Agenda Information Sheet
DEPARTMENT: Finance
ACM: Bryan Langley
Date: August 4, 2016
SUBJECT
Title
Receive a report; hold a discussion, and give staff direction regarding the FY 2016-17 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast.
Body
BACKGROUND
The FY 2016-17 City Manager’s Proposed Budget is submitted to the City Council as Exhibit 1. The information provided in the Proposed Budget has been derived from a culmination of input from the City Manager, City Council, Public Utilities Board, service level demands, department requests, and miscellaneous economic assumptions. The Proposed Budget includes summary information concerning the following items:
• FY 2015-16 year-end revenue and expenditure estimates
• Proposed FY 2016-17 Tax Rate
• Proposed FY 2016-17 Operating Budgets by Fund
• Proposed FY 2016-17 Utility Budgets and proposed rates
• Proposed five-year financial forecast for the major funds
• Proposed five-year planned capital improvement program
A copy of the five-year financial plan for each major operating fund is included in the proposed budget document. Each of the utility fund plans have been reviewed by the Public Utilities Board (PUB), and the PUB has recommended approval of the Electric, Water, Wastewater, and Solid Waste budgets.
The Electric Fund proposed operating budget and five-year financial plan has been provided to you under a separate cover. Due to the confidential nature of this information, it may be necessary to enter a Closed Session discussion with the City Council should you wish to discuss it in detail.
I have included in Exhibit 2 a summary of the supplemental funding requests submitted for the General Fund and other select funds. The summary indicates the packages that were requested by departments and those that have been recommended for approval by the City Manager. For the recommendations that are being proposed out of funds other than the General Fund, a footnote and legend has been provided to indicate the specific funding source for these items. Additionally, Exhibit 3 provides a compensation analysis for the Fire and Police Departments as required by the City’s meet and confer agreements.
As discussed in the Proposed Budget, rate increases are planned for the Water, Wastewater and Electric utilities. In addition, rate increases are also proposed for Solid Waste services. Exhibit 4 is a redline summary of the various rate ordinances (Water, Wastewater, Electric and Solid Waste) which have been recommended for approval by the Public Utilities Board. Exhibit 4 also includes an ordinance of Park and Recreation fee changes that have been recommended by the Parks, Recreation and Beautification Board.
The proposed budget is based on the City’s Strategic Plan. Enclosed is Exhibit 5 is a draft of the proposed Strategic Plan for FY 2016-17. This draft also includes strategic outcomes along with proposed key action steps and performance outcomes for the coming year. It is anticipated that the Strategic Plan for FY 2016-17 will be presented for adoption by the City Council on September 20, 2016.
The City Council asked several questions and requested a variety of information at preliminary budget meetings. Exhibit 6 is memorandum that summarizes these questions and gives staff responses and associated analysis. Also included in this memorandum are citizen budget submissions that have been received to date. We will continue to send additional citizen submissions to City Council as they are received.
The purpose of this work session is to discuss this information and provide the City Council with detailed information concerning the proposed budget. This work session item is intended to provide a forum for discussions with management and allow an opportunity for questions. The PowerPoint presentation concerning the proposed budget is included as Exhibit 7 and will be used to facilitate a discussion of the Proposed Budget.
Below is the schedule we will follow to adopt the budget and tax rate:
August 9 Vote to Call Public Hearings on Proposed Tax Rate
August 23 1st Public Hearing on Tax Rate
September 13 2nd Public Hearing on Tax Rate
Public Hearing on Proposed Budget
September 20 City Council Adopts Budget and Tax Rate.
I look forward to discussing the City Manager’s FY 2016-17 Proposed Budget in detail with you. If you have any questions, or need additional information, please let me know.
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Organizational Excellence
Related Goal: 1.1 Manage financial resources in a responsible manner
EXHIBITS
1. FY 2016-17 City Manager’s Proposed Budget
2. Summary of City Manager Recommendations for Supplemental Funding Requests
3. Memorandum Regarding Civil Service Compensation
4. Proposed Utility Rate Ordinances and Park Fee Ordinance
5. Draft FY 2016-17 Strategic Plan
6. Budget Questions and Responses Memorandum
7. Presentation
Respectfully submitted:
Chuck Springer 349-8260
Director of Finance