|Estimated Beginning Balance||$30,687,997|
|Estimated Ending Balance||$29,466,140|
Total 2016 Appropriations represent a decrease of $1,209,425 or 5.6% under 2015 total appropriations of $21,765,125.
Total Revenues and Expenditures
2015 ESTIMATED BUDGET COMPARED TO 2016 PROPOSED BUDGET
|2016 Budget||2015 Estimate|
The increase in total revenues can be attributed primarily to anticipated grant proceeds of $1.3M for traffic signal upgrades and sidewalk improvements.
The decrease in the total expenditures is partially a result of paying off the $2.8M in notes during 2015, which were issued for land acquisition at the Gateway Redevelopment Area.
- Income Taxes are estimated at $8.26M, 1% over the amount estimated for 2015 collections.
- Real Estate Property tax are estimated to be 1% more than 2015.
- Total Local Government Fund (LGF) revenues are estimated at $121,000.
- All other revenue sources including Investment Income, the Gasoline Tax and Motor Vehicle Registration Fees are estimated to remain flat.
Property Tax Collections
Targeted Fund Balances
- General Fund – established as 6-12 months of operating expenditures.
- Fire/EMS Levy Fund – established as 6-12 months of operating expenditures.
- Arts and Amenities Fund – established at $376,237, the corpus of original donation.
- General Bond Retirement Fund – established as the subsequent year’s debt service payments for principal and interest.
- Capital Improvement Fund – established as $1 million.
General Fund for 2016
|Estimated Beginning Balance||$14,370,252|
|Estimated End Balance||$14,133,971|
|Reserve Balance - 12 months||$10,012,171|
|Net Reserve Variance||$4,121,800|
General Fund Appropriations represent an increase of $225,206 or 2.3% over 2015 Appropriations of $9,786,965 and $777,897 or 8.4% over the 2015 estimate of $9,234,274.
Estimated revenues represent an increase of $160,251, or 1.7% over 2015 estimate of $9,615,639.
- Article IX, Sections 9.01 “Taxes” and 9.02 “Extra Levy” provide that Council by Resolution may increase the Charter Levy up to 5 mills.
- The current millage authorized under the Charter is 4.5 mills; City Council can authorize an additional .5 mills.
- An additional .5 mill would generate approximately $250,000 for the General Fund.
Funds Requiring Transfers from the General Fund
- For the years 2016-20 approximately $3.45M from the 101-General Fund will be transferred.
- $2.98M to 261-Street Construction Maintenance and Repair Fund to support Public Works, and
- $75,000 to 275-Municipal Pool Fund for Municipal Pool operations.
- The Fraternal Order of Police (Police) labor agreement expires in June 30, 2016; 1% in January 2016.
- The American Federation of State, County and Municipal Employees (Public Works) agreement expires August 31, 2017; 1% in January 2016 and 2.5% in September 2016.
- International Association of Firefighters (Fire) agreement expired March 31, 2015 and is currently in negotiations.
- Non-bargaining unit employees – 1% in January 2016.
Health Care Costs
- Total medical insurance premiums decreased an average of 5.0% from the previous plan. The benefit of the decrease is shared by the City and employees through the “caps” established for health insurance costs.
- City’s total contributions to fund medical and dental insurance premiums is budgeted at $893,000 in 2016, increasing to $1.2M in 2020. Future increases are based on annual increases of 10% for medical and 3% for dental insurance.
Solid Waste and Recycling Cost
- City entered into multi-year waste/recycling contract with Rumpke for 2011 through 2013 with options to extend the contract through 2017. The current cost of services is approximately $598,650/year.
- $3.2M has been programmed over 5 years, $611,587 in 2016 and 2017, $642,166 in 2018 and 2019 and $674,274 in 2020 to fund this service.
- The current contract with Rumpke will need to be re-bid for 2018.
