CITY OF LAKE CHARLES, LOUISIANA PROPOSED OPERATING & CAPITAL BUDGET 2017–2018 MAYOR HONORABLE NICHOLAS E. HUNTER CITY COUNCIL PRESIDENT VICE-PRESIDENT JOHN IEYOUB MARK ECKARD District D District G MARY MORRIS LUVERTHA W. AUGUST RODNEY GEYEN District A District B District C STUART WEATHERFORD JOHNNIE THIBODEAUX District E District F Prepared By: Finance Administration Karen D. Harrell, Director of Finance August 2017 THIS PAGE INTENTIONALLY LEFT BLANK 2 CITY OF LAKE CHARLES 2017. 2018 ANNUAL BUDGET ELECTED CITY OFFICIALS PRESENT TERM PRESENT TERM BEGAN AS BEGINS EXPIRES MEMBER MAYOR Nicholas E. Hunter July 1, 2017 June 30, 2021 July 2017 CITY COUNCIL John leyoub, President July 1,2017 June 30, 202'l July 2009 Mark Eckard, Vice-President July 1, 2O17 June 30, 2021 July 2009 Rodney Geyen July 1, 2017 June 30, 2021 July'1997 Stuart Weatherford July 1,2017 June 30, 2021 July 2005 Luvertha August July 1,2017 June 30, 2021 January 2008 Mary Morris July 1,2017 June 30, 202'1 July 2013 Johnnie Thibodeaux July 1, 2017 June 30, 2021 July 2017 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 lll January 1 , 2015 December 3'1 , 2020 November 16, 2004 3 CITY OF LAKE CHARLES 2017.2018 ANNUAL BUDGET DEPARTMENT HEADS EMPLOYEE DEPARTMENT JOHN CARDONE MAYOR'S OFFICE DAVID MORGAN LEGAL KAREN HARRELL FINANCE WENDY GOODWIN HUMAN RESOURCES KEITH MURRAY FIRE DON DIXON POLICE MISTER EDWARDS PUBLIC WORKS PERCY BROWN COMMUNITY SERVICES MICHAEL HUBER PLANNING 4 City of Lake Charles Organization Chart 5 (D GOVERN MENT FINANCE OFFICERS ASSOCIATION D istinguished Budget Presentation Aw ard PRESENTED TO City of Lake Charles Louisiana For the Fiscal Year Beginning October 1,20L6 Wtr"€fu,- Executive Director 6 CITY OF LAKE CHARLES FISCAL YEAR 2017-2018 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 35 Legal Requirements 37 Methods of Financial Infrastructure and Major Capital Improvements 38 Statement of Budgetary and Financial Policy 39 Budgetary Process 40 Debt Statement 44 Awards and Acknowledgements 46 Fact Sheet File # 341-16 47 BUDGET SUMMARY Combined Annual Budget Summary 50 Chart of Annual Budget Summary 51 GENERAL FUND General Fund Summary 54 General Fund Revenue and Expenditure Summary 55 Schedule of Revenues 58 Operating Expenditures and Transfers 63 General Government 64 Mayor's Office 66 City Council 68 City Marshal 70 City Court 72 Legal Services 74 Finance 76 Administration Services 78 Accounting 80 Purchasing 82 Human Resources 84 7 CITY OF LAKE CHARLES FISCAL YEAR 2017-2018 ANNUAL BUDGET TABLE OF CONTENTS PAGE Fire 86 Administration 88 Fire Suppression 90 Cajun Country 92 Fire Support 94 Police 96 Administration 98 Police Service 100 Public Works 102 Administration 104 Streets 106 Trash Collection 108 Solid Waste - General 110 Vehicle Maintenance 112 Building Maintenance 114 Communication and Traffic 116 Grounds Maintenance 118 Planning and Development 120 Administration 122 Permit Center 124 Downtown/Lakefront Development 126 General Services 129 Administration 130 Building Services 132 Printing Services 134 Information Technology 136 1911 City Hall 138 Community Service Grants 140 Dept. 21 Transfers 142 SPECIAL REVENUE FUNDS Special Revenue Fund Summary 146 Fund 117 Wastewater 148 Fund 119 Riverboat Gaming 150 Fund 105 .25% Sales Tax 2016 152 Fund 127 Recreation 154 Fund 107 Central School 160 Fund 104 Arts/Special Events 162 Fund 110 Community Development 164 Fund 126 HUD-Housing Programs 166 8 CITY OF LAKE CHARLES FISCAL YEAR 2017-2018 ANNUAL BUDGET TABLE OF CONTENTS PAGE Fund 122 Summer Food Service Program 168 Fund 123 AmeriCorps Grant 170 Fund Public Safety Grants 172 Fund 131 D.A.R.E. Grant 174 Fund 133 COPS Hiring Grant 176 Fund Disaster Recovery Fund 178 Fund 120 Facility Renewal Fund 180 DEBT SERVICE Debt Service Summary 184 Fund 205 Police Benefit Guarantee 186 Fund 210 LCDA Sewer Bonds 188 Fund 212 2007 $35m LCDA Public Improvement Bonds 190 Fund 213 2014 $15.825m Refunding Public Improvement Bonds 192 Fund 214 2010 $40m LCDA Public Improvement Bonds 194 Fund 215 2017 $24m LCDA Refunding Bonds 196 Fund 216 2011 $21m DEQ Sewer Loan 198 Fund 225 School Board Sales Tax District 3 200 Fund 232 2011 $3m CPTA City Court Complex 202 ENTERPRISE FUNDS Enterprise Funds Summary 206 Fund 401 Transit 208 Fund 411 Transit Capital 211 Fund 405 Water Utility 214 Water Business Office 215 Water Production and Distribution 217 Fund 402 Civic Center 219 Fund 410 Civic Center Capital 222 Fund 403 Mallard Cove Golf Course 225 INTERNAL SERVICE FUNDS Internal Service Fund Summary 230 Fund 501 Risk Management 231 Fund 503 Employee Group Insurance 233 CAPITAL BUDGET Capital Budget 236 Capital Budget Authorization Schedule - Capital Projects 238 Funds and Related Sources Capital Budget Additional Schedules and Exhibits - Project 241 Reauthorization Schedule 9 CITY OF LAKE CHARLES FISCAL YEAR 2017-2018 ANNUAL BUDGET TABLE OF CONTENTS PAGE Additional Schedules and Exhibits-Capital Budget - Description 