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Approved Budget for Fiscal Year 2018

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Approved Budget for Fiscal Year 2018 Approved Budget For Fiscal Year 2018 07/01/2017 City of Bozeman, Montana City of Bozeman, MT 1 FY18 Approved Budget City of Bozeman, MT 2 FY18 Approved Budget CITY OF BOZEMAN, MONTANA FISCAL YEAR 2017-2018 APPROVED OPERATING AND CAPITAL BUDGET CITY COMMISSION Carson Taylor— Mayor Cynthia Andrus—Deputy Mayor Jeff Krauss— Commissioner Chris Mehl—Commissioner I-Ho Pomeroy- Commissioner CITY MANAGER Dennis M. Taylor CITY STAFF Anna Rosenberry, CPA—Assistant City Manager Robin Crough—City Clerk City of Bozeman, MT 3 FY18 Approved Budget CITIZEN REVIEW AND PARTICIPATION ______________________________________________________________________________________________ The City encourages open and transparent government—and offers multiple ways to access this document in an effort to better inform city residents and property owners. • This document is available on the City of Bozeman’s website at www.bozeman.net, and • It is also available for review in the office of the City Clerk of the City of Bozeman during regular business hours (8 a.m. to 5 p.m. Monday through Friday) at 121 N. Rouse, Bozeman, Montana, and • It is available for review at the Bozeman Public Library in hard-copy form or via a library computer, and • Copies may be purchased from the Finance Department, 121 N. Rouse, Bozeman, Montana for $50. The public is strongly encouraged to attend all work sessions and public hearings held prior to final adoption of the budget. • Notices for these meetings are published in the legal advertisements of the Bozeman Daily Chronicle newspaper, and • Notices are also posted on the City’s website at www.bozeman.net. • Public Meetings of the City Commission are broadcast live on local-cable Channel 190. Meetings are also re-broadcast throughout the week. • Public Meetings are streamed live on the City’s website at www.bozeman.net. City of Bozeman, MT 4 FY18 Approved Budget DISTINGUISHED BUDGET PRESENTATION AWARD ______________________________________________________________________ The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Budget Presentation to the City of Bozeman for its annual budget for the fiscal year beginning July 1, 2016. The City has received this award for each budget it has prepared in the past 26 years. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. Distinguished Budget Presentation Award City of Bozeman, MT 5 FY18 Approved Budget City of Bozeman, MT 6 FY18 Approved Budget Contents CITIZEN REVIEW & PARTICIPATION 4 DISTINGUISHED BUDGET PRESENTATION AWARD 5 CITY MANAGER’S BUDGET MESSAGE 11 COMMUNITY, DEMOGRAPHIC, & STATISTICAL INFORMATION 18 POPULATION 19 CORE VALUES 22 VISION, MISSION, AND GOALS 23 PLANNING PROCESSES 24 FINANCIAL POLICIES 25 BUDGET DEVELOPMENT & ADMINISTRATION 25 REVENUE COLLECTION 26 EXPENDITURES AND PAYMENTS 27 DEBT ADMINISTRATION 29 RESERVES AND FUND BALANCES 30 FINANCIAL REPORTING & ACCOUNTING 31 FINANCIAL STRUCTURE 33 THE BUDGET PROCESS 37 CITY ORGANIZATIONAL CHART 42 FINANCIAL SUMMARY 43 CHANGES IN FUND BALANCE/WORKING CAPITAL 44 MILL LEVIES & MILL VALUES 46 APPROPRIATIONS BY TYPE 47 APPROPRIATIONS BY FUND 48 REVENUES BY SOURCE 49 City of Bozeman, MT 7 FY18 Approved Budget LEGAL DEBT LIMIT & BOND RATINGS 50 REVENUE DETAILS 51 REVENUE TRENDS & ANALYSIS 53 EXPENDITURE DETAILS 59 EXPENDITURE TRENDS & ANALYSIS 61 FUND BALANCES/WORKING CAPITAL TRENDS & ANALYSIS 68 REVENUE & EXPENDITURE DETAILS FOR EACH FUND 73 CITY LONG RANGE FINANCIAL PLANS 90 CITY COMMISSION 91 CITY MANAGER 94 MUNICIPAL COURT 97 CITY ATTORNEY 101 FINANCE 105 COMMUNITY DEVELOPMENT 110 FACILITIES MANAGEMENT 113 INFORMATION TECHNOLOGY 116 HUMAN RESOURCES 119 POLICE 122 FIRE 129 BUILDING INSPECTION 133 PARKING 137 PUBLIC WORKS ADMINISTRATION 140 STREETS 144 STORMWATER 150 WATER TREATMENT PLANT 153 WATER OPERATIONS 157 WASTEWATER OPERATIONS 161 City of Bozeman, MT 8 FY18 Approved Budget WATER RECLAMATION FACILITY (WASTEWATER PLANT) 164 SOLID WASTE COLLECTION & RECYCLING 168 SOLID WASTE DISPOSAL 171 VEHICLE MAINTENANCE 174 CEMETERY 177 PARKS 181 FORESTRY 186 LIBRARY 190 RECREATION 194 COMMUNITY SERVICES 200 NON-DEPARTMENTAL 204 GENERAL OBLIGATION (G.O.) BONDS DEBT SERVICE 207 SPECIAL IMPROVEMENT DISTRICT (SID) REVOLVING FUND 210 SPECIAL DISTRICT DEBT 213 APPENDIX 216 CAPITAL EXPENDITURES SUMMARY 217 UTILITY RATE INCREASES 220 US CONSUMER PRICE INDEX 221 TRAILS, OPEN SPACE & PARKS BOND SCHEDULE 222 LIBRARY G.O. BOND SCHEDULE 226 TAX INCREMENT URBAN RENEWAL REVENUE BOND SCHEDULE 227 STAFFING SUMMARY 228 GLOSSARY OF KEY TERMS 230 City of Bozeman, MT 9 FY18 Approved Budget City of Bozeman, MT 10 FY18 Approved Budget July 1, 2017 Bozeman City Commission: I am pleased to present to you the Approved Budget for Fiscal Year 2017-2018 (FY18). This budget represents the thoughtful work of dozens of people in developing the spending plan for our organization for the