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Attachment 3
Subject: Attachments: FW: Public comment on General Fund Reserve Policy - Agenda Item #5 for May 15 meeting researchdocumentcontentpage.aspx.pdf; GFOA-Best-Practices-in-Budgeting- Handout.pdf; ratio analysis.xlsx From: Phil Koen[mailto:pkoen@monterQpartners.com] Sent: Monday, May 14, 2018 3:02 PM To: Rob Rennie; BSpector; Marcia Jensen; Marico Sayoc; Steven Leonardis Cc: Laurel Prevetti; Stephen Conway Subject: Public comment on General Fund Reserve Policy - Agenda Item #5 for May 15 meeting Dear Town Council and Finance Committee, Contrary to the claim made in the Background Statement of the proposed General Fund Reserve policy, maintaining a high level of General Fund reserves does not contribute to a superior rating by credit agencies. This statement represents a very naive understanding of how rating agencies actually determine credit worthiness. Background The most important variable in establishing a credit rating is the amount of direct and overlapping debt the municipality has incurred. The level of that debt compared to the full value of the tax base and the ratio of net direct debt to operating revenues are by far more important in establishing a credit rating. Additionally, credit agencies will look at the trend in pension debt and the ratio of net pension liability to operating revenues as additional metrics in determining a credit rating. While rating agencies like large reserves because it provides some assurance that debt service payments will be made, it is not as critical a determinant in establish the rating as the other measures discussed above. As a matter of fact, in reviewing the most recent Moody's report for Los Gatos, Moody specifically pointed out that the Town of Los Gatos carries a cash balance (i.e. fund balance) as a percentage of operating revenues (91.7%) that is far superior to other Moody's rated cities nationwide. At the same time Moody's pointed out that the Town's adjusted net pension liability had "weakened" because as a percentage of operating revenues, the relative amount of net pension liability had increased from 1.67x in 2012 to 2.69X in 2016. This is a perfect example where carrying high levels of general fund reserves did not help the credit rating at all. If anything, the "weakened" position of the net pension liability was called out in the credit trend in contrast to the high levels of reserves. If a government consistently maintains large reserves, it raises questions from tax payers about whether the government is taxing too much and is hoarding the proceeds. Discussion of Proposed Reserve Policy Regarding establishing an acceptable level of unrestricted fund balance, the GFOA has published a best practice (http://gfoa.org/fund-balance-guidelines-general-fund ) which states that at a minimum general purpose governments should maintain unrestricted fund general fund balance of no less than two months (16.7%) of regular general fund operating revenues or regular general fund operating expenditures. The choice of revenues or operating expenditures is dictated by what is more predictable. i ATTACHMENT 3 I have also attached a GFOA best practices in budgeting handout which also discusses this topic. As you can see on page 4 they discuss establishing a maximum of 35% as a not to exceed fund balance. This is done precisely to call out the concern of "hoarding". Unfortunately the policy being considered today does not establish a maximum not to exceed. This policy should establish a maximum to not exceed, especially because of the current ridiculous level. The other problem with the proposed policy is that it doesn't explain why the Town has decided on establishing a 25% general fund reserve for budget stabilization and catastrophic events. Why has 25% been selected? What analysis did the Town go through to determine this was the correct level. I have attached a spreadsheet which compares the cities of Campbell, Cupertino, Gilroy, Los Altos, Morgan Hill, Palo Alto, Saratoga to Los Gatos in five areas — 1) available fund balance/Operating Revenues; 2) Net cash/Operating revenue; 3) net pension liability/operating revenue and 4) required minimum unrestricted fund balance/operating revenues. From the survey you can see that most of the sample cities have minimum reserve balances ranging between 18% to 20%. Only Gilroy has a significantly larger minimum reserve which is a function of the city's significant level of debt. What else jumps out is the high level of cash relative to operating revenues the Town has compared to the other cities. Only Los Altos has a higher ratio, but it also has a much lower ration of net pension liability to operating revenue. My other comment is that the paragraph about the Almond Grove Street Project Reserve is a moot point. In the FY 2019 budget on schedule C-25 there is no reserve in the General Fund. Why would you include this in a policy statement. On this same point, in the FY 2019 Budget on C-25, there is no OPEB Reserve. The schedule shows that the entire balance of $3,188,913 is zeroed out which is inconsistent with the OPEB Reserve policy. Why is this? Recommendation Given the issues I have pointed out, I would recommend that the Town Council not take action on this policy as currently drafted. It is poorly constructed, does not establish appropriate minimums or maximum levels of reserves and contains conflicting statements when compared to the FY 2019 Operating Budget. Town Council should send this back to the Finance Committee for further review and community input. Sincerely, Phil Koen 2 Government Finance Officers Association GFOA Best Practices on Budgeting 4:30-5:25 PM November 13, 2014 (GFOAT) John Fishbein, Senior Program Manager, Technical Services Center, GFOA Major Categories • Fiscal Policy • Linking the Budget to Organization Goals and Performance • The Budget Process and Techniques • Elements of the Operating Budget Document GOVERNMENT FINANCE OFFICERS ASSOCIATION 1 Fiscal Policy • Adopting Financial Policies • Determining the Appropriate Level of Unrestricted Fund Balance in the General Fund • Replenishing General Fund Balance • Determining the Appropriate Levels of Working Capital in Enterprise Funds • Establishing Government Charges and Fees • Establishing an Effective Grants Policy • Creating a Comprehensive Risk Management Program • Achieving a Structurally Balanced Budget • Business Preparedness and Continuity Guidelines • The Public Finance Officer's Role in Fiscal Sustainability • Key Issues in Succession Planning • Ensuring Other Post Employment Benefits (OPEB) Sustainability • Considerations for Prefunding OPEB Obligations GOVERNMENT FINANCE OFFICERS ASSOCIATION Adopting Financial Policies (2001) • Useful as framework for addressing policy issues • Recommendation • Staff develop • Governing board formally adopts • Summarized in budget document • Reviewed for continued relevance/gaps GOVERNMENT FINANCE OFFICERS ASSOCIATION 2 Relative Importance of Financial Policy Types Essential Policies Fund Balance and Reserves Operating Budget Capital Budgeting and Planning Debt Management Long -Range Financial Planning Investment Highly Advisable Policies Accounting & Financial Reporting Revenues Internal Controls Expenditures Purchasing Risk Management Economic Development GOVERNMENT FINANCE OFFICERS ASSOCIATION Determining the Appropriate Level of Fund Balance in the General Fund (2002, 2009) • Focus on unrestricted fund balance ❑ Committed fund balance ❑ Assigned fund balance ❑ Unassigned fund balance • Minimum level of unrestricted fund balance • Two months of regular revenues or regular expenditures • Environmental factors to be considered ❑ Predictability of revenues ❑ Volatility of expenditures ❑ Availability of other resources ❑ Commitments GOVERNMENT FINANCE OFFICERS ASSOCIATION 3 UNRESTRICTED FUND BALANCE POLICY Adopted by City Council June 2011 The City of Wheat Ridge has determined it to be a sound, financial practice to maintain adequate levels of unrestricted fund balance in its General Fund in order to mitigate current and future risks such as revenue shortfalls and unanticipated expenditures as well as to ensure stable tax rates. Additionally, the City believes that adequate unrestricted fund balance levels are a critical consideration to the City's long-term financial planning. In this regard, the City has established the following fiscal policy related to its unrestricted fund balance. Maximum and Minimum Amounts The City will maintain a minimum unrestricted fund balance of at least two months or approximately 17%, as recommended by the Government Finance Officers' Association (GFOA), of its General Fund operating expenditures. The City'smaximum unrestricted fund balance shall not exceed 35.0% of General Fund operating expenditures. Not precluding the aforementioned minimum and maximum percentages, the City will annually target to maintain a 25.0% unrestricted fund balance percentage level as part of its annual budget process. Use of Funds While targeting to maintain an annual unrestricted fund balance of 25.0%, the City understands there may be circumstances that warrant that the City use these funds temporarily. The City has established the following instances where it may elect to use these funds: An economic downturn in which revenues are below budget 4. Unexpected and unappropriated costs to service and maintain current City operations 4. Unexpected and non -budgeted emergencies, natural disaster costs, and/or litigation Grant matching 4. Early retirement of debt 4. To cover deficits in other funds due to a shortfall in budgeted revenues 4. Capital asset acquisition, construction and improvement projects The use of the unrestricted fund balance for the above permitted events which cause the unrestricted fund balance to fall below the targeted 25% level will require a majority vote by City Council. Use of the restricted fund balance which causes the unrestricted fund balance to fall below the minimum required level of 17% will require a super majority vote by Council. City of Wheat Ridge, CO. GOVERNMENT FINANCE OFFICERS ASSOCIATION Replenishing