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FY 2019-2020 BUDGET PRESENTATION

Despite challenges, positive projects and initiatives are underway to strengthen the City's infrastructure and quality of life. Focus on grant projects, fee changes, employees, budget re-cap, future development, and council goals impact.

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FY 2019-2020 BUDGET PRESENTATION

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  1. FY 2019-2020 BUDGET PRESENTATION May 21, 2019

  2. FRAMEWORK PURPOSE VISION MISSION

  3. FOUNDATION Despite the continual challenges the City faces, there are a number of positive projects and initiatives underway which strengthen the City’s infrastructure and overall quality of life for citizens.

  4. FOCUS • Grant/Capital Projects • Fee Changes • Employees • Budget Re-cap • Future • Budget Development • Statistics • Budget Summary • Council Goals Impact • Budget – All Funds • Highlights • General Fund • Hospitality Tax Fund • Gross Revenue Fund • Solid Waste Fund

  5. Budget Development

  6. Budget Development We are required by law to operate under an annual balanced budget ordinance. CCC

  7. STATISTICSOverlapping Millage Rates CCC

  8. STATISTICSOriginal Budget – 5 year History CCC

  9. BUDGET SUMMARY FY20 Council Goals - Impact Must Do #1 Explore Public/Private Partnership Opportunities with the Chesterfield Could Do#2a Appropriate $150,000 for Hospitality Tax Grants Could Do#2b Provide Assistance to the Cultural Arts Center Expansion Project Budget Impact: $300,000 Note: This is included as HTAX grants in the recommended budget.

  10. BUDGET SUMMARY • FY20 Council Goals - Impact • Should Do#3 Phase In Implementation of the Evergreen Comp & Pay Study Budget Impact: Phase 1 - $278,705 • Must Do #3a Develop a 2020 Census Outreach Program Budget Impact: $2,000 • Should Do #2 Implement and Enforce Truck Restriction Routes & Deploy Effective Signage Budget Impact: $2,000

  11. BUDGET SUMMARY 2019-2020 Recommended Budget CCC

  12. BUDGET SUMMARY FY 20 - Highlights • All Funds • Implement Phase1 of the Compensation Restructure • General Fund • No Millage increase • Decrease in the local option sales tax credit factor to 0.003723 • Building & Zoning Fees updated throughout • Hospitality Tax Fund • Includes 300,000 for grants • Gross Revenue Fund • No Rate Increase • New Fee for Meter Checks - $25.00 • New Fee for dewatering and solid waste removal • Solid Waste Fund • No Rate Increase

  13. BUDGET SUMMARY FY 20 - Highlights • Salaries & Benefits • Compensation • Recommending Phase 1 of the Compensation Restructure per the Evergreen Compensation & Pay Study • Recommending cost of living increase for employees not affected by • Phase 1 of the Compensation Restructure • 1% Increase Employer Retirement Contribution • No increase in Health Insurance Premiums • Employee benefits eliminated • Education Reimbursements • Wellness • YMCA Memberships • Staffing Levels • New Position - Public Safety IT Technician • New Position - Part-time Associate Judge • Reclassify – Performing Arts Manager as Part-time • Eliminate Field/Recycling Coordinator • Create Transfer Station Superintendent

  14. GENERAL FUND

  15. GENERAL FUND The City continues to endure lingering constraints and the loss of tax revenue, which lessens the elasticity and flexibility normally associated with good budgeting. *Current Budget includes amendments approved by City Council since the budget was adopted.

  16. GF - Revenue Change

  17. GF - Revenue by Type

  18. GF- Millage impact MillageFY18FY19FY20change Operating 166.5172.9172.9 - Special Reserves 12.0 - - - Total Millage 176.4 172.9 172.9 - • No tax millage increase • The use of unassigned fund balance: • to offset the loss of tax revenue; • to bring the unassigned fund balance in compliance with the City’s policy of between 40% - 60% of budgeted expenditures. • Reduces the Property Tax Credit factor from .003900 to .003723 due to less than expected revenue from the State Property Tax Credit Fund • Increases net taxes $22.74 on $100k home/$30k vehicle • Example in subsequent slide.

  19. GF- *Tax Example – 4%

  20. GF - *Tax Example – 6%

  21. GF - EXPENSE BY TYPE

  22. GF - EXPENSE BY CLASSIFICATION

  23. GF - BALANCE UNDESIGNATED FUND BALANCE as a % OF EXPENDITURES Fiscal Year End Unassigned Fund Balance is compared to the subsequent fiscal year budgeted expenditures • FY 2019 – 2020 Recommendation: • Appropriate fund balance for CIP and Phase 1 of Compensation Restructure • Future fund balance trend will depend on recouping tax revenue with anticipated new development

  24. GF - CAPITAL OUTLAY

  25. GF - DEBT SERVICE Rounded to the nearest dollar

  26. HOSPITALITY TAX FUND All dollars in the Hospitality Fund are restricted, as required, and can only be used to fund tourism related expenditures that comply with Section 6-1-730 of the South Carolina Code of Laws, 1976, as amended. • Primary revenues • Two percent (2%) local hospitality fee tax upon the gross proceeds derived from the sale of all prepared foods and beverages served within the City of Lancaster • Ticket sales from the City’s Performing Arts Series. • Primary expenditures • Grants • Event promotion and execution • Performing Arts program.

