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HomeMy WebLinkAboutItem 09- PH Fiscal Year 2024-25 City Budget Adoption AGENDA ITEM SUMMARY Meeting Date: 6/17/2024 Meeting Type: Regular Meeting Staff Contact/Dept.: Nathan Bell/Finance Staff Phone No: 541.726.2364 Estimated Time: 10 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: FISCAL YEAR 2024/25 CITY BUDGET ADOPTION ACTION REQUESTED: 1. Conduct a public hearing on the Fiscal Year 2024/25 City budget. 2. Adopt/Not Adopt the following: A RESOLUTION ADOPTING THE FISCAL YEAR 2024/25 CITY OF SPRINGFIELD BUDGET, MAKING APPROPRIATIONS, AND IMPOSING AND CATEGORIZING THE TAX. ISSUE STATEMENT: The City Council is requested to hold a public hearing on the Fiscal Year 2024/25 (FY25) City Budget as recommended by the Budget Committee and approve a resolution adopting the Fiscal Year 2024/25 City budget, making appropriations, and imposing and categorizing the taxes. ATTACHMENTS: 1. Council Briefing Memorandum 2. Resolution Exhibit A: FY25 Legal Appropriations Level (Budget Committee Approved) DISCUSSION/ FINANCIAL IMPACT: See attached Council Briefing Memorandum M E M O R A N D U M City of Springfield Date: 6/17/2024 To: Nancy Newton, City Manager COUNCIL From: Nathan Bell, Finance Director Jessica Mumme, Budget & Procurement Manager BRIEFING Subject: Fiscal Year 2024/25 City Budget Adoption MEMORANDUM ISSUE: The City Council is requested to hold a public hearing on the Fiscal Year 2024/25 (FY25) City Budget as recommended by the Budget Committee and approve a resolution adopting the Fiscal Year 2024/25 City budget, making appropriations, and imposing and categorizing the taxes. COUNCIL GOALS/ MANDATE: Provide Financially Responsible and Innovative Government Services City of Springfield budget process is governed by the Oregon’s Revised Statues 294. The budget process develops an annual financial plan for the City of Springfield and documents anticipated revenues and expenditures to support the City’s objectives, maintain financial stability, and comply with statutory requirements. BACKGROUND: The Budget Committee finalized its review of the FY25 Proposed Budget on May 15, 2024, and made the following changes to the proposed budget: (1) Climate-Friendly and Equitable Communities (CFEC) Legal Expense: Increase General Fund City Attorney’s Office operating expense by $60,000, increase General Fund revenue by $51,000, and decrease General Fund reserves by $9,000. (2) Outside Legal Help: Increase General Fund City Attorney’s Office operating expense by $75,000 and decrease General Fund reserves by $75,000. (3) Tyler Technologies E-Permitting Service Contract: Increase Special Revenue Fund Community Development operating expense by $47,000 and decrease Special Revenue Fund Technology Fee reserves by $47,000. (4) Police Phone and Radio Recorder System: Increase General Fund Police operating expense by $50,000 and decrease General Fund reserves by $50,000. (5) Building Maintenance Worker: Increase Development Projects Fund interfund transfer expense by $3,000, decrease Development Projects Fund reserves by $3,000, increase General Fund reserves by $7,000, and increase General Fund interfund transfer revenue by $7,000. (6) True Up Transfers In/Out: Decrease Regional Wastewater Capital Fund interfund transfer revenue by $150,000 and decrease Regional Wastewater Capital Fund equipment replacement reserves by $150,000. Decrease Street Capital Fund interfund transfer revenue by $150,000 and decrease Street Capital Fund reserves by $150,000. Increase Development Assessment Capital interfund transfer revenue by $41,000 and decrease Development Assessment Capital interest revenue by $41,000. Increase MEMORANDUM Page 2 General Fund interfund transfer revenue by $42,448 and increase General Fund reserves by $42,448. (7) Potential Purchase of 702 A and 751 B Street: Increase Development Projects Fund interfund loan