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08-22-2023 City Council Study Session (Budget) Packet City Council Meeting Agenda Council Chambers City Hall 100 East First Street Study Session of August 22, 2023 6:00 PM 1. 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. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. SUBMITTAL OF REQUESTS FOR FUTURE AGENDA 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. 5. RESERVE TIME TO SPEAK ON AGENDA ITEMS A sign-up sheet was available in the lobby for individuals wishing to provide input on any of tonight's agenda items. If you did not sign up to speak on an agenda item, please come forward, state your name and the agenda topic on which you will be speaking on. 6. ITEMS FOR DISCUSSION a. Wastewater Division Budget Presentation Update b. JackRabbit Run Golf Course Budget Presentation c. Parks & Recreation Budget Presentation - Capital Improvements & Equipment d. Final Review of FY24 Budget 7. ADJOURN Page 1 of 44 AGENDA MEMO To: The Mayor and City Council Agenda: City Council Study Session (Budget) Date: August 22, 2023 Item #: 6.a. Subject: Wastewater Division Budget Presentation Update Staff Contact: Matt Walker, Keith Kurz BACKGROUND: DISCUSSION: FISCAL IMPACT: ALTERNATIVES: RECOMMENDATION: SAMPLE MOTION: ATTACHMENTS: 1. Wastewater PowerPoint Page 2 of 44 PUBLIC WORKS WASTEWATER DIVISION BUDGET UPDATE Page 3 of 44 PUBLIC WORKS FY 2024 CASH BALANCE Projected 2023 Ending Unrestricted Cash Balance 7,333,156.00$ Projected 2023 Ending *Committed Cash Balance 4,025,885.00$ Revenue 15,449,000.00$ Other Funding Sources -$ Total Resources Available 26,808,041.00$ Operating Costs 10,226,505.00$ Loan/Bond Payments 4,186,702.00$ Capital Expenses 4,967,900.00$ Total Expenditures 19,381,107.00$ Projected 2024 Ending Cash Balance 7,426,934.00$ * Committed Cash includes debt service and capital projects Page 4 of 44 FY24 PROJECTS WITH FUTURE YEAR EXPENSES Project 2024 2025 2026 2027 2028 2029 Flow Improvements 2,385,000$ 852,000$ -$ -$ -$ -$ UV System Upgrade 100,212$ 516,093$ 531,576$ -$ 463,710$ 5,492,641$ Collection Building 25,750$ 318,270$ 3,604,906$ -$ -$ -$ Septage Receiving Station 113,300$ -$ -$ -$ -$ -$ Relocate Lift Station No. 17 544,000$ -$ -$ -$ -$ -$ Sewer Rehabilitation 89,919$ 1,163,065$ -$ -$ -$ -$ Flow Monitoring 94,719$ -$ -$ -$ -$ -$ MH Lining & Open Cut Projects 1,140,000$ -$ -$ -$ -$ -$ Northview Subdivision Sanitary Sewer Distict 200,000$ 1,700,000$ 4,692,900$ 4,549,428$ 4,136,482$ -$ 463,710$ 5,492,641$ Page 5 of 44 AGENDA MEMO To: The Mayor and City Council Agenda: City Council Study Session (Budget) Date: August 22, 2023 Item #: 6.b. Subject: JackRabbit Run Golf Course Budget Presentation Staff Contact: Todd McCoy BACKGROUND: DISCUSSION: FISCAL IMPACT: ALTERNATIVES: RECOMMENDATION: SAMPLE MOTION: ATTACHMENTS: 1. Presentation 2. Business Plan Page 6 of 44 8/18/2023 1 Jackrabbit Run Grand Island, NE FY2024 Budget Presentation AGENDA •Golf Market Snapshot •Customer Insights •Operating Strategies •Financial Review •FY 2024 Budget •Facility Improvements Page 7 of 44 8/18/2023 2 THE VOICE OF THE CUSTOMER “I really enjoy the atmosphere of this course. I can always find a time to play a round and the people are kind.”–Evan Lee “Hands down, best place in town!!!.” –Troy Hulse “When the management change happened, I never expected a good result. I was wrong and I cannot say enough good things about the whole operation. Good job.” –Vivian Buck “I feel very fortunate to belong to Jackrabbit. Wonderful course and staff. –Cindy Stern “I am very happy with all my experiences. I just wish I could play better.” –Steve Paustian NPS Recommend 1-10 Scale NPS Score 1-100 Scale Course Conditions 1-5 Scale How likely to return 1-10 Scale Pace of Play 1-5 Scale Staff Helpful 1-5 Scale Professionalism 1-5 Scale 9 74(up from 65 last year)4.6 9.5 4.3 4.7 4.8 Page 8 of 44 8/18/2023 3 FISCAL YEAR 2024 ‐KEY STRATEGIES –GOLF OPERATIONS Golf Outings Pricing opportunities of increasing outing prices by 10%. This increase keeps us inline or below our market  