BUDGET WORKSHOP 5:30

Transcription

1 CITY OF VICTORIA CITY COUNCIL WORKSHOP MEETING November COUNCIL CHAMBERS 7951 ROSE - VICTORIA, MINNESOTA 5:30 P.M. Mayor TomO'Connor Lani Basa Jim Crowley Joe Pavelko Tom Strigel BUDGET WORKSHOP 5:30 DEPT. NO. ITEM Call to Order A ) Agenda Statement No ) Exhibits Adjournment

2 AGENDA STATEMENT NO BUSINESS OF THE CITY COUNCIL City of Victoria, Minnesota SUBJECT 2015 Levy & s and Capital Improvement Plan FOR COUNCIL WORKSHOP DATED November EXHIBITS General Fund and Recreation Center Fund Summaries; Utility Fund s and Projected Cash Flows; Long -Term Financial Plan; Capital Improvement Plan DEPARTMENT Administration and Finance SUMMARY The Finance Committee met on November 19, 2014 and recommended council review of the attached budgets, levy, and Capital Improvement Plan. General Fund and Levi The attached General Fund budget summary shows proposed revenues of 52 $89 which is 2405 less than the budget proposed in September. The decrease is due to a $3000 decrease in the levy and a $6,000 increase in projected Police Aid. Proposed expenditures and transfers are a decrease of $19,826 from the budget proposed in September, largely due to savings from health insurance premiums, opt -outs of health insurance, and savings from Public Works turnover. There is one notable increase in expenditures - $16, 350 for Unemployment Insurance Benefits (for the Interim City Manager). The proposed levy is $856, 000, compared to the preliminary pay 2015 levy of 000 $887, and the pay 2014 levy of 000. $887, The City's open enrollment period for health insurance ends on December Depending on the number of opt outs of health insurance, the levy could decrease further. Rather than decrease the levy, staff is recommending that any potential savings from opt outs be directed to an increase in the transfer to the Long -Term Street Maintenance Fund due to the amount of planned overlays beginning in Victoria Recreation Center Fund and Levi The attached Victoria Recreation Center Fund budget summary shows proposed revenues of which is $500 higher than the budget proposed in September. The increase is due to higher projections for Daily Passes. Proposed expenditures and transfers total 858, $02 which is 9,069 higher than the budget proposed in September. This is due to higher contracted services and payments for opting out of health insurance. The proposed levy is $160,000, unchanged from the Council- adopted preliminary pay 2015 levy of $160,000. Last year's levy was $ Debt Service Lew The proposed Debt Service Levy is $08 800, down $10,000 from the Council- adopted preliminary pay 2015 levy of 800. $09 The decrease is due to a $10,000 reduction in the levy for the 2013 G.O. Improvement Bonds due to a transfer of unspent construction proceeds to the debt service fund for this project.

3 Lew Comparison The table below shows the pay 2014 levy, preliminary pay 2015 levy, and proposed final pay 2015 levy: Long -Term Financial Plan The attached Long -Term Financial Plan shows the impact on taxes and tax rates through 2024 assuming: 90 new home permits annually 2.5% annual growth in the market value of existing homes 3.5% annual growth in expenditures plus the addition of public works staff every other year 2.5% annual growth in non - budding permit revenue Debt issued annually for street reconstruction and reclaim projects Taxes on the 2014 median valued home were $126. For 201 they are projected to be $150, an increase of $24. The LTFP shows an increase of about $30 annually from 2016 through 2024 for the median valued home. Utility Fund s & fnggctions The attached Utility Funds Projections through 2024 are attached. Overall utility rates are projected to increase 3.5 %, or about $20 for the average user in 201 assuming a sewer rate increase is implemented. Proposed water operating revenues are $389, 63 sufficient to cover proposed water operating expenses of 006, $13 water treatment plant expenses of $179,066, and water administration expenses of $3018. No rate increase is recommended for 2015; however, the Finance Committee recommends the City create an education program and consider a more stringent rate structure to encourage water conservation. Proposed water core revenues are $54196, based on water availability and connection fees for 90 new homes. Proposed water core expenses are $099, 498. The core expenses include the new water reservoir and reimbursements to developers for trunk main oversizing. Cash reserves would be used to pay for these expenses.

