07-20-2010 City Council Study Session PacketCity of Grand Island
Tuesday, July 20, 2010
Study Session Packet
City Council:Mayor:
Margaret Hornady
City Administrator:
Jeff Pederson
City Clerk:
RaNae Edwards
T
u
7:00:00 PM
Council Chambers - City Hall
100 East First Street
Larry Carney
Scott Dugan
John Gericke
Peg Gilbert
Chuck Haase
Robert Meyer
Mitchell Nickerson
Bob Niemann
Kirk Ramsey
Jose Zapata
Call to OrderCity of Grand Island City Council
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda
Items form located at the Information Booth. If the issue can be handled administratively without Council action,
notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak.
Please come forward, state your name and address, and the Agenda topic on which you will be speaking.
MAYOR COMMUNICATION
This is an opportunity for the Mayor to comment on current events, activities, and issues of interest to the community.
Call to Order
Pledge of Allegiance
Roll Call
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open Meetings Act
in conducting business. A copy of the Open Meetings Act is displayed in the back of this room as required by state
law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
City of Grand Island City Council
Item -1
Presentation of 2010/2011 Proposed City Budget
City Administrator Jeff Pederson will present the proposed 2010/2011 City Budget. Attached
is the City Administrator's letter and the 2011 Budget in Brief. The complete budget can be
found on the City's web page at www.grand-island.com under Finance/2011 Proposed
Budget.
Tuesday, July 20, 2010
Study Session
City of Grand Island
Staff Contact: Jeff Pederson
City of Grand Island City Council
Working Together for a
Better Tomorrow. Today.
July 13, 2010
Honorable Mayor and City Council
Submitted herewith for your consideration is the City of Grand Island 2010/2011
Proposed City Budget. This document represents the City’s financial plan for the
upcoming fiscal year beginning October 1, 2010, and it reflects a comprehensive process
of allocating resources to programs that have been prioritized as important to the
achievement of outcomes associated with Key Result Areas that have been identified by
the City Council.
The importance of this “prioritization” process lies with the recognition of the
growing annual imbalance between current revenues and annual operating expenses that
was first illustrated with the use of the Financial Trend Monitoring System (FTMS) for
the years of 1998-2008. FTMS information fulfilled much of the fiscal “diagnostics” that
brought to light the weakening of the City’s fiscal health over that period, resulting in a
realization that new thinking and new strategies were needed to achieve long-term
financial sustainability.
Annual increases in operating expenses for General Fund programs have outpaced
growth in operating revenues in recent years, and the City became reliant upon reserve
appropriations to balance the budget. With the reserves being reduced to a level within
the range of acceptability, and with revenue growth slowing due to economic conditions,
reductions to program spending are necessary to meet the fiscal reality that requires the
City to “spend within our means”.
PRIORITIZATION
Against the backdrop of these revenue constraints, a new process was needed to
thoughtfully develop the 2010/2011 Budget. Program Prioritization is intended to be a
more progressive strategy in response to budget reductions than traditional “across the
board” budget cuts that many governments employ in an effort to treat cuts “equitably”
among departments. The logic here is that “core” services and programs should not be
cut at the same level as less important programs, any more that one would make a
reduction to a household mortgage payment before seeking to trim discretionary expenses
such as eating out and entertainment.
Drawing on experience from other communities, the City endorsed Program
Prioritization in the broader context of resource management with a special emphasis on
Office of the City Administrator
Programs rather than on line items or on entire departmental budgets. This new focus
is expected to result in better decisions for resource allocation through careful evaluation
of each program and service; understanding those services better within the context of
local priorities; providing a higher level of understanding among decision makers,
enabling them to rank services based on community priorities and clearly articulating
how services are valued and funded.
Result Maps
Without formal guideposts to navigate the prioritization process, the City Council and
management team spent two evenings identifying the Key Results that the City is in
business to achieve. Department Directors then inventoried all programs for the purpose
of articulating a cause and effect relationship between programs and the Key Results. A
formal scoring process was then used to accurately value all programs relative to their
influence on achieving Results. Programs were scored by a multitude of factors
including whether the demand for the service was increasing or decreasing, whether
program costs were covered through charges or fees, whether a governmental mandate
for the program existed, and others.
Five areas deemed most vital for the City of Grand Island Government to impact,
called “Result Maps”, were developed.
1.) Safe Community
2.) Quality of Live
3.) Strategic, Sustainable and Maintained Development
4.) Stewardship of the Environment
5.) Governance
Departmental Budget Targets
The scoring process allowed programs to be ranked within each Department, and the
array of program rankings was divided in to four quartiles from which the relative
“importance” of all programs could be illustrated. With the need to reduce the General
Fund Budget by $1.9m, it became necessary to determine reduction targets for each of the
four quartiles. Budget reduction targets for operational departments were established
based upon the following schedule: Quartile 1 Programs; (2%) - Quartile 2 Programs;
(6.5%) - Quartile 3 Programs; (11%) - Quartile 4 Programs; (16%). Reductions were also
made to all four tiers for programs that fell within the “Governance” category, which are
by nature support/compliance departments and therefore experienced a maximum tier
reduction of 4%.
Overall Departmental targets were established by the cumulative impact of quartile
reductions applied to previous budget costs for respective programs, meaning that the
actual percentage reductions to Departmental budgets varied depending on the level of
program costs that fell within each of the four quartiles. It is important to note that
Department Directors were required to absorb expense increases attributable to employee
compensation within their new budget targets rather than having additional money
made available to fund such increases.
