Proposed Budget Fiscal Year Ending September 30, 2017

General Fund 101

Items Included in the Proposed Budget: All departments have budgeted to maintain their current level of service In addition, this budget also includes: Compensation plan to adjust all employees to amounts recommended by an independent study performed by Pay Scale consulting ($1,200,000) Addition of three new positions and the equipment needed for these positions ($221,960) 2 City Clean-Up Employees 1 Neighborhood Revitalization Employee Coverage for rising utility costs associated with the Parks and Public Works departments ($81,224)

Tax Rate Increase Needed to Cover Additional Costs: Proposed tax rate of $.7423 Increase of $ from the current rate of $ These amounts are preliminary and are based on estimated values provided by BCAD in April Certified values will be available the last week of July The proposed increase would generate: $1,504,560 for the General Fund (96.44%) $55,576 for the TIRZ #1 Fund (3.56%)

Home ValueCurrent RateProposed RateAnnual ChangeMonthly Change $50,000$334.65$371.15$36.50$3.04 $100,000$669.29$742.30$73.01$6.08 $150,000$1,003.94$1,113.45$109.51$9.13 $200,000$1,338.59$1,484.60$146.01$12.17 $250,000$1,673.23$1,855.75$182.52$15.21 $300,000$2,007.88$2,226.90$219.02$18.25 $350,000$2,342.53$2,598.05$255.52$21.29 $400,000$2,677.17$2,969.20$292.03$24.34 $450,000$3,011.82$3,340.35$328.53$27.38 $500,000$3,346.47$3,711.50$365.04$30.42 $550,000$3,681.11$4,082.65$401.54$33.46 $600,000$4,015.76$4,453.80$438.04$36.50 $650,000$4,350.40$4,824.95$474.55$39.55 $700,000$4,685.05$5,196.10$511.05$42.59 $750,000$5,019.70$5,567.25$547.55$45.63 $800,000$5,354.34$5,938.40$584.06$48.67 $850,000$5,688.99$6,309.55$620.56$51.71 $900,000$6,023.64$6,680.70$657.06$54.76 $950,000$6,358.28$7,051.85$693.57$57.80 $1,000,000$6,692.93$7,423.00$730.07$60.84

Adopted 16 vs. Revised 16 Budget Revised revenue for the 101 General Fund is up $1,012,160 over adopted Loan proceeds for radio equipment project ($1,120,154) Revised expenditures for the 101 General Fund are up $1,590,607 over adopted due to the following: Purchase orders rolled over from Fiscal Year 2015 ($1,294,746) Radio Equipment ($959,310) SCBA Fire Equipment ($335,436) Grant matching funds ($75,000) Bi-State Operations ($90,000) Calculation difference due to operating on calendar vs. fiscal year Transfer to balance Debt Service Fund ($50,000)

Appropriation of Fund Balance FY16 $32,052,710 in expenditures were originally appropriated for Fiscal Year 16 $1,546,287 in fund balance was appropriated during the fiscal year through rolled purchase orders and budget amendments Appropriation of fund balance actually needed for Fiscal Year 16 after revised assumptions for revenues and expenditures is $578,445

Revised 16 vs. Proposed 17 Budget Proposed revenue for the 101 General Fund is up $1,282,978 over Revised FY 16 revenue projections due to the following: Increase in Property Tax Revenue based on a budgeted tax increase offset by valuation declines in property allocated to the General Fund ($1,455,985) Increase in Other Taxes due to a 3.4% increase in sales tax based on current trends ($480,424) Budgeted transfer from the Economic Development Fund ($500,000) Budgeted transfer from the Worker’s Compensation Fund ($217,000) Decline in Rental Revenue ($1,120,255) due largely to the removal of loan proceeds from the radio equipment project Decline in Fees ($95,000) due to the removal of a one-time adjustment for garbage collection fees Decline in Grant Revenue ($95,000) due to the completion of the Downtown Enhancement Project

Revised 16 vs. Proposed 17 Budget Proposed expenditures for the 101 General Fund are up $702,338 over Revised FY 16 expenditure projections due to the following: A decline in Police Department expenditures ($926,010) due mostly to the completion of the radio equipment purchase in FY 16 A decline in Fire Department expenditures ($321,410) due mostly to the completion of the SCBA equipment purchase in FY 16 Decline in Parks and Recreation ($304,095) due in large part to the removal of the building maintenance line item which will now reside in Non-Operating as a transfer out to a separate Building Maintenance Fund

Revised 16 vs. Proposed 17 Budget Expenditure declines in Police, Fire, and Parks are offset by an increase in Non-Operating costs associated with the following: Increase in transfer to Capital Replacement Fund ($675,700) Increase in transfer to Technology Fund ($140,000) Moved from the departments to non-operating in FY 17 Increased contribution to the Bi-State based on prior year contributions ($150,000) Creation of a Building Maintenance Fund ($263,000) Moving this expense from the Parks Department Increase in Reserve Appropriations for the compensation plan ($1,200,000)

Other Major Funds

Personnel Policy Fund Used to pay termination pay for current employees and other post-employment benefits for retirees (health and dental insurance) Costs have been handled without issue through our current General Fund contribution to this fund Projected ending fund balance $862,460

Worker’s Compensation Fund Budgeted transfer to balance the 101 General Fund $217,000 Remaining fund balance after transfer $147,600

Building Maintenance Fund Originally budgeted as a line item in the Parks budget Now transferred out of 101 General Fund through a line item in the Non-Operating department This fund will be similar to the Capital Replacement Fund and will allow us to reserve a fund balance going forward to meet future building maintenance needs more easily

Capital Replacement Fund Increased budgeted transfer from the 101 General Fund by $675,700 to make the fund solvent in future years and still allow for the purchase of fire trucks Projected ending fund balance $366,205

TIRZ #1 Fund $400,000 estimated to be collected from the County $565,072 estimated to be collected from property tax revenue at the new proposed rate $252,988 transfer to Debt Service Fund to pay bond payment Projects budgeted for FY 17 St. Michael and Richill Drainage Extension of Pavilion Parkway Walton Drive box culvert drainage project Projected ending fund balance $553,676

Economic Development Fund $500,000 budgeted transfer to balance 101 General Fund budget Projected ending fund balance after the transfer $922,600

Employee Benefit Trust Fund Fund has a healthy fund balance Insurance consultant recommended a 7% increase to rates Since the fund is healthy, we have reduced that increase for our employees to a smaller increase, or no increase, depending on type of coverage the employee chooses Proposing a 3% rate increase for employees that participate in the HRA plan No rate increase proposed for employees that participate in the HSA plan Proposing $60 annual increase for tobacco users ($5/month)