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Ordinance 16-017 Adopts 2017 Budget CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO. 16-017 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING A BUDGET FOR THE PERIOD JANUARY 1, 2017 THROUGH DECEMBER 31, 2017; 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, 2017 and ending December 31, 2017; and Wl-IEREAS, 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 September 13 and October 11, 2016. 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 27, 2016; and WHEREAS, the City Council desires to adopt the 2017 budget, including all allowances, and an appropriation for each fund; and WHEREAS, the City of Spokane Valley property tax levy in 2016 for collection in 2017, will be $11,489,517.62, which represents a 0% increase in the 2017 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 2017 Budget. The budget for the City of Spokane Valley for the year 2017 is adopted at the fund level. The final budget for 2017 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 16-017 Adopting 2017 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 23,302,835 41,993,425 65,296,260 42,443,672 22,852,588 Street Fund 101 1,468,077 4,403,168 5,871,245 4,851,244 1,020,001 Paths&Trails Fund 103 37,254 8,600 45,854 0 45,854 HoteliMotel Tax-Tourism Facilities Fund 104 559,347 377,000 936,347 0 936,347 Hotel/Motel Tax Fund 105 199,001 580,500 779,501 634,000 145,501 Solid Waste 106 42,874 151,800 194,674 151,800 42,874 PEG Fund 107 236,682 80,000 316,682 262,500 54,182 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,468,289 21,900 5,490,189 0 5,490,189 Winter Weather Reserve Fund 122 500,000 600 500,600 500,000 600 City Facilities Repair&Replacement 123 0 0 0 0 0 LTGO Bond Debt Service Fund 204 4,049 935,951 940,000 940,000 0 REET 1 Capital Projects Fund 301 1,383,899 801,700 2,185,599 1,456,986 728,613 REET 2 Capital Projects Fund 302 1,897,795 801,700 2,699,495 1,913,134 786,361 Street Capital Projects 303 75,538 7,166,649 7,242,187 7,166,649 75,538 Park Capital Projects Fund 309 10,561 3,939,982 3,950,543 3,904,182 46,361 Civic Facilities Capital Projects Fund 310 1,329,214 1,200 1,330,414 490,500 839,914 Pavement Preservation Fund 311 2,419,741 2,682,300 5,102,041 3,050,000 2,052,041 Capital Reserve Fund 312 3,899,601 1,000 3,900,601 2,321,915 1,578,686 City Hall Construction Fund 313 5,344,219 0 5,344,219 5,344,219 0 Railroad Grade Separation Projects Fund 314 0 1,970,000 1,970,000 1,970,000 0 48,478,976 65,917,475 114,396,451 77,400,801 36,995,650 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Storniwater Management Fund 402 1,876,010 2,072,500 3,948,510 2,459,072 1,489,438 Aquifer Protection Area Fund 403 896,660 460,000 1,356,660 530,000 826,660 Equipment Rental&Replacement Fund 501 1,025,997 185,029 1,211,026 0 1,211,026 Risk Management Fund 502 194,383 350,000 544,383 350,000 194,383 3,993,050 3,067,529 7,060,579 3,339,072 3,721,507 Total of all Funds 52,472,026 68,985,004 121,457,030 80,739,873 40,717,157 The total balance of all funds appropriated for 2017 is $80,739,873. 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 16-017 Adopting 2017 Budget Page 2 of 3 PASSED by the City Council this 8th day of November, P 1 6. . „----, w ,Frakr4p.-- , _ do L.R. Higgins, a2eis ATTES : C, /A-1---5-/K..2 ,a-` 44-11 411-52---- Christine Bainbridge, City Clerk Approved As To Form: il) Office o t le City/A10 ney • Date of Publication: // "/ __& Effective Date: // - 3 __ (),/ Ordinance 16-017 Adopting 2017 Budget Page 3 of 3 S4o14sm ane a ey 2017 Annual Budget ' kn .. .i r' 4a7 '! 'gyp i < "'_. - :., ',yl T .Ank„ ..c)0 - 4 .A.1,?y., , • gi l'.. '."*-'7 ,'tii.„:*P Ait 141_ Y 3 Iasi mss Iiii:%, ,c.1." „,.,-::::. mii. " • " _f ` +P fid^ ..ate ... ; i '-'11-. -, .k ♦**********••••••••••••••••••••••••••••••••••♦ • City of Spokane Valley, Washington • • Annual Budget • � For •the Fiscal Year � i January 1 through December 31, 2017 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." • • • • • • • • • • • • • • • • • • • • • • • • • CITY OF o .-- -'4\4\ ,p Kane 4,,•••.. Valley ® This page left intentionally blank. Table of Contents City of Spokane Valley, WA Spokane County January 1,2017 through December 31,2017 Summary of Councilmembers III City Manager's Budget Message 1 Finance Director's Message -About the 2017 Budget and Budget Development Process 9 Budget Summary 25-40 Revenues by Fund and Type 41-48 Expenditures by Fund and Department 49-52 General Fund Department Changes from 2016 to 2017 53-55 #001-General Fund-Expenditures by Department by Type City Council 56 City Manager 57 Public Safety 59 Deputy City Manager 62 Finance 63 Human Resources 64 Public Works 65 City Hall Operations and Maintenance 66 Community&Economic Development 67 Parks&Recreation 71 General Government 77 Special Revenue Funds #101 -Street Fund 79 #103 -Paths&Trails Fund 81 #104-Hotel/Motel Tax—Tourism Facilities Fund 82 #105 -Hotel/Motel Tax Fund 82 #106- Solid Waste Fund 83 #107 -PEG Fund 84 #120 - CenterPlace Operating Reserve Fund 85 #121 - Service Level Stabilization Reserve Fund 85 #122 -Winter Weather Reserve Fund 86 #123 -Civic Facility Replacement Fund 86 1 City of Spokane Valley 2017 Budget Debt Service Funds #204- Limited Tax General Obligation(LTGO)Fund 87 Capital Projects Funds #301 -REET 1 Capital Projects Fund 88 #302 -REET 2 Capital Projects Fund 89 #303 - Street Capital Projects Fund 90 #309-Parks Capital Projects Fund 92 #310-Civic Facilities Capital Projects Fund 93 #311 -Pavement Preservation Fund 94 #312 -Capital Reserve Fund 97 #313 -City Hall Construction Fund 98 #314—Railroad Grade Separation Projects Fund 99 Enterprise Funds #402- Stormwater Management Fund 100 #403 -Aquifer Protection Area Fund 102 Internal Service Funds #501 -Equipment Rental&Replacement Fund 103 #502 -Risk Management Fund 105 Total of Capital Expenditures for 2017 106 FTE Count by Year—2011 through 2017 107 Work Force Comparison 108 Appendix A,Employee Position Classification and Salary Schedule 109 Glossary of Budget Terms 110 ♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦••••••••••••••••••♦♦♦♦♦••••••♦♦ • • I • d 4 i h ,i' •• y '"rI ' , • • f-,''9.• I N` • • City Council Members • •s Rod Higgins, Mayor s • Position#1 ♦ s Arne Woodard, Deputy Mayor s s• Position#3 s s Caleb Collier Ed Pace s s• Position #2 Position#4 s s Pam Haley Sam Wood s s• Position #5 Position#6 • s Michael Munch s • Position #7 ♦ •s Staff s s• Mark Calhoun, Acting City Manager s s Chelsie Taylor, Finance Director s s John Hohman, Community and Economic Development Director s s Mike Stone, Parks & Recreation Director• s s• Eric Guth, Public Works Director s s Cary Driskell, City Attorney s s Christine Bainbridge, City Clerk s ♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦ CITY OF — pokane ...... vValley ° This page left intentionally blank. SCITY OF po kane Valley® Y City Manager's Budget Message 2017 Annual Budget Dear Citizens, Mayor and City Council of Spokane Valley: Sound Financial Position It is with pleasure that I present the attached 2017 Budget for the City of Spokane Valley. The City remains financially strong and continues to benefit from a history of prudent financial decisions that have been made since our 2003 incorporation. Consistently 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 an excellent example of how a City provides key services to the community while holding down taxes, fees and other charges. Additionally, 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 chief budget priorities are public safety, pavement preservation, transportation and infrastructure (including railroad grade separations) and economic development. Ensuring that we've committed adequate resources to these activities accounts for much of the effort that staff collectively dedicates to the annual development of both our Business Plan and this budget document. We recognize that to ensure continued financial stability, it is imperative that recurring annual revenues be greater than or equal to recurring annual expenditures and this goal has again been achieved in the 2017 General Fund Budget. 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 each phase of the Appleway Trail project, Sullivan Road West Bridge Replacement project, Appleway road landscaping, a cash "down payment" for construction of a new City Hall and beginning to set money aside for future railroad grade separation projects. 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. 1 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 2.35% of its total debt capacity, and more importantly, only 11.74% of non-voted bond capacity. This reflects an exceptionally low debt burden. 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. Adopt a General Fund Budget with recurring revenues equal to, or greater than recurring expenditures. 2. Maintain a minimum General Fund Ending Balance of at least 50% of recurring expenditures, which is the equivalent of six months of general fund operations. 3. If necessary, utilize the Service Level Stabilization Reserve Fund ($5.5 million) to maintain ending fund balance minimum. 4. Commitment to the strategy the Service Level Stabilization Reserve Fund will not reduce below $3.3 million (60% of$5.5 million). 5. Maintain the 2017 property tax assessment the same as 2016 with the exception of new construction. As in the previous seven years, the City will forego the one-percent annual increase to property tax allowable by RCW 84.52.050. We anticipate this will result in a levy of$11,489,500 plus estimated new construction of$125,000 for a total levy of$11,614,500. The allowable potential increase will be banked for future use as provided by law. This effectively makes the eighth year in a row that we have not increased our City property tax assessment. 6. 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. 2017 Budget Highlights Moderate Growth in Recurring General Fund Expenditures: Investing in essential core services identified by the Council and community establishes the baseline costs we have included in this budget. Similar to the trend experienced in most jurisdictions, we find that the cost of providing these services typically increases at a faster rate than the moderate growth we see in the underlying tax revenues that support essential core services. With that said however, City staff have met the challenge posed by Council to prepare a recurring General Fund budget with no greater than 1% growth, and in fact, the proposed 2017 Budget reflects expenditure growth of just 0.87% while at the same time maintaining historic levels of service. Public Safety Costs: Over the years Council has consistently committed to the maintenance and at times enhancement of public safety service levels and this is again reflected in the 2017 Budget where public safety costs including law enforcement, courts and jail related services 2 total $24,950,372 which is an amount equal to 215% of anticipated property tax collections (= $24,950,372 / $11,614,500). City Hall Construction Project: Since incorporation in 2003 the City has leased City Hall space from Northwest Christian Schools and over that time frame the City, like many of our residents, has debated whether we were better off to continue renting space or owning our own home. In 2015, the City made the decision to construct a new City Hall at a then estimated cost of$14.4 million. Through the balance of 2015 and into 2016 the City acquired land, contracted with an architect for design services, and finally in June 2016 began construction. With all costs for the facility finally committed, we now know the actual cost will be $14.15 million or $250,000 less than our initial target. We are financing the project with a combination of$6.30 million in cash we set aside for this project and $7.85 million in net LTGO bond proceeds. Repayment of the bonds will take place over the 30-year period of 2016 through 2045 at a fixed average annual payment of$399,888 which is $34,712 less per year than the City's current annual lease payment of$434,600. We recognize that occupying a building we own will result in a number of costs we haven't historically borne as a tenant. This will include a variety of facility maintenance expenses including the possibility of hiring an additional employee (more fully articulated in the following discussion). In acknowledgment of this, the 2017 General Fund Recurring Budget includes a new department titled "City Hall Operations and Maintenance" that will account for the variety of costs we anticipate we will incur. The budget amount of$303,918 is included in the budget and is part of the 0.87% increase noted above. Staffing Levels: Staffing levels in 2017 are currently anticipated to increase by 1.0 full-time equivalent employee (FTE) to 88.4 FTEs from the 87.4 FTEs included in the 2016 Budget. The addition of the single FTE is directly related to the fact that in 2017 we will be in a City Hall structure that we own and operate as opposed to the space we have leased from Northwest Christian Schools since the City's incorporation in 2003. While in the leased space, we have been the tenant and relied upon the lessor/landlord to address all facility maintenance issues including snow removal from parking lots and sidewalks;janitorial services; heating and cooling system maintenance and repairs; grounds maintenance; and general facility maintenance. Once in our own facility we will be responsible for all of these services, so between now and our anticipated September 2017 occupancy we will need to determine whether we can best address our needs by either hiring an employee or contracting out the variety of services. Beyond maintenance at City Hall we believe this position could also be utilized at the City's Police Precinct, CenterPlace and our maintenance shop. At this point we consider the expenditure appropriation as a "holding-place" for the necessary budgetary authority but rest assured we will hire an additional employee only if we believe we can keep them meaningfully engaged in meeting the City's maintenance needs. Taking into consideration that 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. Spokane Valley staff levels average about one employee for every 1,065 citizens while comparable cities in the State of Washington with populations between 30,000 and 100,000 average one employee for every 262 citizens. While the survey is not scientific, 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 and 3 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. Pavement Preservation Fund: Beginning in 2012, the City initiated spending of general fund, special revenue fund and capital project fund revenues and reserves for the purpose of financing our street preservation efforts. In 2017, our citizens will again see an aggressive program of repaving our roadways. Some may question paving roads that "don't look so bad" but 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 treatments such as crack sealing or grinding and repaving. This is why the City of Spokane Valley has committed critical financial resources to the preservation of our transportation infrastructure. We hope you are as proud of our fine road system as we are! For 2017, projected expenditures for preservation are $3,000,000 and we will pay for this with a combination of$340,800 in grants, $367,700 in Pavement Preservation Fund #311 reserves and $2,341,500 in transfers from other City funds consisting of: • $953,200 from the General Fund • $ 67,342 from Street O&M Fund #101 • $660,479 from REET 1 Capital Projects Fund #301 • $660,479 from REET 2 Capital Projects Fund #302 While Pavement Preservation is one of our highest service and budget priorities we find that sustaining historic levels of service is becoming more of a challenge with each passing year. The following section titled "Challenges" articulates the issues we are currently facing. Challenges Beyond the annual challenge of balancing the General Fund budget, the City of Spokane Valley has a number of on-going financial challenges. 1. Declining revenues in Street O&M Fund #101 that will impact our future ability to deliver historic service levels This Fund depends upon a combination of gas and telephone tax receipts. • Because the gas tax is a flat amount per gallon, and because each generation of newer vehicles get better gas mileage, we find our gas tax revenues have recently hovered somewhere between either flat or declining. Due to the State Legislature's increase in the gas tax we are seeing a bit of an increase in 2016 and this is projected to continue into 2017. • The 6% telephone utility tax generated $3.1 million in the first year of implementation in 2009. Since that time however we have experienced a steady decline and at this point are projecting 2017 revenues of just $2,200,000. 2. Balancing the cost of pavement preservation against other transportation and infrastructure needs • Pavement preservation has historically been financed from a combination of sources including: o General Fund dollars, o Street Fund money, o real estate excise tax (REET) receipts, 4 o grants, and o Civic Facility Replacement Fund #123 (Fund #123) reserves that were dedicated towards this purpose. Because Fund #123 reserves will be fully depleted in 2016, beginning in 2017 the City will be forced to dedicate more REET receipts towards pavement preservation if we wish to maintain historic levels of funding. • Street construction and reconstruction projects are typically financed through a combination of state and federal grants plus a City match that normally comes from REET receipts. The more we apply REET dollars towards pavement preservation projects, the less able we are to leverage this revenue source towards street construction and reconstruction projects. If one assumes we are able to obtain street construction grants requiring a 20% City match, then every $1 of REET money we set aside for this purpose leverages a $5 project. 3. Railroad Grade Separation and Quiet Zone Proiects (overpasses and underpasses) Bridging the Valley is a proposal to separate vehicle traffic from train traffic in the 42 mile corridor between Spokane and Athol, ID. The separation of railroad and roadway grades in this corridor is intended to promote future economic growth, traffic movement, traffic safety, aquifer protection in the event of an oil spill, and train whistle noise abatement. The underlying study outlined the need for a grade separation at four locations in Spokane Valley including: • Barker and Trent Road Overpass (estimated cost of$36.0 million), • Pines and Trent Underpass (estimated cost of$19.8 million), • Sullivan Road Overpass improvements (estimated cost of$16.1 million), and • Park Road Overpass (estimated cost of$19.0 million) Because grade separation projects are exceptionally expensive endeavors (totaling $90.9 million) and largely beyond our ability to finance through existing sources of internal revenue, the City has pursued grant funding from both the Federal and State Government over the past several years. We anticipate this is a discussion that will continue well into the future. 4. Grants and Declining Matching Funds City staff actively pursue funding commitments from other sources to help pay the cost of needed capital improvements related to pavement preservation; transportation including street construction and reconstruction; bridges; stormwater facilities; parks that benefit the community; and railroad grade separation projects. In 2017, a total of$23.58 million is budgeted to address capital projects and of this amount we anticipate $8.04 million (or 34.1%) of these costs will be offset with grant revenues. This figure is quite low in comparison to previous years and this is largely due to the City Hall project which is being financed with a combination of cash we set aside for this project and LTGO bond proceeds. If we exclude the $5.34 million budgeted for the City Hall project in 2017, the remaining capital projects total $18.24 million, of which $8.04 million (or 44.1%) is offset by grant revenues. Following is a history of the percentage of capital projects we have been able to cover with grant revenues: • 2017 Budget = 44.1% • 2016 Budget = 56.6% • 2015 Budget = 66.2% • 2014 Budget = 70.2% • 2013 Budget = 83.0% • 2012 Budget = 65.0% • 2011 Budget = 48.0% 5 Much of the deviation from year to year revolves around the amount of cash the City applies towards projects but we are always on the lookout for grant revenues to offset our costs. The City has historically maintained a fairly aggressive capital construction program and we will strive to do so in the future. The Budget for 2017 Strong but Guarded. Recognizing that fiscal health is at the core of providing good public services, 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 ongoing maintenance of financial reserves since incorporation has served its intended purpose of providing Spokane Valley the means to sustain critical public services during the turbulent economic conditions that began in 2008 and only recently subsided. The 2017 budget again 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 2017 and beyond. Future Concepts: The budget process is not static and Council, the citizens, and staff must collectively remain vigilant in our observance of economic trends that may impact current and future forecasts. Even as the 2017 Budget is adopted, we must remain mindful of the future economic opportunities and threats that might influence our multi-year forecast. Examples of potential impacts and adaptive future concepts are as follows: Retail Improvement Strategy - The City is actively engaged in growing our economy and in 2016 completed a retail improvement study. The analysis provides us with a better understanding of our retail trade area, retail demand, and demographics, and it is a tool that we believe we can leverage to attract businesses and facilitate growth in the City. The plan provides the City with retail strategies to support both existing retail and encourage new retail in an effort to retain local dollars and attract spending from outside our city limits. Tourism Enhancement Study—The previously noted Retail Improvement Study indicated that tourism related spending in Spokane Valley is underperforming. In order to address that finding the City commissioned a tourism enhancement study whose purpose will ultimately be to improve tourism and lodging activity by increasing overnight stays and tourism related spending, including dining and shopping sectors. This study was split into two phases and the first phase, which was completed in the March of 2016, focused on developing strategies. The second phase, which is anticipated to be complete in the latter part of 2016, will consider the potential feasibility and return on investment of those strategies identified in the first phase. 