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Home My WebLink About2019-0213 Study Session MIN CITY OF ASH LAN D CITY COUNCIL STUDY SESSION MINUTES Wednesday,February 13,2019 Council Chambers, 1175 E.Main Street The Mayor called the Study Session Meeting to order at 6:00 p.m. Councilors Slattery, Graham,Akins, Seffinger,Rosenthal and Jensen were present. Budget Committee Members Hunter,Hyatt,Lucas,Moran,Runkel,Morris and Bachman were present. I. Public Input(15 minutes, maximum) None. City Attorney David Lohman reminded all that this is not a Budget Committee Meeting and just a Study Session. He went over the protocol. II. 6th Quarter Financial Report Councilor Graham announced she may have a conflict of interest due to her sister working at the City of Ashland. Administrative Services Director Mark Welch presented a PowerPoint to the Budget Committee (see attached). Items discussed were: • Financial Reports. • City wide revenues. • General Fund. • Revenue increase. • Property Tax increase. • TOT increase. • Food and Beverage Tax. • Parks General Fund. • AFN. • Water Fund. • Benefits with current employee's verses PERS Tier 1. • PERS. • Fund Balance chart. • Property Tax. Akins arrived at 6:42 PM III. Budget Calendar Mr. Welch went over the Budget Calendar. IV. Council Goals-15 Minutes City Administrator Kelly Madding went over the Council Goals (see attached). Goal 1: 1. Develop current and long term budgetary resilience. 2. Analyze city departments programs to gain efficiencies, reduce cost and improve services. 3. Enhance and improve transparency and communication. Ms. Madding went over Essential Services and Value Services. Runkel announced that there is a Budget Training on February 20th in Medford from 9AM-3PM. The Study Session was adjourned at 7:20 PM Respectfully submitted by: ac.).i.44A..„...} City Recorder Melissa Huhtala Attest: May Stromberg 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 l). 1 (-,,, of,Ashland 6th Quarter Financial Report Financial Report Introduction This web page is designed to provide useful information to the community on a quarterly basis.The Administrative Services Department prepares quarterly financial reports that are discussed with the City Council and approved.The reports focus is on budget compliance and not analytics.This site is intended to provide both the budget compliance piece but also provide a means to evaluate the information in more details and provide additional information for decision makers. Citywide Revenue •-Back'o n Reset, Funds(Y No Project)CT Revenues) Help ( Share I Updated On Z7 Fah,2019 Expand All December 2017-18 Actual 2017-18 Original Budget 2017-18 Variance(?) 201748 Variance 0 December 2018-19 Actual 2018 4 a Enterprise $18,670,484[ $55.012,152 -36,341,668 -66.06% $20.181,677 qe: d c as ■General Fund 20,092,822 iii:i: 32,361,079; -12,268,257 -37.91% 21,171303 -:-- a Internal Service 8.827,401 E8,3:2::::::::":' 17.849.693 -9.022,292 -50.55% 8.754,003 ii r Special Revenue Fund 2,269,041 12.196.389.∎ -9,927,348 -81.40% 2,152,683 ''t�- °r rrrr rxrr: ■Capital Projects 1,265,824 6.448.260: -5,182,436 -80.37% 2.134,749 «'r a Debt Service 1,026,026, 1.885,835; -859,809 -45.59% 1,132,992 ■Cemetery 12,201,. 32,OOOr -19,799 -61.87% 19,830 Total $52,163,800 1:8::÷;.. .$125,785,408° -58.53% $55.547,237 Overall Citywide revenue continues to track very close to the budget.Reviewing information on a Citywide basis does not provide much useful data since the City provides many different services with different funding sources.Overall the City revenue collections are in line with the budget and have increased year over year. Citywide Expenses Funds"...