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Home My WebLink AboutCOW 2014-09-22 Item 4B - Powerpoint Presentation Shown at Meeting - 2015-2016 Biennial Budget Timeline2015 -16 Budget Preview City of Tukwila September 2, 2014 September 2, 2014 2015 -16 Budget Preview 1 Agenda ❖ Timeline ❖ General Fund Revenues ❖ General Fund Expenditures • Departmental • Debt Service • Capital Project funding ❖ General Fund balance ❖ Financial Planning Model ❖ Capital Improvement Program 2015 -16 Budget Preview 2 2013 2014 Oct Nov Dec Jan Feb Mar Air Ma Jun Jul Au: Sep Oct Nov Dec f �iT>ri►�T_l��L�1 LeT��ST�� z cc w H x w [eLLeirn irn DELIVERABLES 0 Council /Exec Team Workshop #1 > potential 2015/16 Priorities 10/10/2013 • Admin Team / Berk > Refine 15/16 priorities 12/17/13 0 Council /Exec Team Workshop #2 > Finalize 2015/16 Priorities Council Retreat > Refine 15/16 priorities 01/25/2014 Admin Team Admin Team > Proposals- vetted > Budget presentations heard; preliminary decisions made - staff increases, other initiatives Admin Team W Admin Team > Review, refine draft budget • 010 Dept Staff Finance /Dept Dept Staff Finance > Proposals presented > Budget files available > Budgets discussed, justified > Priorities discussed with dept staff Community Engagement > Report on 2013 accomplishments > Gather feedback on 15/16 priorities > Budget files due Counci riefing COW Finance /Depts Dept staff Dept staff 1. Finance distributes priorties list 2. Dept proposals presented 3. Finance provides budget files to depts >Compile draft budget > Refine draft budget Community Engagement > Briefing /update >Tukwila Reporter article 4. Budget files to Finance 5. Draft budget > Mayor presents preliminary budget Council Workshop > kick -off 1 Finance Council > Budget adoption > Public Hearing Finance 6. Preliminary budget completed 2015 -16 Priorities 1. Tukwila International Boulevard Community Transformation 2. Community Livability 3. Create Community Partners to Implement City- wide Plans and Visions 4. Develop /Implement Comprehensive Economic Development Plan 5. Continue to create a more effective organization 6. Improved communications and community identity September 2, 2014 2015 -16 Budget Preview 4 Revenue Assumptions ❖ Construction activity increases in 2015 and accelerates in 2016 • Tukwila Village • TIB Redevelopment project • Other ❖ Economy continues to strengthen Revenue Projections TAXES Property tax Sales tax Utility tax Interfund utility RGRL Gambling, excise 2015 (c) 3.0% 3.0% 1.9% 4.0% 2.0% 1.9% 2016 5 Year Average 3.5% 3.0% 3.5% 2.0% 2.0% -1.6% 6.4% 5.0% 2.0% 2.6% 2.5% 3.5% Total Taxes 2.8% 3.3% 2.5% (a) (b) (a) Average of 2010 -2013 actual and 2014 estimated results. (b) 3 -year average from 2011 implementation. (c) 2014 estimate to 2015 budget. September 2, 2014 2015 -16 Budget Preview 6 Revenue Projections OTHER REVENUE Sales tax mitigation SCL Agreement Licenses & permits Intergovernmental Charge for service 2015 (c) 2016 5 Year Average 0.9% 0.0% -6.1% 3.1% 3.0% 2.8% 4.4% 2.5% 10.5% -9.5% 3.1% -1.4% 0.9% 1.6% 7.9% (a) Average of 2010 -2013 actual and 2014 estimated results. (c) 2014 estimate to 2015 budget. September 2, 2014 (a) 2015 -16 Budget Review 7 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% - L0% -2.0% - 3.0% - 4.0% - 5.0% Ongoing Revenue Trend Ongoing Revenue % Change 4.2% 3.2% 1.6% 2010 2011 2012 2013 2014 2015 2016 September 2, 2014 2015 -16 Budget Preview 8 One -time Revenue — Property Sales • Tukwila Village Land sale • Newporter property • Longacres property • Old Fire Station 53 Risks & Considerations + Revenue risks: • Revenues fall short of projections • Property sales are delayed or proceeds are less than projected + Policy considerations: • Interfund utility tax sunset in 2015 • Voter approved new revenues • Revenue increases not requiring voter approval 2015 -16 Budget Preview 10 me Proposals Description Cost 2015 2016 Comments Est Add'I Add'I Budget Budget Legally Mandated Public Defender caseload limitation Tier One Code Enforcement Public Records request assistance Fire equipment; September 2, 2014 $275K $275K $275K In Mayor's budget a professional services. $85K $87K $87K In DCD budget as professional services $97K $100K $100K In Attorney's budget as professional services $30K - $137K $0 $140K In Fire budget as supplies: Airpack cylinders, thermal imaging cameras, defibrillators 2015 -16 Budget Preview 11 me Description Tier Two Recreation afterschool program Cost Est Pro 1 2015 2016 Add'I Add'I Budget Budget osals $100K- $0 $300K Police recruiter .5 $56K $0 FTE City Identity, $100K communication strategy Economic $30K - Development Plan $100K Comments $0 Accomplished with existing budget through partnership with TSD and YMCA $0 Accomplished with existing budget through process improvements $59K $39K In Communications