year Q = Quarter YOY = YearOverYear MSA = Metropolitan Statistical Area 1 basis points = 1% Total Boise employment as of September 216 is up 1,781 jobs, or 1.6%, compared to last September. Comparing the end of Q2 (June) to the end of Q3 (September) total employment fell by 1,656 jobs, or 1.4%, due to seasonality. When compared with September 215, Boise s unemployment rate is down 4 basis points, from 3.6% to 3.2%. When compared to the prior quarter end (June), the unemployment rate is unchanged at 3.2%. Relative to comparable cities in the western United States, Boise continues to post low unemployment numbers, though not as low as Salt Lake City or Colorado cities, which are below 3.%. Boise s unemployment rate for September was 1 basis points below Ada County, 3 basis points below the Boise MSA, 2 basis points below Idaho, and 16 basis points below the United States. NOTE: This quarterly brief is based on the calendar year, not fiscal year, unless otherwise stated. 67

71 Quarter 3, 216 Employment (continued) Boise City (Unadjusted) Unemployment Rate 215 September % 4.% 3.5% 3.% 2.5% 2.% Jan '15 Jul '15 Feb Mar Apr May Jun '15 '15 '15 '15 '15 Aug Sep Oct Nov Dec Jan '15 '15 '15 '15 '15 '16 Jul '16 Feb Mar Apr May Jun '16 '16 '16 '16 '16 Aug Sep '16 '16 Comparable CY Q3 Unemployment Rates 5.5% 5.1% 5.% 5.% 4.8% 4.5% 4.% 3.7% 3.5% 3.8% 3.6% 3.4% 3.3% 3.3% 3.7% 3.5% 3.5% 3.2% 3.3% 3.4% 3.% 2.5% July '16 Boise City 68 Aug '16 Ada County Boise MSA Sept '16 Idaho United States

72 Quarter 3, 216 Employment (continued) Total Boise City Employment Monthly 125, 12, 115, 115, , , , , , ,35 116, ,21 11, 15, 1, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan '13 Dec '13 Jan '14 Dec '14 Jan '15 Dec '15 Jan '16 Sep '16 September Unemployment Rate Comparative Western Cities 8% 6% 4.5% 5.4% 5.1% 5.9% 6.% 4% 2.9% 2.5% 3.5% 2.8% 2% % Denver Fort Collins Boise Reno Eugene Salem Salt Lake City Spokane Tacoma Source: Idaho Department of Labor, data through September (not seasonally adjusted); US Bureau of Labor Statistics, data through September (not seasonally adjusted) 69

73 Quarter 3, 216 Employment (continued) Boise MSA NonFarm Employment Sector Information The Boise Metropolitan Statistical Area (MSA) has 54 different employment sectors that respond differently to economic conditions. The following table highlights the four best and four worst performing industries for Q3 compared to both Q2 and Q Compared to Q3 215, Specialty Trade Contractors again had the largest percentage increase of jobs, at 28.5%. Computer and Peripheral Equipment Manufacturing had the largest decrease, 17.2%. Quarter over Quarter Average # Jobs % Change Year over Year Average* # Jobs % Change Gains Gains Mining, Logging, and Construction 1,5 6.9% Specialty Trade Contractors 3,6 28.5% Employment Services 5 6.5% Mining, Logging, and Construction 4,3 23.% Specialty Trade Contractors 9 6.2% Local Government Education 1,6 11.6% Construction of Buildings 2 5.2% Goods Producing 5,1 11.4% Losses Losses Government (2,) 4.3% Management of Companies & Enterprises (1) 1.6% Local Government (1,6) 6.% Business Support Services (2) 3.7% Local Government Education (1,3) 7.7% Computer & Electronic Product Mfg. (6) 5.3% State Government Educational Services (6) 1.6% Computer & Peripheral Equipment Mfg. (3) 17.2% Data through September (not seasonally adjusted) *The four sectors with the largest YOY gains and losses are shown in the graph below. Four Employment Sectors With Largest YOY Gains and Losses (Sectors Listed Above) 3% 28.5% 22% 23.% 14% 11.6% 11.4% 6% 2% 1% 1.6% 3.7% 5.3% 18% 17.2% 26% Source: Bureau of Labor Statistics (not seasonally adjusted) 7