4 Overall cash flow is sufficient through 2024 assuming growth at 90 new homes per year. Planned capital outlay includes new wells in 2016 and Bonds would be issued for the 2016 well and cash reserves would be used for the 2019 well. Proposed sewer operating revenues are $82596, sufficient to cover proposed sewer operating expenses of $729,387 and sewer administration expenses of $28,328. A rate increase is recommended for 2015: the quarterly base would increase from $31.05 to $33.00 and the consumption charge per 000 gallons would increase from $2.09 to $2.30. This results in an 8% increase for the average user of 1000 gallons per quarter. Proposed sewer core revenues are $156,196, based on sewer connection fees for 90 new homes. Proposed sewer core expenses are $556,059. The core expenses include renovation of lift station 11 and reimbursements to developers for trunk main oversizing. Cash reserves would be used to pay for these expenses. The Finance Committee discussed increasing the sewer connection fee to make sure it covers planned core expenses. Staff will do a comprehensive review of fees for a new home to see if an increased sewer connection fee is reasonable. Overall cash flow increases gradually through 2024 assuming growth at 90 new homes per year, an 8% utility rate increase in 201 and 2% annual increases thereafter. Available cash at year end is below minim recommended levels until Planned capital outlay includes developer reimbursements for trunk main oversizing. Proposed storm water operating revenues are $15866 compared to proposed storm water operating expenses of $207,387. No rate increase is recommended for The City plans to purchase a mini - excavator in 2015 so more work can be done by staff. Overall cash flow through 2016 is sufficient to cover planned expenses. The Finance Committee recommends the City create a long term - plan for maintenance of the City's storm water ponds to determine if current rates and cash balance are sufficient for long term - needs. Capital Improvement Plan The attached CIP plans show projected capital improvements from 2015 to There have been a few minor changes, e.g. Toolcat will not be purchased in 2014; instead a skid steer will be purchased in 2015; Allegheny trail moved from 2014 to STAFF RECOMMENDATION: Staff would like feedback for preparation of the final levy, budgets, and Capital Improvement Plan for the December 8, 2014 council meeting. N/A Non - :

5 CITY OF VICTORIA PRELIMINARY GENERAL FUND BUDGET SUMMARY BY DEPARTMENT 2012 ACTUAL 2013 ACTUAL ADOPTED ACTUAL PROPOSED $ INC DEG) /( % INC /(DEC) REASON FOR INCREASE PRELIMINARY BUDGET THRU NOV BUDGET OVER 2014 OVER 2014 OR DECREASE IN BUDGET REVENUES BUDGET BUDGET Taxes & Franchise Fees 977, , , , , ) 0.74% Levy decrease of $20,000, Franchise Fees up 087, Licenses & Permits 269, , , % Increase new home proj from 75 to 90 + increase Intergovernmental Revenue , , , ,225 29,996) 22.02% Elimination of state fire aid 110,225 Charges for Services 377, , , % Increase new home prof from 75 to 90 + increase 419,509 Other Revenues 78, ,217 30,014 49,642 10, % Now budget for insurance dividend 49,642 TOTAL REVENUES 868, , , % in fees in fees EXPENDITURES Mayor & Council 16,456 17,481 16,911 10,402 20, % Increase Increase for for strategic strategic planning planning 17,590 Administration 428, , , , ) 2.54% Decrease due to postponement of phone system Finance 189, , , ,704 19,476) 12.47% Portion of wages /benefits now allocated to VRC 140,748 Elections Elections 28, , ) 700) 3.11% No elections in 201 but new machines may be 29,750 Professional Services , , % Community Survey $ Planning/Zoning , , % Increase for inflation Government Buildings 29,830 37,784 29, % Increase due to new City Hall /Library utilities & 89,432 TOTAL GENERAL GOV'T 009, , , % 198, 447 replacement purchased maint maint Police /Sheriff , , ,102 8, % Increase in contract price 346,555 Fire Protection 1 $ 287, , , , ,302) 14.30% Decrease due to elimination of state fire aid, no 319,841 required contribution for 2015; Wage increase in Building Inspections , , ,848 7, % Replace 2005 Jeep Liberty Civil Defense % 500 Animal Control % 600 TOTAL PUBLIC SAFETY 798, , , ) 3.62% 870, Public Works: Streets 2 $ , , , , % Hire additional Public Works Worker, Implement lead worker in 2015; additional seal coating planned, increased utility costs at new facility, added $10,000 for blvd, parking lot maint Public Works: Snow ,500 56,151 70,500 10, % Increase in salt sand / mix and snow hauling costs 7750 Public Works: Street Lights ,696 77, , % 8763

