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2023 Approved Budget SCITY oka valley ne .0, 2023 Annual B - r m tT B a 46 Z pi. z�' "� 41- •ram w■ • ra �`P ti . S.. y` .� - .I. s. T r - R - • ' r . 10210 E. Sprague Avenue Spokane Valley, WA 99206 www.SpokaneValley.org Sjökiie TY a ey ° This page left intentionally blank. Table of Contents City of Spokane Valley, WA Spokane County January 1, 2023 through December 31, 2023 Summary of Councilmembers III City Manager's Budget Message 1-12 Finance Director's Message -About the 2022 Budget and Budget Development Process...13-28 Budget Summary 29-42 Revenues by Fund and Type 43-50 Expenditures by Fund and Department 51-54 General Fund Department Changes from 2022 to 2023 55-57 #001- General Fund- Expenditures by Department by Type City Council 58 City Manager 59 City Attorney 60-61 Public Safety 62-64 Deputy City Manager 65 Finance 66 Human Resources 67 Information Technology 68 Facilities 69 Community & Public Works 70-74 Economic Development 75 Parks & Recreation 76-80 General Government 81-82 Special Revenue Funds #101 - Street Fund 83-84 #103 - Paths & Trails Fund 85 #104 - Hotel / Motel Tax—Tourism Facilities Fund 86 #105 - Hotel / Motel Tax Fund 86 #106 - Solid Waste Fund 87 #107 - PEG Fund 88 #108 - Affordable & Supportive Housing Sales Tax 88 #120 - CenterPlace Operating Reserve Fund 89 #121 - Service Level Stabilization Reserve Fund 90 #122 - Winter Weather Reserve Fund 90 City of Spokane Valley 2023 Budget Debt Service Funds #204 - Limited Tax General Obligation (LTGO) Fund 91 Capital Projects Funds #301 - REET 1 Capital Projects Fund 92 #302 - REET 2 Capital Projects Fund 93 #303 - Street Capital Projects Fund 94-95 #309 - Parks Capital Projects Fund 96 #310 - Civic Facilities Capital Projects Fund 97 #311 - Pavement Preservation Fund 98 #312 - Capital Reserve Fund 99 #313 - City Hall Construction Fund 100 #314 - Railroad Grade Separation Projects Fund 100 #315 - Transportation Impact Fees Fund 101 #316 - Economic Development Capital Projects Fund 101 Enterprise Funds #402 - Stormwater Management Fund 102-103 #403 - Aquifer Protection Area Fund 104 Internal Service Funds #501 - Equipment Rental & Replacement Fund 105-106 #502 - Risk Management Fund 106 #632 - Passthrough Fees & Taxes Fund 107 Capital Expenditures for 2023 108 FTE Count by Year—2013 through 2023 109 Appendix A, Employee Position Classification and Salary Schedule 110 Glossary of Budget Terms 111-113 Ordinance 22-023 Adopting the 2023 Budget 114 ♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦ •• City Council Members • • ♦ , • Pam Haley,Mayor ♦ Position#5 • • _ • • " ,^ * • • ., • • ,' � ♦ • �a • • ' . • Brandi Peetz Rod Higgins,Deputy Mayor Arne Woodard ♦ • Position#2 Position#1 Position#3 •♦ ♦ • ♦ ♦ ♦ ♦ • ♦ ♦ 1 ♦ „ . ♦ p _ � Ben Wick Tim Hattenburg Laura Padden,. • Position#4 Position#6 Position#7 • • Staff ♦ •• John Hohman, City Manager • • Erik Lamb, Deputy City Manager ♦ • Chelsie Taylor,Finance Director John Bottelli, Parks& Recreation Director •• Cary Driskell, City Attorney• • • William Helbig, Community and Public Works Director ♦ • Gloria Mantz, City Engineer Christine Bainbridge, City Clerk ••••••••••••••••••••••••••••••••••••••••••••••• Sjökiie TY a ey ° This page left intentionally blank. Spokane .0,00Valley City Manager's Budget Message 2023 Annual Budget Dear Citizens, Mayor and City Council of Spokane Valley: I'm honored to be presenting the 2023 annual budget message and to be following the sound financial path that City Council and the previous City Manager collectively developed. This has been a challenging year nationally with record inflation not seen in forty years, dramatically increased energy and food prices, a war in Ukraine that has further disrupted supply chains already stressed from the COVID-19 Pandemic, and uncertainty about where the economy is headed. However, the City has a long history of making prudent financial decisions dating back to our 2003 incorporation. We have engaged in consistently responsible budgeting including realistic revenue projections, controlled spending, limited the growth of City programs, and have adhered to the key Fiscal Policies noted in following pages. We are delivering a budget that will comfortably allow the City to continue to deliver status quo levels of service throughout 2023 while at the same time financing another aggressive capital improvement program. Budget Development Goals 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 General Fund ending 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. Even in light of the financial uncertainty we've faced over the past several years I am pleased to report that each of these goals have again been achieved in the 2023 General Fund Budget. Beyond recurring operating activity, and due to our exceptionally strong financial position, we have been afforded the opportunity to use the portion of the General Fund ending fund balance that exceeds 50% of recurring expenditures for capital construction projects that are important to the City Council and