CITY OF COTTONWOOD FY 2015 Proposed Budget Overview

CITY OF COTTONWOODFY 2015 Proposed Budget Overview

City Council Chambers May 27, 2014 @ 6:00 P.M.

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Topics of discussion

Glossary of Acronyms FY 2015 Budget Summary

Personnel Capital Outlay <$35K Capital Outlay $35K+

Major Revenues Update Funding Outside Agencies Water & Wastewater Rates Financing Needs Reserve Funds Status Future Meetings & Questions

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Glossary of Acronyms

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ADOT – Arizona Department of Transportation ASRS – Arizona State Retirement System ADWR – Arizona Department of Water Resources AZ - Arizona CAF – Capital Accumulation Fund CATS – Cottonwood Area Transit System CDBG – Community Development Block Grant CIP – Capital Improvements Plan/Program COLA – Cost Of Living Adjustment DOJ – Department of Justice DPS – Department of Public Safety DS – Debt Service DUI – Driving Under the Influence

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E-MOD – Experience Modifier EMS – Emergency Medical Services FAA – Federal Aviation Administration FmHA – Farmers Home Administration FY – Fiscal Year GADA – Greater Arizona Development Authority GF - General Fund GOHS – Governor’s Office of Highway Safety HURF – Highway User Revenue Fund IGA – Inter-Governmental Agreement IT – Information Technology LP – Lease Purchase LTAF – Local Transportation Assistance Fund MPC – Municipal Property Corporation

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NACOG – Northern AZ Council of Governments O&M – Operation & Maintenance P&Z – Planning & Zoning PANT – Prescott Area Narcotics Taskforce PSPRS – Public Safety Personnel Retirement System SAFER – Staffing for Adequate Fire and Emergency

Response SCBA – Self Contained Breathing Apparatus SRO – School Resource Officer VLT – Vehicle License Tax WIFA – Water Infrastructure Finance Authority WWTP – Wastewater Treatment Plant YC – Yavapai County

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FY 2015 Budget Summary

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2015 Budget SummaryThe budget process

Base budget submission - $???? Meet with GMs and Department Managers Trim down the base budget

1st Round of budget meetings- $109,000 Before Capital and Personnel Operating & Maintenance only

After meeting with City Manager – ($1,000,000) Added personnel, reclassification, & capital Still operational base budget

Asked all departments to cut up to 6% off their budgets Staffing Capital outlay Maintenance & operations

Current budget - Balanced

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2015 Budget SummaryNew Personnel Requests

Dept Job DescriptionEst. Salary (min +5%)

Benefits Est. Annual Costs

HR Safety Training Specialist 59,779 23,912 $83,691

Utilities Electrical Technician 34,952 13,981 $48,932

Transit Driver 30,193 12,077 $29,227

Fin/HR Administrative Assistant 31,702 12,681 $44,383

Admin Marketing/Public Information 51,640 20,656 $72,296

Fire Deputy Fire Chief 76,295 30,518 $106,813

Court Court Clerk I 31,702 12,681 $44,383

Finance Accounting Specialist I 31,702 12,681 $44,383

Parks Social services Program Supervisor 40,461 16,184 $56,645

Police Records Clerk 30,193 12,077 $42,270

210,354 84,142 573,025

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2015 Budget SummaryNew Personnel Budgeted

Dept Job Description Est. Salary Benefits Est. Annual Costs

HR Safety Training Specialist - 1/4 year 59,779 23,912 20,922.78

Utilities Electrical Technician 34,952 13,981 48,932.00

Transit Transit Driver 30,193 12,077 29,227.00

Fin/HR Administrative Assistant - 3/4 year 31,702 12,681 33,287.40

156,626 62,650 132,369

Safety Training Specialist – only if we get other communities to help fundElectrician – reduce the high amount of overtime currently being used by CharlieTransit Driver – ADOT grant funded, eliminated $13K from part-time driversAdministrative Assistant – requested by auditors to improve internal controls

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2015 Budget SummaryPersonnel

ReclassificationsDept Job Description Notes

Current Range

Requested Range

Current Salary

New Salary%

Increase

Est Ben. Increase

Est. Annual Costs

Library Library Clerk 11 17 27,386 36,699 25% 3,725 13,039 Emerging Technologies Specialist

HR Human Resources Tech 13 18 32,656 38,534 15% 2,351 8,229 Human Resources Specialist I

Engineering Civil Engineer Tech I 19 21 46,089 50,698 10% 1,844 6,452 Drafter/Designer

