2016 Readoption BUDGET OVERVIEW

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1 2016 Readoption BUDGET OVERVIEW 1

2 $30,000,000 CHALLENGES FOR THE GENERAL FUND $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Revenues Expenses 2

3 CHALLENGES IN GF STRUCTURE $6,000,000 GF Fund Bal $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ GF Fund Bal 3

4 SOURCES OF FUNDING $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Taxes Lic. & Permits Intergovt. Charges for Srvs Fines & Forfeit. Misc. Rev. 4

5 $18,000,000 $16,000,000 SOURCES OF TAXES $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 Property Taxes are 75% of General Fund taxes collected. This revenue source may only increase by 1% per year. $2,000,000 $ Property Tax Sales Tax Franchise Gambling Priv. Timber Tax 5

6 SUSTAINABLE VS. DEVELOPMENT $25,000,000 $20,000,000 $15,000,000 10% 11% 10% 8% 9% 11% 14% 13% 13% 15% 16% 14% $10,000,000 $5,000,000 $ Base Revenue Growth Dependent 6

7 RATIO OF LABOR TO OPERATING COSTS 76% 75% 74% 73% 72% 71% 70% 69% 68%

8 SERVICE COST PER CAPITA $900 $800 $700 $600 $500 $400 $300 $200 $100 $

9 NUMBER OF CITIZENS PER FTE Washougal Fire Employees added

10 GROWTH IN EXPENDITURES $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Transfers Capital Intergovt. Services Supplies Benefits Salaries 10

11 NUMBER OF FTE Fire Comm Dev Police Public Works Parks Library Finance Adm. Srv Judicial Executive

12 FTE AND SEASONAL WORKERS FTEs Seasonal No Pool Seasonals

13 PAYROLL INCREASES $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 Salaries Benefits $2,000,000 $

14 COST OF LIVING INCREASES COLA by Employee Group Group Total Non-Rep 0.00% 1.00% 0.00% 3.00% 2.50% 2.50% projected 9.00% AFCSME 0.00% 1.00% 0.50% 3.00% 2.50% 2.50% 9.50% OPEIU 0.00% 1.00% 0.50% 3.00% 2.60% 2.00% 9.10% CPOA 0.00% 1.00% 0.00% 2.70% 4.00% 1.80% 9.50% IAFF* 0.00% 1.00% 0.00% 3.50% 3.00% 3.00% 10.50% CPEA 0.00% 1.00% 0.50% 3.00% 2.50% 2.50% 9.50% IAFF * In 2014, there was an adjustment to reflect the decompressing of the pay schedule created by merger ILA as well as an adjustment to reinstitute a 20% differential distributed evenly across the six steps. Additionally, all employees in the bargaining unit received a 1.25% increase in base pay. This overall equated to a wage increase between 3% and 4% depending on step - 3.5% is used as an average. 14

15 EMPLOYER SHARE PENSION COSTS INCREASES PERS 1/2/3 increased 5.87% over 5 years employees LEOFF 2 remained stable over 5 years 78 employees 15

16 MEDICAL PLAN INCREASES # Employees Total Regence 65% 11.00% 11.00% 6.00% 0.00% 5.00% 5.00% 38.00% Kaiser 35% 17.40% 6.20% 5.09% 5.94% 6.30% 4.90% projected 45.83% -1.2% 6.60% N o te: 2 014/ 2015 Ka iser rates r eflect b a r g a ining u n its set t ling c o n t r a c t w ith h igher d eductible p lans. 16

17 COST OF AVERAGE POLICE EMPLOYEE 2009 Police Officer Salary = $ 77,282 Overtime=$ 2,049 LEOFF = $ 4,016 Benefits= $ 23,064 Total $106, Police Officer Salary = $86,759* 12.26% Overtime= $ 2,804 LEOFF = $ 4, % Benefits = $30, % Total $126, % Includes Prem. Pay 1%, Education Incentive 3%, Master Patrol Of ficer 6.5% and Specialty Pay 1.5% 17

18 COST OF AVERAGE ENGINEER 2009 Engineer Salary = $ 57,297 Overtime=$ 0 PERS III = $ 3,893 Benefits= $ 18,786 Total $79, Engineer Salary = $76, % Overtime= $ 0 PERS III = $ 7, % Benefits = $23, % Total $107, % 18

19 PRESSURES IN BOTH DIRECTIONS REVENUES Property Tax Limitations Lack of Commercial Activity Shared Revenue Declining Fees are subsidized EXPENDITURES Employee needs COLAs and Healthcare costs continue to increase Pension Costs growing Debt service gaps ER&R rates not at costs 19

20 SIMPLE MATH Revenues on average are increasing 2.9% annually Expenditures on average are increasing 5% annually Fund Balance has declined on average 6% annually 20

21 STRATEGIES IMPLEMENTED Use of seasonal help Parks and Public Works Cost sharing with partners Fire and EMS, Municipal Court Restructuring Administrative Services, Finance, Community Development, Engineering Use of Technology Police, Building, Finance, Parks and Recreation, City-wide Budget changes including biennial budget, limiting supplemental budget adjustments, baseline budget with decision packages Revisiting financial policies and updating to Best Practicies 21

22 OTHER PRESSURES 22

23 PROGRAMS SUBSIDIZED Streets Preservation Maintenance Parks and Recreation Swimming Pool and Programming Recreation Programming Cemetery Maintenance Record Keeping Debt Debt Service for Street Projects, Fire, and Parks 23

24 STREETS GENERAL FUND SUPPORT $2,500,000 $2,000,000 Use of Banked Capacity $1,500,000 $1,000,000 $500,000 $

25 $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Revenues Expenses SWIMMING POOL SUPPORT 2009 $58, $79, $35, $48, $27, $32, $68,819 * * N o t a l l e x p e n s e s a c c o u n t e d f o r a t t h i s t i m e $

26 CEMETERY SUBSIDY $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $

27 GROWING CITY INVESTING IN INFRASTRUCTURE $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 GO Bonds Govt. Loans 27

28 NUGA REVENUES VS. EXPENDITURES $2,500,000 $2,000,000 Revenues include Property Taxes and State-Shared $1,500,000 $1,000,000 Expenditures are cost of services per capita at current service levels with modest inflation and population based on housing growth Revenues Expenditures $500,000 $

29 Budget Overview & Forecast September Capital - September Revenue Budget September Property Taxes Fee Schedule Equipment Rental & Replacement Recommended Budget October Public Input Nov Public Hearings Budget Approval Dec Property Tax Resolutions Fee Schedule BUDGET PROCESS 29