CITY OF MERIDIAN FY2012 BUDGET HEARING

Mayor – Tammy de Weerd

Council President – David Zaremba

Council Vice President – Brad Hoaglun

Councilman – Keith Bird

Councilman – Charlie Rountree

FY2012 Budget Recap• This budget is not just an “income statement” budget but also a “balance

sheet” budget. It is not prepared looking at one year in isolation but looking out at least five years forward and evaluating revenue streams and fund balances.

• First year we incorporated our five year capital improvement plan.

• We are not taking any of the allowed statutory increase for property tax.

• Significant changes in the General Fund include increasing the number of command personnel in the Fire Department and three Parks capital projects from the CIP plan.

• The Enterprise Fund is not adding any personnel and is concentrating on core functions, the treatment plant, wells, and line repair and expansion with the exception of some reclaimed water projects.

FY2012 Revenue Forecast• FY2012 Development Services revenue (building permit revenue) is

budgeted 12% below the FY2011 budget. This is due to the a year over year decline in FY2011 residential building permits. FY2011 revenue will in fact slightly exceed the budget due to an increase in commercial building permits. Commercial and even residential building permit sales projections have a high possibility of error so budgeted amounts remain conservative.

• Interest rate revenue will be insignificant.

• State Revenue Sharing (sales tax) will remain at about $3 million as no surge in consumer spending is expected. Revenue sharing is budgeted at $2.75 million to provide a safety cushion.

• The Enterprise Fund revenue budget is 3% below the FY2011 revenue budget. This is a protection against the variability in water sales. Sewer sales are lowered just slightly. The budget does not include a fee increase or a significant increase in the number of accounts.

• Assessment revenue from new buildings connecting to the utility system will remain relatively low consistent with the last two years.

• The City is not taking the 3% allowable property tax budget increase. Property tax increases by 2% due to new construction.

• Overall the General Fund revenue is budgeted at almost exactly the same number that it was in FY2011.

Accounting Details• We now show transfers as a separate line below personnel, operating

expense, and capital outlay so true cost of the department before transfer will be reflected.

• 50% of Finance, IT, HR, Construction Manager, and Legal Department to Enterprise Fund

• 15% of Mayor’s Office personnel (except Mayor) to Enterprise Fund• City Hall cost split with all departments in building according to square

footage

• The Enterprise Fund added a new department headed by the Environmental Program Manager. This department is funded with monies taken from other departments within the fund.

• Definition of “total” budget can vary depending on inclusion of carry forward. This presentation often excludes carry forward in order to represent the “new” budget.

• Inclusion of “Use of fund balance” balances the total budget. It is generally not used in the revenue graphs to highlight the new sources of revenue. Use of fund balance offsets carry forward or is for one-time capital projects selected to be spent from amounts saved in the fund balance. Used for Enterprise Fund depreciation (non-cash).

Total City of Meridian FY2012 Budget $67,136,453

New Capital14%

Carry Forward15%

Wages/Operations71%

Projected FY2012 Total City of Meridian Revenue$53 Million

Development Services

Utility Sales

Other Utility Revenue

Property Tax

Intergovernmental

Utility Connections

General Fund Impact Fees

Misc General Fund

Franchise Fees

Total City of Meridian FY2012 New Budget by Class - $56,763,709 (w/o CF)

Capital16%

Operating31%

Personnel52%

City of Meridian Total FY2012 City Budget by Department/Division - $56.8 Million (w/o CF)

Public Safety37%

Develop Services

3%

PW/Utility Billing7%

Water14%

WWTP24%

Support Services

6%

Parks/Rec9%

• For the last three years about 80% of each year’s new budget has been for on-going costs, personnel and operating. This includes one-time operating items which are generally immaterial for General Fund but can be substantial for the Enterprise Fund.

Total City of Meridian Budget History

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

FY2012 FY2011 FY2010 FY2009 FY2008

Personnel & Operating

Carry Forward

New Capital

Projected FY2012 City of Meridian General Fund Revenue $30.3 Million

Property Tax65%

Development Service Fees

6%

Other Govern Revenue Sharing

17%

Impact Fees3%

Franchise Fees4%

General Fees/Misc

5%

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

General Fund Revenue DistributionGrant Revenue

Impact Fees

Discretionary Revenue

Base Budget

• This Graph illustrates only Funds 01 through 20• 70% of the FY2012 Base Budget is Public Safety

-$2,000,000

-$1,000,000

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

City of Meridian Development Services Fund Discretionary Revenue Discretionary Revenue

Base Budget

Property Tax - FY2012

• Not taking the allowable 3% increase in budget authority means foregoing $568,435.

• Total taxable value of all Meridian property dropped just under 4% percent (compared to 10.5% last year). Total residential property values dropped 7.5% while total commercial property values dropped 1.28%.

