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Ordinance 17-014 adopts 2018 budget CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO. 17-014 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING A BUDGET FOR THE PERIOD JANUARY 1, 2018 THROUGH DECEMBER 31, 2018; APPROPRIATING FUNDS; ESTABLISHING SALARY SCHEDULES FOR ESTABLISHED POSITIONS; AND OTHER MATTERS RELATING THERETO. WHEREAS, State law requires the City Manager to prepare a preliminary budget for the City of Spokane Valley at least 60 days before the beginning of the City fiscal year beginning January 1,2018 and ending December 31,2018; and WHEREAS,the City Manager, in consultation with the Finance Director and department heads, has prepared and placed on file with the City Clerk a preliminary budget, together with an estimate of the amount of money necessary to meet the expenses of the City including payment of outstanding obligations; and WHEREAS,notice was posted and published for public hearings held on September 12, October 10, and November 14,2017. The City Council met and invited public comment in the City Council Chambers during each public hearing; and WHEREAS, proper notice was given and the preliminary budget was filed with the City Clerk September 26,2017; and WHEREAS, the City Council desires to adopt the 2018 budget, including all allowances, and an appropriation for each fund; and WHEREAS, the City of Spokane Valley property tax levy in 2017 for collection in 2018, will be $11,646,122.27, which represents a 0% increase in the 2018 levy. This levy is exclusive of additional revenue resulting from new construction, improvements to property, any increase in the value of State assessed property, any annexations that have occurred,and refunds made. NOW, THEREFORE,the City Council of the City of Spokane Valley do ordain as follows: Section 1. Adoption of 2018 Budget. The budget for the City of Spokane Valley for the year 2018 is adopted at the fund level. The final budget for 2018 is attached hereto, and by this reference is incorporated herein pursuant to RCW 35A.33.075. For summary purposes, the total estimated appropriations for each separate fund,plus the aggregate total for all such funds, is set forth as follows: Ordinance 17-014 Adopting 2018 Budget Page 1 of 3 Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund 001 25,229,916 43,048,025 68,277,941 42,625,888 25,652,053 Street Fund 101 862,428 4,172,200 5,034,628 4,602,291 432,337 Paths&Trails Fund 103 45,984 8,700 54,684 0 54,684 Hotel/Motel Tax-Tourism Facilities Fund 104 1,198,232 378,500 1,576,732 0 1,576,732 Hotel/Motel Tax Fund 105 166,290 581,000 747,290 602,000 145,290 Solid Waste 106 79,122 225,000 304,122 225,000 79,122 PEG Fund 107 57,841 79,000 136,841 71,200 65,641 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,505,325 0 5,505,325 0 5,505,325 Winter Weather Reserve Fund 122 501,435 3,500 504,935 500,000 4,935 LTGO Bond Debt Service Fund 204 78,333 977,400 1,055,733 977,400 78,333 REET 1 Capital Projects Fund 301 1,497,101 807,500 2,304,601 1,816,181 488,420 REET 2 Capital Projects Fund 302 1,365,041 808,000 2,173,041 1,770,873 402,168 Street Capital Projects 303 75,566 11,151,790 11,227,356 11,151,790 75,566 Park Capital Projects Fund 309 144,714 2,577,300 2,722,014 2,441,300 280,714 Civic Facilities Capital Projects Fund 310 842,159 5,900 848,059 0 848,059 Pavement Preservation Fund 311 2,585,864 4,973,200 7,559,064 4,058,600 3,500,464 Capital Reserve Fund 312 4,033,559 1,090,960 5,124,519 439,100 4,685,419 City Hall Construction Fund 313 74,960 0 74,960 74,960 0 Railroad Grade Separation Projects Fund 314 1,050,000 1,919,921 2,969,921 2,919,921 50,000 45,693,870 72,807,896 118,501,766 74,276,504 44,225,262 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Stormwater Management Fund 402 1,369,944 1,942,500 3,312,444 2,299,089 1,013,355 Aquifer Protection Area Fund 403 880,725 460,000 1,340,725 400,000 940,725 Equipment Rental&Replacement Fund 501 1,088,180 182,529 1,270,709 20,000 1,250,709 Risk Management Fund 502 233,687 370,000 603,687 370,000 233,687 3,572,536 2,955,029 6,527,565 3,089,089 3,438,476 Total of all Funds 49,266,406 75,762,925 125,029,331 77,365,593 47,663,738 The total balance of all funds appropriated for 2018 is$77,365,593. Section 2. Transmittal of Budget. A complete copy of the budget as adopted,together with a copy of this Ordinance, shall be transmitted by the City Clerk to the Division of Municipal Corporations in the Office of the State Auditor and to the Association of Washington Cities. Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 4. Effective Date. This Ordinance shall be in full force and effect five days after the date of publication of this Ordinance or a summary thereof in the official newspaper of the City. Ordinance 17-014 Adopting 2018 Budget Page 2 of 3 PASSED by the City Council this 14`'day ofNovemb-r,2017 (.41 L.R.Higgin ," a o AT Si - 4, , 4:4\A hristine Bainbridge, Clerk Approved As To Form: Office f he City A o y Date of Publication: /1",2V/-AT/2 Effective Date: /1 - J Ordinance 17-014 Adopting 2018 Budget Page 3 of 3 2018 Annual ____ ., • ......... _, , __... __ _ ___,__, ,.. _,.,_.„ ,„••:. ..____ ...,., , g -...._• A -. _ — f ::, sir , ._„,, i ,,t_, 4 r 01 i t i rl w - - >� ' � A 31!x' f- s.. F v r: t- - ‘ *V- # . 14 irr _ , ,,__ •k 1: imor • 10210 E. Sprague Ave. SjiOkane \11111Spokane Valley, WA 99206 .0.ovalleyK 509.720.5000 www.spokanevalley.org ♦**********••••••••••••••••••••••••••••••••••♦ • City of Spokane Valley, Washington • • Annual Budget • � For •the Fiscal Year � i January 1 through December 31, 2018 i • City Hall • • 10210 East Sprague Avenue • • Spokane Valley, WA 99206 • • Website: www.spokanevalley.org • Phone: (509) 720-5000 • • • • • • • • • • • "A community of opportunity where individuals and families can grow and play, and businesses • • will flourish and prosper." • • • • • • • • • • • • • • • • • • • • • SCITY OF p o ane a ey ,t This page left intentionally blank. Table of Contents City of Spokane Valley, WA Spokane County January 1,2018 through December 31,2018 Summary of Councilmembers III City Manager's Budget Message 1 Finance Director's Message -About the 2018 Budget and Budget Development Process 11 Budget Summary 27-39 Revenues by Fund and Type 40-47 Expenditures by Fund and Depaitnient 48-51 General Fund Department Changes from 2017 to 2018 52-55 #001-General Fund-Expenditures by Department by Type City Council 56 City Manager 57 City Attorney 58 Public Safety 59 Deputy City Manager 62 Finance 63 Human Resources 64 Public Works (history) 65 City Hall Operations and Maintenance 66 Community&Economic Development(history) 71 Community&Public Works 67 Parks&Recreation 73 General Government 78 Special Revenue Funds #101 - Street Fund 80 #103 -Paths&Trails Fund 82 #104-Hotel/Motel Tax—Tourism Facilities Fund 83 #105 -Hotel/Motel Tax Fund 83 #106 -Solid Waste Fund 84 #107 -PEG Fund 85 #120-CenterPlace Operating Reserve Fund 86 #121 -Service Level Stabilization Reserve Fund 86 #122 -Winter Weather Reserve Fund 87 1 City of Spokane Valley 2018 Budget Debt Service Funds #204 - Limited Tax General Obligation (LTGO) Fund 88 Capital Projects Funds #301 - REET 1 Capital Projects Fund 89 #302 -REET 2 Capital Projects Fund 90 #303 - Street Capital Projects Fund 91 #309 -Parks Capital Projects Fund 93 #310 - Civic Facilities Capital Projects Fund 94 #311 -Pavement Preservation Fund 95 #312 -Capital Reserve Fund 96 #313 - City Hall Construction Fund 97 #314—Railroad Grade Separation Projects Fund 98 Enterprise Funds #402- Stormwater Management Fund 99 #403 -Aquifer Protection Area Fund 101 Internal Service Funds #501 -Equipment Rental &Replacement Fund 102 #502 -Risk Management Fund 104 Total of Capital Expenditures for 2018 105 FTE Count by Year—2008 through 2018 106 Work Force Comparison 107 Appendix A, Employee Position Classification and Salary Schedule 108 Glossary of Budget Terms 109 Ordinance 17-014 Adopting the 2018 Budget 112 ••••••ssssssssssss♦sssssssssss•••••••••••••••••••••••••••••4 • • • • • • • • • • • • • • • Ii - s1hs • _ sx • 1• . & s • ilk i s RI • r_ _fi s ki • .t • • • • • • • • • •• City Council Members s • • s Rod Higgins, Mayor s • Position#1 • s Arne Woodard, Deputy Mayor s s• Position#3 s • • s Caleb Collier Ed Pace s s• Position #2 Position #4 s • • s Pam Haley Sam Wood s s• Position #5 Position #6 s • • s Michael Munch s • Position #7 • •s Staff s • • • • s• Mark Calhoun, City Manager s • • s John Hohman, Deputy City Manager s • s • • s Chelsie Taylor, Finance Director s • • •s Mike Stone, Parks & Recreation Director s • • • • s• Cary Driskell, City Attorney s • • s William Helbig, City Engineer s • • • • s Christine Bainbridge, City Clerk s • • • • • • • s • • • • • • • • ssssssssssssssssssssssssssssss♦ssssssssssssssssssssssssssssss • • • • • i { his page intentionally left blank •i ............................................................. SC1110' K pane Valley® City Manager's Budget Message 2018 Annual Budget Dear Citizens, Mayor and City Council of Spokane Valley: It is with pleasure that I present the attached 2018 Budget for the City of Spokane Valley. The City remains financially strong and continues to benefit from a history of prudent financial decisions that have been made since our 2003 incorporation. Consistently responsible budgeting and restrained spending have again helped us achieve the key Fiscal Policies noted in the following pages. The City of Spokane Valley continues to be an excellent example of how a City provides key services to the community while holding down taxes, fees and other charges. Additionally, our per capita employee count and personnel expenses are among the lowest (if not the lowest) of comparable size cities in the state and around the U.S. We recognize that to ensure continued financial stability, it is imperative that we achieve two key goals within our General Fund: 1. Recurring annual revenues must 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 six months of General Fund operations. We are pleased to report that each of these goals have again been achieved in the 2018 General Fund Budget. Beyond recurring operating activity, and due to our excellent financial condition, we are afforded the opportunity to use the portion of the General Fund fund balance that exceeds 50% for nonrecurring expenditures in pursuit of programs important to the City Council and community. Recent examples include General Fund contributions to each phase of the Appleway Trail project, Sullivan Road West Bridge Replacement project, Appleway road landscaping, a cash "down payment" for construction of a New City Hall, and beginning to set money aside for future railroad grade separation projects and 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 for the long-range fiscal strength of Spokane Valley. These policies set 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 resources to achieve success. 2. Minimize personnel costs and 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 a pay as you go philosophy. o The State of Washington sets the maximum level of allowable debt for cities based on assessed value of property. The City of Spokane Valley currently utilizes only 2.10% of its total debt capacity, and more importantly, only 10.50% of non-voted bond capacity. This reflects an exceptionally low debt burden. 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 objectives are: 1. Adopt a General Fund Budget with recurring revenues equal to, or greater than recurring expenditures. 2. Maintain a minimum General Fund Ending Fund Balance of at 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 the Service Level Stabilization Reserve Fund ($5.5 million) to maintain ending fund balance minimum. 4. Commitment to the strategy that the Service Level Stabilization Reserve Fund will not be reduced below $3.3 million (60% of$5.5 million). 5. Maintain the 2018 property tax assessment the same as 2017 with the exception of new construction. As in the previous eight years, the City will forego the one-percent annual increase to property tax allowable by RCW 84.52.050. We anticipate this will result in a levy of$11,646,122 plus estimated new construction of$150,000 for a total levy of approximately $11,796,100. The allowable potential increase will be banked for future use as provided by law. This effectively makes the ninth year in a row that we have not increased our City property tax assessment. 6. Grow our economy so the existing tax base can support basic programs. Commitment — By committing to these policies and the checks and balances they afford, the City will ensure financial sustainability well into the future. 2 2018 Budget 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 staff collectively dedicates 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 expenditures we have included in this budget. Similar to the trend experienced in most jurisdictions, we find that the cost of providing these services often increases at a faster rate than the moderate growth we see in the underlying tax revenues that support these core services. With that said however, City staff and Council collectively strive to meet the challenge of continuing to provide historic levels of service and we will again meet this challenge in 2018 where we anticipate recurring revenues will increase over those of 2017 by 3.73%, while expenditures increase by just 1.81%. 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 2018 Budget where public safety costs including law enforcement, courts, prosecution, public defense and jail related services total $25,464,251 which is an amount equal to 216% of anticipated property tax collections (= $25,464,251 / $11,796,100). City Hall Construction Project Since incorporation in 2003 the City had leased City Hall office space and over that time frame the City, like many of our residents, debated whether we were better off to continue renting or owning our own home. In 2015, the City made the decision to construct a New City Hall at a then estimated cost of$14.4 million. Through the balance of 2015 and into 2016 the City acquired land, contracted with an architect for design services and construction occurred between June 2016 and September 2017. With all costs for the facility accounted for, the actual final price totaled $14.15 million or $250,000 less than our initial target. We financed the project with a combination of$6.30 million in cash we set aside for this project and $7.85 million in net LTGO bond proceeds. Repayment of the bonds will take place over the 30-year period of 2016 through 2045 at a fixed average annual payment of$399,888 which is $34,712 less per year than the City's final annual lease payment of$434,600. The difference between continuing a lease for 30 years at a conservatively estimated annual increase of 3% versus having this fixed annual bond payment results in a savings to the community of approximately $8 million. We recognize that occupying a building we own will result in a number of costs we haven't historically borne as a tenant including facility maintenance, janitorial services and utilities. In acknowledgment of this, beginning with the 2017 General Fund Recurring Budget, we created a new department titled "City Hall Operations and Maintenance" that will account for the variety of costs we anticipate we will incur. The 2018 Budget for this department is $306,043. 3 Staffing Levels Staffing levels in 2018 are currently anticipated to increase by .85 full-time equivalent employee (FTE) to 89.25 FTEs from the 88.4 FTEs included in the 2017 Budget. The addition of the .85 FTEs is a result of a number of personnel actions that are explained below: FTEs in the adopted 2017 Budget 88.40 April 1, 2017 Reorganization (0.65) Revised 2017 FTEs 87.75 2018 Changes + Attorney 0.50 + Limited term employee moved to regular status position 1.00 2018 Proposed FTEs 89.25 In the 2017 Budget, of the 88.40 FTEs, we included the wages of 3.5 FTEs in capital projects leaving a net of 84.9 FTEs financed from operating funds. In the 2018 Budget, of the 89.25 FTEs, we include the wages of 4.5 FTEs in capital projects leaving a net of 84.75 FTEs financed from operating funds. This reflects a net decrease of .15 FTEs financed from operating funds between 2017 and 2018. These changes are depicted in the following analysis: 2017 2018 Difference FTEs financed by operating funds 84.90 84.75 (0.15) FTEs financed by capital projects 3.50 4.50 1.00 Total FTEs 88.40 89.25 0.85 Distribution of wage related costs to City funds are budgeted as follows: FTEs Distribution by Fund General Fund #001 74.63 Street O&M Fund #101 5.72 Street Capital Projects Fund #303 4.5 Stormwater Fund #402 4.4 89.25 Taking into consideration that we contract for police services and are served by Fire Districts and a Library District, for a major city we are operating substantially below the normal employee count and consequently at a significantly reduced payroll cost relative to many cities across the country. Spokane Valley personnel costs are approximately 21.2% of the total General Fund recurring expenditures. Spokane Valley staff levels average about one employee for every 1,054 citizens 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 lowest per 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. 4 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 2018, 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 2018, we project total revenues in Pavement Preservation of$4,973,200 that will be applied against $4,058,600 in projected expenditures. This will create a surplus in 2018 of$914,600 that will be applied to projects in subsequent years. Sources of revenue in 2018 include $2,572,500 in grant proceeds, and $2,400,700 in transfers from other City funds consisting of: • $962,700 from the General Fund • $ 67,342 from Street O&M Fund #101 • $685,329 from REET 1 Capital Projects Fund #301 • $685,329 from REET 2 Capital Projects Fund #302 While Pavement Preservation is one of our critical service and budget priorities, we find that sustaining historic levels of service is becoming more of a challenge with each passing year. The following section titled "Challenges" articulates the issues we are currently facing. Challenges Beyond the annual challenge of balancing the General Fund budget, the City of Spokane Valley has a number of on-going financial challenges. 1. Declining revenues in Street O&M Fund #101 that will impact our future ability to deliver historic service levels This Fund depends upon a combination of gas and telephone tax receipts. • Because the gas tax is a flat amount per gallon, and because each generation of newer vehicles get better gas mileage, we find our gas tax revenues have recently hovered somewhere between either flat or declining. Due to the 2015 State Legislature's increase in the gas tax we've seen a bit of an increase in this revenue source with a 2018 revenue projection of$2,052,000 which represents an increase of$117,000 (or 6%) over 2015 revenues of$1,935,000. • The 6% telephone utility tax generated $3.1 million in the first year of implementation in 2009. Since that time however we have experienced a steady decline and at this point are projecting 2018 revenues of just $1,900,000. 2. Balancing the cost of pavement preservation against other transportation and infrastructure needs • Pavement preservation has historically been financed from a combination of sources including: o General Fund dollars, o Street Fund money, o real estate excise tax (REET) receipts, o grants, and 5 o Civic Facility Replacement Fund #123 (Fund #123) reserves that were dedicated towards this purpose. Because Fund #123 reserves were fully depleted in 2016, beginning in 2017 the City was forced to dedicate more REET receipts towards pavement preservation in order to maintain historic levels of funding. • Street construction and reconstruction projects are typically financed through a combination of state and federal grants plus a City match that normally comes from REET receipts. The more we apply REET dollars towards pavement preservation projects, the less able we are to leverage this revenue source towards street construction and reconstruction projects. If one assumes we are able to obtain street construction grants requiring a 20% City match, then every $1 of REET money we set aside for this purpose leverages a $5 project. 3. Railroad Grade Separation and Quiet Zone Proiects (overpasses and underpasses) Bridging the Valley is a proposal to separate vehicle traffic from train traffic in the 42 mile corridor between Spokane and Athol, ID. The separation of railroad and roadway grades in this corridor is intended to promote future economic growth, traffic movement, traffic safety, aquifer protection in the event of an oil spill, and train whistle noise abatement. The underlying study outlined the need for a grade separation at four locations in Spokane Valley. The most recent estimates peg the total cost of these projects at $74.9 million including: • Barker and Trent Road Overpass (estimated cost of$20.0 million), • Pines and Trent Underpass (estimated cost of$19.8 million), • Sullivan Road Overpass improvements (estimated cost of$16.1 million), and • Park Road Overpass (estimated cost of$19.0 million) Because grade separation projects are exceptionally expensive endeavors and largely beyond our ability to finance solely through existing sources of internal revenue, the City has pursued grant funding from both the federal and state government over the past several years. Incremental successes thus far includes: Barker/Trent Grade Separation Proiect • Estimated cost has been reduced from $36.0 million to $20.0 million (or less) by determining that a full interchange is unnecessary. • $720,000 Federal Earmark. • $2,209,000 City earmark of real estate excise tax. • $1,421,321 of City General Fund money earmarked for this purpose. • $1,500,000 awarded by the WA State Legislature during the 2017 session. • FMSIB grant that is a 20% match of the total project cost. • Summary: Assuming a project cost of$20.0 million, the total of the aforementioned financial commitments is $9.8 million leaving $10.2 million currently underfunded. • On August 22, 2017 Council approved a Phase 1 contract to an engineering firm valued at $173,000 with a scope of services that calls for evaluating five potential options. The end result of the study will be a final recommended option with a revised cost estimate. Following this, we will plan to enter a second phase where we will contract with an engineering firm to take the recommended solution to a 100% design. 