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Ordinance 15-019 Adopts 2016 Budget CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO. 15-019 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING A BUDGET FOR THE PERIOD JANUARY 1, 2016 THROUGH DECEMBER 31, 2016; APPROPRIATING FUNDS; ESTABLISHING SALARY SCHEDULES FOR ESTABLISHED POSITIONS; AND OTHER MATTERS RELATING THERETO. WHEREAS, State law requires the City Manager to prepare a preliminary budget for the City of Spokane Valley at least 60 days before the beginning of the City fiscal year beginning January 1, 2016 and ending December 31, 2016; and WHEREAS, the City Manager, in consultation with the Finance Director and department heads, has prepared and placed on file with the City Clerk a preliminary budget, together with an estimate of the amount of money necessary to meet the expenses of the City including payment of outstanding obligations; and WHEREAS, notice was posted and published for public hearings held on August 25 and September 22, 2015. The City Council met and invited public comment in the City Council Chambers during each public hearing; and WHEREAS, proper notice was given and the preliminary budget was filed with the City Clerk September 8,2015; and WHEREAS, the City Council desires to adopt the 2016 budget, including all allowances, and an appropriation for each fund; and WHEREAS, the City of Spokane Valley property tax levy in 2015 for collection in 2016, will be $11,279,151.61, which represents a 0% increase in the 2016 levy. This levy is exclusive of additional revenue resulting from new construction, improvements to property, any increase in the value of State assessed property, any annexations that have occurred,and refunds made. NOW, THEREFORE,the City Council of the City of Spokane Valley do ordain as follows: Section 1. Adoption of 2016 Budget. The budget for the City of Spokane Valley for the year 2016 is adopted at the fund level. The final budget for 2016 is attached hereto, and by this reference is incorporated herein pursuant to RCW 35A.33.075. For summary purposes, the total estimated appropriations for each separate fund, plus the aggregate total for all such funds, is set forth as follows: Ordinance 15-019 Adopting 2016 Budget Page 1 of 3 Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund 001 21,615,329 39,478,853 61,094,182 39,974,480 21,119,702 Street Fund 101 1,652,244 4,357,900 6,010,144 4,382,900 1,627,244 Paths&Trails Fund 103 37,628 8,500 46,128 0 46,128 HateVMotel Tax-Tourism Facilities Fund 104 178,700 357,500 536,200 0 536,200 HoteVMotel Tax Fund 105 160,248 550,300 710,548 590,000 120,548 Solid Waste 106 7,340 178,500 185,840 178,500 7,340 PEG Fund 107 278,900 90,000 368,900 24,500 344,400 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,461,399 6,500 5,467,899 0 5,467,899 Winter Weather Reserve Fund 122 504,820 600 505,420 500,000 5,420 City Facilities Repair&Replacement 123 559,086 700 559,786 559,786 0 LTGO Bond Debt Service Fund 204 4,049 547,100 551,149 547,100 4,049 REET 1 Capital Projects Fund 301 1,325,345 801,000 2,126,345 671,189 1,455,156 REET 2 Capital Projects Fund 302 1,379,674 801,000 2,180,674 1,371,502 809,172 Street Capital Projects 303 72,930 11,767,791 11,840,721 11,767,791 72,930 Park Capital Projects Fund 309 101,070 264,550 365,620 352,050 13,570 Civic Facilities Capital Projects Fund 310 1,178,074 345,400 1,523,474 0 1,523,474 Pavement Preservation Fund 311 2,522,995 2,301,500 4,824,495 3,050,000 1,774,495 Capital Reserve Fund 312 4,089,489 0 4,089,489 1,524,559 2,564,930 City Hall Construction Fund 313 4,460,364 0 4,460,364 294,400 4,165,964 45,889,684 61,857,694 107,747,378 65,788,757 41,958,621 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Stormwater Management Fund 402 1,791,529 1,871,500 3,663,029 2,240,115 1,422,914 Aquifer Protection Area Fund 403 561,773 2,000,000 2,561,773 2,000,000 561,773 Equipment Rental&Replacement Fund 501 1,242,338 102,333 1,344,671 330,000 1,014,671 Risk Management Fund 502 168,209 325,000 493,209 325,000 168,209 3,763,849 4,298,833 8,062,682 4,895,115 3,167,567 Total of all Funds 49,653,533 66,156,527 115,810,060 70,683,872 45,126,188 The total balance of all funds appropriated for 2016 is$70,683,872. Section 2. Transmittal of Budget. A complete copy of the budget as adopted, together with a copy of this Ordinance, shall be transmitted by the City Clerk to the Division of Municipal Corporations in the Office of the State Auditor and to the Association of Washington Cities. Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence,clause or phrase of this Ordinance. Section 4. Effective Date. This Ordinance shall be in full force and effect five days after the date of publication of this Ordinance or a summary thereof in the official newspaper of the City. Ordinance 15-019 Adopting 2016 Budget Page 2 of 3 PASSED by the City Council this 10th day of November, 2015. D-an Grafos,May•,/ AT_ S 9 liLt.7��.c hristine Bainbridge, ity Clerk t" Approved As To Form: C ‘P .31ttIV Offi e 6f the City orney Date of Publication: //" /3M/ Effective Date: //—/ Ordinance 15-019 Adopting 2016 Budget Page 3 of 3 • . - A• 1T �� - " w, - ya j \ <t . > ,rte.. 'i. s'�„= =.. r: 4 s 1' / CITYOF pokane .. Valley .., .. 2016 ,. • • . .. • Annual Y� C •motif ,s` 1 1 • k d .!j�' - t"" '4 Vii'• v+W A 61 nMy �} j e.y 'r�i.__�n J ,� "t� t • ii1 ; -� ! _ PictuIIes_from Virile lestheld annuall)'Zn the CItvofSpokane Valley: ♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦•♦♦••••♦•♦•♦♦••♦•♦♦♦♦♦♦♦♦♦ ♦ ♦ • • • • ♦ - • City of Spokane Valley, Washington • • • Annual Budget. • •I • • For the Fiscal Year • i January 1 through December 31, 2016 . i ♦ - ♦ •• City Hall • • 11707 East Sprague Avenue ♦ • Spokane Valley, WA 99206 ♦ • Website: www.spokanevalley.org ♦ • Phone: (509)921-1000 • • ♦ ♦ "A community of opportunity where individuals and families can grow and play,and businesses ♦ will flourish and prosper." ♦. • • • About the cover photograph: • - • Annual Valleyfest Event:Photo.by SpokaneFocus • • • • • • • ;. . • • • ♦ ` . • • • •.: .:. • • ♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦ Table of Contents City of Spokane Valley, WA Spokane County January 1,2016 through December 31,2016 Summary of Councilmembers III City Manager's Budget Message 1 Finance Director's Message-About the 2016 Budget and Budget Development Process 7 Budget Summary 21-35 Revenues by Fund and Type 36-42 Expenditures by Fund and Department 43-46 General Fund Department Changes from 2015 to 2016 47-49 #001-General Fund-Expenditures by Department by Type City Council 50 City Manager 52 Public Safety 53 Deputy City Manager 56 Finance 57 Human Resources 58 Public Works 59 Community& Economic Development 60 Parks&Recreation 64 General Government 70 Special Revenue Funds #101 -Street Fund 72 #103 -Trails&Paths Fund 73 #104-Hotel/Motel Tax—Tourism Facilities Fund 74 #105 -Hotel/Motel Tax Fund 74 #106-Solid Waste Fund 75 #107-PEG Fund 76 #120-CenterPlace Operating Reserve Fund 77 #121 - Service Level Stabilization Reserve Fund 77 #122-Winter Weather Reserve Fund 78 #123 -Civic Facility Replacement Fund 78 Debt Service Funds #204-Limited Tax General Obligation(LTGO)Fund 79 City of Spokane Valley 2016 Budget Capital Projects Funds #301 -REET 1 Capital Projects Fund 80 #302-REET 2 Capital Projects Fund 81 #303 - Street Capital Projects Fund 82 #309-Parks Capital Projects Fund 83 #310-Civic Facilities Capital Projects Fund 84 #311 -Pavement Preservation Fund 85 #312-Capital Reserve Fund 88 #313 -City Hall Construction Fund 89 Enterprise Funds #402- Stormwater Management Fund 90 #403 -Aquifer Protection Area Fund 92 Internal Service Funds #501 -Equipment Rental &Replacement Fund 93 #502-Risk Management Fund 95 Total of Capital Expenditures for 2016 96 FTE Count by Year—2010 through 2016 97 Work Force Comparison 98 Appendix A, Employee Position Classification and Salary Schedule 99 Glossary of Budget Terms 100 Ordinance#15-019 Adopting the 2016 Budget 103 00O0OO0000040000000O*00O00000O00000o00O0*000O000000.40O0O00000 O 0 ✓ o o O O 0 o 0 O 7 A' 0 o ".5 _ O -o t � w. O 0 �� O o 3?:, �sw: 0 o __ O O O O O O o o City Councilmembers o O O o Dean Grafos, Mayor o o Position#2 0 o Arne Woodard, Deputy Mayor o O Position#3 0 O 0 o Rod Higgins Ed Pace o O Position#1 Position#4 0 O O o Chuck Hafner Ben Wick o O Position#5 Position#6 0 o O o Bill Bates Bill Gothmann o O Position#7 Position#7, Pro - Tern O o Staff o O 0 O o o Mike Jackson, City Manager o 0 0 o Mark Calhoun, Deputy City Manager o 0 O 0 0 0 o Chelsie Taylor, Interim Finance Director o • o o John Hohman, Community & Economic Development Director o0 o O O 0 o Mike Stone, Parks & Recreation Director o 0 0 o Eric Guth, Public Works Director o O 0 O 0 o Cary Driskell, City Attorney o 0 0 o Christine Bainbridge, City Clerk o O 0 O o O O O 0 O o OOOOO0000OOo00OOO00000Ooo00o000000000000000000000O0oOo0oOo0oo III 0 0 4 0 4 0 0 0.0 0 0 0 0 00 0 0 00*40 00 000 0 0 400 0 00 4 400000 00000*00 0 000 0 000 040 0 K:' • • • • • • • • • • • • • • • o, Ths p r f 9 r P • . d _ . !j.z _ L n 11 0 0 0 0 0 0 0.44 00.0 0 0000 0<.>0 0 0 00•••••••••••••••••••••••••••••••••••••••••• VI • 011#*\ftiaftis SC1TY po Kan e elle ° y City Manager's Budget Message 2016 Annual Budget Dear Citizens, Mayor and City Council of Spokane Valley: Sound Financial Position It is with great pleasure that I present the attached 2016 proposed budget for the City of Spokane Valley. The City of Spokane Valley remains financially strong and continues to benefit from a history of prudent financial decisions since our 2003 incorporation.Responsible budgeting and restrained spending has helped us achieve key Fiscal Policies and maintain an ending General Fund Balance equivalent to six-months of general fund operations. The City of Spokane Valley is unique in many of its financial policies and a great example of how a City provides key services to the community while holding down taxes,fees and other charges. Our per capita employee count and personnel expenses are among the lowest(if not the lowest)of comparable size cities in the state and around the U.S. The City's top two budget priorities are law enforcement and road maintenance,in that order. To ensure continued financial stability,it is imperative the City's recurring annual expenses remain in-check. We must continue to limit recurring expenditures at levels less than or equal to our annual revenues. Beyond recurring operating activity however,due to our excellent financial condition,we are afforded the opportunity to use the portion of the General Fund balance that exceeds 50%for nonrecurring expenditures in pursuit of programs important to the City Council and community. Recent examples include General Fund contributions to the Appleway Trail(University to Pines Rd.), Sullivan Road West Bridge Replacement project,the Appleway road landscaping and a cash"down payment"for construction of a new City Hall. Pavement Preservation Beginning in 2012,the City initiated spending of general fund,special revenue fund and capital project fund revenues and reserves for the purpose of aiding street preservation.In 2016,our citizens will again see an aggressive program of repaving our roadways. Some may question paving roads that"don't look so bad." The truth is the best time to repave is before a road deteriorates to the point that full reconstruction is necessary.Full reconstruction can cost substantially more than pavement preservation such as crack sealing or grinding and repaving. This is why the City of Spokane Valley has committed critical financial resources to preservation of our transportation infrastructure. We hope you are as proud of our fine road system as we are! Fiscal Policies The Fiscal Policies adopted by the City Council are important for the long-range fiscal strength of Spokane Valley. These policies appropriately dictate if the economic conditions deteriorate, future budget reductions may be triggered. Financial Management—The City proposes to: 1. Maintain basic service levels with minimal resources to achieve success. 2. Minimize personnel costs/overhead by continuing to contract for many services. 3. Continue the six-year Business Plan process. 4. Leverage City funds with grant opportunities. 5. Minimize City debt with a pay as you go philosophy. o The State of Washington sets the maximum level of allowable debt for cities based on assessed value of property.The City of Spokane Valley currently utilizes only 1.20%of its total debt capacity,and more importantly,only 6.02%of non-voted bond capacity.This is extremely low debt. 6. Strive to prioritize spending in the annual budget process and minimize mid-year addition of projects and appropriations. Financial Objectives-The City's financial objectives are: 1. Maintain a minimum General Fund Ending Balance of 50%of recurring expenditures,which is the equivalent of six months of general fund operations. 2. If necessary,utilize the Service Level Stabilization Reserve Fund($5.5 million)to maintain ending fund balance minimum. 3. Commitment to the strategy the Service Level Stabilization Reserve Fund will not reduce below$3.27 million(60%of$5.5 million). 4. Maintain the 2016 property tax assessment the same as 2015 with the exception of new construction.As in the previous six years,the City will forego the potential annual increase to property tax allowable by RCW 84.52.050.We anticipate this will result in a levy of$11,279,200 plus estimated new construction of$200,000 for a total levy of$11,479,200.The allowable potential increase will be banked for future 2 use as provided by law.This effectively makes the 7th year in a row that we have not increased our City property tax assessment. 5. Grow our economy so the existing tax base can support basic programs. Commitment—By committing to these policies and the checks and balances they afford,the City will ensure financial sustainability well into the future. 2016 Budget Highlights The 2016 Budget recognizes the economic realities of our times and the necessity to continue to operate within our financial means. City Hall Project:In 2015,the City made the decision to construct a new City Hall at a cost currently projected at$14.4 million. Having rented a city hall since incorporation, the fund balance had grown such that a cash"down payment"in the amount of$6.3 million is available for land purchase,design cost and a portion of construction cost.The balance will be financed with a bond sale of approximately$8.1 million with 98.2%of annual payments being funded through the existing lease payment for the rented city hall. The remaining portion of the payment,along with the operation and maintenance cost of owning our own city hall,will be a recurring cost of the City's general fund. Pavement Preservation Fund: In the 2012 Budget,Council established the Pavement Preservation Fund#311. For 2016,projected expenditures for preservation are $3,000,000. There are not any grant funds anticipated for pavement preservation for 2016. Funding sources for pavement preservation consist of$943,800 that will be transferred from the General Fund,$67,342 from the Street Fund,$559,786 from the Civic Facilities Replacement Fund, $365,286 from REET 1 Capital Projects Fund and $365,286 from REET 2 Special Projects Fund. Most of these transfers are projected to be sustainable for the foreseeable future.However,the transfer from the Civic Facilities Replacement fund is not sustainable and is depleted at year end 2016.The total revenues for street preservation are$2,301,500,which is$748,500 less than projected expenditures with the remainder coming from Street Preservation fund balance in an effort to be more aggressive with the preservation program.Because of this,we are currently able to continue the funding of street preservation through at least 2020.This will require us to adhere to the budget and continue to utilize grant funds to bolster our own city transfers. Moderate Growth in Current Operational Expenses/Budget Increase: Investing in the essential core services identified by the Council and community establishes baseline costs. Similar to the trend in most jurisdictions,costs and demands for service are growing while tax revenues are decreasing. Quality service delivery requires ongoing investment in basic capacity to yield efficient operations. Moderate as it may be, recurring operational expenses have increased as reflected in the General Fund increase of 2.79%for 2016.However,excluding additions to recurring expenditures for new services added since 2012,the General Fund recurring expenditure budget has had an average annual increase of 1.41%from 2011 to 2016. 3 Staffing Levels: Staffing levels for 2016 will increase slightly to 87.40 employees as compared to 87.25 in 2015.Taking into consideration we contract for police services and are served by Fire Districts and a Library District,for a major city we are operating substantially below the normal employee count at a significantly reduced cost. Spokane Valley personnel costs are approximately 20%of the total General Fund recurring expenditures. Comparable cities and counties typically fund personnel costs at about 40% of their General Fund Budget(after adjusting for police,fire and library personnel,of which the City of Spokane Valley contracts as noted previously). Spokane Valley staff levels average about one employee for every 1,068 citizens. Comparable cities' averages are from one employee for every 160 citizens,to one employee for every 412 citizens. While the survey is not scientific,the low comparable personnel costs coupled with the low employee per citizen ratio indicates the City of Spokane Valley is operating at a low, yet effective staffing level. Since incorporation,the City has taken a conservative approach to adding new staff. Spokane Valley continues to have the lowest employee count of any Washington city with a population of 50,000 or greater. By all comparisons,the City of Spokane Valley is a lean,productive City government. Public Safety Costs: In 2016,the Police, Court and Jail related services proposed budget is$24,703,749 —an amount equal to 215%of anticipated property tax collections ($11,479,200)for the entire year. Council has made a commitment not to reduce public safety service levels and associated costs in 2016. Challenges: Railroad Grade Separation & Quiet Zone Projects:The City has been pursuing funding for rail grade separation projects for the past several years. The wait for trains is a safety and quality of life issue and impacts our local economy. Currently the City is pursuing a federal TIGER VII grant for the Barker and Trent Road Overpass. Other projects identified include Pines Road Underpass, Park Road Overpass and Sullivan Road Overpass improvements. The total estimated cost of all four projects is over$83 million– well beyond the scope of City financing but feasible over the long-term. Pavement Preservation: Street Preservation needs must be balanced with other needs. The 2016 Budget achieves this balance. Grants and Declining Matching Funds: City staff actively pursues funding commitments from other sources to help pay the cost of needed capital improvements— roads,bridges, stormwater and parks that benefit the community. In 2016, a total of $18,444,741 is budgeted for a range of capital projects of which$10,440,763 (56.6%)is coming from outside grant sources. 4 When the City applies for state and federal grants,the City must provide its share(match) for these projects. In the past,Real Estate Excise Tax(REET)was used for most of the City match. In addition to capital construction,the City funds a portion of Pavement Preservation from REET funds also. During the past nine years, annual revenue from the REET tax declined from a high of $2.5 million in 2007,to$960,000 during the worst of the recession,to an estimated$1.6 million in 2016.Depending on availability of Federal, State and Local grants,which have been declining,the City may reach a point where we have to prioritize preservation versus capital projects. Local Street Maintenance Combination of Funding: This fund derives its revenues from an allocation of the State Motor Vehicle Fuel Tax distributed to cities and towns, and a 6%city utility tax on telephone usage estimated in 2016 at$2,004,900 and $2,340,000 respectively. The combination of Fuel Tax and Telephone Utility Tax enables us to meet the ongoing need for these funds to pay for critical street maintenance activities such as snow plowing,pot hole repair,crack sealing, sweeping,weed control, street lighting,traffic signals and a variety of other repairs/improvements. In 2016, $67,342 will transfer to Pavement Preservation for more substantial repaving projects. The Budget for 2016 Strong but Guarded. One of the most important tests of fiscal management is the ability of a municipal enterprise to maintain basic services during an economic downturn.The creation and maintenance of financial reserves since incorporation has served its intended purpose of providing opportunity for Spokane Valley to sustain critical public services during turbulent economic conditions that began in 2008, and from which we may or may not be emerging.The 2016 budget reflects a prudent and guarded increase in continuation of service delivery capabilities.These increases are carefully considered and well within the means of the City. Service delivery cannot grow faster than the economic development of the City. Balanced Budget: Means exactly what it says-expenses have been balanced with known or reasonably predictable revenues with no increase in property tax or in sales tax rates for the City (lodging tax rates are generally not paid by residents). The budget is designed to maintain the healthy,positive fund balance at year-end providing the City's cash flow needs without costly borrowing. In pursuit of fiscal responsibility, special attention is given to limiting the growth in new programs and financial commitments.This approach allows available resources to be put toward sustaining services consistent with the City Council's priorities for 2016 and beyond. 5 Future Concepts: The budget process is not static and Council,the citizens, and staff must remain vigilant to watch for economic trends that impact current forecasts. Even as the 2016 budget is adopted,we must remain mindful of the future economic opportunities and threats that may impact our multi-year forecast. Examples of potential impacts and adaptive future concepts are as follows: Retail Strategy.The City is actively engaged in growing our economy. In 2016 we will execute a retail strategy to support existing retail and encourage new retail to retain local dollars and attract spending from outside our city limits. Tourism. The City is engaged with the tourist industry in Spokane Valley including lodging, dining and shopping sectors. We are planning for the future to attract visitors and enhance our local tourism economy. Acknowledgments: I would like to acknowledge the citizens, City Council and staff for a long history of conservative spending and prudent fiscal planning. By saving and conserving the taxpayers' money, and by adopting prudent long-term fiscal policies,the City can provide essential services and balance its budget for many years to come. The City Council has set a path to ensure the long-term financial sustainability of the City.The management staff and employees have worked together to develop Business Plans and 2016 budget recommendations to achieve the Council's goal of sustainability. The Citizens of Spokane Valley should be proud of the strong financial condition of their City. We invite your examination and questions regarding the 2016 Budget. Respec u lly, (pz, Mike`1 kson City anager 6 SCITY 11707 E Sprague Ave Suite 106 ♦ Spokane Valley WA 99206 po` bane 509.921.1000♦ Fax: 509.921.1008 ♦ cityhall@spokanevalley.org Valley TO: City Manager and Members of the City Council FROM: Chelsie Taylor, Interim Finance Director SUBJECT: About the 2016 Budget and Budget Development Process The budget includes the financial planning and legal authority to obligate public funds. Additionally, the budget provides significant policy direction by the City Council to the staff and community. As a result, the City Council, staff and public are involved in establishing the budget for the City of Spokane Valley. The budget serves four functions: 1. It is a Policy Document The budget functions as a policy document in that the decisions made within the budget will reflect the general principles or plans that guide the actions taken for the future. As a policy document, the budget makes specific attempts to link desired goals and policy direction to the actual day-to-day activities of the City staff. 2. It is an Operational Guide The budget of the City reflects its operation. Activities of each City function and organization have been planned, debated, formalized, and described in the following sections. This process will help to maintain an understanding of the various operations of the City and how they relate to each other and to the attainment of the policy issues and goals of the City Council. 3. It is a Link with the General Public The budget provides a unique opportunity to allow and encourage public review of City operations. The budget describes the activities of the City,the reason or cause for those activities, future implications, and the direct relationship to the citizenry. 4. It is a Legally Required Financial Planning Tool The budget is a financial planning tool, which has been its most traditional use. In this light, preparing and adopting a budget is a State law requirement of all cities as stated in Title 35A of the Revised Code of Washington (RCW). The budget must be adopted as a balanced budget and must be in place prior to the beginning of the City's fiscal year. The budget is the legal authority to expend public moneys and controls those expenditures by limiting the amount of the appropriation at the fund level. The revenues of the City are estimated, along with available cash carry-forward,to indicate funds available. The budget takes into account unforeseen contingencies and provides for the need for periodic adjustments. 7 2016 BUDGET DEVELOPMENT PROCESS Historically the City has utilized a budgeting approach that assumed for most functions of government that the current year's budget was indicative of the base required for the following year. However,with the recent downturn in the economy and resultant reduction in revenues (most notably the decline in sales taxes), the 2012 through 2016 Budget development processes were amended to consciously review service levels in each department and determine the appropriate level of funding that meets Council goals relative to available resources. The 2016 Budget development process began at the February 17,2015, Council workshop where among other topics, Council and Staff discussed the budget in general terms. In mid-April 2015 the Finance Department notified City Departments that their 2016 revenue and expenditure estimates were due by mid-May. Through the balance of May and early June, the City Manager's office and Finance Department worked to prepare budget worksheets that were communicated to the City Council at a Budget workshop held June 16, 2015. Following the workshop, the Finance Department continued work on the budget including refinements of revenue and expenditure estimates and through July and August, the Finance Department and City Manager reviewed updated budget projections. By the time the 2016 Budget is scheduled to be adopted on November 10, 2015,the Council will have had an opportunity to discuss it on seven separate occasions, including two public hearings to gather input from citizens: June 16 Council budget workshop August 11 Admin report: Estimated 2016 revenues and expenditures August 25 Public hearing#1 on 2016 revenues and expenditures September 8 City Manager's presentation of preliminary 2016 Budget September 22 Public hearing#2 on 2016 Budget October 13 First reading on ordinance adopting the 2016 Budget November 10 Second reading on ordinance adopting the 2016 Budget Once adopted,the final operating budget is published,distributed, and made available to the public. After the budget is adopted, the City enters a budget implementation and monitoring stage. Throughout the year, expenditures are monitored by the Finance Department and department directors to ensure that actual expenditures are in compliance with the approved budget. The Finance Department provides the City Manager and City Council with monthly reports to keep them abreast of the City's financial condition and individual department compliance with approved appropriation levels. Any budget amendments made during the year are adopted by City Council ordinance. The City Manager is authorized to transfer budgeted amounts within a fund; however, any revisions that alter the total expenditures of a fund, or that affect the number of authorized employee positions, salary ranges or other conditions of employment must be approved by the City Council. When the City Council determines that it is in the best interest of the City to increase or decrease the appropriation for a particular fund, it may do so by ordinance adopted by Council after holding one public hearing. 