HomeMy WebLinkAboutItem03 FY18 Mid-Year Budget Update AGENDA ITEM SUMMARY Meeting Date: 1/22/2018
Meeting Type: Work Session
Staff Contact/Dept.: Bob Duey, Finance Paula Davis, Finance
Staff Phone No: 541.726.3740
541.726.3698 Estimated Time: 60 Minutes
S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and Innovative Government
Services ITEM TITLE: FY18 MID-YEAR BUDGET UPDATE
ACTION REQUEST: No Action. Staff is seeking general Council guidance as it works on both the FY19 and the FY20 budgets that will be presented formally later this spring.
ISSUE STATEMENT: As part of the consolidation of the City’s strategic planning program and budgeting for outcomes program the Administrative staff has begun work on the FY19 and
FY20 budget preparation processes. As a result of possible significant changes to
programs and service levels over this two year period to address both recently identified Council preferred outcomes and rising costs, staff is asking to discuss
with Council possible options for continued sustainability. The timing of this work
session is allowing for a preliminary consideration of the current planning for FY19 and identifying challenges anticipated in FY20.
ATTACHMENTS: 1. FY18 Mid-Year Budget Update Power Point 2. Council Outcomes 3. Unmet Needs Topics
DISCUSSION/
FINANCIAL IMPACT:
The City of Springfield has consistently received strong community support for the services it provides as evidenced by community survey results and success in our
elections to renew public safety special levies. The community financially supports
these services through a combination of user fees, charges for services, local taxes, state shared revenue and a many other resources. One of the responsibilities the
City has is to utilize and allocate the available resources to the various provided services. In attempting to offer a consistent level of service from one year to the next, the City has found, as many agencies, that annually the cost of those services
out grows the identified resources. Increased staffing costs, the need to expand the use of technology, the cost of equipment and the care of infrastructure are all factors on the expense side, but just as much of a factor on the revenue side is the
need to see available resources grow at a rate to support consistent services being offered.
To be able to achieve financial sustainability, management has been taking a series of steps over that past several years to put a budgeting decision model in place to
help address the regularly occurring $1.5M resource gap in our General Fund.
Discussion at this work session is intended to provide staff with general direction not only for the FY19 budget but also FY20 to help staff develop a 12 month work
plan in preparation for developing a sustainable response for the FY20 budget
process.
CITY OF SPRINGFIELD
FINANCE DEPARMENT
FY 18 MID-YEAR BUDGET UPDATE
COUNCIL WORK SESSIOIN JANUARY 22, 2018
PREPARATION FOR THE FY19 & FY20 BUDGET PROCESSES
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
FY 18 MID-YEAR BUDGET WORK SESSION AGENDA
Update on Current Budgeting Practices for Outcomes
Council Outcome Results
Use of Outcomes for Performance Measures
FY18 & FY19
Current and Tentative Actions
Unmet Needs Topics
FY20 Budget
Outlook for the next Biennium
Next 12 Months
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
FINANCIAL SUSTAINABILITY
~ A state or local government is financially healthy if it can deliver the services
its citizens expect, with the resources its citizens provide, now and in the future.
Year 4 Priority Based Budget Program
o Linking Programs to Council Goals
o Performance Measurements
Updating of Financial Policies
o Completed Reserve, Revenue, Accounting & Financial Reporting,
Long Range Financial Planning, Expenditure, Investment
o Future Reviews – Budgeting, Capital Asset Management, Debt
Council update of 1-3 Year Outcome Priorities
o Over 90 Outcomes Linked to 6 Council Goals (Attachment #2)
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
FINANCIAL SUSTAINABILITY
General Fund Influences
For Property taxes, the City’s average AV growth over last 8 years has
been 3%. Lane County’s overall has averaged 3.2%
For State Shared Revenue, the City’s Population Growth since 2011 has
been 1.67% while the State’s Total during this same period has been
7.67%
Overall Net Revenue Growth since FY14 has Averaged only 1.5%
The City has addressed its low Revenue Growth by controlling
expenditures
o Since FY10, the City’s FTE count has been reduced from 449.45 to
407.6 (-10%) with the exception of opening the Jail in FY10 with 18
personnel
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
FINANCIAL SUSTAINABILITY
General Fund Influences (con’t)
o Material & Services has grown by an average of 3.2% during this
same period
70% of General Fund Resources are Allocated to Public Safety Programs
with policy adopted minimum staffing and response time requirements
PERS Rates saw a +30% increase for FY18 and is expected to see similar
or higher increases every 2 years (FY20, FY22 etc) while addressing an
actuarially determined unfunded liability of $39.6M
The City Retirement Plan is susceptible to market changes and currently
has an unfunded actuarial accrued liability of $12.6M
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
$3.5
$3.7
$3.9
$4.1
$4.3
$4.5
$4.7
$4.9
$5.1
Actual
FY10
