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HomeMy WebLinkAboutAgenda Report - March 7, 2018 H-01TM CITY OF LODI COUNCIL COMMUNICATION H -I AGENDA TITLE: Adopt Resolution Approving the Fiscal Year 2017/18 Mid -Year Budget Adjustments and Authorizing the Contribution of Enterprise Funds and Special Revenue Funds to the PERS Rate Stabilization Plan in Proportion to the Previously Approved General Fund Contribution MEETING DATE: March 7, 2018 PREPARED BY: Deputy City Manager RECOMMENDED ACTION Adopt resolution approving the Fiscal Year 2017/18 mid -year budget adjustments and authorizing the Contribution of Enterprise Funds and Special Revenue Funds to the PERS Rate Stabilization Fund (PRSF) in proportion to the previously approved General Fund Contribution. BACKGROUND INFORMATION: The City Council adopted the Fiscal Year 2017/18 Budget on June 7, 2017. The budget sets forward the priorities for funding services within the City of Lodi for the Fiscal Year. With the adopted budget, the Council required staff to provide a mid -year update on the status of the budget. The City Council also adopted a Pension Stabilization Policy (PSP) on December 6, 2017. The PSP requires that staff provide twice annual updates on the funded status of the City's combined pension plans with the mid -year and annual budget. This report serves to satisfy both requirements. The discussion in this report will focus on a general overview of the City's financial status and the areas in which staff recommends Council act to adjust the FY 2017/18 budget. General Fund: General Fund revenues are trending higher than originally budgeted. The adopted budget showed total projected revenues of $50,272,780. The current revenue estimate projects year end revenues of $51,066,720. The $793,940 in additional projected revenue is shown in Table 1. All other categories are trending on budget. Table 1. Mid -Year General Fund Revenue Variance Revenue Cate! or Variance Above Pro'ection % Variance Fire Strike Team Reimbursements* $210,000 200.0% Sales Tax $216,000 1.9% Engineering Inspection Fees $100,000 29.4% Secured Property Taxes $97,940 1.0% Business License Tax $75,000 6.0% Transient Occupancy Tax $50,000 6.3% Engineering Fees $37,770 7.6% Property Transfer Tax $7,230 3.4% TOTAL GENERAL FUND REVENUE VARIANCE $793,940 1.6% APPROVED: ity Manager General Fund Expenditures: General Fund Expenditures are trending at budgeted levels. The 2017-18 budget projected on-going expenditures of $48,369,550. In addition, approximately $2 million in one-time and new revenues from adjustments to the City's cost of services practices was scheduled for investment in the PSP. Various departments and expense categories are projected under budget, primarily salaries and benefits due to vacancies. Offsetting those savings are unforeseen planned expenditures as shown in Table 2. There are no Council actions necessary to approve these expenditures as they be accommodated within existing authority. Budget staff will make clean up adjustments to move appropriations to the appropriate accounts as needed. Table 2. Mid -Year General Fund Repurposed Budget Savings Ex•ense Pur•ose District Elections Process Amount $100,000 Strategic Communications and Election Feasibility for Possible Revenue Measure Police Vehicle Replacement Funding $100,000 $100,000 Fire Vehicle Replacement Jail Camera Upgrades $70,000 $25,000 TOTAL REPURPOSED BUDGET SAVINGS $395,000 Overall, General Fund expenses are projected to be $232,280 under budget when accounting for the repurposed budget savings highlighted in Table 2. Primary sources of budget savings are in Finance (customer service), Fire and police due to vacancies. Table 3 shows the General Fund expenditure projections compared to budget by department when factoring the repurposed savings. Non departmental and the City Clerk both show cost overruns, however savings in other departments more than offset those overruns as previously discussed. Table 3. Mid -Year General Fund Expenditure Projections by Department Department 2017/18 Budget 2017/18 Estimate (Over) Under Budget City Clerk 562,229 667,580 (105,351) City Manager 476,564 475,050 1,514 Ecomomic Development 468,070 468,070 - City Attorney 557,398 533,790 23,608 Internal Services 3,935,390 3704600 230,790 Police 19,800,679 19,732,590 68,089 Fire 11,693,012 11,518,800 174,212 Public Works 2,321,968 2,307,900 14,068 Non Departmental 10,803,471 10,978,120 (174,649) Total 50,618,780 50,386,500 232,280 Two recommended General Fund expense adjustments need Council approval. Both have offsetting revenues from either an external source or other City of Lodi