AGENDA Committee of the Whole Meeting 5:30 PM - Monday, October 9, th Floor, Conferencing Center, 7th Floor, City Hall 1055 S.

Transcription

1 AGENDA Committee of the Whole Meeting 5:30 PM - Monday, October 9, th Floor, Conferencing Center, 7th Floor, City Hall 1055 S. Grady Way 1. REVISION TO POLICE ASSIGNED VEHICLE POLICY a) Renton Police Take Home Car Proposal Presentation 2. MID-BIENNIAL BUDGET BRIEFING a) Mid-Biennial Budget Adjustment Overview Presentation b) AB Administrative Services Department recommends setting a public hearing on October 23, 2017 to consider the proposed 2018 Property Tax Levy (revenue sources), the proposed 2017/2018 Mid-Biennium Budget Adjustment, and proposed fee schedule adjustments; and proposed adoption of related legislation.

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3 Renton Police Take Home Car Program Proposal October 9, 2017 AGENDA ITEM #1. a)

4 Police Department Overview Purpose statement Study results Benefits of take home vehicles Finance AGENDA ITEM #1. a)

5 Purpose Provide informational presentation on proposed take home car program for commissioned Renton Police Officers. Detail the benefits of the program as it relates to service to the citizens, the City, employee job performance and retention, financial impact and source funding. AGENDA ITEM #1. a)

6 Tacoma Study Operating costs per mile were 30% lower for assigned versus pooled cars Reduction in damage/repair costs due to increased accountability Officers availability to respond to call for service was increased AGENDA ITEM #1. a)

7 Benefits Rapid response to significant incidents (2017) 18 traffic, 41 SWAT, 5 CDU, 18 Investigations, 18 HN Increased life span of vehicles Officer remain on streets longer (non-productive time) Reduced OT costs for holdover calls Increased level of Police Service and perceived safety AGENDA ITEM #1. a)

8 Benefits Reduction in Officers leaving Morale Cost of hiring, backgrounds, academy, field training 6 of last 8 indicated a take home car was the primary or significant reason for leaving WSP, State wide Sheriff depts., Tacoma, Puyallup, Lakewood, Black Diamond, Buckley, Bonney Lake AGENDA ITEM #1. a)

9 Policy Considerations* Maximum Mile Radius Emergency response procedure to and from work Vehicle security In and out of service expectations Equipment inspections (accountability) Probationary employee considerations AGENDA ITEM #1. a)

10 Finance Fiscal Services Director Jamie D. Thomas AGENDA ITEM #1. a)

11 Capital Outlay Add 58 vehicles to the existing fleet of fully equipped Tahoes (includes 3 spare pool vehicles) 11 non-equipped admin vehicles Initial capital outlay approx. $3.3 million Use a 3-year, phased-in approach ($1.1 million capital outlay per year) Potential Funding Sources: Police Seizure Fund 2017 Police Budget Savings Redistribution of Revenue Small Tools and Equipment Reserve AGENDA ITEM #1. a)

12 Operating Costs M&O costs are expected to decrease slightly, per vehicle Reduction in annual contribution into the replacement fund, per vehicle Assumes assigned vehicles will be in service 8 years vs. 5 years Net impact on annual operating costs will be an approx. $800k - $1M increase, per year, once the program is fully implemented Three year phase-in Annual increase of $265k-$335k each year, beginning in 2019 Funding will be addressed during the budget process Budget savings/additional revenue from the biennium Re-evaluate General Fund priorities Identify new potential sources of revenue AGENDA ITEM #1. a)

13 Questions AGENDA ITEM #1. a)

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15 MID-BIENNIAL BUDGET ADJUSTMENT OVERVIEW OCTOBER 9, 2017

16 MID-BIENNIUM BUDGET AMENDMENT Update General Fund revenue projections with changed conditions. Make housekeeping adjustments to incorporate prior Council actions. Proposed service changes to reflect business activity and Council priorities. Actions required to reflect the change: Set property tax levy for Adopt budget amendments. Update fee schedule. 2

17 PROPERTY TAX State law allows cities to increase base property tax levy by the lower of inflation (September IPD) or 1%. Based on the Regional Fire Authority Plan approved by council: In 2017, the City reduced the property tax levy by $1.00/$1,000 AV In 2018, the City will reduce the base property tax levy by an additional $5.5 million 3