competitors. We feel confident these pricing increases will not have a negative impact on our customer  base. Increase merchandise sales by 7.5% through new product offerings and merchandising techniques. Revenue Generation Jackrabbit Run App available to our patrons Tagmarshal GPS Units Noteefy Reservation System Loyalty Program Sponsorship Recruitment Advertising opportunity available on the new Tagmarshal GPS System FISCAL YEAR 2024 ‐KEY STRATEGIES –FOOD & BEVERAGE Inventory/Revenue Management Completion of weekly inventory and weekly profit and loss statement. This allows us to evaluate key  performance indicators such as payroll as a percentage of revenue, net operating income, etc. Continual new menu creation with choices not previously offered Beverage Cart Services Emphasize upselling and conduct upselling training for F&B employees Jackrabbit Run App will allow order ahead for our patrons External Event Recruitment Graduation parties, employee retreats, rehearsal dinners, etc. Encourage customers with high margin selections for their event menus to improve NOI Page 9 of 44 8/18/2023 4 FISCAL YEAR 2024 ‐KEY STRATEGIES –GROUNDS MAINTENANCE Staffing & Equipment We are committed to providing the team the resources to be successful and the  opportunity to enhance the on‐course experience. Ensure adequate staffing levels are present to continue the success of the operation. Best Practices & Initiatives Continue to monitor availability of products. Make early purchases, if necessary, to  ensure timely chemical applications. Monitor inventory and ordering levels to ensure end of the season inventory levels are  minimal. FY 2023 Financial Summary Page 10 of 44 8/18/2023 5 Year  over Year  Financial Comparison FY2022 FY2023 Trend % Change Total Change Rounds 26,191 26,561 1.4% 370 Revenue $932,299 $1,027,822 10.2% $95,523 Gross Profit $826,689 $895,671 8.3% $68,982 Expenses $772,695 $866,746 12% $94,051 EBITDA $53,994 $28,995 (46%)($24,999) Fiscal Year 2023 ‐Budget Summary Page 11 of 44 8/18/2023 6 FISCAL YEAR 2024 –PROPOSED EQUIPMENT & IMPROVEMENTS Maintenance Equipment Pick‐up Truck with Snow Blade Spin Grinder Tri‐Plex Tee Mower Sand Pro (previously approved‐not arrived yet)  4 additions above total approximately $36,300 additional annual spend. Building Enhancements Clubhouse Study Snack Bar Improvements Sales/Prep Areas Shop Lift in Maintenance Building On‐Course Improvements Replace Submersible Pump for Winter Watering System Tree Removal/Planting (Multi‐Year Project) Maintenance & Restroom Doors, Concrete Pads Project to Renovate Lake on Hole #4 Weather Shelter on Hole #17 New Tee Box Equipment Dots indicate 163 Scotch Pine trees that will need  To be removed over the Next 3‐5 years.  There have already been Over 500 trees removed  From the course. Page 12 of 44 8/18/2023 7 Dots indicate proposed  Places for 100 new trees to be planted over the next 3‐5 years based on manpower And budget constraints Thank You Page 13 of 44 Jackrabbit Run Business Plan – 2024 Page 14 of 44 Jackrabbit Run Golf Course Business Plan 2024 2 Table of Contents Mission Statement......................................................................................................................... 3 Executive Summary ...................................................................................................................... 4 Market Conditions ........................................................................................................................ 6 SWOT Analysis ......................................................................................................................... 7 Golf Operations Objectives .......................................................................................................... 8 Food & Beverage Objectives........................................................................................................ 9 Annual Pass Sales Objectives..................................................................................................... 