6 Comprehensive Plan —The City is currently engaged in the process of updating its Comprehensive Plan which contains an economic development element. Included in this element will be a summary of the local economy; an assessment of strengths and weaknesses; and policies, programs and projects to foster economic growth. Additionally, strategies from the previously mentioned Retail Improvement and Tourism Enhancement studies are incorporated into the comp plan. Among other things, the plan also streamlines land uses by consolidating many zones and reducing many development requirements. Additionally the plan is also designed to provide flexibility in an effort to encourage market driven growth. 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 2017 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 2017 Budget. Respectfully, - Mark Calhoun Acting City Manager CITY OF o .-- -'4\4\ ,p Kane 4,,•••.. Valley ® This page left intentionally blank. 8 crri Of 11707 E Sprague Ave Suite 106 ♦ Spokane Valley WA 99206 S �3 kaone 509.921.1000 • Fax: 509.921.1008 • cityhall@spokanevalley.org 40000 Valle TO: City Manager and Members of the City Council FROM: Chelsie Taylor, Finance Director SUBJECT: About the 2017 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. 9 2017 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 volatility seen in the economy with the Great Recession, the City has moved to a Budget development process that consciously reviews service levels in each department and determines the appropriate level of funding that meets Council goals relative to available resources. The 2017 Budget development process began at the March 15, 2016 Council workshop where among other topics, Council and staff discussed the budget in general terms. In mid-April 2016 the Finance Department notified City Departments that their 2017 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 14, 2016. 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 2017 Budget is scheduled to be adopted on November 8, 2016, the Council will have had an opportunity to discuss it on seven separate occasions, including two public hearings to gather input from citizens: June 14 Council budget workshop August 9 Admin report: Estimated 2017 revenues and expenditures September 13 Public hearing #1 on 2017 revenues and expenditures September 25 City Manager's presentation of preliminary 2017 Budget October 11 Public hearing #2 on 2017 Budget October 25 First reading on ordinance adopting the 2017 Budget November 8 Second reading on ordinance adopting the 2017 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. 10 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. • Interfund 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: 11 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 Proiect 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 Projects 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 • #314 — Railroad Grade Separation Projects Fund 12 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. This type of fund includes: • #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. This type of fund includes: • #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 up to $1.50 by the Spokane County Fire Districts #1 and #8, along with deducting up to $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. 13 • 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. 14 • State-Shared Revenues State-shared revenues are received from liquor sales, marijuana revenues, 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 2016 population figure used in the 2017 Budget is 94,160 as reported by the Office of Financial Management for Washington State on April 1, 2016. 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, false alarm fees, 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, 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 $0.4940 per gallon motor vehicle fuel tax at the pump. Of this amount, the State remits a portion of the tax back to cities on a per capita basis. For 2017 the Municipal Research and Services Center estimates the distribution back to cities will be $21.76 per person. Based upon a City of Spokane Valley population of 94,160 (per the Washington State Office of Financial Management on April 1, 2016) we anticipate the City will collect $2,048,900 in 2017. RCW 47.30.050 specifies that 0.42% of this tax must be expended for paths and trails activities and based upon the 2017 revenue estimate this computes to $8,600. The balance of $2,040,300 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 $2.2 million for 2017. 15 Paths & Trails Fund #103 Cities are required to spend 0.42% of the motor vehicle fuel tax receipts on paths and trails (please see the explanation for Street Fund #101) which we anticipate will be $8,600 in 2017. 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 $377,000 in 2017. 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% 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 $580,000 in 2017. Solid Waste Fund #106 Under the City's contract for solid waste transfer, transport and disposal services with Sunshine Recyclers, Inc., Sunshine pays an annual contract administrative fee of $125,000 to the City. This fee is used by the City to offset contract administrative costs and solid waste management within the City, including solid waste public educational efforts. 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 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 non-voted 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 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: 16 • $5,650,000 remained 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, 2017, the outstanding balance on this portion of the bond issue will be $5,065,000. • $1,385,000 remained 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. At January 1, 2016, the outstanding balance on this portion of the bond issue will be $995,000. In 2016 the City issued $7,275,000 in LTGO bonds, the proceeds of which will be used to finance the construction of a new City Hall building along with $6.3 million of City cash that has been set aside for this purpose. These bonds will be paid off in annual installments over the 30-year period ending December 1, 2045. Annual debt service payments on these bonds are provided by transfers in from the General Fund. At January 1, 2017, the outstanding balance on the bond issue will be $7,200,000. 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. 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 $1,860,000 in 2017. 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. These fees are estimated to generate $460,000 in 2017. 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. 17 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 2017: out: 001 101 105 106 301 302 310 312 402 Total In 001 0 39,700 30,000 40,425 0 0 490,500 0 13,400 614,025 204 397,350 0 0 0 79,426 79,425 0 0 0 556,201 303 0 0 0 0 437,002 1,173,230 0 1,760,000 0 3,370,232 309 160,000 0 0 0 0 0 0 561,915 0 721,915 In: 311 953,200 67,342 0 0 660,479 660,479 0 0 0 2,341,500 314 1,200,000 0 0 0 280,079 0 0 0 0 1,480,079 501 36,600 0 0 0 0 0 0 0 0 36,600 502 350,000 0 0 0 0 0 0 0 0 350,000 9,470,552 Total in Total Out 3,097,150 107,042 30,000 40,425 1,456,986 1,913,134 490,500 2,321,915 13,400 9,470,552 Total out 0 #001 - General Fund is budgeted to transfer out $3,097,150 including: • $397,350 to Fund #204 - LTGO Debt Service Fund for bond payments on the 2016 LTGO Bonds for the City Hall construction. • $160,000 to Fund #309 - Park Capital Projects Fund for park related projects. • $953,200 to Fund #311 - Pavement Preservation Fund for pavement preservation projects. • $1,200,000 to Fund #314 - Railroad Grade Separation Projects Fund for the design of the Pines Road Grade Separation Project. • $36,600 to Fund #501 - Equipment Rental and Replacement Fund to fund a CenterPlace kitchen equipment replacement reserve. • $350,000 to Fund #502 - Risk Management Fund for the 2017 property and liability insurance premium. #101 - Street Fund is budgeted to transfer out $107,042 including: • $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. #301 - REET 1 Capital Projects Fund is budgeted to transfer out $1,456,986 including: • $79,426 to Fund #204 - LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $437,002 to Fund #303 - Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $660,479 to Fund #311 - Pavement Preservation Fund for pavement preservation projects. • $280,079 to Fund #314 - Railroad Grade Separation Projects Fund for design services for the Barker Road Grade Separation project. 18 #302 — REET 2 Capital Projects Fund is budgeted to transfer out $1,913,134 including: • $79,425 to Fund #204 — LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $1,173,230 to Fund #303 — Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $660,479 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. #310 — Civic Facility Capital Projects Fund is budgeted to transfer $490,500 to Fund #001 — General Fund to cover lease payments for the current City Hall location in years in which the City has both a lease payment and a bond payment for the new City Hall building. #312 — Capital Reserve Fund is budgeted to transfer $1,760,000 to Fund #303 — Street Capital Projects Fund that will be applied towards the Sullivan Road West Bridge Replacement project and removal and reconstruction of Euclid Ave. (Flora to Barker) after the County's installation of the sewer system and $561,915 to Fund #309 — Parks Capital Projects Fund for the Pines to Evergreen and Sullivan to Corbin segments 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 2017 BUDGET Budget Summary for All Funds • Based upon funding levels anticipated in the 2017 budget, City staff will strive to maintain adequate levels of service. • Appropriations for all City Funds will total $80.7 million including $23.6 million in capital expenditures, comprised in-part of: o $7.2 million in Fund #303 Street Capital Projects. o $3.9 million in Fund #309 Park Capital Projects. o $3 million in Fund #311 Pavement Preservation projects. o $5.3 million in Fund #313 City Hall Construction. o $2 million in Fund #314 Railroad Grade Separation Projects. o $450,000 in Fund #402 Stormwater Management projects. o $530,000 in Fund #403 Aquifer Protection Area projects. • To partially offset the $23.6 million in capital costs, we anticipate $8 million in grant revenues which results in 34.1% of capital expenditures being covered with State and Federal money. • Budgets will be adopted across 25 separate funds. • The full time equivalent employee (FTE) count will be 88.4 employees compared to 87.4 in the prior year as a result of one FTE being added for the new City Hall Operations & Maintenance Department. • The 2017 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 $2,341,500. • 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 as well as a reserve to replace equipment in the kitchen at CenterPlace. 19 2017 General Fund Revenues • Total recurring 2017 revenues are estimated at $41,462,500 as compared to $39,721,428 in 2016. This is an increase of$1,741,072 or 4.38%. • The two largest sources of revenue continue to be Sales Tax and Property Tax which are collectively estimated to account for 82.1% of 2017 General Fund recurring revenues. • The 2017 general sales tax estimate (excluding criminal justice and public safety sales taxes) is reflective of 2016 receipts to date and are currently estimated at $19.9 million which reflects an increase of$1,371,600 or 7.42% over the 2016 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 2017 levy is estimated at $11,614,500. o The levy assumes we start with the 2016 levy of$11,489,518, forgo the potential annual increase allowed by State law, and finally add taxes related to new construction which we estimate to be $125,000. • Franchise fees and business registrations are primarily based on projected receipts in 2016. • State shared revenues are based upon a combination of historical collections including 2016 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. 2017 General Fund Expenditures • Total 2017 recurring expenditures are budgeted at $40,053,822 as compared to $39,707,433 in 2016. This is an increase of$346,389 or 0.87%. • The City commitment of 6% of recurring General Fund expenditures to pavement preservation equals $2,341,500 and is computed by multiplying total recurring expenditures prior to adding the pavement preservation element ($2,341,500 / $39,100,622 = 6%). The $2,341,500 that is transferred to Pavement Preservation Fund #311 is comprised of the following: o $953,200 from General Fund #001 o $67,342 from Street Fund #101 o $660,479 from REET 1 Capital Projects Fund #301 o $660,479 from REET 2 Capital Projects Fund #302 • 2017 Nonrecurring expenditures total $2,389,850 and include: o $100,000 for Information Technology expenditures including: ■ $20,000 for four copiers to replace those that have reached end of life ■ $80,000 for IT capital items for technology set-up at the new City Hall o $513,100 for the last year of the lease at the current City Hall location o $145,000 for the Police Department CAD / RMS o $50,000 for retail recruitment services o $12,000 for repair of drain pipes and gutter lines at the pools o $345,000 for replacement of the Great Room audio/visual equipment at CenterPlace o $24,750 for carpet replacement in various rooms at CenterPlace o $1,200,000 transfer out to the Railroad Grade Separation Projects Fund #314 to fund the design of the Pines Road Grade Separation project. 20 General Fund Revenues Over (Under) Expenditures and Fund Balance • 2017 recurring revenues are anticipated to exceed recurring expenditures by $1,408,678. • Total 2017 expenditures are anticipated to exceed total revenues by $450,247. o This is entirely due to the nonrecurring expenditures previously discussed which equal $2,389,850 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 $22,852,588 at the end of 2017 which is 57.05% of total recurring expenditures of$40,053,822. 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 $2,048,900 according to per capita estimates provided by the Municipal Research and Services Center. Of this amount, $2,040,300 will be credited to the Street O&M Fund and 0.42% or $8,600 to the Paths and Trails Fund. • Telephone taxes that are remitted to the City and support Street Fund operations and maintenance are anticipated at $2,200,000. • 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 2017 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 2017 we estimate the tax will generate $957,000, which includes $580,000 in Fund #105 Hotel / Motel Tax Fund from the 2% tax and $377,000 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 2017 we estimate this will fee will generate $1,860,000. • The Aquifer Protection Area Fund is expected to generate $460,000 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 $8,041,108 in 2017. By fund we anticipate grant revenues as follows: o Fund #106 —Solid Waste Fund - $26,800 o Fund #303 —Street Capital Projects - $3,756,320 o Fund #309 — Parks Capital Projects - $3,217,267 o Fund #311 — Pavement Preservation - $340,800 o Fund #314— Railroad Grade Separation Projects Fund - $489,921 o Fund #402 —Stormwater Fund - $210,000 Expenditures • Fund #101 — Street Fund appropriations include: o a $67,342 transfer to Pavement Preservation Fund #311 for pavement preservation projects o $75,000 for installation of durable striping at Trent and Argonne o $30,000 for spare traffic signal equipment o $15,000 for battery backups for intersections 21 • Fund #301 — REET 1 Capital Projects Fund includes a $1,456,986 appropriation to cover: o a $79,426 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 $437,002 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $660,479 transfer to Pavement Preservation Fund #311 for pavement preservation projects o a $280,079 transfer to Railroad Grade Separation Projects Fund #314 for design of the Barker Road Grade Separation project. • Fund #302 — REET 2 Capital Projects Fund includes a $1,913,134 appropriation to cover: o a $79,425 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 $1,173,230 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $660,479 transfer to Pavement Preservation Fund #311 for pavement preservation projects • Fund #303— Street Capital Projects Fund includes an appropriation of$7,166,649 for a variety of street construction projects. Included in the projects are the Sullivan and Euclid PCC for which we are appropriating $2,150,000 in 2017 and the removal and reconstruction of Euclid Ave. from Flora to Barker after the County installs sewer for which we are appropriating $1,750,000 in 2017. • Fund #309— Parks Capital Projects includes a $3,904,182 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, a $561,915 transfer in from the Capital Reserve Fund #312, and $3,217,267 in grant proceeds. • Fund #311 — Pavement Preservation includes $3,000,000 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 $1,760,000 in transfers to Fund #303 — Street Capital Projects that will be applied towards the Sullivan Road West Bridge Replacement project in the amount of$10,000 and towards the removal and reconstruction of Euclid Ave. from Flora to Barker after the County installs sewer in the amount of$1,750,000. It also includes $561,915 in transfers to Fund #309 — Parks Capital Projects that will be applied toward the Pines to Evergreen and Sullivan to Corbin segments of the Appleway trail. • Fund #313— Civic Facilities Capital Projects includes a $5,344,219 appropriation to cover professional service fees related to the construction of the new City Hall building. • Fund #314— Railroad Grade Separation Projects includes appropriations in the amount of $1,970,000 which consists of$770,000 towards the design of the Barker Road Grade Separation project and $1,200,000 towards the design of the Pines Road Grade Separation project. 22 • Fund #402 - Stormwater Fund includes $710,000 for nonrecurring expenditures including: o $450,000 for various capital projects o $260,000 for the studies related to the City's Stormwater permit and the watershed • Fund #403 - Aquifer Protection Area Fund includes a $530,000 appropriation various capital projects. 23 CITY OF o .-- -'4\4\ ,p Kane 4,,•••.. Valley ® This page left intentionally blank. 24 CITY OF SPOKANE VALLEY,WA 2017 Budget Summary Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund 001 23,302,835 41,993,425 65,296,260 42,443,672 22,852,588 Street Fund 101 1,468,077 4,403,168 5,871,245 4,851,244 1,020,001 Paths&Trails Fund 103 37,254 8,600 45,854 0 45,854 Hotel/Motel Tax-Tourism Facilities Fund 104 559,347 377,000 936,347 0 936,347 Hotel/Motel Tax Fund 105 199,001 580,500 779,501 634,000 145,501 Solid Waste 106 42,874 151,800 194,674 151,800 42,874 PEG Fund 107 236,682 80,000 316,682 262,500 54,182 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,468,289 21,900 5,490,189 0 5,490,189 Winter Weather Reserve Fund 122 500,000 600 500,600 500,000 600 City Facilities Repair&Replacement 123 0 0 0 0 0 LTGO Bond Debt Service Fund 204 4,049 935,951 940,000 940,000 0 REET 1 Capital Projects Fund 301 1,383,899 801,700 2,185,599 1,456,986 728,613 REET 2 Capital Projects Fund 302 1,897,795 801,700 2,699,495 1,913,134 786,361 Street Capital Projects 303 75,538 7,166,649 7,242,187 7,166,649 75,538 Park Capital Projects Fund 309 10,561 3,939,982 3,950,543 3,904,182 46,361 Civic Facilities Capital Projects Fund 310 1,329,214 1,200 1,330,414 490,500 839,914 Pavement Preservation Fund 311 2,419,741 2,682,300 5,102,041 3,050,000 2,052,041 Capital Reserve Fund 312 3,899,601 1,000 3,900,601 2,321,915 1,578,686 City Hall Construction Fund 313 5,344,219 0 5,344,219 5,344,219 0 Railroad Grade Separation Projects Fund 314 0 1,970,000 1,970,000 1,970,000 0 48,478,976 65,917,475 114,396,451 77,400,801 36,995,650 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Stormwater Management Fund 402 1,876,010 2,072,500 3,948,510 2,459,072 1,489,438 Aquifer Protection Area Fund 403 896,660 460,000 1,356,660 530,000 826,660 Equipment Rental&Replacement Fund 501 1,025,997 185,029 1,211,026 0 1,211,026 Risk Management Fund 502 194,383 350,000 544,383 350,000 194,383 3,993,050 3,067,529 7,060,579 3,339,072 3,721,507 Total of all Funds 52,472,026 68,985,004 121,457,030 80,739,873 40,717,157 25 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ #001 -GENERAL FUND RECURRING ACTIVITY Revenues Property Tax 11,479,200 0 11,479,200 11,614,500 135,300 1.18% Sales Tax 18,210,500 270,000 18,480,500 19,852,100 1,371,600 7.42% Sales Tax-Public Safety 867,400 0 867,400 919,000 51,600 5.95% Sales Tax-Criminal Justice 1,556,400 0 1,556,400 1,669,000 112,600 7.23% Gambling Tax and Leasehold Excise Tax 333,700 0 333,700 341,500 7,800 2.34% Franchise Fees/Business Registration 1,154,000 0 1,154,000 1,200,000 46,000 3.99% State Shared Revenues 2,024,528 0 2,024,528 2,104,600 80,072 3.96% Fines and Forfeitures/Public Safety 1,443,500 0 1,443,500 1,361,000 (82,500) (5.72%) Community Development 1,491,500 0 1,491,500 1,449,300 (42,200) (2.83%) Recreation Program Revenues 595,200 13,000 608,200 640,900 32,700 5.38% Miscellaneous Department Revenue 95,900 0 95,900 94,000 (1,900) (1.98%) Miscellaneous&Investment Interest 103,500 0 103,500 133,500 30,000 28.99% 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 39,438,428 283,000 39,721,428 41,462,500 1,741,072 4.38% Expenditures City Council 506,869 0 506,869 542,872 36,003 7.10% City Manager 717,303 0 717,303 724,435 7,132 0.99% Legal 479,951 15,000 494,951 509,694 14,743 2.98% Public Safety 24,703,749 0 24,703,749 24,950,372 246,623 1.00% Deputy City Manager 737,002 0 737,002 750,277 13,275 1.80% Finance/IT 1,253,080 0 1,253,080 1,282,460 29,380 2.34% Human Resources 255,694 0 255,694 262,417 6,723 2.63% Public Works 966,870 0 966,870 981,932 15,062 1.56% City Hall Operations and Maintenance 0 0 0 303,918 303,918 0.00% Community&Economic Dvlpmnt-Admin 272,107 0 272,107 282,962 10,855 3.99% Community&Economic Dvlpmnt-Econ Dev 545,157 0 545,157 683,632 138,475 25.40% Community&Economic Dvlpmnt-Dev Svc 1,486,637 0 1,486,637 1,418,984 (67,653) (4.55%) Community&Economic Dvlpmnt-Building 1,344,165 0 1,344,165 1,390,834 46,669 