27,721

Engineering Civil Engineer Tech I 19 21 46,089 50,698 10% 1,844 6,452 Drafter/Designer

6,452

REQUESTED RECLASSIFICATIONS

Budgeted Reclassifications

The Drafter/Designer takes on much of the engineering design, drafting and review work for the entire City saving the city the substantial cost

of having a consultant perform these services

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2015 Budget SummaryPart-time Personnel

Budgeted

Dept Job Description Est. Annual Costs

Library - Part time $10,636

Intern for Mayor $10,636

Records Clerk - Fire Dept $13,029

$34,301

This positions to be available if grant funding is obtained through NACOG or other source

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Status of Employee Benefits: Cost Of Living Adjustment (COLA) – 1.5%

Merit program fully funded this fiscal year

Longevity is not funded but will review in November 2014

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Health insurance premiums increased by 9.0% City continues to fund a portion of dependent

coverage No health insurance cost shift to employees

Reserve the right to adjust during the year

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Medical & Basic Life Coverage

Core Plan/Co-Pay Plan HDHP Plan ($1500/$3000) HDHP Plan ($2500/$5000)

Monthly Employer Employee Total Employer Employee Total Employer Employee TotalEmployee Only $637.00 $0.00 $637.00 $637.00 ($168.00) $805.00 $637.00 ($215.00) $852.00

Employee + Spouse $1,076.60 $188.40 $1,265.00 $791.00 $138.00 $929.00 $711.10 $123.90 $835.00Employee + Child(ren) $968.20 $82.80 $1,051.00 $711.40 $60.60 $772.00 $640.40 $54.60 $695.00

Employee + Family $1,213.00 $384.00 $1,597.00 $891.40 $281.60 $1,173.00 $803.00 $254.00 $1,057.00

- City no longer provides Core Plus Plan- All plans include basic life insurance coverage- City contributes $168 and $215 to the $1500 & $2500 HDHP, respectively

Dental Coverage Employer Employee Total

Employee Only $42.00 $0.00 $42.00Employee + Spouse $71.40 $12.60 $84.00

Employee + Child(ren) $63.60 $5.40 $69.00Employee + Family $81.00 $26.00 $107.00

Voluntary Vision Coverage

Employer Employee Total

Employee Only $0.00 $10.10 $10.10Employee + Spouse $0.00 $15.25 $15.25

Employee + Child(ren) $0.00 $16.33 $16.33Employee + Family $0.00 $26.09 $26.09

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ASRS – 11.54% to 11.60%

PSPRS Fire – 16.81% to 16.20%

PSPRS Police – 29.88% to 29.83%

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FY 2015 Capital Outlay <$35K

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2015 Budget Summary <$35K Capital Outlay

Under 35K Capital Requested Budgeted

IT ServicesCity Wide Computer Replacement Program 28,000 24,360City Wide Wifi 16,000 16,000

Subtotal 44,000 40,360Police Dept.

Rifles 3,500 3,500Tasers 13,700 13,700Security Camera Upgrades 22,800 22,800Duty Weapons 5,000 5,000K9 Equipment 2,890 2,890Brazos Accident Mobile 6,400 0WatchGuard Camera 34,230 34,230Breaching Shotguns 6,000 0

Subtotal 94,520 82,120Fire

Office & Station Equip 7,000 0Communications/Radio/MCT' Infr 30,000 10,000EMS Equipment Replacement Program 20,000 5,000Physical Fitness Eq (including for new stations) 5,000 0

Subtotal 62,000 15,000

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CourtImpact Window Upgrade - Court Enhancement Fund 3,500 3,500Bicycle Rack Installation 2,000 0

Subtotal 5,500 3,500Parks & Rec

Lounge Furniture Out door Pool (6) 9,500 0Life Guard Stands 2,500 0Mini - Van 18,000 0Long Bed Pickup Truck 18,000 0Light Towers 12,000 0After School Program 193,600 0

Subtotal 253,600 0Comm. Dev

Bike Racks and Trail Signage 3,160 0GIS Software upgrades 2,500 0

Subtotal 5,660 0Engineering

AutoTurn Software 2,580 2,000Subtotal 2,580 2,000

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Public WorksNEW Programs

Stormwater Program (Contractual Services 48,600 48,600Hazmat Clean up Event 20,000 0

Subtotal 68,600 48,600Maintenance

New Sand at Garrison Park, Volleball Court 3,500 In MaintenanceStabilizer for Softball Fields 9,800 In MaintenanceBox Truck for Building Maintenance 20,000 0

