HomeMy WebLinkAbout2018-0820 Study Session MIN
CITY OF
-ASHLAND
CITY COUNCIL STUDY SESSION
MINUTES
Monday August 20, 2018
Council Chambers, 1175 E. Main Street
Mayor Stromberg called the Study Session to order at 5:30 PM.
Councilor Slattery, Morris, Bachman, Seffinger, Jensen and Rosenthal were present.
Citizens' Budget Committee Members Garrett Furruchi, Paula Hyatt, Shane Hunter, and Pamela
Lucus were present.
1. Public Input (15 minutes, maximum)
Susan Hall, Ashland - Spoke regarding the East Nevada Bridge extension. She thanked Public Works
Director Paula Brown for her help regarding the CIP and thanked Administrative Services Director Mark
Welch for always being helpful.
II. First Year Budget Review
City Administrator Kelly Madding gave a Staff Report.
Mr. Furuichi requested more time to see the first year review.
Administrative Services Director, Mark Welch gave an overview of the First Year Review of the budget
and went over a PowerPoint presentation (see attached).
Items discussed were:
• General Fund Review.
• General Fund Highlights - Property taxes came in the above budget, transient occupancy tax 6%
increase, food and beverage tax 7% increase, Salary and benefits below budget.
• Salary and Benefits 10-year review.
• Overtime reductions.
• Materials and Services.
• Central Services' Overview.
• Central Services' allocation study.
• Central Services' Contributions.
• Central Services' Departments.
• Cost allocation plan.
For more information, you can go to: AshlandOR.OpenGov.com
III. Second Year Forecast and Planning - Central Service and Enterprises
Public Works Director Paula Brown went over a PowerPoint (see attached).
Items discussed were:
• Public Works budget.
• Year one end 2017-2018.
• Year two look ahead 2018-2019.
• Water treatment plant.
• Budget allocation.
• Upcoming projects and execution.
Thomas McBartlett Interim Director of Electric went over a PowerPoint presentation (see attached).
Items discussed were:
• How are rates and increases are determined.
• Upgrade system changes.
• Current rate structure.
• Rate calculations.
• Electric updates for FY 2018.
• Upcoming projects for FY 2019
• Complete SCADA Upgrades.
IV. City Administrator Updates
Ms. Madding spoke that Staff has been working with Slattery and Bachman regarding the winter shelter.
She spoke that she would bring information to Council at a future meeting.
The Study Session adjourned to Executive Session at 6:55 PM
V. Executive Session - Immediately following conclusion of study session*
*Purpose of Executive Session Item - Conduct deliberations for labor negotiations, pursuant
to ORS 190.660(2)(e).
The Executive Session adjourned at 7:25 PM
Respectfully submitted by:
City Recorder, Melissa Huhtala
Attest: `
*y Jr Stromberg
i
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-
2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to
ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I).
i
BN 2017/19
First Year Review
Second Year Look Ahead
August 20, 2018-Meeting #2
Introduction
w Purpose of this Meeting
w Format of the review
w Review year end General Fund numbers
wReview of Central Services
wEnterprise Fund Review
wPublic Works
w Electric
w Feedback on next steps
2017/19
$286,173,664
Non-Operating EnterpriseFunds Internal Funds
$17,20.4,778 $ln,107,220 $40,950,579
Governemntaf Special Capital Water
DebtService
$69,533,789 $29,326,301 $12,240,587 $54,635,Ug
L Debt Service Wastewater
Gerieral Fund CDBG I MIM
$56,387,024 $453,786 $4,964,191 $31,9M,116
Reserve ParksCIP Stormwater HealthBenefit
,,435 $5,995,925 $3,196,095 $13,436,994
Streets Electric Equipment
Replacement
$25,847,832 SM,673,056
$7,816,595
ParksEquipment
$602,5"
General Fund Review
w Ended FY 2017/18 Positive! ! ! ! ! !