Actual
FY11
Actual
FY12
Actual
FY13
Actual
FY14
Actual
FY15
Actual
FY16
Actual
FY17
Actual
FY18
Forecast
FY19
Forecast
FY20(Billions) Taxable Value
Actual Taxable Value Pre-Recession Trend
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
$1.5m tax
revenue
Attachment 1
Revenue Sharing & Population Growth
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
0.45%
0.24% 0.25%
0.13% 0.12%
0.01%
0.47% 0.53%
0.68%
0.91%
1.11%
1.29%
1.41%
1.74%
0.0%
0.5%
1.0%
1.5%
2.0%
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
FY11 Actual FY12 Actual FY13 Actual FY14 Actual FY15 Actual FY16 Actual FY17 Actual FY18 Est ActualTotal Revenue Sharing ('000s) Total Revenue Sharing
City of Springfield
Total Revenue Sharing
City of Springfield Population Growth Attachment 1
Total PERS/OPSRP Cost FY16 Actual to FY22 Projected
FY 2019 COUNCIL WORK SESSIOIN JANUARY 22, 2018
$2,123 $2,180 $2,933 $3,158 $4,254 $4,360 $5,712 1,990 1,950
2,605 2,753
3,679 3,756
4,901
0
2,000
4,000
6,000
8,000
10,000
12,000
FY16 Actual FY17 Actual FY18 Adopted FY19 Projected FY20 Projected FY21 Projected FY22 ProjectedPERs (000's) General Fund All Other
FY16 FY18
FY20 PERs
Preliminary
Rates
12.84%16.85%22.33%
5.21%8.31%13.75%
9.95%13.08%18.48%
PERS (w/o 6%)
Tiers 1 and 2 - Blended
OPSRP- General
OPSRP - Police/Fire
Springfield UAL as of December 31, 2015 $39,592,814
Attachment 1
FINANCIAL SUSTAINABILITY
FY18 Current Year Adjustments - $1.3M Impact
The current budget for FY18 attempted to keep ongoing
community services in place while addressing the most
pressing issues. High level changes were:
Added $100,000 towards the City’s economic
development effort
Added contractual assistance to IT for technology
security efforts
Added 1 FTE to begin process of updating the Development Code
Reduced .5 FTE CMO Administrative Assistant
Reduced 1 FTE DPW Building & Land Development Manager
Reduced 1 FTE Human Resource Analyst
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
FINANCIAL SUSTAINABILITY
FY18 Current Year Adjustments - $1.3M Impact (con’t)
Reduced 1 FTE Finance Management Analyst
Reduced 1 FTE Fire Service Bureau Manager
Reduced 2 FTE Ambulance Billing Techs
Reduced 1 FTE Police Deputy Chief & required 24 Month Vacancy
Management
Material & Services Adjustments for All Departments
Use of Reserves
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
FINANCIAL SUSTAINABILITY
FY19 General Fund Tentative Budget Balancing Proposals
Additions
o Economic Development
o UGB expansion legal fees
o IP Alerting
o Police Radio Replacement
o IT Security Officer
Reductions
o CMO –Reduction in contribution to partner agencies, e.g.
o Team Springfield, Greater Eugene and material and service
changes
o DPW – Reduction in Materials & Services
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
FINANCIAL SUSTAINABILITY
FY19 General Fund Tentative Budget Reduction Proposals (con’t)
o HR – Reduce 1 FTE HR Analyst in risk and benefit programs
o Finance/Court – Staff reduction or changes, materials and services
o Fire – Delay vehicles and equipment purchase, reduce overtime and
materials and services changes
o Library –Reduction in material and services and delay in book and
material purchases
o Police – 24 months vacancy management, delay in vehicles and
equipment purchases
o Utilize State and Local marijuana tax revenue to meet public safety
current services needs
o Consider additions to service delivery through funding of any unmet
needs papers (Attachment 3)
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
FY 2019 COUNCIL WORK SESSIOIN JANUARY 22, 2018
Police
39%
Fire and Life
Safety
31%
Development
& Public
Works
7%
Finance
6%
Information
Technology
5%
Library
4%
City
Manager's
Office
4%
City
Attorney
2%
Human
Resources
2%
FY19 Projected
General Fund
Police
46%
Fire and Life
Safety
28%
Development
& Public
Works
6% Finance
6%
Information
Technology
4%
Library
4%
City
Manager's
Office
3%
City Attorney
2% Human
Resources
1%
FY19 Projected
Tax Funds
% of Total Operating Budget
Attachment 1
FINANCIAL SUSTAINABILITY
FY20 General Fund Budget Trends
Projections into FY20 indicate similar financial picture as both FY18
and FY19
o Estimated General Fund Expenditures Over Revenue is between
$1.7 and $2M
o AV growth in projected to still be in the 3% range
o Net operating revenues still expected in the 1.5% range
o New PERS rates for FY20 & FY21 will result in an annual
budget increase of $1.5M city-wide
o All employee groups except one are entering into open contract
periods or due for the completion of market studies
o FY20 has multiple unmet needs papers to address Council
outcomes
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
FINANCIAL SUSTAINABILITY
FY20 Priorities for Improving Sustainability
Improve community economic base
o Continue economic development efforts to create priority sites,
build business retention and expansion
Encourage population growth
o Affordable housing efforts, job creation
Increase and stabilize revenue base
o Cost recovery models for existing services
o Additional revenue options via taxes, fees or charges
Address current service levels and delivery methods
o Evaluate service reduction options
o Consider alternative service delivery models
o
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
FINANCIAL SUSTAINABILITY
FY20 Priorities for Improving Sustainability (con’t)
Cost Containment of current services