Community. Following this policy of transferring the fund balance in excess of 50%, since 2013, City Councils have made the decision to transfer $42.5 million of excess General Fund reserves to partially finance a variety of projects including: • each phase of the Appleway Trail, • Sullivan Road West Bridge Replacement, • Appleway Avenue Landscaping, • construction of a new City Hall, • the Barker/BNSF Grade Separation Project, • completed a new section of Garland Avenue stretching from Flora Road to Barker Road, 1 • acquired 17.7 acres of land in the Ponderosa area for future park development, • acquired 45 acres of land located east of Flora Road and north of the Spokane River for future park development, and • acquired an additional 3.16 acres adjacent to the police precinct for potential future expansion. The City has also set aside a portion of this money for future projects including: • the Pines/BNSF Grade Separation Project, • the Sullivan/Trent Interchange Replacement Project, • Barker Corridor Projects, and • development of Balfour Park. 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, the circumstances under which 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 and operational sense to do so. 3. Work to incorporate the business plan process into the budget 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 carries an exceptionally low debt burden and currently utilizes only 1.01% of its total debt capacity, and more importantly, only 5.06% of non-voted bond capacity. 6. Strive to prioritize spending in the annual budget process and minimize the mid-year addition of projects and appropriations. Financial Objectives The City's financial 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 #121 ($5.5 million) to maintain ending fund balance minimum. 4. Commit to the strategy that the Service Level Stabilization Reserve Fund #121 will not be reduced below $3.3 million (60% of $5.5 million) without City Council approval. If Council should deem this necessary, the City will then first replenish Fund#121 to at least$3.3 million before any annual General Fund transfers are made to Capital Reserve Fund #312. 5. Maintain the 2023 property tax assessment at a level to support ongoing City operations. For the 2023 levy, we anticipate this will result in a levy of $13,169,200 plus estimated new 2 construction of$400,000 for a total levy of$13,569,200. Any allowable potential increase not taken will be banked for future use as provided by law. 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. 2023 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 Council and Staff collectively dedicate to the annual development of our Operating and Capital budgets. Moderate Growth in Recurring General Fund Expenditures Investing in the essential core services identified by the Council and Community is the foundation of the programs and related expenditures we include 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 2023. The revenue and expenditure figures included in the 2023 Budget are each considerably higher than in previous years and this is a reflection of the impact of inflation being seen at a national level. 3 Increases at the point of budget adoption over the past 9-years have been: Recurring Revenues Expenditures 2023 compared to 2022 2.26% 5.94% 2022 compared to 2021 8.73% 7.66% 2021 compared to 2020 2.20% 5.14% 2020 compared to 2019 6.12% 3.00% 2019 compared to 2018 5.56% 1.90% 2018 compared to 2017 3.73% 1.81% 2017 compared to 2016 4.38% 0.87% 2016 compared to 2015 3.08% 2.79% 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 2023 Budget. Public safety costs including law enforcement, courts, prosecution, public defense and jail related services represent the City's primary operating expenditure and total $32,771,515 which is a 7.05% increase over the 2022 Amended Budget. Noteworthy about the public safety budget are the following observations: • It represents 61.8% of the 2023 General Fund recurring expenditure budget ($32,771,515 / $53,030,555). • It is equivalent to 242% of anticipated 2023 property tax collections ($32,771,515 / $13,569,200). In other words, if property taxes were to double, they alone would not be sufficient to cover Spokane Valley's public safety commitment. Staffing Levels The full-time equivalent employee(FTE) count will increase by 2.00 from 103.25 in 2022 to 105.25 in 2023. This includes: • a 1.0 FTE Paralegal position allocated 100% to the City Attorney's office that will allow for consistency in preparing code enforcement documents and performing legal research. • a 1.0 FTE Traffic Signal Technician position allocated 100% to the Street O&M Fund #101 to provide signal work for the City's traffic network. This will be offset by a reduction in costs for the County Signal Shop services. 