Proposed Operating & Capital Budget • 2016
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CITY OF LAKE CHARLES, LOUISIANA PROPOSED OPERATING & CAPITAL BUDGET 2016–2017 MAYOR HONORABLE RANDY ROACH CITY COUNCIL MARY MORRIS PRESIDENT STUART WEATHERFORD District A RODNEY GEYEN District E District C LUVERTHA W. AUGUST MARK ECKARD District B VICE-PRESIDENT District G JOHN IEYOUB DANA CARL JACKSON District D District F Prepared By: Finance Administration Karen D. Harrell, Director of Finance August 2016 THIS PAGE INTENTIONALLY LEFT BLANK 2 CITY OF LAKE CHARLES 2016-2017 ANNUAL BUDGET ELECTED CITY OFFICIALS PRESENT TERM PRESENT TERM BEGAN AS BEGINS EXPIRES MEMBER MAYOR Randy Roach July 1, 2013 June 30, 2017 May 2000 CITY COUNCIL Rodney Geyen, President July 1, 2013 June 30, 2017 July 1997 John Ieyoub, Vice-President July 1, 2013 June 30, 2017 July 2009 Stuart Weatherford July 1, 2013 June 30, 2017 July 2005 Luvertha August July 1, 2013 June 30, 2017 January 2008 Mark Eckard July 1, 2013 June 30, 2017 July 2009 Mary Morris July 1, 2013 June 30, 2017 July 2013 Dana Carl Jackson July 1, 2013 June 30, 2017 July 2005 CITY JUDGES Jamie B. Bice January 1, 2015 December 31, 2020 January 1, 2015 John S. Hood January 1, 2015 December 31, 2020 January 1, 1985 WARD 3 MARSHAL Joseph Alcede III January 1, 2015 December 31, 2020 November 16, 2004 3 CITY OF LAKE CHARLES 2016-2017 ANNUAL BUDGET DEPARTMENT HEADS EMPLOYEE DEPARTMENT JOHN CARDONE MAYOR'S OFFICE BILLY LOFTIN, JR LEGAL KAREN HARRELL FINANCE WENDY GOODWIN HUMAN RESOURCES KEITH MURRAY FIRE DON DIXON POLICE MISTER EDWARDS PUBLIC WORKS PERCY BROWN COMMUNITY SERVICES 4 City of Lake Charles Organization Chart City Court Mayor City Council City Administrator DBE Liaison Officer City Attorney Clerk of the Council Planning Police Fire Community Downtown Permit Center Planning/Zoning Development Development Summer Feeding Property Standards Americorps Public Works Community Service / Human Resources Finance Recreation Building Maintenance Employee Relations/ Communications & Civic Center Accounting Insurance Benefits Traffic Beautification Mallard Cove Risk Management Purchasing Solid Waste Recreation/Parks Utility Billing Streets Arts/Culture Print Shop Transit Information Systems Trash Vehicle Maintenance Key Mayor Water Administration Legal Wastewater Department Heads Division Heads Engineering Supervisors 5 City Charter Positions GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Lake Charles Louisiana For the Fiscal Year Beginning October 1, 2015 Executive Director 6 CITY OF LAKE CHARLES FISCAL YEAR 2016-2017 ANNUAL BUDGET TABLE OF CONTENTS PAGE GENERAL INFORMATION Elected City Officials 3 Department Heads 4 Organization Chart 5 Distinguished Budget Presentation Award 6 Table of Contents 7 INTRODUCTORY SECTION Submission Letter to City Council 13 Structure and Budgetary Organization 34 Legal Requirements 36 Methods of Financial Infrastructure and Major Capital Improvements 37 Statement of Budgetary and Financial Policy 38 Budgetary Process 39 Debt Statement 43 Awards and Acknowledgements 44 Fact Sheet File # 341-16 45 BUDGET SUMMARY Combined Annual Budget Summary 48 Chart of Annual Budget Summary 49 GENERAL FUND General Fund Summary 52 General Fund Revenue and Expenditure Summary 53 Schedule of Revenues 56 Operating Expenditures and Transfers 61 General Government 62 Mayor's Office 64 City Council 66 City Marshal 