74 Quarter 3, 216 Construction Activity Boise construction activity continues at a strong pace, but quarterly permit revenue and volume fell compared to Q Some measures, such as single family permits, number of living units, residential valuation, and trade permits, are higher than 215 based on a yeartodate comparison, but other measures, such as commercial construction permits, are below 215. Housing demand and building activity remain strong, with low interest rates, though the inventory of homes for sale has trended upward this year. Growth in housing starts is projected to slow following very high growth in 216, aided by higher projected interest rates. For commercial construction, growth may be leveling off following a period of high growth, but activity is at a high level and expected projects suggest robust activity will continue. Graphs Showing Monthly Boise Construction Figures CY 215 (9 Months) vs. CY 216 (9 Months) Single Family Permits Duplex Thru Sixplex Permits Jan Feb Mar Apr May Jun Jul Aug Sep YTD Avg. Jan Feb Mar Apr May Jun Jul Aug Sep YTD Avg Large Multiple (More Than Sixplex) Permits Total Residential Housing Permits Jan Feb Mar Apr May Jun Jul Aug Sep YTD Avg. Jan Feb Mar Apr May Jun Jul Aug Sep YTD Avg

75 Quarter 3, 216 Construction Activity (continued) Total Living Units Residential Dwellings Value ( Millions) Jan Feb Mar Apr May Jun Jul Aug Sep YTD Avg Jan Feb Mar Apr May Jun Jul Aug Sep YTD Avg Dwellings Other Permits Commercial Construction Permits Jan Feb Mar Apr May Jun Jul Aug Sep YTD Avg. Jan Feb Mar Apr May Jun Jul Aug Sep YTD Avg Commercial Construction Value ( Millions) Trade Permits 12 1,8 1 1,6 1,4 8 1,2 6 1, Jan Feb Mar Apr May Jun Jul Aug Sep YTD Avg. Jan Feb Mar Apr May Jun Jul Aug Sep YTD Avg Source: 72

76 Quarter 3, 216 Construction Activity (continued) Total Permit Revenue Quarterly 2,8, 2,493,658 2,581,224 2,615,799 2,465,768 2,4, 2,, 1,717,849 2,343,65 2,487,461 2,234,752 2,146,999 1,96,31 1,6, 1,2, 1,573,267 1,663,921 1,726,67 1,429,771 1,365,496 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Jan '13 Dec '13 Jan '14 Dec '14 Jan '15 Dec '15 Jan '16 Sept '16 Total Permit Value Quarterly 25,, 28,4, ,411, ,229,81 2,, 15,, 1,, 21,636, ,389, ,997, ,779, ,538,226 19,66, ,221,78 161,946, ,387, ,788,534 13,382, ,534,682 5,, Quarter 1 Quarter 2 Quarter 3 Quarter 4 Jan '13 Dec '13 Jan '14 Dec '14 Jan '15 Dec '15 Jan '16 Sept '16 Total Permit Volume Quarterly 5,5 5, 4,5 4, 3,5 5,695 4,988 5,578 5,671 5,286 4,869 5,21 4,9 4,879 4,515 4,573 4,429 4,42 3,911 3,693 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Jan '13 Dec '13 Jan '14 Dec '14 Jan '15 Dec '15 Jan '16 Sept '16 Source: 73

77 Quarter 3, 216 Housing Trends (latest available data) According to the latest Corelogic home price index (HPI) report in September, singlefamily home prices for Idaho increased by 7.7% over last year, above the national average of 6.3%. Total inventory for September increased by 15.1% over last year. Average foreclosures for the quarter are the same as Q3 of 215. Housing Trends N/A N/A Source: and State Sales Tax The City receives its portion of sales tax revenue from the State on a quarterly basis. A total of 11.5% of gross sales tax collections is shared with cities across Idaho, based on relative property value and proportionate population. The chart below reflects the gross sales tax collected by the State. Gross sales tax collected in the third quarter increased by 3 Million, or 7.5%, compared to last year. Compared to the prior quarter, gross sales tax increased by 44 Million, or 11.3%, which is partly due to seasonality and is consistent with historical trends. The gross sales tax collection amount remains consistently higher than previous years, and Boise s share has increased slightly in the last three years. 5 Gross State Sales Tax Collection by Quarter ( Millions) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Source: Idaho State Tax Commission 74 Jan '13 Dec '13 Jan '14 Dec '14 Jan '15 Dec '15 Jan '16 Sept '16