General Fund Balance (2011) • Policy considerations Define the time period within which and contingencies for which fund balances will be used. Describe how the government's expenditure levels will be adjusted to match any new economic realities. fl Describe the time period over which the components of fund balance will be replenished and the means by which they will be replenished. • Factors influencing the replenishment time horizon D The budgetary reasons behind the fund balance targets. ❑ Recovering from an extreme event. ❑ Political continuity. ❑ Financial planning time horizons. O Long-term forecasts and economic conditions. ❑ Milestones for gradual replenishment. n External financing expectations. (r) GOVERNMENT FINANCE OFFICERS ASSOCIATION 4 VII. MINIMUM FUND BALANCE RESERVES The City will budget target minimum cash fund balances for various operating funds to provide reserves for unforeseen emergencies or revenue shortfalls and to eliminate the need for short-term borrowing for cash flow needs. It is the policy of the City of Sidney to meet or exceed these targets in each budget and Five Year Financial Plan. The following target cash fund balance for the General Fund is 20% of annual expenditures. City of Sidney, On We recognize that unforeseen events may cause short-term breaches of these fund balance reserves. However, if such a breach occurs, or is expected to occur within the five-year planning cycle, the budget balancing strategies will be invoked to determine corrective actions. When necessary, the following budget - balancing strategies will be used in order of priority. reduce expenditures through improved productivity; shift expense to other parties; create new service fees or increase existing fees; seek tax rate increases; reduce or eliminate services. GOVERNMENT FINANCE OFFICERS ASSOCIATION Determining the Appropriate Levels of Working Capital in Enterprise Funds (2011) • Governments should use working capital as the measure of available margin or buffer in enterprise funds. Working capital is defined as current assets minus current liabilities. LI An appropriate allowance for uncollectibles should be established. ❑ The amount of inventories and prepaids included in current assets should be a realistic estimate of the amount that will be consumed in one year. ❑ Target for working capital should be no be Tess than forty-five (45) days worth of annual operating expenses. • Considerations or factors in setting a working capital target ❑ Support from general government. ❑ Transfers out. ❑ Customer concentration. ❑ Demand for services. ❑ Control over rates and revenues. ❑ Asset age and condition. ❑ Volatility of expenses. GOVERNMENT FINANCE OFFICERS ASSOCIATION 5 Establishing Government Charges and Fees (1996) • Adopt formal policy (public) ❑ Factors to be taken into account in pricing ❑ Intent to recover full cost? ❑ Circumstances where more or less than 100% recovery permitted ❑ Rationale for not recovering full cost ❑ Try and keep up with inflation • Full cost should be calculated to provide a basis for setting fees or charges • Review and update regularly GOVERNMENT FINANCE OFFICERS ASSOCIATION SUMMARY OF FEE CHANGES Department 1 Description Current Rate Proposed Rate Estimated $ Impact OTHER FUNDS Airport Aviation Proposed increases for Cost recovery: 1) Fuel Flowage Fees - General AVlatem $0.055 per gallon $0.055 per gallon $33.400 2) Passenger Facility Charge AIRCO Golf Course 1) Proposed Increase in Green Fees for cost recovery, 53.50 Various 54.50 Increase $1 .00 for weekday and $2,00 for weekend S289.500 $33.200 2) Proposed new fee to provide a walking rate for Junior Golfers (17 veers old or less). New Fee 510.00 - $12.00 Negligible 3) Elimination of obsolete fees for Range Balls due to elimination of driving range,. Estimated loss in fees In gross dollars. Various none (535.000) Health Department Proposed new foe for cost recovery rotated to Gnsite Sewage Treatment and Dleposel System (OSTOS) Verification and Enforcement Notification. New Fee 550 $12,300 Utilities Proposed rate increases for cost recovery as part of approval five-year plan: 1) Water • Retail (per 1,000 gallons) 53.50 $4.04 50,504,300 2) Water - Wholesale (per 1,000 gallons) $2.528E $2,7792 51,779,440 Pinellas County, FL. GOVERNMENT FINANCE OFFICERS ASSOCIATION 6 Establishing an Effective Grants Policy (2013) • Grants are an attractive form of funding for governments and frequently come with special requirements that the recipient must follow. An effective grants policy provides guidance to staff as it relates to associated processes and procedures in order to maximize the benefits and minimize the risks. • Governments need to develop a formal grants policy that address steps to take prior to applying for or accepting grants, and that the policy at minimum contain the following components: • Grants identification and application. • Strategic alignment. • Funding analysis. • Evaluation prior to renewal or grant continuation. • Administrative and operational support. GOVERNMENT FINANCE OFFICERS ASSOCIATION Charles County, MD. County Grant Policy It is the purpose of this policy to support creativity and innovation in identifying and addressing problems that cannot be resolved with existing resources, but might be suitable areas for seeking grant funds. It is important to emphasize the need for adequate planning and quality control in all activities related to the administration of grants that involve resources and personnel of Charles County Government (County) Projects funded in whole or in part with grant money are not independent of County operations and should not be created simply in reaction to a notice of availability of funds, whatever the source. It is the practice of the County to be proactive in its pursuit of supplemental funding sources. County personnel should identify problems that cannot be solved with current resources, engage in broad -based planning to address those problems, and carefully consider whether grants are an appropriate resource to pursue, given their temporary nature. For the purpose of the policy, a grant is an award of financial assistance for which the County, or a department thereof, has made application to a public or private entity and is subject to requirements imposed by the awarding agency. The Fiscal and Administrative Services Department will be the fiscal agent through which all accounts must be established and all transactions processed for all grants where a County Department is the applicant and County personnel are the primary participants in the planned project. 4�9 GOVERNMENT FINANCE OFFICERS ASSOCIATION 7 Creating a Comprehensive Risk Management Program (2009) • Following steps should be included in an effective risk management program: ❑ Risk identification ❑ Risk evaluation ❑ Risk treatment ❑ Risk management implementation ❑ Risk program review • Risk identification D Physical environment (natural or man-made disasters and infrastructure) ❑! Legal environment (laws and legal precedents) i Operational environment (day-to-day activities and actions within the local government, including services provided and workforce demographics) • Political environment (legislative activity, elections) • Risk evaluation • Risk treatment • Risk management implementation and review GOVERNMENT FINANCE OFFICERS ASSOCIATION VII. Risk Management Policy - A. The City will maintain a separate Self -Insurance Fund within its fund and account groups. B. The City will calculate annually an updated estimated working capital requirement for the Self -Insurance Fund. Such working capital should be an estimate of claims to be covered in the next few years plus an amount for unexpected claims. If funding is found to be too low, Council will endeavor to transfer funds from the General Fund, or from any other funds, which might be available, to the Self -Insurance Fund to complete the indicated necessary level of funding. Transfers from the Self -Insurance Fund will only be made after at least three years of funding/loss experience, or a consultants report, indicates an over -funding. C. The City will utilize the services of a professional Risk Manager, either on - staff or by contract, to administer the City's risk avoidance program. D. The City will periodically conduct educational safety and risk avoidance programs within the various departments. E. Staff will report to the City Manager and the City Council, at least annually, on the results and costs of the City's risk management program for the preceding year. F. The City will, on an ongoing basis, analyze the feasibility of purchasing outside insurance coverage to replace or supplement the self-insurance program, in order to provide the best and most economical loss coverage available. G. The City will periodically (approximately every five (5) years) conduct, using independent outside consultants, a comprehensive risk management study, including adequacy of reserves, and will implement those recommendations for the improvement of risk management which are found to be feasible and cost-effective. H. The City will maintain the deductible amount considered prudent in light of the relationship between the cost of insurance and the City's ability to sustain the loss. City of Bloomington, MN. GOVERNMENT FINANCE OFFICERS ASSOCIATION 8 Structurally Balanced Budget Policy (2013) • Most state and local governments are subject to a requirement to pass a balanced budget. However, a budget that may fit the statutory definition of a "balanced budget" may not, in fact, be financially sustainable. A government needs to make sure that it is aware of the distinction between satisfying the statutory definition and achieving a true structurally balanced budget. • The policy should include parameters for achieving and maintaining structural balance where recurring revenues are equal to recurring expenditures in the adopted budget. • The government should identify key items related to structural balance. These include: recurring and non -recurring revenues, recurring and non -recurring expenditures, and reserves. • With the forgoing terms defined, a government