6 CITY OF VICTORIA PRELIMINARY GENERAL FUND BUDGET SUMMARY BY DEPARTMENT 2012 ACTUAL 2013 ACTUAL ADOPTED ACTUAL PROPOSED INC DEC) /( INC DEC) /( REASON FOR INCREASE PRELIMINARY BUDGET THRU NOV BUDGET OVER 2014 OVER 2014 OR DECREASE IN BUDGET Public Works: Signal Lights ,500 10,547 10, % 197 Public Works: Recycling ,277 9, % Increased compost pickups 12 TOTAL PUBLIC WORKS 990, , , % BUDGET BUDGET Recreation Activities /Programs , % 59,759 Park & Recreation , , % Park Maintenance , ,524 39, % Increase due to addition of parks and allocation of 228,929 employee benefits TOTAL PARKS & RECREATION 377, , , , % Other Transfers 3 $ , , , % Transfer to repay water fund loan 150,000 TOTAL OTHER TRANSFERS , , , % 150,000 TOTAL EXPENDITURES , , , % 987, 931 REVENUES LESS EXPENDITURES 67,348 57, ,975) 7, YEAR -END FUND BALANCE AS A % OF NEXT YEAR'S OPERATING EXPENDITURES LESS TRANSFERS 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% Includes Includes transfer transfer of of $ $6135 for for fire fire truck truck lease lease payment payment zz Includes Includes transfers transfers of of $ $110,000 in in and and to to the the Capital Capital Equipment Equipment Fund Fund and and $ $150,000 in in and and $ $230,000 in in to to the the Long Long - -TermTerm Street Street Maintenance Maintenance Fund Fund 33 Includes Includes transfers transfers of of $ $150,000 in in and and to to repay repay the the loan loan to to the the Water Water Fund Fund X: FINANCIAL \ \LONG ṮERM -TERM FINANCIAL PLAN \ \[ LTFP LRB.xlsx] PRELIM

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8 CITY OF VICTORIA UTILITY FUNDS PROJECTIONS THROUGH Actual 2014 Adopted 2014 Projection 2015 Revised Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary WATER FUND Revenues Water Operating Revenues 407, 561 $ 349, 628 $ 316, 087 $ 389, 635 $ 417, 167 $ 398, 199 $ 429, 231 $ 460, 263 $ $ $ $ $ Water Core Revenues* $ $ 279, 735 $ $ $ 517,869 $ 520,537 $ $ $ $ 516,306 $ 518,569 $ 520,954 Total Water Revenues 069, 057 $ $ $ $ 430, 729 $ 916, 068 $ 949, 768 $ $ $ 969, 488 $ 969, 665 $ $ 036, 377 Expenses Water Operating Expenses 059, 059, , 177, , , , , , Water Treatment Plant Expenses , , , , , Water Administration Expenses 29,278 30, ,387 37,232 38,100 38,996 39,917 40, Water Core Expenses , , , , , , , ,219 Total Water Expenses , , , , Increase Decrease) /( in Cash , ) 430, , ) 249, , , , Available Cash at Year -End , , , , , , , 029 Assume $500, 000 in bonds are issued for Well a5 in 2016 No rate increases planned SEWER FUND Revenues Sewer Operating Revenues ** 770, , , , , Sewer Core Revenues * ** , , , , , Total Sewer Revenues 956, , , , , , , , , , 378 Expenses Sewer Operating Expenses 557, , , , , , Sewer Administration Expenses , ,103 26,827 27,572 28,339 29,129 29,944 30, Sewer Sewer Core Core Expenses Expenses 200, 200, , , , Total Sewer Expenses 780, , , , , , , , , 349 Increase Decrease) /( in Cash 82038) ) ) , ,029 Available Cash at Year -End , , , , , ,310 Assume 8% rate increase in 2015 about $20 for avg customer) and 2%increases in 2016 and thereafter Includes $197,114 transfer in 2014 from TIF reconciliation STORM WATER FUND Total Total Storm Storm Water Water Revenues Revenues 137, , ,783 Total Total Storm Storm Water Water Expenses Expenses 57, , Increase Increase /( Decrease) /( Decrease) in in Cash Cash 79,962 19,853) ) 1897 Available Available Cash Cash at at Year Year - End - End , , No rate increases planned X: FINANCIAL \ \BUDGET \2015 BUDGET 2015 \[ Water xlsx] Summary

