1

October 23, 2017

2018 Revenue Forecast

2

Outline

• Overview

• General Fund

• Property Tax Levy

• Other Funds

• Budget Schedule

3

2017-2018 Citywide Budgeted

Revenue - $527.5 Million

Other

Funds:

$372.1

General

Fund:

$155.4

4

$0

$10

$20

$30

$40

$50

$60

$70

$80

20122.4%

20134.5%

20143.2%

20154%

20163.5%

2017P2%

2018P2.4%

Sales Tax Property Tax B&O Tax

Utility Tax Goods & Services Other

2018 General Fund Projection – $78.6 Million

Year

% Change

5

2018 B&O Tax Projection - $16 Million

$0

$2

$4

$6

$8

$10

$12

$14

$16

20125.4%

20133.4%

20140.8%

201517%*

20165.6%

2017P2.5%

2018P3.3%

11.7 12.112.2

14.3 15.1 11.3

4.2

16.0

Received Projected *Health care providers

Year

% Change

6

2018 Utility Taxes - Combined $16.9 Million

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

20122.2%

20134.3%

20143.4%

20150.8%

20163.8%

2017P3%

2018P3%

14.1 14.7 15.2 15.3 15.9 12.7

5.9

16.9

Received Projected

Year

% Change

7

2018 Utility Taxes - $16.9 Million

Water $4.7 28%

Sewer $2.9 17%

Storm$1.0 7%

Elect $3.7 22%

Gas $1.27%

Tele $1.9 11%

Cable $1.4 8%

8

2018 Sales Tax Citywide - $23.7 Million

$0

$5

$10

$15

$20

$25

20124.5%

20136.5%

20141.5%

20154%

20165.3%

2017P4.5%

2018P3%

18.6 19.820.1 20.9 22.0

17.2

5.8

23.7

Received Projected

Year

% Change

9

Sales Tax By Industry – Top 8

- 500 1,000 1,500 2,000

Gen. Merch

Vehicles & Parts

Construction

Food & Drink Places

Building Mat.

Specialty Trade

Wholesale

Clothing

2016 2017 Thousands

10

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%20

05

Q1

20

05

Q2

20

05

Q3

20

05

Q4

20

06

Q1

20

06

Q2

20

06

Q3

20

06

Q4

20

07

Q1

20

07

Q2

20

07

Q3

20

07

Q4

20

08

Q1

20

08

Q2

20

08

Q3

20

08

Q4

20

09

Q1

20

09

Q2

20

09

Q3

20

09

Q4

20

10

Q1

20

10

Q2

20

10

Q3

20

10

Q4

20

11

Q1

20

11

Q2

20

11

Q3

20

11

Q4

20

12

Q1

20

12

Q2

20

12

Q3

20

12

Q4

20

13

Q1

20

13

Q2

20

13

Q3

20

13

Q4

20

14

Q1

20

14

Q2

20

14

Q3

20

14

Q4

20

15

Q1

20

15

Q2

20

15

Q3

20

15

Q4

20

16

Q1

20

16

Q2

20

16

Q3

20

16

Q4

20

17

Q1

Construction as a Percent of Total Retail Sales

Construction Share of Retail Sales (Rolling Average)

11

2018 Property Tax Citywide - $25 Million

$0

$5

$10

$15

$20

$25

20121.6%

*201317.4%

20141.7%

20152.6%

20162.1%

2017P1.2%

2018P1.2%

19.5

22.9 23.3 23.9 24.413.5

11.2

25

Received Projected

Year

% Change

*2013 Housing Levy

12

2017 Property Tax Distribution

EMS2.6%Flood & Cons.

1.5%

County 9.5%

State GF19.7%

B'ham School40.3%

Port of B'ham2.5%

General Fund13.1%

Greenways4.4%

Fire / Police Pension 1.9%

Housing, 2.7%

City of Bellingham

22%

13

2017 Levy

General Fund $14,686,079

Greenways III 4,934,437

Affordable Housing 3,000,000

Fire / Police Pension 2,113,726

RDA LIFT 51,005

CITY TOTAL $24,785,247

14

Estimated Impact of 1% Increase

Amount

2017 Total Levy $24,785,000

1% Levy Increase $247,000

Levy $25,032,000

City Levy on $370,000

home

$955

15

2018 All Non-General Funds - $181 Million

$-

$25

$50

$75

$100

$125

$150

$175

$200

2013 2014 2015 2016 2017P 2018P

Taxes Grants, Entitlements & Interlocal

Charges for Services Utilites

Internal Services Other Sources

16

Real Estate Excise Tax - $3.8 Million

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

201232.9%

20130.0%

20148.7%

201544%

20162.8%

2017P2.7%

2018P0%

2.3 2.32.5

3.6 3.7

2.8

1.0

3.80

Received Projected

Year

% Change

17

Major Enterprise Fund Revenues

$0

$5

$10

$15

$20

$25

$30

$35

$40

2012 2013 2014 2015 2016 2017P 2018P

Street Fund Water Fund Wastewater Fund

Storm Water Fund Solid Waste Fund

18

Budget Calendar Key DatesOctober 23rd Afternoon

Evening

Budget Work Session

Public Hearing on revenue

forecast (property tax levy)

November 6th Afternoon Introduce Property Tax

Ordinance

November 13th Evening Close Written Public Comment

Adopt Property Tax Ordinance

Public Hearing on Budget

December 4th

Afternoon

Introduce Budget Ordinance

December 11th Evening Adopt Budget Ordinance

19

Presented by: Forrest Longman

Budget Manager, Finance Department

360.778.8005 fwlongman@cob.org

2018 Revenue Forecast

20

Street Fund Revenues - $16.6 Million* PW Admin & Eng. Fund

$0

$5

$10

$15

$20

$25

2012 2013 2014 2015* 2016 2017P 2018BTaxes Intergovernmental Goods & Services

Impact Fees Fuel Tax All Other

21

Water Fund Revenues - $25 Million

$0

$5

$10

$15

$20

$25

$30

$35

*2012 2013 2014 2015 2016 2017P 2018B

Metered Water Unmetered Water Bond / Loan / Misc

Watershed Goods & Services Demand Charges

*Watershed Rate Increase

22

Wastewater Fund Revenues - $26.1 Million

$0

$5

$10

$15

$20

$25

$30

$35

$40

2012 2013* 2014 2015 2016 2017P 2018B

Unmetered Wastewater Metered Wastewater

All Other Demand Charges

Contribution Financing*WWTP

23

Storm Water Fund Revenues - $9.4 Million

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

2012 2013 2014 2015 2016 2017P 2018B

Goods & Services Loan Capital contribution

Interest & Misc. Grants

24

Solid Waste Fund Revenues - $3.5 Million

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

2012 2013 2014 2015 2016 2017P 2018B

Taxes Miscellaneous Goods & Services