transfer expense by $1,500,000, increase Development Projects Fund interest revenue by $75,000, and decrease Development Projects Fund reserves by $1,425,000. The resulting action created the FY25 Approved Budget for Council consideration. Oregon Budget Law requires that the City Council hold a public hearing prior to any action on the adoption of the Approved Budget. Oregon Budget Law also allows the City Council to, within guidelines, adopt changes made to the budget approved by the City’s Budget Committee. Oregon Budget Law allows an increase in total expenditures within a fund by not more than $5,000 or 10% of the estimated expenditures in the fund (whichever is greater). There is no limit on the amount by which a fund can be reduced. The FY25 Budget Committee Approved Budget in the amount of $436,034,435 is as follows: City of Springfield Fiscal Year 2024/25 Budget (All Funds) Personal Services 70,416,549 Materials and Services 67,436,010 Capital Outlay 5,897,730 Capital Projects 87,396,850 Contingency 2,105,000 Unappropriated Ending Fund Balance 421,013 Reserves 170,262,279 Interfund Transfers 18,557,218 Debt Service 13,541,786 TOTAL – ALL FUNDS $ 436,034,435 RECOMMENDED ACTION: The Council is requested to first hold a public hearing on the FY25 budget as recommended by the Budget Committee. If desired, the Council may then make adjustments to the recommended budget within the guidelines discussed above. FY25 Budget Committee Approved Budget The Budget Committee is recommending an approved budget totaling 446.01 FTE and $436,034,435 in resources and requirements. ACTIONS REQUESTED The Council is requested to: 1. Hold a public hearing on the Fiscal Year 2024/25 City budget. 2. Adopt a budget by Resolution. The Council may adopt, by resolution, the budget presented this evening as approved by the Budget Committee or adopt a budget resolution that reflects changes as the Council may identify. CITY OF SPRINGFIELD, OREGON RESOLUTION NO. ___________ FY25 ADOPTED BUDGET A RESOLUTION ADOPTING THE FISCAL YEAR 2024/25 CITY OF SPRINGFIELD BUDGET, MAKING APPROPRIATIONS, AND IMPOSING AND CATEGORIZING THE TAX. WHEREAS, starting on May 13, 2024, and ending on May 15, 2024, the Budget Committee met and reviewed the proposed 2024/25 City budget; WHEREAS, on May 15, 2024, the Budget Committee recommended approval of the 2024/25 City budget for Council adoption; WHEREAS, on June 17, 2024, the City Council held a public hearing on the recommended budget; and WHEREAS, the City Council of the City of Springfield finds that adopting the budget and making appropriations is necessary under ORS 294.305 to 294.565, NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD: Section 1. The budget for the City of Springfield for the fiscal year beginning July 1, 2024, and ending June 30, 2025, on file at Springfield City Hall, in the total amount of $436,034,435 is hereby adopted. Section 2. The amount for the fiscal year beginning July 1, 2024, and ending June 30, 2025, as set forth in Exhibit A are hereby appropriated for the purposes shown therein. Section 3. The following ad valorem property taxes are hereby imposed for tax year 2023/24 upon the assessed value of all taxable property within the City: (1) The rate of $4.7403 per $1,000 of assessed value for the permanent rate tax; (2) The rate of $0.38 per $1,000 of assessed value for the voter-approved five-year Local Option operating levy for fire operations; (3) The rate of $1.40 per $1,000 of assessed value for the voter-approved five-year Local Option operating levy for police, court and jail operations; and (4) The amount of $7,120,419 for debt service for general obligation bonds. Section 4. The taxes imposed are hereby categorized for the purposes of Article XI section 11b as follows: Funds Subject to the General Government Limitation Excluded from the Limitation General Fund $ 4.7403/$1,000 Fire Local Option Levy $ 