78 Quarter 3, 216 Airport Passenger Traffic The number of air passengers is typically a good indicator of the global and local economic environment. During the third quarter, total passenger traffic increased by 46,34 passengers, or 5.7%, compared to last year. Compared to the prior quarter, total passenger traffic increased by 4,169, or 4.9%. Total passenger traffic growth remains positive, aided by the addition of nonstop flights to DallasFort Worth in June. Total Passenger Traffic Quarterly 85, 813, ,985 75, 65, 728,27 644,972 68,8 63, ,744 87, , , , ,46 787,614 72, ,428 55, Quarter 1 Quarter 2 Quarter 3 Quarter 4 Jan '13 Dec '13 Jan '14 Dec '14 Jan '15 Dec '15 Jan '16 Sept '16 Total Passenger Traffic Monthly 315, 28, 245, 21, 267, ,37 222,223 28,48 175, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan '13 Dec '13 Jan '14 Dec '14 Jan '15 Dec '15 Jan '16 Sept '16 Source: Department of Aviation, City of Boise 75

79 Quarter 3, 216 Projections: Economic Growth, Interest Rates, and Housing Starts Recent, current, and projected key economic indicators are provided to give insight into market and business cycle trends. Data is from the Idaho Division of Financial Management, October 216 Forecast, which uses IHS Economics for national variables, except for the University of Michigan Consumer Sentiment Index information, which is from Federal Reserve Economic Research (FRED) and the University of Michigan. Real GDP (net of inflation) 2.8% 216 growth is positive, but 2.3% lower than 214 and % 1.3% U.S Idaho Univ of Michigan Consumer Sentiment Consumer sentiment is down slightly from 215, but still in a good range Interest Rates 6.% Interest rates remain low, but are projected to increase % 4.% 3.% Prime Rate Existing Home Mortgage Housing Starts (% Change) Idaho housing starts are very strong, but are projected to grow slower than for the country % 1.%.% US Idaho

80 APPENDIX Appendix G: Capital Fund Status Report CITY OF BOISE END OF YEAR REPORT FISCAL YEAR

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82 Arts & History of this art is expected to align with the opening of the library in Bown Library Public Art 6, 6, 1% Construction Winter 217 This art piece is in the final stage of fabrication. The installation March 217. Arts & History Broadway Bridge Historic Signage 59,65 37,86 63% Design Spring 217 Signage installation anticipated for spring 217. Capital Fund: FY 216 Status Report Department Project 216 Total Budget FY 216 Commitments/ Actuals % Expended/ Committed Project Phase Estimated Completion Date Comments/ Notes Arts & History now in fabrication. It is expected that the art will be installed in City Council in November 216. It is anticipated that the fabrication and installation will be complete during FY 217. installation will be complete during FY 217. The art is due to be installed when the station opens. the second quarter of FY 217 and be completed in the first quarter of FY 218. The completed project will be a neighborhood cultural center, host an artist inresidence program, a bookstore, and community meeting space. City Hall Plaza Public Art 186,91 % Construction Spring 217 The design phase for this project is complete, and the art piece is May/June 217. Arts & History Fire Station 4 Public Art 45, 45, 1% PreDesign Summer 217 The design for the art for this fire station was considered by the Arts & History Fire Station 8 Public Art 45, 45, 1% PreDesign Summer 217 The art for this fire station is currently in fabrication, and Arts & History James Castle 366,99 81,137 22% Design Fall 217 It is anticipated that construction will begin on the home site in Arts & History Linen District Fence Art 6,12 6,12 1% N/A: Recurring Project N/A: Recurring Project This recurring project includes four art panels that will be located along a fence in the Linen District. The 216 art by Sarah Davies has been commissioned, completed, and installed. In 217 April Van degrift will create a new series, which will be installed in June 217. Funding for this project comes from the annual Percent for Art allocation. Arts & History Little Free Libraries 1,5 1, 67% Complete N/A: Complete Project was completed during FY 216. Arts & History Percent for Art 17,84 % N/A: Recurring Project N/A: Recurring Project Funding in this project, which is a product of the City's Percent for Art Ordinance, is redirected to specific projects once they are identified. Remaining funding is recommended to be carried forward to FY 217. Arts & History River Sculpture Restoration 69,114 61,543 89% Complete N/A: Complete Project was completed during FY 216. Arts & History Temporary Public Art 6,45 6,45 1% Complete N/A: Complete Project was completed during FY 216. Arts & History Traffic Box Art 44,53 27,194 62% N/A: Recurring Project N/A: Recurring Project 215 Traffic Boxes have been completed (they were delayed into FY 216). A new round of traffic boxes is anticipated in FY 217. This recurring project is funded through contributions from CCDC, Neighborhood Reinvestment Grant funding, as well as the Percent for Art allocation. 79