NEW ProgramsRehabiliation of Park Irrigation System - Ongoing 30,000 0

Subtotal 63,300 0Streets

Street Light at Villa and 89A 20,000 0Repair Street Sweeper 21,500 21,500Rock Screen 10,500 0Dust Control Measures 7,500 7,500City Wide Flood Study (Grant) - Contractual Svcs 200,000 200,000Flashing Speed Limit Sign 14,000 0Sidewalk trip Hazard Removal 10,000 10,000ADOT Bridge Inspections 4,000 4,000

Subtotal 287,500 243,000

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CAT/LYNXLight Duty 20-30 Ft Vans (4) 540,000 540,000Routematch Software Web Portal 10,270 10,270Routematch Software Fixed Route Moduel 12,895 12,895Sidewalks ADA Compliance 170,000 170,000Computer System Upgrades (3) 3,300 3,300

Subtotal 736,465 147,293

LibraryTwo Interior Door switches 5,000 In MaintenanceSidewalk Addition 10,000 0Lighting and Ballast Replacement Project 36,000 35,000Chair Re-Uphostery Project 28,000 0

NEW ProgramsAnnual Maintenance (Budgeted in Maintenance) 10,000 In Maintenance

Subtotal 89,000 35,000AirportNEW Programs

Apron Sweeping(Airport Maintenance) 5,100AWOS Maintenance 3,500 In Maintenance

Subtotal 8,600 0

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Sewer - O&MAsphalt Driveway at Plant 27,350 27,350Wastewater Treatment Basin Lighting 9,000 0

Added to Line Items not CapitalTreatment Plant Building Maintenance 20,000 In MaintenanceSludge Disposal 99,140 In Maintenance

Subtotal 155,490 27,350WATER- O&M

Utility Repair Truck 4X4 34,000 34,000Utility Repair Truck 30,000 30,000Trace - Detect Laboratory Arsenic Analyzer 31,550 31,550

New ProgramsWater Storeage Reservoir inspection and Cleaning 26,000 In MaintenanceSCADA Upgrade 29,000 29,000

Subtotal 150,550 124,550

Total <$35,000 2,027,365 768,773

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FY 2015 Capital Outlay $35K+

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2015 Budget Summary $35K+ Capital Outlay

Over 35K Capital Requested Budgeted

AdminImprove Audio Broadcast Equipment 86,000

86,000 -

Police Dept.New Patrol Vehicles (2) 110,000 CompStat Dashboards 43,450

153,450 -

Economic DevelopmentCity Branding added to Focus on Success Line 40,000 40,000

40,000 40,000

FireFire Engine/Pump (Type 1)Station Apron Repair 50,000 50,000 Infrastructure - Future Fire StationsAerial Ladder Truck (Quint) 1,200,000 - Command Staff Vehicle -2013 Lease Purchase 50,000 50,000 Fire Suppression & Rescue Equipment 60,000 20,000 Airpacks SCBA - 2013 Lease Purchase 150,000 150,000

1,510,000 270,000

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Parks & RecCommercial Band Mobile Stage Platform - CIP Fund 80,000 80,000 Kids Park Restrooms - CIP Fund - Bond 250,000 250,000 Riverfront Rehab - CIP Fund - Bond 150,000 150,000 Garrison Relocation and Rehab - CP Fund - Bond 250,000 250,000 Park/Trails Open Space & Master Plan study 122,000

852,000 730,000

MaintenanceCivic Center RehabHVAC Installation 160,000 160,000

160,000 160,000 Streets

Sidewalk Enhancements 80,000 80,000 Mingus Ave, Willard to Main St. - Bond 5,780,000 5,526,000 12th Street - Bond 3,300,000 3,329,700 Calming Island in Old Town or Arch ? 50,000 - Parking Lots in Old TownPavement Preservation - IGA W/County Mingus 300,000 - Main St. Road Diet 50,000 50,000 10th St & Main Project 320,000 320,000 Pavement Preservation - IGA with County Mingus Ave Ext. 250,000 250,000

10,130,000 9,555,700

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AirportPavement Preservation - Grant Funded 1,000,000 1,000,000 Increase Fence Height - Grant Funded 152,000 152,000

1,152,000 1,152,000

Sewer - O&MLining and Point Repair Collections 90,000 90,000 Roof Rapair at Waste Water Treatment Plant 500,000 500,000 Riverfront Reclamation Facility - CIP Funded 8,500,000 7,884,140 260 Improvements - - Lift Station 150,000 150,000 Reclaimed Water Upgrade - - WWTP Upgrades 100,000 100,000 Effluent System - - NPW Pump Replacement 36,000 36,000

