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Burlington: A Great Place to Live, Work and Play Annual Budget Fiscal Year 2014 - 2015 CITY COUNCIL Shane McCampbell, Mayor Becky Anderson, Mayor Pro Tem Robert Fleming Tim Scott Becky Shockley Burlington: A Great Place to Live, Work and Play Annual Budget Fiscal Year 2014 - 2015 CITY COUNCIL Shane McCampbell, Mayor Becky Anderson, Mayor Pro Tem Robert Fleming Tim Scott Becky Shockley PREPARED BY: Jim Ferneau, City Manager Stephanie Stuecker, Director of Administrative Services Annette Crowner, Accounting Supervisor TABLE OF CONTENTS INTRODUCTORY SECTION PAGE NO. Transmittal Letter 1 Vision and Values Statement 5 Budget Calendar 7 Basis of Accounting 8 Budget Amendment Process 11 Summary of All Funds 12 Explanation of Major Revenue Sources 14 Comparison of Revenues by Fund 26 Summary of Revenue by Fund 27 Comparison of Expenditures by Fund 32 Comparison of Expenditures by Program 34 Comparison of Expenditures by Type 36 Summary of Expenditures by Activity 38 Comparison Property Tax Asking 41 Current Year Taxes - How We Compare 42 DEPARTMENTAL SUMMARY Organizational Structure 43 Departmental Activity Schedules 44 GENERAL FUND 56 Fund Balance Summary 58 Revenue Detail Summary 59 Expenditure Detail: Public Safety Fire Administration 62 Fire Control 64 Fire Prevention 67 Disaster Control 69 Hazardous Materials 71 Airport Fire Control 73 Ambulance 75 Law Enforcement/Records 77 Patrol/Investigations 80 Communications 83 Crime Prevention 85 Security Guard 87 Animal Control 89 Special Investigations 91 Traffic Safety Grant 93 Building Code 95 Community Development Planning & Zoning 97 Culture & Recreation Auditorium 99 Welcome Center 102 Library 103 Park M & O 106 Forestry M & O 109 Park Swimming Pool 112 Recreation Activities 114 Municipal Band 117 Port of Burlington and Riverfront 119 Senior Center 121 Health & Social Services Human Rights Commission 123 Potter's Field 125 Public Works Public Works Admin 127 Engineering 129 Public Works Building 131 Transit Operation 133 Depot 136 Airport 138 General Government Executive Administration 140 City Council 142 Personnel 144 Legal 146 City Clerk 148 Finance Administration 150 Accounting 152 Computer Operations 154 Insurance 156 City Hall 158 General Government Contingency 160 SPECIAL REVENUE FUNDS Road Use Tax 163 Fund Balance Summary 164 Revenue Detail Summary 165 Expenditure Detail: Street Maintenance 166 Snow Removal 169 Traffic Signals/Public Lighting 171 Sales Tax Fund 173 Fund Balance Summary 174 Revenue Detail Summary 175 Expenditure Detail: Sales Tax 176 Community Development Fund 178 Fund Balance Summary 179 Revenue Detail Summary 180 Expenditure Summary 181 Expenditure Detail: Community Development 182 Hotel/Motel Tax Fund 183 Fund Balance Summary 184 Revenue Detail Summary 185 Expenditure Summary 186 Expenditure Detail: Hotel/Motel Tax Fund 187 Bridge Fund: 190 Fund Balance Summary 191 Revenue Detail Summary 192 Expenditure Detail: Bridge Fund 193 Employee Benefits 195 Fund Balance Summary 196 Revenue Detail Summary 197 Downtown SSMID 198 Fund Balance Summary 199 Revenue Detail Summary 200 Expenditure Detail: Downtown SSMID 201 Emergency Levy 202 Fund Balance Summary 203 Revenue Detail Summary 204 Expenditure Detail: Emergency Fund 205 Equipment Replacement Fund 206 Fund Balance Summary 207 Revenue Detail Summary 208 Expenditure Detail: Equipment Replacement 209 Tax Increment Fund 211 Fund Balance Summary 212 Revenue Detail Summary 213 Expenditure Detail: Tax Increment 214 DEBT SERVICE FUND 217 Fund Balance Summary 218 Revenue Detail Summary 219 Fiscal Year 2013 Actual Debt Limit 220 Debt Margin and Credit Rating Comparison 221 Fiscal Year 2015 Projected Debt Limit 222 Expenditure Detail: Schedule of General Obligation Bond Indebtedness 223 2006 GO Bonds 224 2006 TIF 224 2007 GO Bond 225 2008 Federal Mogul 225 2010 Aquatic Center Note 226 2011 GO Bond 226 2012B GO Refunding 227 2012F GO Refunding 227 2013A Taxable GO Ban 228 2013B Taxable GO Ban 228 2013C GO Refunding 229 2013D GO Refunding 230 2014A GO Bond 231 2014B GO Refunding 232 TRUST AND AGENCY FUND 233 Fund Balance Summary 234 Revenue Detail Summary 235 Expenditure Detail: Miscellaneous Trust and Agency 236 CAPITAL PROJECTS FUND 237 Fund Balance Summary 238 Revenue Detail Summary 239 Expenditure Detail: Capital Projects 240 Project Summary 2015-2019 Capital Improvements Program (CIP) 244 2015 CIP Projects by Funding Source 245 2016 CIP Projects by Funding Source 246 2017 CIP Projects by Funding Source 247 2018 CIP Projects by Funding Source 248 2019 CIP Projects by Funding Source 249 ENTERPRISE FUND Parking Fund 251 Fund Balance Summary 252 Revenue Detail Summary 253 Expenditure Detail: Parking Enforcement 254 Parking Maintenance 256 Golf Course Fund 258 Fund Balance Summary 259 Revenue Detail Summary 260 Expenditure Detail: Flint Hills Golf Course 261 Solid Waste Management 265 Fund Balance Summary 266 Revenue Detail Summary 267 Expenditure Detail: Solid Waste Management 268 Sewer Fund 271 Fund Balance Summary 272 Revenue Detail Summary 