2020-2021 Operating Budget 2019-2028 Capital Improvement ... Presentations/2019... · 7/23/2019...

2020-2021Operating Budget

2019-2028 Capital Improvement

Program

July 23, 2019

Integrated BudgetsOperating Budget funds operational costs (staff) CIP funds long-term capital costsBoth plans focus on achieving City Council objectives

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Objectives in Budget Development

• Align to the City of Wichita mission

• Engage the community

• Fund service delivery excellence

• Ensure financial sustainability

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Align to the Mission

City Council mission statement with goals

As an exceptionally well-run City we will:

Keep Wichita safe,

Grow our economy,

Build and maintain dependable infrastructure and

Provide conditions for living well.

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Engage the Community

• Online Budget Simulator – May 13 to June 14 1,422 participants completed budgets

• District Advisory Board Meetings - June• Social Media Town Hall – June 26 Over 80,000 views and 700 comments

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Focus Resources

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Charges for Services 

$221,825,297 36%

Other Sources$119,995,340 

19%

Property Tax  $122,851,005 

20%Sales Tax  

$62,677,781 10%

Franchise Fees $49,679,408 

8%

Appropriated Balances (net)$19,752,418 

3%

Special Assessments$27,756,363 

4%

Where City of Wichita Dollars Come From ALL FUNDS 2020 PROPOSED, $624,537,612

Salaries and Benefits

$241,571,033 39%

Contractuals$103,204,595 

17%

Commodities$24,351,044 

4%

Capital Outlay$6,068,500 

1%

Other$90,190,908 

14%Debt Service$159,151,532 

25%

Where City of Wichita Dollars GoALL FUNDS 2020 PROPOSED, $624,537,612

2020 Operating Budget

2020 General Fund Revenue 7

General Fund Revenues

• Assessed valuation growth stronger than expected

• Interest earnings better in the short-term (2019)

• Sales tax projection increased

• Fines and penalties revenue continues to under-perform

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2020 General Fund Expenditures 9

Operating Budget Highlights

• Police budget increased to reflect staffing plan implementation (adding 20 officers and 11 civilians)

• Seven grant-funded police officers are moved to the General Fund after the retention period ends

• Recognizing the success of the Code Enforcement Liaison program, funding is included from the General Fund

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Operating Budget Highlights• Fire funding is increased to ensure constant

staffing and improved response times

• The Integrated Care Team (ICT) para-medicine program will provide an alternative approach to community needs

• Library branches are staffed and funded at current levels to implement Branch Master Plan

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Operating Budget Highlights• Aquatics operating costs are budgeted

to coincide with scheduled Aquatics Master Plan capital improvements

• Park maintenance funding is increased

• Working with stakeholders, new operational plans are being prepared for Cowtown and CityArts

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Linking the Budget and CIP

• Aquatics Master Plan Implementation – will increase cost recovery, enhance outcomes, and improve assets

• Library Branch Master Plan Implementation – will enhance and update facilities to improve usability

• Street Maintenance – will improve overall value of the paved street network with funding from the CIP and operating budget

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Stable Mill Levy Rate 14

2019ADOPTED

2020PROPOSED

General Fund 25.186 25.192Debt Service Fund 7.506 7.500TOTAL 32.692 32.692

The Mill levy rate in 2020 is estimated to be the same as 2019

General Fund Tax Lid Impact

• Tax lid law limits certain types of property tax revenue growth

• Certain expenditures are exempt (public safety and debt service)

• 2020 Budget is below the tax lid law limit

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Looking Forward 16

• Business cycles impact City revenues • Several key revenues are economically

sensitive• Revenues continue to be impacted by

technology, reducing growth rates

General Fund Outlook 17

LONG-TERM GENERAL FUND FINANCIAL PLAN (Dollars in Millions)2019

REVISED2020

PROPOSED2021

PROJECTED2022

PROJECTED2023

PROJECTED2024

PROJECTEDRevenues $250.5 $254.6 $261.0 $267.1 $274.4 $280.3Expenditures $250.5 $254.6 $262.5 $268.9 $275.5 $282.4

Margin $0.0 $0.0 ($1.5) ($1.8) ($1.1) ($2.1)EXPENDITUREGROWTH

5.6% 1.6% 3.1% 2.4% 2.5% 2.5%

Zero-Based Budgeting

• Initiated ZBB review process in 2016

• Prioritized all services and identified untouchable programs in 2018

• Continuing to use framework to focus on cost recovery and process improvements

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ZBB Process Improvements

• Human Resources – New approach to executive recruiting: $210,000

• IT – PC upgrades rather than replacements: $288,000

• Finance - Postage consolidation: $45,000; Pension Management fees: $120,000

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ZBB Process Improvements

• Park & Recreation – Outcomes-based mowing contracts: $160,000

• Public Works & Utilities and Fire – Fire apparatus rebuilds: $500,000

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Preparing for the Future

The 2020 Proposed Budget positions the organization for the future by:

