HomeMy WebLinkAboutOrdinances - 2014-15 - Adopting the annual City Budget for 2015 - 12/9/2014CITY OF EAST WENATCHEE, WASHINGTON
ORDINANCE NO. 2014-15
An ordinance of the City Council of the City of East Wenatchee,
Washington, adopting the annual budget of the City for the fiscal
year commencing January 1, 2015
Una Ordenanza de la Ciudad de East Wenatchee Washington, se
modifica L Ordenanza Numero 2014-14 que establecio la Ciudad
de East Wenatchee 2014 Prseupuesto.
1. Recitals
a. Preamble. The City of East Wenatchee ("City") is a non-charter code city duly
incorporated and operating under the laws of the State of Washington; and
b.
1.
11.
111.
IV.
c.
1.
Conditions Precedent. Previously, the City Council of East Wenatchee ("City
Council"):
prepared and filed its preliminary budget for the year 2015;
gave notice of the time and place of hearing thereon according to law;
met in accordance with said notice; and
considered the proposed budget.
Authority.
RCW 35A.l 1.020 authorizes the City Council to regulate local affairs and
provide municipal services.
THE CITY COUNCIL OF THE CITY OF EAST WENATCHEE DO ORDAIN AS FOLLOWS:
Section 1:
Section 2:
Purpose. Adopt a City budget for the year 2015.
Adoption of 2015 Budget. In accordance with RCW 35A.33.075, the City
Council adopts, by reference, the final budget for the year 2015 for the City of
East Wenatchee, Washington.
Ordinance 2014-15
Page 1of5
Section 3:
Section 4:
Recognition of Estimated Beginning Fund Balances and Estimated Revenues:
The 2015 Budget recognizes estimates for its beginning fund balances and
estimated revenues for 2015 from the following fund sources:
Fund
General Fund
Street/SW A Fund
Comm Developments Grant Fund
Library Fund
HoteVMotel Tax Fund
Drug Fund
Criminal Justice Fund
Events Board Fund
Bond Redemption Fund
Street Improvements Fund
Capital Improvements Fund
Storm Water Capital Impv Fund
Equipment PM& R Fund
Transportation Benefit District Fund
Total for All City Operations
Estimated 2015
Beginning
Fund Balance
2,766,024
108,340
33,156
1,321
76,303
5,392
41,423
35,974
7,005
433.414
481,595
7,331
134,103
4,131,381
Estimated
2015
Revenue
5.997.265
1,094,250
25,000
3,250
41,500
200
15,650
131,200
197,291
2.097.656
195,000
996.849
236,000
205,000
11,236,111
Funds Appropriated. The 2015 Budget is appropriated by fund as follows:
2015
Fund
General Fund
Street/SW A Fund
Comm Developments Grant Fund
Library Fund
HoteVMotel Tax Fund
Drug Fund
Criminal Justice Fund
Events Board Fund
Bond Redemption Fund
Street Improvements Fund
Capital Improvements Fund
Storm Water Capital Impv Fund
Equipment PM& R Fund
Transportation Benefit District Fund
Total for All City Operations
Appropriation
8,763,289
1,202,590
58,156
4,571
117,803
5,592
57,073
167,174
204,296
2,531,070
676,595
996,849
243,331
339,103
15,367,492
Ordinance 2014-15
Page 2of5
Section 5:
Fund
General Fund
2015 Financial Budget Summarized Cash Flow by Fund and Combined:
The following is a summary cash flow schedule for 2015 with beginning
balances, estimated revenue, fund transfers and budgeted expenditures by fund
and in total for 2015.