6 • The City has applied for a variety of both state and federal grants (including the TIGER and FASTLANE programs) and met with some success. We will continue to apply for grant programs as they become available including the upcoming federal INFRA and TIGER 9 programs. We are hopeful that having a 100% design will make us more competitive as we will then have a "shovel ready" project. Pines / Trent Grade Separation Proiect • In the 2017 General Fund Budget, Council appropriated $1.2 million towards this project and through 2018 Budget discussions has earmarked an additional $721,321 of excess General Fund reserves for a total of$1,921,321. • In late 2016, the City acquired property valued at approximately $500,000 to provide the necessary right-of-way for this project. • Summary: Although the City has not obtained any outside financial assistance on this project, we have committed $2,421,321 of internal funds towards this project. • On July 11, 2017 Council approved a Phase 1 contract to an engineering firm valued at $124,000 with a scope of services that calls for evaluating two potential options. The end result of the study will be a final recommended option with a revised cost estimate. Following this, we will plan to enter a second phase where we will contract with an engineering firm to take the recommended solution to a 100% design. • The City has applied for a variety of both state and federal grants (including the TIGER and FASTLANE programs). We will continue to apply for grant programs as they become available including the upcoming federal INFRA and TIGER 9 programs. We are hopeful that having a 100% design will make us more competitive as we will then have a "shovel ready" project. The Budget for 2018 Strong but Guarded Recognizing that fiscal health is at the core of providing good public services, one of the most important tests of fiscal management is the ability of a municipal enterprise to maintain basic services during an economic downturn. The creation and ongoing maintenance of financial reserves since incorporation has served its intended purpose of providing Spokane Valley the means to sustain critical public services during the turbulent economic conditions that began in 2008 and only recently subsided. The 2018 budget again reflects a prudent and guarded increase in continuation of service delivery capabilities. These increases are carefully considered and well within the means of the City. Service delivery cannot grow faster than the economic development of the City. Balanced Budget Means exactly what it says —operating expenses have been balanced with 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 providing the City's cash flow needs without costly borrowing. In pursuit of fiscal responsibility, special attention is given to limiting the growth in new programs and financial commitments. This approach allows available resources to be put toward sustaining services consistent with the City Council's priorities for 2018 and beyond. Future Concepts The budget process is not static and Council, the citizens, and staff must collectively remain vigilant in our observance of economic trends that may impact current and future forecasts. We accomplish this by constantly evaluating local, state and national events that may have an impact on our own community and work towards capitalizing on our strengths, minimizing our weaknesses, and being ever watchful towards both threats and opportunities. To the best of our ability we will focus on business retention, expansion and recruitment. Examples of ongoing and future economic development efforts are as follows: Comprehensive Plan — In 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. This 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 developed in 2016; conducting a market and retail gap analysis; development of a recruitment plan; identification of a strategic retail prospect list; and ultimately, recruitment of retail on behalf of the City. We have also included money in the 2018 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." 8 Acknowledgments I would like to acknowledge the citizens, City Council and Staff for a long history of conservative spending and prudent fiscal planning. By saving and conserving the taxpayers' money, and by adopting and adhering to prudent 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 2018 Budget recommendations to achieve the Council's ongoing goal of sustainability. The Citizens of Spokane Valley should be proud of the strong financial condition of their City. We invite your examination and questions regarding the 2018 Budget. Respectfully, Mark Calhoun City Manager 9 SCITY OF p o ane a ey ,t This page left intentionally blank. 10 FINANCE DEPARTMENT SHY Of; Chelsie Taylor, Finance Director poIiiiie 10210 E Sprague Avenue • Spokane Valley WA 99206 Valley Phone: (509) 720-5000♦ Fax: (509)720-5075•www.spokanevalley.org TO: City Manager and Members of the City Council FROM: Chelsie Taylor, Finance Director SUBJECT: About the 2018 Budget and Budget Development Process The budget includes the financial planning and legal authority to obligate public funds. Additionally, the budget provides significant policy direction by the City Council to the staff and community. As a result, the City Council, staff and public are involved in establishing the budget for the City of Spokane Valley. The budget serves four functions: 1. It is a Policy Document The budget functions as a policy document in that the decisions made within the budget will reflect the general principles or plans that guide the actions taken for the future. As a policy document, the budget makes specific attempts to link desired goals and policy direction to the actual day-to- day activities of the City staff. 2. It is an Operational Guide The budget of the City reflects its operation. Activities of each City function and organization have been planned, debated, formalized, and described in the following sections. This process will help to maintain an understanding of the various operations of the City and how they relate to each other and to the attainment of the policy issues and goals of the City Council. 3. It is a Link with the General Public The budget provides a unique opportunity to allow and encourage public review of City operations. The budget describes the activities of the City, the reason or cause for those activities, future implications, and the direct relationship to the citizenry. 4. It is a Legally Required Financial Planning Tool The budget is a financial planning tool, which has been its most traditional use. In this light, preparing and adopting a budget is a State law requirement of all cities as stated in Title 35A of the Revised Code of Washington (RCW). The budget must be adopted as a balanced budget and must be in place prior to the beginning of the City's fiscal year. The budget is the legal authority to expend public 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. 2018 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 2018 Budget development process began at the February 14, 2017 Council workshop where among other topics, Council and staff discussed the budget in general terms. In mid-April 2017 the Finance Department notified City Departments that their 2018 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 13, 2017. 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 2018 Budget is scheduled to be adopted on November 14, 2017, the Council will have had an opportunity to discuss it on eight separate occasions, including three public hearings to gather input from citizens: June 13 Council budget workshop August 22 Admin report: Estimated 2018 revenues and expenditures September 12 Public hearing #1 on 2018 revenues and expenditures September 26 City Manager's presentation of preliminary 2018 Budget October 10 Public hearing #2 on 2018 Budget October 24 First reading on ordinance adopting the 2018 Budget November 14 Public hearing #3 on the 2018 Budget November 14 Second reading on ordinance adopting the 2018 Budget Once adopted, the final operating budget is published, distributed, and made available to the public. After the budget is adopted, the City enters a budget implementation and monitoring stage. Throughout the year, expenditures are monitored by the Finance Department and department directors to ensure that actual expenditures are in compliance with the approved budget. The Finance Department provides the City Manager and City Council with monthly reports to keep them abreast of the City's financial condition and individual department compliance with approved appropriation levels. Any budget amendments made during the year are adopted by City Council ordinance following 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 Proiect Funds These funds account for financial resources, which are designated for the acquisition or construction of general government capital projects. Capital Project Funds include: • #301 — REET 1 Capital Projects Fund • #302 — REET 2 Capital Projects Fund • #303 — Streets Capital Projects Fund • #309 — Parks Capital Projects Fund • #310 — Civic Facilities Capital Projects Fund • #311 — Pavement Preservation Fund • #312 — Capital Reserve Fund • #313 — City Hall Construction Fund • #314 — Railroad Grade Separation Projects Fund Proprietary Fund Types A second type of fund classification is the Proprietary Funds that are used to account for activities similar to those found in the private sector where the intent of the governing body is to finance the full cost of providing services based on the commercial model which uses a flow of economic resources approach. Under this approach, the operating statements for the proprietary funds focus on a measurement of net income (revenues and expenses) and both current and non-current assets and liabilities are reported on related balance sheets. Their reported fund equity (total net assets) is segregated into restricted, unrestricted and invested in capital assets classifications. As described below, there are two generic fund types in this category: 14 1. Enterprise Funds These funds account for operations that provide goods or services to the general public and are supported primarily by user charges. This type of fund includes: • #402 — Stormwater Management Fund • #403 —Aquifer Protection Area Fund 2. Internal Service Funds These funds account for operations that provide goods or services to other departments or funds of the City. This type of fund includes: • #501 — Equipment Rental and Replacement Fund • #502 — Risk Management Fund Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized, recorded in the accounting system and ultimately reported in the financial statements. • Modified Accrual Basis of Accounting is used for all governmental funds. Modified accrual recognizes revenues when they become both measurable and available to finance expenditures of the current period. • Accrual Basis of Accounting is used for enterprise and internal service funds. Under this system revenues and expenses are recognized in the period incurred rather than when cash is either received or disbursed. Budgets and Budgetary Accounting Annual appropriation budgets are adopted for all funds with Governmental Funds utilizing a modified cash basis of accounting for budget purposes and Proprietary Funds utilizing a working capital approach. Budgets are adopted at the fund level that constitutes the legal authority for expenditures, and annual appropriations for all funds lapse at the end of the fiscal period. EXPLANATION OF MAJOR REVENUE SOURCES General Fund #001 • Property Tax Property taxes play an essential role in the finances of the municipal budget. State law limits the City to a $3.60 levy per $1,000 assessed valuation, deducting from there the levy of up to $1.50 by the Spokane County Fire Districts #1 and #8, along with deducting up to $0.50 for the Library District, which leaves the City with the authority to levy up to $1.60 for its own purposes. The levy amount must be established by ordinance by November 30th prior to the levy year. • 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 the tax. The allocation of the 8.8% tax rate to the agencies is as follows: 15 State of Washington 6.50% City of Spokane Valley 0.85% Spokane County 0.15% Criminal Justice 0.10% Spokane Public Facilities District 0.10% * Public Safety 0.10% * - 2.30% local tax Juvenile Jail 0.10% * Mental Health 0.10% * Law Enforcement Communications 0.10% * Spokane Transit Authority 0.70% * 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 capita basis to the County and cities within the County. • Public Safety Sales Tax Beginning in 2005, an additional 0.1% voter approved increase in sales tax was devoted to public safety purposes. This 0.1% was approved by the voters again in August 2009. Of the total amount collected, the State distributes 60% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the cities within the County. • Gambling Tax Gambling tax revenues must be spent primarily on law enforcement purposes pertaining to gambling. Funds remaining after necessary expenditures for such enforcement purposes may be used for any general government purpose. Gambling taxes are to be paid quarterly to the City, no later than the last day of January, April, July and October. The City imposes a tax on the following forms of gambling at the following rates: Bingo (5% gross, less prizes); Raffles (5% gross, less prizes); Punchboards and 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 all quarterly revenues are distributed in the same month of the quarter. The 2017 population figure used in the 2018 Budget is 94,890 as reported by the Office of Financial Management for Washington State on April 1, 2017. This figure is important when determining distribution of State shared revenues on a per capita basis. • Fines and Forfeitures / Public Safety Fines and penalties are collected as a result of Municipal Court rulings, false alarm fees, and other miscellaneous rule infractions. All court fines and penalties are shared with the State, with the City, on average, retaining less than 50% of the amount collected. • Community Development Community Development revenues are largely composed of fees for building permits, plan reviews, and right-of-way permits. • Recreation Program Fees The Parks and Recreation Department charges fees for selected recreation programs. These fees offset direct costs related to providing the program. • CenterPlace Fees The Parks and Recreation Department charges fees for use of CenterPlace. Uses include regional meetings, weddings, receptions and banquets. Rental rooms include classrooms, the great room and dining rooms. • Investment Interest The City earns investment interest on sales tax money held by the State of Washington prior to the distribution of the taxes to the City, as well as on City initiated investments. Street Fund #101 • Motor Vehicle Fuel Excise Tax (gas tax) The State of Washington collects a $0.494 per gallon motor vehicle fuel tax at the pump. Of this amount, the State remits a portion of the tax back to cities on a per capita basis. For 2017 the Municipal Research and Services Center estimates the distribution back to cities will be $21.76 per person. Based upon a City of Spokane Valley population of 94,890 (per the Washington State Office of Financial Management on April 1, 2017) we anticipate the City will collect$2,061,100 in 2018. RCW 47.30.050 specifies that 0.42% of this tax must be expended for paths and trails activities and based upon the 2018 revenue estimate this computes to $8,700. The balance of$2,052,400 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 $1.9 million for 2018. Paths & Trails Fund #103 Cities are required to spend 0.42%of the motor vehicle fuel tax receipts on paths and trails (please see the explanation for Street Fund #101) which we anticipate will be $8,700 in 2018. Because the amount collected in any given year is relatively small, it is typical to accumulate State distributions for several years until adequate dollars are available for a project. Hotel / Motel Tax— Tourism Facilities Fund #104 The City imposes a 1.3% tax under RCW 67.28.181 on all charges made for the furnishing of lodging at hotels, motels, and similar establishments (including bed and breakfasts and RV parks) for a continuous period of less than one month. The revenues generated by this tax may only be used for capital expenditures for acquiring, constructing, making improvements to or other related capital expenditures for large sporting venues, or venues for tourism-related facilities. This tax is estimated to generate $377,000 in 2018. Hotel / Motel Tax Fund #105 The City imposes a 2% tax under RCW 67.28.180 on all charges made for the furnishing of lodging at hotels, motels, and similar establishments (including bed and breakfasts and RV parks) for a continuous period of less than one month. The tax is taken as a credit against the 6.5% state sales tax, so that the total tax that a patron pays in retail sales tax and hotel/motel tax combined is equal to the retail sales tax in the jurisdiction. The revenues generated by this tax may be used solely for paying for tourism promotion and for the acquisition and/or operation of tourism-related facilities. This tax is estimated to generate $580,000 in 2018. 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 1% of gross receipts. These fees are used by the City to offset contract administrative costs and solid waste management within the City, including solid waste public educational efforts. PEG Fund #107 Under the City's cable franchise, the franchise grantee remits to the City in 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. 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 LTGO bonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond repayment (much like refinancing a home mortgage). At the completion of the bond refunding there remained $7,035,000 of LTGO bonds. Of this total: • $5,650,000 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, 2018, the outstanding balance on this portion of the bond issue will be $4,875,000. • $1,385,000 remained on the original debt used towards the road and street improvements. These bonds will be paid off in annual installments over the 10-year period ending December 1, 2023. Annual debt service payments on these bonds are provided by equal distributions from the 1St and 2nd quarter percent real estate excise tax. At January 1, 2018, the outstanding balance on this portion of the bond issue will be $865,000. 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 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, 2018, the outstanding balance on the bond issue will be $7,050,000. 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 $1,870,000 in 2018. 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 2018. 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 2018: Out: 001 I 101 I 105 I 106 I 301 I 302 I 312 I 313 I 402 Total In 001 0 39,700 30,000 40,425 0 0 0 0 13,400 123,525 204 399,350 0 0 0 82,000 82,000 0 0 0 563,350 303 0 0 0 0 1,048,852 1,003,544 115,000 0 0 2,167,396 In: 309 560,000 0 0 0 0 0 324,100 0 0 884,100 311 962,700 67,342 0 0 685,329 685,329 0 0 0 2,400,700 312 1,000,000 0 0 0 0 0 0 74,960 0 1,074,960 501 36,600 0 0 0 0 0 0 0 0 36,600 502 370,000 0 0 0 0 0 0 0 0 370,000 7,620,631 Total in Total Out 3,328,650 107,042 30,000 40,425 1,816,181 1,770,873 439,100 74,960 13,400 7,620,631 Total out 0 #001 - General Fund is budgeted to transfer out $3,328,650 including: • $399,350 to Fund #204 - LTGO Debt Service Fund for bond payments on the 2016 LTGO Bonds for the City Hall construction. • $560,000 to Fund #309 - Park Capital Projects Fund for park related projects, including $200,000 for phase 1 of creating an outdoor venue at CenterPlace and $200,000 for a pathway and lighting at Browns Park. • $962,700 to Fund #311 - Pavement Preservation Fund for pavement preservation projects. • $1,000,000 to Fund #312 - Capital Reserve Fund for various future capital projects. • $36,600 to Fund #501 - Equipment Rental and Replacement Fund to fund a CenterPlace kitchen equipment replacement reserve. • $370,000 to Fund#502-Risk Management Fund for the 2018 property and liability insurance premium. #101 - Street Fund is budgeted to transfer out $107,042 including: • $39,700 to Fund #001 - General Fund to cover administrative costs. • $67,342 to Fund #311 - Pavement Preservation Fund for pavement preservation projects. #105 - Hotel / Motel Tax Fund is budgeted to transfer $30,000 to Fund #001 - General Fund for the purpose of financing advertising at CenterPlace. 20 #106 — Solid Waste Fund is budgeted to transfer $40,425 to Fund #001 under a 5-year plan to reimburse the General Fund for expenditures made during 2013 and 2014 for the solid waste program. #301 — REET 1 Capital Projects Fund is budgeted to transfer out $1,816,181 including: • $82,000 to Fund #204— LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $1,048,852 to Fund #303 — Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $685,329 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. #302 — REET 2 Capital Projects Fund is budgeted to transfer out $1,770,873 including: • $82,000 to Fund #204— LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $1,003,544 to Fund #303 — Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $685,329 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. #312 — Capital Reserve Fund is budgeted to transfer out $439,100 including: • $115,000 to Fund#303—Street Capital Projects Fund that will be applied towards City funded street construction projects. • $324,050 to Fund#309—Parks Capital Projects Fund that will be applied towards the Sullivan to Corbin and Evergreen to Sullivan segments of the Appleway Trail. #313 — City Hall Construction Fund is budgeted to transfer $74,960 to Fund #312 — Capital Reserve Fund representing accumulated interest earnings on City funds that were not used on construction of the new City Hall building. Proceeds from the 2016 LTGO Bonds and accumulated interest on those proceeds were used prior to using City funds for construction. #402 —Stormwater Fund is budgeted to transfer $13,400 to Fund #001 — General Fund to cover administrative costs. SIGNIFICANT ASSUMPTIONS IN THE 2018 BUDGET Budget Summary for All Funds • Based upon funding levels anticipated in the 2018 budget, City staff will strive to maintain adequate levels of service. • Appropriations for all City Funds will total $77.4 million including $21.5 million in capital expenditures, comprised in-part of: o $11.2 million in Fund #303 Street Capital Projects. o $2.4 million in Fund #309 Park Capital Projects. o $4.0 million in Fund #311 Pavement Preservation projects. o $2.9 million in Fund #314 Railroad Grade Separation Projects. o $400,000 in Fund #402 Stormwater Management projects. o $400,000 in Fund #403 Aquifer Protection Area projects. • To partially offset the $21.5 million in capital costs, we anticipate $15.2 million in grant revenues which results in 70.41% of capital expenditures being covered with State and Federal money. • Budgets will be adopted across 24 separate funds. 21 • The full time equivalent of employee (FTE) count will be 89.25 employees compared to 88.4 in the prior year as a result the reduction of 0.65 with the City's reorganization in April 2017, an increase of 0.50 for the addition of a part-time attorney position, and an increase of 1 due to one limited term position being converted to regular full time in the Capital Projects Fund #303. o See the City Manager's budget message for further details on FTE count for the City. • The 2018 Budget reflects the fourth consecutive year the City will set aside City monies in an amount equivalent to 6% of General Fund recurring expenditures for pavement preservation in Fund #311 — Pavement Preservation. This 6% equals $2,400,700. • 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. 2018 General Fund Revenues • Total recurring 2018 revenues are estimated at $43,007,600 as compared to $41,462,500 in 2017. This is an increase of$1,545,100 or 3.73%. • The two largest sources of revenue continue to be Sales Tax and Property Tax which are collectively estimated to account for 82.27% of 2018 General Fund recurring revenues. • The 2018 general sales tax estimate (excluding criminal justice and public safety sales taxes) is reflective of 2017 receipts to date and are currently estimated at $20.9 million which reflects an increase of$1,029,800 or 5.19% over the 2017 estimate. • The Property Tax levy does not include the potential annual increase allowed by Initiative #747 which was approved by the voters in November 2001 and the subsequent action by the State Legislature in November 2007. o The 2018 levy is estimated at $11,796,100. o The levy assumes we start with the 2017 levy of$11,646,122, forgo the potential annual increase allowed by State law, and finally add taxes related to new construction which we estimate to be $150,000. • Franchise fees and business registrations are primarily based on projected receipts in 2017. • State shared revenues are based upon a combination of historical collections including 2017 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. 