o Employee wage and benefit options
o PERS long term strategy
Capital Asset Management
o Financial strategy for existing buildings, streets, and other city
infrastructure
o Financial strategy for new buildings or utility infrastructure
Liquid Asset Management
o Continue work on long range financial plan that includes
development, review and adherence to financial policies for all
funds
FY 2019 COUNCIL WORK SESSION JANUARY 22, 2018
Attachment 1
Priority Based Budget Results Map Information
Listed by Council Goals
Promote and Enhance our Hometown Feel while Focusing on Livability and Environmental Quality
Promotes access to a variety of cultural, artistic and educational events
Promote Springfield
Promote public art
Support and participate in family activities
Work with TEAM Springfield to support education, recreation and services
Encouraging Council involvement in the community;
Provide career, library youth services and opportunities that improve graduation rates
Encourage diversity and availability for new and affordable housing while fostering a sense of neighborhood
Partnerships to promote and encourage a sense of neighborhood
Complete land banking project for affordable housing
Explore and identify neighborhoods, determine what is already in place and what we can add to
Incentive strategies that encourage diversity and availability of housing
Fosters an involved, engaged and well-informed community
Activate new website
Encourage continued social networking interactions
Support Springfield staff participation in community projects
Ensures public facilities and infrastructure are welcoming and accessible to a diverse community
Maintain and develop bike lanes and encourage partnerships to complete bike trails
Develop and improve City Hall and Plaza area for public gathering space
Public confidence that building are safe
Manages and mitigates factors that impact the environmental quality of its air, water, land and other natural resources
Continue participation in partnership with MWMC
Wetland reclamation projects
Protect sensitive environmental areas from illegal or over use
Attachment 2
Priority Based Budget Results Map Information
Listed by Council Goals
Maintain and Improve Infrastructure and Facilities
Plan for community sustainability and responsible growth
Implement and track sustainable 5-year Community Improvement Plan (CIP)
Improve site readiness (make shovel-ready)
Minimize natural disaster risk
Support publically owned fiber infrastructure
Update storm water and sewer master plans
Repairs, enhances and continuously invest in well-maintained public infrastructure system
Reduce deferred maintenance
Reduce backlog of street maintenance and repairs
Ensures public facilities are well-maintained and meet the needs of the community
Investing in replacement or improvement of key buildings or structures
Minimize future impact and costs
Designs, operates and manages a well-maintained technology infrastructure
Maintain and improve IT infrastructure and security
Secures resources and advances community interest for priority projects
Partner with development community to determine funding for infrastructure
Identify priority projects while identifying funding sources
Establish benchmarks for replacement funding of the city’s major infrastructure
Attachment 2
Priority Based Budget Results Map Information
Listed by Council Goals
Foster an Environment that Values Diversity and Inclusion
Supports the arts; promotes participation in community events and diversity groups
Foster arts reflective of the diverse community
Expand outreach to diverse community through community events
Participation and representation in diversity groups and activities
Promote outreach for small businesses, minority and women-owned businesses
Increase small business outreach; minority and women-owned
Participate in reverse vendor fairs
Fosters an inclusive environment that maintains awareness of accessibility needs for disabled individuals
Implement ADA transition plan
Increase accessibility for disabled individuals
Maintaining awareness of accessibility needs
Create a welcoming community that promotes healthy families with avenues for upward mobility and prosperity
Support groups who assist new arrivals to community
Attracts and promotes a diverse workforce that is reflective of the community
Outreach to diversified community for employment opportunities
Promote vocational-oriented programs
Increase workforce in our community
Attachment 2
Priority Based Budget Results Map Information
Listed by Council Goals
Strengthen Public Safety by Leveraging Partnerships and Resources
Provide a continuum of public safety/social services responses that provides access to mental health services
Leverage partnerships with service providers to identify entry points for those in need
Develop alternative sentencing programs in municipal court for a diverse population
Provide training for staff for early recognition and available alternative responses for those in need
Engage greater number of citizens in support for safer community
Increase public safety outreach programs to promote safer neighborhoods
Increase number of community members attending Citizen Police Academy
Promote household emergency management preparedness
Improve non-vehicular traffic safety through infrastructure improvements
