Overview and Discussion Proposed Budget Fiscal Year-End June 30, 2016

WATER FUND  The Water Fund accounts for the cost of providing water service to the community. The accounting and budgeting for this fund is very similar to the private sector. Operations are financed with user fees and charges for service.

WATER FUND  FY2016 revenues are budgeted at $5,003,622 or 8.68% lower than FY2015 amended budget.  Taking out depreciation FY16 expenditures decreased $291,409 or 5.16%. Note, the FY 16 budget does not include any dollars for water main replacements.

WATER FUND  The Capital portion of the Water Fund related to impact fee revenue was split out in to its own fund (Fund 61).  This revenue is restricted for “new” water main lines and construction. The Water Fund (60) still includes all other capital costs.

WATER FUND  At the end of FY 16 cash and cash equivalents within the Water Fund are projected to be $3,198,614.  Subtracting 25% of the annual budgeted expenditures for operational costs leaves $1,859,781 to cover costs related to capital and infrastructure.

WATER FUND BUDGET ASSUMPTIONS SALARIES  AFSCME Union Contract cost of $12,468. This contract has been ratified.  Non-Bargaining Unit Employees cost of $18,204. This incorporates the changes approved through the pay and comp study pertaining to the conversion to the 40 hour work week. It also assumes the economic adjustment being pushed back from July 1, 2015 to January 1, 2016.

WATER FUND BUDGET ASSUMPTIONS STAFFING  Filling the IT Director position and HR Director Position. (25% and 10% of salary correspondingly hits the water fund directly.)  Hiring new full-time Water Division employee.

WATER FUND BUDGET ASSUMPTIONS NEW REQUESTS  Outsourcing Water Bill Printing. Annual cost = $40,000, however a savings will be captured by eliminating our annual maintenance costs and copy costs from our Water Bill printer as well as the savings of staff time. Net cost to the Water Fund will be less than $10,000 a year.  Purchasing a new Backhoe and Hammer Drill $146,000.

WATER FUND BUDGET ASSUMPTIONS NEW REQUESTS  New Financial Software. ($80,000 in the Water Fund the remaining $170,000 will come out of Capital)  New GPS Device to replace old. $5,000  Decreased transfer in from Water ($702,518) to the EPI Payment in Lieu of Taxes (PILOT) calculation ($258,965). Directly hit water fund with salaries = $560,929.

AIRPORT FUND  The Airport Fund accounts for the cost of providing services at the airport. The accounting and budgeting for this fund is very similar to the private sector. Operations are primarily financed with hangar rental charges.

AIRPORT FUND  FY2016 revenues are budgeted at $2,121,685 or 34.05% lower than FY2015 amended budget.  Of this $1,095,545, 66.67% can be attributed to including zero dollars being transferred from the General Fund.  The large transfer last year from the General Fund was due the payment of a large final balloon payment for the 2005 GO Bond Issuance.

AIRPORT FUND  FY16 budgeted expenditures are $2,328,001 or 30.58% lower than FY 15 amended budget.  Again a large portion of this decrease is due to debt principal payments dropping from $630,000 in FY 15 to $75,650 in FY16.

AIRPORT FUND  At the end of FY 16 cash and cash equivalents will drop down to $145. This is well below the City’s fund balance policy.  Staff will be reviewing current fees being charged at the Airport over the course of the next 6-months.

AIRPORT FUND BUDGET ASSUMPTIONS SALARIES  Non-Bargaining Unit Employees cost of $39,071. This incorporates the changes approved through the pay and comp study pertaining to the conversion to the 40 hour work week. It also assumes the economic adjustment being pushed back from July 1, 2015 to January 1, 2016.

AIRPORT FUND BUDGET ASSUMPTIONS NEW REQUESTS  12,000 gal. Diesel Fuel Tank Cleaning & Testing, $7,000  Infrared Heater Replacement, $7,600  Security Gate Operator, $7,500  Seal Coat Airport Maintenance Parking Lot, $4,000