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HomeMy WebLinkAbout07-25-2011 - Supplemental Materials2011 & 2012 Budget Overview January 11, 2011 July 25, 2011 Study Session The Washington State Auditor's Office and Association of Washington Cities strongly encourage the adoption of a Sustainable Budget for the Long Term. HISTORICAL VIEW REVENUE (REVIEW) • General Fund Operating Revenues experienced severe declines during the years: 2002, 2003, 2004, 2009 and 2010. • The "Historical View of General Operating Fund" shows historical trends and volatility of significant Revenue Source items. — Property Tax Revenues are either stable or show a steady increase over the 10 year period. — Sales Tax Revenues are volatile and hard to predict. Spending is dependent on economic factors. — Building Permit Revenues are also dependent on economic factors. — Utility Tax & Franchise Fee Revenue was opted at a rate of 3% for 2011, with an expiration date of 1 /31 /2012. HISTORICAL VIEW EXPENSE (REVIEW) • Expenditures have increased by 35% for the 11 year period from 2001 to 2011. -The increase of $1.3M in Expense over 11 years is primarily attributed to inflation increases, which impact salaries and cost of goods & services. CPI indexes averaged 2.5% per year from 2001-2010, and 3.7% from 2010-2011, which provides a basis for the historical increases. -The City added Emergency Preparedness and Lifeguard Services during this period which average $125K per year. •FTE's have remained fairly constant at 23-24 FTE's each year for 11 years HISTORICAL VIEW RESERVE FUND (REVIEW) The Reserve Fund has historically fluctuated between $917K and $2.3M for the 11 year period from 2001 — 2011. 2012 Budget Preparation (Update from Jan. 11, 2011 Council will develop an approach to address long-term sustainability of ongoing revenues and expenditures. • 1/11/11: Staff will research and draft Financial Policies related to Fund Balances, Reserve Fund and Investments for Council consideration: 7/25/11: Discuss Draft Financial Policies • 1/11/11: Council will provide policy direction for labor contracts as contracts are renegotiated. 7/25/11: CPI Index: 3.7% June 2010-2011 • 1/11/11: Staff will review the operational structure to identify expense reduction efficiencies. 7/25/11: 2012 Discussion: Personnel Costs vs Other Governmental Expenditures • 1/11/11: Council will direct staff to review additional revenue sources as needed. 7/25/11: 2012 Discussion: Business Licenses, extend/modify Utility Tax & Franchise Fee rate 3%/$300,000, REET Operations Funds of 35%/$276,000 �E . of M CITY OF MEDINA July 25, 2011 To: Donna Hanson, City Manager From: Nancy Adams, Director of Finance Re: Financial Policies Draft The enclosed Financial Policies Draft was developed using available resources from the Municipal Research and Services Center (MRSC) of Washington; the Government Finance Officers Association (GFOA) of the US and Canada "Best Practices Recommendations"; and examples of Washington State Cities Financial Policies. Decision Points that will be necessary to discuss are: • The General Accounting Standards Board (GASB) changes for 2011 that necessitate Management and Council to determine the nature of how our current Reserve Funds will be tracked and maintained going forward. Policy guidance will facilitate this change. • Council Priorities need to be addressed within the context of the Financial Policy Document. Council set priorities will drive the process of policy development. • Investments: The Management recommendation is to continue to invest in the Washington State Local Government Investment Pool. A sample investment policy is included as an option for discussion as an Attachment to the Policy Document. City of Medina, Washington Financial Management Policies General Financial Goals: Ensure a financial base that is sufficient to sustain City of Medina Municipal Services, able to withstand local and regional economic challenges, able to adJ40 ,,changes in service R V requirements and maintain sound fiscal policies in support gf# a goals. Financial Management Policies: The Financial Management Policies assembles at t City's finariciAl rpolicies in one document. They are the tools to ensure that the City is fm ,qO, y able to meet its trrii' a and long-term service objectives. The individual policies contatl herein serve as guid`6`6es for both the financial planning and the internal financial management oper,ns of the Ctty�k The City of Medina is accountable to s,p ',Zens for the pf public dollars. Mu ipal resources must be used wisely to ensure adequalt#,,,,f for the services, public facilities, and infrastructure necessary to meet the coriftntt esent an re needs. These policies safeguard the fiscal stability,� uired to ac eve the foals �t , Jectives. Policy Objectives yaa The Financial Managerri licies %ve the