07-15-2014 City Council Study Session Packet
City of Grand Island
Tuesday, July 15, 2014
Study Session - Updated Packet
City Council:
Linna Dee Donaldson
John Gericke
Peg Gilbert
Chuck Haase
Julie Hehnke
Kent Mann
Vaughn Minton
Mitchell Nickerson
Mike Paulick
Mark Stelk
Mayor:
Jay Vavricek
City Administrator:
Mary Lou Brown
City Clerk:
RaNae Edwards
7:00 PM
Council Chambers - City Hall
100 East 1st Street
Grand Island Study Session - Updated - 7/15/2014 Page 1 / 26
City of Grand Island Tuesday, July 15, 2014
Call to Order
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.
Invocation
Pledge of Allegiance
Roll Call
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.
Grand Island Study Session - Updated - 7/15/2014 Page 2 / 26
City of Grand Island
Tuesday, July 15, 2014
Study Session - Updated
Item -1
Planning for Today and Tomorrow City of Grand Island 5,000
Foot View
Staff Contact: Mary Lou Brown, City Administrator, Jaye Monter
Grand Island Study Session - Updated - 7/15/2014 Page 3 / 26
GENERALFUND7-15-142014-2015Planning for Today and TomorrowCity of Grand Island5,000 Foot ViewGrand IslandStudy Session - Updated - 7/15/2014Page 4 / 26
Financial sustainability of City policies and services to best serve the people of Grand Island.Council Retreat January 22, 2011GoalGrand IslandStudy Session - Updated - 7/15/2014Page 5 / 26
Meet service expectations based on prioritizationIdentify the financial needs for the next 12 monthsLay the groundwork for long-term financial sustainabilityPurpose of the BudgetThe Budget is driven by prioritization, backed by citizen awareness and approved by Council.Grand IslandStudy Session - Updated - 7/15/2014Page 6 / 26
Existing revenue sources and current levels of taxation enable the City to:•Continue the funding of ICMA public safety recommendations•Maintain existing or improved levels of service to the community•Meet State statue regarding employee wage and salary increases•Address necessary infrastructure maintenance, improvements and construction with a $9.5 million capital programall while maintainingA strong financial position with adequate cash reserves to function through a three month financial disaster2015 Budget SummaryGrand IslandStudy Session - Updated - 7/15/2014Page 7 / 26
Revenue ProjectionGENERALFUND2014 2014 2015Budget Forecast Budget GrowthSales Tax 15,225,000 15,319,000 15,702,000 2.50%Property Tax 7,112,000 7,000,000 7,453,000 6.47%Fees & Services 5,019,000 5,101,000 5,225,000 2.43%Intergovernmental 2,965,000 2,917,000 3,083,000 5.69%Municipal Equalization 591,000 552,000 425,000(23.01)%Gas Tax/Other Transfers In 4,523,000 4,623,000 4,690,000 1.45%Food & Beverage Tax 1,504,000 1,516,000 1,584,000 4.49%Occupation/Other Taxes 2,628,000 2,633,000 2,652,000 0.72%Licenses & Permits 507,000 622,000 635,000 2.09%Other Revenue/Interest 1,123,000 2,338,000 1,092,000(53.29)%Total Revenue 41,197,000 42,621,000 42,541,000(0.19)%Grand IslandStudy Session - Updated - 7/15/2014Page 8 / 26
Current valuation of $2,574,553,7892015 budget valuation estimated increase of 2.5% Resulting in General Fund property tax revenue of $7,453,000General Fund Property TaxGeneral Fund 0.28243Debt Service 0.04167City Total 0.3241Mill LevyGrand IslandStudy Session - Updated - 7/15/2014Page 9 / 26
Normalized Revenue2014 Forecast 2015 Budget GrowthTotal Revenue $42,621,000 $42,541,000(0.2)%Asset Sales(1,251,000) (25,000)Transfers In(4,623,000) (4,690,000)Municipal Equalization(552,000) (425,000)Normalized Revenue $36,195,000 $37,401,000 3.3%Grand IslandStudy Session - Updated - 7/15/2014Page 10 / 26