83 8 Capital Fund: FY 216 Status Report Department Project 216 Total Budget FY 216 Commitments/ Actuals % Expended/ Committed Project Phase Estimated Completion Date Comments/ Notes Arts & History section of the Amy Cheng artwork that needs to be installed as the art was damaged in transportation and needed to be refabricated, and the installation is anticipated in December Mayors, which is complete, and the Boise History installation. It is anticipated that the Boise History installation will be Transit Center Art 124,655 17,98 86% Complete N/A: Complete The majority of this project has been completed. There is a small 216. Arts & History Wall of Mayors/Boise History 44,5 35,759 8% PreDesign Spring 217 This project is comprised of two separate elements: the Wall of completed in spring 217. Community Engagement Finance & Administration Finance & Administration egovernment/crm Solution/web 569,75 1,635 2% PreDesign Fall 219 This project consists of two separate projects: CRM and a redesign of the City's website. Both projects are currently going through the RFP process. City staff have received onsite vendor demos for the CRM project, and bids were recently opened for the website redesign project. Beginning in FY 217, these projects will be reflected separately. Parking Meters 9,564 9,18 96% Complete N/A: Complete Project was completed during FY 216. Records Management 1, % PreDesign TBD It is anticipated that a records retention study will be completed during FY 217. Upon completion of the study, staff may request funding, if warranted, for the identified capital solution. Fire the November 214 public safety bond, is nearing completion. It is anticipated that the City will open construction bids in February 217 and commence with construction in the spring. Fire Stations Dark Fiber Installation 1, 67,99 68% Complete Complete Project was completed in FY 216. Fire Fire Training Facility 1,376,961 1,18,651 81% Design Spring 218 The design of the firefighter training facility, approved as part of Fire anticipated. The project will comply with the City's green the November 214 public safety bond as being in need of upgrade/replacement. The public safety bond also included the construction of a new firefighter training facility. Site options for Fire Station #5, as well as a series of others facilities, are currently being reviewed by a multidepartmental team, with some contractual assistance. Once a final site for these facilities is determined, formal design can commence. Station #1 Remodel 13,67 97,399 94% Complete Complete Project was completed in FY 216. Fire Station #4 5,19,798 4,82,365 94% Construction Spring 217 Construction of this facility is underway and progressing as building code. Fire Station #5 47,787 4,528 9% PreDesign Spring 22 Fire Station #5 was one of four fire stations identified as part of Fire Station #8 4,241,77 3,999,113 94% Construction Spring 217 Construction is underway and progressing as anticipated. This project is expected to obtain LEED Silver certification.

84 Capital Fund: FY 216 Status Report 81 Department Project 216 Total Budget FY 216 Commitments/ Actuals % Expended/ Committed Project Phase Estimated Completion Date Comments/ Notes Fire Station #9 47,787 4,191 9% PreDesign Spring 219 As of September 3, 216 preliminary design work on this project was being initiated. It is anticipated that the design will be completed November 217, and the project will be bid for construction in January 218. Information Technology Information Technology Information Technology Information Technology Central Addition LIV District Fiber pay for the design of a fiber optic network to the Central Addition 4, % Design TBD This project is anticipated to begin in FY 217. This project will LIV District. ERP Upgrade 43, ,695 88% N/A: Recurring Project IT IS Hardware 714,67 517,761 73% N/A: Recurring Project N/A: Recurring Project N/A: Recurring Project During FY 216, the Lawson version 1 upgrade Request for Proposals (RFP) was completed. It is anticipated that the implementation of the upgrade will kick off in January 217, with an anticipated completion date of September 217. This recurring project allows for the replacement of information technology hardware, including telephones. Beginning in FY 217, funding for telephone replacements has been budgeted separately from other hardware purchases. The project ended the year with savings of approximately 2, in FY 216, of which 16, is recommended to be carried over to FY 217. Maintenance Management System includes storm water, parks facilities, Government Buildings, and 347,52 259,28 75% Implementation Fall 217 This project is on track for an October 217 completion, and Fire/Police inventory. Library System, and is in the final stages. Bown Crossing Branch 8,38,62 6,927,39 83% Construction Spring 217 Construction is in progress. Library IOLS System Upgrade 66, 218,157 36% Implementation Winter 217 This funding allows for an update of the Integrated Online Library Library funding is recommended to be rebudgeted to FY 217, and will be used for necessary studies related to the project. It is anticipated that additional funding will be required for this Main Library Redesign 47,265 % PreDesign TBD Options for the Main Library are currently under evaluation. This purpose during FY 217. Library RFID Tags and Workstations 35, 229,946 66% Implementation Winter 217 This project is for installation and implementation of an RFID (Radio Frequency Identification) system and tags for all physical library materials at all locations. Parks & Recreation 36th Street Roundabout Landscape 88,7 % Design Spring 217 The project was awarded in November 216. Parks & Recreation Boise Hills Greenup 75,66 79,662 95% Complete Fall 216 Project is now complete, pending final punch list items. Parks & Recreation Comba Park 3,516 3,516 1% Complete N/A: Complete Project was completed in FY 216. Parks & Recreation Franklin Park Greenup 389, 4,624 1% Design Fall 217 The master plan for the park has been completed, and is currently in design stage. It is anticipated that construction will begin in spring 217, with the project concluding in fall 217.

