1 City of Burlington Budget Work Session May 1, 2006

2 Objective  Review preliminary budget recommendations  Address questions and issues  Formulate a final budget proposal to be presented to the City Council June 6, 2006

3 Process  Year long effort involving City Council, management, and supervisory staff  Not an overly complicated process  Recognizing Needs  Projecting revenues  Establishing priorities  Difficult decisions  Unlimited needs and very limited resources

4 Budget Process  Management team was told of limitations for the budget  No new staff  Capital request to follow capital improvement plan first, and secondly to be prioritized on need basis  Adjustment to line items only based on inflationary factors, which could not be otherwise managed

5 Water and Sewer  Water and Sewer repair and construction  Water and Sewer plants and facilities  Water source protection  Laboratories  Composting

6 Challenging Issues  Reduction of Industrial consumption  Increase in consumption by residential customers  Unfunded state and federal environmental mandates  Increase energy costs  Health Insurance  Aging Infrastructure

7 Maintenance and Enhancement of Infrastructure  Water and Sewer system aging  Replacement and plant updates should be completed annually  50% or $2,000,000 of the projected $4,000,000 of depreciation of our system has been reserved for system improvements

8 Revenues  1.5 million in water revenues from Greensboro

9 Preliminary Budget Recommendation  2006 – 2007 $21,659,782  0% increase in water rates  Proposed 5% increase in sewer rates  Average residential customer – increase (range of.91 to $1.00 per month)  Municipal rates 105% inside City rate

10 General Fund General Fund  Police  Fire  Recreation and Parks  Public Works  General Administration  Legal  HR/Health Services  Information Technology  Finance  Engineering/Traffic Control  Planning/Inspections

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12  Increase in energy costs  Maintenance and Enhancement of Infrastructure  Employee compensation package to compete in the marketplace  Health Insurance  Staffing Levels Challenging Issues Challenging Issues

13 Utilities  Rising cost of Utilities has and will continue to have a large impact on operations  Projections are a $340,000 increase in cost of fuel, diesel, natural gas, and electricity

14 Energy Increases in the past year  Natural Gas prices  2005 = $3.00  Feb. of 2006 = $8.00  166 % increase  Gasoline prices  2005 = $1.198  2006 = $2.35  96 % increase

15 Maintenance and Enhancement of Infrastructure  Community approved a 9.3 million dollar bond package  Three-year project  30 miles of streets being repaired this year  Additional work next two years  Additional debt service to fund this bond translates into a 2.77 cent tax increase for the 20 year life of this borrowing

16 Employee Compensation Package to Compete in Marketplace Employee Compensation Package to Compete in Marketplace  Importance of attracting, retaining and rewarding excellent employees is critical in providing the desired level of services  Budget reflects enhancements of salaries to sworn police officers, firefighters, telecommunicators and Utility staff at mid-year  An average of a 4% increase in salary is recommended for each of these departments

17 Health Insurance  Pressure to manage trends in plans and maximize containment of large claims while providing an open plan with benefit options

18 Health Insurance  Integrated disease management  Proactive identification of disease states and programs to assume treatment compliance  Integration of claims data and professional staff at carrier and City levels for shared information  Predictive models based on emerging claims data

19 Health Insurance  Member central focus on health and wellness  Incentive to employees for health awareness and fitness  Employee choice benefits  Open plan network

20 Staffing Levels  Proposed budget includes only two areas for staffing changes  Two previously funded RICO positions in the Police Department ($74,537)  Quite important for our drug interdiction efforts  Two meter readers in Water and Sewer ($42,214)  This would allow City to go to monthly billing in January of 2007.