folj fng objectives for the City's fiscal performance: • Guide CttC cil a • Es blish operatiri cipl"pt minimizi a cost of government and financial risk. • Maintatn,revenue polithat ene adequate funding for desired programs, currently, as well as in future.22, • Promote sounclfnancial . agement by providing accurate and timely reporting information on th`�ia„i;ondition of the City. • Protect the City's credrf`rating and provide for adequate resources to meet the provision of any debt incurred by the City. • Ensure the legal use of financial resources through an effective system of internal controls. • Promote cooperation and coordination with other governments and the private sector in the financing and delivery of services with the goal of obtaining the best value for the tax dollar. 1 Budget Policies a. The annual budget will be designed in support of the Strategic Goals of the City and will focus on continual evaluation of the City's success at achieving the goals and policies it has set for itself. The operating budget is the City's comprehensive annual financial plan which provides for city services based on City priorities. b. The annual budget shall be developed consistent with state law and in a manner which encourages early involvement with the public and City Gpt�rcil. c. The City Council will establish municipal service level priorities for the ensuing year prior to and during the development of the prelim;i, budget. d. The City will maintain a balanced budget. A balad bum is defined as current revenues + plus fund balances are = equal to or grew an current b d eted expenditures. e. The Finance Department will maintain for monitoring t�City's budget performance. The system will provide tuncil with month, d/or quarterly 16 information in a timely manner at the fund by revenue resources nd department level expenditures. f. Under the provisions of state ai and the City's 6eng procedures, the budget is adopted at the fund level. Adjus e� +�r reallocatibj 9.,of existing appropriations within the il fund level, which do not change t�bottore of the? may be done administratively and do not require Council action additions r reductido of fund level appropriations, which change th!,,. of the f d, rmend"nt of the budget and City Council action� ,� rdina , ���` e'a nations requested after the original budget is g. Supplemental b i' et appro� tions (app adopted) will be stetted mrfhe form of a Widget Amendment and will be considered as a result of the avaiIabii ues h. Thei\ nual btxdwill p _e for tf1nstruction, maintenance and replacement o City's Capffi ciliti� d equ�pm � onsistent with the Capital Facilities Plan/ Com , rehensive Pla apital` �ipr�ovement Plan, including the associated cost for operating the f6cMes. .10NI, i. The City wOt maintain all 4o'. at such a level that it protects the City's capital investment and ture mai ance and replacement costs. j. The City will ddVoop ar4ipment replacement and maintenance needs list by department for the life cycle ment and will utilize this list during the annual budget development process k. Small and attractive assets: accurate inventory of all physical assets, their physical location, and serial numbers/asset id numbers will be maintained at the direction of the Finance Department to ensure proper stewardship of public property. I. Fixed assets: inventories of larger physical fixed assets costing more than $5,000 and having a useful life of more than one year, will be maintained on a Fixed Asset Schedule and will be updated as the property is added, retired or sold. Reserve Fund Policies Adequate reserve levels are a necessary component of the City's overall financial management strategy and a key factor in external agencies' measurement of the City's financial strength. General Fund Operating Balance: 25% Fund Balance ($1.25M in 2011 The City will maintain General Fund Operating Balances at a level of 25% of the Total General Fund Budgeted Expenditures. The GFOA recommends at a (1h1um, that general purpose governments, regardless of size, maintain a minimum of tw( fthths of General Fund Operating W Expenditures (16. 