should adopt a formal policy calling for structural balance of the budget. The policy should call for the budget to be structurally balanced, where recurring revenues equal or exceed recurring expenditures. The policy should also call for the budget presentation to identify how recurring revenues are aligned with or not aligned with recurring expenditures. GOVERNMENT FINANCE OFFICERS ASSOCIATION Business Preparedness and Continuity Guidelines (2005) • Develop, test, and maintain a plan to continue basic business operations • Assess own unique risks • Strategy to mitigate risks and control costs External planning resources • Disaster and emergency recovery plan assessment • Disaster and emergency recovery plan testing • FEMA guidelines L Other planning considerations • Emergency response plan compliance (OSHA, EPA) • Risk management (insurance coverage) • Administrative support functions (contact information for all members of the finance team) • Outsourced/recovery services (ability to overcome disruption themselves) GOVERNMENT FINANCE OFFICERS ASSOCIATION 9 The Public Finance Officers Role in Fiscal Sustainability (2002, 2012) • Balance needed ("triple bottom line") ❑ Economy n Environment Social Equity • Categories of specific representations L Define sustainability ❑ Reporting ❑ Analyze return on investment ❑ Integrate sustainability goals into planning and budgeting GOVERNMENT FINANCE OFFICERS ASSOCIATION 1. The concept of sustainability guides City policy. The City is committed to meeting its existing needs without compromising the ability of future generations to meet their own needs. The long-term impacts of policy choices must be considered to ensure a sustainable legacy. 2. Protection, preservation, and restoration of the natural environment are high priorities of the City. Elmhurst is committed to protecting, preserving and restoring the natural environment. City decision -making will be guided by a mandate to maximize environmental benefits and reduce or eliminate negative environmental impacts within the context of the City's essential functions, planned development, and overall goals and responsibilities. The City will lead by example and encourage other community stakeholders to make a similar commitment to the natural environment. 3. Environmental quality, economic health and social equity are mutually dependent. A healthy environment is integral to the city's long-term economic and societal interests. In achieving a healthy environment, the City must ensure that inequitable burdens are not placed on any one geographic or socioeconomic sector of the cities population, and that the benefits of a sustainable community are accessible to all members of the community. 4. All decisions have implications for the long-term sustainability of Elmhurst. The policy and decision -making processes of the City will reflect its sustainability objectives. The City will. lead by example and encourage other community stakeholders to use sustainability principles to guide their decisions and actions. 5. Community awareness, responsibility, participation, and education are key elements of a sustainable community. All community members, including individual citizens, community -based groups, businesses, schools and other institutions must; 1) be aware of their impact on the environmental, economic, and social health of Elmhurst; 2) must take responsibility for reducing, eliminating and balancing those impacts and; 3) must take an active part in community efforts to address sustainability concerns. The City will therefore assist in opportunities to support community awareness, responsibility and participation in cooperation with all other organizations within the City such as Park Districts, School Districts, and Elmhurst College. 6. Elmhurst recognizes its linkage with the regional, national, and global community. The relationship between local issues and regional, national and global issues will be recognized and acted upon in the City's programs and policies. This may involve balancing local issues with broader concerns. In addition, the City's programs and policies should be developed as models that can be emulated by other communities. The City will also act as a strong advocate for the development and implementation of model programs and City of Elmhurst, IL. (r) GOVERNMENT FINANCE OFFICERS ASSOCIATION 10 Key Issues in Succession Planning (2011) • Develop an integrated approach to succession management. • Continually assess potential employee turnover. • Provide a formal, written succession plan as a framework for succession initiatives. • Develop written policies and procedures to facilitate knowledge transfer. • Development of leadership skills should be a key component of any succession planning initiative. • Encouragement of personal professional development activities should be a key part of the succession planning effort. • Design of better recruitment and retention practices may aid in the succession process. • Consideration must be given to collective bargaining agreements and how those agreements fit in with the overall succession plan. • Consider non-traditional hiring strategies. GOVERNMENT FINANCE OFFICERS ASSOCIATION Ensuring Other Postemployment Benefits (OPEB) Sustainability (2007, 2012) Employee compensation packages for active workers often include healthcare and similar benefits following the completion of active service. Such benefits are described as other postemployment benefits (OPEB) to distinguish them from pensions. For many years, employers have been required to recognize expenses for the cost of pension benefits as those benefits are earned by employees during their active service life. The Governmental Accounting Standards Board (GASB) has extended this same requirement to OPEB. The real issue is meeting the budgetary and funding challenge that those accounting standards highlight. Governments should develop a deliberative process to ensure the sustainability (i.e., benefits are, and reasonably may be expected to remain, affordable to the government, competitive and sufficient to meet employee needs) of any OPEB they offer to their employees. Evaluate and design benefits to ensure they are sustainable. GOVERNMENT FINANCE OFFICERS ASSOCIATION 11 Considerations for Prefunding OPEB Obligations (2008) The financing of postemployment benefits as they are earned (i.e., prefunding v. pay-as-you-go funding) offers significant advantages from the vantage point of equity and sustainability. The earnings on the resources thus accumulated will lower the amount that ultimately must be budgeted by the employer. GFOA recommends that OPEB involving explicit benefit payments be prefunded on an actuarial basis. The prefunding of OPEB resulting from an implicit rate subsidy also is desirable. Prefunding provides equity among generations of taxpayers, levels annual retiree healthcare costs and helps ensure sustainability of the benefit. If a government does decide to prefund Tess than the ARC each year, the level of funding selected should be explained and documented following appropriate consultation with legal counsel and actuaries. GOVERNMENT FINANCE OFFICERS ASSOCIATION City of Grants Pass, OR. FY'11 Actual FY'12 Actual FY'13 Budget FY'14 Adopted FY'15 Projected PERSiOPSRP-Employee 6%* 779,676 834,498 855,996 875,121 PERSiOPSRP-Emp1oyer 2,718,621 2,197,445 2,524,667 2,807,638 2,911,550 *The City began recording the Employee 6% separately effective FY '12. PERS: Like almost all public agencies in Oregon, the City's participation in the Oregon PERS is mandatory. Public Employees that participated in the PERS system prior to system changes made in 2003 receive slightly different benefits than those that started after 2003. PERS charges the City different rates for the different classes of employees and different rates for sworn personnel versus general service personnel. The City uses its insurance/benefits fund to charge slightly different rates to departments as compared to the rates paid into the PERS system to limit the drastic budgetary impact of the State's PERS rates changing every two years. There is currently a PERS reserve in the insurance fund that will be used in the future to offset the impact of rates that are set to increase every two years until the State system is fully funded again. Costs by major operating departments are presented on the following page. GOVERNMENT FINANCE OFFICERS ASSOCIATION 12 Linking the Budget to Organizational Goals and Performance • Establishment of Strategic Plans • Long -Term Financial Planning • Budgeting for Results and Outcomes • A Systematic Approach to Managing Performance • Performance Management for Decision Making • Alternative Service Delivery: Shared Services • Examining the Benefits of Managed Competition • Public Participation in Planning, Budgeting, and Performance Management GOVERNMENT FINANCE OFFICERS ASSOCIATION Establishment of Strategic Plans (2005) • Essential steps of a sound process ❑ Initiate the process ❑ Prepare a mission statement ❑ Assess environmental factors ❑ Identify critical issues ❑ Agree on a small number of broad goals • Develop strategies to achieve broad goals • Create an action plan • Develop measurable objectives • Incorporate performance measures • Review or adopt the plan • Implement the plan • Monitor progress • Reassess the plan (r) GOVERNMENT FINANCE OFFICERS ASSOCIATION 13 This report presents the Durham Strategic Plan. This section describes what the Strategic Plan is and why it is important for Durham's future. The Strengths, Weaknesses, Opportunities, and Challenges (SWOC) section explains how Durham perceives its internal strengths, internal weaknesses, external opportunities, and external challenges. It describes the City's vision and its mission, and the goals that the City wants to achieve. IL explains objectives that help move the City toward its goals, and ways to measure progress in accomplishing the objectives. The Plan section also includes a list of specific initiatives to accomplish the objectives. The Implementation section provides the plan approach along with the roles of the various teams. Finally, the