coming fiscal year. Overview: Bozeman is a vital, growing and changing city. In my brief tenure with the city of Bozeman, I have been focused on bringing forward a budget that permits the city to live within our means, while at the same time attempts to help the city organization cope with our community’s rapid growth and change. Significant changes during the past 12 months 1. Continued Growth – Our community’s most recent evidence of continued growth includes the US Census data showing an estimated population increase of 4.3% this year, on top of the 4.2% increase for last year. We see strong building permit activity and increased traffic counts and congestion on City streets. So much of our budget recommendation is made in response to the prolonged growth that Bozeman continues to experience. 2. New Fuel Tax Dollars – As a result of the legislature’s adoption of House Bill 273, the City will receive approximately $266,000 in additional state fuel tax funding in FY18. This amount is expected to increase to nearly $700,000 in FY19. We are recommend a reducing the amount of Arterial & Collector District assessment increase because of this new funding source. 3. Marsy’s Law Implementation – In order to respond to the requirements of the Marsy’s Law provisions for victims of crimes, we recommend that a half-time position in the City Attorney’s office be increased to full-time, support be given for an increase in the County’s Victim’s Services programs, and to proceed with software implementations within our City Attorney’s office that were approved in FY17. City of Bozeman, MT 11 FY18 Approved Budget 4. Strategic Plan - With the Commission’s Strategic Planning effort underway but not completed, we are attempting to get ahead of a few key Strategic Plan priorities by including a full-time Communications Coordinator position beginning in January 2018. Staffing Level Changes Attempting to maintain our current levels of service will require additional staff this year in numerous departments. General Fund Positions - Approved additions in the General Fund include: Department/Division Position Full-Time Equivalents Municipal Court Veterans Court Administrator – 1.00 Pending the Grant Award City Attorney’s Office 0.5 Administrative Assistant 0.50 to 1.0 Legal Assistant I Facilities Facilities Service Worker 1.00 City Manager’s Office Communications Coordinator 0.5 FTE (Full Time, Jan 2018) Total 3.0 FTE Enterprise & Special Revenue Fund Positions - Approved additions in the Enterprise and Special Revenue Funds include: Department/Division Position Full-Time Equivalents Building Inspection Building Inspector I or II 1.00 Solid Waste Solid Waste Worker (Driver) 1.00 Stormwater Stormwater Specialist 1.00 Streets Streets - City Service Workers 2.00 Vehicle Maintenance Vehicle Maintenance 1.00 Water Plant Water Plant Operator 1.00 Total 7.0 FTE The General Fund: The City’s General Fund supports the majority of administration, public safety and public welfare operations. It’s most significant source of revenue comes from local property taxes. As a result, the General Fund’s operating budget and fund balance are critically important to the financial health of the city. This year’s General Fund budget has $31.6 Million in expenditures, in the following areas: City of Bozeman, MT 12 FY18 Approved Budget Department/Division General Fund Amount Commission $ 234,148 City Manager 1,216,952 Courts 943,811 Attorney 1,246,948 Finance (prior Admin Services) 1,065,951 Facilities 1,455,651 Information Technology 978,222 Human Resources 413,390 Police (incl. State Ret.) 9,242,015 Fire (incl. State Ret.) 6,188,814 Public Services/Streets 122,331 Cemetery 721,904 Parks 2,028,480 Library 1,993,372 Recreation 1,811,680 Economic Development 422,464 Sustainability 169,912 Non-Departmental 1,355,567 TOTAL Expenditures $31,611,612 City of Bozeman, MT 13 FY18 Approved Budget As shown in the above graph, Police and Fire services combined comprise 49% ($15.4 Million) of the General Fund’s spending. The next largest departments are grouped together, each spending roughly $1 - $2 Million and each comprising 3-6% of the budget: Parks, Recreation, Library, Facilities Maintenance, City Manager, City Attorney and Finance. Nine other departments/areas comprise the balance of General Fund Expenditures. General Fund Undesignated Fund Balance: The City’s charter requires an established minimum level of General Fund Undesignated Fund Balance in accordance with the Government Finance Officers’ Association (GFOA) Best Practices. GFOA’s Best Practice Recommendation was adopted and our required minimum reserve balance is 16.67% of budgeted revenues. This budget exceeds the required minimum reserve of approximately $5,060,000 (16.67%) at the end of Fiscal Year 2018. Residential City Property Taxes for FY16, FY17, and FY18 In total, the Approved Budget would levy an estimated 205.30 mills on all taxable property within the City limits.
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