FORMULATION OF DEPARTMENTAL BUDGETS
The ranking of programs within the Program Prioritization process produced a re-
allocation of resources between Departments stemming from where respective programs
ranked in the four quartiles. The fact that $1.9m had to be cut from the General Fund
necessitated the need to include all program quartiles in the funding reduction, meaning
that even the highest level programs would have less funding in the new Budget. To
“protect” funding for Quartile 1 for example, would have resulted in greater reductions
for the other quartiles and also would have lessened the requirement for resourcefulness
and efficiency in preserving even the core programs associated with that Quartile.
Once given their respective budget targets, Department Directors were directed to
prepare a budget using program rankings as a “guide”, but not as an absolute. Many
reasons might exist why it might be wise to preserve a Quartile 3 program over a Quartile
4 program, therefore Directors were allowed to use their professional judgment to make
final determinations on resource allocations. The fact that the overall array for the
General Fund revealed a disproportionate amount of program expense associated with
Quartile 1 and Quartile 1 programs made the decision making process more difficult as
this was in fact a validation of the fact that previous resource allocation was closely
aligned with the new Result Areas.
Budget Format
The format of the Proposed Budget document has evolved to reflect the emphasis on
programs that is inherent in Program Prioritization. Again, we are confident that this new
focus will improve decision making at all stages of the budget including the deliberation
that will occur with the City Council.
The Budget book follows a similar sequence as in previous years, with the most
noticeable difference being the absence of expenditure line items for the respective
Departments and programs. While line item detail disclosed the “expense” of the
multitude of cost components of Departments, it did very little to assist in the
understanding of the “impact” or “value” of individual programs that are conducted
within a given Department. Therein lies the fundamental shift in emphasis in the
operational budget away from isolated cost components in favor of program impacts.
Budgets for each Department are presented by Program, with cost identified for
personnel expenses as well as for operating expense. Included in the Program
information is the Quartile within which the respective Program was scored, as well as
the FTE count for the Program. Importantly, included also is an Impact Statement that
describes any significant change in Program capacity due to a change in dollar
allocation.
BUDGET OVERVIEW
The 2010/2011 Proposed Budget for the City of Grand Island recommends total
combined operating and capital expenditures of $147,176,927, excluding
interdepartmental and inter-fund transfers. This represents an 8.27% decrease in
expenditures compared with the 2009/2010 Adopted Budget of $160,449,249.
The General Fund
Total proposed spending for the General Fund is $35,652,272, which is a decrease of
$1,805,210 from the previous year. Forecasted revenues for the new fiscal year are
projected to be $31,892,246, excluding inter-fund transfers. This represents a decrease of
2.04% compared to the amount budgeted for the current year, and an increase of
$1,355,787 over the actual amount projected to be received in the current fiscal year.
Sales Taxes is the single largest source of revenue for the General Fund and is
estimated at $13,457,800 for 2010/2011. While monthly sales tax collections for the
past two months have shown some recovery from the economic downturn, we believe it
is prudent to project that a full recovery will not occur in the next budget year and
consequently revenue from this source is projected to generate approximately the same
amount as it did two years prior. This is significant, as it essentially means that the
revenue source that comprises over 40% of the General Fund revenue stream will not
have contributed additional resources to meet expense growth.
This Proposed Budget presumes no increase to the mill levy for Property Tax,
although the amount of $320,600 in additional revenue from this source is expected to
accrue from increase in property valuation. Total revenue from Property Tax is projected
to be $5,118,000, which represents a return to a “flat line” for property taxes.
The pie chart that follows provides a comparison of the five major sources of General
Fund revenue. Total anticipated revenue for all sources combined is $31,892,246.
SUMMARY OF GENERAL FUND REVENUES BY SOURCE
The pie chart that follows shows the major expenditure categories for programs in the
General Fund, with personnel services being the largest slice at 65.8%. This category of
expenditure is especially noteworthy in the Proposed Budget, as a reduction in spending
of 2.54% or $611,190 is accomplished while still absorbing compensation increases
associated with annual wage adjustments for some employee groups and the continuation
of the merit-pay plan for all employee groups. A net reduction of 29.8 full-time
equivalent positions within General Fund Departments was necessary in order to meet
respective Department budget targets.
Of equal significance is the planned reduction of 10.31% or $1,016,620 in spending
for operating expenses compared to the prior-year budget. This reduction is attributable
to a combination of program reduction and increased operational efficiency.
GENERAL FUND EXPENDITURES
Enterprises
The Enterprise operations of the City include Electricity, Water, Wastewater
Treatment, Solid Waste, and Golf Course. The combined appropriation for these
operations is $85,715,535, compared to $96,413,317 budgeted for the prior year.
Each of these operations participated in the program prioritization process, including
development of program inventories and associated cost determinations. The enterprises
each operate on a “charge for service” basis that is intended to sustain all costs of
operations. While budget reduction “targets” were not deemed necessary for the
enterprises, the Program Prioritization process was nonetheless used to assess funding
priorities within these operations.
Capital Improvements Plan
The Capital Improvements Plan is included with the Proposed Budget, and it is
intended to address the necessary capital needs of the City. The proposed expenditure for
CIP projects is $4,217,081, which includes $1,100,000 for a major renovation of Lincoln
Park Pool that would necessitate a public referendum for bonding authorization. Other
major projects include continuation of the Northwest Drainage Project, the CCC to Wood
River Diversion Project, a roundabout on Capital and North Road, and completion of the
Veterans Athletic Complex.