4 The FTE count allocated among City funds is as follows: Difference 2022 2023 Between Budget as New 2023 2022 and Amended Positions Budget 2023 General Fund #001 81.845 1.00 82.845 1.00 Street O&M Fund #101 7.475 1.00 8.475 1.00 Street Capital Projects Fund #303 9.80 0.00 9.80 0.00 Stormwater Fund #402 4.13 0.00 4.13 0.00 103.25 2.00 105.25 2.00 The personnel costs for the 82.85 FTEs charged to the General Fund represent just 21.96% of recurring expenditures. Taking into consideration that we contract for police services and are served by Fire and Water districts as well as a Library District,for a city of our size we operate substantially below the normal employee count and consequently at a significantly reduced payroll cost relative to many cities across the country. Spokane Valley staff levels average about one employee for every 1,018 citizens (= population of 107,100 per the Office of Financial Management population estimate / 105.25 FTEs) while comparably sized cities in the State of Washington have a much higher ratio of employees to citizens. Since incorporation, the City has taken a conservative approach to adding new staff and continues to have the 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 continues to be a lean, productive City government. Pavement Preservation 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 costs substantially more than pavement preservation treatments such as crack sealing or grinding and repaving and this is why the City has committed critical financial resources to the preservation of our transportation infrastructure. We're proud of our fine road system and will endeavor to continue to maintain it in the best manner possible with available financial resources. Beginning in 2012, the City initiated a program of expending general fund, special revenue fund and capital project fund revenues and reserves for the purpose of financing our street preservation efforts. In 2023, our community will again see an aggressive program of caring for roadways including the potential of a pilot surface treatment program that would be new to Spokane Valley. For 2023, we project total revenues in Pavement Preservation Fund #311 of $6,546,800 that combined with $1,308,321 of fund reserves will be applied against $7,855,121 in projected expenditures. Sources of revenue in 2023 are anticipated to include $1,700,000 from the Street Wear fee that was adopted by Council in 2018, $1,760,000 in grant proceeds and $3,086,800 in transfers from other City funds consisting of: • $1,011,800 from the General Fund • $1,037,500 from REET 1 Capital Projects Fund #301 5 • $1,037,500 from REET 2 Capital Projects Fund #302 While Pavement Preservation is one of our critical service and budget priorities, we are not sustaining adequate levels of funding for this program. This is discussed further in the "Challenges" portion of this budget message. Transportation and Infrastructure The 2023 Budget includes $30,029,433 of capital expenditures that we anticipate will be in-part offset with $13,219,062 in grant revenues which results in 44.02% of capital projects being financed with State and Federal dollars. The capital expenditures we'll incur in 2023 partially include: • $2,059,585 from the General Fund: o $500,000 for the replacement of financial management software. o $181,000 for Information Technology equipment acquisitions. o $8,500 for office equipment. o $20,000 for the installation of security cameras at the Precinct. o $1,350,085 for the replacement of Police vehicles. • $80,000 for equipment including signal maintenance equipment and streetlight replacement in Street Fund #101. • $33,500 for broadcast equipment from PEG Fund #107. • $9.2 million in Street Capital Projects Fund #303. • $4.8 million in Park Capital Projects Fund #309. • $7.8 million in Pavement Preservation Fund #311. • $3.95 million in Railroad Grade Separation Projects Fund #314. • $1.6 million in Stormwater Fund #402 and Aquifer Protection Area Fund #403. • $513,000 from Equipment Rental and Replacement Fund #501 that includes o $55,000 for the replacement of a vehicle in Engineering, o $70,000 for the replacement of a vehicle in the Street operation, o $58,000 for the addition of a signal maintenance truck for our Street operation, o $55,000 for the replacement of a vehicle in the Stormwater operation, and o $275,000 for the replacement of an existing snowplow. Challenges Beyond the annual challenge of balancing the General Fund budget, the City of Spokane Valley has several 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. • Gas Tax - Because this tax is a fixed amount per gallon, and because each generation of newer vehicles get better gas mileage, we have found that from year to year, this revenue source has hovered somewhere between flat or slightly declining. Added to this decline in revenues was the COVID-19 pandemic event which led to an increase in people working from home and the significant inflation of fuel prices seen during 2022. The gas tax revenues over the past 5-years is as follows: O 2019 - $2,026,698 O 2020 - $1,745,193 O 2021 - $1,909,947 6 O 2022 - $1,904,000 (budgeted) O 2023 - $2,071,300 (budgeted) • Telephone Utility Tax — This 6% tax generated $3,050,000 in the first year of collections which occurred in 2009. In the ensuing 10-years running from 2010 to 2019, as