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Pueblo Transit CITY OF PUEBLO, COLORADO Photo Caption CITY OF PUEBLO, COLORADO COUNCIL PRESIDENT Stephen G. Nawrocki COUNCIL MEMBERS Ray Aguilera Lawrence Atencio Ed Brown Chris Nicoll Bob Schilling Lori Winner CITY MANAGER Sam Azad TABLE OF CONTENTS BUDGET MESSAGE DEBT SERVICE FUND City Manager's Budget Message A-1 Debt Service E-1 SUMMARY REPORTS ENTERPRISE FUNDS General Fund Revenues/Expenditures B-1 Elmwood Golf Course F-1 and Fund Balance Honor Farm Enterprise F-5 Revenue History - by Source B-2 Memorial Airport F-8 General Fund Summary - 2017 Expenditure B-7 Memorial Hall F-15 Budget by Category Parking Facilities Enterprise F-17 General Fund Budget History - by Department B-8 Pueblo Transit F-20 Other Funds Summary - B-9 Stormwater Utility F-26 2017 Budgeted Expenditures Walkingstick Golf Course F-32 Staffing Level Summary - by Department B-10 Wastewater F-35 Summary Graphs and Tables B-11 REVENUE NARRATIVES INTERNAL SERVICE FUNDS General Fund Revenue Narratives C-1 Internal Services G-1 Fleet Maintenance G-2 GENERAL FUND Self-Insurance G-7 City Council D-1 Technology G-8 City Manager D-4 City Clerk D-9 OTHER GOVERNMENTAL FUNDS City Hall Operation D-14 Economic Development Tax H-1 Civil Service D-15 HUD Grants H-2 Finance D-19 Intergovernmental H-3 Fire D-23 Other Special Revenue H-5 Housing and Citizen Services D-28 Police Building H-6 Human Resources D-32 Public Improvements H-7 Information Technology D-36 Special Charges H-9 Law D-41 Special Districts H-11 Municipal Court D-45 Stimulus Grants H-12 Parks and Recreation D-49 Planning and Community Development D-54 GLOSSARY I Police D-59 Public Works, Bureau of D-64 ENABLING LEGISLATION J Purchasing D-70 Non-Departmental-Operational Charges D-74 Non-Departmental-Contractual Payments D-75 Non-Departmental-Health and Welfare D-76 Non-Departmental-Contributions & Donations D-77 Transfers to Other Funds D-78 TABLE OF CONTENTS BUDGET MESSAGE DEBT SERVICE FUND City Manager's Budget Message A-1 Debt Service E-1 SUMMARY REPORTS ENTERPRISE FUNDS General Fund Revenues/Expenditures B-1 Elmwood Golf Course F-1 and Fund Balance Honor Farm Enterprise F-5 Revenue History - by Source B-2 Memorial Airport F-8 General Fund Summary - 2017 Expenditure B-7 Memorial Hall F-15 Budget by Category Parking Facilities Enterprise F-17 General Fund Budget History - by Department B-8 Pueblo Transit F-20 Other Funds Summary - B-9 Stormwater Utility F-26 2017 Budgeted Expenditures Walkingstick Golf Course F-32 Staffing Level Summary - by Department B-10 Wastewater F-35 Summary Graphs and Tables B-11 REVENUE NARRATIVES INTERNAL SERVICE FUNDS General Fund Revenue Narratives C-1 Internal Services G-1 Fleet Maintenance G-2 GENERAL FUND Self-Insurance G-7 City Council D-1 Technology G-8 City Manager D-4 City Clerk D-9 OTHER GOVERNMENTAL FUNDS City Hall Operation D-14 Economic Development Tax H-1 Civil Service D-15 HUD Grants H-2 Finance D-19 Intergovernmental H-3 Fire D-23 Other Special Revenue H-5 Housing and Citizen Services D-28 Police Building H-6 Human Resources D-32 Public Improvements H-7 Information Technology D-36 Special Charges H-9 Law D-41 Special Districts H-11 Municipal Court D-45 Stimulus Grants H-12 Parks and Recreation D-49 Planning and Community Development D-54 GLOSSARY I Police D-59 Public Works, Bureau of D-64 Purchasing D-70 Non-Departmental-Operational Charges D-74 Non-Departmental-Contractual Payments D-75 Non-Departmental-Health and Welfare D-76 Non-Departmental-Contributions & Donations D-77 Transfers to Other Funds D-78 Sam Azad One City Hall Place City Manager Pueblo, CO 81003 Phone(719)553-2655 Fax (719) 553-2698 Office of the City Manager September 26, 2017 Honorable President and Members of City Council: Opening Remarks I am pleased to provide to you the Fiscal Year (FY) 2017 Proposed Budget and 2017 -2021 Capital Improvement Plan (CIP) for the City of Pueblo. The FY 2017 Budget is the fourth annual budget that I have had the opportunity to present to you as the City Manager. Unlike the past three years, the preparation of this budget comes during a more stable local economic environment. The City's financial outlook appears more secure compared to my previous budget proposals. However, similar to the previous budgets, we had to use funds from the undesignated portion of the Fund Balance in order to balance the FY 2017 Proposed Budget. Therefore, as always, we must continue to be prudent gatekeepers of the taxpayers' money. As is the case every year, the FY 2017 budget reflects Pueblo's continued commitment to provide the highest quality services to the community in the most cost-effective manner, while maintaining the City's long-term financial viability. We began the FY 2017 budget planning process in February of2016 at the City Council Strategic Planning Retreat. At that time, City Administration provided the Council with information