273 Expenditure Detail: Wastewater Treatment Administration 274 Wastewater Treatment Operation 276 Sanitary Sewer Maintenance 279 Wastewater Treatment Facility 282 Cascade Sewer Seperation 284 Market, Angular, South and Locust 286 Sewer Upgrades 288 Sewer Revenue Bonds 290 Rec Plex 291 Fund Balance Summary 292 Revenue Detail Summary 293 Expenditure Detail: Rec Plex 294 Water Fund 298 Fund Balance Summary 299 Revenue Detail Summary 300 Expenditure Detail: Waterworks 301 INTERNAL SERVICE FUND Property Maintenance Fund 303 Fund Balance Summary 304 Revenue Detail Summary 305 Expenditure Detail: Property Maintenance 306 Vehicle Maintenance Fund 309 Fund Balance Summary 310 Revenue Detail Summary 311 Expenditure Detail: Vehicle Maintenance 312 Insurance Reserve 315 Fund Balance Summary 316 Revenue Detail Summary 317 Expenditure Detail: Self-Insurance Losses 318 Community Profile 320 Miscellaneous Statistical Data 329 Financial Policies 330 Glossary 344 Burlington: A Great Place to Live, Work and Play February 14, 2014 TO: The Honorable Mayor and City Council FROM: City Manager Jim Ferneau RE: Budget Fiscal Year 2014‐2015 Overall Considerations The Fiscal Year 2014 budget was approved in March 2013, and was planned at that time to be part of a 5 year plan to eliminate all deficit fund balances and establish a 15% cash balance in the General fund, with that 5 year process culminating at the end of the FY2018 budget June 30, 2018. We accomplished this through a combination of budget reductions, a property tax levy increase of $0.75, a wide assortment of fee increases, and the implementation of a utility franchise fee designed to increase revenues by $600,000 in FY14 and by over $850,000 in FY15 and beyond. Our target cash balances and deficit reductions were substantially achieved at the end of FY2013 on June 30, 2013. This had us on track to achieve our 5 year goals moving forward. Several obstacles have arisen in the mean‐time that has caused us to need to adjust our time‐frame for achieving goals. The first hurdle was the comprehensive property tax system overhaul that occurred in May 2013 in the state of Iowa. The property tax bill did not impact revenue for FY14 and had minimal impact for FY15, but is expected to have an ever‐increasing impact on budget years FY16 and beyond. We have updated our property tax revenue forecasts as a result by reducing our anticipated future assessed valuation increase from the 15 year historical trend of 1.7% annual growth to a lower, 1.1% annual growth amount. The next hurdle that we had to overcome was a reverse referendum process that led to a vote on the proposed utility franchise fee in August 2013. The referendum failed, leading to a loss of $600,000 of revenue in FY14, $850,000 in FY15, and growing to a project loss of approximately $1,000,000 in FY18 projected revenue. The next hurdle occurred in August as well, with the discovery of Emerald Ash Borer (EAB) in our community. We had this as a potential risk over the next 3 years, but this has led to the need to begin elimination of Ash trees in our community immediately. Our anticipated unbudgeted expenditure in FY14 for EAB is $175,000 at this time. Our ongoing anticipated expenditures over the next 5 years will be on average $150‐$175,000 annually. City of Burlington 400 Washington St Burlington, IA 52601 Burlington: A Great Place to Live, Work and Play We also had to address a shortfall in revenues for Local Option Sales Tax (LOST). Rather than seeing an increase in revenues from FY2012, when LOST collected $4.1 million, we ended FY13 with revenue collection of $3.95 million and received an estimate for FY14 that projects to about $3.77 million in collections, more than $500,000 below what we had originally budgeted. We have had to take into account this reduced number not only for FY14 projections, but have reduced our trend for the next 5 years by approximately $500,000 annually as well. We have adjusted our expectations for a variety of other revenue and expenditures during the last few months. For example, our ambulance revenue has seen a decline even after implementing a significant rate increase. Our call load has remained steady, but our mixture of reimbursements has continued to reflect a larger portion being Medicare/Medicaid reimbursements; these two categories reimburse at a significantly lower level than private insurance providers, and we are anticipating that this trend will continue over the next several years. We have found our gambling revenues to be consistently below budget, and have revised our expectations to reflect a lower number in FY14. Our cable franchise agreement has gone from being subject to our rules to subject to state rules. This means we will continue to receive our 5% franchise fee, but the definition of what counts towards having the fee applied will be slightly limited (we are anticipating the change to have about a $10,000 annual impact, but will have to monitor this over time to see how well we do to meeting this goal).
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