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2019 approved budget City of Spokane Valley 2019 Annual Budget 10210 E. Sprague Avenue Spokane Valley, WA 99206 www.SpokaneValley.org City of Spokane Valley, Washington Annual Budget For the Fiscal Year January 1 through December 31, 2019 City Hall 10210 East Sprague Avenue Spokane Valley, WA 99206 Website: www.spokanevalley.org Phone: (509) 720-5000 play, and businesses This page left intentionally blank. Table of Contents City of Spokane Valley, WA Spokane County January 1, 2019 through December 31, 2019 Summary of Councilmembers .................................................................................................................... III City Manager’s Budget Message .................................................................................................................. 1 Finance Director’s Message - About the 2019 Budget and Budget Development Process ........................ 11 Budget Summary ................................................................................................................................... 27-39 Revenues by Fund and Type .................................................................................................................. 40-47 Expenditures by Fund and Department .................................................................................................. 48-51 General Fund Department Changes from 2018 to 2019 ........................................................................ 52-54 #001- General Fund- Expenditures by Department by Type City Council ......................................................................................................................................... 55 City Manager ........................................................................................................................................ 56 City Attorney ........................................................................................................................................ 57 Public Safety .................................................................................................................................... 58-60 Deputy City Manager ........................................................................................................................... 61 Finance ................................................................................................................................................. 62 Human Resources ................................................................................................................................. 63 Public Works(history) ......................................................................................................................... 64 City Hall Operations and Maintenance ................................................................................................ 65 Community & Public Works ........................................................................................................... 66-67 Community & Economic Development (history) ........................................................................... 70-71 Parks & Recreation .......................................................................................................................... 72-76 General Government ....................................................................................................................... 77-78 Special Revenue Funds #101 - Street Fund ........................................................................................................................... 79-80 #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 ....................................................................................... 84 #121 - Service Level Stabilization Reserve Fund ................................................................................ 85 #122 - Winter Weather Reserve Fund .................................................................................................. 85 I City of Spokane Valley 2019 Budget Debt Service Funds #204 - Limited Tax General Obligation (LTGO) Fund ........................................................................ 86 Capital Projects Funds #301 - REET 1 Capital Projects Fund .................................................................................................. 87 #302 - REET 2 Capital Projects Fund .................................................................................................. 88 #303 - Street Capital Projects Fund ................................................................................................. 89-90 #309 - Parks Capital Projects Fund ...................................................................................................... 91 #310 - Civic Facilities Capital Projects Fund ....................................................................................... 92 #311 - Pavement Preservation Fund ..................................................................................................... 93 #312 - Capital Reserve Fund ................................................................................................................ 94 #313 - City Hall Construction Fund ..................................................................................................... 95 #314 – Railroad Grade Separation Projects Fund ................................................................................ 96 Enterprise Funds #402 - Stormwater Management Fund ............................................................................................ 97-98 #403 - Aquifer Protection Area Fund ................................................................................................... 99 Internal Service Funds #501 - Equipment Rental & Replacement Fund .......................................................................... 100-101 #502 - Risk Management Fund .......................................................................................................... 101 Total of Capital Expenditures for 2019 ..................................................................................................... 102 FTE Count by Year – 2009 through 2019 ................................................................................................. 103 Work Force Comparison ........................................................................................................................... 104 Appendix A, Employee Position Classification and Salary Schedule ...................................................... 105 Glossary of Budget Terms ................................................................................................................. 106-108 Ordinance 18-024 Adopting the 2019 Budget ................................................................................ 109 II From left Sam Wood,Ben Wick, Arne Woodard, Brandi Peetz, Rod Higgins, Linda Thompson, Pam Haley City Council Members Rod Higgins, Mayor Position #1 Pam Haley, Deputy Mayor Position #5 Brandi Peetz Arne Woodard Position #2Position #3 Ben WickSam Wood Position #4 Position #6 Linda Thompson Position #7 Staff Mark Calhoun, City Manager John Hohman, Deputy City Manager Chelsie Taylor, Finance Director Mike Stone, Parks & Recreation Director Cary Driskell, City Attorney William Helbig, City Engineer ChristineBainbridge, City Clerk III This page intentionally left blank City Manager’s Budget Message 2019Annual Budget Dear Citizens, Mayor and CityCouncil of Spokane Valley: It is with pleasure that I present the attached2019 Budget for the City of Spokane Valley. The City remains financially strong and continuesto benefit from a historyof prudent financial decisionsthat have been made since our 2003 incorporation.Consistently responsiblebudgeting andrestrained spending have againhelped us achieve the key Fiscal Policiesnoted in the following pages. The City of Spokane Valleycontinues to be an excellentexample of how a City provideskey services to the community while holding down taxes, fees and other charges. Additionally, our per capita employee countand personnel expenses are among the lowest(if not thelowest) of comparable size cities in the state and around the U.S. We recognize that to ensurecontinuedfinancial stability, it is imperative that we achieve two key goals within our General Fund: 1. Recurring annual revenuesmust be greater than or equal to recurring annual expenditures, and 2.The ending General Fund fund balance must be sufficient enough to meet cash flow needs which is no less than 50% of recurring expenditures and represents roughly sixmonths of General Fund operations. I am pleased to report that each of these goals haveagain been achieved in the 2019 General Fund Budget. Beyond recurring operating activity,and dueto our exceptionally strong financial position, we have been afforded the opportunity to use theportion of the General Fund fund balance that exceeds 50% for capital construction expendituresthat are important to the City Council and Community. Since 2013, City Councils have made the decision to transfer $20.7 million of excess General Fund reserves to partially finance a variety of projects including each phase of the Appleway Trail, Sullivan Road West Bridge Replacement, ApplewayAvenue Landscaping, construction of a new City Hall, the future Barker/BNSF Grade Separation Project, and beginning to set money aside for the Pines/BNSF Grade Separation Project, Barker Corridor Projectand development of Balfour Park. 1 Fiscal Policies Fiscal Health is at the Core of Providing a Good Public Service The Fiscal Policies adopted by the City Council are important forthe long-range fiscal strength of Spokane Valley. These policiesset a framework that the City will follow to responsibly manage resources and if necessary, under what circumstances we will utilize reserves to sustain operations during economic downturns. Financial Management The City will strive to: 1.Maintain basic service levels with minimal resourcesto achieve success. 2.Minimize personnel costsand overhead by continuing to contract for services when it makes financial sense to do so. 3.Continue the six-year Business Plan process. 4.Leverage City funds with grant opportunities. 5.Minimize City debt with apay as you go philosophy. The State of Washington sets the maximum level of allowable debt for cities based on o assessed value of property. The City of SpokaneValley carries an exceptionally low debt burden and currently utilizes only1.98% of its totaldebt capacity, andmore importantly, only9.88% of non-voted bond capacity. 6.Strive to prioritize spending in the annual budget process and minimize the mid-year addition of projects and appropriations. Financial Objectives The City’s financial objectivesare: 1.Adopt a General Fund Budget with recurring revenues equal to, or greater than recurring expenditures. 2.Maintain a minimum General Fund Ending Fund Balance ofat least 50% of the recurring expenditure budget. This is adequate to meet cash flow needs and is the equivalent of six months of general fund operations. 3.If necessary, utilize a portion of theServiceLevel StabilizationReserveFund ($5.5 million) to maintain ending fund balance minimum. 4.Commitmentto the strategy that the Service Level StabilizationReserveFund will not be reducedbelow $3.3 million (60% of $5.5 million). 5.Maintain the2019 property tax assessment the same as 2018 with the exception of new construction. As in the previous nineyears, theCity will forego theone-percentannual increaseto property tax allowable by RCW 84.52.050. We anticipate this will result in a levy of $11,804,400plus estimated new construction of $250,000for a total levy of $12,054,400. The allowable potential increasewill be banked for future use as provided by law. This represents the tenthconsecutive year 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 tothese policiesand the checks and balancesthey afford,the City will ensure financial sustainability wellinto the future. 2 2019Budget Highlights City Priorities The City’s chief budget priorities are public safety, pavement preservation, transportation and infrastructure (including railroad grade separations and park related projects) and economic development. Ensuring that we’ve committed adequate resources to these activities accounts for much of the effort that Council and Staff collectively dedicate to the annual development of our Business Plan and Operating and Capital budgets. Moderate Growth in Recurring General Fund Expenditures Investing in essential core services identified by the Council and Community establishes the baseline expenditureswe have included in this budget. Similar to the trend experienced in most jurisdictions, we find that the cost of providing these services oftenincreasesat a faster rate than the moderate growth we see in the underlying tax revenues that support these coreservices. With that said however, City staff and Council collectively strive to meet the challenge of continuing to provide historic levels of serviceand we will again meet this challenge in 2019 where we anticipate recurring revenues will increase over those of 2018 by 5.79%, while expenditures increase by just 1.93%.Increases at the point of budget adoption over the past 5-years have been: Recurring RevenuesExpenditures 2019compared to20185.79%1.93% 2018compared to20173.73%1.81% 2017compared to20164.38%0.87% 2016compared to20153.08%2.79% 2015compared to20142.72%3.90% 2014compared to20134.39%4.28% 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 2019 Budget wherepublic safety costs including law enforcement, courts, prosecution, public defenseand jail related services total $25,927,304which is an amount equal to 215% of anticipated property tax collections (= $25,927,304/ $12,054,400). Staffing Levels The full time equivalent employee (FTE) count will increase by 4.50 from 89.25 in 2018 to 93.75 in 2019. This includes the reduction of a vacant administrative assistant position in the City Manager’s office from 1.0 to 0.5 FTE, and the addition of 5.0 FTEs requested by the Community and Public Works Department that are necessary to meet project needs going into the future and of these, the wage related costs of 3.1 FTEs will be paid through capital project that are in large part financed with grant revenues dedicated to those projects. Of the 5 additional FTEs: 2 will be engineers with wages allocated 20% each to the Engineering Division in the General Fund (for an increase of 0.4 FTEs) and 80% to the Street Capital Projects Fund #303 (for an increase of 1.6 FTEs). The primary responsibilities of these positions will be to focus on capital projects. 3 will be construction inspectors with wages allocated 50% each to the Street Capital Projects Fund #303 (for an increase of 1.5 FTEs) and 50% each to the Street Fund #101 (for an 3 increase of 1.5 FTEs). During the construction season (April through October) the primary responsibility of these positions will be to focus on capital projects. During winter season operations (November to March) the primary responsibility of these positions will be snow operations and winter maintenance. It is noteworthy that these 5.0 additional FTEs are largely necessary to meet capital construction needs that are in large part grant financed. If at some point in the future the number and/or magnitude of capital projects decreases due to reduced grant opportunities or some other currently unforeseen circumstance, we will begin to eliminate these positions. The FTE count is allocated among City funds as follows: Difference 201920192019Between 2018StaffCity MgrCPW20192018 and BudgetReallocationChangeRequestBudget2019 General Fund #00174.63(0.50)(0.50)0.4074.03(0.60) Street O&M Fund #1015.720.500.001.507.722.00 Street Capital Projects Fund #3034.500.500.003.108.103.60 Stormwater Fund #4024.40(0.50)0.000.003.90(0.50) 89.250.00(0.50)5.0093.754.50 Taking into considerationthatwe contract for police services and are served by Fire Districts and a Library District, for a major city we operate substantially below the normal employee count and consequently at a significantly reduced payroll costrelative to many cities across the country. The personnel costs for the 74.03 FTEs charged to the General Fund represent just 20.4% of expenditures. Spokane Valley staff levels average about one employee for every 1,044citizens (= population of 97,847 per the Census Bureau / 93.75 FTEs) while comparably sized cities in the State of Washington have a much higher ratio of employees to citizens. Since incorporation, the City has taken a conservative approach to adding new staff and continues to have the lowestper capita 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 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 2019, 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 2019,we project total revenues in Pavement PreservationFund #311of $5,760,900that combined with $1,527,300of fund reserves will be applied against $7,288,200in projected expenditures. Sources of revenue in 2019 include $1,820,000in grantproceeds, $1,500,000 from the Street Wear fee that was adopted by Council in 2018, and $2,440,900in transfers from other City funds consisting of: $972,300from the General Fund 4 $734,300from REET 1 Capital Projects Fund #301 $734,300from REET 2 Capital Projects Fund #302 While Pavement Preservation is one of our critical service and budget priorities we find that sustaining adequate levels is a constant challenge and I address this in the portion of this budget message titled “Challenges”. Transportation and Infrastructure The 2019 Budget includes $20,603,882 of capital expenditures that we anticipate will be in-part offset with $10,974,189in grant revenues which results in 53.26% of capital projects being financed with State and Federal dollars. The projects we’ll work on in 2019 include: $5.4 million in Street Capital Projects Fund #303 $1.8 million in Park Capital Projects Fund #309 $7.2 million in Pavement Preservation Fund #311 $4.7 million in Grade Separation Projects Fund #314 $1.3 million in Stormwater Fund #402 and Aquifer Protection Area Fund #403 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 2015 State Legislature’s increase in the gas tax we’ve seen a bit of an increase in this revenue source with a 2019 revenue projection of $2,092,300 which represents an increase of $157,300 (or 8.1%) over 2015 revenues of $1,935,000. The 6% telephone utility tax generated $3.1 million in the first year of collectionsin 2009. Since that time however we have experienced a decline averaging 5.18% per year and at this point are projecting 2019 revenues of just $1,700,000.We believe the decline is primarily due to the elimination of land lines by individual households. At the June 12, 2018 Budget Workshop, Council discussed the fact that Street O&M Fund recurring revenues were substantially exceeded by recurring expenditures but were interested in continuing to deliver historic levels of servicedespite the fact that telephone utility tax revenues have continued to decline. Council asked Staff to prepare a budget that resolves this funding imbalance with a one-time transfer during 2019 of Capital Reserve Fund #312 money. The necessary transfer is $907,544 and this is reflected in both Fund numbers 101 and 312. Determining “how” to fully finance Street O&M Fund #101 beyond 2019 will continue to be a Council conversation. 2.Balancing the cost of pavement preservation against other transportation and infrastructure needs 5 Pavement preservation has historically been financed from a combination of sources including: General Fund dollars, o Street O&M Fund dollars, o Civic Facility Replacement Fund #123 (Fund #123) reserves that were dedicated o towards this purpose until their depletion in 2016. Real estate excise tax (REET) revenues, o Grantrevenues, and o Beginningin 2018, the addition of a street wear fee that was negotiated by the City as o part of an updated solid waste collection contract that recognized the damage that heavily laden garbage trucks do to our road system. Following is a table that reflects pavement preservation related revenues over the 9- o year period 2011 through 2019: Fund 001101106123301/302310 StreetCivic Fac.Civic Fac. GeneralStreet O&MWear FeeReplace.REET 1&2CapitalGrantsTotal Actual 2011584,6810000500,00001,084,681 20122,045,2030000002,045,203 2013855,857282,0000616,284300,000035,9452,090,086 2014888,823282,0000616,284368,94402,042,6654,198,716 2015920,000206,6180616,284502,0980835,2243,080,224 2016943,80067,3420559,808730,57201,654,6983,956,220 2017953,20067,342001,320,958089,2082,430,708 Budget 2018962,70067,3421,000,00001,370,65801,572,5004,973,200 2019972,30001,500,00001,468,60001,820,0005,760,900 9,126,564972,6442,500,0002,408,6606,061,830500,0008,050,24029,619,938 The City used the Civic Facility Replacement Fund #123 reserves over the 4-year period 2013 through 2016 in order to give the City time to determine how best to finance the pavement preservation plan in 2017 and beyond. Heavy reliance on REET revenuesbegan in 2017 following the depletion of Fund #123 reserves. Although we currently exist in a robust economy that includes near record REET collections, we realize that as the economywanes in the future, so will REET revenues. As a consequence, overly relying on REET revenues may in the future limit the City’s ability to provide the necessary match needed for State and Federal grants that are applied to other street construction and reconstruction projects. Over the past 10-12 years Spokane Valley has struggled to develop a pavement management plan that clearly delineatesthe pavement condition index (PCI) that should be maintained throughout our road system and define the amount of money we should dedicate annually to achieve thatplan. The first studies initially estimated the annual cost to be in excess of $10 million per year but as recently as 2016 the estimated cost was reduced to $6.8 million. Even though the City’s investment in our pavement preservation program has fallen short of $6.8 million per year we find that the PCI is not in a free fall and is in fact holding fairly steady at 71. 