BUDGET 2013

Budget Cuts over the last 4 years from Loss of Revenue Personnel$1,122, Operations$1,224, Capital Projects$1,367, TOTAL$3,714,500.00

Issue #1 – Water Rate Increase Water rates to pay for Jordanelle water. In 1976, the Metropolitan Water District of Orem signed an agreement with CUWCD for Jordanelle Water for the benefit and use in the City of Orem. The increases will continue through Cover increase in operation costs. Proposed Increase: Increase the base rate for a ¾” meter from $12.66 to $13.07(this is $0.25 for Jordanelle Water and $0.16 for O&M. Total monthly increase for ¾” meter = $0.41). All other meter size base rates will be increased proportionately.

Issue #2 – Sewer Rate Increase the sewer usage rate to cover increased operation costs. Proposed Increase: Increase Volume Charge from $1.39/1,000 gallons to $1.42/1,000 gallons. This will be around a $.39 increase per month for each connection.

Issue #3 – Street Lighting Fee It is our goal to have all enterprise funds be self sustaining based on the fees charged. The General Fund still contributes to the Street Lighting Fund. With this increase the General Fund will still be contributing around $250, per year to the Street Lighting Fund. Proposed Increase: Implement a Street Lighting Operation and Maintenance fee of $2.00/month.

Issue #4 – Residential Solid Waste Container Fee With the new contract on Solid Waste Services we propose to do the following: Proposed Fee Decrease: Reduce the Residential Solid Waste Container fee from $10.60/month to $10.10/month. Reduce the Recycling Container fee from $3.55/month to $3.05/month.

Issue #5 – Vehicle Replacement Program Budget $600, for vehicle replacement program.

VEHICLE REPLACENT Fund 10 Veh #DeptDescription oldDescription new Cost Running Total Mileage AmbulanceAmbulance $135,000 $ 135,000 99, Crown VicPickup 4x4 crew $ 36,000 $ 171, , Crown VicFull-size Sedan $ 32,000 $ 203, , Crown VicFull-size Sedan $ 32,000 $ 235, , Ford1 ton Dump $ 38,000 $ 273, , Crown VicFull-size Sedan $ 32,000 $ 305,000 97, Crown VicFull Size Sedan $ 32,000 $ 337,000 96, Crown VicFull-size Sedan $ 32,000 $ 369,000 97, Crown VicFull-size Sedan $ 32,000 $ 401,000 95, Chev Bucket Truck $ 95,000 $ 496,000 42, ImpalaMid-size Sedan $ 25,000 $ 521, , T-BirdMid-size Sedan $ 25,000 $ 546,000 98, Chev PickupFull Size Pickup $ 32,000 $ 578, , Utility VehicleUtility Vehicle $ 14,000 $ 592, Crown VicFull-size Sedan $ 32,000 $ 624,000 90, Expedition 4X4SUV $ 35,000 $ 659, , Toro MowerRiding mower $ 20,000 $ 679, ImpalaMid-size Sedan $ 25,000 $ 704, , Dakota pickup $ 32,000 $ 736, , Crown VicFull Size Sedan $ 32,000 $ 768,000 93, Ford pickup 4X4 $ 35,000 $ 803, , Dodge pickup1/2 ton Pickup $ 25,000 $ 828, , Ford Explorer $ 35,000 $ 863, , Crown VicFull Size Sedan $ 32,000 $ 895,000 92, Dodge pickupFull Size 4X4 Pickup $ 32,000 $ 927,000 78, Grand Cherokee $ 32,000 $ 959,000 90, Dodge Mini Van $ 25,000 $ 984,000 89, Crown VicFull Size Sedan $ 32,000 $ 1,016,000 90, Dodge 1 Ton1 ton Dump $ 35,000 $ 1,051, , /4 Chev pickup3/4 ton Pickup $ 25,000 $ 1,076, , Crown VicFull Size Sedan $ 32,000 $ 1,108,000 87, Crown VicFull Size Sedan $ 32,000 $ 1,140,000 86, Ford 4X4 1 Ton Dump $ 37,000 $ 1,177, Chrysler Mini Van $ 32,000 $ 1,209,000 93, Crown VicFull Size Sedan $ 32,000 $ 1,241,000 83, Crown VicFull-size Sedan $ 32,000 $ 1,273,000 83, LuminaMid-size Sedan $ 23,000 $ 1,296,000 82, Chev PickupFull Size Pickup $ 23,000 $ 1,319,000 81, Toro MowerRiding mower $ 20,000 $ 1,339, Ford Pickup4X4 ext cab pickup $ 32,000 $ 1,371,000 84, Crown VicFull Size Sedan $ 32,000 $ 1,403,000 81, Crown VicFull Size Sedan $ 32,000 $ 1,435,000 80, Crown VicFull Size Sedan $ 32,000 $ 1,467,000 81, Dodge Vanfull Size Van $ 26,000 $ 1,493,000 45, Dodge Van1 Ton Van $ 26,000 $ 1,519,000 58, TrailerUtility Trailer $ 3,000 $ 1,522, Toro MowerRiding mower $ 20,000 $ 1,542, Toro MowerRiding mower $ 20,000 $ 1,562, Lumina1/2 ton Pickup $ 21,000 $ 1,583,000 39,585

