City of Centralia, WA 2015 Budget Second Budget Amendment Ordinance Second Reading August 10, 2015 There are NO CHANGES since Ordinance First Reading on July 28, 2015.

The Budget Cycle POLICY & STRATEGY PHASE GOALS & OBJECTIVES NEEDS ASSESSMENT PHASE REVIEW PHASE & PUBLIC HEARINGS ADOPTION & IMPLEMENTATION PHASE MONITORING & REPORTING Amendment # Final Report Audit Underway 2015 Budget Preliminary 2016 Budget 2

2015 Adopted Budget by Major Fund Type 3

1 st Proposed Amendment = $617,216 Provided Appropriations for: Previous Council-approved actions Land purchase Grant funded projects: Water system & sidewalk Negotiated contracts: salary & benefit costs Seasonal staff pension costs Other proposals Recognized Financing: Approve release & use of carryover or reserves 4

1 st Amended 2015 City Budget $54,691,812 5 FundFUND NAME Adopted Budget Proposed Change Amended Budget 001GENERAL FUND$9,185,793$109,531 $ 9,295, STREET FUND2,100,79254,4502,155, PATHS & TRAILS FUND7, REPAIR & DEMOLITION FUND4, ELECTRIC UTILITY REVOLVING FUND PARK IMPROVEMENT FUND10, STADIUM FUND127, CONFISCATIONS/SEIZURES FUND146, LAW ENFORCEMENT GRANT FUND INDOOR POOL FUND10, BORST PARK CONSTRUCTION FUND132,20056,000188, BORST HOME FUND7604,0004, WASH LAWN CEMETERY FUND2, LANDFILL CLOSURE FUND194,08510,265204, LANDFILL OPERATING TRUST FUND194,08510,265204, DEBT SERVICE FUND152,5803,200155, CAPITAL PROJECTS FUND190, ENERGY EFFICIENCY CAPITAL PROJECT FUND416, FLOOD CAPITAL PROJECTS288, CITY LIGHT FUND24,072,01594,65824,166, WATER FUND5,320,17783,8985,404, WASTEWATER FUND9,461,378172,2949,633, STORM & SURFACE WATER FUND1,356,1008,5351,364, EQUIPMENT RENTAL FUND663,82010,120673, FIREMEN'S PENSION FUND37,000 TOTAL APPROPRIATIONS$54,074,596$617,216 $ 54,691,812

2nd Proposed Amendment = $477,316 To provide Appropriations for: Previous Council-approved actions Retroactive Teamster Seasonal Staff Pension Costs ( ) Stormwater Decant Station Contract Shared Cost with School District for Indoor Pool Liner Design Indigent defense contract updated costs New proposals Drug Enforcement costs Building Inspection & Development Costs 24/7 DUI Monitoring To Recognize Financing: Unanticipated revenues & use of reserves/carryover 6

Previous Council-approved actions Retroactive Teamster Pension Cost$ 79,413 Stormwater decant station project$182,000 Shared design costs Indoor Pool$ 11,500 Indigent defense contract – 2015 added cost $ 25,000 Actions require use of Carryover from General Fund, Street Fund, Stormwater Fund and Indoor Pool Fund 7

New Proposal: Fund 111 Confiscations & Seizures Fund 111 Confiscations & Seizures Fund 111 $80,000 Surveillance equipment$15,000 Surveillance van (pre-owned)$ 6,000 Computer Equipment(server)$40,000 Other Equipment$19,000 Funded by Unbudgeted Revenues$80,000 Seizure amounts in excess of those in Adopted Budget 8

New Proposal: Fund 114 Indoor Pool Fund 114 Indoor Pool Fund 114 $10,000 Shared costs for pool liner design Funded by Unbudgeted Carryover$10,000 9

New Proposal: General Fund Building Inspections Department$90,938 Purchase Replacement Inspection vehicle$35,000 Establish Development Services reserve$55,938 Funded by Unbudgeted Revenues$90,938 Building permits $34,929 Plan checks$56,009 10

New Proposal: General Fund Police Department Pilot program for DUI Monitoring$9,965 24/7 Training Class$6,000 24/7 Equipment & supplies $3,965 Funded by Unbudgeted Program Revenues$9,965 Registration$6,142 Testing$3,823 11

General Fund RequirementsTotal$73,272 Department PurposeAmount Municipal CourtIndigent Defense$25,000 ParksRetroactive Pension 48,272 $73,272 Funded by Use of Carryover$73,272 12

Use of Carryover Funding – General Fund 2014 Carryover AVAILABLE for /31/2014 $144,920* – 2014 Revenues in excess of 2014 Expenditures – Does not deplete former savings reserved by policy Policy Requirements – Met target levels for 2015 Carryover used to date & proposed: Adopted Budget$ 0 1 st Amendment $ 24,823 2 nd Amendment$ 73,272 Total $ 98,095 *Unaudited 13

General Fund Reserve Policy Designations Ending Fund Balance 12/31/2014 unaudited $3,490,120 Restricted Funds $ 181,037  Distressed County and HUD Reinvestments  Maintenance of Hub City Sign & Murals Assigned Funds $ 493,429  Leave Liability, excess compensation, LEOFF 1  Train Depot and Mellen Street maintenance reserves Policy Goals 7.5% of budget  Base line$688,000  Operating$688,000  Capital Projects$688,000 $2,064,000 Unassigned balance$ 751,654 14

Street Fund Requirement Total $31,141 Retroactive Teamster Pension $ 31, Carryover Financing Available: (12/31/2014) $203,298* Used to Date & Proposed: Adopted Budget $26,592 1 st Amendment 29,450 2 nd Amendment 31,141 Total$87,183 Remaining $116,715* *Unaudited 15

Stormwater Fund Requirement $182,000 Stormwater Decant Station ContractAwarded$911, Current Budget 730, Budget Required$181, (Round to $182,000) Current Financing: Original Grant$545,000 Local Partners 80,000 Local Match Revenues 105,000 $730,000 Increase Required 182,000 (Proposed Use of Reserves) $912,000 16

Use of Reserves – Stormwater Fund 17  Debt Reserves (Bonds & Loans) 1,130  Equipment Reserves226,334  Operating Reserves 21,115 Equipment Reserves to be Used for Decant Station $182,000 Reserves to be replenished from: Additional Ecology Grant $ 70,000 (in process) User Fees & Rate revenues $ 112,000 (approved rate increase)

Review of Reserve Designations – Utility Funds  Customer Deposits (if any)  Debt Reserves (Bonds & Loans)  Equipment Reserves  System Replacement Reserves (if funded)  Capital Contingency Reserves (if funded)  Operating Reserves 18 Utility Reserves: Restricted, Assigned, Policy

SUMMARY 2nd Proposed Amendment = $477,316 Appropriations: Previous Council-approved actions Retroactive Teamster Seasonal Staff Pension Costs ( ) Stormwater Decant Station Contract Shared Cost with School District for Indoor Pool Design Indigent defense contract update New proposals Drug Enforcement costs Building Inspection & Development Costs 24/7 DUI Monitoring Recognize Financing: Unanticipated revenues & use of reserves/carryover 19

Amended 2015 City Budget $55,169,128 20

Next Steps Comments/ Questions Approve First Reading of Ordinance establishing Second Amendment of 2015 Adopted Budget Pass for 2nd Reading on August 11,