2018 General Fund Expenditures • Total 2018 recurring expenditures are budgeted at $40,891,379 as compared to $40,163,702 in 2017. This is an increase of$727,677 or 1.81%. • The City commitment of 6% of recurring General Fund expenditures to pavement preservation equals $2,400,700 and is computed by multiplying total recurring expenditures prior to adding the pavement preservation element ($2,400,700 / $40,891,379 = 6%). The $2,400,700 that is transferred to Pavement Preservation Fund #311 is comprised of the following: o $962,700 from General Fund #001 o $67,342 from Street Fund #101 22 o $685,329 from REET 1 Capital Projects Fund #301 o $685,329 from REET 2 Capital Projects Fund #302 • 2018 Nonrecurring expenditures total $1,734,509 and include: o $115,000 for Information Technology expenditures including: ■ $60,000 for upgrades to networking equipment that is reaching storage capacity ■ $50,000 for upgrades to the audio/visual equipment in the Auditorium at CenterPlace ■ $5,000 for capital software licenses o $4,809 for furniture for a part-time attorney o $100,000 for a full facility generator at the police precinct o $11,700 for Q-Alert software to handle citizen requests and concerns o $50,000 for replacement of flooring in the Great Room and Dining Room at CenterPlace o $3,000 to reseal two of the bathroom floors at CenterPlace o $200,000 transfer out to the Parks Capital Projects Fund #309 to complete the first phase of upgrades at CenterPlace to create an outdoor venue for events o $200,000 transfer out to the Parks Capital Projects Fund #309 to add a perimeter pathway and lighting to Browns Park o $1,000,000 transfer out to the Capital Reserve Fund #312 for miscellaneous future capital projects o $50,000 for retail recruitment services General Fund Revenues Over (Under) Expenditures and Fund Balance • 2018 recurring revenues are anticipated to exceed recurring expenditures by $2,116,221. • Total 2018 revenues are anticipated to exceed total expenditures by $422,137. • The total unrestricted General Fund ending fund balance is anticipated to be $25,652,053 at the end of 2018 which is 62.73% of total recurring expenditures of$40,891,379. 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 $2,061,100 according to per capita estimates provided by the Municipal Research and Services Center. Of this amount, $2,052,400 will be credited to the Street O&M Fund and 0.42% or $8,700 to the Paths and Trails Fund. • Telephone taxes that are remitted to the City and support Street Fund operations and maintenance are anticipated at $1,900,000. • 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 2018 we estimate these revenues to be $800,000 per each 1/4% for a total of$1,600,000. • Hotel/Motel tax revenues are computed by the City and are dedicated to the promotion of visitors and tourism. In 2018 we estimate the tax will generate $957,000, which includes $580,000 in Fund #105 Hotel / Motel Tax Fund from the 2% tax and $377,000 in Fund #104 Hotel / Motel Tax—Tourism Facilities Fund from the 1.3% tax that was effective as of July 1, 2015. • The Stormwater Management Fee is based on an equivalent residential unit (ERU) that is equal to 3,160 square feet of impervious surface that is billed at a rate of$21 per single family residence and $21 per ERU for commercial properties (an ERU for a commercial 23 property is computed as total square feet of impervious surface divided by 3,160). In 2018 we estimate this will fee will generate $1,870,000. • The Aquifer Protection Area Fund is expected to generate $460,000 in fees that are collected on the City's behalf by Spokane County and remitted in two installments during the year. • Grant revenues that will be applied to a variety of construction projects are estimated at $15,169,803 in 2018. By fund we anticipate grant revenues as follows: o Fund #303— Street Capital Projects - $8,919,182 o Fund #309 — Parks Capital Projects - $1,693,200 o Fund #311 — Pavement Preservation - $2,572,500 o Fund #314 — Railroad Grade Separation Projects Fund - $1,919,921 o Fund #402 —Stormwater Fund - $65,000 Expenditures • Fund #101 — Street Fund appropriations include: o a $67,342 transfer to Pavement Preservation Fund #311 for pavement preservation projects o $15,000 for battery backups for intersections • Fund #301 — REET 1 Capital Projects Fund includes a $1,816,181 appropriation to cover: o a $82,000 transfer to LTGO Bond Debt Service Fund #204 to pay one-half of the City's annual repayment of the 2014 LTGO Bonds. o a $1,048,852 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $685,329 transfer to Pavement Preservation Fund #311 for pavement preservation projects • Fund #302 — REET 2 Capital Projects Fund includes a $1,770,873 appropriation to cover: o a $82,000 transfer to LTGO Bond Debt Service Fund #204 to pay one-half of the City's annual repayment of the 2014 LTGO Bonds. o a $1,003,544 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $685,329 transfer to Pavement Preservation Fund #311 for pavement preservation projects • Fund #303— Street Capital Projects Fund includes an appropriation of$11,151,790 for a variety of street construction projects. Included in the projects are the Mission Ave. improvements project for which we are appropriating $3,625,716 in 2018 and the PCC intersection at Broadway and Argonne/Mullan for which we are appropriating $2,250,000 in 2018. • Fund #309— Parks Capital Projects includes a $2,441,300 appropriation to cover a variety of City park improvements that will be financed through a combination of a $560,000 transfer from the General Fund #001, a $324,100 transfer in from the Capital Reserve Fund #312, and $1,693,200 in grant proceeds. • Fund #311 — Pavement Preservation includes $4,000,000 of pavement preservation projects that will be financed through transfers from other City funds as outlined above under the heading of General Fund Recurring Expenditures. 24 • Fund #312 — Capital Reserve includes $115,000 in transfers to Fund #303—Street Capital Projects that will be applied towards the removal and reconstruction of Euclid Ave. from Flora to Barker in the amount of$5,000 and towards the installation of bus stops and crosswalks on Indiana Avenue in the amount of$110,000. It also includes $324,100 in 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. • Fund #314— Railroad Grade Separation Proiects includes appropriations in the amount of $2,919,921 which consists of$1,919,921 towards the design of the Barker Road Grade Separation project and $1,000,000 towards the design of the Pines Road Grade Separation project. • Fund #402 — Stormwater Fund includes $525,000 for nonrecurring expenditures including: o $450,000 for various capital projects o $75,000 for the studies related to the City's Stormwater permit and the watershed • Fund #403—Aquifer Protection Area Fund includes a $400,000 appropriation to various capital projects. 25 SCITY OF p o ane a ey ,t This page left intentionally blank. 26 CITY OF SPOKANE VALLEY,WA 2018 Budget Summary Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund 001 25,229,916 43,048,025 68,277,941 42,625,888 25,627,053 Street Fund 101 862,428 4,172,200 5,034,628 4,602,291 432,337 Paths&Trails Fund 103 45,984 8,700 54,684 0 54,684 Hotel/Motel Tax-Tourism Facilities Fund 104 1,198,232 378,500 1,576,732 0 1,576,732 Hotel/Motel Tax Fund 105 166,290 581,000 747,290 602,000 145,290 Solid Waste 106 79,122 225,000 304,122 225,000 79,122 PEG Fund 107 57,841 79,000 136,841 71,200 65,641 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,505,325 0 5,505,325 0 5,505,325 Winter Weather Reserve Fund 122 501,435 3,500 504,935 500,000 4,935 LTGO Bond Debt Service Fund 204 78,333 977,400 1,055,733 977,400 78,333 REET 1 Capital Projects Fund 301 1,497,101 807,500 2,304,601 1,816,181 488,420 REET 2 Capital Projects Fund 302 1,365,041 808,000 2,173,041 1,770,873 402,168 Street Capital Projects 303 75,566 11,151,790 11,227,356 11,151,790 75,566 Park Capital Projects Fund 309 144,714 2,577,300 2,722,014 2,441,300 280,714 Civic Facilities Capital Projects Fund 310 842,159 5,900 848,059 0 848,059 Pavement Preservation Fund 311 2,585,864 4,973,200 7,559,064 4,058,600 3,500,464 Capital Reserve Fund 312 4,033,559 1,090,960 5,124,519 439,100 4,685,419 City Hall Construction Fund 313 74,960 0 74,960 74,960 0 Railroad Grade Separation Projects Fund 314 1,050,000 1,919,921 2,969,921 2,919,921 50,000 45,693,870 72,807,896 118,501,766 74,276,504 44,200,262 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Stormwater Management Fund 402 1,369,944 1,942,500 3,312,444 2,299,089 1,013,355 Aquifer Protection Area Fund 403 880,725 460,000 1,340,725 400,000 940,725 Equipment Rental&Replacement Fund 501 1,088,180 182,529 1,270,709 20,000 1,250,709 Risk Management Fund 502 233,687 370,000 603,687 370,000 233,687 3,572,536 2,955,029 6,527,565 3,089,089 3,438,476 Total of all Funds 49,266,406 75,762,925 125,029,331 77,365,593 47,638,738 27 CITY OF SPOKANE VALLEY,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ #001 -GENERAL FUND RECURRING ACTIVITY Revenues Property Tax 11,614,500 0 11,614,500 11,796,100 181,600 1.56% Sales Tax 19,852,100 0 19,852,100 20,881,900 1,029,800 5.19% Sales Tax-Public Safety 919,000 0 919,000 967,800 48,800 5.31% Sales Tax-Criminal Justice 1,669,000 0 1,669,000 1,738,000 69,000 4.13% Gambling Tax and Leasehold Excise Tax 341,500 0 341,500 381,000 39,500 11.57% Franchise Fees/Business Registration 1,200,000 0 1,200,000 1,210,000 10,000 0.83% State Shared Revenues 2,104,600 0 2,104,600 2,109,600 5,000 0.24% Fines and Forfeitures/Public Safety 1,361,000 0 1,361,000 1,319,900 (41,100) (3.02%) Community and Public Works 0 0 0 1,684,100 1,684,100 0.00% Community Development 1,449,300 0 1,449,300 0 (1,449,300) (100.00%) Recreation Program Revenues 640,900 0 640,900 633,300 (7,600) (1.19%) Miscellaneous Department Revenue 94,000 0 94,000 1,000 (93,000) (98.94%) Miscellaneous&Investment Interest 133,500 0 133,500 201,800 68,300 51.16% Transfers in-#101 (street admin) 39,700 0 39,700 39,700 0 0.00% Transfers in-#105(h/m tax-CP advertising) 30,000 0 30,000 30,000 0 0.00% Transfers in-#402(storm admin) 13,400 0 13,400 13,400 0 0.00% Total Recurring Revenues 41,462,500 0 41,462,500 43,007,600 1,545,100 3.73% Expenditures City Council 542,872 0 542,872 548,494 5,622 1.04% City Manager 724,435 0 724,435 956,245 231,810 32.00% City Attorney 509,694 6,300 515,994 594,752 78,758 15.26% Public Safety 24,950,372 0 24,950,372 25,464,251 513,879 2.06% Deputy City Manager 750,277 2,000 752,277 450,663 (301,614) (40.09%) Finance/IT 1,282,460 0 1,282,460 1,339,064 56,604 4.41% Human Resources 262,417 0 262,417 275,387 12,970 4.94% Public Works 981,932 (60,300) 921,632 0 (921,632) (100.00%) City Hall Operations and Maintenance 303,918 0 303,918 306,043 2,125 0.70% Community&Public Works-Engineering 0 0 0 1,572,947 1,572,947 0.00% Community&Public Works-Economic Develof 0 0 0 970,642 970,642 0.00% Community&Public Works-Building&Plannin 0 0 0 2,265,677 2,265,677 0.00% Community&Economic Dvlpmnt-Admin 282,962 (54,500) 228,462 0 (228,462) (100.00%) Community&Economic Dvlpmnt-Econ Dev 683,632 9,200 692,832 0 (692,832) (100.00%) Community&Economic Dvlpmnt-Dev Svc 1,418,984 14,400 1,433,384 0 (1,433,384) (100.00%) Community&Economic Dvlpmnt-Building 1,390,834 90,900 1,481,734 0 (1,481,734) (100.00%) Parks&Rec-Administration 288,964 7,800 296,764 301,083 4,319 1.46% Parks&Rec-Maintenance 861,350 0 861,350 893,700 32,350 3.76% Parks&Rec-Recreation 235,995 10,300 246,295 260,574 14,279 5.80% Parks&Rec-Aquatics 457,350 40,000 497,350 492,900 (4,450) (0.89%) Parks&Rec-Senior Center 95,916 0 95,916 98,229 2,313 2.41% Parks&Rec-CenterPlace 891,458 10,500 901,958 910,468 8,510 0.94% General Government 1,240,850 0 1,240,850 1,261,610 20,760 1.67% Transfers out-#204(2016 LTGO debt service) 397,350 33,280 430,630 399,350 (31,280) (7.26%) Transfers out-#309(park capital projects) 160,000 0 160,000 160,000 0 0.00% Transfers out-#311 (pavement preservation) 953,200 0 953,200 962,700 9,500 1.00% Transfers out-#501 (CenterPlace kitchen reserve) 36,600 0 36,600 36,600 0 0.00% Transfers out-#502(insurance premium) 350,000 0 350,000 370,000 20,000 5.71% Total Recurring Expenditures 40,053,822 109,880 40,163,702 40,891,379 727,677 1.81% Recurring Revenues Over(Under) Recurring Expenditures 1,408,678 (109,880) 1,298,798 2,116,221 28 CITY OF SPOKANE VALLEY,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ #001 -GENERAL FUND-continued NONRECURRING ACTIVITY Revenues Grant Proceeds-Dept of Commerce 0 114,200 114,200 0 (114,200) (100.00%) Transfers in-#106 (solid waste repayment) 40,425 0 40,425 40,425 0 0.00% Transfers in-#310(lease in excess of debt service, 490,500 8,000 498,500 0 (498,500) (100.00%) Transfers in-#501 (networking equipment) 77,000 77,000 0 (77,000) (100.00%) Miscellaneous(donation) 0 35,000 35,000 0 (35,000) (100.00%) Total Nonrecurring Revenues 530,925 234,200 765,125 40,425 (724,700) (94.72%) Expenditures General Government-IT capital replacements 100,000 77,000 177,000 115,000 (62,000) (35.03%) City Attorney(part-time attorney furniture) 0 0 0 4,809 4,809 0.00% Public Safety(full facility generator) 0 0 0 100,000 100,000 0.00% Deputy City Manager(Q-Alert software) 0 0 0 11,700 11,700 0.00% Parks&Rec(Flooring in Great Room&Dining Roon 0 0 0 50,000 50,000 0.00% Parks&Rec(CP reseal two restroom floors) 0 0 0 3,000 3,000 0.00% Transfers out-#309(CP outdoor venue Phase 1) 0 0 0 200,000 200,000 0.00% Transfers out-#309(Browns Park lighting&path) 0 0 0 200,000 200,000 0.00% Transfers out-#312(misc capital projects) 0 0 0 1,000,000 1,000,000 0.00% Economic Development(retail recruitment) 50,000 0 50,000 50,000 0 0.00% City Hall lease payment(2017 final year) 513,100 0 513,100 0 (513,100) (100.00%) Economic Development(NE industrial PAO) 0 114,200 114,200 0 (114,200) (100.00%) Parks&Rec(pool drain pipe&gutter line repairs) 12,000 0 12,000 0 (12,000) (100.00%) Parks&Rec(replace Great Room audio/visual) 345,000 0 345,000 0 (345,000) (100.00%) Parks&Rec(replace carpet at CenterPlace) 24,750 0 24,750 0 (24,750) (100.00%) Parks&Rec(Browns Park water hookup) 0 10,000 10,000 0 (10,000) (100.00%) Parks&Rec(Browns Park electrical hookup) 0 20,000 20,000 0 (20,000) (100.00%) Parks&Rec(benches,shade structures,etc.) 0 35,000 35,000 0 (35,000) (100.00%) Police Department-CAD/RMS 145,000 0 145,000 0 (145,000) (100.00%) Transfers out-#122(replenish reserve) 0 258,000 258,000 0 (258,000) (100.00%) Transfers out-#312('15 fund bal>50%) 0 3,003,929 3,003,929 0 (3,003,929) (100.00%) Transfers out-#314(Pines underpass design) 1,200,000 0 1,200,000 0 (1,200,000) (100.00%) Total Nonrecurring Expenditures 2,389,850 3,518,129 5,907,979 1,734,509 (4,173,470) (70.64%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (1,858,925) (3,283,929) (5,142,854) (1,694,084) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (450,247) (3,393,809) (3,844,056) 422,137 Beginning unrestricted fund balance 29,073,972 29,073,972 25,229,916 Ending unrestricted fund balance 28,623,725 25,229,916 25,652,053 Fund balance as a percent of recurring expenditures 71.46% 62.82% 62.73% General Fund Summary Total revenues 41,993,425 234,200 42,227,625 43,048,025 Total expenditures 42,443,672 3,628,009 46,071,681 42,625,888 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (450,247) (3,393,809) (3,844,056) 422,137 Beginning unrestricted fund balance 29,073,972 29,073,972 25,229,916 Ending unrestricted fund balance 28,623,725 25,229,916 25,652,053 29 CITY OF SPOKANE VALLEY,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ SPECIAL REVENUE FUNDS #101 -STREET FUND RECURRING ACTIVITY Revenues Utility Tax 2,200,000 (200,000) 2,000,000 1,900,000 (100,000) (5.00%) Motor Vehicle Fuel(Gas)Tax 2,040,300 0 2,040,300 2,052,400 12,100 0.59% Multimodal Transportation Revenue 98,868 0 98,868 133,800 34,932 35.33% Right-of-Way Maintenance Fee 50,000 0 50,000 70,000 20,000 40.00% Investment Interest 4,000 0 4,000 6,000 2,000 50.00% Miscellaneous 10,000 0 10,000 10,000 0 0.00% Total Recurring Revenues 4,403,168 (200,000) 4,203,168 4,172,200 (30,968) (0.74%) end Expitures Wages/Benefits/Payroll Taxes 746,872 8,000 754,872 771,019 16,147 2.14% Supplies 105,000 0 105,000 112,500 7,500 7.14% Services&Charges 2,168,151 0 2,168,151 2,141,751 (26,400) (1.22%) Snow Operations 468,000 0 468,000 504,800 36,800 7.86% Intergovernmental Payments 795,000 0 795,000 851,000 56,000 7.04% Vehicle rentals-#501 (non-plow vehicle rental) 23,250 0 23,250 21,250 (2,000) (8.60%) Vehicle rentals-#501 (plow replace.) 77,929 0 77,929 77,929 0 0.00% Transfers out-#001 39,700 0 39,700 39,700 0 0.00% Transfers out-#311 (pavement preservation) 67,342 0 67,342 67,342 0 0.00% Signal Detection Replacement Program 40,000 0 40,000 0 (40,000) (100.00%) Traffic Signal Replacement Program 200,000 (200,000) 0 0 0 0.00% Total Recurring Expenditures 4,731,244 (192,000) 4,539,244 4,587,291 48,047 1.06% Recurring Revenues Over(Under) Recurring Expenditures (328,076) (8,000) (336,076) (415,091) NONRECURRING ACTIVITY Revenues Miscellaneous 0 0 0 0 0 0.00% Total Nonrecurring Revenues 0 0 0 0 0 0.00% end Expitures Durable striping at Trent&Argonne 75,000 0 75,000 0 (75,000) (100.00%) Spare traffic signal equipment 30,000 0 30,000 0 (30,000) (100.00%) Battery backups for intersections 15,000 0 15,000 15,000 0 0.00% Total Nonrecurring Expenditures 120,000 0 120,000 15,000 (105,000) (87.50%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (120,000) 0 (120,000) (15,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (448,076) (8,000) (456,076) (430,091) Beginning fund balance 1,318,504 1,318,504 862,428 Ending fund balance 870,428 862,428 432,337 Street Fund Summary Total revenues 4,403,168 (200,000) 4,203,168 4,172,200 Total expenditures 4,851,244 (192,000) 4,659,244 4,602,291 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (448,076) (8,000) (456,076) (430,091) Beginning unrestricted fund balance 1,318,504 1,318,504 862,428 Ending unrestricted fund balance 870,428 862,428 432,337 30 CITY OF SPOKANE VALLEY,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ I % SPECIAL REVENUE FUNDS-continued #103-PATHS&TRAILS FUND Revenues Motor Vehicle Fuel(Gas)Tax 8,600 0 8,600 8,700 100 1.16% Investment Interest 0 0 0 0 0 0.00% Total revenues 8,600 0 8,600 8,700 100 1.16% end Expitures Capital Outlay 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 8,600 8,600 8,700 Beginning fund balance 37,384 37,384 45,984 Ending fund balance 45,984 45,984 54,684 #104-HOTEL/MOTEL TAX-TOURISM FACILITIES FUND Revenues Hotel/Motel Tax 377,000 0 377,000 377,000 0 0.00% Investment Interest 0 0 0 1,500 1,500 0.00% Transfers in-#105 0 250,000 250,000 0 (250,000) (100.00%) Total revenues 377,000 250,000 627,000 378,500 (248,500) (39.63%) Expenditures Capital Outlay 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 377,000 627,000 378,500 Beginning fund balance 571,232 571,232 1,198,232 Ending fund balance 948,232 1,198,232 1,576,732 #105-HOTEL/MOTEL TAX FUND Revenues Hotel/Motel Tax 580,000 0 580,000 580,000 0 0.00% Investment Interest 500 0 500 1,000 500 100.00% Total revenues 580,500 0 580,500 581,000 500 0.09% end Expitures Transfers out-#001 30,000 0 30,000 30,000 0 0.00% Transfers out-#104 0 250,000 250,000 0 (250,000) (100.00%) Tourism Promotion 604,000 (250,000) 354,000 572,000 218,000 61.58% Total expenditures 634,000 0 634,000 602,000 (32,000) (5.05%) Revenues over(under)expenditures (53,500) (53,500) (21,000) Beginning fund balance 219,790 219,790 166,290 Ending fund balance 166,290 166,290 145,290 #106-SOLID WASTE FUND Revenues Sunshine administrative fee 125,000 0 125,000 225,000 100,000 80.00% Grant Proceeds 26,800 0 26,800 0 (26,800) (100.00%) Total revenues 151,800 0 151,800 225,000 73,200 48.22% end Expitures Education&Contract Administration 111,375 0 111,375 184,575 73,200 65.72% Transfers out-#001 40,425 0 40,425 40,425 0 0.00% Total expenditures 151,800 0 151,800 225,000 73,200 48.22% Revenues over(under)expenditures 0 0 0 Beginning fund balance 79,122 79,122 79,122 Ending fund balance 79,122 79,122 79,122 31 CITY OF SPOKANE VALLEY,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ SPECIAL REVENUE FUNDS-continued #107-PEG FUND Revenues Comcast PEG contribution 80,000 0 80,000 79,000 (1,000) (1.25%) Investment Interest 0 0 0 0 0 0.00% Total revenues 80,000 0 80,000 79,000 (1,000) (1.25%) end Expitures PEG Reimbursement-CMTV 0 0 0 40,200 40,200 0.00% Capital Outlay 12,500 0 12,500 31,000 18,500 148.00% New City Hall Council Chambers 250,000 0 250,000 0 (250,000) (100.00%) Total expenditures 262,500 0 262,500 71,200 (191,300) (72.88%) Revenues over(under)expenditures (182,500) (182,500) 7,800 Beginning fund balance 240,341 240,341 57,841 Ending fund balance 57,841 57,841 65,641 #120-CENTER PLACE OPERATING RESERVE FUND Revenues Investment Interest 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total revenues 0 0 0 0 0 0.00% end Expitures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 0 0 0 Beginning fund balance 300,000 300,000 300,000 Ending fund balance 300,000 300,000 300,000 #121 -SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest 21,900 0 21,900 0 (21,900) (100.00%) Miscellaneous 0 0 0 0 0 0.00% Total revenues 21,900 0 21,900 0 (21,900) (100.00%) end Expitures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 21,900 21,900 0 Beginning fund balance 5,483,425 5,483,425 5,505,325 Ending fund balance 5,505,325 5,505,325 5,505,325 #122-WINTER WEATHER RESERVE FUND Revenues Investment Interest 600 0 600 3,500 2,900 483.33% Transfers in-#001 0 258,000 258,000 0 (258,000) (100.00%) Subtotal revenues 600 258,000 258,600 3,500 (255,100) (98.65%) Expenditures Street maintenance expenditures 500,000 0 500,000 500,000 0 0.00% Total expenditures 500,000 0 500,000 500,000 0 0.00% Revenues over(under)expenditures (499,400) (241,400) (496,500) Beginning fund balance 242,835 242,835 501,435 Ending fund balance (256,565) 1,435 4,935 32 CITY OF SPOKANE VALLEY,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ DEBT SERVICE FUNDS #204-LTGO BOND DEBT SERVICE FUND Revenues Spokane Public Facilities District 379,750 0 379,750 414,050 34,300 9.03% Transfers in-#001 397,350 33,280 430,630 399,350 (31,280) (7.26%) Transfers in-#301 79,426 24,085 103,511 82,000 (21,511) (20.78%) Transfers in-#302 79,425 24,085 103,510 82,000 (21,510) (20.78%) Total revenues 935,951 81,450 1,017,401 977,400 (40,001) (3.93%) end Expitures Debt Service Payments-CenterPlace 379,750 2,858 382,608 414,050 31,442 8.22% Debt Service Payments-Roads 162,900 92 162,992 164,000 1,008 0.62% 2016 LTGO Bond Principal&Interest 397,350 167 397,517 399,350 1,833 0.46% Total expenditures 940,000 3,117 943,117 977,400 34,283 3.64% Revenues over(under)expenditures (4,049) 74,284 0 Beginning fund balance 4,049 4,049 78,333 Ending fund balance 0 78,333 78,333 33 CITY OF SPOKANE VALLEY,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ CAPITAL PROJECTS FUNDS #301 -REET 1 CAPITAL PROJECTS FUND Revenues REET 1 -Taxes 800,000 200,000 1,000,000 800,000 (200,000) (20.00%) Investment Interest 1,700 0 1,700 7,500 5,800 341.18% Total revenues 801,700 200,000 1,001,700 807,500 (194,200) (19.39%) end Expitures Transfers out-#204 79,426 24,085 103,511 82,000 (21,511) (20.78%) Transfers out-#303 437,002 0 437,002 1,048,852 611,850 140.01% Transfers out-#311 (pavement preservation) 660,479 0 660,479 685,329 24,850 3.76% Transfers out-#314(Barker Grade Separation) 280,079 (230,079) 50,000 0 (50,000) (100.00%) Total expenditures 1,456,986 (205,994) 1,250,992 1,816,181 565,189 45.18% Revenues over(under)expenditures (655,286) (249,292) (1,008,681) Beginning fund balance 1,746,393 1,746,393 1,497,101 Ending fund balance 1,091,107 1,497,101 488,420 #302-REET 2 CAPITAL PROJECTS FUND Revenues REET 2-Taxes 800,000 200,000 1,000,000 800,000 (200,000) (20.00%) Investment Interest 1,700 0 1,700 8,000 6,300 370.59% Total revenues 801,700 200,000 1,001,700 808,000 (193,700) (19.34%) end Expitures Transfers out-#204 79,425 24,085 103,510 82,000 (21,510) (20.78%) Transfers out-#303 1,173,230 0 1,173,230 1,003,544 (169,686) (14.46%) Transfers out-#311 (pavement preservation) 660,479 0 660,479 685,329 24,850 3.76% Total expenditures 1,913,134 24,085 1,937,219 1,770,873 (166,346) (8.59%) Revenues over(under)expenditures (1,111,434) (935,519) (962,873) Beginning fund balance 2,300,560 2,300,560 1,365,041 Ending fund balance 1,189,126 1,365,041 402,168 34 CITY OF SPOKANE VALLEY,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ CAPITAL PROJECTS FUNDS-continued #303-STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds 3,756,320 529,980 4,286,300 8,919,182 4,632,882 108.09% Developer 40,097 930,869 970,966 65,212 (905,754) (93.28%) Transfers in-#301 437,002 0 437,002 1,048,852 611,850 140.01% Transfers in-#302 1,173,230 0 1,173,230 1,003,544 (169,686) (14.46%) Transfers in-#312-Euclid Ave-Flora to Barker 1,750,000 23,671 1,773,671 5,000 (1,768,671) (99.72%) Transfers in-#312-Sullivan RdWBridge 10,000 440,000 450,000 0 (450,000) (200.00%) Transfers in-#312-8th&Carnahan Intersection 0 238,320 238,320 0 (238,320) (100.00%) Transfers in-#312-Indiana bus stops&crosswalk 0 0 0 110,000 110,000 0.00% Total revenues 7,166,649 2,162,840 9,329,489 11,151,790 1,822,301 19.53% end Expitures 123 Mission Ave.