85 82 Capital Fund: FY 216 Status Report Department Project 216 Total Budget FY 216 Commitments/ Actuals % Expended/ Committed Project Phase Estimated Completion Date Comments/ Notes Parks & Recreation Garden City to Americana Greenbelt 3,573,383 3,48,472 85% Complete N/A: Complete This project was completed in summer of 216, and is currently open to the public. Parks & Recreation Julia Davis 5th Street Connection 6, % Construction Summer 217 CCDC is the managing this project and is currently working on completion in FY17. Parks & Recreation Julia Davis Partnership 896,98 7,368 8% N/A: Recurring Project N/A: Recurring Project The Idaho Community Foundation fundraising campaign is continuing. The grand plaza component of this project, however, is going out to bid, with bid openings anticipated in January 217. It is anticipated that the grand plaza should be completed summer 217. Parks & Recreation Julia Davis Property Acquisition at Myrtle 38, 2,97 1% Land Acquisition TBD 3rd Street house was demolished and the greenup of the lot has been completed. Parks & Recreation Julia Davis River Node 4,1 35,2 88% Complete Fall 216 Project was completed in FY 216. Parks & Recreation Manitou Park Amenities It will be in place by spring 217. in the spring. The restroom will be operational when the park is Foothills, and adds access to the Daniels Creek trail easement. 96, 53,216 55% Construction Spring 217 The picnic shelter for the park was ordered at the end of FY 216. Parks & Recreation Molenaar Park Restroom 221, 196,669 89% Construction Spring 217 The restroom has been installed, with final hookups anticipated open in spring 217. Parks & Recreation Open Space Acq. West of Bogus Basin 7, 669,582 96% Complete N/A: Complete This funding allowed for the purchase of 16 acres in the Boise Parks & Recreation Open Space Acquisition 779, % Land Acquisition N/A: Recurring Project Foothills Levy funds to be used for property purchases, pending availability. Parks & Recreation Rhodes Park Landscaping 1,261,21 474,8 38% Construction Summer 217 Landscape improvements to 15th and 16th street will be 217. Parks & Recreation River Recreation Park 1,44,146 1,44,146 1% Complete N/A: Complete This project is complete. Additional City funds were added to the