about the level of financial challenges that the City government would have to cope with in 2016, 2017 and beyond. In view of that, I have prepared the City Manager's Recommended Budget for FY 2017 with five key goals established by the City Council during the annual retreat: 1. Protect core services and priorities of the City government; 2. Ensure Pueblo is a safe community; 3. Strengthen neighborhoods and improve all efforts to identify and alleviate community nuisances; 4. Support quality of life projects that will improve vitality of the community; and 5. Advance transportation and infrastructure needs of the City. Shortly after approval of the FY 2016 budget in November of 2015, we began working to reduce the $2.2 million projected deficit for FY 2016. Preserving essential services remains a top priority of the City Council, but previous cost cutting measures included not funding many vacant positions __________________________________________________________________________________________________________ City of Pueblo A-1 2017 Budget unrelated to public safety. This policy began easing during 2016 and several of these positions have since been filled. The City of Pueblo's FY 2017 budget continues the commitment to providing quality, sustainable services to the residents and businesses in Pueblo. While the structural imbalance of the City still remains, efforts to align on-going expenses with on-going revenues are reflected in the proposed budget plan while continuing to prioritize public safety, investment in the community, and quality services. 2017 City Manager's Recommended Budget Pursuant to Section 4-5c of the Charter, I hereby submit for City Council' s consideration the City Manager's Recommended Budget for the fiscal year 2017. The major areas of the 2017 Budget are highlighted as follows: Revenue Sales and use tax revenue continues to be the principal source of income for the City's operating and capital budgets. At about 60 percent of all general taxes in the FY 2017 budget, sales and use tax is by far the largest source ofrevenue. Using a qualitative and quantitative forecasting method based upon time series data, in addition to a cross section of several economic, financial, and demographic variables, we project a relatively small increase in sales and use tax revenue in FY 2017 compared to FY 2016. Sales and use tax increased substantially in 2015 compared to FY 2014 collections. The trend is moderately stable in 2016 as well. However, after two improved revenue years, we expect the growth rate move back to the norm. City staff regularly monitors city finances and make adjustments as necessary. The property tax collection which is normally 15 to 17 percent of the City's overall revenue is projected to be slightly higher in FY 2017 relative to FY 2016. Expenditures During the long and deep recession that hit our local economy particularly hard, the City's revenue collection abruptly declined more than expected. As a result, we had to deal with an on-going fiscal structural deficit for nearly a decade. During this period, the City Council embraced difficult fiscal actions including reduction in force as well as unfunding many vacancies with some in public safety. In the FY 2016 Budget as the revenues began to recover, the City Council reinstated and funded 7 of the unfunded sworn positions in the Police Department Budget. We will continue the same trend and will fill more authorized but unfunded positions in FY 2017. In FY 2017, it is projected that the structural deficit will continue and the City's overall budget faces a $3.97M deficit. The primary reason of this deficit is the operating cost of providing services to our community and includes salary increases that were negotiated with the City's bargaining units. We are fortunate that in FY 2017 our health insurance premiums remained flat. Otherwise, the structural deficit would have been larger. We will continue to evaluate expenditures and ensure we are on the path the Council charted for the City. __________________________________________________________________________________________________________ City of Pueblo A-2 2017 Budget Please note that the staffing numbers and related salaries listed in this recommended budget document are for informational purposes only. Actual staffing levels for positions within each department and related salaries will be formally adopted by City Council as part of the annual staffing and salary ordinance approval. Capital Expenditures & Capital Improvements The primary sources of revenue for capital projects are Highway User Tax Funds (HUTF), which are limited to the use of street maintenance; Lottery funds, which may only be used for parks and open spaces; utility user fees; investment income from the half-cent sales tax fund; insurance proceeds; and transfers from the General Fund.
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