10 Golf Course Maintenance Objectives........................................................................................ 10 Capital Expense Plan.................................................................................................................. 11 Marketing Objectives ................................................................................................................. 12 Revenue Goals ............................................................................................................................. 12 Lead Generation Steps ............................................................................................................... 12 Competitive Analysis .................................................................................................................. 13 Proposed Rates ............................................................................................................................ 14 Page 15 of 44 Jackrabbit Run Golf Course Business Plan 2024 3 Mission Statement Jackrabbit Run Golf Course strives to provide our customers and annual passholders a fantastic and friendly customer service experience alongside an exceptionally maintained public golf course. Overall Vision Jackrabbit Run Golf Course will provide golfers with a memorable experience in the central Nebraska golf market by offering a well-maintained and fair golfing experience. We enjoy attracting golfers of all skills levels throughout the state and offer a comprehensive tournament and event schedule. The clubhouse offers a food and beverage menu with several options ranging from outstanding cheeseburgers to salads and several novel sandwich options. Jackrabbit Run is proud to present a complete golfing experience and a fantastic opportunity to feel a sense of community in a public golf setting. Brand Positioning Statement Jackrabbit Run is a golf course that is dedicated to the customer experience and showcases excellent on- course playing conditions. Jackrabbit Run exemplifies the character and charm of central Nebraska golf. Our staff is excited to provide our customers a laid-back and friendly environment in which you feel “at home.” Landscapes Golf Management Landscapes Golf Management, as the course manager, strives to provide the following: ▪ FISH! Service Philosophy ▪ A Safe Work Environment ▪ Cleanliness and Pride in our Facilities ▪ Employee Development Programs ▪ Resourceful Course Maintenance ▪ Financial Responsibility ▪ Professional Business Reporting ▪ Partners in Purchasing Page 16 of 44 Jackrabbit Run Golf Course Business Plan 2024 4 Executive Summary Jackrabbit Run Golf Course will realize ($47,696) before equipment lease payments are factored in. We plan on achieving the following objectives: • Increase rounds played by 5% (26,750 rounds) o Continue with the plan in place from 2023 for our events calendar. (Scrambles, couples golf nights, junior play, league growth). Looking to potentially add an “anytime” golf league to fill unused space on the tee-sheet as well as a couple’s league. o Continue to prioritize golf course conditions such as bunker edging, tree management, and daily maintenance practices to improve pace of play during peak playing times. Explore with golf associations the possibility of an event to fund an on-course project. o Marketing of targeted promotions to attract play during slow times of the week. (Implement a driving range/beverage special) o Implement Noteefy, which is a tee-time notification system to fill cancelled tee-times. • Achieve a Net Promoter Score of 65 o Use the Fish! Service Program training with all staff upon onboarding and rehiring. o Monitor our survey results that are collected weekly through SurveySparrow to ensure we are addressing any areas of concern from our customers. o Utilize secret shoppers to evaluate our performance in several sectors of our business as they relate to daily play, tournament recruitment and administration, service expectations, and golf course conditions. o Addition of the Jackrabbit Run App which will allow