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Proposed 2020 Budget City of Racine, Wisconsin

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Proposed 2020 Budget City of Racine, Wisconsin PROPOSED 2020 BUDGET CITY OF RACINE, WISCONSIN TABLE OF CONTENTS 2020 PROPROSED BUDGET Mayor's Address…………………………………………………………………………………………… 1 Operating Budget Overview…………………………………………………………………………………P-001 SUMMARIES Organizational Summary……………………………………………………………………………………1 All Budgeted Funds Summary of Expenditures……………………………………………………………5 All Budgeted Funds Summary of Revenues……………………………………………………………… 7 Tax Levy Allocation by Fund………………………………………………………………………………11 Operating Budget Fund Balance Applied…………………………………………………………………13 GENERAL FUND General Fund Summary of Expenditures by Function……………………………………………………15 General Fund Summary of Revenues by Category……………………………………………………… 17 General Fund Revenue Detail by Category…………………………………………………………………18 GENERAL ADMINISTRATION City Administration………………………………………………………………………………………25 Human Resources………………………………………………………………………...………………35 City Attorney………………………………………………………………………………….…………43 Finance Department…………………………………………………………………………………… 49 City Assessor…………………………………………………………………………………………… 56 Non-Departmental………………………………………………………………………………………63 Health Department………………………………………………………………………………………67 Community Development………………………………………………………………………………75 PUBLIC SAFETY Fire Department…………………………………………………………………………………………85 Police Department………………………………………………………………………………………91 TABLE OF CONTENTS 2020 PROPROSED BUDGET PUBLIC WORKS Public Works Department…………………………………………………………..……………...……99 PARKS AND RECREATION Parks and Recreation Department……………………………………………………….……………109 SPECIAL REVENUE Library…………………………………………………………………………………………………….…121 Recycling………………………………………………………………………………………………………129 Municipal Court………………………………………………………………………………………………135 Cemetery………………………………………………………………………………………………………141 Private Property Maintenance………………………………………………………………………………147 Sanitary Sewer Maintenance……………………………………………………………………………… 153 Health Department Laboratory……………………………………………………………………………159 Room Tax………………..……………………………………………………………………………………165 DEBT SERVICE Debt Service Fund……………………………………………………………………………………………171 CAPITAL PROJECTS General Obligation Bond Fund…………………………………………………………………………… 177 Equipment Replacement Short Term Bond Fund……………………………………………………….…189 Intergovernmental Revenue Sharing Fund…………………………………………………………………197 ENTERPRISE Transit System………………………………………………………………………………………………203 Parking System……………………………………………………………………………………...………217 Storm Water Utility…………………………………………………………………………….……………223 Civic Centre……………………………………………………………………………………….…………229 Radio Communications……………………………………………………………….…………………… 233 TABLE OF CONTENTS 2020 PROPROSED BUDGET UTILITIES Water Utility…………………………………………………………………………………………………239 Wastewater Utility……………………………………………………………………………………………245 INTERNAL SERVICE Equipment Maintenance Garage…………………………………………………………………...………251 Information Systems………………………………………………………………………………….………257 Building Complex………………………………………………………………………………………..… 263 Healthcare Fund…………………………………………………………………………………………...…269 Telephone Fund…………………………………………………………………………………………...…275 APPENDICES Appendix A-Positions……………………………………………………………………………...…………1-14 Appendix B-Fees………………………………………………………………………………………..……1-29 Appendix C-10 Year Capital Plan…………………………………………………………………………1-34 Appendix D-Intergovernmental Revenue Sharing Plan………………………………………………… 1 Appendix E-Ordinances…………………………………………………………………………………… 1 City Hall 730 Washington Ave Racine WI 53403 262 636-9111 262-636-9570 FAX Office of the Mayor City of Racine, Wisconsin [email protected] October 21, 2019 To Members of the Common Council and Residents of the City of Racine, I am pleased to introduce the 2020 Executive Budget for the City of Racine. In the face of constraints imposed upon us by the State Legislature, this budget makes difficult decisions while still maintaining quality services and resources for our community. You will find in these documents a balanced budget that not only honors our fiscal responsibilities, but that also advances our shared values of creating a City that is equitable, inclusive, sustainable, and smart. Despite the revenue limits and expenditure restraints placed upon us by the State Legislature, this proposed $215 million dollar budget includes no job losses and no furloughs. This budget also does not eliminate any City services. This budget also allows us to offer a small amount of property tax relief: in this budget, in 2020, the property tax levy will decrease to $53,820,230, which is almost a 1% deduction. And our city property tax mil rate is estimated to drop from 16.09 to 14.92, a decrease of over 7%. This is the largest drop in Racine’s property tax rate in more than a decade. I believe we can accomplish great things as a City and that there are plenty of reasons to be