wGood News:
wNo Ending Fund Balance Drawdown (budgeted
$1.25 million)
mAble to utilize those funds moving forward and into
BN 2019/21
Bad News:
wStructural Deficit still exists
wAllows for a plan for long term deficit reductions
wSavings from deferred/delayed hiring of positions
m Most positions filled
General Fund Highlights
m Property Tax Above Budget
m Transient Occupancy Tax: 6% Increase
m Food and Beverage: 7% Increase
m Salary & Benefits: $793,681 Below Budget
Salary and Benefits- 10 Year Review
PERS 13.49% 21.43% 59%
General Increase
PERS Police 13.49% 26.39% 96%
and Fire Increase
Healthcare 1,048 1,842 76%
increase
COLA 16.5-20%
Increase
General Fund Revenue (prelim)
2017-18 Actual 2017-18 Budget Variance 2018-19 Budget
Current Property Taxes 10,599,005 10,565,200 33,805 10,931,200
Electric Utility UserTax 3,329,704 3,359,980 -30,276 3,530,490
Lodging TOT Tax 2,909,529 2,887,400 22,129 2,988,500
Prior Property Taxes 256,208 350,000 -93,792 420,000
Water Surcharge for AFR 174,979 175,000 -21 175,000
Other 212,102 37,500 174,602 37,500
Taxes 17,481,526 17,375,080 106,446 18,082,690
Franchise Fees 3,475,651 3,441,180 34,471 3,560,850
Charges for Services 1,622,468 1,611,500 10,968 1,715,500
Licenses and Permits 1,081,346 1,073,350 71996 1,080,650
Intergovernmental Revenue 1,986,734 3,956,346 -1,969,612 651,520
Fines and Forfeitures 546,213 436,000 110,213 441,900
Miscellaneous Revenues 61,361 187,200 -125,839 188,000
0peratingTransfers In 266,103 256,500 9,603 256,500
Interest on Pooled Investments 100,155 40,000 60,155 40,000
Total Revenues 26,621,557 28,377,156 -1,755,599 26,017,610
Removing Grants 24,634,823 24,420,810 214,013 25,366,090
General Fund Salaries and Wages
2017-18 Actual 2017-18 Budget Variance 2018-19 Budget
Regular Employees 7,154,135 7,394,652 -240,517 7,601,415
Overtime 627,800 661,650 -33,850 619,542
F LSA 207,195 204,270 2,925 207,960
H iday Pay Out 179,262 201,467 -22,205 207,260
emporary Employees 119,269 311,868 -192,599 1441561
Vacation Pay Out 55,970 126,473 -70,503 34,495
Sick Leave Pay Out 17,603 26,055 -8,452 26,625
Temporary Cadets 62,491 0 62,491 0
Duty Pay 61 16,130 -16,069 16,610
Total Salaries & Wages 8,423,785 8,942,565 -518,780 8,858,468
1
General Fund Benefits
2017-18 Actual 2017-18 Budget Variance 2018-19 Budget
Group Health Insurance 1,879,572 1,901,440 -21,868 2,090,160
PERS 2,214,101 2,421,753 -207,652 2,474,241
F CA/MEDICARE Contributions 633,298 646,791 -13,493 669,927
Workers Compensation 153,608 176,440 -22,832 192,420
H RA V E BA 163,736 171,606 - 7, 870 175,246
Deferred Comp 40,420 44,430 -4,010 44,430
Other Benefits 5,324 2,500 2,824 2,500
Total Benefits 5,090,059 5,364,960 -274,901 5,648,924
General Fund: M&S
2017-18 Actual 2017-18 Budget Variance 2018-19 Budget
Contractual Services 8,120,253 10,010,824 -1,890,571 7,218,416
Internal Charges & Fees 2,590,139 2,610,592 -20,453 2,629,469
Grants 927,455 932,425 -4,970 936,815
Rental, Repair, Maintenance 253,927 327,195 -73,268 332,595
S 'Plies 286,453 337,252 -50,799 306,953
ther Purchased Svcs 261,171 321,041 -59,870 259,060
Communications 178,813 190,755 -11,942 169,405
Operation Transfers Out 271,851 2711851 0 105,500
Equipment 0 15,000 -15,000 15,000
Programs 104,350 208,385 -104,035 96,135
Contingency 0 790,000 -790,000 0
Improvements Other than Bldgs 77,366 0 77,366 0
Commission 2,013 2,371 -358 2,371
Material and Services 13,073,791 16,017,691 -2,943,900 13,974,693
General Fund Overview
2017-18 Actual 2017-18 Budget Variance 2018-19 Budget
Total Revenues 26,621,557 28,377,156 (1,755,599) 26,017,610
Total Expenses 26,587,634 30,325,216 (3,737,582) 26,579,111
Revenues Less Expenses 33,923 (1,948,060) 1,981,983 (561,501)