Revenue to complete the 2010/2011 CIP is comprised of $1,193,066 from current
operating revenue (including State Gas Tax), $555,400 from Special Assessment re-
payments and Keno, and $2.468.615 from the issuance of bonds. The use of debt-
financing is projected to be necessary over the next five years as a “bridge” to 2016 when
debt payments on the Library and the Police Building will be completed and revenue
currently dedicated to those will become available for CIP funding.
Summary & Acknowledgements
In spite of employee expense increases and the non-availability of reserve
appropriation, the City is able to present a balanced budget for the General Fund for next
year through a combination of measures, including:
* Reducing levels of services for various programs, with corresponding recommended
staffing reductions (including conversion to outsourcing)
* Increased efficiency/effectiveness through position realignment
* Increased operational efficiencies through reduction to operating expenditures
* Increased charges for services to more nearly reflect actual costs
The declining financial health of the City, exacerbated by the effects of the economic
downturn on City revenues, necessitated a shift in direction and approach to budget
development. I wish to commend the City Council, Department Directors, Division
Heads, and budget staff for responding to this challenge through the implementation of
the Program Prioritization process as a primary means to pursue fiscal health and
wellness for the City.
The conversion has been a major undertaking, and countless hours were spent at each
stage in the process. There are some reductions to programs, and the process of reducing
nearly $2m from the General Fund has brought about the painful reality of some position
cutbacks. This Proposed Budget does represent a continued commitment to quality
programs and services while also committing to investment and reinvestment in quality
facilities and infrastructure.
Jeff Pederson
City Administrator
GGRRAANNDD IISSLLAANNDD
CCIITTYY OOFF
Budget in Brief
For Fiscal Year 2010-2011
An Overview of the
Operating Budget
&
Capital Improvement
Program
2 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
BUDGET IN BRIEF 2010-2011
Budget in Brief is produced each year by the City of Grand Island’s Administration and Finance
Departments. This booklet gives citizens a general overview of the City’s 2010 – 2011 Budget. For more
detailed information copies of the entire budget document are available at the Grand Island Public
Library, or you can access the City’s Budget on the Internet at www.grand-island.com under the Finance
Department. For specific questions or comments, please contact the Finance Department.
Mail:
100 East First Street
Box 1968
Grand Island, Nebraska 68802-1968
Phone:
(308) 385-5444
Email:
finance@grand-island.com
Website:
www.grand-island.com
Preparation of the City’s budget is governed by State Law. Budget development is a year-long process.
Grand Island’s fiscal year runs from October 1 to September 30. The City is constantly looking for ways
to streamline operations, be more efficient, and make adjustments to improve service delivery. Many of
the Council’s actions throughout the year have budgetary implications for the current and future years.
Annual Operating Budget is the City’s plan for providing services to the community during the fiscal
year. Creating the budget requires the electeds to establish priorities for serving the community. City
Council formally adopted strategic result maps that set direction for City management to develop and
undertake specific strategies, initiatives and projects in support of these broad, high-level objectives. This
prioritization offers council and staff an evaluation tool for services provided. It also gives a greater
understanding of services in the context of the cause-and-effect relationship on the organization’s
strategic goals. Furthermore, the process articulates to the organization and the public how services are
valued, and how priorities are invested.
City Administration is charged with the responsibility of formulation, presentation, and administration of
the budget to City Council. The City Council then adjusts the proposed budget to fit their vision for what
is appropriate for the City. Opportunities for citizens to share comments and concerns with the proposed
budget are available throughout the process. City Council agendas and schedules are available at the City
Clerk’s Office or on the City’s webpage at www.grand-island.com.
3 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
ELECTED OFFICIALS & MAYOR-COUNCIL FORM OF GOVERNMENT
Grand Island has a Mayor-Council form of government, with an appointed Administrator. The City
Council, as the governing body, adopts ordinances and determines policy which directs City government.
The ten member City Council is composed of two representatives from each of the five voting wards. A
City Council President is elected by the Council each year. The Council meets in regular session on the
second and fourth Tuesdays of each month at 7 p.m. in the Council Chambers of City Hall.
Meetings are called to order by the Mayor, and conducted in an orderly, parliamentary manner. Grand
Island’s Mayor is elected at large to a four-year term. The Mayor presides over official meetings, serving
as the executive officer for the City. The Mayor votes, only when his/her vote is the deciding vote. The
Mayor has the power to veto any ordinance or resolution.
The City Administrator reports to the Mayor, and is responsible for carrying out established policies and
providing for the efficient administration of City activities. City staff provides information to assist in the
Council deliberations and answer questions regarding agenda items.