3.47% Parks&Rec-Administration 281,871 0 281,871 288,964 7,093 2.52% Parks&Rec-Maintenance 838,343 (6,300) 832,043 861,350 29,307 3.52% Parks&Rec-Recreation 228,197 13,000 241,197 235,995 (5,202) (2.16%) Parks&Rec-Aquatics 461,200 0 461,200 457,350 (3,850) (0.83%) Parks&Rec-Senior Center 95,781 0 95,781 95,916 135 0.14% Parks&Rec-CenterPlace 882,223 0 882,223 891,458 9,235 1.05% General Government 1,532,000 55,500 1,587,500 1,240,850 (346,650) (21.84%) Transfers out-#204 (2016 LTGO debt srv) 0 198,734 198,734 397,350 198,616 99.94% Transfers out-#309(park capital projects) 160,000 70,300 230,300 160,000 (70,300) (30.53%) Transfers out-#310(bond pmt) 72,500 0 72,500 0 (72,500) (100.00%) Transfers out-#310(city hall o&m costs) 271,700 0 271,700 0 (271,700) (100.00%) Transfers out-#311 (pavement preservation) 943,800 0 943,800 953,200 9,400 1.00% Transfers out-#501 (CenterPlace kitchen reserve) 0 0 0 36,600 36,600 0.00% Transfers out-#502(insurance premium) 325,000 0 325,000 350,000 25,000 7.69% Total Recurring Expenditures 39,361,199 346,234 39,707,433 40,053,822 346,389 0.87% Recurring Revenues Over(Under) Recurring Expenditures 77,229 (63,234) 13,995 1,408,678 26 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ #001 -GENERAL FUND-continued NONRECURRING ACTIVITY Revenues Transfers in-#106 (solid waste repayment) 40,425 0 40,425 40,425 0 0.00% Transfers in-#310 Civic Facilities 0 198,734 198,734 490,500 291,766 146.81% FEMA Grant Proceeds 0 36,400 36,400 0 (36,400) (100.00%) Total Nonrecurring Revenues 40,425 235,134 275,559 530,925 255,366 92.67% Expenditures General Government-IT capital replacements 108,000 0 108,000 100,000 (8,000) (7.41%) City Hall lease payment(2017 final year) 0 0 0 513,100 513,100 0.00% Public Safety(const offices for unit supervisors) 0 25,000 25,000 0 (25,000) (100.00%) Community&Econ Dev(comp plan update) 350,000 0 350,000 0 (350,000) (100.00%) Parks&Rec(upgrade dial-up modem at pools) 15,000 0 15,000 0 (15,000) (100.00%) Police Department-CAD/RMS 140,281 0 140,281 145,000 4,719 3.36% Police Department (security camera upgrade) 0 6,400 6,400 0 (6,400) (100.00%) CenterPlace roof repairs 0 52,000 52,000 0 (52,000) (100.00%) City Manager Severance 0 453,116 453,116 0 (453,116) (100.00%) Community&Econ Dev(retail recruitment) 0 0 0 50,000 50,000 0.00% Parks&Rec(pool drain pipe&gutter line repairs) 0 0 0 12,000 12,000 0.00% Parks&Rec(replace Great Room audio/video) 0 0 0 345,000 345,000 0.00% Parks&Rec(replace carpet at CenterPlace) 0 0 0 24,750 24,750 0.00% Transfers out-#122 (Replenish after Windstorm) 0 16,418 16,418 0 (16,418) (100.00%) Transfers out-#309(P&R Windstorm damage) 0 37,225 37,225 0 (37,225) (100.00%) Transfers out-#312('14 fund bal>50%) 0 1,828,723 1,828,723 0 (1,828,723) (100.00%) Transfers out-#314(Pines Underpass Design) 0 0 0 1,200,000 1,200,000 0.00% Total Nonrecurring Expenditures 613,281 2,418,882 3,032,163 2,389,850 (642,313) (21.18%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (572,856) (2,183,748) (2,756,604) (1,858,925) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (495,627) (2,246,982) (2,742,609) (450,247) Beginning unrestricted fund balance 26,045,444 26,045,444 23,302,835 Ending unrestricted fund balance 25,549,817 23,302,835 22,852,588 Fund balance as a percent of recurring expenditures 64.91% 58.69% 57.05% General Fund Summary Total revenues 39,478,853 518,134 39,996,987 41,993,425 Total expenditures 39,974,480 2,765,116 42,739,596 42,443,672 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (495,627) (2,246,982) (2,742,609) (450,247) Beginning unrestricted fund balance 26,045,444 26,045,444 23,302,835 Ending unrestricted fund balance 25,549,817 23,302,835 22,852,588 27 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ SPECIAL REVENUE FUNDS #101 -STREET FUND RECURRING ACTIVITY Revenues Utility Tax 2,340,000 0 2,340,000 2,200,000 (140,000) (5.98%) Motor Vehicle Fuel(Gas)Tax 2,004,900 0 2,004,900 2,040,300 35,400 1.77% Multimodal Transportation Revenue 0 0 0 98,868 98,868 0.00% Right-of-Way Maintenance Fee 0 50,000 50,000 50,000 0 0.00% Investment Interest 3,000 0 3,000 4,000 1,000 33.33% Miscellaneous 10,000 0 10,000 10,000 0 0.00% Total Recurring Revenues 4,357,900 50,000 4,407,900 4,403,168 (4,732) (0.11%) Expenditures Wages/Benefits/Payroll Taxes 734,604 0 734,604 746,872 12,268 1.67% Supplies 111,500 0 111,500 105,000 (6,500) (5.83%) Services&Charges 2,132,754 0 2,132,754 2,168,151 35,397 1.66% Snow Operations 430,000 0 430,000 468,000 38,000 8.84% Intergovernmental Payments 771,000 0 771,000 795,000 24,000 3.11% Vehicle rentals-#501 (non-plow vehicle rental) 31,000 0 31,000 23,250 (7,750) (25.00%) Vehicle rentals-#501 (plow replace.) 40,000 0 40,000 77,929 37,929 94.82% Transfers out-#001 39,700 0 39,700 39,700 0 0.00% Transfers out-#311 (pavement preservation) 67,342 0 67,342 67,342 0 0.00% Signal Detection Replacement Program 0 0 0 40,000 40,000 0.00% Traffic Signal Replacement Program 0 0 0 200,000 200,000 0.00% Total Recurring Expenditures 4,357,900 0 4,357,900 4,731,244 373,344 8.57% Recurring Revenues Over(Under) Recurring Expenditures 0 50,000 50,000 (328,076) NONRECURRING ACTIVITY Revenues Grants 0 0 0 0 0 0.00% Insurance proceeds(traffic signal cabinet) 0 46,000 46,000 0 (46,000) (100.00%) Total Nonrecurring Revenues 0 46,000 46,000 0 (46,000) (100.00%) Expenditures Durable striping at Trent&Argonne 0 0 0 75,000 75,000 0.00% Spare traffic signal equipment 0 0 0 30,000 30,000 0.00% Battery backups for intersections 0 0 0 15,000 15,000 0.00% Traffic Signal Cabinet Replacement 0 46,000 46,000 0 (46,000) (100.00%) Maintenance facility storage unit 5,000 0 5,000 0 (5,000) (100.00%) Signal detection equipment upgrades 20,000 0 20,000 0 (20,000) (100.00%) Total Nonrecurring Expenditures 25,000 46,000 71,000 120,000 49,000 69.01% Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (25,000) 0 (25,000) (120,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (25,000) 50,000 25,000 (448,076) Beginning fund balance 1,443,077 1,443,077 1,468,077 Ending fund balance 1,418,077 1,468,077 1,020,001 Street Fund Summary Total revenues 4,357,900 96,000 4,453,900 4,403,168 Total expenditures 4,382,900 46,000 4,428,900 4,851,244 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (25,000) 50,000 25,000 (448,076) Beginning unrestricted fund balance 1,443,077 1,443,077 1,468,077 Ending unrestricted fund balance 1,418,077 1,468,077 1,020,001 28 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ SPECIAL REVENUE FUNDS-continued #103-PATHS&TRAILS FUND Revenues Motor Vehicle Fuel(Gas)Tax 8,500 0 8,500 8,600 100 1.18% Investment Interest 0 0 0 0 0 0.00% Total revenues 8,500 0 8,500 8,600 100 1.18% Expenditures Capital Outlay 0 0 0 0 0 0.00% Transfers out-#309(Appleway Trail-Univ-Pines) 0 9,300 9,300 0 (9,300) (100.00%) Total expenditures 0 9,300 9,300 0 (9,300) (100.00%) Revenues over(under)expenditures 8,500 (800) 8,600 Beginning fund balance 38,054 38,054 37,254 Ending fund balance 46,554 37,254 45,854 #104-HOTEL/MOTEL TAX-TOURISM FACILITIES FUND Revenues Hotel/Motel Tax 357,500 19,500 377,000 377,000 0 0.00% Investment Interest 0 0 0 0 0 0.00% Total revenues 357,500 19,500 377,000 377,000 0 0.00% Expenditures Capital Outlay 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 357,500 377,000 377,000 Beginning fund balance 182,347 182,347 559,347 Ending fund balance 539,847 559,347 936,347 #105-HOTEL/MOTEL TAX FUND Revenues Hotel/Motel Tax 550,000 30,000 580,000 580,000 0 0.00% Investment Interest 300 0 300 500 200 66.67% Total revenues 550,300 30,000 580,300 580,500 200 0.03% Expenditures Transfers out-#001 30,000 0 30,000 30,000 0 0.00% Tourism Promotion 560,000 (60,650) 499,350 604,000 104,650 20.96% Transfers out-#309(volleyball court award) 0 60,650 60,650 0 (60,650) (100.00%) Total expenditures 590,000 0 590,000 634,000 44,000 7.46% Revenues over(under)expenditures (39,700) (9,700) (53,500) Beginning fund balance 208,701 208,701 199,001 Ending fund balance 169,001 199,001 145,501 29 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ I °/U 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 53,500 0 53,500 26,800 (26,700) (49.91%) Total revenues 178,500 0 178,500 151,800 (26,700) (14.96%) Expenditures Education&Contract Administration 138,075 0 138,075 111,375 (26,700) (19.34%) Transfers out-#001 40,425 0 40,425 40,425 0 0.00% Total expenditures 178,500 0 178,500 151,800 (26,700) (14.96%) Revenues over(under)expenditures 0 0 0 Beginning fund balance 42,874 42,874 42,874 Ending fund balance 42,874 42,874 42,874 #107-PEG FUND Revenues Comcast PEG contribution 90,000 0 90,000 80,000 (10,000) (11.11%) Investment Interest 0 0 0 0 0 0.00% Total revenues 90,000 0 90,000 80,000 (10,000) (11.11%) Expenditures PEG Reimbursement-CMN 12,000 105,000 117,000 0 (117,000) (100.00%) Capital Outlay 12,500 0 12,500 12,500 0 0.00% New City Hall Council Chambers 0 25,000 25,000 250,000 225,000 900.00% Total expenditures 24,500 130,000 154,500 262,500 108,000 69.90% Revenues over(under)expenditures 65,500 (64,500) (182,500) Beginning fund balance 301,182 301,182 236,682 Ending fund balance 366,682 236,682 54,182 #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 30 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ SPECIAL REVENUE FUNDS-continued #121 -SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest 6,500 0 6,500 21,900 15,400 236.92% Miscellaneous 0 0 0 0 0 0.00% Total revenues 6,500 0 6,500 21,900 15,400 236.92% Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 6,500 6,500 21,900 Beginning fund balance 5,461,789 5,461,789 5,468,289 Ending fund balance 5,468,289 5,468,289 5,490,189 #122-WINTER WEATHER RESERVE FUND Revenues Investment Interest 600 0 600 600 0 0.00% FEMA Grant Proceeds 0 38,510 38,510 0 (38,510) (100.00%) Transfer in-#001 0 16,418 16,418 0 (16,418) (100.00%) Subtotal revenues 600 54,928 55,528 600 (54,928) (98.92%) 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 (499,400) (444,472) (499,400) Beginning fund balance 444,472 444,472 500,000 Ending fund balance (54,928) 0 600 #123-CIVIC FACILITIES REPLACEMENT FUND Revenues Investment Interest 700 0 700 0 (700) (100.00%) Miscellaneous 0 0 0 0 0 0.00% Total revenues 700 0 700 0 (700) (100.00%) Expenditures Transfers out-#311 (pavement preservation) 559,786 22 559,808 0 (559,808) (100.00%) Total expenditures 559,786 22 559,808 0 (559,808) (100.00%) Revenues over(under)expenditures (559,086) (559,108) 0 Beginning fund balance 559,108 559,108 0 Ending fund balance 22 0 0 31 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ I °/U DEBT SERVICE FUNDS #204-LTGO BOND DEBT SERVICE FUND Revenues Spokane Public Facilities District 380,300 0 380,300 379,750 (550) (0.14%) Transfers in-#001 0 198,734 198,734 397,350 198,616 99.94% Transfers in-#301 83,400 0 83,400 79,426 (3,974) (4.76%) Transfers in-#302 83,400 0 83,400 79,425 (3,975) (4.77%) Total revenues 547,100 198,734 745,834 935,951 190,117 25.49% Expenditures Debt Service Payments-CenterPlace 380,300 0 380,300 379,750 (550) (0.14%) Debt Service Payments-Roads 166,800 0 166,800 162,900 (3,900) (2.34%) 2016 LTGO Bond Principal&Interest 0 198,734 198,734 397,350 198,616 99.94% Total expenditures 547,100 198,734 745,834 940,000 194,166 26.03% Revenues over(under)expenditures 0 0 (4,049) Beginning fund balance 4,049 4,049 4,049 Ending fund balance 4,049 4,049 0 32 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ I °/U CAPITAL PROJECTS FUNDS #301 -REET 1 CAPITAL PROJECTS FUND Revenues REET 1 -Taxes 800,000 200,000 1,000,000 800,000 (200,000) (20.00%) Investment Interest 1,000 0 1,000 1,700 700 70.00% Total revenues 801,000 200,000 1,001,000 801,700 (199,300) (19.91%) Expenditures Transfers out-#204 83,400 0 83,400 79,426 (3,974) (4.76%) Transfers out-#303 222,503 520,000 742,503 437,002 (305,501) (41.14%) Transfers out-#311 (pavement preservation) 365,286 0 365,286 660,479 295,193 80.81% Transfers out-#314(Barker Grade Separation) 0 20,000 20,000 280,079 260,079 1300.40% Total expenditures 671,189 540,000 1,211,189 1,456,986 245,797 20.29% Revenues over(under)expenditures 129,811 (210,189) (655,286) Beginning fund balance 1,594,088 1,594,088 1,383,899 Ending fund balance 1,723,899 1,383,899 728,613 #302-REET 2 CAPITAL PROJECTS FUND Revenues REET 2-Taxes 800,000 200,000 1,000,000 800,000 (200,000) (20.00%) Investment Interest 1,000 0 1,000 1,700 700 70.00% Total revenues 801,000 200,000 1,001,000 801,700 (199,300) (19.91%) Expenditures Transfers out-#204 83,400 0 83,400 79,425 (3,975) (4.77%) Transfers out-#303 922,816 (540,000) 382,816 1,173,230 790,414 206.47% Transfers out-#311 (pavement preservation) 365,286 0 365,286 660,479 295,193 80.81% Total expenditures 1,371,502 (540,000) 831,502 1,913,134 1,081,632 130.08% Revenues over(under)expenditures (570,502) 169,498 (1,111,434) Beginning fund balance 1,728,297 1,728,297 1,897,795 Ending fund balance 1,157,795 1,897,795 786,361 33 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ CAPITAL PROJECTS FUNDS-continued #303-STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds 8,797,263 (647,657) 8,149,606 3,756,320 (4,393,286) (53.91%) Developer 314,700 (39,613) 275,087 40,097 (234,990) (85.42%) Transfers in-#301 222,503 520,000 742,503 437,002 (305,501) (41.14%) Transfers in-#302 922,816 (540,000) 382,816 1,173,230 790,414 206.47% Transfers in-#312-Pines Underpass Pinecroft 500,000 (500,000) 0 0 0 0.00% Transfers in-#312-Euclid Ave-Flora to Barker 0 50,000 50,000 1,750,000 1,700,000 3400.00% Transfers in-#312-Sullivan Rd W Bridge 1,010,509 457,270 1,467,779 10,000 (1,457,779) (99.32%) Transfers in-#312-8th&Carnahan Intersection 0 415,000 415,000 0 (415,000) (100.00%) Total revenues 11,767,791 (285,000) 11,482,791 7,166,649 (4,316,142) (37.59%) Expenditures 123 Mission Ave.-Flora to Barker 332,566 0 332,566 500,000 167,434 50.35% 141 Sullivan&Euclid PCC(PE&RW) 1,981,060 0 1,981,060 2,150,000 168,940 8.53% 149 Sidewalk Infill 5,000 0 5,000 0 (5,000) (100.00%) 155 Sullivan Rd W Bridge Replacement 5,237,650 0 5,237,650 10,000 (5,227,650) (99.81%) 156 Mansfield Ave.Connection 5,000 0 5,000 0 (5,000) (100.00%) 166 Pines Rd(SR27)&Grace Ave. Intersect Safety 491,331 0 491,331 333,224 (158,107) (32.18%) 167 Citywide Safety Improvements(bike/ped) 228,127 0 228,127 5,000 (223,127) (97.81%) 201 ITS Infill Project Phase 1 (PE START 2014) 271,357 0 271,357 300,000 28,643 10.56% 205 Sprague/Barker Intersections Improvement 0 0 0 40,097 40,097 0.00% 206 Sprague/Long Sidewalk Project 5,000 0 5,000 0 (5,000) (100.00%) 207 Indiana&Evergreen Transit Access Imp 0 0 0 5,000 5,000 0.00% 221 McDonald Rd Diet(16th to Mission) 559,200 0 559,200 5,000 (554,200) (99.11%) 222 Citywide Reflective Signal Backplates 40,500 0 40,500 36,000 (4,500) (11.11%) 223 Pines Rd Underpass©BNSF&Trent 500,000 (500,000) 0 0 0 0.00% 229 32nd Ave Preservation Project 0 0 0 2,500 2,500 0.00% 234 Seth Woodward Elem Sidewalk Improvement 361,000 0 361,000 5,000 (356,000) (98.61%) 238 Mirabeau Pkway&Pines(SR-27)Traffic Signal 350,000 0 350,000 5,000 (345,000) (98.57%) 239 Bowdish Sidewalk 8th to 12th 400,000 0 400,000 471,342 71,342 17.84% 247 8th&Carnahan Intersection Improvements 0 415,000 415,000 0 (415,000) (100.00%) xxx N.Sullivan Corridor ITS Project(PE start 2017) 0 0 0 110,486 110,486 0.00% xxx Euclid Ave.-Flora to Barker 0 50,000 50,000 1,750,000 1,700,000 3400.00% xxx 9th Ave.Sidewalk 0 0 0 240,000 240,000 0.00% xxx Sullivan/Wellesley Intersection 0 0 0 198,000 198,000 0.00% Contingency 1,000,000 (250,000) 750,000 1,000,000 250,000 33.33% Total expenditures 11,767,791 (285,000) 11,482,791 7,166,649 (4,316,142) (37.59%) Revenues over(under)expenditures 0 0 0 Beginning fund balance 75,538 75,538 75,538 Ending fund balance 75,538 75,538 75,538 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. 34 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ CAPITAL PROJECTS FUNDS-continued #309-PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds 90,000 320,132 410,132 3,217,267 2,807,135 684.45% FEMA Grant Proceeds-Windstorm 0 21,875 21,875 0 (21,875) (100.00%) Transfers in-#001 160,000 77,525 237,525 160,000 (77,525) (32.64%) Transfers in-#001 (Browns Park Splashpad water) 0 30,000 30,000 0 (30,000) (100.00%) Transfers in-#103(Appleway Trail-Univ-Pines) 0 9,300 9,300 0 (9,300) (100.00%) Transfers in-#105 0 60,650 60,650 0 (60,650) (100.00%) Transfers in-#312-Appleway(Pines-Evergreen) 14,050 58,890 72,940 561,915 488,975 670.38% Investment Interest 500 0 500 800 300 60.00% Total revenues 264,550 578,372 842,922 3,939,982 3,097,060 367.42% Expenditures City entry sign 70,000 0 70,000 0 (70,000) (100.00%) 176 Appleway Trail(Univ.-Pines) 0 9,300 9,300 0 (9,300) (100.00%) 225 Pocket dog park-phase 1 0 400 400 0 (400) (100.00%) 227 Appleway Trail(Pines to Evergreen) 104,050 102,247 206,297 1,925,957 1,719,660 833.58% 237 Appleway Trail(Sullivan to Corbin) 0 276,775 276,775 1,853,225 1,576,450 569.58% 241 Pocket dog park-phase 2 75,000 6,300 81,300 0 (81,300) (100.00%) 242 Browns Park Splashpad 82,500 64,000 146,500 0 (146,500) (100.00%) 243 Browns Park championship volleyball court 0 60,650 60,650 0 (60,650) (100.00%) 244 Park signs(3) 20,500 0 20,500 0 (20,500) (100.00%) 245 Terrace View playground equip-Windstorm 0 59,100 59,100 0 (59,100) (100.00%) Edgecliff Park Splashpad 0 0 0 125,000 125,000 0.00% Total expenditures 352,050 578,772 930,822 3,904,182 2,973,360 319.43% Revenues over(under)expenditures (87,500) (87,900) 35,800 Beginning fund balance 98,461 98,461 10,561 Ending fund balance 10,961 10,561 46,361 #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 72,500 0 72,500 0 (72,500) (100.00%) Future C.H.o&m costs 271,700 0 271,700 0 (271,700) (100.00%) Total revenues 345,400 0 345,400 1,200 (344,200) (99.65%) Expenditures Transferout-#001 0 198,734 198,734 490,500 291,766 146.81% Total expenditures 0 198,734 198,734 490,500 291,766 146.81% Revenues over(under)expenditures 345,400 146,666 (489,300) Beginning fund balance 1,182,548 1,182,548 1,329,214 Ending fund balance 1,527,948 1,329,214 839,914 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. 35 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ CAPITAL PROJECTS FUNDS-continued #311 -PAVEMENT PRESERVATION Revenues Transfers in-#001 943,800 0 943,800 953,200 9,400 1.00% Transfers in-#101 67,342 0 67,342 67,342 0 0.00% Transfers in-#123 559,786 22 559,808 0 (559,808) (100.00%) Transfers in-#301 365,286 0 365,286 660,479 295,193 80.81% Transfers in-#302 365,286 0 365,286 660,479 295,193 80.81% Grants 0 2,063,000 2,063,000 340,800 (1,722,200) (83.48%) Total revenues 2,301,500 2,063,022 4,364,522 2,682,300 (1,682,222) (38.54%) Expenditures Pavement preservation 3,000,000 1,500,000 4,500,000 3,000,000 (1,500,000) (33.33%) Pre-project GeoTech 50,000 0 50,000 50,000 0 0.00% Total expenditures 3,050,000 1,500,000 4,550,000 3,050,000 (1,500,000) (32.97%) Revenues over(under)expenditures (748,500) (185,478) (367,700) Beginning fund balance 2,605,219 2,605,219 2,419,741 Ending fund balance 1,856,719 2,419,741 2,052,041 #312-CAPITAL RESERVE FUND Revenues Transfers in-#001 0 1,828,723 1,828,723 0 (1,828,723) (100.00%) Investment Interest 0 0 0 1,000 1,000 0.00% Total revenues 0 1,828,723 1,828,723 1,000 (1,827,723) (99.95%) Expenditures Transfers out#303(Sullivan Rd WBridge) 1,010,509 457,270 1,467,779 10,000 (1,457,779) (99.32%) Transfers out#303(Pines Rd Underpass) 500,000 (500,000) 0 0 0 0.00% Transfers out#303(Euclid Ave-Flora to Barker) 0 50,000 50,000 1,750,000 1,700,000 3400.00% Transfers out#303(8th&Carnahan Intersection) 0 415,000 415,000 0 (415,000) (100.00%) Transfers out#309(Appleway Trail-Pines-Evergre 14,050 13,800 27,850 260,005 232,155 833.59% Transfers out#309(Appleway Trail-Sullivan-Cork 0 45,090 45,090 301,910 256,820 569.57% Transfers out#314(Pines Grade Separation) 0 500,000 500,000 0 (500,000) (100.00%) Total expenditures 1,524,559 981,160 2,505,719 2,321,915 (183,804) (7.34%) Revenues over(under)expenditures (1,524,559) (676,996) (2,320,915) Beginning fund balance 4,576,597 4,576,597 3,899,601 Ending fund balance 3,052,038 3,899,601 1,578,686 #313-CITY HALL CONSTRUCTION FUND Revenues 2016 LTGO bond issue(par+premium) 0 7,946,088 7,946,088 0 (7,946,088) (100.00%) Investment Interest 0 0 0 0 0 0.00% Total revenues 0 7,946,088 7,946,088 0 (7,946,088) (100.00%) Expenditures Capital Outlay-City Hall 294,400 7,000,000 7,294,400 5,344,219 (1,950,181) (26.74%) 2016 LTGO bond issue costs 0 96,515 96,515 0 (96,515) (100.00%) Total expenditures 294,400 7,096,515 7,390,915 5,344,219 (2,046,696) (27.69%) Revenues over(under)expenditures (294,400) 555,173 (5,344,219) Beginning fund balance 4,789,046 4,789,046 5,344,219 Ending fund balance 4,494,646 5,344,219 0 36 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ I °/U CAPITAL PROJECTS FUNDS-continued #314-RAILROAD GRADE SEPARATION PROJECTS FUND Revenues Grant Proceeds 0 230,000 230,000 489,921 259,921 113.01% Transfers in#001 (Pines underpass design) 0 0 0 1,200,000 1,200,000 0.00% Transfers in#301 (Barker overpass design) 0 20,000 20,000 280,079 260,079 1300.40% Transfers in#312(Pines land acquisition) 0 500,000 500,000 0 (500,000) (100.00%) Total revenues 0 750,000 750,000 1,970,000 1,220,000 162.67% Expenditures 143 Barker BNSF Grade Separation 0 250,000 250,000 770,000 520,000 208.00% 223 Pines Rd Underpass 0 500,000 500,000 1,200,000 700,000 140.00% Total expenditures 0 750,000 750,000 1,970,000 1,220,000 162.67% Revenues over(under)expenditures 0 0 0 Beginning fund balance 0 0 0 Ending fund balance 0 0 0 37 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ ENTERPRISE FUNDS #402-STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees 1,870,000 0 1,870,000 1,860,000 (10,000) (0.53%) Investment Interest 1,500 0 1,500 2,500 1,000 66.67% Total Recurring Revenues 1,871,500 0 1,871,500 1,862,500 (9,000) (0.48%) Expenditures Wages/Benefits/Payroll Taxes 514,132 0 514,132 546,421 32,289 6.28% Supplies 15,900 0 15,900 15,425 (475) (2.99%) Services&Charges 1,113,683 0 1,113,683 1,111,076 (2,607) (0.23%) Intergovernmental Payments 67,000 0 67,000 50,000 (17,000) (25.37%) Vehicle rentals-#501 11,000 0 11,000 12,750 1,750 15.91% Transfers out-#001 13,400 0 13,400 13,400 0 0.00% Total Recurring Expenditures 1,735,115 0 1,735,115 1,749,072 13,957 0.80% Recurring Revenues Over(Under) Recurring Expenditures 136,385 0 136,385 113,428 NONRECURRING ACTIVITY Revenues Grant Proceeds 0 175,000 175,000 210,000 35,000 20.00% FEMA Grant Proceeds-Windstorm 0 48,800 48,800 0 (48,800) (100.00%) Miscellaneous 0 0 0 0 0 0.00% Total Nonrecurring Revenues 0 223,800 223,800 210,000 (13,800) (6.17%) Expenditures Capital-various projects 500,000 (348,900) 151,100 450,000 298,900 197.82% Effectiveness study 0 175,000 175,000 210,000 35,000 20.00% Watershed studies 0 0 0 50,000 50,000 0.00% Storm-related sweeping 0 50,000 50,000 0 (50,000) (100.00%) Maintenance facility storage unit 5,000 0 5,000 0 (5,000) (100.00%) Total Nonrecurring Expenditures 505,000 (123,900) 381,100 710,000 328,900 86.30% Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (505,000) 347,700 (157,300) (500,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (368,615) 347,700 (20,915) (386,572) Beginning working capital 1,896,925 1,896,925 1,876,010 Ending working capital 1,528,310 1,876,010 1,489,438 Stormwater Fund Summary Total revenues 1,871,500 223,800 2,095,300 2,072,500 Total expenditures 2,240,115 (123,900) 2,116,215 2,459,072 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (368,615) 347,700 (20,915) (386,572) Beginning unrestricted fund balance 1,896,925 1,896,925 1,876,010 Ending unrestricted fund balance 1,528,310 1,876,010 1,489,438 38 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ I °/U ENTERPRISE FUNDS-continued #403-AQUIFER PROTECTION AREA Revenues Spokane County 500,000 (100,000) 400,000 460,000 60,000 15.00% Grant DOE-Broadway SD Retrofit 0 0 0 0 0 0.00% Grant DOE-Sprague Park to University LID 1,500,000 (1,500,000) 0 0 0 0.00% Total revenues 2,000,000 (1,600,000) 400,000 460,000 60,000 15.00% Expenditures 198 Sprague Park to University LID 2,000,000 (2,000,000) 0 0 0 0.00% Capital-various projects 0 425,000 425,000 530,000 105,000 24.71% Total expenditures 2,000,000 (1,575,000) 425,000 530,000 105,000 24.71% Revenues over(under)expenditures 0 (25,000) (70,000) Beginning working capital 921,660 921,660 896,660 Ending working capital 921,660 896,660 826,660 39 CITY OF SPOKANE VALLEY,WA 11/8/2016 2017 Budget 2016 2017 Difference Between As As Proposed 2016 and 2017 Adopted Amendment Amended Budget $ INTERNAL SERVICE FUNDS #501 -ER&R FUND Revenues Vehicle rentals-#001 23,500 0 23,500 32,500 9,000 38.30% Vehicle rentals-#101 31,000 0 31,000 23,250 (7,750) (25.00%) Vehicle rentals-#101 (plow replace.) 