Estimated 2015 Estimated Budgeted Estimated
Beginning 2015 2015 2015 Ending
Fund Balance Revenue Expenditures Fuvnd Balance
2,766,024 5.997-265 6,211,964 2,551,325
Street/SW A Fund 108,340 1,094,250 1,153,350 49,240
Comm Developments Grant Fund 33,156 25,000 25,000 33,156
Library Fund 1,321 3,250 4,300 271
HoteVMotel Tax Fund 76,303 41,500 117,803
Drug Fund 5,392 200 5,592
Criminal Justice Fund 41,423 15,650 40,000 17,073
Events Board Fund 35,974 131,200 150,750 16,424
Bond Redemption Fund 7,005 197,291 194,711 9,585
Street Improvements Fund 433-414 2.097.656 2,247,105 283,965
Capital Improvements Fund 481,595 195,000 635,000 41,595
Storm Water Capital Impv Fund 996.849 896,849 100,000
Equipment PM& R Fund 7,331 236,000 236,000 7,331
Transportation Benefit District Fund 134,103 205,000 173,750 165,353
Total for All City Operations 4,131,381 11,236,111 11,968,779 3,398,713
Section 6: Final Budget on file. A detailed final budget, including a list of revenues and
expenditures for each separate fund, shall be on file with the City Clerk of the
City of East Wenatchee, East Wenatchee, Washington. The City Council also
directs the City Clerk to upload a copy of the final budget on the City's website.
Section 7:
Section 8:
Section 9:
Transmittal. The City Treasurer shall transmit a complete copy of the final
budget for 2015 as adopted, together with a copy of this adopting ordinance to the
Division of Municipal Corporations of the State Auditor and to the Association of
Washington Cities.
Publication. The City Council directs the City Clerk to publish a summary of this
Ordinance. The summary shall consist of the title of this Ordinance.
Effective Date. This Ordinance becomes effective on January 1, 2015.
Ordinance 2014-15
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Passed by the City Council of East Wenatchee, at a regular meeting thereof on this 9th day of
December 2014.
AUTHENTICATED:
CITY CLERK, DANA BARNARD
CITY ATTORNEY,DEViNPOULSON
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL :
PUBLISHED:
EFFECTIVE DATE:
Ordinance 2014-15
Page 4of5
,,.,-··
SUMMARY OF ORDINANCE NO. 2014-15
OF THE CITY OF EAST WENATCHEE, WASHING TON
On this 9th day of December, 2014 , the City Council of the City of East Wenatchee ,
Washington, passed Ordinance No. 2014-15. A summary of the content of said ordinance
consisting of the title , provides as follows:
An ordinance of the City Council of the City of East Wenatchee adopting the
annual budget of the City for the fiscal year commencing January 1, 2015.
DATED December ___1_, 2014
-~ Dana Barnard, City Clerk
Ordinance 2014-15
Page 5of5
City of
East Wenatchee, Washington
2015 Annual Financial Budget
Mayor
Steven C. Lacy
Councilmembers
Wayne Barnhart
George Buckner
Frank Collings
Timothy Detering
Chuck Johnson
Sandra Mccourt
Harry Raab
Finance Director
Nick A. Gerde
CITY OF EAST WENATCHEE, WASHINGTON
FINANCIAL BUDGET
2015 BUDGET ASSUMPTIONS AND HIGHLIGHTS
The City's Budget Committee develops and communicates the budget
assumptions that the City will use each year. Revenue is primarily the
responsibility of the Finance Director, who is a member of the Budget
Committee. Primary revenue estimates for 2015 include:
1. Eleven sources of revenue for the City represent nearly 91 % of the
estimated operational revenue for 2015. They include:
Amount
A. Sales and Use Tax $3,300,000
B. Property Tax 1,609,000
C. Utility Tax 811,000
D. Street Fuel Excise Tax 280,000
E. State Portion -Court Revenue 244,000
F. Fines & Penalties -Court 238,000
G. Criminal Justice Taxes 227,000
H. Storm Water Utility Operation 217,000
I. Transportation Benefit District 205,000
J. Real Estate Excise Tax 195,000
K. Gambling Tax 160,000
L. Hotel/Motel Taxes 129,000
M. Liquor Taxes & Profits 124,000
N. Balance of Revenue Estimate 5182000
Sub-total Operational Revenue $ 8!257!000
2. Revenue for Capital Improvement Projects:
A. Storm Water Capital Projects
B. Street Imp Projects -Grants
C. Fund Transfers
Sub-total Capital Revenue
Total 2015 Revenue Estimate
Amount
$ 897,000
1,908,000
174,000
$ 2.979!000
$ 11.236.000
Percent of
Ops Rev
40.0%
19.5%
9.8%
3.4%
3.0%
2.9%
2.7%
2.6%
2.5%
2.4%
1.9%
1.6%
1.5%
6.2%
100.0%
Percent of
Cap Rev
35.6%
58.5%
5.9%
100.0%
3. Each revenue source was evaluated in consideration of a six year
receipt history, or shorter in the case of utility taxes, and street
improvements/capital projects and transfers to support them.