-Flora to Barker 500,000 0 500,000 3,625,716 3,125,716 625.14% 141 Sullivan&Euclid PCC 2,150,000 0 2,150,000 0 (2,150,000) (100.00%) 142 Broadway @ Argonne/Mullan PCC intersection 0 0 0 2,250,000 2,250,000 0.00% 155 Sullivan Rd W Bridge Replacement 10,000 1,053,370 1,063,370 0 (1,063,370) (100.00%) 166 Pines Rd(SR27)&Grace Ave. Intersect Safety 333,224 0 333,224 402,710 69,486 20.85% 167 Citywide Safety Improvements(bike/ped) 5,000 0 5,000 0 (5,000) (100.00%) 201 ITS Infill Project Phase 1 300,000 0 300,000 378,172 78,172 26.06% 205 Sprague/Barker Intersections Improvement 40,097 0 40,097 35,700 (4,397) (10.97%) 207 Indiana&Evergreen Transit Access Imp 5,000 0 5,000 0 (5,000) (100.00%) 221 McDonald Rd Diet(16th to Mission) 5,000 0 5,000 1,000 (4,000) (80.00%) 222 Citywide Reflective Signal Backplates 36,000 0 36,000 17,000 (19,000) (52.78%) 258 32nd Ave Sidewalk-SR27 to Evergreen 0 0 0 407,870 407,870 0.00% 229 32nd Ave Preservation Project 2,500 0 2,500 0 (2,500) (100.00%) 234 Seth Woodward Elem Sidewalk Improvement 5,000 0 5,000 0 (5,000) (100.00%) 238 Mirabeau Pkway&Pines(SR-27)Traffic Signal 5,000 0 5,000 0 (5,000) (100.00%) 239 Bowdish Sidewalk 8th to 12th 471,342 0 471,342 5,000 (466,342) (98.94%) 247 8th&Carnahan Intersection Improvements 0 238,320 238,320 0 (238,320) (100.00%) 259 N.Sullivan Corridor ITS Project 110,486 0 110,486 808,723 698,237 631.97% 251 Euclid Ave.-Flora to Barker 1,750,000 871,150 2,621,150 5,000 (2,616,150) (99.81%) 250 9th Ave.Sidewalk 240,000 0 240,000 2,000 (238,000) (99.17%) 249 Sullivan/Wellesley Intersection 198,000 0 198,000 268,000 70,000 35.35% 263 Citywide Signal Backplates 0 0 0 24,526 24,526 0.00% Wellesley Sidewalk Project 0 0 0 647,665 647,665 0.00% Barker Road Widening 0 0 0 106,500 106,500 0.00% 8th Ave Sidewalk 0 0 0 458,958 458,958 0.00% Mission Ave Sidewalk 0 0 0 60,250 60,250 0.00% Coleman Sidewalk 0 0 0 25,000 25,000 0.00% Argonne Reconstruction-Indiana to Montgom 0 0 0 512,000 512,000 0.00% Indiana bus stops&crosswalks 0 0 0 110,000 110,000 0.00% Contingency 1,000,000 0 1,000,000 1,000,000 0 0.00% Total expenditures 7,166,649 2,162,840 9,329,489 11,151,790 1,822,301 19.53% Revenues over(under)expenditures 0 0 0 Beginning fund balance 75,566 75,566 75,566 Ending fund balance 75,566 75,566 75,566 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,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ CAPITAL PROJECTS FUNDS-continued #309-PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds 3,217,267 (1,354,000) 1,863,267 1,693,200 (170,067) (9.13%) Transfers in-#001 160,000 0 160,000 560,000 400,000 250.00% Transfers in-#312 561,915 (263,700) 298,215 324,100 25,885 8.68% Investment Interest 800 0 800 0 (800) (100.00%) Total revenues 3,939,982 (1,617,700) 2,322,282 2,577,300 255,018 10.98% end Expitures 227 Appleway Trail(Pines to Evergreen) 1,925,957 1,600 1,927,557 0 (1,927,557) (100.00%) 237 Appleway Trail(Sullivan to Corbin) 1,853,225 (1,617,000) 236,225 1,853,300 1,617,075 684.55% Appleway Trail(Evergreen to Sullivan) 0 0 0 164,000 164,000 0.00% 242 Browns Park Splash Pad 0 500 500 0 (500) (100.00%) 261 Edgecliff Park Splash Pad 125,000 0 125,000 0 (125,000) (100.00%) CenterPlace outdoor venue-Phase 1 0 0 0 200,000 200,000 0.00% Browns Park lighting and pathway 0 0 0 200,000 200,000 0.00% Park signs(Sullivan,Park Rd,Balfour) 0 0 0 24,000 24,000 0.00% Total expenditures 3,904,182 (1,614,900) 2,289,282 2,441,300 152,018 6.64% Revenues over(under)expenditures 35,800 33,000 136,000 Beginning fund balance 111,714 111,714 144,714 Ending fund balance 147,514 144,714 280,714 #310-CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Investment Interest 1,200 6,300 7,500 5,900 (1,600) (21.33%) Total revenues 1,200 6,300 7,500 5,900 (1,600) (21.33%) Expenditures Transfers out-#001 490,500 8,000 498,500 0 (498,500) (100.00%) Total expenditures 490,500 8,000 498,500 0 (498,500) (100.00%) Revenues over(under)expenditures (489,300) (491,000) 5,900 Beginning fund balance 1,333,159 1,333,159 842,159 Ending fund balance 843,859 842,159 848,059 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-#001 953,200 0 953,200 962,700 9,500 1.00% Transfers in-#101 67,342 0 67,342 67,342 0 0.00% Transfers in-#301 660,479 0 660,479 685,329 24,850 3.76% Transfers in-#302 660,479 0 660,479 685,329 24,850 3.76% Grant Proceeds 340,800 0 340,800 2,572,500 2,231,700 654.84% Total revenues 2,682,300 0 2,682,300 4,973,200 2,290,900 85.41% end Expitures Pavement preservation 3,000,000 0 3,000,000 4,008,600 1,008,600 33.62% Pre-project GeoTech 50,000 0 50,000 50,000 0 0.00% Total expenditures 3,050,000 0 3,050,000 4,058,600 1,008,600 33.07% Revenues over(under)expenditures (367,700) (367,700) 914,600 Beginning fund balance 2,953,564 2,953,564 2,585,864 Ending fund balance 2,585,864 2,585,864 3,500,464 36 CITY OF SPOKANE VALLEY,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ CAPITAL PROJECTS FUNDS-continued #312-CAPITAL RESERVE FUND Revenues Transfers in-#001 0 3,003,929 3,003,929 1,000,000 (2,003,929) (66.71%) Transfers in-#313 0 0 0 74,960 74,960 0.00% Investment Interest 1,000 0 1,000 16,000 15,000 1500.00% Total revenues 1,000 3,003,929 3,004,929 1,090,960 (1,913,969) (63.69%) Expenditures City Hall sculpture siting 0 38,526 38,526 0 (38,526) (100.00%) Transfers out-#303(Sullivan Rd WBridge) 10,000 440,000 450,000 0 (450,000) (100.00%) Transfers out-#303(Euclid Ave-Flora to Barker) 1,750,000 23,671 1,773,671 5,000 (1,768,671) (99.72%) Transfers out-#303(8th&Carnahan Intersection) 0 238,320 238,320 0 (238,320) (100.00%) Transfers out-#303(Indiana bus stops&crosswal 0 0 0 110,000 110,000 0.00% Transfers out-#309(Appleway Trail-Pines-Evergi 260,005 0 260,005 0 (260,005) (100.00%) Transfers out-#309(Appleway Trail-Sullivan-Cort 301,910 (263,700) 38,210 301,900 263,690 690.11% Transfers out-#309(Appleway Trail-Evergreen-S 0 0 0 22,200 22,200 0.00% Transfers out-#314(Pines Grade Separation) 0 483,000 483,000 0 (483,000) (100.00%) Total expenditures 2,321,915 959,817 3,281,732 439,100 (2,842,632) (86.62%) Revenues over(under)expenditures (2,320,915) (276,803) 651,860 Beginning fund balance 4,310,362 4,310,362 4,033,559 Ending fund balance 1,989,447 4,033,559 4,685,419 #313-CITY HALL CONSTRUCTION FUND Revenues Investment Interest 0 27,000 27,000 0 (27,000) (100.00%) Total revenues 0 27,000 27,000 0 (27,000) (100.00%) end Expitures Capital Outlay-City Hall 5,344,219 755,882 6,100,101 0 (6,100,101) (100.00%) Transfers out-#312 0 0 0 74,960 74,960 0.00% Total expenditures 5,344,219 755,882 6,100,101 74,960 (6,025,141) (98.77%) Revenues over(under)expenditures (5,344,219) (6,073,101) (74,960) Beginning fund balance 6,148,061 6,148,061 74,960 Ending fund balance 803,842 74,960 0 #314-RAILROAD GRADE SEPARATION PROJECTS FUND Revenues Grant Proceeds 489,921 (189,921) 300,000 1,919,921 1,619,921 539.97% Transfers in-#001 (Pines underpass design) 1,200,000 0 1,200,000 0 (1,200,000) (100.00%) Transfers in-#301 (Barker overpass design) 280,079 (230,079) 50,000 0 (50,000) (100.00%) Transfers in-#312(Pines land acquisition) 0 483,000 483,000 0 (483,000) (100.00%) Total revenues 1,970,000 63,000 2,033,000 1,919,921 (113,079) (5.56%) end Expitures 143 Barker BNSF Grade Separation 770,000 (470,000) 300,000 1,919,921 1,619,921 539.97% 223 Pines Rd Underpass 1,200,000 (517,000) 683,000 1,000,000 317,000 46.41% Total expenditures 1,970,000 (987,000) 983,000 2,919,921 1,936,921 197.04% Revenues over(under)expenditures 0 1,050,000 (1,000,000) Beginning fund balance 0 0 1,050,000 Ending fund balance 0 1,050,000 50,000 37 CITY OF SPOKANE VALLEY,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ ENTERPRISE FUNDS #402-STORM WATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees 1,860,000 0 1,860,000 1,870,000 10,000 0.54% Investment Interest 2,500 0 2,500 7,500 5,000 200.00% Total Recurring Revenues 1,862,500 0 1,862,500 1,877,500 15,000 0.81% Expenditures Wages/Benefits/Payroll Taxes 546,421 4,900 551,321 557,157 5,836 1.06% Supplies 15,425 0 15,425 14,800 (625) (4.05%) Services&Charges 1,111,076 0 1,111,076 1,140,982 29,906 2.69% Intergovernmental Payments 50,000 0 50,000 35,000 (15,000) (30.00%) Vehicle rentals-#501 12,750 0 12,750 12,750 0 0.00% Transfers out-#001 13,400 0 13,400 13,400 0 0.00% Total Recurring Expenditures 1,749,072 4,900 1,753,972 1,774,089 20,117 1.15% Recurring Revenues Over(Under) Recurring Expenditures 113,428 (4,900) 108,528 103,411 NONRECURRING ACTIVITY Revenues Grant Proceeds 210,000 0 210,000 65,000 (145,000) (69.05%) Total Nonrecurring Revenues 210,000 0 210,000 65,000 (145,000) (69.05%) Expenditures Capital-various projects 450,000 0 450,000 450,000 0 0.00% Effectiveness study 210,000 0 210,000 15,000 (195,000) (92.86%) Watershed studies 50,000 0 50,000 60,000 10,000 20.00% Total Nonrecurring Expenditures 710,000 0 710,000 525,000 (185,000) (26.06%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (500,000) 0 (500,000) (460,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (386,572) (4,900) (391,472) (356,589) Beginning working capital 1,761,416 1,761,416 1,369,944 Ending working capital 1,374,844 1,369,944 1,013,355 Stormwater Fund Summary Total revenues 2,072,500 0 2,072,500 1,942,500 Total expenditures 2,459,072 4,900 2,463,972 2,299,089 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (386,572) (4,900) (391,472) (356,589) Beginning unrestricted fund balance 1,761,416 1,761,416 1,369,944 Ending unrestricted fund balance 1,374,844 1,369,944 1,013,355 #403-AQUIFER PROTECTION AREA Revenues Spokane County 460,000 0 460,000 460,000 0 0.00% Total revenues 460,000 0 460,000 460,000 0 0.00% Expenditures Capital-various projects 530,000 0 530,000 400,000 (130,000) (24.53%) Total expenditures 530,000 0 530,000 400,000 (130,000) (24.53%) Revenues over(under)expenditures (70,000) (70,000) 60,000 Beginning working capital 950,725 950,725 880,725 Ending working capital 880,725 880,725 940,725 38 CITY OF SPOKANE VALLEY,WA 11/14/2017 2018 Budget 2017 2018 Difference Between As As Proposed 2017 and 2018 Adopted Amendment Amended Budget $ INTERNAL SERVICE FUNDS #501 -ER&R FUND Revenues Vehicle rentals-#001 32,500 0 32,500 30,000 (2,500) (7.69%) Vehicle rentals-#101 23,250 0 23,250 21,250 (2,000) (8.60%) Vehicle rentals-#101 (plow replace.) 77,929 0 77,929 77,929 0 0.00% Vehicle rentals-#402 12,750 0 12,750 12,750 0 0.00% Transfer in-#001 (CenterPlace kitchen reserve) 36,600 0 36,600 36,600 0 0.00% Investment Interest 2,000 0 2,000 4,000 2,000 100.00% Total revenues 185,029 0 185,029 182,529 (2,500) (1.35%) end Expitures Snow Plow Blades 0 28,000 28,000 0 (28,000) (100.00%) Snow Plow Replacement 0 122,400 122,400 0 (122,400) (100.00%) Small tools&minor equipment 0 6,400 6,400 20,000 13,600 212.50% Transfer out-#001 (networking equipment) 0 77,000 77,000 0 (77,000) (100.00%) Total expenditures 0 233,800 233,800 20,000 (213,800) (91.45%) Revenues over(under)expenditures 185,029 (48,771) 162,529 Beginning working capital 1,136,951 1,136,951 1,088,180 Ending working capital 1,321,980 1,088,180 1,250,709 #502-RISK MANAGEMENT FUND Revenues Transfers in-#001 350,000 0 350,000 370,000 20,000 5.71% Total revenues 350,000 0 350,000 370,000 20,000 5.71% Expenditures Auto&Property Insurance 350,000 0 350,000 370,000 20,000 5.71% Total expenditures 350,000 0 350,000 370,000 20,000 5.71% Revenues over(under)expenditures 0 0 0 Beginning fund balance 233,687 233,687 233,687 Ending fund balance 233,687 233,687 233,687 TOTAL OF ALL FUNDS Total of Revenues for all Funds 68,985,004 4,669,019 73,654,023 75,762,925 Total of Expenditures for all Funds 80,739,873 4,780,556 85,520,429 77,365,593 Total grant revenues(included in total revenues) 8,041,108 (899,741) 7,141,367 15,169,803 Total Capital expenditures(included in total expenditures) 23,577,550 447,748 24,025,298 21,544,311 39 CITY OF SPOKANE VALLEY,WA 2018 Budget Revenues by Fund General Fund Property Tax $ 11,796,100 Sales Tax 20,881,900 Sales Tax-Public Safety 967,800 Sales Tax-Criminal Justice 1,738,000 Gambling and Leasehold Excise Tax 381,000 Franchise Fees/Business Registration 1,210,000 State Shared Revenues 2,109,600 Service Revenues 1,684,100 Fines and Forfeitures 1,319,900 Recreation Program Fees 633,300 Miscellaneous, Investment Int.,Transfers 326,325 Total General Fund $ 43,048,025 Other Funds 101 Street Fund $ 4,172,200 103 Paths&Trails Fund 8,700 104 Hotel/Motel Tax Tourism Facilities Fund 378,500 105 Hotel/Motel Tax Fund 581,000 106 Solid Waste Fund 225,000 107 PEG Fund 79,000 120 CenterPlace Operating Reserve Fund 0 121 Service Level Stabilization Reserve Fund 0 122 Winter Weather Reserve Fund 3,500 204 LTGO Bond Debt Service Fund 977,400 301 REET 1 Capital Projects Fund 807,500 302 REET 2 Capital Projects Fund 808,000 303 Street Capital Projects Fund 11,151,790 309 Parks Capital Projects Fund 2,577,300 310 Civic Facilities Capital Projects Fund 5,900 311 Pavement Preservation Fund 4,973,200 312 Capital Reserve Fund 1,090,960 313 City Hall Construction Fund 0 314 Railroad Grade Separation Projects Fund 1,919,921 402 Stormwater Management Fund 1,942,500 403 Aquifer Protection Area Fund 460,000 501 Equipment Rental & Replacement Fund 182,529 502 Risk Management Fund 370,000 Total Other Funds $ 32,714,900 Total All Funds $ 75,762,925 40 x x as I -' I— 0 N Q N V) O L CL \iiii.ipi. Q Y 3 ` LLJ a) J J a) -a N v, W O ° v Z00 C LL d f6 o v Q O v U CO M 2 a GJ Id- VIGJOel 00 el O LL E as V N o CL c 0 v L U U1CC \ U1 N O U1 X el+�+_ cc o a as N a In Uel 4- UCl) N O o _> Nas C X V) LL M as c of V) N 06 V) -a o Ca UA +moi o ++ o of N V) \ a E N N of Ch el I_ In IPLL v) LL M E vas U a o N a, _0 E v) U CL U C as LL U- LL U1 N LL CIA U1 C LL N Q Q _ U1 � ++ C (6 L a, E � LL N U1 O i-1 M d w W C J a) J Ln cuW Z N O YV CLON c/Y U LL 00O O LL c r%1ro r, U1 el U el LL U1 U s- ci U1 U1 (77 N C 7 LL U1 7 C U1 a o N � Ln LL Q N L Y 0 CITY OF SPOKANE VALLEY,WA 2018 Budget-General Fund Detail Revenues by Type 2014 2015 2016 2017 2018 Amended Proposed Actual Actual Actual Budget Budget Property Tax Property Tax 11,129,377 11,095,009 11,414,107 11,614,500 11,796,100 Property Tax-Delinquent 0 185,138 0 0 0 11,129,377 11,280,147 11,414,107 11,614,500 11,796,100 Sales Taxes Sales Tax 17,440,083 18,209,568 19,887,049 19,852,100 20,881,900 Sales Tax-Public Safety 812,280 848,665 910,798 919,000 967,800 Sales Tax-Criminal Justice 1,455,313 1,523,588 1,642,804 1,669,000 1,738,000 19,707,676 20,581,821 22,440,652 22,440,100 23,587,700 Gambling and Leasehold Excise Tax Amusement Games 11,063 11,909 13,671 11,000 13,000 Card Games 429,376 336,960 288,199 260,000 288,000 Bingo&Raffles 1,227 950 839 1,000 1,000 Punch Boards&Pull Tabs 64,585 62,966 69,001 63,000 69,000 Leasehold Excise Tax 6,932 5,869 6,567 5,800 6,500 Leasehold Excise Tax(State) 770 770 3,514 700 3,500 513,954 419,424 381,790 341,500 381,000 Licenses&Permits General Business Licenses 106,741 109,076 111,906 100,000 110,000 Comcast PEG Contribution 89,121 0 0 0 0 Franchise Fees 1,053,986 1,111,616 1,145,319 1,100,000 1,100,000 1,249,848 1,220,692 1,257,225 1,200,000 1,210,000 State Shared Revenues Streamline Mitigation of Sales Tax 575,269 572,577 559,044 520,000 520,000 Payment in Lieu of Taxes-DNR 8,528 4,114 0 4,000 4,000 MVET Criminal Justice-Population 23,837 24,869 25,940 29,200 29,400 CJ Contracted Services 152,133 157,282 159,936 150,000 155,000 CJ Special Programs 88,168 91,009 94,462 97,900 100,600 Marijuana Enforcement 0 37,912 54,213 54,600 33,200 DUI-Cities 16,273 13,571 14,472 13,600 14,000 Liquor Board Excise Tax 157,068 303,724 442,294 439,700 466,800 Liquor Board Profits 812,922 806,570 804,057 795,600 786,600 1,834,198 2,011,629 2,154,417 2,104,600 2,109,600 Service Revenues Building Permits 819,234 770,288 1,534,332 770,000 878,000 Developer Contributions 0 0 23,587 0 0 Demolition Permits 4,836 3,840 3,232 4,000 4,000 Building&Planning Fees 381,282 148,962 134,686 125,500 126,400 Entertainment License 15,823 18,374 17,548 17,000 17,000 Grading Permits 4,049 4,748 6,271 3,500 4,000 Home Profession Fee 3,108 2,856 3,780 2,800 3,200 Mechanical Permits 108,759 89,975 102,639 90,000 88,000 Misc. Permits&Fees 8,168 7,229 3,925 6,600 6,600 Planning Fees 145,218 379,143 721,851 380,500 402,500 Plumbing Permits 63,667 41,784 77,523 42,000 53,000 Street Vacation Permits 0 0 0 1,000 1,000 Right of Way Permits 94,512 91,124 97,037 93,000 95,000 Code Enforcement 6,189 12,417 2,185 6,000 5,000 Temporary Use Permit Fees 471 314 471 400 400 1,655,315 1,571,053 2,729,068 1,542,300 1,684,100 43 CITY OF SPOKANE VALLEY,WA 2018 Budget-General Fund Detail Revenues by Type 2014 2015 2016 2017 2018 Amended Proposed Actual Actual Actual Budget Budget Fines and Forfeitures Public Safety False Alarm Services 0 201,638 150,058 200,000 151,000 Public Safety Grants 59,265 49,418 25,628 50,000 50,000 Fines&Forfeits-Traffic 761,179 601,189 477,743 523,600 483,600 Other Criminal-Non Traffic Fines 639,820 508,665 606,463 587,400 635,300 1,460,263 1,360,910 1,259,892 1,361,000 1,319,900 Recreation Program Charges Activity Fees(To use a recreational facility) 426,920 461,772 433,842 454,600 438,100 Program Fees(To participate in a program) 172,483 192,484 204,527 186,300 195,200 599,403 654,256 638,369 640,900 633,300 Miscellaneous Investment Interest 41,910 73,378 136,810 73,000 136,000 Sales Tax Interest 3,978 8,682 13,477 5,000 5,000 SCRAPS pass-through/nonrecurring 57,259 1,100 1,209 1,300 1,300 Interest on Gambling Tax 256 66 174 500 500 Dept.of Ecology Grant 6,290 0 0 0 0 Office of Public Def-Public Def Improvement 0 20,000 18,400 0 0 Police Precinct Rent 48,558 51,653 38,842 37,000 38,000 Police Precinct Maintenance 0 0 19,059 14,700 19,000 Judgments and Settlements 0 0 25,000 0 0 Copy Charges 385 708 262 500 500 Insurance Recoveries 0 0 44,474 0 0 AWC Health&Wellness 0 400 492 500 500 Miscellaneous Revenue&Grants 4,958 5,326 87,065 151,200 2,000 163,594 161,315 385,264 283,700 202,800 Transfers Transfers in-#101 (street admin) 39,700 39,700 39,700 39,700 39,700 Transfers in-#105(h/m tax-CP advertising) 30,000 30,000 30,000 30,000 30,000 Transfers in-#106(solid waste repayment) 0 40,425 40,425 40,425 40,425 Transfers in-#310 0 0 198,734 498,500 0 Transfers in-#402(storm admin) 13,400 13,400 13,400 13,400 13,400 Transfers in-#501 0 0 0 77,000 0 83,100 123,525 322,259 699,025 123,525 Total General Fund Revenue 38,396,727 39,384,771 42,983,043 42,227,625 43,048,025 44 CITY OF SPOKANE VALLEY,WA 2018 Budget-Other Funds Detail Revenues by Type 2014 2015 2016 2017 2018 Amended Proposed Actual Actual Actual Budget Budget 101-Street Fund Utilities tax 2,461,060 2,257,184 2,069,309 2,000,000 1,900,000 Motor Vehicle Fuel(Gas)Tax 1,878,476 1,935,629 2,005,909 2,040,300 2,052,400 Multimodal Transportation Revenue 0 0 95,509 98,868 133,800 Right-of-Way Maintenance Fee 0 0 56,035 50,000 70,000 Investment Interest 2,037 3,212 5,886 4,000 6,000 Other Miscellaneous Revenues&Grants 24,587 25,167 71,679 10,000 10,000 4,366,160 4,221,192 4,304,327 4,203,168 4,172,200 103-Paths&Trails Fund Motor Vehicle Fuel(Gas)Tax 7,923 8,164 8,460 8,600 8,700 Investment interest 34 62 170 0 0 7,957 8,226 8,630 8,600 8,700 104-Hotel/Motel Tax-Tourism Facilities Fund Hotel/Motel Tax 0 182,236 387,333 377,000 377,000 Transfers in-#105 0 0 0 250,000 0 Investment interest 0 111 1,552 0 1,500 O 182,347 388,885 627,000 378,500 105-Hotel/Motel Tax Fund Hotel/Motel Tax 549,267 581,237 596,373 580,000 580,000 Investment Interest 299 484 1,274 500 1,000 549,566 581,721 597,647 580,500 581,000 106-Solid Waste Sunshine administrative fee 0 125,000 125,000 125,000 225,000 Grant Proceeds 0 0 17,677 26,800 0 Investment Interest 0 0 184 0 0 Transfers in-#001 (marketing/education) 60,000 0 0 0 0 60,000 125,000 142,861 151,800 225,000 107-PEG Fund Comcast PEG contribution 0 81,806 79,427 80,000 79,000 Investment Interest 0 0 784 0 0 Transfers in-#001 0 267,333 0 0 0 O 349,139 80,211 80,000 79,000 120-CenterPlace Operating Reserve Fund Investment Interest 0 0 0 0 0 O 0 0 0 0 121-Service Level Stabilization Reserve Fund Investment Interest 4,697 8,590 21,636 21,900 0 4,697 8,590 21,636 21,900 0 122-Winter Weather Reserve Fund FEMA Grant Proceeds 0 0 38,804 0 0 Investment Interest 456 833 1,961 600 3,500 Transfer in-#001 0 0 15,043 258,000 0 456 833 55,808 258,600 3,500 123-Civic Facilities Replacement Fund Investment Interest 1,083 1,323 696 0 0 1,083 1,323 696 0 0 204-Debt Service-LTGO 03 Fund 2014 LTGO Bond proceeds 7,660,694 0 0 0 0 Facilities District Revenue 423,844 373,800 380,300 379,750 414,050 Transfers in-#001 0 0 198,734 430,630 399,350 Transfers in-#301 89,559 82,150 83,400 103,511 82,000 Transfers in-#302 89,559 82,150 83,400 103,510 82,000 8,263,656 538,100 745,834 1,017,401 977,400 45 CITY OF SPOKANE VALLEY,WA 2018 Budget-Other Funds Detail Revenues by Type 2014 2015 2016 2017 2018 Amended Proposed Actual Actual Actual Budget Budget 301-REET 1 Capital Projects Fund REET 1 -1st Quarter Percent 790,781 1,065,789 1,176,911 1,000,000 800,000 Investment Interest 793 1,653 7,609 1,700 7,500 791,574 1,067,442 1,184,520 1,001,700 807,500 302-REET 2 Capital Projects Fund REET 2-2nd Quarter Percent 776,648 1,065,789 1,176,911 1,000,000 800,000 Investment Interest 909 1,662 8,189 1,700 8,000 777,557 1,067,451 1,185,100 1,001,700 808,000 303-Street Capital Projects Fund Grant Proceeds 1,825,974 8,223,959 4,951,033 4,286,300 8,919,182 Developer Contributions 541 363,894 151,600 970,966 65,212 Transfers in-#101 5,038 123,955 0 0 0 Transfers in-#301 Capital Projects 58,607 567,113 579,636 437,002 1,048,852 Transfers in-#302 Special Capital Projects 501,736 331,099 164,151 1,173,230 1,003,544 Transfers in-#312 Appleway Landscaping 253,645 0 0 0 0 Transfers in-#312 Sullivan Rd W Bridge 443,688 42,730 2,022,865 450,000 0 Transfers in-#312 Euclid Ave-Flora to Barker 0 0 26,326 1,773,671 5,000 Transfers in-#312 8th&Carnahan Intersection 0 0 11,687 238,320 0 Transfers in-#312 Indiana bus stops&crosswalk: 0 0 0 0 110,000 Miscellaneous 21 87 29 0 0 3,089,249 9,652,837 7,907,327 9,329,489 11,151,790 309-Parks Capital Projects Fund Grant Proceeds 0 1,560 209,784 1,863,267 1,693,200 Contributions and Donations 7,850 0 0 0 0 Investment Interest 444 813 723 800 0 Transfers in-#001 242,298 115,575 230,300 160,000 560,000 Transfers in-#103 50,000 0 9,300 0 0 Transfers in-#105 0 68,000 58,388 0 0 Transfers in-#312 911,433 524,812 37,132 298,215 324,100 1,212,025 710,760 545,627 2,322,282 2,577,300 310-Civic Facilities Capital Projects Fund Sale of land 839,285 0 0 0 0 Investment Interest 1,193 2,113 5,145 7,500 5,900 Transfers in-#001 Future C.H.bond pmt>$424.6k lease pmt 0 67,600 67,600 0 0 Future C.H.o&m costs 0 271,700 276,600 0 0 Transfers in-#312 0 58,324 0 0 0 840,478 399,737 349,345 7,500 5,900 311-Pavement Preservation Fund Grants 2,042,715 835,224 1,654,698 340,800 2,572,500 Investment Interest 1,853 3,389 7,519 0 0 Transfers in-#001 888,823 920,000 943,800 953,200 962,700 Transfers in-#101 282,000 206,618 67,342 67,342 67,342 Transfers in-#123 616,284 616,284 559,804 0 0 Transfers in-#301 184,472 251,049 365,286 660,479 685,329 Transfers in-#302 184,472 251,049 365,286 660,479 685,329 4,200,619 3,083,613 3,963,735 2,682,300 4,973,200 312-Capital Reserve Fund Developer Contributions 4,675 0 0 0 0 Investment Interest 0 0 16,028 1,000 16,000 Transfers in-#001 2,443,507 1,783,512 1,828,723 3,003,929 1,000,000 Transfers in-#313 0 0 0 0 74,960 2,448,182 1,783,512 1,844,751 3,004,929 1,090,960 313-City Hall Construction Fund Investment Interest 0 0 26,536 27,000 0 Transfers in-#312 0 5,162,764 0 0 0 0 5,162,764 26,536 27,000 0 46 CITY OF SPOKANE VALLEY,WA 2018 Budget-Other Funds Detail Revenues by Type 2014 2015 2016 2017 2018 Amended Proposed Actual Actual Actual Budget Budget 314-Railroad Grade Separation Projects Fund Grant Proceeds 0 0 0 300,000 1,919,921 Transfers in-#001 0 0 3,893 1,200,000 0 Transfers in-#301 0 0 12,975 50,000 0 Transfers in-#312 0 0 0 483,000 0 0 0 16,868 2,033,000 1,919,921 402-Stormwater Management Fund Stormwater Management Fee 1,865,413 1,861,368 1,898,210 1,860,000 1,870,000 Grant Proceeds 76,097 423,332 61,403 210,000 65,000 Developer Contributions 51,492 0 0 0 0 Miscellaneous Revenue 1,500 0 0 0 0 Investment Interest 1,342 2,455 7,690 2,500 7,500 Transfers in-#403 0 120,000 0 0 0 1,995,844 2,407,155 1,967,303 2,072,500 1,942,500 403-Aquifer Protection Area Fund Spokane County 461,828 533,593 388,590 460,000 460,000 Grant Proceeds 699,913 1,036,603 0 0 0 Investment Interest 0 0 2,590 0 0 Transfers in-#402(DOE for Decant Proj) 50,125 0 0 0 0 1,211,866 1,570,196 391,180 460,000 460,000 501-Equipment Rental&Replacement Fund Investment Interest 792 1,449 4,395 2,000 4,000 Interfund Equip&Vehicle Lease 102,744 35,544 106,000 146,429 141,929 Transfers in-#001 (CenterPlace kitchen reserve) 0 0 0 36,600 36,600 Transfers in-#101 25,849 0 0 0 0 Transfers in-#402 25,843 0 0 0 0 155,228 36,993 110,395 185,029 182,529 502-Risk Management Fund Transfers in-#001 325,000 325,000 325,000 350,000 370,000 Investment Interest 5 8 423 0 0 325,005 325,008 325,423 350,000 370,000 Total of"Other Fund"Revenues 30,300,120 33,283,939 26,164,645 31,426,398 32,714,900 General Fund Revenues 38,396,727 39,384,771 42,983,043 42,227,625 43,048,025 Total Revenues 68,696,847 72,668,711 69,147,687 73,654,023 75,762,925 47 CITY OF SPOKANE VALLEY,WA 2018 Budget Expenditures by Fund and Department General Fund Council $ 548,494 City Manager 956,245 City Attorney 599,561 Public Safety 25,564,251 Operations&Administrative Deputy City Manager 462,363 Finance 1,339,064 Human Resources 275,387 City Hall Operations and Maintenance 306,043 Community&Public Works Engineering 1,572,947 Economic Development 1,020,642 Building and Planning 2,265,677 Parks&Recreation Administration 301,083 Maintenance 893,700 Recreation 260,574 Aquatics 492,900 Senior Center 98,229 CenterPlace 963,468 General Government 4,705,260 Total General Fund $ 42,625,888 Other Funds 101 Street Fund $ 4,602,291 103 Paths&Trails Fund 0 104 Hotel/Motel Tax-Tourism Facilities Fund 0 105 Hotel/Motel Tax Fund 602,000 106 Solid Waste 225,000 107 PEG Fund 71,200 120 CenterPlace Operating Reserve Fund 0 121 Service Level Stabilization Fund 0 122 Winter Weather Reserve Fund 500,000 204 LTGO Bond Debt Service Fund 977,400 301 REET 1 Capital Projects Fund 1,816,181 302 REET 2 Capital Projects Fund 1,770,873 303 Street Capital Projects Fund 11,151,790 309 Parks Capital Projects Fund 2,441,300 310 Civic Facilities Capital Projects Fund 0 311 Pavement Preservation 4,058,600 312 Capital Reserve Fund 439,100 313 City Hall Construction Fund 74,960 314 Railroad Grade Separation Projects 2,919,921 402 Stormwater Management Fund 2,299,089 403 Aquifer Protection Area 400,000 501 Equipment Rental&Replacement(ER&R) 20,000 502 Risk Management Fund 370,000 Total Other Funds $ 34,739,705 Total All Funds $ 77,365,593 48 0 IP co a) L U CC N. 06 CO L o_ (1 Al Y c E Y E lH 1 N CO (/) O a) a a, To WC C7 J J Q • W 00 00 Z C Lfl v Q 3lD N LL CL• CO LL c O °1 ›- w O r-I U N a) > 4I U a1 FIS'". 