-._ Z7 rth ox' Export Expand All - R O' +S" -m w.','-''R.Orieinai Rild;et 201718 Variance(? 701718 Vanancu tS December 201849 Actual 2018-1 •E°terp`15e Welcome to The city of Ashland's Financial S 1G 798,18(i •General Fund Reporting Platform 17.294,625 Internal Service This site is designed to help you understand more about 9.265,9=3 the operations and performance of Ashland.Start •Special Revenue Fund 2,119 0 .. exploring with these visualization and analytics tools to capital Projects learn more. 1, ?.'bt service You can read about Multi-Fund Accounting or view other topics in the Help Legend menu. Filters c How To Us,-Thir Report View Report Overall the city is spending less money than budgeted.Through December the actual expenditures have increased 10%from the same time last year.The reason for this increase is due to spending more on capital projects. General Fund 4-Back : Reset Help Share 7 O Re et Types'�T General Fund)�T No Project') P Updated On 27 Feb.2019 Collapse All December 2017-18 Actual 2017-18 Original Budget 2017-18 Variance el 2017-18 Variance° Decen{ .Revenues 5 17,060.613 525.956.879 -8.896.266 -34.27% o Taxes 13,004,046 17.377,580 -4,373,534 -25.17% e Franchise Fees 1.571,714 3,441.180 -1.869.466 -54.33% o Charges for Services 868.113 1,611,500 -743.387 -46.13% e Working Capital 0 0 0 0.00% o Licenses and Permits 598.813 1.073.350 -474.537 -44.21% o Intergovernmental Revenue 530.820 1.536.069 -1.005.249 -65.44% o Fines and Forfeitures 279.191 436.000 -156.809 -35.97% o Operating Transfers In 132.028 256.500 -124.472 -48.53% O Miscellaneous Revenues 46.039 187.200 441.161 -75.41% o Interest on Pooled Investments 29,849 37.500 -7.651 -20.40% .Expenses 13.145,242 27,904,939 -14.759.697 -52.89% o Personnel Services 6.826,142 14,036.558 -7.210.416 -51.37% e Material and Services 6,152,249 12.947,881 -6.795.632 -52.48% e Transfer-Out,Contingency,Ending Fund Balance 166.851 905.500 -738.649 -81.57% e Capital Outlay 0 15.000 45,000 -100.00% Revenues Less Expenses 1..3.-15.370 5-1.948.060 5.863,430 300.99% General Fund remains a closely scrutinized fund due to potential revenue reductions in TOT and also due to increased cost of Employees.The General Fund revenue grews$900,000 from the previous 6-months ending December 31st whereas expenditures have increased$1.1 million. • Property Tax Property Tax 1aM OM- OM- 7M- 6M- 5M- 4M- 3M- 2M.. 1M-- 0 Dec 2016 Dec 2017 Dec 2018 $10,082,006.69 Updated 2 weeks ago In Dec 2018 Property Tax collections continue to improve year over year.From 2016 to 2017 collections grew 5.27%,reflective of the growth in assessed valuation along with the increased property tax levy.From 2017 to 2018 the collections have grown 3.47%,in line with the growth in assessed valuation. Transient Occupancy Tax 22.22 � Quarter 2 500K 4,0(-j : iiIflhIIIflhiI 1 00K I I 0 2C0 _ _,.2 2019 2013 2016 22'19 $596,145 • Updated 2 weeks ago in 2019 Transient Occupancy Tax grew in the second from the previous year.When we normalize for the rate increase,TOT grew 3.7%from the previous period,with a 1.5%reduction from the same quarter 2 year ago.TOT remains closely watched as it can forecast future concerns in the tourism industry and one the City will continue to monitor closely.The future forecast of TOT remains challenging as a change in weather and wildfire smoke could improve the numbers,or reduce the collections.The current assumption is for the smoke events to continue with a fiat TOT collection going forward. Food and Beverage Tax 2nd Quarter 6 5 HILl 1. 