0.3800/$1,000 Police Local Option Levy $ 1.4000/$1,000 Bond Sinking Fund $ 7,120,419 Attachment 2 Page 1 of 10 Section 5. The City Manager of the City of Springfield is authorized and directed to certify the levy, as authorized by law, with Lane County, Oregon Assessor and the Lane County, Oregon Clerk, and will file a copy of the adopted budget with the Department of Revenue, State of Oregon. Section 6. This resolution shall take effect immediately upon adoption by the Council. ADOPTED by the Common Council of the City of Springfield this _____ day of June, 2024, by a vote of _______ for and _______ against. ATTEST: ________________________________________ City Recorder Attachment 2 Page 2 of 10 Dollar Amount General Fund - 100 Department Operating City Manager's Office 1,759,484$ Development & Public Works 3,682,133 Finance 2,801,586 Fire and Life Safety 14,271,424 Human Resources 829,394 Information Technology 1,670,423 Legal Services 1,045,115 Library 2,207,834 Police 17,824,949 Total Department Operating 46,092,342 Non-Departmental Transfers 624,496 Contingency 1,000,000 Reserves* 10,107,704 Total Non-Departmental 11,732,200 Total General Fund 57,824,542$ Street Fund - 201 Department Operating City Manager's Office 59,960$ Development & Public Works 7,639,660 Finance 75,128 Total Department Operating 7,774,748 Non-Departmental Transfers - Contingency 150,000 Reserves* 187,539 Total Non-Departmental 337,539 Total Street Fund 8,112,287$ FY25 LEGAL APPROPRIATIONS LEVEL Exhibit A Page 1 of 8 Attachment 2 Page 3 of 10 Dollar Amount Special Revenue Fund - 204 Department Operating City Manager's Office 2,267,892$ Development & Public Works 3,191,099 Finance 315,292 Fire and Life Safety 175,381 Human Resources 56,845 Information Technology 134,379 Library 152,805 Police 1,320,230 Total Department Operating 7,613,923 Non-Departmental Reserves* 3,191,642 Total Non-Departmental 3,191,642 Total Special Revenue Fund 10,805,565$ Transient Room Tax Fund - 208 Department Operating City Manager's Office 247,571$ Development & Public Works 30,765 Library 287,807 Total Department Operating 566,143 Non -Departmental Transfers 1,100,000 Reserves* 2,522,451 Total Non-Departmental 3,622,451 Total Transient Room Tax Fund 4,188,594$ Community Development Fund - 210 Department Operating Development & Public Works 1,579,269$ Finance 33,367 Total Department Operating 1,612,636 Non-Departmental Reserves* 7,891 Total Non-Departmental 7,891 Total Community Development Fund 1,620,527$ Exhibit A Page 2 of 8 Attachment 2 Page 4 of 10 Dollar Amount Building Code Fund - 224 Department Operating City Manager's Office 24,111$ Development & Public Works 1,651,522 Fire & Life Safety 96,795 Total Department Operating 1,772,428 Non -Departmental Contingency 35,000 Reserves* 6,252,172 Total Non-Departmental 6,287,172 Total Building Fund 8,059,600$ Fire Local Option Levy Fund - 235 Department Operating Fire and Life Safety 1,833,986$ Total Department Operating 1,833,986 Non -Departmental Contingency 45,000 Reserves* 2,419,162 Total Non-Departmental 2,464,162 Total Fire Local Option Levy Fund 4,298,148$ Police Local Option Levy Fund - 236 Department Operating Finance 765,675$ Legal Services 95,101 Police 8,344,345 Total Department Operating 9,205,121 Non -Departmental Transfers - Contingency 150,000 Reserves* 2,941,791 Total Non-Departmental 3,091,791 Total Police Local Option Levy Fund 12,296,912$ Exhibit A Page 3 of 8 Attachment 2 Page 5 of 10 Dollar Amount Bond Sinking Fund - 306 Non-Departmental Debt Service 6,965,805$ Unappropriated Ending Fund Balance* 421,013 Total Non-Departmental 7,386,818 Total Bond Sinking Fund 7,386,818$ Development Assessment Fund - 419 Non-Departmental Reserves* 493,276$ Total Non-Departmental 493,276 Total Development Assessment Fund 493,276$ Development Projects Fund - 420 Total Development & Public Works Capital Projects 437,000$ Non-Departmental Transfers 