Mayor Margaret Hornady
mayorhornady@grand-island.com
Council Members:
Ward 1
Bob Niemann councilneimann@grand-island.com
Jose Zapata councilzapata@grand-island.com
Ward 2
Peg Gilbert councilgilbert@grand-island.com
Scott Dugan councildugan@grand-island.com
Ward 3
Kirk Ramsey councilramsey@grand-island.com
Robert Meyer councilmeyer@grand-island.com
Ward 4
Larry Carney councilcarney@grand-island.com
Mitch Nickerson councilnickerson@grand-island.com
Ward 5
John Gericke councilgericke@grand-island.com
Chuck Haase councilchaase@grand-island.com
To find your council representative or for
further information please call
(308) 385-5444 Ext. 140
or
www.grand-island.com
4 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
CITY ORGANIZATION
ORGANIZATIONAL CHART
APPOINTED OFFICIALS
City Administrator City Treasurer City Clerk
Jeff Pederson Mary Lou Brown RaNae Edwards
City Attorney City Engineer
Dale Shotkoski Steven Riehle
DEPARTMENT DIRECTORS
Building Department Parks & Recreation Fire Department
Craig Lewis Steve Paustian Troy Hughes
Emergency Department Personnel Department Police Department
Jon Rosenlund Brenda Sutherland Steve Lamken
Regional Planning Department Utilities Department Library
Chad Nabity Gary Mader Steve Fosselman
100 East First Street, Box 1968
Grand Island, Nebraska 68802-1968
Phone : (308) 385-5444
Fax: (308) 385-5486
www.grand-island.com
CITIZENS of GRAND ISLAND
Mayor
Boards & Commissions
City Council
City Administrator
Finance Building Human
Resources
City Clerk
Library
Fire
Public
Works
Utilities
Emergency
Management
Planning Police Parks &
Recreation
Legal
5 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
PROGRAM PRIORITIZATION
To prepare the 2010-2011 Proposed Budget, the City undertook a year long process of allocating
resources to programs that are prioritized as important to achieve the Key Result Areas of the City
Council. This change was necessitated by the realization of the City’s weakening fiscal health. Fiscal
health was declining due to operating expenses outpacing operating revenues, a reliance on reserves to
balance the budget, and a slowdown in growth of revenues heightened by economic conditions.
The Program Prioritization process is a strategy which will help the City achieve fiscal health. The key
components to the process are:
• Spend Within Our Means
• Establish and Maintain Reserves
• Understand Variances between Budgeted and Actual Revenues/Expenditures
• Identify True Costs of Programs/Services
• Incorporate Economic Analysis and Long-Term Decision-Making
CITY COUNCILS’ STRATEGIC RESULT MAPS: These are the key result areas identified by the Council and adopted July 28, 2009.
They serve as guideposts against which all programs were scored. Each program was scored against each result map, and then went
through a peer review process.
Program Attributes were also used during the scoring process, which are:
1. Demand for the Service
2. Cost Recovery
3. Government Mandate to Provide
4. Reliance on the City to Provide
6 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
2009-2010 Budget $ Difference % Difference
General 37,457,482 35,652,272$ (1,805,210)$ -4.82%
Special Revenues 7,442,956 6,889,799$ (553,157)$ -7.43%
Debt Service 1,633,346 1,651,512$ 18,166$ 1.11%
Capital Improvement Fund 4,477,040 4,217,081$ (259,959)$ -5.81%
Enterprise 96,413,317 85,715,535$ (10,697,782)$ -11.10%
Internal Service 9,687,465 9,588,153$ (99,312)$ -1.03%
Agency 1,087,075 1,181,960$ 94,885$ 8.73%
Pension and Trust 2,250,568 2,280,615$ 30,047$ 1.34%
160,449,249 147,176,927$ (13,272,322)$ -8.27%Total Funds Appropriated
Summary of Appropriations by Fund 2010-2011 Budget
Summary of Revenue by Fund 2009-10 Budget 2010-11 Budget $ Difference % Difference
General 32,555,104$ 31,892,246$ (662,858)$ -2.04%
Permanent 24,000$ 40,500$ 16,500$ 68.75%
Special Revenue 10,138,687$ 9,655,953$ (482,734)$ -4.76%
Debt Service 1,541,000$ 1,698,420$ 157,420$ 10.22%
Capital Improvement 120,000$ 220,066$ 100,066$ 83.39%
Special Assessments 341,000$ 341,000$ -$ 0.00%
Enterprise 76,632,763$ 70,760,511$ (5,872,252)$ -7.66%
Internal Service 9,802,672$ 9,777,494$ (25,178)$ -0.26%
Agency 1,086,675$ 1,181,560$ 94,885$ 8.73%
Trust 1,515,000$ 1,000,000$ (515,000)$ -33.99%
Total City Revenue 133,756,901$ 126,567,750$ (7,189,151)$ -5.37%
ALL FUNDS: APPROPRIATIONS & REVENUES
Appropriations by Fund:
The chart below shows a summary of the
budgeted appropriations for 2010 Fiscal Year
and the 2011 budgeted appropriations. There
was a total of $13,272,322 reduction in spending
from the 2010 Budget.
Revenue by Fund:
7 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
GENERAL FUND: PROGRAM PRIOIRITIZATION
The scoring process of Program Prioritization allowed all programs to be ranked within each Department,
and the array of program rankings was divided in to four quartiles from which the relative “importance”
of all programs could be illustrated.
The overall array for the General Fund revealed a majority of program expense associated with Quartile 1;
this was a validation of the fact that previous resource allocation was closely aligned with the Key Result
Areas.
To achieve a $1.9 million reduction in the General Fund, target reductions were established. Reductions
were determined based on targets for each quartile, on the following schedule for Community Oriented
Programs:
• Quartile 1 Programs 2%
• Quartile 2 Programs 6.5%
• Quartile 3 Programs; 11%
• Quartile 4 Programs; 16%
Reductions were also made to all four tiers for programs that fell within the “Governance” category,
which are by nature support/compliance departments and therefore experienced a maximum tier reduction
of 4%. The decision to reduce funding for Quartile 1 programs was due to the fact that without any
reduction, other quartiles would have had even greater reductions, as well as lessening the requirement for
resourcefulness and efficiency which Program Prioritization emphasizes.
Each department received budget targets based on the quartiles within which their respective programs
fell. Targets were applied to the cost of the previous year’s budget. The rankings served as a guide, but
not as an absolute.
8 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
GENERAL FUND: APPROPRIATIONS
The General Fund is the
general operating fund of the
City. As the pie chart shows,
Public Safety is the largest
portion of appropriations. This
includes Police, Fire,
Emergency Management and
Building Inspections.
