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City of Hagerstown Fiscal Year 2018/2019

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City of Hagerstown Fiscal Year 2018/2019 CITY OF HAGERSTOWN CITY ADMINISTRATOR’S PROPOSED BUDGET Fiscal Year 2018 - 2019 July 1, 2018 - June 30, 2019 [THIS PAGE INTENTIONALLY LEFT BLANK] PREFACE SECTION Page Distinguished Budget Award i Budget Development Process ii City of Hagerstown Profile Community Profile iv Map - City of Hagerstown vii Map - State of Maryland viii Miscellaneous Statistics ix TABLE OF CONTENTS Page Page Preface Section Table of Contents Engineering and Parks 43 Distinguished Budget Award i Police Consolidated 47 Budget Development Process ii Fire 51 City of Hagerstown Profile Public Works 53 Community Profile iv Unallocated Expenses Map - City of Hagerstown vii Program Summary 56 Map - State of Maryland viii Debt Service 57 Miscellaneous Statistics ix Retiree Health Costs 57 Section 1 - Overview Inventory Adjustment 57 City Administrator's Message 1 CIP Appropriations 57 City Elected Officals & City Organizational Structure 38 Operating Transfers to Other Funds 57 Mayor & Council Goals & Priorities 39 Contingency Reserves 57 Departmental Goals 47 Contributions to Other Agencies 57 Organizational Narrative 65 Schedule of Public Functions 58 City Fund Structure (All) 66 Capital Expense Schedule 59 Section 2 - Governmental Funds Section 4 - Enterprise Funds Organizational Chart 1 Organizational Chart 1 Combined Statement of Revenues and Combining Income Statements 2 Expenditures 2 Electric Fund Section 3 - General Fund Program Description 3 Statement of Revenues, Expenditures Comparative Income Statement 5 and Changes in Fund Balance 1 Charts: Consumption & Rate Comparison 6 General Fund Charts Proposed Operating Revenues 7 Revenues and Expenditures 3 Capital Expense Schedule 8 Category of Expenditures 4 Water Fund Revenue Summary 5 Program Description 11 Property Tax Assessable Base Table 6 Comparative Income Statement 13 Proposed Revenues: Charts: Consumption & Rate Comparison 14 Property Taxes 7 Proposed Operating Revenues 15 Income and Other Taxes 8 Capital Expense Schedule 16 Licenses & Permits 9 Wastewater Fund Intergovernmental Revenues 10 Program Description 20 Charges for Current Services 11 Comparative Income Statement22 Fines & Forfeitures 12 Charts: Usage & Rate Comparison 23 Unallocated General Revenues 13 Proposed Operating Revenues 24 Transfers from Other Funds & Other Financing Sources 14 Capital Expense Schedule 25 Proposed Expenditures by Department: Parking Fund Administration Program Description 28 Mayor 15 Comparative Income Statement 30 City Council 17 Proposed Operating Revenues 31 Registration and Elections 19 Capital Expense Schedule 32 City Administrator 20 Golf Fund City Clerk 22 Program Description 33 Legal 24 Comparative Income Statement 35 Finance 26 Proposed Operating Revenues 36 IT and Support Services Capital Expense Schedule 37 Information Technology 28 Property Management Fund Support Services 30 Program Description 38 Human Resources 32 Comparative Income Statement 40 Communications 34 Proposed Operating Revenues 41 Planning and Code 36 Capital Expense Schedule 42 Community and Economic Development 39 TABLE OF CONTENTS (continued) Page Page Section 5 - Special Revenue Funds Organizational Chart 1 Wastewater Fund 38 Combined Statement of Revenues and Parking Fund 40 Expenditures 2 Golf Fund 42 Community Development Block Grant Property Management Fund 44 Program Description 3 Individual Project Descriptions Comparative Income Statement 5 General/CIP Fund 46 Operating Revenues 6 Electric Fund 118 Operating Expenses 7 Water Fund 138 Capital Expenses 9 Wastewater Fund 150 Other Special Revenue Funds Program Summary Parking Fund 166 Other Special Revenue Funds Program Summary 10 Golf Course Fund 170 Economic Redevelopment Fund - Program Description 11 Property Management Fund 172 Other Special Revenue Funds - Proposed Expenses and Revenues Section 9 -Schedule of Fees & Service Charges Economic Redevelopment Fund 13 City Clerk 1 Business Revolving Loan Fund 14 Support Services 1 Upper Floors Redevelopment Fund 15 Communications 1 Forest Conservation Fund 16 Department of Community and Economic Development Flexible Spending Fund 17 Community Development Block Grant 1 Excise Tax Fund 18 Business Revolving Loan Fund 1 Grant Fund 19 Market House 1 Section 6 - Service & Trust Funds Planning and Code Administration Combined Statement of Revenues and Planning 2 Expenditures 1 Code Administration 2 Organizational Chart 2 Engineering and Parks Program Description 2 Engineering 4 Program Financial Summary Parks and Recreation 4 Workers Compensation Fund 3 Recycling and Trash Collection 5 Health Care Fund 4 Police Department 5 Dental Care Fund 5 Fire Department 6 Bloom-Carlile Fund 6 Public Works 6 Section 7 - Financial Projections Enterprise Funds