9 CITY OF VICTORIA - LTFP BUDGET, LEVY, AND TAX RATE PROJECTIONS SCENARIO - $2. 85M LR Bo Actual Actual Proj / Actual Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection GENERAL FUND REVENUES Collected Projected / Levy Proj Bldg Permit Revenue Proj Other Revenues , , , , , , , , A$ 308, , , B$ 516, , , , , ,527 Total Revenues , S S , 8 27, , , , , , , ,128 80, , , ,000 59,000 59,000 59,000 59, , , , , , S S a nai. 1a9 5 a daq :u; 7 t A Ira a1 a t a Abe coo t A inn moan t A oee e.e t A OAG,... e e e ' ". 11 e-.-. EXPENDITURES & TRANSFERS Proj Operating Expenditures CapitalCapital ExpendituresExpenditures C$ D$ 56,107 TotalTotal TransfersTransfers E$ , , , TotalTotal OperOper ExpExp andand TransfersTransfers , , , , , 9 87, , , DifferenceDifference betweenbetween RevRev & & ExpExp 608,038) End Year Unassigned GF Balance End Year FB as % of NY Oper Exp ,354 30, , , % , , % % % , % 60, , % 36, , % , % , , % , % , 68, % , 50, % RECREATION CENTER Collected Projected / Levy 250, , , , , , , , , , , , ,000 DEBT SERVICE Total Outstanding Debt 38, $ , Net Tax Supported Debt Net Tax Supported Debt as a % of EMV 1 Collected Projected / Levy 36, , , 30, , , , 28, , 28, , 28, , , , , % F$ Debt Levy as a % of Total Levy 38, ,400 $ % TOTALLEVY , $ 839, % % 1. 10% 849, % % NET TAX CAPACITY $ 10, $34 10, 2 8$ TAX CAPACITY RATE % MEDIAN VALUED HOME H$ TAX ON MEDIAN VALUED HOME $ 279 $ % , , , , 606, , , , 9, , , , , , % % , , % , 0. 92% % , 0. 86% , % 0. 81% % 0. 76% % 0. 73% , % 0. 69% , % 0. 66% % , , , , , , , , , , 330, , , , , , , , , 16, , , 7 30, 16, , , 0 98, 17, , 5 9 N/A , G$ % , LEVY LIMIT TAXABLE MARKET VALUE 1. 05% % % % % % % % % % % % 317, , , , , , , , , , , , Tax on Home Valued at $200,000 in 2014 Tax on Home Valued at 4 $ 1800 in 2014 Tax on Home Valued at $ 500,000 in Tax on Home Valued at 6 $ 00,000 in Tax on Home Valued at 7 $ 00,000 in Tax on Home Valued at 8 $ 00,000 in 2014 Tax on Home Valued at $ 900,000 in , 084 Tax on Home Valued at 1 $ Million in , 031 6, 201 6, 366 6, 536 6, 721 6, 899 NUMBER OF NEW HOME PERMITS 65 NUMBER OF HOUSEHOLDS POPULATION , 532 7, 943 8, 299 8, 644 8, 905 9, 166 9, 427 9, 688 9, ,210 10,471 10,732 10, ASSUMPTIONS: A - Projected Building Permit Revenue Amount per new home: 815 Inc I% each yr. F - Projected Debt Service Levy See attached worksheet for detail B - Projected Other Revenues 2. 50% G - Taxable Market Value C - Projected Operating Expenditures D - Capital Expenditures Projected annual growth: Projected annual growth: From Capital Improvement Plan 3. 50% Add 1 Pw Even Yrs H - Median Valued Home I - Number of Households Based on new homes and increase in existing home values 2. 50% Projected annual growth: Based on new home permits E - Total Transfers See attached worksheet for detail J - Population Based on persons per household: Per policy cannot exceed 1. 5% 2 - Debt 2.9 POLICY LIMITS: 1 - Net Tax -Supported Debt as a % of EMV X:FINANCIAL \ LONG \ TERM FINANCIAL 2014 PLAN\ 2014\ LTFP LRBREPORT Levy as a % of Total Levy Page Per policy cannot exceed 30% 1 of 1 11/ /2: 15 PM