Conclusion provides a calendar of Strategic Plan milestones and a list of the City staff involved in preparing the Plan. Durham's Strategic Planning Process 1. Where are you? Identify Products and Services 1 Determine Key Customers 1 Analyze Internal Strengths and Weaknesses and External Opportunities and Threats 2. Where do you want to go? 4, Write a Mission Statement Develop a Vision t Establish Core Organizational Values 1 See Coals 3. How to get there? Set Objectives 4, Identity Performance Measures 1 Set Targets 1 Develop Implernenration Tas Ics City of Durham NC. GOVERNMENT FINANCE OFFICERS ASSOCIATION Long -Term Financial Planning (2008) • Time horizon Five to 10 years into the future • Scope ❑ Consider all appropriated funds, but especially those that account for issues of top concern ❑ Don't just focus on the General Fund • Frequency ❑ Update long-term planning activities as needed • Content ❑ Financial environment O Revenue and expenditure forecasts O Debt position and affordability analysis O Strategies for achieving financial balance O Plan monitoring mechanisms • Visibility ❑ Effective means to communicate information (r) GOVERNMENT FINANCE OFFICERS ASSOCIATION 14 St. Johns County 5-Year Forecast Model FY 2013 -2017 Fire District Fund ('hn 5 Minions) Actual Projected budget Projected Projected Projected Pr4Jeoted .113851:815.i. FY2011 FY2012 FY2013 FY 2014.FY2015 FY2016 FY2017 Property Times 529.8 $22.2 521.7 521.7 $22.1 522.8 523.5 Grant Revenue $0.5 51.0 50.7 $0.2 $0.2 50.2 50.2 Other Revenue $0.4 5OA 50.3 50.3 50.3 50.3 50.3 Debt Proceeds $0.0 50.0 $0.0 $0.0 50.0 $0.0 50.0 Total Revenue $20.7 523.6 522.7 322.2 522.6 523.3 524.0 Expenditures^ Seam -ins 511.2 $10.8 510.9 $10.9 $11.2 $11.5 $11.9 Overtime $1.0 $1.0 $1.0 $1.0 51.1 51.1 $1.1 Benefits $5.4 $4.6 55.2 55.2 53.5 33.8 56.0 Other Expenses 54.8 54.7 54.5 549 55.0 55.0 55.1 Capital Outlay $0.1 $0.9 $0.8 $0 6 50^7 50.1 50.7 Total Expenditures $22.$ $22.0 $22.8 $22.6 523.5 523.5 524.8 Net In crease (Decrease) in Fund Saiance Beginning Fund Bolen. Ending Fund Balance ($1.8j 51.6 ($0.1) ($0.41, (50.9f (50.2) (50.8/ $14.0 512.2 513.8 $13.7 $13.3 $12.4 512.2 513.8 $13.7 $13.3 512.4 $32.2 511A Fire 311.511'111 Fund 5-Year Forecast Model Asanlnnllonc: Long-term St Johns County Goals Transition Fire Services to rt Professional Force; Compensate Calmly Employees Appropriately and Maintain Technology [under Capital Outlay): Limit County Tax Rules (no Aather millage increases); Maximize Citizen Services. Propene Taxes. Taxable Property Value declined 10.2% in FY 2011; 5.0% in FY 2012; and 25% in FY 2013 Leven with new construction al 2.0%1. Expect flat Taxable Property Values for FY 2014 with stow growth of 2% (new construction only with no general devaluation) in FY 2015 and 3% growth thereafter. Property taxes stated at historical collection percentage of 96.5% and other revenues at 100% tditfers from the FY 2013 adopted budget which is statedat the mandated 9550). FY 2013 property taxes reflect the FY 2012 Fire District Fund millage increase. Outer revenue growth Dreamed to be 274-3%consistent with projected Coolly population growth. Bruen Salaries to remain fiat for FY 2012 and FY 2013 and knaeasc with percentage innaense In property taxes and Daher revenues thereafter. Benefits to increase with salary increases except for health insurance and retirement which are projected to increase per actuary estimate of 8?4 per year. Overtime to increase in FY 2015 with salary increases but to remain flat for FY 2016 and FY 2017. Grant revenue to drop off after FY 2013 with federal SAFER grant ending to reeturting grant levels only. Other [-•.dpenscs l0 maraca nominally. Capital Outlay to alternate for minimum replacementof one lire track per year except FY 2016. Howevtr. deterred CIP praleces will likely be Raided &Ping this period. but are projected to bo Itunded from Fire Impact fees. Court t.xion: Despite a relatively high fund balance, the Fire District Fund still has a projected recurring deficit affected by capital outlay investment. Pn add.it inn, Fire Services CIP projects arc assumed Handed out of the Fire Impact Fee Fund Which may not generate enough fees for signincnt projects. The imp.ttlance of Union contract concessions continues to be highlighted here as the Fire 17iserict Fund is not generating croupl, net. revenue to fund necessary capital improvements over the longer tam. capital improvements have otherwise been deferred in the last several fiscal years. St. Johns County, EL. GOVERNMENT FINANCE OFFICERS ASSOCIATION Budgeting for Results and Outcomes (2007) (1) Determine how much money is available. (2) Prioritize results. (3) Allocate resources among high priority results. (4) Conduct analysis to determine what strategies, programs, and activities will best achieve desired results. (5) Budget available dollars to the most significant programs and activities. (6) Set measures of annual progress, monitor, and close the feedback loop. (7) Check what actually happened. (8) Communicate performance results. 4�9 GOVERNMENT FINANCE OFFICERS ASSOCIATION 15 )Cityr_',+ Redmond p. Home > Business Community > Community Building > Clean and Green > Infrastructure & Growth > Safety Responsible Government > Price of Government > About the Dashboard City of Redmond Budgeting by Priorities Accountability Performance Dashboard City of Redmond, WA. The City of Redmond allocates its resources by colronunib- priorities. -he chart below illustrates the relative size of each priority as determined by the city 20CS-21'310 budget. Community Priorities (with p ercentaee of city budget devoted to each; Responsible Govt lean & Green 233, Cnmmuntty B,l I lit.nu_ Safety 5:4 22w, Infraqructu re Click on the priority area to see the performance dashboard for each. lieu to Symbols Used Trends Improving Maintaining Worsening Degree of Influence High • Medium 0 Low About these symbols GOVERNMENT FINANCE OFFICERS ASSOCIATION A Systematic Approach to Managing Performance (2011) • The National Performance Management Commission, representing eleven national public interest organizations of elected and appointed state and local government officials (including the GFOA), issued a report in 2010, A Performance Management Framework for State and Local Government: From Measurement and Reporting to Management and Improving. Information, measures, goals, priorities, and activities are relevant to the priorities and wellbeing of the government and the community. r_1 Information related to performance, decisions, regulations, and processes is transparent —easy to access, use, and understand. Goals, programs, activities, and resources are aligned with priorities and desired results. 1 Decisions and processes are driven by timely, accurate, and meaningful data. Practices are sustainable over time and across organizational changes. -1 Performance management helps to transform the organization, its management, and the policymaking process. GOVERNMENT FINANCE OFFICERS ASSOCIATION 16 Performance Management for Decision Making (2002, 2007) • Important component of long-term strategic planning and decision making • Linked to the budget • Based on program goals and objectives tied to program mission or purpose • Focus on outcomes • Comparisons over time • Verifiable, understandable, and timely • Consistent throughout the strategic plan, budget, accounting and reporting systems and to the extent practical, be consistent over time • Reported internally and externally • Monitored and used in managerial decision -making processes GOVERNMENT FINANCE OFFICERS ASSOCIATION FIRE DEPARTMENT PERFORMANCE INDICATORS COUNCIL. VALUES Management Goals & Objectives Performance Measures FY06-07 ACTUAL FY07-08 TARGET FY07-08 REVISED FY08-09 TARGET Cost Efficiency Achieve a response time of 5 minutes or under from dispatch to arrival on 80% of Code 3 fire calls within the city limits. Percentage of fire calls with a response time of 5 minutes or less from dispatch to arrival within city limits. (1) 63% 70% 65% 65% Achieve a response time of 5 minutes or under from dispatch to arrival of ALS equipment on 45% of Code 3 EMS calls within the city limits (ASA contract target). Percentage of EMS calls requiring ALS with response time of 5 minutes or less from dispatch to arrival within city limits. 55% 45% 59% 59% Maintain operating costs per capita at or below that of comparator cities. Total fire operating expenditures per 1,000 population within city limits. (3) New Measure $125.60 8125.60 8139.58 Maintain false alarm rate at or below the level experienced by ICMA comparators. False Alamos as a % of non -EMS responses in the city. 9% 13% 13% 13% (1) Achieve a response time of five minutes or under from dispatch to arrival on 80% of Code 3 fire calls within the city limits: • Measure definition / discussion: This is one of the standard measures of a fire department's effectiveness across the industry. Years ago, a common industry goal was to achieve a 4-minute response time on 90% of emergency calls. Increasing costs and population figures have resulted in the need for a majority of departments nationwide to reassess that target. It was found to be unrealistic and very expensive in terrns of infrastructure and personnel. Irrespective of the increased difficulty in meeting the target, response time remains the most critical factor in the degree of success achieved in mitigating true fire / EMS emergencies. • Evaluation of results: Over a period of years, population growth, a related increase in the amount of vehicle traffic, and the expansion of neighborhoods into urban growth areas (and farther away from existing fire stations) have increased response times. The new target is a move toward more realistic response times and is in line with the National Fire Protection Association (NFPA) standards as well as ICMA core measures. The inclusion of Stations 5 and 6 in the response system helped to alleviate that situation to a significant degree. City of Corvallis. OR. GOVERNMENT FINANCE OFFICERS ASSOCIATION 17 Alternative Service Delivery: Shared Services (2007) • Getting Started • Feasibility Study • Coming to Agreement • Implementation • Ongoing Monitoring • Long-term Review/Agreement Reassessment GOVERNMENT FINANCE OFFICERS ASSOCIATION Examining the Benefits of Managed Competition (2006) Executive direction Environmental consideration Stakeholder support Legal ramifications Service availability Cost Transition process Performance metrics GOVERNMENT FINANCE OFFICERS ASSOCIATION 18 Public Participation in Planning, Budgeting, and Performance Management (2009) Good public participation practices can help governments be more accountable and responsive. Traditionally, public participation meant voting, running for office, attending public hearings, and keeping informed on important issues of the day by the local newspaper. More recently, governments have used new forms of public involvement — surveys, focus groups, neighborhood councils, and Citizen Relationship Management systems, as inputs to decisions about service levels and preferences, community priorities, and organizational performance. Identifying the Public's Perspective - The best way to assure a broad perspective is to collect information in a variety of ways and from a variety of sources. Identifying citizen preferences and satisfaction levels should occur before a decision has been made. Public involvement approaches should encourage all citizens to participate. Governments should explain how public involvement has made a difference in plans, budgets, and performance, and gather public feedback on how successful the process has been through the public's eyes. GOVERNMENT FINANCE OFFICERS ASSOCIATION rY 08438 E3UDDET DEVELOPMENT TIMELINE. CITIZEN INPUT OPPONTUNITIE5 00100.r - Pr'rmn.. fi.grtn.n.N. n...t wen w.yv..TTY .a.. ...el..0 oe...r... 14.0.1.111 auWKlC r.eou.p. 480 08 Mar-00 MAY - oU.. WIM11e' Inp..I Mx CY.lu.a 4..n-66 CIPi y. ier F • 100? MC. .. Lk.von. c3 4 N...n.I I avi ...I.ra. *m..l. m ...w. Thera+ 10 .,..nea.ec..r .Irw.gy Theo* .n.3 4..1r.. rn. P.00... a. d•B IIr iY all-rw b../gel GIF CconoTu...rr_ PLIOLANICM1$ v. .NIM G Ovogro.rf GIP C' a`Y 1n.. I C.am000 aow" Pyl rik s0000Coo mo!reo I a eq'-0 t.oron.lb tlorm.•—. plolorro car. sot; Oy31011.wtKe6 M.y It.11are Co.m.rm..run RT./Rive. IIr C.., w...0e%. vrgpo..q 04.c1.4.I. t . P1)tlL.G NlARIN.j. r.e.omenTnOo! IT ..e. C My Cw,+y11 -1008 G8Y G.arrc. 0014.. PUBLIC I.EAIVNG rr•a0 .00p.. Pr 111000 t L.vw. I.... J......110 2008 Yw EM City of Corvallis, OR. 4�9 GOVERNMENT FINANCE OFFICERS ASSOCIATION 19 The Budget Process and Techniques • Recommended Budget Practices from the National Advisory Council on State and Local Budgeting • Financial Forecasting in the Budget Preparation Process • Effective Budgeting of Salary and Wages • Inflationary Indices in Budgeting • Strategies for Managing Health -Care Costs • Measuring the Full Costs of Government Service • Pricing Internal Services • Incorporating a Capital Project Budget in the Budget Process GOVERNMENT FINANCE OFFICERS ASSOCIATION National Advisory Council on State and Local Budgeting (1998) • NACSLB (1995-1997) u GFOA and 7 other SLG associations ❑ Goal = set of recommended budget practices • Recommendation: ❑ Adopt NACSLB Framework and practice statements ❑ Blueprint rather than mandatory prescriptions ❑ Incremental implementation foreseen GOVERNMENT FINANCE OFFICERS ASSOCIATION 20 Financial Forecasting in the Budget Preparation Process (2014) • Define Assumptions • Gather Information • Preliminary/Exploratory Analysis • Select Methods • Implement Methods • Use the Forecast GOVERNMENT FINANCE OFFICERS ASSOCIATION Budget Assumptions F r's,al ernie00ons are developed using ,•Cede1 J. worst, and best care .swmorerm. The- expected Gees assomp+ are used to start he budget process and the worst and beet case assumptions aye used n contingency plenrwtg. (hang the follbweng expected case assume ens a balanced budget is protected. Worst Expected Qafll FT Es decline 102.075. fact FIIHH0. Evtwelebt (FTE) Sweets FTE'e ire projected to Increase 102,125 it 2007.00. 2425 FTEs grow 102,150. +25 A Fax levy increase of 3 petce04. Pryenly Mktg. 50 than 5 pmgre would ilprease the M. 1300,500) Tee Levy A Fax levy harms.. not to exceed 3.5 peasant Cues the teal levy for 2007-08, A 5 percent Yenta. 0 eepusf2ed preps ly values a projected. 520,244,400 Property values hlgler Ihen 5 percent wou1 reduce bra yes rote but lax levy would remain Me tame. +SO College's lornsula factors decrease, end there are elate ant raducllons Cue to Ina biennial budget. 4440,000) $Ie a Aldo Revenues born general stale aids ere expected se remain the sense se 21104-07. 13,739,409 Gdlege's equalization index and FTEs increase meshing n Increased slate awls. Add1FImal grants are wreten. Biennial budget request! for genes. stela ads is approval. .569.2.90 Tu:5n ire series by 4 demon! or FTEs dsdrr 10 2050. (5134.000) T*MbM$bdenl Fees Twlron am lee revenue are expeeled t0 iK.ase by5per5a13, 14,334,000 TufdOn Increases by 5 percent or FTEs increase to 2150. +5103,000 Dee ramie +n Iniergel income, rainery service corwnisxrone, and owaratla. 13145.000) leerier/tonal Revenue 0 WOreforu Solutions Interred Income and commission Iron. aueilery service canlrecl0 are expected Y0 Increase !dean 290507. Customized having end YKhnieal assielanee connects ate elan e>oeclad IC teerease and generate newsmen to recover expenses. 51.595,000 Larger increase in ,merest WI,Orne. auXillary berg., ammIssons, and comrade. .3105,000 Expenditures increase by 7 percent. Heeim Insurance Ineres.. by 15 paree1 end dental insurance by 10 percent +5245.000 EgaendNwea General Fund expenses are expected to Ise 4 percent inclorpng personal emcee end 2u1rent expanses. Health Insurer... a expected 10 indeed, by 12 percent and dental insurance Idyll percent. 225.258.0(10 Expenditures Increase by 3 percent. Health insurance increases by 9 percent and damn Insurance bye pemem+ 11245.0401 Significant reduction in lunang fad grams octcule. 4100.000) Grants • Prole/Ste Stale and federal grants are expecied to be excl.d as a 00gh1ry tower level. WM aspe,xdaurea for misery era benefits aleteaainathere is a need Iva more local support, 31,421000. Approval of adddwnal binding federal or mate funding. +5200,000 Lakeshore Technical College, WI. GOVERNMENT FINANCE OFFICERS ASSOCIATION 21 Effective Budgeting of Salary and Wages (2010) Personnel Tracking System Vacancy Adjustments Start Dates, Trends, Attrition, Frozen Positions Collective Bargaining Agreements Impact of Inflation Optimal Staffing Level Comparison to other Governments Staffing Guidelines Classifying Position by Goal Use of Volunteers/Temporary Positions Compensation Approaches Personnel Categorization Capital versus Operating, Shared Services, Funding Sources GOVERNMENT FINANCE OFFICERS ASSOCIATION FISCAL YEAR 2012-2013 ADOPTED BUDGET vs PRIOR FISCAL YEARS TOTAL STAFFINQ Alit M. FILL VAC. 1 46 VAC. A+1,440 fl777111 12,31/14 06r`30.1 1 00,30.,1 a 06,30,00 00/30%00 023 7*71* 070 086 11 f3 0 1.013 057 111: n111 *16 0 00 0r2 00 00 112 114 40 41 7.2% 0.0% 11 sx 100% 4.6% 4.0% 13EN@.RAL STAFFING BY FUND LIBRARY SEWER RSNT SELFINS. FUND FUND FUND FUND _ PUMP A4J0* FILL awn* FNi Sarni FILL Al l% FILL AVFH_ [ F1LL 4e1•01•d ad4eCo 1 ` _ J 91196a1 044 783 40 35 6 20 20 2 2 17731,11 61*1 776 42 31 6 20 20 2 2 011420./11 M05 707 43 38 6 30 20 2 2 06/30*10 912 013 43 30 0 30 30 1 1 oeramoci 944 002 44 40 0 20 .213 1 1 06,3 ,06 9•2 0000 44 i 70 0 26 24 1 1 STAFFINAJIly FUNCTION COMMUNITY GENERAL GOV'T PUBLIC WORKS PUBLIC SAFETY SERVICES Au1h. F61 , Viso- Viso- Au11, F111 Vro. AW%. F11I Vac. Ah. u1 FMV.0. A6011106 13,0961 204 164 20 249 231 is 402 370 73 f1 03 • 12131/11 213 164 20 270 230 20 402 377 25 77 61 10 n6.30111 211 101 70 267 23t 70 421 360 47 70 134 1i 06/30/10 721 100 26 257 234 23 420 367 41 20 08 44 01*13[1/00 lMV;VLIM 236 2.19 216 210 10 1• 266 7116 255 71u1 t 1 0 431 411 422 416 0 171 63 RA 70 r, f 7 City of White Plains, N.Y. GOVERNMENT FINANCE OFFICERS ASSOCIATION 22 Inflationary Indices in Budgeting (2010) Inflation Indices CPI GDP Deflator Construction Price Index Employment Cost Index Municipal Cost Index Alternatives to Using Indices Economic Consultants Local Universities Peer Governments Vendor Contacts Industry Specific Journals GOVERNMENT FINANCE OFFICERS ASSOCIATION kpr ripaf,tlrlt. & ,11, rri-: fiscal Yt2nl14 Municipality COLA Increase Merit Increase Maxlpium Addison _ 3.66% Bloomingdale 3.50% 4.00% Bolingbrook 3.00% 2.00% Carol Stream _ 4.25% 5.50% Clarendon Hills 3.75% 4.00% Downers Grove 4.00% Glen Ellyn 3.50% 4.50% Glendale Heights 3.50% Hanover Park 2.00% 3.00% Hanover Park 4.00% Itasca 3.50% Lemont 6.00°% Lisle 4.00% Lombard 3.75% 2.00% Naperville 3.00% 4.00% Oak Brook 3.50% Roselle 3.50% St. Charles 3.50% Schaumburg 3.50% Villa Park 4.00% Warrenville 3.50% 6.00% Wheaton 3.50% 4.00% Willowbrook 4.00% Wood Dale 5.00% Woodridge 4.00% Average 3.59% 4.07 is Village of Westmont, Illinois GOVERNMENT FINANCE OFFICERS ASSOCIATION 23 Strategies for Managing Health -Care Costs (2014) • Monitor Medical Plan Network and Prescription Drug Discounts • Set an Appropriate Level of Cost Sharing with Employees • Encouraging Good Consumer Behaviors • Analyze Risks in Self -Insurance Cl Premiums ❑ Administrative Fees El High -cost Claims • Measurements to Assess Plan Performance El Medical Loss Ratio Ci Medical Claim Trends Ci Network Discounts Cl Prescription Drug Cost Trend/Generic Drug Substitution Rate • Additional Strategies ❑ Educate Employees ❑ Audit Plan Records ❑ Rebid Periodically G[3 GOVERNMENT FINANCE OFFICERS ASSOCIATION The total cost for benefits by the major categories is provided below to provide insight into the changes over time. Remember that `Budget" will appear to jump in comparison to "Actual" given that the City frequently has unfilled positions at different times throughout the year that result in temporary expenditure savings. FY'11 Actual FY'12 Actual FY'13 Budget FY'14 Adopted FY'15 Projected FicaiMedicare 971,187 1,005,288 1,037,009 1,095,300 1,113,908 Workers Comp 133,000 193,626 297,274 307,223 309,089 Insurance (Health & Life) 3,138,821 3,217,484 3,503,12E 3,784,229 4,101,050 Retiree Insurance 167,418 103,708 136,472 200,444 288,170 FicalMedicare: These are the mandatory