6 The City is currently reevaluating our pavement preservation plan with the intent of refining the PCI across local access, collectors and arterials, and formulating a more realistic cost to maintain these. Staff plan to come before Council in early 2019 to report the results. The desired outcome of the updated pavement preservation plan is to assist Council and Staff in determining the ideal PCI for the different street classifications and the cost to maintain each. Following that, Council and Staff will work collectively to determine how to finance the plan. 3.Railroad Grade SeparationProjects (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 theneed for a grade separation at four locations in Spokane Valley. The most recent estimates peg the total cost of these projects at $88.8millionincluding: Barker and Trent Road Overpass(estimated cost of $19.0 to $24.7million), Pines and Trent Underpass(estimated cost of $29.0million), 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 endeavorsand largely beyond our ability to finance solely through existing sources ofinternalrevenue, the Cityhas pursued grant funding from both the Federal and State Government overthe past several years. Barker/Trent Grade Separation Project We reached the point of being fully funded for this project in early 2018and the final design phase is underway. Design will continue through 2019 and right-of-way acquisition should begin in 2019. Construction will begin no later than 2020. Revenue sources are comprised of the following: Barker Grade Separation Project Financing Sources City of Spokane Valley General Fund reserves$1,421,000 Real Estate Excise Tax (REET)2,209,000 Total from Spokane Valley$3,630,000 Federal Earmark721,000 2017 WA Legislature appropriation1,500,000 National Highway Freight Program6,000,000 TIGER 99,020,000 FMSIB (20% of total) (assume $19.0 million)3,800,000 $24,671,000 7 Pines / Trent Grade Separation Project Progress to date includes: The City has set aside $3,185,000 towards what we currently anticipate will be a $29.0 million project. Sources include the following: Pines Grade Separation Project Financing Sources City of Spokane Valley 2016 General Fund Property acquisition$500,000 2017 General Fund dedication1,200,000 2017 General Fund allocation of fund balance > 50%721,000 2018 General Fund allocation of fund balance > 50%764,000 Total from Spokane Valley$1,485,000 In late 2016 the City acquired property valued at approximately $500,000 that was applied to the acquisition of property that will in-part satisfy the right-of-way needs for this project. On July 11, 2017 Council approved a Phase 1 contract with anengineering firm valued at $124,000 with a scope of services that calls for evaluating two potential sites, each of which includes a roundabout and signalized intersection alternative. The end result of the study will be a final recommended option with arevised cost estimate. Council will make the final choice of the alternative chosen. Following this, we will enter the second design phase where the Citywill contract with an engineering firm to take the Council adopted alternativeto a 100% design. Future property acquisitions will be necessary during the right-of-way phase of the project but this cannot be determined until the final phase of the design is well underway. The City has applied for a variety of both state and federal grants including theTIGER, FASTLANE and INFRA programs. Grant application currently outstanding include: SRTC – application is for right-of-way in the amount of $3.8 million (90% of the o estimated total cost of $4.2 million). BUILD – application is for the $23.2 million which is 80% of the estimated project cost. o CRISI 1 – application is for design in the amount of $1.25 million (50% of the estimated o total cost of $2.5 million). CRISI 2 - application is for design in the amount of $1.25 million (50% of the estimated o total cost of $2.5 million). We will continue to apply for grant programs as they become available. We are hopeful that having a 100% design will make us more competitive as we will then have a “shovel ready” project. Economic Development To the best of our ability we focus on business retention and expansion of existing businesses and recruitment of new businesses. Examples of ongoing and future economic development efforts are as follows: 8 Comprehensive Plan – In the latter part of 2016 the City updated its Comprehensive Plan and included an economic development element. Contained within this element is a summary of the local economy; an assessment of strengths and weaknesses; and policies, programs and projects to foster economic growth. The plan also included implementation strategies to improve retail, enhance tourism, and grow businesses in the City. Among other things, the plan also streamlined land uses by consolidating many zones and reducing many development requirements. Additionally the plan was also designed to provide flexibility in an effort to encourage market driven growth. Retail Recruitment – In 2017 the City expanded into the area of Retail Recruitment by contracting with a firm specializing in this type of service. The services we are seeking in this effort include a review of the retail recruitment strategy; conducting a market and retail gap analysis; development of a recruitment plan; identification of a strategic retail prospect list; and recruitment of retail on behalf of the City. We have included money in the 2019 Budget to continue this effort. WA State Department of Commerce Environmental Permitting Grant – In the latter part of 2016 the City received a $114,200 grant from the Department of Commerce that with an additional investment of $55,000 from the City, will result in a streamlined environmental permitting process in the northeast industrial area of our community. This study will complete the environmental permitting requirements for the northeast industrial area, ultimately leading to the development of a Planned Action Ordinance (PAO) that will save industrial developers a minimum of 6 weeks permitting time while providing a predictable path to ensure that adequate infrastructure is in place to serve the expected developments. Completion of the PAO will allow the properties to be marketed as truly “shovel ready”. The Budget for 2019 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 ongoingmaintenance of financial reserves since incorporation has served the intended purpose of providing Spokane Valley the means to sustain critical public services during turbulent economic conditions and this served the City well during the Great Recession that began in 2008. The 2019 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. We are cognizant of the fact that we are now in the longest economic expansion in United States history and at this point, with each passing day we are closer to the next economic downturn. Given this, we will remain vigilant in our observance of local, state and national events and economic trends that may impact our own community and work towards capitalizing on our strengths, minimizing our weaknesses, and being ever watchful towards both threats and opportunities. 9 Balanced Budget Means exactly what it says – operating expenses have been balancedwith known or reasonably predictable revenues with no increase in property tax or in sales tax rates for the City. The budget is designed to maintain the healthy,positive fund balance at year-end providingforthe 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 2019 and beyond. Acknowledgments I would like to acknowledge the Community,City Council and Staff for a long history of financially responsiblespending and sensiblefiscal planning. By saving and conserving the taxpayers’ money, and by adoptingand adhering toprudent long-term fiscal policies, the City can provide essential services and balance its budget for many years to come. The City Council continues to set a path to ensure the long-term financial sustainability of the City. The management staff and employees have worked together to develop the Business Plan and 2019 Budget recommendations toachieve the Council’s ongoing goal of sustainability. I hope the Citizens of Spokane Valley are proud of theprograms andstrong financial condition of their City. We invite your examination and questions regarding the 2019 Budget. Respectfully, Mark Calhoun City Manager 10 FINANCE DEPARTMENT Chelsie Taylor, Finance Director 10210E Sprague AvenueSpokane Valley WA 99206 Phone: (509)720-5000Fax: (509)720-5075www.spokanevalley.org TO: City Manager and Members of the City Council FROM: Chelsie Taylor, Finance Director SUBJECT: About the 2019Budget 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 monies 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. 2019 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 volatility that was seen in the economy with the Great Recession, the City 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. 11 The 2019Budget development process began at the February 13, 2018 Council workshop where among other topics, Council and staff discussed the budget in general terms. In mid-April 2018 the Finance Department notified City Departments that their 2019 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 12, 2018. 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 2019 Budget is scheduled to be adopted on November 13, 2018, the Council will have had an opportunity to discuss it on eightseparate occasions, including threepublic hearings to gather input from citizens: June 12 Council budget workshop August 21Admin report: Estimated 2019 revenues and expenditures September 11 Public hearing #1on 2019 revenues and expenditures September 25 City Manager’s presentation ofpreliminary 2019Budget October 9 Public hearing #2on 2019 Budget October 23 First reading on ordinance adopting the 2019 Budget November 13 Public hearing #3on the 2019Budget November 13 Second reading on ordinance adopting the 2019 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 ordinancefollowing a public hearing. 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. 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. 12 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: 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: 13 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 3.Debt Service Funds These funds account for financial resources which are designated for the retirement of debt. Debt Service Funds are comprised of the #204 – LTGO Debt Service Fund. 4.Capital Project Funds These funds account for financial resources, which are designated for the acquisition or construction of general government capital projects.Capital Project Funds include: #301– REET 1 Capital 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 Proprietary Fund Types Asecondtype of fund classification isthe 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 economicresources 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 14 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 theperiod 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 andProprietary 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 withdeducting 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. Retail Sales and Use Tax The sales tax rate for retail sales transacted within the boundaries of the City of Spokane Valley is 8.8%. 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 thetax. The allocation of the 8.8% tax rate to the agencies is as follows: 15 State of Washington6.50% City of Spokane Valley0.85% Spokane County0.15% Criminal Justice0.10% Spokane Public Facilities District0.10%* Public Safety0.10%*2.30% local tax Juvenile Jail0.10%* Mental Health0.10%* Law Enforcement Communications0.10%* Spokane Transit Authority0.70%* 8.80% * 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 capitabasis 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 Pull tabs(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. 16 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 allquarterly revenues are distributed in the same month of the quarter. The 2018population figure used in the 2019 Budget is 95,810 as reported by the Office of Financial Management for Washington State on April 1, 2018. 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-waypermits. 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 $0.494per 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 2018 the Municipal Research and Services Center estimates the distribution back to cities will be $21.93per person. Based upon a City of Spokane Valley population of 95,810 (per the Washington State Office of Financial Management on April 1, 2018) we anticipate the City will collect $2,101,100in 2019. RCW 47.30.050 specifies that 0.42% of this tax must be expended for paths and trails activities and based upon the 2019 revenue estimate this computes to $8,800. The balance of $2,092,300 will be credited to Fund #101 for street maintenance and operations. 17 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 $1.7 million for 2019. Paths & Trails Fund #103 Citiesare 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 $8,800 in 2019. Because the amount collected in any given year is relatively small, it istypical 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 $390,000 in 2019. Hotel / Motel Tax Fund #105 The City imposes a 2% tax under RCW 67.28.180 on allcharges 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. Thistax is estimated to generate $600,000 in 2019. 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. Also, under the City’s contract for solid waste collection services with Waste Management of Washington, Inc., Waste Management pays an administrative fee of 12.5% of gross receipts. This fee shall be used by the City for costs related to solid waste services, including costs for contract administration, solid waste planning and management, and for a portion of the City’s street preservation and maintenance programs. Of the amounts collected under the fee, no more than 1% of gross receipts may be used for contract administration. PEG Fund #107 Under the City's cable franchise, the franchise grantee remits to the City ina 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. 18 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 LTGObonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond repayment (much like refinancing a home mortgage). At the completion of the bond refunding there remained $7,035,000 of LTGO bonds. Of this total: $5,650,000 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 bythe Spokane Public Facilities District. At January 1, 2019, the outstanding balance on this portion of the bond issue will be $4,645,000. $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 stnd from the 1and 2quarter percent real estate excise tax. At January 1, 2019 the outstanding balance on this portion of the bond issue will be $730,000. In 2016 the City issued $7,275,000 in LTGO bonds, the proceeds of which were used to finance the construction of a new City Hall 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, 2019, the outstanding balance on the bond issue will be $6,895,000. 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 $1,890,000 in 2019. 19 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 2019. 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. 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 2019: Out: 001105106301302312Total In 001030,00040,42200070,422 10100000907,544907,544 204401,2500082,47582,4750566,200 303000504,172167,434317,000988,606 3091,320,000000014,7881,334,788 In: 311972,30001,500,000734,300734,30003,940,900 31400050,0000050,000 50136,6000000036,600 502390,00000000390,000 8,285,060Total in Total Out3,120,15030,0001,540,4221,370,947984,2091,239,3328,285,060Total out 0 #001– General Fund is budgeted to transfer out $3,120,150 including: $401,250to Fund #204 – LTGO Debt Service Fund for bond payments on the 2016 LTGO Bonds for the City Hall construction. $1,320,000 to Fund #309 – Park Capital Projects Fund for park related projects, including $160,000 for a restroom facility as Browns Parkand $1,000,000 for additional improvements at Browns Park. $972,300 to Fund #311 – Pavement Preservation Fund for pavement preservation projects. $36,600 to Fund #501 – Equipment Rental and Replacement Fund to fund a CenterPlace kitchen equipment replacement reserve. $390,000 to Fund #502 – Risk Management Fund for the 2019 property and liability insurance premium. #105– Hotel / Motel Tax Fundis budgeted to transfer $30,000 to Fund #001 – General Fund for the purpose of financing advertising at CenterPlace. 20 #106– Solid Waste Fundis budgeted to transfer $40,422 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.The final transfer for this reimbursement is in 2019. #301– REET1 Capital Projects Fund is budgeted to transfer out $1,357,058including: $82,475to Fund #204 –LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. $504,172to Fund #303 – Street Capital Projects Fund that will be applied towards grant matches for street construction projects. $734,300to Fund #311 – Pavement Preservation Fund for pavement preservation projects. $50,000to Fund #314 – Railroad Grade Separation Projects Fund for the Barker Rd. grade separation project. #302– REET 2 Capital Projects Fund is budgeted to transfer out $984,209including: $82,475to Fund #204 –LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. $167,434to Fund #303 – Street Capital Projects Fund that will be applied towards grant matches for street construction projects. $734,300to Fund #311 – Pavement Preservation Fund for pavement preservation projects. #312– Capital Reserve Fund is budgetedto transfer out $1,239,332including: $907,544 to Fund #101 – Street Fund as a one-time coverage of the estimated deficit in recurring activity for the 2019 Budget. $317,000 to Fund #303 – Street Capital Projects Fund that will be applied towards City funded street construction projects. $14,788to Fund #309 –Parks Capital Projects Fund that will be applied towards the Sullivan to Corbin and Evergreen to Sullivan segmentsof the Appleway Trail. SIGNIFICANT ASSUMPTIONS IN THE 2019 BUDGET Budget Summary for All Funds Based upon funding levels anticipated in the 2019 budget, City staff will strive to maintain adequate levels of service. Appropriations for all City Funds will total $78.3 million including $20.6million in capital expenditures, comprised in-part of: $5.4million in Fund #303 – Street Capital Projects. o $1.8million in Fund #309 – Park Capital Projects. o $7.2 million in Fund #311 – Pavement Preservation projects. o $4.7 million in Fund #314 – RailroadGrade Separation Projects. o $450 thousandin Fund #402 – Stormwater Management projects. o $833 thousandin Fund #403 – Aquifer Protection Area projects. o To partially offset the $20.6million in capital costs, we anticipate $11million in grant revenues which results in 53.26% of capital expenditures being covered with State and Federal money. Budgets will be adopted across 24separate funds. The full time equivalent of employee (FTE) count will be 93.75employees compared to 89.25 in the prior year as a result of the reduction of a vacant administrative assistant position in the City Manager’s office from 1.0 to 0.5 FTE, and the addition of 5.0 FTEs requested by the Community and Public Works Department that are necessary to meet project needs going into the future. The 5 FTEs represent an increase of 0.4 FTE in Fund #001 – General Fund, 1.5 FTEs in Fund #101 – Street Operations & Maintenance, and 3.1 FTEs in Fund #303 – Street Capital Projects. 21 See the City Manager’s budget message for further details on FTE count for the City. o The 2019 Budget reflects the fifth 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 $2,440,900. 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. 2019 General Fund Revenues Total recurring 2019 revenues are estimated at $45,496,900as compared to $43,007,600in 2018. This is an increase of $2,489,300or 5.79%. The two largest sources of revenue continue to be Sales Tax and PropertyTax which are collectively estimated to account for 83.52% of 2019 General Fund recurring revenues. The 2019general sales tax estimate (excluding criminal justice and public safety sales taxes) is reflective of 2018 receipts to date and are currently estimated at $22.9million which reflects an increase of $2,035,100or 9.75% over the 2018 estimate. The Property Tax levy does not include the potential annual increase allowed by Initiative #747 which was approvedby the voters in November 2001 and the subsequent action by the State Legislature in November 2007. The 2019 levy is estimated at $12,054,400. o The levy assumes we start with the 2018 levy of $11,804,400, forgo the potential annual o increase allowed by State law, and finally add taxes related to new construction which we estimate to be $250,000. Franchise fees and business registrations are primarily based on projected receipts in 2018. State shared revenues are based upon a combination of historical collections including 2018 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. 2019 General Fund Expenditures Total 2019 recurring expenditures are budgeted at $41,691,369as compared to $40,901,919 in 2018. This is an increase of $789,450or 1.93%. The City commitment of 6% ofrecurring General Fund expenditures to pavement preservation equals $2,440,900 and is computed by multiplying total recurring expenditures prior to adding the pavement preservation element ($2,440,900 / $40,719,069= 6%). The $2,440,900 that is transferred to Pavement Preservation Fund #311 is comprised of the following: $972,300 from General Fund #001 o $734,300from REET 1 Capital Projects Fund #301 o $734,300from REET 2 Capital Projects Fund #302 o 2019 Nonrecurring expenditures total $1,342,000and include: $107,000 for Information Technology expenditures including: o $22,000 to replace outdated copiers $50,000 to upgrade storage devices at CenterPlace $30,000 for a whole room UPS for the server room at City Hall 22 $50,000 for workstations and carpet replacement at the police precinct o $25,000 for retail recruitment services o $160,000 transfer out to the Parks Capital Projects Fund #309 to construct a new restroom o at Browns Park $1,000,000 transfer out to the Parks Capital Projects Fund #309 to complete additional o improvements at Browns Park General Fund Revenues Over (Under) Expenditures and Fund Balance 2019 recurring revenues are anticipated to exceed recurring expenditures by $3,805,531. Total 2019 revenuesare anticipated to exceed total expendituresby $2,503,953. The total unrestricted General Fund ending fund balance is anticipated to be $33,064,618at the end of 2019 which is 79.31% of total recurring expenditures of $41,691,369. 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 $2,101,100 according to per capita estimates provided by the Municipal Research and Services Center. Of this amount, $2,092,300 will be credited to the Street O&M Fund#101and 0.42% or $8,800 to the Paths and Trails Fund#103. Telephone taxes that are remitted to the City and support Street Fund operations and maintenance are anticipated at $1,700,000. 