City of Twin Falls

City of Twin Falls City Manager’s FY 2020 Recommended Budget The City of Twin Falls fiscal year begins on October 1, 2019, and ends on September 30, 2020 (FY 2020). The budget is submitted in accordance with Government Finance Officers’ Association (GFOA) best practices and the requirements expressed in the Idaho Code pertaining to municipal corporation and budgets. Idaho Code Section 50-811 states the City Manager shall “...keep the council fully advised of the financial condition of the city and its future needs...” and “…prepare and submit to the council a tentative budget for the next fiscal year.”

City of Twin Falls City Manager’s FY 2020 Recommended Budget

City of Twin Falls City Manager’s FY 2020 Recommended Budget The Recommended Budget: directly linked to the City of Twin Falls’ 2030 Strategic Plan maintains and enhances service levels designed to protect our citizen’s health, safety, accessibility and wellbeing funds projects and initiatives designed to enhance our citizen’s quality of life continues our reputation for being a strong, fiscally-sound municipal government. Most importantly, is sustainable, thoughtful and proactive.

City of Twin Falls City Manager’s FY 2020 Recommended Budget A population of 49,764 residents, the eighth largest city in Idaho, based on July 2018 US Census estimates. The city serves as the retail, educational, medical and employment center for this eight county area that has a total population of over 260,000 causing the City to growth to a estimated daytime population of 85,000 to 90,000. On weekends when the City is hosting large events, the daytime population can swell to more than 100,000+. Median household income is $46,284 and the median home value is $205,200. Unemployment rate is 2.4%. The Hispanic population has increased to 16.1% and the median age is 32.7 years.

Mission Guiding Principles Accessible Community Secure Community Vision Healthy Community Learning Community Secure Community Accessible Community Environmental Community Prosperous Community Responsible Community Internal Organization

City of Twin Falls City Manager’s FY 2020 Recommended Budget FY 2019 Adopted Budget FY 2020 Recommended Total Taxable Value $2,895,692,554 $3,224,858,701 Total Net Expenses $65,175,529 $67,806,508 Tax Supported Funds $39,727,362 $43,058,774 Non-Tax Supported $25,448,167 $24,747,735 Taxes per $1,000 in Value $7.50/$1,000 $7.12/$1,000 The City’s taxable value excludes the taxable value of the properties located in the Twin Falls Urban Renewal Agency revenue allocation areas, which have a total value of $561,553,248. Collectively, the taxable values for both the City of Twin Falls and Twin Falls Urban Renewal Agency total $3,786,411,949. The e City of Twin Falls’ taxable value in FY 2012 was $2.315 Billion.

City of Twin Falls City Manager’s FY 2020 Recommended Budget the City of Twin Falls’ overall preliminary total taxable valuation is expected to increase by $329,166,147, or 11.37%, This growth is on top of the $211,938,217 that was realized in the prior fiscal year.

City of Twin Falls City Manager’s FY 2020 Recommended Budget

City of Twin Falls City Manager’s FY 2020 Recommended Budget From 2006 to 2017, the maximum exemption has been indexed and adjusted annually to reflect statewide real property market trends. During the 2016 session, the Idaho Legislature increased the exemption to a fixed $100,000 for 2017 (FY 2018 Budget), which will remain in place until the legislature amends this code.

City of Twin Falls City Manager’s FY 2020 Recommended Budget The median home value in Twin Falls is $205,200. Twin Falls home values have gone up 12.3% over the past year and are predicted to rise an additional 8.9% within the next year. The median list price per square foot in Twin Falls is $140. The median price of homes currently listed in Twin Falls is $245,000. - Zillow

City of Twin Falls City Manager’s FY 2020 Recommended Budget Total Taxes 2018 Median Property Value FY 2019 TR Lewiston $1,067.68 $209,000 0.0097952 Coeur d'Alene $914.06 $284,000 0.0049677 Idaho Falls $872.11 $182,000 0.0095836 Pocatello $822.72 $144,000 0.0114267 Caldwell $762.19 $185,000 0.0082398 Nampa $715.45 $196,000 0.0073005 Twin Falls $682.85 0.0075039 The table and graph represent the amount of property tax paid on a median-valued, owner-occupied home in each of the larger, full-service cities in Idaho. The information used in the table was collected from the Associated Taxpayers of Idaho’s 2018 Levy Book (tax rate) and Zillow. Note: Idaho’s median value of an owner occupied home for this same period of time was $266,400.

City of Twin Falls City Manager’s FY 2020 Recommended Budget The cities serviced by the Ada County Highway District (Boise & Meridian) were intentionally excluded because they are not directly responsible for the transportation systems in their communities. For FY 2020, the Street Fund budget for the City of Twin Falls is $5,874,240, or approximately 13% of the total tax supported funds.