our customers to book tee-times, utilize GPS on course, visit our e-commerce store, online food & beverage ordering, event registration. • Implement 20% dues increase for annual passes o Communicate increase and explanation for our increase a minimum of 2 months prior to typical sign-up release date. o Note enhancements and improvements made to the facility. o Discuss current economic conditions, specifically minimum wage increase of 25% since pass rates were set for FY2023, as they relate to the price increase. o Cart pass holders will have the added Tagmarshal GPS capability. o Implement a loyalty program where members & customers earn 5% cash back on purchases in the Pro-Shop, that they can redeem for green fees. • Operate below a 42% COGS in Food and Beverage o Continue weekly inventory of all F&B products o Evaluate current product mix & order different products if costs warrant change The original equipment lease on prior budgets were a part of the capital expenditure listing and therefore did not impact overall cash flows. New equipment acquired in FY2023 and going forward will be a part of operating expenses due to accounting guidelines specific to municipalities and Landscapes Fleet Management as there is no formal lease agreement in place and no liability to Jackrabbit Run. Prior leases were capitalized based on GAAP Rules prior to the switch to ASC 842. If the original lease is renewed that payment would also go into the maintenance operating budget. These items are merely “rented” pieces of equipment but are required to operate the course whether in operations or below the EBITA. Page 17 of 44 Jackrabbit Run Golf Course Business Plan 2024 5 EXECUTIVE BUDGET SUMMARY Budget Summary Page 18 of 44 Jackrabbit Run Golf Course Business Plan 2024 6 Market Conditions With approximately 6,000 golfers within a 30-minute drive time and a stagnant total golfing household count, ensuring our service levels and golf course conditions are better than our competition is critical to our success. Page 19 of 44 Jackrabbit Run Golf Course Business Plan 2024 7 SWOT Analysis Strengths • Golf Course Conditions – Leading or equal to our public competitors, specifically Indianhead. • Leadership - Strong, service minded leaders at the property. • Food and Beverage offerings – Our menu has allowed our customers to enjoy food and drink not previous offered and not available at our main public competitor. • Renovated clubhouse and improved product displays throughout the facility • Reasonable price point for annual passes and daily golf fees • Large driving range and practice green to help consistent range related sales Weaknesses • We continue to try and educate the Grand Island and area residents about the recent changes at Jackrabbit Run which include a new service model, greater offerings, space for events, updated clubhouse and outdoor facilities and improved course conditions. • Small clubhouse capacity limits our availability to host outside events, both golf and food and beverage related. Opportunities • Enhancing our golf related offerings by the hiring of a PGA professional (Private and group lessons, club repair, etc.) • Growth of junior programming (PGA Junior League, golf camps) • Golf outing recruitment and revenue growth • Recruiting outside food and beverage events • Continue to leverage industry technology Threats • Limited and stagnant amount of golfing households in the area. • Average household income may make playing golf on a regular basis difficult. • Other area golf courses with improved conditions in comparison to golf course condition challenges presented in 2023. • Economic challenges and price increases on purchases. • Staffing-hiring to fill in during fall and spring months • Minimum wage increase along with the increases in the years to come. Page 20 of 44 Jackrabbit Run Golf Course Business Plan 2024 8 Golf Operations Objectives Golf Operations will generate $840,739 in revenue in FY2024. To achieve this goal, the department must meet the following objectives: • Increase merchandise