City of Bend Biennial Budget Budget Committee Deliberations May , 2011

City of Bend, Oregon Tonight’s Schedule  Program Based Budgeting  Budget Message/City Wide Trends  Infrastructure Service Area Programs  Public Comment

City of Bend, Oregon The Move to Program Based Budgeting  Starting the transition with the Biennial Budget  Document is structured differently  Budget is being presented differently  What’s next  Further refinement of sub-programs  Development of more robust performance measures  Regular reporting of performance measures throughout the year (not just during budget)

City of Bend, Oregon New Budget Vernacular Service Area – Grouping of “like” programs & funds Ex: Infrastructure Service Area or Public Safety Service Area Program – Breakout of the Service Area into smaller “like” functions Ex: Water Program, Accessibility Program or Transportation Ops & Plng Program Sub-Program – Breakout of the Program into specific functions / tactical services Ex: Water Operations Sub-Program or Traffic Operations Sub-Program

City of Bend, Oregon Performance Measure Benchmarks International City Manager’s Association (ICMA)  Professional association of City managers  Developed over a decade by city/county managers and other service-area specialists  Provides comparative data from nearly 200 cities and counties annually for the following city service areas: Code EnforcementFacilities Management Fire and EMSFleet Management Human ResourcesInformation Technology Police ServicesProcurement Risk Management Building Permits and Plan Review Highway and Road Maintenance

City of Bend, OregonCity of Bend Budget Reduction Principles

City of Bend, Oregon CITY-WIDE OVERVIEW

City of Bend, Oregon Changes to Proposed Budget

City of Bend, Oregon Resources

City of Bend, Oregon Requirements by Service Area * Decrease due to accounting change in Risk Management Fund. Without accounting change, city-wide admin & support totaled $61.6M

City of Bend, Oregon Budget Requirements by Category Personnel $95 M$94 M $103 M Materials & Svcs $56 M $62 M $46 M Debt & Capital $84 M $146M Transfers $93 M $78 M $68 M Contingency & Reserves $57 M $67 M $46 M $386 M $385 M $409 M Actual Estimate Proposed Budget

City of Bend, Oregon Personnel Cost Increases

City of Bend, Oregon Personnel Costs

City of Bend, Oregon Materials and Services ($45.7 M)

City of Bend, Oregon Capital Proposed $120.9M $8.4M $100.1M $6.4M $6.0M

City of Bend, Oregon Debt ($159 million outstanding at 6/30/2013) Principal Repayments $13.4 million Interest Payments $11.6 million New Debt Proposed$74.3 million New debt Water $38.7M Sewer $34.3M Street Equip $1.4M Pay off BURA- downtown debt Pay down Bulletin debt from $3.5 to $1.7M

City of Bend, Oregon Change in Reserves & Contingencies

City of Bend, Oregon Reserves & Contingencies

City of Bend, Oregon Budget Highlights 1.Revenues Decrease in Property Taxes Little growth in other revenues 2.Strategic draw down of reserves Planned draw down for capital & projects Draw down for operations which will require plan to replenish reserves 3.Proposed personnel costs Net decrease in total FTEs COLA and merit increases per contract only PERS increase Reduction in health premiums Funding of OPEB 4.Capital and Debt Water and Water Reclamation GO Bond

City of Bend, Oregon INFRASTRUCTURE OVERVIEW

City of Bend, Oregon Infrastructure Programs

City of Bend, Oregon Expenditures for Water Sys Improvements Surface water project

City of Bend, Oregon Expenditures for Sewer Sys Improvements SE Interceptor & Secondary Expansion Project

City of Bend, Oregon Primary Budget Issues for Significant debt burden on water and water reclamation. Strategies to manage debt: –Rate increases to ensure target coverage ratio of 1.5 to1.75 –Debt service reserves –Pursue low cost financings –Using State bond bank funds but working with State to minimize debt requirements

City of Bend, Oregon Infrastructure Service Area Programs  Water  Water Reclamation  Stormwater  Laboratory  Engineering  Transportation Operations and Planning  Transportation Construction  Airport  Downtown Parking  Public Transit, SDC’s, LID’s  Accessibility Construction & Program

City of Bend, Oregon Infrastructure Service Area 2011 Council Goals

City of Bend, Oregon Infrastructure Service Area Measures

City of Bend, Oregon Infrastructure Service Area: Proposed FTE Changes