excited about our future. Our City, driven by the hard work of our employees and our partners, is finding creative, innovative ways every single day to improve our community and strengthen our future, even under the fiscal constraints we face. Over the coming weeks the Council will hear presentations and dive into the details of the budget. I look forward to engaging in those conversations with the Council and the public. I have every confidence that with the Council’s support, our community partners, and most importantly with the participation of Racine residents, this budget will allow Racine to continue on our path towards creating a more sustainable, smart, equitable and inclusive City that allows all of our residents to thrive. Sincerely, Cory Mason Mayor OPERATING BUDGET OVERVIEW The City of Racine maintains a budget document as a tool for financial planning. The City uses a decentralized approach to creating the budget; that is, department heads and managers develop and create the working numbers that fill the line items with direction and advice from the Mayor, City Administrator and the Finance Department. This document is also used to provide additional information about City departments including the services provided, significant goals and initiatives and the associated funding impacts for 2020. Although this budget was developed to look beyond 2020, maintaining delivery of current services to the citizenry while complying with the State imposed expenditure restraint and tax levy limits continues to be a challenge. The development of this budget came with significant challenges as the City faces a structural deficit that has the cost of services increasing by more than inflation while major revenue sources remain flat. Difficult decisions have been incorporated into this document including a health plan design change to a high deductible health plan, holding positions vacant, and allocating more costs to fee based systems including fire protection, recycling, and storm water. While the 2020 budget development was certainly challenging, we anticipate the 2021 budget will be even more challenging as our revenue options become even more limited. While we will continue to investigate ways to reduce costs and increase revenues, City service levels may be impacted in future years. Balancing the 2020 Budget Due to levy limits, expenditure restraint, use of reserves in prior years, Healthcare plan design changes $ 2,000,000 and increasing costs, at the onset of the 2020 budget planning process, Fire protection costs on the water bill 1,800,000 the City was projecting about a $4.5 million budget gap. As budget requests came in and we received notifications from the State, that 2 additional Police Department positions held vacant 200,000 budget gap grew to about $5.3 million. The increase came from Remove the C.O.L.A 450,000 various places, all of which were beyond our control, including Increased recycling fee 400,000 increasing WRS rates, increasing salt and fuel prices, and reductions in highway and other state aids. Increased property inspection fees 100,000 Forestry and curb and gutter moved to storm water fee 225,000 The proposed budget addresses the anticipated shortfall through Increased fire inspection fee 150,000 various actions and results in a balanced budget that complies with New property registration fees 55,000 State imposed levy limits and the expenditure restraint program. $ 5,380,000 P-001 OPERATING BUDGET REVENUE HIGHLIGHTS General Fund revenues are made up of various categories. The various categories and the 2020 budget impact for each are discussed below. o Property taxes-property taxes in the general General Fund Revenues fund increased by about 1% but the overall tax 2019 Adopted to 2020 Proposed levy decreased by .97% 2019 Adopted 2020 Proposed Change Percent Change o Licenses and permits- The amount of revenue Property Taxes $ 32,205,500 $ 32,531,720 326,220$ 1.01% that is generated from permit and development Other Taxes 374,000 375,000 1,000 0.27% fees is based on the development and construction market. The 2020 budget reflects a Intergovernmental Revenues 33,669,723 33,551,841 (117,882) -0.35% 6% increase in license and permit revenue Licenses and Permits 2,300,750 2,451,985 151,235 6.57% compared to the 2019 budget due primarily to an Fines and Forfeitures 1,797,000 1,582,000 (215,000) -11.96% uptick in building permit revenue. Charges for Services 3,785,562 4,148,180 362,618 9.58% o Fines and Forfeitures - The 2020 budget reflects Intergovernmental Charges for Services 1,799,135 1,988,635 189,500 10.53% a decrease compared to the 2019 budget due Miscellaneous Revenues 694,131 763,246 69,115 9.96% primarily to a decrease in parking fine revenue. Other Financing Sources 3,006,698 4,793,949 1,787,251 59.44% . Charges for services- Includes revenues such
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