• Leveraging continuous process improvements• Focusing resources on top priorities• Investing in innovation that results in

operational efficiency • Maintaining adequate reserve levels

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Investing in Innovation

One-time funding in 2019 will be invested to enhance sustainability and implement future improvements:

• Additional transfer to Tort Fund

• Transfer to Innovation Fund for technology improvements

• Places for People Implementation

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Investing in Innovation

One-time funding in 2019 will also be used to improve operational efficiency:

• Forestry Remote Control Tree Removal Grapple Saw

• Police Records Scanning

• Fire Department Scheduling Software

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Next Steps 24

• City Council Public Hearing - August 6

• City Council Adoption - August 13

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Questions and Comments

ProposedCapital Improvement

Program2019-2028

City Manager’s OfficeJuly 23, 2019

Capital Improvement Program

• 10-year plan with 206 projects

• Aligned with Community Investments Plan

• Consistent with City Council policy direction

• Financially viable

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Community Investments Plan 28

83% of CIP dollars are allocated to “very high” priority areas

Community Investments Plan 29

45% of CIP dollars are allocated to the top spending priority area

CIP Project Prioritization

Prioritization model based on City Council input

- Community Investments Plan Alignment (20%)

- Consistency with Planning Processes (25%)

- Financial Considerations (30%)

- Other Considerations (25%)

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CIP Funding Sources 31

Water and Sewer Utilities fund over half the CIP; GO-at large (property tax funded) is 13% of the CIP

CIP Expenditure Areas 32

Water and Sewer Utilities projects are over half the CIP, including $880MM for the BNR and NWWTP projects

CIP Total GO At-Large Areas 33

Over half of GO at-large dollars fund roads and public safety

Financially Viable 34

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

GO At-large Debt Service / Property Tax Revenues

Benchmark

2019-2028 Proposed CIP

GO at-large metrics will increase, but stay below the benchmark

Projected GO Debt Levels

$0

$100

$200

$300

$400

$500

$600

$700

$800

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Total Projected GO Debt – Millions

GO At-Large SA LST Utilities Other

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- GO debt will rise, then decline- At-large GO debt currently totals only 5% of total bonded debt

CIP Themes

• Increase in Arterials (Road Maintenance)

• Decreased Freeways (East Kellogg)

• Increased Water and Sewer (BNR, NWWTP)

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Use of Local Sales Tax

• Funds can be used for freeways, roads and bridges (Ordinance 41-815)

• Future emphasis - roads and bridges

• This will result in additional GO at-large capacity and reduced need for LST debt

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Road Maintenance

$0

$2

$4

$6

$8

$10

$12

$14

$16

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Mill

ions

Annual CIP Funded Road Maintenance Expenditures

2018 -2027 Adopted

2019-2028 Draft

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Using LST funds to supplement GO at-large funds, road maintenance is increased. General Fund resources are used to supplement this level.

Aquatics

Proposed CIP includes $20.8 million in 2019 and 2020 to fund the Aquatics Master Plan

• An additional $1.2 million was previously approved

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Branch Library PlanProposed CIP includes $5.3 million to fund improvements at six branch libraries

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2020 - Evergreen and Linwood2021 - Alford, Angelou, Rockwell and Westlink

Public Safety

CIP includes $93 million for Public Safety

• Four police stations -$28 million

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• Three fire stations - $10.1 million

• Radios, fire apparatus, SCBA

Drainage Improvements

CIP includes $36 million for improvements to the Dry Creek (Bleckley Street)

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• Consistently the top drainage priority

• ERU structure approved in 2017 provides capacity

Water Utilities

North West Water Treatment Plant (NWWTP) -$524.2 million

Biological Nutrient Removal (BNR) Plan -$356.2 million

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Funding for Arts

• Non freeway arts spending totaled 1.19% of local funding in last five years

• Proposed CIP includes $7.7 million for arts, or 1.5% of budgeted local funding

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CIP Calendar

July 23 - Presentation of Proposed CIP

July 25 - MAPC considers CIP and alignment with Community Investments Plan

August 6 - City Council Public Hearing

August 13 - City Council Adopts CIP

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Conclusion 46

Questions and Comments

Proposed Capital Improvement Program

2019-2028