2010-2011 Biennial Budget

Budget MessagePresented by Chris Jordan, City ManagerApril 27, 2009

To Begin… Thank You

• To our citizens–For sticking with us through the financial crises of the past several years

• To the staff–For doing everything they can to serve the community in tough economic times–This is when our citizens need us the most –You come through with dedication and a sense of humor

Before We Move Forward… A Look Back

• Prior year budgets did not meet policy reserve levels

• From FY 2002 to FY 2005, appropriations were exceeded in 50 categories

• No audits between FY 2000 and FY 2007 were completed on time

• No GFOA awards from 1998 to 2007

• From 2000 to 2005:– Three separate incidents of criminal theft totaling more than $1.5 million

Main Theme: Change

• FY 2008 and FY 2009 Budgets were the first award winning budgets since 1998

• FY 2008 Comprehensive Annual Financial Report will be the first award winning report since 2000

• FY 2008 audit was the first “clean” audit since 2000 and the first audit completed on time since 1999

• 2010-2011: First West Linn biennial budget

Entering a New Era

• An era of fiscal restraint and accountability– Previously, an era of excess beyond appropriations– In FY 2009, we do not expect to have to supplement for year-end adjustments

• The FY 2009 Budget, despite our best efforts, did not meet reserve policy minimums in three funds

• The 2010-2011 Biennial Budget meets policy requirements in all funds

Budget Serves Four Roles

• Financial Tool

• Policy Document– Articulate policy initiatives

• Legislative Document– Propose legislative changes

• Communications Tool– Assist the community in understanding priorities and financial outlook

Financial Summary

• Balanced budget at $74.3 million

• Assumes 139.13 FTE– 0.5 less than the FY 2009 Budget

• No new fees or taxes

• It would not have been possible to sustain current service levels without an increase in taxes without the approval of the County Library District

City Property Taxes

• Total City tax rate actually decreases– Permanent rate remains the same at $2.12/$1,000– January 2009 refinancing decreases bond rate from $0.38/$1,000 to $0.33/$1,000

• As a reminder:– West Linn tax owners pay $17.88/$1,000– The City’s portion is only 13 percent of the total rate

$2.51

$5.04

$6.54

$2.27

$5.06

$2.52

$2.12

Permanent property tax rates of cities in West Linn’s area

Utilities & Other Fees

• Five percent increase for utility rates effective January 1– Reviewed and approved by the Utility Advisory Board

• Review/analysis of water rates to be completed later this year

• Tiered rates system to encourage conservation

• Five percent increase for parks and streets fees effective July 1

• Rate increases also scheduled for Building Inspection fees

Biennial Budget Priorities

• Maintain current service levels

• Accomplish the Council goals– All goals have adequate funding

• Maintain or improve infrastructure– $6.7 million for utilities infrastructure– $3.4 million for street maintenance– $2.5 million for parks projects

• Funding for police station and aquatic center land– $2.5 million for land acquisition

Community Focus

• Neighborhood Association Grants– $1,500 per year per Neighborhood Association

• Community Grant Program– $25,000 per year awarded on a competitive basis– Applications due May 4, 2009– Recommendations made by citizen members

Programs & Policies

• One-time transfer of $214,000 from General Fund to Building Inspections Fund to pay off debt

• Altering agreement with Oregon City to move to a “fee for service” model for financing government and public access television

• Creation of an Emergency Utility Assistance Program

• Creation of enhanced risk management claims program in Finance Department to self-insure for small claims

Communications Tool

• We continue to improve the budget document each year

• This year’s changes include:– Consistency in fund layout for greater understanding– More graphics– Clearly highlighted goals and accomplishments by fund– Line item detail in Appendix D

• Five year financial forecast– Appendix C– Demonstrates firm commitment to focus on the long-term financial health of City

To Close… Thank You

• To the department staff that assisted in budget development

• To Richard Seals and Kirsten Wyatt for developing the budget document

• To the citizens of the City Council and Budget Committee who will dedicate significant amounts of time in the next two weeks to review the Biennial Budget to ensure its approval is in the best interests of the community

Calendar

• Tonight: 2010-2011 Biennial Budget presentation

• Monday, May 4: – Citizen members review grant applications

– Wednesday, May 6: – Public comment– Citizens Budget Committee meeting at 6:00 at Library

• Thursday, May 7: – Public comment– Citizens Budget Committee meeting at 6:00 at City Hall