funds. First, is a $210,000 adjustment for additional Strike Team related expenses in the Fire Department. Lodi Fire Department was called to serve in the substantial wildfires in Ventura and Sonoma Counties that occurred in 2017. The extent of these fires and LFD's service to those communities in need was greater than anticipated in the budget. Through the mutual aid agreement, the City of Lodi will be reimbursed for costs incurred. The additional expenditures are 100 percent funded by reimbursements the City will receive from agencies benefiting from LFD's firefighters service. Additionally, due to vacancies within LFD, the department has had to authorize more overtime to meet minimum staffing requirements. For FY 2017/18, Fire Engine One has been budgeted in service only 30 percent of the year, a reduction from 65 percent funding in FY 2016/17. To avoid further service reduction during FY 2017/18, Fire has been authorized to utilize vacancy savings to supplant the overtime budget to fund overtime necessary to maintain minimum staffing. Future budget year service levels for Fire Engine One overtime and minimum staffing overtime will be discussed and considered by Council with adoption of the respective annual budget. The second is the salary and benefit costs for a new Human Resources Technician. The estimated FY 2017/18 cost is $15,600, which will be funded by interfund transfer from the utilities as discussed under Personnel Adjustments. Electric Utility Electric Utility revenues are projected to finish the year consistent with expectations. Expenses are projected below budget by approximately $1.5 million as follows: $400,000 in savings related to lower than anticipated power supply costs, $780,000 in capital, most of which will shift into next year's budget as projects get underway this spring and summer, and $320,000 in vacancy savings. Wastewater Utility Operating revenues and expenditures are consistent with the budgeted expectations. The Storage Pond project at White Slough, has been delayed due to flooding from the 2016/17 winter. The original budget projected $2.25 million in Proposition 84 grant revenue and $2 million in expenses in FY 2017/18. Those estimates have been revised to $300,000 and $250,000, respectively. Additionally, Wastewater Main Replacement Project No. 7 was originally budgeted for $1.5 million in expenditures in FY 2017/18, but that has been revised to $300,000, with the remainder of the project budget projected to be spent in the 208/19 Fiscal Year. Both projects are expected to be completed in FY 2018/19. Water Utility Operating revenues and expenditures are consistent with budgeted expectations. The lower than projected expenditures are driven by the delay of Phase 8 of the Water Meter installation project. Phase 8 is being delayed to partially mitigate the effect of a previous Council decision to forgo a Consumer Price Index rate increase in Fiscal Year 2017/18. All other expenditures are trending at approximately budgeted levels. Other Budget Requests Included in the budget resolution are various requests for additional budget authority summarized in this section. PRCS Transfer from Art in Public Places to PRCS Operating Fund Within the Art in Public Places impact fee fund is an administrative component that has been historically collected from fee payers. The City has never transferred that administrative revenue to the operating fund to cover overhead costs of administering the program. This item was first brought before Council on November 1, 2017 with only three members of Council present at the meeting. The larger package included additional fund balance expenditures towards parks capital. The Councilmembers present were split on executing this transfer of historical administrative revenues but were open to further discussion. Staff continues to recommend full transfer of all historically collected administration fees. To execute this, Council will need to approve an increase to the transfer out budget in the Arts and Public Places to authorize the transfer of $46,778 of previously collected administrative revenue to the PRCS operating fund. This transfer is consistent with the additional PRSF investment approved by Council from the General fund using one time transfers of previously uncollected cost of services revenues from Community Development and Streets. The funds would then increase the PRCS fund balance, allowing for PRCS to make PRSF investments without having to forgo much needed capital projects or maintenance efforts. See the PERS Rate Stabilization Plan section below for more details. Fire and Police Vehicle Replacements The General Fund repurposed budget savings will be put to use to increase transfers to the safety vehicle replacement funds. Council is asked to formally recognize the transfer of revenue into the Vehicle Replacement Fund for both safety and fire, and to increase the budget authority for police to cover costs of unforeseen vehicle replacement needs in the current fiscal year. In total, $170,000 will be transferred out of the General Fund and into the vehicle replacement fund, with $70,000 going towards future vehicle replacement for Fire and $100,000 being put to use on current year vehicle replacements for Police. Personnel Adjustments Staff is recommending the addition of one Human Resources Technician position at mid -year primarily to assist the HR department in recruitment efforts. The City has and will continue to experience significant turnover due to retirement of the aging workforce. This turnover requires filling of the original vacancy, and often times can require multiple recruitments if internal promotion occurs. In addition, the City has a need to update or maintain critical HR policies and the current workload of the department requires the HR Manager and HR Analyst to work down to perform routine day to day functions, which then leaves critical planning and other higher level work unattended. Funding for this position in the remainder of the current year ($15,600) is slated to be one third from each of water, wastewater and electric utilities. Future year funding will come from cost of services transfers with annual costs estimated at $80,000 at top step salary. The following services provided by HR will be enhanced by the addition of the HR Tech, which will provide a benefit to all departments in the City. The HR Tech will have recruitments as their primary focus and will not be asked to perform all of these duties, but will free up current resources to manage other tasks. • Recruitments — Safety recruiting strategy; prompt response to and filling all recruitment requests • Position Control Management — improve data control for department and management level budget reviews; maintenance of employee electronic and personnel files • MOU and Personal Issues — Recent legislative changes required employers to take a proactive approach to review of personnel rules, policies and MOUs for legal compliance. In addition, these changes have increased the number of employee complaints necessitating investigation across the state and nation, and Lodi is no exception. • Classification review — prompt response to class study requests by departments The addition of this position will help to improve overall City operations, including in the safety departments, by helping to keep staffing levels as close to budgeted levels as possible. The primary impetus behind this position request and the expected most notable improvement will be to the City's ability to offer timely recruitments. Filled positions are critical to maintaining the budgeted level of service and current HR resources are unable to meet the current or anticipated demands in this area. As of the drafting of this report, the City was currently down three firefighters, seven police officers, two finance technicians, among other positions. HR is currently managing 16 full time recruitments representing 32 vacancies (out of 393 full time positions City wide), including nine in PD, and three in fire. The HR staff has consistently been managing 15-25 full time recruitments at any given time for the past 5 years and this rate of recruitment is anticipated to remain constant over the next decade as employees reach and exceed eligible retirement age. The City also utilizes substantial numbers of part time employees. There is consistently 7-10 part time recruitments, which by their nature have more turnover, are often shorter in duration or seasonal. In addition, HR is responsible for administering labor contracts with the City's nine bargaining groups and classified employees. PERS Rate Stabilization Fund With the adoption of the Fiscal Year 2017-18 budget, the City Council approved $2,019,230 from the General Fund to be invested in the PRSF. The funding source for this investment was previously uncollected cost of services charges to Community Development that had not been moved into the General Fund and assessment of a cost of service charge to the Streets and Transit funds which were previously unassessed. The PSP adopted by Council in December 2017 calls for investments to the PRSF to be proportional from all funds based on the General Funds contribution, subject to each funds ability to make the investment without impacting other reserve requirements. The action to make the General Fund contribution predated the adoption of the PSP and as such did not include proportional investments from other funding sources. Staff is recommending the Council to approve investment as shown in Table 4 from funds other than General Fund into the PSRP. Table 4. Mid -Year Proportional PERS Rate Stabilization Plan Investments Fund Contribution General Fund 2,019,230 1* Library 19,532 PRCS 63,492 Community Development 35,386 Streets 32,785 EU 225,881 Water 80,677 Wastewater 80,677 Transit 9,988 Fleet 21,498 Total Additional Contribution 569,916 *Included in the FY 2017/18 Budget. Per the PSP, the combined funded status of the City's two pension plans is shown in Table 5. Table 5 does not include the investments noted in Table 4. Table 5. Mid -Year Pension Funded Status — All Plans Market Value of Funded Assets (MVA)* Liability Ratio Safety 103,704,968 177,986,686 58.3% Miscellaneous 122,459,310 179,008,690 68.4% All Plans (CaIPERS Assets Only) 226,164,278 $356,995,376 63.4% PARS Balance 12.31.2017 ** 5,229,493 N/A N/A Total Pension Funding (All Assets) 231,393,771 356,995,376 64.8% MVA of an 80% Funded Plan *** 285,596,301 Investments/Earnings Needed to reach 80% *** 54,202,529 * Uses data from 6.30.16 CaIPERS Actuarial Study and PARS 12.31.2017 Statement ** Does not include FY 2016/17 Pension Stabilization Policy Investments of $4,318,481. *** The PSP remains in effect until the City's plans reach 80% funded. FISCAL IMPACT: Investments in the PRSF, the HR Technician position, and the Art in Public Places transfer out, are funded from unassigned reserves in each of the effected funds. The repurposed budget savings from the General Fund shown in Table 2 do not require any additional Council action, nor do they impact the overall projected performance in the General Fund. Offsetting revenue and expense for Fire Strike Team activities is requested. Additional expenditures are requested Police Vehicle Replacements, funded by General Fund budget savings. /1416,f 26 -7 - Andrew Keys, ❑efputy City Manager Attachments RESOLUTION NO. 2018-34 A RESOLUTION OF THE LODI CITY COUNCIL AMENDING THE CITY OF LODI FISCAL YEAR 2017-18 BUDGET; AUTHORIZING PENSION STABILIZATION INVESTMENTS FOR FUNDS OTHER THAN THE GENERAL FUND; AND APPROVING ADDITION OF ONE NEW HUMAN RESOURCES TECHNICIAN POSITION WHEREAS, the City Council adopted the Fiscal Year 2017-18 Budget (budget) on June 7, 2017; and WHEREAS, the adopted budget was prepared in accordance with the City Council's goals, budget assumptions, and policies; and WHEREAS, the budget Resolution requires a mid -year update which was presented to City Council at its regularly -scheduled meeting on March 7, 2018; and WHEREAS, revisions to the budget are necessary to address circumstances unknown at the time of budget adoption; and WHEREAS, the budget called for $2,019,230 in General Fund Public Employees Retirement System (PERS) Rate Stabilization Fund (PRSF) investments but did not call for proportional investments from funds other than the General Fund; and WHEREAS, on December 6, 2017, the City Council adopted a Pension Stabilization Policy that outlined a procedure for PRSF annual consideration of PRSF investments on a proportional basis to the General Fund's contribution; and WHEREAS, the City Council desires to protect core services in the General Fund by maintaining a proportional share of pension funding from funds other than the General Fund. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Lodi approves: 1) All budget amendments to the Fiscal Year 2017-18 Budget as outlined in Exhibit A; and 2) Pension Stabilization Fund investments as follows: Fund Contribution Library $19,532 PRCS $63,492 Community Development $35,386 Streets $32,785 EU $225,881 Water $80,677 Wastewater $80,677 Transit $9,988 Fleet $21,498 Total Investment $569,916 3) The addition of one new Human Resources Technician position using the existing job description and salary scale. Dated: March 7, 2018 hereby certify that Resolution No. 2018-34 was passed and adopted by the City Council of the City of Lodi in a regular meeting held March 7, 2018, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, and Mayor Nakanishi NOES: COUNCIL MEMBERS — Mounce ABSENT: COUNCIL MEMBERS — Kuehne ABSTAIN: COUNCIL MEMBERS — None 6ENNIFE City Clerk 2018-34 FERRAIOLO Exhibit A Mid -Year Adjustments FY 2017-18 Current Mid -Year Revised Account Number Account Description Budget Adjustment Budget Mid -Year Ammendments 100 - General Fund Revenue Adjustment 10041100.57101 Strike Team $ 105,000 $ 210,000 $ 315,000 10095000.50001 Transfer