people made the shift from utilizing both land lines and cell phones to just cell phones, this revenue source declined by nearly 50% to just $1,563,981. This decay in revenues was further exacerbated in 2020 and continued into 2021 with the advent and fallout of the COVID-19 pandemic event where people were looking to cut costs and consequently cut many of the remaining land lines at an increased rate. At this point we're projecting 2023 telephone utility tax revenues of just $857,000 which is greater than 70% less than 2009 collections. • Because of the stagnant gas tax revenues and ongoing decline in telephone utility tax revenues, 2023 will be the seventh consecutive year of budgeted recurring expenditures exceeding recurring revenues. o We have been able to continue to deliver historic levels of service over this period by doing the following: ■ 2017 —a $328,000 operating deficit was resolved by drawing down fund reserves. ■ 2018 —a $415,000 operating deficit was resolved by drawing down fund reserves. ■ 2019 — a $907,000 operating deficit was resolved through a transfer from Capital Reserve Fund #312. This is a noteworthy departure from the historic intended use of these monies which has been for one-time capital projects. ■ 2020—a $1,365,000 operating deficit was resolved through a transfer from Capital Project Fund #312. ■ 2021 — a $2,552,600 operating deficit was resolved through a transfer from the General Fund #001. 2022 — an anticipated operating deficit of $3,084,919 will be resolved through a direct transfer from the General Fund #001. 2023 — an anticipated operating deficit of $3,530,048 will be resolved through a direct transfer from the General Fund #001 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 O&M Fund dollars, o Civic Facility Replacement Fund #123 (Fund #123) reserves that were dedicated towards this purpose until their depletion in 2016. o Real estate excise tax (REET) revenues, o Grant revenues, and o Beginning in 2018, the addition of a street wear fee that was negotiated by the City as part of an updated solid waste collection contract that recognized the damage that heavily laden garbage trucks do to our road system. o Following is a table that reflects pavement preservation related revenues over the 12- year period 2011 through 2023: Fund 001 101 106 123 301/302 310 Street Civic Fac. Civic Fac. General Street O&M Wear Fee Replace. REET 1&2 Capital Grants Total Actual 2011 584,681 0 0 0 0 500,000 0 1,084,681 2012 2,045,203 0 0 0 0 0 0 2,045,203 2013 855,857 282,000 0 616,284 300,000 0 35,945 2,090,086 2014 888,823 282,000 0 616,284 368,944 0 2,042,665 4,198,716 2015 920,000 206,618 0 616,284 502,098 0 835,224 3,080,224 2016 943,800 67,342 0 559,808 730,572 0 1,654,698 3,956,220 2017 953,200 67,342 0 0 1,320,958 0 89,208 2,430,708 2018 962,700 67,342 1,000,000 0 1,370,658 0 1,422,404 4,823,104 2019 972,300 0 1,608,028 0 1,468,600 0 2,398,330 6,447,258 2020 982,023 0 1,513,532 0 1,545,277 0 98,281 4,139,113 2021 991,843 0 1,537,776 0 1,654,557 0 0 4,184,176 Budget 2022 1,001,800 0 1,860,519 0 1,829,800 0 1,029,000 5,721,119 2023 1,011,800 0 1,700,000 0 2,075,000 0 1,760,000 6,546,800 13,114,030 972,644 9,219,855 2,408,660 13,166,464 500,000 11,365,755 50,747,408 • The City used Civic Facility Replacement Fund #123 reserves over the 4-year period 2013 through 2016 in order to give the City time to determine how best to finance the pavement preservation plan in 2017 and beyond. • In the years leading up to 2020 we existed in a fairly robust economy and beginning in 2017, following the depletion of Fund #123 reserves, we began applying a portion of our strong Real Estate Excise Tax(REET)collections towards pavement preservation. During this time frame we recognized that when the economy inevitably waned in the future, so too would REET revenues, and a consequence of over reliance on that source of money could in the future limit the City's ability to provide the necessary match needed for State and Federal grants that are applied to other street construction and reconstruction projects. • For a number of years Spokane Valley struggled to develop a pavement management plan that clearly delineated the pavement condition index (PCI) that should be maintained throughout our road system and define the amount of money we should dedicate annually to achieve that plan. • The results of one of our most recent studies was communicated to Council on April 2, 2019 and this answered several questions including how pavement management resources should be allocated between the local access, collector and arterial portions of our street network. This study also showed that the pavement condition index (PCI) of City streets is currently holding fairly steady at a rating of 76 (out of 100) which is considered to be in the "Good" category. • Council has historically committed to continuing to evaluate our pavement management program and has asked Staff to research a variety of pavement treatments beyond our historic use of crack sealing and grind and overlays. • In 2021, the City conducted its first public outreach effort focused on its Pavement Management Program (PMP). • Council created the Street Sustainability Committee (SSC) to assist the City in its public outreach efforts as related to the long-term goals of the PMP. The SSC goals included: 1. Evaluate citizens' interest and support for maintaining city streets and suggesting pavement condition goals. 