2013 2014 2015 _'':I 16 2, 2201,,, $682,523.11 Updated 2 weeks ago in 2019 Food and Beverage collections have decreased in the second quarter down 2.4%over the same period last year.Food and Beverage collections are first used for Wastewater Debt and then split between Parks and Streets.A downward trend in this revenue has the potential to impact capital projects long term. • Parks General Fund E Back . 3 Reset Types(T Parks General Fund)(T No Project) Help Share�1 I Und00ed 27 Erb.2019 Collapse All December 2017-18 Actual 2017-18 Original Budget 2017-18 Variance0 2017-18 Variance(?) Decem ■Revenues $3.032.210 $6,404.200 -3,371,990 -52.65% •Charges for Services 3.017,781 6.267,200 -3.249,419 -51.85% •Operating Transfers In 0 85,000 -85.000 -100.00% I.Working Capital 0 0 0 0.00% •Miscellaneous Revenues 11.512 30.000 -18.488 -61.63% 1,Intergovernmental Revenue 0 15.000 -15.000 -100.00% •Interest on Pooled Investments 2.917 7,000 -4.083 -58.33% Expenses 2.857,834 6.595.140 -3.737.306 -56.67% •Personnel Services 1.838.286 4.074.590 -2.236.304 -54.88% •Material and Services 1.016.865 2.315.550 -1.298.685 -56.09% •Transfer-Out,Contingency,Ending Fund Balance 0 195,000 -195,000 -100.00% Capital Outlay 2.682 10.000 -7,318 -73.18% Revenues Less Expenses $174.376 5-190.940 365,316 191.32% I The Parks General Fund continues to maintain its positive fund position in the 2nd Quarter of 2019. The Parks Fund has revenue that exceeds expenses. Ashland Fiber Network <—Back •>, S Reset Types 7 Ashland Fiber Net(AFN...)(T No Project) Help•• Share Updated-.:iii 27 Feb.2019 1 Collapse All December 2017-18 Actual 2017-18 Original Budget 2017 48 Variance(?) 2017-18 Variance 0 Decem ■Revenues $1.088.142 $2.141.010 -1.052,868 -49.18% ✓Charges for Services 1,084,541 2.139,010 -1.054,469 -49.30% o Working Capital 0 0 0 0.00% I,Interest on Pooled Investments 3,112 2.000 . 1.112 55.61% 0 Miscellaneous Revenues 489 0 489 — •Expenses 996.007 2.250.163 -1,254,156 -55.74% • ▪Material and Services 674,757 1.358,763 -684,006 -50.34% r Personnel Services 320.887 711.400 -390,513 -54.89% o Transfer-Out.Contingency,Ending Fund Balance 0 i 105.000 -105.000 •100.00% Capital Outlay 363*` 75.000 •74,637 -99.52% Revenues Less Expenses $92.135 5-109.15 201,288 184.41% !, I r • I Water Fund E-Back O Reset Types�y Water Fund)CT No Project) Help•. 1 Share Updated On 27 Feb.2019 Collapse AU December 2017-18 Actual 2017-18 Original Budget 2017-18 Variance 201718 Variance° Decor 4•Expenses $3.697.653 $23,217.226 -19.519.573 -84.07% •Capital Outlay 618.535 15,700,449 -15,081,914 -96.06% *Material and Services 1,586,067. 3.563,616 -1.977,549 -55.49% 1,Transfer-Out.Contingency.Ending Fund Balance 125,000 1.060,000 -935,000 -88.21% e Personnel Services 896.803 1,998.904 -1,102.101 -55.14% ■Debt Services 471,248 � 894.257 -423,009 -47.30% YYi e Revenues 5.350.517 23,474,910 -18,124,393 -77.21% ■Debt Revenue 425,491 ',. 'f-;- 15,496.588 -15.071.097 -97.25% e;f i.Charges for Services 4.868.002 t: 7,921,322 -3.053.320 -38.55% fi ■Working Capital 0 -.__v 4.4,4 l+J � C�' 0 0 0.00% Interest on Pooled Investments 56,515,...N.r : ' 32,000 24,515 76.61% f,_1.