• Property tax revenue increased $385,000 due to new construction. ($433,157 from new construction last year)

Change in Property Tax Revenue Year Over Year Increases

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012

Change in Property TaxRevenue

Change in Taxable Value to Change in Levy Rate

$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$6,000,000,000

$7,000,000,000

FY2003FY2004

FY2005FY2006

FY2007FY2008

FY2009FY2010

FY2011FY2012

0.000000000

0.000500000

0.001000000

0.001500000

0.002000000

0.002500000

0.003000000

0.003500000

0.004000000

0.004500000

0.005000000

City Taxable Value

Levy Rate

`

Impact of Levy and Market Value Change Average Residential Property

City of Meridian Change in Levy Rate

2011 2010Assessed Value $147,725 $155,500

Home Owners Exemption $73,863 $77,500Taxable Value $73,862 $78,000Levy Rate 0.004331 0.004090Tax $319.90 $319.02

Estimated City of Meridian Resident 2011 Property Tax

24%

1%

9%

20%5%

0%

1%

City of Meridian 33%

3%

4%

Ada County

Emergency Medical

Ada CountyHighwaySchool District #2

Meridian Library

Meridian City

Meridian Cemetary

Mosquito Abatement

Western AdaRecreationCollege of WesternIdaho

Total General Fund(funds 01 thru 55)

FY2012 New Budget Request - $30.85 Million

(excluding Carry Forward)CIP Fund Carry Forward - $1.7 million

City of Meridian FY2012 General Fund Budget by Program $30.85 million

Police37%

Fire28%

Building3%

Planning3%

Parks & Rec17%

Econ Develop

1%

Admin11%

City of Meridian FY2012 General Fund Budget by Object

New Capital9%

Operating21%

Personnel70%

• FY2012 Total Enhancements, Replacements, and Wage Adjustments - $2,972,788

– Personnel - $502,826 : $165,260 transfer to Enterprise Fund Total personnel cost increased 3% between FY2011 and FY2012. Between FY2008 and FY2012 total personnel cost increased 18%.

– Operating - $223,204– Capital - $2,415,670 ($2,385,500 from Capital Improvement Plan)

City of Meridian General Fund Annual Budget Comparisons(Funds 01 thru 55)

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

FY2012 FY2011 FY2010 FY2009 FY2008

Capital

Operating

Personnel

General Fund – Police Department FY2012 Budget Request

• Small grants and small equipment upgrades - $181,921

• Moved the Police Pay Step Plan 3%

• Vehicle Replacement $285,500

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

Personnel Operating Capital

FY2012 Police Budget Request

FY2012

FY2011

General Fund Fire Department FY2012 Budget Request

• 3 Division Chiefs- $405,803

• Bush Chassis - $49,500

• Capital Replacements - $113,000

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

Personnel Operating Capital

FY2012 Fire Budget Request

FY2012

FY2011

General Fund – Parks and Recreation FY2012 Budget Request

• Capital Improvement Plan projects– Field House - $500,000– Pathway Connections -

$100,600– Maintenance Facility -

$1,547,895

• Franklin Road - $66,333

• Increase Recreation Employee to 2/3rd Time - $22,824

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Personnel Operating Capital

FY2012 Parks and Recreation Budget Request

FY2012

FY2011

General Fund Administration FY2012 Budget Request

• City Hall Building Maintenance Worker - $43,058

• 1.5 Additional GIS staff - $118,824

• Various Wage Adjustments - $45,742

• Street Lights $51,000

• IT Software and Hardware Replacements - $148,245

City Administration FY2012 Budget Request $5.2 Million Before Transfers

7%

11%

2%

15%

10%20%

8%

10%

10%

7%City Clerk

City Hall

Council

Finance

Human Resources

InformationTechnologyLegal

Mayor's Office

Other Government

Street Lighting

Development Services FY2012 Budget Request

• Planning South Meridian Public Outreach - $40,000

• Wage Adjustment - $4,926

Development Services FY2012 Budget Request $2.1 Million

Planning42%

Building50%

Economic Development

8%

FY2012 Enterprise Fund Budgeted Revenue - $22,690,000

Misc/Int5%

Water Connection

Fees5%

Sewer Usage Sales52%

Water Usage Sales30%

Sewer Connection

Fees8%

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

BudgetFY2012

BudgetFY2011

BudgetFY2010

BudgetFY2009

BudgetFY2008

BudgetFY2007

Budget FY2006

BudgetFY2005

Enterprise Fund Revenue Distribution Cash Basis

Discretionary Revenue

Base Budget

• Connection and utility sales revenue are mixed in this graph. Connection revenue has largely paid for infrastructure expansion and sales revenue for day to day operations costs but they are mixed in the fund balance.

• Historically we include depreciation but remove it for consideration of “balancing” the budget since it is a financial accounting number.