8 BUDGET PRINCIPLES • Department directors have primary responsibility for formulating budget proposals in line with City Council and City Manager priority direction,and for implementing them once they are approved. • The Finance Department is responsible for coordinating the overall preparation and administration of the City's budget. This function is fulfilled in compliance with applicable State of Washington statutes governing local government budgeting practices. • The Finance Department assists department staff in identifying budget problems, formulating solutions and alternatives, and implementing any necessary corrective actions. • Interfind charges will be based on recovery of costs associated with providing those services. • Budget amendments requiring City Council approval will occur through the ordinance process at the fund level prior to fiscal year end. • The City's budget presentation will be directed at displaying the City's services plan in a Council/constituent friendly format. • No long term debt will be incurred without identification of a revenue source to repay the debt. Long term debt will be incurred for capital purposes only. • The City will strive to maintain equipment replacement funds in an amount necessary to replace the equipment at the end of its useful life. Life cycle assumptions and required contributions will be reviewed annually as part of the budget process. New operations in difficult economic times may make it difficult to fund this principle in some years. • The City will pursue an ending general fund balance at a level of no less than 50% of recurring expenditures. This figure is based upon an evaluation of both cash flow and operating needs. BASIS OF ACCOUNTING AND BUDGETING Accounting Accounting records for the City are maintained in accordance with methods prescribed by the State Auditor under the authority of the Revised Code of Washington (RCW), Chapter 43.09.20, and in compliance with generally accepted accounting principles as set forth by the Governmental Accounting Standards Board. Basis of Presentation-Fund Accounting The accounts of the City of Spokane Valley are organized on the basis of funds,each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of double-entry accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. The City's resources are allocated to and accounted for in individual funds depending on their intended purpose. The following are the fund types used by the City of Spokane Valley: 9 Governmental Fund Types Governmental funds are used to account for activities typically associated with state and local government operations. All governmental fund types are accounted for on a spending or "financial flows" measurement focus, which means that typically only current assets and current liabilities are included on related balance sheets. The operating statements of governmental funds measure changes in financial position, rather than net income. They present increases(revenues and other financing sources)and decreases(expenditures and other financing uses) in net current assets. There are four governmental fund types used by the City of Spokane Valley: 1. General Fund This fund is the primary fund of the City of Spokane Valley. It accounts for all financial resources except those required or elected to be accounted for in another fund. 2. Special Revenue Funds These funds account for revenues that are legally restricted or designated to finance particular activities of the City of Spokane Valley. Special Revenue funds include: • #101 - Street Fund • #103 -Paths&Trails Fund • #104-Hotel/Motel Tax—Tourism Facilities Fund • #105 -Hotel/Motel Tax Fund • #106-Solid Waste Fund • #107-PEG Fund • #120-CenterPlace Operating Reserve Fund • #121 -Service Level Stabilization Reserve Fund • #122-Winter Weather Reserve Fund • #123 -Civic Facilities Replacement Fund 3. Debt Service Funds These funds account for financial resources which are designated for the retirement of debt. Debt Service Funds are comprised of the#204—LTGO Debt Service Fund. 4. Capital Project Funds These funds account for financial resources, which are designated for the acquisition or construction of general government capital projects. Capital Project Funds include: • #301 —REET 1 Capital Project Fund • #302—REET 2 Capital Projects Fund • #303 - Streets Capital Projects Fund • #309-Parks Capital Projects Fund • #310-Civic Facilities Capital Projects Fund • #311 -Pavement Preservation Fund • #312—Capital Reserve Fund • #313—City Hall Construction Fund 10 Proprietary Fund Types A fifth type of fund classification are the Proprietary Funds that are used to account for activities similar to those found in the private sector where the intent of the governing body is to finance the full cost of providing services based on the commercial model which uses a flow of economic resources approach. Under this approach, the operating statements for the proprietary funds focus on a measurement of net income (revenues and expenses) and both current and non-current assets and liabilities are reported on related balance sheets. Their reported fund equity (total net assets) is segregated into restricted, unrestricted and invested in capital assets classifications. As described below, there are two generic fund types in this category: 1. Enterprise Funds These funds account for operations that provide goods or services to the general public and are supported primarily by user charges. Included in this type of fund is: • #402—Stormwater Management Fund • #403—Aquifer Protection Area Fund 2. Internal Service Funds These funds account for operations that provide goods or services to other departments or funds of the City. Included in this type of fund is: • #501 -Equipment Rental and Replacement Fund • #502-Risk Management Fund Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized, recorded in the accounting system and ultimately reported in the financial statements. • Modified Accrual Basis of Accounting is used for all governmental funds. Modified accrual recognizes revenues when they become both measurable and available to finance expenditures of the current period. • Accrual Basis of Accounting is used for enterprise and internal service funds. Under this system revenues and expenses are recognized in the period incurred rather than when cash is either received or disbursed. Budgets and Budgetary Accounting Annual appropriation budgets are adopted for all funds with Governmental Funds utilizing a modified cash basis of accounting for budget purposes,and Proprietary Funds utilizing a working capital approach. Budgets are adopted at the fund level that constitutes the legal authority for expenditures and annual appropriations for all funds lapse at the end of the fiscal period. EXPLANATION OF MAJOR REVENUE SOURCES General Fund#001 • Property Tax Property taxes play an essential role in the finances of the municipal budget. State law limits the City to a $3.60 levy per $1,000 assessed valuation, deducting from there the levy of$1.50 by the Spokane County Fire Districts #1 and #8, along with deducting $0.50 for the Library District, which leaves the City with the authority to levy up to$1.60 for its own purposes. The levy amount must be established by ordinance by November 30th prior to the levy year. 11 • Retail Sales and Use Tax The sales tax rate for retail sales transacted within the boundaries of the City of Spokane Valley is 8.7%. The tax that is paid by a purchaser at the point of sale is remitted by the vendor to the Washington Department of Revenue who then remits the taxes back to the various agencies that have imposed the tax. The allocation of the 8.7%tax rate to the agencies is as follows: State of Washington 6.50% City of Spokane Valley 0.85% Spokane County 0.15% Criminal Justice 0.10% Spokane Public Facilities District 0.10% * Public Safety 0.10% * 2.20%local tax Juvenile Jail 0.10% * Mental Health 0.10% * Law Enforcement Communications 0.10% * Spokane Transit Authority 0.60% * 8.70% *Indicates voter approved sales taxes. • Criminal Justice Sales Tax Local Sales Tax for Criminal Justice funding is to be used solely for criminal justice purposes,such as the City's law enforcement contract. This tax is authorized at 1/10 of 1% of retail sales transacted in the County. Of the total amount collected, the State distributes 10% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the County and cities within the County. • Public Safety Sales Tax Beginning in 2005, an additional 0.1% voter approved increase in sales tax was devoted to public safety purposes. This 0.1% was approved by the voters again in August 2009. Of the total amount collected, the State distributes 60% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the cities within the County. • Gambling Tax Gambling tax revenues must be spent primarily on law enforcement purposes pertaining to gambling. Funds remaining after necessary expenditures for such enforcement purposes may be used for any general government purpose. Gambling taxes are to be paid quarterly to the City, no later than the last day of January, April, July and October. The City imposes a tax on the following forms of gambling at the following rates: Bingo (5% gross, less prizes); Raffles (5% gross, less prizes); Punchboards and Pulltabs (5% gross, less prizes); Amusement Games (2%gross, less prizes); Card playing(6%gross). • Leasehold Excise Tax Taxes on property owned by state or local governments and leased to private parties(City's share). • Franchise Fees Cable TV is the only franchise fee levied in the City at a rate of 5%of gross revenues. This is a fee levied on private utilities for the right to use city streets,alleys, and other public properties. 12 • State-Shared Revenues State-shared revenues are received from liquor sales, and motor vehicle excise taxes. These taxes are collected by the State of Washington and shared with local governments based on population. State- shared revenues are distributed on either a monthly or quarterly basis, although not all quarterly revenues are distributed in the same month of the quarter. The 2015 population figure used in the 2016 Budget is 93,340 as reported by the Office of Financial Management for Washington State on April 1, 2015. This figure is important when determining distribution of State shared revenues on a per capita basis. • Fines and Forfeitures/Public Safety Fines and penalties are collected as a result of Municipal Court rulings and other miscellaneous rule infractions. All court fines and penalties are shared with the State, with the City, on average, retaining less than 50%of the amount collected. • Community Development Community Development revenues are largely composed of fees for building permits, plan reviews, false alarms and right of way permits. • Recreation Program Fees The Parks and Recreation Department charges fees for selected recreation programs. These fees offset direct costs related to providing the program. • CenterPlace Fees The Parks and Recreation Department charges fees for use of CenterPlace. Uses include regional meetings, weddings, receptions and banquets. Rental rooms include classrooms, the great room and dining rooms. • Investment Interest The City earns investment interest on sales tax money held by the State of Washington prior to the distribution of the taxes to the City, as well as on City initiated investments. Street Fund#101 • Motor Vehicle Fuel Excise Tax(gas tax) The State of Washington collects a $0.4450 per gallon motor vehicle fuel tax at the pump, which will increase to$0.4940 per gallon effective July 1, 2016. Of this amount,the State remits a portion of the tax back to cities on a per capita basis. For 2016 the Municipal Research and Services Center estimates the distribution back to cities will be $21.57 per person. Based upon a City of Spokane Valley population of 93,340 (per the Washington State Office of Financial Management on April 1, 2015) we anticipate the City will collect $2,013,400 in 2016. RCW 47.30.050 specifies that .42% of this tax must be expended for paths and trails activities and based upon the 2016 revenue estimate this computes to $8,500. The balance of$2,004,900 will be credited to Fund#101 for Street maintenance and operations. • Telephone Utility Tax The City of Spokane Valley levied a 6% telephone utility tax via Ordinance #08-014 with collections beginning in 2009. Telephone companies providing this service pay the tax to the City monthly. Telephone tax has been estimated at$2.34 million for 2016. 13 Paths& Trails Fund#103 Cities are required to spend .42% of the motor vehicle fuel tax receipts on paths and trails (please see the explanation for Street Fund#101) which we anticipate will be$8,500 in 2016. Because the amount collected in any given year is relatively small, it is typical to accumulate State distributions for several years until adequate dollars are available for a project. Hotel/Motel Tax—Tourism Facilities Fund#104 The City imposes a 1.3% tax under RCW 67.28.181 on all charges made for the furnishing of lodging at hotels, motels, and similar establishments (including bed and breakfasts and RV parks) for a continuous period of less than one month. The revenues generated by this tax may only be used for capital expenditures for acquiring, constructing, making improvements to or other related capital expenditures for large sporting venues, or venues for tourism-related facilities.This tax is estimated to generate$357,500 in 2016. Hotel/Motel Tax Fund#105 The City imposes a 2%tax under RCW 67.28.180 on all charges made for the furnishing of lodging at hotels, motels, and similar establishments (including bed and breakfasts and RV parks) for a continuous period of less than one month. The tax is taken as a credit against the 6.5 percent state sales tax, so that the total tax that a patron pays in retail sales tax and hotel/motel tax combined is equal to the retail sales tax in the jurisdiction. The revenues generated by this tax may be used solely for paying for tourism promotion and for the acquisition and/or operation of tourism-related facilities. This tax is estimated to generate $550,000 in 2016. PEG Fund#107 Under the City's cable franchise,the franchise grantee remits to the City as a capital contribution in support of Public Education Government(PEG) capital requirements an amount equal to$0.35 per subscriber per month to be paid to the City on a quarterly basis for the life of the franchise. Capital contributions collected under this agreement are allocated to PEG capital uses exclusively. PEG capital uses include, in part, the set-up of equipment in the City Council Chambers that allows Spokane Valley to broadcast Council meetings both live and through subsequent reviews via digital recordings available on the City's website. LTGO Debt Service Fund#204 In 2003 the City issued $9,430,000 in limited tax general obligation (LTGO) bonds the proceeds of which were used to finance both the construction of CenterPlace and road and street improvements surrounding the facility. In 2014 the City refunded the LTGO bonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond repayment (much like refinancing a home mortgage). At the completion of the bond refunding there remained$7,035,000 of LTGO bonds. Of this total: • $5,650,000 remains on the original debt used towards the construction of CenterPlace. These bonds will be paid off in annual installments over the 20-year period ending December 1, 2033. Annual debt service payments on these bonds are provided by the Spokane Public Facilities District. At January 1, 2016, the outstanding balance on this portion of the bond issue will be$5,250,000. • $1,385,000 remains on the original debt used towards the road and street improvements. These bonds will be paid off in annual installments over the 10-year period ending December 1, 2023. Annual debt service payments on these bonds are provided by equal distributions from the 1st and 2❑d quarter percent real estate excise tax. At January 1, 2016, the outstanding balance on this portion of the bond issue will be$1,125,000. REET 1 Capital Projects Fund#301 Under Washington State Law, RCW 82.46.010, the City is allowed to impose an excise tax on each sale of real property at the rate of one-quarter of one percent of the selling price. The revenue generated is used for financing capital projects as specified in the capital facilities plan under the Growth Management Act. 14 REET 2 Capital Projects Fund#302 Under Washington State Law, RCW 82.46.010,the City is allowed to impose an additional excise tax on each sale of real property at the rate of one-quarter of one percent of the selling price. The revenue generated is used for financing public works capital projects as specified in the capital facilities plan under the Growth Management Act. Stormwater Management Fund#402 A stormwater fee is imposed upon every developed parcel within the City, which is an annual charge of$21 for each single family unit and$21 per 3,160 square feet of impervious surface for all other properties. These charges are uniform for the same class of customers and service facilities. These fees are estimated to generate$1,870,000 in 2016. Aquifer Protection Area (APA)Fund#403 These are voter approved fees, the proceeds of which are applied to aquifer protection related capital construction projects. Fees are collected by Spokane County and remitted to the City twice each year. Fees include: • An annual fee of$15 per household for the withdrawal of water from properties within the APA. • An annual fee of$15 per household for on-site sewage disposal by properties within the APA. • For commercial properties an annual fee ranging from$15 to$960 depending upon water meter size. These fees are estimated to generate$500,000 in 2016 Interfund Transfers Many funds receive a portion of their revenues from other funds in the form of an interfund transfer. These transfers typically represent payments for either services rendered by one fund for another or a concentration of revenues for a specific project or purpose. The following interfund transfers are planned for 2016: Out: 001 I 101 I 105 I 106 I 123 I 301 I 302 I 312 I 402 Total In 001 0 39,700 30,000 40,425 0 0 0 0 13,400 123,525 204 0 0 0 0 0 83,400 83,400 0 0 166,800 303 0 0 0 0 0 222,503 922,816 1,510,509 0 2,655,828 In: 309 160,000 0 0 0 0 0 0 14,050 0 174,050 310 344,200 0 0 0 0 0 0 0 0 344,200 311 943,800 67,342 0 0 559,786 365,286 365,286 0 0 2,301,500 502 325,000 0 0 0 0 0 0 0 0 325,000 6,090,903 Total in Total Out 1,773,000 107,042 30,000 40,425 559,786 671,189 1,371,502 1,524,559 13,400 6,090,903 Total out 0 #001-General Fund is budgeted to transfer out$1.773.000 including: • $160,000 to Fund#309-Park Capital Projects Fund for park related projects. • $344,200 to Fund #310 - Civic Facilities Capital Projects Fund which is being done for the purpose of building into the General Fund Budget the anticipated additional cost the City will annually incur when we eventually construct a City Hall structure rather than renting space. • $943,800 to Fund#311 -Pavement Preservation Fund for pavement preservation projects. • $325,000 to the#502-Risk Management Fund for the 2016 property and liability insurance premium. 15 #101-Street Fund is budgeted to transfer out$107.042 includinnj • $39,700 to Fund#001-General Fund to cover administrative costs. • $67,342 to Fund#311-Pavement Preservation Fund for pavement preservation projects. #105-Hotel /Motel Tax Fund is budgeted to transfer$30,000 to Fund#001-General Fund for the purpose of financing advertising at CenterPlace. #106—Solid Waste Fund is budgeted to transfer$40,425 to Fund#001 under a 5-year plan to reimburse the General Fund for expenditures made during 2013 and 2014 for the solid waste program. #123-Civic Facilities Replacement Fund is budgeted to transfer $559,786 to Fund #311-Pavement Preservation Fund for pavement preservation projects. #301-REET 1 Capital Projects Fund is budgeted to transfer out$671.189 including: • $83,400 to Fund #204-LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $222,503 to Fund#303-Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $365,286 to Fund#311-Pavement Preservation Fund for pavement preservation projects. #302-REET 2 Capital Projects Fund is budgeted to transfer out$1.371.502 including: • $83,400 to Fund #204-LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $922,816 to Fund#303-Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $365,286 to Fund#311-Pavement Preservation Fund for pavement preservation projects. #312 — Capital Reserve Fund is budgeted to transfer $1,510,509 to Fund #303-Street Capital Projects Fund that will be applied towards the Sullivan Road West Bridge Replacement project and land acquisition for the Pines Road Underpass and $14,050 to Fund #309-Parks Capital Projects Fund for the Pines to Evergreen segment of the Appleway trail. #402-Stormwater Fund is budgeted to transfer $13,400 to Fund #001-General Fund to cover administrative costs. SIGNIFICANT ASSUMPTIONS IN THE 2016 BUDGET Budget Summary for All Funds • Based upon funding levels anticipated in the 2016 budget, City staff will strive to maintain adequate levels of service. • Appropriations for all City Funds will total$70.7 million including$18.4 million in capital expenditures, comprised in-part of: o $11.8 million in Fund#303 Street Capital Projects. o $352,050 in Fund#309 Park Capital Projects. o $3.1 million in Fund#311 Pavement Preservation projects. o $294,400 in Fund#313 Civic Facilities Capital Projects. o $505,000 in Fund#402 Stormwater Management projects. o $2 million in Fund#403 Aquifer Protection Area projects. o $330,000 in Fund#501 Equipment Rental and Replacement for the acquisition of one small SUV for the Community and Economic Development Department, one car and one small truck for the Parks 16 and Recreation Department, one truck split half-time between the Street Fund and the Stormwater Management Fund,and one tandem snow plow. • To partially offset the$18.4 million in capital costs,we anticipate $10.4 million in grant revenues which results in 56.61%of capital expenditures being covered with State and Federal money. • Budgets will be adopted across 24 separate funds. • The full time equivalent employee (FTE) count will be 87.4 employees compared to 87.25 in the prior year as a result of one part-time position being increased from 0.5 to 0.65. • The 2016 Budget reflects the fourth consecutive year the City will set aside City monies in an amount equivalent to 6%of General Fund recurring expenditures for pavement preservation in Fund#311 — Pavement Preservation. This 6%equals$2,301,500. • Positions and salary ranges are based on the City's compensation and classification plan. • Payroll tax and benefit amounts are based on staff benefit plans. • Contract costs for public safety,park maintenance, aquatics and street maintenance are based on estimates by City staff. • The City is setting money aside in Fund#501 Equipment Rental and Replacement for the eventual replacement of its vehicles. 2016 General Fund Revenues • Total recurring 2016 revenues are estimated at$39,438,428 as compared to$38,261,000 in 2015. This is an increase of$1,177,428 or 3.08%. • The two largest sources of revenue continue to be Sales Tax and Property Tax which are collectively estimated to account for 81.4%of 2016 General Fund recurring revenues. • The 2016 general sales tax estimate(excluding criminal justice and public safety sales taxes) is reflective of 2015 receipts to date and are currently estimated at$18.2 million which reflects an increase of $582,100 or 3.30%over the 2015 estimate. • The Property Tax levy does not include the potential annual increase allowed by Initiative#747 which was approved by the voters in November 2001 through their approval of Initiative#747 and the subsequent action by the State Legislature in November 2007. o The 2016 levy is estimated at$11,479,200 . o The levy assumes we start with the 2015 levy of$11,279,152,forgo the potential annual increase allowed by State law,and finally add taxes related to new construction which we estimate to be $200,000. • Franchise fees and business registrations are primarily based on projected receipts in 2015. • State shared revenues are based upon a combination of historical collections including 2015 collections through July, and per capita distribution figures reported by the Municipal Research and Services Center. • Fines and forfeitures are estimated by Spokane Valley and based on historical collections. • Building permit and land use fees are estimated by Spokane Valley and based on historic collections. 