-, ■Miscellaneous Revenues 510 , 25,000 -24,490 -97.96% Revenues Less Exp.mes $1,652,865 5 257,684 1.395.181 541.43% I I I Links 6th Quarter Financial Repac5 DY•-.0-. •r e -1- 'i-a '• :-Roll Fund Balance as of 12 31.18 LOGOTYPE OpenGov Add links POWERED BY Of ENi3OV 0 CITY COUNCIL GOALS AND PRIORITIES 2019 - 2021 BIENNIUM Presentation to City Council February 13, 2019 Kelly A. Madding, City Administrator GOAL I : DEVELOP CURRENT AND LONG -TERM BUDGETARY RESILIENCE Continue to improve the budget process: transparency, rigor, innovation, community involvement, and collaboration Evaluate revenue streams GOAL 2 : ANALYZE CITY DEPARTMENTS/ PROGRAMS TO GAIN EFFICIENCIES , REDUCE COSTS AND IMPROVE SERVICES - Develop a new (revised) strategic and marketing business plan, with goals, objectives and performance measures for AFN ,-- Develop a space needs and asset management plan, evaluate real property and facility assets -- Develop a timeline to review and update the Comprehensive Plan >Continue to make Community Development more user-friendly > Evaluate the Code Compliance program GOAL 2 : ANALYZE CITY DEPARTMENTS/ PROGRAMS TO GAIN EFFICIENCIES , REDUCE COSTS AND IMPROVE SERVICES Implement a cost recovery plan and analysis for each department that coincides with the annual review of fees and charges and revenues - Examine the City's grant programs to ensure that their processes and outcomes align with council goals -- Evaluate and communicate street program timelines and funding security Examine community service alternatives within the Municipal Court program GOAL 3 : ENHANCE AND IMPROVE TRANSPARENCY & COMMUNICATION Develop a robust program to engage with Ashland citizens about City priorities and our progress on those priorities, public input opportunities and processes, how individual citizens can help meet City goals, budgeting and decision-making processes, etc. Strengthen partnerships with local organizations around our value services so we can effectively assist with community-wide challenges by leveraging the assets of the City and the knowledge of local people in creating shared solutions. ESSENTIAL SERVICES ESSENTIAL SERVICES ARE THE FUNDAMENTAL SERVICES PROVIDED BY THE CITY OF ASHLAND WITHOUT WHICH ASHLAND WOULD NO LONGER FUNCTION AS A COMMUNITY. THE PROCESS OF ALLOCATING CITY OF ASHLAND RESOURCES WILL ENSURE THAT THESE SERVICES MEET THE NEEDS OF ASHLAND RESIDENTS. ESSENTIAL SERVICES UTILITIES & INFRASTRUCTURE PUBLIC SAFETY • Electric System • Fire • Wastewater System (sewer) Police • Street Repair and Maintenance • Municipal Court • Drinking Water System • Stormwater System COMMUNITY DEVELOPMENT Planning & Building Inspections/Plan Review Parks Maintenance ii VALUE SERVICES THE CITY OF ASHLAND CURRENTLY PARTNERS WITH OTHER LOCAL ORGANIZATIONS TO PROVIDE VALUE SERVICES, WHICH STRENGTHEN THE COMMUNITY BY HELPING TO ADDRESS SPECIFIC CHALLENGES. THE CITY OF ASHLAND WILL CONTINUE TO LEVERAGE ITS RESOURCES TO DEVELOP AND/OR ENHANCE ITS VALUE SERVICES. NOTE THAT ALL VALUE SERVICES ARE IMPORTANT. THE LIST REPRESENTS THE PRIORITY COUNCIL IS PLACING ON THESE VALUE SERVICES AS THE 2019-2021 BIENNIAL BUDGET IS PREPARED, GIVEN THE PROGRESS THAT HAS BEEN MADE TO DATE TO ADDRESS THEM AND THE URGENCY WITH WHICH THEY NEED TO BE ADDRESSED. VALUE SERVICES TIER I : HIGHER PRIORITY • Emergency Preparedness • Address Climate Change TIER 2: MODERATE PRIORITY TIER 3: LOWER PRIORITY • Reduce Wildfire & Smoke Risk • Acquisition of New Parks • Economic Development • Downtown Parking • Housing Needs • Multi-Modal Transportation ▪ Water Conservation • Homeless Services • All-Age Friendly Community QUESTIONS ?