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 2019 we estimate these revenues to be $1,000,000 per each ¼% for a total of $2,000,000. Hotel/Motel tax revenues are computed by the City and are dedicated to the promotion of visitors and tourism. In 2019 we estimate the tax will generate $990,000, which includes $600,000 in Fund #105 Hotel / Motel Tax Fund from the 2% tax and $390,000 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 2019 we estimate this will fee will generate $1,890,000. 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 thatwill be applied to a variety of construction projects are estimated at $10,974,189in 2019. By fund we anticipate grant revenues as follows: Fund #303 – Street Capital Projects - $4,408,681 o Fund #309 – Parks Capital Projects - $572,308 o Fund #311 – Pavement Preservation - $1,820,000 o Fund #314 – Railroad Grade Separation Projects Fund - $3,750,000 o Fund #402 – Stormwater Fund - $106,000 o Fund #403 – Aquifer Protection Area Fund - $317,200 o Expenditures Fund #101 – Street Fundappropriations include: 23 $4,918,044 for maintenance of City streets, including $497,200 in snow operations and o $855,000 in intergovernmental payments for services. Fund #106 – Solid Waste Fundappropriations include: a $1,500,000 transfer out to the Pavement Preservation Fund #311 for street preservation o activities Fund #301 – REET 1 Capital Projects Fundincludes a $1,370,947appropriation to cover: a $82,475transfer to LTGO Bond Debt Service Fund #204 to pay one-half of the City’s o annual repayment of the 2014 LTGO Bonds. a$504,172transfer to Street Capital Projects Fund #303 to partially offset the cost of o street construction / reconstruction projects. a $734,300transfer to Pavement Preservation Fund #311 for pavement preservation o projects. a $50,000 transfer to Railroad Grade Separation Projects Fund #314 for the Barker Road o Grade Separation Project. Fund #302 – REET 2 Capital Projects Fundincludes a $984,209appropriation to cover: a $82,475transfer to LTGO Bond Debt Service Fund #204 to pay one-half of the City’s o annual repayment of the 2014 LTGO Bonds. a $167,434transfer to Street Capital Projects Fund #303 to partially offset the cost of o street construction / reconstruction projects. a $734,300transfer to Pavement Preservation Fund #311 for pavement preservation o projects Fund #303 – Street Capital Projects Fundincludes an appropriation of $5,432,987for a variety of street construction projects. Included in the projects are the Sullivan/Wellesley intersection projectfor which we are appropriating $1,167,287in 2019 and the N. Sullivan Corridor ITS projectfor which we are appropriating $730,000in 2019. Fund #309 – Parks Capital Projectsincludes a $1,812,095appropriation to cover a variety of City park improvements that will be financed through a combination of a $1,320,000 transfer from the General Fund #001, a $14,788transfer in from the Capital Reserve Fund #312, and $572,308in grant proceeds. Fund #311 –Pavement Preservationincludes $7,238,200of 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 Reserveincludes $906,544 in transfers to Fund #101 – Street O&M to coverthe estimated deficitin recurring activity for 2019and$317,000in transfers to Fund #303– Street Capital Projects that will be applied towards the removal and reconstruction of Euclid Ave. from Flora to Barkerin the amount of $5,000, towards improvements at the th intersection of 8and Carnahan in the amount of $45,000,and towards the widening of the Barker Road corridorin the amount of $267,000. It also includes $14,788in transfers to Fund #309– Parks Capital Projects that will be applied toward the Sullivan to Corbin and Evergreen to Sullivan segments of the Appleway Trail. 24 Fund #314 – Railroad Grade Separation Projectsincludes appropriations in the amount of $4,700,000towards the Barker Road Grade Separationproject and the Pines Road Grade Separation project. Fund #402 – Stormwater Fundincludes $560,000 for nonrecurring expenditures including: $450,000 for various capital projects o $110,000 for the studies related to the City’s Stormwater permit and the watershed o Fund #403 – Aquifer Protection Area Fundincludes a $832,600 appropriation to various capital projects. 25 This page left intentionally blank. 26 CITY OF SPOKANE VALLEY, WA 2019 Budget Summary EstimatedEstimated BeginningEnding FundFundTotalFund AppropriationsBalance Annual Appropriation FundsNo.BalanceRevenuesSources General Fund00130,560,66545,537,32276,097,98743,033,36933,064,618 Street Fund101636,7484,918,0445,554,7924,918,044636,748 Paths & Trails Fund1035,0249,20014,224014,224 Hotel/Motel Tax - Tourism Facilities Fund1041,857,095397,0002,254,09502,254,095 Hotel/Motel Tax Fund105200,867602,000802,867655,000147,867 Solid Waste106190,6821,726,3001,916,9821,726,300190,682 PEG Fund10762,63776,000138,63771,10067,537 CenterPlace Operating Reserve Fund120300,0000300,0000300,000 Service Level Stabilization Fund1215,500,00005,500,00005,500,000 Winter Weather Reserve Fund122501,2175,000506,217500,0006,217 LTGO Bond Debt Service Fund2040998,350998,350998,3500 REET 1 Capital Projects Fund3011,778,6931,022,0002,800,6931,370,9471,429,746 REET 2 Capital Projects Fund3022,649,6611,025,0003,674,661984,2092,690,452 Street Capital Projects30366,6925,432,9875,499,6795,432,98766,692 Park Capital Projects Fund30943,5021,907,0961,950,5981,812,095138,503 Civic Facilities Capital Projects Fund310849,5889,000858,5880858,588 Pavement Preservation Fund3113,875,1635,760,9009,636,0637,288,2002,347,863 Capital Reserve Fund3126,990,05650,0007,040,0561,239,3325,800,724 City Hall Construction Fund31326,116026,116026,116 Railroad Grade Separation Projects Fund314901,6123,800,0004,701,6124,700,0001,612 56,996,01873,276,199130,272,21774,729,93355,542,284 EstimatedEstimated BeginningEnding FundWorkingTotalWorking Working Capital FundsNo.CapitalRevenuesSourcesAppropriationsCapital Stormwater Management Fund4021,616,6072,016,0003,632,6072,297,3321,335,275 Aquifer Protection Area Fund4031,670,248787,2002,457,448832,6001,624,848 Equipment Rental & Replacement Fund5011,258,812188,0291,446,84120,0001,426,841 Risk Management Fund502244,261390,000634,261390,000244,261 4,789,9283,381,2298,171,1573,539,9324,631,225 Total of all Funds61,785,94676,657,428138,443,37478,269,86560,173,509 27 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% #001 - GENERAL FUND RECURRING ACTIVITY Revenues Property Tax11,796,100011,796,10012,054,400258,3002.19% Sales Tax20,881,900020,881,90022,917,0002,035,1009.75% Sales Tax - Public Safety 967,8000967,8001,081,900114,10011.79% Sales Tax - Criminal Justice1,738,00001,738,0001,944,000206,00011.85% Gambling Tax and Leasehold Excise Tax381,0000381,000387,0006,0001.57% Franchise Fees/Business Registration1,210,00001,210,0001,224,00014,0001.16% State Shared Revenues2,109,60002,109,6001,909,800(199,800)(9.47%) Fines and Forfeitures/Public Safety1,319,90001,319,9001,078,500(241,400)(18.29%) Community and Public Works1,684,10001,684,1001,882,300198,20011.77% Recreation Program Revenues633,3000633,300628,800(4,500)(0.71%) Miscellaneous Department Revenue1,00001,0001,00000.00% Miscellaneous & Investment Interest201,8000201,800358,200156,40077.50% Transfers in - #101 39,700039,7000(39,700)(100.00%) (street admin) Transfers in - #105 30,000030,00030,00000.00% (h/m tax-CP advertising) Transfers in - #402 13,400013,4000(13,400)(100.00%) (storm admin) Total Recurring Revenues43,007,600043,007,60045,496,9002,489,3005.79% Expenditures City Council548,4941,593550,087545,903(4,184)(0.76%) City Manager956,245455956,700948,835(7,865)(0.82%) City Attorney594,7527,455602,207610,5498,3421.39% Public Safety25,464,251025,464,25125,927,304463,0531.82% Deputy City Manager450,663228450,891267,044(183,847)(40.77%) Finance / IT1,339,0649101,339,9741,402,49762,5234.67% Human Resources275,3875,028280,415297,42117,0066.06% City Hall Operations and Maintenance306,043228306,271290,543(15,728)(5.14%) Community & Public Works - Engineering 1,572,94756,3461,629,2931,816,141186,84811.47% Community & Public Works - Economic Dev970,642228970,8701,018,77247,9024.93% Community & Public Works - Building & Plan2,265,677(55,890)2,209,7872,248,69838,9111.76% Parks & Rec - Administration301,083228301,311335,95834,64711.50% Parks & Rec - Maintenance893,700(29,725)863,975893,50029,5253.42% Parks & Rec - Recreation 260,574228260,802253,622(7,180)(2.75%) Parks & Rec - Aquatics492,90023,000515,900491,153(24,747)(4.80%) Parks & Rec - Senior Center98,229098,229101,2152,9863.04% Parks & Rec - CenterPlace910,468228910,696949,41438,7184.25% General Government1,261,61001,261,6101,332,65071,0405.63% Transfers out - #204 399,3500399,350401,2501,9000.48% (2016 LTGO debt service) Transfers out - #309 160,0000160,000160,00000.00% (park capital projects) Transfers out - #311 962,7000962,700972,3009,6001.00% (pavement preservation) Transfers out - #501 36,600036,60036,60000.00% (CenterPlace kitchen reserve) Transfers out - #502 370,0000370,000390,00020,0005.41% (insurance premium) Total Recurring Expenditures40,891,37910,54040,901,91941,691,369789,4501.93% Recurring Revenues Over (Under) Recurring Expenditures2,116,221(10,540)2,105,6813,805,531 28 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% #001 - GENERAL FUND - continued NONRECURRING ACTIVITY Revenues Transfers in - #10640,425040,42540,422(3)(0.01%) (solid waste repayment) Total Nonrecurring Revenues40,425040,42540,422(3)(0.01%) Expenditures General Government - IT capital replacements115,0000115,000107,000(8,000)(6.96%) City Attorney 4,80904,8090(4,809)(100.00%) (part-time attorney furniture) Deputy City Manager 11,700011,7000(11,700)(100.00%) (Q-Alert software) Economic Development 50,000050,00025,000(25,000)(50.00%) (retail recruitment) Public Safety 100,0000100,0000(100,000)(100.00%) (full facility generator) Public Safety 00050,00050,0000.00% (carpet & workstation replacement) Parks & Rec 50,000050,0000(50,000)(100.00%) (Flooring in Great Room & Dining Room) Parks & Rec 3,00003,0000(3,000)(100.00%) (CP reseal two restroom floors) General Government - City Hall generator0200,000200,0000(200,000)(100.00%) Transfers out - #122 0490,000490,0000(490,000)(100.00%) (replenish reserve) Transfers out - #309 200,0000200,0000(200,000)(100.00%) (Browns Park lighting & path) Transfers out - #309 200,0000200,0000(200,000)(100.00%) (CP outdoor venue Phase 1) Transfers out - #309 029,72529,7250(29,725)(100.00%) (Appleway Trail Amenities) Transfers out - #309 000160,000160,0000.00% (Browns Park restroom) Transfers out - #309 0001,000,0001,000,0000.00% (Browns Park other) Transfers out - #312 02,795,4292,795,4290(2,795,429)(100.00%) ('16 fund bal > 50%) Transfers out - #312 1,000,00001,000,0000(1,000,000)(100.00%) (misc capital projects) Total Nonrecurring Expenditures1,734,5093,515,1545,249,6631,342,000(3,907,663)(74.44%) Nonrecurring Revenues Over (Under) Nonrecurring Expenditures(1,694,084)(3,515,154)(5,209,238)(1,301,578) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures422,137(3,525,694)(3,103,557)2,503,953 Beginning unrestricted fund balance33,664,22233,664,22230,560,665 Ending unrestricted fund balance34,086,35930,560,66533,064,618 Fund balance as a percent of recurring expenditures83.36%74.72%79.31% General Fund Summary Total revenues43,048,025043,048,02545,537,322 Total expenditures42,625,8883,525,69446,151,58243,033,369 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures422,137(3,525,694)(3,103,557)2,503,953 Beginning unrestricted fund balance33,664,22233,664,22230,560,665 Ending unrestricted fund balance34,086,35930,560,66533,064,618 29 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% SPECIAL REVENUE FUNDS #101 - STREET FUND RECURRING ACTIVITY Revenues Utility Tax1,900,00001,900,0001,700,000(200,000)(10.53%) Motor Vehicle Fuel (Gas) Tax2,052,40002,052,4002,092,30039,9001.94% Multimodal Transportation Revenue133,8000133,800132,200(1,600)(1.20%) Right-of-Way Maintenance Fee70,000070,00070,00000.00% Investment Interest6,00006,0006,00000.00% Miscellaneous10,000010,00010,00000.00% Total Recurring Revenues4,172,20004,172,2004,010,500(161,700)(3.88%) Expenditures Wages / Benefits / Payroll Taxes771,0190771,0191,044,547273,52835.48% Supplies112,5000112,500113,3008000.71% Services & Charges2,141,7514552,142,2062,308,818166,6127.78% Snow Operations504,8000504,800497,200(7,600)(1.51%) Intergovernmental Payments851,0000851,000855,0004,0000.47% Vehicle rentals - #50121,250021,25021,25000.00% (non-plow vehicle rental) Vehicle rentals - #501 77,929077,92977,92900.00% (plow replace.) Transfers out - #00139,700039,7000(39,700)(100.00%) Transfers out - #311 67,342067,3420(67,342)(100.00%) (pavement preservation) Total Recurring Expenditures4,587,2914554,587,7464,918,044330,2987.20% Recurring Revenues Over (Under) Recurring Expenditures(415,091)(455)(415,546)(907,544) NONRECURRING ACTIVITY Revenues Transfers in - #312000907,544907,5440.00% Total Nonrecurring Revenues000907,544907,5440.00% Expenditures Battery backups for intersections15,000015,0000(15,000)(100.00%) Total Nonrecurring Expenditures15,000015,0000(15,000)(100.00%) Nonrecurring Revenues Over (Under) Nonrecurring Expenditures(15,000)0(15,000)907,544 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures(430,091)(455)(430,546)0 Beginning fund balance1,067,2941,067,294636,748 Ending fund balance637,203636,748636,748 Street Fund Summary Total revenues4,172,20004,172,2004,918,044 Total expenditures4,602,2914554,602,7464,918,044 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures(430,091)(455)(430,546)0 Beginning unrestricted fund balance1,067,2941,067,294636,748 Ending unrestricted fund balance637,203636,748636,748 30 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% SPECIAL REVENUE FUNDS - continued #103 - PATHS & TRAILS FUND Revenues Motor Vehicle Fuel (Gas) Tax8,70008,7008,8001001.15% Investment Interest0004004000.00% Total revenues8,70008,7009,2005005.75% Expenditures Transfers out - #309050,00050,0000(50,000)(100.00%) (Appleway Trail - Sullivan to Corbin) Total expenditures050,00050,0000(50,000)(100.00%) Revenues over (under) expenditures8,700(41,300)9,200 Beginning fund balance46,32446,3245,024 Ending fund balance55,0245,02414,224 #104 - HOTEL / MOTEL TAX - TOURISM FACILITIES FUND Revenues Hotel/Motel Tax377,0000377,000390,00013,0003.45% Investment Interest 1,50001,5007,0005,500366.67% Transfers in - #1050250,000250,0000(250,000)(100.00%) Total revenues378,500250,000628,500397,000(231,500)(36.83%) Expenditures Capital Outlay000000.00% Total expenditures000000.00% Revenues over (under) expenditures378,500628,500397,000 Beginning fund balance1,228,5951,228,5951,857,095 Ending fund balance1,607,0951,857,0952,254,095 #105 - HOTEL / MOTEL TAX FUND Revenues Hotel/Motel Tax580,0000580,000600,00020,0003.45% Investment Interest 1,00001,0002,0001,000100.00% Total revenues581,0000581,000602,00021,0003.61% Expenditures Transfers out - #00130,000030,00030,00000.00% Transfers out - #1040250,000250,0000(250,000)(100.00%) Tourism Promotion572,000(250,000)322,000625,000303,00094.10% Total expenditures602,0000602,000655,00053,0008.80% Revenues over (under) expenditures(21,000)(21,000)(53,000) Beginning fund balance221,867221,867200,867 Ending fund balance200,867200,867147,867 #106 - SOLID WASTE FUND Revenues Sunshine Administrative Fee225,0000225,000225,00000.00% Solid Waste Road Wear Fee01,000,0001,000,0001,500,000500,00050.00% Investment Interest0001,3001,3000.00% Total revenues225,0001,000,0001,225,0001,726,300501,30040.92% Expenditures Education & Contract Administration184,5750184,575185,8781,3030.71% Transfers out - #001 40,425040,42540,422(3)(0.01%) Transfers out - #31101,000,0001,000,0001,500,000500,00050.00% Total expenditures225,0001,000,0001,225,0001,726,300501,30040.92% Revenues over (under) expenditures000 Beginning fund balance190,682190,682190,682 Ending fund balance190,682190,682190,682 31 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% SPECIAL REVENUE FUNDS - continued #107 - PEG FUND Revenues Comcast PEG Contribution79,000079,00076,000(3,000)(3.80%) Investment Interest 000000.00% Total revenues79,000079,00076,000(3,000)(3.80%) Expenditures PEG Reimbursement - CMTV40,200040,20040,100(100)(0.25%) Capital Outlay31,000031,00031,00000.00% Total expenditures71,200071,20071,100(100)(0.14%) Revenues over (under) expenditures7,8007,8004,900 Beginning fund balance54,83754,83762,637 Ending fund balance62,63762,63767,537 #120 - CENTER PLACE OPERATING RESERVE FUND Revenues Investment Interest000000.00% Miscellaneous000000.00% Total revenues000000.00% Expenditures Operations000000.00% Total expenditures000000.00% Revenues over (under) expenditures000 Beginning fund balance300,000300,000300,000 Ending fund balance300,000300,000300,000 #121 - SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest000000.00% Miscellaneous000000.00% Total revenues000000.00% Expenditures Operations000000.00% Total expenditures000000.00% Revenues over (under) expenditures000 Beginning fund balance5,500,0005,500,0005,500,000 Ending fund balance5,500,0005,500,0005,500,000 #122 - WINTER WEATHER RESERVE FUND Revenues Investment Interest3,50003,5005,0001,50042.86% Transfers in - #0010490,000490,0000(490,000)(100.00%) Subtotal revenues3,500490,000493,5005,000(488,500)(98.99%) Expenditures Street maintenance expenditures500,0000500,000500,00000.00% Total expenditures500,0000500,000500,00000.00% Revenues over (under) expenditures(496,500)(6,500)(495,000) Beginning fund balance7,7177,717501,217 Ending fund balance(488,783)1,2176,217 32 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% DEBT SERVICE FUNDS #204 - LTGO BOND DEBT SERVICE FUND Revenues Spokane Public Facilities District414,0500414,050432,15018,1004.37% Transfers in - #001399,3500399,350401,2501,9000.48% Transfers in - #30182,000082,00082,4754750.58% Transfers in - #30282,000082,00082,4754750.58% Total revenues977,4000977,400998,35020,9502.14% Expenditures Debt Service Payments - CenterPlace414,0500414,050432,15018,1004.37% Debt Service Payments - Roads164,0000164,000164,9509500.58% 2016 LTGO Bond Principal & Interest399,3500399,350401,2501,9000.48% Total expenditures977,4000977,400998,35020,9502.14% Revenues over (under) expenditures000 Beginning fund balance000 Ending fund balance000 33 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% CAPITAL PROJECTS FUNDS #301 - REET 1 CAPITAL PROJECTS FUND Revenues REET 1 - Taxes800,000700,0001,500,0001,000,000(500,000)(33.33%) Investment Interest7,50007,50022,00014,500193.33% Total revenues807,500700,0001,507,5001,022,000(485,500)(32.21%) Expenditures Transfers out - #20482,000082,00082,4754750.58% Transfers out - #3031,048,85201,048,852504,172(544,680)(51.93%) Transfers out - #311 685,3290685,329734,30048,9717.15% (pavement preservation) Transfers out - #314 038,00038,00050,00012,00031.58% (Barker Grade Separation) Total expenditures1,816,18138,0001,854,1811,370,947(483,234)(26.06%) Revenues over (under) expenditures(1,008,681)(346,681)(348,947) Beginning fund balance2,125,3742,125,3741,778,693 Ending fund balance1,116,6931,778,6931,429,746 #302 - REET 2 CAPITAL PROJECTS FUND Revenues REET 2 - Taxes800,000700,0001,500,0001,000,000(500,000)(33.33%) Investment Interest8,00008,00025,00017,000212.50% Total revenues808,000700,0001,508,0001,025,000(483,000)(32.03%) Expenditures Transfers out - #20482,000082,00082,4754750.58% Transfers out - #3031,003,54495,8901,099,434167,434(932,000)(84.77%) Transfers out - #311 685,3290685,329734,30048,9717.15% (pavement preservation) Total expenditures1,770,87395,8901,866,763984,209(882,554)(47.28%) Revenues over (under) expenditures(962,873)(358,763)40,791 Beginning fund balance3,008,4243,008,4242,649,661 Ending fund balance2,045,5512,649,6612,690,452 34 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% CAPITAL PROJECTS FUNDS - continued #303 - STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds8,919,182(938,037)7,981,1454,408,681(3,572,464)(44.76%) Developer65,212(32,180)33,03235,7002,6688.08% Transfers in - #3011,048,85201,048,852504,172(544,680)(51.93%) Transfers in - #3021,003,54495,8901,099,434167,434(932,000)(84.77%) Transfers in - #312 - 5,000410,839415,8395,000(410,839)(98.80%) Euclid Ave - Flora to Barker Transfers in - #312 - 0425,000425,00045,000(380,000)(89.41%) 8th & Carnahan Intersection Transfers in - #312 - 110,000(110,000)0000.00% Indiana bus stops & crosswalks Transfers in - #312 - 0148,488148,488267,000118,512(20.19%) Barker Corridor Total revenues11,151,790011,151,7905,432,987(5,718,803)(51.28%) Expenditures 123Mission Ave. - Flora to Barker3,625,716136,4123,762,1285,000(3,757,128)(99.87%) 141Sullivan & Euclid PCC 025,00025,0000(25,000)(100.00%) 142Broadway @ Argonne/Mullan PCC intersection2,250,00091,7992,341,79912,500(2,329,299)(99.47%) 166Pines Rd (SR27) & Grace Ave. Intersect Safety402,71092,290495,0005,000(490,000)(98.99%) 201ITS Infill Project Phase 1378,17258,828437,0005,000(432,000)(98.86%) 205Sprague/Barker Intersections Improvement35,700035,70035,70000.00% 221McDonald Rd Diet (16th to Mission)1,00001,0000(1,000)(100.00%) 222Citywide Reflective Signal Backplates17,00025,64542,6450(42,645)(100.00%) 239Bowdish Sidewalk 8th to 12th5,00005,0000(5,000)(100.00%) 2478th & Carnahan Intersection Improvements0425,000425,00045,000(380,000)(89.41%) 249Sullivan/Wellesley Intersection268,0000268,0001,167,287899,287335.55% 2509th Ave. Sidewalk2,00002,0000(2,000)(100.00%) 251Euclid Ave. - Flora to Barker5,000414,359419,3595,000(414,359)(98.81%) 25832nd Ave Sidewalk - SR27 to Evergreen407,8700407,8705,000(402,870)(98.77%) 259N. Sullivan Corridor ITS Project808,723(723,723)85,000730,000645,000758.82% 263Citywide Signal Backplates24,526100,193124,7190(124,719)(100.00%) 2648th Ave Sidewalk458,9580458,9580(458,958)(100.00%) 265Wellesley Sidewalk Project647,665(609,665)38,000382,000344,000905.26% 267Mission Ave Sidewalk60,250060,250420,000359,750597.10% 273Barker/I-90 Interchange0500,000500,000500,00000.00% 275Barker Rd Widening - River to Euclid088,00088,000132,00044,00050.00% 276Barker Rd Widening - Euclid to Garland054,00054,00081,00027,00050.00% 277Barker Rd Widening - Garland to Trent036,00036,00054,00018,00050.00% 278Wilbur Rd Sidewalk - Boone to Broadway020,00020,000354,500334,5001672.50% 279Knox Ave Sidewalk - Hutchinson to Sargent020,00020,000294,000274,0001370.00% 281Highland Estates Connector000200,000200,0000.00% Barker Road Widening106,500(106,500)0000.00% Coleman Sidewalk25,000(25,000)0000.00% Argonne Reconstruction - Indiana to Montgom512,000(512,000)0000.00% Indiana bus stops & crosswalks110,000(110,000)0000.00% Contingency1,000,000(638)999,3621,000,0006380.06% Total expenditures11,151,790011,151,7905,432,987(5,718,803)(51.28%) Revenues over (under) expenditures000 Beginning fund balance66,69266,69266,692 Ending fund balance66,69266,69266,692 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. 