1. BUDGET 2013

9. Budget Cuts over the last 4 years from Loss of Revenue Personnel$1,122,600.00 Operations$1,224,500.00 Capital Projects$1,367,400.00 TOTAL$3,714,500.00

10. 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 2017. 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.

11. 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.

12. 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 $250,000.00 per year to the Street Lighting Fund. Proposed Increase: Implement a Street Lighting Operation and Maintenance fee of $2.00/month.

13. 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.

14. Issue #5 – Vehicle Replacement Program Budget $600,000.00 for vehicle replacement program.

15. VEHICLE REPLACENT 2012-2013 Fund 10 Veh #DeptDescription oldDescription new Cost Running Total Mileage 370710 65402008 AmbulanceAmbulance $135,000 $ 135,000 99,594 205410 65202005 Crown VicPickup 4x4 crew $ 36,000 $ 171,000 102,332 205710 65202005 Crown VicFull-size Sedan $ 32,000 $ 203,000 104,410 206110 65202005 Crown VicFull-size Sedan $ 32,000 $ 235,000 108,412 798010 75491997 Ford1 ton Dump $ 38,000 $ 273,000 126,798 204810 65202004 Crown VicFull-size Sedan $ 32,000 $ 305,000 97,619 206510 65202005 Crown VicFull Size Sedan $ 32,000 $ 337,000 96,085 206210 65202005 Crown VicFull-size Sedan $ 32,000 $ 369,000 97,932 206610 65202005 Crown VicFull-size Sedan $ 32,000 $ 401,000 95,705 467510 75321997 Chev Bucket Truck $ 95,000 $ 496,000 42,178 310210 65302002 ImpalaMid-size Sedan $ 25,000 $ 521,000 111,180 305010 65302001 T-BirdMid-size Sedan $ 25,000 $ 546,000 98,608 328110 65522002 Chev PickupFull Size Pickup $ 32,000 $ 578,000 133,265 730310 75472002 Utility VehicleUtility Vehicle $ 14,000 $ 592,000 205610 65202005 Crown VicFull-size Sedan $ 32,000 $ 624,000 90,005 305310 65402003 Expedition 4X4SUV $ 35,000 $ 659,000 106,592 740410 75471997 Toro MowerRiding mower $ 20,000 $ 679,000 330110 65302000 ImpalaMid-size Sedan $ 25,000 $ 704,000 102,870 350210 65312001 Dakota pickup $ 32,000 $ 736,000 138,191 207810 65202007 Crown VicFull Size Sedan $ 32,000 $ 768,000 93,013 350410 65302002 Ford pickup 4X4 $ 35,000 $ 803,000 134,516 700110 75471998 Dodge pickup1/2 ton Pickup $ 25,000 $ 828,000 108,550 350510 65302002 Ford Explorer $ 35,000 $ 863,000 135,795 206910 65202005 Crown VicFull Size Sedan $ 32,000 $ 895,000 92,032 320110 65541998 Dodge pickupFull Size 4X4 Pickup $ 32,000 $ 927,000 78,622 350810 65302007 Grand Cherokee $ 32,000 $ 959,000 90,843 110010 45101997 Dodge Mini Van $ 25,000 $ 984,000 89,285 203210 65202001 Crown VicFull Size Sedan $ 32,000 $ 1,016,000 90,007 710210 75472001 Dodge 1 Ton1 ton Dump $ 35,000 $ 1,051,000 128,341 120010 75781999 3/4 Chev pickup3/4 ton Pickup $ 25,000 $ 1,076,000 101,697 208510 65202008 Crown VicFull Size Sedan $ 32,000 $ 1,108,000 87,037 320310 65542001 Crown VicFull Size Sedan $ 32,000 $ 1,140,000 86,100 715010 75481997 Ford 4X4 1 Ton Dump $ 37,000 $ 1,177,000 350710 65302007 Chrysler Mini Van $ 32,000 $ 1,209,000 93,249 202910 65202001 Crown VicFull Size Sedan $ 32,000 $ 1,241,000 83,767 204710 65202004 Crown VicFull-size Sedan $ 32,000 $ 1,273,000 83,603 100110 45101997 LuminaMid-size Sedan $ 23,000 $ 1,296,000 82,085 160110 60401999 Chev PickupFull Size Pickup $ 23,000 $ 1,319,000 81,303 740510 75471998 Toro MowerRiding mower $ 20,000 $ 1,339,000 305110 65401997 Ford Pickup4X4 ext cab pickup $ 32,000 $ 1,371,000 84,813 204110 65502002 Crown VicFull Size Sedan $ 32,000 $ 1,403,000 81,919 204010 65502002 Crown VicFull Size Sedan $ 32,000 $ 1,435,000 80,561 203610 65302001 Crown VicFull Size Sedan $ 32,000 $ 1,467,000 81,007 96210 45101994 Dodge Vanfull Size Van $ 26,000 $ 1,493,000 45,325 99510 80131990 Dodge Van1 Ton Van $ 26,000 $ 1,519,000 58,856 63210 75471674 TrailerUtility Trailer $ 3,000 $ 1,522,000 740610 75471998 Toro MowerRiding mower $ 20,000 $ 1,542,000 740710 75471998 Toro MowerRiding mower $ 20,000 $ 1,562,000 160010 60401997 Lumina1/2 ton Pickup $ 21,000 $ 1,583,000 39,585

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

17. 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 673,222 662,272 10,950 8,638 2,312 Rec Fund 449,878 442,579 7,299 5,815 1,484 Street Lighting Fund 97,187 95,505 1,682 1,332 350 Fleet Maint Fund 462,073 454,500 7,573 5,990 1,583 Purch/Warehouse Fund 232,060 228,106 3,954 3,128 826 Self-insurance Fund 84,288 82,716 1,572 1,247 325 CNS Fund 133,178 130,659 2,519 2,026 493 Animal Shelter Fund 342,074 337,091 4,983 4,296 687 Total $ 36,587,755 $ 36,011,853 $575,902 $ 455,317 $ 120,585

18. Issue #7 – Computer & Technology Upgrades Budget $158,125.00 for computer and technology upgrades

19. 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

20. 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.

21. Comparisons CityWaterSewerStorm SewerGarbageProperty TaxMonthly Total Ogden75.3728.916.9117.7948.86177.84 American Fork41.5053.756.0010.0043.95155.20 Pleasant Grove44.2447.947.7410.6139.01149.54 West Valley49.6018.004.006.4559.68137.73 Lehi32.6544.005.0014.0041.42137.07 Sandy52.2933.445.7012.5031.91135.84 Lindon39.3242.314.649.5837.40133.25 Springville36.2533.474.9711.7537.61124.05 Spanish Fork50.4928.905.229.3629.21123.18 Provo27.7222.374.6311.0044.39110.11 Payson33.3430.495.2610.5230.46110.07 Orem28.9027.394.7510.6035.56107.20 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.

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

23. Fiscal Year 2012-2013 Redevelopment Agency of Orem

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

25. Redevelopment Agency Project Area 85-01 Orem Tek – $722,000 – 95% of tax increment through FY 2014-2015 US Synthetics Corporation – $33,333 – Fixed amount FY 2012-2013 and FY 2013-2014

26. 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 2017-2018 – Maximum of $600,000

27. Redevelopment Agency Project Area 87-10 Boyer Orem Associates – $220,000 – Fixed amount of $220,000 through FY 2014-2015

28. 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)