9,376,000 8,760,140

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WATER- O&MWell 3-1 Generator 37,500 37,500 Midi Excavator 39,000 - 260 Improvements 1,250,000 - Arsenic Mitigation 925,000 920,000 Fire Hydrant Improvements 500,000 490,000 Well Booster Station 500,000 230,000 Well Improvements 150,000 130,000 Water System Upgrades 170,000 160,000

3,571,500 1,967,500

Total Capital Over 35K 27,066,950 22,671,340

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Major revenues update

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2015 Budget Summary

Revenue Fiscal Years Highest FYSource Notes 2011 2012 2013 2014 2015 Collectons Year

Local Sales Tax 1 $10,319,948 $10,265,356 $11,014,097 $11,707,085 $12,249,425 $10,102,433 2008State Shared Income Tax 2 $1,057,034 $950,774 $1,150,696 $1,256,780 $1,363,620 $1,623,403 2009State Shared Sales Tax $833,600 $880,250 $977,061 $950,400 $1,017,890 $1,032,214 2007Motor Vehicle Tax $582,707 $602,832 $563,851 $660,140 $621,770 $695,836 2006HURF 3 $806,386 $713,231 $778,265 $794,630 $839,050 $979,659 2007

1 - Sales Tax highest number in 2008 was at the 2.2% rate. At the current rate of 3% it would be $13,766,0452 - Collection was from 2007 (Pre-economic downturn)3 - Sate contininues hindering this revenue

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2015 Budget Summary

The Good Current GF reserve policies are being maintained Local economy showing continued signs of improvement Local sales tax is budgeted for an increase of 4.5%

The Bad Two budget rounds with GMs and Department Managers ($1M+

deficit) Fund Balance Policy not being followed in other funds Costs growing faster than revenues Many expensive projects in the works Lack of additional revenue sources Too many demands on the City for support

Outside agencies Schools County

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Funding Outside Agencies

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Core Services – organizations providing a core or mandatory service on behalf of the City, that the City would otherwise have to provide.

Value Added Benefit Service – organizations providing an ongoing service that provides a value added benefit to the community, though not mandatory, would probably be provided by the City in some manner.

Program Funding – organizations, not considered providing the services described above, seeking funding for a specific program, or event.

Building Better Community Grants - $15,000 is budgeted

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Organization FY 2014 FY 2015

Old Town Association $15,000 $10,000

Senior Center $55,000 $55,000

Humane Society $44,320 $43,880

Catholic Charities $15,000 $15,000

Chamber of Commerce

Estimate $108,000

Proposed $110,000

Old Town Center for Arts

$20,000 $20,000

Boys & Girls Club $0 $0

These organizations will be presenting on Tuesday June 10th prior to wrap-up.

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Water & Wastewater Rates

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Water & Wastewater Rates

There is still a strong need for rate adjustments Water needs to maintain Debt Service Coverage –

Should be 1.35X Continue to look for efficiencies in both systems Moody’s & S&P statements are on-line

Moody’s downgraded Cottonwood May 11, 2011 S&P downgraded Cottonwood June 12, 2013

Rate Study presentation is planned on July 1st Notice of Intent to Increase will be presented

at that time Any implementation is anticipated by October

1st

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Financing Needs

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Financing Needs

• We are moving forward with financing in FY 2015

• Refunding of the 2004 Water Bonds is planned for the November 2014 when they become callable

FY 2015 Bonding $24,050,000

Streets 6,753,955Grant (845,000) 5,908,955

General FundCommunication Center 3,610,000Lease Purchase (850,000)3 Restrooms 750,000 3,510,000

WastewaterStreet Projects 323,871Reclaimed Lines 1,785,465Removal of Double T 500,000 2,609,336

WaterStreet Projects 2,021,7092004 Bond Refunding 10,000,000 12,021,709

FY 2015 Bonding Total $24,050,000

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Reserve Funds Status

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GF Reserve Funds Status

60 Days Coverage $2,539,900 Capital Accumulation Fund $1,000,000 Undesignated Reserves (this is our only cushion)

$100,000 1% Sales Tax GF Capital $0 0.2% Sales Tax PS Capital Fund $0 Longevity Plan $0

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Future Meetings

Thursday, May 29th at 6 p.m.

Thursday, June 5th at 6:00 p.m.

Tuesday, June 10th at 6:00 p.m. (backup date)

Questions????

Documents

CITY OF COTTONWOOD FY 2015 Proposed Budget Overview