35 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% CAPITAL PROJECTS FUNDS - continued #309 - PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds1,693,20001,693,200572,308(1,120,892)(66.20%) Transfers in - #001560,00029,725589,7251,320,000730,275123.83% Transfers in - #103050,00050,0000(50,000)(100.00%) Transfers in - #312 324,1000324,10014,788(309,312)(95.44%) Investment Interest 000000.00% Total revenues2,577,30079,7252,657,0251,907,096(749,929)(28.22%) Expenditures 237Appleway Trail 1,853,300233,0002,086,3005,000(2,081,300)(99.76%) (Sullivan to Corbin) 268Appleway Trail 164,0000164,00072,500(91,500)(55.79%) (Evergreen to Sullivan) 270CenterPlace outdoor venue - Phase 1200,0000200,0000(200,000)(100.00%) 271Browns Park lighting and pathway200,000(176,800)23,2000(23,200)(100.00%) 274Park signs 24,000024,0000(24,000)(100.00%) (Sullivan, Park Rd, Balfour) 280Appleway Trail Amenities 029,72529,725509,595479,8701614.37% (Univ - Pines) 282Browns Park volleyball courts0176,800176,8000(176,800)(100.00%) Browns Park restroom000160,000160,0000.00% Browns Park improvements0001,000,0001,000,0000.00% Swing sets00025,00025,0000.00% Resurface Discovery Park00040,00040,0000.00% Electrical Upgrade Mirabeau Point Park07,7007,7000(7,700)(100.00%) Heart of the Valley Sculpture Placement028,00028,0000(28,000)(100.00%) Total expenditures2,441,300298,4252,739,7251,812,095(927,630)(33.86%) Revenues over (under) expenditures136,000(82,700)95,001 Beginning fund balance126,202126,20243,502 Ending fund balance262,20243,502138,503 #310 - CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Investment Interest 5,90005,9009,0003,10052.54% Total revenues5,90005,9009,0003,10052.54% Expenditures Transfers out - #001000000.00% Total expenditures000000.00% Revenues over (under) expenditures5,9005,9009,000 Beginning fund balance843,688843,688849,588 Ending fund balance849,588849,588858,588 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 $839,285.10. #311 - PAVEMENT PRESERVATION Revenues Transfers in - #001962,7000962,700972,3009,6001.00% Transfers in - #10167,342067,3420(67,342)(100.00%) Transfers in - #10601,000,0001,000,0001,500,000500,00050.00% Transfers in - #301685,3290685,329734,30048,9717.15% Transfers in - #302685,3290685,329734,30048,9717.15% Grant Proceeds2,572,500(1,000,000)1,572,5001,820,000247,50015.74% Total revenues4,973,20004,973,2005,760,900787,70015.84% Expenditures Pavement preservation4,008,600401,9404,410,5407,238,2002,827,66064.11% Pre-project GeoTech50,000050,00050,00000.00% Total expenditures4,058,600401,9404,460,5407,288,2002,827,66063.39% Revenues over (under) expenditures914,600512,660(1,527,300) Beginning fund balance3,362,5033,362,5033,875,163 Ending fund balance4,277,1033,875,1632,347,863 36 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% CAPITAL PROJECTS FUNDS - continued #312 - CAPITAL RESERVE FUND Revenues Transfers in - #0011,000,0002,795,4293,795,4290(3,795,429)(100.00%) Transfers in - #31374,960074,9600(74,960)(100.00%) Investment Interest 16,000016,00050,00034,000212.50% Total revenues1,090,9602,795,4293,886,38950,000(3,836,389)(98.71%) Expenditures City Hall Sculpture Siting05,3835,3830 Transfers out - #101000907,544 Transfers out - #303 5,000410,839415,8395,000(410,839)(98.80%) (Euclid Ave - Flora to Barker) Transfers out - #303 0425,000425,00045,000(380,000)(89.41%) (8th & Carnahan Intersection) Transfers out - #303 110,000(110,000)0000.00% (Indiana bus stops & crosswalks) Transfers out - #303 0148,488148,488267,000118,51279.81% (Barker Road Corridor) Transfers out - #309 301,9000301,9005,000(296,900)(98.34%) (Appleway Trail - Sullivan-Corbin) Transfers out - #309 22,200022,2009,788(12,412)(55.91%) (Appleway Trail - Evergreen-Sullivan Transfers out - #314 04,8094,8090(4,809)(100.00%) (Pines Rd Grade Separation) Total expenditures439,100884,5191,323,6191,239,332(84,287)(6.37%) Revenues over (under) expenditures651,8602,562,770(1,189,332) Beginning fund balance4,427,2864,427,2866,990,056 Ending fund balance5,079,1466,990,0565,800,724 #313 - CITY HALL CONSTRUCTION FUND Revenues Investment Interest 000000.00% Total revenues000000.00% Expenditures Transfers out - #312 74,960074,9600(74,960)(100.00%) Total expenditures74,960074,9600(74,960)(100.00%) Revenues over (under) expenditures(74,960)(74,960)0 Beginning fund balance101,076101,07626,116 Ending fund balance26,11626,11626,116 #314 - RAILROAD GRADE SEPARATION PROJECTS FUND Revenues Grant Proceeds1,919,921(1,149,921)770,0003,750,0002,980,000387.01% Transfers in - #301038,00038,00050,00012,00031.58% Transfers in - #312 04,8094,8090(4,809)(100.00%) Total revenues1,919,921(1,107,112)812,8093,800,0002,987,191367.51% Expenditures 143Barker BNSF Grade Separation1,919,921(1,019,921)900,0003,800,0002,900,000322.22% 223Pines Rd Underpass1,000,000(920,000)80,000900,000820,0001025.00% Total expenditures2,919,921(1,939,921)980,0004,700,0003,720,000379.59% Revenues over (under) expenditures(1,000,000)(167,191)(900,000) Beginning fund balance1,068,8031,068,803901,612 Ending fund balance68,803901,6121,612 37 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% ENTERPRISE FUNDS #402 - STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees1,870,00001,870,0001,890,00020,0001.07% Investment Interest7,50007,50020,00012,500166.67% Total Recurring Revenues1,877,50001,877,5001,910,00032,5001.73% Expenditures Wages / Benefits / Payroll Taxes557,1570557,157494,273(62,884)(11.29%) Supplies14,800014,80010,700(4,100)(27.70%) Services & Charges1,140,9822281,141,2101,182,10940,8993.58% Intergovernmental Payments35,000035,00037,5002,5007.14% Vehicle rentals - #50112,750012,75012,75000.00% Transfers out - #00113,400013,4000(13,400)(100.00%) Total Recurring Expenditures1,774,0892281,774,3171,737,332(36,985)(2.08%) Recurring Revenues Over (Under) Recurring Expenditures103,411(228)103,183172,668 NONRECURRING ACTIVITY Revenues Grant Proceeds65,000065,000106,00041,00063.08% Total Nonrecurring Revenues65,000065,000106,00041,00063.08% Expenditures Capital - various projects450,0000450,000450,00000.00% Effectiveness study15,000015,00010,000(5,000)(33.33%) Watershed studies60,000060,000100,00040,00066.67% Total Nonrecurring Expenditures525,0000525,000560,00035,0006.67% Nonrecurring Revenues Over (Under) Nonrecurring Expenditures(460,000)0(460,000)(454,000) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures(356,589)(228)(356,817)(281,332) Beginning working capital1,973,4241,973,4241,616,607 Ending working capital1,616,8351,616,6071,335,275 Stormwater Fund Summary Total revenues1,942,50001,942,5002,016,000 Total expenditures2,299,0892282,299,3172,297,332 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures(356,589)(228)(356,817)(281,332) Beginning unrestricted fund balance1,973,4241,973,4241,616,607 Ending unrestricted fund balance1,616,8351,616,6071,335,275 #403 - AQUIFER PROTECTION AREA Revenues Spokane County460,0000460,000460,00000.00% Grant Proceeds0445,955445,955317,200(128,755)(28.87%) Investment Interest00010,00010,0000.00% Total revenues460,000445,955905,955787,200(118,755)(13.11%) Expenditures Capital - various projects400,000248,780648,780832,600183,82028.33% Total expenditures400,000248,780648,780832,600183,82028.33% Revenues over (under) expenditures60,000257,175(45,400) Beginning working capital1,413,0731,413,0731,670,248 Ending working capital1,473,0731,670,2481,624,848 38 CITY OF SPOKANE VALLEY, WA11/13/2018 2019 Budget 20182019Difference Between As AsProposed2018 and 2019 AdoptedAmendmentAmendedBudget$% INTERNAL SERVICE FUNDS #501 - ER&R FUND Revenues Vehicle rentals - #00130,000030,00030,00000.00% Vehicle rentals - #10121,250021,25021,25000.00% Vehicle rentals - #10177,929077,92977,92900.00% (plow replace.) Vehicle rentals - #40212,750012,75012,75000.00% Transfer in - #001 36,600036,60036,60000.00% (CenterPlace kitchen reserve) Investment Interest4,00004,0009,5005,500137.50% Total revenues182,5290182,529188,0295,5003.01% Expenditures Small tools & minor equipment20,000020,00020,00000.00% Total expenditures20,000020,00020,00000.00% Revenues over (under) expenditures162,529162,529168,029 Beginning working capital1,096,2831,096,2831,258,812 Ending working capital1,258,8121,258,8121,426,841 #502 - RISK MANAGEMENT FUND Revenues Transfers in - #001370,0000370,000390,00020,0005.41% Total revenues370,0000370,000390,00020,0005.41% Expenditures Auto & Property Insurance370,0000370,000390,00020,0005.41% Total expenditures370,0000370,000390,00020,0005.41% Revenues over (under) expenditures000 Beginning fund balance244,261244,261244,261 Ending fund balance244,261244,261244,261 TOTAL OF ALL FUNDS Total of Revenues for all Funds75,762,9255,353,99781,116,92276,657,428 Total of Expenditures for all Funds77,365,5934,604,01081,969,60378,269,865 Total grant revenues (included in total revenues)15,169,803(2,642,003)12,527,80010,974,189 Total Capital expenditures (included in total expenditures)21,644,311(785,393)20,858,91820,603,882 39 CITY OF SPOKANE VALLEY, WA 2019 Budget Revenues by Fund General Fund Property Tax $12,054,400 Sales Tax22,917,000 Sales Tax - Public Safety1,081,900 Sales Tax - Criminal Justice1,944,000 Gambling and Leasehold Excise Tax 387,000 Franchise Fees/Business Registration1,224,000 State Shared Revenues1,909,800 Service Revenues1,882,300 Fines and Forfeitures1,078,500 Recreation Program Fees628,800 Miscellaneous, Investment Int., Transfers429,622 Total General Fund $45,537,322 Other Funds $4,918,044 101Street Fund 103Paths & Trails Fund9,200 104Hotel/Motel Tax Tourism Facilities Fund397,000 105Hotel/Motel Tax Fund602,000 106Solid Waste Fund1,726,300 107PEG Fund76,000 120CenterPlace Operating Reserve Fund0 121Service Level Stabilization Reserve Fund0 122Winter Weather Reserve Fund5,000 204LTGO Bond Debt Service Fund998,350 301REET 1 Capital Projects Fund1,022,000 302REET 2 Capital Projects Fund1,025,000 303Street Capital Projects Fund5,432,987 309Parks Capital Projects Fund1,907,096 310Civic Facilities Capital Projects Fund9,000 311Pavement Preservation Fund5,760,900 312Capital Reserve Fund50,000 313City Hall Construction Fund0 314Railroad Grade Separation Projects Fund3,800,000 402Stormwater Management Fund2,016,000 403Aquifer Protection Area Fund787,200 501Equipment Rental & Replacement Fund188,029 502Risk Management Fund390,000 $31,120,106 Total Other Funds Total All Funds$76,657,428 40 CITY OF SPOKANE VALLEY, WA 2019 Budget - General Fund Detail Revenues by Type 20152016201720182019 Proposed Actual BudgetBudget ActualActual Property Tax Property Tax11,095,00911,250,83211,433,07111,796,10012,054,400 Property Tax - Delinquent185,138163,275179,98600 11,280,14711,414,10711,613,05611,796,10012,054,400 Sales Taxes Sales Tax18,209,56819,887,04921,089,13420,881,90022,917,000 Sales Tax - Public Safety848,665910,798983,025967,8001,081,900 Sales Tax - Criminal Justice1,523,5881,642,8041,765,0401,738,0001,944,000 20,581,82122,440,65223,837,19923,587,70025,942,900 Gambling and Leasehold Excise Tax Amusement Games11,90913,67114,84113,00014,000 Card Games336,960288,199279,611288,000280,000 Bingo & Raffles9508391,0601,0001,000 Punch Boards & Pull Tabs62,96669,00172,29269,00072,000 Leasehold Excise Tax5,8696,56711,0736,50011,000 Leasehold Excise Tax (State)7703,5149,1753,5009,000 419,424381,790388,052381,000387,000 Licenses & Permits General Business Licenses109,076111,906124,006110,000124,000 Franchise Fees1,111,6161,145,3191,152,2031,100,0001,100,000 1,220,6921,257,2251,276,2091,210,0001,224,000 State Shared Revenues Streamline Mitigation of Sales Tax572,577559,044550,976520,000204,500 Payment in Lieu of Taxes - DNR 4,11407,7384,0004,000 CJ - High Crime00190,80200 MVET Criminal Justice - Population 24,86925,94026,83429,40031,600 CJ Contracted Services157,282159,936165,647155,000165,000 CJ Special Programs 91,00994,46298,475100,600104,400 Marijuana Enforcement37,91254,21334,14733,2000 Marijuana Excise Tax Distribution 0041,1640112,100 DUI - Cities13,57114,47214,18714,00014,000 Liquor Board Excise Tax 303,724442,294458,560466,800492,400 Liquor Board Profits806,570804,057794,980786,600781,800 2,011,6292,154,4172,383,5102,109,6001,909,800 Service Revenues Accessory Dwelling005880200 Building & Planning Fees 148,962134,686175,123126,400138,800 Building Permits770,2881,534,3321,327,855878,0001,000,000 Code Enforcement12,4172,1858,1985,0005,000 Demolition Permits3,8403,2324,1434,0003,800 Developer Contributions023,587000 Entertainment License18,37417,54811,64917,00015,700 Grading Permits4,7486,27111,6104,0005,600 Home Profession Fee2,8563,7805,1243,2003,600 Mechanical Permits89,975102,639129,76688,00099,000 Misc. Permits & Fees7,2293,9255,9676,6005,600 Planning Fees 379,143721,851475,409402,500448,000 Plumbing Permits41,78477,52362,54253,00057,600 Right of Way Permits91,12497,037123,06795,00097,700 Street Vacation Permits001,3651,0001,300 Temporary Use Permit Fees314471471400400 1,571,0532,729,0682,342,8781,684,1001,882,300 43 CITY OF SPOKANE VALLEY, WA 2019 Budget - General Fund Detail Revenues by Type 20152016201720182019 Proposed Actual BudgetBudget ActualActual Fines and Forfeitures Public Safety False Alarm Services201,638150,0585,534151,000151,000 Public Safety Grants49,41825,628050,00050,000 Fines & Forfeits - Traffic601,189477,743421,240483,600414,800 Other Criminal- Non Traffic Fines508,665606,463464,056635,300462,700 1,360,9101,259,892890,8301,319,9001,078,500 Recreation Program Charges Activity Fees (To use a recreational facility)461,772433,842467,504438,100446,200 Program Fees (To participate in a program)192,484204,527271,566195,200182,600 654,256638,369739,070633,300628,800 Miscellaneous AWC Health & Wellness 4004920500500 Copy Charges708262595500500 Dept. of Commerce Tr. & Econ. Dev.00114,20000 Insurance Recoveries044,474000 Interest on Gambling Tax66174271500500 Investment Interest73,378136,810309,826136,000300,000 Judgments and Settlements025,00044,49000 Miscellaneous Revenue & Grants5,32687,06539,0612,0002,000 Office of Public Def- Public Def Improvement20,00018,40017,50000 Police Precinct Maintenance019,05912,89119,00012,500 Police Precinct Rent 51,65338,84237,44638,00037,000 Sales Tax Interest8,68213,47718,3155,0005,000 SCRAPS pass-through/nonrecurring1,1001,2091,1451,3001,200 161,315385,264595,738202,800359,200 Transfers Transfers in - #101 (street admin)39,70039,70039,70039,7000 Transfers in - #105 (h/m tax-CP advertising)30,00030,00015,77830,00030,000 Transfers in - #106 (solid waste repayment)40,42540,42540,42540,42540,422 Transfers in - #3100198,734498,50000 Transfers in - #402 (storm admin)13,40013,40013,40013,4000 Transfers in - #5010077,00000 123,525322,259684,803123,52570,422 Total General Fund Revenue39,384,77142,983,04244,751,34543,048,02545,537,322 44 CITY OF SPOKANE VALLEY, WA 2019 Budget - Other Funds Detail Revenues by Type 20152016201720182019 Proposed BudgetBudget ActualActualActual 101 - Street Fund Utilities tax2,257,1842,069,3091,982,3911,900,0001,700,000 Motor Vehicle Fuel (Gas) Tax1,935,6292,005,9092,032,1752,052,4002,092,300 Multimodal Transportation Revenue095,50998,994133,800132,200 Right-of-Way Maintenance Fee056,035136,11270,00070,000 Investment Interest3,2125,8867,8436,0006,000 Other Miscellaneous Revenues & Grants25,16771,679135,82610,00010,000 Nonrecurring Transfer in - #312 0000907,544 4,221,1924,304,3274,393,3404,172,2004,918,044 103 - Paths & Trails Fund Motor Vehicle Fuel (Gas) Tax8,1648,4608,5718,7008,800 Investment interest621703700400 8,2268,6308,9418,7009,200 104 - Hotel/Motel Tax - Tourism Facilities Fund Hotel/Motel Tax182,236387,333400,509377,000390,000 Transfers in - #10500250,000250,0000 Investment interest1111,5526,8541,5007,000 182,347388,885657,363628,500397,000 105 - Hotel/Motel Tax Fund Hotel/Motel Tax581,237596,373615,981580,000600,000 Investment Interest4841,2743,5491,0002,000 581,721597,647619,529581,000602,000 106 - Solid Waste Solid Waste Administrative fee125,000125,000172,550225,000225,000 Solid Waste Road Wear fee0001,000,0001,500,000 Grant Proceeds017,67759,38900 Investment Interest01841,33501,300 125,000142,861233,2741,225,0001,726,300 107 - PEG Fund Comcast PEG contribution81,80679,42776,47179,00076,000 Investment Interest07841,67600 Transfers in - #001 267,3330000 349,13980,21178,14779,00076,000 120 - CenterPlace Operating Reserve Fund Investment Interest00000 00000 121 - Service Level Stabilization Reserve Fund Investment Interest8,59021,63616,57500 8,59021,63616,57500 122 - Winter Weather Reserve Fund FEMA Grant Proceeds 038,8043,17000 Investment Interest8331,9613,7123,5005,000 Transfer in - #001015,043258,000490,0000 83355,808264,882493,5005,000 123 - Civic Facilities Replacement Fund Investment Interest1,323696000 1,323696000 204 - Debt Service - LTGO 03 Fund Facilities District Revenue373,800380,300379,750414,050432,150 Transfers in - #0010198,734397,350399,350401,250 Transfers in - #30182,15083,40079,42682,00082,475 Transfers in - #30282,15083,40079,42582,00082,475 538,100745,834935,951977,400998,350 45 CITY OF SPOKANE VALLEY, WA 2019 Budget - Other Funds Detail Revenues by Type 20152016201720182019 Proposed BudgetBudget ActualActualActual 301 - REET 1 Capital Projects Fund REET 1 - 1st Quarter Percent1,065,7891,176,9111,503,7871,500,0001,000,000 Investment Interest1,6537,60921,5997,50022,000 1,067,4421,184,5201,525,3861,507,5001,022,000 302 - REET 2 Capital Projects Fund REET 2 - 2nd Quarter Percent1,065,7891,176,9111,503,7871,500,0001,000,000 Investment Interest1,6628,18925,5948,00025,000 1,067,4511,185,1001,529,3811,508,0001,025,000 303 - Street Capital Projects Fund Grant Proceeds8,223,9594,951,0333,499,8887,981,1454,408,681 Developer Contributions363,981151,629124,48833,03235,700 Transfers in - #101123,9550000 Transfers in - #301 Capital Projects567,113579,636294,5581,048,852504,172 Transfers in - #302 Special Capital Projects 331,099164,15181,6131,099,434167,434 Transfers in - #312 Sullivan Rd W Bridge42,7302,022,865455,46500 Transfers in - #312 Euclid Ave - Flora to Barker026,3261,464,381415,8395,000 Transfers in - #312 8th & Carnahan Improvements011,687218,299425,00045,000 Transfers in - #312 Barker Corridor000148,488267,000 9,652,8377,907,3276,138,69311,151,7905,432,987 309 - Parks Capital Projects Fund Grant Proceeds1,560209,7841,657,5481,722,925572,308 Contributions and Donations00000 Investment Interest81372321500 Transfers in - #001115,575230,300160,000560,0001,320,000 Transfers in - #10309,300050,0000 Transfers in - #10568,00058,388000 Transfers in - #312524,81237,132277,437324,10014,788 710,760545,6272,095,2002,657,0251,907,096 310 - Civic Facilities Capital Projects Fund Investment Interest2,1135,1459,0295,9009,000 Transfers in - #001 Future C.H. bond pmt > $424.6k lease pmt67,60067,600000 Future C.H. o&m costs271,700276,600000 Transfers in - #31258,3240000 399,737349,3459,0295,9009,000 311 - Pavement Preservation Fund Grants835,2241,654,69889,2091,572,5001,820,000 Investment Interest3,3897,51920,53600 Transfers in - #001920,000943,800953,200962,700972,300 Transfers in - #101206,61867,34267,34267,3420 Transfers in - #1060001,000,0001,500,000 Transfers in - #123616,284559,804000 Transfers in - #301251,049365,286660,479685,329734,300 Transfers in - #302251,049365,286660,479685,329734,300 3,083,6133,963,7352,451,2454,973,2005,760,900 312 - Capital Reserve Fund Investment Interest016,02852,17016,00050,000 Transfers in - #001 1,783,5121,828,7233,003,9293,795,4290 Transfers in - #31300074,9600 1,783,5121,844,7513,056,0993,886,38950,000 313 - City Hall Construction Fund Investment Interest026,53618,89400 2016 LTGO Bond Issue Proceeds/Premium07,946,088000 Transfers in - #3125,162,7640000 5,162,7647,972,62418,89400 46 CITY OF SPOKANE VALLEY, WA 2019 Budget - Other Funds Detail Revenues by Type 20152016201720182019 Proposed BudgetBudget ActualActualActual 314 - Railroad Grade Separation Projects Fund Grant Proceeds0087,6101,664,9413,750,000 Investment Interest004,07200 Transfers in - #001 03,8931,200,00000 Transfers in - #301012,975111,941463,83650,000 Transfers in - #31200482,2164,8090 016,8681,885,8392,133,5863,800,000 402 - Stormwater Management Fund Stormwater Management Fee1,861,3681,898,2101,895,0331,870,0001,890,000 Grant Proceeds - Nonrecurring423,33261,403370,20765,000106,000 Investment Interest2,4557,69020,5647,50020,000 Transfers in - #403120,0000000 2,407,1551,967,3032,285,8041,942,5002,016,000 403 - Aquifer Protection Area Fund Spokane County533,593388,590452,110460,000460,000 Grant Proceeds1,036,603058,722445,955317,200 Investment Interest02,59010,238010,000 1,570,196391,180521,070905,955787,200 501 - Equipment Rental & Replacement Fund Interfund Vehicle Lease35,544106,000146,429141,929141,929 Transfers in - #001 (CenterPlace kitchen reserve)0036,60036,60036,600 Investment Interest1,4494,3959,6514,0009,500 36,993110,395192,680182,529188,029 502 - Risk Management Fund Transfers in - #001325,000325,000350,000370,000390,000 Investment Interest84231,10700 325,008325,423351,107370,000390,000 Total of "Other Fund" Revenues33,283,94034,110,73329,268,42839,389,67431,120,106 General Fund Revenues39,384,77142,983,04244,751,34543,048,02545,537,322 Total Revenues72,668,71177,093,77674,019,77382,437,69976,657,428 47 CITY OF SPOKANE VALLEY, WA 2019 Budget Expenditures by Fund and Department General Fund $ 545,903 Council City Manager948,835 City Attorney610,549 Public Safety25,977,304 Operations & Administrative Deputy City Manager267,044 Finance1,402,497 Human Resources297,421 City Hall Operations and Maintenance290,543 Community & Public Works Engineering1,816,141 Economic Development1,043,772 Building and Planning2,248,698 Parks & Recreation Administration 335,958 Maintenance893,500 Recreation253,622 Aquatics491,153 Senior Center101,215 CenterPlace949,414 General Government4,559,800 Total General Fund $ 43,033,369 Other Funds $ 4,918,044 101Street Fund 103Paths & Trails Fund0 104Hotel/Motel Tax - Tourism Facilities Fund0 105Hotel/Motel Tax Fund655,000 106Solid Waste1,726,300 107PEG Fund71,100 120CenterPlace Operating Reserve Fund0 121Service Level Stabilization Fund0 122Winter Weather Reserve Fund500,000 204LTGO Bond Debt Service Fund998,350 301REET 1 Capital Projects Fund1,370,947 302REET 2 Capital Projects Fund984,209 303Street Capital Projects Fund5,432,987 309Parks Capital Projects Fund1,812,095 310Civic Facilities Capital Projects Fund0 311Pavement Preservation7,288,200 312Capital Reserve Fund1,239,332 313City Hall Construction Fund0 314Railroad Grade Separation Projects4,700,000 402Stormwater Management Fund 2,297,332 403Aquifer Protection Area 832,600 501Equipment Rental & Replacement (ER&R) 20,000 502Risk