2016 General Fund Expenditures • Total 2016 recurring expenditures are budgeted at$39,361,199 as compared to$38,292,307 in 2015. This is an increase of$1,068,892 or 2.79%. • The City commitment of 6%of recurring General Fund expenditures to pavement preservation equals $2,301,500 and is computed by multiplying total recurring expenditures prior to adding the pavement preservation element($2,301,500/$38,417,399 =6%). The$2,301,500 that is transferred to Pavement Preservation Fund#311 is comprised of the following: o $943,800 from General Fund#001 o $67,342 from Street Fund#101 o $559,786 from Civic Facilities Replacement Fund#123 o $365,286 from REET 1 Capital Projects Fund#301 o $365,286 from REET 2 Capital Projects Fund#302 17 • 2016 Nonrecurring expenditures total$613,281 and include: o $108,000 for Information Technology expenditures including: • $20,000 for Barracuda backup server for CenterPlace • $36,000 to replace a Cisco 4510 switch that is 10-years old • $34,000 for a Storage Area Network(SAN) at CenterPlace • $5,000 for a Network Attached Storage(NAS)Box • $13,000 for the Laserfiche Eden extension o $350,000 for professional services necessary to assist Community Development in the comprehensive plan update o $15,000 to upgrade the dial-up modems and point of sale systems at the 3 swimming pools o $140,281 that represents the anticipated City Police Department share of a CAD/RMS system that will be acquired by the County Sheriff in 2016 (pending agreement with Spokane County) General Fund Revenues Over(Under)Expenditures and Fund Balance • 2016 recurring revenues are anticipated to exceed recurring expenditures by$77,229 . • Total 2016 expenditures are anticipated to exceed total revenues by$495,627 . o This is entirely due to the nonrecurring expenditures previously discussed which equal $613,281 and is not a result of ongoing operating costs overwhelming revenues. In fact it is because of the City's strong financial position that we're able to make these acquisitions. • The total unrestricted General Fund ending fund balance is anticipated to be$21,119,702 at the end of 2016 which is 53.66%of total recurring expenditures of$39,361,199. Our goal is to maintain an ending fund balance of at least 50.0%. Highlights of Other Funds Revenues • Motor vehicle fuel tax(MVFT)revenue that is collected by the State and remitted to the City is estimated to be$2,013,400 according to per capita estimates provided by the Municipal Research and Services Center. Of this amount, $2,004,900 will be credited to the Street O&M Fund and 0.42%or$8,500 to the Paths and Trails Fund. • Telephone taxes that are remitted to the City and support Street Fund operations and maintenance are anticipated at$2,340,000 . • Real estate excise tax(REET)revenue is computed by the City and is primarily used to match grant funded street projects as well as pay a portion of the annual payment on the 2014 general obligation bonds. In 2016 we estimate these revenues to be$800,000 per each 1/4%for a total of$1,600,000. • Hotel/Motel tax revenues are computed by the City and are dedicated to the promotion of visitors and tourism. In 2016 we estimate the tax will generate$907,500,which includes$550,000 in Fund#105 Hotel/Motel Tax Fund from the 2%tax and$357,500 in Fund#104 Hotel/Motel Tax—Tourism Facilities Fund from the 1.3%tax that was effective as of July 1,2015. • The Stormwater Management Fee is based on an equivalent residential unit(ERU)that is equal to 3,160 square feet of impervious surface that is billed at a rate of$21 per single family residence and$21 per ERU for commercial properties(an ERU for a commercial property is computed as total square feet of impervious surface divided by 3,160). In 2016 we estimate this will fee will generate$1,870,000 . • The Aquifer Protection Area Fund is expected to generate$500,000 in fees that are collected on the City's behalf by Spokane County and remitted in two installments during the year. • Grant revenues that will be applied to a variety of construction projects are estimated at$10,440,763 in 2016. By fund we anticipate grant revenues as follows: o Fund#106—Solid Waste Fund-$53,500 o Fund#303 —Street Capital Projects-$8,797,263 o Fund#309—Parks Capital Projects-$90,000 18 o Fund#403—Aquifer Protection Area-$1,500,000 Expenditures • Fund#101 -Street Fund appropriations include: o a$67,342 transfer to Pavement Preservation Fund#311 for pavement preservation projects o $5,000 for the acquisition of a storage unit at the maintenance facility,which is split with the Stormwater Management Fund o $20,000 for upgrades to signal detection equipment • Fund#301 -REET 1 Capital Projects Fund includes a$671,189 appropriation to cover: o a$83,400 transfer to LTGO Bond Debt Service Fund#204 to pay one-half of the City's annual repayment of the 2014 LTGO Bonds. o a$222,503 transfer to Street Capital Projects Fund#303 to partially offset the cost of street construction/reconstruction projects. o A$365,286 transfer to Pavement Preservation Fund#311 for pavement preservation projects • Fund#302-REET 2 Capital Projects Fund includes a$1,371,502 appropriation to cover: o a$83,400 transfer to LTGO Bond Debt Service Fund#204 to pay one-half of the City's annual repayment of the 2014 LTGO Bonds. o a$922,816 transfer to Street Capital Projects Fund#303 to partially offset the cost of street construction/reconstruction projects. o a$365,286 transfer to Pavement Preservation Fund#311 for pavement preservation projects • Fund#303—Street Capital Projects Fund includes an appropriation of$11,767,791 for a variety of street construction projects. Included in the projects is the Sullivan Road West Bridge Replacement for which we are appropriating$5,237,650 in 2016. We anticipate the project will cost approximately$15.3 million between 2014 and 2016 and will be financed through a combination of$13.0 million in grants and$2.3 million in City matching funds with the source being a$2.3 million transfer from Fund#312—Capital Reserves. • Fund#309—Parks Capital Projects includes a$352,050 appropriation to cover a variety of City park improvements that will be financed through a combination of a$160,000 transfer from the General Fund #001 and$90,000 in grant proceeds with the balance of$102,050 being paid from Fund#309 reserves. • Fund#311 —Pavement Preservation includes$3,050,000 of pavement preservation projects that will be financed through transfers from other City funds as outlined above under the heading of General Fund Recurring Expenditures. • Fund#312—Capital Reserve includes$1,510,509 in transfers to Fund#303—Street Capital Projects that will be applied towards the Sullivan Road West Bridge Replacement project in the amount of$1,010,509 and towards the acquisition of land for the Pines Road Underpass in the amount of$500,000 . It also includes$14,050 in transfers to Fund#309—Parks Capital Projects that will be applied toward the Pines to Evergreen segment of the Appleway trail. • Fund#313—Civic Facilities Capital Projects includes a$294,400 appropriation to cover professional service fees related to the construction of the new City Hall building. • Fund#402 - Storm water Fund includes$505,000 for capital expenditures including: o $500,000 for various projects, 19 o $5,000 for the acquisition of a storage unit at the maintenance facility,which is split with the Street Fund • Fund#403 -Aquifer Protection Area Fund includes a$2,000,000 appropriation for the Sprague—Park to University Low Impact Development project. • Fund#501 -Equipment Rental and Replacement Fund includes$330,000 for the addition of five vehicles, including one tandem snow plow. 20 CITY OF SPOKANE VALLEY,WA 2016 Budget Summary Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund 001 21,615,329 39,478,853 61,094,182 39,974,480 21,119,702 Street Fund 101 1,652,244 4,357,900 6,010,144 4,382,900 1,627,244 Paths&Trails Fund 103 37,628 8,500 46,128 0 46,128 Hotel/Motel Tax-Tourism Facilities Fund 104 178,700 357,500 536,200 0 536,200 Hotel/Motel Tax Fund 105 160,249 550,300 710,549 590,000 120,549 Solid Waste 106 7,339 178,500 185,839 178,500 7,339 PEG Fund 107 278,900 90,000 368,900 24,500 344,400 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,461,399 6,500 5,467,899 0 5,467,899 Winter Weather Reserve Fund 122 504,820 600 505,420 500,000 5,420 City Facilities Repair&Replacement 123 559,086 700 559,786 559,786 0 LTGO Bond Debt Service Fund 204 4,049 547,100 551,149 547,100 4,049 REET 1 Capital Projects Fund 301 1,325,345 801,000 2,126,345 671,189 1,455,156 REET 2 Capital Projects Fund 302 1,379,674 801,000 2,180,674 1,371,502 809,172 Street Capital Projects 303 72,930 11,767,791 11,840,721 11,767,791 72,930 Park Capital Projects Fund 309 101,070 264,550 365,620 352,050 13,570 Civic Facilities Capital Projects Fund 310 1,178,074 345,400 1,523,474 0 1,523,474 Pavement Preservation Fund 311 2,522,995 2,301,500 4,824,495 3,050,000 1,774,495 Capital Reserve Fund 312 4,089,489 0 4,089,489 1,524,559 2,564,930 City Hall Construction Fund 313 4,460,364 0 4,460,364 294,400 4,165,964 45,889,684 61,857,694 107,747,378 65,788,757 41,958,621 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Stormwater Management Fund 402 1,791,529 1,871,500 3,663,029 2,240,115 1,422,914 Aquifer Protection Area Fund 403 561,773 2,000,000 2,561,773 2,000,000 561,773 Equipment Rental&Replacement Fund 501 1,242,338 102,333 1,344,671 330,000 1,014,671 Risk Management Fund 502 168,209 325,000 493,209 325,000 168,209 3,763,849 4,298,833 8,062,682 4,895,115 3,167,567 Total of all Funds 49,653,533 66,156,527 115,810,060 70,683,872 45,126,188 21 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ I % #001 -GENERAL FUND RECURRING ACTIVITY Revenues Property Tax 11,277,100 0 11,277,100 11,479,200 202,100 1.79% Sales Tax 17,628,400 0 17,628,400 18,210,500 582,100 3.30% Sales Tax-Public Safety 820,100 0 820,100 867,400 47,300 5.77% Sales Tax-Criminal Justice 1,468,700 0 1,468,700 1,556,400 87,700 5.97% Gambling Tax and Leasehold Excise Tax 535,100 (89,200) 445,900 333,700 (112,200) (25.16%) Franchise Fees/Business Registration 1,238,000 (92,000) 1,146,000 1,154,000 8,000 0.70% State Shared Revenues 1,768,900 0 1,768,900 2,024,528 255,628 14.45% Fines and Forfeitures/Public Safety 1,507,100 0 1,507,100 1,443,500 (63,600) (4.22%) Community Development 1,325,100 0 1,325,100 1,491,500 166,400 12.56% Recreation Program Revenues 563,500 0 563,500 595,200 31,700 5.63% Miscellaneous Department Revenue 95,900 0 95,900 95,900 0 0.00% Miscellaneous&Investment Interest 131,200 0 131,200 103,500 (27,700) (21.11%) Transfers in-#101 (street admin) 39,700 0 39,700 39,700 0 0.00% Transfers in-#105(h/m tax-CP advertising) 30,000 0 30,000 30,000 0 0.00% Transfers in-#402(storm admin) 13,400 0 13,400 13,400 0 0.00% Total Recurring Revenues 38,442,200 (181,200) 38,261,000 39,438,428 1,177,428 3.08% Expenditures City Council 513,114 0 513,114 506,869 (6,245) (1.22%) City Manager 688,363 0 688,363 717,303 28,940 4.20% Legal 461,839 0 461,839 479,951 18,112 3.92% Public Safety 24,153,492 0 24,153,492 24,703,749 550,257 2.28% Deputy City Manager 691,303 0 691,303 737,002 45,699 6.61% Finance/IT 1,203,879 0 1,203,879 1,253,080 49,201 4.09% Human Resources 243,317 0 243,317 255,694 12,377 5.09% Public Works 921,914 0 921,914 966,870 44,956 4.88% Community&Economic Dvlpmnt-Admin 261,094 0 261,094 272,107 11,013 4.22% Community&Economic Dvlpmnt-Econ Dev 298,276 0 298,276 545,157 246,881 82.77% Community&Economic Dvlpmnt-Dev Svc 1,424,944 0 1,424,944 1,486,637 61,693 4.33% Community&Economic Dvlpmnt-Building 1,380,902 0 1,380,902 1,344,165 (36,737) (2.66%) Parks&Rec-Administration 286,947 (15,575) 271,372 281,871 10,499 3.87% Parks&Rec-Maintenance 844,642 0 844,642 838,343 (6,299) (0.75%) Parks&Rec-Recreation 226,174 0 226,174 228,197 2,023 0.89% Parks&Rec-Aquatics 496,200 0 496,200 461,200 (35,000) (7.05%) Parks&Rec-Senior Center 91,985 0 91,985 95,781 3,796 4.13% Parks&Rec-CenterPlace 824,997 0 824,997 882,223 57,226 6.94% Pavement Preservation 920,000 0 920,000 943,800 23,800 2.59% General Government 1,741,200 (31,000) 1,710,200 1,532,000 (178,200) (10.42%) Transfers out-#502(insurance premium) 325,000 0 325,000 325,000 0 0.00% Transfers out-#309(park capital projects) 0 0 0 160,000 160,000 0.00% Transfers out-#310(bond pmt>$434.6k lease pmt) 67,600 0 67,600 72,500 4,900 7.25% Transfers out-#310(city hallo&m costs) 271,700 0 271,700 271,700 0 0.00% Total Recurring Expenditures 38,338,882 (46,575) 38,292,307 39,361,199 1,068,892 2.79% Recurring Revenues Over(Under) Recurring Expenditures 103,318 (134,625) (31,307) 77,229 22 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ I % #001 -GENERAL FUND-continued NONRECURRING ACTIVITY Revenues Transfers in-#106 (solid waste repayment) 0 40,425 40,425 40,425 0 0.00% Total Nonrecurring Revenues 0 40,425 40,425 40,425 0 0.00% Expenditures Transfers out-#107(PEG Fund) 0 267,300 267,300 0 (267,300) (100.00%) Transfers out-#309(park capital projects) 100,000 15,575 115,575 0 (115,575) (100.00%) General Government-IT capital replacements 145,000 (25,000) 120,000 108,000 (12,000) (10.00%) City Manager(2 scanners) 3,000 0 3,000 0 (3,000) (100.00%) Public Safety(const offices for unit supervisors) 25,000 0 25,000 0 (25,000) (100.00%) Community&Econ Dev(comp plan update) 395,000 (145,000) 250,000 350,000 100,000 40.00% Parks&Rec(upgrade dial-up modem at pools) 10,000 0 10,000 15,000 5,000 50.00% Parks&Rec(replace CP lounge area carpet) 8,000 0 8,000 0 (8,000) (100.00%) Parks&Rec(CenterPlace 10yr anniversary) 7,400 0 7,400 0 (7,400) (100.00%) Police Department-CAD/RMS 949,000 (639,300) 309,700 140,281 (169,419) (154.70%) Public Safety(precinct gate motor replace) 0 4,300 4,300 0 (4,300) 0.00% Public Safety(radar recorder) 0 4,600 4,600 0 (4,600) 0.00% Parks&Recreation(CP roof repairs) 0 36,000 36,000 0 (36,000) 0.00% City Hall remodel-Permit Cntr to main bldg 0 23,300 23,300 0 (23,300) 0.00% Transfers out-#312('13 fund bal>50%) 0 1,783,512 1,783,512 0 (1,783,512) (100.00%) Total Nonrecurring Expenditures 1,642,400 1,325,287 2,967,687 613,281 (2,354,406) (79.33%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (1,642,400) (1,284,862) (2,927,262) (572,856) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (1,539,082) (1,419,487) (2,958,569) (495,627) Beginning unrestricted fund balance 24,573,898 24,573,898 21,615,329 Ending unrestricted fund balance 23,034,816 21,615,329 21,119,702 Fund balance as a percent of recurring expenditures 60.08% 56.45% 53.66% General Fund Summary Total revenues 38,442,200 (140,775) 38,301,425 39,478,853 Total expenditures 39,981,282 1,278,712 41,259,994 39,974,480 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (1,539,082) (1,419,487) (2,958,569) (495,627) Beginning unrestricted fund balance 24,573,898 24,573,898 21,615,329 Ending unrestricted fund balance 23,034,816 21,615,329 21,119,702 23 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ SPECIAL REVENUE FUNDS #101 -STREET FUND RECURRING ACTIVITY Revenues Utility Tax 2,565,100 0 2,565,100 2,340,000 (225,100) (8.78%) Motor Vehicle Fuel(Gas)Tax 1,859,900 0 1,859,900 2,004,900 145,000 7.80% Investment Interest 3,000 0 3,000 3,000 0 0.00% Miscellaneous 10,000 0 10,000 10,000 0 0.00% Total Recurring Revenues 4,438,000 0 4,438,000 4,357,900 (80,100) (1.80%) Expenditures Wages/Benefits/Payroll Taxes 677,297 0 677,297 734,604 57,307 8.46% Supplies 111,500 0 111,500 111,500 0 0.00% Services&Charges 2,122,808 0 2,122,808 2,132,754 9,946 0.47% Snow Operations 520,000 0 520,000 430,000 (90,000) (17.31%) Intergovernmental Payments 748,000 0 748,000 771,000 23,000 3.07% Vehicle rentals-#501 (non-plow vehicle rental) 12,077 0 12,077 31,000 18,923 156.69% Vehicle rentals-#501 (plow replace.) 0 0 0 40,000 40,000 0.00% Transfers out-#001 39,700 0 39,700 39,700 0 0.00% Transfers out-#311 (pavement preservation) 206,618 0 206,618 67,342 (139,276) (67.41%) Total Recurring Expenditures 4,438,000 0 4,438,000 4,357,900 (80,100) (1.80%) Recurring Revenues Over(Under) Recurring Expenditures 0 0 0 0 NONRECURRING ACTIVITY Revenues Grants 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total Nonrecurring Revenues 0 0 0 0 0 0.00% Expenditures Pavement marking grinder 8,000 0 8,000 0 (8,000) (100.00%) Capital 45,000 0 45,000 0 (45,000) (100.00%) Maintenance facility storage unit 0 0 0 5,000 5,000 0.00% Signal detection equipment upgrades 0 0 0 20,000 20,000 0.00% Total Nonrecurring Expenditures 53,000 0 53,000 25,000 (28,000) (52.83%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (53,000) 0 (53,000) (25,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (53,000) 0 (53,000) (25,000) Beginning fund balance 1,705,244 1,705,244 1,652,244 Ending fund balance 1,652,244 1,652,244 1,627,244 Street Fund Summary Total revenues 4,438,000 0 4,438,000 4,357,900 Total expenditures 4,491,000 0 4,491,000 4,382,900 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (53,000) 0 (53,000) (25,000) Beginning unrestricted fund balance 1,705,244 1,705,244 1,652,244 Ending unrestricted fund balance 1,652,244 1,652,244 1,627,244 24 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ J % SPECIAL REVENUE FUNDS-continued #103-PATHS&TRAILS FUND Revenues Motor Vehicle Fuel(Gas)Tax 7,800 0 7,800 8,500 700 8.97% Investment Interest 0 0 0 0 0 0.00% Total revenues 7,800 0 7,800 8,500 700 8.97% Expenditures Capital Outlay 0 0 0 0 0 0.00% Transfers out 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 7,800 7,800 8,500 Beginning fund balance 29,828 29,828 37,628 Ending fund balance 37,628 37,628 46,128 #104-HOTEL/MOTEL TAX-TOURISM FACILITIES FUND Revenues Hotel/Motel Tax 0 178,700 178,700 357,500 178,800 100.06% Investment Interest 0 0 0 0 0 0.00% Total revenues 0 178,700 178,700 357,500 178,800 100.06% Expenditures Capital Outlay 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 0 178,700 357,500 Beginning fund balance 0 0 178,700 Ending fund balance 0 178,700 536,200 #105-HOTEL/MOTEL TAX FUND Revenues Hotel/Motel Tax 510,000 40,000 550,000 550,000 0 0.00% Investment Interest 300 0 300 300 0 0.00% Total revenues 510,300 40,000 550,300 550,300 0 0.00% Expenditures Transfers out-#001 30,000 0 30,000 30,000 0 0.00% Tourism Promotion 570,000 (68,000) 502,000 560,000 58,000 11.55% Transfers out-#309(volleyball court award) 0 68,000 68,000 0 (68,000) (100.00%) Total expenditures 600,000 0 600,000 590,000 (10,000) (1.67%) Revenues over(under)expenditures (89,700) (49,700) (39,700) Beginning fund balance 209,949 209,949 160,249 Ending fund balance 120,249 160,249 120,549 25 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ SPECIAL REVENUE FUNDS-continued #106-SOLID WASTE FUND Revenues Sunshine administrative fee 125,000 0 125,000 125,000 0 0.00% Road maintenance fee 0 0 0 0 0 0.00% Investment Interest 0 0 0 0 0 0.00% Grant Proceeds 0 26,800 26,800 53,500 26,700 99.63% Total revenues 125,000 26,800 151,800 178,500 26,700 17.59% Expenditures Education&Contract Administration 125,000 (13,625) 111,375 138,075 26,700 23.97% Transfers out-#001 0 40,425 40,425 40,425 0 0.00% Total expenditures 125,000 26,800 151,800 178,500 26,700 17.59% Revenues over(under)expenditures 0 0 0 Beginning fund balance 7,339 7,339 7,339 Ending fund balance 7,339 7,339 7,339 #107-PEG FUND Revenues Comcast PEG contribution 0 92,000 92,000 90,000 (2,000) (2.17%) Investment Interest 0 0 0 0 0 0.00% Transfers in-#001 0 267,300 267,300 0 (267,300) (100.00%) Total revenues 0 359,300 359,300 90,000 (269,300) (74.95%) Expenditures PEG Reimbursement-CMTV 0 12,000 12,000 12,000 0 0.00% Capital Outlay 0 68,400 68,400 12,500 (55,900) (81.73%) Total expenditures 0 80,400 80,400 24,500 (55,900) (69.53%) Revenues over(under)expenditures 0 278,900 65,500 Beginning fund balance 0 0 278,900 Ending fund balance 0 278,900 344,400 26 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ SPECIAL REVENUE FUNDS-continued #120-CENTER PLACE OPERATING RESERVE FUND Revenues Investment Interest 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total revenues 0 0 0 0 0 0.00% Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 0 0 0 Beginning fund balance 300,000 300,000 300,000 Ending fund balance 300,000 300,000 300,000 #121 -SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest 8,200 0 8,200 6,500 (1,700) (20.73%) Miscellaneous 0 0 0 0 0 0.00% Total revenues 8,200 0 8,200 6,500 (1,700) (20.73%) Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 8,200 8,200 6,500 Beginning fund balance 5,453,199 5,453,199 5,461,399 Ending fund balance 5,461,399 5,461,399 5,467,899 #122-WINTER WEATHER RESERVE FUND Revenues Investment Interest 800 0 800 600 (200) (25.00%) Miscellaneous 0 0 0 0 0 0.00% Subtotal revenues 800 0 800 600 (200) (25.00%) Expenditures Snow removal expenses 500,000 0 500,000 500,000 0 0.00% Total expenditures 500,000 0 500,000 500,000 0 0.00% Revenues over(under)expenditures (499,200) (499,200) (499,400) Beginning fund balance 504,020 504,020 504,820 Ending fund balance 4,820 4,820 5,420 #123-CIVIC FACILITIES REPLACEMENT FUND Revenues Investment Interest 1,300 0 1,300 700 (600) (46.15%) Miscellaneous 0 0 0 0 0 0.00% Total revenues 1,300 0 1,300 700 (600) (46.15%) Expenditures Transfers out-#311 (pavement preservation) 616,284 0 616,284 559,786 (56,498) (9.17%) Total expenditures 616,284 0 616,284 559,786 (56,498) (9.17%) Revenues over(under)expenditures (614,984) (614,984) (559,086) Beginning fund balance 1,174,070 1,174,070 559,086 Ending fund balance 559,086 559,086 0 27 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ I DEBT SERVICE FUNDS #204-LTGO BOND DEBT SERVICE FUND Revenues Spokane Public Facilities District 373,800 0 373,800 380,300 6,500 1.74% Transfers in-#301 82,150 0 82,150 83,400 1,250 1.52% Transfersin-#302 82,150 0 82,150 83,400 1,250 1.52% Total revenues 538,100 0 538,100 547,100 9,000 1.67% Expenditures Debt Service Payments-CenterPlace 373,800 0 373,800 380,300 6,500 1.74% Debt Service Payments-Roads 164,300 0 164,300 166,800 2,500 1.52% Total expenditures 538,100 0 538,100 547,100 9,000 1.67% Revenues over(under)expenditures 0 0 0 Beginning fund balance 4,049 4,049 4,049 Ending fund balance 4,049 4,049 4,049 28 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment, Amended Budget $ I % CAPITAL PROJECTS FUNDS #301 -REET 1 CAPITAL PROJECTS FUND Revenues REET 1 -Taxes 625,000 175,000 800,000 800,000 0 0.00% Investment Interest 1,000 0 1,000 1,000 0 0.00% Total revenues 626,000 175,000 801,000 801,000 0 0.00% Expenditures Transfersout-#204 82,150 0 82,150 83,400 1,250 1.52% Transfers out-#303 221,980 347,433 569,413 222,503 (346,910) (60.92%) Transfers out-#311 (pavement preservation) 251,049 0 251,049 365,286 114,237 45.50% Total expenditures 555,179 347,433 902,612 671,189 (231,423) (25.64%) Revenues over(under)expenditures 70,821 (101,612) 129,811 Beginning fund balance 1,426,957 1,426,957 1,325,345 Ending fund balance 1,497,778 1,325,345 1,455,156 #302-REET 2 CAPITAL PROJECTS FUND Revenues REET 2-Taxes 625,000 175,000 800,000 800,000 0 0.00% Investment Interest 1,000 0 1,000 1,000 0 0.00% Total revenues 626,000 175,000 801,000 801,000 0 0.00% Expenditures Transfers out-#204 82,150 0 82,150 83,400 1,250 1.52% Transfers out-#303 365,290 47,981 413,271 922,816 509,545 123.30% Transfers out-#311 (pavement preservation) 251,049 0 251,049 365,286 114,237 45.50% Total expenditures 698,489 47,981 746,470 1,371,502 625,032 83.73% Revenues over(under)expenditures (72,489) 54,530 (570,502) Beginning fund balance 1,325,144 1,325,144 1,379,674 Ending fund balance 1,252,655 1,379,674 809,172 29 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ CAPITAL PROJECTS FUNDS-continued #303-STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds 8,714,114 1,607,229 10,321,343 8,797,263 (1,524,080) (14.77%) Developer 94,860 269,518 364,378 314,700 (49,678) (13.63%) Transfers in-#301 221,980 347,433 569,413 222,503 (346,910) (60.92%) Transfers in-#302 365,290 47,981 413,271 922,816 509,545 123.30% Transfers in-#312-Pines Underpass Pinecroft 0 0 0 500,000 500,000 0.00% Transfers in-#312-Sullivan Rd W Bridge 2,120,000 (1,620,000) 500,000 1,010,509 510,509 102.10% Total revenues 11,516,244 652,161 12,168,405 11,767,791 (400,614) (3.29%) Expenditures 060 Argonne Rd Corridor Upgrade SRTC 602,196 612,633 1,214,829 0 (1,214,829) (100.00%) 123 Mission Ave.-Flora to Barker 355,376 (102,806) 252,570 332,566 79,996 31.67% 141 Sullivan&Euclid PCC(PE&RW) 35,052 (25,052) 10,000 1,981,060 1,971,060 19710.60% 142 Broadway @ Argonne/Mullan PCC int,(PE/RW) 0 120,494 120,494 0 (120,494) (100.00%) 149 Sidewalk Infill 0 93,190 93,190 5,000 (88,190) (94.63%) 155 Sullivan Rd W Bridge Replacement 7,201,779 645,152 7,846,931 5,237,650 (2,609,281) (33.25%) 156 Mansfield Ave.Connection 570,480 602,236 1,172,716 5,000 (1,167,716) (99.57%) 159 University Rd/1-90 Overpass Study 0 40,852 40,852 0 (40,852) (100.00%) 166 Pines Rd(SR27)&Grace Ave. Intersect Safety' 556,137 (455,027) 101,110 491,331 390,221 385.94% 167 Citywide Safety Improvements(bike/ped) 320,560 (59,984) 260,576 228,127 (32,449) (12.45%) 177 Sullivan Rd Corridor Traffic Study 0 55,556 55,556 0 (55,556) (100.00%) 191 Vista Rd BNSF Xing Safety Improvements 0 300 300 0 (300) (100.00%) 196 8th Avenue-McKinnon to Fancher 0 400 400 0 (400) (100.00%) 201 ITS Infill Project Phase 1 (PE START 2014) 301,357 (245,301) 56,056 271,357 215,301 384.08% 205 Sprage/Barker Intersection Improvement 0 51,428 51,428 0 (51,428) (100.00%) 206 2015 CDBG Sidewalk Project 246,231 111,483 357,714 5,000 (352,714) (98.60%) 207 Indiana&Evergreen Transit Access Improve. 70,014 14,986 85,000 0 (85,000) (100.00%) 211 Trent Lighting Replacement 151,576 (55,041) 96,535 0 (96,535) (100.00%) 220 Houk-Sinto-Maxwell St Preservation 0 18,473 18,473 0 (18,473) (100.00%) 221 McDonald Rd Diet(16th to Mission) 0 56,800 56,800 559,200 502,400 884.51% 222 Citywide Reflective Signal Backplates 0 4,500 4,500 40,500 36,000 800.00% 223 Pines Rd Underpass @ BNSF&Trent 0 10,000 10,000 500,000 490,000 4900.00% 224 Mullan Rd Street Preservation Project 0 162,375 162,375 0 (162,375) (100.00%) xxx N.Sullivan Corridor ITS Project(PE start 2015) 105,486 (105,486) 0 0 0 0.00% xxx Seth Woodward Elem Sidewalk Improvement 0 0 0 361,000 361,000 (100.00%) xxx Maribeau Pkway&Pines(SR-27)Traffic Signal 0 0 0 350,000 350,000 (100.00%) xxx Bowdish Sidewalk 8th to 12th 0 0 0 400,000 400,000 (100.00%) Contingency 1,000,000 (900,000) 100,000 1,000,000 900,000 900.00% Total expenditures 11,516,244 652,161 12,168,405 11,767,791 (400,614) (3.29%) Revenues over(under)expenditures 0 0 0 Beginning fund balance 72,930 72,930 72,930 Ending fund balance 72,930 72,930 72,930 Note: Work performed for pavement preservation projects out of the Street Capital Projects Fund is for items such as sidewalk upgrades that were bid with the pavement preservation work. 30 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ CAPITAL PROJECTS FUNDS-continued #309-PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds 0 90,000 90,000 90,000 0 0.00% Transfers in-#001 100,000 15,575 115,575 160,000 44,425 38.44% Transfers in-#105 0 68,000 68,000 0 (68,000) (100.00%) Transfers in-#312-Appleway(Univ.-Pines) 0 540,600 540,600 0 (540,600) (100.00%) Transfers in-#312-Appleway(Pines-Evergreen) 0 14,050 14,050 14,050 0 0.00% Investment Interest 500 0 500 500 0 0.00% Total revenues 100,500 728,225 828,725 264,550 (564,175) (68.08%) Expenditures 176 Appleway Trail(Univ.-Pines) 0 540,600 540,600 0 (540,600) (100.00%) 203 5 Sand volleyball courts at Browns Park 176,200 68,000 244,200 0 (244,200) (100.00%) 217 Edgecliff picnic shelter 106,450 0 106,450 0 (106,450) (100.00%) 225 Pocket dog park-phase 1 75,000 23,975 98,975 0 (98,975) (100.00%) Mission Trailhead landscaping 25,000 22,100 47,100 0 (47,100) (100.00%) Shade structure at Discovery Playground 38,000 0 38,000 0 (38,000) (100.00%) City entry sign 70,000 (70,000) 0 70,000 70,000 0.00% Park signs(3) 0 0 0 20,500 20,500 0.00% Browns Park Splash Pad 0 0 0 82,500 82,500 0.00% Pocket dog park-phase 2 0 0 0 75,000 75,000 0.00% Appleway Trail(Pines-Evergreen) 0 104,050 104,050 104,050 0 0.00% Total expenditures 490,650 688,725 1,179,375 352,050 (827,325) (70.15%) Revenues over(under)expenditures (390,150) (350,650) (87,500) Beginning fund balance 451,720 451,720 101,070 Ending fund balance 61,570 101,070 13,570 #310-CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Investment Interest 1,200 0 1,200 1,200 0 0.00% Transfers in-#001 Future C.H.bond pmt>$434.6k lease pmt 67,600 0 67,600 72,500 4,900 7.25% Future C.H.o&m costs 271,700 0 271,700 271,700 0 0.00% Transfers in-#312 0 58,324 58,324 0 (58,324) (100.00%) Total revenues 340,500 58,324 398,824 345,400 (53,424) (13.40%) Expenditures Professional services 0 12,100 12,100 0 (12,100) (100.00%) Capital Outlay-City Hall 0 1,128,200 1,128,200 0 (1,128,200) (100.00%) Total expenditures 0 1,140,300 1,140,300 0 (1,140,300) (100.00%) Revenues over(under)expenditures 340,500 (741,476) 345,400 Beginning fund balance 1,919,550 1,919,550 1,178,074 Ending fund balance 2,260,050 1,178,074 1,523,474 Note: The fund balance in#310 includes$839,285.10 paid by the Library District for 2.82 acres at the Balfour Park site. If the District does not succeed in getting a voted bond approved by October 2017 then the City may repurchase this land at the original sale price of$839,285.10. 