1. Fiscal Sustainability – Revenue & Expense Projection April 10, 2018
Kim Weber, Finance Director

2. Where we have been
2016
Information gathering – Council overview (TPAB, EDP)
Asset management
“The Revenue Pie”
2017
Tax initiatives
User Fee Study, policies, and implementation
Alternative Budget Scenarios
2018
Tax Policy
Community tax structure
Parks & Rec User Fees
6-Year Revenue & Expense Projection

3. Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 2019 2020 2021
2022
2023
2024
Revenue
Sales Tax Escalation 2%
Charges for services
10% 3%
Other Revenue 1%
Retail Marijuana 5% 4%
Grant Revenue
-2.5%
-1.0%
Fire/EMS Fees
Expenditures
Personnel Escalation
Operating Escalation
Equipment Escalation

4. Sales Tax Historically
Year
YOY Change
1988
13.15%
30-Year Avg
1989
15.54%
5.83%
1990
18.98%
1991
2.28%
1992
8.42%
1993
8.72%
1994
5.18%
1995
2.88%
1996
4.28%
1997
8.98%
1998
9.46%
20-Year Avg
1999
5.19%
4.32%
2000
8.65%
2001
2002
0.91%
2003
0.85%
2004
7.47%
2005
7.48%
2006
8.92%
2007
7.71%
2008
2.56%
10-Year Avg
2009
-14.14%
2.46%
2010
-0.99%
2011
4.48%
2012
1.10%
2013
7.35%
5-Year Avg
2014
7.92%
6.32%
2015
5.16%
2016
5.56%
2017
5.58%
Sales Tax Historically

5. 6-Year Projections Personnel Operating Equipment
Building Infrastructure Maintenance
Community Support

6. Personnel Additions by Function
General Government = 7.6 FTEs
Public Works(Including Transit) = 5.1 FTEs
Police Department = 8 FTEs
Fire/EMS Department = 15 FTEs
Parks & Community Services = 3.14 FTEs
Planning & Community Development = 1 FTE
Total over 6 years = 39.84

7. Personnel Additions by Year
2019 – 15.6 FTEs
2020 – 6.48 FTEs
2021 – 13 FTEs
2022 – 2.38 FTEs
2023 – 0 FTEs
2024 – 2.38 FTEs
Total = 39.84

8. Operating Additions (examples)
General Services
IT annual software maintenance contracts
Facilities - CLEF
Public Works
Reduce contract services with additional Engineering staff
Police
Expenses related to Digital Forensic Analyst
Fire
Expenses related to new station and new personnel
P&R
Expenses related to new multi-sports facility (revenue offset included)

9. Equipment (examples) Public Works Police Fire P&R Streets – loader
Transit – 20% grant match bus shelter upgrades and automatic voice announcement system in busses
Police
2 patrol vehicles
Fingerprinting machine, Taser replacement, laptop replacement
Fire
Convert pickup to Type IV Wildland Truck
3 new staff vehicles (Deputy Fire Marshall, General Staff, Battalion Chief)
Ambulances & Fire Trucks not included (In Capital Projects Fund)
P&R
Mowers
Snowmobile & 4-Wheeler
Magic Carpet Belt

10. Building Infrastructure Maintenance
Current level of maintenance included
Plus……
Additional maintenance & repair
2019 = $1.1M
2020 = $1.4M
2021 = $725K
2022 = $1.86M
2023 = $700K
2024 = $1.4M

11. Scenario 1 – Includes Additional Personnel, Operating, Equipment, & Building Maintenance
ASSUMPTIONS
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
2019
2020
2021
2022
2023
2024
Revenue
Sales Tax Escalation 2%
Charges for services
10% 3%
Other Revenue 1%
Retail Marijuana 5% 4%
Grant Revenue
-2.5%
-1.0%
Fire/EMS Fees
Expenditures
Personnel Escalation
Operating Escalation
Equipment Escalation
REVENUE LESS EXPENSE
$ (3,367,279)
$ (5,025,542)
$ (6,180,844)
$ (8,340,808)
$ (8,473,031)
$ (10,163,007)

12. Scenario 2 – Does Not Include Additional Personnel, Operating, Equipment, or Building Maintenance. (Would require reduction of services)
ASSUMPTIONS
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
2019
2020
2021
2022
2023
2024
Revenue
Sales Tax Escalation 2%
Charges for services
10% 3%
Other Revenue 1%
Retail Marijuana 5% 4%
Grant Revenue
-2.5%
-1.0%
Fire/EMS Fees
Expenditures
Personnel Escalation
Operating Escalation
Equipment Escalation
REVENUE LESS EXPENSE
$ (552,967)
$ (1,133,209)
$ (1,885,992)
$ (2,229,031)
$ (3,087,480)
$ (3,958,254)

13. Other Scenarios Different revenue assumptions
Different escalation factors
Look at departments individually
Etc.

14. How big is the problem & how do we remedy it?
Alternative budget scenarios
Service level reductions
New revenue source
Property Tax – 1 mill = $650K
Sales Tax - .25% = $1.5M
Others……