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FY 2017 Annual Budget

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FY 2017 Annual Budget City of Brentwood, Tennessee FISCAL YEAR 2017 (July 1, 2016 – June 30, 2017) ANNUAL OPERATING BUDGET Brentwood Board of Commissioners Regina Smithson Mayor Jill Burgin Mark Gorman Vice Mayor City Commissioner Betsy Crossley Rhea E. Little, III City Commissioner City Commissioner Anne Dunn Ken Travis City Commissioner City Commissioner City Staff Kirk E. Bednar City Manager Jay Evans Assistant City Manager Karen Harper Interim Finance Director 1 2 TABLE OF CONTENTS PAGE I. BUDGET MESSAGE City Manager’s Transmittal Memorandum 5-19 II. BUDGET OVERVIEW/SUMMARIES Community Profile 20 Organization Chart 21 Chart of Funds 22 Operating Budget Policies 23-24 Fund Balance Policy 25-28 Debt Management Policy 29-36 Revenue Policies 37 Investment Policy 38-41 Budget Format 42-44 Budget Procedure 45-46 Budget Calendar 47-48 Long-Term Goals and Objectives - Brentwood 2020 Plan 49-82 Budget Summaries 83-112 III. CAPITAL IMPROVEMENTS PROGRAM 113-132 IV. GENERAL FUND General Fund Revenues 133-146 General Fund - Activities, Expenditures and Non-routine Goals & Objectives City Commission 149 City Court 150 City Manager’s Office 152 Elections 155 Finance 156 City Recorder 160 Legal Services 163 Technology 168 Geographic Information Systems 173 Human Resources 175 Community Relations 180 Planning 187 Codes Enforcement 189 Insurance/Other Benefits 191 Police 192 Fire and Rescue 296 Safety Center East 202 Public Works 203 Storm Drainage 208 Street Lighting 209 3 TABLE OF CONTENTS PAGE Traffic Signalization 210 Service Center 212 Engineering Services 215 Public Health 220 Parks and Recreation 222 Public Library 227 Education 231 Economic Development 232 Historic Sites 233 Operating Transfers to Other Funds 235 Equipment Replacement Fund 237 Facilities Maintenance Fund 240 Post Employment Benefits Fund 241 Post Employment Benefits Trust (Informational Only) 243 V. SPECIAL REVENUE FUNDS State Street Aid Fund 247 Public Works Project Fund 249 Drug Fund 251 Adequate Facilities Tax Fund 253 VI. INTERNAL SERVICE FUNDS Fuel Fund 256 Insurance Fund 258 VII. DEBT SERVICE FUND 261 VIII. CAPITAL PROJECTS FUND 268 IX. ENTERPRISE FUNDS Water and Sewer Fund 274 Municipal Center Fund 284 Emergency Communications District 287 X. APPENDIX - SUPPLEMENTAL INFORMATION Appropriations Ordinance 293 Tax Levy Ordinance 308 Personnel Summary/Schedule Classification and Pay Plan 309 Statistical Information 320 Glossary 327 Index 333 4 REGINA SMITHSON COMMISSIONERS MAYOR BETSY CROSSLEY ANNE DUNN JILL BURGIN VICE-MAYOR MARK GORMAN RHEA E. LITTLE, III KIRK BEDNAR KEN TRAVIS CITY MANAGER July 1, 2016 CITY MANAGER MEMORANDUM 2016-03 TO: The Honorable Members of the Brentwood Board of Commissioners FROM: Kirk Bednar, City Manager SUBJECT: Fiscal Year 2016-2017 Adopted Operating Budget The adopted annual operating budget for the City of Brentwood for Fiscal Year 2017, beginning July 1, 2016 through June 30, 2017, is hereby submitted for your consideration. This document represents one of three major components in the financial and management plan of the City, with the other two being the adopted six-year Capital Improvements Program for FY 2017-2022 and the adopted Non-Routine Work Plan for Fiscal Year 2017. The adopted budget has been developed and prepared in accordance with the City Charter, state and federal laws and City budget policies and procedures. A work session is scheduled for Thursday, May 5, 2016 to review this proposal with the City Commission prior to formal consideration of the appropriations and tax rate ordinances. First reading is scheduled for the Monday, May 23, 2016 meeting and final reading on Monday, June 27, 2016. The City Commission will receive formal citizen comments at three public hearings that will be held prior to each reading of the ordinance and at the Tuesday, June 14, 2016 regular meeting. The Fiscal Year 2017 budget is balanced with net expenditures for all funds totaling $73,560,065. This represents an increase of $4,332,220 or 6.3% more than last year’s budget of $69,227,845. Various funds reflect either increases or decreases in appropriations from the previous year. Funds reflecting significant increases compared to FY 2016 include the General Fund ($1,080,820 or 3.1%), Public Works Project Fund ($1,000,000), Adequate Facilities Tax Fund ($750,000), Water and Sewer Fund ($472,150 or 2.8%), Capital Projects Fund ($545,000 or 3.7%), Insurance Fund ($359,450 or 12.2%), and the State Street Aid Fund ($300,000 or 20.3%). Note that several funds that reflect large, one time capital purchases are likely to have significant planned fluctuations from year to year and can materially impact the overall budget amount from one year to the next. Economic Outlook The Middle Tennessee economy continues to rebound from the most significant economic downturn since the Great Depression. Nashville and the surrounding counties, including 5 Williamson County, continue to see economic