8 2. Identify preferences for maintaining city streets, types of treatments used, and long-term levels of service. 3. Investigate current revenues and potential future funding sources for maintaining city streets at the recommended level of service and fully funding Street O&M Fund #101, Street Capital Projects Fund #303 and Pavement Preservation Fund #311. • The SSC included 23 leaders representing a broad range of community stakeholders. Between March and October, seventeen public meetings occurred, including seven SSC meetings, seven community meetings, and three open houses. • Two surveys were created: • Collectively, the public outreach resulted in nine recommendations/findings: 1. The pavement condition of City streets is described as "fair" or better. 2. The PMP should be prioritized in the City's budget planning process. 3. Survey respondents support increasing the prioritization of local access streets. 4. Implement surface treatments in the PMP. 5. Increase PMP funding to maintain the streets in their current condition. 6. Do not reduce funding of other City programs to increase funding of the PMP. 7. Transportation Benefit District is the most-preferred funding option. 8. Survey respondents indicate new funding should evenly distribute the cost to everyone. 9. PMP funding should not rely on annual surplus fund transfers. • Through 2022, City Council and staff have begun implementing a few of the recommendations/findings: 1. Create a 2023 open-order pavement preservation contract specifically for local access streets funded by Solid Waste Fund 106; including the potential use of surface treatments. 2. Evaluate the potential implementation of a 2023 surface treatment pilot project. 3. Evaluate the new revenue methods to sustain the PMP, including Street O&M Fund 101, Street Capital Projects Fund #303 and Pavement Preservation Fund #311. 3. Railroad Grade Separation 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. • Barker and Trent Road Overpass (fully funded at $24.7 million), • Pines and Trent Underpass (estimated cost of $40.0 million with $37.3 million of this secured thus far), • Sullivan/Trent Interchange Project (estimated cost of$43 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 Governments over the past several years and will continue to do so into the future. 9 Barker/Trent Grade Separation Project We reached the point of being fully funded for this project in early 2018. Design was completed in 2020 and we have acquired all necessary right-of-way with the exception of one parcel upon which we received notification of a Cert 3 acceptance. Construction funds were obligated in late 2020 and the project was also put out to bid. Construction on the project began in the spring of 2021 and is anticipated to conclude in the fall of 2022. Pines / Trent Grade Separation Project The project is nearing the completion of the design phase having attained environmental approval mid-2022. We anticipate the project cost will be $40.0 million. The City successfully applied for a federal Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant and was awarded $21.7 million. The project has received sufficient federal funds but the City needs to secure matching state or local funds prior to initiating the construction phase of the project. The City is actively pursuing options for this funding. Construction is anticipated to begin in early 2024. Economic Development To the best of our ability we focus on business retention and expansion of existing businesses and recruitment of new businesses. Examples of economic development efforts include: Comprehensive Plan — In the latter part of 2016 the City updated its Comprehensive Plan and included an economic development element. Contained within this element is a summary of the local economy; an assessment of strengths and weaknesses; and policies, programs and projects to foster economic growth. The plan also included implementation strategies to improve retail, enhance tourism, and grow businesses in the City. Among other things, the plan also streamlined land uses by consolidating many zones and reducing many development requirements. Additionally the plan was also designed to provide flexibility in an effort to encourage market driven growth. Retail Recruitment—In 2017 the City expanded into the area of Retail Recruitment by contracting with a firm specializing in this type of service. The services we are seeking in this effort include a review of the retail recruitment strategy; conducting a market and retail gap analysis; development of a recruitment plan; identification of a strategic retail prospect list; and recruitment of retail on behalf of the City. We have again