2009-10 Budget 2010-11 Budget $ Difference % Difference
General Government 3,815,657$ 3,867,652$ 51,995$ 1.36%
Public Safety 17,789,416$ 17,204,911$ (584,505)$ -3.29%
Public Works 7,009,798$ 6,337,176$ (672,622)$ -9.60%
Environment & Leisure 6,040,561$ 5,621,303$ (419,258)$ -6.94%
Non-Department 2,802,050$ 2,621,230$ (180,820)$ -6.45%
37,457,482$ 35,652,272$ (1,805,210)$ -4.82%
General Fund Summary
Total General Fund
All of the categories show a reduction from the previous budget. The exception is General Government,
which shows an increase due to Economic Development obligations. Without that expense increase,
General Government would also show a reduction from 2010. Outside agency funding, in the Non-
Departmental Fund, was included in the General Fund reductions. This was reduced by 20%, as agreed
upon in the previous year.
9 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
GENERAL FUND: REDUCTIONS
This table shows the expense targets which each department were given to reduce the General Fund
budget by almost $2 million. Additionally, Departments had to absorb any growth in expenses to meet
their budget targets. The table is organized by the type of programs, for example “Community” means
Community Oriented Programs.
Targets by Department 2009-10 Budget 2010-11 Budget
% Difference
Community
Building 856,408$ 828,139$ -3.3%
City Clerk 20,726$ 19,182$ -7.4%
Emergency Mgmt 1,131,175$ 1,098,406$ -2.9%
Fire 6,475,675$ 6,321,584$ -2.4%
Legal 98,507$ 92,759$ -5.8%
Library 1,984,143$ 1,833,464$ -7.6%
Parks & Rec 3,457,192$ 3,063,484$ -11.4%
Planning 177,197$ 170,995$ -3.5%
Police 8,534,039$ 8,010,777$ -6.1%
Public Information 11,818$ 9,927$ -16.0%
Public Works 6,609,789$ 6,080,557$ -8.0%
Total Community 29,356,669$ 27,529,274$ -6.2%
Governance
Building 347,500$ 340,550$ -2.0%
City Clerk 88,360$ 86,593$ -2.0%
Finance 1,997,685$ 1,946,949$ -2.5%
Human Resources 447,892$ 435,577$ -2.7%
Legal 240,446$ 234,836$ -2.3%
Planning 59,065$ 57,293$ -3.0%
Public Information 188,184$ 181,490$ -3.6%
Total Governance 3,369,132$ 3,283,288$ -2.5%
Other
City Administrator 326,068$ 313,182$ -4.0%
Econ Development 129,000$ 300,000$ 132.6%
Mayor 24,715$ 24,580$ -0.5%
Council 88,720$ 79,120$ -10.8%
Non-Departmental 2,804,982$ 2,666,330$ -4.9%
Total Other 3,373,485$ 3,383,212$ 0.3%
Total General Fund 36,099,286$ 34,195,774$ -5.3% *
Every General Fund department made reductions at the program level following the Program
Prioritization model. The impact of the reductions varied from each program and department. Some
reductions were made through program revisions that have minimal or no impact on service delivery. For
example, there will be a reduction in the number of times streets are swept. Reductions were also made
by changes in how and/or by whom that will impact service delivery. For example the School Crossing
Guard program has been eliminated, but the schools may pick up the program.
Departments were also encouraged to review projected revenues within their department. Incremental
revenue, either from new sources or related to revenue increases, was utilized to affect departmental
reductions.
*See next page for General Fund totals.
10 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
General Fund Total 35,652,272$
Less Capital Outlay (Departmental) 1,184,745$
Total 34,467,527$
Less General Fund Reduction Total (pg 9) 34,195,774$
Difference is primarily incremental revenue 271,753$
GENERAL FUND
Expenditures by Category:
Within the General Fund, Personnel
Services are the largest category of
expenditures at 65.8%. Typically in
previous years Personnel Services
was a slightly larger piece of the
total pie. However, this is slightly
less due to no salary increases for
non-union employees and a total
FTE reduction.
The General Fund Total on the previous page, $34,195,774, is different than the General Fund Total on
this page, $35,652,272. This is due Departmental Capital Outlay not included in the departmental totals,
and incremental revenue which offsets expenses. The following chart shows the difference in totals.
2010 Budget 2011 Budget $ Difference % Difference
Personnel Services 24,077,429$ 23,466,239$ (611,190)$ -2.54%
Operating Expenses 9,862,908$ 8,846,288$ (1,016,620)$ -10.31%
Capital Improvements (Debt) 2,162,000$ 2,155,000$ (7,000)$ -0.32%
Capital Outlay (Departmental) 1,355,145$ 1,184,745$ (170,400)$ -12.57%
TOTAL GENERAL FUND 37,457,482$ 35,652,272$ (1,805,210)$ -4.82%
General Fund Appropriation Detail
11 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
GENERAL FUND: REVENUES
The Program Prioritization process resulted in General Fund appropriations being budgeted based on
projected current revenue. The “Other” portion includes a wide variety of sources including
intergovernmental revenue, licenses and permits, and other taxes.
Sales taxes have been the largest source of revenue in the
General Fund since 2004, when voters adopted a half
percent increase in sales tax. In recent years the City has
seen very little growth in sales tax revenues, which has
been accentuated by the economic downturn. As the
City’s largest revenue source, sales tax will not provide
any additional resources this year to match expense
growth.