6%) in their Unrestricted General Fundy � e Historically, over the past 10 years, the lowest Balance of the General Fund was $ The General Fund Operating Balance shall be flow to meet the daily financial operations nee( In general, the City shall endeavor to support ongoi use General Fund Operations Balanc �'o a one-time ��� development of a longer term financiiw0ion, The General Fund Operating Balance s of being unable to sustai policy level stated abo fund balance level. ,, Budget surpluses in the GLoeraI F operations ar,WAA\\ \expendi General F>z ci Resery ount I are su b) The'Whas made aIJd%termin sufficiebsupport budgeted the and maintained o provide sufficient cash with ongoin§venues, but may support City serAis pending the in aer that puts the City in danger Fund rating Balance falls below the rye a long term plan to replenish the nce may be used to fund one-time apital Improvement Plan, or placed into the ining after all current expenditure obligations are met. that revenues for the ensuing budget year are General Fund Operating needs. A surplus is defined as d1 OrOb a between the actual beginning fund balance and budgeted beginning fund balancets of under -expenditures and/or excess revenues over and above the amounts included In the following annual budget. General Fund Reserve Account: 20% Account Balance ($1M in 2011) The City may elect to maintain a Reserve Account within the General Fund to sustain City services in the event of a catastrophic event such as a natural/manmade disaster (e.g. earthquake, windstorm, flood, terrorist attack) or a major downturn in the economy. All expenditures which are transferred into and out of the Reserve Account, shall either be authorized by City Council during the annual budget process, or shall require separate City Council approval. 3 Equipment Replacement Account: The City may elect to maintain an Equipment Replacement Account for the purpose of funding fleet maintenance (police and public works) or a capital equipment reserve for the purpose of capital asset replacement. UJIn1f The City may elect to maintain a Capital Reserve Account Plan. Revenue Policies a. To the extent possible, a diversified and to improve the City's ability to, dp flu to the Capital Improvement ystem will be,�intained in order dual revenue sees. b. Revenue forecasts should b.....-based on the best information available. The City will take es are subject to local and regional economic activities. c. Short-term (lesol"',n on�r) econ%J LUrri� temporary gaps in cash flow: Expense reduce and/or frictionse imposed `"'Council may approve a transfer from the Generaltid,Rese Account t dress a temporary downturn in City . a�e _ d. l�o "'term (gre if, an one ar) reverts ownturns: Revenue forecasts will be revised. Ex�pses will be re d to he,tp stabilize the long term impacts and/or revenue increases will fj considere UM v e. All potent*"rants shall f Carefully examined for matching requirements. Some grants may not be accepted if the}kcal matching funds cannot be justified. Grants may also be rejected if prog continued with local resources after grant funds are exhausted. Prior ta��pproval, future expenditure impacts (e.g. ongoing repairs and maintenance) should tie identified and communicated to management. f. The City will set fee schedules at levels sufficient to cover the entire cost of service delivery. The City will systematically review user fees and consider adjustments as necessary to take into account the effects of additional service costs and inflation. g. The City will review contracts and leases, which result in revenues to the city on a timely basis in order to ensure approval by the Council and ongoing revenue streams. 4 Expenditure Policies a. The City budget will provide for sustainable levels of service. b. The City will propose only those operating expenditures, which can be supported from on- going operating revenues. c. The City's operating budget will not use one-time revendiiilo support ongoing expenditures. Before the City undertakes any agreets that would create fixed on -going expenses, the cost implications of such agreemen-svm vfully determined for current and future years. Capital expenditures may be funoem or rime revenues, but the operating budget expenditure impacts of c ''expendituresti* �l be reviewed for compliance with this policy provision. d. Department heads are responsible for ma�g their fgdgets with` total appropriation for their department. e. The City will maintain expenditure cgories acco to state statute and administrative \ \ regulation. vv f. All compensation and eve barwill fo�on the total cost of and coll v� �y compensation, v �*Mi es direct fiery, k� ` ene its, pension contributions, education, tra�iallowan and othe�'ts of a n'alary nature, which are a cost to v� the City. �`vx `w \ \ w\ ,char#ry\f'olicies v a. Thity will follow stO e laws,do pted resolutions, ordinances and policies regarding procurement. b. The Director �f_Finance shM develop detailed procedures for purchasing, credit card usage, expense authoikation and/or contract management activities. c. Federal funds or Gtts$When procurement involves the expenditure of federal funds or grants, the purchase shall be conducted in accordance with any applicable federal/grant laws or regulations. When purchasing items to be reimbursed by a grant, the purchaser will perform the due diligence required to ensure that the purchase meets the criteria of the specific grant prior to initiating the purchase and requesting a release of City funds for the purchase. d. Emergency Procurement: The City Manager or designee may make or authorize others to make emergency procurements of materials, supplies or equipment or services when a threat to public health, welfare or safety exists. State laws relating to emergency purchases will be followed. 