18 PRELIMINARY 2018 PROPERTY TAX LEVY Property Tax Worksheet Amount 2017 Base Levy $ 36,573,960 Limit Factor (the lesser of 1% or CPI) 365, Property Tax Base Levy 36,939, Maximum Statutory Levy 37,342, Preliminary Allowable Tax Rate per $1000 AV $ Actual Levy $ 24,200,000 Less: Rrior Year Refunds (70,946) Less: $5.5M Reduction for RFA (5,500,000) Limit Factor (the lesser of 1% or CPI) 365,740 New Construction 402, Levy 19,397, Estimated Levy Rate $

19 SALES TAX 2017 collection is expected to be 1% above budget. Wholesale, General Retail, Services and Construction sectors have all seen small to moderate increases over 2016, however, these areas of growth are offset by decreases in Manufacturing and Auto Sales. The 2017 estimate is being revised upwards 1% to reflect actual 2017 activity ($150k). Beginning mid 2018, the City will no longer receive the Sales Tax Annexation Credit. 5

20 COMPOSITION OF SALES TAX Construction 18% Manufacturing 6% Wholesaling 6% Retail 28% Auto/Fuel Sales 18% Services 21% Miscellaneous 3% 6

21 UTILITY TAXES Utility taxes are expected to out perform the original budget by 2% in 2017 and.5% in Upward adjustments are made $275k in 2017 and 50k in Increases are in electric and natural gas utility taxes due to a colder winter compared to recent years, and phone utility tax due to stable levels of collections year to year. 7

22 BUSINESS AND OCCUPATION TAX 2016 was the first year Business and Occupation Tax was collected. $6.4M in B&O tax was collected with a corresponding $1.2M decrease in business license/head tax revenue B&O tax collections have outperformed 2016 by 18% and are projected to exceed the budget by 10%. Upward adjustment of $700k is being made to the 2017 and 2018 budget. 8

23 BUSINESS AND OCCUPATION TAX Both business license revenue and B&O taxes are shared between the general fund and capital improvement funds. No additional contributions are being made to capital funds at this time. 9

24 DEVELOPMENT FEES Development fees collected in 2017 are on track to exceed 2016 amounts by $600k (12%), which is offset by a $200k reduction in fire permit fees no longer collected by the City. Actual collection is in line with current 2017 and 2018 budgeted amounts, no adjustments are being made at this time. 10

25 REAL ESTATE EXCISE TAX (REET) 2017 collections are expected to underperform 2016 by 16% ($950k). YTD REET collection 60% above the YTD budget. An upward adjustment of $750k will be made to the 2017 budget. 11

26 REAL ESTATE EXCISE TAX (REET) REET is restricted for capital purposes and is currently used to fund General Governmental Capital. In prior years, REET was used to fund a portion of the general government debt service costs. Beginning in 2017, REET is budgeted exclusively for capital and property tax is being used to fully fund debt service. 12

27 STATE SHARED REVENUES In the budget, the state restored the liquor excise tax distribution to cities ($300k a year); added a minor distribution in marijuana retail taxes ($30k per year); and a slight increase in fuel tax distribution ($100k) YTD is consistent with the current budget, which is seeing a slight dip in Other Programs and Criminal Justice Sales Tax 13

28 SUMMARY OF GENERAL FUND ADJUSTMENT - REVENUE 2017 Adjustment 2018 Adjustment General Fund Revenue Sales Tax 150,000 Utility Tax 275,000 50,000 Business and Occupation Tax 700, ,000 Property Tax 325,000 REET 750,000 REET Transfer to CIP (750,000) Miscellaneous Grants 389,711 Miscellaneous Community Services Sponsorships 42,500 Renew/Enhance ATS Contract 1,107,072 Total Revenue Adjustment $ 1,557,211 $ 2,182,072 14