Sales Tax Revenue History:
*Not adjusted for inflation
2011 Budget
Sales Tax 13,457,800$
Food & Beverage Occupation Tax 1,179,600$
Property Tax 5,118,000$
Fees & Services 2,383,639$
Other 9,753,207$
Total 31,892,246$
12 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
Fiscal Year 2010-11 Rate
General 0.175368
Debt Service 0.067645
Interlocals 0.029487
2010-11 Total 0.272500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Budget
0.370231 0.371796 0.371648 0.371540 0.371540 0.250000 0.250000 0.238319 0.238319 0.250000 0.272500 0.272500
Levy Rate
PROPERTY TAX REVENUES
A levy indicates the amount of tax property owners pay for each $100 valuation of their property.
Property Tax can be calculated by Assessed Valuation divided by 100 multiplied by the levy. As
proposed, the City’s total levy rate is .2725, the same as the 2009-2010 Budget. A citizen can expect to
pay $272.50 in City taxes on a $100,000 home at the current .2725 levy.
Property Tax Levy from 2000-2011:
The Budgeted .272500 rate is made up of 3 separate
levy rates: the General Fund, Debt Service, and
Interlocals. This is the actual breakdown of the .272500 levy:
Total property tax revenue is projected without a total levy rate increase. Due to a slight increase in
valuations, there is a projected increase in total property tax revenue by $401,133. Valuation is projected
to increase from $2,351,143,887 in 2010 to $2,498,348,795 in 2011. Actual valuation of property is
determined by the Hall County Assessor and will be available to the City in mid-August.
Division of the Property Tax Dollar:
This chart shows that only one-seventh or
14% of the property taxes paid by property
owners last year were paid to the City of
Grand Island. This chart is based on last
year’s levy rates. Other taxing entities
include the CRA, Airport, Agricultural
Society, and Educational Service Unit.
13 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
SPECIAL REVENUE FUNDS
Special Revenue Funds are separate funds designated for a specific revenue source, with a specific use
and limitation on each.
2009-10 Budget 2010-11 Budget $ Difference % Difference
Enhanced 911 Communications 313,923$ 261,488$ (52,435)$ -16.70%
PCS Wireless -$ 66,805$ 66,805$ -
Community Youth Council 27,250$ 22,875$ (4,375)$ -16.06%
Revolving Loan 22,000$ 22,000$ -$ 0.00%
Economic Development 1,122,500$ 822,500$ (300,000)$ -26.73%
Homestead Loan Program 80,000$ 80,000$ -$ 0.00%
Community Development 99,996$ 59,899$ (40,097)$ -40.10%
Community Grants 5,034,486$ 5,079,331$ 44,845$ 0.89%
Police Grants 399,804$ 246,091$ (153,713)$ -38.45%
Parking District #1 83,608$ 78,197$ (5,411)$ -6.47%
Parking District #2 54,133$ 40,389$ (13,744)$ -25.39%
Backflow Prevention Program 78,806$ -$ (78,806)$ -100.00%
Local Assistance 126,449$ 110,224$ (16,225)$ -12.83%
7,442,955$ 6,889,799$ (553,156)$ -7.43%Total Special Revenues
Special Revenues Appropriations
Most of the Special Revenue Funds are budgeted to decrease in the 2011 Budget, with the exception of a
new fund, PCS Wireless. The PCS Wireless Fund is similar to the Enhanced 911 Communication Fund,
but specific for wireless lines. Community Grants is budgeted with a slight increase in the 2011 Budget.
2010 was a very active year for Community Grants due to several successful awarded grants, such as
Neighborhood Stabilization.
14 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
Wood River Flood
Control Bonds
Various Purpose
Paving Bonds
Various Purpose
S. Locust Street
Public Safety
Center
Heartland
Event Center
Library
Expansion
State Fair
Building
Future CIP
Bonding TOTALS
Pmt for 2010 270,408 54,148 354,227 861,063 569,493 829,690 753,112 0 3,692,141
Balance at 9/30/2010 1,230,000 55,000 2,680,000 5,735,000 6,270,000 4,470,000 4,518,829 0 24,958,829
Pmt for 2011 268,006 56,430 375,913 857,663 570,038 832,828 753,112 40,000 3,753,990
Balance at 9/30/2011 1,005,000 - 2,365,000 5,115,000 5,950,000 3,785,000 3,951,806 2,300,000 24,471,806
Pmt for 2012 274,745 376,385 858,173 569,715 829,540 753,112 321,321 3,982,991
Balance at 9/30/2012 765,000 2,045,000 4,470,000 5,620,000 3,080,000 3,360,429 4,108,786 23,449,215
Pmt for 2013 275,615 375,980 857,373 563,574 829,780 753,112 571,889 4,227,323
Balance at 9/30/2013 515,000 1,720,000 3,800,000 5,285,000 2,350,000 2,743,651 5,747,472 22,161,123
Pmt for 2014 265,865 374,508 860,573 566,495 828,415 753,112 828,478 4,477,446
Balance at 9/30/2014 265,000 1,390,000 3,100,000 4,935,000 1,595,000 2,100,382 7,212,186 20,597,568
Pmt for 2015 270,433 366,753 856,873 568,443 830,303 753,112 1,091,165 4,737,082
Balance at 9/30/2015 - 1,060,000 2,375,000 4,570,000 810,000 1,429,484 8,498,000 18,742,484
Pmt for 2016 372,629 856,785 569,470 825,390 753,112 1,360,027 4,737,413
Balance at 9/30/2016 715,000 1,620,000 4,190,000 - 729,769 9,598,879 16,853,648
Pmt for 2017 367,288 860,075 564,450 753,112 1,635,143 4,180,068
Balance at 9/30/2017 365,000 830,000 3,800,000 - 10,507,616 15,502,616
Pmt for 2018 376,863 866,105 567,938 1,916,587 3,727,493
Balance at 9/30/2018 - - 3,390,000 11,215,756 14,605,756
Pmt for 2019 565,194 2,204,436 2,769,630
Balance at 9/30/2019 2,965,000 9,713,508 12,678,508
Pmt for 2020 566,706 2,164,436 2,731,142
Balance at 9/30/2020 2,520,000 8,126,651 10,646,651
Pmt for 2021 562,475 2,164,436 2,726,911
Balance at 9/30/2021 2,060,000 6,450,214 8,510,214
Pmt for 2022 561,900 1,883,115 2,445,015
Balance at 9/30/2022 1,580,000 4,963,054 6,543,054
Pmt for 2023 564,738 1,632,546 2,197,284
Balance at 9/30/2023 1,075,000 3,640,308 4,715,308
Pmt for 2024 561,563 1,375,958 1,937,521
Balance at 9/30/2024 550,000 2,494,436 3,044,436
Pmt for 2025 562,375 1,113,271 1,675,646
Balance at 9/30/2025 - 1,539,795 1,539,795
DEBT SERVICE FUND
Debt Service Funds are used to account for the accumulation of financial resources, and the payment of
general long-term debt principal, interest and related costs for General Obligation and Assessment Bonds.