included money in the 2023 Budget to continue this effort. Planned Action Ordinance (PAO)— 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, resulted in a streamlined environmental permitting process in the northeast industrial area of our community. This study completed the environmental permitting requirements for the northeast industrial area which led to the development of a Planned Action Ordinance (PAO) adopted by Council March 12, 2019. The PAO saves 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, and as a result of the PAO, properties can now be marketed as truly "shovel ready". Since adoption of the PAO, nearly all of the total available 459 acres have been purchased and are in various stages of planning, construction, or are occupied with vibrant additions to our local economy. 10 Northeast Industrial Area— In addition to the adoption of the Planned Action Ordinance the City has engaged in a number of capital projects in our Northeast Industrial Area that resulted in the expansion and improvement of our infrastructure and have the dual benefit of improving our road system and making the area more attractive for future economic development. These include: • In 2019 we rebuilt Barker Road from Euclid Avenue to the southern limits of the Barker Grade Separation project including the extension of sewer service by Spokane County. • In partnership with Centennial Properties, in 2020 we completed a project that began in 2019 that resulted in the construction of a new one-mile section of Garland Avenue that stretches from Flora to Barker. This new stretch of road made 150 additional acres of industrial property accessible to development. • The City began a construction project in 2020 that was nearly completed in 2021 that rebuilt Barker Road from Euclid Avenue running south to the Spokane River. Portions of the project that remain consist of a shared use path for pedestrian and bicycle traffic that will be constructed in 2023 and the portion of the road crossing the Union Pacific rail line. Housing — The City investigated many options for increasing housing supply among all affordability levels. Staff has engaged several affordable housing agencies and developers to locate suitable properties for these projects. This has been challenging since large (10+ acres) of undeveloped land is not readily available. The City is working on redevelopment ideas while also studying the possibility of annexing additional areas to provide room for this necessary growth. The Budget for 2023 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 the intended purpose of providing Spokane Valley the means to sustain critical public services during turbulent economic conditions including those experienced during the Great Recession that began in 2008, the COVID-19 Pandemic, and the turbulent economic times that we are currently experiencing. The 2023 Budget again reflects a prudent and guarded continuation of service delivery capabilities. We will in the future, as we have in the past, continue to remain vigilant in our observance of local, state and national events and economic trends that may impact our own community and work towards capitalizing on our strengths, minimizing our weaknesses, and being ever watchful towards both threats and opportunities. Balanced Budget Means exactly what it says— recurring General Fund operating expenses and the programs they support have been balanced with known or reasonably predictable recurring revenues with a minimal increase in property tax and no increase in sales tax rates for the City. The budget is designed to maintain the healthy, positive fund balance at year-end which provide for 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 2023 and beyond. 11 Acknowledgments I would like to acknowledge the Community, City Council and Staff for a long history of financially responsible spending and sensible fiscal planning. By saving and conserving the taxpayers' money and by adopting and adhering to prudent long-term fiscal policies, the City will in 2023 continue to provide levels of service on par with those we've provided in past years. 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 2023 Budget recommendations to achieve the Council's ongoing goal of sustainability. I hope the Citizens of Spokane Valley are proud of the programs and strong financial condition of their City. We invite your examination and questions regarding the 2023 Budget. Respectfully, John Hohman City Manager 12 Si ane FINANCE DEPARTMENT Cp l(J1 Chelsie Taylor, Finance Director Valley 10210 E Sprague Avenue ♦ Spokane Valley WA 99206 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 2023 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 considers unforeseen contingencies and provides for the need for periodic adjustments. 2023 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 and again with the COVID-19 pandemic and subsequent inflation, 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. 