Budget Committee April 28 th, 2011

What is Local Budget Law? Establishes Standard Procedures Outlines Programs & Fiscal Policies Requires Estimates of Resources & Expenditures Encourages Citizen Involvement Controls Expenditure of Public Funds

Purpose of the Budget Committee Hear the Budget Message Hold Public Meetings Hear & Consider Public Comment Discuss & Revise Budget As Needed Approve the Final Budget & Recommend to Council Approve Each Tax Rate or Dollar Amount to be Levied

Budget Committee Process Meetings Subject to Public Meetings Law Quorum Required to Conduct Business May Request Additional Information from Budget Officer Budget Document is a Public Document When Released to Members Take Public Comment

What is a Budget? A Financial Plan A Picture of One Fiscal Year Based on Good Faith Estimates

The Four Phases 1 st Phase – Proposing the Budget 2 nd Phase – Approving the Budget 3 rd Phase – Adopting the Budget 4 th Phase – Working with the Budget

Budget Budgetary Time Line & Process DateAction February 19 th Staff Deadline to forward requests. March 19 th Budget Officer finalizes proposed Budget. March 23 rd Council authorizes advertisements for Budget Committee Meetings. ▪ The First Advertisement in The Times; April 21st (Oregon law requires published advertisement 5-30 days prior to Meeting.) ▪ The Second Advertisement in The Times; April 28th (Oregon law requires published advertisement at least 5 days after the 1st notice, but not less than 5 days before the meeting.) ▪ Advertise the Possible Uses of State Revenue Sharing Hearing – April 28th (Oregon law requires published advertisement at least 5 – 10 days before the meeting) ▪ The first Budget Committee Meeting set for April 29th April 16 th Finalize Draft LB Forms - Boldt, Carlisle & Smith Review April 16 th Budget Officer Finalizes Draft Budget and forwards to Budget Committee Members for review. (Tentative) April 27 th Council Authorize the Publishing of Budget Notice (Public Hearing) (Oregon law requires published advertisement 5-30 days prior to Meeting) Meeting to be held: May 25th, 2009 April 29 th Budget Committee Meeting – 7:00 p.m. ▪ Elect Budget Committee Chair. ▪ Discussion of Budget & Budget Message. May 5 th Publish Notice of Proposed Uses for State Revenue Sharing.

Budget Budgetary Time Line & Process DateAction May 6 th 2nd Budget Committee Meeting – 7:00 p.m. ▪ Possible Uses for State Revenue Sharing. ▪ Public Comment. ▪ Discussion of Budget Proposal. May 13 th 3rd Budget Committee Meeting – 7:00 p.m. ▪ Discussion of Budget Proposal. ▪ Approve Budget, Tax Rate & Proposed Tax Levy. ▪ Discussion of Proposed Uses for State Revenue Sharing. May 19 th If the Budget is finalized with the Budget Committee, then Publish LB Forms & Public Hearing Information in The Times for May 25 th Council Meeting. May 20 th 4th Budget Committee Meeting – 7:00 p.m. (If Necessary) ▪ Review of Budget Proposal. ▪ Budget Committee Certifies Final Budget Document to Council. ▪ Public Hearing at Council Meeting on May 25 th May 25 th (If Published on the 19th) Budget Hearing at the regularly scheduled Council Meeting. June 8 th Special Session of Council if Budget is approved on May 20 th. June 22 nd Regular Council Meeting Resolutions to Enact: 1. Adopt Budget 2. Tax Rate 3. Proposed Tax Levy ▪ Submit Tax Certification Documents to the County Assessor. July 9 th Deadline for Filing Budget; and Deadline certify necessary Resolutions.

How is the City Budget Setup?

Common Fund Types General Fund Special Revenue Fund Enterprise Fund Debt Service Fund Trust Fund

General Funds General governmental purposes & operations. Resources may be transferred in and out. Typically, services that require tax subsidy are found here. “Sub-Funds” or “Cost Centers” include: General Administration, Parks & Cemetery, Fire, Library, Law Enforcement and General Operations.

Enterprise Funds Revenues generated from ‘business-like’ operations. Consumer supported funds. Resources may be transferred in or out. Resources must be self-sustaining and take into account operational costs and capital outlay. “Sub-Funds” or “Cost Centers” include: Water, Sewer, Water Construction Reserve, Sewer Construction Reserve, Water & Sewer Bond, Water SDC, Sewer SDC & Storm SDC.

Special Revenue Funds Specific purposes and earmarked uses. Resources may be transferred in or out. “Sub-Funds” or “Cost Centers” include: Street, Buildings & Equipment, Housing Rehab., Bikeway/Footpath, Land Acquisition.

STREET: Gasoline tax, fees, licenses & state shared money. BUILDINGS & EQUIPMENT: Transfers. HOUSING REHABILITATION: Loan Repayments. BIKEWAY/FOOTPATH: Transfers. LAND ACQUISITION: Transfers. COMMUNITY PROJECTS: Grants & Transfers. Special Revenue Sources

Debt Service Fund General Obligation Bonds for Capital Construction Imposed as Dollar Amount Voter Approval Grants Authority

Trust Funds Revenues held and used under special legislative circumstances or for specified purposes. “Sub-Funds” or “Cost Centers” include: Library, Cemetery and Transient Room Tax.

