1. 2016 PROPOSED BUDGET: FINAL BUDGET PRESENTATION & SUMMARY NOVEMBER 17, 2015 MATTHEW MORTON, CITY ADMINISTRATOR

2. 2016 Budget Preliminary to Tentative changes As of 11/13/15 2016 - All O/H Transfers recalculated based on updated FTE's (397 & 597) 2016 – B.R. Construction Removed -- Design Remains (200k) 2016 – Senior Planner hired, trued up salary & benefits 2016 - L&I rate change Larger than expected increase 2016 - Finance reviewed & updated PD Benefits & Salaries 2016 - Police new hires benefits change impacts from Prelim budget 2016 – PD Clerk converted to Records Manager to reduce contract legal expense (1 st Qtr) 2016 - Increase DCC Support (Kass Holdeman) to.75 FTE from.60 FTE (FT effective 7/1/16) 2016 - Add benefits for DCC Support (Kass Holdeman) 2016 - Streets (101) ESSB 5338 gas tax revenue added. New source of revenue. ($11,900) 2016 - Added 17,500 to Contingency fund from general fund 2016 - Reduced transfer to fund new fleet equipment to 50% funding across all funds 2016 - Reduce hours for part-time Accountant from 4 to 3.5 per day 2016 - Reduce hours for part-time Administrative Assistant II from 4 to 3.5 per day 2016 - Remove benefits for Admin Asst. that had been added for Preliminary budget

3. 3 What This Budget Does Not Do: Final Budget Presentation & Summary Does not fund every priority in the City – difficult choices were made Does not further cut LOS or FTE’s Will not “roll” into 2017 – We will work hard next year to start building sustainability Does not identify repayment source for principal and interest for yet to be determined loan amount to finish Main Street -- options include: General Fund REET 1 & 2 Fund 307 Street Capital Transportation Benefit District Timing Deferment until 2017

4. 4 What This Budget ACCOMPLISHES: Final Budget Presentation & Summary Allows room for top priorities – such as Main Street Funds ½ year fleet replacement Purchase needed P.D. Vehicle 100% Replaces 1988 dump truck Maintains existing LOS throughout the City Makes strategic investments for future returns (Main Street Coord. & C.A.) Designates money for contingency fund to recognize savings Invests in training Invests in regional partnerships and a Statewide Legislative Presence Streamlines PT staff Will look for FTE efficiencies quarterly and mid-year Reduces overall legal costs Uses Tech-Center Proceeds for Treatment Plant Upgrades (avoids issuance of new debt)

5. 5 What This Budget ACCOMPLISHES: Final Budget Presentation & Summary Phases some costs in INCREMENTALLY which provides opportunity for Council discretion and input: FTE for Main Street / Events / Tourism (July 1) Project management and facilitation(1 st Qtr) Incrementally brings parity to Public Defender Obligations (16’-18’) Begins City Insurance Premium Savings (40k) – Self Insure Deductible

6. 6 Final Budget Presentation & Summary $17,500 Added to Contingency Gnat Budget – Tight Tolerance Aim for the Moon Avoid “Discretionary Leakage” Narrative Clear & Refined Signal Priority of Fiscal Responsibility and Savings Any significant mid-year savings will go to contingency for council discretion and vetting

7. 7 CA Perspective Solid, responsible budget that effectively uses strained resources and tight revenues to advance the community through a focus on core priorities and the targeting of strategic investments that will produce a measurable return on investment. Final Budget Presentation & Summary