More Information
AshlandOR.OpenGov.Com
Central Services
What is Central Services
Services provided to the organization
Administration Administrative Services
Public Works (Administration, GIS, Engineering)
Information Technology
City Recorder
Costing Method to reflect true cost of services
i
I
Sample Allocation
Percentage of
Time on Cost of Postion to Fire's
Payroll Position Overall Payroll Payroll Function Fire % of FTE Allocation
$50,000 90% $45,000 14% $6,311
Fire Department
# of FTE Fire 37
# of FTE Citywide 263.82
% Fire to Citywide 14%
Central Services' Contributions
BN 2017/19 Budget
Program Contribution
Administrative Services Dept 12,982
Adminstration Department 248,460
Cemetery 100,298
Community Development Dept 802,352
Conservation 55,908
Electric Department 2,512,550
Facilities 23,142
Fire and Rescue Department 795,270
Information Technology Dept 980,534
Maintenance - Property & Equip 396,946
Parks Department 766,092
Police Department 1,014,750
Storm Drain Collection 337,470
Wastewater Collection 1,298,814
Wastewater Operations 1,194,344
Wastewater Treatment Plant 792,910
Water Distribution 1,490,716
Water Supply 324,362
Water Treatment Plant 365,638
Total 13,513,538
Central Services' Overview
BN 2007/09 BN 2009/11 BN 2011/13 BN 2013/15 BN 2015/17 BN 2017/19
Actual Actual Actual Actual Actual Budget
Salary and Wages 8,397,130 8,428,356 8,645,507 10,104,594 10,818,459 11,735,284
Material and Services 1,938,979 1,726,348 2,347,820 1,860,725 2,392,827 2,432,513
Ca p i t - 1,291 - - 299,281 42, 500
Int nal Charges 927,869 966,826 941,810 1,230,565 1,366,503 1,617,299
Total 11, 263, 978 11,122, 821 11, 935,137 13,195,884 14, 877,070 15,827,596
i
Central Services' Departments
By Department
Public Works
Department, 1,759,968 Administrative Services
Dept, 2,526,409
City Recorder % Total
Department, 196,861 Administrative Services Dept 33.80%
Public Works Department 23.54%
Information Systems 17.41%
rca, M City Administrator 8.26%
Legal 6.93%
Human Resources 5.56%
City Recorder Department 2.63%
Mayor and Council 1.87%
Information Systems,
1,301,790 City Administrator,
Mayor and Council, Human Resources_ 617,497
138,862 , Legal, 517,832
415,951
Central Services' by Expense Type
Year one
2017-18 2017-18 Actual to
Actual Budget Budget 2018-19 Budget
Salaries & Wages 3,425,515 3,471,475 -45,960 3,557,899
Fringe Benefits 2,158,706 2,290,094 -131,388 2,415,816
Internal Charges & Fees 810,679 835,900 -25,221 781,399
ontractual Services 342,347 468,790 -126,443 4141920
Communications 147,157 227,725 -80,568 224,925
Supplies 192,807 171,127 21,680 169,377
Other Purchased Svcs 136,083 159,856 -23,773 1601556
Rental, Repair, Maintenance 96,537 96,151 386 961151
Equipment 145,043 146,905 -1,862 50,000
Improvements Other than Bldgs 1,100 22,500 -21,400 20,000
Programs 14,346 14,346 0 14,784
Commission 4,851 9,450 -4,599 71450
Total Expenditures 7,475,171 7,914,319 -439,148 7,913,277
Expense Categories
Materials & Capital,
Services,
_..G+ 0.28%
26.92% , n
Salary &
Wages,
72.80%
I
Central Services' Personnel
2017-18 Salary By Department
Public Works
Department, Administrative
918,445 Services Dept,
973,239
Y 'i'~: F mfr k ~ :City Recorder
Department,,
91,579
h
Information Adminstration
Technolo Department,
gy
Dept, 619,313 822,941
Year 1 Review-Revenue
Yearone
2017-18 2017-18 Actual to
Actual Budget Budget 2018-19 Budget
Charges for Services 7,011,567 711101748 -99,181 711241750
Operating Transfers In 1,200,000 1,200,000 0 467,000
Miscellaneous Revenues 6,731 0 6,731 0
Taxes 451762 78,225 -32,463 821550
Interest on Pooled Investments 151415 8,700 6,715 81900
Total Revenue 8,279,475 8,397,673 -118,198 7,683,200
Year 1 Review-Expenses