Constitutional Limitation Measure 5: Limit is based on Real Market Value (RMV) Tax on property is limited as follows:  $5 per $1,000 of RMV – Education.  $10 per $1,000 of RMV – General Government Measure 50: Tax is based on property’s Assessed Value (AV)

How to read the Budget?

Where is the Money? The City has one account with the Oregon State Treasury: Main Account = $4.3 M The City has five KeyBank accounts:  General  Utilities  Court  Park  Land Use

MONTH END RECAP Mar-11 REVENUEEXPENDITURESYTD%Unexpended 1GENERAL $ 30, $ 31, $ 605, $ 730, WATER $ 19, $ 15, $ 306, $ 455, SEWER $ 26, $ 15, $ 190, $ 486, STREETS $ 10, $ 7, $ 100, $ 345, WATER BOND $ 1, SEWER BOND $ 6, $ 354, $ 37, SEWER DEBT FEE $ 11, $ 97, BUILDING & EQUIPMENT $ $ 21, $ 385, WATER RESERVE $ HOUSING REHAB $ WATER SDC $ SEWER SDC $ STORMWATER SDC $ BIKEWAY/PATHS $ LIBRARY TRUST $ CEMETERY $ TRANSIENT ROOM TX $ SEWER CONSTRUCTION 18 19LAND ACQUISITION $ COMMUNITY PROJECTS $ $ 27, $ 68, $ 103, $107, $ 96, $ 107, $ 96, KeyBank Accounts YTD% of Total General $ 19,292.35Appropriated $ 1,713, % Land Use (Deposits) $ 4, Water $ 15,800.00DEBT PaymentsTotals Park $ 3,963.00Water $ 54, Court $ Wastewater $ 360, Oregon State Treasury $ 4,283,841.86Total Debt Community Improvements $ -Water $ 1,678, Wastewater $ 7,730,852.00

Beginning Cash 45% State Shared Revenues 5% Fees 30% Property Tax 19% Transfers & Misc. (Both 1%)

Bonded Debt

Water Bond FiscalNo. 1No. 2Totals YearPrincipalInterestPrincipalInterestPrincipalInterest 2007$9,541$28,749$3,770$12,867$13,311$41, ,97028,3203,94912,68813,91941, ,41927,8714,13712,50014,55640, ,88827,4024,33312,30415,22139, ,37826,9124,53912,09815,91739, ,047126,40426,14357,04491,190183, ,060110,39032,96950,217114,029160, ,01590,43541,57934,100142,594124, ,88365,56752,43930,748178,32296, ,87334,57766,13317,052223,00651, ,7913,50430,8952,21587,6865,719 $638,865$570,131$270,886$253,833$909,751$823,964 Information from Auditor, Boldt, Carlisle & Smith LLC, Albany, Oregon 2009.

Waste Water Bond : The Bond will need to be levied and collected annually. The Payment is $380,000 to the State and Federal programs. Council has instituted a $15 debt service fee which shows up as other on the monthly utility bill. This fee yields approximately $135,000 per year based on current households on the system. The remaining amount of $245,000 is assessed to the tax rolls in order for the City to meet the obligation.

Wastewater Bond Wastewater Note No. 1No. 2OECDDTotals PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest $ 29,920 $ 144,000 $ 29,930 $ 128,223 $ 6,933 $ 15,169 $ 82,004 $ 327,098 31, ,654 31, ,951 7,291 14,811 85, ,425 32, ,247 32, ,624 7,668 14,434 89, ,587 34, ,776 33, ,242 8,065 14,037 93, ,578 35, ,240 35, ,801 8,482 13,620 97, , , , , ,149 49,458 61, ,324 1,487, , , , ,739 63,635 46, ,250 1,342, , , , ,591 81,876 28, ,884 1,179, , , , ,223 59,999 6,308 1,033, , , , , , ,136, , , , , , ,180, , , , ,679 91, ,460, , ,434 $ 3,200,000 $ 3,754,453 $ 3,017,000 $ 3,308,503 $ 293,408 $ 214,943 $ 7,378,373 $ 9,477,396 Wastewater Bonds

Adjustments  Health Insurance: Up 4%  General Liability & Property: The rates from CIS were flat.  COLA: The Social Security Administration lists a 0% increase.  Salaries: A total of 3% was added across the board. Employees will be eligible for an increase based on performance evaluation.  Gasoline: Kept the projections from due to recent market conditions.  Law Enforcement: Up 5%  Electricity: Up 8%  Natural Gas: Up 3%  Telephone: Up 4%  Valuation: Up 3%  Miscellaneous Accounts & Audit

CAPITAL IMPROVEMENTS What’s in here?

Projects Community Projects Street Restrooms$50,000 S. Oak St.$110,000 Weed Ordinance$15,000 Streets$40,000 City Hall Building$40,000 Backhoe $40,000 Park Erosion$10,000 Sidewalks$10,000 Tree City$5,000 Mill Race$5,000 IG Requests$5,000 Buildings & Equipment Gym Floor$15,000 Vactor**$164,000 Vehicle$20,000 Library Carpet$8,000 Picture Gallery$20,000 [Washington Street Reconstruction is $215,000; not included.]

Sewer System$60,000 South WWTP Well$10,000 Equipment$1,500 Water School Avenue$100,000 Telemetry/Comm.*$55,000 Wells Electrical*$55,000 S. Oak Street$70,000 Projects

Next Meeting May 5 th 7:00 p.m. at City Hall