31 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ I CAPITAL PROJECTS FUNDS-continued #311 -PAVEMENT PRESERVATION Revenues Transfers in-#001 920,000 0 920,000 943,800 23,800 2.59% Transfers in-#101 206,618 0 206,618 67,342 (139,276) (67.41%) Transfers in-#123 616,284 0 616,284 559,786 (56,498) (9.17%) Transfers in-#301 251,049 0 251,049 365,286 114,237 45.50% Transfers in-#302 251,049 0 251,049 365,286 114,237 45.50% Grants 971,032 0 971,032 0 (971,032) (100.00%) Investment Interest 0 0 0 0 0 0.00% Total revenues 3,216,032 0 3,216,032 2,301,500 (914,532) (28.44%) Expenditures Pavement preservation 2,565,050 0 2,565,050 3,000,000 434,950 16.96% Pre-project GeoTech 50,000 0 50,000 50,000 0 0.00% Total expenditures 2,615,050 0 2,615,050 3,050,000 434,950 16.63% Revenues over(under)expenditures 600,982 600,982 (748,500) Beginning fund balance 1,922,013 1,922,013 2,522,995 Ending fund balance 2,522,995 2,522,995 1,774,495 #312-CAPITAL RESERVE FUND Revenues Transfers in-#001 0 1,783,512 1,783,512 0 (1,783,512) (100.00%) Investment Interest 0 0 0 0 0 0.00% Total revenues 0 1,783,512 1,783,512 0 (1,783,512) (100.00%) Expenditures Transfers out#303(Sullivan Rd W Bridge) 2,120,000 (1,620,000) 500,000 1,010,509 510,509 102.10% Transfers out#303(Pines Rd Underpass) 0 0 0 500,000 500,000 0.00% Transfers out#309(Appleway Trail-Univ-Pines) 0 540,600 540,600 0 (540,600) (100.00%) Transfers out#309(Appleway Trail-Pines-Evergre 0 14,050 14,050 14,050 0 0.00% Transfers out#310(City Hall) 0 58,324 58,324 0 (58,324) (100.00%) Transfers out#313(City Hall) 0 5,162,764 5,162,764 0 (5,162,764) (100.00%) Total expenditures 2,120,000 4,155,738 6,275,738 1,524,559 (4,751,179) (75.71%) Revenues over(under)expenditures (2,120,000) (4,492,226) (1,524,559) Beginning fund balance 8,581,715 8,581,715 4,089,489 Ending fund balance 6,461,715 4,089,489 2,564,930 #313-CITY HALL CONSTRUCTION FUND Revenues Transfers in-#312 0 5,162,764 5,162,764 0 (5,162,764) (100.00%) Investment Interest 0 0 0 0 0 0.00% Total revenues 0 5,162,764 5,162,764 0 (5,162,764) (100.00%) Expenditures Capital Outlay-City Hall 0 702,400 702,400 294,400 (408,000) (58.09%) Total expenditures 0 702,400 702,400 294,400 (408,000) (58.09%) Revenues over(under)expenditures 0 4,460,364 (294,400) Beginning fund balance 0 0 4,460,364 Ending fund balance 0 4,460,364 4,165,964 32 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ ENTERPRISE FUNDS #402-STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees 1,880,000 0 1,880,000 1,870,000 (10,000) (0.53%) Investment Interest 1,500 0 1,500 1,500 0 0.00% Total Recurring Revenues 1,881,500 0 1,881,500 1,871,500 (10,000) (0.53%) Expenditures Wages/Benefits/Payroll Taxes 488,101 0 488,101 514,132 26,031 5.33% Supplies 15,900 0 15,900 15,900 0 0.00% Services&Charges 1,078,301 0 1,078,301 1,113,683 35,382 3.28% Intergovernmental Payments 42,000 0 42,000 67,000 25,000 59.52% Vehicle rentals-#501 4,167 0 4,167 11,000 6,833 163.98% Transfers out-#001 13,400 0 13,400 13,400 0 0.00% Total Recurring Expenditures 1,641,869 0 1,641,869 1,735,115 93,246 5.68% Recurring Revenues Over(Under) Recurring Expenditures 239,631 0 239,631 136,385 NONRECURRING ACTIVITY Revenues Grant Proceeds 0 389,674 389,674 0 (389,674) (100.00%) Miscellaneous 0 0 0 0 0 0.00% Transfers in-#403 0 120,000 120,000 0 (120,000) (100.00%) Total Nonrecurring Revenues 0 509,674 509,674 0 (509,674) 0 Expenditures Capital-various projects 600,000 275,340 875,340 500,000 (375,340) (42.88%) VMS Trailer 16,000 0 16,000 0 (16,000) (100.00%) Maintenance facility storage unit 0 0 0 5,000 5,000 0.00% Total Nonrecurring Expenditures 616,000 275,340 891,340 505,000 (386,340) (43.34%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (616,000) 234,334 (381,666) (505,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (376,369) 234,334 (142,035) (368,615) Beginning working capital 1,933,564 1,933,564 1,791,529 Ending working capital 1,557,195 1,791,529 1,422,914 Stormwater Fund Summary Total revenues 1,881,500 509,674 2,391,174 1,871,500 Total expenditures 2,257,869 275,340 2,533,209 2,240,115 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (376,369) 234,334 (142,035) (368,615) Beginning unrestricted fund balance 1,933,564 1,933,564 1,791,529 Ending unrestricted fund balance 1,557,195 1,791,529 1,422,914 33 CITY OF SPOKANE VALLEY,WA 11/10/2015- 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ ENTERPRISE FUNDS-continued #403-AQUIFER PROTECTION AREA Revenues Spokane County 500,000 0 500,000 500,000 0 0.00% Grant DOE-Broadway SD Retrofit 1,260,000 0 1,260,000 0 (1,260,000) (100.00%) Grant DOE-Sprague Park to University LID 0 0 0 1,500,000 1,500,000 0.00% Total revenues 1,760,000 0 1,760,000 2,000,000 240,000 13.64% Expenditures 197 Broadway Storm Drain Retrofit 1,200,000 (120,000) 1,080,000 0 (1,080,000) (100.00%) 198 Sprague Park to University LID 0 0 0 2,000,000 2,000,000 0.00% Transfers out-#402 0 120,000 120,000 0 (120,000) (100.00%) Total expenditures 1,200,000 0 1,200,000 2,000,000 800,000 66.67% Revenues over(under)expenditures 560,000 560,000 0 Beginning working capital 1,773 1,773 561,773 Ending working capital 561,773 561,773 561,773 34 CITY OF SPOKANE VALLEY,WA 11/10/2015 2016 Budget 2015 2016 Difference Between As As Proposed 2015 and 2016 Adopted Amendment Amended Budget $ INTERNAL SERVICE FUNDS #501-ER&R FUND Revenues Vehicle rentals-#001 19,300 0 19,300 23,500 4,200 21.76% Vehicle rentals-#101 12,077 0 12,077 31,000 18,923 156.69% Vehicle rentals-#101 (plow replace.) 0 0 0 40,000 40,000 0.00% Vehicle rentals-#402 4,167 0 4,167 6,833 2,666 63.98% Investment Interest 1,000 0 1,000 1,000 0 0.00% Total revenues 36,544 0 36,544 102,333 65,789 180.03% Expenditures Vehicle Replacement 30,000 0 30,000 105,000 75,000 250.00% Snow Plow Replacement 0 0 0 225,000 225,000 0.00% Total expenditures 30,000 0 30,000 330,000 300,000 1000.00% Revenues over(under)expenditures 6,544 6,544 (227,667) Beginning working capital 1,235,794 1,235,794 1,242,338 Ending working capital 1,242,338 1,242,338 1,014,671 #502-RISK MANAGEMENT FUND Revenues Investment Interest 0 0 0 0 0 0.00% Transfers in-#001 325,000 0 325,000 325,000 0 0.00% Total revenues 325,000 0 325,000 325,000 0 0.00% Expenditures Auto&Property Insurance 325,000 0 325,000 325,000 0 0.00% Unemployment Claims 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total expenditures 325,000 0 325,000 325,000 0 0.00% Revenues over(under)expenditures 0 0 0 Beginning fund balance 168,209 168,209 168,209 Ending fund balance 168,209 168,209 168,209 (TOTAL OF ALL FUNDS Total of Revenues for all Funds 64,500,020 9,708,685 74,208,705 66,156,527 Total of Expenditures for all Funds 68,660,147 9,395,990 78,056,137 70,683,872 Total grant revenues(included in total revenues) 10,945,146 2,113,703 13,058,849 10,440,763 Total Capital expenditures(included in total expenditures) 16,665,944 3,382,326 20,048,270 18,444,741 35 CITY OF SPOKANE VALLEY,WA 2016 Budget Revenues by Fund General Fund Property Tax 11,479,200 Sales Tax 18,210,500 Sales Tax-Public Safety 867,400 Sales Tax-Criminal Justice 1,556,400 Gambling and Leasehold Excise Tax 333,700 Franchise Fees/Business Registration 1,154,000 State Shared Revenues 2,024,528 Service Revenues 1,587,400 Fines and Forfeitures 1,443,500 Recreation Program Fees 595,200 Miscellaneous, Investment Int., Transfers 227,025 Total General Fund 39,478,853 Other Funds 101 Street Fund 4,357,900 103 Paths &Trails Fund 8,500 104 Hotel/Motel Tax Tourism Facilities Fund 357,500 105 Hotel/Motel Tax Fund 550,300 106 Solid Waste Fund 178,500 107 PEG Fund 90,000 120 CenterPlace Operating Reserve Fund 0 121 Service Level Stabilization Reserve Fund 6,500 122 Winter Weather Reserve Fund 600 123 Civic Facilities Replacement Fund 700 204 LTGO Bond Debt Service Fund 547,100 301 REET 1 Capital Projects Fund 801,000 302 REET 2 Capital Projects Fund 801,000 303 Street Capitial Projects Fund 11,767,791 309 Parks Capital Projects Fund 264,550 310 Civic Facilities Capital Projects Fund 345,400 311 Pavement Preservation Fund 2,301,500 312 Capital Reserve Fund 0 313 City Hall Construction Fund 0 402 Stormwater Management Fund 1,871,500 403 Aquifer Protection Area Fund 2,000,000 501 Equipment Rental &Replacement Fund 102,333 502 Risk Management Fund 325,000 Total Other Funds 26,677,674 Total All Funds 66,156,527 36 X r0 H X Q N " to a1 [t L o a N . J • CC m. " W C 00 0 Z 00 2(1) e Q LL U • Yvi O " M ti) LCU L. 1 - I - -- O N V o o o U aJ cc t.) to C X C cu zs./...:, a) [a cri a) d1 C cu v) N co 0 o •U > a) x N a) C co its Ql LL d cc c " H T o U o di N -d \ CO C GD 4-' C/1 d' " a) Lfl \ O •� c 4 N c CU L- " :N .Q a-1 CO C CU CO e E N �o LE i N LL -, m CO L) C a) a) 'a0C7 .n E N U CC 0 U C co L LL VI D D LL -o c _ LL E C N U_ dA LL g 0 c a M N %-1 CO M N 2 a 1= L L 05 03 C — o oc.nI LL N U N 0 O N d T. 430,-,4 \M . J Y 1 _?.k b411 kit fr, v+j, .JL Z Y � 5S a 4 e 3, 's rqQ .v y/ gs i I-1 AN ,, LID 'R Y 3,9....W. \ M O -a Lr AAs ,N}{ ., _ � r h ," N m *� f a `c 11 9r 5.441 sifrir' -o a) 1.4krin @ lD a) 0 0 "o C 7 U- 0./ 3 C N cc o N -o 14 C U 7 IU IL o In a) lD L N Q) +L,, 4-, N 0 CITY OF SPOKANE VALLEY,WA 2016 Budget-General Fund Detail Revenues by Type 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Property Tax Property Tax 10,799,123 10,841,559 11,129,377 11,277,100 11,479,200 Property Tax-Delinquent 0 0 0 0 0 10,799,123 10,841,559 11,129,377 11,277,100 11,479,200 Sales Taxes Sales Tax 15,427,377 16,587,617 17,440,083 17,628,400 18,210,500 Sales Tax-Public Safety 724,052 759,889 812,280 820,100 867,400 Sales Tax-Criminal Justice 1,286,302 1,358,956 1,455,313 1,468,700 1,556,400 17,437,731 18,706,461 19,707,676 19,917,200 20,634,300 Gambling and Leasehold Excise Tax Amusement Games 10,125 10,799 11,063 10,800 11,000 Card Games 541,696 382,651 429,376 356,800 249,000 Bingo&Raffles 1,802 638 1,227 1,200 1,200 Punch Boards&Pull Tabs 64,771 134,350 64,585 71,000 65,000 Leasehold Excise Tax 11,481 6,139 6,932 6,100 6,800 Leasehold Excise Tax(State) 770 770 770 700 700 630,645 535,347 513,954 446,600 333,700 Licenses&Permits General Business Licenses 92,867 97,889 106,741 97,000 100,000 Comcast PEG Contribution 91,014 92,642 89,121 0 0 Franchise Fees 1,029,061 1,048,803 1,053,986 1,049,000 1,054,000 1,212,942 1,239,335 1,249,848 1,146,000 1,154,000 State Shared Revenues Streamline Mitigation of Sales Tax 557,415 571,806 575,269 520,000 520,000 Payment in Lieu of Taxes-DNR 8,898 0 8,528 4,400 4,400 CJ-High Crime 148,505 49,505 0 0 0 MVET Criminal Justice-Population 20,548 22,282 23,837 23,000 26,135 CJ Contracted Services 134,119 142,180 152,133 140,000 150,000 CJ Special Programs 77,114 82,689 88,168 81,900 90,540 DUI-Cities 16,618 16,604 16,273 16,600 16,300 Liquor Board Excise Tax 225,791 121,297 157,068 175,800 413,496 Liquor Board Profits 898,852 813,952 812,922 807,200 803,657 2,087,860 1,820,317 1,834,198 1,768,900 2,024,528 Service Revenues Airway Heights Bldg.Plan Rev. 10,476 471 0 500 0 Building Permits 640,896 920,921 819,234 700,000 800,000 Demolition Permits 3,446 3,860 4,836 3,900 4,000 Building&Planning Fees 95,403 103,645 381,282 100,100 126,400 Entertainment License 12,604 18,335 15,823 16,500 16,000 Grading Permits 3,444 3,551 4,049 3,200 3,500 Home Profession Fee 3,360 3,612 3,108 3,400 3,100 Mechanical Permits 84,045 80,927 108,759 81,000 85,000 Misc.Permits&Fees 11,117 5,203 8,168 6,100 7,100 Planning Fees 001.058.059.345.83.* 332,778 437,287 145,218 355,500 380,500 Plumbing Permits 50,829 49,688 63,667 49,000 60,000 Right of Way Permits 82,262 98,265 94,512 95,000 95,000 Code Enforcement 3,906 (13,423) 6,189 6,000 6,000 Temporary Use Permit Fees 471 942 471 _ 800 800 1,335,037 1,713,284 1,655,315 1,421,000 1,587,400 Fines and Forfeitures Public Safety False Alarm Services 170,262 183,032 0 180,000 195,000 Public Safety Grants 61,255 66,846 59,265 40,000 50,000 Fines&Forfeits-Traffic 586,000 558,378 761,179 603,400 566,000 Other Criminal-Non Traffic Fines 683,641 688,201 639,820 683,700 632,500 1,501,158 1,496,458 1,460,263 1,507,100 1,443,500 Recreation Program Charges Activity Fees(To use a recreational facility) 438,226 452,000 401,920 379,800 400,300 Program Fees(To participate in a program) 168,250 78,065 197,482 183,700 194,900 606,476 530,065 599,401 563,500 595,200 Miscellaneous Investment Interest 88,008 61,206 41,910 70,000 45,000 Sales Tax Interest 6,086 3,120 3,978 5,000 5,000 SCRAPS pass-through/nonrecurring 0 0 57,259 0 1,000 Interest on Gambling Tax 2,728 1,937 256 2,000 2,000 Dept.of Ecology Grant 51,048 62,101 6,290 0 0 EECBG Grant 20,383 0 0 0 0 Police Precinct Rent&Maint. 41,636 51,530 48,558 51,500 48,500 Miscellaneous Revenue&Grants 5,611 12,265 5,343 2,000 2,000 215,500 192,158 163,594 130,500 103,500 Transfers Transfer-in-#101(street admin) 39,600 39,700 39,700 39,700 39,700 Transfer-in-#120 0 50,787 0 0 0 Transfer-in-#105(hlm tax-CP advertising) 30,000 30,000 30,000 30,000 30,000 Transfer-in-#106(solid waste repayment) 0 0 0 40,425 40,425 Transfer-in-#402(storm admin) 15,000 13,400 13,400 13,400 13,400 84,600 133,887 83,100 123,525 123,525 Total General Fund Revenue 35,911.072 37,208.871 38,396,726 38,301,425 39,478,853 39 CITY OF SPOKANE VALLEY,WA 2016 Budget-Other Funds Detail Revenues by Type 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget 101 Street Fund Investment Interest 4,056 0 2,037 3,000 3,000 Grants Revenues 173,185 172,530 0 0 0 Motor Fuel(Gas)Tax 1,846,990 1,868,055 1,878,476 1,859,900 2,004,900 Other Miscellaneous Revenues&Grants 64,415 9,848 24,587 10,000 10,000 Transfers in-#302 7,614 27,375 0 0 0 Street Maintenance&Repair Charges 0 7,774 0 0 0 Utilities tax 2,735,484 2,562,722 2,461,060 2,565,100 2,340,000 4,831,743 4,648,303 4,366,160 4,438,000 4,357,900 103 Paths&Trails Fund Investment interest 67 51 0 0 0 Motor Fuel(Gas)Tax 7,790 7,879 7,957 7,800 8,500 7,857 7,930 7,957 7,800 8,500 104 Hotel/Motel Tax-Tourism Facilities Fund Hotel/Motel Tax 0 0 0 178,700 357,500 Investment interest 0 0 0 0 0 0 0 0 178,700 357,500 105 Hotel/Motel Tax Fund Hotel/Motel Tax 490,004 518,672 549,267 550,000 550,000 Investment Interest 592 387 299 300 300 490,596 519,059 549,566 550,300 550,300 106 Solid Waste Sunshine administrative fee 0 0 0 125,000 125,000 Grant Proceeds 0 0 0 26,800 53,500 Transfers in-#001 (marketing/education) 0 0 60,000 0 0 0 0 60,000 151,800 178,500 107 PEG Fund Comcast PEG contribution 0 0 0 92,000 90,000 Investment Interest 0 0 0 0 0 Transfers in-#001 0 0 0 267,300 0 0 0 0 359,300 90,000 120 CenterPlace Operating Reserve Fund Investment Interest 0 0 0 0 0 0 0 0 0 0 121 Service Level Stabilization Reserve Fund Transfer in 0 0 0 0 0 Investment Interest 9,103 6,971 4,697 8,200 6,500 9,103 6,971 4,697 8,200 6,500 122 Winter Weather Reserve Fund Investment Interest 883 676 456 800 600 883 676 456 800 600 123 City Facilities Repair&Replacement Fund Investment Interest 2,099 1,607 1,083 1,300 700 Transfers in 397,000 0 0 0 0 399,099 1,607 1,083 1,300 700 204 Debt Service-LTGO 03 Fund 2014 LTGO Bond issue proceeds 0 0 7,660,694 0 0 Facilities District Revenue 432,320 437,120 423,844 373,800 380,300 Transfers in-#301 92,651 92,951 89,559 82,150 83,400 Transfers in-#302 92,651 92,952 89,559 82,150 83,400 617,623 623,023 8,263,656 538,100 547,100 40 CITY OF SPOKANE VALLEY,WA 2016 Budget-Other Funds Detail Revenues by Type 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget 301 REET 1 Capital Projects Fund Investment Interest 1,204 1,138 793 1,000 1,000 REET 1-2nd Percent 654,264 707,104 790,781 800,000 800,000 Misc.Revenues 9,601 0 0 0 0 665,069 708,242 791,574 801,000 801,000 302 REET 2 Capital Projects Fund Investment Interest 1,762 1,349 909 1,000 1,000 REET 2-2nd.25 Percent 531,442 614,929 776,648 800,000 800,000 Transfers in-Capital Grants fund 6,477 0 0 0 0 539,681 616,278 777,557 801,000 801,000 303 Street Capital Projects Fund Developer Contributions 760,768 0 541 364,378 314,700 Grant Proceeds 3,852,253 3,475,351 1,825,974 10,321,343 8,797,263 Transfers in-#001 64,750 0 0 0 0 Transfers in-#101 476,659 138 5,038 0 0 Transfers in-#102 207,447 0 0 0 0 Transfers in-#301 Capital Projects 253,429 589,534 58,607 569,413 222,503 Transfers in-#302 Special Capital Projects 1,101,314 153,243 501,736 413,271 922,816 Transfers in-#310 140,139 0 0 0 0 Transfers in-#311 299,027 77,720 0 0 0 Transfers in-#312 Appleway Landscaping 0 8,348 253,645 0 0 Transfers in-#312 Sullivan Rd W Bridge 0 0 443,688 500,000 1,010,509 Transfers in-#312 Pines Underpass Pinecroft 0 0 0 0 500,000 Transfers in-#402 113,014 0 0 0 0 Miscellaneous 1,651 77 21 0 0 7,270,451 4,304,412 3,089,249 12,168,405 11,767,791 309 Parks Capital Projects Fund Investment Interest 848 660 444 500 500 Contributions and Donations 0 25,000 7,850 0 0 Transfers in-#001 106,250 50,000 242,298 115,575 160,000 Transfers in-#103 0 0 50,000 0 0 Transfers in-#105 0 0 0 68,000 0 Transfers in-#312 0 0 911,433 540,600 0 Transfers in-#312-Appleway(Pines-Evergree 0 0 0 14,050 14,050 Grant Proceeds 0 0 0 90,000 90,000 107,098 75,660 1,212,025 828,725 264,550 310 Civic Facilities Capital Projects Fund Investment Interest 5,349 1,771 1,193 1,200 1,200 Sale of land 0 0 839,285 0 0 Transfers in-#001 7,577 0 0 0 0 Future C.H.bond pmt>$424.6k lease pmt 0 0 0 67,600 72,500 Future C.H.o&m costs 0 0 0 271,700 271,700 Transfers in-#312 0 0 0 58,324 0 12,926 1,771 840,478 398,824 345,400 311 Pavement Preservation Fund Grants 0 35,995 2,042,715 971,032 0 Investment Interest 0 2,751 1,853 0 0 Transfers in-#001 2,045,503 0 888,823 920,000 943,800 Transfers in-#101 0 282,000 282,000 206,618 67,342 Transfers in-#123 0 616,284 616,284 616,284 559,786 Transfers in-#301 0 150,000 184,472 251,049 365,286 Transfers in-#302 0 150,000 184,472 251,049 365,286 2,045,503 1,237,030 4,200,619 3,216,032 2,301,500 312 Capital Reserve Fund Developer Contributions 0 3,180 4,675 0 0 Transfers in-#001 0 7,826,207 2,443,507 1,783,512 0 0 7,829,387 2,448,182 1,783,512 0 313 City Hall Construction Fund Investment Interest 0 0 0 0 0 Transfers in-#312 0 0 0 5,162,764 0 0 0 0 5,162,764 0 41 CITY OF SPOKANE VALLEY,WA 2016 Budget-Other Funds Detail Revenues by Type 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget 402 Stormwater Management Fund Grant Proceeds 64,838 233,165 76,097 389,674 0 Transfer in-#403 0 0 0 120,000 0 Developer Contributions 0 0 51,492 0 0 Miscellaneous Revenue 0 4,143 1,500 0 0 Investment Interest 2,658 1,992 1,342 1,500 1,500 Stormwater Management Fee 1,834,740 1,869,081 1,865,413 1,880,000 1,870,000 1,902,236 2,108,381 1,995,844 2,391,174 1,871,500 403 Aquifer Protection Area Fund Spokane County 510,936 484,343 461,828 500,000 500,000 Grant DOE-Broadway SD Retrofit 0 859,310 699,913 1,260,000 0 Grant DOE-Sprague Park to University LID 0 0 0 0 0 Transfers in-#402(DOE for Decant Proj) 0 0 50,125 0 0 Grant-Sprague Swales 96,291 0 0 0 1,500,000 Investment Interest 0 0 0 0 0 607,227 1,343,653 1,211,866 1,760,000 2,000,000 501 Equipment Rental&Replacement Fund Investment Interest 1,498 1,176 792 1,000 1,000 Interfund Equip&Vehicle Lease 119,344 177,744 102,744 35,544 101,333 Transfers in-#101 0 0 25,849 0 0 Transfers in- #402 0 0 25,843 0 0 120,842 178,920 155,228 36,544 102,333 502 Risk Management Fund Transfers in-#001 319,000 319,000 325,000 325,000 325,000 Investment Interest 9 7 5 0 0 319,009 319,007 325,005 325,000 325,000 Total of"Other Fund"Revenues 19,946,944 24,530,311 30,301,203 35,907,280 26,677,674 General Fund Revenues 35,911,072 37,208,871 38,396,726 38,301,425 39,478,853 Total Revenues 55,858,060 61,739,182 68,697,928 74,208,705 66,156,527 42 CITY OF SPOKANE VALLEY,WA 2016 Budget Expenditures by Fund and Department General Fund Council 506,869 City Manager 1,197,254 Public Safety 24,844,030 Operations&Administrative Deputy City Manager 737,002 Finance 1,253,080 Human Resources 255,694 Public Works 966,870 Community&Economic Development Administration 622,107 Economic Development 545,157 Development Services 1,486,637 Building 1,344,165 Parks&Recreation Administration 296,871 Maintenance 838,343 Recreation 228,197 Aquatics 461,200 Senior Center 95,781 CenterPlace 882,223 General Government 3,413,000 Total General Fund 39,974,480 Other Funds Street Fund 4,382,900 Paths&Trails Fund 0 Hotel/Motel Tax-Tourism Facilities Fund 0 Hotel/Motel Tax Fund 590,000 Solid Waste 178,500 PEG Fund 24,500 CenterPlace Operating Reserve Fund 0 Service Level Stabilization Fund 0 Winter Weather Reserve Fund 500,000 Civic Facility Replacement Fund 559,786 LTGO Bond Debt Service Fund 547,100 REET 1 Capital Projects Fund 671,189 REET 2 Capital Projects Fund 1,371,502 Street Capital Projects Fund 11,767,791 Parks Capital Projects Fund 352,050 Civic Facilities Capital Projects Fund 0 Pavement Preservation 3,050,000 Capital Reserve Fund 1,524,559 City Hall Construction Fund 294,400 Stormwater Management Fund 2,240,115 Aquifer Protection Area 2,000,000 Equipment Rental&Replacement(ER&R) 330,000 Risk Management Fund 325,000 Total Other Funds 30,709,392 Total All Funds 70,683,872 43 V) C 0 a▪o a, U p a1 • N a;j a. a. a) co N c U c a a. 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LL n. 7 Cn C) C d CO 0 Cn co V' co O N co O V' h N- h U) 0 N- 0 U) 0 h C, a) CO CD 0 O CO O CD 0 U) M CD N 6) CO N CO a) ) Co CO CC) r CC) CD CO V' N CO U) CO M V O) N G.) F O O CO O N O Cfl O n M CO CD O Cn CD CD N V CD N CO r U) N. CC) V' O O N. CO O N O CO N N CO N M ,- N N V' N N T i- r ,- ,- O a)cn O CO 0- 0 fn C a) E a) o `o > > a) Q 0 aci m m E '0 c o_ C U m m c o c cu 73 E m 2 E a) jj o E c 'O O E > 'C c C co Q o O 0 C 2 U ail CV N 5 06 w o U U c. aU) m m .4 aci m >o c m co a) � o o 'f 0- co) Ot 0 00 (n O j c O > c - c N ' ot$ C c N f0 O a) - rts C) U , O c 7 U c 'O U o 7 co 'O O 0) U a) CV O O w w a °� 0 LL 2 j ca < W 0 00 c < Q < CC 0 a) I- O 0 O O a s a. 0 CITY OF SPOKANE VALLEY,WA 2016 Budget General Fund Department Changes from 2015 to 2016 Difference Between 2015 and 2016 2015 2016 Increase(Decrease) Budget Budget $ % City Council Wages, Payroll Taxes&Benefits 214,379 220,634 6,255 2.92% Supplies 4,550 4,550 0 0.00% Services&Charges 294,185 281,685 (12,500) (4.25%) Total 513,114 506,869 (6,245) (1.22%) City Manager Wages, Payroll Taxes& Benefits 623,173 651,463 28,290 4.54% Supplies 3,350 3,350 0 0.00% Services&Charges 61,840 62,490 650 1.05% Total 688,363 717,303 28,940 4.20% Legal Wages, Payroll Taxes&Benefits 379,917 397,206 17,289 4.55% Supplies 2,540 2,010 (530) (20.87%) Services& Charges 79,382 80,735 1,353 1.70% Total 461,839 479,951 18,112 3.92% Public Safety Non-Departmental (Fines&Forfeits) 733,500 649,500 (84,000) (11.45%) Wages/Payroll Taxes/Benefits 3,800 6,500 2,700 71.05% Supplies 28,000 27,500 (500) (1.79%) Other Services and Charges 492,650 394,750 (97,900) (19.87%) Intergovernmental Services 22,895,542 23,625,499 729,957 3.19% Total 24,153,492 24,703,749 550,257 2.28% Deputy City Manager Wages, Payroll Taxes& Benefits 627,478 660,102 32,624 5.20% Supplies 2,500 2,500 0 0.00% Services&Charges 61,325 74,400 13,075 21.32% Total 691,303 737,002 45,699 6.61% Finance/IT Wages, Payroll Taxes& Benefits 1,172,483 1,222,580 50,097 4.27% Supplies 6,000 6,000 0 0.00% Services&Charges 25,396 24,500 (896) (3.53%) Total 1,203,879 1,253,080 49,201 4.09% Human Resources Wages, Payroll Taxes&Benefits 218,109 230,698 12,589 5.77% Supplies 700 700 0 0.00% Services&Charges 24,508 24,296 (212) (0.87%) Total 243,317 255,694 12,377 5.09% (Continued to next page) 47 CITY OF SPOKANE VALLEY,WA 2016 Budget General Fund Department Changes from 2015 to 2016 Difference Between 2015 and 2016 2015 2016 Increase(Decrease) Budget Budget $ cyo (Continued from previous page) Public Works Wages, Payroll Taxes& Benefits 834,363 876,364 42,001 5.03% Supplies 19,000 18,000 (1,000) (5.26%) Services&Charges 68,551 72,506 3,955 5.77% Total 921,914 966,870 44,956 4.88% Community Dev.-Admin Wages, Payroll Taxes&Benefits 237,394 250,407 13,013 5.48% Supplies 3,100 3,100 0 0.00% Services&Charges 20,600 18,600 (2,000) (9.71%) Total 261,094 272,107 11,013 4.22% Community Dev.-Economic Development Wages, Payroll Taxes&Benefits 274,776 317,257 42,481 15.46% Supplies 1,000 1,100 100 10.00% Services&Charges 22,500 226,800 204,300 908.00% Total 298,276 545,157 246,881 82.77% Community Dev.-Dev. Sery Wages, Payroll Taxes&Benefits 1,122,644 1,173,837 51,193 4.56% Supplies 21,050 21,050 0 0.00% Services& Charges 281,250 271,750 (9,500) (3.38%) Intergovernmental Services 0 20,000 20,000 0.00% Total 1,424,944 1,486,637 61,693 4.33% Community Dev.-Buildinq Wages, Payroll Taxes&Benefits 1,288,902 1,256,565 (32,337) (2.51%) Supplies 28,200 28,200 0 0.00% Services& Charges 63,800 59,400 (4,400) (6.90%) Total 1,380,902 1,344,165 (36,737) (2.66%) Parks&Rec-Admin Wages, Payroll Taxes& Benefits 228,697 246,821 18,124 7.92% Supplies 8,450 5,900 (2,550) (30.18%) Services&Charges _ 34,225 29,150 (5,075) (14.83%) Total 271,372 281,871 10,499 3.87% Parks&Rec-Maintenance Wages, Payroll Taxes& Benefits 0 0 0 0.00% Supplies 20,000 5,500 (14,500) (72.50%) Services&Charges 824,642 832,843 8,201 0.99% Total 844,642 838,343 (6,299) (0.75%) Parks& Rec-Recreation Wages, Payroll Taxes&Benefits 153,924 161,397 7,473 4.85% Supplies 7,750 7,600 (150) (1.94%) Services&Charges 64,500 59,200 (5,300) (8.22%) Total 226,174 228,197 2,023 0.89% (Continued to next page) 48 CITY OF SPOKANE VALLEY,WA 2016 Budget General Fund Department Changes from 2015 to 2016 Difference Between 2015 and 2016 2015 2016 Increase(Decrease) Budget Budget $ % (Continued from previous page) Parks&Rec-Aquatics Wages, Payroll Taxes& Benefits 0 0 0 0.00% Supplies 7,200 14,000 6,800 94.44% Services&Charges 489,000 447,200 (41,800) (8.55%) Total 496,200 461,200 (35,000) (7.05%) Parks&Rec-Senior Center Wages, Payroll Taxes&Benefits 84,285 88,481 4,196 4.98% Supplies 2,500 1,600 (900) (36.00%) Services&Charges 5,200 5,700 500 9.62% Total 91,985 95,781 3,796 4.13% Parks& Rec-CenterPlace Wages, Payroll Taxes& Benefits 435,609 475,925 40,316 9.26% Supplies 66,963 76,024 9,061 13.53% Services&Charges 322,425 330,274 7,849 2.43% Total 824,997 882,223 57,226 6.94% Pavement Preservation Council Designation 920,000 943,800 23,800 2.59% Total 920,000 943,800 23,800 2.59% General Government Wages, Payroll Taxes&Benefits 0 0 0 0.00% Supplies 70,650 87,600 16,950 23.99% Services&Charges 1,315,850 1,099,900 (215,950) (16.41%) Intergovernmental Services 300,500 301,500 1,000 0.33% Capital outlays 46,500 43,000 (3,500) (7.53%) Total 1,733,500 1,532,000 (201,500) (11.62%) Transfers out-#309 park capital proj 0 160,000 160,000 0.00% Transfers out-#310 bond pmt 67,600 72,500 4,900 7.25% Transfers out-#310 city hall o&m costs 271,700 271,700 0 0.00% Transfers out-#502 325,000 325,000 0 0.00% Total recurring expenditures 38,315,607 39,361,199 1,045,592 2.73% Summary by Category Wages, Payroll Taxes& Benefits 7,899,933 8,236,237 336,304 4.26% Supplies 303,503 316,284 12,781 4.21% Services&Charges 4,551,829 4,396,179 (155,650) (3.42%) Pavement Preservation 920,000 943,800 23,800 2.59% Transfers out-#309 parks capital proj 0 160,000 160,000 0.00% Transfers out-#310 bond pmt 67,600 72,500 4,900 7.25% Transfers out-#310 city hall o&M cost 271,700 271,700 0 0.00% Transfers out-#502 325,000 325,000 0 0.00% Non-Departmental (fines&forfeits) 733,500 649,500 (84,000) (11.45%) Intergovernmental Svc(public safety) 22,895,542 23,625,499 729,957 3.19% Intergovernmental Svc 300,500 321,500 21,000 6.99% Capital outlay 46,500 43,000 (3,500) (7.53%) 38,315,607 39,361,199 1,045,592 2.73% 49 Fund:001 General Fund Spokane Valley Dept: 011 Legislative Branch 2016 Budget This department accounts for the cost of providing effective elected representation of the citizenry in the governing body. The Council makes policy decisions for the City and is accountable to Spokane Valley citizens by making decisions regarding how resources are allocated,the appropriate levels of service,and establishing goals and policies for the organization. Accomplishments for 2015 •Pursued a legislative capital budget request for the Appleway Trail Project,parkland acquisition and the Barker Road grade separation. Appleway Trail:Based on Council approval of the use of City funds,construction on the portion of the trail between University and Pines Road was completed.This included a plaza at University Road,trees,irrigation lines and trail lighting.At the legislative level,the City was awarded$1.8 million for future construction of the trail project. Barker Road Overpass:The City was successful at including the Barker Road overpass in the draft version of the Transportation package,but unfortunately it was not included in the final version adopted by the Legislature.Staff worked to prepare and submit a$21M TIGER VII grant application for the Barker Road Grade Separation. •Continued to expand where possible,an economic development plan,including review and evaluation of Spokane Valley's development regulations and how they compare with other jurisdictions;and completed plans for a new city hall. Staff completed the review and evaluation of development regulations and brought forth multiple code amendments for Council approval.Land was purchased and American West Architects were hired to begin plans for the new city hall. Staff also developed a budget and provided options for the funding of a new city hall. •Focus on sustainability of Street Preservation program beyond 2016. The Street Preservation program is sustainable through 2020.Over the past year,staff has been looking at ways to further sustain financially the current pavement preservation program.Staff has applied for and received grant funds equating to approximately$1.2M per the years 2017-2019 through the Surface Transportation Program grants. •Evaluate law enforcement needs based on calls for service,crime rates,business and population growth and other supporting data. A staffing analysis was completed that resulted in the addition of two patrol officers.A Power Shift was created as well so staffing levels could be matched to peak call load times of day.Supported funding for the new CAD/RMS system including the support of a Crime Analyst Position.This position will serve to pull crime information from the CAD/RMS system and various report sources to inform officers and point out trends to better utilize resources. •Worked toward completion of the Comprehensive Plan Review. Goals for 2016 •Continue to work with state and federal legislators for possible financial assistance for the Barker Road Bridge Grade Separation. •Develop a strategic plan for funding and completion of all grade separation projects. •Continue and expand,where possible,economic development efforts,including construction of the new City Hall.Complete retail and tourism studies,develop and implement strategies. •Pursue a sustainability plan in connection with the City's Street Preservation program,to include sustained funding in the City's Street Fund#311 to address concerns beyond the year 2020. •Evaluate and discuss increasing costs to public safety,including law enforcement.Seek long-term solutions to keeping costs in check while better serving the community. •Work toward completion of the Comprehensive Plan update. 