1. 2015-16 Preliminary Budget Follow-up Council Briefing November 3, 2014 1

2. Goals for Tonight Review adjustments made to Preliminary Budget after presentation o Increased Property Tax estimates to reflect most recent assessed valuation estimate o Updated benefit rates per Association of Washington Cities adopted rates for 2015 o Add Economic Development supplemental budget as presented on October 20 o Increase funding for Evergreen Pool o Increase funding for implementation of Community Engagement Plan 2

3. 2015-2016 Budget Process Six-year Financial Forecast/Financial Policies/Public Hearing and Preliminary Operating and CIP Budgets/Human Services and Arts and Culture Funding/Budget Supplementary Package – June 23 through October 20 Budget Follow-up/Financial Policy Discussion/Public Hearing – November 3 Property Tax Levy/Proposed SWM Rate Ordinances introduced – November 3 Budget Ordinance introduced – November 17 Property Tax Levy/SWM Rates Adopted – November 17 Budget Ordinance/Financial Policies Adopted – December 1 3

4. Preliminary Budget Revisions Increased Property Taxes by $20,000 ◦ Updated Assessed Valuation from King County Assessor’s Office ◦ AV is still preliminary – will be finalized in December or January ◦ Increased General Fund revenue by $10,000 each year Increased B&O Tax Revenue by $860,000 for Economic Development Supplemental Budget package 4

5. Preliminary Budget Revisions Updated 2015 medical and dental benefit rates to reflect final rates adopted by carriers (also reduces 2016 estimates) ◦ Regence = 5% increase (Preliminary Budget = 10%) ◦ Group Health = 6% increase (Preliminary Budget = 7%) ◦ Delta Dental = 8% increase (Preliminary Budget = 6%) ◦ Willamette Dental = 0% increase (Preliminary Budget = 6%) ◦ Savings for Biennium  General Fund = $44,400  Street Fund = $7,425  Surface Water Management Fund = $9,650  City-wide savings = $61,475 5

6. Preliminary Budget Revisions Added Economic Development Supplemental Package – Expenditure Recommendations ◦ Added Economic Development Specialist position for $213,610 over biennium ◦ Added Community-wide Branding effort - $120,000 ◦ Added Downtown Mobility projects - $190,000 ◦ Added Urban Land Institute for 1 st Avenue development - $150,000 Added additional funding for Evergreen Pool - $20,000 Added $100,000 for implementation of the Community Engagement Plan 6

7. Preliminary Budget Revisions General Fund 7 2015 Preliminary 2015 Revisions 2015 Proposed 2016 Preliminary 2016 Revisions 2016 Proposed Beginning Fund Balance $7,858,755$0$7,858,755$7,927,630($18,685)7,908,945 Revenues 22,312,350440,00022,752,35022,684,850440,00023,124,850 Transfers In 173,0000 0 Total All Resources 30,344,105440,00030,784,10530,785,480421,31531,206,795 Expenditures 22,206,475458,68522,665,16022,679,285290,52522,969,810 Transfers Out 210,0000 215,0000 Total Exp. And Transfers 22,416,475458,68522,875,16022,894,285290,52523,184,810 Ending Fund Balance 7,927,630(18,685)7,908,9457,891,195130,7908,021,985 Total All Uses $30,344,105$440,000$30,784,105$30,785,480$421,315$31,206,795

8. Preliminary Budget Revisions Street Fund 8 2015 Preliminary 2015 Revisions 2015 Proposed 2016 Preliminary 2016 Revisions 2016 Proposed Beginning Fund Balance $981,995$0$981,995$241,760$3,485245,245 Revenues 2,451,0000 2,471,0000 Transfers In 000000 Total All Resources 3,432,9950 2,712,7603,4852,716,245 Expenditures 1,683,235(3,485)1,679,7501,684,470(3,940)1,680,530 Transfers Out 1,508,0000 858,0000 Total Exp. And Transfers 3,191,235(3,485)3,187,7502,542,470(3,940)2,538,530 Ending Fund Balance 241,7603,485245,245170,2907,425177,715 Total All Uses $3,432,995$0$3,432,995$2,712,760$3,485$2,716,245

9. Preliminary Budget Revisions Surface Water Management Fund 9 2015 Preliminary 2015 Revisions 2015 Proposed 2016 Preliminary 2016 Revisions 2016 Proposed Beginning Fund Balance $507,210$0$507,210$255,460$4,520$259,980 Revenues 3,155,0000 3,220,0000 Transfers In 000000 Total All Resources 3,662,2100 3,475,4604,5203,479,980 Expenditures 2,266,750(4,520)2,262,2302,295,695(5,130)2,290,565 Transfers Out 1,140,0000 940,0000 Total Exp. And Transfers 3,406,750(4,520)3,402,2303,235,695(5,130)3,230,565 Ending Fund Balance 255,4604,520259,980239,7659,650249,415 Total All Uses $3,662,210$0$3,662,210$3,475,460($610)$3,479,980

10. Preliminary Budget Revisions Capital Improvement Program Preliminary Budget Revisions Capital Improvement Program Parks and General Government Fund Recommend adding one unfunded project for Maintenance Facility/Emergency Operations Center 10

11. : Next Steps 11 ActionTimeline Public Hearing on B&O Tax IncreaseNovember 17 Property Tax Levy AdoptedNovember 17 SWM Rates AdoptedNovember 17 Budget Ordinance/Financial Policy DiscussionNovember 17 B&O Tax Ordinance Increase DiscussionNovember 17 Budget Ordinance/Financial Policy/B&O Tax Ordinance AdoptionDecember 1

12. Questions? 12