All Funds - Introduction 1 Parking Division General Fund 2 Parking Facilities 6 Enterprise Funds Utility Division Introduction: All Enterprise Funds 14 Electric Department 7 Electric Fund 15 Water Department 8 Water Fund 18 Wasterwater Department 9 Wastewater Fund 22 Section 10 - Fiscal Policies and Glossary Parking Fund 26 Fiscal Policies Golf Course Fund 29 Operating Budget Policy 1 Property Management Fund 31 Revenue Policy 1 Internal Service Funds Purchasing Policy 2 Health Care Fund 33 Investment Policy 2 Dental Care Fund 35 Debt Management Policy 3 Section 8 - Capital Improvement Program Capital Improvement Program 3 Program Summary 1 Enterprise Fund Dividend Transfer Policy 4 List of Projects Alphabetical by Project Name 5 Fund Balance/Retained Earnings Policy 4 Vehicle & Equipment Replacement Schedule 8 Grant Management Policy 5 All Funds - Funding Sources and Expenditures Charts 12 General Fund Agency Contribution Policy 6 All Funds - Expenditures Summary by Fund 13 Glossary 8 Supporting Summary Schedules by Fund General Fund/CIP Fund 14 Electric Fund 32 Water Fund 35 THE BUDGET DEVELOPMENT PROCESS FISCAL YEAR 2018/2019 Summary The City Administrator is required by the City Charter to submit a proposed budget to the Mayor and Council at least ninety (90) days prior to the beginning of the fiscal year. The Charter also states that the budget shall be adopted no later than June 1st of each year. In addition to the City’s operating budget, the City Administrator presents for Council’s review a five-year plan for capital improvement programs. Public hearings are scheduled and advance notices are published by Mayor and Council. The budget is approved and adopted in the form of an ordinance. Throughout the year, the City Administrator has the ability to approve transfers of budgeted amounts between departments within any fund. However, only Mayor and Council can approve changes in the total appropriation level through a budget amendment ordinance. Amendments to the budget are performed by the City throughout the year as needed. FY2019 Operating and Capital Budget Process Throughout the current fiscal year, the City Administrator and Department Managers have presented and discussed various budget agenda topics with Mayor and Council. The budget discussion topics took place between July 2017 through February 2018 and provided opportunities and guidance for the creation of the FY19 budget document. A listing of discussion topics and dates are located in the budget message in Section 1. During the month of December 2017, departmental management and staff conducted departmental reviews of the Capital Improvement Program (CIP) projects. The Department Managers obtained requests from departments, neighborhoods, and homeowners for CIP projects. To assist the City Administrator in determining and recommending projects for funding, priorities were placed on capital projects that impact the City’s facilities and infrastructure, safety and environment, legal provisions, and budget. During the same timeframe, Department Managers met with Budget staff to review individual departmental CIP requests. In addition, the first public hearing on CDBG funding needs was held on December 13, 2017. Budget review meetings began in January 2018 between Department Managers and the Budget Committee to consider departmental operating budget requests. In addition, discussions and/or meetings were held with Department Managers to review initial CIP projects for prioritization of timing and funding within department and City goals. From January 2018 through March 2018, priorities for the upcoming year were discussed and outlined. A number of requests for funding changes were discussed; and, requests that were approved by the City Administrator were incorporated into department budgets. Approved changes and proposed adjustments were then discussed with the departments. As a result of these meetings and deliberations, the Budget staff compiled the FY19 City Administrator’s Proposed Operating Budget and the Capital Improvements Program for FY19 - FY23 for presentation to Mayor and Council. On March 29, 2018, the City Administrator and Budget staff, in conjunction with City Management, will present the Mayor and Council with the FY19 City Administrator’s Proposed Budget for review. The Mayor and Council and the City’s senior management will work together from April 3, 2018 to May 22, 2018 to review and discuss the proposed budget and CIP projects. A public hearing will be scheduled for May 15, 2018 to discuss the Operating Budget, Capital Improvement Program (CIP), and property tax rates. A second public hearing will be scheduled for May 10, 2018 to discuss the Community Development Block Grant funding needs. PREFACE ii THE BUDGET DEVELOPMENT PROCESS FISCAL YEAR 2018/2019 Mayor and Council are scheduled to introduce
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