Issue #6 – Employee Compensation Budget a 2% market adjustment

Employee Compensation City of Orem 2% Salary Increase Cost by Fund Total Payroll Cost 2% 0% Payroll Cost of 2% Increase Fund Increase Salary Benefits General Fund $ 30,316,232 $ 29,838,654 $477,578 $ 374,300 $ 103,278 Water Fund 1,738,379 1,709,889 28,490 22,517 5,973 Water Rec Fund 2,059,184 2,029,882 29,302 26,028 3,274 Storm Sewer Fund 673, ,272 10,950 8,638 2,312 Rec Fund 449, ,579 7,299 5,815 1,484 Street Lighting Fund 97,187 95,505 1,682 1, Fleet Maint Fund 462, ,500 7,573 5,990 1,583 Purch/Warehouse Fund 232, ,106 3,954 3, Self-insurance Fund 84,288 82,716 1,572 1, CNS Fund 133, ,659 2,519 2, Animal Shelter Fund 342, ,091 4,983 4, Total $ 36,587,755 $ 36,011,853 $575,902 $ 455,317 $ 120,585

Issue #7 – Computer & Technology Upgrades Budget $158, for computer and technology upgrades

Computer Upgrade Plan DepartmentDescriptionAmount City ManagerReplacement voice recording software for City Council and Planning Commission meetings$2,000 Replacement computers for City Recorder, City Council Chamber and Economic Development Office2,700 Windows 7 licensing – 5 computers625 Administrative Services Flat screen for laptop presentations in Main City Center Conference Room1,500 Development ServicesReplacement of surveying GPS rover24,000 Replacement of 2 GPS radios6,200 Public SafetyReplacement of 20 patrol vehicle laptops40,000 Replacement of 11 desk top computers (without monitors)16,500 Various computer and software maintenance fees (excluding the Spillman system)15,000 Replacement of 8 Dispatch Center computers (without monitors)12,000 Public WorksReplacement of Cemetery Office computer2,500 RecreationReplacement of 2 work station computers4,500 Library ServicesReplacement of 11 staff computers11,000 Replacement of 20 public access thin clients10,000 Off-site NAS/backup server7,000 Printer for Information Technology staff1,500 Replacement of 11 LCD monitors (PAC & Circulation Stations)1,100 Total$158,125

Issue #8 – General Fund Property Tax Revenue Increase Should the City proceed with Truth in Taxation procedures in order to address the UTOPIA obligation and establish a tort liability fund? The Tentative Budget includes a general property tax increase of $3,000,000 for the UTOPIA obligation and a tort liability increase of approximately $350,000.

Comparisons CityWaterSewerStorm SewerGarbageProperty TaxMonthly Total Ogden American Fork Pleasant Grove West Valley Lehi Sandy Lindon Springville Spanish Fork Provo Payson Orem Water is based on the City of Orem average residential use of 28,000 gallons per month with a 3/4 inch meter. If a city has pressurized irrigation, a mix of 11,500 gallons of culinary water to 16,500 gallons of pressurized irrigation (secondary) water was utilized. Sewer is based on the City of Orem average residential use of 13,000 gallons per month. Property tax was calculated based on a home value of $200,000.

Issue #9 – Fees & Charges Exhibit “B” in the Budget Book.

Fiscal Year Redevelopment Agency of Orem

Redevelopment Agency Current Year’s Budget – $4,020,000 Prior Year’s Budget – $3,665,000

Redevelopment Agency Project Area Orem Tek – $722,000 – 95% of tax increment through FY US Synthetics Corporation – $33,333 – Fixed amount FY and FY

Redevelopment Agency Project Area 85-03A Orem Mazda – $75,000 – Up to 50% of $150,000 of sales tax generated between October 2011 and September 2012 – Contract continues through FY – Maximum of $600,000

Redevelopment Agency Project Area Boyer Orem Associates – $220,000 – Fixed amount of $220,000 through FY

Redevelopment Agency Sales Tax Bonds – $1,017,682 – Current year bond payment after 2 refunding issues – $1,098,400 – Original bond payment scheduled for this fiscal year – a savings of $82,718 (without extending the payment period of the bonds)