5 Capital Investment Policies a. The City will make capital improvements in accordance with an adopted Capital Improvement Plan. b. It will be the policy of the City to maintain a Capital Facilities Fund to provide funding for future facilities including debt repayment. The use of any funds within the Capital Facilities Fund will be as approved by City Council. c. The Capital Improvement Plan and the base budget v�ifib"b"reviewed at the same time to ensure that the City's capital and operating needs atelnded and that the Capital Improvement Plan is aligned with the City's othens. d. The City will identify the estimated costs a ,�ential fundirlources for each capital project proposal before it is submitted to cil for approval. e. The City will comply with state and local (REET) Revenue. Accounting, Auditing and Financial R4 The City will maintain a 111- y �nancial r funds in order to Provo „e festive rii ans of Accounting Records an& with state a � I reguI Accountir �a01 State Aoftr's Office financial 66My by fund tyr Auditing: The C,,shall Washington State Apt Financial Report. Th compliance audits on ar timely manner. of RearE Late Excise Tax and 'reporting for all operations and at ove ity goals and objectives are met. g ��e City will ntain its accounting records in accordance acc6 ng and reporting will conform to Budgeting, t� ARS) fj0ov rents as prescribed by the Washington o��ly and ar n inancial reports will present a summary of will"�rovided to the City Council. I submit'°in a timely manner, the Annual Financial Report to the accordance with the standards established for the Annual hate Auditor's Office will perform the City's financial and is. Results of the audit will be provided to the City Council in a The Finance Department will develop, maintain, and consistently seek to improve cash management systems and processes which will ensure the accurate and timely accounting, investment and security of all cash assets. Cash received will be deposited in a timely manner and monies will be safeguarded (e.g. kept in a safe) until they are deposited. The City will establish a Petty Cash Fund in the amount of $200. The Petty Cash Fund is to be used solely for the purpose of making payment and/or small reimbursements for city related purchases. M. Debt Policy The City will maintain adequate available debt capacity for specific priority projects. (See Attachment A as an option) Investment Policy The City will use the State Investment Pool for all funds not requif-,ed for cash flow. (See Attachment B as an option) 7 Attachment A Debt Policies The objectives of the City's Debt Management Policy will be to minimize the need for debt by maintaining strong revenue sources which meet or exceed expenditures. Debt may be utilized to address short-term cash flow needs and/or to finance significant capital or other obligations. Debt will not be used to fund long-term revenue hortages. City Council approval is required to approve the issuance of debt. Current Operations will not be financed with long term term debt arises, the term of the long term debt will nQ When evaluating the use of non -voted Councilr obligations, an analysis shall be performed to d payments, taking into account revenue fluctuations Debt may be considered where the Di�,ector of Fine projected discretionary revenue to s� "e debt delivery or programs. event that the need for long * of the projects financed. rt and the asted debt service the City's ability`ake debt service �,_� ciate�, ttth periodic*0pomic cycles. pn 4 ristrate that th*pis sufficient Or N urupting the City's existing service Voted and non -voted Councilmarnc Debt Willbe u �udently rr a manner to avoid an adverse impact on the City's cre � � ability t6*u su ct or ar, ,!R l debt. � %k K Upon the issuance of debt, the rector of� will estash the appropriate procedures to �% assure compliance with ��debt cnants antlicable federal, state and local laws, policies and regulations , .� 12 In the evtiat the u� debt quired,th vutl raise capital at the lowest cost, consistent with thel*0�0 to borrow. Ifi, fwill b�f omplishei'by keeping a high credit rating, and maintaining a good repo#won in the credyrrkets b managing the annual budget responsibly. 