2015 BUDGET ASSUMPTIONS AND HIGHLIGHTS
(continued)
4. Monthly trends over 2014 and the last six years were studied,
particularly in light of recent fluctuating economic trends, experience
by other cities in our region, and the continuing recession.
Departmental costs are the responsibility of each Department Director. All
other costs are the responsibility of the Finance Director. Primary
expenditure budget assumptions for 2015 costs included the following:
1. Budget costs conservatively: No increases in operating costs unless
they can be substantiated and approved by the Budget Committee for
presentation to the City Council.
2. Department Capital Costs: Any budgeted costs for capital need to be
specifically budgeted and explained as to need.
3. The City currently has forty-eight employees. Compensation for City
employees not covered by either a collective bargaining agreement or
an employment agreement is based upon the City's long-standing
policy of wage parity. This group consists of eight full-time
employees.
4. The City Attorney and Municipal Court Judge are compensated
according to employment agreements. Two contracted personnel
staff the Events Department.
5. The collective bargaining unit agreements with the police department
unions covering twenty-one employees expired on December 31,
2013, and are still in negotiation.
6. The collective bargaining unit agreement with Local 846-W covering
fifteen employees in the Street, Planning, Code, Court, and City Clerk
Departments has been renewed until its expiration on December 31,
2016.
7. Healthcare premiums, commercial insurance, detention costs,
RiverCom costs, and any other significant operating costs are
determined through communication, agreements or quotes from those
vendors.
7
2015 BUDGET ASSUMPTIONS AND IDGHLIGHTS
(continued)
Budgeted operating expenditure categories for 2015 include:
Amount
A. Labor Costs $ 3,501,000
B. Benefit Costs 1,441,000
c. Storm Water Utility Operations 226,000
D. Jail Services -Detention 340,000
E. Rivercom 9-1-1 275,000
F. Municipal Fees Court to State 264,000
G. Department Capital Expense 376,000
H. Debt Service-Principal & Interest 195,000
I. Storm Water Utility Charge 147,000
J. Muni Court PubliC! Defense Costs 104,000
K. Balance of Operating Expenses 121482000
Total Operating Expenses 810171000
Budgeted capital expenditure categories for 2015 include:
L. Storm Water Utility Capital
M. Street Improvements Capital
N. Capital Expenditures
0. Fund Transfers
Total Capital Expenses
Grand Total 2015 Budgeted Expenditures
897,000
2,247,000
635,000
174,000
$ 3.953.000
$ 1119701000
Percent
of Total
43.7%
18.0%
2.8%
4.2%
3.4%
3.3%
4.7%
2.4%
1.8%
1.3%
14.4%
100%
21.7%
61.3%
12.3%
4.7%
100%
Primary assumptions for capital costs for street improvement projects, storm
water utility projects, and capital expenditures, include the following:
1. The principal source for street improvement projects is the 6 year
Transportation Improvement Plan (TIP), which the City is required to
provide to the Washington State Department of Transportation
(WSDOT) each year in June, and other residential street projects.
2. Storm Water Utility Projects were selected by the SWU Coordinating
Committee of the Greater East Wenatchee Storm Water Utility,
jointly owned by the City and Douglas County, and the TIP, based
upon an assessment of the highest needs in the City for the 2015
budget year, giving priority for those grant-funded projects.
8
2015 BUDGET ASSUMPTIONS AND ffiGHLIGHTS
(continued)
3. Projects scheduled for 2015 include:
Public
Project Description Funding
VMP Parking Lot Project 512,000
Retrofit SWU Catch Basins 161,000
SWU Small Improvements 87,000
WVSWP Decant Facility 64,000
SWU French St. Improvements 60,000
French Street Improvements 353,000
Residential Street Projects 174,000
Valley Mall Parkway Overlay 863,000
Traffic Signal 9th & VMP 313,000
Highline Drive Engineering 277 ,000
Purchase/Design Gateway Property
Public Works Storage Building
Fund Transfers
Other
City
Funding
13,000
135,000
51,000
49,000
450,000
150,000
174,000
67,000
Total
512,000
161,000
87,000
64,000
60,000
366,000
174,000
998,000
364,000
326,000
450,000
150,000
174,000
67,000
Total $2.864.000 $1.089.000 $3.953.000
City funding in the schedule above of $804,000 will be satisfied with from
property tax, real estate excise tax and accumulated funds. The Residential
Street Projects will be funded from proceeds of the $20 car tab fee collected
on behalf of the Transportation Benefit District. The storm water utility
projects will be fully funded through the Greater East Wenatchee Storm
Water Utility, which is an agency owned jointly by the City and Douglas
County. Funding for the GEWSWU is provided through a fee charged to
residents and businesses in the GEWSWU service area, including the City
which pays $14 7 ,000 annually in fees for its property and streets.
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_._._._._._..._._._-_._._.._._-.:·.-:.-.--·-·.
City of East Wenatchee, Washington
2015 Annual Financial Budget
Summary Financial Information
CASH FLOW STATEMENTS
Basis of Presentation: City of East Wenatchee Cash Accounting and Reporting
is frequently depicted in different ways depending upon the amount of detail
or the differing classifications of the same revenue and expenditures. These
differing presentations result in the same and equal cash flows, but can be
presented herein in two ways, as follows:
1. High Level Cash Flow Summary, and
2. Cash Flow by Categories of Revenue and Expenditures
Summarized Cash Flow: High Level Summarl
2015 2014 2014
Annual Estimated Budget
Budget Actual As Amended
Cash Balances, Beginning of the Year $4,131,000 $3,796,000 $ 3,084,000
Revenue 10,973,000 10,131,000 10,391,000
Non-Revenues (Pass-Through to Others) 263,000 468,000 284,000
Total Revenues 11,236,000 10,599,000 10,675,000
Total Resources Available (Cash plus Revenue) 15,367,000 14,395,000 13,759,000
Expenditures -11,592,000 9,846,000 11,005,000
Non-Expenditures (Pass Through Monies) 378,000 418,000 286,000
Total Expenditures 11,970,000 10,264,000 11,291,000
Cash Balances, End of the Year $3,397,000 $4,131,000 $ 2,468,000
10
Summarized Cash Flow: B)l Major Revenue and ExQense Categories
2015 2014 As Amended
Annual E§timated 2014
Budget ~ Budget
Cash Balances, Beginning of the Year $4,131,000 $3,796,000 $ 3,084,229
Revenue Received
Sales & Use Taxes 3,300,000 3,200,000 3,200,000
Property Taxes -2009 Base 1,609,000 1,583,000 1,583,000
6% Utility Tax 811,000 805,000 843,800
Storm Water Utility Operations 217,000 211,000 257,600
Municipal Court Receipts -Fines 238,000 245,000 247,965
Street Fuel Excise Tax 280,000 276,000 283,000
Community Development Grant -CDBG 25,000 80,000 130,065
Real Estate Excise Tax 195,000 270,000 172,000
Transportation Benefit District 205,000 210,000 185,000
Criminal Justice Taxes 227,000 230,000 212,500
Liquor Taxes 124,000 120,000 124,000
Gambling Tax Receipts 160,000 206,000 148,190
Hotel/Motel Taxes 129,000 128,000 118,900
Franchise Fees 94,000 96,000 93,000
Balance of Operational Revenue 380,000 595,000 606,562
Sub-total Operational Revenue 7,994,000 8,255,000 8,205,582
Court Receipts for the State 244,000 253,000 265,000
Other non-revenue 18,000 215,000 15,600
Total Operational Revenue 8,256,000 8,723,000 8,486,182
Storm Water Utility Capital Reimbursed 897,000 730,000 787,667
