AGENDA CAPTION:
Title
Receive a staff presentation and hold a Public Hearing to receive comments for or against Ordinance 2024-40, adopting an operating budget in the amount of $342,578,537.00 for the fiscal year beginning October 1, 2024 and ending September 30, 2025; authorizing certain adjustments to the budget with the approval of the City Manager; approving fiscal year 2024-2025 Capital Improvements Program Projects in the amount of $84,855,000.00; including procedural provisions; and declaring an effective date; and consider approval of Ordinance 2024-40, on the first of two readings.
Body
Meeting date: September 3, 2024
Department: Finance
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: City Council Strategic Planning and Visioning on January 25-26, 2024, Budget Policy Workshop on February 22, 2024, Budget Policy Adoption on March 19, 2024, Budget Workshops on May 21, 2024, June 27, 2024, and August 20, 2024.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Public Safety, Core Services & Fiscal Excellence
Quality of Life & Sense of Place
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☒ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☒ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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Background Information:
The fiscal year 2025 operating budget totals $342,578,537, which is a $21.4 million or 6.7% increase from the adopted budget for fiscal year 2024. The budget is balanced and meets the criteria set forth in the City’s Budget Policy Statement. The Capital Improvement Program for fiscal year 2025 totals $84,855,000.
City Council held a Visioning workshop in January where they refined their strategic goals and prioritized programs and services. A Budget Policy workshop was held in February to formulate the Budget Policy that was adopted in March. The strategic goals and Budget Policy established by City Council were used to create the proposed fiscal year 2025 budget, which was presented to City Council during budget workshops in May, June, and August.
Revenue Summary
This budget as submitted proposes to keep the tax rate the same at 60.30 cents per $100 valuation. The tax rate is comprised of two components, 1) operations and 2) debt. The operations component of the tax rate is 45.00 cents and the debt component is 15.30 cents. In 2022, City Council approved a local homestead property tax exemption of $15 thousand and increased the local senior and disabled property tax exemption by $10 thousand to $35 thousand. In fiscal year 2025, these local property exemption amounts remained the same and provided residents with $1.3 million in property tax relief.
The proposed budget also includes the recommendations from the Citizen Utility Advisory Board (CUAB) for Water and Wastewater rates and Electric base rates. CUAB recommended a minimum 5.5% effective rate adjustment for electric services and a 5% rate adjustment for water and 5% for wastewater services. Resource Recovery rates will increase 1% in addition to $1 per month for the mattress removal program. These Resource Recovery rate adjustments are proposed for residential and multifamily services. City Council approved using General Fund capacity to cover Stormwater’s capital improvement projects avoiding a rate adjustment in Stormwater.
The proposed rate and fee adjustments will be considered separately by City Council.
Revenues by Fund
Expense Summary
Public Safety, Core Services, and Fiscal Excellence is one of City Council’s strategic goals. Supporting this goal, the proposed budget includes 941.91 full-time equivalents (FTEs).
The following positions were added in the General Fund:
• Two Police Officers (One funded by General Fund, One funded through a grant)
• Crime Analyst
• Housing & Community Development Manager transferred from Community Development Block Grant (CDBG) funding
• Code Compliance Officer transferred from Community Enhancement funding
• One intern (Half of the position is funded by General Fund and the other half is funded by Hotel Occupancy Tax)
• Master Technician - Emergency Vehicle Technician
• Plumber*
• Streets Supervisor*
• Administrative Clerk*
• Business Retention & Expansion Coordinator*
• One additional FTE from converting 2 part-time to full-time Parking Technicians*
*Positions added due to departments reducing their operating expenses or increasing revenues (budget neutral).
The following funds have positions added:
• Women, Infants, and Children - 2
• Hotel Occupancy Tax - 0.5
• Electric and Water/Wastewater - 1 position shared between the two funds
• ARPA - 2
The budget also includes $2.0 million for a cost-of-living adjustment for non-civil service employees. The Police and Fire meet and confer agreements were approved during fiscal year 2023 and the agreed upon compensation adjustments are included in the proposed fiscal year 2025 budget.
Expenses by Fund
Council Committee, Board/Commission Action:
On July 25, 2024, the Citizen Utility Advisory Board voted to recommend a minimum 5.5% effective rate adjustment for electric services and a 5% rate adjustment for water and 5% for wastewater services.
Alternatives:
City Council may adopt the budget as presented or make changes as deemed necessary.
Recommendation:
City Council approve the ordinance adopting the FY 2025 Annual Budget and Capital Improvement Program.