federal payroll taxes required to be paid by all public and private employers. Workers Compensation: The City is self -insured for workers compensation claims. At the end of each fiscal year, if the balance available in the workers comp fund is above the target minimum required reserves due to lower amounts of claims during the year, the fund issues a credit back to the departments. This is why actual results in recent years look substantially lower than budgeted expenditures. Insurance (Health & Life): Health insurance and dental insurance make up the bulk of this expenditure category. The City pays 92.5% of health insurance premiums for all classes of employees and all bargaining units also have a cost sharing agreement for annual increases that are in excess of 10% per year. Insurance costs by major operating departments are presented on the following page. Retiree Insurance: The City has an obligation to pay four years of health insurance premiums upon retirement and this is the budgeted premium payments for retirees. Employees hired on or after January 1, 2007, are no longer eligible for the 48 months of Coverage at time of PERS retirement election, except as agreed to in signed labor union contracts between the City and labor unions. City of Grants Pass, OR. GOVERNMENT FINANCE OFFICERS ASSOCIATION 24 Measuring the Full Costs of Government Service (2002) • Calculate the full cost of all services Useful when considering alternative service -delivery options • Distinguish avoidable costs from unavoidable costs • Consider cost of transition • Consider offsetting revenues GOVERNMENT FINANCE OFFICERS ASSOCIATION Pricing Internal Services (2013) • Identify Goals ❑ Govern Demand for a Service ❑ Develop Enterprise Rate Models ❑ Calculate Indirect Costs ❑ Provide Input for Full Costing ❑ Discuss Value of Service ❑ Promote Competition in Service Delivery ❑ Customize Service Levels for Different Customers • Decide Basis of Allocation ❑ Cause and Effect Relationship ❑ Benefit Received ❑ Fairness ❑ Legal Constraints (r) GOVERNMENT FINANCE OFFICERS ASSOCIATION 25 Examples of Internal Services Cost Allocation Bases Internal Service Payroll processing Budgeting Insurance Legal services Office space / rent Procurement services Vehicle costs Information technology Allocation Basis Number of employees, number of checks Labor hours, size of budget Number of employees, experience Direct labor hours Square feet of space occupied Number of P.O.s, dollar volumes, direct labor Miles driven, hours used Number of devices, server time, number of calls to help desk, direct labor hours GOVERNMENT FINANCE OFFICERS ASSOCIATION Incorporating a Capital Project Budget in the Budget Process (2007) • The capital budget should be directly linked to, and flow from, the multi- year capital improvement plan. • Organizations should establish specific criteria early in the process to help prioritize capital submittals. • The capital budget should be adopted by formal action of the legislative body, either as a component of the operating budget or as a separate capital budget. • Should comply with all state and local legal requirements. • Show a schedule for completion of the project, including specific phases of a project, estimated funding requirements for the upcoming year(s), and planned timing for acquisition, design, and construction activities. • Any analytical information deemed helpful for setting capital priorities. • Periodic reports should be issued routinely on all ongoing capital projects. comparing actual expenditures to the original budget, identify level of completion of the project, and enumerate any changes in the scope of the project, and alert management to any concerns with completion of the project on time or on schedule. 4�9 GOVERNMENT FINANCE OFFICERS ASSOCIATION 26 Capital improvement Program Process Village Board Meeting. Petrie Inm % The pubic was ,riled to attend a budget meeting to prod input on the development of the budget and Capital improvement Program KIP) and to assist In establishing priorities Village Board Meeting- PreI1mh, a ry Bud¢et Discussion A publk meeting was held to discuss the public Input, the elected oflcrals' goals for the Village, and staff recommendations This discussion provides state with direction on which Items should he incorporated into the budget and Capital Improvement Program. Budget Team Bete g The Budget Team discusses each capital request with the appropriate department at their budget meeting. The necessity and urgency of each request is evaluated, Based on this review, Village Board goalg, and available funding, the requesl Is either approved or denied_ Village Board Meeting/ - Petted Official Snou{ A public meeting was held to discuss the elected officials" goals for the village and to provide direction to staff on Items to be Incorporated into the budget and Capital Improvement Program. f peoartntental Budget Preparation enactments prepare their budget and C'IP requests for he Budget Team's review based on input provided at he preliminary budget meetings and the needs of the epartment Preliminary Budget Document The preliminary budget document is presented to the village Board for discussion. Capital items may be added or eliminated based on this discussion. An nuar Budget and Capital Improvement Program The approved capital projects are scheduled In the CIP based on their priority. Capital items la be Irkluded In Fiscal Year 2fl10 are incorporated Into the annual tudget. City of Hanover Park, IL. GOVERNMENT FINANCE OFFICERS ASSOCIATION Elements of The Operating Budget Document • Presenting Official Financial Documents on Your Government's Website • Making the Budget Document Easier to Understand • Departmental Presentation in the Operating Budget Document • Presenting the Capital Budget in the Operating Budget Document • The Statistical/Supplemental Section of the Budget Document • Basis of Accounting versus the Budgetary Basis GOVERNMENT FINANCE OFFICERS ASSOCIATION 27 Presenting Official Financial Documents on Your Government's Website (2009) • Benefits ❑ Heightened awareness ❑ Universal accessibility (wide range of potential users) ❑ Potential for interaction with users ❑ Enhanced diversity (use of different languages) ❑ Lower costs (no handling and mailing, like with hardcopy) ❑ Contribution to sustainability (reduce paper consumption) ❑ Broadened potential scope (use of hyperlinks) • Specific guidelines: ❑ Consistency with hardcopy version (if any) ❑ Legibility (font size and page layout/direction) should be consistent ❑ Pagination (numbers pages sequentially) ❑ File size • Use single electronic file • Individual files for various components of reports may be used as well ❑ Placement (predominately on homepage) GOVERNMENT FINANCE OFFICERS ASSOCIATION CorinthTexa , Gateway to Success ! • .•0011111k A M Government Online Pay uta How 0o P Find Public Documents ErnP1opee Emdd Code Red Weather Warnln0 Popp Department Fir 0rpurtlnrnt Ec•rwurc 0rvrtopmrm .�✓ °Welk Lulls Enviegmmt Read Our Newsletter.! 44 F Departments Community Visitors Business Contact Us Agendas and Minutes Animal Connell . City Secretary Community Conflict Disclosure Forms Current Onthnances - Economic Development • U Finance Annual Audits 1_ Annual Budyetsj uksplay Name 7 Adopted 9udoet2006''447 `'Adopted Budget 2007-2008 a -Adopted Budget 2008-2009 Adopted Budget 2099-2014 '- Adopted Budget 2010-2011 .! Adopted Budget 2911-2012 'Adopted Budget 2012-2013 Shaw dl descriptions Sae (KB) 1310 9833 149896 26679 35288 53'864 4858 City of Corinth, TX. GOVERNMENT FINANCE OFFICERS ASSOCIATION 28 Making the Budget Document Easier to Understand (2014) • Specific recommendations: L Be Organized • Consider sequence similar to Budget Awards criteria ❑ Avoid Excess Detail El Attractive Design • Simple and easy to use ❑ Consistency • Like departmental presentations ❑ Highlights • Consider a budget —in -brief • Effective tables, charts, etc. El Format • PDF numbering matches document page numbering • Link table of contents to specific pages by a click of the mouse • Have pages go in the same direction GOVERNMENT FINANCE OFFICERS ASSOCIATION City of Norfolk FY 2012 Budget In Brief Table of Contents Item Page Budget Highlights City Priorities and Budget Principles 1 I 2 Operating Budget Highlights 3 Operating Budget at a Glance 4-7 Funding our Priorities 8-9 Youth Services 10 Healthy Neighborhoods 11 General Services 12 Capital Budget at a Glance 13 Personnel Changes 14 Education Funding 15 Budget Calendar 16 Message from the City Manager The development of the Proposed Flscai year (FY) 2012 Budget is the first step in a process to change how we do business in the City of Norfolk. The guiding principle for this budget and future budgets will be building a well -managed government" which means , ensuring the City's programs and services I are effective, efficient, accountable, responsive, inclusive, and customer -focused. We went out into the community and asked residents about their priorities and for their suggestions for improvement. We listened. This budget strives to provide funding based on community and CEty Council priorities. We will continue the conversation to determine if our programs and services are meeting our priorities and how we can continue improving service delivery. The development of this budget includes some difficult, but necessary, decisions as the City continues to face economic challenges. However, this budget also includes proposals to help the City grow, as well as draw on the energies and efforts of all our residents to help build a vibrant city. City of Norfolk, VA. (r) GOVERNMENT FINANCE OFFICERS ASSOCIATION 29 Department Presentation in the Operating Budget Document (2012) 1. Design. The formatting can be enhanced as follows. 2. Brevity. Avoiding excessive detail is important, especially in financial schedules and text. 3. Services. A description of services or functional responsibilities must be included. 4. Issues. Discuss challenges, issues, and opportunities. 5. Revenues. Revenues may include any fees or charges that the department generates. 6. Expenditures. The analysis of expenditures should be done in a broad manner. 