10 ITY OF VICTORIA - LTFP GENERAL FUND TRANSFER DETAIL Lit Actual Actual /Proj Actual Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection PW Capital -101 Fire Capital Repay Water Fund Loan Long Term St Moint - 8XX Capital Facilities Fund Revenue Stab Fund Unfunded Parks & Trolls Others: EDA, Concerts in Park tal Transfers 70,000 $ 70,000 $ 70,000 $ 110,000 $ 110,000 $ 110,000 $ 110,000 $ 140,000 $ 140,000 $ 140,000 $ 140,000 $ 140,000 $ 140,000 $ 140, $ 6135 $ 6135 $ 6135 $ 6135 $ 6135 $ 70,000 $ 70,000 $ 70,000 $ 70,000 $ 70,000 $ 70,000 $ 70,000 $ 70, ,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 3319 $ - $ - $ - $ - $ - 639,995 $ 177,000 $ 150,000 $ $ 150,000 $ 230,000 $ $ $ $ $ 290,000 $ $ 340,000 $ 450, $ $ 1394 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ _ 88,113 $ $ - $ - $ - $ - $ _ $ _ $ _ $ - $ _ $ - $ _ $ - S S S 10 nnn < < < < e e e e CITY OF VICTORIA F - DEBT SERVICE LEVY DETAIL PROPOSED DEBT SERVICE Actual Actual /Proj Actual Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Diethelm Park ,800 86,800 86,800 87,800 87,800 87,800 87,800 79, SVUtil lmpr SVUtil lmpr SVUtillmpr t /Util lmpr , SVUtil lmpr , , , St /Util lmpr Aster Trail SVUd1 Imp ,000 68,000 68,000 68,000 68,000 68,000 68,000 68,000 68,000 68,000 New PW &City Hall 188, , , , , , , , , , St/ Util lmpr- 78th1Kochia /Ridge Ponds 108, , , , , , , , SVUtil lmpr -Deer Run SVUtil lmpr- Kirkelachen /Katy Hills /Field Creek 79,069 79,069 79,069 79,069 79,069 79, t /Util lmpr -Swiss Mtn /Marigold Boycliife / /Sunny 96,017 96,017 96,017 96,017 96, SVUtil lmpr tbd t /Util lmpr tbd St /Util lmpr tbd - 107, , [ Util / lmpr tbd - 100,000 Total Debt Service 799, , , , , , , X:\ FINANCIAL \LONG -TERM FINANCIAL PLAM2014\ LTFP LRBTRANSFER & DEBT LEVY DETAIL Page 1 of 1 11/17/ :16 PM

11 City of Victoria, Minnesota Capital Improvement Plan 2015 tirru 2019 PROJECTS BY FUNDING SOURCE Source Project# Priority Total General Fund Playground Replacement Program Election Machines ,000 Replace 2005 Jeep Liberty Replace Shoretel Phone System Bobcat attachments B Two Bobcats - Annual Trade -in 20, BC ,000 8,000 8,000 8,000 36, General Fund Total 76, , PW Capital Equipment Fund Purchase 2nd Bobcat Replace Replace X X -Mack - Mack Mower Mower ,000 7,000 Buy Buy Additional Additional 1 Ton Ton Pickup Pickup ,000 40,000 Replace Replace JD JD Tractor(1997) ,000 30,000 Trailer -T14 Replace 15 -year replacement (2001) Zero-Turn Lawn Mower ,000 18,000 Dump Dump Truck Truck # # Year Year Replacement Replacement ( ( 1999) 1999) Loaderwfplow -20 yearreplacement (1998) Pick -Up Truck # PU -10 Year replacement JD F1145 Mower -10 year replace (2009) ,000 20,000 Replace # PU - Streets Road Ditch Mower (Last replaced 2009) ,300 18, PW Capital Equipment Fund Total 117, ,800 38, Street Imp Bonds 2015 St Imp - 78th1Kochia02idge Ponds Dr 2015STIMP 2 947, , St Imp - Deer Run 2016STIMP St imp- KirkelachenlKaty Hills/Field Creek 2017STIMP St Imp- Swiss MtnlMarigoldlBaycli0emmers 2018STIMP 2 898, , St Imp STIMP 2 800, , Street Imp Bonds Total 947, , , , ParkImp Fees Madelyn Creek Park , ,000 Neighborhood Trail Renovations ,000 50,000 50, ,000 Diethelm Park Picnic/Ball field SheitedDugouts ,000 60,000 Bayfront Park , ,000 CR 43 Connecting Trail ,000 40,000 Lights at Lions Park and Diethelm Park , , ,000 Wasserman Park PARK , ,000 Laketown Park PARK , ,000