29 SUMMARY OF GENERAL FUND ADJUSTMENT - EXPENDITURES General Fund 2017 Adjustment 2018 Adjustment Expenditures Summary of Position Adjustments $ $ 271,336 Internal Service Fund Costs for New FTEs 14,250 18,640 Employee Medical Increase 1% from 5% (320,000) SCORE Contract Adjustment 270,000 Additional Costs for Renewed ATS Contract 44, ,000 Police Retro Payment ,380 Online B&O System Enhancement 45,000 80,000 Grant Funded Expense 269,410 Land Use Application Scanning Services 25, Mill RFP Services 50,000 Arts Commission Funding 50,000 Sponsorship Funded Programs 42,500 (1) New PD Toughbook 5,409 Parks, Trails & Community Facilities Plan 56, ,500 Total Expenditure Adjustment $ 1,071,849 $ 896,476 15

30 SUMMARY OF POSITION CHANGES Mid Year Budget Adjustment Position Changes Dept Division FTE Proposed Previous Funding source Status GF Impact ASD Finance 1.00 Organizational Development Mgr New $ 158,654 General Fund New Request $ 158,654 ASD City Clerk (5) upgrades/reclasses Various 10,577 General Fund New Request 10,577 CED Dev. Services 1.00 Permit Technician New 102,105 General Fund New Request 102,105 HRRM Risk Management 1.00 Risk Analyst New 133,929 Internal Service New Request HRRM Risk Management HR Analyst Risk Management Tech. 16,279 Internal Service New Request PW Airport Airport Business Coordinator Office Assisstant 23,338 User Fees Approved PW Airport 1.00 Operations and Maintenance Sup. New 127,081 User Fees Approved PW Airport 1.00 Airport Operations Specialist New 115,458 User Fees Approved PW Maint. Services 1.00 Maint. Svc. Worker 2/Utility Locator New 29, ,793 User Fees Approved PW Maint. Services 1.00 Vehicle and Equipment Mechanic Mechanic's Asst. 11,163 Internal Service Approved Previously Court Court 1.00 Court Security Officer (a04) NEW $ 26,000 $ 67,890 General Fund Adjusted $ 93,890 Total adjustments in $ 55,034 $ 868,267 $ 365,226 Total this adjustment 7.00 $ 29,034 $ 800,377 $ 271,336 16

31 GENERAL FUND BALANCE General Fund Summary Biennial Total General Fund Revenue before Adjustment $ $ 98.0 $ Mid Biennial Budget Adjustment $ 1.6 $ 2.2 $ 3.7 Adjusted GF Revenue Sources $ $ $ General Fund Expenditure and Uses $ $ 96.2 $ Mid Biennial Budget Adjustment $ 1.1 $ 0.9 $ 2.0 Adjusted GF Expenditure & Uses $ $ 97.1 $ Net Budgeted Income(Loss) $ (6.3) $ 3.1 $ (3.2) Beginning Fund Balance $ 26.6 $ 20.3 $ 26.6 Ending Fund Balance $ 20.3 $ 23.4 $

32 GENERAL FUND BALANCE Summary ($ in Million) Actual Actual Actual Projected Projected Projected Projected Projected Projected Beginning Fund Balance $ 17.5 $ 17.6 $ 20.0 $ 26.6 $ 20.3 $ 23.4 $ 22.1 $ 17.8 $ 11.0 Operating Revenue $ $ $ $ $ 99.2 $ 97.9 $ 99.4 $ $ Base Operating Expenditure (107.6) (113.2) (109.5) (95.7) (96.6) (99.6) (104.0) (107.4) (108.2) Operating Surplus (Deficit) $ 1.3 $ 2.3 $ 11.7 $ 6.2 $ 2.6 $ (1.7) $ (4.6) $ (6.9) $ (5.7) 1X Sources $ 2.8 $ 17.7 $ 4.6 $ 2.2 $ 1.0 $ 0.7 $ 0.7 $ 0.3 $ 0.2 1X Uses (4.1) (17.7) (9.7) (14.7) (0.5) (0.4) (0.3) (0.3) (0.2) Net Resources Uses $ 0.1 $ 2.4 $ 6.6 $ (6.3) $ 3.1 $ (1.4) $ (4.2) $ (6.9) $ (5.7) Ending Fund Balance $ 17.6 $ 20.0 $ 26.6 $ 20.3 $ 23.4 $ 22.1 $ 17.8 $ 11.0 $