7. Staffing. Staffing information is usually presented in one of two manners. A departmental organization chart may be provided to supplement the main organization chart of the government. A brief schedule may summarize the departmental headcount over a period of time (including the upcoming budget year), which would have the advantage of identifying trends. 8. Prioritization/Goals and Objectives. It has becoming increasingly common to explain how services are prioritized. 9. Measures. Performance measures typically are included in the respective departmental section of the budget document. GOVERNMENT FINANCE OFFICERS ASSOCIATION Activities Patrol Investigative Special Operations elm } IT'S A FACT Police Officers wear almost 20 pounds of oa Ulpmpftt {not irtcludtng butlalpro01 vests and hoovO Gore -Tex booto while DO rt0rming their lohs Police - Operations The P'elyd actively provider, twenty -lour hour. seven-day a weak response 15 over 455,000 came for service eswh year. including crimes, lralgc accidents. medical anrergerrcies and neighborhood problems The Investigative aeavlty provides te1Icw-up InvesUgolon to as ropanod rllme5 ano praepllvoty mueellgelea narookos. vice, liquor and t0eaCpp vpd611ans Special Operations proodm support kr high -risk operations with highly trained and speoielly equipped tactical, hostage nsgoliatkm and bomb squad uncle. Fax I<-S teams are also part of the Paeoo and Spaces Operations response resources Objectives • Work with Mamas, residential, foepitakty and retell communities to identify and solve problems such as repeat calla for service. • ncrease freak safety and raAJca 1ra1110 accldenls- - Inoeaae DW1 enlonarmenl and hazardous violellms enforcement. • Increase involvement ,nth sdwols through the Liaison. Patrol and Investigative units. • Maintain the ogle). 1c weary ragpend to medOol emergencies. grimes m progress and Omer high.pnority tells. Outputs Continued to increase the number of organized neighborhoods - currently 12,000 res donia Involved in the Naghuahood Wales group. Ircreesed commitment to DWI enforcement and other alcohol related oflerrees. Continued efforts to revolve reoccurring problems and cats for service. Reduced false alarms lhroapho!Jl the community by lea Dement Reduced medical reeposees lay a relnallng ras0en1es le me4lcol Ie0Milee oY Ian paroeni. Established a plan of ge0praptrc accountability emphasizing vigorous enforcement of laws. creme prevention. crime analysis end prg1em-e0Mhg. Imp1amante0 a proacliva m811 use, reducing ea swo10rmsai el regale pane urea to that site. Conan lad alcohol end ILtbec0e oompllenoe cheeks of licensed ealateshmenla al iaestl cote sect, year. SalariastWagen/Banaf is MetedeiSl$upellaslSsrvioes Reimbursed Expendfluree Authorized Full -Time Crime Analyst Police Ltoutenanl Police Officer Pollee Sergeant FY2008 FY2007 0r55inal 042P5PYed Pares nl Qudget Budget Grange 39,455,151 2.576,528 (38,364) S11,903,115 S10,21.3,806 2,370,401 (39,914) S 12,544,883 8.0%5 -8.0 3.5 4.6% FY2ue5 FY?1R6 F}' O07 143 1 3 83 15 104 1 3 84 16 144 3 84 16 City of Bloomington. MN. GOVERNMENT FINANCE OFFICERS ASSOCIATION 30 Presenting the Capital Budget in the Operating Document (2008) • The capital budget should be in a distinct section of the budget document. • A definition of capital expenditures should be included in the budget document. The presentation should focus on both sources and uses. Indicate the total dollar amount of expenditures for the budget year and for the multi -year plan. The sources and uses summary should include all projects (regardless of fund) that fit within the government's definition of capital expenditures. This can be presented by fund, category, priority, strategic goal, or geographic location. • Legible graphic illustrations (pictures or maps) can add value to a capital project presentation. • Governments may consider indicating on individual capital project sheets what specific goals that the capital project is fulfilling. GOVERNMENT FINANCE OFFICERS ASSOCIATION Pno.teet Til1e Water Treatment Plan Protect Nmnber 21 Coup en an Cute Aug-1a Wenaht, 5 Pm,uy Funding SaucN.s l Water Fund, G.O. Bond Project Desorption• The Cey ye carstru:ta new 1re.artWater Tieebxnl Plare'.NU • oady ia wpply 7s City lion hetween9.9 moan go lbns l treated waxy my to reyars ee ouelied IONA Plan! Water NMI Cult wst less m oprate du to a pater Lae ct a+A3maled leash:eV pourtly erronalinp 1h need its up 10 bee ce realsage 2015atataerarrrlateWS201000en The City s maeos.ngly ipeledirlj and e ptlrt erg ether The new ON MI ylgv roes -Mel t0 retre deb! The current Cestrala Wear Trcatmert Plants PO ymtsoll and in very decal shape Tha pant only a able to treat 5-6 mina gams of hater per ear The C1r w,I wish ust a new Weer Treabnert Plan: to mace ete a. Pearl' This select Curl Seedy an too 0 e Wale Deoarlm,t.t rcrsase,n water dstribubenthe $ era,gng wee mars wit need to be ente:ed le Sande l capacdy each year b l`tlkl5iecvrortt 5421. Promo srth wireleng reri pWnim el new Wile Treatment Pont Se mares to be duelled to new Total Pryor Estimated Years Cost Furring Fuming Sources. Total Prior Esrxnatcd Ve-vs Cost Funding 2011 :n't2 '013 2,3to 2015 :Neer Find $ EQ$ COD 5200.000 525000 5 2JO,W0 5 100.000 5 50.000 GQ Born $16153 MO 5 a..150,9W $8c000ce toe 519950 S0 MO NO 5253030 5 256{1D] 5 0.250.000 SB;050LG0 City of Centralia, IL. GOVERNMENT FINANCE OFFICERS ASSOCIATION 31 The Statistical/Supplemental Section of Budget Document (2005) • Ensure relevance of data • Relate to rest of document • Fit to the specific type of government • Avoid excessive detail • Organize information by major category • Form of government • Geography • Community profile • Demographics and economics • Provide explanations GOVERNMENT FINANCE OFFICERS ASSOCIATION Toflway Service Area Employment 2010.2040 Forecast The fallowing table shows forecasted change in employment for the 12 counties. Significant employ- ment growth is generally expected in the. Tollway service area. By 2040, the number of jobs in the slervi a aria is forecasted to grow by over 1.S million, Service Area Employment 2010 %s. 2040 Forecast County 200. Employment 2040 Forecnsl Fntlllovnteni Brame Dell;alb DnPaIrc 695,750 967,450 271,700 :Iona ] Lake 423,400 559,650 136,250 t,' Ne Chan 338%030 i 1181,5ao 901 30 Atmual " Change 2I11tt-204I 3,1t1-tnn 124,140 201,060 76,920 1.694 Ogle IL9'1' \Vhitesicie 27910 37020 9,110 tin, itW 1t;111110, co ;;2f'. 213,190 57,900 Lt Toil 5,223440 i,973,Mal I.7 11,3a1 I.IW/e De*F era reaarled based en U.S. Ctmmarce Dept Bureau of Ecanamic Ana nil 'Woods L. Poole Economics. 1nt.;W.N."2d11 Complete Economic and DemaglaiMic Data Sainte (COX'S) * Illinois State Toll Highway Authority. IL. GOVERNMENT FINANCE OFFICERS ASSOCIATION 32 Basis of Accounting versus the Budgetary Basis (1999) • Clearly define the basis of budgeting • State if the basis of budgeting and the basis of accounting are the same • If not, note major differences and similarities • Avoid technical terminology • If use of technical terminology unavoidable, define and explain terms GOVERNMENT FINANCE OFFICERS ASSOCIATION badainsi Entails EVatza GOVERNMENTAL FUNDS General Ford Revenue Stabilization Fund Special Revenue Funds Debt Service Funds Accounts for to cost of general County government Established by the Board of Supervisors in FY 2000 to preside a mechanism for attaining a balanced budget without mooring ro tax increases and/or expenditure reductions Azar ,ryaravate M stesses imposed EA ilr cyclical name of the economy. Account tor the proceeds of specific revenue .,'Dunes (other than major capital prosecisj that Are legally eaten.nn m expenditures for specified purposes. Account for the accumulation of resources for and the payments of general obligation bond principal, interest and related Capital Account for financial resources Project Funds used for all general County and School. construction projects otter than Enterprise Fund construction. PROPRIETARY FUNDS Enterprise Funds IW'aswwater Management Program) Account for operations financed and operated in a manner similar to the private sector. The County utilizes Enterprise Funds for the Wastewater Management Program, which presides constuttian, aintenanlo, and operation of the countywide semi system. 8 Plinan7yIran general property taxes, other local taxes, revenue from the use of money and property, license and permit fees, and state shoed taxes. Mintrnun of 90 percent of non- tervning balances idenffod at the Carryover and Third Quaver Reviews uansfered to the Fund until a maximum balance of 3 percent d General Fund Disbursements is attained. A satiety of sources including fees for sootier, General Fund transfers,. federal and state grant funding, cable franchise fees, and special assessments General Fund transfers and special assessment bad pinopal and interest. non special assessmennl louses General Fund transfers, bond proceeds nesenue from the neat estate penny, and miscelaneots contributions. User charges 10 eTasung cus[onen for continuing sewer service and nail lability fees charged le new customers for initial across to she system. Budeeline Basis hccouaBmg Fairfax County, Basis VA. Modified Accrual, Modified donated food not Accrual included, only lease payment due in FY included Modified Rcrruat. Modified donated food not Aenual included, only leave payment due in FY included Modified Accrue, Modified donated food no Accrual included, only tease payment due in Ft included Mndfied Accrual, Modlfed donated food not Accrual included, only fear payment due in FY included Mddfied Accrual, Modified donated food not Accrual included, only lease payment due in FY included Accrual. depreciation Accrual expenses not included GOVERNMENT FINANCE OFFICERS ASSOCIATION 33 U.S. PUBLIC FINANCE MOODY'S INVESTORS SERVICE • ISSUER COMMENT 3 November 2017 RATING General Obligation (or GO Related)1 Aaa No Outlook Contacts Nathan Carley Associate Analyst nathan.carley@moodys.com Eric Hoffmann Senior Vice President/ Manager eric.hoffmann@moodys.com 312-706-9958 415-274-1702 CLIENT SERVICES Americas 1-212-553-1653 Asia Pacific 852-3551-3077 Japan 