12 Source Project# Priority Total Park Improvement Fees Total 590, , , , , , Fire Truck and Equipment Fund Replace COV Ford F150 Chiefs Vehicle Replace SCBA Fire Truck and Equipment Fund Total ,000 Sewer Enterprise Fund Replace 1983 Sreco Sewer Jetter ,000 57,000 57, Lift Station Victoria Dr LS# , ,000 Lift Lift Station Station Green Green Crest Crest Drive Drive LS# , ,000 Lift Lift Station Station l7- l Ridge Ridge Ponds Ponds Ln Ln LS# , ,000 Trunk Sewermain Oversizing - Future Developments TSMFuture ,000 Trunk Sewermain Overszing - Krey Lakes 4th TSMKrsy Trunk Sewermain Oversizing -Krey Lakes 5th TSMKrey5 3 39,527 39,527 Trunk Sewermain Oversizing - Krey Lakes 6th TSMKrey6 3 60,107 60,107 Trunk Sewermain Oversizing - Lakeside Estates TSMUEstafes 3 58,496 58,496 Trunk Sewermain Oversizing - Lakesides Estates 2nd TSMLkEststs Trunk Sewermam Oversizing - Lake Wasserman Ridge TSMLkWRdg Trunk Sewermain Oversizing - Wasserman Lk Woods TSMWLWoods 3 140, ,523 Sewer Enterprise Fund Total 486, , , 634 Storm Water Mana ement - Purchase New Mini Excavator 15-SWM ,000 70,000 Storm Water Management Total 70,000 70,000 Water Enterprise Fund New Water Storage 15- WTRSTRGE 2 900, , 000 Trunk Watermain Overizing - Ambergate TWMAmbergate Trunk Watermain Oversizing -Future Developments TWMFuture Trunk Watermain Oversizing - Krey Lakes 7th TWMKrey 7th Trunk Watermain Oversizing - Krey Lakes 4th TWMKrey4th 3 20,672 20,672 Trunk Watermain Oversizing - Krey Lakes 5th TWMKreySth 3 17,809 17,809 Trunk Watermain Oversaing - Krey Lakes 6th TWMKmy6th 3 18,860 18,860 Trunk Watermain Oversizing - Laketown 8th TWMLaketown8 3 18,927 18,927 Trunk Watermain Oversizing - Lakeside Estates TWMUEstates 3 16,938 16,938 Trunk Watermain Oversizing- Lakeside Estates 2 TWMLkEstats Trunk Watermain Oversizing - Lk Wsmn Ridge TWMLkWRdg Trunk Watermain Oversizing - Lk Wsmn Ridge 2 TWMLkWRdg Trunk Watermain Oversizing - Rhapsody North TWMRhapNorth 3 17,199 17,199 Trunk Watermain Oversizing - Rhapsody N 2nd TWMRhapNfth2 3 76,999 76,999 Trunk Watermain Oversizing - Wasserman Lk Woods TWMWLWoods Construction of Pumphouse & Well No. 5 Weff -No-5 n/a 500, , 000 Construction of Pumphouw & Well No. 6 Wefl -NO -6 n/a 500, , 000 Water Enterprise Fund Total , ,459, 582 GRAND TOTAL 7, , ,

13 Victoria City Council Workshop N O V E M B E R 2 4,

14 Topics General Fund & Levy Recreation Center Fund & Levy Debt Service Levy Levy Comparison Long-Term Financial Plan Utility Fund s & Rates Capital Improvement Plan

15 General Fund & Levy Proposed 2015 Revenues - $89521 Revenues $2405 from Preliminary Levy $3000 from $887,000 to $856,000 Police Aid $6,000 $000,000 $000,000 $000,000 $000,000 $000,000 General Fund Revenues $ Actual 2013 Actual Prelim 2015 Final

16 General Fund & Levy Proposed 2015 Revenues = $89521 Taxes & Franchise Fees $947,367 76% Licenses & Permits $ % Intergovt Rev $106,225 3% Other $49,642 1% Charges for Services $ %

17 General Fund & Levy Proposed 2015 Expenditures & Transfers - $88072 Expenditures $19,826 from Preliminary Wages & Benefits $3000 Potential for further Unemployment Insurance $16,350 $000,000 $000,000 $000,000 $000,000 $000,000 General Fund Expenditures $ Actual 2013 Actual Prelim 2015 Final

