Proposed Budget. Fiscal Year 2019 Ogden City

Transcription

1 Proposed Budget Fiscal Year 2019 Ogden City

2 Accomplishments

3 Significant items in FY2018 ERP New insurance broker Leadership Academy Fleet enhancements Fully funded facility maintenance Police education incentive Police shift differential

4 Makers Space Thorstensen Building New Development Stone Hill old Dee School Site (21 single family homes) The Monarch Proposed Mixed-Use 2557 Grant (Flowers Foods) Mixed-Use 24th & Grant Mixed-Use 2337 Grant (Thorstensen Bldg.) Riverbend Creative District

5 ERP Updates MUNIS Payroll & HR Configuration Live July 2018 Electronic timekeeping Fall 2018 Tyler Content Manager Enterprise Configuration Live Fall 2018 Munis Utility Billing TBA Tyler Incident Manager Coming soon

6 Job Creation/Business Commitments Estimated New Positions: FTE FTE FTE ,005 FTE FTE 2018 Top 5 Job Creation Projects: Reader Link 150 Borsight 95 Honeyville 75 A2B Fulfillment 75 Northrop Grumman Business Commitments: New Construction Value - $40,065,473 New Sales Revenues - $9,600,000 Increase in City Sales Tax Revenue - $96,000

7 Community Development Infill Housing 2700 Gramercy: 3 new homes completed, one new home underway Stone Hill Homes: land development complete, 3 new homes underway and presold Purchase/Rehab/Resale 7 completed and sold 2 completed and listed for sale 14 underway Unit Reduction 9 underway HELP (Home Exterior Loan Program) 27 complete 23 underway Own In Ogden 21 Down Payment Loans Closed

8 Employee Wages & Benefits 1% Proposed Cost of Living Adjustment 4% Proposed Employee Merit Increase Public Safety Loyalty Program (dependent on certified property tax rate) Creation of Committee to evaluate and discuss benchmarking process Insurance Benefits for City Council Members

9 2019 Capital Improvement Highlights Property Acquisition/Demolition Courtyard Inn $970,000 Station 4 Seismic Retrofit and Remodel $1,418,100 Curb, Gutter, and Sidewalk Replacement $350,000 Street Construction $860,000 Facilities Improvements $400,000 City Playground Enhancements (City/RAMP) $191,800 Miles Goodyear Park Complex (City/RAMP) $162,000 Lester Park Improvements $150,000

10 FY2019 Budget Highlights

11 Budget Comparison Budget Comparison FY2018 FY2019 Council Adopted Mayor Budget $ Change % Change General Fund $ 58,563,400 $ 60,925,800 $ 2,362, % Ogden City Corp Total $ 166,245,950 $ 184,476,700 $ 18,230, % Redevelopment Agency $ 20,456,000 $ 15,909,225 $ (4,546,775) % Building Authority $ 549,125 $ 539,050 $ (10,075) -1.83% Weber Morgan Strike Force $ 458,500 $ 275,500 $ (183,000) % Total Municipal Budget $ 187,709,575 $ 201,200,475 $ 13,490, %

12 Revenue Highlights Forecasting for fiscal year : Property Tax increase of $334, expiring RDA, expected $100,000 in additional property tax revenue for this source. 2% new growth. Sales Tax increase of $1,134,450, 6.75% growth over FY18 Budget. Franchise Tax decrease of $200,000, 2.51% budget reduction. Telecommunications decrease of $100,000, 9.52% budget reduction.

13 Revenue Highlights continued Forecasting for fiscal year : Licenses and Permits decrease of $83,100, 3.22% budget reduction. Road Funds (B&C) increase of $300,000, 10.00% growth. Active Transportation (Prop 1) increase of $150,000, 12.50% growth. Union Station Revenue increase of $257,000. $150,000 room reservation $80,000 admissions $27,000 lease revenue

14 General Fund Revenue Budget FY2019 Fines and Forfeitures $2,265,725 Interest Income $150,000 Other Revenue, $415,425 Transfers $5,796,000 Charges for Services $4,581,025 Intergovernmental $5,365,000 Taxes $39,852,125 Licenses and Permits $2,500,500