  27. HOSPITALITY TAX FUND Recommended budget *Current Budget includes amendments approved by City Council since the budget was adopted.

  28. HOSPITALITY TAX FUNDAssumptions • Hospitality Tax budget is 8% less than FY19. • Projected Revenues: Hospitality Tax Revenue - 7% increase Performing Arts - 7% decrease • Estimated Fund Balance $800,000 • Use of fund balance -0- • Includes funding for Phase 1 of the Compensation Restructure • Includes 300,000 for grants; • 150K for Projects & Events • 150K for Capital Projects and Infrastructure • Limited performing arts programs

  29. E911 FUND • Highlights • Nothing was budgeted in the E911 Fund for FY 2019 in anticipation of migrating to the Lancaster County 911 system • The City continued to receive E911 Funds throughout 2018-2019 • The projected fund year-end fund balance is 68,000. • Recommendation • Use fund balance to purchase CAD software

  30. GROSS REVENUE FUND Recommended Budget *Current Budget includes amendments approved by City Council since the budget was adopted. • **The increase is due primarily due to: • Matching fund for the Water Line Replacement Project • Phase 1 of the compensation restructure • re-allocating salaries and operating functions

  31. GROSS REVENUE FUND - Summary

  32. Gross Revenue FundExpense by Classification Recommended Budget: $8,903,059

  33. GROSS REVENUE FUND CAPITAL OUTLAY

  34. GROSS REVENUE FUND DEBT SERVICE Rounded to the nearest dollar

  35. GROSS REVENUE FUND Assumptions • No rate increase • Updates Fee Schedule Section 2.08 – Water Connection Fees • Establish a fee for meter tests; City Code, Sec 28-94 (d) • Establish fee for drying and disposal of discharge drop off at the Wastewater Treatment Facility • Provides for • The distribution of water • Collection & treatment of wastewater • 5,900 customers • Maintenance and Repair of the City’s water distribution and wastewater collection systems and wastewater treatment plant

  36. SOLID WASTE FUND *Current Budget includes amendments approved by City Council since the budget was adopted. • **The increase is due primarily due to: • Capital Outlay • Phase 1 of the compensation restructure • re-allocating salaries and operating functions

  37. SOLID WASTE FUND - Summary

  38. Solid waste FUND Assumptions • No rate increase • Establish late payment penalties – Fee Schedule Section 3.07 • Provides for • The residential & commercial trash pick-up • Transfer Station operations

  39. Solid Waste FundExpense by Classification Recommended Budget: $3,396,295

  40. SOLID WASTE FUND CAPITAL OUTLAY

  41. SOLID WASTE FUND DEBT SERVICE Rounded to the nearest dollar

  42. GRANT PROJECTS • CDBG DEMOLITION – Carry over from 2019 • CDBG Waterline Replacement

  43. FEE SCHEDULE CHANGES

  44. EMPLOYEES The single most important asset that the City has is its workforce. The recommended budget acknowledges the value of skilled , motivated and caring employees and the need to address critical workforce related issues including competitive pay, cost of living adjustments and retention of qualified employees. • 2018-2019 Classification and Pay Study • Determined the City’s workforce was paid about 30% less than market which included peer municipalities and the private sector

  45. BUDGET RE-CAP • All Funds - $25,121,000 • Implement Phase 1 of the Compensation Restructure • General Fund - $11,750,000 • No Property Tax Increase • Reduce Local Option Credit -.003723 • Use of Reserves incompliance with City Fund Balance Policy • Hospitality Tax Fund - $1,012,000 • 300,000 Budgeted for Grants

  46. BUDGET RE-CAP • E 911 Fund - $60,000 • Appropriates Carry-over funds • Gross Revenue Fund - $8,903,000 • No Rate Increase • Fee Schedule Updated • Solid Waste Fund - $3,396,000 • No Rate Increase • Fee Schedule Updated

  47. FUTURE • Capital Utility Projects - supporting growth, attracting industries and bringing about annexation • Downtown Development Plan - involvement and leadership are essential • Housing Stock – Anticipating 2 Housing Developments • Compensation Restructure - Phase 2 & 3 essential to retaining qualified employees as well attracting the best and brightest future workforce

  48. Remaining Budget Calendar

  49. QUESTIONS?COMMENTS?CONCERNS?

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