growth levels exceeding almost any other region of the country. In Brentwood, several new subdivisions are under development and there continues to be strong interest from developers for land to initiate new residential projects. At the same time, the real estate market for existing homes continues to show strong activity. New commercial development and redevelopment is also strong, as reflected in the Mallory Park area, the hotel and retail projects in the CityPark Brentwood office park, Franklin Synergy Bank building in the Town Center area, and development of the new phase of the Hill Center Brentwood project, a 600,000 square foot mixed-use retail and office development that will transform the look and feel of the north Brentwood commercial area. The first phase of this project will open late in calendar year 2016. While this is good economic news and provides for a positive financial outlook heading into FY 2017, there is still much uncertainty in the world today outside of the City’s control that could dramatically impact the economy in the future. There remains a fundamental disconnect at the Federal level regarding how to balance the budget for the long-term. With one of the most unique presidential elections in modern history just a few months away, it is impossible to know what the atmosphere in Washington DC will be come 2017. Regardless of one’s personal political philosophies, having a financially stable federal government is the foundation of a strong national economy and a key ingredient for assuring financial strength at the state and local level. Likewise, there continue to be concerns with the state legislature and its continuing philosophy regarding the perceived need to rein in local government authority. From annexation to firearms in parks to environmental controls to fundamental land use issues, actions at the state capitol continue to limit local governments’ ability to effectively and efficiently manage their day to day delivery of services to residents. From a pure budget perspective, the planned repeal of the Hall Income Tax by FY 2023 will clearly have a significant impact on Brentwood’s continued ability to directly fund needed capital projects in the future. Such “challenges” make it imperative that we continue to position the City of Brentwood to meet the demands of an uncertain future. While it is essential to maintain a conservative approach toward financial management and expansion of services, we should never forget why our residential and corporate citizens choose to be in Brentwood. They expect the City to maintain the excellent quality of life by delivering essential services cost effectively and investing in infrastructure and facility improvements that enhance our desirability as a community both now and in the future. These ideals were only reinforced in the recent 2020 update community and business surveys. Core Principles for Preparation of this Budget 1. Long Range Planning and Direction Established - The Capital Improvements Program is an essential component of the City’s budget process and allows for broader understanding and deliberation on the essential long-term capital needs of a growing city. Formal consideration and adoption of the annual non-routine work plan by the City Commission also allows departments to focus efforts for the coming year on the mutually agreed upon needs of the organization and community and also provides a better method of evaluating staff performance. 6 2. Capital Improvements Funded – As a part of formal consideration of the Capital Improvements Program, the City must commit the resources necessary to implement the needed projects. Direct local funding for capital improvements is approved through a special FY 2016 General Fund operating transfer of $2,395,000 to the Capital Projects Fund before June 30, 2016. The transfer is possible due to positive revenue collections in the current fiscal year over original budget estimates. Also planned in FY 2016 is a year- end transfer of $7,800,000 from the General Fund unreserved fund balance which includes $4.9 million in lieu of the originally planned G.O. bond issue for Sunset Road/Ragsdale Road intersection improvements ($3.4 million) and construction of Flagpole and Wikle parks ($1.5 million). The remaining $2.9 million from the unrestricted fund balance was previously planned in support of the Phase 2 improvements at Smith Park ($1.5 million) and additional funding for the Sunset Road/Ragsdale Road intersection project ($1.4 million). Carrying out capital improvements in this manner allows the City to reduce the amount of long-term debt that would otherwise be needed to meet the needs of the community. The City’s ability to do so in the future will be challenged with the future loss of the Hall Income Tax. 3. Fiscally Responsible Plan - The staff takes pride in the strong financial position of Brentwood as reflected in the highest bond ratings possible - Aaa from Moody’s Investors Service and AAA from Standard and Poor’s.
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