Evaluation and assessment of sidewalks, bicycle paths, lighting, and graffiti abatement
Continued partnership with ODOT to reduce pedestrian risks through infrastructure
Provide grant funding to assist property owners for sidewalk maintenance
Stabilize public safety financing by considering alternative service models
Review response times within City code for appropriateness
Stabilize funding for fire services by investigating alternative models for service response
Provide services focused on neighborhood level; Sergeants assigned to certain neighbors or communities
Reduce property crimes resulting in safer neighborhoods
Increase staff training for emergency management and public safety response
Attachment 2
Priority Based Budget Results Map Information
Listed by Council Goals
Encourage Economic Development and Revitalization through Community Partnerships
Enables and encourages opportunities for local business to be successful
Expand available business sites
Support business incubations
Partnerships to increase opportunities
Stimulates economic growth by encouraging investments
Achieve economic growth wins/successes; allocate funds to programs for economic development
Invest in programs for economic development;
Build partnerships that encourage a regional approach to economic development
Advance opportunities and incentives that encourage private investment, bringing about new jobs and capital investment
for businesses
Fast and consistent speed to market
Update development code for clarity
Public access to high speed internet
Partner with ODOT to finalize transportation plan
Identify City with new technologies while promoting community growth
Increase and identify City with new technologies: (Tech, natural resources, CLT wood products,
healthcare)
Partner with community to market and promote Springfield
Community engagement with the big picture and goal
Advertise / promote public safety
Implement Springfield Look initiative
Enables and encourages opportunities for citizens to be successful
Support, pursue and increase partnerships that increase training opportunities
Support partnerships that increase training opportunities for high school students
Attachment 2
Priority Based Budget Results Map Information
Listed by Council Goals
Provide Financially Responsible and Innovation Government Services
Supports decision-making with timely and accurate reports and analysis
Track budgets, actual expenditures and monitor loans
Balance current revenue with expenditures
Develop responsible budget that the identifies the communities highest priorities
Attracts, develops and motivates a high-quality, diverse, engaged and productive workforce
Improve productivity in workforce
Partner with other agencies to expand wellness clinic
Provide continuous customer service training
Establish strong recruitment and succession planning
First issue resolution; provided training and grant autonomy to City employee’s to resolve the issues of
the community
Protects, manages and optimized financial resources
Efficiently manage costs
Lobby for PERS and public contracting reform
Work with State and Federal governments to explore funding options
Pursue options/alternatives that will reduce reliance on fire and police levies
Continue conversations with state and federal representatives
Provide legislative support to staff, officials and regional partners
Set clear expectations and track and evaluate intergovernmental agreements, grants, and partnerships in a
mutually beneficial manner
Delivers responsive and innovate services to customers while sustaining financial health
Sustain a credit rating within a health range for our demographics
Brainstorming sessions; welcoming suggestions and ideas
Leverage new technologies to improve productivity in the workforce
Observe financial policies and funding reserves appropriately
Maintain a consistent level of service year after year
Be adaptive and proactive in our use of best practices
Identifies and responds to issues relating to non-regulatory and non-policy compliance
Provides assurance of regulatory and policy compliance to minimize and mitigate risk
Attachment 2
Unmet Needs Request Attachment 3 Page 1 of 1
FY19 PBB Program Request
Exeutive Team Offsite
ATTACHMENT 3 - SIGNIFICANT UNMET NEED REQUESTS
ID Dept.Status Program Name Pg. No. Resource Request Total
3 DPW new Capital Projects 8 ADA update needs on street corners $200k
4 DPW FY18 Affordable Housing 11 Springfield specific housing approach $100k-$500k
9 DPW FY18 Capital Projects 14
Continue clean-up of the Police firing
range $430k
15 DPW FY17
Street System
Maintenance 24 $5m
26 IT Update Shared Systems 31
Replace city telephone system $871k with
an ongoing support of up to $277k which
includes .5 FTE cost does not include
required generator for City Hall
$871k onetime $177k
ongoing
30 POL Update Patrol 35 Body cameras $180k
32 POL Update Cahoots 37
Continue funding Cahoots, or replacement,
after grant runs out set to expire at the end
of FY19 $400k
38 POL FY18 Patrol 42
Replace the portable and mobile radio
subscriber units over three years
$1.2m ($400k x 3yrs)
onetime
11 DPW FY18
Comprehensive Land
Use/Transportation
Planning 21 UGB expansion in north Gateway $1m
12 DPW FY18
Comprehensive Land
Use Planning 25
Contractual service or staff to creation and
adoption of comprehensive plan map to
replace the metro plan diagram. $125k
January 5, 2018