1,605,000 Reserves* 2,717,601 Total Non-Departmental 4,322,601 Total Development Projects Fund 4,759,601$ Regional Wastewater Capital Fund - 433 Department Operating Development & Public Works 4,149,000$ Total Department Operating 4,149,000 Total Development & Public Works Capital Projects 69,120,000 Non-Departmental Transfers 27,722 Reserves* 47,077,437 Total Non-Departmental 47,105,159 Total Regional Wastewater Capital Fund 120,374,159$ Exhibit A Page 4 of 8 Attachment 2 Page 6 of 10 Dollar Amount Street Capital Fund - 434 Total Development & Public Works Capital Projects 4,487,500 Non-Departmental Reserves* 14,962,060 Total Non-Departmental 14,962,060 Total Street Capital Fund 19,449,560$ Sanitary Sewer Operations Fund - 611 Department Operating City Manager's Office 88,897$ Development & Public Works 5,639,842 Finance 66,734 Total Department Operating 5,795,473 Total Development & Public Works Capital Projects 8,097,350 Non-Departmental Debt Service 1,706,800 Contingency 150,000 Reserves* 24,776,159 Total Non-Departmental 26,632,959 Total Sewer Operations Fund 40,525,782$ Regional Wastewater Fund - 612 Department Operating City Manager's Office 18,232$ Development & Public Works 25,224,848 Finance 193,181 Total Department Operating 25,436,261 Non-Departmental Transfers 15,100,000 Debt Service 4,107,750 Reserves* 10,707,149 Total Non-Departmental 29,914,899 Total Regional Wastewater Fund 55,351,160$ Exhibit A Page 5 of 8 Attachment 2 Page 7 of 10 Dollar Amount Ambulance Fund - 615 Department Operating Fire and Life Safety 6,857,495$ Total Department Operating 6,857,495 Non-Departmental Contingency 150,000 Reserves* 530,866 Total Non-Departmental 680,866 Total Ambulance Fund 7,538,361$ Storm Drainage Operating Fund - 617 Department Operating City Manager's Office 89,158$ Development & Public Works 8,047,499 Finance 66,734 Total Department Operating 8,203,391 Total Development & Public Works Capital Projects 5,065,000 Non-Departmental Debt Service 552,241 Contingency 200,000 Reserves* 15,344,717 Total Non-Departmental 16,096,958 Total Drainage Operating Fund 29,365,349$ Booth-Kelly Fund - 618 Department Operating City Manager's Office 119,669$ Development & Public Works 528,476 Total Department Operating 648,145 Total Development & Public Works Capital Projects 190,000 Non-Departmental Transfers 100,000 Contingency 15,000 Reserves* 835,978 Total Non-Departmental 950,978 Total Booth-Kelly Fund 1,789,123$ Exhibit A Page 6 of 8 Attachment 2 Page 8 of 10 Dollar Amount Regional Fiber Consortium - 629 Department Operating Finance 236,060$ Total Department Operating 236,060 Non-Departmental Reserves* 523,092 Total Non-Departmental 523,092 Total Regional Fiber Consortium Fund 759,152$ Insurance Fund - 707 Department Operating Human Resources 618,222$ Health Insurance 8,136,869 Property & Liability 2,134,936 Worker's Compensation 1,330,851 Total Department Operating 12,220,878 Non-Departmental Contingency 200,000 Reserves* 16,776,798 Total Non-Departmental 16,976,798 Total Insurance Fund 29,197,676$ Vehicle and Equipment Fund - 713 Department Operating Development & Public Works 1,442,238$ Fire & Life Safety 741,062 Information Technology 970,084 Library 8,000 Police 85,000 Total Department Operating 3,246,384 Non-Departmental Debt Service 209,190 Reserves* 7,409,997 Total Non-Departmental 7,619,187 Total Vehicle and Equipment Fund 10,865,571$ Exhibit A Page 7 of 8 Attachment 2 Page 9 of 10 Dollar Amount SDC Administration Fund - 719 Department Operating Development & Public Works 437,183$ Finance 48,693 Total Department Operating 485,876 Non-Departmental Contingency 10,000 Reserves* 476,796 Total Non-Departmental 486,796 Total SDC Administration Fund 972,672$ TOTAL RESOLUTION 436,034,435$ *Reserves and Unappropriated Ending Fund Balance are not appropriated for spending and are shown for information purposes only. Exhibit A Page 8 of 8 Attachment 2 Page 10 of 10