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� O (0 V j Q s- CO LL Q 7 L CO ° 64 ( W N ' Ln O M ' N- CO N- N N- CO O ' 0 0) 0) 0 CO :,= 0) 0) 0 CO 0 0) N- ' CO Ln N- CO N- N 0) in o X .- - ' O ' up o °) N- CO V ,- N N- - x" C• ~-Ca M N Cfl M 00 00 V O V O M V O M N co N- O Ln O Ln O N N- N- Ln CO 0) 0 CO o N 00 Ln CO CO N ,- V (0 CO N ,- Ln CO N T - CO- - 0) m N d ce5 ER 64 0) ° C m C 0) ° C > Y N O C E CD&- al � C C 'iE O N m ° Q C C .E wc U C = N N ° E m E U 7 - d > a ., c C a) >, dS w ° dS )0 c c) m c c C c°) > 'V O) ° 0) U) 0 Q' °- :._ ° m ° m .° 0) m 0 C m C io c a) O a) E rn N c c0i (� a (7 o m ° g c m m c c ° c °z5 .c ° ° m U Q .° m Q m E i E .rn o = w E .c ° (Ts 'E C a`) m C 7 C ° 7 `1 -0 m 0) a 0) 0) p >' >' 3 ° o ii = >' owwm � Q2EEtQcnU o H CITY OF SPOKANE VALLEY, WA 2018 Budget General Fund Department Changes from 2017 to 2018 Difference Between 2017 2018 2017 and 2018 Amended Increase (Decrease) Budget Budget $ City Council Wages, Payroll Taxes & Benefits 230,922 233,194 2,272 0.98% Supplies 4,550 4,950 400 8.79% Services & Charges 307,400 310,350 2,950 0.96% Total 542,872 548,494 5,622 1.04% City Manager Wages, Payroll Taxes & Benefits 655,325 877,105 221,780 33.84% Supplies 3,300 4,300 1,000 30.30% Services & Charges 65,810 74,840 9,030 13.72% Total 724,435 956,245 231,810 32.00% City Attorney Wages, Payroll Taxes & Benefits 434,041 506,481 72,440 16.69% Supplies 2,105 1,951 (154) (7.32%) Services & Charges 79,848 86,320 6,472 8.11% Total 515,994 594,752 78,758 15.26% Public Safety Non-Departmental (Fines & Forfeits) 602,250 579,750 (22,500) (3.74%) Wages/Payroll Taxes/Benefits 3,000 3,000 0 0.00% Supplies 26,500 25,500 (1,000) (3.77%) Other Services and Charges 340,315 296,715 (43,600) (12.81%) Intergovernmental Services 23,978,307 24,559,286 580,979 2.42% Total 24,950,372 25,464,251 513,879 2.06% Deputy City Manager Wages, Payroll Taxes & Benefits 672,977 358,493 (314,484) (46.73%) Supplies 2,000 2,000 0 0.00% Services & Charges 77,300 90,170 12,870 16.65% Total 752,277 450,663 (301,614) (40.09%) Finance/IT Wages, Payroll Taxes & Benefits 1,252,460 1,308,614 56,154 4.48% Supplies 6,000 6,450 450 7.50% Services & Charges 24,000 24,000 0 0.00% Total 1,282,460 1,339,064 56,604 4.41% Human Resources Wages, Payroll Taxes & Benefits 237,356 254,577 17,221 7.26% Supplies 730 580 (150) (20.55%) Services & Charges 24,331 20,230 (4,101) (16.86%) Total 262,417 275,387 12,970 4.94% Public Works Wages, Payroll Taxes & Benefits 845,082 0 (845,082) (100.00%) Supplies 14,750 0 (14,750) (100.00%) Services & Charges 61,800 0 (61,800) (100.00%) Total 921,632 0 (921,632) (100.00%) (Continued to next page) 52 CITY OF SPOKANE VALLEY, WA 2018 Budget General Fund Department Changes from 2017 to 2018 Difference Between 2017 2018 2017 and 2018 Amended Increase (Decrease) Budget Budget $ (Continued from previous page) City Hall Operations & Maintenance Wages, Payroll Taxes & Benefits 98,818 100,943 2,125 2.15% Supplies 30,000 30,000 0 0.00% Services & Charges 175,100 175,100 0 0.00% Total 303,918 306,043 2,125 0.70% Community & Public Works - Engineering Wages, Payroll Taxes & Benefits 0 1,424,787 1,424,787 0.00% Supplies 0 27,750 27,750 0.00% Services & Charges 0 120,410 120,410 0.00% Total 0 1,572,947 1,572,947 0.00% Community & Public Works - Economic Dev Wages, Payroll Taxes & Benefits 0 679,852 679,852 0.00% Supplies 0 3,040 3,040 0.00% Services & Charges 0 287,750 287,750 0.00% Total 0 970,642 970,642 0.00% Community & Public Works - Building & Planning Wages, Payroll Taxes & Benefits 0 1,876,477 1,876,477 0.00% Supplies 0 44,200 44,200 0.00% Services & Charges 0 325,000 325,000 0.00% Intergovernmental Services 0 20,000 20,000 0.00% Total 0 2,265,677 2,265,677 0.00% Community Dev.-Admin Wages, Payroll Taxes & Benefits 206,762 0 (206,762) (100.00%) Supplies 3,100 0 (3,100) (100.00%) Services & Charges 18,600 0 (18,600) (100.00%) Total 228,462 0 (228,462) (100.00%) Community Dev.-Economic Development Wages, Payroll Taxes & Benefits 420,432 0 (420,432) (100.00%) Supplies 1,100 0 (1,100) (100.00%) Services & Charges 271,300 0 (271,300) (100.00%) Total 692,832 0 (692,832) (100.00%) Community Dev.-Dev. Sery Wages, Payroll Taxes & Benefits 1,133,484 0 (1,133,484) (100.00%) Supplies 16,550 0 (16,550) (100.00%) Services & Charges 263,350 0 (263,350) (100.00%) Intergovernmental Services 20,000 0 (20,000) (100.00%) Total 1,433,384 0 (1,433,384) (100.00%) (Continued to next page) 53 CITY OF SPOKANE VALLEY, WA 2018 Budget General Fund Department Changes from 2017 to 2018 Difference Between 2017 2018 2017 and 2018 Amended Increase (Decrease) Budget Budget $ (Continued from previous page) Community Dev.-Buildinq Wages, Payroll Taxes & Benefits 1,370,734 0 (1,370,734) (100.00%) Supplies 32,700 0 (32,700) (100.00%) Services & Charges 78,300 0 (78,300) (100.00%) Total 1,481,734 0 (1,481,734) (100.00%) Parks & Rec-Admin Wages, Payroll Taxes & Benefits 243,514 254,133 10,619 4.36% Supplies 7,400 7,600 200 2.70% Services & Charges 45,850 39,350 (6,500) (14.18%) Total 296,764 301,083 4,319 1.46% Parks & Rec- Maintenance Wages, Payroll Taxes & Benefits 0 0 0 0.00% Supplies 5,500 7,500 2,000 36.36% Services & Charges 855,850 886,200 30,350 3.55% Total 861,350 893,700 32,350 3.76% Parks & Rec- Recreation Wages, Payroll Taxes & Benefits 178,945 189,274 10,329 5.77% Supplies 8,200 7,750 (450) (5.49%) Services & Charges 59,150 63,550 4,400 7.44% Total 246,295 260,574 14,279 5.80% Parks & Rec-Aquatics Wages, Payroll Taxes & Benefits 0 0 0 0.00% Supplies 3,200 3,300 100 3.13% Services & Charges 494,150 489,600 (4,550) (0.92%) Total 497,350 492,900 (4,450) (0.89%) Parks & Rec- Senior Center Wages, Payroll Taxes & Benefits 89,416 91,729 2,313 2.59% Supplies 1,600 1,600 0 0.00% Services & Charges 4,900 4,900 0 0.00% Total 95,916 98,229 2,313 2.41% Parks & Rec- CenterPlace Wages, Payroll Taxes & Benefits 502,139 503,499 1,360 0.27% Supplies 73,524 73,524 0 0.00% Services & Charges 326,295 333,445 7,150 2.19% Total 901,958 910,468 8,510 0.94% (Continued to next page) 54 CITY OF SPOKANE VALLEY, WA 2018 Budget General Fund Department Changes from 2017 to 2018 Difference Between 2017 2018 2017 and 2018 Amended Increase (Decrease) Budget Budget $ (Continued from previous page) General Government Wages, Payroll Taxes & Benefits 0 0 0 0.00% Supplies 145,450 104,450 (41,000) (28.19%) Services & Charges 756,900 754,660 (2,240) (0.30%) Intergovernmental Services 328,500 332,500 4,000 1.22% Capital outlays 10,000 70,000 60,000 600.00% Total 1,240,850 1,261,610 20,760 1.67% Transfers out-#204 430,630 399,350 (31,280) (7.26%) Transfers out -#309 160,000 160,000 0 0.00% Transfers out-#311 Pavement Preservation 953,200 962,700 9,500 1.00% Transfers out -#501 36,600 36,600 0 0.00% Transfers out-#502 350,000 370,000 20,000 5.71% Total recurring expenditures 40,163,702 40,891,379 727,677 1.81% Summary by Category Wages, Payroll Taxes & Benefits 8,575,407 8,662,158 86,751 1.01% Supplies 388,259 356,445 (31,814) (8.19%) Services & Charges 4,330,549 4,382,590 52,041 1.20% Transfers out-#204 430,630 399,350 (31,280) (7.26%) Transfers out -#309 160,000 160,000 0 0.00% Transfers out-#311 953,200 962,700 9,500 1.00% Transfers out -#501 36,600 36,600 0 0.00% Transfers out-#502 350,000 370,000 20,000 5.71% Non-Departmental (fines &forfeits) 602,250 579,750 (22,500) (3.74%) Intergovernmental Svc (public safety) 23,978,307 24,559,286 580,979 2.42% Intergovernmental Svc 348,500 352,500 4,000 1.15% Capital outlay 10,000 70,000 60,000 600.00% 40,163,702 40,891,379 727,677 1.81% 55 Fund:001 General Fund Spokane Valley Dept: 011 Legislative Branch 2018 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 2017 • Continued to work with legislators towards obtaining financial assistance for the Barker and Pines Grade Separation Projects. In the 2017 WA State Legislative Session,our local legislative delegation was successful in obtaining $1.5 million towards the Barker Project and the inclusion of$540,000 in the State Capital Budget for Appleway Trail amenities. • Approved a 10-year solid waste collection contract valued at approximately$120 million(ignoring inflation)that will save the community an estimated$14.8 million. • Approved an Interlocal Agreement with Spokane County for the continuation of the provision of law enforcement services through the Spokane County Sheriffs Department that will run through 2022. This updated agreement incorporated eleven goals the Council approved in July 2016. • Approved a City reorganization that resulted in the combination of the Public Works and Community Development Departments that resulted in the reduction of.65 FTEs. Goals for 2018 • Continue to work with state and federal legislators towards obtaining financial assistance for the Barker and Pines Grade Separation Projects. • Continue to pursue a plan to sustain the City's Pavement Preservation Program,to include sustained financing in Street Fund#101 and Pavement Preservation Fund#311. • Pursue a strategic plan for financing and completing all grade separation project. • Pursue state and federal financial assistance to address transportation concerns along the entire Barker Corridor. • Pursue financing for Browns Park, Balfour Park,and Appleway Trail amenities,and continue the acquisition of park land. • Continue and expand where possible economic development efforts. Complete the development of implementation strategies for the retail and tourism studies that were completed in 2016. • Foster relationships with federal,state and local legislators including the Spokane County Board of Commissioners. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Mayor 1.0 1.0 1.0 1.0 1.0 Council 6.0 6.0 6.0 6.0 6.0 Total FTEs 7.0 7.0 7.0 7.0 7.0 Budget Detail Wages,Payroll Taxes&Benefits $ 191,856 $ 206,705 $ 204,931 $ 230,922 $ 233,194 Supplies 2,379 2,908 4,535 4,550 4,950 Services&Charges 211,573 157,665 166,826 307,400 310,350 Total Legislative Branch $ 405,808 $ 367,278 $ 376,292 $ 542,872 $ 548,494 56 Fund:001 General Fund Spokane Valley Dept:013 Executive Branch 2018 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 2017 • Worked to support the City Council's 2017 Goals as referenced in the Legislative Branch Budget. • Prepared a 2018 Budget that maintained existing levels of service and provided modest program enhancements with an increase to General Fund recurring expenditures of just 1.81%. • Worked with all City departments to update the 2018 Business Plan that is a guide to the development of the 2018 Budget which is accomplished by linking together community priorities,financial projections and City Council goals. • Worked with State Lobbyists on behalf of City interests. • Prepared a 2018 Council Legislative Agenda that was discussed by Council on three separate occasions. This was followed by a separate meeting with our local legislative delegation where the Councilmembers and Legislators discussed areas of common interest,including our legislative agenda. • Working with the Finance Department,provided updated financial information to Moody's Investors service which lead to an upgrade to the City's bond rating from"Aa3"to"Aa2". • Led a Library Ad Hoc Committee composed of both Staff and Elected representatives of both the City and Spokane County Library District(SCLD)whose mission was to work towards a plan that advanced the design and eventual construction of a library structure at the corner of Sprague and Herald. In 2017 this led to a five-year extension of an Interlocal Agreement(now running through October 2022)between the City and the SCLD that gives them time to develop a plan on how to proceed with a process that leads to a library design and eventual passage of a voted bond issue. • Worked with the City Attorney's Office and other staff through a competitive bid process for a solid waste collection contract.This ultimately lead to Council's award of a ten-year collection contract valued at approximately$120 million (ignoring inflation)and a savings to the community of$14.8 million. • Following Council's July 2016 adoption of eleven specific law enforcement service goals,worked with a team of City employees and representatives of the Spokane County Sheriffs Department to successfully negotiate a contract extension that runs through December 2022. • Worked with the Deputy City Manager on a reorganization that combined the Public Works and Community and Economic Development Departments. • Provided leadership support for the strengthening and promotion of Spokane Valley's core values and fiscal policies. Goals for 2018 • Work to support City Council's 2018 Goals as referenced under the Legislative Budget. • Present Council with a balanced 2019 Budget. • Work with Federal and State Lobbyists on behalf of the interests of our City. • Prepare the Legislative Agenda for Council consideration. • Continue efforts to support economic development. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents City Manager 1.0 1.0 1.0 1.0 1.0 City Clerk 1.0 1.0 1.0 1.0 1.0 Deputy City Clerk 1.0 1.0 1.0 1.0 1.0 Administrative Analyst 0.0 0.0 0.0 0.0 1.0 Senior Administrative Analyst 0.0 0.0 0.0 0.0 1.0 Administrative Assistant(CC) 1.0 1.0 1.0 1.0 1.0 Executive Assistant(CM) 1.0 1.0 1.0 1.0 1.0 Total FTEs 5.0 5.0 5.0 5.0 7.0 Budget Detail Wages,Payroll Taxes&Benefits $ 596,336 $ 604,629 $ 785,184 $ 655,325 $ 877,105 Supplies 629 2,169 1,014 3,300 4,300 Services&Charges 38,639 58,211 30,804 65,810 74,840 Nonrecurring expenses 0 3,161 453,116 0 0 Total City Manager Division $ 635,604 $ 668,170 $ 1,270,118 $ 724,435 $ 956,245 57 Fund:001 General Fund Spokane Valley Dept:013 2018 Budget Executive Branch 015-City Attorney Division Accomplishments for 2017 • Assisted in conducting RFP for solid waste collection services and negotiating,drafting,and executing solid waste collection contract with Waste Management. • Drafted new sidewalk snow removal provisions;primary staff liaison to sidewalk snow ad hoc committee. • Advised on various issues arising in the proposed Painted Hill development. • Participated on the City negotiation team for amendments to the law enforcement interlocal agreement. • Advised on issues relating to the 2017 legislative agenda. • Advised on many issues relating to completion of the Sullivan Bridge. • Members of the new City Hall construction management team. • Drafted a model franchise and development regulations relating to small cell technology. • Reviewed and advised on numerous public record requests and related issues. • Provided training for Council and staff on a range of issues. • 16th/17th Avenue property clean-ups;implemented new procedure to secure and abate unsafe dwellings. Goals for 2018 • 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 2017 Legislative Agenda. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents City Attorney 1.0 1.0 1.0 1.0 1.0 Deputy City Attorney 1.0 1.0 1.0 1.0 1.0 Attorney 0.0 0.0 0.0 0.0 0.5 Administrative Assistant-Legal 1.0 1.0 1.0 1.0 1.0 Total FTEs 3.0 3.0 3.0 3.0 3.5 Interns 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 357,098 $ 374,113 $ 407,008 $ 434,041 $ 506,481 Supplies 2,158 700 623 2,105 1,951 Services&Charges 87,532 83,954 80,362 79,848 86,320 Nonrecurring expenses 0 0 0 0 4,809 Total City Attorney Division $ 446,788 $ 458,767 $ 487,993 $ 515,994 $ 599,561 58 Fund:001 General Fund Spokane Valley Dept:016 Public Safety 2018 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 $ 2,162,676 to provide municipal court services. The contract provides for the services of judge and court commissioner with related support staff. Budgeted amount also includes jury management fees. Law Enforcement- The Spokane County Sheriffs Office is 20,813,348 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 1,588,841 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 299,636 services to include licensing,care and treatment of lost or stray animals,and response to potentially dangerous animal confrontations. Non-Departmental Fines and forfeitures to the State of Washington 579,750 Grant expenditures 20,000 Total Recurring Expenditures 25,464,251 Nonrecurring Expenditures: Capital outlay-Full facility generator 100,000 Total Recurring and Nonrecurring Expenditures $25,564,251 59 City of Spokane Valley 2018 Budget 016-Public Safety 2014 2015 2016 2017 2018 Actual Actual Budget Budget Budget Recurring: Judicial System: District Court Contract $ 820,628 $ 656,129 $ 658,049 $ 769,083 $ 679,191 Public Defender Contract 649,831 710,289 649,831 721,630 785,359 Prosecutor Contract 410,196 479,782 534,942 542,747 558,234 Pretrial Services Contract 117,048 131,041 133,275 135,432 139,892 Subtotal Judicial System 1,997,703 1,977,241 1,976,097 2,168,892 2,162,676 Law Enforcement System: Sheriff Contract 17,731,187 18,205,133 18,361,356 20,036,884 20,408,504 Emergency Management Contract 82,237 88,070 87,705 89,371 99,629 Wages, Payroll Taxes&Benefits 6,506 2,617 2,375 3,000 3,000 Operating Supplies 3,388 2,144 3,092 4,000 3,500 Repair&Maintenance.Supplies 3,343 2,007 994 2,500 2,000 Professional Services 0 1,334 0 0 0 Postage 0 0 3,316 0 0 Electricity/Gas 20,887 18,953 16,976 22,000 20,000 Water 1,497 1,275 1,366 1,600 1,500 Sewer 850 995 2,307 2,500 2,500 Waste Disposal 3,462 3,372 3,400 3,500 3,500 Law Enf. Bldg Maintenance Contract 58,331 76,076 61,814 70,000 68,500 Taxes and Assessments 715 715 715 715 715 Miscellaneous Services/Contingency 250 550 0 180,000 200,000 Crywolf Charges&Fees 48,348 48,419 43,792 50,000 0 Umpqua Bank Fees 5,726 9,418 8,789 10,000 0 Subtotal Law Enforcement System 17,966,727 18,461,078 18,597,997 20,476,070 20,813,348 Jail System: Jail Contract 996,557 1,213,502 1,322,894 1,389,039 1,588,841 Work Release(Geiger) 151,158 0 0 0 0 Subtotal Jail System 1,147,715 1,213,502 1,322,894 1,389,039 1,588,841 Other: Fines&Forfeitures State Remittance 637,014 587,446 561,476 602,250 579,750 Animal Control Contract 287,081 290,228 291,209 294,121 299,636 Non-Capital Equipment for JAG Grant 0 4,579 0 20,000 20,000 Settle&Adjust 0 (753,653) 0 0 0 Non-Capital Equipment for 2011 JAG Grant 8,010 0 0 0 0 Non-Capital Equipment for 2013 JAG Grant 20,495 0 0 0 0 Non-Capital Equipment for WAS PC Grant 6,020 0 0 0 0 JAG-Wireless Cards 3,979 0 0 0 0 SVPD Wireless Cards 434 0 0 0 0 Travel/Mileage/Meals 0 74 0 0 0 Nighttime Seatbelt Patrol Overtime 1,647 0 0 0 0 Drive Hammered-Get Nailed Grant 19,802 8,743 0 0 0 Office Furniture&Equipment 0 36,823 67,187 0 0 Distracted Driving 0 331 0 0 0 Click it or Ticket 0 714 0 0 0 TZT seatbelt patrols 0 724 0 0 0 Subtotal Other 984,482 176,009 919,872 916,371 899,386 Subtotal Recurring 22,096,627 21,827,830 22,816,860 24,950,372 25,464,251 Nonrecurring: Building Repair and Maintenance 22,159 8,863 56,934 0 0 LEC Labor Contract Settlement 0 224,244 0 0 0 Full Facility Generator 0 0 0 0 100,000 Capital outlay-CAD/RMS 7,468 294,575 177,126 145,000 0 Subtotal Nonrecurring 29,627 527,682 234,060 145,000 100,000 Total Public Safety $22,126,254 $22,355,512 $23,050,920 $25,095,372 $25,564,251 60 O L co Uca L N.] Eall U c Q _ U 2 Co C 05 O Co 0 'ca —) D a) -0 U CD m C U CD ctl Lf) C +L- a) C C6 I LJ C O .El U N ca J M }+ C U a) +J 73 a) C U CN a) 8 al Encs)C a Ca) c O Tri W w 2 U cD t — U co• s- O Y co m CD 0 CO U O G) N a) r.+ L >+ a) _ U) U - L M M - = N U L- 00 O a0 a) C r Lf) O O O "0( U N L a) Ln C U M 11 a) L.6 0 C oc)N = O U d = • • O U U E • U C • C O 7) U 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 6 6 6 6 0 0 0 0 0 0 0 0 0 0 L. 6 L. 6 L.6 � � EA- EA- EA- Fund:001 General Fund Spokane Valley Dept:018 Operation&Administrative Services 2018 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 2017 • Worked to support the 2017 Goals of the Legislative and Executive Branch. • Worked with the City Manager to develop and implement a reorganization that combined the Public Works and Community and Economic Development Departments.This resulted in a reduction of.65 FTEs and reduced payroll costs by approximately$200,000.The end result was the creation of three separate but interlinked divisions including: --Building and Planning --Engineering(including Street Maintenance in Fund#101) --Economic Development • Coordinated the efforts of the City Hall construction and moving teams that led to the completion of the project within budget in terms of both time and cost. • Directed the City's Economic Development program which included: --Strategic initiatives to prepare the City's Northeast Industrial Area for development including creating a streamlined permitting process and extending critical infrastructure into the area. --Coordinated with Spokane County to not only extend sewer service within City roads but also to future industrial developments. --Completed the 2017 marketing program which included the development of a dedicated economic development website. --Continued recruitments for two large industrial projects. --Improved the 6 year Transportation Improvement Plan development process. • Directed the Engineering Division and recruited a City Engineer • Began the design process for the Barker and Pines Grade Separation Projects. • Improved the City's relationship with the Washington State Department of Transportation. • Oversaw the completion of the Sullivan Road Bridge Project. • Reviewed the Pavement Management Program and initiated improvements for determining the City's financial needs. • Completed the environmental determination process for the Painted Hills development. Goals for 2018 • Support the 2018 Goals of the Legislative and Executive Branch. • Work with the City Manager and Staff to develop the 2019 Business Plan. • Continue to improve staff communication and efficiency as part of the 2017 reorganization. • Complete the recruitment processes for ongoing large industrial projects. • Complete the designs for the Barker and Pines Grade Separation Projects. • Determine the City's financial need for the Pavement Management Program. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Deputy City Manager 1.0 1.0 1.0 1.0 1.0 Senior Administrative Analyst 1.0 1.0 1.0 1.0 0.0 Public Information Officer 1.0 1.0 1.0 1.0 0.0 Administrative Analyst 1.0 1.0 1.0 1.0 0.0 Office Assistant I 1.0 1.0 1.0 1.0 1.0 Office Assistant II 1.0 1.0 1.0 1.0 1.0 Total FTEs 6.0 6.0 6.0 6.0 3.0 Intern 1.0 1.0 1.0 1.0 0.0 Budget Detail Wages,Payroll Taxes&Benefits $ 496,278 $ 612,576 $ 518,914 $ 672,977 $ 358,493 Supplies 2,519 1,089 1,137 2,000 2,000 Services&Charges 36,663 59,134 89,147 77,300 90,170 Nonrecurring Software Purchase(Q-Alert) 0 0 0 0 11,700 Total Deputy City Manager Division $ 535,460 $ 672,799 $ 609,198 $ 752,277 $ 462,363 62 Fund:001 General Fund Spokane Valley Dept:018 Operation&Administrative Services 2018 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 2017 • Implemented audit recommendations. • Improved accuracy in the financial statement preparation process. • Completed the 2016 CAFR by May 30,2017,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. • Worked with all City departments for a seamless physical and technological transfer of operations to the new City Hall building. • Acquired and installed equipment necessary for the broadcast of City Council meetings in the Council Chambers of the new City Hall building. Goals for 2018 • 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. • 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. • Complete the 2017 Annual Financial Report by May 30,2018,and receive a"clean audit opinion"from the Washington State Auditor's Office. • 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. • Update the existing inventory of all related equipment currently deployed including when it was acquired,its expected useful life,anticipated replacement date,and replacement cost. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Finance Director 1.00 1.00 1.00 1.00 1.00 Accounting Manager 1.00 1.00 1.00 1.00 1.00 Accountant/Budget Analyst 3.75 3.75 3.75 3.75 3.75 Accounting Technician 2.00 2.00 2.00 2.00 2.00 IT Specialist 2.00 2.00 2.00 3.00 3.00 GIS/Database Administrator 1.00 1.00 1.00 1.00 1.00 Help Desk Technician 1.00 1.00 1.00 0.00 0.00 Total FTEs 11.75 11.75 11.75 11.75 11.75 Budget Detail Wages,Payroll Taxes&Benefits $ 1,057,271 $ 1,028,666 $ 1,149,070 $ 1,252,460 $ 1,308,614 Supplies 4,946 2,826 5,147 6,000 6,450 Services&Charges 36,520 30,817 19,181 24,000 24,000 Total Finance Division $ 1,098,737 $ 1,062,309 $ 1,173,398 $ 1,282,460 $ 1,339,064 63 Fund:001 General Fund Spokane Valley Dept:018 Operation&Administrative Services 2018 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 2017 • Provided support and guidance to employees and managers through the reorganization of Public Works and CED. • Evaluated Employee risk codes in compliance with State Labor and Industries. • Achieved the AWC WeIlCity Award for the 6th consecutive year. • Coordinated Active Shooter and Personal Safety training for Staff. • Assisted Council with the development of the City Manager review process. Goals 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 WeIlCity Award. • Support City departments in changes due to City Hall relocation. • Provide Employee Ethics training to City Staff. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Human Resource Manager 1.0 1.0 1.0 1.0 1.0 Human Resource Technician 1.0 1.0 1.0 1.0 1.0 Total FTEs 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 208,063 $ 216,518 $ 226,290 $ 237,356 $ 254,577 Supplies 679 434 234 730 580 Services&Charges 20,941 18,648 15,710 24,331 20,230 Total Human Resources Division $ 229,683 $ 235,600 $ 242,234 $ 262,417 $ 275,387 64 Fund:001 General Fund Spokane Valley Dept:032 Public Works 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Public Works Director 1.0 1.0 1.0 1.0 0.0 Administrative Assistant 2.0 2.0 2.0 2.0 0.0 Capital Improvements Program Manager 0.0 0.0 1.0 1.0 0.0 Engineer 1.0 1.0 1.0 1.0 0.0 Engineering Technician I 2.0 2.0 2.0 2.0 0.0 Engineering Technician ll 1.0 1.0 1.0 1.0 0.0 MaintlConst Inspector 0.5 0.5 0.5 0.5 0.0 Planning Grants Engineer 0.375 0.375 0.375 0.375 0.0 Senior Engineer 2.0 1.0 0.0 0.0 0.0 Senior Engineer-Proj Mgmt 1.0 2.0 2.0 2.0 0.0 Total FTEs 10.875 10.875 10.875 10.875 0.0 Budget Detail Wages,Payroll Taxes&Benefits $ 647,097 $ 684,666 $ 660,386 $ 845,082 $ 0 Supplies 10,481 11,149 9,209 14,750 0 Services&Charges 51,768 42,913 102,733 61,800 0 Nonrecurring expenses 9,540 0 0 0 0 Total Public Works $ 718,886 $ 738,728 $ 772,328 $ 921,632 0 65 Fund:001 General Fund Spokane Valley Dept:033 City Hall Operations and Maintenance 2018 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 in June of 2016 and was completed in the Fall of 2017.The building is located on a 3.38 acre site at the southeast corner of Sprague Avenue and Dartmouth Road.The City Hall Operations and Maintenance Department will be responsible for,among other things,the grounds maintenance,janitorial services,and maintenance of the HVAC and other building systems.This department will also be responsible for the operations and maintenance of other City facilities,such as the Valley Precinct and the Street Maintenance Shop,as time allows. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Budget Budget Budget Personnel-FTE Equivalents Maintenance Worker-Facilities 0.0 0.0 0.0 1.0 1.0 Total FTEs 0.0 0.0 0.0 1.0 1.0 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 98,818 $ 100,943 Supplies 0 0 0 $ 30,000 $ 30,000 Services&Charges 0 0 0 $ 175,100 $ 175,100 Total Administrative Division $ 0 $ 0 $ 0 $ 303,918 $ 306,043 66 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2018 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 2017 • Implemented approved capital projects. • Administered and managed state and federal funds received for capital projects. • Assisted with the development of the updated Transportation Improvement Plan. • Assisted with the preparation of grant applications for capital projects. • Completed 2017 Pavement Preservation Projects as approved. • Participated in the update of the Eastern Washington Stormwater Manual. • Coordinated regional transportation issues with SRTC,adjoining municipalities,and WSDOT. • Provided high quality customer service by maintaining engineering/planning review times of less than 2 weeks. Goals for 2018 • Implement approved capital projects • Administer and manage state and federal funds received for capital projects. • Assist with the preparation of grant applications for capital projects. • Prepare final design for Barker Road and Pines Road Grade Separation Projects. • Continue work on permit process and customer service improvement. • Continue to coordinate regional transportation issues with SRTC,adjoining municipalities,and WSDOT. (continued on next page) 67 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2018 Budget (continued from prior page) Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents City Engineer 0.0 0.0 0.0 0.0 1.0 Administrative Assistant 0.0 0.0 0.0 0.0 2.0 Engineering Manager 0.0 0.0 0.0 0.0 1.0 Senior Engineer-Prodi Mgmt. 0.0 0.0 0.0 0.0 1.5 * Engineering Tech ll 0.0 0.0 0.0 0.0 0.5 * Engineering Tech I 0.0 0.0 0.0 0.0 1.0 * Senior Dev Engineer 0.0 0.0 0.0 0.0 1.0 Engineer 0.0 0.0 0.0 0.0 1.0 Main/Construction Inspector 0.0 0.0 0.0 0.0 2.0 Water Resource Sr.Engineer 0.0 0.0 0.0 0.0 1.0 Total FTEs 0.0 0.0 0.0 0.0 12.0 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 0 $ 1,424,787 Supplies 0 0 0 0 27,750 Services&Charges 0 0 0 0 120,410 Nonrecurring Items 0 0 0 0 0 Total Engineering Division $ 0 $ 0 $ 0 $ 0 $ 1,572,947 * 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. 68 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2018 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 2017 • Administered the annual Comprehensive Plan update process. • Developed the 2018-2023 Six-Year Transportation Improvement Program. • Coordinated the City's Pavement Management Program. • Authored the City's capital improvement grant applications. • Developed a Planned Action Ordinance for NE Industrial Area. • Worked with Spokane County to extend sewer to the NE Industrial Area. • Created SEPA infill exemption areas to streamline development. • Continued to implement the strategic marketing plan. • Provided information to the general public,media,outside agencies,and community agencies. • Continued to collaborate with economic development partners. • Provided technical support to recruit new industries. • Coordinated the Community Development Block Grant program. Goals for 2018 • Implement the retail recruitment strategy. • Develop a comprehensive prioritized Pavement Management Program. • Pursue infrastructure improvements to foster economic development. • Build and implement strategies to promote business growth. • Continue to implement the strategic marketing plan. • Strengthen relationships with our economic development partners. • Seek grants to support economic development initiatives. • Identify additional CDBG program opportunities. • Develop tools and programs to support small business retention and expansion. • Participate in regional economic,transportation,and planning committees. • Develop a long range capital improvement program that integrates transportation,water,stormwater,and other facility plans • Seek opportunities to implement the tourism strategy. • Partner and promote events such as Valleyfest,the Bike Swap,Crave NW,and Cycle Celebration. • Seek partnership opportunities with schools and workforce development agencies. • Continue to use strategic initiatives to recruit,expand,and retain businesses. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Economic Development Manager 0.0 0.0 0.0 0.0 1.0 Economic Development Specialist 0.0 0.0 0.0 0.0 2.0 Planning Grants Engineer 0.0 0.0 0.0 0.0 0.375 * Public Information Officer 0.0 0.0 0.0 0.0 1.0 Senior Transportation Planner 0.0 0.0 0.0 0.0 1.0 Office Assistant I 0.0 0.0 0.0 0.0 1.0 Total FTEs 0.0 0.0 0.0 0.0 6.375 Intern 0.0 0.0 0.0 0.0 1.0 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 0 $ 679,852 Supplies 0 0 0 0 2,500 Services&Charges 0 0 0 0 288,290 Nonrecurring-Retail Recruiter 0 0 0 0 50,000 Total Engineering Division $ 0 $ 0 $ 0 $ 0 $ 1,020,642 • Position is budgeted 37.5%here in the General Fund,37.5%in the Street Fund#101,and 25%in the Stormwater Fund#402 69 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2018 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 2017 •Created and implemented a customer service survey. •Improved residential building review at the Permit Center Counter with increased counter reviews performed by Permit Facilitators and creation of a Multiple Use Plan Program. •Developed Swimming Pool,ROW Process&Submittal Guide as informational bulletins for public assistance. •Maintained and enhanced partnerships with Spokane,Spokane County and outside review agencies. •Implemented Code Enforcement process changes to incorporate Office Assistant and Building Inspector. •Residential Approach Inspection shifted to Building Inspectors. •Created and implemented a Regional Special Inspection and Fabricator program involvement in case creation and field investigation. •Coordinated progress reports on Regional Hazard Mitigation Plan. •Created custom reports in permitting system to meet the needs of outside reporting agencies. Goals for 2018 •Work on permit processes and customer service improvement plan to enhance customer experience at the Permit Center. •Develop performance measures. •Coordinate on central reporting function in SMARTGov System. •Expand on-line permit system. •Incorporate data from SVFD records to facilitate re-use of existing vacant buildings and tenant spaces. •Increase efforts to establish and maintain relationships with regional jurisdictions and outside review agencies. •Implement Code Enforcement educational awareness program to inform the public. •Provide cross training of staff to facilitate coverage during times of lean staffing. •Coordinate with regional partners on the Hazard Mitigation Plan. •Assist in the finalization of Municipal Code updates. •Process 2017 Comprehensive Plan amendments. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Building Official 0.0 0.0 0.0 0.0 1.0 Assistant Building Official 0.0 0.0 0.0 0.0 1.0 Building Inspector II 0.0 0.0 0.0 0.0 3.0 Administrative Assistant 0.0 0.0 0.0 0.0 1.0 Planner 0.0 0.0 0.0 0.0 3.0 Development Service Coordinator 0.0 0.0 0.0 0.0 1.0 Engineering Tech 0.0 0.0 0.0 0.0 1.0 Office Assistant I 0.0 0.0 0.0 0.0 2.0 Permit Facilitator 0.0 0.0 0.0 0.0 2.0 Plans Examiner 0.0 0.0 0.0 0.0 1.0 Senior Plans Examiner 0.0 0.0 0.0 0.0 1.0 Code Enforcement Officer 0.0 0.0 0.0 0.0 1.0 Senior Planner 0.0 0.0 0.0 0.0 1.0 Total FTEs 0.0 0.0 0.0 0.0 19.0 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 0 $ 1,876,477 Supplies 0 0 0 0 44,200 Services&Charges 0 0 0 0 325,000 Intergovernmental Payments 0 0 0 0 20,000 Total Building Division $ 0 $ 0 $ 0 $ 0 $ 2,265,677 70 Fund:001 General Fund Spokane Valley Dept:058 Community&Economic Development 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Community Development Director 1.0 1.0 1.0 1.0 0.0 Administrative Assistant 1.0 1.0 1.0 1.0 0.0 Total FTEs 2.0 2.0 2.0 2.0 0.0 Budget Detail Wages,Payroll Taxes&Benefits $ 227,397 $ 237,232 $ 247,129 $ 206,762 $ 0 Supplies 3,582 2,553 3,207 3,100 0 Services&Charges 12,022 10,785 11,381 18,600 0 Nonrecurring Professional Services 32,410 206,704 335,204 0 0 Total Administrative Division $ 275,410 $ 457,274 $ 596,921 $ 228,462 $ 0 051 -Economic Development Division Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Engineer 0.0 0.5 0.65 0.65 0.0 Senior Planner-CD 0.0 1.0 1.0 1.0 0.0 E.D.Project Specialist 0.0 1.0 1.0 1.0 0.0 Total FTEs 0.0 2.5 2.65 2.65 0.0 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 234,966 $ 291,881 $ 420,432 $ 0 Supplies 0 6 965 1,100 0 Services&Charges 0 3,930 191,615 271,300 0 Nonrecurring Services&Charges 0 0 0 164,200 0 Total Administrative Division $ 0 $ 238,902 $ 484,461 $ 857,032 $ 0 71 Fund:001 General Fund Spokane Valley Dept:058 Community&Economic Development 2018 Budget 055/056-Development Services Division Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Development Services Manager 0.0 1.0 1.0 1.0 0.0 Engineer 1.5 2.0 2.0 2.0 0.0 Assistant Engineer 1.0 1.0 1.0 1.0 0.0 Senior Planner 0.0 1.0 1.0 1.0 0.0 Planner 0.0 2.0 2.0 2.0 0.0 Maint/Construction Inspector 1.0 1.0 1.0 1.0 0.0 Code Enforcement Officer 0.0 1.0 1.0 0.0 0.0 ROW Inspector 1.0 1.0 1.0 1.0 0.0 Office Assistant I 1.0 1.0 1.0 1.0 0.0 Senior Engineer 1.0 0.0 0.0 0.0 0.0 Engineering Technician 0.5 0.0 0.0 0.0 0.0 Total FTEs 7.0 11.0 11.0 10.0 0.0 Budget Detail Wages,Payroll Taxes&Benefits $ 1,278,597 $ 1,115,465 $ 1,158,836 $ 1,133,484 0 Supplies 7,862 10,058 10,657 16,550 0 Services&Charges 257,861 246,964 251,364 263,350 0 Intergovernmental Payments 0 0 21,662 20,000 0 Total Engineering Division $ 1,544,320 $ 1,372,487 $ 1,442,519 $ 1,433,384 0 057-Building Division Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Building Official 1.0 1.0 1.0 1.0 0.0 Building Inspector ll 3.0 3.0 3.0 3.0 0.0 Planner 2.0 2.0 2.0 1.0 0.0 Development Service Coordinator 1.0 1.0 1.0 1.0 0.0 Engineering Tech 1.0 1.0 1.0 1.0 0.0 Office Assistant I 1.0 2.0 2.0 2.0 0.0 Permit Facilitator 2.0 2.0 2.0 2.0 0.0 Plans Examiner 0.5 1.0 1.0 1.0 0.0 Senior Plans Examiner 1.0 1.0 1.0 1.0 0.0 Code Enforcement Officer 0.0 0.0 0.0 1.0 0.0 Assistant Planner 0.0 0.0 0.0 0.0 0.0 Total FTEs 12.5 14.0 14.0 14.0 0.0 Budget Detail Wages,Payroll Taxes&Benefits $ 1,098,561 $ 1,126,106 $ 1,184,430 $ 1,370,734 $ 0 Supplies 14,196 7,230 18,504 32,700 0 Services&Charges 65,457 60,112 64,652 78,300 0 Total Building Division $ 1,178,214 $ 1,193,448 $ 1,267,586 $ 1,481,734 $ 0 72 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2018 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 2017 • Constructed new splash pad and ADA pathway at Edgecliff Park. • Added amenities to Valley Mission Dog Park. • Completed construction of the Pines to Evergreen section of the Appleway Trail. • Hosted KS PS's Wall of Healing Community Event. • Received donor funding for park amenities. • Pursued acquisition of WSDOT property adjacent to Sullivan Park. Goals for 2018 • Construct Browns Park perimeter path and lighting. • Construct the Sullivan to Corbin section of the Appleway Trail. • Add perimeter fencing at Sullivan Park. • Pursue land acquisitions for priority facilities such as disc golf,skateboard park,etc. • Install new park signs at Sullivan, Park Road,Castle and Balfour Parks. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Parks&Recreation Director 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 1.0 1.0 1.0 1.0 1.0 Total FTEs 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 224,275 $ 230,394 $ 232,889 $ 243,514 $ 254,133 Supplies 2,493 2,688 3,258 7,400 7,600 Services&Charges 28,367 28,433 22,803 45,850 39,350 Nonrecurring Expenses 11,192 78,659 83,951 0 0 Total Parks Administration $ 266,327 $ 340,174 $ 342,901 $ 296,764 $ 301,083 73 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Budget Detail Supplies $ 2,903 $ 3,444 $ 13,809 $ 5,500 $ 7,500 Services&Charges 791,348 830,640 876,115 920,850 886,200 Total Parks Maintenance $ 794,251 $ 834,084 $ 889,924 $ 926,350 $ 893,700 301 -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 2017 • Conducted successful free summer program. • Conducted successful summer day camp program. • Partnered with the Library District for summer park programming. • Conducted first free summer movie at Valley Mission with free swimming. Goals for 2018 • Research and offer new recreation programs that serve the needs of the Community. • Continue to provide quality recreation programs for the Spokane Valley Community. • Foster relationships with Community partners. • Offer affordable community events for families,teens,and the Community. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Recreation Coordinator 1.0 1.0 1.0 1.0 1.0 Budget Detail Wages,Payroll Taxes&Benefits $ 142,074 $ 164,092 $ 157,707 $ 178,945 $ 189,274 Supplies 6,740 7,791 5,773 8,200 7,750 Services&Charges 47,670 62,052 72,052 59,150 63,550 Total Recreation Division $ 196,484 $ 233,935 $ 235,532 $ 246,295 $ 260,574 74 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2018 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 2017 • Maintained full summer swimming program. • Replaced main drain piping from the drain boxes at Terrace View and Park Road Pools. • Replaced the gutter line running to the outdoor drain pit at Valley Mission Pool. • Repaired peeling paint at Terrace View Pool. • Improved coordination and communication among teams for the summer swim meet season. Goals for 2018 • Maintain full summer swimming program. • Improve the summer pool schedule for better public understanding. • Maintain Paws in the Pool Program. • Investigate expanding the water exercise program. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Budget Detail Supplies $ 424 $ 351 $ 1,517 $ 3,200 $ 3,300 Services&Charges 436,607 487,564 460,474 494,150 489,600 Total Aquatics Division $ 437,031 $ 487,915 $ 461,991 $ 497,350 $ 492,900 75 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2018 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 2017 • Continued to enhance the resource and referral information at the reception desk to be better equipped to handle calls. • Offered"Get Acquainted Open House"to allow the public to visit the CenterPlace and the Senior Center. • Continued to work with the Board on providing board training classes. • Worked closely with the Parks&Recreation Director on programs being offered to seniors. • Offered more Tuesday evening classes in the Senior Wing of CenterPlace. Goals for 2018 • 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. • Offer more Tuesday evening classes in the Senior Wing of CenterPlace. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Senior Center Specialist 1.0 1.0 1.0 1.0 1.0 Total FTEs 1.0 1.0 1.0 1.0 1.0 Intern 1.0 0.0 0.0 0.0 0.0 Budget Detail Wages,Payroll Taxes&Benefits $ 79,872 $ 82,625 $ 85,521 $ 89,416 $ 91,729 Supplies 1,460 454 1,170 1,600 1,600 Services&Charges 2,514 2,298 1,645 4,900 4,900 Total Senior Center Division $ 83,846 $ 85,377 $ 88,336 $ 95,916 $ 98,229 76 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2018 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 2017 • Upgraded the audio and visual systems and equipment in the Great Room and Small Dining Room. • Replaced carpeting in Rooms 109, 110 and 213. • Hosted a successful community food and beverage event-CRAVE NW. • Completed the master plan for the west lawn at CenterPlace. Goals for 2018 • Replace flooring in the Great Room and Small Dining Room at CenterPlace. • Complete Phase 1 of improvement for an outdoor event venue space on west lawn. • Update existing Business and Marketing Plan. • Continue to host CRAVE NW and other community events. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Customer Relations/Facilities Coordinator 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 1.0 1.0 1.0 1.0 1.0 Office Assistant I 1.0 1.0 1.0 1.0 1.0 Maintenance Worker 2.0 2.0 2.0 2.0 2.0 Total FTEs 5.0 5.0 5.0 5.0 5.0 Budget Detail Wages,Payroll Taxes&Benefits $ 402,329 $ 442,655 $ 467,950 $ 502,139 $ 503,499 Supplies 63,834 53,919 59,418 73,524 73,524 Services&Charges 335,274 306,138 330,779 326,295 333,445 Nonrecurring Expenditures 0 0 0 0 53,000 Total CenterPlace Division $ 801,437 $ 802,712 $ 858,147 $ 901,958 $ 963,468 77 Fund:001 General Fund Spokane Valley Dept:090 General Government 2018 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 2014 2015 2016 I 2017 2018 Actual Actual Actual Budget Budget Supplies Employee Recognition-Operating Supplies $ 2,667 $ 1,490 $ 599 $ 3,000 $ 1,500 Office&Operating Supplies 0 187 41 0 0 Small Tools&Minor Equipment 3,738 7,443 5,825 7,250 6,900 Computer Hardware-Non Capital 30,671 38,277 54,773 107,700 66,050 Computer Software-Non Capital 32,631 5,093 20,859 12,500 20,300 Fuel 104 0 0 0 0 Office&Operating Supplies 8,418 16,753 9,196 15,000 9,700 78,229 69,243 91,293 145,450 104,450 Other Services&Charges Professional Services-Misc Studies 117,149 22,907 99,509 200,000 200,000 Accounting&Auditing 66,714 77,474 82,775 90,000 90,000 Uncollectible Accounts Expense 0 2,095 0 0 0 Employee Recognition&Safety Program 0 299 917 0 1,500 Postage 315 10,428 82 2,500 2,500 Telephone Service 8,790 8,168 7,077 9,000 9,000 Cell Phones 1,335 949 1,680 1,500 1,700 Internet Service 10,404 11,458 8,114 11,800 8,500 City Wide Records Management 3,610 5,870 0 10,000 10,000 City Hall Rent 412,681 426,964 437,864 0 0 Facility Repairs&Maintenance 1,318 8,897 1,595 5,000 5,000 Equip Repair&Maint-Hardware Support 51,617 40,450 34,611 31,400 46,400 IT Support 13,323 20,855 12,659 72,700 28,300 Software Licenses&Maintenance 66,369 65,353 82,967 70,940 88,000 Merchant Charges(Bankcard Fees) 1,765 231 287 2,000 500 Network Infrastructure Access 0 0 17,662 0 5,000 Equipment Rental 3,300 1,921 4,261 4,260 4,260 Interfund Vehicle Lease 0 0 0 0 500 Printing&Binding 0 536 589 500 600 Miscellaneous Services 2,143 5,256 5,378 10,000 5,400 General Operating Leases:Computer 49,645 45,347 46,480 51,000 60,000 Economic Development-Site Selector 9,139 8,542 9,041 10,000 10,000 Outside Agencies-Social Svc&Econ.Dev. 0 0 0 150,000 150,000 Professional Services-Economic Dev. 87,498 70,330 60,216 0 0 Contracted economic dev. 0 16,560 43,000 0 0 City Economic Development 196,877 153,350 0 0 0 Professional Services-Social Services 61,723 90,974 43,496 0 0 Alcohol Treatment:Liquor Excise Tax 3,439 5,012 8,710 0 0 Alcohol Treatment:Liquor Profits 16,258 16,131 16,081 22,000 25,000 $ 1,185,412 $ 1,116,357 $ 1,025,051 $ 754,600 $ 752,160 (continued to next page) 78 Fund:001 General Fund Spokane Valley Dept:090 General Government 2018 Budget (continued from previous page) Budget Summary 2014 2015 2016 2017 2018 Actual Actual Budget Budget Budget Intergovernmental Services Election Costs $ 0 $ 16,347 $ 0 $ 90,000 $ 90,000 Voter Registration 84,764 97,091 85,893 100,000 100,000 Taxes and assessments 6,909 5,617 892 7,500 7,500 Spokane County Air Pollution Authority 115,915 115,915 116,432 131,000 135,000 207,588 234,970 203,217 328,500 332,500 Capital Outlays PEG COSV Broadcast-Software/hardware 30,596 0 0 0 0 Computer Hardware-Capital 68,956 0 23,802 10,000 70,000 99,552 0 23,802 10,000 70,000 Debt Service:Principal Interest and Other Debt Service Costs 435 425 624 0 600 Interfund Payments for Service Transfer out-#204(City Hall bond payment) 0 0 198,734 430,630 399,350 Transfer out-#309(park capital prof) 242,298 115,575 260,122 160,000 160,000 Transfer out-#310(bond pmt>$434.6 lease) 0 67,600 72,500 0 0 Transfer out-#310(city hall o&m costs) 0 271,700 271,700 0 0 Transfer out-#311(pvmnt preservation) 888,823 920,000 943,800 953,200 962,700 Transfer out-#501(CenterPlace kitchen reserve) 0 0 0 36,600 36,600 Transfer out-#502(risk management) 325,000 325,000 325,000 350,000 370,000 1,456,121 1,699,875 2,071,856 1,930,430 1,928,650 Miscellaneous SCRAPS pass through 0 1,099 1,209 1,300 1,300 Leasehold Excise Tax Pass-Through 0 0 628 0 600 0 1,099 1,837 1,300 1,900 Subtotal Recurring Expenditures $ 3,027,337 $ 3,121,969 $ 3,417,680 $ 3,170,280 $ 3,190,260 Nonrecurring/Nonrecurring Capital City Hall lease payment(2017 final year) 0 0 0 513,100 0 Copy Machine 0 21,145 0 20,000 0 Computer Hardware-Capital 0 65,610 76,119 80,000 110,000 Computer Software-Capital 20,789 18,931 10,870 0 5,000 City Hall Remodel 0 12,842 0 0 0 SCRAPS pass through 57,259 0 0 0 0 Transfer out-#106(solid waste educ.) 60,000 0 0 0 0 Transfer out-#122(Replenish Winter Weather Reserve Fund) 0 0 15,043 258,000 0 Transfer out-#309(CP outdoor venue) 0 0 0 0 200,000 Transfer out-#309(Browns Pk lighting) 0 0 0 0 200,000 Transfer out-#312(capital reserve fund) 2,443,507 1,783,512 1,828,723 3,003,929 1,000,000 Transfer out-#314(RR Grade Separation) 0 0 0 1,200,000 0 2,581,555 1,902,040 1,930,755 5,075,029 1,515,000 Total Governmental Division $ 5,608,892 $ 5,024,009 $ 5,348,435 $ 8,245,309 $ 4,705,260 79 Fund: 101 Street Fund Spokane Valley 2018 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 2017 • Renewed contracts with private contractors for street maintenance services. • Continued to define and implement a fleet maintenance program. • Contributed$1.0M to Pavement Preservation through the street maintenance contract. • Improved safety at 18 of the City's busiest signalized intersections by installing reflectorized backplates • Collected data for 1/2 the arterials and 1/3 the local roads to update the City's pavement preservation database. • Updated 43 traffic signals with new hardware&software on the City's principal arterial system for better traffic progression. • Worked with WSDOT to upgrade the City's traffic signal software for better traffic coordination. Goals for 2018 • Continue to update and implement the pavement management plan. • Renew contracts with private contractors for street maintenance services. • Evaluate traffic management system to keep in-house or integrate into SRTMC. • Develop a maintenance program for traffic signal components to address aging infrastructure. • Optimize traffic signal timings for improved traffic progression through the Argonne,Pines,and Sullivan Corridors. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Senior Engineer-Traffic 1.0 1.0 1.0 1.0 1.0 Public Works Superintendent 1.0 1.0 1.0 1.0 1.0 Maintenance/Construction Inspector 2.0 2.35 2.35 2.35 2.35 Assistant Engineer-Traffic/Planning 1.0 1.0 1.0 1.0 1.0 Planning Grants Engineer 0.375 0.375 0.375 0.375 0.375 Total FTEs 5.375 5.725 5.725 5.725 5.725 Interns&Temp/Seasonal 2.0 2.0 2.0 2.0 2.0 For 0.5 FTE of the 2 FTEs,only 50%is budgeted to the Street Fund with the balance budgeted as part of the capital project funds (continued to next page) 80 Fund: 101 Street Fund Spokane Valley 2018 Budget (continued from previous page) Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Utility Tax $ 2,461,060 $ 2,257,184 $ 2,069,309 $ 2,000,000 $ 1,900,000 Motor Vehicle Fuel Tax 1,878,476 1,935,629 2,005,870 2,040,300 2,052,400 Multimodal Transportation Revenue 0 0 95,509 98,868 133,800 Right-of-Way Maintenance Fee 0 0 56,035 50,000 70,000 Investment Interest 2,037 3,212 5,886 4,000 6,000 Grant Proceeds 15,150 0 12,066 0 0 Transfers in 23 0 0 0 0 Miscellaneous 9,414 25,167 226 10,000 10,000 Non recurring insurance proceeds 0 0 59,426 0 0 Total revenues 4,366,160 4,221,192 4,304,327 4,203,168 4,172,200 Expenditures Wages,Payroll Taxes&Benefits 681,165 738,144 728,627 754,872 771,019 Supplies 119,742 116,659 87,533 105,000 112,500 Services&Charges 2,030,250 2,041,767 2,122,931 2,168,151 2,141,751 Snow Operation 508,353 465,231 409,635 468,000 504,800 Intergovernmental Payments 876,268 707,315 836,101 795,000 851,000 Transfers out-#001 39,700 39,700 39,700 39,700 39,700 Transfersout-#311 (pvmntpres) 282,000 206,618 67,342 67,342 67,342 Transfersout-#501 (non-plow) 10,777 12,077 31,000 23,250 21,250 Transfers out-#501 (p/ow rep/ace) 75,000 0 40,000 77,929 77,929 Signal Detection Replacement Program 0 0 0 40,000 0 Capital construction and equipment 100,894 155,849 0 0 0 Nonrecurring Expenditures Durable striping at Trent&Argonne 0 0 0 75,000 0 Spare traffic signal equipment 0 0 0 30,000 0 Battery backups for intersections 0 0 0 15,000 15,000 Traffic Signal Cabinet Replacement 0 0 59,695 0 0 Maintenance facility storage unit 0 0 4,871 0 0 Transportation Mgmt Center 0 0 1,465 0 0 Total expenditures 4,724,149 4,483,360 4,428,900 4,659,244 4,602,291 Revenues over(under)expenditures (357,989) (262,168) (124,573) (456,076) (430,091) Beginning fund balance 2,063,234 1,705,245 1,443,077 1,318,504 862,428 Ending fund balance $ 1,705,245 $ 1,443,077 $ 1,318,504 $ 862,428 $ 432,337 81 Fund: 103 Paths&Trails Fund Spokane Valley 2018 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 2018 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 of 94,890(per the Washington State Office of Financial Management on April 1,2017)we anticipate the City will collect$2,061,100 in 2011. 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 2018 revenue estimate this computes to$8,700. The balance or$2,052,400 will be credited to Fund#101 for Street maintenance and operations. The portion of the motor vehicle tax allocated to the Paths and Trails Fund is by State Law restricted for the construction and/or improvement of paths and trails within the City. Because the cost of such projects is typically much greater than the funds generated in a single year,we typically leave the fund balance untouched until an adequate fund balance is available. The City transferred$50,000 in 2014 and$9,300 in 2016 to the Parks Capital Projects Fund#309 to be applied towards the Appleway Trail Project from University to Pines. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Motor Vehicle Fuel(Gas)Tax $ 7,923 $ 8,226 $ 8,460 $ 8,600 $ 8,700 Investment Interest 34 0 170 0 0 Total revenues 7,957 8,226 8,630 8,600 8,700 Expenditures Capital Outlay 0 0 0 0 0 Transfers out- #309 50,000 0 9,300 0 0 Total expenditures 50,000 0 9,300 0 0 Revenues over(under)expenditures (42,043) 8,226 (670) 8,600 8,700 Beginning fund balance 71,871 29,828 38,054 37,384 45,984 Ending fund balance $ 29,828 $ 38,054 $ 37,384 $ 45,984 $ 54,684 82 Fund: 104 Hotel/Motel Tax-Tourism Facilities Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Hotel/Motel Tax $ 0 $ 182,236 $ 387,333 $ 377,000 $ 377,000 Investment Interest 0 111 1,552 0 1,500 Transfers in-#105 0 0 0 250,000 0 Total revenues 0 182,347 388,885 627,000 378,500 Expenditures Capital Outlay 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 0 182,347 388,885 627,000 378,500 Beginning fund balance 0 0 182,347 571,232 1,198,232 Ending fund balance $ 0 $ 182,347 $ 571,232 $ 1,198,232 $ 1,576,732 Fund:105 Hotel/Motel Tax Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Hotel/Motel Tax $ 549,267 $ 581,237 $ 596,373 $ 580,000 $ 580,000 Investment Interest 299 484 1,275 500 1,000 Total revenues 549,566 581,721 597,648 580,500 581,000 Expenditures Tourism Promotion $ 546,545 $ 484,968 $ 498,172 $ 354,000 $ 572,000 Transfers out- #001 30,000 30,000 30,000 30,000 30,000 Transfers out- #104 0 0 0 250,000 0 Transfers out- #109 0 68,000 58,387 0 0 Total expenditures 576,545 582,968 586,559 634,000 602,000 Revenues over(under)expenditures (26,979) (1,247) 11,089 (53,500) (21,000) Beginning fund balance 236,927 209,948 208,701 219,790 166,290 Ending fund balance $ 209,948 $ 208,701 $ 219,790 $ 166,290 $ 145,290 83 Fund:106 Solid Waste Fund Spokane Valley 2018 Budget In 2003,the City of Spokane Valley entered into an interlocal agreement with the City of Spokane and Spokane County to join the existing Spokane Regional Solid Waste Management System for a period of eight years. In 2011,that agreement was extended through November 16,2014. Committed to ensuring Spokane Valley citizens are provided with solid waste services that are affordable,sustainable, and environmentally responsible,in June 2014 the City of Spokane Valley opted to contract for solid waste transfer, transport and disposal services with Sunshine Recyclers, Inc.Services provided under the contract were effective November 17,2014,and continue for a period of ten years with options for two three-year extensions. Terms of the contract require Sunshine to pay the City an annual administrative fee of$125,000 that will be used by the City to offset contract administrative costs and solid waste management within the city,including solid waste public educational efforts. The contract also provides that a road maintenance fee will be paid by Sunshine at the rate of$1 per ton for each ton in excess of 45,500 tons in a single contract year. Payments will be made to the City by March 31 of the year following the calendar year being measured. During 2017,the City received a payment in the amount of$71,112,which was receipted in the Street Fund#101 to offset road maintenance costs. 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 1%of gross receipts,which is estimated to be approximately$100,000 in 2018. During the years of 2013 and 2014,the General Fund#001 funded various studies and fees related to the solid waste program and transferred$60,000 to the Solid Waste Fund#106 for the purpose of providing information materials and marketing necessary to inform residents and businesses of the change in solid waste transfer,transport and disposal.The total amount paid out of the General Fund for these expenditures was$202,121. Beginning in 2015 the Solid Waste Fund will reimburse the General Fund for these costs over a 5-year period,which equates to a payment of annually of$40,425 in the years 2015 through 2019. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Administrative fees $ 0 $ 125,000 $ 125,000 $ 125,000 $ 225,000 Investment interest 0 0 184 0 0 Grant Proceeds 0 0 17,677 26,800 0 Transfer in-#001 60,000 0 0 0 0 Total revenues 60,000 125,000 142,861 151,800 225,000 Expenditures Education&Contract Administration $ 52,661 $ 49,040 $ 66,188 $ 111,375 $ 184,575 Transfers out-#001 0 40,425 40,425 40,425 40,425 Total expenditures 52,661 89,465 106,613 151,800 225,000 Revenues over(under)expenditures 7,339 35,535 36,248 0 0 Beginning fund balance 0 7,339 42,874 79,122 79,122 Ending fund balance $ 7,339 $ 42,874 $ 79,122 $ 79,122 $ 79,122 84 Fund:107 PEG Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Comcast PEG contribution $ 0 $ 81,806 $ 79,427 $ 80,000 $ 79,000 Investment interest 0 0 784 0 0 Transfer in from fund#001 0 267,333 0 0 0 Total revenues 0 349,139 80,211 80,000 79,000 Expenditures PEG Reimbursement-CMTV $ 0 $ 0 $ 117,000 $ 0 $ 40,200 New City Hall Council Chambers 0 0 5,435 250,000 0 Capital Outlay 0 47,957 18,617 12,500 31,000 Total expenditures 0 47,957 141,052 262,500 71,200 Revenuesover(under)expenditures 0 301,182 (60,841) (182,500) 7,800 Beginning fund balance 0 0 301,182 240,341 57,841 Ending fund balance $ 0 $ 301,182 $ 240,341 $ 57,841 $ 65,641 85 Fund:120 CenterPlace Operating Reserve Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Budget Budget Budget Revenues Investment Interest $ 0 $ 0 $ 0 $ 0 $ 0 Transfers in 0 0 0 0 0 Total revenues 0 0 0 0 0 Expenditures Operations 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 0 0 0 0 0 Beginning fund balance 300,000 300,000 300,000 300,000 300,000 Ending fund balance $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Fund:121 Service Level Stabilization Reserve Fund Spokane Valley 2018 Budget The City has committed to maintaining an ending fund balance in the General Fund of at least 50%of recurring expenditures which is equivalent to 6-months of operations. The Service Level Stabilization Reserve Fund serves as an emergency source of temporary financing to the General Fund in the event a downturn in the local economy resulted in a reduction of revenues that would otherwise compromise either the General Fund's minimum 50%reserve balance or historical levels of service. If an event such as a downturn in the economy resulted in the General Fund reserves dropping below 50%of recurring expenditures,then the Service Level Stabilization Reserve Fund could be drawn against to maintain the fund balance minimum. In no event would the Service Level Stabilization Reserve Fund be reduced to less than 60%of the current $5.5 million balance or$3.29 million. During 2017,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 2018 Budget Message located near the front of this budget document. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Investment Interest $ 4,697 $ 8,590 $ 21,636 $ 21,900 $ 0 Transfers in 0 0 0 0 0 Total revenues 4,697 8,590 21,636 21,900 0 Expenditures Operations 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 4,697 8,590 21,636 21,900 0 Beginning fund balance 5,448,502 5,453,199 5,461,789 5,483,425 5,505,325 Ending fund balance $ 5,453,199 $ 5,461,789 $ 5,483,425 $ 5,505,325 $ 5,505,325 86 Fund: 122 Winter Weather Reserve Fund Spokane Valley 2018 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 2017 and 2018 even though we recognize there exists only$500,000 to address this issue if it should arise. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Investment Interest $ 455 $ 833 $ 1,961 $ 600 $ 3,500 Transfers in-#001 0 0 15,043 258,000 0 FEMA Grant Proceeds 0 0 38,804 0 0 Total revenues 455 833 55,808 258,600 3,500 Expenditures Street Maintenance Expenditures $ 0 $ 60,381 $ 257,445 $ 500,000 $ 500,000 Total expenditures 0 60,381 257,445 500,000 500,000 Revenues over(under)expenditures 455 (59,548) (201,637) (241,400) (496,500) Beginning fund balance 503,565 504,020 444,472 242,835 501,435 Ending fund balance $ 504,020 $ 444,472 $ 242,835 $ 1,435 $ 4,935 87 Fund:204 Limited Tax General Obligation(LTGO)Bond-Debt Service Fund Spokane Valley 2018 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 1,2018,the outstanding balance on this portion of the bond issue will be$4,875,000. • $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 1,2018,the outstanding balance on this portion of the bond issue will be$865,000. 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 1,2018,the outstanding balance on the bond issue will be $7,050,000. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Spokane Public Facilities District $ 441,520 $ 373,800 $ 380,300 $ 379,750 $ 414,050 2014 LTGO Bond issue proceeds 7,661,000 0 0 0 0 Transfers in-#001 0 0 198,734 430,630 399,350 Transfersin-#301 93,152 82,150 83,400 103,511 82,000 Transfers in-#302 93,151 82,150 83,400 103,510 82,000 Total revenues 8,288,823 538,100 745,834 1,017,401 977,400 Expenditures Debt Service Payment-CenterPlace 441,520 374,083 380,300 382,608 414,050 Debt Service Payment-Roads 186,303 164,017 166,800 162,992 164,000 Debt Service Payments-City Hall 0 0 198,734 397,517 399,350 2003 LTGO Bond retirement 7,549,000 0 0 0 0 2014 LTGO Bond issue costs 112,000 0 0 0 0 Total expenditures 8,288,823 538,100 745,834 943,117 977,400 Revenues over(under)expenditures 0 0 0 74,284 0 Beginning fund balance 4,049 4,049 4,049 4,049 78,333 Ending fund balance $ 4,049 $ 4,049 $ 4,049 $ 78,333 $ 78,333 88 Fund:301 REET 1 Capital Projects Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues REET 1-Taxes $ 790,781 $ 1,065,789 $ 1,176,911 $ 1,000,000 $ 800,000 Investment Interest 793 1,654 7,609 1,700 7,500 Total revenues 791,574 1,067,443 1,184,520 1,001,700 807,500 Expenditures Transfersout-#204 $ 89,559 $ 82,150 $ 83,400 $ 103,511 $ 82,000 Transfers out-#303 58,607 567,113 579,636 437,002 1,048,852 Transfers out-#311 (pavement preservation) 184,472 251,049 365,286 660,479 685,329 Transfers out-#314(Barker Grade Separation) 0 0 3,893 50,000 0 Total expenditures 332,638 900,312 1,032,215 1,250,992 1,816,181 Revenues over(under)expenditures 458,936 167,131 152,305 (249,292) (1,008,681) Beginning fund balance 968,021 1,426,957 1,594,088 1,746,393 1,497,101 Ending fund balance $ 1,426,957 $ 1,594,088 $ 1,746,393 $ 1,497,101 $ 488,420 89 Fund:302 REET 2 Capital Projects Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues REET2-Taxes $ 776,648 $ 1,065,789 $ 1,176,911 $ 1,000,000 $ 800,000 Investment Interest 909 1,661 8,189 1,700 8,000 Total revenues 777,557 1,067,450 1,185,100 1,001,700 808,000 Expenditures Transfers out-#101 $ 23 $ 0 $ 0 $ 0 $ 0 Transfersout-#204 89,559 82,150 83,400 103,510 82,000 Transfersout-#303 501,736 331,099 164,151 1,173,230 1,003,544 Transfers out-#311 (pavement preservation) 184,472 251,049 365,286 660,479 685,329 775,790 664,298 612,837 1,937,219 1,770,873 Revenues over(under)expenditures 1,767 403,152 572,263 (935,519) (962,873) Beginning fund balance 1,323,378 1,325,145 1,728,297 2,300,560 1,365,041 Ending fund balance $ 1,325,145 $ 1,728,297 $ 2,300,560 $ 1,365,041 $ 402,168 90 Street Capital Projects Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 1,825,974 $ 8,223,959 $ 4,951,033 $ 4,286,300 $ 8,919,182 Developer Contribution 541 363,894 151,600 970,966 65,212 Miscellaneous 21 87 29 0 0 Transfers in-#101 5,038 123,955 0 0 0 Transfersin-#301 29,647 567,113 579,636 437,002 1,048,852 Transfersin-#302 530,695 331,099 164,151 1,173,230 1,003,544 Transfers in-#311 0 0 0 0 0 Transfers in-#312 Appleway Landscaping 253,645 0 0 0 0 Transfers in-#312 Sullivan Rd WBridge 443,688 42,730 2,022,865 450,000 0 Transfers in-#312 8th&Carnahan Improvement 0 0 11,687 238,320 0 Transfers in-#312 Euclid Ave-Flora to Barker 0 0 26,326 1,773,671 5,000 Transfers in-#312 Indiana bus stops&crosswal 0 0 0 0 110,000 Total revenues 3,089,249 9,652,837 7,907,327 9,329,489 11,151,790 Expenditures 060 Argonne Rd Corridor Upgrade SRTC 06-31 $ 206,188 $ 1,248,474 $ 4,355 $ 0 $ 0 061 Pines(SR27)ITS Improvement SRTC 06-26 67 0 0 0 0 113 Indiana/Sullivan Intersection PCC 113 0 0 0 0 123 Mission Ave-Flora to Barker 40,012 37,956 72,909 500,000 3,625,716 141 Sullivan&Euclid PCC 49,556 9,848 62,939 2,150,000 0 142 Broadway @ Argonne/Mullan 3,564 17,771 29,030 0 2,250,000 145 Spokane Valley-Millwood Trail 1,924 0 0 0 0 149 In-House Design-Sidewalk Infill 288,304 8,177 105 0 0 154 Sidewalk&Transit Stop Accessibility 435 0 0 0 0 155 Sullivan Rd W Bridge Replacement 925,421 6,482,244 5,538,823 1,063,370 0 156 Mansfield Ave.Connection 669,533 712,689 738 0 0 159 University Rd/1-90 Overpass Study 32,716 2,842 0 0 0 166 Pines Rd(SR27)&Grace Ave.Intersect study 50,516 47,322 115,820 333,224 402,710 167 City wide safety improvements 12,159 315,032 89,158 5,000 0 168 Wellesley Ave&Adams rd.sidewalk 3,318 0 0 0 0 169 Argonne/Mullan corridor safety-Indiana to Bro 558 0 0 0 0 177 Sullivan Road Corridor Traffic Study 106,305 19,332 0 0 0 181 Citywide Traffic Sign Upgrade 96,561 0 0 0 0 185 Appleway Landscaping-Phase 1 253,695 0 0 0 0 191 Vista Rd BNSF Xing Safety 48,501 190 0 0 0 196 8th Avenue-McKinnon to Fancher 264,439 396 0 0 0 201 ITS Infill Project Phase 1 149 37,884 47,756 300,000 378,172 205 Sprague/Barker Intersection Improvement 191 13,132 0 40,097 35,700 206 Sprague/Long Sidewalk Project 7,513 304,933 235 0 0 207 Indiana&Evergreen Transit Access Improv. 0 3,345 102,684 5,000 0 210 Alcazar Driveway Reconstruction 7,902 0 0 0 0 211 Sullivan Trent to Wellesley 3,465 100,649 0 0 0 213 Sprague/Thierman Intersection 5,038 0 0 0 0 220 Houk-Sinto-Maxwell St Preservation 0 15,555 0 0 0 221 McDonald Rd Diet(16th to Mission) 0 7,229 436,143 5,000 1,000 222 Citywide Reflective Signal Backplates 0 0 0 36,000 17,000 223 Pines Rd Underpass @ BNSF&Trent 0 2,000 0 0 0 (continued to next page) 91 Fund:303 Street Capital Projects Fund Spokane Valley 2018 Budget (continued from previous page) 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Expenditures,continued 224 Mullan Rd Street Preservation Project 0 133,069 0 0 0 229 32nd Ave Preservation Project 0 0 434,801 2,500 0 233 Broadway Ave Street Pres-Sullivan to Moore 0 0 56,085 0 0 234 Seth Woodard Sidewalk Improvements 0 6,204 393,046 5,000 0 238 Mirabeau Pkwy&Pines(SR-27)Traffic Signal 0 0 410,454 5,000 0 239 Bowdish Sidewalk-8th to 12th 0 0 63,282 471,342 5,000 247 8th&Carnahan Intersection Improvements 0 0 11,687 238,320 0 249 Sullivan/Wellesley Intersection 0 0 400 198,000 268,000 250 9th Ave.Sidewalk 0 0 10,523 240,000 2,000 251 Euclid Ave.-Flora to Barker 0 0 26,326 2,621,150 5,000 258 32nd Ave Sidewalk-SR27 to Evergreen 0 0 0 0 407,870 259 N.Sullivan Corridor ITS Projects(PE start 201 0 0 0 110,486 808,723 263 Citywide Signal Backplates 0 0 0 0 24,526 264 8th Ave Sidewalk 0 0 0 0 458,958 265 Wellesley Sidewalk Project 0 0 0 0 647,665 Barker Road Widening 0 0 0 0 106,500 Mission Ave Sidewalk 0 0 0 0 60,250 Coleman Sidewalk 0 0 0 0 25,000 Argonne Reconstruction-Indiana to Montgom 0 0 0 0 512,000 Indiana bus stops&crosswalks 0 0 0 0 110,000 Argonne Rd.Preservation 0 123,955 0 0 0 Contingency 0 0 0 1,000,000 1,000,000 Total expenditures 3,078,147 9,650,228 7,907,299 9,329,489 11,151,790 Revenues over(under)expenditures 11,102 2,608 28 0 0 Beginning fund balance 61,827 72,929 75,538 75,566 75,566 Ending fund balance $ 72,929 $ 75,538 $ 75,566 $ 75,566 $ 75,566 92 Fund:309 Park Capital Projects Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 0 $ 1,560 $ 150,230 $ 1,863,267 $ 1,693,200 FEMA Grant Proceeds-Windstorm 0 0 21,875 0 0 Transfers in-#001 (General Fund) 242,298 115,575 260,122 160,000 560,000 Transfers in-#103(Paths&Trails) 50,000 0 9,300 0 0 Transfers in-#105 0 68,000 58,388 0 0 Transfers in-#312(Capital Reserve) 911,433 524,812 37,132 298,215 324,100 Investment Interest 444 813 722 800 0 Insurance Proceeds 0 0 7,857 0 0 Contributions and Donations 7,850 0 0 0 0 Total revenues 1,212,025 710,760 545,626 2,322,282 2,577,300 Expenditures 176 Appleway Trail(Univ.to Pines) 961,482 524,569 25,325 0 0 195 Discovery Playground equipment 51,280 0 0 0 0 203 5 sand volleyball courts at Browns Park 14,390 241,480 0 0 0 208 Old Mission Trailhead 49,798 68 0 0 0 209 Park signs(3) 19,319 0 0 0 0 216 Edgecliff sewer connection 9,518 0 0 0 0 217 Edgecliff picnic shelter 7,297 104,257 0 0 0 225 Pocket dog park-phase 1 0 108,436 0 0 0 227 Appleway Trail(Pines to Evergreen) 0 1,803 137,063 1,927,557 0 231 Old Mission Trailhead Landscaping 0 47,066 0 0 0 232 Shade Structure:Discovery Park 0 36,340 0 0 0 237 Appleway Trail(Sullivan to Corbin) 0 0 41,123 236,225 1,853,300 241 Pocket dog park-phase 2 0 0 81,064 0 0 242 Browns Park Splashpad 0 0 121,959 500 0 243 Browns Park championship volleyball 0 0 58,388 0 0 244 Park signs(3) 0 0 7,898 0 0 245 Terrace View playground equip(Windstorm) 0 0 59,553 0 0 Appleway Trail(Evergreen to Sullivan) 0 0 0 0 164,000 CenterPlace outdoor venue-Phase 1 0 0 0 0 200,000 Browns Park lighting and pathway 0 0 0 0 200,000 Park signs (Sullivan,Park Rd,Balfour) 0 0 0 0 24,000 Edgecliff Park Splashpad 0 0 0 125,000 0 Total expenditures 1,113,084 1,064,019 532,373 2,289,282 2,441,300 Revenues over(under)expenditures 98,941 (353,259) 13,253 33,000 136,000 Beginning fund balance 352,779 451,720 98,461 111,714 144,714 Ending fund balance $ 451,720 $ 98,461 $ 111,714 $ 144,714 $ 280,714 93 Fund:310 Civic Facility Capital Projects Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Investment Interest $ 1,193 $ 2,113 $ 5,144 $ 7,500 $ 5,900 Sale of Land 839,285 0 0 0 0 Miscellaneous 0 0 0 0 0 Transfers in-#001: -Future C.H.bond pmt>$434.6k lease pmt 0 67,600 0 0 0 -Future C.H.o&m costs 0 271,700 344,200 0 0 Transfers in-#312 0 58,324 0 0 0 Total revenues 840,478 399,737 349,344 7,500 5,900 Expenditures Transfers out-#001: 0 0 198,734 498,500 0 Professional services 22,831 0 0 0 0 Capital Outlay-City Hall 0 1,136,738 0 0 0 Total expenditures 22,831 1,136,738 198,734 498,500 0 Revenues over(under)expenditures 817,647 (737,001) 150,610 (491,000) 5,900 Beginning fund balance 1,101,903 1,919,550 1,182,549 1,333,159 842,159 Ending fund balance $ 1,919,550 $ 1,182,549 $ 1,333,159 $ 842,159 $ 848,059 94 Fund:311 Pavement Preservation Fund Spokane Valley 2018 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 2016 and budgeted amounts for 2017 and 2018: Fund 001 I 101 I 123 I 301/302 I 310 Grants I Total Actual: 2011 584,681 - - - 500,000 - 1,084,681 2012 2,045,203 - - - - - 2,045,203 2013 855,857 282,000 616,284 300,000 - 35,945 2,090,086 2014 888,823 282,000 616,284 368,944 - 2,042,665 4,198,716 2015 920,000 206,618 616,284 502,098 - 835,224 3,080,224 2016 943,800 67,342 559,808 730,572 - 1,654,698 3,956,220 Budget: 2017 953,200 67,342 - 1,320,958 - 340,800 2,682,300 2018 962,700 67,342 - 1,370,658 - 2,572,500 4,973,200 8,154,264 972,644 2,408,660 4,593,230 500,000 7,481,832 24,110,630 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 2018 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 2018 funding level of$2,400,700 is sustainable through 2022 assuming a General Fund contribution of $962,700,a Street Fund contribution of$67,342,and a collective contribution of$1,370,658 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Transfers in-#001 $ 888,823 $ 920,000 $ 943,800 $ 953,200 $ 962,700 Transfers in-#101 282,000 206,618 67,342 67,342 67,342 Transfers in-#123 616,284 616,284 559,804 0 0 Transfers in-#301 184,472 251,049 365,286 660,479 685,329 Transfers in-#302 184,472 251,049 365,286 660,479 685,329 Investment Interest 1,853 3,389 7,519 0 0 Grant Proceeds 2,042,715 835,224 1,654,698 340,800 2,572,500 Miscellaneous 0 0 0 0 0 Total revenues 4,200,619 3,083,613 3,963,735 2,682,300 4,973,200 Expenditures Pavement preservation $ 3,021,922 $ 2,358,976 $ 3,615,389 $ 3,000,000 $ 4,008,600 Pre-project GeoTech 55,293 41,432 0 50,000 50,000 Total expenditures 3,077,215 2,400,407 3,615,389 3,050,000 4,058,600 Revenues over(under)expenditures 1,123,404 683,206 348,345 (367,700) 914,600 Beginning fund balance 798,609 1,922,013 2,605,219 2,953,564 2,585,864 Ending fund balance $ 1,922,013 $ 2,605,219 $ 2,953,564 $ 2,585,864 $ 3,500,464 95 Fund:312 Capital Reserve Fund Spokane Valley 2018 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: • $2,320,000 for the City's share of the$15.3 million Sullivan Road West Bridge Replacement • $2,410,573 for construction of various sections of the Appleway Trail. • $5,199,664 for construction of a new City Hall building. • $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. • $721,321 towards a Pines Road/BNSF Grade Separation project. • $721,321 towards Barker Road corridor improvements. • $460,715 towards improvements at the Spokane County Library's proposed Balfour site. Future projects are yet to be determined. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Transfers in-#001 $ 2,443,507 $ 1,783,512 $ 1,828,723 $ 3,003,929 $ 1,000,000 Transfers in-#313 0 0 0 0 74,960 Developer Contribution 4,675 0 0 0 0 Investment Interest 0 0 16,028 1,000 16,000 Total revenues 2,448,182 1,783,512 1,844,751 3,004,929 1,090,960 Expenditures City Hall sculpture siting $ 0 $ 0 $ 0 $ 38,526 $ 0 Transfers out-#303-Appleway Landscaping 253,645 0 0 0 0 Transfers out-#303-Pines Rd Underpass 0 0 0 0 0 Transfers out-#303-Sullivan Rd WBridge 443,688 42,730 2,060,878 450,000 0 Transfers out-#303-Euclid Ave-Flora to Barker 0 0 0 1,773,671 5,000 Transfers out-#303-8th&Carnahan Intersection 0 0 0 238,320 0 Transfers out-#303-Indiana bus stops&crosswi 0 0 0 0 110,000 Transfers out-#309-Appleway Trail-Univ to Pi 911,433 524,812 0 0 0 Transfers out-#309-Appleway Trail-Pines-Eve 0 0 37,132 260,005 0 Transfers out-#309-Appleway Trail-Corbin 0 0 0 38,210 301,900 Transfers out-#309-Appleway Trail-Evergreen- 0 0 0 0 22,200 Transfers out-#310-City Hall 0 58,324 0 0 0 Transfers out-#313-City Hall 0 5,162,764 0 0 0 Transfers out-#314-Pines Grade Separation 0 0 12,975 483,000 0 Total expenditures 1,608,766 5,788,630 2,110,985 3,281,732 439,100 Revenues over(under)expenditures 839,416 (4,005,118) (266,234) (276,803) 651,860 Beginning fund balance 7,742,299 8,581,715 4,576,597 4,310,362 4,033,559 Ending fund balance $ 8,581,715 $ 4,576,597 $ 4,310,362 $ 4,033,559 $ 4,685,419 96 Fund:313 City Hall Construction Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Transfers in-#312 $ 0 $ 5,162,764 $ 0 $ 0 $ 0 2016 LTGO Bond Proceeds 0 0 7,946,088 0 0 Investment Interest 0 0 26,536 27,000 0 Total revenues 0 5,162,764 7,972,624 27,000 0 Expenditures Capital Outlay-City Hall $ 0 $ 373,718 $ 6,517,094 $ 6,100,101 $ 0 Transfers out-#312 0 0 0 0 74,960 2016 LTGO Bond Issue Costs 0 0 96,515 0 0 Total expenditures 0 373,718 6,613,609 6,100,101 74,960 Revenues over(under)expenditures 0 4,789,046 1,359,015 (6,073,101) (74,960) Beginning fund balance 0 0 4,789,046 6,148,061 74,960 Ending fund balance $ 0 $ 4,789,046 $ 6,148,061 $ 74,960 $ 0 97 Fund:314 Railroad Grade Separation Projects Fund Spokane Valley 2018 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 2017 and 2018 are related to design costs for the Pines Road Underpass project and the Barker Road Overpass project. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 0 $ 0 $ 0 $ 300,000 $ 1,919,921 Transfers in-#001 0 0 0 1,200,000 0 Transfers in-#301 0 0 3,893 50,000 0 Transfers in-#312 0 0 12,975 483,000 0 Total revenues 0 0 16,868 2,033,000 1,919,921 Expenditures Barker BNSF Grade Separation $ 0 $ 0 $ 3,893 $ 300,000 $ 1,919,921 Pines Rd Underpass 0 0 12,975 683,000 1,000,000 Total expenditures 0 0 16,868 983,000 2,919,921 Revenues over(under)expenditures 0 0 0 1,050,000 (1,000,000) Beginning fund balance 0 0 0 0 1,050,000 Ending fund balance $ 0 $ 0 $ 0 $ 1,050,000 $ 50,000 98 Fund:402 Stormwater Management Fund Spokane Valley 2018 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 2017 • 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. • Evaluated and recommended GPS systems for better tracking field operations. • Continued decreasing backlog of drywells needing initial cleaning. Continued inspection and cleaning of catchbasins. • Evaluated the stormdrain cleaning program for cost savings and bid new contract. Goals for 2018 • Continue the work on the Glenrose and Central Basins Floodplain Delineation Project(FEMA Mapping). • With community input,evaluate street sweeping program,recommend improvements,and prepare to rebid in 2019. • Continue to work to reduce backlog of small works and maintenance projects. • Continue efforts with other agencies to promote"only rain in the drain"-type campaigns. • Continue collaborations with local jurisdictions to meet State and Federal stormwater regulations. • Provide a map of all drainage sheds within the City. • Inventory grassy percolation areas utilized by City streets for treatment and local flood mitigation. Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Engineer 1.0 1.0 1.0 1.0 1.0 Engineering Technician ll 1.0 1.0 1.0 1.0 1.0 Assistant Engineer 1.0 1.0 1.0 1.0 1.0 Maintenance/Construction Inspector 1.5 1.15 1.15 1.15 1.15 Planning Grants Engineer 0.25 0.25 0.25 0.25 0.25 4.75 4.40 4.40 4.40 4.40 Interns 2.0 2.0 2.0 3.0 2.0 (continued to next page) 99 Fund:402 Stormwater Management Fund Spokane Valley 2018 Budget (continued from previous page) Budget Summary Recurring Activity 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues StormwaterManagementfees $ 1,918,404 $ 1,861,368 $ 1,898,210 $ 1,860,000 $ 1,870,000 Investment Interest 1,342 2,455 7,690 2,500 7,500 Miscellaneous&Grants Proceeds 0 543,332 61,403 0 0 1,919,746 2,407,155 1,967,303 1,862,500 1,877,500 Expenditures Wages,Payroll Taxes&Benefits 347,503 396,799 465,790 551,321 557,157 Supplies 8,388 30,222 12,286 15,425 14,800 Services&Charges 985,448 1,080,038 1,106,429 1,111,076 1,140,982 Intergovernmental Services 27,167 30,176 31,764 50,000 35,000 Transfers out-#001 13,400 13,400 13,400 13,400 13,400 Transfers out-#501 0 0 0 12,750 12,750 1,381,906 1,550,635 1,629,669 1,753,972 1,774,089 Recurring revenues over(under) Recurring Expenditures 537,840 856,520 337,634 108,528 103,411 Nonrecurring Activity Revenues Grant Proceeds 76,097 0 0 210,000 65,000 FEMA Grant Proceeds-Windstorm 0 0 0 0 0 76,097 0 0 210,000 65,000 Expenditures Capital-Various Projects 700,523 700,521 94,451 450,000 450,000 Effectiveness study 103,306 192,638 110,055 210,000 15,000 Watershed studies 0 0 0 50,000 60,000 Transfers out-#403 (DOE for Decant Proj) 50,125 0 0 0 0 Transfers out-#501 (new pickup) 25,843 0 0 0 0 879,797 893,159 204,506 710,000 525,000 Nonrecurring revenues over(under) Nonrecurring Expenditures (803,700) (893,159) (204,506) (500,000) (460,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (265,860) (36,639) 133,128 (391,472) (356,589) Beginning working capital 2,319,423 1,933,564 1,639,975 1,761,416 1,369,944 Ending working capital $ 2,053,563 $ 1,896,925 $ 1,773,103 $ 1,369,944 $ 1,013,355 100 Fund:403 Aquifer Protection Area Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Spokane County $ 461,828 $ 533,593 $ 391,180 $ 460,000 $ 460,000 Grant DOE-Decant Facility 550,710 0 0 0 0 Grant DOT-Decant Facility 100,000 0 0 0 0 Grant DOE-Broadway Retrofits 49,203 0 0 0 0 Grant DOE-Sprague UIC Elimination 0 1,036,603 0 0 0 Transfers in-#402 170,125 0 0 0 0 Total Revenues 1,331,866 1,570,196 391,180 460,000 460,000 Expenditures Broadway Retrofit 41,114 0 0 0 0 Construction-Decant Facility 893,514 0 0 0 0 SE Yardley Retrofits 728,565 0 0 0 0 Capital-Various projects 0 0 362,115 530,000 400,000 Sprague Swales 510 0 0 0 0 Depreciation Expense-Cap Imp 0 125,599 0 0 0 Transfers out-#402 0 120,000 0 0 0 Total Expenditures 1,663,703 245,599 362,115 530,000 400,000 Revenues over(under)expenditures $ (331,837) 1,324,597 29,065 (70,000) 60,000 Beginning working capital (402,937) 921,660 950,725 880,725 Ending working capital $ 921,660 $ 950,725 $ 880,725 $ 940,725 101 Fund:501 Equipment Rental&Replacement Fund Spokane Valley 2018 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 Year YR Acquired Age at Retirement Replacement Yr Notes 206 1996 2009 26 2022 207 1997 2009 28 2025 204 1995 2009 33 2028 203 1995 2009 36 2031 205 1996 2009 38 2034 Existing Fleet (9)Snow Plows 208 1997 2009 40 2037 209 1998 2011 42 2040 211 2000 2012 43 2043 210 2010 2011 36 2046 212 2016 2016 33 2049 Truck 206 becomes a backup 213 2019 2019 33 2052 Truck 207 becomes a backup 214 2022 2022 33 2055 Truck 204 becomes a backup/206 is retired 215 2025 2025 33 2058 Truck 203 becomes a backup/207 is retired 216 2028 2028 33 2061 Truck 205 becomes a backup/204 is retired 217 2031 2031 33 2064 Truck 208 becomes a backup/203 is retired 218 2034 2034 33 2067 Truck 209 becomes a backup/205 is retired 219 2037 2037 33 2070 Truck 211 becomes a backup/208 is retired 220 2040 2040 33 2073 Truck 210 becomes a backup/209 is retired 221 2043 2043 33 2076 Truck 212 becomes a backup/211 is retired (continued to next page) 102 Fund:501 Equipment Rental&Replacement Fund Spokane Valley 2018 Budget (continued from previous page) Budget Summary 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Interfund Equip&Vehicle Lease $ 102,744 $ 35,544 $ 106,000 $ 146,429 $ 141,929 Transfers in-#001 (CenterPlace kitchen reserve) 0 0 0 36,600 36,600 Transfers in-#101 (replacements) 25,849 0 0 0 0 Transfers in-#402(addtl'pickup) 25,843 0 0 0 0 Investment Interest 792 1,449 4,394 2,000 4,000 Total Revenues 155,228 36,993 110,394 185,029 182,529 Expenditures Small tools&minor equipment 0 0 0 0 20,000 Snow plow replacement 0 0 222,440 156,800 0 Vehicle Replacement 9,799 16,144 0 0 0 Transfer out-#001 (networking equipment) 9,799 16,144 0 77,000 0 Total Expenditures 19,597 32,289 222,440 233,800 20,000 Revenues over(under)expenditures 135,631 4,704 (112,046) (48,771) 162,529 Beginning working capital 1,228,441 1,235,794 1,248,997 1,136,951 1,088,180 Ending working capital $ 1,364,072 $ 1,240,498 $ 1,136,951 $ 1,088,180 $ 1,250,709 103 Fund:502 Risk Management Fund Spokane Valley 2018 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 2014 2015 2016 2017 2018 Actual Actual Actual Budget Budget Revenues Transfers in-#001 $ 325,000 $ 325,000 $ 325,000 $ 350,000 $ 370,000 Investment Interest 5 8 422 0 0 Total Revenues 325,005 325,008 325,422 350,000 370,000 Expenditures Auto&Property insurance 272,435 284,112 277,298 350,000 370,000 Unemployment Claims 8,532 14,722 8,820 0 0 Miscellaneous 0 0 0 0 0 Total Expenditures 280,967 298,834 286,118 350,000 370,000 Revenues over(under)expenditures 44,038 26,174 39,304 0 0 Beginning working capital 124,171 168,209 194,383 233,687 233,687 Ending working capital $ 168,209 $ 194,383 $ 233,687 $ 233,687 $ 233,687 104 N O O O O N N O O O O O N C O N O r . N N d M N (�O (�O E00 O U O O O .000 00000 ss-.000 .000 O N 00 O O O O O CO N .000 O O O N O V N M O)O O O O CO VCO O N N O O O M 000 . O.(O N..N CON O O O COCO N O) O) O O M c V O I-V V I� N O)V0 CO oO O O O O) M O) O) O O N W .-O CO CO .- m O)N CO V N O V O) ._ ._ if) if) CO O)CO CO N 0 M 0 O 0 CO(O . 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(i 0 N N Y Q 'C C -0 'C c )) .0 'C D U U U U a) 1-1- 0 > w a� o) c o o E o > — a� a� a� a� a� a� a• � E c (o , `o O c U DE o o c m .5 o o i- a) c 0 0 o c W W CO < W O W O 06 co coco O o LL U N U • '''' (1) C M m -' W W W W W W W W W (o (`o (`o (`o M• N I— c) 0 0 0 ii = W U U U U U U U U U U W W W W O oM o0 2017 Work Force Comparison The 26 Washington Communities with a Population of 30,000 to 100,000 CITY POPULATION FULL-TIME PART-TIME Auburn 78,960 427 1 Bothell 44,370 318 13 Bremerton 40,630 306 19 Burien 50,680 65 7 Des Moines 30,860 118 6 Federal Way 96,350 315 9 Issaquah 36,030 236 11 Kennewick 80,280 360 7 Kirkland 86,080 589 14 Lacey 48,700 260 1 Lakewood 59,280 202 5 Longview 37,510 303 8 Lynnwood 36,950 342 8 Marysville 65,900 253 8 Olympia 52,160 567 14 Pasco 71 ,680 341 2 Pullman 33,280 201 32 Puyallup 40,500 255 9 Redmond 62,110 623 26 Sammamish 62,240 106 7 Shoreline 55,060 137 10 Spokane Valley 94,890 88 2 University Place 32,610 46 7 Walla Walla 33,840 271 14 Wenatchee 34,070 157 2 Yakima 93,900 677 27 AVERAGE 291 10 Source: Association of Washington Cities Survey: 2017 Participant Data -Cities and Towns 107 EMPLOYEE POSITION CLASSIFICATION MONTHLY SALARY SCHEDULE Salary Schedule Effective January 1,2018 Position Title Grade 2018 Range City Manager Unclassified Deputy City Manager 21-22 8,888.39 - 14,898.90 City Attorney 21 8,888.39 - 13,409.13 Finance Director 21 8,888.39 - 13,409.13 Parks and Recreation Director 20 7,999.45 - 11,133.86 City Engineer 19 7,199.37 - 10,862.30 Deputy City Attorney 19 7,199.37 - 10,862.30 Human Resources Manager 19 7,199.37 - 10,862.30 Planning Manager 18 6,480.26 - 9,775.59 Building Official 18 6,480.26 - 9,775.59 Engineering Manager 18 6,480.26 - 9,775.59 Economic Development Manager 18 6,480.26 - 9,775.59 Senior Engineer 17 5,831.91 - 8,797.67 Accounting Manager 17 5,831.91 - 8,797.67 Assistant Building Official 17 5,831.91 - 8,797.67 Attorney 16 5,248.20 - 7,917.40 City Clerk 16 5,248.20 - 7,917.40 Engineer 16 5,248.20 - 7,917.40 Public Works Superintendent 16 5,248.20 - 7,917.40 Senior Administrative Analyst 16 5,248.20 - 7,917.40 Senior Planner 16 5,248.20 - 7,917.40 Development Services Coordinator 16 5,248.20 - 7,917.40 GIS/Database Administrator 16 5,248.20 - 7,917.40 Accountant/Budget Analyst 16 5,248.20 - 7,917.40 Associate Planner 15 4,724.02 - 7,126.14 Assistant Engineer 15 4,724.02 - 7,126.14 IT Specialist 15 4,724.02 - 7,126.14 Engineering Technician II 15 4,724.02 - 7,126.14 Economic Development Project Specialist 15 4,724.02 - 7,126.14 Senior Plans Examiner 15 4,724.02 - 7,126.14 Human Resource Analyst 14 4,251.88 - 6,414.02 Administrative Analyst 14 4,251.88 - 6,414.02 CenterPlace Coordinator 14 4,251.88 - 6,414.02 Planner 14 4,251.88 - 6,414.02 Building Inspector II 14 4,251.88 - 6,414.02 Plans Examiner 14 4,251.88 - 6,414.02 Public Information Officer 14 4,251.88 - 6,414.02 Engineering Technician I 14 4,251.88 - 6,414.02 Senior Permit Specialist 14 4,251.88 - 6,414.02 Code Enforcement Officer 14 4,251.88 - 6,414.02 Maintenance/Construction Inspector 13-14 3,826.38 - 6,414.02 Recreation Coordinator 13-14 3,826.38 - 6,414.02 Customer Relations/Facilities Coordinator 13 3,826.38 - 5,772.39 Building Inspector I 13 3,826.38 - 5,772.39 Executive Assistant 13 3,826.38 - 5,772.39 Planning Technician 13 3,826.38 - 5,772.39 Deputy City Clerk 12-13 3,445.00 - 5,772.39 Senior Center Specialist 12-13 3,445.00 - 5,772.39 Human Resources Technician 12-13 3,445.00 - 5,772.39 Permit Facilitator 12 3,445.00 - 5,195.03 Help Desk Technician 12 3,445.00 - 5,195.03 Administrative Assistant 11-12 3,099.55 - 5,195.03 Permit Specialist 11-12 3,099.55 - 5,195.03 Accounting Technician 11-12 3,099.55 - 5,195.03 Maintenance Worker 11-12 3,099.55 - 5,195.03 Office Assistant II 10-11 2,789.41 - 4,675.75 Custodian 10 2,789.41 - 4,207.20 Office Assistant I 9-10 2,510.78 - 4,207.20 Note: Slight rounding differences may exist between the figures reflected on this page and the actual payroll rates computed by the Eden Payroll System. 108 CITY OF SPOKANE VALLEY,WA Glossary of Budget Terms Accrual Basis—A basis of accounting in Capital Improvement — 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. Appropriation — A legal authorization Capital Outlay— Fixed assets that have granted by the City Council to make general value of$5,000 or more and have expenditures and to incur obligations for a useful economic lifetime of more than a specific purpose. one year. Assessed Valuation — The valuation set Capital Project — Major construction, upon real estate and certain personal acquisition, or renovation activities property by the County Assessor as a which add value to government's basis for levying property taxes. physical assets or significantly increase their useful life, also called capital Authorized Positions — Employee improvements. positions, which are authorized in the adopted budget, to be filled during the Capital Projects Fund—A fund created year. to account for all resources and expenditures used for the acquisition of Bond — A long-term promise to repay a fixed assets except those financed by specified amount(the face amount of the enterprise funds. bond) on a particular date (the maturity date). The most common types of bonds Contingency — A budgetary reserve set are general obligation revenue bonds. aside for emergencies or unforeseen Bonds are primarily used to finance expenditures not otherwise budgeted. capital projects. Contractual Services — Services Budget—A plan of financial activity for rendered to a government by private a specified period of time (fiscal year or firms, individuals, or other governmental biennium) indicating all planned agencies. revenues and expenses for the budget period. Debt Service — Payment of interest and principal on borrowed money according Budget Message — The opening section to a predetermined payment schedule. of the budget that provides the City Council and the public with a general Department — The basic unit of service summary of the most important aspects 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. 109 Division — Can be a subunit of a department which encompasses a GASB — 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 designated as the operating year for Infrastructure—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 (FTE) — Interfund 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 per year. For example, a part-time person Levy—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 revenues and of more than one year after the date of expenses that are segregated for the issuance. purpose of carrying out a specific purpose or activity. Mission Statement— A broad statement of the intended accomplishment or basic GAAP—Generally Accepted Accounting purpose of a program. Principles. Uniform minimum standards for financial accounting and recording, Modified Accrual Accounting—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 110 available. Since this type of accounting Taxes— 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, such as a statute or constitutional Unreserved Fund Balance—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. Program — The smallest organization User Charges—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 significantly diverse responsibilities or Vision Statement — 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. 111 CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO. 17-014 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING A BUDGET FOR THE PERIOD JANUARY 1, 2018 THROUGH DECEMBER 31, 2018; APPROPRIATING FUNDS; ESTABLISHING SALARY SCHEDULES FOR ESTABLISHED POSITIONS; AND OTHER MATTERS RELATING THERETO. WHEREAS, State law requires the City Manager to prepare a preliminary budget for the City of Spokane Valley at least 60 days before the beginning of the City fiscal year beginning January 1,2018 and ending December 31,2018; and WHEREAS,the City Manager, in consultation with the Finance Director and department heads, has prepared and placed on file with the City Clerk a preliminary budget, together with an estimate of the amount of money necessary to meet the expenses of the City including payment of outstanding obligations; and WHEREAS,notice was posted and published for public hearings held on September 12, October 10, and November 14,2017. The City Council met and invited public comment in the City Council Chambers during each public hearing; and WHEREAS, proper notice was given and the preliminary budget was filed with the City Clerk September 26,2017; and WHEREAS, the City Council desires to adopt the 2018 budget, including all allowances, and an appropriation for each fund; and WHEREAS, the City of Spokane Valley property tax levy in 2017 for collection in 2018, will be $11,646,122.27, which represents a 0% increase in the 2018 levy. This levy is exclusive of additional revenue resulting from new construction, improvements to property, any increase in the value of State assessed property, any annexations that have occurred, and refunds made. NOW,THEREFORE,the City Council of the City of Spokane Valley do ordain as follows: Section 1. Adoption of 2018 Budget. The budget for the City of Spokane Valley for the year 2018 is adopted at the fund level. The final budget for 2018 is attached hereto, and by this reference is incorporated herein pursuant to RCW 35A.33.075. For summary purposes, the total estimated appropriations for each separate fund, plus the aggregate total for all such funds, is set forth as follows: Ordinance 17-014 Adopting 2018 Budget Page 1 of 3 112 Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources. Appropriations Balance General Fund 001 25,229,916 43,048,025 68,277,941 42,625,888 25,652,053 Street Fund 101 862,428 4,172,200 5,034,628 4,602,291 432,337 Paths&Trails Fund 103 45,984 8,700 54,684 0 54,684 Hotel/Motel Tax-Tourism Facilities Fund 104 1,198,232 378,500 1,576,732 0 1,576,732 Hotel/Motel Tax Fund 105 166,290 581,000 747,290 602,000 145,290 Solid Waste 106 79,122 225,000 304,122 225,000 79,122 PEG Fund 107 57,841 79,000 136,841 71,200 65,641 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,505,325 0 5,505,325 0 5,505,325 Winter Weather Reserve Fund 122 501,435 3,500 504,935 500,000 4,935 LTGO Bond Debt Service Fund 204 78,333 977,400 1,055,733 977,400 78,333 REET 1 Capital Projects Fund 301 1,497,101 807,500 2,304,601 1,816,181 488,420 REET 2 Capital Projects Fund 302 1,365,041 808,000 2,173,041 1,770,873 402,168 Street Capital Projects 303 75,566 11,151,790 11,227,356 11,151,790 75,566 Park Capital Projects Fund 309 144,714 2,577,300 2,722,014 2,441,300 280,714 Civic Facilities Capital Projects Fund 310 842,159 5,900 848,059 0 848,059 Pavement Preservation Fund 311 2,585,864 4,973,200 7,559,064 4,058,600 3,500,464 Capital Reserve Fund 312 4,033,559 1,090,960 5,124,519 439,100 4,685,419 City Hall Construction Fund 313 74,960 0 74,960 74,960 0 Railroad Grade Separation Projects Fund 314 1,050,000 1,919,921 2,969,921 2,919,921 50,000 45,693,870 72,807,896 118,501,766 74,276,504 44,225,262 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Stormwater Management Fund 402 1,369,944 1,942,500 3,312,444 2,299,089 1,013,355 Aquifer Protection Area Fund 403 880,725 460,000 1,340,725 400,000 940,725 Equipment Rental&Replacement Fund 501 1,088,180 182,529 1,270,709 20,000 1,250,709 Risk Management Fund 502 233,687 370,000 603,687 370,000 233,687 3,572,536 2,955,029 6,527,565 3,089,089 3,438,476 Total of all Funds 49,266,406 75,762,925 125,029,331 77,365,593 47,663,738 The total balance of all funds appropriated for 2018 is$77,365,593. Section 2. Transmittal of Budget. A complete copy of the budget as adopted,together with a copy of this Ordinance, shall be transmitted by the City Clerk to the Division of Municipal Corporations in the Office of the State Auditor and to the Association of Washington Cities. Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 4. Effective Date. This Ordinance shall be in full force and effect five days after the date of publication of this Ordinance or a summary thereof in the official newspaper of the City. Ordinance 17-014 Adopting 2018 Budget Page 2 of 3 113 PASSED by the City Council this 14th day of Novembr, 2017/ _7 L.R. Higgins, �' �. a o: � AT hristine Bainbridge, • Clerk Approved As To Form: —1-aittV Office f he City A o y Date of Publication: I/-a2(1-o2d/9 Effective Date: /7 - ,26/9 Ordinance 17-014 Adopting 2018 Budget Page 3 of 3 114