50 Fund:001 General Fund Spokane Valley Dept: 011 Legislative Branch 2016 Budget Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Mayor 1.0 1.0 1.0 1.0 1.0 Council 6.0 6.0 6.0 6.0 6.0 Total FTEs 7.0 7.0 7.0 7.0 7.0 Budget Detail Wages,Payroll Taxes&Benefits $ 165,571 $ 174,891 $ 191,856 $ 214,379 $ 220,634 Supplies 3,605 3,577 2,379 4,550 4,550 Services&Charges 171,819 161,333 211,573 294,185 281,685 Total Legislative Branch $ 340,995 $ 339,801 $ 405,808 $ 513,114 $ 506,869 51 Fund:001 General Fund Spokane Valley Dept:013 Executive Branch 2016 Budget 013-City Manager This department is accountable to the City Council for the operational results of the organization,effective support of elected officials in achieving their goals;fulfillment of the statutory requirements of the City Manager,implementation of City Council policies,and provision of a communication linkage between citizens,the City Council,City departments, and other government agencies. Accomplishments for 2015 • In addition to supporting the 2015 Council Goals as referenced under the Legislative Budget: • Meetings were held with Federal and State Representatives on behalf of the interests of our City. The Council,City Manager&City Attorney participated in over 15 meetings with state and federal representatives in the first 6-months of 2015.These meetings were held locally,in Olympia and two separate trips to WA D.C. were made by the City Manager&one Council Member.Legislature relating to the Barker Road overpass/ underpass;marijuana consumption in public places;lien authority;and liquor revenues were topics of discussion. • Continued further efforts in promotion of the City,including the contract development for tourism promotion, a strategic economic development plan and the recruitment of an Economic Development Specialist to our City. • Presented Council with a balanced 2016 Budget. • Provided leadership support for strengthening and promoting Spokane Valley's core values and fiscal policies. Goals for 2016 In addition to the support of the 2016 Council Goals as referenced under the Legislative Budget: • Present Council with a balanced 2017 Budget. • Work with Federal and State Lobbyists on behalf of the interests of our City. • Prepare Legislative Agenda for Council consideration. • Strengthen economic development. 015-Legal Accomplishments for 2015 • Worked with Council and staff on seeking passage of changes to state law on code compliance lien authority and marijuana regulatory reform including traveling to Olympia to testify before the Senate. • Provided legal support in identifying long-term land use priorities and options for framing policy decisions,advising Council on local and procedural issues related to adoption of 2015 Comprehensive Plan Update. • Provided advice regarding distribution of 2014 lodging tax allocations;advised and worked with staff,LTAC and City Council in drafting and passage of Ordinance 15-008 imposing additional 1.3%lodging tax. • Drafted Ordinance 15-012 reducing gambling tax on social card playing. • Drafted/assisted with adoption of indigent defense standards to comply with state laws. • Participated with Council and outside counsel for preparation and passage of mining moratorium to preserve the status quo while the City develops policy decisions for locating mining operations within the City. • Participation on the Spokane Regional Law&Justice Council and the Strategic Planning Committee. Goals for 2016 • Advise Council and staff in furtherance of goal to develop and adopt the Comprehensive Plan Update. • Have a fully-operational office that proactively assists in program development,advises all departments on legal issues in a timely manner and manages all potential and existing litigation. • Work with Community and Economic Development and Finance in identifying and implementing economic development options. • Assist other departments in analyzing and mapping existing processes to determine compliance with laws and whether higher levels of customer service can be achieved. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents City Manager 1.0 1.0 1.0 1.0 1.0 City Attorney 1.0 1.0 1.0 1.0 1.0 City Clerk 1.0 1.0 1.0 1.0 1.0 Deputy City Attomey 1.0 1.0 1.0 1.0 1.0 Deputy City Clerk 1.0 1.0 1.0 1.0 1.0 Administrative Assistant-Legal 1.0 1.0 1.0 1.0 1.0 Administrative Assistant(CC) 1.0 1.0 1.0 1.0 1.0 Executive Assistant(CM) 1.0 1.0 1.0 1.0 1.0 Total FTEs 8.0 8.0 8.0 8.0 8.0 Interns 3.5 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 847,380 $ 922,074 $ 953,434 $ 1,003,090 $ 1,048,669 Supplies 4,501 1,811 2,787 5,890 5,360 Services&Charges 174,453 159,747 126,171 141,222 143,225 Nonrecurring expenses 0 0 0 3,000 0 Total Executive&Legislative Support $ 1,026,334 $ 1,083,632 5 1,082,392 $ 1,153,202 $ 1.197,254 52 Fund: 001 General Fund Spokane Valley Dept: 016 Public Safety 2016 Budget The Public Safety department budget provides funds for the protection of persons and property in the city. The City contracts with Spokane County for law enforcement, district court, prosecutor services, public defender services, probation services,jail and animal control services. See following page for detail information on each budgeted section. Judicial System-The Spokane County District Court is contracted $ 2,225,352 to provide municipal court services. The contract provides for the services of judge and court commissioner with related support staff. Budgeted amount also includes jury management fees. Law Enforcement- The Spokane County Sheriffs Office is $ 20,212,709 responsible for maintaining law and order and providing police services to the community under the direction of the Police Chief. The office provides for the preservation of life, protection of property, and reduction of crime. Jail System-Spokane County provides jail and probation $ 1,301,055 services for persons sentenced by any City of Spokane Valley Municipal Court Judge for violating laws of the city or state. Animal Control-Spokane County will provide animal control $ 295,133 services to include licensing, care and treatment of lost or stray animals, and response to potentially dangerous animal confrontations. Non-Departmental Fines and forfeitures to the State of Washington $ 649,500 Grant expenditures 20,000 Construct offices for unit supervisors- Nonrecurring 0 Capital outlay-CAD/RMS-Nonrecurring 0 Total $ 24,703,749 53 City of Spokane Valley 2016 Budget 016-Public Safety 2012 2013 2014 2015 2016 Actual Actual _ Actual Budget Budget Judicial System: District Court Contract $ 792,455 $ 868,861 $ 820,628 $ 902,201 $ 822,076 Public Defender Contract 769,295 617,999 649,831 813,554 832,182 Prosecutor Contract 421,087 406,875 410,196 420,151 448,722 Pretrial Services Contract 102,300 108,655 117,048 117,738 122,372 Subtotal Judicial System 2,085,137 2,002,390 1,997,703 2,253,644 2,225,352 Law Enforcement System: Sheriff Contract 16,853,600 17,701,607 17,731,187 18,896,608 19,713,401 Emergency Management Contract 80,877 80,428 82,237 84,892 90,558 Wages,Payroll Taxes&Benefits 2,389 3,642 6,506 3,800 6,500 Operating Supplies 6,497 3,980 3,388 5,000 4,000 Repair&Maintenance.Supplies 693 2,343 3,343 3,000 3,500 Janitorial Supplies 1,062 0 0 0 0 Electricity/Gas 21,603 21,865 20,887 25,000 22,000 Water 1,385 1,210 1,497 1,500 1,600 Sewer 849 851 850 900 900 Waste Disposal 3,504 3,460 3,462 3,500 3,500 Law Enf.Bldg Maintenance Contract 59,194 80,283 58,331 55,000 60,000 Taxes and Assessments 358 715 715 750 750 Miscellaneous Srvs/Contingency 0 0 250 350,000 250,000 Crywolf Charges&Fees 45,568 44,412 48,348 50,000 50,000 Sterling Bank Fees 5,057 5,111 5,726 5,500 6,000 Crywolf Refunds 0 0 0 500 0 Subtotal Law Enforcement System: 17,082,636 17,949,907 17,966,727 19,485,950 20,212,709 Jail System: Jail Contract 976,681 713,292 996,557 1,368,475 1,301,055 Work Release(Geiger) 429,420 508,704 151,158 0 0 Subtotal Jail System: 1,406,101 1,221,996 1,147,715 1,368,475 1,301,055 Other: Capital Outlays/Communications 206,445 0 0 0 0 Fines&Forfeitures State Remittance 682,014 664,681 637,014 733,500 649,500 Animal Control Contract 284,926 295,556 287,081 291,923 295,133 Non-Capital Equipment for JAG Grant 16,253 3,272 0 20,000 20,000 Non-Capital Equip for ARRA JAG Grant 26,099 203 0 0 0 Settle&Adjust 0 118,273 0 0 0 Non-Capital Equipment for 2011 JAG Grant 0 9,297 8,010 0 0 Non-Capital Equipment for 2012 JAG Grant 0 23,978 0 0 0 Non-Capital Equipment for 2013 JAG Grant 0 0 20,495 0 0 Non-Capital Equipment for WASPC Grant 0 4,771 6,020 0 0 ARRA JAG-Wireless Cards 488 0 0 0 0 2009 JAG-Wireless Cards 6,336 0 0 0 0 JAG-Wireless Cards 3,213 10,119 3,979 0 0 SVPD Wireless Cards 0 0 434 0 0 Building Replacement Costs 80,000 0 0 0 0 Nighttime Seatbelt Patrol Overtime 1,783 1,611 1,647 0 0 Maintenance 0 0 7,468 25,000 0 Drive Hammered-Get Nailed Grant 5,876 10,811 19,802 0 0 Building Repair&Maintenance 0 0 7,679 0 0 Office Furniture&Equipment 0 0 14,480 0 0 Stickman Knows 3,992 0 0 0 0 Capital outlay-CAD/RMS 0 0 0 309,700 140,281 Nonrecurring gate motor 0 0 0 4,300 0 Nonrecurring radar recorder 0 0 0 4,600 0 Subtotal Other: 1,317,425 1,142,572 1,014,109 1,389,023 1,104,914 Total Public Safety $21,891,299 $22,316,865 $22,126,254 $24,497,092 $ 24,844,030 54 0 L tea') (6 U L Tu c .E U E Q ti (o L O 0 ca O) a) a: m (o co Os O c N +L+ o W C O •, 3Ts0 cow N J CD s- = teU a+ N +r co. N E (o L L: W0.- Q as Q Q. Ego U Tv W W 2 cu v a(a L U (L6 4+ Lo in Q.U U CO {- 'r! L O C) L ` / '^ /1 W - VJ U 'a M= ( �O U W Y 7 (13 U CC a) , U O p ° U N 0- - - L a) Iu U O d OU I ' U mL•c o uo U 0 0 0 CD 0 0 0 0 0 0 E» o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o ui o LI) N CN r r Ea ER 69. Eft Ef} Fund:001 General Fund Spokane Valley Dept: 018 Operation&Administrative Services 2016 Budget The Operations&Administrative Services Department is composed of three divisions,the Deputy City Manager Division, the Finance Division,and the Human Resources Division. 013-Deputy City Manager Division The Deputy City Manager(DCM)supervises the Operations&Administrative Services Department,assists the City Manager in organizing and directing the other operations of the City,and assumes the duties of City Manager in his/her absence. Accomplishments for 2015 •Following the 2014 addition of two police officers to the Spokane Valley police department and the 2015 implementation of the Power Shift we have begun to evaluate: -Response times for specific priority calls compared in days with the power shift implemented to non-power shift days. -Percentage of deputy initiated incidents including the development of trendline comparisons between power shift and non-power shift areas. -Percentage of property crime cases solved compared to unincorporated areas where changes have not taken place. •Continued development and implementation of comprehensive Solid Waste public information outreach efforts that informed and familiarized citizens with new system,and that met public information goals in the Solid Waste Management Plan. •Continued public information support that informed and involved the community for Sullivan Road Bridge project and Appleway Trail project. •Launched limited social media outreach for Snowlnfo and Traffic Alerts. •Refined the plan to finance the design and construction of a new City Hall building which will include a combination of cash on hand and the 2016 issuance of limited tax general obligation bonds. Goals for 2016 •Continue to identify,implement and evaluate performance measure to assess the effectiveness of changes driven by a law enforcement staffing analysis which resulted in the addition of two police officers in 2014 and the implementation of the power shift. •Enhance community interest and involvement in City government. •Formalize public accountability in City operations through incorporating the Business Plan into decision making and establishing a toolbox for evaluating the City's contract services. •In conjunction with the City's Finance and Legal departments,work with a financial advisor and bond underwriter towards the early 2016 issuance of limited tax general obligation(LTGO)bonds,the proceeds of which will be used towards the construction of a new City Hall building. •Coordinate the efforts of the City Hall construction team. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Deputy City Manager 1.0 1.0 1.0 1.0 1.0 Senior Administrative Analyst 1.0 1.0 1.0 1.0 1.0 Public Information Officer 1.0 1.0 1.0 1.0 1.0 Administrative Analyst 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 2.0 0.0 0.0 0.0 0.0 Office Assistant II 1.0 1.0 1.0 1.0 1.0 Office Assistant I 1.0 1.0 1.0 1.0 1.0 Total FTEs 8.0 6.0 6.0 6.0 6.0 Intern 1.0 1.0 1.0 1.0 1.0 Budget Detail Wages,Payroll Taxes&Benefits $ 404,685 $ 402,012 $ 496,278 $ 627,478 $ 660,102 Supplies 1,728 1,153 2,519 2,500 2,500 Services&Charges 23,650 56,162 36,663 61,325 74,400 Total Deputy City Manager Division $ 430,063 $ 459,327 $ 535,460 $ 691,303 $ 737,002 56 Fund:001 General Fund Spokane Valley Dept: 018 Operation&Administrative Services 2016 Budget 014-Finance Division The Finance Division provides financial management services for all City departments. Programs include accounting and financial reporting,payroll,accounts payable,purchasing,budgeting and financial planning,treasury,information technology and investments. The division is also responsible for generating and analyzing financial data related to the City's operations. The department prepares Finance Activity Reports for review by the City Manager and City Council as well as the Comprehensive Annual Financial Report (CAFR)that is subject to an annual audit conducted by the Washington State Auditor's Office. Accomplishments for 2015 •Implemented State Auditor recommendations. •Improved financial statement preparation process and accuracy. •Completed the 2014 CAFR by May 30,2015. •Acquired 1-Ford Escape for use by the Community Development Department that replaces a 2003 Chevy S10 pickup. •Continued the process of virtualizing servers. •Replaced approximately 30 desktop computers that were at the end of their life cycle. •Replaced copiers for the Finance and Public Works Departments that were at the end of their life cycle. •Completed phases 1 and 2 of a network switch replacement project. Goals for 2016 •Implement 2014 audit recommendations a Work towards continued improvement and accuracy in the financial statement preparation process. a Complete the 2015 CAFR by May 30,2016,and receive a"clean audit opinion". •Maintain consistent levels of service in payroll,accounts payable,budget development,periodic financial report preparation and information technology services. •Continue with the process of virtualizing servers using VMware. •Continue with the ongoing process of refining the replacement program for IT hardware resources. •Complete the third and final phase of a network switch replacement project. •In conjunction with the City's Deputy City Manager and Legal departments,work with a financial advisor and bond underwriter towards the issuance of limited tax general obligation(LTGO)bonds,the proceeds of which will be used towards the construction of a new City Hall building. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Finance Director 1.00 1.00 1.00 1.00 1.00 Accounting Manager 1.00 1.00 1.00 1.00 1.00 Accountant/Budget Analyst 3.00 3.75 3.75 3.75 3.75 Accounting Technician 2.00 2.00 2.00 2.00 2.00 IT Specialist 3.00 2.00 2.00 2.00 2.00 GIS/Database Administrator 1.00 1.00 1.00 1.00 1.00 Help Desk Technician 0.00 0.00 1.00 1.00 1.00 Total FTEs 11.00 10.75 11.75 11.75 11.75 Intern 1.0 0.0 0.0 0.0 0.0 Budget Detail Wages,Payroll Taxes&Benefits $ 895,125 $ 1,008,218 $ 1,057,271 $ 1,172,483 $ 1,222,580 Supplies 7,026 2,791 4,946 6,000 6,000 Services&Charges 18,664 21,218 36,520 25,396 24,500 Total Finance Division $ 920,815 $ 1,032,227 $ 1,098,737 $ 1,203,879 $ 1,253,080 57 Fund:001 General Fund Spokane Valley Dept: 018 Operation&Administrative Services 2016 Budget 016-Human Resources Division Human Resources(HR)is administered through the City Manager. The HR operation provides services in compensation, benefits,training and organizational development,staffing,employee relations,and communications.The Human Resources Office also provides Risk Management services as well as Website and Mobile App design and maintenance Accomplishments for 2015 • Bargained a successor labor relations contract with represented employee of the City. •Achievement of the 2014 WellCity Award presented by the Association of Washington Cities. •Supported the economic development goals of the City through website and mobile app management. •Deployed a redesigned City Website that supports the strategic goals of the City. Goals for 2016 • Implement changes consistent with the successor labor agreement. •Continue to build the foundation for a lasting Wellness Program through management support and employee involvement. • Redesign the City's Mobile App to be consistent with the City's website. •Meet the required Hazardous Materials idenfication consistent with the Globalized Harmonized System. •Continue to provide guidance to City officials through the implementation of the Affordable Care Act. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Human Resource Manager 1.0 1.0 1.0 1.0 1.0 Human Resources Technician 1.0 1.0 1.0 1.0 1.0 Total FTEs 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 187,339 $ 197,822 $ 208,063 $ 218,109 $ 230,698 Supplies 461 640 679 700 700 Services&Charges 24,278 13,645 20,941 24,508 24,296 Total Human Resources Division $ 212,078 $ 212,107 $ 229,683 $ 243,317 $ 255,694 58 Fund:001 General Fund Spokane Valley Dept:032 Public Works 2016 Budget The Public Works Department oversees the City's transportation system,which includes construction and maintenance of streets and stormwater systems,operations and maintenance of traffic signs and signals and transportation planning. Accomplishments for 2015 • Worked on the design phase of ninteen projects and the construction phase of eleven projects. • Developed the 2016-2021 Six Year Transportation Improvement Program. • Submitted twelve grant applications for various capital projects;received$3.5 million as of July 2015. • Completed the biannual update to the Pavement Management Plan. • Completed six Street Preservation Projects as a cost of$2.6 million. Goals for 2016 • Implement approved capital projects. • Provide planning for development of the updated Transportation Improvement Plan. • Prepare and submit grant applications for capital projects. • Complete 2016 Pavement Preservation Projects as approved. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Public Works Director 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 2.0 2.0 2.0 2.0 2.0 Assistant Engineer(CIP) 1.0 1.0 1.0 1.0 1.0 (1) Engineering Technician I 1.0 2.0 2.0 2.0 2.0 (1) Engineering Technician II 2.0 1.0 1.0 1.0 1.0 (1) Limited Term Cnstrctn Inspector-Bridge 0.0 0.5 0.5 0.5 0.5 (2) Maint./Construction Inspector(ROW) 1.0 0.0 0.0 0.0 0.0 Senior Engineer 2.0 2.0 1.0 1.0 1.0 Senior Engineer-Proj Mgmt 1.0 1.0 2.0 2.0 2.0 (1) Planning Grants Engineer 0.0 0.0 0.375 0.375 0.375 (3) Total FTEs 11.0 10.5 10.875 10.875 10.875 Budget Detail Wages,Payroll Taxes&Benefits $ 516,757 $ 557,708 $ 647,097 $ 834,363 $ 876,364 Supplies 15,882 12,975 10,481 19,000 18,000 Services&Charges 104,612 88,004 51,768 68,551 72,506 Capital Outlay 69,344 0 0 0 0 Nonrecurring expenses 0 0 9,540 0 0 Total Public Works $ 706,595 $ 658,687 $ 718,886 $ 921,914 $ 966,870 (1) Only 50%is budgeted to the public works department in the General Fund with the balance budgeted as a part of capital projects funds. (2) This position is budgeted 50%as a part of capital projects funds and 50%street fund. (3) This position is budgeted 37.5%to public works,37.5%to street fund,and 25%to stormwater fund. 59 Fund:001 General Fund Spokane Valley Community&Economic Development Dept:050 Administrative Division 2016 Budget The Administrative Division provides overall management and oversight of the Community Development Department including the permitting operation,long-range planning,development engineering,and code compliance and provides staff support through administration of the department's budget,provides administrative support and department training. Accomplishments for 2015 • Assisted with the City's economic development plan. • Continued to implement a document control system for documents and forms. • Assisted in City's Marketing Plan. • Assisted in City Hall project. Goals for 2016 • Continue to assist with the City's economic development plan. • Continue to implement a document control system for documents and forms. • Assist in City's Marketing Plan • Assist in City Hall project Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual _ Budget Budget Personnel-FTE Equivalents Community Development Director 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 1.0 1.0 1.0 1.0 1.0 Office Assistant I 1.0 0.0 0.0 0.0 0.0 Total FTEs 3.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 269,228 $ 215,537 $ 227,397 $ 237,394 $ 250,407 Supplies 3,854 2,399 3,582 3,100 3,100 Services&Charges 34,934 6,949 12,022 20,600 18,600 Intergovernmental Payments 0 0 0 0 0 Nonrecurring Professional Services 0 0 32,410 250,000 350,000_ Total Administrative Division $ 308,016 $ 224,885 $ 275,410 $ 511,094 $ 622,107 • 60 Fund:001 General Fund Spokane Valley Community&Economic Development Dept:051 Economic Development Division 2016 Budget The Economic Development Division will work closely with the City Manager to pursue economic development strategies which attract and retain businesses within the City. Staff develop collaborative relationships with businesses and economic development partners,use technology to support ED programs,building marketing plans,pursue infrastructure improvements and promote the City to businesses and visitors. Accomplishments for 2015 • Continued to collaborate with economic development partners. • Analyzed the fiscal and economic impacts of recruiting. • Facilitated a workshop with brokers and property owners to develop understanding of the City's retail market. • Analyzed incentives in WA State and developed a draft economic development tool box. • Analyzed targeted infrastructure investments to support higher level of development intensities. • Analyzed the economic benefits of the Appleway Trail. • Collaborated on a marketing plan. • Researched/analyzed the benefits of a newa GIS system. Goals for 2016 • Develop an economic development strategic plan. • Develop a retail recruitment strategy. • Continue to collaborate with economic development partners. • Develop GIS system to promote economic development applications. • Develop tools and programs to support small business retention and expansion. • Pursue infrastructure improvements to foster economic development. • Develop a RFQ to hire a consultant to develop marketing plan. • Research Community Development Block Grant(CDBG)program opportunities. • Develop a historic preservation program. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Engineer 0.0 0.0 0.0 0.5 0.65 Senior Planner-CD 0.0 0.0 0.0 1.0 1.0 E.D.Project Specialist 0.0 0.0 0.0 1.0 1.0 Total FTEs 0.0 0.0 0.0 2.5 2.65 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 274,776 $ 317,257 Supplies 0 0 0 1,000 1,100 Services&Charges 0 0 0 22,500 226,800 Intergovernmental Payments 0 0 0 0 0 Total Administrative Division $ 0 $ 0 $ 0 $ 298,276 $ 545,157 61 Fund:001 General Fund Spokane Valley Community&Economic Development Dept:055/056 Development Services Division 2016 Budget The Development Services Division is new to the City as of 2015 and reflects the consolidation of the Engineering and Planning Divisions of the Community and Economic Development Department. The Development Services Division is responsible for providing professional policy guidance to the City Council and Planning Commission on such issues as land use,access management,shoreline Management Act,annexation,growth targets,water quality, public works issues and and more. Staff is responsible for processing land use and home business permits,reviewing environmentally sensitive areas,for the review and inspection of stormwater management in private development,reviewing access management and other public works improvements in private development applications, administering the State Environmental Protection Act. Accomplishments for 2015 • Completed the Shoreline Master Program Update. • Continued work on Floodplain Revisions. • Began state required update of Comprehensive Plan. • Continued work on permit process and customer service improvement plan. • CDBG projects. • Processed 2015 Annual Comprehensive Plan Amendments. • Developed a historic preservation program. Goals for 2016 • Continue worked on Regional Low Impact Development Standards. • Work on Floodplain Revisions. • Audit development regulations to implement the updated Comprehensive Plan. • Continue work on the City's Certified Sites Program. • Complete required update of Comprehensive Plan. • Continue work on permit process and customer service improvement plan. • Developers Forums. • 2016 Annual Comprehensive Plan amendments. • CBDG-Identify Sidewalk projects. • Review of Municipal Code for updates. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Development Services Manager 0.0 0.0 0.0 1.0 1.0 Engineer 1.5 1.5 1.5 2.0 2.0 Assistant Engineer 0.0 1.0 1.0 1.0 1.0 Senior Planner 0.0 0.0 0.0 1.0 1.0 Planner 0.0 0.0 0.0 2.0 2.0 Maint/Construction Inspector 1.0 2.0 1.0 1.0 1.0 Code Enforcement Officer 0.0 0.0 0.0 1.0 1.0 ROW Inspector 0.0 0.0 1.0 1.0 1.0 Office Assistant 1.0 1.0 1.0 1.0 1.0 Senior Engineer 1.0 1.0 1.0 0.0 0.0 Engineering Technician 1.5 1.5 0.5 0.0 0.0 Total FTEs 3.5 5.50 5.50 11.00 11.00 Budget Detail Wages,Payroll Taxes&Benefits $ 1,265,079 $ 1,488,269 $ 1,278,597 $ 1,122,644 $ 1,173,837 Supplies 7,139 15,830 7,862 21,050 21,050 Services&Charges 256,321 246,181 257,861 281,250 271,750 Intergovernmental Payments 7,764_ 8,287 0 0 20,000 Total Engineering Division $ 1,536,303 $ 1,758,567 $ 1,544,319 $ 1,424,944 $ 1,486,637 62 Fund:001 General Fund Spokane Valley Community&Economic Development Dept:057 Building Division 2016 Budget The Building Division implements the Washington State Building Code. This Division is responsible for ensuring that buildings and structures comply with adopted building codes through technical plan review and inspection services. The Permit Center receives applications and coordinates the review and processing of permits. Code compliance staff enforce zoning and building regulations on a complaint-driven basis. ROW inspection program provides inspection services to assure the compliance with the RPCP and the durability and safety of work done in the public ROW. Accomplishments for 2015 • Implemended residential building review at the Permit Center Counter. • Continued work on permit process and customer service improvement plan. • Completed Regional Hazard Mitigation Plan. • Maintained partnering efforts with Spokane and Spokane County. • Completed web-access reports for the permit system. Goals for 2016 • Continue work on permit process and customer service improvement plan. • Implement performance measures. • Coordinate on central reporting function in SMARTGov. • Continue work on improving residential building review at the Permit Center Counter. • Develop technical bulletins and handouts for public assistance. • Maintain partnering efforts with Spokane and Spokane County. • Continue to expand on-line permit system. • Continue coordinate on Regional Hazard Mitigation Plan. • Continue to develop reports for web-access permitting system. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Building Official 1.0 1.0 1.0 1.0 1.0 Building Inspector ll 3.0 3.0 3.0 3.0 3.0 Planner 0.0 0.0 2.0 2.0 2.0 Development Service Coordinator 0.0 1.0 1.0 1.0 1.0 Engineering Tech 0.0 0.0 1.0 1.0 1.0 Office Assistant I 1.0 1.0 1.0 2.0 2.0 Permit Facilitator 2.0 2.0 2.0 2.0 2.0 Plans Examiner 0.75 0.5 0.5 1.0 1.0 Senior Plans Examiner 1.0 1.0 1.0 1.0 1.0 Assistant Planner 0.0 2.0 0.0 0.0 0.0 Code Enforcement Officer BP 2.0 0.0 0.0 0.0 0.0 Construction Inspector 0.0 0.0 0.0 0.0 0.0 Maint/Const Inspector(ROW) 1.0 0.0 0.0 0.0 0.0 Senior Permit Specialist 1.0 0.0 0.0 0.0 0.0 Total FTEs 12.75 11.50 12.50 14.00 14.00 Budget Detail Wages,Payroll Taxes&Benefits $ 1,021,199 $ 932,662 $ 1,098,561 $ 1,288,902 $ 1,256,565 Supplies 21,645 20,139 14,196 28,200 28,200 Services&Charges 141,865 55,969 65,458 63,800 59,400 Intergovernmental Payments 0 0 0 0 0 Capital Outlays 35,663 0 0 0 0 Interfund Charges 3,668 0 0 0 0 Total Building Division $ 1,224,040 $ 1,008,770 $ 1,178,215 $ 1,380,902 $ 1,344,165 63 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2016 Budget The Parks and Recreation Department is composed of six divisions including Administration,Maintenance, Recreation,Aquatics,Senior Center,and CenterPlace. The overall goal of the department is to provide quality recreation programs and acquisition, renovation,development,operation and maintenance of parks and maintenance of parks and recreation facilities. 000-Parks Administration Division The Administration Division provides direction and leadership for the Parks and Recreation Department in implementing the goals and objectives of the City Council and facilitates the general upkeep of parks and public areas of the City. Accomplishments for 2015 • Constructed seven new sand volleyball courts at Browns Park. • Installed three new park signs. • Installed new Hoopfest basketball court at Browns Park working with an Eagle Scout. • Completed Phase 1 of Pocket Dog Park at Valley Mission Park. • Completed construction of a new picnic shelter at Edgecliff Park. • Assumed maintenance responsibility for Appleway Trail from University to Pines. Goals for 2016 • Construct new splashpad at Browns Park. • Complete construction of Phase 2 of the Pocket Dog Park at Valley Mission Park. • Install new park signs. • Pursue land acquisitions for priority facilities such as disc golf,skateboard park,etc. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Parks&Recreation Director 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 1.0 1.0 1.0 1.0 1.0 Total FTEs 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 204,362 $ 212,067 $ 224,275 $ 228,697 $ 246,821 Supplies 17,641 33,927 2,493 8,450 5,900 Services&Charges 775,139 852,875 28,366 23,225 29,150 Intergovernmental Services 12,550 0 0 11,000 0 Interfund Transfer 0 0 0 0 0 Capital Outlays 6,545 0 0 0 0 Nonrecurring Expenses 0 0 11,192 61,400 15,000 Total Parks Administration $ 1,016,237 $ 1,098,869 $ 266,326 $ 332,772 $ 296,871 64 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2016 Budget 300-Maintenance Division The Parks Maintenance Division is responsible for the contracted maintenance and upkeep of our parks and public areas including the Centennial Trail. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Budget Detail Supplies $ 12,133 $ 27,500 $ 2,903 $ 20,000 $ 5,500 Services&Charges 738,636 761,500 791,348 824,642 832,843 Total Parks Maintenance $ 750,769 $ 789,000 $ 794,251 $ 844,642 $ 838,343 65 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2016 Budget 301 -Recreation Division The Recreation Division coordinates and facilitates the delivery of recreation programs and service throughout the City and the City's Park system. Accomplishments for 2015 • Secured two Summer Outdoor Movie Sponsorships for$1,000 each. • Partnered with Spokane Valley Rotary for Breakfast with Santa&Liberty Lake Kwanis for Father Daughter Dance. These successful community partnerships have resulted in monitary donations for programs and scholarships. • Provided a Winter Break Day Camp at CenterPlace. • Produced an Aquatics Brochure and Ads/Flyers for Recreation Activities and events using Adobe Creative Suite. Goals for 2016 • Continue to provide quality recreation programs for the Spokane Valley Community. • Design Recreation Brochure in house utilizing Adobe Creative Suite software. • Actively look for sponsorship opportunities within the Community in regards to the Summer Outdoor Movies. • Continue to foster relationships with community partners. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Recreation Coordinator 1.0 1.0 1.0 1.0 1.0 Budget Detail Wages,Payroll Taxes&Benefits $ 131,218 $ 151,084 $ 142,074 $ 153,924 $ 161,397 Supplies 4,220 5,760 6,740 7,750 7,600 Services&Charges 72,578 54,381 50,350 64,500 59,200 Interfund Charges 0 0 0 0 0 Total Recreation Division $ 208,016 $ 211,225 $ 199,164 $ 226,174 $ 228,197 66 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2016 Budget 302-Aquatics Division The City of Spokane Valley owns three pools: Park Road Pool,Terrace View Pool,and Valley Mission Pool. Services include open swim,swim lessons,swim team and facility rentals. In addition, the City leases a portion of Valley Mission Park to Splashdown Inc.for a water park. The City currently is contracting with the YMCA for all aquatic activities within the City. The YMCA provides the lifeguards and maintains the pools during the season. Accomplishments for 2015 • Completed the painting of the Valley Mission Pool tank and replaced the swimming grates. • Held a FREE Open Swim event on the first day pools were open to increase awareness&promote the pools. • Extended the Noon Water Exercise program at Terrace View Pool to Monday-Friday. • Extended the swim season at Park Road Pool to allow for more open swim and swim lesson revenue. Goals for 2016 • Maintain full summer swimming program. • Research and re-evaluate our pool rental pricing structure. • Install pool stairs at Valley Mission Pool. • Research marketing opportunities to more effectively promote the outdoor pools. • Update cash register systems at all three pools. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Budget Detail Supplies $ 5,053 $ 9,081 $ 424 $ 7,200 $ 14,000 Services&Charges 434,242 469,765 436,604 489,000 447,200 Intergovernmental Services 0 0 0 0 0 Total Aquatics Division $ 439,295 $ 478,846 $ 437,028 $ 496,200 $ 461,200 67 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2016 Budget 304-Senior Center Division The City of Spokane Valley Parks and Recreation Department assumed operational control of the Valley Senior Center in 2003. Accomplishments for 2015 • Updated and added to list of resources and referrals for senior services in the community. • Worked with the Senior Association Board of Directors to ensure all activities have adequate insurance coverage. • Hosted Senior Resource Fair with 40 venors and over 350 attendees. • Provided free shingle shots for people 60+working with Walgreens on a state grant. Goals for 2016 • Offer more Tuesday evening classes in the Senior Wing of CenterPlace. • Continue relationship with YMCA to offer reduced daily rates for senior center members. • Develop and foster relationship with Walgreens to bring phamacy students to counsel seniors on medications,provide blood pressure checks and offering flu shots. • Research and develop class for seniors needing help with IT issues. • Work closely with the Parks&Recreation Director on programs being offered to seniors. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Senior Center Specialist 1.0 1.0 1.0 1.0 1.0 Total FTEs 1.0 1.0 1.0 1.0 1.0 Intern 1.0 1.0 1.0 0.0 0.0 Budget Detail Wages,Payroll Taxes&Benefits $ 78,209 $ 77,018 $ 79,872 $ 84,285 $ 88,481 Supplies 2,855 2,157 1,460 2,500 1,600 Services&Charges 5,133 1,897 2,514 5,200 5,700 Capital Outlay 0 0 0 _ 0 0 Total Senior Center Division $ 86,197 $ 81,072 $ 83,846 $ 91,985 $ 95,781 68 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2016 Budget 305-CenterPlace Division Construction of Mirabeau Point CenterPlace began in late 2003,and was completed mid-year 2005.The project represented the culmination of eight years of planning and fundraising by Mirabeau Point Inc.and the joint involvement of the City and Spokane County. The approximately 54,000 square foot facility houses the City of Spokane Valley Senior Center,a great room/banquet facility,numerous meeting rooms,multi-purpose rooms and high tech lecture hall. The facility combines with Mirabeau Meadows Parks and Mirabeau Springs to form a regional focal point for northeast Washington and Northern Idaho. Accomplishments for 2015 • New flooring and carpet installed in the Lounge. • Updated memorandums of understanding with Meals on Wheels and the Senior Association. • Repaired the roof leaks. • Hosted 10th Anniversary Celebration event. • Partnered with Visit Spokane on two marketing opportunities. Goals for 2016 • Improve sound in small dining room. • Ensure a long-term catering contract. • Increase events by 10%over 2015. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Customer Relations/Facilities Coordinator 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 2.0 1.0 1.0 1.0 1.0 Office Assistant I 0.0 1.0 1.0 1.0 1.0 Maintenance Worker 2.0 2.0 2.0 2.0 2.0 Total FTEs 5.0 5.0 5.0 5.0 5.0 Budget Detail Wages,Payroll Taxes&Benefits $ 389,547 $ 393,283 $ 402,329 $ 435,609 $ 475,925 Supplies 57,236 59,994 63,834 66,963 76,024 Services&Charges 316,954 311,503 335,273 322,425 330,274 Capital Outlays 317,000 0 0 0 0 Total CenterPlace Division $ 1,080,737 $ 764,780 $ 801,436 $ 824,997 $ 882,223 69 Fund:001 General Fund Spokane Valley Dept:090 General Government 2016 Budget The General Government Department accounts for those activities that are not specific to the functions of any particular General Fund Department or operation. Expenditures recorded here are composed of City Hall rent and related utilities; information technology equipment and services;capital costs that benefit more than one department;support of agencies external to the City that provide social service programs and economic development services;and transfers to other City funds for property/casualty insurance premiums(Fund#502),park capital projects(Fund#309)and the pavement preservation program(Fund#311). Budget Summary 2012 2013 2014 2015 2016 Actual Actual _ Actual Budget _ Budget Supplies PEG COSV Small tools&Minor Equip $ 329 $ 336 $ 0 $ 500 $ 3,700 Business Registrations 1,288 293 0 1,500 500 Employee Recognition-Operating Supplies 0 13 2,667 3,000 3,000 Employee Recognition&Safety Program 347 1,925 0 0 0 Office&Operating Supplies 158 937 0 0 0 Small Tools&Minor Equipment 8,081 4,114 3,738 2,600 4,000 Non Capital Office Furniture&Equipment 526 0 0 0 0 Computer Hardware-Non Capital 0 35,165 30,671 27,250 26,900 Computer Software-Non Capital 0 6,519 32,631 20,800 34,500 Non Capital Computer Software/Hardware 22,568 0 0 0 0 Fuel 0 3 104 0 0 Office&Operating Supplies 7,496 10,313 8,418 15,000 15,000 40,793 59,618 78,229 70,650 87,600 Other Services&Charges Professional Services-Misc Studies 0 87,229 117,149 150,000 150,000 Accounting&Auditing 69,161 70,119 66,714 80,000 80,000 Uncollectible Accounts Expense 2,288 0 0 0 0 Postage 3,993 1,168 315 1,500 1,500 Telephone Service 29,196 9,088 8,790 17,000 9,000 Cell Phones 0 1,561 1,335 1,600 1,600 Internet Service 0 13,994 10,404 12,500 11,000 City Wide Records Management 3,610 0 3,610 10,000 10,000 City Hall Rent 478,324 425,246 409,979 430,000 439,000 Facility Repairs&Maintenance 583 1,430 1,318 5,000 5,000 Equip Repair&Maint-Hardware Support 23,083 23,457 51,617 35,200 42,000 IT Support 75,225 71,221 13,323 33,800 28,300 Software Licenses&Maintenance 70,737 90,502 66,369 76,650 73,100 Merchant Charges(Bankcard Fees) 1,492 1,347 1,765 2,000 2,000 Equip Rental 0 3,300 3,300 3,300 3,300 Interfund Vehicle Lease 0 0 0 0 500 PEG Reimburse-CMTV 12,305 0 0 0 0 Printing&Binding 343 432 0 0 0 Miscellaneous Services 7,045 5,938 2,393 10,000 10,000 EECBG Utilities Partnering Program 20,383 0 0 0 0 Vehicle Rental 7,000 1,559 0 2,000 1,500 General Operating Leases:Computer 52,842 41,039 49,645 42,000 51,000 Economic Development-Site Selector 9,197 8,813 9,139 10,000 10,000 Professional Services-Economic Devel. 100,340 89,041 87,498 70,400 0 City Economic Development 88,230 202,430 196,877 200,000 0 Outside Agencies-Social Svc&Econ.Dev. 0 0 0 0 107,000 Contracted economic dev. 0 0 0 0 43,000 Professional Services-Social Services 49,095 55,809 61,723 79,600 0 Alcohol Treatment:Liquor Excise Tax 4,516 1,213 3,439 0 0 Alcohol Treatment:Liquor Profits 17,977 16,279 16,258 20,000 20,000 Prior Period Adjustment (119,334) 0 0 0 0 $ 1,007,631 $ 1,222,215 $ 1,182,960 $ 1,292,550 $ 1,098,800 70 Fund:001 General Fund Spokane Valley Dept:090 General Government 2016 Budget Budget Summary cont. 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Intergovernmental Services Election Costs $ 0 $ 85,304 $ 0 $ 86,000 $ 87,000 Voter Registration 86,132 87,964 84,764 90,000 90,000 Taxes and assessments 6,006 7,278 6,909 7,500 7,500 Spokane County Air Pollution Authority 115,569 115,720 115,915 117,000 117,000 207,707 296,266 207,588 300,500 301,500 Capital Outlays PEG COSV Broadcast-Office Furn. 0 2,131 0 0 0 PEG COSV Broadcast-Software/hardware 24,232 24,936 30,596 0 0 Copy Machine 21,523 0 0 0 3,500 Office Furniture&Equipment 0 0 0 0 0 Computer Software/Hardware 3,063 0 0 0 39,500 Compuer Hardware-Capital 0 15,035 68,956 46,500 0 Transfer out-#311(pvmnt preservation) 2,045,203 0 888,823 920,000 943,800 Construction-Pavement Preservation 0 855,957 0 0 0 2,094,021 898,059 988,375 966,500 986,800 Debt Service:Principal Interest and Other Debt Service Costs 444 301 435 0 0 Interfund Payments for Service Transfer out-#106(solid waste educ.) 0 0 60,000 0 0 Transfer out-#303(street const prof) 0 0 0 267,300 0 Transfer out-#309(park capital prof) 106,250 50,000 242,298 115,575 160,000 Transfer out-#310(bond pmt>$434.6 lease) 0 0 0 67,600 72,500 Transfer out-#310(city hall o&m costs) 0 0 0 271,700 271,700 Transfer out-#312(capital reserve fund) 0 7,826,207 2,443,507 1,783,512 0 Transfer out-#502(risk management) 319,000 319,000 325,000 325,000 325,000 425,250 8,195,207 3,070,805 2,830,687 829,200 Miscellaneous SCRAPS pass through 0 0 56,568 0 1,100 Supplies-10th Anniversary 0 3,818 0 0 0 Advertising-10th Anniversary 257 12,030 0 0 0 City Hall Remodel 0 0 0 23,300 257 15,848 56,568 23,300 1,100 Nonrecurring-Capital Computer Hardware-Capital 0 0 0 0 95,000 Computer Software-Capital 0 0 20,789 120,000 13,000 Total Governmental Division $ 3,776,103 $ 10,687,514 $ 5,605,749 $ 5,604,187 $ 3,413,000 71 Fund:101 Street Fund Spokane Valley 2016 Budget The Street Fund was established to account for the activities associated with the provision of efficient and safe movement of both motorized and nonmotorized vehicles,as well as pedestrians within the limits of the City,and coordinate convenient coordinate convenient interconnect to the regional transportation system. Maintenace work includes snow and ice control, street pavement repairs,traffic signals and signs,landscaping and vegetation control and many other street maintenance and repair activities. , Accomplishments for 2015 •Optimized Argonne Road corridor from 1-90 to Trent. •Modified signal timing on Sprague from Sullivan to Evergreen. •Modified signal timing at University and Appleway. •Assisted with TAP/CMAQ and TIB grant applications. •Renewed contracts for street maintenance services. •Polymer deck overlay on the Sands Road Bridge. •Crack sealed 66 lane miles of arterial and residential streets. •Increased the efficiencey of snow and ice operations by improving route planning. Goals for 2016 •Optimize traffic signals on selected corridors. •Apply for grants and work with various schools to install flashing beacons at crosswalks. •Renew Contracts with private contractors for street maintenance services. •Continue to define and implement a fleet maintenance program. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Senior Engineer-Traffic 1.0 1.0 1.0 1.0 1.0 Public Works Superintendent 1.0 1.0 1.0 1.0 1.0 Maintenance/Construction Inspector 2.0 2.0 2.0 2.35 2.35 * Assistant Engineer-Traffic/Planning 1.0 1.0 1.0 1.0 1.0 Planning Grants Engineer 0.0 0.0 0.3750,375 _ 0.375 Total FTEs 5.0 5.0 5.375 5.725 5.725 Interns 1.0 1.0 2.0 2.0 2.0 * For 0.5 FTE of the 2 FTEs,only 50%is budgeted to the Street Fund with the balance budgeted as part of the capital project funds Revenues Utility Tax $ 2,735,469 $ 2,562,722 $ 2,565,100 $ 2,565,100 $ 2,340,000 Motor Vehicle Fuel Tax 1,846,990 1,868,055 1,859,900 1,859,900 2,004,900 Investment Interest 4,056 2,920 3,000 3,000 3,000 Grants 203,185 172,530 0 0 0 Transfers in 7,614 27,375 0 0 0 Miscellaneous 34,429 14,701 10,000 10,000 10,000 Total revenues 4,648,303 4,438,000 4,438,000 4,438,000 4,357,900 Expenditures Wages,Payroll Taxes&Benefits 572,349 582,013 681,338 677,297 734,604 Supplies 141,776 108,110 119,742 111,500 111,500 Services&Charges 2,361,014 2,152,294 2,030,250 2,122,808 2,132,754 Snow Operation 591,390 485,717 508,353 520,000 430,000 Intergovernmental Payments 723,305 797,275 876,268 748,000 771,000 Transfers out-#001 39,600 39,700 39,700 39,700 39,700 Transfers out-#311 (pvmnt pres) 0 282,000 282,000 206,618 67,342 Transfers out-#501 (non-plow) 10,777 10,777 10,777 12,077 31,000 Transfers out-#501 (plow replace) 100,000 150,000 75,000 0 40,000 Capital construction and equipment 552,829 205,621 100,722 53,000 25,000 Total expenditures 5,093,040 4,813,507 4,724,150 4,491,000 4,382,900 Revenues over(under)expenditures (444,737) (375,507) (286,150) (53,000) (25,000) Beginning fund balance 2,489,735 2,044,998 1,669,491 1,705,244 1,652,244 Ending fund balance $ 2,044,998 $ 1,669,491 $ 1,383,340 $ 1,652,244 $ 1,627,244 72 Fund:103 Paths&Trails Fund Spokane Valley 2016 Budget The State of Washington collects a$0.445 per gallon motor vehicle fuel tax at the pump,which will increase to $0.494 per gallon effective July 1,2016.Of this amount,the State remits a portion of the tax back to cities on a per capita basis. For 2016 the Municipal Research and Services Center estimates the distribution back to cities will be$21.27 per person. Based upon a City of Spokane Valley population of 93,340(per the Washington State Office of Financial Management on April 1,2015)we anticipate the City will collect$2,2013,400 in 2016. RCW 47.030.050 specifies that.42%of this tax must be expended for the construction of paths and trails and based upon the 2016 revenue estimate. This computes to$8,500. The balance or$2,004,900 will be credited to Fund#101 for Street maintenance and operations. The portion of the motor vehicle tax allocated to the Paths and Trails Fund is by State Law restricted for the construction and/or improvement of paths and trails withing the City. Because the cost of such projects is typically much greater than the funds generated in a single year we typically leave the fund balance untouched until an adequate fund balance is available. In 2014 the City transferred$50,000 to Park Capital Projects Fund#309 to be applied twoards the Phase 2 Appleway Trail Project from University to Pines. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Moter Vehicle Fuel(Gas)Tax $ 7,790 $ 7,879 $ 7,923 $ 7,800 $ 8,500 Investment Interest 67 51 34 0 0 Total revenues 7,857 7,930 7,957 7,800 8,500 Expenditures Capital Outlay 0 0 0 0 0 Transfers out- #309 0 0 50,000 0 0 Total expenditures 0 0 50,000 0 0 Revenues over(under)expenditures 7,857 7,930 (42,043) 7,800 8,500 Beginning fund balance 56,084 63,941 71,871 29,828 37,628 Ending fund balance $ 63,941 $ 71,871 $ 29,828 $ 37,628 $ 46,128 73 Fund:104 Hotel/Motel Tax-Tourism Facilities Fund Spokane Valley 2016 Budget The Hotel/Motel Tax -Tourism Facilities Fund accounts for the receipt and expenditure of a special excise tax of 1.3 percent on the sale or charge made for the furnishing of lodging under RCW 82.08. These funds will be used solely for capital expenditures for acquiring,constructing,making improvements to or other related capital expenditures for large sporting venues,or venues for tourism-related facilities,which facilities generate overnight guests at lodging facilities subject to the taxes imposed. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Hotel/Motel Tax $ 0 $ 0 $ 0 $ 178,700 $ 357,500 Investment Interest 0 0 0 0 0 Total revenues 0 0 0 178,700 357,500 Expenditures Capital Outlay 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 0 0 0 178,700 357,500 Beginning fund balance 0 0 0 0 178,700 Ending fund balance $ 0 $ 0 $ 0 $ 178,700 $ 536,200 Fund:105 Hotel/Motel Tax Fund Spokane Valley 2016 Budget The Hotel/Motel Fund accounts for the receipt and expenditure of a special excise tax of two percent on the sale or charge made for the furnishing of lodging under RCW 82.08. These funds will be used solely for the purpose of paying all or any part of the cost of tourist promotion,acquisition or operation of tourism-related facilities,and marketing of special events and festivals designed to attract tourists. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Hotel/Motel Tax $ 490,004 $ 518,672 $ 549,267 $ 550,000 $ 550,000 Investment Interest 592 387 299 300 300 Total revenues 490,596 519,059 549,567 550,300 550,300 Expenditures Tourism Promotion 511,756 458,904 546,545 502,000 560,000 Transfers out- #001 30,000 30,000 30,000 30,000 30,000 Transfers out- #309 0 0 0 68,000 0 Total expenditures 541,756 488,904 576,545 600,000 590,000 Revenues over(under)expenditures (51,160) 30,155 (26,978) (49,700) (39,700) Beginning fund balance 257,932 206,772 236,927 209,949 160,249 Ending fund balance $ 206,772 $ 236,927 $ 209,949 $ 160,249 $ 120,549 74 Fund:106 Solid Waste Fund Spokane Valley 2016 Budget In 2003,the City of Spokane Valley entered into an interolocal agreement with the City of Spokane and Spokane County to join the existing Spokane Regional Solid Waste Management System for a period of eight years. In 2011,that agreement was extended through November 16,2014. Committed to ensuring Spokane Valley citizens are provided with solid waste services that are affordable,sustainable, and environmentally responsible,in June 2014 the City of Spokane Valley opted to contract for solid waste transfer, transport and disposal services with Sunshine Recyclers,Inc.Services provided under the contract are effective November 17,2014,and continue for a period of ten years with options for two three-year extensions. Terms of the contract require Sunshine to pay the City an annual administrative fee of$125,000 that will be used by the City to offset contract administrative costs and solid waste management within the city,including solid waste public educational efforts. The contract also provides that a road maintenance fee will be paid by Sunshine at the rate of$1 per ton for each ton in excess of 45,500 tons in a single contract year. Payments will be made to the City by March 31 of the year following the calendar year being measured. Assuming the total tonnage in 2015 exceeds 45,500 we would expect our first payment from Sunshine by March 31,2016. The contract with Sunshine Recyclers does not include curbside pickup which remains optional for citizens and is available by subscription through Waste Management and Sunshine Disposal,Inc. During the years of 2013 and 2014,the General Fund#001 funded various studies and fees related to the solid waste program and transferred$60,000 to the Solid Waste Fund#106 for the purpose of providing information materials and marketing necessary to inform residents and businesses of the change in the solid waste transfer,transport and disposal.The total amount paid out of the General Fund for these expenditures was$202,121.Beginning in 2015 the Solid Waste Fund will reimburse the General Fund for these costs over a 5-year period,which equates to a payment of annually of$40,425 in the years 2015 through 2019. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Sunshine administrative fee $ 0 $ 0 $ 0 $ 125,000 $ 125,000 Road maintenance fee 0 0 0 0 0 Investment interest 0 0 0 0 0 Grant Proceeds 0 0 0 26,800 53,500 Transfer in-#001 0 0 60,000 0 0 Total revenues 0 0 60,000 151,800 178,500 Expenditures Education&Contract Administration 0 0 52,661 111,375 138,075 Transfers out-#001 (reimbursement) 0 0 0 40,425 40,425 Total expenditures 0 0 52,661 151,800 178,500 Revenues over(under)expenditures 0 0 7,339 0 0 Beginning fund balance 0 0 0 7,339 7,339 Ending fund balance $ 0 $ 0 $ 7,339 $ 7,339 $ 7,339 75 Fund:107 PEG Fund Spokane Valley 2016 Budget Under the City's cable franchise,the franchise grantee remits to the City as a capital contribution in support of Public Education Government(PEG)capital requirements an amount equal to$0.35 per subscriber per month to be paid to the City on a quarterly basis for the life of the franchise.Capital contributions collected under this agreement are allocated to PEG capital uses exclusively.PEG capital uses include,in part,the set up of equipment in the City Council Chambers that allows Spokane Valley to broadcast Council meetings both live and through subsequent reviews via digital recordings available on the City's website. Budget Summary 2012 2013 2014 2015 2016 Actual Actual _ Actual _ Budget _ Budget Revenues Comcast PEG contribution $ 0 $ 0 $ 0 $ 92,000 $ 90,000 Investment interest 0 0 0 0 0 Transfer in from fund#001 0 0 0 267,300 0 Total revenues 0 0 0 359,300 90,000 Expenditures PEG Reimbursement-GMTV 0 0 0 12,000 12,000 Capital Outlay 0 0 0 68,400 12,500 Total expenditures 0 0 0 80,400 24,500 Revenues over(under)expenditures 0 0 0 278,900 65,500 Beginning fund balance 0 0 0 0 278,900 Ending fund balance $ 0 $ 0 $ 0 $ 278,900 $ 344,400 76 Fund:120 CenterPlace Operating Reserve Fund Spokane Valley 2016 Budget The CenterPlace Operating Reserve Fund was established as a result of covenant related to the issuance of limited tax general obligation bonds initially issued in 2003 and refunded in 2014. The bonds were issued for the purpose of constructing the CenterPlace facility. As a part of the bond issuance the City agreed to establish a$300,000 operating reserve account that could be used to make debt service payments on the bonds and/or pay for operating expenses of CenterPlace. If at any time the City were to draw on these reserves it would have to prepare and follow a plan for reinstatement of those funds drawn. This reserve is required to be in place for the life of the bonds which run through December 1,2033. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Investment Interest $ 0 $ 0 $ 0 $ 0 $ 0 Transfers-in 0 0 0 0 0 Total revenues 0 0 0 0 0 Expenditures Operations 0 50,787 0 0 0 Total expenditures 0 50,787 0 0 0 Revenues over(under)expenditures 0 (50,787) 0 0 0 Beginning fund balance 350,787 350,787 300,000 300,000 300,000 Ending fund balance $ 350,787 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Fund:121 Service Level Stabilization Reserve Fund Spokane Valley 2016 Budget The City has committed to maintaining a General Fund fund balance of at least 50%of recurring expenditures which is equivalent to 6-months of operations. The Service Level Stabilization Reserve Fund serves as an emergency source of temporary financing to the General Fund in the event a downturn in the local economy resulted in a reduction of revenues that would otherwise compromise either the General Fund's minimum 50%reserve balance or historical levels of service. If an event such as a downturn in the economy resulted in the General Fund balance dropping below 50%of recurring expenditures,then the Service Level Stabilization Reserve Fund could be drawn against to maintain the fund balance minimum. In no event would the Service Level Stabilization Reserve Fund be reduced to less than 60%of the current $5.5 million balance or$3.27 million. This represents a Fiscal Policy of the City that is also stated in the City Manager's 2016 Budget Message located near the front of this budget document. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Investment Interest $ 9,103 $ 6,971 $ 4,697 $ 8,200 $ 6,500 Transfer-in 0 0 0 0 0 Total revenues 9,103 6,971 4,697 8,200 6,500 Expenditures Operations 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 9,103 6,971 4,697 8,200 6,500 Beginning fund balance 5,432,428 5,441,531 5,448,502 5,453,199 5,461,399 Ending fund balance $ 5,441,531 $ 5,448,502 $ 5,453,199 $ 5,461,399 $ 5,467,899 77 Fund:122 Winter Weather Reserve Fund Spokane Valley 2016 Budget The Winter Weather Reserve Fund was established to provide an emergency reserve for use during unusually harsh winters where the Street Fund#101 budget and fund balance are inadequate to accommodate the amount of snow plowing that may be necessary. In the event the City draws against this fund in any given winter we will strive to replenish the balance back to approximately$500,000 through subsequent years transfers from Fund#101. Due to the uncertainty of when this fund might be drawn upon we actually budget the same$500,000 in both 2014 and 2015 even though we recognize there exists only$500,000 to address this issue if it should arise. Budget Summary 2012 2013 ' 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Investment Interest $ 883 $ 677 $ 456 $ 800 $ 600 Transfer-in 0 0 0 0 0 Total revenues 883 677 456 800 600 Expenditures Snow removal 0 0 0 500,000 500,000 Total expenditures 0 0 0 500,000 500,000 Revenues over(under)expenditures 883 677 456 (499,200) (499,400) Beginning fund balance 502,005 502,888 503,565 504,020 504,820 Ending fund balance $ 502,888 $ 503,565 $ 504,020 $ 4,820 $ 5,420 Fund:123 Civic Facility Replacement Fund Spokane Valley 2016 Budget This fund was initially created to set aside money for the eventual replacement of CenterPlace and the police precinct building located on on east Sprague Avenue and the source of funds had in prior years been an annual transfer from the General Fund. Beginning in 2013 however the City made the decision to no longer set money aside in this fund for future building replacements and instead decided to commit the entire fund balance of Fund#123 to a pavement program that is operated through Pavement Preservation Fund#311. This is in recognition of the fact that addressing deteriorating streets in a timely manner is a much higher priority in the present than setting money aside for buildings that will need replaced in the distant future. It was the City's conclusion that to both set money aside for the replacement of CenterPlace now while at the same time repaying the 2014 LTGO bonds(see Fund#204 discussion)that were issued to finance the construction of CenterPlace is essentially asking the same generation of taxpayers/citizens to pay for the same structure twice-the initial construction and the replacement. The$2.4 million fund balance that existed at the end of 2012 will be completely depleted due to transfers for pavement preservation in 2016. Budget Summary 2012 I 2013 2014 2015 2016 Actual L Actual Actual Budget Budget Revenues Investment Interest $ 2,099 $ 1,608 $ 1,083 $ 1,300 $ 700 Transfers in-#001 397,000 0 0 0 0 Total revenues 399,099 1,608 1,083 1,300 700 Expenditures Transfers out-#311 0 616,284 616,284 616,284 559,786 Total expenditures 0 616,284 616,284 616,284 559,786 Revenues over(under)expenditures 399,099 (614,676) (615,201) (614,984) (559,086) Beginning fund balance 2,004,848 2,403,947 1,789,271 1,174,070 559,086 Ending fund balance $ 2,403,947 $ 1,789,271 $ 1,174,070 $ 559,086 $ 0 78 Fund:204 Limited Tax General Obligation(LTGO)Bond-Debt Service Fund Spokane Valley 2016 Budget This fund is used to account for the accumulation of resources for,and the payment of limited tax general obligation(LTGO) bonds also referred to as councilmanic or nonvoted bonds. When LTGO bonds are issued the City irrevocably pledges the full faith,credit and resources necessary to make timely payments of principal and interest,within constitutional and statutory limitations pertaining to non-voted general obligations. In 2003 the City issued$9,430,000 in LTGO bonds,the proceeds of which were used to finance both the construction of CenterPlace and road and street improvements surrounding the facility. In 2014 the City refunded the LTGO bonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond payments(much like refinancing a home mortgage). At the completion of the bond refunding there remained$7,035,000 of LTGO bonds. Of this total: • $5,650,000 remains on the original debt used towards the construction of CenterPlace. These bonds will be paid off in annual installments over the 20-year period ending December 1,2033. Annual debt service payments on these bonds are provided by the Spokane Public Facilities District. At January 1,2016,the outstanding balance on this portion of the bond issue will be$5,250,000. • $1,385,000 remains on the original debt used towards the road and street improvements. These bonds will be paid off in annual installments over the 10-year period ending December 1,2023. Annual debt service payments on these bonds are provided by equal distributions from the 1st and 2nd quarter percent real estate excise tax(Funds 301 and 302). At January 1,2016,the outstanding balance on this portion of the bond issue will be$1,125,000. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Spokane Public Facilities District $ 432,320 $ 437,120 $ 441,520 $ 373,800 $ 380,300 2014 LTGO Bond issue proceeds 0 0 7,661,000 0 0 Transfers in-#301 92,651 92,951 93,152 82,150 83,400 Transfers in-#302 92,652 92,952 93,151 82,150 83,400 Total revenues 617,623 623,023 8,288,823 538,100 547,100 Expenditures Debt Service Payment-CenterPlace 432,531 437,120 441,520 373,800 380,300 Debt Service Payment-Roads 185,092 185,903 186,303 164,300 166,800 2003 LTGO Bond retirement 0 0 7,549,000 0 0 2014 LTGO Bond issue costs 0 0 112,000 0 0 Total expenditures 617,623 623,023 8,288,823 538,100 547,100 Revenues over(under)expenditures 0 0 0 0 0 Beginning fund balance 4,049 4,049 4,049 4,049 4,049 Ending fund balance $ 4,049 $ 4,049 $ 4,049 $ 4,049 $ 4,049 79 Fund:301 REET 1 Capital Projects Fund Spokane Valley 2016 Budget This fund is used to account for the collection and expenditures of the first one-quarter of one-percent real estate excise tax (REET 1)that is authorized through RCW 82.46. This quarter percent must be expended for purposes identified in the capital facilities plan element of our comprehensive plan. RCW 82.46.010(6),defines"capital projects"as: those public works projects of a local government for planning,acquisition,construction,reconstruction,repiar, replacement,rehabilitation,or improvement of streets;roads;highways;sidewalks;street and road lighting systems; traffic signals;bridges;domestic water systems;storm and sanitary sewer systems;parks;recreational facilities;law enforcement facilities;fire protection facilities;trails;libraries;administrative and judicial facilities. Revenues recorded in this fund are typically used as a matching fund for street related construction projects that are accounted for in Street Capital Projects Fund#303,Pavement Preservation Fund#311,and to pay for a portion of the annual bond payment on the City's 2014 LTGO bonds that are accounted for in Fund#204-LTGO Debt Service Fund. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual _ Budget Budget Revenues REET 1-Taxes $ 654,264 $ 707,104 $ 790,781 $ 800,000 $ 800,000 Investment Interest 1,204 1,138 793 1,000 1,000 Miscellaneous Revenues 9,600_ 0 0 0 0 Total revenues 665,068 708,242 791,574 801,000 801,000 Expenditures Transfers out-#204 92,651 92,951 89,559 82,150 83,400 Transfers out-#303 253,429 589,534 58,607 569,414 222,503 Transfers out-#311(pavement preservation, 0 150,000 184,472 251,049 365,286 Interfund Transfers (1,203) 0 0 0 0 Total expenditures 344,877 832,485 332,638 902,613 671,189 Revenues over(under)expenditures 320,191 (124,243) 458,937 (101,613) 129,811 Beginning fund balance 772,073 1,092,264 968,021 1,426,958 1,325,345 Ending fund balance $ 1,092,264 $ 968,021 $ 1,426,958 $ 1,325,345 $ 1,455,156 80 Fund:302 REET 2 Capital Projects Fund Spokane Valley 2016 Budget This fund is used to account for the collection and expenditures of the second one-quarter of one-percent real estate excise tax(REET 2)that is authorized through RCW 82.46. This quarter percent may be only be levied by cities that are planning under the Growth Management Act and may only be expended for purposes identified in the capital facilities plan element of their comprehensive plan. RCW 82.46.035(5)defines"capital projects"as: public works projects of a local government for planning,acquisition,construction,reconstruction,repair,replacement, rehabilitation,or improvement of streets,roads,highways,sidewalks,street and road lighting systems,traffic signals, bridges,domestic water systems,storm and sanitary sewer systems,and planning,construction,reconstruction, repair,rehabilitation,or improvement of parks. Noteworthy here is that acquisition of land for parks is not a permitted use of REET 2 receipts,although it is a permitted use for street,water and sewer projects. Revenues recorded in this fund are typically used as a matching fund for street related construction projects that are accounted for in Street Capital Projects Fund#303,Pavement Preservation Fund#311,and to pay for a portion of the annual bond payment on the City's 2014 LTGO bonds that are accounted for in Fund#204-LTGO Debt Service Fund. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues REET2-Taxes $ 531,442 $ 614,929 $ 776,648 $ 800,000 $ 800,000 Investment Interest 1,762 1,349 909 1,000 1,000 Transfers in-#307 6,477 0 0 0 0 Total revenues 539,681 616,278 777,557 801,000 801,000 Expenditures Transfers out-#101 7,615 27,375 23 0 0 Transfersout-#204 92,651 92,951 89,559 82,150 83,400 Transfersout-#303 1,112,518 153,243 501,736 413,272 922,816 Transfersout-#307 (173,470) 0 0 0 0 Transfers out-#311(pavementpreservatio. 0 150,000 184,472 251,049 365,286 1,039,314 423,570 775,790 746,471 1,371,502 Revenues over(under)expenditures (499,633) 192,708 1,767 54,529 (570,502) Beginning fund balance 1,630,303 1,130,670 1,323,378 1,325,145 1,379,674 Ending fund balance $ 1,130,670 $ 1,323,378 $ 1,325,145 $ 1,379,674 $ 809,172 81 Fund:303 Street Capital Projects Fund Spokane Valley 2016 Budget The Street Capital Projects Fund accounts for monies used to finance street construction and reconstruction projects adopted in the Citys 6-year Transportation Improvement Plan(TIP). Revenues to finance the projects comes from a combination of State and Federal Grants which typically cover upwards of 80%of projects costs with the City match portion coming from transfers from the REET 1 Capital Projects Fund#301,REET 2 Capital Projects Fund#302 and sometimes Stormwater Management Fund#402. Budget Summary 2012 2013 2014 2015 2016 Actual Actual _ Actual Budget Budget Revenues Grant Proceeds S 3,826,042 S 2,870,539 S 1,825,974 S 10,321,343 5 8,797,263 Developer Contribution 760,768 0 541 364,378 314,700 Miscellaneous 1,650 78 21 0 0 WSDOT-Safe Routes 26,213 604,811 0 0 0 Transfers in-#001 64,750 0 0 0 0 Transfersin-#101 465,454 138 5,038 0 0 Transfersin-#102 207,447 0 0 0 0 Transfers in-#301 253,429 589,535 29,647 569,413 222,503 Transfers in-#302 1,112,518 153,243 530,695 413,271 922,816 Transfers in-#310 140,139 0 0 0 0 Transfers in-#311 299,027 77,720 0 0 0 Transfers in-#312 Appleway Landscaping 0 8,348 253,645 0 0 Transfers in-#312 Sullivan Rd W Bridge 0 0 443,688 500,000 1,010,509 Transfers in-#312 Pines Underpass Pined' 113,014 0 0 0 500,000 Total revenues 7,270,451 4,304,412 _ 3,089,249 12,168,405 11,767,791 Expenditures 005 Pines/Mansfield,Wilbur Rd.to Pines 43,725 228,275 0 0 0 060 Argonne Rd Corridor Upgrade SRTC 06-31 109,948 33,665 206,188 1,214,829 0 061 Pines(SR27)ITS Imporvement SRTC 06-21 196,503 1,000,462 67 0 0 063 Broadway Avenue Safety Project Pines-Pa 1,747 0 0 0 0 065 Sprague/Sullivan PCC Intersection (7,240) 0 0 0 0 069 Park Road-#2(PE Only)-Broadway to Ind 1,019 0 0 0 0 112 Indiana Ave.Extension-3600 53,791 3,877 0 0 0 113 Indiana/Sullivan Intersection PCC 1,435 96,313 113 0 0 115 Sprague Ave Resurfacing-Evergreen to Sull 2,825,759 11,799 0 0 0 123 Mission Ave-Flora to Barker 109 5,647 40,012 252,570 332,566 141 Sullivan&Euclid PCC 8,720 0 49,556 10,000 1,981,060 142 Broadway @Argonne/Mullan 1,255 73,792 3,564 120,494 0 145 Spokane Valley-Millwood Trail 3,834 429 1,924 0 0 146 24th Ave Sidewalk-Adams to Sullivan 43,091 270,962 0 0 0 148 Greenacres Trail-Design 2,815 0 0 0 0 149 In-House Design-Sidewalk Infill 529,155 187,148 288,304 93,190 5,000 154 Sidewalk&Tansh Stop Accessibility 233,859 4,991 435 0 0 155 Sullivan Rd W Bridge Replacement 949,390 819,702 925,421 7,846,931 5,237,650 156 Mansfield Ave.Connection 21,996 137,578 669,533 1,172,716 5,000 157 Sullivan Rd W Bridge Temp Repairs 192,039 0 0 0 0 159 University Rd/1-90 Overpass Study 5,336 170,805 32,716 40,852 0 160 Evergreen-16th to 32nd reconstruction 1,677,723 1,069 0 0 0 166 Pines Rd(SR27)&Grace Ave.Intersect O. 0 28,093 50,516 101,110 491,331 167 City wide safety improvements 841 1,722 12,159 260,576 228,127 168 Wellesley Ave&Adams rd sidewalk 27,137 638,773 3,318 0 0 169 Argonne/Mullan corridor safety-Indiana to I 0 53,463 558 0 0 170 Argonne Rd-Empire to Knox 0 118,990 0 0 0 171 Sprague ave ADA sdwlk improvement(Hay 10,429 100,316 0 0 0 175 Sullivan UP Tracks UC(SB)Resurfacing 0 175,955 0 0 0 176 Appleway Trail Design 0 103,303 0 0 0 177 Sullivan Road Corridor Traffic Study 0 38,139 106,305 55,556 0 181 Citywide Traffic Sign Upgrade 0 100,956 96,561 0 0 185 Appleway Landscaping-Phase 1 0 8,348 253,695 0 0 191 Vista Rd BNSF Xrng Safety 0 4,880 48,501 300 0 196 8th Avenue-McKinnon to Fancher 0 0 264,439 400 0 201 ITS Infill Project Phase 1(PE START 2014) 0 0 149 56,056 271,357 205 Sprague/Barker Intersection Improvement 0 0 191 51,428 0 206 Sprague/Long Sidewalk Project 0 0 7,513 357,713 5,000 207 Indiana&Evergreen Transit Access Improv 0 0 0 85,000 0 210 Alcazar Driveway Reconstruction 0 0 7,902 0 0 211 Sullivan Trent to Wellesley 0 0 3,465 96,535 0 213 Sprague/Thierman Intersection 0 0 5,038 0 0 220 Houk-Sinto-Maxwell St Preservation 0 0 0 18,474 0 221 McDonald Rd Diet(16th to Mission) 0 0 0 56,800 559,200 222 Citywide Reflective Signal Backplates 0 0 0 4,500 40,500 223 Pines Rd Underpass(g BNSF&Trent 0 0 0 10,000 500,000 224 Mullan Rd Street Preservatin Project 0 0 0 162,375 0 )cox N.Sullivan Corridor ITS Praj(PE start 2015 0 0 0 0 0 xxx Seth Woodward Elem Sidewalk Improveme 0 0 0 0 361,000 xxx Maribeau Pkwy&Pines(SR-27)Traffic Sig; 0 0 0 0 350,000 xxx Bowdish Sidewalk-8th to 12th 0 0 0 0 400,000 Contingency 0 0 0 100,000 1,000,000 STEP Projects(106,129,130,131,151,152) 231,763 236 0 0 0 Misc.Road Projects 0 814 0 0 0 Total expenditures 7,166,1794,420,503 3,078,147 12,168,405 11,767,791 Revenues over(under)expenditures 104,272 (116,091) 11,102 0 0 Beginning fund balance 73,646 177,918 61,827 72,930 72,930 Ending fund balance $ 177,918 S 61,827 S 72,930 S 72,930 S 72,930 82 Fund:309 Park Capital Projects Fund Spokane Valley 2016 Budget The Parks Capital Projects Fund was created to account for park related capital improvements. Source of financing typically consists of an annual transfer from the General Fund#001,however in some years the City will utilize money set aside for capital projects in other funds. This occurred in 2014 when$50,000 was transferred from the Paths and Trails Fund#103 and Capital Reserve Fund#312 which was applied towards the Appleway Trail-University to Pines project. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 0 $ 0 $ 0 $ 90,000 $ 90,000 Transfers in-#001 (General Fund) 106,250 50,000 242,298 115,575 160,000 Transfers in-#103(Paths&Trails) 0 0 50,000 0 0 Transfers in-#105 0 0 0 68,000 0 Transfers in-#312(Capital Reserve) 0 0 911,433 540,600 0 Transfers in-#312(Capital Reserve) 0 0 0 14,050 14,050 Investment Interest 848 660 444 500 500 Contributions and Donations 0 25,000 7,850 0 0 Total revenues 107,098 75,660 1,212,025 828,725 264,550 Expenditures 079 Greenacres Park 10,529 0 0 0 0 165 Terrace View Park Play Equipment 166,932 0 0 0 0 172 CenterPlace S.Landscape Development 38,365 9,131 0 0 0 176 Appleway Trail-Phase 1 (Univ.to Pines) 0 0 961,482 540,600 0 195 Discovery Playground equipment 0 16,172 51,280 0 0 203 5 Sand volleyball courts at Browns Park 0 0 14,390 244,200 0 208 Old Mission Trailhead 0 0 49,798 0 0 209 Park signs(3) 0 0 19,319 0 0 216 Edgecliff sewer connection 0 0 9,518 0 0 217 Edgecliff picnic shelter 0 0 7,297 106,450 0 225 Pocket dog park-phase 1 0 0 0 98,975 0 Mission Trailhead landscaping 0 0 0 47,100 0 Shade structure at Discovery Playground 0 0 0 38,000 0 Appleway Trail(Pines-Evergreen 0 0 0 104,050 104,050 Browns Park Splash Pad 0 0 0 0 82,500 Pocket dog park-phase 2 0 0 0 0 75,000 City entry sign 0 0 0 0 70,000 Park signs(3) 0 0 0 0 20,500 Total expenditures 215,826 25,303 1,113,084 1,179,375 352,050 Revenues over(under)expenditures (108,728) 50,357 98,941 (350,650) (87,500) Beginning fund balance 411,150 302,422 352,779 451,720 101,070 Ending fund balance $ 302,422 $ 352,779 $ 451,720 $ 101,070 $ 13,570 83 Fund: 310 Civic Facility Capital Projects Fund Spokane Valley 2016 Budget The Civic Building Capital Projects Fund was initially set-up to accumulate resources to ultimately acquire or construct a City Hall building. The initial sources of revenue to set-up the fund reserves were transfers from the General Fund during 2005 through 2007,and as recently as December 31,2009,this fund had a fund balance of$5,828,600. During 2010 and 2011 the City determined that street repairs and reconstruction represented a more immediate City need and opted to expend nearly$2,000,000 of the fund balance for these projects. The projects themselves were part of a septic tank elimination program(STEP)initiated by Spokane County that resulted in the installation of sewer lines down many City City streets. At that time the City decided to completely reconstruct the effected streets rather than patch them. In 2012 the City used this fund to finance a variety street related capital projects as well as the$2.5 million acquisition of an 8.4 acre parcel of land on Sprague Avenue that is adjacent to Balfour Park. Partially offsetting the cost of the land acquisition was the subsequent sale of 2.82 acres of this parcel to the Spokane County Library District who plans to construct a library building consisting of no less than 30,000 square feet. In order for the Library District to actually construct a new building on this site they must first have a successful voted bond issue to provide the necessary financing. In the event the Library District is unable to pass a bond by October 2017,they may sell the 2.82 acres parcel back to the City for the original purchase price of$839,285. In 2015 the General Fund began to make two annual transfers to this fund that are each related to the eventual construction of a new City Hall facility.These transfers continued in 2016. • The first transfer in the amount of$72,500,when added to the City's$434,600 annual lease payment for space in its current space totals$507,100 which is the amount we currently anticipate our annual bond repayment would be if we were to issue approximately$8,000,000 of limited tax general obligation bonds with a 2%issue cost over 30-years at 4.50%. • The second transfer is our current estimate of the annual operating costs of a City Hall facility including utilities, janitorial,grounds maintenance and snow removal,and operating and maintenance supplies. The purpose behind making these transfers beginning in 2015 is to"create"this appropriation capacity within the General Fund. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Investment Interest $ 5,349 $ 1,771 $ 1,193 $ 1,200 $ 1,200 Sale of Land 0 0 839,285 0 0 Miscellaneous 7,577 0 0 0 0 Transfers in-#001: -Future C.H.bond pmt>$434.6k lease p 0 0 0 67,600 72,500 -Future C.H.o&m costs 0 0 0 271,700 271,700 Transfers in-#312 0 0 0 58,324 0 Total revenues 12,926 1,771 840,478 398,824 345,400 Expenditures West Gateway at Thierman 88,559 9,942 0 0 0 STEP-Greenhaven 67,737 0 0 0 0 STEP-48th&Sundown 72,402 0 0 0 0 Acquisition of Sprague Property 2,501,668 0 0 0 0 Sprague Property Acquisition costs 29,109 0 0 0 0 Professional services 0 0 22,831 0 0 Capital Outlay-City Hall 0 0 0 1,140,300 0 Total expenditures 2,759,475 9,942 22,831 1,140,300 0 Revenues over(under)expenditures (2,746,549) (8,171) 817,647 (741,476) 345,400 Beginning fund balance 3,856,623 1,110,074 1,101,903 1,919,550 1,178,074 Ending fund balance $ 1,110,074 $ 1,101,903 $ 1,919,550 $ 1,178,074 $ 1,523,474 84 Fund: 311 Pavement Preservation Fund Spokane Valley 2016 Budget This fund was created during the 2011 Budget development process for the purpose of setting money aside for yet to be determined street capital improvement projects. During the 2011 Budget the City Council opted to: • Make an initial transfer of$500,000 from the Civic Facilities Capital Projects Fund#310,and additionally transfer an amount equivalent to 40%of the General Fund's audited fund balance that exceeded$26,000,000 as of December 31,2010. The 2010 ending fund balance was$27,461,703 which resulted in an additional 2011 transfer of$584,681 ((=$27,461,703-$26,000,000)x 40%)bringing the total transfers to$1,084,681. there were no pavement preservation expenditures from this fund in 2011. • In the 2012 Budget the City Council opted to transfer 100%of the General Fund unreserved fund balance in excess of$26,000,000 to Fund#311 which computed out to$2,045,203(=$28,045,203-$26,000,000). Pavement preservation expenditures in 2012 totalled$2,181,451. • In the 2013 Budget development process the City committed to finance pavement preservation at a level equivalent to 6%of 2013 General Fund recurring expenditures which computed out to$2,054,141 (_$34,235,677 x 6%). This was funded with an appropriation of$855,857 directly from the General Fund plus an additional appropriation of $1,198,284 in Fund#311. Sources of financing for the fund#311 appropriation included transfers-in from Fund#101 of$282,000;#123 of$616,284;#301 of$150,000 and#302 of$150,000. With an additional$35,945 in grant revenue this brought total 2013 pavement preservation revenues to$2,092,886,which financed$2,243,010 in projects in 2013(=$855,857 in Fund#001 and$1,387,153 in Fund#311). • In the 2014 Budget development process the City again committed to finance pavement preservation at a level equivalent to 6%of General Fund recurring expenditures which computed out to$2,156,051 (=$35,934,187 x 6%). This was financed with transfers from a number of City funds including$888,823 from the General Fund#001; $282,000 from Fund#101;$616,284 from Fund#123;$184,472 from Fund#301 and$184,472 from Fund#302. With an additional$2,042,665 in grant revenue this brought total 2014 pavement preservation revenues to $4,200,619,which helped finance$3,077,215 of projects in 2014. • In the 2015 Budget development process the City again committed to finance pavement preservation at a level equivalent to 6%of General Fund recurring expenditures which computed out to$2,245,133(=$37,418,882 x 6%). This was financed with transfers from a number of City funds including$920,000 from the General Fund#001; $206,618 from Fund#101;$616,284 from Fund#123;$251,049 from Fund#301 and$251,049 from Fund#302. With an additional$1,086,709 of grant revenue this brings anticipated 2015 pavement preservation revenues to $3,331,709,which are anticipated to finance$2,662,968 of projects in 2015. • The 2016 Budget is again being developed to set aside City funds equivalent to 6%of General Fund recurring expenditures which computes out to$2,301,500(=$38,357,999 x 6%). This is being financed with transfers from a number of City funds including$943,800 from the General Fund#001;$67,342 from Fund#101;$559,786 from Fund#123;$365,286 from Fund#301 and$365,286 from Fund#302. This brings anticipated 2016 pavement preservation revenues to$2,301,500.The 2016 Budget is anticipated to finance$2,156,051 of projects in 2016. The fund balance of Fund#123 will be exhausted with the 2016 transfer of$559,786. In order to maintain the City's practice of setting aside funds for pavement preservation in an amount equivalent to 6%of General Fund recurring expenditures, the City will have to rely more heavily on the REET funds going forward.We have determined that the 2016 funding level of $2,301,500 is sustainable through 2020 assuming a General Fund contribution of$943,800,a Street Fund contribution of $67,342,and a collective contribution of$1,290,358 from the REET 1 Capital Projects Fund#301 and the REET 2 Capital Projects Fund#302.The City will take advantage of grant programs directed at pavement preservation as they become available. Because this is a Capital Project Fund whose sole purpose is to provide for Pavement Preservation projects,any money not expended in a given year will remain in the fund and will be available for reappropriation in subsequent years. (continued to next page) 85 Fund: 311 Pavement Preservation Fund Spokane Valley 2016 Budget Please see the following page for a list of proposed/potential projects in 2016. Budget Summary 2012 2013 2014 2015 2016 Actual Actual _ Actual Budget Budget Revenues Transfers in-#001 $ 2,045,203 $ 0 $ 888,823 $ 920,000 $ 943,800 Transfers in-#101 0 282,000 282,000 206,618 67,342 Transfers in-#123 0 616,284 616,284 616,284 559,786 Transfers in-#301 0 150,000 184,472 251,049 365,286 Transfers in-#302 0 150,000 184,472 251,049 365,286 Investment Interest 0 2,750 1,853 0 0 Grants 0 35,945 2,042,715 971,032 0 Miscellaneous 300 50 0 0 0 Total revenues 2,045,503 1,237,029 4,200,619 3,216,032 2,301,500 Expenditures Pavement preservation 1,882,424 1,387,153 3,021,922 2,565,050 3,000,000 Pre-project GeoTech 0 0 55,293 50,000 50,000 Transfers out-#303-Sullivan Brdg Rpr 192,039 0 0 0 0 Transfers out-#303-Evergreen 16-32 79,945 0 0 0 0 Transfers out-#303-Sidewalk Infill 27,043 0 0 0 0 Total expenditures 2,181,451 1,387,153 3,077,215 2,615,050 3,050,000 Revenues over(under)expenditures (135,948) (150,124) 1,123,404 600,982 (748,500) Beginning fund balance 1,084,681 948,733 798,609 1,922,013 2,522,995 Ending fund balance $ 948,733 $ 798,609 $ 1,922,013 $ 2,522,995 $ 1,774,495 (continued to next page) 86 Fund: 311 Pavement Preservation Fund Spokane Valley 2016 Budget Based upon recommendations in the Pavement Management Plan Update along with field verification by Public Works staff we are recommending the following preliminary project list of pavement preservation projects in 2016: ARTERIAL STREETS FROM TO Broadway Ave Sullivan Road Moore Road 32nd Ave Dishman Mica Road Bowdish Road 32nd Ave Bowdish Road Pines Road Sullivan Road Spokane River Bridge Flora Pit Road RESIDENTIAL STREETS FROM TO Saltese Road Houk Road McDonald Road Saltese Road McDonald Road 24th Ave Contingency Prosect List ARTERIAL STREETS FROM TO McDonald Road 8th Ave Mission Ave Broadway Ave Herald Road University Road 32nd Ave Pines Road SR 27 Broadway Ave University Road Bowdish Road Sprague Ave Barker Road Hodges Road RESIDENTIAL STREETS FROM TO Blake Road 16th Ave 12th Ave Pierce Road 37th Ave 32nd Ave Dyer Road Broadway Ave Sharp Road Pierce Road 32nd Ave 24th Ave Main Ave Mayhew Road Evergreen Road Drummund Street Montgomery Drive Jackson Drive 1st Ave Union Road Pines Road Calvin Road Wellesley Ave Olympic Ave Vercler Road Mission Ave Boone Ave Please note: Further investigation,testing and evaluation will be necessary to finalize these lists. 87 Fund:312 Capital Reserve Fund Spokane Valley 2016 Budget This fund was created in 2013 to be used to account for the accumulation of resources for yet to be determined capital projects. The initial source of funds was a 2013 General Fund transfer of$7,826,207 and this was followed with a 2014 General Fund transfer of$2,443,507 and 2015 General Fund transfer of$1,783,512. Projects approved by City Council from this funded thus far have included: • $21,139 for business route signage in 2013 • $57,601 for Balfour Park/Library site development • $261,993 for Appleway Landscaping • $2,320,000 for the City's share of the$15.3 million Sullivan Road West Bridge Replacement • $1,452,100 for Appleway Trail construction from University to Pines. Commitments to future projects include: • $1,166,723 towards construction of future sections of the Appleway Trail • $5,221,088 towards construction of a City Hall building • $700,000 towards a Barker Road/BNSF Grade Separation project. Future projects are yet to be determined. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget , Revenues Transfers in#001 $ 0 $ 7,826,207 $ 2,443,507 $ 1,783,512 $ 0 Developer Contribution 0 3,180 4,675 0 0 Investment Interest 0 0 0 0 0 Total revenues 0 7,829,387 2,448,182 1,783,512 0 Expenditures Business Route Singage 0 21,139 0 0 0 Balfour Park/Library site development 0 57,601 0 0 0 Transfers out#303-Appleway Landscapi. 