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City of Marysville Washington

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City of Marysville Washington 2015—2016 BIENNIAL BUDGET CITY OF MARYSVILLE WASHINGTON Experience Marysville - Live, Work, Play Prepared by: Sandy Langdon Finance Director Denise Gritton Financial Planning Manager City of Marysville 1049 State Avenue Marysville, WA 360-363-8000 CITY OF MARYSVILLE 2015-2016 BIENNIAL BUDGET INTRODUCTORY TABLE OF CONTENTS FUND PAGE DESCRIPTION Mayor’s Budget Message ……………... III City Officials ……………... VIII Organization chart ……………... IX History ……………... X Mission Statement ……………... XI Budgets & Budgetary Accounting ……………... XII Budget Process ……………... XIII Financial Structure ……………... XIII Flow of Funds ……………... XVI Basis of Accounting ……………... XVII Department Narratives ……………... XVIII Budget Policies ……………... XIX Capital Improvement Summary by Fund ……………... XXVII BUDGET SUMMARY 2015 Revenue/Expenditures by Fund ……………... XXIX 2016 Revenue/Expenditures by Fund ……………... XXX GENERAL FUND 001 General Fund Revenue Summary ……………... XXXI General Fund Expenditure Summary ……………... XXXII General Fund by Dept Summary ……………... XXXIII Department 01 Council ……………... 1-1 02 Municipal Court ……………... 1-3 03 Executive ……………... 1-7 04 Finance ……………... 1-13 05 Legal ……………... 1-21 06 Human Resource ……………... 1-25 07 Community Development ……………... 1-29 08 Police ……………... 1-33 09 Fire ……………... 1-63 10 Parks & Recreation ……………... 1-65 11 Engineering ……………... 1-74 12 Library ……………... 1-78 13 Public Safety Building ……………... 1-80 99 Non-Departmental ……………... 1-82 005 Capital Reserve ……………... 1-86 SPECIAL REVENUE FUNDS Street 101 ……………... 2-1 Arterial Street 102 ……………... 2-5 I CITY OF MARYSVILLE 2015-2016 BIENNIAL BUDGET INTRODUCTORY TABLE OF CONTENTS FUND PAGE Drug Enforcement 103 ……………... 2-7 Tribal Gaming 104 ……………... 2-9 Tourism Development 105 ……………... 2-11 Baxter Community Center Appreciation 106 ……………... 2-13 Marysville Technology Infrastructure 108 ……………... 2-15 Community Development Block Grant 109 ……………... 2-17 Growth Management - REET I 110 ……………... 2-19 Growth Management - REET II 111 ……………... 2-21 Transportation Benefit District 114 ……………... 2-23 DEBT SERVICE FUNDS LTGO BOND 2007, 2010 and 2013 206 ……………... 3-1 LID 71 271 ……………... 3-9 CAPITAL PROJECT FUNDS Streets Construction Fund 305 ……………... 4-1 Parks Construction Fund 310 ……………... 4-3 ENTERPRISE FUNDS Waterworks Utility 401 ……………... 5-1 Utility Construction 402 ……………... 5-7 Solid Waste Management 410 ……………... 5-9 Golf Course Operating 420 ……………... 5-13 Waterworks Debt Service 450 ……………... 5-19 INTERNAL SERVICE FUNDS Fleet Services 501 ……………... 6-1 Facilities Maintenance 502 ……………... 6-7 Information Services 503 ……………... 6-11 FINANCIAL SUMMARY Budget Summary - Sources & Uses – All Funds ……………... 7-1 General Taxing Authority ……………... 7-4 Property Tax Comparison/Distribution ……………... 7-5 Analysis of Sources ……………... 7-7 Long Term Debt ……………... 7-17 PERSONNEL Personnel Summary (FTE’s) ……………... 8-1 Labor Relations ……………... 8-10 Salary Schedules ……………... 8-11 SUPPLEMENTAL INFORMATION ……………... 9-1 GLOSSARY ……………... 10-1 II CITY OF MARYSVILLE 2015-2016 BIENNIAL BUDGET INTRODUCTORY OFFICE OF THE MAYOR Jon Nehring 1049 State Avenue Marysville, Washington 98270 Phone (360) 363-8000 Fax (360) 651-5033 marysvillewa.gov . Mayor’s 2015/2016 Preliminary Budget Message Date: November 3, 2014 To: Citizens of Marysville and City Councilmembers From: Honorable Mayor Jon Nehring I am pleased to present to the citizens of Marysville and the City Council the sixth balanced budget of my administration and the city’s first biennial budget. The City’s financial condition continues to strengthen—the result of a recovering economy, growing community and careful financial planning. I am proud of our progress and believe that the current budget maintains financial prudence and discipline, while allowing progress on strategic initiatives that are important to our community. The biennial budget requires us to develop a planning budget spanning two years, and encourages us to anticipate both opportunities and challenges in the years ahead. I believe that longer term planning will further enhance our financial stability and allow us to better serve our community. Looking Forward We must make progress on several key initiatives to respond to community needs. These are priorities that are critical to our community’s growth and progress. These include solutions to train traffic, downtown revitalization, street maintenance, replacement and expansion of aging city facilities, and promoting public safety and security. We continue to seek outside funding sources from the state and federal government, but recognize that many of these challenges will entail city resources. The increased train traffic from coal and oil trains have hampered mobility in Marysville. This biennial budget provides funding for the design and permitting of an interchange at SR529 and I-5 to improve traffic flow as well as provide a critical access point unimpaired by trains. The construction