242 of Major Financing Sources-Capital Projects Fund and Related Sources Impact of Capital Improvements on Operating Budget 244 Five Year Capital Budget 247 EXHIBITS Impact of Department Capital Outlay on Operating Budget 270 Summary Budgeted Personnel and Position Totals 276 Detailed Personnel Roster 278 Glossary of Terms 286 Exhibit A - 2016 SWLA Projects 289 MISCELLANEOUS STATISTICS General Fund Revenue Comparison 366 General Fund Expenditure Comparison by Department 367 General Fund Expenditure Comparison by Category 368 General Fund Expenditures Fringe Benefit Costs 369 Net Position by Component-Last Ten Fiscal Years 370 Change in Net Position - Last Ten Fiscal Years 372 Governmental Activities Tax Revenues by Source - Last Ten 374 Fiscal Years Fund Balances of Governmental Funds - Last Ten Fiscal Years 375 Changes in Fund Balances of Governmental Funds - Last Ten 376 Fiscal Years Assessed and Estimated Actual Value of Taxable Property 377 Property Tax Millage Rates - Last Ten Fiscal Years 378 Principal Property Taxpayers 379 Sales Tax Rates - Last Ten Fiscal Years 380 Principal Sales Taxpayers 381 Ratios of Outstanding Debt by Type 382 Computation of Legal Debt Margin 383 Demographic and Economic Statistics 384 Principal Employers in the MSA 385 Operating Indicators by Function - Last Ten Fiscal Years 386 Capital Asset Statistics by Function - Last Ten Fiscal Years 387 10 INTRODUGTORY SEGTION 11 THIS PAGE INTENTIONALLY LEFT BLANK 12 CITY OF LAKE CHARLES 325 Pulo Street o P.O. Box 3705 NICHOLAS E.HUNTER Lake'Cha rles, LA 70602-3706 DEPARTMENTOF FINANCE MAYOR (337) 491-1251. FAx (334 497-1,225 KAREN D. HARRELL, DIRECTOR August 14,2017 Member of the City Council P.O. Box 1178 Lake Charles, LA 70602 RE: Fiscal Year 2017 - 2018 Operating and Capital Budget Dear City Council Members: Attached is the City's proposed Operating and Capital Budget for the 2017 - 2018 fiscal year, which is submitted for your review and consideration as provided under Article Vl, Section 6-03 of our Home Rule Charter. All City departments were involved in the preparation of this budget. They each have an opportunity to express the financial needs for the upcoming fiscal year as they continue to provide for increased services within our growing economy. The Mayor, City Council and the Community Advisement and Assessment Board are currently holding town hall meetings in each Council district. lmproving drainage is a topic consistently discussed at each of the meetings. More than $5.2 million in funding is provided for in this year's Capital Budget for drainage improvements throughout the City. This amount compares to $3 million allocated, which is an increase of 78 percent from the 2016-2017 budget. The additional investment in drainage has been achieved not through additional taxes, but rather through good fiscal policy and budget prioritization. The Lake Charles area is experiencing unprecedented economic growth and development which necessitates the need for an additional water plant. The new plant is currently under design and will add an additional 6 million gallons per day (MGD) capacity to the existing water system and will improve the efficiencies at the other six water plants throughout the City. Preliminary cost estimates of $26 million include the plant and transport lines. The new administration has identified several initiatives for the new year. Concerns such as juvenile crime, attainable housing, homeowner restoration and down payment assistance hope to be addressed and funds have been added in the proposed budget for these causes. Also to be considered is a program for restoration of historic property. The City will also work with the Southwest Louisiana Economic Development Alliance (SWLA Alliance) to consider the feasibility of a satellite SEED Center for north Lake Charles. Funds for this project have been included in the Capital Budget. Again, all of these additional investments have been achieved through good fiscal policy and budget prioritization, rather than additional taxes. Cherishing the Past, Embracing the Future 13 CITY OF LAKE CHARLES FISCAL YEAR 2OI7 _ 2018 BUDGET MESSAGE All of these initiatives espoused by the new administration will require key partnerships with other governmental, nonprofit and private agencies. The City cannot tackle these issues alone. Economic Climate The Buslness Climate reporl "Southwest Louisiana Economic Development, 2017 Edition" states that SWLA is the nation's fastest growing region for economic grovvth. Listed are the top reasons to live, work and locate in the area: booming economy, rich resources, strategic location, robust infrastructure, skilled workforce, affordability, culture and climate and world-class recreation. The SWLA Alliance Project Report indicates that there are $43.3 billion in projects currently under construction within the 5 parish area, and an additional $74 billion in projects are announced and are pending final approval.