13 In mid-April 2022 the Finance Department notified City Departments that their 2023 revenue and expenditure estimates were due by mid-May. Through the summer, the City Manager's office and Finance Department worked to prepare budget worksheets that were communicated to the City Council at a Budget workshop held June 14, 2022. Following the workshop, the Finance Department continued work on the budget including refinements of revenue and expenditure estimates and through September, the Finance Department and City Manager reviewed updated budget projections. By the time the 2023 Budget is scheduled to be adopted on November 8, 2022, the Council will have had an opportunity to discuss it on eight separate occasions, including three public hearings to gather input from citizens: June 14 Council budget workshop August 30 Admin report: Estimated 2023 revenues and expenditures September 13 Public hearing #1 on 2023 revenues and expenditures October 4 City Manager's presentation of preliminary 2023 Budget October 11 Public hearing #2 on 2023 Budget October 25 First reading on ordinance adopting the 2023 Budget November 8 Public hearing #3 on the 2023 Budget November 8 Second reading on ordinance adopting the 2023 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. • 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. 14 • 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. 15 There are four governmental fund types used by the City of Spokane Valley: 1. General Fund This fund is the primary fund of the City of Spokane Valley. It accounts for all financial resources except those required or elected to be accounted for in another fund. 2. Special Revenue Funds These funds account for revenues that are legally restricted or designated to finance particular activities of the City of Spokane Valley. Special Revenue funds include: • #101 — Street Fund • #103 — Paths & Trails Fund • #104 — Hotel / Motel Tax—Tourism Facilities Fund • #105 — Hotel / Motel Tax Fund • #106 — Solid Waste Fund • #107 — PEG Fund • #108 —Affordable & Supportive Housing Sales Tax 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 • #314 — Railroad Grade Separation Projects Fund • #315 —Transportation Impact Fees Fund • #316 — Economic Development Capital 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 position) is segregated into restricted, unrestricted, and invested in capital assets classifications. 16 As described below, there are two generic fund types in this category: 1. Enterprise Funds These funds account for operations that provide goods or services to the general public and are supported primarily by user charges. This type of fund includes: • #402 — Stormwater Management Fund • #403 —Aquifer Protection Area Fund 2. Internal Service Funds These funds account for operations that provide goods or services to other departments or funds of the City. This type of fund includes: • #501 — Equipment Rental and Replacement Fund • #502 — Risk Management Fund Fiduciary Fund Types A third type of fund classification is the fiduciary funds that are used to account for activities conducted for the benefit of those outside the City. Fiduciary funds have the same measurement focus and basis of accounting as proprietary funds. Under this approach, the operating statements for the fiduciary 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. Net position is always classified as restricted. The City uses one fund type in this category: 1. Custodial Funds These funds account for the fees and taxes collected by the City on behalf of other governments, such as Washington State and Spokane County. Custodial Funds are comprised of#632 — Passthrough Fees and Taxes 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, internal service, and fiduciary 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 and Fiduciary 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. 17 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 8.9%. 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 8.9% tax rate to the agencies is as follows: State of Washington 6.50% City of Spokane Valley 0.85% Spokane County 0.15% Criminal Justice 0.10% Spokane Public Facilities District 0.10% * Public Safety 0.10% * 2.30% local tax Juvenile Jail 0.10% * Mental Health 0.10% * Law Enforcement Communications 0.10% * Spokane Transit Authority 0.80% * 8.90% *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. 18 • 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. • 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 2022 population figure used in the 2023 Budget is 107,100 as reported by the Office of Financial Management (OFM) for Washington State on April 1, 2022. 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. 