has a price tag of $30 to $50 million and we are working hard to find state and federal funding sources. Downtown revitalization and waterfront access has been identified as a community priority for many years. The city has continued to assemble properties and pursue cleanup to enable shoreline access and redevelopment on these sites. In addition, we have worked on attracting people into the downtown through civic improvements and development of recreational opportunities. The biennial budget continues this initiative with progress on trails, downtown spaces and property assembly and cleanup. Street maintenance is a clear priority for our citizens. Last April, voters in Marysville approved a Transportation Benefit District, funded by a .2% increase in sales tax within the city that will be dedicated to street maintenance and improvements. This budget provides additional resources for maintaining our rights of way in order to promote safety, mobility and street image within our community. III CITY OF MARYSVILLE 2015-2016 BIENNIAL BUDGET INTRODUCTORY Our city facilities are in need of attention. Most dire is the Public Safety building, built 27 years ago with a community 1/10th our current size. The Public Safety building provides space for Police, Fire, Investigations, jail, records and evidence. This biennial budget includes funds to determine future needs of this facility. Earlier this year the City adopted a biennial budget process to assist with future planning and capitalize on efficiencies. The budget I present to you is a two year budget for 2015 and 2016. 2015 Prior 2016 Prior Amended Preliminary Preliminary Year % Year % Fund Type Description 2014 Budget 2015 Budget 2016 Budget Change Change General General 42,388,524 44,102,196 45,099,153 4.0% 2.3% General Reserves - 1,400,000 - -100.0% Special Revenue Streets 4,268,541 4,212,114 4,362,965 -1.3% 3.6% Arterial Streets - 2,100,000 1,600,000 -23.8% Marysville TBD 600,000 1,604,008 1,604,008 167.3% 0.0% Other Special Revenue 1,798,850 2,168,854 2,179,740 20.6% 0.5% Debt Service LTGO 3,994,495 3,348,315 3,296,889 -16.2% -1.5% Capital Projects Streets Construction 5,505,836 9,780,139 1,157,164 77.6% -88.2% Parks Construction 707,207 921,386 146,987 30.3% -84.0% LID 371 200,000 - - -100.0% Enterprise Water/Sewer Operating 25,492,225 26,344,943 26,123,929 3.3% -0.8% Utility Construction 9,718,000 8,235,000 3,595,000 -15.3% -56.3% Solid Waste Management 7,249,782 7,777,758 8,433,122 7.3% 8.4% Golf Course Operating 1,274,175 1,258,855 1,278,551 -1.2% 1.6% Water/Sewer Debt Svc. 12,777,918 10,203,260 5,319,188 -20.1% -47.9% Internal Service Fleet Services 2,314,013 3,315,649 4,107,959 43.3% 23.9% Facilities Maintenance 317,936 319,264 333,873 0.4% 4.6% Information Services 858,213 1,004,266 1,036,398 17.0% 3.2% Total Operating Budget 119,465,715 128,096,007 109,674,926 7.2% -14.4% Assumptions Revenues The 2015/2016 Preliminary Biennial budget continues to take a conservative approach to revenue estimates. The retail base has seen a gradual climb most recently with the additions of Walmart, O’Brien Honda, and Walgreens. This increase assists with diversifying the city’s funding sources, increasing our financial stability. General Fund 2015/2016 Preliminary Budget 50,000,000 Fines & Forfeits & Misc. 45,000,000 40,000,000 14% 14% Service Charges 35,000,000 Grants & State Revenues 30,000,000 15% 15% 25,000,000 Construction & Other 26% Permits 20,000,000 27% Business & Other Taxes 15,000,000 10,000,000 36% 35% Sales Tax 5,000,000 0 Property Tax 2015 2016 IV CITY OF MARYSVILLE 2015-2016 BIENNIAL BUDGET INTRODUCTORY Property tax assessments are estimated to rise for the 2015 tax year, the second year after a long, steep, downhill slide. 2015 and 2016 estimates remain conservative. Sales tax has taken some leaps with new retail and construction this past year. We have estimated 9.6% growth for 2015, and 4.1% for 2016 which we believe are realistic projections based on current retail openings and development permitting. Revenue assumptions for the 2015/2016 Biennial continue under the same guidelines that have been exercised over the past several years. This budget proposal does not anticipate the state allowed increase of 1% for property tax levy. It does anticipate the Emergency Management Services levy allowance of a 1% increase. We have included a 2% increase for water/sewer/storm as allowed per city code to construct necessary capital improvements in the utility system, while maintaining rate stability. The solid waste management rates will remain at 2014 rates until the rate review completion in the 2015/2016 biennium. Expenses/Expenditures In response to the funding shortfalls caused by the Great Recession, the City delayed infrastructure replacement and maintenance for our fleet, facilities, and technology. The 2014 budget helped re- establish maintenance and replacement funds and I am pleased to say that technology will be back on track by year end 2015. Facilities maintenance is improving and fleet replacement is now our priority.
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