Year one
2017-18 2017-18 Actual to
Actual Budget Budget 2018-19 Budget
Salaries & Wages 3,425,515 3,471,475 -45,960 3,557,899
Fringe Benefits 2,158,706 2,290,094 -131,388 2,415,816
Internal Charges & Fees 810,679 835,900 -25,221 781,399
Contractual Services 342,347 468,790 -126,443 414,920
Communications 147,157 227,725 -80,568 224,925
Supplies 192,807 171,127 21,680 169,377
Other Purchased Svcs 136,083 159,856 -23,773 160,556
Rental, Repair, Maintenance 96,537 96,151 386 96,151
Equipment 145,043 146,905 -1,862 50,000
Improvements Other than Bldgs 1,100 22,500 -21,400 20,000
Programs 14,346 14,346 0 14,784
Commission 4,851 9,450 -4,599 7,450
Total Expenditures 7,475,171 7,914,319 -439,148 7,913,277
Central Services' Review
Yearone
2017-18 2017-18 Actual to
Actual Budget Budget 2018-19 Budget
Total Revenue 812791475 8,397,673 -118,198 7,683,200
Total Expenditures 7,475,171 7,914,319 -439,148 7,913,277
Revenue minus Expenditures 804,304 483,354 320,950 -230,077
*$1.7 million Transfer ($1.2 million year one)
Cost Allocation Plan
w Cost Allocation Plan currently being developed
m The new plan will more accurately reflect costs for each department
w Plan to have a review in November
it
Enterprise Funds
BN 2017=19 Public Works
Program Summary
Enterprise Funds and More
Paula C. Brown, PE
Public Works Director
(and the whole team)
I
I
~:A I n t e n t
m Overview
wYear i End (2017-18)
Review of what was completed
wYear z look Ahead (2oi8-ig)
w Expectations of what will be completed
wAnd Beyond
w How are we planning for the years ahead
®Master Plans and Capital Improvements Plan
Revenue projections
Public Works Budget - BN 2017-19
Equipment (CIF), Facilities Maint (CIF), General Fund
$6,025,472, 6% $2,458,100, 2% (Cemetery),
$851,778, 1%
Central Services, Street Fund,
$3,644,262, 3% $21,648,263 , 20%
Storm Water Fund, A
Airport Fund,
$1,734,213, 2% $814,455, 1%
Oro
Wastewater Fund,
$24,305,778, 23%
Water Fund,
$106,161,201 (BN) $44,678,880, 42%
IMAA - Year End (2017-18) - Focus
Analyzing current processes and plans (operations /CIP)
Decisions and changes: Water Plant, Transportation SDCs,
Wastewater Temperature Solutions (Hardesty property),
Wastewater Collections (Inflow/Infiltration)
w Master Plans in process: Water, Airport, Storm Drainage,
Transit Feasibility
Design efforts for future capital projects
m street projects: Hersey, Independent Way, N. Mountain Ave
!Water: Ashland Canal (TID), Pump Stations, Water Plant
Wastewater: Outfall relocation
Facilities: Gun Club, Pioneer Hall assessment, City Hall concepts
Year i End (2017-18) -Execution
w Capital Improvements -Project Completion
Wastewater: Grandview Lift Station
Streets: Hersey Sidewalks (ODOT CMAQ)
Facilities: Band Shell Repairs, Police Generator
m Equipment Purchases
All but 5 pieces have been procured for the BN
w Water Conservation
Love Your Water -Limit Water Waste
Significant Carry Forward on Capital Projects
MAL Year Z Look Ahead zoo 8-i9
mFocus
w Design Completion and Project Execution
wComplete Master Plans in process (year 1)
Start Master Plan Updates: Wastewater Plant, Facilities,
Transportation
w FERC / Hosler Dam - Part 12D
- Downtown Revitalization (ODOT TGM grant)
wSafe Routes to School Grants (ODOT)
Evaluate better use of TI D water for irrigation needs
®Complete and receive equipment purchases
Evaluate funding options for EOC
Year 2 Look Ahead (2oi8=19)
wProject Execution
w Design Completion
7.5 mgd Water Treatment Plant; Phase i, start Phase 2
East and West Fork Transmission Line
Wastewater Water Quality Trading Partnership
In house: water lines
w Begin DEQ Permit Update for Wastewater Treatment Plant
Triggers future wetlands, plant improvements, etc.