21 Staffing Numbers Modest  Recreation and Parks eliminated 4 positions  Cemetery and Grounds reduced workforce by four  Police has transferred positions from Administration to street rotation  Development and Technical Review area are cross-training  Human Resources gave up administrative position to hire Safety Director

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23 Highlights: Internal Services  Finance and Risk Management  No capital increase  Implementation of City’s software system  Implementation of City’s Health Plan  Information Technology  No major increase in cost  Coordinate the implementation of the City’s new software system

24 Internal Services  Human Resources  No Capital  Increase Services  Transfer Assistant HR position to Safety Director to assist organization with OSHA compliance guidelines and identify workplace/worker hazards  Increase funding in Occupational Health with goal of coordinating disease management, wellness, and workers compensations programs to better manage these issues  Significant increase in use of present Occupational Health program by employees

25 Internal Services  Administrative Services  Administration  Public Information  Collections Division  Customer Service and Utility Billing Division  Increased Services

26 Administrative Services  Billing and Collection of property taxes and utilities in excess of 37 million  Significant increase in customer service inquiries in both web, phone, and in-person  Improved communications with citizens through utility bill inserts  Implementation of Burlington Government Academy  Maintain all City records

27 Highlights: Developmental and Technological Review Services  Engineering  Planning  Building Inspections  Traffic Signal

28 Contracted Inspections Services  Increased Services  Highest permit activity for both residential and non- residential building in history of the City  Plan review activity will continue at record pace for engineering, planners, building inspectors, and traffic control staff  Large Projects  New elementary school  LabCorp  Alamance Crossing  Mackintosh at the Lake  Ethan Pointe  Auburn Trace

29 Highlights: Public Works  Street Bond implementation  On-going maintenance to streets  30 miles of paving this season  Replacement of Garbage Truck  Replacement of Dump Truck  Cab and Chasse for Leaf Truck  Replacement of Limb Truck

30 Public Works Services  Sanitation Division  Continuing increase in solid waste and yard waste collection  23 employees providing solid waste service to 16,500 accounts  Provide bulk waste, bulk limb, and white goods pickup  Street Division  Administer Street Bond Package  21 employees maintaining 220 miles of streets and 70 miles of sidewalks

31 Public Works Services  Traffic Sign  3 employees  Maintains 32,000 signs and miles of street pavement markings  Equipment Services  14 employees  Maintains over 800 pieces of equipment/vehicles  Building Maintenance  10 employees  Maintains over 120 City owned buildings and structures

32 Public Works Services  Cemetery and Grounds  Staff reduced from 16 to 12 full-time  4 part-time staff members  Stormwater  1 staff person  Implements City’s stormwater system

33 Highlights: Recreation  Maintenance upgrades at Recreation Centers  Decrease in staffing positions over the past 3 years

34 Recreation: Increased Services  Youth baseball and softball participation up 18%  Adult softball participation up 21%  Youth Lacrosse offered for first time with over 125 participants  Over 4,000 participants in youth athletics programs  Over 3,500 participants in senior activities coordinated through the Kernodle Center  Implementation of Haw River Trail System

35 Highlights: Fire  Adjustment in Pay Plan  $146,000  Replaced plumbing and resurfaced floor at Station # 2  Generator at Station # 3

36 Increased Activity  EMS calls up 11.5%  Plan Reviews up 33%  132 Manpower hours  Construction related inspections up 67 or 50%  85 Manpower hours  General inspections up 3.8%  70 Manpower hours

37 Highlights: Police  Vehicle Replacement Plan  7 vehicles marked  3 unmarked vehicles  Animal Control van  Two RICO positions  Cost: $74,537  Cash seized: $100,000  Adjustment for Pay scale  $207,000 for sworn officers and telecommunicators

38 Increased Activity  Overall Crime Rate up 10% primarily  Kidnapping offenses up by 24  Felonious Assaults up by 78  Fraud complaints up by 131  Larceny complaints up by 221  Damaged Property complaints up by 280

39 Additional Crimes  Adult and Juvenile Case Assignments up by 26% (2,417 –3,046)  Actual arrests increased by 3%  Cocaine seizures up from 21 kilos to 62 kilos or 195%  Marijuana seizures up from 30 lbs to 2,208 lbs  Significant increased presence of street gangs  Known from 6-12

40 Preliminary Budget Recommendations  $44,250,643  Projected tax rate 62.5 cents per $100 valuation

41 Projected Revenue Source Increases  Ad Valorem Tax  Interest on Investments  Powell Bill Funds  Sales Tax  Franchise & Excise Taxes  General Fees

42 Comparison of Various Tax Statistics for Selected Cities

43 General Fund  Appropriated Fund Balance 05 – 06 $2,700,000  Projected 06 – 07 $1,636,986

44 Summary