budget as professional services $60K $0 In Economic Development budget as professional services Scptcmbcr 2, 2014 2015 16 Budget Preview 1 2 Departmental Expenditures • Mayor's Office • Public defender costs • Communications division • Enhanced Economic Development ❖City Attorney • Public records request initiative ❖Park & Street Maintenance • Utility costs Departmental Expenditures ❖Fire Department • Fire equipment appropriation • Fleet and apparatus replacement reserve holiday ❖Finance • Insurance and claims September 2, 2014 2015 -16 Budget Preview 14 •• Expenditures by Type ❖ Salaries • decrease in 2015 compared with 2014 budget • Benefit increase • Retiree Leoff 1 premiums • Employee healthcare experience • PERS increases ❖ Supplies • Fire equipment • Police ammunition September 2, 2014 2015 -16 Budget Preview 15 Expenditures by Type ❖ Professional services • Public defender costs • Communication and City identity • Economic Development plan • Code enforcement enhancement • Insurance, Utilities ❖ Intergovernmental • Valley Com & SCORE ❖ Capital • Reduction with implementation of permit system September 2, 2014 2015 -16 Budget Preview 16 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% - 1.0% - 2.0% - 3.0% - 4.0% i Expenditure Trend Departmental Expense % Change 2.6°/ 6.0% 1.5% -2•.8% -2.7% 2010 2011 2012 2013 2014 2015 2016 September 2, 2014 2015 -16 Budget Preview 17 Risks & Considerations + CERT Trainer carried at 100% City funding + Fire apparatus & fleet replacement funding on hold + Employee healthcare claim experience and trend + Retiree Leoff 1 healthcare premiums restored 2015 -16 Budget Preview 18 1 y $4,000 v 2 • $3,500 City of Tukwila General Obligation Bond Debt Service $3,000 • $2,500 $2,000 $1,500 $1,000 $500 $0 • SCORE • SC Parkway Extension/HHD • Arterial Street, KC Bridge • City Hall Annex, Tukwila Village • Valley Conn • TCC, Fire Station #53 • MPD Capital Loan NEW- Interurban Ave S N EW-BAR B ridge N EW-U rba n Renewal NE11V 4�rtd Ave S -NEW- 53rd - Aire -S 111111111111111 y0` y� ti0 /\ ti� .ti0 ,y'y LL .��i yR ,yh ti� tit ti� ti� �O �y );\' �'' �0 ,,") 5�0 51 �% ,�0i c).1.°` LO ,y0 ,y0 ,y0 ,LO •1 ,LO ,LO ,LO ,LO ,y0 ,LO ,y0 ,y0 "k k ' k ,LO "k ,LO ,LO ,y0 ,LO ,y0 ,ti0 September 2, 2014 2015 -16 Budget Preview 19 Proposed New Debt Residential Streets: 42nd Ave S 53rd Ave S Total Bonding Estimated Annual Debt Service $3,800 1,700 5,500 $ 440 Non Voted Debt Capacity 2015 = $46.OM 2016 = $46.4M Calculated with proposed new debt included September 2, 2014 2015 -16 Budget Preview 20 Capital Projects Paid for through General Fund Transfers Routine maintenance: • Overlay • Bridge inspections • Annual traffic signal program • ADA improvements • Wetland mitigation 2015 budget $2,108K 2016 budget $2,028K September 2, 2014 2015 -16 Budget Preview 21 Capital Projects Paid for through General Fund Transfers In Thous $ 2015 2016 Arterial Street: Routine maintenance $ 2,108 $ 2,028 Ped Bridge 1,283 280 Andover Park West 470 BSNF 250 Walk & roll plan 140 Transp comp plan 100 S 144th and other 231 90 4,582 2,398 General Government: Facility improvements 200 200 General Fund Contribution to Capital Projects $ 4,782 $ 2,598 September 2, 2014 2015 -16 Budget Preview 22 Projected Financial Results + General fund draw down of $695K for biennium • Margin of ongoing revenue versus ongoing expenditure September 2, 2014 2015 -16 Budget Preview 23 8.0% 6.0% 4.0% 2.0% 0.0% - 2.0% - 4.0% - 6.0% Changes Ongoing Revenues & Expenditures Ongoing Revenues versus Ongoing Expenditures 6.0% 4.2% 1.8% 2.2% 0 1.5% 1.6% -4.1% 2010 2011 2012 2013 2014 2015 Revenue % Change -Exp % Change 2016 September 2, 2014 2015 -16 Budget Preview 24 Financial Planning Model Attachment A: ❖ Revenue assumptions 1% to 3% ❖ Expenditure assumptions 2.5% • Reserve policy met at end of Six -Years ❖ Governmental fund balance of $6.3M ❖ Reserve fund balanceof$6.IM September 2, 2014 2015 -16 Budget Review 25 Ne. Governmental Fund Balances Attachment A* (In Thous) $30,000 $22,896 $22,542 2008 2009 2010 * * exclusive of unspent bond proceeds. September 2, 2014 $16,386 2011 2012 2013 2015 -16 Budget Preview 26 Policy Considerations + Margin between ongoing revenues and expenditures •:• Fund balance levels •:• Level of debt and debt service September 2, 2014 2015 -16 Budget Preview 27 Capital Improvement Program September 2, 2014 2015 -16 Budget Preview 28 ✓ August ✓ September October November December September 2, 2014 Next Steps Develop budget draft 2014 2nd Quarter Financial Report Debt policy to Finance & Safety Council presentation — Budget draft and CIP Presentation of proposed budget Public Hearing on budget Budget Adoption 2015 -16 Budget Preview 29 Comments & Questions Tukwila The City of opportunity; the community of choice. September 2, 2014 2015 -16 Budget Preview 30