68 City Court 70 Legal Services 72 Finance 74 Administration Services 76 Accounting 78 Purchasing 80 Human Resources 82 7 CITY OF LAKE CHARLES FISCAL YEAR 2016-2017 ANNUAL BUDGET TABLE OF CONTENTS PAGE Fire 84 Administration 86 Fire Suppression 88 Cajun Country 90 Fire Support 92 Police 94 Administration 96 Police Service 98 Public Works 100 Administration 102 Streets 104 Trash Collection 106 Solid Waste - General 108 Vehicle Maintenance 110 Building Maintenance 112 Communication and Traffic 114 Grounds Maintenance 116 Planning and Development 118 Administration 120 Permit Center 122 Downtown/Lakefront Development 124 General Services 126 Administration 128 Building Services 130 Printing Services 132 Information Technology 134 1911 City Hall 136 Community Service Grants 138 Dept. 21 Transfers 140 SPECIAL REVENUE FUNDS Special Revenue Fund Summary 144 Fund 117 Wastewater 146 Fund 119 Riverboat Gaming 148 Fund 105 .25% Sales Tax 2016 150 Fund 127 Recreation 152 Fund 107 Central School 158 Fund 104 Arts/Special Events 160 Fund 110 Community Development 162 Fund 126 HUD-Housing Programs 164 8 CITY OF LAKE CHARLES FISCAL YEAR 2016-2017 ANNUAL BUDGET TABLE OF CONTENTS PAGE Fund 122 Summer Food Service Program 166 Fund 123 AmeriCorps Grant 168 Fund Public Safety Grants 170 Fund 131 D.A.R.E. Grant 172 Fund 133 COPS Hiring Grant 174 Fund Disaster Recovery Fund 176 Fund 120 Facility Renewal Fund 178 DEBT SERVICE Debt Service Summary 182 Fund 205 Police Benefit Guarantee 184 Fund 210 LCDA Sewer Bonds 186 Fund 212 2007 $35m LCDA Public Improvement Bonds 188 Fund 213 2014 $15.825m Refunding Public Improvement Bonds 190 Fund 214 2010 $40m LCDA Public Improvement Bonds 192 Fund 216 2011 $21m DEQ Sewer Loan 194 Fund 225 School Board Sales Tax District 3 196 Fund 232 2011 $3m CPTA City Court Complex 198 ENTERPRISE FUNDS Enterprise Funds Summary 202 Fund 401 Transit 203 Fund 411 Transit Capital 207 Fund 405 Water Utility 210 Water Business Office 211 Water Production and Distribution 213 Fund 402 Civic Center 215 Fund 410 Civic Center Capital 218 Fund 403 Mallard Cove Golf Course 221 INTERNAL SERVICE FUNDS Internal Service Fund Summary 226 Fund 501 Risk Management 227 Fund 503 Employee Group Insurance 229 CAPITAL BUDGET Capital Budget 232 Capital Budget Authorization Schedule - Capital Projects 234 Funds and Related Sources Capital Budget Additional Schedules and Exhibits - Project 237 Reauthorization Schedule Capital Budget Additional Schedules and Exhibits - Bond 238 9 CITY OF LAKE CHARLES FISCAL YEAR 2016-2017 ANNUAL BUDGET TABLE OF CONTENTS PAGE Capital Projects Authorization Schedule Additional Schedules and Exhibits-Capital Budget - Description 239 of Major Financing Sources-Capital Projects Fund and Related Sources Impact of Capital Improvements on Operating Budget 241 Impact of Department Capital Outlay on Operating Budget 243 Departmental Capital Outlay Summary 244 Five Year Capital Improvement Plan 250 EXHIBITS Summary Budgeted Personnel and Position Totals 268 Detailed Personnel Roster 270 Glossary of Terms 278 Exhibit A - 2016 SWLA Projects 281 MISCELLANEOUS STATISTICS General Fund Revenue Comparison 346 General Fund Expenditure Comparison by Department 347 General Fund Expenditure Comparison by Category 348 General Fund Expenditures Fringe Benefit Costs 349 Net Position by Component-Last Ten Fiscal Years 350 Change in Net Position - Last Ten Fiscal Years 