40,000 0 40,000 77,929 37,929 94.82% Vehicle rentals-#402 6,833 4,667 11,500 12,750 1,250 10.87% Transfer in-#001 (CenterPlace kitchen reserve) 0 0 0 36,600 36,600 0.00% Investment Interest 1,000 0 1,000 2,000 1,000 100.00% Total revenues 102,333 4,667 107,000 185,029 78,029 72.92% Expenditures Vehicle Replacement 105,000 0 105,000 0 (105,000) (100.00%) Snow Plow Replacement 225,000 0 225,000 0 (225,000) (100.00%) Total expenditures 330,000 0 330,000 0 (330,000) (100.00%) Revenues over(under)expenditures (227,667) (223,000) 185,029 Beginning working capital 1,248,997 1,248,997 1,025,997 Ending working capital 1,021,330 1,025,997 1,211,026 #502-RISK MANAGEMENT FUND Revenues Investment Interest 0 0 0 0 0 0.00% Transfers in-#001 325,000 0 325,000 350,000 25,000 7.69% Total revenues 325,000 0 325,000 350,000 25,000 7.69% Expenditures Auto&Property Insurance 325,000 0 325,000 350,000 25,000 7.69% Unemployment Claims 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total expenditures 325,000 0 325,000 350,000 25,000 7.69% Revenues over(under)expenditures 0 0 0 Beginning fund balance 194,383 194,383 194,383 Ending fund balance 194,383 194,383 194,383 TOTAL OF ALL FUNDS Total of Revenues for all Funds 66,156,527 12,826,968 78,983,495 68,985,004 Total of Expenditures for all Funds 70,683,872 12,270,453 82,954,325 80,739,873 Total grant revenues(included in total revenues) 10,440,763 786,060 11,226,823 8,041,108 Total Capital expenditures(included in total expenditures) 18,535,022 7,697,272 26,232,294 23,577,550 40 CITY OF SPOKANE VALLEY,WA 2017 Budget Revenues by Fund General Fund Property Tax $ 11,614,500 Sales Tax 19,852,100 Sales Tax- Public Safety 919,000 Sales Tax-Criminal Justice 1,669,000 Gambling and Leasehold Excise Tax 341,500 Franchise Fees/Business Registration 1,200,000 State Shared Revenues 2,104,600 Service Revenues 1,543,300 Fines and Forfeitures 1,361,000 Recreation Program Fees 640,900 Miscellaneous, Investment Int., Transfers 747,525 Total General Fund $ 41,993,425 Other Funds 101 Street Fund $ 4,403,168 103 Paths&Trails Fund 8,600 104 Hotel/Motel Tax Tourism Facilities Fund 377,000 105 Hotel/Motel Tax Fund 580,500 106 Solid Waste Fund 151,800 107 PEG Fund 80,000 120 CenterPlace Operating Reserve Fund 0 121 Service Level Stabilization Reserve Fund 21,900 122 Winter Weather Reserve Fund 600 123 Civic Facilities Replacement Fund 0 204 LTGO Bond Debt Service Fund 935,951 301 REET 1 Capital Projects Fund 801,700 302 REET 2 Capital Projects Fund 801,700 303 Street Capital Projects Fund 7,166,649 309 Parks Capital Projects Fund 3,939,982 310 Civic Facilities Capital Projects Fund 1,200 311 Pavement Preservation Fund 2,682,300 312 Capital Reserve Fund 1,000 313 City Hall Construction Fund 0 314 Railroad Grade Separation Projects Fund 1,970,000 402 Stormwater Management Fund 2,072,500 403 Aquifer Protection Area Fund 460,000 501 Equipment Rental & Replacement Fund 185,029 502 Risk Management Fund 350,000 Total Other Funds $ 26,991,579 Total All Funds $ 68,985,004 41 CITY OF SPOKANE VALLEY, WA 2017 General Fund Revenues $41,993,425 Recreation Program Fees 1% Miscellaneous Fines& Forfeitures 2% 3% Property Tax 28% Service Revenues 4% State Sharede Shared R \\I*� Franchise Fees/Business Registrations 3% Gambling Tax 1% Public Safety Sales Tax 2% Criminal Justice Sales Tax 4% Sales Tax 47% 42 CITY OF SPOKANE VALLEY, WA 2017 City Wide Revenues $ 68,985,004 Debt Service Fund 1% Other Special Revenue Funds Capital Projects Funds 2% 25% Street Fund 6% Stormwater Management Fund 3% / APA Fund 1% \_ Internal Service Funds 1% General Fund 61% 43 CITY OF SPOKANE VALLEY,WA 2017 Budget-General Fund Detail Revenues by Type 2013 2014 2015 2016 2017 Proposed Actual Actual Actual Budget Budget Property Tax Property Tax 10,841,559 11,129,377 11,095,009 11,479,200 11,614,500 Property Tax-Delinquent 0 0 185,138 0 0 10,841,559 11,129,377 11,280,147 11,479,200 11,614,500 Sales Taxes Sales Tax 16,587,617 17,440,083 18,209,568 18,480,500 19,852,100 Sales Tax-Public Safety 759,889 812,280 848,665 867,400 919,000 Sales Tax-Criminal Justice 1,358,956 1,455,313 1,523,588 1,556,400 1,669,000 18,706,461 19,707,676 20,581,821 20,904,300 22,440,100 Gambling and Leasehold Excise Tax Amusement Games 10,799 11,063 11,909 11,000 11,000 Card Games 382,651 429,376 336,960 249,000 260,000 Bingo&Raffles 638 1,227 950 1,200 1,000 Punch Boards&Pull Tabs 134,350 64,585 62,966 65,000 63,000 Leasehold Excise Tax 6,139 6,932 5,869 6,800 5,800 Leasehold Excise Tax(State) 770 770 770 700 700 535,347 513,954 419,424 333,700 341,500 Licenses&Permits General Business Licenses 97,889 106,741 109,076 100,000 100,000 Comcast PEG Contribution 92,642 89,121 0 0 0 Franchise Fees 1,048,803 1,053,986 1,111,616 1,054,000 1,100,000 1,239,335 1,249,848 1,220,692 1,154,000 1,200,000 State Shared Revenues Streamline Mitigation of Sales Tax 571,806 575,269 572,577 520,000 520,000 Payment in Lieu of Taxes-DNR 0 8,528 4,114 4,400 4,000 CJ-High Crime 49,505 0 0 0 0 MVET Criminal Justice-Population 22,282 23,837 24,869 26,135 29,200 CJ Contracted Services 142,180 152,133 157,282 150,000 150,000 CJ Special Programs 82,689 88,168 91,009 90,540 97,900 Marijuana Enforcement 0 0 37,912 0 54,600 DUI-Cities 16,604 16,273 13,571 16,300 13,600 Liquor Board Excise Tax 121,297 157,068 303,724 413,496 439,700 Liquor Board Profits 813,952 812,922 806,570 803,657 795,600 1,820,317 1,834,198 2,011,629 2,024,528 2,104,600 Service Revenues Airway Heights Bldg.Plan Rev. 471 0 0 0 0 Building Permits 920,921 819,234 770,288 800,000 770,000 Demolition Permits 3,860 4,836 3,840 4,000 4,000 Building&Planning Fees 001.058.059.345.83 103,645 381,282 148,962 126,400 125,500 Entertainment License 18,335 15,823 18,374 16,000 17,000 Grading Permits 3,551 4,049 4,748 3,500 3,500 Home Profession Fee 3,612 3,108 2,856 3,100 2,800 Mechanical Permits 80,927 108,759 89,975 85,000 90,000 Misc. Permits&Fees 5,203 8,168 7,229 6,100 6,600 Planning Fees 437,287 145,218 379,143 380,500 380,500 Plumbing Permits 49,688 63,667 41,784 60,000 42,000 Street Vacation Permits 0 0 0 1,000 1,000 Right of Way Permits 98,265 94,512 91,124 95,000 94,000 Code Enforcement (13,423) 6,189 12,417 6,000 6,000 Temporary Use Permit Fees 942 471 314 800 400 1,713,284 1,655,315 1,571,053 1,587,400 1,543,300 Fines and Forfeitures Public Safety False Alarm Services 183,032 0 201,638 195,000 200,000 Public Safety Grants 66,846 59,265 49,418 50,000 50,000 Fines&Forfeits-Traffic 558,378 761,179 601,189 566,000 523,600 Other Criminal-Non Traffic Fines 688,201 639,820 508,665 632,500 587,400 1,496,458 1,460,263 1,360,910 1,443,500 1,361,000 44 CITY OF SPOKANE VALLEY,WA 2017 Budget-General Fund Detail Revenues by Type 2013 2014 2015 2016 2017 Proposed Actual Actual Actual Budget Budget Recreation Program Charges Activity Fees(To use a recreational facility) 78,065 197,482 143,283 136,200 140,700 Program Fees(To participate in a program) 452,000 401,920 510,971 472,000 500,200 530,065 599,402 654,254 608,200 640,900 Miscellaneous Investment Interest 61,206 41,910 73,378 45,000 73,000 Sales Tax Interest 3,120 3,978 8,682 5,000 5,000 SCRAPS pass-through/nonrecurring 0 57,259 1,100 1,000 1,300 Interest on Gambling Tax 1,937 256 66 2,000 500 Dept.of Ecology Grant 62,101 6,290 0 0 0 Office of Public Def-Public Def Impr 0 0 20,000 0 0 Police Precinct Rent&Maint. 51,530 48,558 51,653 48,500 51,700 Miscellaneous Revenue&Grants 12,265 5,343 6,434 38,400 2,000 192,158 163,594 161,315 139,900 133,500 Transfers Transfers in-#101 (street admin) 39,700 39,700 39,700 39,700 39,700 Transfers in-#120 50,787 0 0 0 0 Transfers in-#105(h/m tax-CP advertising) 30,000 30,000 30,000 30,000 30,000 Transfers in-#106(solid waste repayment) 0 0 40,425 40,425 40,425 Transfers in-#310 0 0 0 198,734 490,500 Transfers in-#402(storm admin) 13,400 13,400 13,400 13,400 13,400 133,887 83,100 123,525 322,259 614,025 Total General Fund Revenue 37,208,871 38,396,726 39,384,769 39,996,987 41,993,425 45 CITY OF SPOKANE VALLEY,WA 2017 Budget-Other Funds Detail Revenues by Type 2013 2014 2015 2016 2017 Amended Proposed Actual Actual Actual Budget Budget 101 Street Fund Utilities tax 2,562,722 2,461,060 2,257,184 2,340,000 2,200,000 Motor Vehicle Fuel(Gas)Tax 1,868,055 1,878,476 1,935,629 2,004,900 2,040,300 Multimodal Transportation Revenue 0 0 0 0 98,868 Right-of-Way Maintenance Fee 0 0 0 50,000 50,000 Investment Interest 0 2,037 3,212 3,000 4,000 Street Maintenance&Repair Charges 7,774 0 0 0 0 Other Miscellaneous Revenues&Grants 182,378 24,587 25,167 56,000 10,000 Transfers in-#302 27,375 0 0 0 0 4,648,304 4,366,160 4,221,192 4,453,900 4,403,168 103 Paths&Trails Fund Motor Vehicle Fuel(Gas)Tax 7,879 7,923 8,164 8,500 8,600 Investment interest 51 34 62 0 0 7,930 7,957 8,226 8,500 8,600 104 Hotel/Motel Tax-Tourism Facilities Fund Hotel/Motel Tax 0 0 182,236 377,000 377,000 Investment interest 0 0 111 0 0 0 0 182,347 377,000 377,000 105 Hotel/Motel Tax Fund Hotel/Motel Tax 518,672 549,267 581,237 580,000 580,000 Investment Interest 387 299 484 300 500 519,059 549,566 581,721 580,300 580,500 106 Solid Waste Sunshine administrative fee 0 0 125,000 125,000 125,000 Grant Proceeds 0 0 0 53,500 26,800 Transfers in-#001 (marketing/education) 0 60,000 0 0 0 0 60,000 125,000 178,500 151,800 107 PEG Fund Comcast PEG contribution 0 0 81,806 90,000 80,000 Investment Interest 0 0 0 0 0 Transfers in-#001 0 0 267,333 0 0 0 0 349,139 90,000 80,000 120 CenterPlace Operating Reserve Fund Investment Interest 0 0 0 0 0 0 0 0 0 0 121 Service Level Stabilization Reserve Fund Investment Interest 6,971 4,697 8,590 6,500 21,900 Transfers in 0 0 0 0 0 6,971 4,697 8,590 6,500 21,900 122 Winter Weather Reserve Fund FEMA Grant Proceeds 0 0 0 38,510 0 Investment Interest 676 456 833 600 600 Transfer in-#001 0 0 0 16,418 0 676 456 833 55,528 600 123 City Facilities Repair&Replacement Fund Investment Interest 1,607 1,083 1,323 700 0 Transfers in 0 0 0 0 0 1,607 1,083 1,323 700 0 204 Debt Service-LTGO 03 Fund 2014 LTGO Bond issue proceeds 0 7,660,694 0 0 0 Facilities District Revenue 437,120 423,844 373,800 380,300 379,750 Transfers in-#001 0 0 0 198,734 397,350 Transfers in-#301 92,951 89,559 82,150 83,400 79,426 Transfers in-#302 92,952 89,559 82,150 83,400 79,425 623,023 8,263,656 538,100 745,834 935,951 46 CITY OF SPOKANE VALLEY,WA 2017 Budget-Other Funds Detail Revenues by Type 2013 2014 2015 2016 2017 Amended Proposed Actual Actual Actual Budget Budget 301 REET 1 Capital Projects Fund REET 1 -1st Quarter Percent 707,104 790,781 1,065,789 1,000,000 800,000 Investment Interest 1,138 793 1,653 1,000 1,700 708,242 791,574 1,067,442 1,001,000 801,700 302 REET 2 Capital Projects Fund REET 2-2nd Quarter Percent 614,929 776,648 1,065,789 1,000,000 800,000 Investment Interest 1,349 909 1,662 1,000 1,700 616,278 777,557 1,067,451 1,001,000 801,700 303 Street Capital Projects Fund Grant Proceeds 3,475,351 1,825,974 8,223,959 8,149,606 3,756,320 Developer Contributions 0 541 363,894 275,087 40,097 Transfers in-#101 138 5,038 123,955 0 0 Transfers in-#301 Capital Projects 589,534 58,607 567,113 742,503 437,002 Transfers in-#302 Special Capital Projects 153,243 501,736 331,099 382,816 1,173,230 Transfers in-#311 77,720 0 0 0 0 Transfers in-#312 Appleway Landscaping 8,348 253,645 0 0 0 Transfers in-#312 Sullivan Rd W Bridge 0 443,688 42,730 1,467,779 10,000 Transfers in-#312 Pines Underpass Pinecroft 0 0 0 0 0 Transfers in-#312 Euclid Ave-Flora to Barker 0 0 0 50,000 1,750,000 Transfers in-#312 8th&Carnahan Intersectior 0 0 0 415,000 0 Miscellaneous 77 21 87 0 0 4,304,412 3,089,249 9,652,837 11,482,791 7,166,649 309 Parks Capital Projects Fund Grant Proceeds 0 0 1,560 432,007 3,217,267 Contributions and Donations 25,000 7,850 0 0 0 Investment Interest 660 444 813 500 800 Transfers in-#001 50,000 242,298 115,575 267,525 160,000 Transfers in-#103 0 50,000 0 9,300 0 Transfers in-#105 0 0 68,000 60,650 0 Transfers in-#312 0 911,433 524,812 72,940 561,915 75,660 1,212,025 710,760 842,922 3,939,982 310 Civic Facilities Capital Projects Fund Sale of land 0 839,285 0 0 0 Investment Interest 1,771 1,193 2,113 1,200 1,200 Transfers in-#001 Future C.H.bond pmt>$424.6k lease pmt 0 0 67,600 72,500 0 Future C.H.o&m costs 0 0 271,700 271,700 0 Transfers in-#312 0 0 58,324 0 0 1,771 840,478 399,737 345,400 1,200 311 Pavement Preservation Fund Grants 35,995 2,042,715 835,224 2,063,000 340,800 Investment Interest 2,751 1,853 3,389 0 0 Transfers in-#001 0 888,823 920,000 943,800 953,200 Transfers in-#101 282,000 282,000 206,618 67,342 67,342 Transfers in-#123 616,284 616,284 616,284 559,808 0 Transfers in-#301 150,000 184,472 251,049 365,286 660,479 Transfers in-#302 150,000 184,472 251,049 365,286 660,479 1,237,030 4,200,619 3,083,613 4,364,522 2,682,300 312 Capital Reserve Fund Developer Contributions 3,180 4,675 0 0 0 Investment Interest 0 0 0 0 1,000 Transfers in-#001 7,826,207 2,443,507 1,783,512 1,828,723 0 7,829,387 2,448,182 1,783,512 1,828,723 1,000 313 City Hall Construction Fund Investment Interest 0 0 0 0 0 Transfers in-#312 0 0 5,162,764 7,946,088 0 0 0 5,162,764 7,946,088 0 47 CITY OF SPOKANE VALLEY,WA 2017 Budget-Other Funds Detail Revenues by Type 2013 2014 2015 2016 2017 Amended Proposed Actual Actual Actual Budget Budget 314 Railroad Grade Separation Projects Fund Grant Proceeds 0 0 0 230,000 489,921 Transfers in-#001 0 0 0 0 1,200,000 Transfers in-#301 0 0 0 20,000 280,079 Transfers in-#312 0 0 0 500,000 0 0 0 0 750,000 1,970,000 402 Stormwater Management Fund Stormwater Management Fee 1,869,081 1,865,413 1,861,368 1,870,000 1,860,000 Grant Proceeds 233,165 76,097 423,332 223,800 210,000 Developer Contributions 0 51,492 0 0 0 Miscellaneous Revenue 4,143 1,500 0 0 0 Investment Interest 1,992 1,342 2,455 1,500 2,500 Transfers in-#403 0 0 120,000 0 0 2,108,381 1,995,844 2,407,155 2,095,300 2,072,500 403 Aquifer Protection Area Fund Spokane County 484,343 461,828 533,593 400,000 460,000 Grant Proceeds 859,310 699,913 1,036,603 0 0 Investment Interest 0 0 0 0 0 Transfers in-#402(DOE for Decant Proj) 0 50,125 0 0 0 1,343,653 1,211,866 1,570,196 400,000 460,000 501 Equipment Rental&Replacement Fund Investment Interest 1,176 792 1,449 1,000 2,000 Interfund Equip&Vehicle Lease 177,744 102,744 35,544 106,000 146,429 Transfers in-#001 (CenterPlace kitchen reser 0 0 0 0 36,600 Transfers in-#101 0 25,849 0 0 0 Transfers in- #402 0 25,843 0 0 0 178,920 155,228 36,993 107,000 185,029 502 Risk Management Fund Transfers in-#001 319,000 325,000 325,000 325,000 350,000 Investment Interest 7 5 8 0 0 319,007 325,005 325,008 325,000 350,000 Total of"Other Fund"Revenues 24,530,311 30,301,203 33,283,940 38,986,508 26,991,579 General Fund Revenues 37,208,871 38,396,726 39,384,769 39,996,987 41,993,425 Total Revenues 61,739,182 68,697,929 72,668,709 78,983,495 68,985,004 48 CITY OF SPOKANE VALLEY,WA 2017 Budget Expenditures by Fund and Department General Fund Council $ 542,872 City Manager 1,234,129 Public Safety 25,095,372 Operations&Administrative Deputy City Manager 750,277 Finance 1,282,460 Human Resources 262,417 Public Works 981,932 City Hall Operations and Maintenance 303,918 Community&Economic Development Administration 282,962 Economic Development 733,632 Development Services 1,418,984 Building 1,390,834 Parks&Recreation Administration 288,964 Maintenance 861,350 Recreation 235,995 Aquatics 469,350 Senior Center 95,916 CenterPlace 1,261,208 General Government 4,951,100 Total General Fund $ 42,443,672 Other Funds Street Fund $ 4,851,244 Paths&Trails Fund 0 Hotel/Motel Tax-Tourism Facilities Fund 0 Hotel/Motel Tax Fund 634,000 Solid Waste 151,800 PEG Fund 262,500 CenterPlace Operating Reserve Fund 0 Service Level Stabilization Fund 0 Winter Weather Reserve Fund 500,000 Civic Facility Replacement Fund 0 LTGO Bond Debt Service Fund 940,000 REET 1 Capital Projects Fund 1,456,986 REET 2 Capital Projects Fund 1,913,134 Street Capital Projects Fund 7,166,649 Parks Capital Projects Fund 3,904,182 Civic Facilities Capital Projects Fund 490,500 Pavement Preservation 3,050,000 Capital Reserve Fund 2,321,915 City Hall Construction Fund 5,344,219 Railroad Grade Separation Projects 1,970,000 Stormwater Management Fund 2,459,072 Aquifer Protection Area 530,000 Equipment Rental&Replacement(ER&R) 0 Risk Management Fund 350,000 Total Other Funds $ 38,296,201 Total All Funds $ 80,739,873 49 CITY OF SPOKANE VALLEY, WA 2017 General Fund Expenditures $ 42,443,672 Public Safety 59% Community& Economic Development 9% Public Works // 41,7 3% Operation &Administrative 50/ Parks& Recreations Council& Executive 8% 4% General Government 12% 50 CITY OF SPOKANE VALLEY, WA 2017 City Wide Expenditures $ 80,739,873 Capital Projects Funds 34% General Government 6% Risk Management 0% Tourism Promotion Debt Service Stormwater&APA Funds 4% _Other Activities Street Fund 1% 6% Parks& Recreations 4% Community&Economic Development 5% Council/Executive/Ops& Admin 7% Public Safety 31% 51 CITY OF SPOKANE VALLEY,WA 2017 Budget General Fund Expenditures by Department and Type Wages, Benefits Services& Capital &Payroll Taxes Supplies Charges Intergovernmental Interfund Expenditures Total City Council $ 230,922 $ 4,550 $ 307,400 $ 0 $ 0 $ 0 $ 542,872 City Manager and City Attorney 1,083,066 5,405 145,658 0 0 0 1,234,129 Public Safety 3,000 26,500 340,315 24,580,557 0 145,000 25,095,372 Operations&Administrative Deputy City Manager 670,977 2,000 77,300 0 0 0 750,277 Finance 1,252,460 6,000 24,000 0 0 0 1,282,460 Human Resources 237,356 730 24,331 0 0 0 262,417 Public Works 905,382 14,750 61,800 0 0 0 981,932 City Hall Operation and Maintenance 98,818 30,000 175,100 0 0 0 303,918 Planning &Community Development Admin 261,262 3,100 18,600 0 0 0 282,962 Economic Development 411,232 1,100 321,300 0 0 0 733,632 Development Services 1,119,084 16,550 263,350 20,000 0 0 1,418,984 Building 1,279,834 32,700 78,300 0 0 0 1,390,834 Parks&Recreation Administration 242,414 7,400 39,150 0 0 0 288,964 Maintenance 0 5,500 855,850 0 0 0 861,350 Recreation 168,645 8,200 59,150 0 0 0 235,995 Aquatics 0 3,200 466,150 0 0 0 469,350 Senior Center 89,416 1,600 4,900 0 0 0 95,916 CenterPlace 491,639 73,524 351,045 0 0 345,000 1,261,208 General Government 0 145,450 1,270,000 328,500 3,097,150 110,000 4,951,100 Total $ 8,545,507 $ 388,259 $ 4,883,699 $ 24,929,057 $ 3,097,150 $ 600,000 $ 42,443,672 52 CITY OF SPOKANE VALLEY,WA 2017 Budget General Fund Department Changes from 2016 to 2017 Difference Between 2016 and 2017 2016 2017 Increase Decrease) Budget Budget $ City Council Wages, Payroll Taxes&Benefits 220,634 230,922 10,288 4.66% Supplies 4,550 4,550 0 0.00% Services&Charges 281,685 307,400 25,715 9.13% Total 506,869 542,872 36,003 7.10% City Manager Wages, Payroll Taxes&Benefits 651,463 655,325 3,862 0.59% Supplies 3,350 3,300 (50) (1.49%) Services&Charges 62,490 65,810 3,320 5.31% Total 717,303 724,435 7,132 0.99% Legal Wages, Payroll Taxes&Benefits 397,206 427,741 30,535 7.69% Supplies 2,010 2,105 95 4.73% Services&Charges 95,735 79,848 (15,887) (16.59%) Total 494,951 509,694 14,743 2.98% Public Safety Non-Departmental(Fines&Forfeits) 649,500 602,250 (47,250) (7.27%) Wages/Payroll Taxes/Benefits 6,500 3,000 (3,500) (53.85%) Supplies 27,500 26,500 (1,000) (3.64%) Other Services and Charges 394,750 340,315 (54,435) (13.79%) Intergovernmental Services 23,625,499 23,978,307 352,808 1.49% Total 24,703,749 24,950,372 246,623 1.00% Deputy City Manager Wages, Payroll Taxes&Benefits 660,102 670,977 10,875 1.65% Supplies 2,500 2,000 (500) (20.00%) Services&Charges 74,400 77,300 2,900 3.90% Total 737,002 750,277 13,275 1.80% Finance/IT Wages, Payroll Taxes&Benefits 1,222,580 1,252,460 29,880 2.44% Supplies 6,000 6,000 0 0.00% Services&Charges 24,500 24,000 (500) (2.04%) Total 1,253,080 1,282,460 29,380 2.34% Human Resources Wages, Payroll Taxes&Benefits 230,698 237,356 6,658 2.89% Supplies 700 730 30 4.29% Services&Charges 24,296 24,331 35 0.14% Total 255,694 262,417 6,723 2.63% Public Works Wages, Payroll Taxes&Benefits 876,364 905,382 29,018 3.31% Supplies 18,000 14,750 (3,250) (18.06%) Services&Charges 72,506 61,800 (10,706) (14.77%) Total 966,870 981,932 15,062 1.56% City Hall Operations&Maintenance Wages, Payroll Taxes&Benefits 0 98,818 98,818 0.00% Supplies 0 30,000 30,000 0.00% Services&Charges 0 175,100 174,600 0.00% Total 0 303,918 303,418 0.00% (Continued to next page) 53 CITY OF SPOKANE VALLEY,WA 2017 Budget General Fund Department Changes from 2016 to 2017 Difference Between 2016 and 2017 2016 2017 Increase Decrease) Budget Budget $ (Continued from previous page) Community Dev.-Admin Wages, Payroll Taxes&Benefits 250,407 261,262 10,855 4.33% Supplies 3,100 3,100 0 0.00% Services&Charges 18,600 18,600 0 0.00% Total 272,107 282,962 10,855 3.99% Community Dev.