9 Attachment B Investment Policies Policy: It is the policy of the City of Medina to invest public funds in a manner which will provide the maximum security of the principal; meet the daily cash flow demands of the City; provide the City with the highest investment return and conform to all Was hington statutes governing the investment of public funds. Scope: This investment policy applies to all financial escrow and retirement funds managed by otl accounted for in the City's Annual Financial I Objective: The City's investments will be in corr*1iao,ith all for public funds in the State of Washin*, in�r Washington (RCW) 35A.4050. The primary obje Safety: Safety of` pt of the City shall be l of cp�tal try t# aver. 4P, "that pote6t frd� \e remainders Liquidity The City's i to meet alrating Return on Inves" objective of attains constraints and the er, of v f the City eft: for assets held in ch as the state.ty financial assets are att„governing the eligible investments nce#the Revised Code of activities shall be: cipal is he forem pbjective of the City of Medina. Investments ", ertaf 1h such a rNO ner that seeks to ensure the preservation lifolio. Ttain th�objective, diversification is required in >ses ���individuat s+�urities do not exceed the income generated the D &o. folio will remain sufficiently liquid to enable the City which might be reasonably anticipated. City's investment portfolio shall be designed with the (et rate of return taking into account the City's risk flow requirements. The Finance Director shall be responsible for all transactions undertaken and shall establish a system of controls to regulate all investment activities, and report promptly to the Council any adverse development with any investment. s:7 Ethics and Conflicts of Interest: Anyone involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and Council Member officials shall disclose to the City Manager and the City Council any material financial interests in financial institutions that conduct business with the City, and she/he shall further disclose any personal financial/investment positions that could be related to the performance of the City's portfolio. Employees and Council Member officials shall subord inate"f 'personal investment transactions to those of the City, particularly with regard tc�%e time of purchases and sales. Authorized Financial Dealers/Institutions: Authorized broker/dealers and financial instituiW ,will be the Finance Committee and meet one or more o'f0ll0" • Financial institutions a ` "r d by the Commission (RCW 39 • Primary • Non pry Commis ofthe N At the retest of the C serviceMi,the City shall Report ofbition ("call Authorized Investme nized,bv the to thosi�t are approved by Public Deposit Protection nk; or, ilersualifiedhe U.S.'Saourities and Exchange le 1-1, the Ufftffl, rm Net Capital Rule, and a certified member ks M I'l;,of Se it es Dealers. for ors and dealers performing investment financial statements or Consolidated The City may invest in a6' § , e securities identified as eligible investments as defined by �, RCW 35A.40.050. In general, these consist of: Investment deposits (certificates of deposits) with qualified public depositories as defined in Chapter 39.58 RCW. Certificates, notes or bonds of the United States, or other obligations of the United States or its agencies, or of any corporation wholly owned by the government of the United States (such as the Government National Mortgage Association). Obligations of government -sponsored corporations which are eligible as collateral for 10 advances to member banks as determined by the Board of Governors of the Federal Reserve System. (These include but are not limited to, Federal Home Loan Bank notes and bonds, Federal Farm Credit Bank consolidated notes and bonds, and Federal National Mortgage Association notes, bonds and guaranteed certificates of participation.) Bankers' acceptances purchased on the secondary market. Bonds of the State of Washington and any local govl#,ent in the State of Washington which have, at the time of investment, one of the tbighest credit ratings of a nationally recognized rating agency. Repurchase agreements for securities bst�i 2, 3 and 4ove, provided that the transaction is structured so that the Cit�ledina obtains �coitol over the underlying V S securities and a Master Repurchase A§*ement has been sign with the bank or dealer.` The State of Washington Loca ernment B ent Pool. For a complete list of eligible i visit: httD://www.tre.wa.aov/d Safekeeping and All security trans kct ans, inch for City of Medjfta; shad tecondu e on a del" by a th4party custodial signs "y the Fir Certificates o held in the Fin Diversification: publidO"s in the state of Washington, se agreements, entered into by the c)avment basis. Securities will be held Director. in the ma's name Qr confirmations of them, will be delivered to and The City will diversify its iiestm-ents by security type and issuer. With the exception of U.S. Treasury and Agencies of the United States government, and the Washington State Local Government Investment Pool, no more than 50% of the City's total investment portfolio will be invested in a single security and no more than 25% will