In $ 6,314,870 $ 15,600 S 6,330,470 Total Revenue Adjustments $ 6,419,870 $ 225,600 $ 6,645,470 Expense Adjustment 10041100.71002 Overtime $ 100,000 $ 200,000 $ 300,000 Transfer to Fund Balance $ 25,600 $ 25,600 Total Expense AdJustments $ 100,000 $ 225,600 $ 325,600 200 - Parks, Recreation and Cultural Services Revenue Adjustment 20000000.50001 Transfer In $ 3,853,240 $ 46,778 5 3,900,018 Total Revenue Adjustments $ 3,853,240 $ 46,778 $ 3,900,018 Expense Adjustment Transfer to Fund Balance 5 - 5 46,778 $ 46,778 Total Expense Adjustments $ 46,778 $ 46,778 434 - Arts In Public Places Revenue Adjustment Transfer from Fund Balance $ 46,778 $ 46,778 Total Revenue Adjustments 5 - $ 46,778 $ 46,778 Expense Adjustment 43499000.76220 Transfer Out 5 - $ 46,778 5 46,778 Total Expense Adjustments $ • $ 46,778 $ 46,778 403 - Police Vehicle Replacement Revenue Adjustment 40300000.50001 Transfer In $ - 5 100,000 5 100,000 Total Revenue Adjustments S - 5 100,000 5 100,000 Expense Adjustment 403991000.77040 Vehicles 5 143,024 5 100,000 5 243,024 Total Expense Adjustments 5 143,024 5 100,000 $ 243,024 404 - Fire Vehicle Replacement Revenue Adjustment 40400000.50001 5 100,000 $ 70,000 $ 170,000 Total Revenue Adjustments $ 100,000 $ 70,000 $ 170,000 Expense Adjustment Transfer to Fund Balance $ - $ 70,000 5 70,000 Total Expense Adjustments 5 - $ 70,000 $ 70,000 500 - Electric Utility Revenue Adjustment $ - $ 5,200 $ 5,200 Transfer from Fund Balance $ - $ 5,200 $ 5,200 Total Revenue Adjustments Expense Adjustment 50060001.76220 Transfer Out $ 2,388,490 $ 5,200 $ 2,393,690 Total Expense Adjustments 5 2,385,490 5 5,200 $ 2,393,690 530 - Wastewater Utility Revenue Adjustment $ - $ 5,200 $ 5,200 Transfer from Fund Balance $ - $ 5,200 5 5,200 Total Revenue AdJustments Expense Adjustment 53053001.76220 Transfer Out $ 1,102,490 $ 5,200 $ 1,107,690 Total Expense AdJustments $ 1,102,490 $ 5,200 5 1,107,690 560 - Water Utility Revenue Adjustment $ - $ 5,200 $ 5,200 Transfer from Fund Balance $ - $ 5,200 5 5,200 Total Revenue Adjustments Expense Adjustment 56052001.76220 Transfer Out $ 814,490 $ 5,200 $ 819,690 Total Expense Adjustments $ 814,490 $ 5,200 5 819,690 Fiscal Year 2017/18 Budget Mid Year Report Presented by: Andrew Keys, Deputy City Manager General Fund Overview General Fund Audited 2015-16 Actuals Audited 2016-17 Actuals 2017-18 Budget Estimated Budget to 2017-18 Est Actuals Actuals Variance Fund Balance Beginning Fund Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance Ending Fund Balance 12,187,512 12,872,875 14,337,703 47,059,023 48,138,339 50,272,780 46,373,660 46,673,511 48,599,550 685,363 1,464,828 1,673,230 12,872,875 14,337,703 16,010,933 14,337,703 51,066,720 48,367,270 793,940 (232,280) 2,699,450 1,026,220 17,037,153 1,026,220 Reserves: DIVCA 465,127 578,528 464,528 464,528 Pension Stabilization Fund (earnings not included) 2,899,906 4,919,136 8,287,045 3,367,909 Unreserved Fund Balance 12,407,748 10,859,269 10,627,269 8,285,580 (2,341,689) Unreserved Fund Balance as a percentage of revenue 26% 23% 21% 16% Note decline in unreserved fund balance is due to increased funding of Pension Stabilization Fund per the Pension Stabilization Policy adopted by Council in December. Total reserves are anticipated to be approximately $1 million above original projections. 2 Fire Strike Team Reimbursements* Transient Occupancy Tax Property Transfer Tax Engineering Fees Sales Tax Engineering Inspection Fees Secured Property Taxes General Fund Revenues • Overall revenues are anticipated to beat the budget by 1.6% Revenue Category Variance Above Business License Tax TOTAL GENERAL FUND REVENUE VARIANCE Pro'ection $210,000 200.0% $216,000 1.9% $100,000 29.4% $97,940 1.0% $75,000 6.0% $50,000 6.3% $37,770 7.6% $7,230 3.4% $793,940 1.6% City Manager City Attorney Economic Dev. General Fund Expenses Department 2017/18 Budget 2017/18 Estimate Internal Services Police Public Works Non Departmental 562,229 476,564 667,580 475,050 (105,351) 1,514 468,070 468,070 557,398 533,790 23,608 3,935,390 3,704,600 230,790 19,800,679 19,732,590 68,089 11, 693, 012 11,518,800 174,212 2,321,968 2,307,900 14,068 10,803,471 10,978,120 (174,649) 50, 618,780 50,386,500 232,280 Strategic Communications and Election Feasibility for Possible Revenue Measure Police Vehicle Replacement Funding Jail Camera Upgrades Fire Vehicle Replacement Repurposed Budget Savings • These expenses are included in the totals on the previous slide — No Council action is needed, except for Police Vehicle Replacement Expense Purpose Amount District Elections Process TOTAL REPURPOSED BUDGET SAVINGS $100,000 $100,000 $100,000 $70,000 $25,000 $395,000 Requested General Fund Adjustments • Fire Strike Team - $210,000 offsetting revenue and expense • Human Resources Tech — New position — $15,600 estimate for FY 2017/18 — Funded in the current year from utilities HR Tech Position • Primary focus on recruitments — Currently 16 full time recruitments representing 32 vacancies • Currently 8.1% vacancy rate City wide — Retirement turnover is anticipated to be high for the coming decade as the workforce approaches or surpasses retirement age — Lowest cost way to get more boots on the ground for a wide range of services • Will also assist in employee data control, MOU and personnel issues, and classification reviews by freeing up manager and analyst time to focus long term rather than day to day • Future funding will come partially through cost of services transfers • Cost is estimated at $80,000 annually PERS Stabilization Investments • Council budgeted $2 million from the General Fund in FY 2017/18 • Other funds were not required at that time to make the investments • This action would make non General Funds contribute their proportional share to the reserve Fund Contribution General Fund 2,019,230 Library PRCS Community Development Streets EU Water Wastewate r Transit Fleet 19,532 63,492 35,386 32,785 225,881 80,677 80,677 9,988 21,498 Total Additional Contribution 569,916 *Included in the FY 2017/18 Budget. Pension Plan Funded Status • A mid year update on the City's total pension funding status is required by the Pension Stabilization Policy. Safety Miscellaneous Market Value of Funded Assets (MVA)* Liability Ratio 103,704,968 177,986,686 58.3% 122,459,310 179,008,690 68.4% All Plans (CaIPERS Assets Only) 226,164,278 $356,995,376 63.4% PARS Balance 12.31.2017 ** 5,229,493 N/A N/A Total Pension Funding (All Assets) 231,393,771 356,995,376 64.8% MVA of an 80% Funded Plan *** 285,596,301 Investments/Earnings Needed to reach 80% *** 54,202,529 * Uses data from 6.30.16 CaIPERS Actuarial Study and PARS 12.31.2017 Statement ** Does not include FY 2016/17 Pension Stabilization Policy Investments of $4,318,481. *** The PSP remains in effect until the City's plans reach 80% funded. 9 Electric Utility Electric Utility Enterprise Fund Audited 2015-16 Actuals Audited 2016-17 Actuals Estimated Budget to 2017-18 2017-18 Est Actuals Budget Actuals Variance Cash Balance Beginning Cash Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) Cash Balance Ending Cash Balance * Fund Balance as a percentage of expenses: 16,582,191 23,068,203 26,028,272 26,028,272 N 73,732,212 69,854,052 73,996,630 73,692,530 67,246,200 66,893,983 75,388,612 73,865,620 6,486,012 2,960,069 (1,391,982) (173,090) 23,068,203 26,028,272 24,636,290 (304,100) (1,522,992) 1,218,892 25,855,182 1,218,892 34% 39% 33% 35% 10 Water Utility Water Utility Enterprise Fund Cash Balance Beginning Cash Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) Cash Balance Ending Cash Balance Fund Balance as a percentage of expenses: Audited 2015-16 Actuals Audited 2016-17 Actuals 2017-18 Budget Estimated Budget to 2017-18 Est Actuals Actuals Variance 6,755,522 6,488,828 4,351,827 4,351,827 14,367,246 14,356,316 14,722,520 14,458,430 14,633,940 16,493,317 21,794,525 17,728,960 (264,090) (4,065,565) (266,694) (2,137,001) (7,072,005) (3,270,530) 3,801,475 6,488,828 4,351,827 (2,720,178) 1,081,297 3,801,475 44% 26% -12% 6% Wastewater Utility Wastewater Utility Enterprise Fund Audited 2015-16 Actuals Audited 2016-17 Actuals 2017-18 Budget Estimated Budget to 2017-18 Est Actuals Actuals Variance Cash Balance Beginning Cash Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) Cash Balance Ending Cash Balance 13,853,935 15,618,946 16,400,481 16,400,481 16,764,243 16,768,644 18,950,180 16,970,750 (1,979,430) 14,999,232 15,987,109 19,189,884 15,708,490 (3,481,394) 1,765,011 781,535 (239,704) 1,262,260 1,501,964 15,618,946 16,400,481 16,160,777 17,662,741 1,501,964 Fund Balance as a percentage of expenses: 104% 103% 84% 112% 12 Other Budget Requests • $100,000 increase in current year expense for police vehicle replacement • $5,200 transfer each from Water, Wastewater and Electric for funding of the HR Tech position • $46,778 transfer from Arts in Public Places to PRCS operating fund representing previously collected administrative amounts — Council previously was split on this transfer — Staff continues to recommend the full amount but can execute a partial transfer if Council so directs Action Requested • Adopt resolution adjusting appropriations in various funds to address FY 2017/18 needs, approving the HR Tech position, and approving allocations to the PERS Rate Stabilization Fund Questions?