•Total positions added since 2013‒10 additional “feet-on-the-street”‒4 additional community service officers‒1 crime analyst‒1 records clerk•Over $1 million incremental expenses in salaries and operating expensesSafer Community - Police GENERALFUNDGrand IslandStudy Session - Updated - 7/15/2014Page 11 / 26
• Shift Commander positions implemented• Life Safety Officer for the full year• Second Life Safety Officer included in FTE requestsSafer Community - FireGrand IslandStudy Session - Updated - 7/15/2014Page 12 / 26
•New city comparisons utilizedCities outside of Nebraska (50,000-100,000)•Wages reflect impact of MSA/CIR for all seven union contracts and the non-union employee group•$1,059,000 impact for union and non-union wage increasesMetropolitan Statistical Area (MSA)/Comparability Rules (CIR)GENERALFUNDGrand IslandStudy Session - Updated - 7/15/2014Page 13 / 26
General Fund FTEsCommunications(0.50)Sr. Public Safety Dispatcher from 21520006 to 10022601(41,455.00)1.00Sr. Public Safety Dispatcher 100% to 10022601 81,376.000.50 TOTAL EMERGENCY MANAGEMENT39,921.00(1.00)Building Secretary FT (vacant since 2011) 0.000.25Building Secretary PT 8,891.00(0.75)TOTAL BUILDING8,891.001.00Life Safety Inspector (start 12 1-2014, benefits 2-1-2015)57,441.00 (Life Safety Inspector full year with benefits = $75,915.00)1.00 TOTAL FIRE57,441.00Operations0.50Seasonal Park Maintenance 11,325.00Heartland Shooting Park1.00Heartland Shoot Park Safety Range Officer (start 1-1-2015, with benefits 3-1-2015)51,445.00 (HSP Safety Range Officer full year with benefits = $75,285.00)1.50 TOTAL PARKS62,770.002.25TOTAL GENERAL FUND INCREASE 169,023.00$ EMERGENCY MANAGEMENTBUILDINGFIREPARKSGrand IslandStudy Session - Updated - 7/15/2014Page 14 / 26
2014-2015 Operating ExpensePavement repair program(104,020.00)Salary survey program(22,000.00)One stop building program(10,000.00)Administrative Legal programs(8,000.00)Total Reductions(144,020.00)Grand IslandStudy Session - Updated - 7/15/2014Page 15 / 26
2014-2015 Operating ExpenseAsset Management software maintenance 76,000.00Net increase from growth at the Heartland Public Shoot Park and other Park & Rec operations14,368.00Net increase related to building permit software maintenance5,500.00Phone alert system contract 5,000.00Fuel costs for additional Police vehicles 5,000.00Legal notices for meetings 3,000.00Utility expense for City Hall 2,000.00Information Technology chargeout 69,442.00Total Increases 180,310.00Grand IslandStudy Session - Updated - 7/15/2014Page 16 / 26
2014-2015 Operating ExpenseTotal Reductions(144,020.00)Total Increases 180,310.00Net Increase 36,290.00Less than ½ of a percent increaseGrand IslandStudy Session - Updated - 7/15/2014Page 17 / 26
Increased AppropriationsGrand IslandStudy Session - Updated - 7/15/2014Page 18 / 26
DebtVarious Purpose Public Safety Heartland Library State Fair S . Locust Street Center Event Center Expansion Building Total Pmt for 2014 $ 374,508 $ 822,550 $ 518,751 $ 794,580 $ 753,112 $ 3,263,501 Balance at 9/30/2014 $ 1,390,000 $ 3,080,000 $ 4,925,000 $1,560,000 $2,100,382 $13,055,382 Pmt for 2015 $ 366,753 $ 815,790 $ 520,795 $ 794,948 $ 753,112 $ 3,251,397 Balance at 9/30/2015 $ 1,060,000 $ 2,340,000 $ 4,515,000 $ 785,000 $1,426,484 $10,126,484 Pmt for 2016 $ 372,629 $ 815,990 $ 522,080 $ 792,261 $ 753,112 $ 3,256,072 Balance at 9/30/2016 $ 715,000 $ 1,585,000 $ 4,100,000 $ - $ 729,769 $ 7,129,769 Pmt for 2017 $ 367,288 $ 823,625 $ 517,204 $ 753,112 $ 2,461,228 Balance at 9/30/2017 $ 365,000 $ 805,000 $ 3,685,000 $ - $ 4,855,000 Pmt for 2018 $ 370,931 $ 828,345 $ 520,684 $ 1,719,960 Balance at 9/30/2018 $ - $ - $ 3,260,000 $ 3,260,000 Pmt for 2019 $ 517,450 $ 517,450 Balance at 9/30/2019 $ 2,830,000 $ 2,830,000 Pmt for 2020 $ 522,484 $ 522,484 Balance at 9/30/2020 $ 2,385,000 $ 2,385,000 Pmt for 2021 $ 516,070 $ 516,070 Balance at 9/30/2021 $ 1,935,000 $ 1,935,000 Pmt for 2022 $ 513,553 $ 513,553 Balance at 9/30/2022 $ 1,475,000 $ 1,475,000 Pmt for 2023 $ 519,798 $ 519,798 Balance at 9/30/2023 $ 995,000 $ 995,000 Pmt for 2024 $ 514,758 $ 514,758 Balance at 9/30/2024 $ 505,000 $ 505,000 Pmt for 2025 $ 513,459 $ 513,459 Balance at 9/30/2025 $ - $ - Grand IslandStudy Session - Updated - 7/15/2014Page 19 / 26