Debt Service Fund 2009-10 Budget 2010-11 Budget $ Difference % Difference
Debt Service Appropriation 1,633,346$ 1,651,512$ 18,166$ 1.1%
The Chart below shows the various bonds and the City’s total debt. The second to last column is the
bonding for the Capital Improvement Plan (see the next page for CIP). This is important because from
2011-2017 the projection for an annual bond of $2 million. The Heartland Events Center, Library
Expansion, and State Fair Building are not part of the Debt Service Fund, but are included here because
they are part of the total debt.
Total Debts:
15 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
CAPITAL IMPROVEMENT FUND
The Capital Improvement Fund provides for major improvements, planning, infrastructure and building
construction, renovation and replacement, streets, and drainage improvements. Resources are allocated
according to a Five-Year Capital Improvement Plan (CIP). A CIP is necessary for the City’s long-term
fiscal planning due to the large costs necessary for CIP projects. During the 2010 fiscal year, the City
implemented a new process to identify programs and prioritizes those similar to the Program
Prioritization model. The main criteria used to rank programs include:
• Reaffirmation of Committed Projects
• Fund Leveraging
• Overall Cost to City
• Life Safety and Legal Issues
• Immediacy of Need-Urgency
• Operational Savings and Efficiencies
• Do-able, Ease of Implementation, Likelihood of Success, Difficulty Implementing and Solve the
Need
Projects Funded from Gas Tax Money 2010 Budget 2011 Budget
Stolley Park Rd Widening-Locust to Events Cntr-Construction 200,000$ -$
Environmental study/engineering Broadwell/UPRR -$ 128,000$
So Locust; I-80 to City Limits (Wood River Floodway) 126,000$ -$
Capital Ave; Drainway to Webb Road 150,000$ -$
Roundabout-Capital and North Road -$ 360,000$
Realign Walnut Entr. & Custer/15th Signal 100,540$ 220,066$
Misc Safety Enhancements-RR Study 150,000$ 110,000$
Replace Wood River Bridget @ Blaine -$ 45,000$
New Traffic Signal Installations 106,000$ 80,000$
Total 832,540$ 943,066$
Bonding Projects/Funding from General Fund
Wasmer Detention Cell 220,000$ 211,015$
Moores Creek, Faidley, Edna Construction 250,000$ 220,000$
Northwest Drainage Project - Feasibility & Design 725,000$ 400,000$
Platte Valley Indust Site, Cells to Wood River 127,000$ 127,000$
Independence Ave Drainage -$ 80,000$
Construct Drainway-CCC to Wood River 382,500$ 330,600$
Lincoln Park Pool -$ 1,100,000$
Total 1,704,500$ 2,468,615$
Remaining Capital Projects
Fiber Optic Connections 90,000$ 90,000$
Infrastructure Emergency Funds 60,000$ 60,000$
Grand Generation Center -$ -$
Line Drainage Concrete Ditch -$ 50,000$
Integrated/Comprehensive Drainage Plan 115,000$ 80,000$
Annual Sidewalk Projects 25,000$ 25,000$
Miscellaneous Park Projects 150,000$ 150,000$
Athletic Complex Development-Vets Home 1,300,000$ 250,000$
Hiker/Biker Trails 200,000$ 100,400$
Total 1,940,000$ 805,400$
Total Capital Program 4,477,040$ 4,217,081$
Some 2010 Budget projects have not been completed or started. The Lincoln Park Pool project in 2011
would require a public referendum for bonding authorization.
16 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a manner similar to
private business enterprises. The Enterprise Funds make up 58% of the City’s total appropriations.
Enterprise Funds are primarily supported by user fees.
Appropriations:
2010 Budget 2011 Budget $ Difference % Difference
Total Solid Waste 2,973,942$ 2,949,920$ (24,022)$ -0.81%
Total Golf Course 644,969$ 649,945$ 4,976$ 0.77%
Total Electric Utility 65,104,412$ 61,018,581$ (4,085,831)$ -6.28%
Total Water Utility 6,640,630$ 5,473,350$ (1,167,280)$ -17.58%
Total Wastewater Utility 21,051,472$ 15,623,739$ (5,427,733)$ -25.78%
TOTAL ENTERPRISE FUNDS 96,415,425$ 85,715,535$ (10,699,890)$ -11.10%
Enterprise Fund Appropriations
17 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
PERSONNEL: ALL FUNDS
The 2011 Budget includes 548.84 full-time equivalent (FTE) employees, a net reduction of 30.9846 FTE
from the 2010 Budget. The costs savings associated with the FTE reduction is $1,644,753.
