Resolution No. 5176 - Laserfiche WebLink

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The FY17 Adopted Budget provides funding for current services, while adding a few additional services. However, the post-recession budget environment continues to be uncertain, and the six-year forecast does foreshadow a possible $1.0-$2.0 million gap that may arise in the future. The FY17 Adopted Budget includes increased service levels for library and cultural services after voters approved a five-year library local option levy last November to provide additional library services to the community. The levy will generate an estimated $2.5 million per year and support 18.40 full-time equivalent employees to provide additional services that are incorporated into the budget. The FY17 Adopted Budget also increases support for Cultural Services, the Community Justice Initiative, the Human Services Commission, CAHOOTS, Human Rights and Neighborhood Involvement, Sister Cities and creates a reserve account to begin funding work related to the World Track and Field Championships in 2021. FY17 General Fund budget changes total $2.2 million and non-general fund changes total $3.2 million. In March 2015, the City Council approved the FY16-21 Capital Improvement Program (CIP). The CIP forecasts the City’s capital needs over a six-year period based on various long-range plans, goals, and policies. The underlying strategy of the CIP is to plan for land acquisition, construction, and major maintenance of public facilities necessary for the safe and efficient management of City assets. A critical element of a balanced CIP is the provision of funds to preserve or enhance existing facilities and provide new assets which will help the City respond to changing service needs and community growth. The program is approved every other year and serves as the basis for the capital budget for the next two fiscal years. The FY16-21 CIP totals $171.2 million in projects with funding secured or identified from a variety of sources. The capital budget for FY17 totals $41.4 million. Transportation is the largest CIP category with a total allocation of $62.5 million, of which $54.5 million is dedicated towards pavement preservation and road maintenance. Airport capital improvements, including the terminal building expansion, Concourse C addition, automated rental car wash facility, access improvements and preservation and maintenance projects, will account for $42.1 million. About $21.6 million for public buildings will primarily be invested in preservation and capital maintenance of existing City facilities. Improvements to preserve and rehabilitate the City’s wastewater system will be funded with $15.9 million. Under the City’s stormwater program, drywell decommissioning, stream corridor acquisition, bank stabilization and stream restoration, and system upgrades and capacity enhancements are to be funded at $15.4 million. Approximately $13.7 million in anticipated capital spending will be for parks and open space projects. In January 2015, the City’s Executive Team reviewed the Multi-Year Financial Plan (MYFP) for FY16-21. The MYFP was subsequently provided to the Mayor and the City’s Budget Committee in April 2015 as part of the FY16 budget process. The MYFP is a compilation of significant, unfunded challenges and opportunities that the City is expected to encounter over the next six fiscal years. It serves as a strategic planning tool and helps address Council’s goal for “Fair, Stable, and Adequate Resources.” It provides an important means to improve the City’s ability to link the Council goals process, the Capital Improvement Program, the General Fund Six-Year Forecast, other projects or specific strategic plans, and the annual budget process. The FY16-21 MYFP identified 59 items with total estimated unfunded costs of about $450.0 million. Some of the largest unfunded costs by service category include $133.9 million for community centers, $82.7 million for transportation, $59.1 million for public buildings and facilities, $35.1 million for emergency medical/fire services, $32.8 million for Municipal Court, and $25.1 million for fleet and radio communications. Many of these items would also have ongoing fiscal impacts on the operating budget that would also need to be considered in order for the City’s budget to be sustainable. With the significant amount of future capital projects, as well as identified unfunded needs, the City also recognizes the need to be thoughtful and deliberate in planning future debt levels. As a result, the City has developed a Debt Capacity Analysis that is generally updated every two years in conjunction with the CIP update. This study looks at not just the legally allowable level of debt, but the level of debt that the community would consider affordable, given ttee adopted a debt policy limit of the community’s ability and willingness to pay for that debt. The Budget Commi net direct debt of no more than 1% of real market value of property. The Debt Capacity Analysis measures future debt plans against this debt policy limit to determine whether those plans are considered affordable and those results are included in the CIP. The City’s net direct debt to real market value was 0.07% at the end of FY16. 5