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2017 Budget

Estimated Beginning Balance$32,200,559
Estimated Revenues$26,785,646
Requested Appropriations$28,528,651
Estimated Ending Balance$30,457,554

Total 2016 Appropriations represent an increase of $7,635,951 or 37% above 2016 total appropriations of $20,555,700.

Total Revenues and Expenditures

2016 ESTIMATED BUDGET COMPARED TO 2017 PROPOSED BUDGET

 2017 Budget2016 Estimate 
Total Revenues$26,785,646$18,202,837$8,582,809
Total Expenditures$28,191,651$18,438,386$9,753,265

The increase in total revenues can be attributed primarily to anticipated bond proceeds of $6.5 million for Vintage Club North, anticipated grant proceeds of $1.3 million for traffic signal upgrades and sidewalk improvements, and a conservative forecast of income and property tax receipts.

The increase in total expenditures can be attributed primarily to acquisition of land and construction of public improvements at the Vintage Club ($6.5 million), debt service, capital improvements and capital equipment, as well as increases in employee benefits.

Revenue Assumptions

  • Income Taxes are estimated at $8.84 million, 4% over the amount estimated for 2016 collections.
  • Real Estate Property Tax are estimated to be 1% more than 2016.
  • Total Local Government Fund (LGF) revenues are estimated at $120,750.
  • All other revenue sources including Investment Income, the Gasoline Tax and Motor Vehicle Registration Fees are estimated to remain flat.

Property Tax Collections

Assessed Valuation

Income Taxes

General Fund

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$13,654,389
Budgeted Revenues$9,911,669
Budgeted Expenditures$10,591,334
Estimated End Balance$14,133,971
Reserve Balance - 12 months$10,0591.334
Net Reserve Variance$2,383,390

General Fund Appropriations represent an increase of $579,163 or 5.7% over 2016 Appropriations of $10,012,171 and $777,897 or 13.3% over the estimate of $9,780,339.

 

 

Estimated revenues represent an increase of $131,330, or 1.3% over 2016 estimate of $9,780,339.

Charter Levy

  • 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.

Personnel Costs

  • The Fraternal Order of Police (Police) labor agreement expires in June 2019.
  • The American Federation of State, County and Municipal Employees (Public Works) agreement expires August 31, 2017.
  • International Association of Firefighters (Fire) agreement expires March 2018.

Health Care Costs

  • Total medical insurance premiums increased 5.6% from the previous plan. The increase 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 $978,323 in 2017, increasing to $1.3M in 2021. Future increases are based on annual increases of 10% for medical and 3% for dental insurance.

Solid Waste and Recycling Cost

  • City implemented its contractual option to extend services with Rumpke for the years 2016 and 2017 at $593,586 per year.
  • $3.9M has been programmed over 5 years, 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$3,967,911
Estimated Revenues$2,158,906
Total Available$6,126,817
Estimated Expenditures$2,918,322
Estimated End Balance$3,208,495
Months in Expenditures13

  • 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 2018 or 2019.

Fund 261 –Street Construction, Maintenance and Repair Fund

Estimated Beginning Balance$624,215
Estimated Revenues$993,722
Total Available$1,617,937
Estimated Expenditures$1,044,094
Estimated End Balance$573,843
Months in Expenditures6.5

  • 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$639,996
Estimated Revenues$336,777
Total Available$631,787
Debt Expenditures$12,200
Estimated End Balance$959,573
Reserve Balance$0
Variance$959,573

  • In 2017, 4% of income taxes are allocated to debt retirement.
  • Debt Service in 2017 has been reduced to $0.
  • General Obligation Debt Outstanding 12/2016 – $0.

Fund 410 – Capital Improvement Fund

Estimated Beginning Balance$3,204,322
Estimated Revenues$3,301,133
Total Available$6,505,455
Capital Expenditures$3,540,144
Estimated End Balance$2,965,311
Reserve Balance$1,000,000
Variance$1,965,311

  • In 2017, 20% of income tax revenues are allocated for capital improvements.
  • See Capital Improvement Program for complete list of projects budgeted in 2017.

Fund 485 – Arts & Amenities Fund

Estimated Beginning Balance$611,057
Estimated Revenues$24,700
Total Available$635,757
Estimated Expenditures$94,200
Estimated End Balance$541,557
Reserve Balance$376,237
Variance$165,320

  • Revenues generated from Sister City Sales and Investment Income.

Road Improvements

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
Drainage Projects$80,000
Renovation of Public Works Facility$900,000
Ross Ave Sidewalk$200,000
Sidewalk Installation - Montgomery Rd.$622,200
Engineering-2017 Sidewalk Installation Project$50,000
Jolain Drive Stormwater Project$100,000
Contingency$30,000
Total$3,194,700

Park Improvements

Asphalt Path Repairs$10,000
Parking Lot Repairs and Striping$10,000
Resurface Basketball Courts (Weller)$10,000
Replace irrigation transfer pump (Weller)$15,000
Safety Surfacing for playground area$5,000
Resurface tennis courts (Weller)$15,000
Total$65,000

Technology Improvements

Replace network cabling$9,000

Vintage Club Debt Service

  • Programmed in the 2017 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 2017 is $519,153 for interest expense and payment of principal in the amount of $300,000.
  • 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.

Discussion Topics

  • 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.
  • 2016-2021 Strategic Plan
  • $5 motor vehicle registration fee.

2017 Annual Budget Timeline

  • October 5 – 1st Reading
  • November 2 – 2nd Reading
  • December 7 – 3rd Reading
  • December 16 – Appropriations to amend 2016 Budget.

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