-Economic Development Wages, Payroll Taxes&Benefits 317,257 411,232 93,975 29.62% Supplies 1,100 1,100 0 0.00% Services&Charges 226,800 271,300 44,500 19.62% Total 545,157 683,632 138,475 25.40% Community Dev.-Dev. Sery Wages, Payroll Taxes&Benefits 1,173,837 1,119,084 (54,753) (4.66%) Supplies 21,050 16,550 (4,500) (21.38%) Services&Charges 271,750 263,350 (8,400) (3.09%) Intergovernmental Services 20,000 20,000 0 0.00% Total 1,486,637 1,418,984 (67,653) (4.55%) Community Dev.-Building Wages, Payroll Taxes&Benefits 1,256,565 1,279,834 23,269 1.85% Supplies 28,200 32,700 4,500 15.96% Services&Charges 59,400 78,300 18,900 31.82% Total 1,344,165 1,390,834 46,669 3.47% Parks&Rec-Admin Wages, Payroll Taxes&Benefits 246,821 242,414 (4,407) (1.79%) Supplies 5,900 7,400 1,500 25.42% Services&Charges 29,150 39,150 10,000 34.31% Total 281,871 288,964 7,093 2.52% Parks&Rec-Maintenance Wages, Payroll Taxes&Benefits 0 0 0 0.00% Supplies 5,500 5,500 0 0.00% Services&Charges 826,543 855,850 29,307 3.55% Total 832,043 861,350 29,307 3.52% Parks&Rec-Recreation Wages, Payroll Taxes&Benefits 161,397 168,645 7,248 4.49% Supplies 7,600 8,200 600 7.89% Services&Charges 72,200 59,150 (13,050) (18.07%) Total 241,197 235,995 (5,202) (2.16%) Parks&Rec-Aquatics Wages, Payroll Taxes&Benefits 0 0 0 0.00% Supplies 14,000 3,200 (10,800) (77.14%) Services&Charges 447,200 454,150 6,950 1.55% Total 461,200 457,350 (3,850) (0.83%) Parks&Rec-Senior Center Wages, Payroll Taxes&Benefits 88,481 89,416 935 1.06% Supplies 1,600 1,600 0 0.00% Services&Charges 5,700 4,900 (800) (14.04%) Total 95,781 95,916 135 0.14% (Continued to next page) 54 CITY OF SPOKANE VALLEY,WA 2017 Budget General Fund Department Changes from 2016 to 2017 Difference Between 2016 and 2017 2016 2017 Increase Decrease) Budget Budget $ (Continued from previous page) Parks&Rec-CenterPlace Wages, Payroll Taxes&Benefits 475,925 491,639 15,714 3.30% Supplies 76,024 73,524 (2,500) (3.29%) Services&Charges 330,274 326,295 (3,979) (1.20%) Total 882,223 891,458 9,235 1.05% General Government Wages, Payroll Taxes&Benefits 0 0 0 0.00% Supplies 87,600 145,450 57,850 66.04% Services&Charges 1,161,800 756,900 (404,900) (34.85%) Intergovernmental Services 295,100 328,500 33,400 11.32% Capital outlays 43,000 10,000 (33,000) (76.74%) Total 1,587,500 1,240,850 (346,650) (21.84%) Transfers out-#204 198,734 397,350 198,616 99.94% Transfers out-#309 230,300 160,000 (70,300) (30.53%) Transfers out-#310 Bond pmt>$434,600 lease pmt 72,500 0 (72,500) (100.00%) Estimated City Hall O&M costs 271,700 0 (271,700) (100.00%) Total 344,200 0 (344,200) (100.00%) Transfers out-#311 Pavement Preservation 943,800 953,200 9,400 1.00% Total 943,800 953,200 9,400 1.00% Transfers out-#501 0 36,600 36,600 0.00% Transfers out-#502 325,000 350,000 25,000 7.69% Total recurring expenditures 39,707,433 40,053,822 346,389 0.87% Summary by Category Wages, Payroll Taxes&Benefits 8,236,237 8,545,507 309,270 3.75% Supplies 316,284 388,259 71,975 22.76% Services&Charges 4,479,779 4,283,849 (195,930) (4.37%) Transfers out-#204 198,734 397,350 198,616 99.94% Transfers out-#309 230,300 160,000 (70,300) (30.53%) Transfers out-#310 344,200 0 (344,200) (100.00%) Transfers out-#311 943,800 953,200 9,400 1.00% Transfers out-#501 0 36,600 36,600 0.00% Transfers out-#502 325,000 350,000 25,000 7.69% Non-Departmental(fines&forfeits) 649,500 602,250 (47,250) (7.27%) Intergovernmental Svc(public safety) 23,625,499 23,978,307 352,808 1.49% Intergovernmental Svc 315,100 348,500 33,400 10.60% Capital outlay 43,000 10,000 (33,000) (76.74%) 39,707,433 40,053,822 346,389 0.87% 55 Fund:001 General Fund Spokane Valley Dept: 011 Legislative Branch 2017 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 2016 • Continued to work with state and federal legislators for possible financial assistance for the Barker and Pines Road Grade Separation Projects. • Worked with Council and Staff to develop a strategic plan for funding all grade separation projects. • Continued to expand,where possible,economic development efforts. This included completing the design for a new City Hall structure,developing the necessary financing including the issuance of LTGO Bonds,and award of the construction contract;and completion of the retail improvement study and phase 1 of a tourism enhancement study. • Worked with Council and Staff to develop a strategic plan to address structural funding deficits in Street Fund#101 and Pavement Preservation Fund#311. • Evaluated and discussed increasing costs of public safety,including law enforcement. Continued to seek long-term solutions to control costs while at the same time better serving the community. This in-part involved beginning negotiations with Spokane County for Law Enforcement Services and continuing to analyze costs of all public safety related contracts. • Worked with the Community, Planning Commission and Staff to complete the Comprehensive Plan update. Goals for 2017 • Continue to work with state and federal legislators towards financial assistance for both the Barker and Pines Road Grade Separation Projects. • Develop a strategic plan for financing and completion of all grade separation projects. • Continue and expand where possible,economic development efforts. Complete the development of implementation strategies for the retail and tourism studies that were completed in 2016. • Pursue a sustainability plan in connection with the City's Street Preservation program,to include sustained funding in the Street Fund#101 and Pavement Preservation Fund#311,to address concerns beyond the year 2021. • Evaluate and discuss increasing costs of public safety,including law enforcement. Continue the ongoing process to develop long-term solutions to controlling costs while better serving the community. • Pursue financing for Browns Park, Balfour Park and Appleway Trail amenities. Budget Summary 2013 2014 2015 2016 2017 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 $ 174,891 $ 191,856 $ 206,705 $ 220,634 $ 230,922 Supplies 3,577 2,379 2,908 4,550 4,550 Services&Charges 161,333 211,573 157,665 281,685 307,400 Total Legislative Branch $ 339,801 $ 405,808 $ 367,278 $ 506,869 $ 542,872 56 Fund:001 General Fund Spokane Valley Dept:013 Executive Branch 2017 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 2016 • Worked to support the City Council's 2016 Goals as referenced under the Legislative Budget. • Prepared a balanced 2017 Budget that met City Council's goal to reflect recurring expenditure growth at less than 1%. • Worked with State Lobbyists on behalf of the interests of our City. • Prepared a proposed 2017 Council Legislative Agenda that was specifically discussed by Council on three separate occasions including their September 6,2016 adoption of the agenda itself. This was followed by an October 18,2016 meeting with our local legislative delegation where the Councilmembers and Legislators discussed areas of common interest including our legislative agenda. • Continued efforts to strengthen economic development including working with the Community and Economic Development Department to complete the Retail Enhancement Study, Phase 1 of the Tourism Enhancement a strategic economic development plan and the recruitment of an Economic Development Specialist to our City. Study and the Comp Plan. • Worked with Staff and Council on a City Hall construction project that included --completion of the design --developing the necessary financing including the issuance of LTGO Bonds --award of the construction contract Noteworthy is that this resulted in our fixed annual bond payment over the next 30-years of$399,900 is$34,700 less than our current annual lease payment of$434,600. • Provided leadership support for the strengthening and promoting of Spokane Valley's core values and fiscal policies. Goals for 2017 • Work to support City Council's 2017 Goals as referenced under the Legislative Budget. • Present Council with a balanced 2018 Budget. • Work with Federal and State Lobbyists on behalf of the interests of our City. • Prepare the Legislative Agenda for Council consideration. • Strengthen economic development. • Lead the City through a seamless move to the new City Hall building. 015-Legal Accomplishments for 2016 • Assisted in review of the Comprehensive Plan Update. • Finalized major revisions to purchasing laws and procedures. • Assisted in transition to new City Manager. • Assisted in amending state law on nuisance abatement cost recovery. • Assisted in contracting process for new solid waste collection agreement. • Led development and adoption of permanent marijuana regulations. • Assisted in major review of law enforcement contractual issues. Goals for 2017 • 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. • Assist Council and staff in accomplishing items on the 2017 Legislative Agenda. (continued to next page) 57 Fund:001 General Fund Spokane Valley Dept:013 Executive Branch 2017 Budget Budget Summary 2013 2014 2015 2016 2017 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 Attorney 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 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 922,074 $ 953,434 $ 978,742 $ 1,048,669 $ 1,083,066 Supplies 1,811 2,787 2,869 5,360 5,405 Services&Charges 159,747 126,171 142,165 158,225 145,658 Nonrecurring expenses 0 0 3,161 453,116 0 Total Executive&Legislative Support $ 1,083,632 $ 1,082,392 $ 1,126,937 $ 1,665,370 $ 1,234,129 58 Fund:001 General Fund Spokane Valley Dept: 016 Public Safety 2017 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 $ 2,168,892 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 20,476,070 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 1,389,039 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 294,121 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 602,250 Grant expenditures 20,000 Capital outlay-CAD/RMS-Nonrecurring 145,000 Total $25,095,372 59 City of Spokane Valley 2017 Budget 016-Public Safety 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Judicial System: District Court Contract $ 868,861 $ 820,628 $ 656,129 $ 822,076 $ 769,083 Public Defender Contract 617,999 649,831 710,289 832,182 721,630 Prosecutor Contract 406,875 410,196 479,782 448,722 542,747 Pretrial Services Contract 108,655 117,048 131,041 122,372 135,432 Subtotal Judicial System 2,002,390 1,997,703 1,977,241 2,225,352 2,168,892 Law Enforcement System: Sheriff Contract 17,701,607 17,731,187 18,205,133 19,713,401 20,036,884 Emergency Management Contract 80,428 82,237 88,070 90,558 89,371 Wages,Payroll Taxes&Benefits 3,642 6,506 2,617 6,500 3,000 Operating Supplies 3,980 3,388 2,144 4,000 4,000 Repair&Maintenance.Supplies 2,343 3,343 2,007 3,500 2,500 Professional Services 0 0 1,334 0 0 Electricity/Gas 21,865 20,887 18,953 22,000 22,000 Water 1,210 1,497 1,275 1,600 1,600 Sewer 851 850 995 900 2,500 Waste Disposal 3,460 3,462 3,372 3,500 3,500 Law Enf.Bldg Maintenance Contract 80,283 58,331 76,076 60,000 70,000 Taxes and Assessments 715 715 715 750 715 Miscellaneous Services/Contingency 0 250 550 250,000 180,000 Crywolf Charges&Fees 44,412 48,348 48,419 50,000 50,000 Umpqua Bank Fees 5,111 5,726 9,418 6,000 10,000 Subtotal Law Enforcement System: 17,949,907 17,966,727 18,461,078 20,212,709 20,476,070 Jail System: Jail Contract 713,292 996,557 1,213,502 1,301,055 1,389,039 Work Release(Geiger) 508,704 151,158 0 0 0 Subtotal Jail System: 1,221,996 1,147,715 1,213,502 1,301,055 1,389,039 Other: Fines&Forfeitures State Remittance 664,681 637,014 587,446 649,500 602,250 Animal Control Contract 295,556 287,081 290,228 295,133 294,121 Non-Capital Equipment for JAG Grant 3,272 0 4,579 20,000 20,000 Non-Capital Equip for ARRA JAG Grant 203 0 0 0 0 LEC Labor Contract Settlement 0 0 224,244 0 0 Settle&Adjust 118,273 0 (753,653) 0 0 Small Tools&Minor Equipment 0 0 4,610 0 0 Non-Capital Equipment for 2011 JAG Grant 9,297 8,010 0 0 0 Non-Capital Equipment for 2012 JAG Grant 23,978 0 0 0 0 Non-Capital Equipment for 2013 JAG Grant 0 20,495 0 0 0 Non-Capital Equipment for WASPC Grant 4,771 6,020 0 0 0 JAG-Wireless Cards 10,119 3,979 0 0 0 SVPD Wireless Cards 0 434 0 0 0 Travel/Mileage/Meals 0 0 74 0 0 Nighttime Seatbelt Patrol Overtime 1,611 1,647 0 0 0 Maintenance 0 7,468 4,253 0 0 Drive Hammered-Get Nailed Grant 10,811 19,802 8,743 0 0 Building Repair&Maintenance 0 7,679 0 0 0 Office Furniture&Equipment 0 14,480 36,823 0 0 Distracted Driving 0 0 331 0 0 Click it or Ticket 0 0 714 0 0 TZT seatbelt patrols 0 0 724 0 0 Capital outlay-CAD/RMS 0 0 294,575 140,281 145,000 Subtotal Other: 1,142,572 1,014,109 703,691 1,104,914 1,061,371 Total Public Safety $22,316,865 $22,126,254 $22,355,512 $24,844,030 $25,095,372 60 O L O U (7111 U E c N4 E all U E Q o.)11a M L C C 6) O M U ,-4 E —) O) N -a U pm 2 U O N W O O co 2 Cl) J C L M >,C U N +J 15 c E U cr) °' ca)-L CD a o a) c O (7/• W w 2 U CD t }, C U Y4-' E. O o • V U 4- O ami a)` >+ G) U) 0, U - L m U m r- U a ti N a) r -4- 0 O N d U L a) cU 1N � O C U O _ U d .t .• O U . , s U c� L • E 'C O U 0 0 0 Ii Ii 0 Fund:001 General Fund Spokane Valley Dept: 018 2017 Budget Operation&Administrative Services 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 2016 • Worked to support the 2016 Goals of the Legislative and Executive Branch. • Continued to evaluate the Spokane Valley police department Power Shift that was implemented in 2015,including: --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. • Worked towards the development of a 2017 Business Plan that is a guide to the preparation of the 2017 Budget by linking together community priorities,financial projections and City Council goals. • In conjunction with the Finance and Legal Departments,lead the effort to issue limited tax general obligation(LTGO) bonds,the proceeds of which are being used towards the construction of a new City Hall building. • Continued public information support that informed and the community about the status of various projects including: --a variety of construction projects --Sullivan Road Bridge Replacement Project --City Hall design,bond issue and construction --Comp Plan development • In conjunction with the Legal and Public Works departments,developed a Request for Proposals for solid waste collection services within the City. Goals for 2017 • Support the 2017 Goals of the Legislative and Executive Branch. • Work with the City Manager and Staff to develop the 2018 Business Plan. • Continue with the annual process of evaluating public safety contracts to ensure the City is receiving services in the most efficient,effective and cost contained manner possible. • Continue to provide public information support. • In conjunction with the Legal and Public Works departments,by the Spring of 2017,complete the process leading to the selection of a solid waste collection provider. • Coordinate the efforts of the City Hall construction and moving teams. Budget Summary 2013 2014 2015 2016 2017 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 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 6.0 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 $ 402,012 $ 496,278 $ 612,576 $ 660,102 $ 670,977 Supplies 1,153 2,519 1,089 2,500 2,000 Services&Charges 56,162 36,663 59,134 74,400 77,300 Total Deputy City Manager Division $ 459,327 $ 535,460 $ 672,799 $ 737,002 $ 750,277 62 Fund:001 General Fund Spokane Valley Dept: 018 Operation&Administrative Services 2017 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 by the Washington State Auditor's Office. Accomplishments for 2016 • Implemented State Auditor recommendations. • Improved financial statement preparation process and accuracy. • Completed the 2015 CAFR by May 30,2016. • Acquired four vehicles included in the 2016 budget,including one small SUV for Community and Economic Development,one car and one small truck for Parks and Recreation,and one truck split half-time between the Street Fund and Stormwater Fund. • Completed the process of virtualizing servers using VMware. • Worked with all City departments to implement new purchasing procedures. • Implemented new reporting standards for pensions for preparation of the 2015 CAFR. • Replaced approximately 36 desktop computers that were at the end of their life cycle. • Completed the third and final phase of a network switch replacement project. • Worked with Parks and Recreation to upgrade the cash registers and point of sales system at the three City pools. • In conjunction with the City's Deputy City Manager and Legal departments,worked with a financial advisor and bond underwriter to issue limited tax general obligation(LTGO)bonds,the proceeds of which are being used towards the construction of a new City Hall building. • Began planning for the physical and technological transfer of operations to the new City Hall building. Goals for 2017 • Implement 2015 audit recommendations. • Work towards continued improvement and accuracy in the financial statement preparation process. • Complete the 2016 CAFR by May 30,2017,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 ongoing process of refining the replacement program for IT resources. • Work with all City departments for a seamless physical and technological transfer of operations to the new City Hall building. • Acquire and install equipment necessary for the broadcast of City Council meetings in the Council Chambers of the new City Hall building. Budqet Summary 2013 2014 2015 2016 2017 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 3.75 3.75 3.75 3.75 3.75 Accounting Technician 2.00 2.00 2.00 2.00 2.00 IT Specialist 2.00 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 1.00 1.00 1.00 1.00 Total FTEs 10.75 11.75 11.75 11.75 11.75 Budget Detail Wages,Payroll Taxes&Benefits $ 1,008,218 $ 1,057,271 $ 1,028,666 $ 1,222,580 $ 1,252,460 Supplies 2,791 4,946 2,826 6,000 6,000 Services&Charges 21,218 36,520 30,817 24,500 24,000 Total Finance Division $ 1,032,227 $ 1,098,737 $ 1,062,309 $ 1,253,080 $ 1,282,460 63 Fund:001 General Fund Spokane Valley Dept: 018 Operation&Administrative Services 2017 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 2016 • Redesigned recruitment materials to improve the quality of applicants considered for City positions. • Continued to build the foundation for a lasting Wellness Program through management support and employee involvement. • Redesigned the City's Mobile App to be consistent with the City's website. • Provided support to the Council in their selection of the City Manager. • Continued to provide guidance to City officials through the implementation of the Affordable Care Act. Goals for 2017 • Review City employee policies for compliance with regulations and efficiencies. • Review and archive records maintained by the Human Resources office. • Continue to support employee wellness through attainment of the AWC WellCity Award. • Support Economic Development through Mobile App and Website Support. • Provide Employee Ethics training to City Staff. Budget Summary 2013 2014 2015 2016 2017 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 $ 197,822 $ 208,063 $ 216,518 $ 230,698 $ 237,356 Supplies 640 679 434 700 730 Services&Charges 13,645 20,941 18,648 24,296 24,331 Total Human Resources Division $ 212,107 $ 229,683 $ 235,600 $ 255,694 $ 262,417 64 Fund:001 General FundSpokane Valley Dept:032 Public Works 2017 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 2016 • Implemented the approved capital projects. • Provided planning for development of the updated Transportation Improvement Plan. • Prepared and submitted grant applications for capital projects. • Completed the 2016 Pavement Preservation Projects as approved. Goals for 2017 • Prepare final design for Barker Road Grade Separation Project. • Manage the construction of a new City Hall building. • Implement approved capital projects. • Prepare and submit grant applications for capital projects. Budget Summary 2013 2014 2015 2016 2017 7 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 Capital Improvements Program Manager 0.0 0.0 0.0 1.0 1.0 Engineer 1.0 1.0 1.0 1.0 1.0 (1) Engineering Technician I 2.0 2.0 2.0 2.0 2.0 (1) Engineering Technician II 1.0 1.0 1.0 1.0 1.0 (1) MaintlConst Inspector 0.5 0.5 0.5 0.5 0.5 (2) Planning Grants Engineer 0.0 0.375 0.375 0.375 0.375 (3) Senior Engineer 2.0 2.0 1.0 0.0 0.0 Senior Engineer-Proj Mgmt 1.0 1.0 2.0 2.0 2.0 (1) Total FTEs 10.500 10.875 10.875 10.875 10.875 Budget Detail Wages,Payroll Taxes&Benefits $ 557,708 $ 647,097 $ 684,666 $ 876,364 $ 905,382 Supplies 12,975 10,481 11,149 18,000 14,750 Services&Charges 88,004 51,768 42,913 72,506 61,800 Nonrecurring expenses 0 9,540 0 0 0 Total Public Works $ 658,687 $ 718,886 $ 738,728 $ 966,870 $ 981,932 (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 Storm water fund. 65 Fund:001 General Fund Spokane Valley Dept:033 City Hall Operations and Maintenance 2017 Budget The Public Works Division provides management and oversight of the City Hall Operations and Maintenance Department. This department will be responsible for the overall operations and maintenance of the new City Hall facility,the construction of which broke ground in June of 2016 and is anticipated to be completed in the Fall of 2017.The building is located on a 3.38 acre site at the southeast corner of Sprague Avenue and Dartmouth Road.The City Hall Operations and Maintenance Department will be responsible for,among other things,the grounds maintenance,janitorial services,and maintenance of the HVAC and other building systems.This department will also be responsible for the operations and maintenance of other City facilities,such as the Valley Precinct and the Street Maintenance Shop,as time allows. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Maint Worker-Facilities 0.0 0.0 0.0 0.0 1.0 Total FTEs 0.0 0.0 0.0 0.0 1.0 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 0 $ 98,818 Supplies 0 0 0 0 30,000 Services&Charges 0 0 0 0 175,100 Total Administrative Division $ 0 $ 0 $ 0 $ 0 $ 303,918 66 Fund:001 General Fund Spokane Valley Community&Economic Development Dept:050 Administrative Division 2017 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 2016 • Oversaw completion of draft Comprehensive Plan,Retail Study,and Tourism Study. • Continued to implement a document control system for documents and forms. • Assisted in the selection process for the 2016 marketing consultant. • Assisted in the City Hall project. Goals for 2017 • Oversee the adoption process of development regulations. • Oversee completion of economic development strategic plan. • Oversee economic development marketing efforts. • Ensure customer service expectations are met. Budget Summary 2013 2014 2015 2016 2017 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 Total FTEs 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 215,537 $ 227,397 $ 237,232 $ 250,407 $ 261,262 Supplies 2,399 3,582 2,553 3,100 3,100 Services&Charges 12,449 12,022 10,785 18,600 18,600 Nonrecurring Professional Services 0 32,410 206,704 350,000 0 Total Administrative Division $ 230,385 $ 275,410 $ 457,274 $ 622,107 $ 282,962 67 Fund:001 General Fund Spokane Valley Community&Economic Development Dept:051 Economic Development Division 2017 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 2016 • Prepared draft Comprehensive Plan. • Developed a retail recruitment strategy. • Completed the Tourism Study. • Continued to collaborate with economic development partners. • Developed a GIS system to promote economic development applications. • Developed tools and programs to support small business retention and expansion. • Worked with Spokane County to extend sewer to the industrial areas. • Conducted selection process for a marketing consultant. • Researched Community Development Block Grant(CDBG)program opportunities. Goals for 2017 • Develop strategic plan for economic development. • Implement the retail recruitment strategy. • Continue to pursue infrastructure improvements to foster economic development. • Continue to implement strategies to promote business growth. • Implement the strategic marketing plan. • Continue to foster relationships with our economic development partners. • Refine the online GIS system to promote economic development. • Identify grant opportunities to support economic development initiatives. • Continue to research CDBG program opportunities. • Develop tools and programs to support small business retention and expansion. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Engineer 0.0 0.0 0.5 0.65 0.65 Senior Planner-CD 0.0 0.0 1.0 1.0 1.0 E.D.Project Specialist 0.0 0.0 1.0 1.0 1.0 Total FTEs 0.0 0.0 2.5 2.65 2.65 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 234,966 $ 317,257 $ 411,232 Supplies 0 0 6 1,100 1,100 Services&Charges 0 0 3,930 226,800 271,300 Nonrecurring Services&Charges 0 0 0 0 50,000 Total Administrative Division $ 0 $ 0 $ 238,902 $ 545,157 $ 733,632 68 Fund:001 General Fund Spokane Valley Community&Economic Development Dept:055/056 Development Services Division 2017 Budget The Development Services Division 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 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(SEPA). The right of way(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 2016 • Submitted final Forker Draw Floodplain Application to FEMA. • Completed Water District Research. • Participated in Regional Water Resource meetings. • Provided high quality customer service by maintaining engineering/planning review times of less than 2 weeks. • Completed research for regional mineral resources. • Participated in the creation of a City GIS system. • Completed the 2016 Annual Comprehensive Plan amendments. • Participated in the review of the Municipal Code for updates. • Completed marijuana regulations update. Goals for 2017 • Continue work on permit process and customer service improvement. • Continue work on Regional Low Impact Development Standards. • Continue to work on unstudied flood zones within the City. • Stay up to date with Regional Water right issues. • Assist in the finalization of Municipal Code updates. • Process the 2017 Comprehensive Plan amendments. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Development Services Manager 0.0 0.0 1.0 1.0 1.0 Engineer 1.5 1.5 2.0 2.0 2.0 Assistant Engineer 1.0 1.0 1.0 1.0 1.0 Senior Planner 0.0 0.0 1.0 1.0 1.0 Planner 0.0 0.0 2.0 2.0 2.0 Maint/Construction Inspector 2.0 1.0 1.0 1.0 1.0 Code Enforcement Officer 0.0 0.0 1.0 1.0 0.0 ROW Inspector 0.0 1.0 1.0 1.0 1.0 Office Assistant I 1.0 1.0 1.0 1.0 1.0 Senior Engineer 1.0 1.0 0.0 0.0 0.0 Engineering Technician 1.5 0.5 0.0 0.0 0.0 Total FTEs 8.00 7.00 11.00 11.00 10.00 Budget Detail Wages,Payroll Taxes&Benefits $ 1,488,269 $ 1,278,597 $ 1,115,465 $ 1,173,837 $ 1,119,084 Supplies 15,830 7,862 10,058 21,050 16,550 Services&Charges 246,181 257,861 246,964 271,750 263,350 Intergovernmental Payments 8,287 0 0 20,000 20,000 Total Engineering Division $ 1,758,567 $ 1,544,319 $ 1,372,487 $ 1,486,637 $ 1,418,984 69 Fund:001 General Fund Spokane Valley Community&Economic Development Dept:057 Building Division 2017 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. The Code Enforcement staff enforce zoning and building regulations on a complaint-driven basis. Accomplishments for 2016 • Created and implemented customer service survey. • Improved residential building review at the Permit Center Counter with increased counter reviews performed by Permit Facilitators and creation of a Multiple Use Plan Program. • Developed Swimming Pool,ROW Process&Submittal Guide as informational bulletins for public assistance. • Maintained and enhanced partnerships with Spokane,Spokane County and outside review agencies. • Implemented Code Enforcement process changes to incorporate Office Assistant and Building Inspector. • Residential Approach Inspection shifted to Building Inspectors. • Created and implemented a Regional Special Inspection and Fabricator program involvement in case creation and field investigation. • Coordinated progress reports on the Regional Hazard Mitigation Plan. • Created custom reports in the permitting system to meet the needs of outside reporting agencies. Goals for 2017 • Work on permit processes and customer service improvement plan to enhance the customer experience at the Permit Center. • Develop Performance Measures. • Coordinate on central reporting function in SMARTGov System. • Expand on-line permit system. • Incorporate data from SVFD records to facilitate re-use of existing vacant buildings and tenant spaces. • Increase efforts to establish and maintain relationships with regional jurisdictions and outside review agencies. • Implement Code Enforcement educational awareness program to inform the public. • Provide cross training of staff to facilitate coverage during times of lean staffing. • Coordinate with regional partners on the Hazard Mitigation Plan. Budget Summary 2013 2014 2015 2016 2017 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 2.0 2.0 2.0 1.0 Development Service Coordinator 1.0 1.0 1.0 1.0 1.0 Engineering Tech 0.0 1.0 1.0 1.0 1.0 Office Assistant I 1.0 1.0 2.0 2.0 2.0 Permit Facilitator 2.0 2.0 2.0 2.0 2.0 Plans Examiner 0.5 0.5 1.0 1.0 1.0 Senior Plans Examiner 1.0 1.0 1.0 1.0 1.0 Code Enforcement Officer 0.0 0.0 0.0 0.0 1.0 Assistant Planner 2.0 0.0 0.0 0.0 0.0 Total FTEs 11.50 12.50 14.00 14.00 14.00 Budget Detail Wages,Payroll Taxes&Benefits $ 932,662 $ 1,098,561 $ 1,126,106 $ 1,256,565 $ 1,279,834 Supplies 20,139 14,196 7,230 28,200 32,700 Services&Charges 55,966 65,457 60,112 59,400 78,300 Intergovernmental Payments 0 0 0 0 0 Capital Outlays 0 0 0 0 0 Interfund Charges 0 0 0 0 0 Total Building Division $ 1,008,767 $ 1,178,214 $ 1,193,448 $ 1,344,165 $ 1,390,834 70 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2017 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 2016 • Completed construction of a championship sand volleyball court and splashpad at Browns Park. • Completed construction of Phase 2 of the Pocket Dog Park at Valley Mission Park. • Installed new park signs at Edgecliff,Valley Mission and Valley Mission Dog Park. • Developed Request for Proposals for the Park Maintenance Contract. • Completed Discovery Splashpad activator renovation. • Completed all Park repairs related to the damage caused by Windstorm 2015. Goals for 2017 • Construct new splashpad and ADA pathway at Edgecliff Park. • Construct the Sullivan to Corbin section of the Appleway Trail. • Add amenities to the Valley Mission Dog Park. • Pursue land acquisitions for priority facilities such as disc golf,skateboard park,etc. Budget Summary 2013 2014 2015 2016 2017 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 $ 212,067 $ 224,275 $ 230,394 $ 246,821 $ 242,414 Supplies 6,427 2,493 2,688 5,900 7,400 Services&Charges 29,288 28,366 28,433 29,150 39,150 Nonrecurring Expenses 62,087 11,192 78,659 67,000 0 Total Parks Administration $ 309,869 $ 266,326 $ 340,174 $ 348,871 $ 288,964 71 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2017 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 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Budget Detail Supplies $ 1,568 $ 2,903 $ 3,444 $ 5,500 $ 5,500 Services&Charges 762,614 791,348 830,641 826,543 855,850 Total Parks Maintenance $ 764,182 $ 794,251 $ 834,085 $ 832,043 $ 861,350 72 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2017 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 2016 • Continued to provide quality recreation programs for the Spokane Valley community. • Designed Recreation Brochure in house utilizing Adobe Creative Suite software. • Actively looked for sponsorship opportunities within the community in regards to the Summer Outdoor Movies. • Continued to foster relationships with community partners. Goals for 2017 • Research and offer new recreation programs that serve the needs of the community. • Continue to provide quality recreation programs for the Spokane Valley community. • Foster relationships with community partners. • Offer affordable community events for families,teens,and the community. Budget Summary 2013 2014 2015 2016 2017 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 $ 151,084 $ 142,074 $ 164,092 $ 161,397 $ 168,645 Supplies 5,760 6,740 7,791 7,600 8,200 Services&Charges 54,381 50,350 65,832 72,200 59,150 Total Recreation Division $ 211,225 $ 199,164 $ 237,715 $ 241,197 $ 235,995 73 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2017 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 2016 • Maintained a full summer swimming program. • Researched and re-evaluated our pool rental pricing structure. • Installed pool stairs at Valley Mission Pool. • Researched marketing opportunities to more effectively promote the outdoor pools. • Updated the cash register systems at all three pools. Goals for 2017 • Maintain a full summer swimming program. • Replace main drain piping from the drain boxes at Terrace View and Park Road Pools. • Replace the gutter line running to the outdoor drain pit at Valley Mission Pool. • Explore options to the Terrace View Pool tank paint peeling problem. • Improve coordination and communication among teams for the summer swim meet season. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Budget Detail Supplies $ 9,081 $ 424 $ 351 $ 14,000 $ 3,200 Services&Charges 469,765 436,604 487,564 447,200 454,150 Nonrecurring Services&Charges 0 0 0 0 12,000 Total Aquatics Division $ 478,846 $ 437,028 $ 487,915 $ 461,200 $ 469,350 74 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2017 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 2016 • Offered more Tuesday evening classes in the Senior Wing of CenterPlace. • Continued relationship with YMCA to offer reduced daily rates for Senior Center members. • Developed and fostered relationship with Walgreens to bring pharmacy students to counsel seniors on medications, provide blood pressure checks and offer flu shots. • Researched and developed class for seniors needing help with IT issues. • Worked closely with the Parks&Recreation Director on programs being offered to seniors. Goals for 2017 • Continue to enhance the resource and referral information at the reception desk to be better equipped to handle calls. • Offer"Get Acquainted Open House"to allow the public to visit the CenterPlace and the Senior Center to learn about programs and activities offered by the Senior Center and the ACT 2 Community Colleges. • Continue to work with the Board on providing board training classes. • Work closely with the Parks&Recreation Director on programs being offered to seniors. • Offer more Tuesday evening classes in the Senior Wing of CenterPlace. Budget Summary 2013 2014 2015 2016 2017 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 0.0 0.0 0.0 Budget Detail Wages,Payroll Taxes&Benefits $ 77,018 $ 79,872 $ 82,625 $ 88,481 $ 89,416 Supplies 2,157 1,460 454 1,600 1,600 Services&Charges 1,897 2,514 2,298 5,700 4,900 Capital Outlay 0 0 0 0 0 Total Senior Center Division $ 81,072 $ 83,846 $ 85,377 $ 95,781 $ 95,916 75 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2017 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 a high tech lecture hall. The facility combines with Mirabeau Meadows Parks and Mirabeau Springs to form a regional focal point for Northeastern Washington and Northern Idaho. Accomplishments for 2016 • Increased rental space on second floor by adding two large meeting rooms. • Ensured a long-term catering contract. • Increased events by 10%over 2015. • Negotiated renewal lease with the Community Colleges of Spokane. • Increased number of part-time staff to cover the increasing number of events. Goals for 2017 • Upgrade the audio and visual systems and equipment in the Great Room and Small Dining Room. • Replace carpeting in Rooms 109,110 and 213. • Update existing Business and Marketing Plan. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Customer Relations/Facilities Coordinator 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 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 $ 393,283 $ 402,329 $ 442,655 $ 475,925 $ 491,639 Supplies 60,011 63,834 53,919 76,024 73,524 Services&Charges 319,699 335,273 306,138 330,274 326,295 Nonrecurring Services&Charges 0 0 0 0 24,750 Nonrecurring Capital Outlays 0 0 0 0 345,000 Total CenterPlace Division $ 772,993 $ 801,436 $ 802,712 $ 882,223 $ 1,261,208 76 Fund:001 General Fund Spokane Valley Dept:090 General Government 2017 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/bond payments and 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 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Supplies PEG COSV Small tools&Minor Equip $ 336 $ 0 $ 0 $ 3,700 $ 0 Business Registrations 293 0 0 500 0 Employee Recognition-Operating Supplies 13 2,667 1,490 3,000 3,000 Employee Recognition&Safety Program 1,925 0 299 0 0 Office&Operating Supplies 937 0 187 0 0 Small Tools&Minor Equipment 4,114 3,738 7,443 4,000 7,250 Computer Hardware-Non Capital 35,165 30,671 38,277 26,900 107,700 Computer Software-Non Capital 6,519 32,631 5,093 34,500 12,500 Fuel 3 104 0 0 0 Office&Operating Supplies 10,313 8,418 16,753 15,000 15,000 59,618 78,229 69,542 87,600 145,450 Other Services&Charges Professional Services-Misc Studies 87,229 117,149 22,907 205,500 200,000 Accounting&Auditing 70,119 66,714 77,474 80,000 90,000 Uncollectible Accounts Expense 0 0 2,095 0 0 Postage 1,168 316 10,428 1,500 2,500 Telephone Service 9,088 8,790 8,168 9,000 9,000 Cell Phones 1,561 1,335 949 1,600 1,500 Internet Service 13,994 10,404 11,458 11,000 11,800 City Wide Records Management 0 3,610 5,870 10,000 10,000 City Hall Rent 425,246 412,681 426,964 439,000 0 Facility Repairs&Maintenance 1,430 1,318 8,897 5,000 5,000 Interfund Vehicle Lease 0 0 0 500 1,000 Equip Repair&Maint-Hardware Support 23,457 51,617 40,450 42,000 31,400 IT Support 71,221 13,323 20,855 28,300 72,700 Software Licenses&Maintenance 90,502 66,369 65,353 73,100 70,940 Merchant Charges(Bankcard Fees) 1,347 1,765 231 2,000 2,000 Equip Rental 3,300 3,300 1,921 3,300 4,260 Printing&Binding 432 0 536 0 500 Miscellaneous Services 5,938 2,143 5,256 10,000 10,000 Vehicle Rental 1,559 0 0 1,500 0 General Operating Leases:Computer 41,039 49,645 45,347 51,000 51,000 Economic Development-Site Selector 8,813 9,139 8,542 10,000 10,000 Professional Services-Economic Devel. 89,041 87,498 70,330 0 0 Contracted economic dev. 0 0 16,560 43,000 0 City Economic Development 202,430 196,877 153,350 0 0 Professional Services-Social Services 55,809 61,724 90,974 0 0 Alcohol Treatment:Liquor Excise Tax 1,213 3,439 5,012 0 0 Alcohol Treatment:Liquor Profits 16,279 16,258 16,131 20,000 22,000 Outside Agencies-Social Svc&Econ.Dev. 0 0 0 107,000 150,000 $ 1,222,215 $ 1,185,414 $ 1,116,058 $ 1,154,300 $ 755,600 (continued to next page) 77 Fund:001 General Fund Spokane Valley Dept:090 General Government 2017 Budget Budget Summary,continued 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Intergovernmental Services Election Costs $ 85,304 $ 0 $ 16,347 87,000 $ 90,000 Voter Registration 87,964 84,764 97,091 90,000 $ 100,000 Taxes and assessments 7,278 6,909 5,617 7,500 $ 7,500 Spokane County Air Pollution Authority 115,720 115,915 115,915 117,000 $ 131,000 296,266 207,588 234,970 301,500 328,500 Capital Outlays PEG COSV Broadcast-Office Fum. 2,131 0 0 0 0 PEG COSV Broadcast-Software/hardware 24,936 30,596 0 0 0 Copy Machine 0 0 21,145 3,500 0 Computer Software/Hardware 0 0 0 39,500 0 Compuer Hardware-Capital 15,035 68,956 0 0 10,000 Construction-Pavement Preservation 855,857 0 0 0 0 897,959 99,552 21,145 43,000 10,000 Debt Service:Principal Interest and Other Debt Service Costs 301 435 425 0 0 Interfund Payments for Service Transfer out-#106(solid waste educ.) 0 60,000 0 0 0 Transfer out-#122(Replenish Winter Weather Rese 0 0 0 16,418 0 Transfer out-#204(City Hall bond payment) 0 0 0 198,734 397,350 Transfer out-#309(park capital proj) 50,000 242,298 115,575 230,300 160,000 Transfer out-#309(Parks&Rec Windstorm Damag 0 0 0 37,225 0 Transfer out-#310(bond pmt>$434.6 lease) 0 0 67,600 72,500 0 Transfer out-#310(city hall o&m costs) 0 0 271,700 271,700 0 Transfer out-#311 (pvmnt preservation) 0 888,823 920,000 943,800 953,200 Transfer out-#312(capital reserve fund) 7,826,207 2,443,507 1,783,512 1,828,723 0 Transfer out-#501(CenterPlace kitchen reserve) 0 0 0 0 36,600 Transfer out-#502(risk management) 319,000 325,000 325,000 325,000 350,000 8,195,207 3,959,628 3,483,387 3,924,400 1,897,150 Miscellaneous SCRAPS pass through 0 57,259 1,099 1,100 1,300 Supplies-10th Anniversary 3,818 0 0 0 0 Advertising-10th Anniversary 12,030 0 0 0 0 City Hall Remodel 0 0 12,842 0 0 15,848 57,259 13,941 1,100 1,300 Nonrecurring/Nonrecurring Capital City Hall lease payment(2017 final year) 0 0 0 0 513,100 Transfer out-#303(pines underpass design) 0 0 0 0 1,200,000 Copy Machine 0 0 0 0 20,000 Computer Hardware-Capital 0 0 65,610 95,000 80,000 Computer Software-Capital 0 20,789 18,931 13,000 0 0 20,789 84,541 108,000 1,813,100 Total Governmental Division $ 10,687,414 $ 5,608,894 $ 5,024,009 $ 5,619,900 $ 4,951,100 78 Fund: 101 Street Fund Spokane Valley 2017 Budget The Street Fund was established to account for the activities associated with the provision of efficient and safe movement of both motorized and non-motorized vehicles,as well as pedestrians within the limits of the City,and coordinate convenient coordinate convenient interconnect to the regional transportation system. Maintenance 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 2016 • Optimized traffic signals on selected corridors. • Applied for grants and worked with various schools to install flashing beacons at crosswalks. • Renewed contracts with private contractors for street maintenance services. • Continued to define and implement a fleet maintenance program. • Developed non-intrusive traffic signal detection replacement plan. • Replaced over 2,000 signs throughout the City. • Upgraded pedestrian indicators at all City traffic signals. • Upgraded traffic signal software at all City traffic signals. • Assisted with TAP/CMAW/STP/CDBG and TIB grant applications. Goals for 2017 • Update and implement the pavement management plan. • Implement and renew contracts with private contractors for street maintenance services. • Optimize traffic signal timings on selected corridors. • Enhance safety at selected traffic signals. • Use traffic signal software to obtain traffic counts on arterial roadways. • Develop a maintenance program for traffic signal components to address aging infrastructure. Budget Summary 2013 2014 2015 2016 2017 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 2.35 2.35 2.35 * Assistant Engineer-Traffic/Planning 1.0 1.0 1.0 1.0 1.0 Planning Grants Engineer 0.0 0.375 0.375 0.375 0.375 Total FTEs 5.0 5.375 5.725 5.725 5.725 Interns 1.0 2.0 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 (continued to next page) 79 Fund:101 Street Fund Spokane Valley 2017 Budget Budget Summary,continued 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Utility Tax $ 2,562,722 $ 2,461,060 $ 2,257,184 $ 2,340,000 $ 2,200,000 Motor Vehicle Fuel Tax 1,868,055 1,878,476 1,935,629 2,004,900 2,040,300 Multimodal Transportation Revenue 0 0 0 0 98,868 Right-of-Way Maintenance Fee 0 0 0 50,000 50,000 Investment Interest 2,920 2,037 3,212 3,000 4,000 Grants 172,530 15,150 0 0 0 Transfers in 27,375 23 0 0 0 Miscellaneous 14,702 9,414 25,167 10,000 10,000 Non recurring insurance proceeds 0 0 0 46,000 0 Total revenues 4,648,304 4,366,160 4,221,192 4,453,900 4,403,168 Expenditures Wages, Payroll Taxes&Benefits 582,013 681,165 738,144 734,604 746,872 Supplies 108,110 119,742 116,659 111,500 105,000 Services&Charges 2,152,294 2,030,250 2,041,934 2,133,754 2,168,151 Snow Operation 485,717 508,353 465,064 430,000 468,000 Intergovernmental Payments 797,275 876,268 707,315 770,000 795,000 Transfers out-#001 39,700 39,700 39,700 39,700 39,700 Transfers out-#311 (pvmnt pres) 282,000 282,000 206,618 67,342 67,342 Transfers out-#501 (non-plow) 10,777 10,777 12,077 31,000 23,250 Transfers out-#501 (plow replace) 150,000 75,000 0 40,000 77,929 Signal Detection Replacement Program 0 0 0 0 40,000 Traffic Signal Replacement Program 0 0 0 0 200,000 Capital construction and equipment 205,621 100,894 155,849 0 0 Nonrecurring Expenditures Durable striping at Trent&Argonne 0 0 0 0 75,000 Spare traffic signal equipment 0 0 0 0 30,000 Battery backups for intersections 0 0 0 0 15,000 Traffic Signal Cabinet Replacement 0 0 0 46,000 0 Maintenance facility storage unit 0 0 0 5,000 0 Signal detection equipment upgrades 0 0 0 20,000 0 Total expenditures 4,813,507 4,724,149 4,483,360 4,428,900 4,851,244 Revenues over(under)expenditures (165,203) (357,989) (262,168) 25,000 (448,076) Beginning fund balance 2,228,437 2,063,234 1,705,245 1,443,077 1,468,077 Ending fund balance $ 2,063,234 $ 1,705,245 $ 1,443,077 $ 1,468,077 $ 1,020,001 80 Fund: 103 Paths&Trails Fund Spokane Valley 2017 Budget The State of Washington collects a$0.494 per gallon motor vehicle fuel tax at the pump.Of this amount,the State remits a portion of the tax back to cities on a per capita basis. For 2017 the Municipal Research and Services Center estimates the distribution back to cities will be$21.76 per person. Based upon a City of Spokane Valley population of 94,160(per the Washington State Office of Financial Management on April 1,2016)we anticipate the City will collect$2,048,900 in 2017. RCW 47.030.050 specifies that 0.42%of this tax must be expended for the construction of paths and trails and based upon the 2017 revenue estimate this computes to$8,600. The balance or$2,040,300 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 within 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. The City transferred$50,000 in 2014 and$9,300 in 2016 to the Parks Capital Projects Fund#309 to be applied towards the Phase 2 Appleway Trail Project from University to Pines. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Motor Vehicle Fuel(Gas)Tax $ 7,879 $ 7,923 $ 8,226 $ 8,500 $ 8,600 Investment Interest 51 34 0 0 0 Total revenues 7,930 7,957 8,226 8,500 8,600 Expenditures Capital Outlay 0 0 0 0 0 Transfers out- #309 0 50,000 0 9,300 0 Total expenditures 0 50,000 0 9,300 0 Revenues over(under)expenditures 7,930 (42,043) 8,226 (800) 8,600 Beginning fund balance 63,941 71,871 29,828 38,054 37,254 Ending fund balance $ 71,871 $ 29,828 $ 38,054 $ 37,254 $ 45,854 81 Fund: 104 Hotel/Motel Tax-Tourism Facilities Fund Spokane Valley il2017 Budget The Hotel/Motel Tax -Tourism Facilities Fund accounts for the receipt and expenditure of a special excise tax of 1.3%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 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Hotel/Motel Tax $ 0 $ 0 $ 182,236 $ 377,000 $ 377,000 Investment Interest 0 0 111 0 0 Total revenues 0 0 182,347 377,000 377,000 Expenditures Capital Outlay 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 0 0 182,347 377,000 377,000 Beginning fund balance 0 0 0 182,347 559,347 Ending fund balance $ 0 $ 0 $ 182,347 $ 559,347 $ 936,347 Hotel/Motel Tax Fund Spokane Valley 2017 Budget The Hotel/Motel Fund accounts for the receipt and expenditure of a special excise tax of 2%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 tourism promotion,acquisition or operation of tourism-related facilities,and marketing of special events and festivals designed to attract tourists. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Hotel/Motel Tax $ 518,672 $ 549,267 $ 581,237 $ 580,000 $ 580,000 Investment Interest 387 299 484 300 500 Total revenues 519,059 549,566 581,721 580,300 580,500 Expenditures Tourism Promotion 458,904 546,545 484,968 499,350 604,000 Transfers out- #001 30,000 30,000 30,000 30,000 30,000 Transfers out- #309 0 0 68,000 60,650 0 Total expenditures 488,904 576,545 582,968 590,000 634,000 Revenues over(under)expenditures 30,155 (26,979) (1,247) (9,700) (53,500) Beginning fund balance 206,772 236,927 209,948 208,701 199,001 Ending fund balance $ 236,927 $ 209,948 $ 208,701 $ 199,001 $ 145,501 82 Fund:106 Solid Waste Fund Spokane Valley 2017 Budget In 2003,the City of Spokane Valley entered into an interlocal 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 were 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. During 2016,the City received a payment in the amount of$56,035,which was receipted in the Street Fund#101 to offset road maintenance costs. 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 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 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Sunshine administrative fee $ 0 $ 0 $ 125,000 $ 125,000 $ 125,000 Investment interest 0 0 0 0 0 Grant Proceeds 0 0 0 53,500 26,800 Transfer in-#001 0 60,000 0 0 0 Total revenues 0 60,000 125,000 178,500 151,800 Expenditures Education&Contract Administration 0 52,661 49,040 138,075 111,375 Transfers out-#001 (reimbursement) 0 0 40,425 40,425 40,425 Total expenditures 0 52,661 89,465 178,500 151,800 Revenues over(under)expenditures 0 7,339 35,535 0 0 Beginning fund balance 0 0 7,339 42,874 42,874 Ending fund balance $ 0 $ 7,339 $ 42,874 $ 42,874 $ 42,874 83 Fund:X107 PEG Fund Spokane Valley 2017 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 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Comcast PEG contribution $ 0 $ 0 $ 81,806 $ 90,000 $ 80,000 Investment interest 0 0 0 0 0 Transfer in from fund#001 0 0 267,333 0 0 Total revenues 0 0 349,139 90,000 80,000 Expenditures PEG Reimbursement-CMN 0 0 0 117,000 0 New City Hall Council Chambers 0 0 0 25,000 250,000 Capital Outlay 0 0 47,957 12,500 12,500 Total expenditures 0 0 47,957 154,500 262,500 Revenues over(under)expenditures 0 0 301,182 (64,500) (182,500) Beginning fund balance 0 0 0 301,182 236,682 Ending fund balance $ 0 $ 0 $ 301,182 $ 236,682 $ 54,182 84 Fund: 120 CenterPlace Operating Reserve Fund Spokane Valley I_ _IL 2017 Budget The CenterPlace Operating Reserve Fund was established as a result of a 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 2013 2014 2015 2016 2017 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 50,787 0 0 0 0 Total expenditures 50,787 0 0 0 0 Revenues over(under)expenditures (50,787) 0 0 0 0 Beginning fund balance 350,787 300,000 300,000 300,000 300,000 Ending fund balance $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Fund: 121 MUM Service Level Stabilization Reserve Fund Spokane Valley 2017 Budget The City has committed to maintaining an ending fund balance in the General Fund 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 reserves 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$3.29 million. This represents a Fiscal Policy of the City that is also stated in the City Manager's 2017 Budget Message located near the front of this budget document. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Investment Interest $ 6,971 $ 4,697 $ 8,590 $ 6,500 $ 21,900 Transfer-in 0 0 0 0 0 Total revenues 6,971 4,697 8,590 6,500 21,900 Expenditures Operations 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 6,971 4,697 8,590 6,500 21,900 Beginning fund balance 5,441,531 5,448,502 5,453,199 5,461,789 5,468,289 Ending fund balance $ 5,448,502 $ 5,453,199 $ 5,461,789 $ 5,468,289 $ 5,490,189 85 Fund: 122 Winter Weather Reserve Fund Spokane Valley 2017 Budget The Winter Weather Reserve Fund was established through Ordinance No.05-018 to provide an emergency reserve for use during unusually harsh winters and storms where the Street Fund#101 budget and fund balance are inadequate to accommodate the amount of related street maintenance,including but not limited to snow plowing,sanding,and deicing,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. Due to the uncertainty of when this fund might be drawn upon we actually budget the same$500,000 in both 2016 and 2017 even though we recognize there exists only$500,000 to address this issue if it should arise. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Investment Interest $ 677 $ 455 $ 833 $ 600 $ 600 Transfer-in#001 0 0 0 16,418 0 FEMA Grant Proceeds 0 0 0 38,510 0 Total revenues 677 455 833 55,528 600 Expenditures Snow removal 0 0 60,381 500,000 500,000 Total expenditures 0 0 60,381 500,000 500,000 Revenues over(under)expenditures 677 455 (59,548) (444,472) (499,400) Beginning fund balance 502,888 503,565 504,020 444,472 500,000 Ending fund balance $ 503,565 $ 504,020 $ 444,472 $ 0 $ 600 Fund: 123 Civic Facility Replacement Fund Spokane Valley 2017 Budget This fund was initially created to set aside money for the eventual replacement of CenterPlace and the police precinct building located 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 preservation 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 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Investment Interest $ 1,608 $ 1,083 $ 1,323 $ 700 $ 0 Transfers in-#001 0 0 0 0 0 Total revenues 1,608 1,083 1,323 700 0 Expenditures Transfers out-#311 616,285 616,284 616,284 559,808 0 Total expenditures 616,285 616,284 616,284 559,808 0 Revenues over(under)expenditures (614,677) (615,201) (614,961) (559,108) 0 Beginning fund balance 2,403,947 1,789,270 1,174,069 559,108 0 Ending fund balance $ 1,789,270 $ 1,174,069 $ 559,108 $ 0 $ 0 86 Ftid NA I Limited Tax General Obligation(LTGO)Bond-Debt Service Fund Spokane Valley 2017 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 non-voted 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 remained 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 1,2017,the outstanding balance on this portion of the bond issue will be$5,065,000. • $1,385,000 remained 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 1,2017,the outstanding balance on this portion of the bond issue will be$995,000. In 2016 the City issued$7,275,000 in LTGO bonds,the proceeds of which will be used to finance the construction of a new City Hall building along with$6.3 million of City cash that has been set aside for this purpose.These bonds will be paid off in annual installments over the 30-year period ending December 1,2045.Annual debt service payments on these bonds are provided by transfers in from the General Fund.At January 1,2017,the outstanding balance on the bond issue will be $7,200,000. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget • Revenues Spokane Public Facilities District $ 437,120 $ 441,520 $ 373,800 $ 380,300 $ 379,750 2014 LTGO Bond issue proceeds 0 7,661,000 0 0 0 Transfers in-#001 0 0 0 198,734 397,350 Transfers in-#301 92,951 93,152 82,150 83,400 79,426 Transfers in-#302 92,952 93,151 82,150 83,400 79,425 Total revenues 623,023 8,288,823 538,100 745,834 935,951 Expenditures Debt Service Payment-CenterPlace 437,120 441,520 374,083 380,300 379,750 Debt Service Payment-Roads 185,903 186,303 164,017 166,800 162,900 Debt Service Payments-City Hall 0 0 0 198,734 397,350 2003 LTGO Bond retirement 0 7,549,000 0 0 0 2014 LTGO Bond issue costs 0 112,000 0 0 0 Total expenditures 623,023 8,288,823 538,100 745,834 940,000 Revenues over(under)expenditures 0 0 0 0 (4,049) Beginning fund balance 4,049 4,049 4,049 4,049 4,049 Ending fund balance $ 4,049 $ 4,049 $ 4,049 $ 4,049 $ 0 87 Fund:301 REET 1 Capital Projects Fund Spokane Valley 2017 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,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;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 funds 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 the LTGO Debt Service Fund#204. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues REET 1-Taxes $ 707,104 $ 790,781 $ 1,065,789 $ 1,000,000 $ 800,000 Investment Interest 1,138 793 1,654 1,000 1,700 Total revenues 708,242 791,574 1,067,443 1,001,000 801,700 Expenditures Transfers out-#204 92,951 89,559 82,150 83,400 79,426 Transfers out-#303 589,534 58,607 567,113 742,503 437,002 Transfers out-#311(pavement preservation) 150,000 184,472 251,049 365,286 660,479 Transfers out-#314(Barker Grade Separation) 0 0 0 20,000 280,079 Total expenditures 832,485 332,638 900,312 1,211,189 1,456,986 Revenues over(under)expenditures (124,243) 458,936 167,131 (210,189) (655,286) Beginning fund balance 1,092,264 968,021 1,426,957 1,594,088 1,383,899 Ending fund balance $ 968,021 $ 1,426,957 $ 1,594,088 $ 1,383,899 $ 728,613 88 Fund:302 REET 2 Capital Projects Fund Spokane Valley 2017 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 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 funds 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 the LTGO Debt Service Fund#204. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues REET 2-Taxes $ 614,929 $ 776,648 $ 1,065,789 $ 1,000,000 $ 800,000 Investment Interest 1,349 909 1,661 1,000 1,700 Total revenues 616,278 777,557 1,067,450 1,001,000 801,700 Expenditures Transfers out-#101 27,376 23 0 0 0 Transfers out-#204 92,951 89,559 82,150 83,400 79,425 Transfers out-#303 153,243 501,736 331,099 382,816 1,173,230 Transfers out-#311 (pavement preservation) 150,000 184,472 251,049 365,286 660,479 423,570 775,790 664,298 831,502 1,913,134 Revenues over(under)expenditures 192,708 1,767 403,152 169,498 (1,111,434) Beginning fund balance 1,130,670 1,323,378 1,325,145 1,728,297 1,897,795 Ending fund balance $ 1,323,378 $ 1,325,145 $ 1,728,297 $ 1,897,795 $ 786,361 89 Street Capital Projects Fund Spokane Valley 2017 Budget The Street Capital Projects Fund accounts for monies used to finance street construction and reconstruction projects adopted in the City's 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 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 2,870,539 $ 1,825,974 $ 8,223,959 $ 8,149,606 $ 3,756,320 Developer Contribution 0 541 363,894 275,087 40,097 Miscellaneous 78 21 87 0 0 WSDOT-Safe Routes 604,811 0 0 0 0 Transfers in-#101 138 5,038 123,955 0 0 Transfersin-#301 589,535 29,647 567,113 742,503 437,002 Transfersin-#302 153,243 530,695 331,099 382,816 1,173,230 Transfers in-#311 77,720 0 0 0 0 Transfers in-#312 Appleway Landscaping 8,348 253,645 0 0 0 Transfers in-#312 Sullivan Rd W Bridge 0 443,688 42,730 1,467,779 10,000 Transfers in-#312 Pines Underpass Pinecroft 0 0 0 0 0 Transfers in-#312 Euclid Ave-Flora to Barker 0 0 0 50,000 1,750,000 Transfers in-#312 8th&Carnahan Intersection 0 0 0 415,000 0 Total revenues 4,304,412 3,089,249 9,652,837 11,482,791 7,166,649 Expenditures 005 Pines/Mansfield,Wilbur Rd.to Pines 228,275 0 0 0 0 060 Argonne Rd Corridor Upgrade SRTC 06-31 33,665 206,188 1,248,474 0 0 061 Pines(SR27)ITS Improvement SRTC 06-26 1,000,462 67 0 0 0 112 Indiana Ave.Extension-3600 3,877 0 0 0 0 113 Indiana/Sullivan Intersection PCC 96,313 113 0 0 0 115 Sprague Ave Resurfacing-Evergreen to Sulliva 11,799 0 0 0 0 123 Mission Ave-Flora to Barker 5,647 40,012 37,956 332,566 500,000 141 Sullivan&Euclid PCC 0 49,556 9,848 1,981,060 2,150,000 142 Broadway @ Argonne/Mullan 73,792 3,564 17,771 0 0 145 Spokane Valley-Millwood Trail 429 1,924 0 0 0 146 24th Ave Sidewalk-Adams to Sullivan 270,962 0 0 0 0 149 In-House Design-Sidewalk Infill 187,148 288,304 8,177 5,000 0 154 Sidewalk&Transit Stop Accessibility 4,991 435 0 0 0 155 Sullivan Rd W Bridge Replacement 819,702 925,421 6,482,244 5,237,650 10,000 156 Mansfield Ave.Connection 137,578 669,533 712,689 5,000 0 159 University Rd/1-90 Overpass Study 170,805 32,716 2,842 0 0 160 Evergreen-16th to 32nd reconstruction 1,069 0 0 0 0 166 Pines Rd(SR27)&Grace Ave.Intersect study 28,093 50,516 47,322 491,331 333,224 167 City wide safety improvements 1,722 12,159 315,032 228,127 5,000 168 Wellesley Ave&Adams rd.sidewalk 638,773 3,318 0 0 0 169 Argonne/Mullan corridor safety-Indiana to Bro 53,463 558 0 0 0 (continued to next page) 90 1'1a?4,."'„-:, , Street Capital Projects Fund Spokane Valley 2017 Budget 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Expenditures,continued 170 Argonne Rd-Empire to Knox 118,990 0 0 0 0 171 Sprague aver ADA sdwlk improvement(Havar 100,316 0 0 0 0 175 Sullivan UP Tracks UC(SB)Resurfacing 175,955 0 0 0 0 176 Appleway Trail Design 103,303 0 0 0 0 177 Sullivan Road Corridor Traffic Study 38,139 106,305 19,332 0 0 181 Citywide Traffic Sign Upgrade 100,956 96,561 0 0 0 185 Appleway Landscaping-Phase 1 8,348 253,695 0 0 0 191 Vista Rd BNSF Xing Safety 4,880 48,501 190 0 0 196 8th Avenue-McKinnon to Fancher 0 264,439 396 0 0 201 ITS Infill Project Phase 1 (PE START 2014) 0 149 37,884 271,357 300,000 205 Sprague/Barker Intersection Improvement 0 191 13,132 0 40,097 206 Sprague/Long Sidewalk Project 0 7,513 304,933 5,000 0 207 Indiana&Evergreen Transit Access Improv. 0 0 3,345 0 5,000 210 Alcazar Driveway Reconstruction 0 7,902 0 0 0 211 Sullivan Trent to Wellesley 0 3,465 100,649 0 0 213 Sprague/Thierman Intersection 0 5,038 0 0 0 220 Houk-Sinto-Maxwell St Preservation 0 0 15,555 0 0 221 McDonald Rd Diet(16th to Mission) 0 0 7,229 559,200 5,000 222 Citywide Reflective Signal Backplates 0 0 0 40,500 36,000 223 Pines Rd Underpass @ BNSF&Trent 0 0 2,000 0 0 224 Mullan Rd Street Preservation Project 0 0 133,069 0 0 229 32nd Ave Preservation Project 0 0 0 0 2,500 234 Seth Woodard Sidewalk Improvements 0 0 6,204 361,000 5,000 238 Mirabeau Pkwy&Pines(SR-27)Traffic Signal 0 0 0 350,000 5,000 239 Bowdish Sidewalk-8th to 12th 0 0 0 400,000 471,342 247 8th&Camahan Intersection Improvements 0 0 0 415,000 0 xxx N.Sullivan Corridor ITS Projects(PE start 201 0 0 0 0 110,486 249 Sullivan/Wellesley Intersection 0 0 0 0 198,000 250 9th Ave.Sidewalk 0 0 0 0 240,000 251 Euclid Ave.-Flora to Barker 0 0 0 50,000 1,750,000 xxx Contingency 0 0 0 750,000 1,000,000 xxx Argonne Rd.Preservation 0 0 123,955 0 0 STEP Projects(106,129,130,131,151,152) 236 0 0 0 0 Misc.Road Projects 814 0 0 0 0 Total expenditures 4,420,503 3,078,147 9,650,228 11,482,791 7,166,649 Revenues over(under)expenditures (116,091) 11,102 2,608 0 0 Beginning fund balance 177,918 61,827 72,930 75,538 75,538 Ending fund balance $ 61,827 $ 72,930 $ 75,538 $ 75,538 $ 75,538 91 FUrtds 309 Park Capital Projects Fund Spokane Valley 2017 Budget The Park Capital Projects Fund was created to account for park related capital improvements. The 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 has occurred with transfers in from the Paths and Trails Fund#103 and the Capital Reserve Fund#312,which have been applied towards various sections of the Appleway Trail project. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 0 $ 0 $ 1,560 $ 410,132 $ 3,217,267 FEMA Grant Proceeds-Windstorm 0 0 0 21,875 0 Transfers in-#001 (General Fund) 50,000 242,298 115,575 267,525 160,000 Transfers in-#103(Paths&Trails) 0 50,000 0 9,300 0 Transfers in-#105 0 0 68,000 60,650 0 Transfers in-#312(Capital Reserve) 0 911,433 524,812 72,940 561,915 Investment Interest 660 444 813 500 800 Contributions and Donations 25,000 7,850 0 0 0 Total revenues 75,660 1,212,025 710,760 842,922 3,939,982 Expenditures City entry sign 0 0 0 70,000 0 172 CenterPlace S.Landscape Development 9,131 0 0 0 0 176 Appleway Trail-Phase 1 (Univ.to Pines) 0 961,482 524,569 9,300 0 195 Discovery Playground equipment 16,172 51,280 0 0 0 203 5 Sand volleyball courts at Browns Park 0 14,390 241,480 0 0 208 Old Mission Trailhead 0 49,798 68 0 0 209 Park signs(3) 0 19,319 0 0 0 216 Edgecliff sewer connection 0 9,518 0 0 0 217 Edgecliff picnic shelter 0 7,297 104,257 0 0 225 Pocket dog park-phase 1 0 0 108,436 400 0 227 Appleway Trail(Pines to Evergreen) 0 0 1,803 206,297 1,925,957 231 Old Mission Trailhead Landscaping 0 0 47,066 0 0 232 Shade Structure:Discovery Park 0 0 36,340 0 0 237 Appleway Trail(Sullivan to Corbin) 0 0 0 276,775 1,853,225 241 Pocket dog park-phase 2 0 0 0 81,300 0 242 Browns Park Splashpad 0 0 0 146,500 0 243 Browns Park championship volleyball 0 0 0 60,650 0 244 Park signs(3) 0 0 0 20,500 0 245 Terrace View playground equip(windstorm 0 0 0 59,100 0 Edgecliff Park Splashpad 0 0 0 0 125,000 Total expenditures 25,303 1,113,084 1,064,019 930,822 3,904,182 Revenues over(under)expenditures 50,357 98,941 (353,259) (87,900) 35,800 Beginning fund balance 302,422 352,779 451,720 98,461 10,561 Ending fund balance $ 352,779 $ 451,720 $ 98,461 $ 10,561 $ 46,361 92 Fund:310 Civic Facility Capital Projects Fund Spokane Valley 2017 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 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 had planned 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 first had to 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 were 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 was the amount we anticipated 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 was our 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 was to"create"this appropriation capacity within the General Fund. These amounts will be transferred out to the General Fund in 2016 and 2017 in order to cover lease payments for the current City Hall location in years in which the City has both a lease payment and a bond payment for the new City Hall building. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Investment Interest $ 1,771 $ 1,193 $ 2,113 $ 1,200 $ 1,200 Sale of Land 0 839,285 0 0 0 Miscellaneous 0 0 0 0 0 Transfers in-#001: -Future C.H.bond pmt>$434.6k lease pmt 0 0 67,600 72,500 0 -Future C.H.o&m costs 0 0 271,700 271,700 0 Transfers in-#312 0 0 58,324 0 0 Total revenues 1,771 840,478 399,737 345,400 1,200 Expenditures West Gateway at Thierman 9,942 0 0 0 0 Transfers out-#001: 0 0 0 198,734 490,500 Professional services 0 22,831 0 0 0 Capital Outlay-City Hall 0 0 1,136,738 0 0 Total expenditures 9,942 22,831 1,136,738 198,734 490,500 Revenues over(under)expenditures (8,171) 817,647 (737,001) 146,666 (489,300) Beginning fund balance 1,110,074 1,101,903 1,919,550 1,182,548 1,329,214 Ending fund balance $ 1,101,903 $ 1,919,550 $ 1,182,548 $ 1,329,214 $ 839,914 93 Fund:311 Pavement Preservation Fund Spokane Valley 2017 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 totaled$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$835,224 of grant revenue this brought total 2015 pavement preservation revenues to $3,083,613,which helped finance$2,400,407 of projects in 2015. • In the 2016 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$2,301,500(=$38,357,999 x 6%). This was financed with transfers from a number of City funds including$943,800 from the General Fund#001; $67,342 from Fund#101;$559,808 from Fund#123;$365,286 from Fund#301 and$365,286 from Fund#302. With an additional$2,063,000 of grant revenue this brings anticipated 2016 pavement preservation revenues to $4,364,522,which are anticipated to finance$4,500,000 of projects in 2016. • The 2017 Budget is again being developed to set aside City funds equivalent to 6%of General Fund recurring expenditures which computes out to$2,341,500(=$39,039,477 x 6%). This is being financed with transfers from a number of City funds including$953,200 from the General Fund#001;$67,342 from Fund#101;$660,479 from Fund #301 and$660,479 from Fund#302. With an additional$340,800 of grant revenue this brings anticipated 2017 pavement preservation revenues to$2,682,300.The 2017 Budget is anticipated to finance$3,000,000 of projects in 2017. The fund balance of Fund#123 was exhausted with the 2016 transfer of$559,808.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 2017 funding level of $2,341,500 is sustainable through 2021 assuming a General Fund contribution of$953,200,a Street Fund contribution of $67,342,and a collective contribution of$1,320,958 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 re-appropriation in subsequent years. (continued to next page) 94 Fund:311 Pavement Preservation Fund Spokane Valley 2017 Budget Please see the following page for a list of proposed/potential projects in 2017. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Transfers in-#001 $ 0 $ 888,823 $ 920,000 $ 943,800 $ 953,200 Transfers in-#101 282,000 282,000 206,618 67,342 67,342 Transfers in-#123 616,284 616,284 616,284 559,808 0 Transfers in-#301 150,000 184,472 251,049 365,286 660,479 Transfers in-#302 150,000 184,472 251,049 365,286 660,479 Investment Interest 2,750 1,853 3,389 0 0 Grants 35,945 2,042,715 835,224 2,063,000 340,800 Miscellaneous 50 0 0 0 0 Total revenues 1,237,029 4,200,619 3,083,613 4,364,522 2,682,300 Expenditures Pavement preservation 1,387,153 3,021,922 2,358,976 4,500,000 3,000,000 Pre-project GeoTech 0 55,293 41,432 50,000 50,000 Total expenditures 1,387,153 3,077,215 2,400,407 4,550,000 3,050,000 Revenues over(under)expenditures (150,124) 1,123,404 683,206 (185,478) (367,700) Beginning fund balance 948,733 798,609 1,922,013 2,605,219 2,419,741 Ending fund balance $ 798,609 $ 1,922,013 $ 2,605,219 $ 2,419,741 $ 2,052,041 (continued to next page) 95 Fund: 311 Pavement Preservation Fund Spokane Valley 2017 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 2017: ARTERIAL STREETS FROM TO Dishman Mica(NB Lanes) 8th Appleway Blvd 8th Ave Havana Dearborn 8th Ave Carnahan McKinnon Mission Pines Evergreen Indiana Mirabeau Evergreen RESIDENTIAL STREETS FROM TO Saltese Road Houk Road McDonald Road Saltese Road McDonald Road 24th Ave Fox, Fox Ct 37th 35th 2nd Ave, Best to End Best Road East of Adam, End Contingency Prosect List ARTERIAL STREETS FROM TO University Road 16th Ave 24th Ave University Road 24th Ave Dishman Mica RESIDENTIAL STREETS FROM TO 28th Ave Dishman Mica Bowdish Road Skipworth Rd 24th Ave 16th Ave Walnut Rd 16th Ave 8th Ave Please note: Further investigation,testing and evaluation will be necessary to finalize these lists. 96 Fund:312 Capital Reserve Fund Spokane Valley 2017 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$2,443,507,2015 General Fund transfer of$1,783,512,and 2016 General Fund transfer of$1,828,723. Projects approved by City Council from this fund 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 • $2,410,573 for construction of various sections of the Appleway Trail. • $5,199,664 for construction of a new City Hall building. Commitments to future projects include: • $700,000 towards a Barker Road/BNSF Grade Separation project. • $500,000 towards a Pines Road/BNSF Grade Separation project. • $1,800,000 to remove and reconstruct Euclid Ave.from Flora to Barker after County installation of sewer. Future projects are yet to be determined. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Transfers in#001 $ 7,826,207 $ 2,443,507 $ 1,783,512 $ 1,828,723 $ 0 Developer Contribution 3,180 4,675 0 0 0 Investment Interest 0 0 0 0 1,000 Total revenues 7,829,387 2,448,182 1,783,512 1,828,723 1,000 Expenditures Business Route Signage 21,139 0 0 0 0 Balfour Park/Library site development 57,601 0 0 0 0 Transfers out#303-Appleway Landscaping 8,348 253,645 0 0 0 Transfers out#303-Pines Rd Underpass 0 0 0 0 0 Transfers out#303-Sullivan Rd WBridge 0 443,688 42,730 1,467,779 10,000 Transfers out#303-Euclid Ave-Flora to Bat 0 0 0 50,000 1,750,000 Transfers out#303-8th&Carnahan Intersec 0 0 0 415,000 0 Transfers out#309-Appleway Trail-Univ to I 0 911,433 524,812 0 0 Transfers out#309-Appleway Trail-Pines-E 0 0 0 27,850 260,005 Transfers out#309-Appleway Trail-Sullivan. 0 0 0 45,090 301,910 Transfers out#310-City Hall 0 0 58,324 0 0 Transfers out#313-City Hall 0 0 5,162,764 0 0 Transfers out#314-Pines Grade Separation 0 0 0 500,000 0 Total expenditures 87,088 1,608,766 5,788,630 2,505,719 2,321,915 Revenues over(under)expenditures 7,742,299 839,416 (4,005,118) (676,996) (2,320,915) Beginning fund balance 0 7,742,299 8,581,715 4,576,597 3,899,601 Ending fund balance $ 7,742,299 $ 8,581,715 $ 4,576,597 $ 3,899,601 $ 1,578,686 97 Fund:313 City Hall Construction Fund Spokane Valley 2017 Budget This fund was created to account for the architectural and construction costs for a City Hall building.The building is anticipated to be completed in Fall of 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$7.9 million. Land for the building site was acquired in 2015 through a purchase in the Civic Facilities Fund#310. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Transfers in#312 $ 0 $ 0 $ 5,162,764 $ 7,946,088 $ 0 Investment Interest 0 0 0 0 0 Total revenues 0 0 5,162,764 7,946,088 0 Expenditures Capital Outlay-City Hall 0 0 373,718 7,294,400 5,344,219 2016 LTGO Bond Issue Costs 0 0 0 96,515 Total expenditures 0 0 373,718 7,390,915 5,344,219 Revenues over(under)expenditures 0 0 4,789,046 555,173 (5,344,219) Beginning fund balance 0 0 0 4,789,046 5,344,219 Ending fund balance $ 0 $ 0 $ 4,789,046 $ 5,344,219 $ 0 98 Fund:314 Railroad Grade Separation Projects Fund Spokane Valley L2017 Budget This fund was created to account for the design and construction costs of various railroad grade separation projects that are included in the Bridging the Valley concept.Due to the anticipated size,scope,and duration of these projects,managing them in a separate fund allows for the necessary monitoring without being obscured by the variety and quantity of the other projects in the Street Capital Projects Fund#303 as well as keeping these projects from skewing the average volume of activity in Fund#303.Revenues for this fund consist of grant proceeds and transfers in from other City funds,such as the General Fund#001,the REET 1 Capital Project Fund#301 and the Capital Reserve Fund#312.Expenditures in the years of 2016 and 2017 are related to right-of-way acquisition and design costs for the Pines Road Underpass project and the Barker Road Overpass project. Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 0 $ 0 $ 0 $ 230,000 $ 489,921 Transfers in#001 0 0 0 0 1,200,000 Transfers in#301 0 0 0 20,000 280,079 Transfers in#312 0 0 0 500,000 0 Total revenues 0 0 0 750,000 1,970,000 Expenditures Barker BNSF Grade Separation 0 0 0 250,000 770,000 Pines Rd Underpass 0 0 0 500,000 1,200,000 Total expenditures 0 0 0 750,000 1,970,000 Revenues over(under)expenditures 0 0 0 0 0 Beginning fund balance 0 0 0 0 0 Ending fund balance $ 0 $ 0 $ 0 $ 0 $ 0 99 Fund:402 Stormwater Management Fund Spokane Valley 2017 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 a Stormwater 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 impervious surface for all other properties. Each increment of 3,160 square feet is know as an equivalent residential unit(ERU). Accomplishments for 2016 • Completed small works projects per the Stormwater CIP. • Completed design and construction of stormwater capital projects in the current CIP. • Started an evaluation of the Stormwater Management Program Plan to meet permit requirements. • Worked with State agencies to provide a canopy for Spokane Valley Regional Decant Facility for year-round operations. • Led and participated with Eastern Washington jurisdictions to meet effectiveness study requirements. • Coordinated public education and outreach for stormwater quality awareness with other area agencies. • Monitored the Spokane River Toxics Task Force and the Idaho Washington Aquifer Collaborative for stormwater impacts. Goals for 2017 • Continue to work on applying for appropriate and applicable stormwater grants that will help the City keep costs low. • Provide planning and design efforts for continued disconnection of stormwater piping to creeks,streams, and drainages. • Continue work on possible stormwater upgrades and swale design along Appleway near University. • Continue to lead a coordinated effort to complete permit required effectiveness studies with the best return on investment. • Evaluate the storm drain cleaning program,recommend cost saving improvements,and bid new contract for 2018. • Complete small works project per the Stormwater CIP. • Initiate field testing of a GIS-driven maintenance management program to lower risk of mistakes and increase efficiencies. Budget Summary 2013 2014 2015 2016 2017 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 1.15 1.15 1.15 Planning Grants Engineer 0.0 0.25 0.25 0.25 0.25 4.50 4.75 4.40 4.40 4.40 Interns 2.0 2.0 2.0 2.0 2.0 (continued to next page) 100 Fund:402 Stormwater Management Fund Spokane Valley 2017 Budget Budget Summary,continued Recurring Activity 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Stormwater Management fees $ 1,869,081 $ 1,918,404 $ 1,861,368 $ 1,870,000 $ 1,860,000 Investment Interest 1,992 1,342 2,455 1,500 2,500 Miscellaneous&Grants Revenue 4,144 0 543,332 0 0 1,875,217 1,919,746 2,407,155 1,871,500 1,862,500 Expenditures Wages, Payroll Taxes&Benefits 429,853 347,503 409,709 514,132 546,421 Supplies 10,954 8,388 30,222 15,900 15,425 Services&Charges 1,169,168 985,446 1,259,766 1,113,683 1,111,076 Intergovernmental Services 25,726 204,256 241,852 67,000 50,000 Transfers out-#001 13,400 13,400 13,400 13,400 13,400 Transfers out-#501 0 0 0 11,000 12,750 1,649,101 1,558,993 1,954,949 1,735,115 1,749,072 Recurring revenues over(under) Recurring Expenditures 226,116 360,753 452,206 136,385 113,428 Nonrecurring Activity Revenues Grant proceeds 233,165 76,097 0 175,000 210,000 FEMA Grant Proceeds-Windstorm 0 0 0 48,800 0 233,165 76,097 0 223,800 210,000 Expenditures Capital-Various Projects 834,941 103,307 0 151,100 450,000 Effectiveness study 0 0 0 175,000 210,000 Watershed studies 0 0 0 0 50,000 Maintenance facility storage unit 0 0 0 5,000 0 Storm-related street sweeping 0 0 0 50,000 0 Transfers out-#303 423 0 0 0 0 Transfers out-#403(DOE for Decant Proj) 0 50,125 0 0 0 Transfers out-#403 0 120,000 0 0 0 Transfers out-#501 (new pickup) 0 25,843 0 0 0 835,364 299,275 0 381,100 710,000 Nonrecurring revenues over(under) Nonrecurring Expenditures (602,199) (223,178) 0 (157,300) (500,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures $ (376,083) $ 137,575 452,206 (20,915) (386,572) Beginning working capital 1,444,719 1,896,925 1,876,010 Ending working capital $ 1,896,925 $ 1,876,010 $ 1,489,438 101 Fund:403 Aquifer Protection Area Fund Spokane Valley J2017 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 withdrawal 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 monitoring of septic tanks and their potential impact on water quality in the Spokane Valley Rathdrum Prairie 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 are 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 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Spokane County $ 484,343 $ 461,828 $ 533,593 $ 400,000 $ 460,000 Grant DOE-Decant Facility 203,609 550,710 0 0 0 Grant DOT-Decant Facility 85,221 100,000 0 0 0 Grant DOE-Broadway Retrofits 0 49,203 0 0 0 Grant DOE-Sprague UIC Elimination 570,331 0 1,036,603 0 0 Miscellaneous 150 0 0 0 0 Transfers in-#402(Stormwater) 0 170,125 0 0 0 Total Revenues 1,343,654 1,331,866 1,570,196 400,000 460,000 Expenditures Broadway Retrofit 0 41,114 0 0 0 Construction-Decant Facility 299,319 893,514 0 0 0 SE Yardley Retrofits 7,109 728,565 0 0 0 Capital-Various projects 0 0 0 425,000 530,000 Sprague Swales 0 510 0 0 0 Depreciation Expense-Cap Imp 0 0 125,599 0 0 Transfers out-#402 0 0 120,000 0 0 Total Expenditures 306,428 1,663,703 245,599 425,000 530,000 Revenues over(under)expenditures $ 1,037,226 $ (331,837) 1,324,597 (25,000) (70,000) Beginning working capital (402,937) 921,660 896,660 Ending working capital $ 921,660 $ 896,660 $ 826,660 102 Fund:501 Equipment Rental&Replacement Fund Spokane Valley 2017 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 reoccurring 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 2017 Budget includes a new CenterPlace Kitchen Reserve that will be established through a transfer in from the General Fund in the amount of$36,600 per year for 5 years to build a total reserve of$183,000,which is the estimated replacement cost of the significant kitchen appliances and equipment at CenterPlace. Snow Plow Replacement Program The snow plow 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 included the purchase of a tandem axle plow truck with a sander for 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 (continued to next page) 103 Fund:501 Equipment Rental&Replacement Fund Spokane Valley 2017 Budget Budget Summary 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Interfund Equip&Vehicle Lease $ 177,744 $ 102,744 $ 35,544 $ 106,000 $ 146,429 Transfers in-#001 (CenterPlace kitchen re 0 0 0 0 36,600 Transfers in-#101 (replacements) 0 25,849 0 0 0 Transfers in-#402(addtl'pickup) 0 25,843 0 0 0 Investment Interest 1,176 792 1,449 1,000 2,000 Total Revenues 178,920 155,228 36,993 107,000 185,029 Expenditures Computer replacement lease 0 0 0 0 0 Software/Hardware replacement 0 0 0 0 0 Snow plow replacement 0 0 0 225,000 0 Vehicle Replacement 48,750 9,799 16,144 105,000 0 Total Expenditures 48,750 9,799 16,144 330,000 0 Revenues over(under)expenditures $ 130,170 145,429 20,849 (223,000) 185,029 Beginning working capital 1,082,719 1,228,148 1,248,997 1,025,997 Ending working capital $ 1,228,148 $ 1,248,997 $ 1,025,997 $ 1,211,026 104 Fund:502 Risk Management Fund Spokane Valley 2017 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 omissions;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 2013 2014 2015 2016 2017 Actual Actual Actual Budget Budget Revenues Transfers in-#001 $ 319,000 $ 325,000 $ 325,000 $ 325,000 $ 350,000 Investment Interest 7 5 8 0 0 Total Revenues 319,007 325,005 325,008 325,000 350,000 Expenditures Auto&Property insurance 263,922 272,435 284,112 325,000 350,000 Unemployment Claims 14,126 8,532 14,722 0 0 Miscellaneous 0 0 0 0 0 Total Expenditures 278,048 280,967 298,834 325,000 350,000 Revenues over(under)expenditures 40,959 44,038 26,174 0 0 Beginning working capital 83,212 124,171 168,209 194,383 194,383 Ending working capital $ 124,171 $ 168,209 $ 194,383 $ 194,383 $ 194,383 105 CITY OF SPOKANE VALLEY,WA Capital Expenditures for 2017 SOURCE OF FUNDS #001 #101 #107 #301 #302 #ark #311 #312 City #402 9403 9501 2017 REET1 REET2 Park City Aquifer Equipment Expenditure Capital Capital Capital Pavement Capital Hall Stormwater Protection Rental& Developer Capital Outlay Description Budget General Street PEG Projects Projects Projects Preservatior Reserve Construction Management Area Replacemen Grants Contributions #001 General Fund -IT capital replacements 100,000 100,000 -CAD/RMS System-Police Dept. 145,000 145,000 -CenterPlace Great Room audioNisual equip. 345,000 345,000 Subtotal 590,000 590,0001 0I I 0I 0I 0I 0I 0I 0I 0I 0I 0I 0I 0 #101 Street Fund -Signal detection replacement 40,000 40,000 -Traffic signal replacement 200,000 200,000 -Durable striping at Trent&Argonne 75,000 75,000 -Spare traffic signal equipment 30,000 30,000 -Battery backups for intersections 15,000 15,000 Subtotal 360,000 0 1 360,000 I 0 I 0 I 0 I 0 I 0 I 0 I 0 I 0 I 0 I 0 I 0 I 0 #107 PEG Fund -PEG Capital outlay 12,500 12,500 -New City Hall Council Chambers 250,000 250,000 Subtotal 262,500 0 1 0 1 262,500 I o l o l o l o I o I o I o I o I o I 0 #303 Street Capital Projects Fund 123 Mission Ave-Flora to barker 500,000 67,500 432,500 141 Sullivan Rd/Euclid PCC(PE/RW) 2,150,000 951,730 1,198,270 155 Sullivan Rd W Bridge Replacement 10,000 10,000 166 Pines Rd(SR27)&Grace Ave.Intersection Safety 333,224 333,224 167 Citywide Safety Improvements 5,000 5,000 201 ITS Infill Project Phase 1 300,000 74,614 225,386 205 Sprague/Barker Intersection Improvements 40,097 40,097 207 Indiana&Evergreen Transit Access Imp 5,000 5,000 221 McDonald Rd Diet(16th to Mission) 5,000 5,000 222 Citywide Reflective Signal Backplates 36,000 900 35,100 229 32nd Ave Preservation Project 2,500 2,500 234 Seth Woodard Elem Sidewalk Improvement 5,000 5,000 238 Mirabeau Pkwy&Pines(SR-27)Traffic Signal 5,000 1,000 4,000 239 Bowdish Sidewalk-8th to 12th 471,342 207,342 264,000 xxx N.Sullivan Corridor ITS Project 110,486 14,916 95,570 xxx Euclid Ave-Flora to Barker 1,750,000 1,750,000 xxx 9th Ave.Sidewalk 240,000 48,000 192,000 xxx Sullivan/Wellesley Intersection 198,000 26,730 171,270 Contingency 1 1,000,000 100,000 100,000 800,000 Subtotal 7,166,6490 I 0 I 0 1 437,002 1 1,173,230 1 0 I 0 I 1,7 0 I 0 I 0 I 0 1 3,756,320 1 40,097 #309 Parks Capital Projects Fund 227 Appleway Trail-Pines to Evergreen 1,925,957 260,005 1,665,952 237 Appleway Trail-Sullivan to Corbin 1,853,225 301,910 1,551,315 - Edgecliff Park Splashpad 125,000 125,000 Subtotal 3,904,182_ 0 I 0 I 0 I 0 I 0 1 125,000 I 0 1 561,915 I 0 I 0 I 0 I o1 3,217,267 I 0 #311 Pavement Preservation Fund -Pavement preservation 3,000,000 3,000,000 Subtotal 3,000,000 0 I o I o I o I o I 0 1 3,000,000 I o I o I o I o I o I o I 0 #313 City Hall Construction Fund 215 City Hall 5,344,219 5,344,219 5,344,219 01 01 01 01 01 01 01 01 5,344,219 1 01 01 01 0 I 0 #314 Grade Separation Fund 143 Barker BNSF Grade Separation 770,000 280,079 489,921 223 Pines Rd Underpass @ BNSF&Trent 1,200,000 1,200,000 1,970,000 1,200,000 10 I 0 1 280,079 1 0 0 I0l.,ol., o I o I o I o I 0 1 489,921 I 0 #402 Stormwater Management Fund -Capital-various projects 450,000 450,000 Subtotal 450,000 0 I o I o I o I 01 01 o l. o I 0 1 450,000 I o I o I o I 0 c #403 Aquifer Protection Area Fund -Capital-various projects 530,000 530,000 Subtotal 530,000 0 0 0 0 0 0 0 0 0 530,000 0 0 0 Total Capital Expenditures and Related Financing 23,577,550 1,790,000 360,000 262,500 717,081 1,173,230 125,000 3,000,000 2,321,915 5,344,219 450,000 530,000 0 7,463,508 40,097 1 Contingency amount is to cover unforseen overruns,costs related to projects that were expected to complete in 2016 and the costs of projects that have not yet had funding sources identified. -Dollar figures in Italicized Bold font are paid from a combination of existing fund balance and fund revenue that is not attributable to a single project. 106 CITY OF SPOKANE VALLEY,WA Full Time Equivalent Employees Difference from Adopted Proposed 2016 to 2017 2011 2012 2013 I 2014 2015 2016 2017 +(-) #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 6 7 6 6 6 6 6 0.000 Finance 11 11 10.75 11.75 11.75 11.75 11.75 0.000 Human Resources 2 2 2 2 2 2 2 0.000 Public Works 7.5 7 7 7.375 7.375 7.375 7.375 0.000 City Hall Operations&Maintenance 0 0 0 0 0 0 1 1.000 (1) CED-Administration 3 3 2 2 2 2 2 0.000 CED-Economic Development 0 0 0 0 2.5 2.65 3.65 1.000 (2) CED-Development Services 0 0 0 0 11 11 10 (1.000) (2) CED-Engineering 6 6 8 7 0 0 0 0.000 CED-Planning 8.5 8.5 8 8 0 0 0 0.000 CED-Building 12.75 12.75 11.5 12.5 14 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 Center 1 1 1 1 1 1 1 0.000 Parks&Rec-CenterPlace 5 5 5 5 5 5 5 0.000 Total General Fund 73.750 74.250 72.250 73.625 73.625 73.775 74.775 1.000 #101 -Street Fund 4.5 5 5 5.375 5.725 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-Stormwater Fund 4.5 4.5 4.5 4.75 4.4 4.4 4.4 0.000 Total FTEs 86.250 87.250 85.250 87.250 87.250 87.400 88.400 1.000 (1) Reflects increase of one FTE for operations and maintenance of the new City Hall building. (2) Reflects the transfer of an employee from one division to another. 107 2016 Work Force Comparison The 31 Washington Communities with a Population of 30,000 to 100,000 CITY POPULATION FULL-TIME PART-TIME Bellingham 84,850 741 47 (1) Yakima 93,410 694 17 Redmond 60,560 608 19 Kirkland 84,680 583 24 Olympia 51,600 547 14 Richland 53,410 454 26 Auburn 77,060 425 1 Kennewick 79,120 369 4 Lynnwood 36,590 339 6 Pasco 70,560 337 2 Federal Way 93,670 308 8 Bothell 43,980 299 7 Bremerton 40,500 296 19 Longview 37,230 296 8 Marysville 64,940 261 9 Walla Walla 33,340 260 14 Lacey 47,540 260 1 Puyallup 39,850 253 10 Issaquah 34,590 235 8 (1) Edmonds 40,900 220 5 Lakewood 58,800 203 7 Mount Vernon 33,730 200 29 Pullman 32,650 199 34 Wenatchee 33,510 145 3 Shoreline 54,990 127 10 Des Moines 30,570 116 12 Sammamish 61,250 86 5 Spokane Valley 94,160 85 2 Burien 50,000 63 5 Lake Stevens 30,900 63 2 University Place 32,230 44 8 AVERAGE 294 12 Source: Association of Washington Cities Survey: 2016 Participant Data -Cities and Towns (1)Did not respond in 2016. Employee counts are 2015 statistics. 108 EMPLOYEE POSITION CLASSIFICATION MONTHLY SALARY SCHEDULE Salary Schedule Effective January 1,2017 Position Title Grade 2017 Range City Manager Unclassified Deputy City Manager 21-22 8,888.39 - 14,535.51 City Attorney 21 8,888.39 - 13,082.08 Community Development Director 21 8,888.39 - 13,082.08 Finance Director 21 8,888.39 - 13,082.08 Public Works Director 21 8,888.39 - 13,082.08 Parks and Recreation Director 19 7,199.37 - 10,597.37 Human Resources Manager 18 6,480.26 - 9,537.16 Planning Manager 18 6,480.26 - 9,537.16 Building Official 18 6,480.26 - 9,537.16 Capital Improvements Program Manager 18 6,480.26 - 9,537.16 Development Services Manager 18 6,480.26 - 9,537.16 Deputy City Attorney 18 6,480.26 - 9,537.16 Senior Engineer-Traffic and CIP 17 5,831.91 - 8,583.09 Accounting Manager 17 5,831.91 - 8,583.09 City Clerk 16 5,248.20 - 7,724.29 Engineer 16 5,248.20 - 7,724.29 Senior Plans Examiner 16 5,248.20 - 7,724.29 Public Works Superintendent 16 5,248.20 - 7,724.29 Senior Administrative Analyst 16 5,248.20 - 7,724.29 Senior Planner 16 5,248.20 - 7,724.29 Development Services Coordinator 16 5,248.20 - 7,724.29 GIS/Database Administrator 16 5,248.20 - 7,724.29 Associate Planner 15 4,724.02 - 6,952.33 Assistant Engineer 15 4,724.02 - 6,952.33 IT Specialist 15 4,724.02 - 6,952.33 Engineering Technician II 15 4,724.02 - 6,952.33 Economic Development Project Specialist 15 4,724.02 - 6,952.33 Human Resource Analyst 14 4,251.88 - 6,257.58 Accountant/Budget Analyst 14 4,251.88 - 6,257.58 Administrative Analyst 14 4,251.88 - 6,257.58 CenterPlace Coordinator 14 4,251.88 - 6,257.58 Planner 14 4,251.88 - 6,257.58 Building Inspector II 14 4,251.88 - 6,257.58 Plans Examiner 14 4,251.88 - 6,257.58 Public Information Officer 14 4,251.88 - 6,257.58 Engineering Technician I 14 4,251.88 - 6,257.58 Senior Permit Specialist 14 4,251.88 - 6,257.58 Code Enforcement Officer 14 4,251.88 - 6,257.58 Maintenance/Construction Inspector 13-14 3,826.38 - 6,257.58 Recreation Coordinator 13-14 3,826.38 - 6,257.58 Customer Relations/Facilities Coordinator 13 3,826.38 - 5,631.60 Building Inspector I 13 3,826.38 - 5,631.60 Executive Assistant 13 3,826.38 - 5,631.60 Planning Technician 13 3,826.38 - 5,631.60 Deputy City Clerk 12-13 3,445.00 - 5,631.60 Senior Center Specialist 12-13 3,445.00 - 5,631.60 Human Resources Technician 12-13 3,445.00 - 5,631.60 Permit Facilitator 12 3,445.00 - 5,068.32 Help Desk Technician 12 3,445.00 - 5,068.32 Administrative Assistant 11-12 3,099.55 - 5,068.32 Permit Specialist 11-12 3,099.55 - 5,068.32 Accounting Technician 11-12 3,099.55 - 5,068.32 Maintenance Worker 11-12 3,099.55 - 5,068.32 Office Assistant II 10-11 2,789.41 - 4,561.71 Custodian 10 2,789.41 - 4,104.59 Office Assistant I 9-10 2,510.78 - 4,104.59 Note: Slight rounding differences may exist between the figures reflected on this page and the actual payroll rates computed by the Eden Payroll System. 109 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. 110 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 111 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. 112