sales by 7.5% o Continue to provide a good inventory mix through ordering different products through new vendors offering a lower purchase price point. o Continue to create new displays and regularly move product to new locations. o Take advantage of discount programs offered by LGM’s purchasing partners. • Grow Junior Golf Program to 45 participants (35 participants in 2023) o Social media content promoting the success of this year’s program. o Continue to offer a Junior Golf Camp, PGA Junior League, NJGT Events, High School practice and events. o Enhance the program with new, fun activities for the participants. • Obtain sponsorships for the newly acquired Tagmarshal GPS System o Calls to local businesses explaining our sponsorship program and the benefits sponsoring our events would provide their organization. Page 21 of 44 Jackrabbit Run Golf Course Business Plan 2024 9 Food & Beverage Objectives Food & Beverage Operations will generate in Net Operating Income in FY2024. To achieve this goal, the department must meet the following objectives: • Financial Performance o Monthly meetings with GM and Regional manager to discuss payroll in relation to revenue generated. o Completion of weekly profit and loss spreadsheet. Make timely adjustments based on reported metrics. • Inventory Management o Continue weekly inventory counts to minimize expired product and maximize cash flow. o Evaluate new product purchases to replace higher priced items. o Landscapes Golf Management is working on better purchasing power on key products. • Banquet Recruitment o Social media and email marketing to recruit grad parties and small community events. o Speak with the Chamber to schedule after hours events. • On-Course Sales o Utilize beverage carts on highly utilized days. o Train staff on upselling opportunities. o Utilize our Jackrabbit Run App to promote on-course ordering. • Upselling to Golf Outings o Review past food selections and upsell new options for replacement to maximize our profit margin. o Utilize high profit margin meal packages for new golf outing clients. Page 22 of 44 Jackrabbit Run Golf Course Business Plan 2024 10 Annual Pass Sales Objectives The Club will generate $112,098 in annual pass revenue in FY2024. To achieve this goal, the department must meet the following objectives: • Increase pricing to come in alignment with our key local competitors • Net Promoter Score goal of 65 o Monitor surveys and act according to mentioned areas of improvement. • Provide more value back to our pass holders o Addition of our Jackrabbit Run Golf Course App o Addition of the Tagmarshal GPS Program o Addition of our Loyalty Program Golf Course Maintenance Objectives The Club will achieve Survey Course Maintenance Score of 4.4 in FY2023 (Scale of 1-5). To achieve this goal, the department must meet the following objectives: • Department expense budget achievement o Consistently monitor payroll dollars and staffing levels to be in congruence with current needs. o Regularly financial meetings with the GM and Regional manager to discuss any variances in relation to budget. • Achieve course maintenance score of 4.4 (Scale of 1-5) o Regularly monitor SurveySparrow survey results to identify areas of concern and address them timely. o Take full advantage of new equipment efficiency and quality of cut. o Continue to monitor winter conditions and act appropriately to ensure a strong start to the season. • Agronomic Practices o Fall aerification of greens and tees. o Consistent chemical and fertilizer applications. o Utilize vendor purchasing partners and trusted vendors for high quality products that positively impact our playing conditions. • Tree Management o Both in-house and outsourced work to be completed to remove dead trees and stumps from storm damage and pine wilt. o Timely replacement of trees that outline or define doglegs and aesthetic appearance of any relevant hole. • Work with Golf Associations to help fund key course projects o Host an annual event where the proceeds are designated to an improvement project. Page 