352 Governmental Activities Tax Revenues by Source - Last Ten 354 Fiscal Years Fund Balances of Governmental Funds - Last Ten Fiscal Years 355 Changes in Fund Balances of Governmental Funds - Last Ten 356 Fiscal Years Assessed and Estimated Actual Value of Taxable Property 357 Property Tax Millage Rates - Last Ten Fiscal Years 358 Principal Property Taxpayers 359 Sales Tax Rates - Last Ten Fiscal Years 360 Principal Sales Taxpayers 361 Ratios of Outstanding Debt by Type 362 Computation of Legal Debt Margin 363 Demographic and Economic Statistics 364 Principal Employers in the MSA 365 Operating Indicators by Function - Last Ten Fiscal Years 366 Capital Asset Statistics by Function - Last Ten Fiscal Years 367 10 INTRODUCTORY SECTION 11 THIS PAGE INTENTIONALLY LEFT BLANK 12 CITY OF LAKE CHARLES RANDY RO ACH 326 Pujo Street P.O. Box 3706 D EPARTMENT OF FINANCE MAYOR Lake Charles, LA 70602-3706 KAREN D. HARRELL, DIRECTOR 337-491-1251 • FAX 337-491-1225 August 12, 2016 Member of the City Council P.O. Box 1178 Lake Charles, LA 70602 RE: Fiscal Year 2016 - 2017 Operating and Capital Budget Dear City Council Members: Attached is the City's proposed Operating and Capital Budget for the 2016 - 2017 fiscal year, which is submitted for your review and consideration as provided under Article VI , Section 6-03 of our Home Rule Charter. In preparation of the budget, the various City departments provide input into their financial needs for the next fiscal year. Our city employees are on the front line in meeting the challenges of growth and development as a result of unprecedented economic activity. Lake Charles, for six consecutive years, has been named the 2016 Market of the Year by Southern Business & Development Magazine for attracting industrial projects. The June 2016 SWLA Project Report update by the Southwest Louisiana Economic Development Alliance indicates that there are $43.3 billion in projects currently under construction within the 5 parish area, and an additional $58 billion in projects are announced and are pending final approval. Their complete report is included in the exhibit section. Statistics released July 29, 2016 by Louisiana Workforce Commission shows that the Lake Charles MSA nonfarm employment increased by 3,200 jobs over the year and it is 1 the 60 h consecutive month for over the year increases. This compares to a statewide loss of 15,400 jobs over the year. Lake Charles MSA unemployment rate for June 2016 was 5.6% compared to Louisiana's rate of 7 percent. It is apparent that the diverse economy in Southwest Louisiana is faring better than many areas of our state. The State of Louisiana, in an effort to balance their budget, implemented an additional 1 percent sales tax effective April 1, 2016 and has aggressively been reviewing Louisiana's tax structure in an effort to stabilize the economy in the midst of the oil slump. Lake Charles continues to feel the effects of the economic expansion as it relates to housing, education, traffic control and infrastructure needs. Local and state governments are working together to find solutions to meet the ever growing demands for services within the area. Cherishing the Past, 13Embracing the Future CITY OF LAKE CHARLES FISCAL YEAR 2016 - 2017 BUDGET MESSAGE Current Financial Outlook In October 2015, the voters approved the levy of an additional quarter percent sales tax for the City of Lake Charles.