0 8,348 253,645 0 0 Transfers out#303-Pines Rd Underpass 0 0 0 0 500,000 Transfers out#303-Sullivan Rd W Bridgc 0 0 443,688 500,000 1,010,509 Transfers out#309-Appleway Trail-Univ 0 0 911,433 540,600 0 Transfers out#309-Appleway Trail-Pine 0 0 0 14,050 14,050 Transfers out#310-City Hall 0 0 0 58,324 0 Transfers out#313-City Hall 0 0 0 5,162,764 0 Total expenditures 0 87,088 1,608,766 6,275,738 1,524,559 Revenues over(under)expenditures 0 7,742,299 839,416 (4,492,226) (1,524,559) Beginning fund balance 0 0 7,742,299 8,581,715 4,089,489 Ending fund balance $ 0 $ 7,742,299 $ 8,581,715 $ 4,089,489 $ 2,564,930 88 Fund:313 City Hall Construction Fund Spokane Valley 2016 Budget This fund was created to account for the architectural and contruction costs for a City Hall building.The building is anticipated to be completed in 2017.Funding for the construction will come from a combination of an interfund transfer from the Capital Reserve Fund#312 in the amount of$5,162,764 and bond proceeds in the amount of approximately$8.1 million. Land for the building site was acquired in 2015 through a purchase in the Civic Facilities Fund#310. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual _ Budget Budget Revenues Transfers in#312 $ 0 $ 0 $ 0 $ 5,162,764 $ 0 Investment Interest 0 0 0 0 0 Total revenues 0 0 0 5,162,764 0 Expenditures Capital Outlay-City Hall 0 0 0 702,400 294,400 Total expenditures 0 0 0 702,400 294,400 Revenues over(under)expenditures 0 0 0 4,460,364 (294,400) Beginning fund balance 0 0 0 0 4,460,364 Ending fund balance $ 0 $ 0 $ 0 $ 4,460,364 $ 4,165,964 89 Fund:402 Stormwater Management Fund Spokane Valley 2016 Budget The purpose of the Stormwater Management Fund is to account for the funds related to the maintenance,improvement and expansion of the City's storm sewer system. The revenue for this fund originates from astormwater fee collected on behalf of the City by Spokane County. The annual fee is$21 for each single family unit and$21 per each 3,160 square feet of impermvious surface for all other properties. Each increment of 3,160 square feet is know as an equivalent residential unit(ERU). Accomplishments for 2015 •Completed the Broadway,Havana to Fancher SD Project. •Completed small works projects and funded maintenance repair and replacement projects at 16 locations. •Continued support of stormwater improvements with the City's Pavement Preservation Program. •Led/completed 1st phase of the EW Effectiveness Study project with 23 other cities/counties to meet permit req's. •Brought the Spokane Valley Regional Decant Facility online and started transfer operations for storm drain debris. •Continued meeting requirements under the new municipal stormwater permit effective August 1,2014. Goals for 2016 •Complete small works projects per the Stormwater CIP. •Complete design and construction of stormwater capital projects in the current CIP. •Evaluate current Stormwater Management Program Plan and propose updates to meet new permit requirements. •Work with State agencies to provide canopy for Spokane Valley Regional Decant Facility for year round operations. •Continue lead/participate w/eastern Washington cities and counties to meet effectivness study requirements. •Coordinate public education and outreach for stormwater quality awareness with other area agencies. •Monitor the Spokane River Toxics Task Force and the Idaho Washington Aquifer Collaborative for stormwater impacts. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Engineer 1.0 1.0 1.0 1.0 1.0 Engineering Technician II 1.0 1.0 1.0 1.0 1.0 Assistant Engineer 1.0 1.0 1.0 1.0 1.0 Maintenance/Construction Inspector 1.5 1.5 1.5 1.15 1.15 Planning Grants Engineer 0.0 0.0 0.25 0.25 0.25 4.50 4.50 4.75 4.40 4.40 Interns 2.0 2.0 2.0 2.0 2.0 90 Fund:402 Stormwater Management Fund Spokane Valley 2016 Budget Recurring Activity I 2012 2013 2014 2015 2016 Revenues Actual Actual Actual Budget Budget StormwaterManagementfees $ 1,834,740 $ 1,869,081 $ 1,918,404 $ 1,880,000 $ 1,870,000 Investment Interest 2,601 1,992 1,342 1,500 1,500 Miscellaneous 57 _ 4,144 0 0 0 1,837,398 1,875,217 1,919,746 1,881,500 1,871,500 Expenditures Wages,Payroll Taxes&Benefits 373,824 429,853 347,503 488,101 514,132 Supplies 12,158 10,954 8,388 15,900 15,900 Services&Charges 1,014,818 1,169,168 985,446 1,097,468 1,124,683 Intergovernmental Services 24,610 25,726 204,256 27,000 67,000 Transfers out-#001 15,000 13,400 13,400 13,400 13,400 Transfers out-#501 1,567 0 0 0 0 1,441,977 1,649,101 1,558,993 1,641,869 1,735,115 Recurring revenues over(under) Recurring Expenditures 395,421 226,116 360,753 239,631 136,385 Nonrecurring Activity Revenues Grant proceeds 64,838 233,165 76,097 389,674 0 Miscellaneous 0 0 0 0 0 Transfers in-#403 0 0 0 120,000 0 64,838 233,165 76,097 509,674 0 Expenditures Capital-Various Projects 32,571 834,941 103,307 891,340 505,000 Transfers out-#303 113,014 423 0 0 0 Transfers out-#403(DOE for Decant Pit 0 0 50,125 0 0 Transfers out-#403 0 0 120,000 0 0 Transfers out-#501(new pickup) 0 0 25,843 0 0 145,585 835,364 299,275 891,340 505,000 Nonrecurring revenues over(under) Nonrecurring Expenditures (80,747) (602,199) (223,178) _ (381,666) (505,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures $ 314,674 $ (376,083) $ 137,575 (142,035) (368,615) Beginning working capital 1,933,564 1,791,529 Ending working capital $ 1,791,529 $ 1,422,914 91 Fund:403 Aquifer Protection Area Fund Spokane Valley 2016 Budget In 1985 voters of Spokane County approved a ballot proposition to create the Spokane Aquifer Protection Area(APA) as well as corresponding aquifer protection area fees with both sunsetting December 31,2005. Boundaries of the APA included portions of unincorporated areas(including what is now Spokane Valley)and the cities of Liberty Lake, Millwood and Spokane. In 2004 the City of Spokane Valley approved a resolution authorizing the inclusion of its municipal boundaries within the APA. The APA program was subsequently reauthorized through 2025 with voter approval. All fees are collected by Spokane County and include: • An annual fee of$15 per household for the withdraw)of water from properties within the APA. • An annual fee of$15 per household for on-site sewage disposal within the APA. • For commercial properties an annual fee ranging from$15 to$960 depending upon water meter size. In 2004 the City of Spokane Valley(City)entered into an interlocal agreement with Spokane County(County)that authorized the County to collect and retain APA fees through 2010 for a variety of projects including: • up to$100,000 annually through 2010 to the Spokane Regional Health District to provide for data base management related to monitoriing of septic tanks and their potential impact on water quality in the Spokane Valley Rathdrum Praire Aquifer. • a septic tank elimination program(STEP)designed to replace septic tanks with sanitary sewer systems. In the 2004 interlocal agreement the City and County also agreed that for the years 2011 through 2025 the APA fees remaining after the payment of reasonable administration and billing fees incurred by the County would be distributed annually between the County,City and City of Spokane on a proportional basis relative to the amount generated in unincorporated areas,the City and City of Spokane. The fees collected on the City's behalf by Spokane County are expended entirely on stormwater related projects that designed to protect the aquifer. These fees plus grant monies received from a number of granting agencies finance a variety of capital projects. Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Spokane County $ 510,934 $ 484,343 $ 461,828 $ 500,000 $ 500,000 Grant DOE-Decant Facility 0 203,609 550,710 0 0 Grant DOT-Decant Facility 0 85,221 100,000 0 0 Grant DOE-Broadway Retrofits 0 0 49,203 1,260,000 0 Grant DOE-Sprague UIC Elimination 96,291 570,331 0 0 1,500,000 Miscellaneous 2 150 0 0 0 Transfers in-#402(Stormwater) 0 0 170,125 0 0 Total Revenues 607,227 1,343,654 1,331,866 1,760,000 2,000,000 Expenditures Broadway Retrofit 0 0 41,114 1,080,000 0 Construction-Decant Facility 0 299,319 893,514 0 0 SE Yardley Retrofits 0 7,109 728,565 0 0 Sprague Park to University LID 0 0 0 0 2,000,000 Sprague Swales 0 0 510 0 0 Transfers out-#402 0 0 0 120,000 0 Total Expenditures 0 306,428 1,663,703 1,200,000 2,000,000 Revenues over(under)expenditures $ 607,227 $ 1,037,226 $ (331,837) 560,000 0 Beginning working capital 1,773 561,773 Ending working capital $ 561,773 $ 561,773 92 Fund:501 Equipment Rental&Replacement Fund Spokane Valley 2016 Budget The Equipment Rental&Replacement Fund(ER&R)is an Internal Service Fund that is designed to provide the funds necessary to purchase new vehicles and equipment at predetermined life cycles. This fund operates by charging each City department a monthly rental rate for the vehicles they use. The fee is based upon the estimated useful life of the vehicle and its replacement cost. The theory behind this program is that it allows City departments to budget vehicle replacement costs as a reocurring expense over an extended period of time rather than as an intermittent capital expense that may be difficult to afford in any single year. In the event a City department requires an additional vehicle that actually adds to the fleet rather than simply replaces an existing vehicle,then that department must budget for the initial purchase price and transfer the necessary funds to the ER&R Fund to make the acquisition. In subsequent years the department will then begin paying a replacement fee spread out over the estimated useful life of the new vehicle. The 2016 Budget includes an appropriation of$330,000 to replace one small pickup in the Community and Economic Development Department with one small SUV,one car and one small truck for the Parks and Recreation Department, one truck split half-time between the Street Fund and the Stormwater Management Fund,and one tandem snow plow. Source of financing for the vehicles will be Fund#501 fund balance which exists as a result of previous years payments by General Fund for this purpose. Snow Plow Replacment Program The snowplow fleet currently consists of nine plow trucks.Six of the trucks are equipped with sanders and three of the trucks are equipped with 1,000-gallon tanks for placement of liquid deicer.Over the past five years the City has continued to improve the snow removal operations and has updated the snow plan accordingly.These improvements in snow operations have dictated that operating nine plows is a very efficient way to remove snow from the arterial and hillside roadways.Operating nine plows allows the performance of a full city arterial and designated hillsides plow in approximately 12 hours. In the future new plows will be purchased to replace the aging fleet as noted below and older plows will serve as backups and eventually be retired from the fleet beginning in 2022.The recommended snow plow fleet consists of eleven plows with two serving as backup plows.The two backup plows ensure that arterial roadways and hillside priority roadways can be cleared of snow per the snow plan.Having backup plows provides the City with additional plows that can be deployed in case of a mechanical breakdown or an accident during a winter storm event. The 2016 Budget includes the purchase of a tandem axle plow truck with a sander.A tandem axle plow is critical for plowing the hillside areas as the lead truck.This purchase will complete the need for a second tandem axle plow for efficient and effective hillside plowing.This truck would also be equipped with a dump box so it could be utilized to haul material and trailer the backhoe during the spring,summer and fall months.The Snowplow Equipment Rental and Replacement Fund balance is currently$325,000.A new tandem axle plow with a dump box and sander will cost approximately$225,000.Future replacements will be single axle plows with an estimated cost of$200,000 per plow. Snow Plow Fleet Truck# Model Year YR Acquired Age at Retirement Replacement Yr Notes 206 1996 2009 26 2022 207 1997 2009 28 2025 204 1995 2009 33 2028 203 1995 2009 36 2031 205 1996 2009 38 2034 Existing Fleet (9)Snow Plows 208 1997 2009 40 2037 209 1998 2011 42 2040 211 2000 2012 43 2043 210 2010 2011 36 2046 212 2016 2016 33 2049 Truck 206 becomes a backup 213 2019 2019 33 2052 Truck 207 becomes a backup 214 2022 2022 33 2055 Truck 204 becomes a backup/206 is retired 215 2025 2025 33 2058 Truck 203 becomes a backup/207 is retired 216 2028 2028 33 2061 Truck 205 becomes a backup/204 is retired 217 2031 2031 33 2064 Truck 208 becomes a backup/203 is retired 218 2034 2034 33 2067 Truck 209 becomes a backup/205 is retired 219 2037 2037 33 2070 Truck 211 becomes a backup/208 is retired 220 2040 2040 33 2073 Truck 210 becomes a backup/209 is retired 221 2043 2043 33 2076 Truck 212 becomes a backup/211 is retired 93 Fund:501 Equipment Rental&Replacement Fund Spokane Valley 2016 Budget Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Interfund Equip&Vehicle Lease $ 0 $ 177,744 $ 102,744 $ 35,544 $ 101,333 Transfers in-#101 (replacements) 119,344 0 25,849 0 0 Transfers in-#402(addtl'pickup) 0 0 25,843 0 0 Investment Interest 1,498 1,176 792 1,000 1,000 Total Revenues 120,842 178,920 155,228 36,544 102,333 Expenditures Computer replacement lease 0 0 0 0 0 Software/Hardware replacement 0 0 0 0 0 Snow plow replacement 0 0 0 0 225,000 Vehicle Replacement 0 48,750 9,799 30,000 105,000 Total Expenditures 0 48,750 9,799 30,000 330,000 Revenues over(under)expenditures $ 120,842 $ 130,170 145,429 6,544 (227,667) Beginning working capital 1,090,365 1,235,794 1,242,338 Ending working capital _$ 1,235,794 $ 1,242,338 _$ 1,014,671 94 Fund:502 Risk Management Fund Spokane Valley 2016 Budget The City of Spokane Valley is exposed to risks of loss related to a number of sources including tort;theft of,damage to, and destruction of assets;errors and ommissions;injuries to employees;natural disasters;and unemployment claims filed by former employees through the State of Washington. The Risk Management Fund was established to account for all such related revenues and expenses. Revenues for this fund are comprised almost entirely from an annual transfer of money from the General Fund and the single largest expense is typically the insurance premium the City pays to our insurance provider,the Washington Cities Insurance Authority(WCIA). Budget Summary 2012 2013 2014 2015 2016 Actual Actual Actual Budget Budget Revenues Transfers in-#001 $ 319,000 $ 319,000 $ 325,000 $ 325,000 $ 325,000 Investment Interest 9 7 5 0 0 Total Revenues 319,009 319,007 325,005 325,000 325,000 Expenditures Auto&Property insurance 255,185 263,922 272,435 325,000 325,000 Unemployment Claims 10,340 14,126 8,532 0 0 Miscellaneous 862 0 0 0 0 Total Expenditures 266,387 278,048 280,967 325,000 325,000 Revenues over(under)expenditures 52,622 40,959 44,038 0 0 Beginning working capital 30,590 83,212 124,171 168,209 168,209 Ending working capital $ 83,212 $ 124,171 $ 168,209 $ 168,209 $ 168,209 95 `d C O O O O 0 0 O O O O O 00 En CL•0 a- v Nr- EP- d • ❑ c o O 0 0 n U),-Ul v.0 V 0 0 0 0 0 CO 0 0 0 0 0 00 00 0 CO N n,-N V N C)O N C)0 O O O CO 0 0 U),-CO V CO CO.N n n O O O O N O O O O N C n 0 V N V I,:C r:O U)O r• 0 0 A O m m C)CO U)V CO V 0 O m OI N N C) V N U) co co co n ' IO° m C) N o C0.5 C 0 ' 0 0 0 0 0 0 0 0 O O O 8 O 6 0 E OOo h o 0 # d 0 N CI NC) IS re W 0 —. _ _ — — Cd 0 0 0 0 0 0 0 0 O OO 0 0 2g5 [,.., y O O OO OO 4 &2< • Na: h y m 0 0 0 0 0 0 0 0 00 : 0 0 0 N ° E 0 O O 0 0 Ern 0y0 a O C N h iii d E O O O O O 0 00 00 O 0 o O0 0 M. 0 en-• m 2 m rn m #U S N • N NN C • ° O ° uo 0 - 0 0 0 0': 8 O O to N O O O O O N 9 d Z N 22 U) O U) O 0 • U) jr) N d 0 O o r U U.# U O U1 U ) O U vo K— 0 0 0 0 0 0 0 0 0 0 0 o a • d j _ o O p Eii E Z c o 0 a d Cj C): C) L a — — — — — — — —• >, _ N O O O 0 0000 0 0 0 0 0 0 00 O C)Y«0 0 U)0 0 0 O C 3U) uav• 2 nryallo n N N CO W t. 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Q 11 U J'Ip 01 C W 0-9 j N C.m D❑ S•C y , 0 0 N 2 O a y d U y g 0 a a. j dli N At U2iq LLa U wco CDMaol'N2Uom m U NUama< E a = U 30> `m E IoiO � rn d C7 co m N m to n o N m s d o W N V V N IO N U)O O N N N )' q 0 0) C 0 N a fn N N N N N a a V C) Q w O O n 0 0 0 0 0 0 0 0 0 0 0 0 0 O) N N 0 U ❑ O O O O C0'! ii V .p to O CITY OF SPOKANE VALLEY,WA Full Time Equivalent Employees Difference from Adopted Proposed 2015 to 2016 2010 2011 2012 I 2013 2014 2015 2016 +(-) #001 -General Fund City Manager/City Clerk 5 5 5 5 5 5 5 0.000 Legal 3 3 3 3 3 3 3 0.000 Deputy City Manager 8 7 7 6 6 6 6 0.000 Finance 12 11 11 10.75 11.75 11.75 11.75 0.000 Human Resources 2 2 2 2 2 2 2 0.000 Public Works 7.5 7.5 7 7 7.375 7.375 7.375 0.000 CED-Administration 3 3 3 2 2 2 2 0.000 CED-Economic Development 0 0 0 0 0 2.5 2.65 0.150 (1) CED-Development Services 0 0 0 0 0 11 11 0.000 CED-Engineering 8 6 6 8 7 0 0 0.000 CED-Planning 9 8.5 8.5 8 8 0 0 0.000 CED-Building 14.75 12.75 12.75 11.5 12.5 14 14 0.000 Parks&Rec-Admin 2 2 2 2 2 2 2 0.000 Parks&Rec-Recreation 1 1 1 1 1 1 1 0.000 Parks&Rec-Senior Cntr 1 1 1 1 1 1 1 0.000 Parks&Rec-CenterPlace 7 5 5 5 5 5 5 0.000 Total General Fund 83.25 74.75 74.25 72.25 73.625 73.625 73.775 0.150 #101 -Street Fund 5 4.5 5 5 5.375 5.725 5.725 0.000 #303-Street Capital Project Fund 3.5 3.5 3.5 3.5 3.5 3.5 3.5 0.000 #402-Storm Water Fund 4 4.5 4.5 4.5 4.75 4.4 4.4 0.000 Total FTEs 95.75 87.25 87.25 85.25 87.25 87.25 87.400 0.150 (1) Reflects increase of time by the part-time employee in Economic Development from 0.5 to 0.65. 97 2015 Work Force Comparison The 31 Washington Communities with a Population of 30,000 to 100,000 CITY POPULATION FULL-TIME PART-TIME Bellingham 83,580 741 47 Yakima 93,220 681 18 Renton 98,470 634 13 Redmond 59,180 600 18 Olympia 51,020 540 18 Kirkland 83,460 537 32 Richland 53,080 452 31 Auburn 75,545 418 1 Kennewick 78,290 352 4 Lynnwood 36,420 326 6 Pasco 68,240 317 1 Bremerton 39,410 301 17 Federal Way 90,760 296 10 Longview 37,130 289 8 Bothell 42,640 283 7 Puyallup 38,950 266 4 Lacey 46,020 254 4 Walla Walla 33,390 253 14 Marysville 64,140 249 9 Issaquah 33,330 235 8 Lakewood 58,400 208 8 Edmonds 40,490 198 12 Pullman 32,110 195 33 Mount Vernon 33,530 191 27 Wenatchee 33,230 166 4 Shoreline 54,500 127 11 Des Moines 30,100 117 10 Spokane Valley 93,340 86 2 Sammamish 49,980 77 5 Burien 48,810 56 7 University Place 31,720 45 5 AVERAGE 306 13 Source:Association of Washington Cities Survey: 2015 Participant Data-Cities and Towns 7/16/2015 98 Appendix A EMPLOYEE POSITION CLASSIFICATION MONTHLY SALARY SCHEDULE Salary Schedule Effective January 1,2015 Position Title Grade 2015 Range City Manager Unclassified Deputy City Manager 21-22 8,888.39 - 13,835.11 City Attorney 21 8,888.39 - 12,451.71 Community Development Director 21 8,888.39 - 12,451.71 Finance Director 21 8,888.39 - 12,451.71 Public Works Director 21 8,888.39 - 12,451.71 Parks and Recreation Director 19 7,199.37 - 10,086.73 Human Resources Manager 18 6,480.26 - 9,077.61 Planning Manager 18 6,480.26 - 9,077.61 Building Official 18 6,480.26 - 9,077.61 Senior Engineer-Capital Projects, Development 18 6,480.26 - 9,077.61 Deputy City Attorney 18 6,480.26 - 9,077.61 Senior Engineer-Traffic, CIP Planning/Grants 17 5,831.91 - 8,169.51 Accounting Manager 17 5,831.91 - 8,169.51 City Clerk 16 5,248.20 - 7,352.09 Engineer 16 5,248.20 - 7,352.09 Senior Plans Examiner 16 5,248.20 - 7,352.09 Public Works Superintendent 16 5,248.20 - 7,352.09 Senior Administrative Analyst 16 5,248.20 - 7,352.09 Senior Planner 16 5,248.20 - 7,352.09 Development Services Coordinator 16 5,248.20 7,352.09 Associate Planner 15 4,724.02 - 6,617.33 CenterPlace Coordinator 15 4,724.02 - 6,617.33 Assistant Engineer 15 4,724.02 - 6,617.33 IT Specialist 15 4,724.02 - 6,617.33 Engineering Technician II 15 4,724.02 - 6,617.33 GIS/Database Administrator 15 4,724.02 - 6,617.33 Human Resource Analyst 14 4,251.88 - 5,956.06 Accountant/Budget Analyst 14 4,251.88 - 5,956.06 Administrative Analyst 14 4,251.88 - 5,956.06 Planner 14 4,251.88 - 5,956.06 Building Inspector II 14 4,251.88 - 5,956.06 Plans Examiner 14 4,251.88 - 5,956.06 Public Information Officer 14 4,251.88 - 5,956.06 Engineering Technician I 14 4,251.88 - 5,956.06 Senior Permit Specialist 14 4,251.88 - 5,956.06 Maintenance/Construction Inspector 13-14 3,826.38 - 5,956.06 Recreation Coordinator 13-14 3,826.38 - 5,956.06 Customer Relations/Facilities Coordinator 13 3,826.38 - 5,360.23 Code Enforcement Officer 13 3,826.38 - 5,360.23 Building Inspector I 13 3,826.38 - 5,360.23 Planning Technician 13 3,826.38 - 5,360.23 Deputy City Clerk 12-13 3,445.00 - 5,360.23 Senior Center Specialist 12-13 3,445.00 - 5,360.23 Human Resources Technician 12-13 3,445.00 - 5,360.23 Permit Facilitator 12 3,445.00 - 4,824.10 Help Desk Technician 12 3,445.00 - 4,824.10 Administrative Assistant 11-12 3,099.55 - 4,824.10 Permit Specialist 11-12 3,099.55 - 4,824.10 Accounting Technician 11-12 3,099.55 - 4,824.10 Maintenance Worker 11-12 3,099.55 - 4,824.10 Office Assistant II 10-11 2,789.41 - 4,341.90 Custodian 10 2,789.41 - 3,906.81 Office Assistant I 9-10 2,510.78 - 3,906.81 Note: Slight rounding differences may exist between the figures reflected on this page and the actual payroll rates computed by the Eden Payroll System. 99 CITY OF SPOKANE VALLEY,WA Glossary of Budget Terms Accrual Basis — A basis of accounting Capital Improvement — Expenditures in which revenues and expenditures are related to acquisition, expansion or recorded at the time they occur as rehabilitation of an element of the opposed to when cash is actually government's physical plant; sometimes received or spent. referred to as infrastructure. Appropriation — A legal authorization Capital Outlay — Fixed assets that have granted by the City Council to make general value of $5,000 or more and expenditures and to incur obligations for have a useful economic lifetime of more a specific purpose. than one year. Assessed Valuation — The valuation set Capital Project — Major construction, upon real estate and certain personal acquisition, or renovation activities property by the County Assessor as a which add value to government's basis for levying property taxes. physical assets or significantly increase their useful life, also called capital Authorized Positions — Employee improvements. positions, which are authorized in the adopted budget, to be filled during the Capital Projects Fund —A fund created year. to account for all resources and expenditures used for the acquisition of Bond — A long-term promise to repay a fixed assets except those financed by specified amount (the face amount of the enterprise funds. bond) on a particular date (the maturity date). The most common types of bonds Contingency — A budgetary reserve set are general obligation revenue bonds. aside for emergencies or unforeseen Bonds are primarily used to finance expenditures not otherwise budgeted. capital projects. Contractual Services — Services Budget—A plan of financial activity for rendered to a government by private a specified period of time (fiscal year or firms, individuals, or other governmental biennium) indicating all planned agencies. revenues and expenses for the budget period. Debt Service — Payment of interest and principal on borrowed money according Budget Message — The opening section to a predetermined payment schedule. of the budget that provides the City Council and the public with a general Department — The basic unit of service summary of the most important aspects responsibility, encompassing a broad of the budget, changes from the current mandate of related service and previous years, and the views and responsibilities. recommendations of the Mayor. 1oo Division — Can be a subunit of a that define accepted accounting department which encompasses a principles. substantial portion of the duties assigned to a department (e.g. Building Division GASB — The Governmental Accounting in the Planning and Community Standards Board, established in 1985, is Development Department). the current standard-setting board for governmental GAAP. Encumbrance — The commitment of appropriated funds to purchase an item General Fund—The principal operating or service. To encumber funds means to fund of the City used for general set aside or commit funds for a specified governmental operations. Taxes and future expenditure. fees that generally have no restriction on their use support it. Expense — Charges incurred (whether paid immediately or unpaid) for General Obligation (G.O.) Bonds — operations, maintenance, interest or This type of bond is backed by the full other charges. faith, credit and taxing power of the government issuing it. Face Value — The amount of principal that must be paid at maturity for a bond Indirect Cost—A cost necessary for the issue. functioning of the organization as a whole, but which cannot be identified Fiscal Year — A twelve-month period with a specific product, function or designated as the operating year for activity. accounting and budgeting purposes in an organization. Infrastructure — The physical assets of a government (e.g. streets, water, sewer, Full-time Equivalent Position (FTE) — public buildings, and parks). A full-time or part-time position converted to the decimal equivalent of a Interfund Transfers — The movement full-time position based on 2,080 hours of monies between funds of the same per year. For example, a part-time governmental entity. person working 20 hours per week would be equivalent of 0.5 of a full-time Levy — To impose taxes for the support position. of the governmental activities. Fund—A fiscal entity with revenues and Long-term Debt— Debt with a maturity expenses that are segregated for the of more than one year after the date of purpose of carrying out a specific issuance. purpose or activity. Mission Statement—A broad statement GAAP — Generally Accepted of the intended accomplishment or basic Accounting Principles. Uniform purpose of a program. minimum standards for financial accounting and recording, encompassing Modified Accrual Accounting — A the conventions, rules, and procedures basis of accounting in which 101 expenditures are accrued but revenues Revenue — Sources of income financing are accounted for when they become the operations of government. measurable and available. Since this type of accounting basis is a Taxes—Compulsory charges levied by a conservative financial approach, it is government for the purpose of financing recommended as the standard for most services performed for the common governmental funds. benefit. This term does not include specific charges made against particular Operating Budget — The portion of the persons or property for current or budget that pertains to daily operations permanent benefits such as special that provide basic governmental assessments. Neither does the term services. include charges for services rendered only to those who pay, for example, Ordinance — A formal legislative sewer service charges. enactment by the City Council. If it is not in conflict with any higher form of Unreserved Fund Balance — The law, such as a statute or constitutional portion of a fund's balance that is not provision, it has the full force and effect restricted for a specific purpose and is of law within the boundaries of the available for general appropriation. municipality to which it applies. User Charges — The payment of a fee Program — The smallest organization for direct receipt of a public service by that delivers a specific set of services. A the party who benefits from the service. program may be an entire department; or if a department encompasses Vision Statement — A short statement significantly diverse responsibilities or that conveys the big picture of the large work forces, a single department organization. It is general in scope, not may be divided into two or more restricting. It answers the question programs. "Why?" Reserve — An account used to either set aside budgeted revenues that are not required for expenditure in the current budget year or to earmark revenues for a specific future purpose. Resolution — A special or temporary order of a legislative body—an order of a legislative body requiring less legal formality than an ordinance or statute. Resources—Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. 102