23 of 44 Jackrabbit Run Golf Course Business Plan 2024 11 Capital Expense Plan Page 24 of 44 Jackrabbit Run Golf Course Business Plan 2024 12 2024 Marketing Objectives Revenue Goals The Club will achieve the following goals in 2024: • Goal #1 - Memberships o We will grow membership revenue by a net of 7.5%. In addition we will add member benefits. • Goal #2 – Junior Golf o We will grow our Junior Golf Program by 10 new individuals. • Goal #3 – Banquets o We will have 3 banquets specific to food and beverage that will bring in $3,000 in revenue. • Goal #4 – Tee Time Revenue o We will have 26,750 rounds that will bring in $710,264 revenue. Lead Generation Steps The Club has a marketing budget of $17,925 in 2024. To maximize this expense, the department must meet the following objectives: • Google Ads o Approximately a $100 per month expense or no more than $2,000 annually. o Ads bring searches such as “Grand Island Golf Courses” bring Jackrabbit to the top of the search result listing. • Facebook Ads o $2,000 in total annual expense. o These advertisements will be in conjunction with any event upcoming such as Jackrabbit Run Scrambles, Couples Nights, • Print/Other Ads o $2,000 spent on print ads for the fiscal year. o Our print related marketing focus will be on a membership packet mailed to area homes with total household income above $100,000. Page 25 of 44 Jackrabbit Run Golf Course Business Plan 2024 13 Competitive Analysis Competitive Analysis-2024 Rates Competitor Distance (Miles) Weekday 18 Hole w/Cart Weekend 18 Hole w/Cart Notes Course Name Indianhead 6.6 miles $50.00 $55.00 Very similar facility and price point offering 18 holes of public golf, annual passes, range, golf outings, and food and beverage events. Centura Hills 18 miles $55.00 $65.00 High quality golf course near Cairo with a driving range. They have a small clubhouse similar to ours. Riverside Country Club 6 miles Private Private High quality private club with 18 holes, large practice area, new clubhouse and banquet space, and swimming pool. Jackrabbit Run 0 Proposed 2024 $47.20 Pre-tax Proposed 2024 $52.09 Pre-tax Our proposed rates for 2024 are lower than the competitors’ rates for 2023. Page 26 of 44 Jackrabbit Run Golf Course Business Plan 2024 14 Proposed Rates Page 27 of 44 Jackrabbit Run Golf Course Business Plan 2023 Range $ - Adult Annual Range Pass* 150.00 225.0 $235.00 Family Range Pass (In Household) 200.00 300.0 $315.00 Youth Range Pass (18 & Under) 100.00 150.0 $160.00 *Discount for Season Passholder 10% 10% 9 holes, per rider 9.00 10.00 10.00 10.50 11.00 11.00 11.50 11.50 12.00 $ 13.00 18 holes, per rider 15.00 15.00 15.50 16.00 16.00 16.50 16.50 17.00 $ 18.00 Golf Cart Punch Cards - 9 holes 125.00 125.00 130.00 135.00 135.00 140.00 140.00 175.00 $185.00 (increase punches from 17 to 20) 2022 Only Expires 12/31/2022 Golf Cart Punch Cards - 18 holes 195.00 195.00 203.00 211.00 211.00 220.00 220.00 275.00 $295.00 (increase punches from 17 to 20) 2022 Only Expires 12/31/2022 Ages 15 and under with paying adult No No No No No 5.00 $ 5.00 $ - Golf Outings* $ - Outing Weekday Fee - Includes Golf & Cart 34.00 37.00 $ 39.00 Outing Weekend Fee - Includes Golf & Cart 39.00 42.00 $ 44.00 *Discounts may be offered for non-peak hours or group size $ - 15 Page 28 of 44 AGENDA MEMO To: The Mayor and City Council Agenda: City Council Study Session (Budget) Date: August 22, 2023 Item #: 6.c. Subject: Parks & Recreation Budget Presentation - Capital Improvements & Equipment Staff Contact: Todd McCoy BACKGROUND: Each year, the Parks and Recreation Department submits a proposed budget as part of the larger City budgeting process. The Parks and Recreation Department’s budget includes three major categories of expense. Those expense categories are: personnel, operations, and capital. The Parks and Recreation Department is not requesting additional FTE’s this year. The Parks and Recreation Department's proposed budget also includes projected revenue for the coming year. Most revenue sources are derived from facility user fees. The annual