State Fair Building DebtFood and Beverage Occupation Tax is calculated to end December 31, 2015Debt retirement scheduled for July 1, 2017$425,000 State of Nebraska Lottery Match will need new general fund revenue source beginning October 1, 2016Grand IslandStudy Session - Updated - 7/15/2014Page 20 / 26
2015 Capital Improvements Budget SummaryStreets: $6,132,990Parks: $1,712,932Drainage: $1,175,000Fire/Emergency Center: $ 250,000Grand Generation: $ 100,000GITV: $ 100,000Information Technology Dept: $ 40,000Total Capital Requests: $9,510,922•$665,000 of capital dollars is mandated•$2,400,922 of capital dollars is funding Federal Aid projects•$2,150,000 of capital dollars is assessable •$1,300,311 is to be reimbursed for Federal Aid projects Grand IslandStudy Session - Updated - 7/15/2014Page 21 / 26
General Fund Cash Balance SummaryBeginning Cash Balance 9-30-14 10,843,193 Unrestricted Cash 9,697,703 Restricted Cash - Food & Drink 1,145,490 Revenue 42,541,000 ExpensesPersonnel (net of contingency)27,946,098 Operating9,538,153 Subtotal 37,484,251 Transfers Out 1,760,000 General Fund Capital 1,369,052 Debt Payments 1,273,907 Debt Retirement 1,579,950 Total Expenses 43,467,160 Ending Cash Balance 9-30-15 9,917,033 Unrestricted Cash 8,365,338 Restricted Cash - Food & Drink 1,551,695 Unrestricted Cash as a % of operating22.3%Grand IslandStudy Session - Updated - 7/15/2014Page 22 / 26
• Maintains current level of services within the normalized revenue growth of 3.3%• Safer and cleaner community• Economic growth• Salary increases resulting from state laws governing public employees• Operational growth – additional full-time equivalents (FTE) and minimal operational expense growth• Funding for new and current infrastructure• Unrestricted cash reserve to personnel and operating expense remains at adequate levels (ratio of 22.3%)• Tax rates are unchangedBudget AccomplishmentsGrand IslandStudy Session - Updated - 7/15/2014Page 23 / 26
Capital Projects•50-year-old Fire Station #2•Alternative 911 Center•Improve ISO rating with fire training tower addition•20-year-old Island Oasis•Complete development of Veteran’s Athletic fields•Fieldhouse turf replacement•Downtown redevelopment•Cemetery expansionCommunity Objectives•Community visioning process•Community marketingFuture PlanningGrand IslandStudy Session - Updated - 7/15/2014Page 24 / 26
2014-2015 Budget Meeting ScheduleWeek of July 27, 2014 Tuesday, August 12, 2014 - Council MeetingBudget Books distributed to Council Public hearing on City Budget opensCopies available online and at the Grand Island LibraryPublic hearing on CRA Budget opensApprove budgets and assessments for BIDsSet date for Board of EqualizationThursday, August 14, 2014 – Study Session Tuesday, August 19, 2014 - Special MeetingBudget Study Session Budget and salary ordinance approvalThursday, August 21, 2014 – Study Session Tuesday, August 26, 2014 – Council MeetingBudget Study Session Potential Budget study sessionThursday, August 28, 2014 – Study Session Tuesday, September 9, 2014 - Council MeetingBudget Study Session Approve 2014-2015 BudgetGrand IslandStudy Session - Updated - 7/15/2014Page 25 / 26
Thank youandLet’s move our community forward togetherGrand IslandStudy Session - Updated - 7/15/2014Page 26 / 26