The positions reduced are shown on the
next page.
Personnel Allocation by Department 2010 FTE 2011 Change 2011 FTE
Administration 3.000 - 3.0000
City Clerk 1.000 - 1.0000
Finance 27.000 (1.5000) 25.5000
Legal 3.000 - 3.0000
Community Projects - - -
City Hall Buildings 2.000 - 2.0000
Human Resources 4.000 - 4.0000
Building Inspection 10.000 - 10.0000
Fire Services 75.000 (8.0000) 67.0000
Police Services 99.936 (11.1772) 88.7588
Emergency Management 17.000 (1.0000) 16.0000
Engineering 10.250 (1.0000) 9.2500
Streets and Transportation 28.000 (3.0000) 25.0000
Planning 2.620 - 2.6200
Library 27.348 (2.7924) 24.5556
Parks & Cemetery 31.570 (3.7200) 27.8500
Recreation 23.473 3.0800 26.5530
Public Information 2.000 (0.1500) 1.8500
Heartland Shooting Range 4.500 (0.5000) 4.0000
GENERAL FUND TOTALS 371.697 (29.7596) 343.4374
Community Youth Council - 0.1500 0.1500
Backflow Prevention Program - - -
Parking Facility District #2 0.400 (0.4000) -
Parking District #1 0.225 (0.2250) -
Community Development 2.000 - 2.0000
Enhanced 911 Communications 1.000 1.0000 2.0000
SPECIAL REVENUE TOTALS 3.6250 0.5250 4.1500
Sewer Utility 30.321 - 30.3210
Water Utility 11.500 - 11.5000
Electric Utility 129.380 - 129.3800
Golf Course 5.500 - 5.5000
Solid Waste 12.050 - 12.0500
ENTERPRISE TOTALS 188.751 - 188.7510
Fleet Services 6.750 (0.7500) 6.0000
Information Technology 7.500 (1.0000) 6.5000
INTERNAL SERVICE TOTALS 14.250 (1.7500) 12.5000
ALL FUND TOTALS 578.323 30.9846 548.8384
The number of FTE in the 2011
Budget has not been this low
since 2003, when the there were
544.818 FTE positions.
However, the population in
Grand Island from 2003 to 2011
has grown; therefore, City staff
per capita will be less in 2011.
18 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
PERSONNEL DETAILS
The chart below shows the positions reduced or changed to reach the new FTE Total. Some of the
positions show an increase; this is due to the reorganization of multiple positions.
Staffing needs for the new Community Field House forced
Parks and Recreation Department to reallocate personnel.
Those FTE positions were not shown to the right, but are
shown below since some of those positions were
transferred to the Community Field House. The Recreation
Coordinator is a full-time position split with the Recreation
Department, but only a net increase of 0.5 FTE. Seasonal
Workers from Park Operations, Volleyball and Basketball
were all reductions from other areas and reallocated to the
Field House.
Field House Position Changes FTE
Recreation Coordinator 0.5
Maintenance Worker ( from Park Ops) 0.58
Seasonal Workers ( from Volleyball) 0.48
Seasonal Workers ( from Basketball) 0.23
Seasonal Workers 2.0
Net FTE Change: 2.5
Some portions of personnel costs were reallocated to
another fund based on the staff time spent on those
programs. This will allow for those programs to better
cover the costs of the services they provide. Those include
the Public Information Officer, Planning Secretary,
Emergency Management Deputy and Communications
Specialist.
Positions Reduced in 2011 Budget FTE Change
Meter Reader (vacant) -0.5
Cashier (Finance) -1.0
Firefighter/EMT (grant positions) -3.0
Firefighter/Paramedic (grant positions) -3.0
Firefighter/EMT (vacant) -2.0
Community Service Officer (vacant) -0.6272
Police Record Clerk FT -1.0
Police Record Clerk 2-PT -1.0
School Crossing Guards -4.55
Police Officers -3.0
Police Officers - FT (vacant) -4.0
3 Grant Positions 3.0
Parking Monitor -0.4
Parking Monitor -0.225
Sr. Equipment Operator (vacant) -1.0
Equipment Operator -1.0
Seasonal Workers (PW) -1.0
Civil Engineer Manager -1.0
Engineer Tech Supervisor -1.0
Project Manager (PW) 1.0
Fleet Services Attendant/Clerk-PT -0.75
Fleet Services Inventory Specialist -1.0
Inventory Clerk 1.0
Library Assistants PT (vacant) -1.0808
Library Clerk (vacant) -1.0
Library Page (vacant) -0.3366
Seasonal Workers (Library) -0.375
Maintenance Worker (Cemetary) -1.0
Maintenance Worker (Cemetary) 0.27
Seasonal Workers (Shooting) -0.5
Maintenance Worker (Park Ops) -1.0
Seasonal Worker (Park Ops) -0.81
Seasonal Workers (Greenhouse) -0.6
IT Supervisor (vacant) -1.0
Field House FTE change 2.5
Total FTE Change from 2010 -30.9846
19 CITY OF GRAND ISLAND
Budget in Brief 2010 - 2011
NOTES:
City of Grand Island
City Hall
100 East First Street, Box 1968
Grand Island, Nebraska 68802-1968
(308)385-5444