18 General Fund & Levy Proposed 2015 Expenditures = $88072 Public Safety $ % Public Works $ % Parks & Rec $460,512 12% Gen Govt $188,672 30% Water Fund Loan $150,000 4%

19 Recreation Center Fund & Levy Proposed 2015 Revenues - $05215 Proposed 2015 Levy - $160,000 Revenues $500 from Preliminary Daily Passes $500 Recreation Center Fund Revenues $400,000 $200,000 $000,000 $800,000 $600,000 $400,000 $200,000 $ Actual 2013 Actual Prelim 2015 Final

20 Recreation Center Fund & Levy Proposed 2015 Revenues = $05215 Charges for Services $607,215 58% Reimbursements & Other $ % Taxes $ %

21 Recreation Center Fund & Levy Proposed 2015 Expenditures - $02858 Expenditures $9,069 from Preliminary Wages & Benefits $000 Employee Opt-Out Contractual Services $6,000 Additional Fitness Classes Recreation Center Fund Expenditures $400,000 $200,000 $000,000 $800,000 $600,000 $400,000 $200,000 $ Actual 2013 Actual Prelim 2015 Final

22 Recreation Center Fund & Levy Proposed 2015 Expenditures = $02858 Other $29,775 3% Wages & Benefits $176,171 17% Supplies, Repairs, Maint $78,570 8% Contracted Serv & Utilities $ % Debt Service $456,771 44%

23 Debt Service Levy Proposed 2015 Debt Service Levy - $08800 $10,000 from Preliminary Levy Aster Trail completed excess construction funds Levy includes debt for new City Hall Self-Imposed Debt Limits Debt Levy as a % of Total Levy 26.45% (Limit 30%) Net Tax Supported Debt as a % of EMV 1.10% (Limit 1.5%)

24 Levy Comparison Proposed Total Levy for $100,800 $4000 from Preliminary Levy $000,000 $500,000 $000,000 $500,000 $000,000 $500,000 $000,000 $500,000 $000,000 $500,000 $- Levy History Gen Fund VRC Debt

25 Long-Term Financial Plan LTFP projections through 2024 Tax Capacity Rates City Taxes Assumptions 90 new homes annually 2.5% growth in market value 3.5% growth in expenditures + PW staff Debt issued annually for street reconstruction Projected 2015 Tax Rate 33.40% Projected Taxes on Median Valued Home - $150

26 Long-Term Financial Plan 45.00% Tax Rate History & Projections 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Tax Rate History

27 Long-Term Financial Plan Tax Impacts Value for 2015 Taxes (2014 Taxes) Median Value $350,100 ($306,900) $156 $126 $150 $227,420 ($200,000) $702 $685 $704 $470,532 ($41800) $611 $568 $572 $568,550 ($500,000) $927 $894 $070 $68260 ($600,000) $562 $523 $735 $79970 ($700,000) $198 $152 $399 $909,680 ($800,000) $833 $781 $063 $02390 ($900,000) $469 $410 $727

28 Utility Fund s Water Utility REVENUES 2013 Actual Projected Operating Revenues $407,561 $349,628 $316,087 $389,635 $417,167 Core Revenues $66496 $55940 $279,735 $54196 $01562 Total Revenues $069,057 $90568 $59822 $93831 $430,729 Operating Revenues slightly below budget for Core Revenues higher due to new plats No rate increase planned Education Program followed by more stringent rates if necessary 2016 Core Revenues includes $1.5 Million in Bonds for Well #5

29 Utility Fund s Water Utility EXPENSES 2013 Actual Projected Operating Expenses $059,244 $11753 $177,420 $13006 $146,278 Treatment Plant Expenses $17662 $17586 $18698 $179,066 $186,231 Administration Expenses $29,278 $30,366 $2232 $3018 $3767 Core Expenses $22091 $2000 $14891 $099,498 $63753 Total Expenses $48275 $34705 $53241 $446,588 $000, Operating Expenses exceed budget due to MVEC billing correction & meter replacement 2015 Core Expenses includes new water reservoir 2016 Core Expenses includes Well #5

30 Utility Fund s Water Utility 2013 Actual Projected Total Revenues $069,057 $90568 $59822 $93831 $430,729 Total Expenses $48275 $34705 $53241 $446,588 $000,029 Increase/(Decrease) in Cash Available Cash at Year-End $58782 $559,863 $06581 $ $430,700 $13399 $69262 $197,980 $686,223 $116,923 Overall cash flow sufficient through 2024 Well #6 proposed for 2019

31 Utility Fund s Sewer Utility REVENUES 2013 Actual Projected Operating Revenues $770,702 $748,425 $77885 $82596 $867,203 Core Revenues $18687 $13938 $38564 $156,938 $156,938 Total Revenues $956,389 $88363 $156,449 $98534 $ Operating Revenues slightly above budget 2014 Core Revenues - $197,000 transfer in Rate increase planned in 2015 about 8% Quarterly base rate from $31.05 to $33.00 Per 000 gallons rate from $2.09 to $2.30 Overall utility rate increase about 3.5% ($20 for average user) factoring water, sewer, & storm water 2% Rate increases thereafter

32 Utility Fund s Sewer Utility EXPENSES 2013 Actual Projected Operating Expenses $67,714 due to MCES flow charge 2014 Core Expenses exceed budget due to Wasserman Project Easement condemnation Poor soils 2015 Core Expenses Renovation of Lift Station # Core Expenses Include reimbursements for oversizing 2016 Operating Expenses $557,715 $620,219 $63682 $729,387 $73821 Administration Expenses $2412 $2366 $2535 $28,328 $2399 Core Expenses $200,300 $12500 $496,192 $556,059 $26052 Total Expenses $780,427 $770,085 $15409 $31774 $020,272

33 Utility Fund s Sewer Utility 2013 Actual Projected Total Revenues $956,389 $88363 $156,449 $98534 $02141 Total Expenses $780,427 $770,085 $15409 $31774 $020,272 Increase/(Decrease) in Cash Available Cash at Year-End $ $11278 $040 $ $869 $57271 $68549 $578,311 $24314 $249,182 Overall cash flow increases through 2024 Below minimum reserve levels until 2024 Finance Committee recommends review of core fees

34 Utility Fund s Storm Water Management Utility 2013 Actual Projected Total Revenues $137,118 $14272 $146,818 $15866 $160,783 Total Expenses $57,156 $16125 $9331 $207,436 $14886 Increase/(Decrease) in Cash Available Cash at Year-End $79,962 $-19,853 $5487 $-5570 $1897 $42824 $40971 $478,311 $426,741 $44638 Overall cash flow sufficient through 2016 No rate increase planned Purchase of mini-excavator planned in 2015 Finance Committee recommends long-term maintenance planning

35 Capital Improvement Plan Minor changes from preliminary plan Items deferred from 2014 to Toolcat Will purchase a skid steer in Trail Project Allegheny trail moved to Items included in budgets, but still require Council approval Items adopted conceptually All items have adequate funding sources

36 Capital Improvement Plan 2015 CIP Items All items total $7,28557 General Fund Playground Replacement $2000 Election Machines $20,000 Replace Building Inspections Vehicle $2000 Bobcat Attachments $000 Bobcat Trade-in $000 PW Capital Equipment Fund Purchase 2 nd Bobcat (Skid Steer) $3000 Replace Mower $7,000 Purchase additional 1-ton truck $40,000 Replace Pick-up Truck $3000

37 Capital Improvement Plan 2015 CIP Items (continued) Street Improvements 78 th Street, Kochia Lane, Ridge Ponds Drive $947,000 Issue bonds for project Repay bonds with debt service levy & special assessments Deer Run Improvements feasibility study in 2015 Park Improvement Fund Neighborhood Trails Allegheny Paving $50,000 Bayfront Park $100,000 Connecting Trail along County Road 43 $40,000 Wasserman Park $400,000

38 Capital Improvement Plan 2015 CIP Items (continued) Sewer Fund Lift Station #11 Renovation $150,000 Trunk Main Oversizing Reimbursements $336,059 Storm Water Management Fund Purchase Mini Excavator $70,000 Water Fund Water Reservoir $900,000 Trunk Main Oversizing Reimbursements $9498

39 Capital Improvement Plan CIP Items Fund General Fund $3000 $38,000 $3000 $7000 PW Equipment Fund $5000 $18000 $218,800 $38,300 Street Improvements $85884 $56981 $898,000 $800,000 Park Improvements $410,000 $200,000 $350,000 $200,000 Fire Equipment Fund $4000 $0 $0 $22000 Sewer Fund $26052 $297,523 $27000 $27000 Water Fund $628,633 $11451 $11000 $61000 Total $286,569 $39955 $88800 $220,300

40 Summary Questions? Comments? Recommendations for final budget hearing: Monday, December 8, :30 PM