budget presentation allows City Council members and the Mayor to provide feedback and to help give strategic direction to Parks and Recreation Department. DISCUSSION: The Grand Island Parks and Recreation Department (GIPR) will present to the Council and Mayor Steele the highlights of the proposed FY 2024 budget. Personnel Services are projected to increase 7.53%. Operating expenses are proposed to increase by 4.80%. Major operating increases forecasted are: fuel, repair costs, chemicals, irrigation supplies, and delivery costs. Many of the increases are directly related to rising costs and increased demand of park services. The final budget category for discussion is “Capital Projects/Capital Equipment”. The requests included in the budget include George Park Irrigation and Field Renovation ($300,000), Island Oasis Renovation Design ($250,000), Skate Park Public Outreach & Conceptual Design ($25,000), Parks and Recreation Master Planning ($300,000), Ryder Park Parking Lot Improvement ($950,00), Ryder Park Restroom ($300,000), George Park Restroom ($300,000), Stolley Park Roads and Parking Upgrade ($351,538), Ryder Park Shelters ($65,000), Sterling Park Backstop ($10,000), Trail Development ($75,000), Stolley Park Irrigation ($95,100), Park Project Contingency ($100,000), Parks ABI Infield Machine ($60,000) 11’ Parks Cut Mower ($98,000), Cemetery Fertilizer and Sprayer/Spreader ($26,000). Capital equipment carryover items previously approved in the prior FY include: Parks ½ Page 29 of 44 Ton 2 Wheel Drive Pickup ($58,000), Parks ¾ Ton 4 Wheel Drive Pickup ($40,000), Parks 11’ Cut Mower ($92,478.61), and Parks Bucket Lift Truck ($155,669). FISCAL IMPACT: ALTERNATIVES: RECOMMENDATION: SAMPLE MOTION: ATTACHMENTS: 1. Budget Presentation 2024 Page 30 of 44 Page 31 of 44 Page 32 of 44 Page 33 of 44 Page 34 of 44 Page 35 of 44 Page 36 of 44 Page 37 of 44 Page 38 of 44 Page 39 of 44 AGENDA MEMO To: The Mayor and City Council Agenda: City Council Study Session (Budget) Date: August 22, 2023 Item #: 6.d. Subject: Final Review of FY24 Budget Staff Contact: Patrick (Pat) Brown BACKGROUND: DISCUSSION: FISCAL IMPACT: ALTERNATIVES: RECOMMENDATION: SAMPLE MOTION: ATTACHMENTS: 1. Budget Presentation Page 40 of 44 Overview of General Fund: Since the pandemic, the City has tempered their forecast of revenues due to the uncertainty of the health crisis and the economy. The health crisis is waning, but it is still a variable we will consider in forecasting revenues. Starting in fiscal year (FY) 2024, we have based our revenue forecast more on financial data (actual revenues the last four years, economist trends, and the health of the local economy) and have not subtracted non-financial estimates. Most of the City’s (General Fund) revenue sources have steadily increased over the last four years. The FY24 revenue forecast reflects that growth. As you can see below, the Administration has produced a fiscally responsible and sustainable FY24 budget for the citizens of Grand Island. The previously authorized expenditures of $3,650,000 for Conestoga Marketplace and Camp Augustine will be paid out of cash reserves in FY24. After deduction of those one-time expenditures, the General Fund Revenues in FY24 exceed General Fund Expenses by $453k. Over the next five budget years, we project a healthy reserve fund balance for the General Fund. General Fund Revenues: City’s Sales Tax collection history: GENERAL FUND REVENUES FY22 Actual FY23 Budget 2023 Forecast 2024 Proposed ENVIRONMENT & LEISURE 1,697,279$ 1,720,819$ 1,727,319$ 1,790,774$ GENERAL GOVERNMENT 1,824,382$ 1,822,000$ 1,822,000$ 1,908,000$ NON-DEPARTMENTAL 40,488,118$ 36,353,018$ 39,682,665$ 43,593,704$ PUBLIC SAFETY 5,144,593$ 5,360,652$ 5,415,733$ 5,247,865$ PUBLIC WORKS 743,214$ 799,000$ 665,200$ 684,500$ GF TOTAL REVENUES 49,897,588$ 46,055,489$ 49,312,917$ 53,224,843$ Month % Change from Prior Year 2022-2023 2021-2022 2020-2021 October (August Sales)11.8%$1,462,922 $1,307,984 $1,057,781 November (September Sales)14.1%$1,530,517 $1,341,021 $1,174,042 December (October