City of Twin Falls City Manager’s FY 2020 Recommended Budget The New Construction and Annexation Roll reflects growth in the taxable value that is associated with new development or lands that were incorporated into the City through annexation over the course of the prior fiscal year.  For FY 2020, the City of Twin Falls’ New Construction and Annexation Roll is $75,841,520, which will yield an additional $569,105 in property tax revenue.

City of Twin Falls City Manager’s FY 2020 Recommended Budget As of May 2019, the number of single-family building permits is up 38% from FY 2018 (with four months remaining this fiscal year). The City has not issued this many single-family building permits since 2006. FY 2019 building permit revenue thru May is on track for the budgeted amount. The FY 2020 proposed budget decreases $75,000 compared to FY 2019, primarily due to changes within the City’s Area of Impact.

Preview of FY 2020 Budget - Overview: City of Twin Falls City Manager’s FY 2020 Recommended Budget Preview of FY 2020 Budget - Overview: FY 2020 Net Budget, which excludes transfers, is $67,806,508, or $2,630,979 more (4.04%) than the budget adopted for FY 2019, which was $65,175,529. The FY 2020 calls for the use of $2.613 M in cash reserves from all funds to support one-time capital improvement projects. The most significant include: $1.5 M in Public Safety/Dispatch CAD system $157,000 for fiber to the airport $235,000 for terminal rehab project (front) and ARFF sleeping quarters $176,320 for parking lot repairs and ADA access at Dierkes Lake/Shoshone Falls

Preview of FY 2020 Budget - Overview: City of Twin Falls City Manager’s FY 2020 Recommended Budget Preview of FY 2020 Budget - Overview: Limit Tax Collections to statutory allowed 3%, which will generate $661,050 in new tax revenue. Total property tax collections will equal $23.3 M. New Construction value is $69.771 M, which is $17.1 M larger than last FY and will generate $523,559 in new revenue ($132,299 more than what was generated last FY). Keeps the entirety of the $1,416,284 foregone balance intact. Limits rate Increases to: 1% Water, 1% Sewer and 4.9% Sanitation*

City of Twin Falls City Manager’s FY 2020 Recommended Budget As reflected, municipal governments also devote a large amount of their resources to personnel, the significant investment in infrastructure drives the percentage of the budget devoted to operating and capital costs higher than most other government agencies.

City of Twin Falls City Manager’s FY 2020 Recommended Budget When analyzing General Fund expenses by category, Personnel costs are a much higher percentage than compared to all funds as a whole. More than 65% of all employee costs are in the general fund, police, fire, general administration, and parks and recreation. The General Fund supports very little capital improvement when compared to all funds as a whole.

Preview of FY 2020 Budget - Overview: City of Twin Falls City Manager’s FY 2020 Recommended Budget Preview of FY 2020 Budget - Overview: Funds operational and maintenance expenses of the City, totaling $17.981 M (2.35% increase) Makes capital investments totaling $12.855 M for vehicles and equipment replacement, roads and sidewalks improvements, trails and park enhancements, and improvements to water and sewer systems. Continues opportunity to evaluate and possibly modify service delivery levels and methods through performance management/measurement system.

Personnel City of Twin Falls City Manager’s FY 2020 Recommended Budget Total personnel cost will increase by $1,653,487 to $30,736,807, or 5.69%. Other expenditures associated with personnel in the FY 2020 Recommended Budget: Provides for a performance-based adjustment of 3% for all employees and moves the City’s compensation table 3%. Increased funding for health insurance (5%)

Personnel City of Twin Falls City Manager’s FY 2020 Recommended Budget Initial health insurance increase was 14%, an amount too large to fund in FY 2020 by simple renewal. As a result, we made plan changes for FY 2020. Employees will see modest increases to co-pays, deductibles, and out of pocket maximums, and we added a prescription deductible to the traditional plan. We reduced the insurance premium cost increase to approximately 5%.

City of Twin Falls City Manager’s FY 2020 Recommended Budget Funding Fiscal Year 2020 Adjustments Position Full Time Equivalent Revenue Adjustment City Attorney 1.0 Elimination of legal contract Fire Fighter 5.0 Revenue from federal grant Utility Services Representative .25 Saving realized through retirement Lifeguard Adjustment between funds

City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 NEW FTE Requests – Funded Position Full Time Equivalent Fully Burdened Cost Airport Operations/Security Coordinator 1.0 $78,279 GIS Technician (3/4 to full time) 0.25 $11,466

City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 NEW FTE Requests – Unfunded FTE Fully Burdened Cost Fire Fighter 2.0 $148,319 Deputy Fire Chief 1.0 $131,767 911 Communications Assistant Manager $97,603 Traffic Technician $84,636 Facility Maintenance Technician $75,836 Patrol Officer (SRO replacement) $69,419 Operator – Parks $68,363 Police Records Clerk $66,938 Wellness and Safety Coordinator 0.5 $41,917 Custodian $23,989 Property and Evidence Supervisor (position upgrade) $12,798