15 Tax Revenue Budget FY2019 In Lieu Fees $700, % Franchise Tax $8,703, % Property Tax $12,507, % Sales Tax $17,940, %

16 Challenges Ahead

17 Inflation

18 Headwinds Threat of Inflation Construction Inflation Continued and consistent employee raises Medical insurance and retirement costs Employee safety and security Employee training budgets Computer equipment maintenance and replacement Fleet maintenance and replacement Increasing fuel prices Facilities deferred capital improvements Other equipment and tools maintenance and replacement Delayed infrastructure improvements Employee Retention

19 Utah s Tax Structure needs mending

20 Ogden City Property Tax

21 Property Taxes Stable source of revenue, due to a tax policy of revenue neutrality. Revenue neutrality is a tax policy that allows the government to only receive the same amount of revenue year after year. Allows for revenue to remain unchanged (neutral).

22 Revenue Neutrality When Ogden City property values rise property tax rates fall. The rate each year for property tax revenue neutrality is call the Certified Tax Rate.

23 What did it cost? % Change Average cost of a new home $91,600 $384, Average annual income $24,450 $57, Average new car price $10,400 $36, A gallon of gas $0.91 $ A dozen eggs $0.65 $ A pound of bacon $1.92 $ US Postage stamps $0.24 $

24 Ogden City Stats % CHANGE Ogden City population 68,394 86, Actual property taxes collected $6,128,000 $10,616, Assessed property value $1,057,250,192 $3,748,016, Public safety actual expenses $10,080,000 $29,645, Number of fire stations Number of firefighters Number of police stations Number of police officers Resident to firefighter ratio 651:1 826: Resident to police officer ratio 651:1 647:1-0.01

25 Property Taxes 0.73 % Mosquito Abate 1.90% Assess and Collect 2.61% Weber Basin Water 4.37% Central Weber Sewer 17.91% Ogden City Services 18.96% Weber County 53.52% Ogden City Schools

26 FY2019 Proposed Budget

27 Economic Outlook FY 2018 LAST YEAR Once again, 2017, as in prior years, looks likely to begin with a slow start, as we anticipate below a one percent gain on overall GDP growth. The rest of 2017 is expected to come in at 2.3 percent of average. Real final sales will be supported by steady growth in consumer spending and an improvement in business equipment spending and structures over the 2016 pace. Government spending will add modestly to overall economic growth while trade remains a drag. The Wells Fargo Securities Monthly Outlook for the U.S. in April 2017

28 Economic Outlook FY 2019 Wage growth is too low, inflation is too low, and you shouldn t have this. That s the mystery. Eventually, the wages are going to pop, inflation is going to pop, and [the Fed s] fear is we could go from 1.6 percent inflation to 3.6 percent overnight, and the Fed is more worried about very high inflation than they are about a lot of things. We go through expansions and we go through contractions. It s a valid way for our economy kind of resetting itself. Right now, we re in the third-longest expansion is the last hundred years, so we ve been expanding for a long time. The question isn t if we will, it s when we will. The question is just when is the next recession going to happen, and I think it could happen within the next few years. Robert Spendlove -senior vice president and the economic and public policy officer for Zions Bank The Utah Economic Outlook 2018 published by Utah Business in January 2018

29 Redevelopment Areas New Growth Revenue for Ogden City American Can Expired Tax Year 2017: RDA Tax Increment FY2017, $525,406 Ogden City Portion in FY2019, $100,000 Districts that Expire in Tax Year 2018: Lester Park Park Blvd Wall Avenue

30 City Council Member Benefits Addition of benefits to City Council Members Health, Dental & Life Insurance Approximate cost is $65,000 annually

31 Health Insurance FY19 a 4.00% Increase WITHOUT any plan changes FY14 a 4.17% increase FY15 a 3.70% increase FY16 a 5.00% increase FY17 a 0.00% increase FY18 a 2.18% decrease FY19 a 4.00% increase

32 Dental Insurance Dental Change to Dentist Direct Reduction in premium by up to 11% No disruption with providers

33 Retirement General Employee no rate increase Police Tier I 04% increase Tier II.03% increase Fire.54% increase, picked up by employee

34 Proposed budget available online May 2 nd after 10:00 am budget.ogdencity.com

35 Thank you City Council Members and City Council Staff

36 Thank you City Administration Department Directors Department of Management Services Comptroller Marketing Human Resources Recorder Legal Department