Year z Look Ahead (2m8-ig)
w Project Execution
Construction
Streets: Hersey Reconstruction and Rail Crossing,
Independent Way, Wightman Overlay, N. Mountain Ave
overlay/rebuild, CMAQ Chip Seal various streets, Grandview
Phase z, "Road Diet" Improvements, Plaza E. Main Street
Sidewalk
Water: complete pump stations, water line replacement in
Oak Street and Siskiyou (Crowson to I-5)
Wastewater Collection: N. Mountain Ave, A Street
Facilities: Roof Replacement at ComDev/Engineering Bldg
And Beyond
w Enterprise Funds
w Master Plans drive Capital Improvements Plans
m CIP priorities + revenue projections drive budget decisions
w Engineering /Project Management requirements follow
Operations (enterprise funds)
w Evaluate service level requirements and fees
w Maintenance and operational requirements
Facilities
w Operation and Maintenance vs. Capital Improvements
I*,l Questions?
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UPDATE FOR &CO I L &yz BUDGET COMMITTEE
AUGUST 20, 2018
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Recent g questions and concerns
*How are rates and increases determined?
•Why are increases different for each customer
type?
•The increase-in, bill does not equal the
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published rate "increase for :..ate glass.
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DETERMIN., DINCREASES
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In-depth cost of ser'ice stu Y completed` fall of 2016
• Identifies actual costs to provide service to each rate class
• Identifies and eliminates cross-subsidies between rate classes
• Projects revenue requirements to maintain long-term utility
f health and implements 10 year infrastructure plan
recommendations
•
ry; h, eve a= a ase:cl~ o~n~above, factors
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Rates are influenced y'sevepra`factors: The'most influential are:
• Increased cost of purchased power from BPA
• Increasing available working capital closer to
industry standard
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System improvement-costs-to.-maintain reliable
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W,, H Y I N C R EASE S VARY
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The variations in rate increases are a result of
the identified cost to serve each rate class.
j • Rate design is intended to have each customer
paying an equitable amount for their actual
use.of~the
a~ste~m and eliminate subsidies
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THE MATH ON R ES''
• To maintain financial health current utility best practice
is to assign more of the fixed operating costs to the
customer base fees and relying less on variable sales
(customer consumption) to maintain operations.
• Published increase percentage is an average of the
e; fective increase, across the customer yc asr ~
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RATE EXAMPLES RESIDENTIAL FY 19
• Published increase 6.18%
• Base fee increase $2.50 or 25%
• Kwh first 500 increase $0.00205/kwh or 2.9%
• Kwh 500-5000 increase $0.00205/kwh or 2.4%
• Kwh over 5000 increase $0.005/kwh or 4.16%
• Where do you get 6.18% from this? It's an average across
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RATE IMPACTS-BY USAGE
Us'''e `Kwh Effective ° o incite e
250 10.9% $3.01
500 7.8% $3.52
750 6.1% $4.03
1000 5.2% $4.54
1500 4.3% $5.57
2000: sb 38Q/ozr :$6:59
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- Based on industry standards it is recommend the
utility have 70 days cash on hand. At the time
of the study, the projections showed the utility
with less than 15 days. The recommended rates
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- ELECTRIC U P DATES FOR''FY: 18
a r
•Installed or replaced 25 poles
• Installed or replaced 18,000 feet of underground
conductor
• Expanded and upgraded for several new
developments
• Partnered with PW on Winburn Way upgrades and
EV charging infrastructure
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• Began work to upgrade electric SCA { w "2
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~ IN THE ~o R" F so 9
k • Complete SCADA upgrades
• Install conduit on Hersey for future upgrades w/PW
• Evaluate feasibility of purchasing Mountain Ave. sub-station
• Continue replacement of aging underground cable
• Planning for system automation in sensitive load areas
• Update 10 year planning study
• Stay active Nith_ traade, groups and_ with coming B PA rate
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4., Thank you all for your time
As always you are welcome to call or visit the electric
department for more information and detailed
discussion
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Thomas McBartlett, 541-552-2314
Thomas.mcba rtlett(d)-Ashland.or.us
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