Sales)3.8%$1,433,866 $1,380,769 $1,149,438 January (November Sales)3.9%$1,423,046 $1,370,069 $1,078,953 February (December Sales)3.9%$1,639,752 $1,577,564 $1,355,388 March (January Sales)-0.4%$1,276,636 $1,281,894 $1,037,466 April (February Sales)3.2%$1,277,035 $1,237,015 $1,001,105 May (March Sales)2.4%$1,448,496 $1,414,451 $1,321,216 June (April Sales)1.1%$1,399,338 $1,383,994 $1,304,190 July (May Sales)12.7%$1,479,691 $1,312,894 $1,295,614 August (June Sales)1.6%$1,516,258 $1,492,461 $1,359,265 September (July Sales) Estimated 3.0%$1,510,726 $1,466,724 $1,325,502 Total 5.0%$17,398,283 $16,566,840 $14,459,959 Budget $15,294,386 $13,631,648 12,500,000$ % of Budget 113.8%121.5%115.7% 2004 Sales Tax 3,751,511 $3,313,368 $2,636,107 2018 Sales Tax 7,503,023 $6,626,736 $5,272,215 Total Sales Tax Collected and Forecast $28,652,817 $26,506,944 $22,368,281 Page 41 of 44 The FY24 budget reflects the addition of 11 FTE’s and the reclassification of 6 positions. Of this total, five additional FTE’s and four reclassifications is in the General Fund. Attached is a list of Personnel Changes. Personnel Expense for additions and reclassifications of General Fund FTE’s*: *These costs reflect salaries and all benefits associated with the position. Total Personnel Services for the General Fund: Total General Fund Operating Expenses and Transfers Out: Total General Fund Expenses: Department Position Fund FY2024 FTE Request Cost 2025 Additional Cost (5% increase) 2026 Additional Cost (4% Increase) 2027 Additional Cost (3% increase) 2028 Additional Cost (3% increase) Admin & Fin Cost Share Assistant City Administrator General Fund 251,598$ 12,580$ 10,567$ 8,242$ 8,490$ Legal Paralegal (Full Time)General Fund 37,005$ 1,850$ 1,554$ 1,212$ 1,249$ Admin Communications Manager General Fund 118,962$ 5,948$ 4,996$ 3,897$ 4,014$ Fire Captain General Fund 85,864$ 4,293$ 3,606$ 2,813$ 2,897$ Police Lieutenant (1 of 2)General Fund 137,987$ 6,899$ 5,795$ 4,520$ 4,656$ Police Lieutenant (2 of 2)General Fund 137,987$ 6,899$ 5,795$ 4,520$ 4,656$ Police Sergeant General Fund 122,932$ 6,147$ 5,163$ 4,027$ 4,148$ Human Resource Recruiter General Fund 92,729$ 4,636$ 3,895$ 3,038$ 3,129$ Police Records Clerk to Records Supervisor General Fund 110,207$ 5,510$ 4,629$ 3,610$ 3,719$ Police Subtract Records Clerk General Fund (86,954)$ -$ -$ Community Development Bldg Director to Chief Building Official General Fund 132,111$ 6,606$ 5,549$ 4,328$ 4,458$ Community Development Subtract Building Director General Fund (156,487)$ (4,695)$ (4,835)$ Emergency Mgmt Dispatcher (1)GF / County 40,000$ 2,000$ 1,640$ 1,309$ 1,348$ 1,023,941$ 63,369$ 53,190$ 36,824$ 37,928$ GENERAL FUND PERSONNEL SVCS FY22 Actual FY23 Budget 2023 Forecast 2024 Proposed ENVIRONMENT & LEISURE 4,707,815$ 5,591,047$ 5,591,461$ 5,780,902$ GENERAL GOVERNMENT 3,853,099$ 4,559,113$ 4,472,842$ 5,204,248$ PUBLIC SAFETY 21,844,615$ 24,986,569$ 25,312,597$ 27,398,191$ PUBLIC WORKS 958,957$ 1,131,510$ 875,970$ 1,337,570$ TOTAL PERSONNEL SVCS 31,364,486$ 36,268,239$ 36,252,870$ 39,720,910$ GENERAL FUND OPERATING EXP & TRANSFER OUTS FY22 Actual FY23 Budget 2023 Forecast 2024 Proposed ENVIRONMENT & LEISURE 2,012,737$ 2,250,299$ 2,444,611$ 2,482,540$ GENERAL GOVERNMENT 492,905$ 805,390$ 800,580$ 917,401$ NON-DEPARTMENTAL 7,889,591$ 9,591,335$ 6,758,634$ 9,821,191$ PUBLIC SAFETY 2,144,520$ 2,421,293$ 2,480,527$ 3,198,156$ PUBLIC WORKS 250,029$ 274,700$ 270,700$ 281,950$ GRAND TOTAL 12,789,782$ 15,343,018$ 12,755,052$ 16,701,238$ GENERAL FUND TOTAL FY22 Actual FY23 Budget 2023 Forecast 2024 Proposed ENVIRONMENT & LEISURE 6,720,552$ 7,841,346$ 8,036,072$ 8,263,442$ GENERAL GOVERNMENT 4,346,005$ 5,364,503$ 5,273,422$ 6,121,648$ NON-DEPARTMENTAL 7,889,591$ 9,591,335$ 6,758,634$ 9,821,191$ PUBLIC SAFETY 23,989,134$ 27,407,862$ 27,793,124$ 30,596,347$ PUBLIC WORKS 1,208,985$ 1,406,210$ 1,146,670$ 1,619,520$ GRAND TOTAL 44,154,268$ 51,611,256$ 49,007,922$ 56,422,148$ Page 42 of 44 City of Grand Island | Budget Book 2024 Page 4 Page 43 of 44 City of Grand Island | Budget Book 2024 Page 5 Page 44 of 44