33 NON-GENERAL FUND ADJUSTMENT - HIGHLIGHTS New Family First Fund: Create a new capital projects fund to track City contributed funds ($4 million from capital facilities fund), donations, and expenditures related specifically to Family First. Municipal Capital Fund (316): Incorporate Fawcett South property acquisition ($860k), sign shop remodel ($631k), and senior center remodel ($265k) which will be funded by (a) miscellaneous grants; (b) parks impact fees; and (c) transfer from Library fund. Align 2017 transportation projects based on TIP and increase the Lake Washington Loop Trail project ($430k), which is funded by a State grant. 19

34 TOTAL ADJUSTED APPROPRIATION All Other Funds Summary Biennial Total All Other Funds Revenue before Adjustment $ $ $ Mid Biennial Budget Adjustment $ 9.5 $ 2.4 $ 11.9 Adjusted Revenue Sources $ $ $ All Other Funds Expenditure and Uses $ $ $ Mid Biennial Budget Adjustment $ 8.1 $ 1.2 $ 9.3 Adjusted Expenditure & Uses $ $ $ Net Budgeted Income(Loss) $ (49.7) $ (9.9) $ (59.6) Beginning Fund Balance $ $ $ Ending Fund Balance $ $ $

35 MID-BIENNIUM REVIEW PROCESS October 9 (Committee of the Whole) October 23 (Regular Council Meeting) November 6 (Committee of the Whole) November 6 (Regular Council Meeting) November 13 (Regular Council Meeting) Revenue Update and Proposed Adjustment Public Hearing: 2018 Revenue and Property Tax Levy Mid biennium Budget Adjustments Council Deliberation Finalize Committee Report Committee Report Adoption Ordinances First Reading Ordinances/Resolution Final Reading/Adoption 21

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37 AB AGENDA ITEM #2. b) City Council Regular Meeting - 25 Sep 2017 SUBJECT/TITLE: 2017/2018 Mid-Biennium Budget Amendment RECOMMENDED ACTION: Refer to Committee of the Whole DEPARTMENT: Administrative Services Department STAFF CONTACT: Jamie Thomas, Fiscal Services Director EXT.: 6929 FISCAL IMPACT SUMMARY: SUMMARY OF ACTION: In compliance with RCW 35A.34, this agenda bill sets the following dates and times for all ordinances/resolutions related to the proposed 2017/2018 mid-biennium adjustment: 1. Submission of the proposed budget to the City Clerk and presented to the City Council at the October 9, 2017 Committee of the Whole. 2. Establish a public hearing for October 23, 2017, which includes a discussion of revenue sources and the proposed mid-biennium budget adjustment. The following ordinances/resolutions will be presented as part of the public hearing process: a Property Tax Levy (revenue sources) b. Proposed Mid-Biennium Budget Adjustment c. Proposed Fee Schedule Adjustments EXHIBITS: A. Mid-Biennium Budget Amendment Calendar STAFF RECOMMENDATION: Set a public hearing date of October 23, 2017 to consider the proposed 2018 Property Tax Levy (revenue sources), the proposed 2017/2018 Mid-Biennium Budget Adjustment, and proposed fee schedule adjustments; and a proposed adoption of all related ordinances/resolutions by November 13, 2017.

38 AGENDA ITEM #2. b) CITY OF RENTON PRELIMINARY MID-BIENNIUM BUDGET AMENDMENT CALENDAR Unless otherwise specified, all meetings will be held at City Hall, 1055 S. Grady Way, Renton, Washington October 9, 2017 Committee of the Whole 6:00 p.m. Council budget workshop: Proposed Mid-Biennium Adjustments (ordinance) Proposed Property Tax Levy (ordinance) Proposed Fee Schedule Adjustments (resolution) October 23, 2017 Regular Council Meeting 7:00 p.m. Public hearing as required by RCW 35A.34: Proposed 2018 Property Tax Levy (revenue sources) Proposed Mid-Biennium Budget Adjustment Proposed Fee Schedule Adjustments November 6, 2017 Committee of the Whole (if needed) 6:00 p.m. Council budget workshop: Follow up to Council questions Deliberation Finalize Committee Report November 6, 2017 Regular Council Meeting 7:00 p.m. Adopt Committee Report 1 st reading of 2017/2018 Mid-Biennium Budget Amendment ordinance 1 st reading of the 2018 Property Tax Levy ordinances November 13, 2017 Regular Council Meeting 7:00 p.m. 2 nd reading and adoption of all ordinances Adoption of the Fee Schedule Resolution