86 Capital Fund: FY 216 Status Report Department Project 216 Total Budget FY 216 Commitments/ Actuals % Expended/ Committed Project Phase Estimated Completion Date Comments/ Notes Parks & Recreation River Recreation Park Phase II Amenities due to a 3.5 million dollar donation from J.A. Kathryn Albertson Family Foundation. This project, which will be phased over a period of several years, will include 3 wave structures, river access improvements, bank stabilization, a viewing plaza, new greenbelt alignment, and access to Veteran's Pond from the Boise River. Construction of this multiyear project is anticipated to begin fall of 217. Design phase has begun, with construction Additionally, the alta survey was completed. the parking lot from the park, will be rebid in winter 216. The pathways within the park were completed in FY , ,59 91% Design Summer 219 The River Recreation Park Phase II amenities project is possible to begin in FY18. Parks & Recreation Spaulding Ranch Land Exchange 217,5 172,458 79% PreDesign Winter 217 Legal negotiating easement with ACHD along Cole Rd. Parks & Recreation Sterling Park Greenup 1,12, 2,981 % PreDesign Fall 217 It is anticipated that construction on this project will begin in spring 217. Parks & Recreation Terry Day Park Amenities 167,259 77,524 46% Construction Fall 217 The parking lot component of this project, including pathways to Parks & Recreation Whitewater Blvd. Roundabout Landscape 3,682 3,682 1% Complete N/A: Complete Project was completed during FY 216. Parks & Recreation Willow Lane Boat Ramp 56, 55,975 1% Complete N/A: Complete Project was completed during FY 216. Parks & Recreation Zoo Expansion Gorongosa Project 25, % Fundraising Summer 219 This project remains in the fundraising stage. The City's total investment towards this 8.9 million project will be approximately 1.8 million. Planning & Development Planning & Development Planning & Development Planning & Development ITD Partnership purposes: 1) installation of the metal leaves on the Broadway Interchange; and 2) execution of tobedetermined transportation related opportunities. Vista and various economic development/arts and history initiatives. This funding is recommended to be carried forward to 49,167 9, 18% Construction TBD Remaining funding in this project will be utilized for two LIV Initiative Energize Our Neighborhoods 7,7 % Construction TBD Funding in FY 216 was allocated towards rehabilitation efforts in FY 217. Neighborhood Reinvestment 1,238,378 45,691 33% N/A: Recurring Project N/A: Recurring Project Funds are allocated for this project on an annual basis. Permit Management System initial concept phase, and is moving forward with contractual documents/contracts to engage the vendor for Accela Permitting 2,, 4,572 % PreDesign Summer 218 The team has completed scoping of project requirements and and Licensing System. 83

87 84 Capital Fund: FY 216 Status Report Department Project 216 Total Budget FY 216 Commitments/ Actuals % Expended/ Committed Project Phase Estimated Completion Date Comments/ Notes Police others facilities, are currently being reviewed by a multidepartmental team and contractual assistance. Once a site for this facility is determined, a cost estimate and schedule can be permit was approved by Ada County. Construction is currently underway. It should be noted that funding for this project was accelerated from FYs 217 and 218 in order to maximize value. Micro District 1,786,376 PreDesign TBD Site options for the Police MicroDistrict, as well as a series of developed. Police Shooting Range 1,475, 1,11,529 75% Construction Spring 217 During FY 216 property was purchased and the conditional use Public Works recommended to be carried forward to FY 217 for legal fees associated with the ongoing agreement with Farmer's Union Boise River Hydraulic Analysis 5,481 3,822 7% Complete N/A: Complete This project is substantially complete, and remaining funding is Canal Company. Public Works City Hall First Floor Remodel 268, ,654 99% Complete N/A: Complete Project was completed during FY 216. Public Works obtain bids in January 217. services to further the City's goal of a downtown circulator. recommended to be carried forward to FY 217 for groundwater sampling and monitoring of the Wetlands. City Hall Plaza Improvements 475, ,65 1% Design Winter 217 Final design for the plaza is nearly complete and the City will Public Works City Street Light Trust 22,5 % N/A: Recurring Project N/A: Recurring Project No activity occurred in this project during FY 216 as no lights were identified. Public Works County Street Light Trust 2, % N/A: Recurring Project N/A: Recurring Project No activity occurred in this project during FY 216 as no lights were identified. Public Works Downtown Circulator Alt Analysis 11,36 % PreDesign TBD Remaining funding in this project will be used for professional Public Works Hyatt Wetlands 121,696 % Complete N/A: Complete This project is substantially complete, and remaining funding is Public Works LED Streetlights 245, 241,33 99% N/A: Recurring Project Public Works Public Safety Lighting 24, % N/A: Recurring Project N/A: Recurring Project N/A: Recurring Project The department is currently working to identify lights that will be converted in summer 217. In FY 216, 432 lights were converted. As of September 3, 216, approximately 4,9 lights remain to be converted to LED technology. No activity occurred in this recurring project during FY 216 as no lights were requested by the public.

88 David H. Bieter Elaine Clegg Lauren McLean Maryanne Jordan Scot Ludwig Mayor Council President Council Pro Tem Council Member Council Member Ben Quintana TJ Thomson Jade Riley Lynda Lowry Brent Davis Council Member Council Member Chief of Staff Chief Financial Officer Budget Manager