Fund 223 – Fire Levy Fund
|Estimated Beginning Balance||$3,715,244|
|Estimated End Balance||$3,356,208|
|Months in Expenditures||14|
- Included in Targeted Cash Balance Fund Policy with 6-12 months of operating expenses in reserve.
- Revenues generated primarily from Property Taxes.
- Consideration may need to be given for placing on the ballot a “replacement” fire levy in 2017.
Fund 261 –Street Construction, Maintenance and Repair Fund
|Estimated Beginning Balance||$656,495|
|Estimated End Balance||$536,621|
|Months in Expenditures||6.5|
- Not a Targeted Cash Balance Fund but requires review to determine the need for adequate sources to maintain City roads and highways.
- Revenues generated from Gasoline Tax , Vehicle Registration Fees and transfers from General Fund.
- Consideration in the future should be given to implementing the additional $5 Motor Vehicle Fee ($50K annually) to support operations.
Fund 324 – General Bond Retirement
|Estimated Beginning Balance||$298,315|
|Estimated End Balance||$619,887|
- In 2016, 4% of income taxes are allocated to debt retirement.
- Debt Service in 2016 has been reduced to $0.
- General Obligation Debt Outstanding 12/2016 – $0.
Fund 410 – Capital Improvement Fund
|Estimated Beginning Balance||$3,856,591|
|Estimated End Balance||$3,150,597|
- In 2016, 20% of income tax revenues are allocated for capital improvements.
- See Capital Improvement Program for complete list of projects budgeted in 2016.
Fund 485 – Arts & Amenities Fund
|Estimated Beginning Balance||$622,783|
|Estimated End Balance||$571,133|
- Revenues generated from Sister City Sales and Investment Income.
|Annual Resurfacing (includes $100,000 hydrants)||$900,000|
|Crack Sealing & Surface Treatment||$200,000|
|Curb & Sidewalk Repairs||$87,500|
|Guard Rail Repairs & Replacement||$25,000|
|Traffic Signal System Fiber Optic Upgrades- Cooper & Delray||$1,062,436|
|Ross Ave Sidewalk||$200,000|
|Sidewalk Installation - Montgomery Rd.||$622,200|
|Engineering-2017 Sidewalk Installation Project||$50,000|
|Renovation of Public Works Facility||$75,000|
|Asphalt Path Repairs||$10,000|
|Parking Lot Repairs and Striping||$10,000|
|Resurface Basketball Courts||$15,000|
|Installation and Relocation of Playground Equipment||$12,000|
|Replace Annex Roof||$9,000|
|Replace network cabling||$15,000|
Vintage Club Debt Service
- Programmed in the 2016 budget is the debt service associated with the $13,265,000 in special obligation bonds issued for the construction of a public road and public garage.
- Annual debt service programmed in 2016 is $521,353 for interest expense and payment of principal in the amount of $200,000.
- Debt service is paid from the PILOTS (payments in lieu of taxes) from the residential properties and the commercial properties south of Vintage Club Boulevard.
Downtown Improvement Fund
- In 2009 $1M and in 2012 $1.75M was transferred into this fund from the General Fund in anticipation of earmarking monies for the redevelopment of the City’s Gateway or Heritage District.
- The City has expended a total of $5.6M from this fund for the purchase of real estate associated with the Gateway Redevelopment Area.
- Current cash balance in this fund is $1.9M. At this time there are no line items programmed in this fund for the Gateway Redevelopment Area for 2016
- Proposed uses for cash balance in the Downtown Improvement Fund.
- Vintage Club North and Gateway Redevelopment Area and their impact on forecasted budgets.
- Consideration given to a replacement levy for fire operations in 2017 or 2018.
- When finalized, 2016-2021 Strategic Plan financials will need incorporated into future budgets.
- $5 motor vehicle registration fee.
2016 Annual Budget Timeline
- October 7 – 1st Reading
- November 4 – 2nd Reading
- December 2 – 3rd Reading
- December 16 – Appropriations to amend 2015 Budget.