81-3-5408-4100 EMEA 44-20-7772-5454 Town of Los Gatos, CA Annual Comment on Los Gatos Issuer Profile The Town of Los Gatos is located in Santa Clara County in west central California, approximately 10 miles southwest of San Jose. The county has a population of 1,868,149 and a high population density of 1,469 people per square mile. The county's median family income is $108,637 (1st quartile) and the August 2017 unemployment rate was 3.8% (2nd quartile) ? . The largest industry sectors that drive the local economy are professional/ scientific/technical services, manufacturing, and health services. Credit Overview The credit position for Los Gatos is extremely strong. Its Aaa rating is well above the median rating of Aa3 for US cities. The notable credit factors include a robust financial position, a considerable tax base with affluent income and wealth levels, a manageable debt burden and a significant pension liability. Finances: The town has a very healthy financial position, which is in line with the assigned rating of Aaa. Los Gatos' fund balance as a percent of operating revenues (71.1%) far surpasses the US median. However, this metric declined slightly from 2012 to 2016. In addition, the cash balance as a percent of operating revenues (91.7%) is far superior to other Moody's-rated cities nationwide. Economy and Tax Base: The economy and tax base of the town are exceptionally healthy and are consistent with its Aaa rating. The median family income equals a robust 238.9% of the US level. Moreover, the full value per capita ($338,948) is materially above the US median, and saw an impressive increase between 2012 and 2016. Lastly, Los Gatos' total full value ($10.6 billion) is much larger than other Moody's-rated cities nationwide. Debt and Pensions: The debt and pension liabilities of the town are mid -ranged overall, yet they are weak relative to the assigned rating of Aaa. Favorably, the net direct debt to full value (0.2%) is materially lower than the US median, and remained the same from 2012 to 2016. On the other hand, the Moody's-adjusted net pension liability to operating revenues (2.7x) is materially above the US median. Management and Governance: California cities have an Institutional Framework score 3 of A, which is moderate compared to the nation. Institutional Framework scores measure a sector's legal ability to increase revenues and decrease expenditures. California cities' major revenue sources can only be raised with voter approval, or, in the case of ad valorem property taxes, cannot be raised except to meet GO bond payments. Ad valorem property tax rates cannot be increased above 1% except to meet GO bond payments, and assessed valuation growth is also generally limited to 2% annually unless a property changes ownership. MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Unpredictable revenue fluctuations tend to be moderate, or between 5-10% annually. Across the sector, fixed and mandated costs are generally less than 25% of expenditures. However, California has strong public sector unions, which can limit the ability to cut expenditures. Unpredictable expenditure fluctuations tend to be moderate, between 5-10% annually. Sector Trends - California Cities California cities will continue to benefit from a strong and improving state economy. Growing assessed value trends and resulting property taxes, as well as robust statewide sales tax growth, will continue to raise city property tax and sales tax revenues. Housing values statewide continue to increase and provide long-term strength to the state's cities. Employment trends are positive and will continue to boost the statewide economy, particularly in the high tech sector. California cities, however, remain exposed to growing Long term pension and OPEB liabilities. EXHIBIT 1 Key Indicators 45 Los Gatos 2012 2013 2014 2015 2016 US Median Credit Trend Economy / Tax Base Total Full Value Full Value Per Capita Median Family Income (% of US Median) $8,324M $8,632M $9,419M $9,995M $10,634M $1,787M Improved $281,968 $289,583 $312,274 $328,808 $338,948 $88,380 Improved 239% 244% 241% 239% 239% 113% Stable Finances Available Fund Balance as % of Operating Revenues 76.0% 75.1% 65.4% 59.3% 71.1% 32.5% Stable Net Cash Balance as % of Operating Revenues 94.4% 93.1% 82.9% 77.0% 91.7% 35.4°/a Stable Debt / Pensions Net Direct Debt / Full Value 0.3% 0.3% 0.2% 0.2% 0.2% 1.2% Stable Net Direct Debt / Operating Revenues 0.69x 0.61x 0.57x 0.51x 0.48x 0.93x Stable Moody's-adjusted Net Pension Liability (3-yr average) to Full Value 0.7% 1.0% 1.1% 1.1% 1.1% 1.7% Stable Moody's-adjusted Net Pension Liability (3-yr average) to Operating Revenues 1.67x 2.29x 2.63x 2.59x 2.69x 1.46x Weakened 2012 2013 2014 2015 2016 US Median Debt and Financial Data Population 29,522 29,809 30,163 30,398 31,376 N/A Available Fund Balance ($000s) Net Cash Balance ($000s) Operating Revenues ($000s) Net Direct Debt ($000s) Moody's Adjusted Net Pension Liability (3-yr average) ($000s) $26,012 $28,261 $25,155 $24,121 $29,574 $7,221 $32,327 $35,062 $31,906 $31,339 $38,147 $7,930 $34,229 $37,650 $38,468 $40,710 $41,619 $21,262 $23,745 $22,820 $21,865 $20,875 $19,850 $18,822 $57,276 $86,071 $101,264 $105,241 $111,786 $29,896 Source: Moody's Investors Service This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. 2 3 November 2017 Town of Los Gatos, CA: Annual Comment on Los Gatos MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE EXHIBIT 2 Available fund balance as a percent of operating revenues decreased from 2012 to 2016 Available Fund Balance as % of Operating Revenues US Cities Median 100% 80% 60% 40% 20% Source: Issuer financial statements; Moody's Investors Service i 2012 2013 2014 2015 2016 EXHIBIT 3 Full value of the property tax base increased from 2012 to 2016 (millions) $11,000 $10,000 $9,000 $8,000 Total Full Value 2012 2013 2014 2015 2016 Source: Issuer financial statements; Government data sources; Offering statements; Moody's Investors Service EXHIBIT 4 Moody's-adjusted net pension liability to operating revenues decreased from 2012 to 2016 ■ Debt Pensions 4.0x 3.0x 2.0x 1.0x 0.0x 1 2012 2013 2014 2015 2016 Source: Issuer financial statements; Government data sources; Offering statements; Moody's Investors Service 3 3 November 2017 Town of Los Gatos, CA: Annual Comment on Los Gatos MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Endnotes 1 The rating referenced in this report is the issuer's General Obligation (GO) rating or its highest public rating that is GO -related. A GO bond is generally backed by the full faith and credit pledge and total taxing power of the issuer. GO -related securities include general obligation limited tax, annual appropriation, lease revenue, non -ad valorem, and moral obligation debt. The referenced ratings reflect the government's underlying credit quality without regard to state guarantees, enhancement programs or bond insurance. 2 The demographic data presented, including population, population density, per capita personal income and unemployment rate are derived from the most recently available US government databases. Population, population density and per capita personal income come from the American Community Survey while the unemployment rate comes from the Bureau of Labor Statistics. The largest industry sectors are derived from the Bureau of Economic Analysis. Moody's allocated the per capita personal income data and unemployment data for all counties in the US census into quartiles. The quartiles are ordered from strongest -to -weakest from a credit perspective: the highest per capita personal income quartile is first quartile, and the lowest unemployment rate is first quartile. 3 The institutional framework score assesses a municipality's legal ability to match revenues with expenditures based on its constitutionally and legislatively conferred powers and responsibilities. See US Local Government General Obligation Debt (December 2016) methodology report for more details. 4 For definitions of the metrics in the Key Indicators Table, US Local Government General Obligation Methodology and Scorecard User Guide (July 2014) . Metrics represented as N/A indicate the data were not available at the time of publication. 5 The medians come from our most recently published local government medians report, Medians — Growing Tax Bases and Stable Fund Balances Support Sector's Stability (March 2016) which is available on Moodys.com. 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REPORT NUMBER 1084386 5 3 November 2017 Town of Los Gatos, CA: Annual Comment on Los Gatos MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE CLIENT SERVICES Americas Asia Pacific Japan EMEA MOODY'S INVESTORS SERVICE 1-212-553-1653 852-3551-3077 81-3-5408-4100 44-20-7772-5454 6 3 November 2017 Town of Los Gatos, CA: Annual Comment on Los Gatos FY 2017 Los Gatos Campbell Cupertino Gilroy Los Altos Morgan Hill Palo Alto Saratoga average US CAFR excld Los Gatos Median Cash Balance 36,038,845 27,651,308 62,119,171 23,250,994 42,686,617 12,919,349 47,779,000 13,576,828 32,854,752 7,221 Operating Revenues 38,746,123 48,011,214 92,812,954 49,801,339 39,109,065 35,364,556 164,400,000 21,112,412 64,373,077 21,262 Available General Fund Balance 29,180,624 28,924,105 51,695,980 24,354,609 43,778,103 14,379,374 55,398,000 10,721,129 32,750,186 7,221 Net Pension Liability 47,271,733 50,745,930 36,739,962 74,972,158 31,428,897 40,055,704 377,319,000 6,335,606 88,228,180 N/A Available Fund Balance/Oper Revenue 75.3% 60.2% 55.7% 48.9% 111.9% 40.7% 33.7% 50.8% 50.9% 32.5% Net cash/Oper Revenue 93.0% 57.6% 66.9% 46.7% 109.1% 36.5% 29.1% 64.3% 51.0% 35.4% Net Pension Liability/Oper Revenue 122.0% 105.7% 39.6% 150.5% 80.4% 113.3% 229.5% 30.0% 137.1% N/A Stabilization/catastrophe arrangement GFOA recom - 16.7% of GF oper revenues Amount - 2017 CAFR Stab/catastrophe as a % of oper revenues 25% of GF $6,000,000 $19,000,000 40% of GF 20% of GF no policy 18.5% of GF $2,500,000 expenditures plus 10% of GF expenditures expenditures oper expend revenues 9,939,694 10,941,078 19,000,000 19,103,878 6,905,000 0 29,232,775 2,500,000 25.7% 22.8% 20.5% 38.4% 17.7% 0.0% 17.8% 11.8%