be invested with a single issuer. Maximum Maturities: To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, or restricted by State Guidelines, the City will not directly invest in securities maturing more than five (5) years from the date of purchase. The average maturity will be consistent with the liquidity objective. However, the 11 City may collateralize its repurchase agreements using longer -dated investments not to exceed 10 years. Internal Controls: The Finance Director shall establish a process of independent review by an external auditor on an annual basis. This review will provide internal control by assuring compliance with policies and procedures. The review may also result in recommendations to change operating procedures to improve internal controls. ,�` Performance Standards: The City's investment portfolio will be desig commensurate with the City's investment ri portfolio. Average Rate of Return: T an average rate of return is Treasury Note. Investment Strategy: The City's current i and sold within the Director will,be�64lls, Reporting: The Finance Direct monthly financial re Investment Policy Adoption of is co Man "g,ith the objective opining a rate of return k b"I"o-Wraints and cash floWpracteristics of the c sed by th tIll, nce Director to determine whether 1leyed will 2 year average of the 2 year U.S. As a result, securities are purchased to Investment Pool. The Finance strategy and changes to the current City Council. what investment information will be included in the The City of Medina's Investment Policy shall be adopted by resolution of the City Council. Any modifications to the Investment Policy must be approved by the City Council. 12 2012 Comparative Summary by Fund July Study Session DRAFT 2008 2009 2010 2011 2012 DESCRIPTION Actual Actual Actual Budget Draft Budget GENERAL FUND BEGINNING FUND BALANCE $ 2,839,677 $ 3,163,000 $ 2,324,925 $ 1,535,673 $ 1,611,636 REVENUES 5,556,448 4,365,285 4,482,868 5,041,334 4,803,701 OPERATING TRANSFERS -IN - - - 1 200,000 4,533,125 4,593360 4,725,358 4,920,371 5,071,283 EXPENDITURES OPERATING TRANSFERS -OUT 700.000 610:000 546,762 245,000 250 000 ENDING FUND BALANCE $ 3,163,000 $ 2,324,925 $ 1,535,673 $ 1,611,636 $ 1,094,054 EQUIPMENT FUND BEGINNING FUND BALANCE $ 71,680 $ 5,748 $ 5,748 $ 10,696 $ 10,6% REVENUES 12,285 - - - OPERATING TRANSFERS -IN - - 118,762 - - 78,217 - 113,814 - EXPENDITURES OPERATING TRANSFERS -OUT - - - - ENDING FUND BALANCE $ 5,748 $ 5,748 $ 10,696 $ 10,696 $ 10,696 STREET FUND BEGINNING FUND BALANCE $ 230,539 $ 79,639 $ 93,420 $ 131,255 $ 99,253 REVENUES 67,544 139,285 64,330 133,000 133,000 OPERATING TRANSFERS -IN 200,000 280,000 328,000 245,000 250,000 418,444 405,505 354,494 411,002 420,490 EXPENDITURES OPERATING TRANSFERS -OUT - I - I - I- ENDING FUND BALANCE $ 79,639 $ 93,420 $ 131,255 $ 98,253 $ 60,773 RESERVE FUND BEGINNING FUND BALANCE $ 1,776,380 $ 2,276,380 $ 2,276,380 $ 2,276,380 $ 1,876,380 REVENUES - - - - - OPERATING TRANSFERS -IN 500,000 - - - - - - - _ EXPENDITURES OPERATING TRANSFERS -OUT - - - 400,000 $ 2,276,380 $ 2,276,380 $ 2,276,380 $ 1,876,380 $ 1,876380 ENDING FUND BALANCE TREE FUND BEGINNING FUND BALANCE $ 83,322 $ 16,932 $ 23,770 $ 24,674 $ 10,674 REVENUES 39,678 9,700 1,082 1,000 1,000 OPERATING TRANSFERS -IN - - - - EXPENDITURES 106,068 2,862 178 15,000 10,000 OPERATING TRANSFERS -OUT - I - I - I- ENDING FUND BALANCE $ 16,932 $ 23,770 $ 24,674 $ 10,674 $ 1,674 CAPITAL PROJECTS FUND BEGINNING FUND BALANCE $ 1,327,938 $ 1,483,060 $ 1,538,868 $ 1,551,086 $ 286,925' REVENUES 414,736 494,903 438,661 905,664 675,000 OPERATING TRANSFERS -IN - 330,000 100,000 200,000 259,615 769,095 526,442 2,369,825 488,000 EXPENDITURES OPERATING TRANSFERS -OUT - I - I - I - - ENDING FUND BALANCE $ 1,483,060 $ 1,538,868 $ 1,551,086 $ 286,925 $ 473,925 TOTAL ALL FUNDS BUDGET BEGINNING FUND BALANCE $ 6,329,536 $ 7,024,759 $ 6,263,111 $ 5,529,765 $ 3,894,563 REVENUES 6,090,691 5,009,173 4,986,941 6,080,998 5,612,701 OPERATING TRANSFERS -IN 700,000 61Q000 546,762 645,000 250,000 EXPENDITURES 5,395,469 5,770,822 5,720,287 7,716,198 5,989,763 OPERATING TRANSFERS -OUT 700,000 610,000 546,762 645,000 250 000 $ 7,024,758 $ 6,263,110 $ 5,529,765 $ 3,894,565 $ 3,517,502 ENDING FUND BALANCE 7/25/2011 Medina City Council 2011 Strategic Goals Adopted 4-11-11 The following izoals are not listed in priority order but reflect the City Council's Strategic Goals for roughly the next five to ten years. A. Highway 520: Protect Medina's interests impacted by SR 520 construction related to lid design, region wide tolling, transit, park and ride, noise walls, 84t' Ave. and control of land use adjacent to the 520 right-of-way B. Local Traffic: Develop a plan and implementation strategies for traffic safety and calming, which may include more visible entry points into the City, to discourage speeding and cut -through traffic and encourage safe pedestrian and bicycle access C. Public Safety: Reach a full complement of police staff and promote public safety through policies that support education, emergency preparedness, and effective and efficient use of technology in order to maintain a safe and secure community D. Facilities and Infrastructure: Develop and implement a capital improvement plan that identifies needed projects and financing strategies for maintenance and upkeep, public works shop, park expansion, underground utilities, pedestrian walkways and trails, and storm water improvements E. Land Use: Ensure that Medina's Comprehensive Plan, building and zoning codes protects the natural suburban environment and the quality and character of the City through processes that are clear and well understood and serve both owners and neighbors F. Finance: Ensure a sustainable budget whereby ongoing revenues meet ongoing expenditures though the development and maintenance of sound financial policies to include but not limited to maintenance of appropriate fund balances. G. Communications: Maximize public awareness and involvement in City business and ongoing issues with continuous evaluation and improvement of communications strategies using industry standards in order to deliver timely information regarding city services, programs, and events. General Fund Overview 2011 and 2012 GENERAL FUND REVENUE 2011 BUDGET 2012 BUDGET ASSUMPTIONS: REVENUE: Property Tax $2,410,929 $2,463,969 2012: Average last 5 years at 2.2% increase Sales Tax $1,000,000 $1,000,000 2012: No indication that spending will increase in 2012 Criminal Justice $59,935 $59,935 2012: Assumes Flat for 2012 B & O Tax: Utility & Franchise Fee $300,398 $89,000 2012: 4th Qtr 2011 will be received in 2012 Licenses & Permits $486,500 $486,500 2012: Same level as 2011 Intergovernmental $409,092 $321,043 2012: Shoreline Grant ends, adjusted Hunts Point actual Planning & Develop., Passport $206,000 $238,254 2012: Dev Revenue $194K, Passport/Law Enf $12K Fines, Penalties, Traffic Infr. $130,000 $110,000 2012: Based on last 4 years trends, 2011 actuals Misc. Investment, Leases $38,480 $35,000 2012: Assumes Wireless Lease, flat to 2011 actuals GENERAL FUND REVENUE TOTAL, $5,041,3341 $4,803,701 Utili Tax expires on 1/31/2012 GENERAL FUND EXPENSE 2011 BUDGET 2012 BUDGET ASSUMPTIONS: EXPENSE: POLICE Police Personnel $ 1,425,270 $ 1,425,270 Salaries & Benefits: No CPI, STEP, or Medical Increases Police Other Services $ 681,545 $ 732,825 Office Exp, Vehicle,NorCom, Marine Patrol, Jail, Mun. Court, Prosec. Atty, Emer Prep, Lifeguard, 1 Police Car Police Total Expense: $ 2,106,815 $ 2,158,095 Mun. Court, Police, Emergency Prep, Lifeguard ($45K Police Vehicle Increase) FIRE/MEDICAL Contracted Services $ 719,999 $ 719,999 Assumes flat for 2012 based on negotiations Fire Total Expense: $ 719,999 $ 719,999 GENERAL GOVERNMENT General Gov't Personnel $ 1,189,867 $ 1,189,867 Salaries & Benefits: No CPI, STEP, or Medical Increases General Gov't Other Services $ 903,690 $ 887,055 Leg., Exec, Fin., Central, IT, ARCH, Pug. Sound Clean Energy, Planning & Dev., Parks General Gov't Total Expense: $ 2,093,557 $ 2,076,922 Leg., Exec, Fin., Central, IT, Planning & Dev., Parks $10K Devel Decrease) GENERAL FUND EXPENSE TOTAL: $ 4,920,371 $ 4,956,016 Potential added 2012 Personnel cost: AWC Medical 9% Increase $ 30,766 AWC Medical 9% Increase CPI Jun'10-Jun'f 1 is 3.7% $ 66,603 CPI Jun'10-Jun'11 is 3.7% STEP & Longevity: Exempt $ 11,170 STEP & Longevity: Exempt STEP & Longevity: Non -Exempt $ 6,216 STEP & Longevity. Non -Exempt Longevity: Individual Contract $ 1,512 Lon evity: Individual Contract Total Increases for 2012: $ 116,267 AWC Medical, CPI, STEP, Longevity (Includes increases for Street Fund Salary/Benefits) GENERAL FUND EXPENSE TOTAL: $ 4,920,371 $ 5,071,283 GAP: 1 $120,963 $ (267,582) Including potential added personnel costs Study Session: July 25, 2011 Draft Budget 2012 Draft 2012 Budget Calendar City of Medina, Washington Statutory Planned Dates Dates 2011 Budget Process No legal March 28, 2011 Council Retreat to update 2011 Strategic Goals requirement July 31, 2011 June 14, 2011 Council holds Public Hearing on Capital Improvement Plan July 31, 2011 July 11, 2011 Council approves Caital Improvement Plan Sept.13, 2011 Aug. 1, 2011 Department Directors begin preparing 2011 Budget Requests. No legal July 25, 2011 Council holds Study Session to analyze 2011 requirement Expenditures and Revenues to pr9yide direction for 2012 budget ,preparation No legal Aug. 8, 2011 Council holds;Preliminery Public Hearing to gather input requirement aon 2012 Bud et,, Oct. 1, 2011 Aug. 20, 2011 ' -Department Directors 2012 Budget requests submitted to'Finance Directoratid City Manager. Oct. 4, 2011 Sept. 12, 2011 City Managerprovides'the 2012 draft Preliminary budget