Fiscal Year 2020 Capital Requests - Highlights City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Capital Requests - Highlights Healthy Community Shoshone Falls/Dierkes Lake – Planning/Engineering for Access Road Redesign - $300,000 (Council Capital Project) Parking Lot, ADA Access - $300,000 Cascade Park and Preserve Trailhead enhancements - $225,000 Secure Community Public Safety Computer-Aided Dispatch/Records Management Software - $1,500,000 Replacement Patrol vehicles - $130,000 Crime van and equipment - $159,000

Fiscal Year 2020 Capital Requests - Highlights City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Capital Requests - Highlights Accessible Community Zone 8 Seal Coating - $1,032,722 Maintenance and miscellaneous overlay projects - $543,100 Locust Street reconstruction - $984,000 Sidewalk Program Construction projects - $207,095 Streets/Council Capital projects - $250,000 Matching grant program - $50,000 Trail Maintenance (fencing, asphalt and repair) - $30,000

Fiscal Year 2020 Capital Requests - Highlights City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Capital Requests - Highlights Environmental Community Mainline & Meter Replacement (water) - $582,615 Hankins Pressure Zone Expansion (water) - $400,000 Well #5 piping (water) - $300,000 Mainline upgrades (wastewater) - $200,000 CCTV Van and Camera (wastewater) - $215,000

Fiscal Year 2020 Capital Requests - Highlights City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Capital Requests - Highlights Responsible Community Water Master Plan Addendum - $150,000 National Citizen Survey - $20,000 Park Planning Facility Master Plans - $15,000 Parks Standards and Specifications (update) - $15,000

City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Enterprise Funds Enterprise Funds account for services financed through the assessment of user-fees. The main goal or purpose of these business-like funds is to provide services to customers at a price that will cover both the current cost of operations and the purchase and maintenance of necessary capital assets. Enterprise Fund may not be co-mingled with any other fund or spent for any purpose other than the one it has been collected or reserved for without direct and specific action by the City Council.

City of Twin Falls City Manager’s FY 2020 Recommended Budget Enterprise Funds account for $25.36 million (36.2%) of the $70.06 million total revenues budgeted in the FY 2020 budget. The majority of revenues, or almost 92.5%, are from user fees. The remaining revenue sources include investment earnings, inter-fund transfers, and miscellaneous income.

Fiscal Year 2020 Utility Rates City of Twin Falls City Manager’s FY 2020 Recommended Budget Fiscal Year 2020 Utility Rates Water Fund We are recommending an increase to the water rate of 1%. The average water user (18,000 gallons) will see an increase of $.41 per month or $4.93 per year. The FY 2020 revenue projections estimate $11,733,738, which represents an increase from 2019 of $39,827 (.34%). Wastewater Fund We are recommending an increase to the sewer rate of 1%. The user that caps out at 12,000 gallons will see an increase of $.30 per month and $3.58 per year. The FY 2020 revenue projections estimate $9,704,742, which combined with reserves of $200,000, equals $9,904,742 in total funding. This is a decrease from FY2019 of $37,137 (.37%). Sanitation Fund We are recommending an increase in sanitation of 4.90%, which represents a $0.90 per month per customer increase or $10.80 per year. The FY 2020 revenue projections estimate $3,476,201, which represents an increase from 2019 of $107,726 (5.16%). The total of these adjustments would increase the average user by approximately $1.61/month or $19.32/year.

City of Twin Falls City Manager’s FY 2020 Recommended Budget

City of Twin Falls City Manager’s FY 2020 Recommended Budget July FY 2020 Budget Calendar July   Friday, July 5 Preliminary budget to Council for review Monday, July 8 Budget Presentation to Council - Overview Monday, July 15 Budget Presentation to Council - FOCUS AREAS 5, 6 & 7 Monday, July 22 Budget Presentation to Council - FOCUS AREAS 2 & 3 Monday, July 29 Budget Presentation to Council - FOCUS AREAS 1 & 4 August Monday, August 5 Budget Presentation to Council - FOCUS AREAS 8 Monday, August 12 Budget Overview, Adoption of Preliminary FY 2020 Budget, set Public Hearing date Public Hearing on Proposed Rate Adjustments Monday, August 19 Council Review of Preliminary Budget - All Sections Monday, August 26 Council Adoption of FY 2020 Budget - Public Hearing Week of August 26 Certify Tax Levy to County Publish Appropriations Ordinance & Send Copy to Secretary of State

Questions? City of Twin Falls City Manager’s FY 2020 Recommended Budget Questions?