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

BudgetFY2012

BudgetFY2011

BudgetFY2010

BudgetFY2009

BudgetFY2008

BudgetFY2007

Budget FY2006

BudgetFY2005

Enterprise Fund Revenue Distribution Cash Basis

Discretionary Revenue

Base Budget

-$5,000,000

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

BudgetFY2012

BudgetFY2011

BudgetFY2010

BudgetFY2009

BudgetFY2008

BudgetFY2007

Budget FY2006

BudgetFY2005

Enterprise Fund Revenue Distribution Financial Basis (including depreciation)

Discretionary Revenue

Depreciation

Base Budget

City of Meridian FY2012 Enterprise Fund Budget Request PC/OE/New Capital - $25.9 Million New Enhancements - $7.73 Million

City of Meridian Total Enterprise Fund FY2012 Budget - $25,916,501 (w/o CF)

Water32%

Utility Billing3%

Public Works13%

WWTP52% City of Meridian Enterprise Fund Total FY2012

Budget Request by Object (no C/F)

Personnel30%

Operating44%

Capital26%

Enterprise Fund FY2012 Enhancement Requests

• Water –Well Development and Rehabilitation - $763,413

• Water – Water Mains and Water Lines - $905,000

• Water – Pressure Equalization - $331,500

• Water – Machinery and Equipment - $268,000

• Water – Backflow Rebates - $203,000

• Public Works – Source Water Master Planning - $240,000

City of Meridian Enterprise Fund FY2012 Operating Enhancement Requests - $1,069,068

Water54%

WWTP23%

PW23%

City of Meridian Enterprise Fund - FY2012 New Capital Budget Request - $6.7 million

Carry Forward $5.9 million

Water, $1,925,000

WWTP, $4,738,500

Carry Forward,

$5,918,375

Enterprise Fund FY2012 Enhancement Requests

• Wastewater – Treatment Plant Improvements - $2,748,413

• Wastewater - Sewer Lines - $1,670,000

• Wastewater - Machinery and Equipment - $218,500

• Wastewater - Reclaimed Lines - $350,000

City of Meridian Enterprise Fund FY2012 Operating Enhancement Requests - $1,069,068

Water54%

WWTP23%

PW23%

City of Meridian Enterprise Fund - FY2012 New Capital Budget Request - $6.7 million

Carry Forward $5.9 million

Water, $1,925,000

WWTP, $4,738,500

Carry Forward,

$5,918,375

City of Meridian FY2011 Budget Amendment

August 23, 2011

City of Meridian FY2011 Budget Amendment

City of Meridian FY2011 Budget Amendment

City of Meridian FY2011 Budget Amendment

City of Meridian FY2011 Budget Amendment

City of Meridian FY2011 Budget Amendment

• Summary of major FY2011 Amendments• General Fund

– Parks Land Acquisition - $540,000– Contracted Legal Expenses - $1,500,000– Settlement Expenses - $2,300,000– City Hall Repairs - $1,883,700

• Enterprise Fund– Carryforward Adjustment to Actual - ($3,457,180)– Land Acquisition - $21,000

City of Meridian FY2011 Budget Amendment

City of Meridian FY2011 Budget Amendment

City of Meridian FY2011 Budget Amendment

• Any Questions

Fund Balance Policy

Why? To comply with GASB 54

When? Must approve a policy by year end

What the policy defines? Only applies to Governmental funds

Defines the 5 designations allowed to categorize fund balances

Delegates authority to assign funds (to Stacy)

Provides spending priority (restricted first)

Clarifies minimum fund balance reserve (4months)

Policy Defines Fund Balance1. Nonspendable – non cash funds such as inventory, long term notes,

property held for sale, prepayments or endowment funds– Fire Prevention & Burnout Trust Funds (only $4,000)– Prepayments for flex plan, postage, software maintenance plans, insurance

2. Restricted – external parties constraints, State Legislation, Federal or Court

– Impact Fund– Debt Service Fund– Grant Fund

3. Committed – internal constraints or self imposed restrictions, formally made by Council prior to year end for a specific use

– Budget of fund balance4. Assigned – internal self imposed restrictions but Council can grant

the authority to an appointee– Carryforward, commitments or encumbrances– Capital Projects Fund– Public Safety Fund

5. Unassigned – available fund balance– Minimum fund balance reserve

Action needed by Council

Adopt Fund Balance Policy by 9/30/2011

Questions ???New Designations Govermental

NonspendableFire Trust Fund 4,078 Prepaid items 206,455

RestrictedImpact Fund 1,964,241 Police Debt Service -

Committed -

AssignedCommitments (contracts) 216,799 Fund Balance Budget for Carryforward 3,009,195 Capital Projfects Fund 2,519,705 Public Safety Fund 2,070,983

UnassignedGeneral Fund 16,208,507

TOTALS 26,199,963

Prepared by the City of Meridian Department of Financial Management and Planning

For More Information call City Hall

at 888 – 4433, email us at skilchenmann@meridiancity.org or check out our City of Meridian website at www.meridiancity.org – Finance Department