Funding for. Street Improvements 1,909,000 1,146,000 1,273,053
Transfers for Street Improvements 174,000 128,000
Total Capital Project Revenue 2,980,000 1,876,000 2,188,720
Grand Total Revenue 11,236,000 10,599,000 10,674,902
Total Resources Available (Cash plus Revenue) 15,367,000 14,395,000 13,759,131
Expenditures
Payroll Costs 3,501,000 3,406,000 3,379,700
Employee Benefit Costs 1,441,000 1,349,000 1,438,000
Jail Services -Adult Detention 340,000 x 327,000 321,500
Storm Water Utility Operations 372,000 x 750,000 379,600
Rivercom 911 275,000 x 272,000 271,900
Department Capital Expenses 376,000 x 788,000 208,200
Debt Service Principal & Interest 195,000 x 198,000 197,893
Storm Water Utility Charge 147,000 x 147,000 147,000
Hotel/Motel Tax to Others 45,000
Other Expenditures 1,090,000 718,000 1,089,740
Sub-total Operational Costs 7,737,000 7,955,000 7,478,533
Municipal Court Receipts for the State 264,000 253,000 270,000
Other Non-expenditures 16,000 164,000 16,250
Total Operational Costs 8,017,000 8,372,000 7,764,783
Storm Water Utility Capital Expenditures 897,000 384,000 806,267
Street Improvements Expenditures 2,247,000 1,377,000 1,800,704
Capital Improvements 635,000 375,000 791,000
Transfers for Street Improvements 174,000 140,000 128,000
Total Capital Project Costs 3,953,000 1,892,000 3,525,971
Total Expenditures 11,970,000 10,264,000 11,290,754
Cash Balances, End of the Year $3,397,000 $4,131,000 $ 2,468,377
11
Ci~ of Easi Wenatchee 1 Washington
Prelimina~ Budget -2015
Revenue 1 Exgenses and Changes in Fund Balances
Cash Cash
Beg Balance Add: Resources Less: End Balance
Fund j/1/2015 R~venue Available Ex12enditures 12131/2015 Note
General Fund 001 2,766,024 5,997,265 8,763,289 6,211,964 2,551,325
Street/SWA Fund 101 108,340 1,094,250 1,202,590 1,153,350 49,240
Comm Dev Grants Fund 102 33,156 25,000 58,156 25,000 33,156
Library Fund 112 1,321 3,250 4,571 4,300 271
Hotel/Motel Tax Fund 113 76,303 41,500 117,803 117,803
Drug Fund 114 5,392 200 5,592 5,592
Criminal Justice Fund 116 41,423 15,650 57,073 40,000 17,073
Events Board Fund 117 35,974 131,200 167,174 150,750 16,424
Bond Redemption Fund 202 7,005 197,291 204,296 194,711 9,585
Street Improvements Fund 301 433,414 2,097,656 2,531,070 2,247,105 283,965
Capital Improvements Fund 314 481,595 195,000 676,595 635,000 41,595
Storm Water Capital lmpv Fund 996,849 996,849 896,849 100,000
Equipment PM& R Fund 501 7,331 236,000 243,331 236,000 7,331
Transportation Benefit Distr 620 134,103 205,000 339,103 173,750 165,353
Total for All Cit~ Ogerations 4,131,381 11,236, 111 15,367,492 11,968,779 3,398,713
A. Storm Water operations have been consolidated with Street Fund maintenance, effective
January 1, 2015. Previously since its formation in 1998, Storm Water operations and capital projects
were included in the General Fund. Initially, the Storm Water activities were relatively modest. With the
of National Polution Discharge Elimination System (NPDES) federal regulations downstreamed to
states and then to cities, the activities have increased substantially. Storm Water activities are considered
an extension of street maintenance, are satisfied by street department employees, and consequently
are more organizationally and financially matched with street maintenance.
B. Storm Water capital projects will now be accounted for in a separate improvement fund, similar to
street improvement projects, for the same motivation as "A" above.
C. Accounting for the purchase, maintenance and replacement of police vehicles will not occur in this
fund, according to State Auditor guidelines. Purchases and maintenance had previously been accounted
for in the Law Enforcement Department of the General Fund.
D. Formed in 2012, this is the first year that the City has accumulated sufficient funds for the Transportation
Benefit District to fund residential street projects.
12
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