Management Fund 390,000 Total Other Funds$ 35,236,496 Total All Funds$ 78,269,865 48 CITY OF SPOKANE VALLEY, WA 2019 Budget General Fund Department Changes from 2018 to 2019 Difference Between 201820192018 and 2019 AmendedIncrease (Decrease) BudgetBudget$% City Council Wages, Payroll Taxes & Benefits233,194208,417(24,777)(10.63%) Supplies4,9504,95000.00% Services & Charges311,943332,53620,5936.60% Total550,087545,903(4,184)(0.76%) City Manager Wages, Payroll Taxes & Benefits877,105871,845(5,260)(0.60%) Supplies4,3009,1004,800111.63% Services & Charges75,29567,890(7,405)(9.83%) Total956,700948,835(7,865)(0.82%) City Attorney Wages, Payroll Taxes & Benefits506,481521,74415,2633.01% Supplies1,9512,35140020.50% Services & Charges93,77586,454(7,321)(7.81%) Total602,207610,5498,3421.39% Public Safety Non-Departmental (Fines & Forfeits)579,750589,1509,4001.62% Wages/Payroll Taxes/Benefits3,00012,0009,000300.00% Supplies25,50025,7502500.98% Other Services and Charges296,715748,266451,551152.18% Intergovernmental Services24,559,28624,552,138(7,148)(0.03%) Total25,464,25125,927,304463,0531.82% Deputy City Manager Wages, Payroll Taxes & Benefits358,493220,619(137,874)(38.46%) Supplies2,0002,00000.00% Services & Charges90,39844,425(45,973)(50.86%) Total450,891267,044(183,847)(40.77%) Finance/IT Wages, Payroll Taxes & Benefits1,308,6141,367,92759,3134.53% Supplies6,4506,45000.00% Services & Charges24,91028,1203,21012.89% Total1,339,9741,402,49762,5234.67% Human Resources Wages, Payroll Taxes & Benefits254,577265,05810,4814.12% Supplies5801,13055094.83% Services & Charges25,25831,2335,97523.66% Total280,415297,42117,0066.06% City Hall Operations & Maintenance Wages, Payroll Taxes & Benefits100,94389,488(11,455)(11.35%) Supplies30,00030,5005001.67% Services & Charges175,328170,555(4,773)(2.72%) Total306,271290,543(15,728)(5.14%) Community & Public Works - Engineering Wages, Payroll Taxes & Benefits1,480,9051,602,572121,6678.22% Supplies27,75027,100(650)(2.34%) Services & Charges120,638186,46965,83154.57% Total1,629,2931,816,141186,84811.47% Community & Public Works - Economic Dev Wages, Payroll Taxes & Benefits679,852658,977(20,875)(3.07%) Supplies2,5003,00050020.00% Services & Charges288,518356,79568,27723.66% Total970,8701,018,77247,9024.93% (Continued to next page) 52 CITY OF SPOKANE VALLEY, WA 2019 Budget General Fund Department Changes from 2018 to 2019 Difference Between 201820192018 and 2019 AmendedIncrease (Decrease) BudgetBudget$% (Continued from previous page) Community & Public Works - Building & Planning Wages, Payroll Taxes & Benefits1,820,3591,893,74373,3844.03% Supplies44,20044,20000.00% Services & Charges325,228285,755(39,473)(12.14%) Intergovernmental Services20,00025,0005,00025.00% Total2,209,7872,248,69838,9111.76% Parks & Rec- Admin Wages, Payroll Taxes & Benefits254,133267,70313,5705.34% Supplies7,6004,750(2,850)(37.50%) Services & Charges39,57863,50523,92760.46% Total301,311335,95834,64711.50% Parks & Rec- Maintenance Wages, Payroll Taxes & Benefits0000.00% Supplies7,5004,000(3,500)(46.67%) Services & Charges856,475889,50033,0253.86% Total863,975893,50029,5253.42% Parks & Rec- Recreation Wages, Payroll Taxes & Benefits189,274160,667(28,607)(15.11%) Supplies7,7508,65090011.61% Services & Charges63,77884,30520,52732.19% Total260,802253,622(7,180)(2.75%) Parks & Rec- Aquatics Wages, Payroll Taxes & Benefits0000.00% Supplies3,3002,000(1,300)(39.39%) Services & Charges512,600489,153(23,447)(4.57%) Total515,900491,153(24,747)(4.80%) Parks & Rec- Senior Center Wages, Payroll Taxes & Benefits91,72994,7152,9863.26% Supplies1,6001,60000.00% Services & Charges4,9004,90000.00% Total98,229101,2152,9863.04% Parks & Rec- CenterPlace Wages, Payroll Taxes & Benefits503,499534,35530,8566.13% Supplies73,52470,774(2,750)(3.74%) Services & Charges333,673344,28510,6123.18% Total910,696949,41438,7184.25% General Government Wages, Payroll Taxes & Benefits0000.00% Supplies104,45086,350(18,100)(17.33%) Services & Charges754,660841,90087,24011.56% Intergovernmental Services332,500339,4006,9002.08% Capital outlays70,00065,000(5,000)(7.14%) Total1,261,6101,332,65071,0405.63% Transfers out - #204399,350401,2501,9000.48% Transfers out - #309 160,000160,00000.00% Transfers out - #311 Pavement Preservation962,700972,3009,6001.00% Transfers out - #50136,60036,60000.00% Transfers out - #502370,000390,00020,0005.41% Total recurring expenditures40,901,91941,691,369789,4501.93% (Continued to next page) 53 CITY OF SPOKANE VALLEY, WA 2019 Budget General Fund Department Changes from 2018 to 2019 Difference Between 201820192018 and 2019 AmendedIncrease (Decrease) BudgetBudget$% (Continued from previous page) Summary by Category Wages, Payroll Taxes & Benefits8,662,1588,769,830107,6721.24% Supplies355,905334,655(21,250)(5.97%) Services & Charges4,393,6705,056,046662,37615.08% Transfers out - #204399,350401,2501,9000.48% Transfers out - #309 160,000160,00000.00% Transfers out - #311962,700972,3009,6001.00% Transfers out - #50136,60036,60000.00% Transfers out - #502370,000390,00020,0005.41% Non-Departmental (fines & forfeits)579,750589,1509,4001.62% Intergovernmental Svc (public safety)24,559,28624,552,138(7,148)(0.03%) Intergovernmental Svc352,500364,40011,9003.38% Capital outlay70,00065,000(5,000)(7.14%) 40,901,91941,691,369789,4501.93% 54 Fund: 001General FundSpokane Valley Dept: 011Legislative Branch2019 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 2018 Continued to work with state and federal legislators towards obtaining financial assistance for the Barker Grade Separation Project and during 2018 reached the point of fully funding the project with the receipt of both a $6 million NHFP Grant and a $9 million TIGER grant. Selected a specific design alternative for the Barker Grade Separation Project and contracted with a consultant to begin the final design. Worked with Federal legislators and BNSF to determine the location and spacing of a second mainline track that impacts the Pines Grade Separation Project. Continued discussions focused on developing a sustainable plan to finance the City's Pavement Preservation Program including Street O&M Fund #101 and Pavement Preservation Fund #311. Adopted a 2019 Legislative Agenda. Pursued state financial assistance to address transportation concerns on the Barker Corridor and received a FMSIB grant in the amount of 20% or $1,680,000 of the projected $8.4 million cost to complete the section stretching from the Spokane River to SR-290. Accepted the final design for Appleway Trail Amenities between University and Pines. Adopted a balanced 2019 Budget and for the tenth consecutive year did so without taking the 1% increase in property taxes that is allowed by State Law. Goals for 2019 Work with state and federal legislators towards advancing the concepts outlined in the Bridging the Valley study including obtaining financial assistance for the Pines and Park Grade Separation Projects. Continue to pursue a plan to sustain the City's Pavement Preservation Program, to include sustained financing in Street O&M Fund #101 and Pavement Preservation Fund #311. Pursue state and federal financial assistance to address transportation concerns along the entire Barker Corridor. Continue with, and expand where possible economic development efforts including the retention and expansion of existing businesses and recruitment of new businesses. Continue to foster relationships with federal, state, county and local legislators. Pursue financing for Browns Park, Balfour Park and Appleway Trail amenities, and continue acquisition of park land. Update the Bike and Pedestrian Masterplan to include trail extensions from the Appleway Trail connections between the Appleway Trail, Balfour Park, Dishman Hills and the Centennial Trail to create a continuous loop for users. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.01.01.0 Mayor 6.06.06.06.06.0 Council 7.07.07.07.07.0 Total FTEs Budget Detail $206,705$204,931$219,902$233,194$208,417 Wages, Payroll Taxes & Benefits 2,9084,5351,9744,9504,950 Supplies 157,665166,826186,243311,943332,536 Services & Charges $367,278$376,292$408,119$550,087$545,903 Total Legislative Branch 55 Fund: 001General FundSpokane Valley Dept: 013Executive Branch2019 Budget 013 - City Manager Division 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 2018 Worked to support City Council's 2018 Goals as referenced in the Legislative Branch Budget. Worked with all City departments to update the 2019 Business Plan that is a guide to the development of the 2019 Budget which is accomplished by linking community priorities, financial projections and City Council goals. Prepared a 2019 Budget that maintains existing levels of service and provides modest program enhancements with an increase to General Fund recurring expenditures of just 1.90%. Worked with Council to prepared a 2019 Council Legislative Agenda that was discussed by Council on three separate occasions. This was followed by a separate meeting with our 4th District Legislative Delegation where Councilmembers and Legislators discussed areas of common interest, including our legislative agenda. Worked with State Legislators and Lobbyists on behalf of City interests. Continued to work with state and federal legislators towards obtaining financial assistance for the Barker Grade Separation Project and during 2018 reached the point of fully funding the project with the receipt of both a $6 million NHFP Grant and a $9 million TIGER grant. Worked with Council and Staff through a process that lead to the selection of a specific design alternative for the the Barker Grade Separation Project and lead to the development of a contract with a design consultant to begin the final design. Worked with Council, Federal legislators and BNSF to determine the location and spacing of a second mainline track that impacts the Pines Grade Separation Project. Continued discussions focused on developing a sustainable plan to finance the City's Pavement Preservation Program including Street O&M Fund #101 and Pavement Preservation Fund #311. Worked with Council and Staff to pursue state financial assistance to address transportation concerns on the Barker Corridor which lead to a FMSIB grant in the amount of 20% or $1,680,000 of the projected $8.4 million cost to complete the section stretching from the Spokane River to SR-290. Goals for 2019 Work to support City Council's 2019 Goals as referenced under the Legislative Branch Budget. Present Council with a balanced 2020 Budget. Work with Federal and State Legislators and Lobbyists on behalf of the interests of our City. Prepare the 2020 Legislative Agenda for Council consideration. Continue efforts to support economic development. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.01.01.0 City Manager 1.01.01.01.01.0 City Clerk 1.01.01.01.01.0 Deputy City Clerk 0.00.00.01.01.0 Administrative Analyst 0.00.00.01.01.0 Senior Administrative Analyst 1.01.01.01.00.5 Administrative Assistant (CC) 1.01.01.01.01.0 Executive Assistant (CM) 5.05.05.07.06.5 Total FTEs Budget Detail $604,629$785,184$580,529$877,105$871,845 Wages, Payroll Taxes & Benefits 2,1691,0143,5694,3004,300 Supplies 58,21030,80326,05974,84072,690 Services & Charges 3,160242,561000 Nonrecurring expenditures $668,168$1,059,562$610,157$956,245$948,835 Total City Manager Division 56 Fund: 001General FundSpokane Valley Dept: 0132019 Budget Executive Branch 015 - City Attorney Division Accomplishments for 2018 Continued to advise Community and Public Works regarding Painted Hills. Assist in acquiring parcels at 8th and Carnahan regarding offset intersection. Provide training to Council and staff on records, open meetings, and contracts. Assisted in negotiating, drafting, and executing amended solid waste collection services agreement to implement city fee for street preservation and maintenance purposes. Assisted in drafting, adopting, and implementing multiple small cell franchises and required small cell regulations. Assisted in drafting, adoption, and implementation of criminal chronic nuisance regulations. Hired new half-time attorney for Code Enforcement; significant progress on case backlog. Assisted in adoption of 2018 Comprehensive Plan amendments, including winning SEPA appeal challenge. Assisted with securing funding for Barker/Trent Grade Separation project. Assisted in drafting and accomplishing goals on the 2018 and 2019 Legislative Agendas. Assisted in updating park regulations in the City Code. Participated on management team for 2019-2021 labor agreement. Assisted in negotiations for agreement with Arts Council. Assisted on numerous economic development, land use, and public work issues. Goals for 2019 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 Public Works 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 2018 Legislative Agenda. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.01.01.0 City Attorney 1.01.01.01.01.0 Deputy City Attorney 0.00.00.00.50.5 Attorney 1.01.01.01.01.0 Administrative Assistant - Legal 3.03.03.03.53.5 Total FTEs Interns2.02.02.02.02.0 Budget Detail $374,113$407,008$411,988$506,481$521,744 Wages, Payroll Taxes & Benefits 7006231,0301,9512,351 Supplies 83,95480,36266,13093,77586,454 Services & Charges 0004,8090 Nonrecurring expenditures $458,767$487,993$479,148$607,016$610,549 Total City Attorney Division 57 Fund: 001General FundSpokane Valley Dept: 016Public Safety2019 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. Recurring Expenditures: Judicial System - The Spokane County District Court is contracted $2,256,026 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 Sheriff's Office is 21,316,548 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 1,395,580 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 350,000 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 Washington589,150 Grant expenditures20,000 Total Recurring Expenditures25,927,304 Nonrecurring Expenditures: Building repair and office furniture50,000 Total Recurring and Nonrecurring Expenditures $ 25,977,304 58 City of Spokane Valley 2019 Budget 016 - Public Safety 20152016201720182019 ActualActualActualBudgetBudget Recurring: Judicial System: District Court Contract$656,129$658,049$712,168$679,191$855,539 Public Defender Contract710,289703,665697,986785,359816,167 Prosecutor Contract479,782535,121464,250558,234463,968 Pretrial Services Contract131,041120,722107,807139,892120,352 Subtotal Judicial System1,977,2412,017,5571,982,2112,162,6762,256,026 Law Enforcement System: Sheriff Contract 18,205,13318,812,09617,792,17820,408,50420,444,845 Emergency Management Contract88,07087,71897,09499,629105,687 Wages, Payroll Taxes & Benefits2,6172,3762,8193,00012,000 Operating Supplies2,1443,0923,5093,5003,750 Repair & Maintenance. Supplies2,0079941,2022,0002,000 Professional Services1,3340000 Postage03,316000 Electricity/Gas18,95316,97618,28320,00020,000 Water1,2751,3661,6211,5001,750 Sewer9952,3072,1022,5002,200 Waste Disposal3,3723,4003,4423,5003,600 Law Enf. Bldg Maintenance Contract76,07661,68274,10868,50070,000 Taxes and Assessments715715715715716 Miscellaneous Services/Contingency5501320200,000650,000 False Alarm Charges & Fees48,41943,7923,13500 Bank Fees9,4188,7892,33300 Subtotal Law Enforcement System18,461,07819,048,75118,002,54120,813,34821,316,548 Jail System: Jail Contract1,213,5021,437,7841,331,7211,588,8411,395,580 Subtotal Jail System1,213,5021,437,7841,331,7211,588,8411,395,580 Other: Fines & Forfeitures State Remittance587,446561,476464,056579,750589,150 Animal Control Contract290,228291,209293,425299,636350,000 Non-Capital Equipment for JAG Grant4,5790020,00020,000 Settle & Adjust(753,653)(441,761)(1,087,807)00 Travel/Mileage/Meals740000 Drive Hammered - Get Nailed Grant8,7430000 Office Furniture & Equipment36,82367,187000 Distracted Driving3310000 Click it or Ticket7140000 TZT seatbelt patrols7240000 Subtotal Other176,009478,111(330,326)899,386959,150 Subtotal Recurring 21,827,83022,982,20320,986,14725,464,25125,927,304 Nonrecurring: Building Repair and Maintenance8,86349,0040010,000 Building & Structures224,2446,343000 Office Furniture & Equipment000040,000 Equipment Repair and Maintenance01,586000 LEC Labor Contract Settlement00323,44500 Full Facility Generator000100,0000 Capital outlay - CAD / RMS294,575177,126131,01800 Subtotal Nonrecurring527,682234,059454,463100,00050,000 Total Public Safety $ 22,355,512$ 23,216,262$ 21,440,610$ 25,564,251$ 25,977,304 59 Fund: 001General FundSpokane Valley Dept: 018Operation & Administrative Services2019 Budget The Operations & Administrative Services Department is composed of three divisions, the Deputy City Manager Division, the Finance Division, and the Human Resources Division. 013 - Deputy City Manager Division The Deputy City Manager (DCM) supervises the Community and Public Works 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 2018 Supported the 2018 Goals of the Legislative and Executive Branch. Worked with the City Manager and Staff to develop the 2019 Business Plan. Continued to improve staff communication and efficiency as part of the 2017 reorganization. Completed the recruitment processes for ongoing large industrial projects. Completed the designs for the Barker Grade Separation Projects. Goals for 2019 Support the 2019 Goals of the Legislative and Executive Branch. Continue work on acquiring funds and completing design for the Pines Road Grade Separation Project. Complete the implementation of the Pavement Management Program. Implement marketing strategies to attract and retain businesses and increase tourism. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.01.01.0 Deputy City Manager 1.01.01.00.00.0 Senior Administrative Analyst 1.01.01.00.00.0 Public Information Officer 1.01.01.00.00.0 Administrative Analyst 1.01.01.01.00.0 Office Assistant I 1.01.01.01.00.0 Office Assistant II 6.06.06.03.01.0 Total FTEs 1.01.01.00.00.0 Intern Budget Detail $612,576$518,914$637,606$358,493$220,619 Wages, Payroll Taxes & Benefits 1,0891,1371,2772,0002,000 Supplies 59,13489,14752,55590,39844,425 Services & Charges 00011,7000 Nonrecurring Software Purchase (Q-Alert) $672,799$609,198$691,438$462,591$267,044 Total Deputy City Manager Division 61 Fund: 001General FundSpokane Valley Dept: 018Operation & Administrative Services2019 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 2018 Implemented audit recommendations. Completed the 2017 CAFR by May 30, 2018, and received a "clean audit opinion". Maintained consistent levels of service in payroll, accounts payable, budget development, periodic financial report preparation, and information technology services. Continued with the ongoing process of refining the replacement program for IT resources. Goals for 2019 Maintain a consistent level of service in payroll, accounts payable, budget development, periodic and annual financial report preparation and information technology services. Work with Finance staff to cross-train position responsibilities and knowledge base where possible. The Finance department will implement further cross training procedures among department personnel to provide adequate coverage if or when unforeseeable circumstances arise. Provide adequate training opportunities to allow staff members to remain current with changes in pronouncements by the Governmental Accounting Standards Board (GASB), changes in the Eden financial management system, and changes in the electronic technology that allows all City employees to be more efficient and effective. Continue with the ongoing process of refining the replacement program for IT hardware resources including server hardware, network hardware, printers, and network-based appliances (firewalls, email backup, network switches, intrusion prevention hardware, etc.), desktop computers, and the phone system. This will continue to be the foundation for future budget developments and in large part dictate operational workload through the course of the next year. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.001.001.001.001.00 Finance Director 1.001.001.001.001.00 Accounting Manager 3.753.753.753.753.75 Accountant/Budget Analyst 2.002.002.002.002.00 Accounting Technician 2.002.003.003.003.00 IT Specialist 1.001.001.001.001.00 GIS/Database Administrator 1.001.000.000.000.00 Help Desk Technician 11.7511.7511.7511.7511.75 Total FTEs Budget Detail $1,028,666$1,149,070$1,209,761$1,308,614$1,367,927 Wages, Payroll Taxes & Benefits 2,8265,1473,5076,4506,450 Supplies 30,81719,18120,76424,91028,120 Services & Charges $1,062,309$1,173,398$1,234,032$1,339,974$1,402,497 Total Finance Division 62 Fund: 001General FundSpokane Valley Dept: 018Operation & Administrative Services2019 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 2018 Negotiate the successor bargaining agreement with the Labor Union representing City employees. Respond to internal as well as external forces to recruit and maintain a high performing workforce. Continue to support employee wellness through attainment of the AWC WellCity Award. Support City departments in changes due to City Hall relocation. Provide Employee Ethics training to City Staff. Goals for 2019 Implement changes to personnel systems in response to collective bargaining. Review employee policies for necessary changes. Continue to review City practices for possible improvements and/or savings. Continue to support employee wellness through attainment of the AWC WellCity Award. Provide City-wide Harassment training to staff. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.01.01.0 Human Resource Manager 1.01.01.01.01.0 Human Resource Technician 2.02.02.02.02.0 Total FTEs Budget Detail $216,518$226,290$235,127$254,577$265,058 Wages, Payroll Taxes & Benefits 4342341,4695801,130 Supplies 18,64815,71015,94725,25831,233 Services & Charges $235,600$242,234$252,543$280,415$297,421 Total Human Resources Division 63 Fund: 001General FundSpokane Valley Dept: 032Public Works2019 Budget The Public Works Department was consolidated into the new Community and Public Works Department during the City's reorganization effective April 1, 2017. Historical information will be included here for comparison purposes until the prior years' activity drops off of the below Budget Summary. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.000 Public Works Director 2.02.02.000 Administrative Assistant 0.01.01.000 Capital Improvements Program Manager 1.01.01.000 Engineer 2.02.02.000 Engineering Technician I 1.01.01.000 Engineering Technician II 0.50.50.500 Maint/Const Inspector 0.3750.3750.37500 Planning Grants Engineer 1.00.00.000 Senior Engineer 2.02.02.000 Senior Engineer - Proj Mgmt 10.87510.87510.87500 Total FTEs Budget Detail $684,666$660,386$658,439$0$0 Wages, Payroll Taxes & Benefits 11,1499,20912,46900 Supplies 42,913102,73388,17900 Services & Charges $738,728$772,328$759,087$0$0 Total Public Works 64 Fund: 001General FundSpokane Valley Dept: 033City Hall Operations and Maintenance2019 Budget The Community and Public Works Division provides management and oversight of the City Hall Operations and Maintenance Department. This department is responsible for the overall operations and maintenance of the new City Hall facility, the construction of which broke ground inJune of 2016 and was completed in the Fall of 2017. The buildingis 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 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 0.00.01.01.01.0 Maintenance Worker - Facilities 0.00.01.01.01.0 Total FTEs Budget Detail $0$0$0$100,943$89,488 Wages, Payroll Taxes & Benefits 003,28930,00030,500 Supplies 0055,159175,328170,555 Services & Charges 0036,50900 Nonrecurring expenditures $0$0$94,957$306,271$290,543 Total Administrative Division 65 Fund: 001General FundSpokane Valley Dept: 040Community & Public Works2019 Budget The Community and Public Works Department is a new department as a result of the City's reorganization effective April 1, 2017. This Department is a consolidation of the previous Public Works and Community and Economic Development Departments. It is comprised of three divisions: the Engineering Division, the Economic Development Division, and the Building and Planning Division. 041 - Engineering Division The Engineering Division combines Development Engineering from the previous Community & Economic Development Department with the engineering service provided by the previous Public Works Department. The Engineering Division includes the following functions: Capital Improvement Program (CIP) plans, designs, and constructs new facilities and maintains, preserves, and reconstructs existing facilities owned by the City of Spokane Valley. Development Engineering (DE) ensures that land actions and commercial building permits comply with the adopted codes for private infrastructure development through plan review and construction inspection. Traffic Management and Operations provides traffic engineering for safe and efficient multi-faceted transportation systems throughout the City (included in the Street Fund #101). Utilities oversees the City's surface and Stormwater Utility, manages the City's contracts for solid waste collection and disposal, and coordinates other utility issues on behalf of the City as assigned (included in the Stormwater Management Fund #402). Street Maintenance provides responsive maintenance and repairs for 461 center line miles of City streets. The City of Spokane Valley operates ten City-owned snow plows which are responsible for the clearing of the priority 1 and 2 roads along with selected hillsides (included in the Street Fund #101). Accomplishments for 2018 Implemented approved capital projects. Administered and manage state and federal funds received for capital projects. Assisted with the preparation of grant applications for capital projects. Continued work on the planning and alternatives evaluations for the Pines Road Grade Separation Project. Received full funding for the Barker Road Grade Separation Project. Selected preferred alternative and began design for the Barker Road Grade Separation Project. Continued work on permit process and customer service improvement. Continued to coordinate regional transportation issues with SRTC, adjoining municipalities, and WSDOT. Implemented enhanced workflow procedures for following state and federal funding guidelines. Goals for 2019 Implement approved capital projects. Continue preliminary engineering, environmental review, and right-of-way acquisition for the Barker Road Grade Separation Project. Continue work on acquiring funds and completing design for the Pines Road Grade Separation Project. Administer and manage state and federal funds received for capital projects. Assist in the preparation of grant applications for capital projects. Continue to coordinate regional transportation issues with SRTC, WSDOT, and other agencies. Maintain engineering and/or plan review times of less than two weeks. (continued on next page) 66 Fund: 001General FundSpokane Valley Dept: 040Community & Public Works2019 Budget (continued from prior page) Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 0.00.00.01.01.0 City Engineer 0.00.00.01.01.0 Engineering Manager 0.00.00.02.02.0 Administrative Assistant 0.00.00.00.00.45 Assistant Engineer 0.00.00.01.00.5 Engineer 0.00.00.01.01.5 Engineering Tech I * 0.00.00.00.50.75 Engineering Tech II * 0.00.00.00.00.375 Planning Grants Engineer * 0.00.00.02.02.0 Main/Construction Inspector 0.00.00.01.01.0 Senior Dev Engineer 0.00.00.01.51.7 Senior Engineer-Proj Mgmt. * 0.00.00.01.01.0 Water Resource Sr. Engineer 0.00.00.012.013.275 Total FTEs Budget Detail $0$0$0$1,480,905$1,602,572 Wages, Payroll Taxes & Benefits 00027,75027,100 Supplies 000120,638186,469 Services & Charges $0$0$0$1,629,293$1,816,141 Total Engineering Division 50% of these positions are budgeted to the Engineering Division in the General Fund with the balance budgeted as a part of * Capital Projects Funds. Planning Grants Engineer is budgeted 37.5% here in the General Fund, 37.5% in the Street Fund #101, and 25% in the Stormwater Fund #402 67 Fund: 001General FundSpokane Valley Dept: 040Community & Public Works2019 Budget 042 - Economic Development Division The Economic Development Division oversees the Comprehensive Plan, the Six-Year Transportation Improvement Plan (TIP), Community Development Block Grants and Public Relations. The Division works to build relationships with businesses, the community, and economic development partners to pursue economic development strategies ensuring long-term fiscal strength of the City. Accomplishments for 2018 Implemented the retail recruitment strategy. Developed a comprehensive prioritized Pavement Management Program. Pursued infrastructure improvements to foster economic development. Built and implemented strategies to promote business growth. Continued to implement the strategic marketing plan. Strengthened relationships with our economic development partners. Found grants to support economic development initiatives. Identified additional CDBG program opportunities. Developed tools and programs to support small business retention and expansion. Participated in regional economic, transportation, and planning committees. Developed a long range capital improvement program that integrates transportation, water, stormwater, and other facility plans. Found opportunities to implement the tourism strategy. Partnered with and promoted events such as Valleyfest, the Bike Swap, Crave NW, and Cycle Celebration. Found partnership opportunities with schools and workforce development agencies. Continued to use strategic initiatives to recruit, expand, and retain businesses. Goals for 2019 Implement the retail recruitment strategy. Continue to evaluate and implement strategies in the Comprehensive Plan. Pursue infrastructure improvements to foster economic development. Develop and implement strategies to promote business growth, attraction, and retention. Implement marketing strategies to attract and retain businesses and increase tourism. Collaborate with economic development partners and related service providers. Seek grants to support economic development initiatives. Use CDBG funds to support economic vitality in low and moderate income areas. Continue existing efforts and implement new methods and technologies to expand communications. Participate in regional economic, transportation, and planning committees. Develop and coordinate the transportation improvement program. Assist in the evaluation of transportation and traffic impacts relating to development. Seek opportunities to implement the tourism strategy. Partner and promote events such as Valleyfest, Oktoberfest, Crave NW, and Cycle Celebration. Seek partnership opportunities with schools and workforce development agencies. Evaluate multimodal planning efforts focusing on pedestrian, bicycle and transit facilities. Budget Summary 20152016201720182018 ActualActualActualBudgetBudget Personnel - FTE Equivalents 0.00.00.01.01.0 Economic Development Manager 0.00.00.02.02.0 Economic Development Specialist 0.00.00.00.3750.0 Planning Grants Engineer 0.00.00.01.01.0 Public Information Officer 0.00.00.01.01.0 Senior Transportation Planner 0.00.00.01.01.0 Office Assistant I 0.00.00.06.3756.0 Total FTEs 0.00.00.01.01.0 Intern Budget Detail $ 0$ 0$ 0$ 679,852$ 658,977 Wages, Payroll Taxes & Benefits 0002,5003,000 Supplies 000288,518356,795 Services & Charges 00050,00025,000 Nonrecurring - Retail Recruiter $ 0$ 0$ 0$ 1,020,870$ 1,043,772 Total Engineering Division 68 Fund: 001Spokane Valley General Fund Dept: 040Community & Public Works2019 Budget 043 - Building and Planning Division The Building and Planning Division is responsible for implementing and enforcing the State Building Code as required by state law. The purpose of the International Codes, as adopted by the State of Washington and City of Spokane Valley, is to promote the health, safety, and welfare of the occupants or users of the building and structures and the general public by requiring minimum performance standard for structural strength, exit systems, stability sanitation, light, ventilation, energy conservation, and fire safety to ensure the City's comply with various codes. The Planning program's current primary responsibilities include processing revisions to the City's Municipal Code, reviewing land use applications to ensure compliance with adopted development regulations, with the State Environmental Policy Act (SEPA)(RCW 43.21C), and with the state subdivision law (RWC 58.17). Accomplishments for 2018 Worked on permit processes and customer service improvement plan to enhance customer experience at the Permit Center. Coordinate on central reporting function in SMARTGov System. Expanded on-line permit system. Incorporate data from SVFD records to facilitate re-use of existing vacant buildings and tenant spaces. Increased efforts to establish and maintain relationships with regional jurisdictions and outside review agencies. Provided cross training of staff to facilitate coverage during times of lean staffing. Coordinated with regional partners on the Hazard Mitigation Plan. Assisted in the finalization of Legislative Municipal Code updates. Processed 2018 Comprehensive Plan amendments. Goals for 2019 Implement electronic submittals and plan review. Continue to expand online permitting Begin process for scanning commercial address files Implement Code Enforcement educational awareness program to inform the public. Continue to provide cross training of staff to facilitate coverage during times of lean staffing. Maintain relationships with regional jurisdictions and outside review agencies. Process 2019 Comprehensive Plan amendments. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 0.00.00.01.01.0 Administrative Assistant 0.00.00.01.01.0 Assistant Building Official 0.00.00.03.03.0 Building Inspector II 0.00.00.01.01.0 Building Official 0.00.00.01.01.0 Code Enforcement Officer 0.00.00.01.01.0 Development Service Coordinator 0.00.00.01.01.0 Engineering Tech 0.00.00.02.03.0 Office Assistant I 0.00.00.00.01.0 Office Assistant II 0.00.00.02.01.0 Permit Facilitator 0.00.00.00.01.0 Permit Specialist/Facilitator 0.00.00.03.03.0 Planner 0.00.00.01.01.0 Plans Examiner 0.00.00.01.01.0 Senior Planner 0.00.00.01.00.0 Senior Plans Examiner 0.00.00.019.020.0 Total FTEs Budget Detail $ 0$ 0$ 0$ 1,820,359$ 1,893,743 Wages, Payroll Taxes & Benefits 0 0 0 44,200 44,200 Supplies 0 0 0 325,228 285,755 Services & Charges 0 0 0 20,000 25,000 Intergovernmental Payments $ 0$ 0$ 0$ 2,209,787$ 2,248,698 Total Building Division 69 Fund: 001General FundSpokane Valley Dept: 058Community & Economic Development2019 Budget The Community and Economic Development Department was consolidated into the new Community and Public Works Department during the City's reorganization effective April 1, 2017. Historical information will be included here for comparison purposes until the prior years' activity drops off of the below Budget Summary. 050 - Administration Division Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.000 Community Development Director 1.01.01.000 Administrative Assistant 2.02.02.000 Total FTEs Budget Detail $237,232$247,129$77,974$0$0 Wages, Payroll Taxes & Benefits 2,5533,2072,46300 Supplies 10,78511,3819,48400 Services & Charges 206,704335,204000 Nonrecurring expenditures $457,274$596,921$89,921$0$0 Total Administrative Division 051 - Economic Development Division Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 0.50.650.6500 Engineer 1.01.01.000 Senior Planner - CD 1.01.01.000 E.D. Project Specialist 2.52.652.6500 Total FTEs Budget Detail $234,966$291,881$439,185$0$0 Wages, Payroll Taxes & Benefits 69651,51700 Supplies 3,930191,615231,25300 Services & Charges 00144,20000 Nonrecurring expenditures $238,902$484,461$816,155$0$0 Total Economic Development Division 70 Fund: 001General FundSpokane Valley Dept: 058Community & Economic Development2019 Budget 055/056 - Development Services Division Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.000 Development Services Manager 2.02.02.000 Engineer 1.01.01.000 Assistant Engineer 1.01.01.000 Senior Planner 2.02.02.000 Planner 1.01.01.000 Maint/Construction Inspector 1.01.00.000 Code Enforcement Officer 1.01.01.000 ROW Inspector 1.01.01.000 Office Assistant I 0.00.00.000 Senior Engineer 0.00.00.000 Engineering Technician 11.011.010.000 Total FTEs Budget Detail $1,115,465$1,158,836$843,860$0$0 Wages, Payroll Taxes & Benefits 10,05810,65710,37400 Supplies 246,964251,364227,11200 Services & Charges 021,66239,54600 Intergovernmental Payments $1,372,487$1,442,519$1,120,892$0$0 Total Development Services Division 057 - Building Division Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.000 Building Official 3.03.03.000 Building Inspector II 2.02.01.000 Planner 1.01.01.000 Development Service Coordinator 1.01.01.000 Engineering Tech 2.02.02.000 Office Assistant I 2.02.02.000 Permit Facilitator 1.01.01.000 Plans Examiner 1.01.01.000 Senior Plans Examiner 0.00.01.000 Code Enforcement Officer 0.00.00.000 Assistant Planner 14.014.014.000 Total FTEs Budget Detail $1,823,159$1,900,828$1,096,598$0$0 Wages, Payroll Taxes & Benefits 13,47925,89410,41300 Supplies 253,964287,34175,91700 Services & Charges $2,090,602$2,214,063$1,182,928$0$0 Total Building Division 71 Fund: 001General FundSpokane Valley Dept: 076Parks & Recreation2019 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 2018 Completed the design phase of the Appleway Trail University to Pines Park Amenities. Completed construction the Sullivan to Corbin section of the Appleway Trail. Completed the design and construction of new donated sculpture from Valley Arts Council. Pursued land acquisitions for priority facilities such as disc golf, skateboard park, etc. Installed new park signs at Sullivan, Park Road, Castle and Balfour Parks. Completed the updating of park regulations/rules. Goals for 2019 Construct new restroom at Browns Park. Complete the Appleway Trail University to Pines Amenities project. Add a swing set to Edgecliff Park. Repair/replace poured in place surfacing at Discovery Playground. Complete one land acquisition. Begin the design of the Evergreen to Sullivan section of the Appleway Trail. Continue to implement the Browns Park Master Plan. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.01.01.0 Parks & Recreation Director 1.01.01.01.01.0 Administrative Assistant 2.02.02.02.02.0 Total FTEs Budget Detail $230,394$232,889$242,763$254,133$267,703 Wages, Payroll Taxes & Benefits 2,6883,2582,4687,6004,750 Supplies 28,43322,80342,95339,57863,505 Services & Charges 78,65983,951364,34600 Nonrecurring expenditures $340,174$342,901$652,530$301,311$335,958 Total Parks Administration Division 72 Fund: 001General FundSpokane Valley Dept: 076Parks & Recreation2019 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 20152016201720182019 ActualActualActualBudgetBudget Budget Detail $3,444$13,809$1,625$7,500$4,000 Supplies 830,640876,115845,108856,475889,500 Services & Charges $834,084$889,924$846,733$863,975$893,500 Total Maintenance Division 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 2018 Researched new recreation programs that serve the needs of the Community. Continued to provide quality recreation programs for the Spokane Valley Community. Partnered with Library District to offer weekly library resources as the Summer Park Program. Offered affordable community events for families, teens, and the Community. Goals for 2019 Provide a new summer camp for teens entering 6th -9th grades. Provide a new walking program for community members. Continue to provide quality recreation programs for the Spokane Valley Community. Offer affordable community events for families, teens, and the Community. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.01.01.0 Recreation Coordinator Budget Detail $164,092$157,707$95,062$189,274$160,667 Wages, Payroll Taxes & Benefits 7,7915,7733,9767,7508,650 Supplies 62,05272,05254,31263,77884,305 Services & Charges $233,935$235,532$153,350$260,802$253,622 Total Recreation Division 73 Fund: 001General FundSpokane Valley Dept: 076Parks & Recreation2019 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 2018 Maintained full summer swimming program. Improved the summer pool schedule for better public understanding. Maintained Paws in the Pool Program. Expanded the water exercise program. Replaced circulating pump at Park Road Pool. Worked with Make A Splash to offer weekly free swim sessions at all pools. Goals for 2019 Maintain full summer swimming program. Maintain Paws in the Pool Program. Continue to partner with Make A Splash to offer free swim sessions at all pools. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Budget Detail $351$1,517$42$3,300$2,000 Supplies 487,564460,474474,626512,600489,153 Services & Charges $487,915$461,991$474,668$515,900$491,153 Total Aquatics Division 74 Fund: 001General FundSpokane Valley Dept: 076Parks & Recreation2019 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 2018 Obtained and categorized a referral guide for front desk volunteers of services and agencies. Continued to work with the Board on providing board training classes. Worked closely with the Parks & Recreation Director on programs being offered to seniors. Conducted Resource and Referral Fair with 56 vendors and over 250 participants. Goals for 2019 Continue to enhance the resource and referral information at the reception desk to be better equipped to handle calls. Continue to work with the Board on providing board training classes. Work closely with the Parks & Recreation Director on programs being offered to seniors. Develop transition plan for retiring Senior Center Specialist. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.01.01.0 Senior Center Specialist 1.01.01.01.01.0 Total FTEs Budget Detail $82,625$85,521$88,210$91,729$94,715 Wages, Payroll Taxes & Benefits 4541,1705921,6001,600 Supplies 2,2981,6451,4734,9004,900 Services & Charges $85,377$88,336$90,275$98,229$101,215 Total Senior Center Division 75 Fund: 001General FundSpokane Valley Dept: 076Parks & Recreation2019 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 2018 Replaced flooring in the Great Room and Small Dining Room at CenterPlace. Completed Phase 1 of improvement for an outdoor event venue space on west lawn. Completed the addition of new video monitors in the Great Room. Hosted Crave NW, Summer Nights and Oktoberfest events on new outdoor space. Goals for 2019 Add a Farmer's Market event to CenterPlace Seek funding opportunities to finish construction of the CenterPlace West Lawn Master Plan. Update Business and Marketing plan for CenterPlace. Develop a checklist of permits required for community events held on outdoor space to assist groups. Develop plan to attract more community events to outdoor venue space. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.01.01.0 Customer Relations/Facilities Coordinator 1.01.01.01.01.0 Administrative Assistant 1.01.01.01.01.0 Office Assistant I 2.02.02.02.02.0 Maintenance Worker 5.05.05.05.05.0 Total FTEs Budget Detail $442,655$467,950$491,576$503,499$534,355 Wages, Payroll Taxes & Benefits 53,91959,41881,16973,52470,774 Supplies 306,138309,359297,318333,673344,285 Services & Charges 021,4201,00053,0000 Nonrecurring Expenditures $802,712$858,147$871,063$963,696$949,414 Total CenterPlace Division 76 Fund: 001 General FundSpokane Valley Dept: 090General Government2019 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; 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 20152016201720182019 ActualActualActualBudgetBudget Supplies Employee Recognition-Operating Supplies$1,490$599$1,674$1,500$1,700 Office & Operating Supplies1874155200 Small Tools & Minor Equipment7,4435,8253,0306,9006,900 Computer Hardware - Non Capital38,27754,77346,05066,05042,250 Computer Software - Non Capital5,09320,85911,24920,30025,800 Office & Operating Supplies16,7539,1968,8769,7009,700 69,24391,29371,431104,45086,350 Other Services & Charges Professional Services - Misc Studies22,90799,50981,667200,000245,000 Accounting & Auditing77,47482,77583,68490,00095,000 Uncollectible Accounts Expense2,0950000 Employee Recognition & Safety Program29991701,5001,000 Postage10,4288202,5002,500 Telephone Service8,1687,07711,2059,00012,300 Cell Phones9491,6801,6491,7005,700 Internet Service11,4588,1147,6968,5009,000 Taxes and Assessments0091201,000 City Wide Records Management5,8700010,00010,000 Sewer005230500 City Hall Rent426,964437,864000 Facility Repairs & Maintenance8,8971,5954,0035,0000 Equip Repair & Maint-Hardware Support40,45034,61135,95946,40036,800 IT Support20,85512,65918,71628,30029,200 Software Licenses & Maintenance65,35382,96788,52588,00091,900 Merchant Charges (Bankcard Fees)231287186500500 Network Infrastructure Access017,6624,7325,0006,000 Equipment Rental1,9214,2614,2644,2604,300 Interfund Vehicle Lease05001,000500500 Printing & Binding5365890600600 Miscellaneous Services5,2565,3784,9195,4005,400 General Operating Leases: Computer45,34746,48057,55660,00065,000 Economic Development-Site Selector8,5429,0419,37310,00010,000 Outside Agencies- Social Svc & Econ. Dev.0091,924150,000182,000 Professional Services - Economic Dev.70,33060,216000 Contracted economic dev.16,56043,000000 City Economic Development153,3500000 Professional Services - Social Services90,97443,49655,91100 Alcohol Treatment: Liquor Excise Tax5,0128,7109,07709,000 Alcohol Treatment: Liquor Profits16,13116,08115,90025,00016,000 $1,116,357$1,025,551$589,383$752,160$839,200 (continued to next page) 77 Fund: 001 General FundSpokane Valley Dept: 090General Government2019 Budget (continued from previous page) Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Intergovernmental Services Election Costs$16,347$0$69,973$90,000$90,000 Voter Registration97,09185,89386,932100,000100,000 Taxes and assessments5,61789207,50012,100 Spokane County Air Pollution Authority115,915116,432130,928135,000137,300 234,970203,217287,834332,500339,400 Capital Outlays Computer Hardware - Capital023,8027,38770,00065,000 023,8027,38770,00065,000 Debt Service: Principal Interest and Other Debt Service Costs425624600600600 Interfund Payments for Service Transfer out - #204 0198,734397,350399,350401,250 (City Hall bond payment) Transfer out - #309115,575260,122160,000160,000160,000 (park capital proj) Transfer out - #309 00029,7250 (Appleway Trail Amenities) Transfer out - #31067,60072,500000 (bond pmt > $434.6 lease) Transfer out - #310 271,700271,700000 (city hall o&m costs) Transfer out - #311 920,000943,800953,200962,700972,300 (pvmnt preservation) Transfer out - #501 0036,60036,60036,600 (CenterPlace kitchen reserve) Transfer out - #502325,000325,000350,000370,000390,000 (risk management) 1,699,8752,071,8561,897,1501,958,3751,960,150 Miscellaneous SCRAPS pass through1,0991,2091,1451,3001,300 Leasehold Excise Tax Pass-Through0628778600800 1,0991,8371,9231,9002,100 Subtotal Recurring Expenditures $3,121,969$3,418,180$2,855,707$3,219,985$3,292,800 Nonrecurring/Nonrecurring Capital City Hall lease payment 00438,56500 (2017 final year) IT capital replacement21,145026,38600 Computer Hardware - Capital65,61076,119111,451110,000102,000 Computer Software - Capital18,93110,87005,0005,000 City Hall Remodel12,8420000 City Hall Generator000200,0000 Transfer out - #122 015,043258,000490,0000 (Replenish Winter Weather Reserv Transfer out - #309000400,0001,160,000 (Park Capital) Transfer out - #312 1,783,5121,828,7233,003,9293,795,4290 (capital reserve fund) Transfer out - #314 001,200,00000 (RR Grade Separation) 1,902,0401,930,7555,038,3315,000,4291,267,000 Total Governmental Division $5,024,009$5,348,935$7,894,039$8,220,414$4,559,800 78 Fund: 101Street FundSpokane Valley 2019 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 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 2018 Continued to develop and update the pavement management plan. Renewed contracts with private contractors for street maintenance services. Continued the evaluation of the traffic management system to keep in-house or integrate into SRTMC. Developed a preliminary maintenance program for traffic signal components to address aging infrastructure. Continued evaluations of traffic signal timings for improved traffic through the Argonne, Pines, and Sullivan Corridors. Continued on-going roadway maintenance and repairs utilizing in-house and contracted services. Goals for 2019 Finalize and begin the implementation of the Pavement Management Program. Continue on-going roadway and bridge maintenance and repairs. Finalize the 6-year Bridge Maintenance Program and begin its implementation. Implement identified signal timing plans for the Argonne, Pines, and Sullivan Corridors. Work to evaluate and implement an asset management system for all transportation facilities. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.01.01.0 Senior Engineer - Traffic 1.01.01.01.01.0 Public Works Superintendent 2.42.352.352.352.35* Maintenance/Construction Inspector 0.00.000.000.001.50 Construction inspector 0.00.000.000.001.00 Traffic Engineer 1.01.01.01.00.25 Assistant Engineer 0.00.00.00.00.25 Engineering Tech II 0.3750.3750.3750.3750.375 Planning Grants Engineer 5.7255.7255.7255.7257.725 Total FTEs 2.02.02.02.02.0 Interns & Temp/Seasonal (continued to next page) * 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 79 Fund: 101Street FundSpokane Valley 2019 Budget (continued from previous page) Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Revenues $2,257,184$2,069,309$1,982,391$1,900,000$1,700,000 Utility Tax 1,935,6292,005,8702,032,1752,052,4002,092,300 Motor Vehicle Fuel Tax 095,50998,994133,800132,200 Multimodal Transportation Revenue 056,035136,11270,00070,000 Right-of-Way Maintenance Fee 3,2125,8867,8436,0006,000 Investment Interest 012,0661,34100 Grant Proceeds 25,16722649,41110,00010,000 Miscellaneous 059,42685,07400 Non recurring insurance proceeds 4,221,1924,304,3274,393,3414,172,2004,010,500 Total revenues Nonrecurring Revenues 0000907,544 Transfers in - #312 0000907,544 Total Nonrecurring Revenues Expenditures 738,144728,627811,264771,0191,044,547 Wages, Payroll Taxes & Benefits 116,65987,53398,747112,500113,300 Supplies 2,041,7672,122,9312,125,0912,141,7512,308,818 Services & Charges 465,231409,635637,358504,800497,200 Snow Operation 707,315836,101748,291851,000855,000 Intergovernmental Payments 39,70039,70039,70039,7000 Transfers out - #001 206,61867,34267,34267,3420 Transfers out - #311 (pvmnt pres) 12,07731,00023,25021,25021,250 Interfund Vehicle Lease - #501 (non-plow) 040,00077,92977,92977,929 Interfund Vehicle Lease - #501 (plow replace) 155,8490000 Capital construction and equipment Nonrecurring Expenditures 0015,57915,0000 Battery backups for intersections 059,695000 Traffic Signal Cabinet Replacement 04,871000 Maintenance facility storage unit 01,465000 Transportation Mgmt Center 4,483,3604,428,9004,644,5514,602,2914,918,044 Total Nonrecurring expenditures (262,168)(124,573)(251,210)(430,091)0 Revenues over (under) expenditures 1,705,2451,443,0771,318,5041,067,294637,203 Beginning fund balance $1,443,077$1,318,504$1,067,294$637,203$637,203 Ending fund balance 80 Fund: 103Paths & Trails FundSpokane Valley 2019 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 2019 the Municipal Research and Services Center estimates the distribution back to cities will be $21.72 per person. Based upon a City of Spokane Valley population of95,810 (per the Washington State Office of Financial Management on April 1, 2018) we anticipate the City will collect $2,101,100 in 2019. 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 2019 revenue estimate this computes to $8,800. The balance or $2,092,300 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 and is budgeted to transfer $50,000 in 2018 to the Parks Capital Projects Fund #309 to be applied towards the Appleway Trail projects. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Revenues $8,226$8,460$8,571$8,700$8,800 Motor Vehicle Fuel (Gas) Tax 01703690400 Investment Interest 8,2268,6308,9408,7009,200 Total revenues Expenditures 00000 Capital Outlay 09,300050,0000 Transfers out- #309 09,300050,0000 Total expenditures 8,226(670)8,940(41,300)9,200 Revenues over (under) expenditures 29,82838,05437,38446,3245,024 Beginning fund balance $38,054$37,384$46,324$5,024$14,224 Ending fund balance 81 Fund: 104Hotel/Motel Tax - Tourism Facilities FundSpokane Valley 2019 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 20152016201720182019 ActualActualActualBudgetBudget Revenues $182,236$387,333$400,509$377,000$390,000 Hotel/Motel Tax 1111,5526,8541,5007,000 Investment Interest 00250,000250,0000 Transfers in - #105 182,347388,885657,363628,500397,000 Total revenues Expenditures 00000 Capital Outlay 00000 Total expenditures 182,347388,885657,363628,500397,000 Revenues over (under) expenditures 0182,347571,2321,228,5951,857,095 Beginning fund balance $182,347$571,232$1,228,595$1,857,095$2,254,095 Ending fund balance Fund: 105Hotel/Motel Tax FundSpokane Valley 2019 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 20152016201720182019 ActualActualActualBudgetBudget Revenues $581,237$596,373$615,981$580,000$600,000 Hotel/Motel Tax 4841,2753,5491,0002,000 Investment Interest 581,721597,648619,529581,000602,000 Total revenues Expenditures 484,968498,172351,674322,000625,000 Tourism Promotion 30,00030,00015,77830,00030,000 Transfers out- #001 00250,000250,0000 Transfers out- #104 68,00058,387000 Transfers out- #109 582,968586,559617,452602,000655,000 Total expenditures (1,247)11,0892,077(21,000)(53,000) Revenues over (under) expenditures 209,948208,701219,790221,867200,867 Beginning fund balance $208,701$219,790$221,867$200,867$147,867 Ending fund balance 82 Fund: 106Solid Waste FundSpokane Valley 2019 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. In June 2017, the City entered a contract with Waste Management for the collection of garbage, recyclables, and compostables for the period of April 1, 2018 through March 31, 2028 with the option of two additional two-year extensions. Terms of the contract require Waste Management to pay the City a one-time fee of $47,500 upon contract execution to reimburse the City for the costs of procuring the contract. Waste Management is also required to pay the City an monthly administrative fee of 12.5% of gross receipts, which is estimated to be approximately $1,600,000 in 2019. 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 $40,422 in the years 2015 through 2019. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Revenues $125,000$125,000$172,550$225,000$225,000 Administrative fees 017,67759,3891,000,0001,500,000 Solid Waste Road Wear Fee 01841,33401,300 Investment interest 125,000142,861233,2731,225,0001,726,300 Total revenues Expenditures 49,04066,18881,288184,575185,878 Education & Contract Administration 40,42540,42540,42540,42540,422 Transfers out - #001 0001,000,0001,500,000 Transfers out - #311 89,465106,613121,7131,225,0001,726,300 Total expenditures 35,53536,248111,56000 Revenues over (under) expenditures 7,33942,87479,122190,682190,682 Beginning fund balance $42,874$79,122$190,682$190,682$190,682 Ending fund balance 83 Fund: 107PEG FundSpokane Valley 2019 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 20152016201720182019 ActualActualActualBudgetBudget Revenues $81,806$79,427$76,471$79,000$76,000 Comcast PEG contribution 07841,67600 Investment interest 267,3330000 Transfer in from fund #001 349,13980,21178,14779,00076,000 Total revenues Expenditures 0117,000040,20040,100 PEG Reimbursement - CMTV 05,435208,71400 New City Hall Council Chambers 47,95718,61754,93731,00031,000 Capital Outlay 47,957141,052263,65171,20071,100 Total expenditures 301,182(60,841)(185,504)7,8004,900 Revenues over (under) expenditures 0301,182240,34154,83762,637 Beginning fund balance $301,182$240,341$54,837$62,637$67,537 Ending fund balance Fund: 120CenterPlace Operating Reserve FundSpokane Valley 2019 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 20152016201720182019 ActualActualActualBudgetBudget Revenues $0$0$0$0$0 Investment Interest 00000 Transfers in 00000 Total revenues Expenditures 00000 Operations 00000 Total expenditures 00000 Revenues over (under) expenditures 300,000300,000300,000300,000300,000 Beginning fund balance $300,000$300,000$300,000$300,000$300,000 Ending fund balance 84 Fund: 121Service Level Stabilization Reserve FundSpokane Valley 2019 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 $3.3 million. During 2018, this reserve balance was capped at approximately $5.5 million and any additional interest earned was accumulated in the General Fund. This represents a Fiscal Policy of the City that is also stated in the City Manager's 2019 Budget Message located near the front of this budget document. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Revenues $ 8,590$ 21,636$ 16,575$ 0$ 0 Investment Interest 00000 Transfers in 8,59021,63616,57500 Total revenues Expenditures 00000 Operations 00000 Total expenditures 8,59021,63616,57500 Revenues over (under) expenditures 5,453,1995,461,7895,483,4255,500,0005,500,000 Beginning fund balance $ 5,461,789$ 5,483,425$ 5,500,000$ 5,500,000$ 5,500,000 Ending fund balance Fund: 122Winter Weather Reserve FundSpokane Valley 2019 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 2018 and 2019 even though we recognize there exists only $500,000 to address this issue if it should arise. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Revenues $ 833$ 1,961$ 3,712$ 3,500$ 5,000 Investment Interest 015,043258,000490,0000 Transfers in - #001 038,8043,17000 FEMA Grant Proceeds 83355,808264,882493,5005,000 Total revenues Expenditures 60,381257,445500,000500,000500,000 Street Maintenance Expenditures 60,381257,445500,000500,000500,000 Total expenditures (59,548)(201,637)(235,118)(6,500)(495,000) Revenues over (under) expenditures 504,020444,472242,8357,717501,217 Beginning fund balance $ 444,472$ 242,835$ 7,717$ 1,217$ 6,217 Ending fund balance 85 Fund: 204Limited Tax General Obligation (LTGO) Bond - Debt Service FundSpokane Valley 2019 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, 2019, the outstanding balance on this portion of the bond issue will be $4,645,000. $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, 2019, the outstanding balance on this portion of the bond issue will be $730,000. 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, 2019, the outstanding balance on the bond issue will be $6,895,000. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Revenues $373,800$380,300$379,750$414,050$432,150 Spokane Public Facilities District 0198,734397,350399,350401,250 Transfers in - #001 82,15083,40079,42682,00082,475 Transfers in - #301 82,15083,40079,42582,00082,475 Transfers in - #302 538,100745,834935,951977,400998,350 Total revenues Expenditures 374,083380,300379,750414,050432,150 Debt Service Payment - CenterPlace 164,017166,800162,900164,000164,950 Debt Service Payment - Roads 0198,734397,350399,350401,250 Debt Service Payments - City Hall 538,100745,834940,000977,400998,350 Total expenditures 00(4,049)00 Revenues over (under) expenditures 4,0494,0494,04900 Beginning fund balance $4,049$4,049$000 Ending fund balance 86 Fund: 301REET 1 Capital Projects FundSpokane Valley 2019 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 20152016201720182019 ActualActualActualBudgetBudget Revenues $1,065,789$1,176,911$1,503,787$1,500,000$1,000,000 REET 1 - Taxes 1,6547,60921,5987,50022,000 Investment Interest 1,067,4431,184,5201,525,3851,507,5001,022,000 Total revenues Expenditures 82,15083,40079,42682,00082,475 Transfers out - #204 567,113579,636294,5581,048,852504,172 Transfers out - #303 251,049365,286660,479685,329734,300 Transfers out - #311 (pavement preservation) 03,893111,94138,00050,000 Transfers out - #314 (Barker Grade Separation) 900,3121,032,2151,146,4041,854,1811,370,947 Total expenditures 167,131152,305378,981(346,681)(348,947) Revenues over (under) expenditures 1,426,9571,594,0881,746,3932,125,3741,778,693 Beginning fund balance $1,594,088$1,746,393$2,125,374$1,778,693$1,429,746 Ending fund balance 87 Fund: 302REET 2 Capital Projects FundSpokane Valley 2019 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 20152016201720182019 ActualActualActualBudgetBudget Revenues $1,065,789$1,176,911$1,503,787$1,500,000$1,000,000 REET 2 - Taxes 1,6618,18925,5948,00025,000 Investment Interest 1,067,4501,185,1001,529,3811,508,0001,025,000 Total revenues Expenditures 82,15083,40079,42582,00082,475 Transfers out - #204 331,099164,15181,6131,099,434167,434 Transfers out - #303 251,049365,286660,479685,329734,300 Transfers out - #311 (pavement preservation) 664,298612,837821,5171,866,763984,209 403,152572,263707,864(358,763)40,791 Revenues over (under) expenditures 1,325,1451,728,2972,300,5603,008,4242,649,661 Beginning fund balance $1,728,297$2,300,560$3,008,424$2,649,661$2,690,452 Ending fund balance 88 Fund: 303Street Capital Projects FundSpokane Valley 2019 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 20152016201720182019 ActualActualActualBudgetBudget Revenues $8,223,959$4,951,033$3,561,989$7,981,145$4,408,681 Grant Proceeds 363,894151,60062,24433,03235,700 Developer Contribution 8729000 Miscellaneous 123,9550000 Transfers in - #101 567,113579,636294,7011,048,852504,172 Transfers in - #301 331,099164,15181,6131,099,434167,434 Transfers in - #302 42,7302,022,865455,46500 Transfers in - #312 Sullivan Rd W Bridge 026,3261,464,381415,8395,000 Transfers in - #312 Euclid Ave - Flora to Barker 011,687218,299425,00045,000 Transfers in - #312 8th & Carnahan Improvement 00000 Transfers in - #312 Indiana bus stops & crosswal 000148,488267,000 Transfers in - #312 Barker Corridor 9,652,8377,907,3276,138,69311,151,7905,432,987 Total revenues Expenditures 0601,248,4744,355000 Argonne Rd Corridor Upgrade SRTC 06-31 12337,95672,909250,1193,762,1285,000 Mission Ave -Flora to Barker 1419,84862,9391,512,19325,0000 Sullivan & Euclid PCC 14217,77129,0303,7022,341,79912,500 Broadway @ Argonne/Mullan 1498,177105000 In-House Design - Sidewalk Infill 1556,482,2445,538,823722,38400 Sullivan Rd W Bridge Replacement 156712,689738000 Mansfield Ave. Connection 1592,8420000 University Rd / I-90 Overpass Study 16647,322115,82060,574495,0005,000 Pines Rd (SR27) & Grace Ave. Intersect study 167315,03289,1583,05500 City wide safety improvements 17719,3320000 Sullivan Road Corridor Traffic Study 1911900000 Vista Rd BNSF Xing Safety 1963960000 8th Avenue - McKinnon to Fancher 20137,88447,7567,006437,0005,000 ITS Infill Project Phase 1 20513,1320035,70035,700 Sprague/Barker Intersection Improvement 206304,933235000 Sprague/Long Sidewalk Project 2073,345102,684000 Indiana & Evergreen Transit Access Improv. 100,6490(17,811)00 211 Sullivan Trent to Wellesley 22015,5550000 Houk-Sinto-Maxwell St Preservation 7,229436,1436751,0000 221 McDonald Rd Diet (16th to Mission) 2220038,35542,6450 Citywide Reflective Signal Backplates 2,0000000 223 Pines Rd Underpass @ BNSF & Trent (continued to next page) 89 Fund: 303Street Capital Projects FundSpokane Valley 2019 Budget (continued from previous page) 20152016201720182018 ActualActualActualBudgetBudget Expenditures, continued 224$133,069$0$0$0$0 Mullan Rd Street Preservation Project 2290434,801000 32nd Ave Preservation Project 233056,085000 Broadway Ave Street Pres-Sullivan to Moore 2346,204393,046000 Seth Woodard Sidewalk Improvements 2380410,454(21)00 Mirabeau Pkwy & Pines (SR-27) Traffic Signal 239063,282389,8985,0000 Bowdish Sidewalk - 8th to 12th 247011,687218,299425,00045,000 8th & Carnahan Intersection Improvements 249040015,112268,0001,167,287 Sullivan/Wellesley Intersection 250010,523181,0532,0000 9th Ave. Sidewalk 251026,3262,601,774419,3595,000 Euclid Ave. - Flora to Barker 2580032,157407,8705,000 32nd Ave Sidewalk - SR27 to Evergreen 2590096,56785,000730,000 N. Sullivan Corridor ITS Projects (PE start 201 26300143124,7190 Citywide Signal Backplates 2640011,606458,9580 8th Ave Sidewalk 2650020,72738,000382,000 Wellesley Sidewalk Project 26700060,250420,000 Mission Ave Sidewalk 273000500,000500,000 Barker/I-90 Interchange 27500088,000132,000 Barker Rd Widening - River to Euclid 27600054,00081,000 Barker Rd Widening - Euclid to Garland 27700036,00054,000 Barker Rd Widening - Garland to Trent 27800020,000354,500 Wilbur Rd Sidewalk - Boone to Broadway 27900020,000294,000 Knox Ave Sidewalk - Hutchinson to Sargent 2810000200,000 Highland Estates Connector 123,9550000 Argonne Rd. Preservation 000999,3621,000,000 Contingency 9,650,2287,907,2996,147,56711,151,7905,432,987 Total expenditures 2,60828(8,874)00 Revenues over (under) expenditures 72,92975,53875,56666,69266,692 Beginning fund balance $75,538$75,566$66,692$66,692$66,692 Ending fund balance 90 Fund: 309Park Capital Projects FundSpokane Valley 2019 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 20152016201720182019 ActualActualActualBudgetBudget Revenues $1,560$150,230$1,657,548$1,693,200$572,308 Grant Proceeds 021,875000 FEMA Grant Proceeds - Windstorm 115,575260,122160,000589,7251,320,000 Transfers in - #001 (General Fund) 09,300050,0000 Transfers in - #103 (Paths & Trails) 68,00058,388000 Transfers in - #105 524,81237,132277,437324,10014,788 Transfers in - #312 (Capital Reserve) 81372221500 Investment Interest 07,857000 Insurance Proceeds 710,760545,6262,095,2002,657,0251,907,096 Total revenues Expenditures 524,56925,325000 Appleway Trail 176 (Univ. to Pines) 241,4800000 2035 sand volleyball courts at Browns Park 680000 208Old Mission Trailhead 104,2570000 217Edgecliff picnic shelter 108,4360000 225Pocket dog park - phase 1 1,803137,0631,816,92800 Appleway Trail 227 (Pines to Evergreen) 47,0660000 231Old Mission Trailhead Landscaping 36,3400000 232Shade Structure: Discovery Park 041,123129,9862,086,3005,000 Appleway Trail 237 (Sullivan to Corbin) 081,064000 241Pocket dog park - phase 2 0121,95911,22200 242Browns Park Splashpad 058,388000 243Browns Park championship volleyball 07,898000 244Park signs (3) 059,553000 Terrace View playground equip 245 (Windstorm) 00122,57700 261Edgecliff Park Splashpad 000164,00072,500 Appleway Trail 268 (Evergreen to Sullivan) 000200,0000 270CenterPlace outdoor venue - Phase 1 00023,2000 271Browns Park lighting and pathway 00024,0000 Park signs 274 (Sullivan, Park Rd, Balfour) 00029,725509,595 Appleway Trail Amenities 280 (Univ - Pines) 000176,8000 282Browns Park volleyball courts 0000160,000 Browns Park restroom 00001,000,000 Browns Park improvements 000025,000 Swing sets 000040,000 Resurface Discovery Park 0007,7000 Electrical Upgrade Mirabeau Point Park 00028,0000 Heart of the Valley Sculpture Placement 1,064,019532,3732,080,7122,739,7251,812,095 Total expenditures (353,259)13,25314,488(82,700)95,001 Revenues over (under) expenditures 451,72098,461111,714126,20243,502 Beginning fund balance $98,461$111,714$126,202$43,502$138,503 Ending fund balance 91 Fund: 310Civic Facility Capital Projects FundSpokane Valley 2019 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 ended after 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 were transferred out to the General Fund in 2016 and 2017 in order to cover lease payments for the prior City Hall location in years in which the City had both a lease payment and a bond payment for the new City Hall building. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Revenues $2,113$5,144$9,029$5,900$9,000 Investment Interest Transfers in - #001: 67,6000000 -Future C.H. bond pmt > $434.6k lease pmt 271,700344,200000 -Future C.H. o&m costs 58,3240000 Transfers in - #312 399,737349,3449,0295,9009,000 Total revenues Expenditures 0198,734498,50000 Transfers out - #001: 00000 Professional services 1,136,7380000 Capital Outlay - City Hall 1,136,738198,734498,50000 Total expenditures (737,001)150,610(489,471)5,9009,000 Revenues over (under) expenditures 1,919,5501,182,5491,333,159843,688849,588 Beginning fund balance $1,182,549$1,333,159$843,688$849,588$858,588 Ending fund balance 92 Fund: 311Pavement Preservation FundSpokane Valley 2019 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. Since inception, the pavement preservation program has been funded through a series of transfers from other City funds as well as grant proceeds. Below is a table summarizing the funding sources for Fund #311, including actuals for 2011 through 2017 and budgeted amounts for 2018 and 2019: Fund 001101106123301/302310 StreetCivic Fac.Civic Fac. GeneralStreet O&MWear FeeReplace.REET 1&2CapitalGrantsTotal Actual 2011584,6810000500,00001,084,681 20122,045,2030000002,045,203 2013855,857282,0000616,284300,000035,9452,090,086 2014888,823282,0000616,284368,94402,042,6654,198,716 2015920,000206,6180616,284502,0980835,2243,080,224 2016943,80067,3420559,808730,57201,654,6983,956,220 2017953,20067,342001,320,958089,2082,430,708 Budget 2018962,70067,3421,000,00001,370,65801,572,5004,973,200 2019972,30001,500,00001,468,60001,820,0005,760,900 9,126,564972,6442,500,0002,408,6606,061,830500,0008,050,24029,619,938 Beginning in 2013, the City committed to finance pavement preservation at a level equivalent to 6% of General Fund recurring expenditures, which has continued from that year through the 2019 budget development. 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. The fund balance of Fund #123 was exhausted with the 2016 transfer of $559,808 as a consequence of following this funding strategy. 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 2019 funding level of $2,440,900 is sustainable through 2023 assuming a General Fund contribution of $972,300 and a collective contribution of $1,468,600 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. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Revenues $920,000$943,800$953,200$962,700$972,300 Transfers in - #001 206,61867,34267,34267,3420 Transfers in - #101 0001,000,0001,500,000 Transfers in - #106 616,284559,804000 Transfers in - #123 251,049365,286660,479685,329734,300 Transfers in - #301 251,049365,286660,479685,329734,300 Transfers in - #302 3,3897,51920,53500 Investment Interest 835,2241,654,69889,2091,572,5001,820,000 Grant Proceeds 00000 Miscellaneous 3,083,6133,963,7352,451,2444,973,2005,760,900 Total revenues Expenditures 2,358,9763,615,3892,042,3054,410,5407,238,200 Pavement preservation 41,4320050,00050,000 Pre-project GeoTech 2,400,4083,615,3892,042,3054,460,5407,288,200 Total expenditures 683,205348,346408,939512,660(1,527,300) Revenues over (under) expenditures 1,922,0132,605,2182,953,5643,362,5033,875,163 Beginning fund balance $2,605,218$2,953,564$3,362,503$3,875,163$2,347,863 Ending fund balance 93 Fund: 312Capital Reserve FundSpokane Valley 2019 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 which was followed by additional transfers from the General Fund from 2014 through 2018 in the amount of $10,059,671. Projects approved by City Council from this fund include in part: $1,583,361 for the City's share of the $15.5 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. $1,800,000 to remove and reconstruct Euclid Ave. from Flora to Barker after County installation of sewer. $500,000 towards a Pines Road / BNSF Grade Separation project right-of-way acquisition. Commitments to future projects include: $1,421,321 towards a Barker Road / BNSF Grade Separation project. $1,485,417 towards a Pines Road / BNSF Grade Separation project. $1,485,417 towards Barker Road corridor improvements. $1,485,417 towards Balfour Park development. $460,715 towards improvements at the Spokane County Library's proposed Balfour site. Future projects are yet to be determined. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Revenues $1,783,512$1,828,723$3,003,929$3,795,429$0 Transfers in - #001 00074,9600 Transfers in - #313 016,02752,17016,00050,000 Investment Interest 1,783,5121,844,7503,056,0993,886,38950,000 Total revenues Expenditures 0041,3765,3830 City Hall Sculpture Siting 0000907,544 Transfers out - #101 42,7302,060,878455,46500 Transfers out - #303 - Sullivan Rd W Bridge 001,464,381415,8395,000 Transfers out - #303 - Euclid Ave - Flora to Barker 00218,300425,00045,000 Transfers out - #303 - 8th & Carnahan Intersection 000148,488267,000 Transfers out - #303 - Barker Road Corridor 524,8120000 Transfers out - #309 - Appleway Trail - Univ to Pin 037,132277,43700 Transfers out - #309 - Appleway Trail - Pines-Eve 000301,9005,000 Transfers out - #309 - Appleway Trail -Corbin 00022,2009,788 Transfers out - #309 - Appleway Trail -Evergreen-S 58,3240000 Transfers out - #310 - City Hall 5,162,7640000 Transfers out - #313 - City Hall 012,975482,2164,8090 Transfers out - #314 - Pines Grade Separation 5,788,6302,110,9852,939,1751,323,6191,239,332 Total expenditures (4,005,118)(266,235)116,9242,562,770(1,189,332) Revenues over (under) expenditures 8,581,7154,576,5974,310,3624,427,2866,990,056 Beginning fund balance $4,576,597$4,310,362$4,427,286$6,990,056$5,800,724 Ending fund balance 94 Fund: 313City Hall Construction FundSpokane Valley 2019 Budget This fund was created to account for the architectural and construction costs for a City Hall building. The building was completed in Fall of 2017. Funding for the construction came 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 20152016201720182019 ActualActualActualBudgetBudget Revenues $5,162,764$0$0$0$0 Transfers in - #312 07,946,088000 2016 LTGO Bond Proceeds 026,53618,89400 Investment Interest Total revenues5,162,7647,972,62418,89400 Expenditures 373,7186,517,0946,065,87900 Capital Outlay - City Hall 00074,9600 Transfers out - #312 096,515000 2016 LTGO Bond Issue Costs 373,7186,613,6096,065,87974,9600 Total expenditures 4,789,0461,359,015(6,046,985)(74,960)0 Revenues over (under) expenditures 04,789,0466,148,061101,07626,116 Beginning fund balance $4,789,046$6,148,061$101,076$26,116$26,116 Ending fund balance 95 Fund: 314Railroad Grade Separation Projects FundSpokane Valley 2019 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 2018 and 2019 are related to design costs for the Pines Road Underpass project and the Barker Road Overpass project. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Revenues $0$0$87,611$770,000$3,750,000 Grant Proceeds 004,07200 Investment Interest 001,200,000050,000 Transfers in - #001 03,893111,94138,0000 Transfers in - #301 012,975482,2164,8090 Transfers in - #312 016,8681,885,840812,8093,800,000 Total revenues Expenditures 03,893199,552900,0003,800,000 Barker BNSF Grade Separation 012,975617,48480,000900,000 Pines Rd Underpass 016,868817,036980,0004,700,000 Total expenditures 001,068,804(167,191)(900,000) Revenues over (under) expenditures 0001,068,803901,612 Beginning fund balance $0$0$1,068,804$901,612$1,612 Ending fund balance 96 Fund: 402Stormwater Management FundSpokane Valley 2019 Budget The purpose of the Stormwater Management Fund is to account for the funds related to the cleaning, maintenance, and improvement of the City's storm drainage system. The revenue for this fund originates from a stormwater fee collected by Spokane County on behalf of the City. The annual fee is $21 for each single family unit, and for other property types a fee of $21 per each 3,160 square feet of parcel impervious surfacing is collected. Accomplishments for 2018 Lead and participated with eastern Washington jurisdictions to meet requirements to perform effectiveness studies. Managed State grants for storm drain cleaning and effectiveness studies. Participated in City-led capital improvement projects with stormwater improvements. Coordinated the update of the stormwater capital improvements program with the Economic Development Division. Started the multi-year work on Glenrose and Central Basins Floodplain Delineation Project (FEMA Mapping). Continued design work to disconnect piping to creeks, streams, and drainages. Continued decreasing backlog of stormwater small-works and maintenance projects. Started field-testing GIS-driven maintenance management program for the stormwater inspection program. Goals for 2019 Begin the evaluation efforts for the Glenrose and Central Floodplain mapping for FEMA. Work to evaluate and implement an asset management system for all stormwater facilities. Continue collaboration efforts with local, State, and Federal stormwater regulatory bodies. Continue the inventorying and mapping of all City stormwater facilities. Continue on-going stormwater maintenance and repairs utilizing in-house and contracted services. Coordinate stormwater system improvements, integrating with other capital projects for efficiency. Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Personnel - FTE Equivalents 1.01.01.01.01.0 Engineer 1.01.01.01.01.0 Engineering Technician II 1.01.01.01.00.5 Assistant Engineer 1.21.151.151.151.15 Maintenance/Construction Inspector 0.250.250.250.250.25 Planning Grants Engineer 4.404.404.404.403.90 2.02.03.02.02.0 Interns (continued to next page) 97 Fund: 402Stormwater Management FundSpokane Valley 2019 Budget (continued from previous page) Budget Summary 20152016201720182019 Recurring Activity ActualActualActualBudgetBudget Revenues $1,861,368$1,898,210$1,895,033$1,870,000$1,890,000 Stormwater Management fees 2,4557,69020,5647,50020,000 Investment Interest 543,33261,40325,00000 Miscellaneous & Grants Proceeds 2,407,1551,967,3031,940,5971,877,5001,910,000 Expenditures 396,799465,790465,102557,157494,273 Wages, Payroll Taxes & Benefits 30,22212,28611,06414,80010,700 Supplies 1,080,0381,106,429997,8931,141,2101,182,109 Services & Charges 30,17631,76432,66135,00037,500 Intergovernmental Services 13,40013,40013,40013,4000 Transfers out - #001 0012,75012,75012,750 Interfund Vehicle Lease - #501 1,550,6351,629,6691,532,8701,774,3171,737,332 Recurring revenues over (under) 856,520337,634407,727103,183172,668 Recurring Expenditures Nonrecurring Activity Revenues 00338,38465,000106,000 Grant Proceeds 006,82300 FEMA Grant Proceeds - Windstorm 00345,20765,000106,000 Expenditures 700,52194,451331,953450,000450,000 Capital - Various Projects 192,638110,055196,48015,00010,000 Effectiveness study 00060,000100,000 Watershed studies 893,159204,506528,433525,000560,000 Nonrecurring revenues over (under) (893,159)(204,506)(183,226)(460,000)(454,000) Nonrecurring Expenditures Excess (Deficit) of Total Revenues (36,639)133,128224,501(356,817)(281,332) Over (Under) Total Expenditures 1,933,5641,639,9751,761,4161,973,4241,616,607 Beginning working capital $1,896,925$1,773,103$1,985,917$1,616,607$1,335,275 Ending working capital 98 Fund: 403Aquifer Protection Area FundSpokane Valley 2019 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 20152016201720182019 ActualActualActualBudgetBudget Revenues $533,593$391,180$521,070$460,000$460,000 Spokane County 1,036,60300445,955317,200 Grant Proceeds 000010,000 Investment Interest 1,570,196391,180521,070905,955787,200 Total Revenues Expenditures 530,309362,11558,722648,780832,600 Capital - Various projects 120,0000000 Transfers out - #402 650,309362,11558,722648,780832,600 Total Expenditures 919,88729,065462,348257,175(45,400) Revenues over (under) expenditures 1,773921,660950,7251,413,0731,670,248 Beginning working capital $921,660$950,725$1,413,073$1,670,248$1,624,848 Ending working capital 99 Fund: 501Equipment Rental & Replacement FundSpokane Valley 2019 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. Beginning in 2017 a CenterPlace Kitchen Reserve was 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 YearYR AcquiredAge at Retirement Replacement YrNotes 20619962009262022 20719972009282025 20419952009332028 20319952009362031 Existing Fleet 20519962009382034 (9) Snow Plows 20819972009402037 20919982011422040 21120002012432043 21020102011362046 21220162016332049Truck 206 becomes a backup 21320192019332052Truck 207 becomes a backup 21420222022332055Truck 204 becomes a backup / 206 is retired 21520252025332058Truck 203 becomes a backup / 207 is retired 21620282028332061Truck 205 becomes a backup / 204 is retired 21720312031332064Truck 208 becomes a backup / 203 is retired 21820342034332067Truck 209 becomes a backup / 205 is retired 21920372037332070Truck 211 becomes a backup / 208 is retired 22020402040332073Truck 210 becomes a backup / 209 is retired 22120432043332076Truck 212 becomes a backup / 211 is retired (continued to next page) 100 Fund: 501Equipment Rental & Replacement FundSpokane Valley 2019 Budget (continued from previous page) Budget Summary 20152016201720182019 ActualActualActualBudgetBudget Revenues $19,300$24,000$32,500$30,000$30,000 Vehicle rentals - #001 12,07731,00023,25021,25021,250 Vehicle rentals - #101 040,00077,92977,92977,929 Vehicle rentals - #101 (plow replace.) 4,16711,00012,75012,75012,750 Vehicle rentals - #402 0036,60036,60036,600 Transfers in - #001 (CenterPlace kitchen reserve) 1,4494,3949,6514,0009,500 Investment Interest 36,993110,394192,680182,529188,029 Total Revenues Expenditures 0046,03920,00020,000 Vehicle maintenance equipment 0134,761110,30900 Snow plow replacement 23,79087,679000 Vehicle Replacement 0077,00000 Transfer out - #001 (networking equipment) 23,790222,440233,34820,00020,000 Total Expenditures 13,203(112,046)(40,668)162,529168,029 Revenues over (under) expenditures 1,235,7941,248,9971,136,9511,096,2831,258,812 Beginning working capital $1,248,997$1,136,951$1,096,283$1,258,812$1,426,841 Ending working capital Fund: 502Risk Management FundSpokane Valley 2019 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 20152016201720182019 ActualActualActualBudgetBudget Revenues $325,000$325,000$350,000$370,000$390,000 Transfers in - #001 84221,10700 Investment Interest Total Revenues325,008325,422351,107370,000390,000 Expenditures 284,112277,298311,467370,000390,000 Auto & Property insurance 14,7228,82029,06600 Unemployment Claims 00000 Miscellaneous 298,834286,118340,533370,000390,000 Total Expenditures 26,17439,30410,57400 Revenues over (under) expenditures 168,209194,383233,687244,261244,261 Beginning working capital $194,383$233,687$244,261$244,261$244,261 Ending working capital 101 2018 Work Force Comparison The 30 Washington Communities with a Population of 30,000 to 100,000 CITYPOPULATIONFULL-TIMEPART-TIME Auburn78,9604361 Bothell 44,3703226 Bremerton40,63030713 Burien50,680735 Des Moines30,8601257 Edmonds41,2602155 Federal Way96,3503158 Issaquah36,03023711 Kennewick80,2803607 Kirkland86,08071816 Lacey48,7002621 Lake Stevens31,740903 Lakewood59,2802025 Longview37,5103095 Lynnwood*36,9503428 Marysville65,9002698 Mount Vernon34,36021050 Olympia52,16059116 Pasco71,6803560 Pullman33,28020334 Puyallup40,5002609 Redmond62,11062418 Richland54,15047523 Sammamish*62,2401067 Shoreline55,06016511 Spokane Valley95,810892 University Place32,610507 Walla Walla33,84027212 Wenatchee34,0701605 Yakima93,90075720 AVERAGE29711 Source: Association of Washington Cities Survey: 2018 Participant Data - Cities and Towns *2018 data not reported. Numbers from 2017. 104 Appendix A EMPLOYEE POSITION CLASSIFICATION MONTHLY SALARY SCHEDULE Effective January 1, 2019 Position TitleGrade2019 Range City ManagerUnclassified Deputy City Manager21-22 9,066.16 - 15,576.80 City Attorney21 9,066.16 - 14,019.24 Finance Director21 9,066.16 - 14,019.24 Parks and Recreation Director20 8,159.44 - 12,618.24 City Engineer19 7,343.36 - 11,356.54 Deputy City Attorney19 7,343.36 - 11,356.54 Human Resources Manager19 7,343.36 - 11,356.54 Planning Manager18 6,609.87 - 10,220.38 Building Official18 6,609.87 - 10,220.38 Engineering Manager18 6,609.87 - 10,220.38 Economic Development Manager18 6,609.87 - 10,220.38 Senior Engineer 17 5,948.55 - 9,197.96 Accounting Manager17 5,948.55 - 9,197.96 Assistant Building Official17 5,948.55 - 9,197.96 Public Works Superintendent17 5,948.55 - 9,197.96 Attorney16 5,353.16 - 8,277.64 City Clerk16 5,353.16 - 8,277.64 Engineer 16 5,353.16 - 8,277.64 Senior Administrative Analyst16 5,353.16 - 8,277.64 Senior Planner16 5,353.16 - 8,277.64 Development Services Coordinator16 5,353.16 - 8,277.64 GIS/Database Administrator16 5,353.16 - 8,277.64 Accountant/Budget Analyst16 5,353.16 - 8,277.64 Associate Planner15 4,818.50 - 7,450.38 Assistant Engineer15 4,818.50 - 7,450.38 IT Specialist15 4,818.50 - 7,450.38 Engineering Technician II15 4,818.50 - 7,450.38 Economic Development Project Specialist15 4,818.50 - 7,450.38 Senior Plans Examiner15 4,818.50 - 7,450.38 Public Information Officer 15 4,818.50 - 7,450.38 Human Resource Analyst 14 4,336.92 - 6,705.86 Administrative Analyst14 4,336.92 - 6,705.86 CenterPlace Coordinator14 4,336.92 - 6,705.86 Planner14 4,336.92 - 6,705.86 Building Inspector II14 4,336.92 - 6,705.86 Plans Examiner14 4,336.92 - 6,705.86 Engineering Technician I14 4,336.92 - 6,705.86 Senior Permit Specialist14 4,336.92 - 6,705.86 Code Enforcement Officer14 4,336.92 - 6,705.86 Deputy City Clerk14 4,336.92 - 6,705.86 Maintenance/Construction Inspector 13-14 3,902.91 - 6,705.86 Recreation Coordinator13-14 3,902.91 - 6,705.86 Customer Relations/Facilities Coordinator13 3,902.91 - 6,035.04 Building Inspector I13 3,902.91 - 6,035.04 Executive Assistant13 3,902.91 - 6,035.04 Planning Technician13 3,902.91 - 6,035.04 Senior Center Specialist12-13 3,513.90 - 6,035.04 Human Resources Technician12-13 3,513.90 - 6,035.04 Permit Facilitator12 3,513.90 - 5,431.40 Help Desk Technician12 3,513.90 - 5,431.40 Accounting Technician12 3,513.90 - 5,431.40 Administrative Assistant12 3,513.90 - 5,431.40 Permit Specialist 11-12 3,161.54 - 5,431.40 Maintenance Worker11-12 3,161.54 - 5,431.40 Office Assistant II10-11 2,845.20 - 4,888.50 Custodian10 2,845.20 - 4,398.62 Office Assistant I9-10 2,561.00 - 4,398.62 Note: Slight rounding differences may exist between the figures reflected on this page and the actual payroll rates computed by the Eden Payroll System. 105 CITY OF SPOKANE VALLEY, WA Glossary of Budget Terms Accrual Basis Capital Improvement –A basis of accounting in – Expenditures 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 received government’s physical plant; sometimes or spent. referred to as infrastructure. AppropriationCapital Outlay – A legal authorization –Fixed assets that have granted by the City Council to make general value of $5,000 or more and have expenditures and to incur obligations for a useful economic lifetime of more than a specific purpose.one year. Assessed Valuation Capital Project –The valuation set –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 Capital Projects Fund adopted budget, to be filled during the –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 Contingency date). The most common types of bonds – 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 forrendered 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 Debt Service period. –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 Department Council and the public with a general –The basic unit of service summary of the most important aspects of responsibility, encompassing a broad the budget, changes from the current and mandate of related service previous years, and the views and responsibilities. recommendations of the Mayor. 106 Division – Can be a subunit of a GASB department which encompasses a – The Governmental Accounting substantial portion of the duties assigned Standards Board, established in 1985, is to a department (e.g. Building Division in the current standard-setting board for the Planning and Community governmental GAAP. Development Department). General Fund –The principal operating Encumbrance – The commitment of fund of the City used for general appropriated funds to purchase an item or governmental operations. Taxes and fees service. To encumber funds means to set that generally have no restriction on their aside or commit funds for a specified use support it. future expenditure. General Obligation (G.O.) Bonds – Expense – Charges incurred (whether This type of bond is backed by the full paid immediately or unpaid) for faith, credit and taxing power of the operations, maintenance, interest or other government issuing it. charges. Indirect Cost –A cost necessary for the Face Value –The amount of principal functioning of the organization as a that must be paid at maturity for a bond whole, but which cannot be identified issue.with a specific product, function or activity. Fiscal Year – A twelve-month period Infrastructure designated as the operating year for – The physical assets of a accounting and budgeting purposes in an government (e.g. streets, water, sewer, organization. public buildings, and parks). Full-time Equivalent Position (FTEInterfund Transfers )– –The movement of A full-time or part-time position monies between funds of the same converted to the decimal equivalent of a governmental entity. full-time position based on 2,080 hours Levy per year. For example, a part-time person – To impose taxes for the support of working 20 hours per week would be the governmental activities. equivalent of 0.5 of a full-time position. Long-term Debt –Debt with a maturity Fund – A fiscal entity with revenuesand of more than one year after the date of expenses that are segregated for the issuance. purpose of carrying out a specific purpose Mission Statement or activity.–A broad statement of the intended accomplishment or basic GAAP – Generally Accepted Accounting purpose of a program. Principles. Uniform minimum standards Modified Accrual Accounting for financial accounting and recording, –A basis encompassing the conventions, rules, and of accounting in which expenditures are procedures that define accepted accrued but revenues are accounted for accounting principles. when they become measurable and 107 Taxes available. Since this type of accounting – Compulsory charges levied by a basis is a conservative financial government for the purpose of financing approach, it is recommended as the services performed for the common standard for most 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 services.assessments. Neither does the term include charges for services rendered Ordinance –A formal legislative only to those who pay, for example, enactment by the City Council. If it is not sewer service charges. in conflict with any higher form of law, Unreserved Fund Balance such as a statute or constitutional –The portion provision, it has the full force and effect of a fund’s balance that is not restricted of law within the boundaries of the for a specific purpose and is available for municipality to which it applies.general appropriation. ProgramUser Charges – The smallest organization –The payment of a fee for that delivers a specific set of services. A direct receipt of a public service by the program may be an entire department; or party who benefits from the service. if a department encompasses Vision Statement significantly diverse responsibilities or –A short statement large work forces, a single department that conveys the big picture of the may be divided into two or more organization. It is general in scope, not programs. restricting. It answers the question “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. Revenue – Sources of income financing the operations of government. 108