to the City Council inclu ing yearend 2011 Revenue and Ex erditure projddtions No legal Sept:" 26, 2011 Council holds a studysession on 2012 Preliminary requirement Budget, Nov. 1, 2011 Oct." 10, 2011 City Manager files 2012 Updated Preliminary Budget & ,,,Budget Message with the City Clerk and the City Council. Priorto Oct._10, 2011 Council holds Public Hearing on Preliminary Budget November 30, 2011 No legal Oct. 24,' 2011 Council holds a work session on 2012 Final Budget requirement No later than 0 t. 25 And City Clerk publishes notice of filing of 2012 Preliminary Nov 1 though Nov. 1, 2011 Budget with the City Clerk and publishes notice of public Nov. 13, 2011 hearing on final budget once a week for two consecutive weeks Nov. 19, 2011 Nov. 14,' 2011 Copies of proposed final budget are made available to the public at the Regular City Council meeting Nov. 30, 2011 Nov. 14, 2011 Council holds final public hearing and sets the 2012 Property Tax Levy to certify property tax levy to King County Assessor's Office Dec. 31, 2011 Nov. 14, 2011 Council adopts Final 2012 Budget at the Regular Monthly City Council meeting. After Adoption As soon as final Copies of 2011 Budget are available to the public and document is filed with the Washington State Auditor's Office, MRSC, printed. AWC, and Bellevue Library. Council Study Session: July 25, 2011 MEDINA CITY COUNCIL MEETING AGENDA BILL SUBJECT/TITLE: NE 12TH STREET/LAKE WASHINGTON BLVD. GATEWAY STREET LIGHT AND ENTRY SIGN CATEGORY: ❑ Consent ❑ Ordinance ❑ Public Hearing X City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: JOE WILLIS BACKGROUND/SUMMARY: In 2009, the Council in response to neighborhood complaints of excessive speeding, limited sight -distance for driveway access, and the difficulty residents have in crossing the street authorized Transpo Group to conduct a traffic safety study of the NE 12th Street/Lake Washington Blvd. arterial corridor. The study indicated that 27 to 36 percent of the vehicles that travel on the arterial street exceed the posted 25 mph speed limit by at least 5 mph. Council authorized Transpo Group to then proceed with the development of options to address the safety issues. Following an open house held in September of 2009 for residents of Medina and Clyde Hill where design elements were presented and discussed, the Council selected a preferred option that included center landscaped medians to reduce the wide arterial street appearance to clearly identify to drivers that they were entering a residential community. In May of 2010, the Council authorized Transpo Group to prepare the design for the preferred option for NE 12th Street/ Lake Washington Blvd. Traffic Safety Improvement Project. The first phase design includes the installation of a landscaped gateway island at 88th Ave NE, pedestrian activated flashing crosswalk signs, brick pattern crosswalk, new street light and Medina entry sign installation, roadway restriping to create a center turn lane along Lake Washington Blvd from 881h to 86th Ave NE, and a landscaped median at 86th Ave NE. Council awarded this first phase in March of this year. In July of 2010 Colie Hough -Beck of HBB Landscape Architecture presented alternative concepts for the projects gateway treatment and landscaping to the Council. The Council selected the attached concept rendering as marked up by Colie during the study session. The search for a comparable street light has resulted in a recommendation that a Cyclone Lighting street light proposed by PSE be installed at the gateway. The PSE proposal will not require a stand-alone electrical street light controller or meter, and following an initial installation cost of $17,000 it will be operated and maintained by PSE at the established street light monthly charge of approximately $20 per month. In addition, the existing street lights around the City upon need of replacement, could be replaced with this style of fixture. With the infusion of $18,400 from King County Parks Levy Prop 2 funds for the construction of the bicycle lane linkage provided in the corridor project design, the street light cost can be coved within the current allotted project budget. In addition to the gateway street light, Colie will present several entry sign treatment concepts for Council consideration. Council Study Session: July 26, 2011 Attachments: Median & City Entrance Gateway Concept Cyclone Lighting Street Light \ti Median Gatewa HBB June 2010 1.111.1. 1- ll," ay�o� kv A7 �ko q4vo SHOULDER SIDEWALK Median & City Entrance Gateways TOP VIEW Z-10' ~— (0.9m] tD IN4 �I 4 19 1/2' (49cmj' LUMINAIRE DIMENSIONS w IL1 _ � W J u H O O a 0 6� �CL4IRAGE MEDINA - Mediane & City Entrance Gateways o Pce #: CL41 P1-P1003P1ge. Cyclone .N ® CL41P1 > Ech/Sc: 1/4-l'-o" Designer: M.Sovory TEL: 450-434-5000 PRESENTATION FAX:450-434-5001 Date: 18 Mai 2011 Note: