City of Des Moines. Self-Supported Municipal Districts, Solid Waste Enterprise, & Housing Services. November 27, 2017

Transcription

1 City of Des Moines Self-Supported Municipal Districts, Solid Waste Enterprise, & Housing Services November 27, 2017

2 Self-Supported Municipal Improvement Districts

3 SSMID Terms SSMID Established End of Levy Authorization Sherman Hill District #1 June 2, 1997 June 30, 2018 Sherman Hill District #2 October 6, 1997 June 30, 2018 Downtown February 23, 1998 June 30, 2019 Highland Park October 20, 2003 June 30, 2019 Ingersoll Grand January 28, 2013 June 30, 2033 Beaverdale January 13, 2014 June 30, 2029 SW 9 th Corridor August 8, 2016 June 30, 2027 Roosevelt Cultural District September 26, 2016 June 30, 2027

4 SSMID Expenses Sherman Hill annual inspection and cleaning, repairs, bulb replacements of historic street lights; locates; utilities; and insurance Downtown enhanced maintenance and cleaning of public spaces; services to enhance safety; business attraction and retention; capital improvements; improvement of skywalk system Ingersoll Grand improved sidewalks, curbs and cross-walks; landscaping; planters; decorative lighting; utility relocation; traffic signals and related pedestrian improvements; enhanced maintenance and cleaning of public spaces; a Goodwill Ambassador program; and marketing, business retention and attraction strategy Highland Park street light repairs and maintenance, utilities, insurance, plant maintenance Beaverdale pedestrian lighting, planters, and street furniture SW 9 th Corridor enhanced maintenance of public spaces; capital, physical, and other improvements to enhance, the appearance of the District; development and management of activities in support of marketing, business retention and attraction, and property improvement; and acquisition, construction, installation, and maintenance of streetscape improvements at identified nodes and intersections

5 SSMID Levy Rates $3.50 $3.00 $3.00 $3.00 $2.50 $2.00 $1.50 $2.25 $1.75 $1.75 $1.50 $2.25 $2.00 $1.30 $2.25 $1.75 $1.00 $0.50 $- Highland Park Beaverdale Sherman Hill Ingersoll Grand Downtown SW 9th Corridor Roosevelt Cultural District FY18 Rate Maximum Rate

6 SSMID Financial Data Sherman Hill Ingersoll Grand Highland Park Beaverdale Downtown SW 9th Corridor Roosevelt Cultural District FY17 Actual Revenues $ 55,094 $ 192,093 $ 14,916 $ 13,337 $ 1,561,893 $ - $ - FY17 Actual Expenditures 11, ,093 13,687 13,332 1,561, FY17 Net Activity 43,852 5,000 1, FY17 End of Year Fund Balance 291,588 35,000 55,091 25, FY18 Estimated Revenues 56, ,928 14,635 13,373 1,643,513 77,821 5,014 FY18 Estimated Expenditures 33, ,928 9,100 13,373 1,643,513 77,821 5,014 FY18 Net Activity 22,906-5, FY18 End of Year Fund Balance $ 314,494 $ 35,000 $ 60,626 $ 25,439 $ - $ - $ -

7 SSMID Budget Processes SSMID Sherman Hill Downtown Ingersoll Grand Highland Park Beaverdale SW 9 th Corridor Roosevelt Cultural District Budget Submittal Deadline Budget prepared by Finance staff as part of budget process. Budget submitted by SSMID by December 1 st of each year. Budget submitted by SSMID by October 1 st of each year. Annual board meeting held in January includes review of finances and discussion on recommended levy rate. Board meeting to be held in January will include a review of finances and discussion on recommended levy rate. Budget submitted by SSMID by October 1 st of each year. Operating agreement pending.

8 Downtown Operation Downtown Fiscal Year 2019 Budget Estimated Beginning Fund Balance 1,814,455 Revenues Property Tax 1,646,300 Downtown Maintenance 483,324 Brenton Skating Plaza Revenues 499,150 PILOT 23,364 Voluntary and Miscellaneous Support 236,628 Total Revenues 2,888,766 Expenses Management, Marketing, Facility Fees 364,963 Program Expenses: Clean 349,634 Safe 120,943 Beautification 68,123 Downtown Maintenance 1,080,929 Asian Garden Maintenance 35,000 Cowles Commons Maintenance 26,523 Brenton Skating Plaza Operations 480,440 Court District Security 120,000 Walnut Street Bed Maintenance 8,000 D-Line 50,000 Miscellaneous Project Support 36,050 Total Expenses 2,740,605 Surplus / (Deficit) 148,161 Estimated Ending Fund Balance 1,962,616

9 Ingersoll Grand Fiscal Year 2019 Budget Estimated Beginning Fund Balance 80,763 Revenues Projected Annual Tax Revenue 203,500 Sponsorships 46, ,500 Expenses Administration 19,000 Marketing and Promotion 31,050 Ingersoll LIVE 38,000 Run the Avenues 7,000 Economic Development 72,450 Repairs and Maintenance 77,000 The Avenues Restoration Contribution 5, ,500 Net Operating Surplus (Loss) - Less Repair & Maintenance Reserve (3,500) Net Surplus (Loss) (3,500) Estimated Ending Fund Balance 77,263

10 SW 9 th Corridor Property Tax Revenues 77,821 Fiscal Year 2019 Budget Expenses Administration & Program Support 25,000 Marketing 2,000 Events 5,000 Special Projects/Façade Programs 45,821 77,821 Net Surplus (Loss) - Estimated Ending Fund Balance -

11 Roosevelt Cultural District Function fund the operation and maintenance costs associated with the 42nd Street Streetscape Project as well as activities to support marketing and business retention and attraction 42 nd Street Streetscape Project total cost $2.8 million; construction essentially complete Anticipated property tax revenue of $5,000 per year based on $1.75 per $1,000 of assessed valuation Maximum allowable rate: FY18 FY23 $1.75 FY24 and thereafter $2.25

12 Questions/Comments

13 Solid Waste Enterprise

14 Solid Waste Public Works Sanitation Division provides trash, yard waste, and recyclables collection to approximately 66,000 homes The Fund also supports SCRUB and Property Cleanups Municipal collections are provided to City parks, municipal buildings, the Airport, WRA, and 4-plex locations Staffing at 50 full time positions 23 side-loaders, 12 front/rear loaders Purchasing 17 new loaders and will retire 17 of the existing fleet

15 FY2018 City of Des Moines Budget Special Revenue $118,736,991 17% Enterprise $128,050,693 19% Capital Projects $117,168,700 17% Solid Waste Stormwater Sanitary Parking Housing Golf General $168,866,090 25% Other $251,100 0% Internal Service $47,459,841 7% Debt Service $106,391,155 15%

16 Comparison of Annual Budgets Parking $11,293,435 10% Golf $191,681 0% Solid Waste $13,944,884 13% Sanitary $39,353,201 35% Housing $21,544,784 19% Stormwater $25,430,598 23%

17 FY2018 Adopted Budget Source of Funds Use of Funds Private Property Cleanup 2% Equipment 17% Yard Waste 13% Employees 38% Solid Waste Collection 79% Recycling 1% Other 5% Landfill Fees 22% Other 13% Vehicles 10%

18 Drivers for FY2018 Amended Budget Vehicle replacements ordered in FY2017 but delivery in FY $4.1M Creation of vehicle replacement fund in future years Furthers goals of Strategic Plan Will avoid large, single year expenditures By setting funds aside each year, avoids additional debt $1.1M to $1.2M per year added to fund Includes $3M expense in FY2018 for start of MSC2 and $8.4M in outer years for Solid Waste s portion of the completed project

19 Total Revenues (Prior to Rate Changes) 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 Other Recycling Private Property Cleanup Yard Waste Monthly Customer Fee 2,000,000 - Actual FY2015 Actual FY2016 Actual FY2017 Amended FY2018 Proposed FY2019 Projected FY2020 Projected FY2021

20 Total Expenses 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 Other MSC2 Capital Outlay Landfill Fees Equipment Employees - Actual FY2015 Actual FY2016 Actual FY2017 Amended FY2018 Proposed FY2019 Projected FY2020 Projected FY2021

21 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Expenses Vehicle Replacement $4,500,000 $4,000,000 $4,239k $4,033k $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,565k $1,640k $1,500,000 $1,074k $1,578k $1,138k $1,138k $1,144k $1,000,000 $1,138k $1,138k $1,139k $500,000 $- $435k $369k $410k $0k $92k $335k $0k

22 Revenues, Expenses & Fund Balance 25,000,000 20,000,000 79% 80% 91% 100% 80% 60% 15,000,000 10,000,000 5,000,000 33% 3% -9% -19% 40% 20% 0% -20% Total Revenue Total Expense Fund Bal % Policy Fund Bal - Actual FY2015 Actual FY2016 Actual FY2017 Amended FY2018 Proposed FY2019 Projected FY2020 Projected FY %

23 Fund Balance Shortfall Causes of fund shortfall: Replacement vehicles ordered in FY2017 but delivery in FY2018 Creation of vehicle replacement fund $3M expenditure for MSC2 in FY2018; $8.4M in outer years Inflation solid waste rates have remained unchanged since % 80% 60% 79% 80% 91% 40% 20% 0% -20% -40% 20% 20% 20% Actual FY2015 Actual FY2016 Actual FY % 20% Amended FY % 20% 20% 3% Proposed FY2019-9% Projected FY % Projected FY2021 Fund Bal % Policy Fund Bal

24 Scenarios Scenario #1 $3M advance + $8.4M debt Larger initial increase; smaller later Starting Rates FY18 Rate Change FY19 Rate Change FY20 Rate Change FY21 Rate Change FY22 Fund Balance 17% 21% 26% 31% First 64 gallon $ $ 2.25 $ 0.20 $ 0.20 $ 0.20 $ $ $ $ First 96 gallon $ $ 2.25 $ 0.20 $ 0.20 $ 0.20 $ $ $ $ Scenario #2 $3M advance + no additional debt Only single rate increase needed Fund Balance 22% 30% 38% 44% First 64 gallon $ $ $ $ $ $ First 96 gallon $ $ $ $ $ $ New Rate FY19 New Rate FY20 New Rate FY21 New Rate FY22

25 Comparison to Other Municipalities Current Sanitation Rates $25.00 $20.00 State Average $19.00 National Peer Average $19.99 $15.00 Metro Average $12.39 Des Moines Current $12.00 Des Moines Proposed $14.25 $10.00 $5.00 $-

26 Comparison to Other Municipalities Metro State Wide Garbage Recycle Total Altoona * $ Ames * $ included $ licensed haulers; WM rates shown Ankeny $ Cedar Rapids $ $ 4.80 $ built in 2.5% increase Carlisle * $ Council Bluffs $ included $ Clive $ Davenport $ included $ built in 3% increase Norwalk * $ Dubuque * $ included $ Pleasant Hill $ Iowa City $ $ 5.10 $ Urbandale $ Sioux City $ included $ West Des Moines $ Waterloo * $ $ 3.00 $ Windsor Heights * $ West Des Moines $ included $ Average $ Average $ $ * information updated since workshop * information updated since workshop National Peers Des Moines Augusta, GA $ Current Rate $ Boise, ID $ Proposed FY19 Rate $ Chattanooga, TN - Jackson, MS $ Knoxville, TN $ 6.83 Little Rock, AR $ Spokane, WA $ Toledo, OH $ Wichita, KS $ Average $ 19.99

27 Questions/Comments

28 Housing Services

29 Housing Services Section 8 Choice Housing Voucher Program Provides rental assistance in form of housing assistance payments (HAP) 3,100 individuals or families receiving Section 8 assistance (2,400 on waiting list) $418 average monthly housing assistance payment Public Housing Program Owns and manages rental units for eligible low- and moderate-income individuals and families 424 units 34 scattered site single family homes; 390 in manor sites Disposition Fund established through HUD approved sale of scattered site units beginning in August units sold

30 FY2019 Recommended Budget: $22,188,615 Capital Project Fund 2% Central Office 5% Public Housing 12% Housing Assistance Payments 70% Section 8 11%

31 FY2019 Recommended Budget: (excluding HAP & Capital): $6,126,060 Section 8 41% Central Office 17% Public Housing 42%

32 Operating Revenues & Expenses FY2018 Adopted FY2018 Amended FY2019 Recommended Total Revenues $ 21,293,325 $ 21,297,960 $ 21,732,179 Total Expenses 21,766,280 21,678,489 22,188,615 Surplus (Deficit) (472,955) (380,529) (456,436) Section 8 General Fund Support 250, , ,325 Public Housing General Fund Support 135, , ,403 Total General Fund Support 385, , ,728 Section 8 Other Local Govt/Dispo Funds 87,708 87,708 87,708 Remaining Deficit $ - $ - $ -

33 FY2019 Recommended Budget $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 Commodities $699,252 Fees $270,262 Contracts $555,072 Shortfall $156,403 Commodities Shortfall $255,601 $300,894 Fees $725,400 Contracts $184,112 Revenues $2,412,940 Revenues $2,193,899 $500,000 Personal Services $1,044,758 Personal Services $1,329,680 $0 Public Housing Section 8

34 Proration of HUD Revenues 100% 95% 90% 85% 80% 75% 70% 86% 80% 82% 88% 74% Public Housing 85% 84% 79% 78% Section 8 89% 84% 86% 78% 87% 75% FY17 Breakeven Proration: PH 104% Sect 8 88% 65% 69% 60% 55% 50% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

35 Program Changes Staff reductions have occurred: 2011 FTE 2018 FTE Public Housing Section Central Office 13 8 Total Implementing going paperless Relocated administrative offices Applying for additional grants On-line program applications Increased use of contracts Consultant reports and recommendations - implemented o Restructuring of divisions separating Public Housing and Section 8 o Streamlining of internal procedures

36 Continued Challenges Future of federal funding unknown o Sequestration - Congress cut all programs across the board o Continued imposition of unfunded mandates Continue to look at options to lower costs and increase efficiencies Increasing number of Section 8 vouchers used outside of Des Moines Seeking partnerships with other government entities and non-profit agencies General fund support (both programs) FY2108 Adopted $385,247 FY2018 Amended $292,821 FY2019 Recommended $368,728

37 Questions/Comments