19 • 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 2023 the Municipal Research and Services Center estimates the distribution back to cities will be $19.34 per person. Based upon a City of Spokane Valley population of 107,100 (per the Washington State Office of Financial Management on April 1, 2022) we anticipate the City will collect$2,071,300 in 2023. RCW 47.30.050 specifies that 0.42% of this tax must be expended for paths and trails activities and based upon the 2023 revenue estimate, this compute to $8,700. The balance of$2,062,600 will be credited to Fund #101 for street maintenance and operations. • Telephone Utility Tax The City of Spokane Valley levied a 6% telephone utility tax via Ordinance #08-014 with collections beginning in 2009. Telephone companies providing this service pay the tax to the City monthly. Telephone tax has been estimated at $857,000 for 2023. 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 2023. 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. The hospitality industry, including hotels, was one of the industries affected the most by the COVID- 19 pandemic due to reduced travel as a result of the State's stay home order. This being the case, the City experienced significant reductions in hotel/motel tax collections in 2020. These revenues have recovered in 2022 and are now exceeding pre-pandemic levels. This tax is estimated to generate $600,000 in 2023. 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. The impacts of the COVID-19 pandemic as well as the recovery of this 20 revenue stream as described under Fund #104 above also apply to these revenues. This tax is estimated to generate $900,000 in 2023. Solid Waste Fund #106 Under the City's contract for solid waste transfer, transport and disposal services with Sunshine Recyclers, Inc., Sunshine pays an annual contract administrative fee of$125,000 to the City. Also, under the City's contract for solid waste collection services with Waste Management of Washington, Inc., Waste Management pays an administrative fee of 12.5% of gross receipts. This fee shall be used by the City for costs related to solid waste services, including costs for contract administration, solid waste planning and management, and for a portion of the City's Street preservation and maintenance programs. Of the amounts collected under the fee, no more than 1% of gross receipts may be used for contract administration. PEG Fund #107 Under the City's cable franchise, the franchise grantee remits to the City 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. Affordable and Supportive Housing Sales Tax Fund #108 In the year 2020, the Council authorized the City to collect the affordable and supportive sales tax, which is a rebate of the State sales tax to cities and counties. The amount received by the City is up to .0146% of the taxable retail sales within the City capped at the 2019 fiscal year taxable retail sales. The department of Revenue has estimated this capped distribution to be $200,000 for the City. The City will receive these revenues for 20 years, and the revenues may only be used to support affordable housing within the City or for rental assistance as outlined in RCW 82.14.540. 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, 2023, the outstanding balance on this portion of the bond issue will be $3,430,000. • $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 21 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, 2023, the outstanding balance on this portion of the bond issue will be $155,000. In 2016 the City issued $7,275,000 in LTGO bonds, the proceeds of which were used to finance the construction of a new City Hall along with $6.3 million of City cash that had 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, 2023, the outstanding balance on the bond issue will be $6,225,000. 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 $1,951,000 in 2023. 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 2023. 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 2023: 22 Out: 001 101 105 106 301 302 312 315 Total In 001 0 0 30,000 0 0 0 1,200,000 0 1,230,000 101 3,530,048 0 0 0 0 0 0 0 3,530,048 204 401,150 0 0 0 80,600 80,600 0 0 562,350 303 0 0 0 0 385,967 602,720 0 108,449 1,097,136 In: 309 160,000 0 0 0 0 0 4,523,900 0 4,683,900 311 1,011,800 0 0 1,700,000 1,037,500 1,037,500 0 0 4,786,800 314 0 0 0 0 3,655 135,000 544,392 0 683,047 501 0 58,000 0 0 0 0 0 0 58,000 502 600,000 0 0 0 0 0 0 0 600,000 17,231,281 Total in Total Out 5,702,998 58,000 30,000 1,700,000 1,507,722 1,855,820 6,268,292 108,449 17,231,281 Total out 0 #001 — General Fund is budgeted to transfer out $5,702,998 including: • $3,530,048 to Fund #101 — Street Fund as coverage of the estimated deficit in recurring activity for the 2023 Budget. • $401,150 to Fund #204 — LTGO Debt Service Fund for bond payments on the 2016 LTGO Bonds for the City Hall construction. • $160,000 to Fund #309— Park Capital Projects Fund for park related projects. • $1,011,800 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. • $600,000 to Fund #502—Risk Management Fund for the 2023 property and liability insurance premium. #101 — Street O&M Fund is budgeted to transfer $58,000 to Fund #501 — Equipment Rental and Replacement Fund to fund the purchase of a new truck for the Traffic Signal Maintenance position added in 2023. #105 — Hotel / Motel Tax Fund is budgeted to transfer $30,000 to Fund #001 — General Fund for the purpose of financing advertising at CenterPlace. #106—Solid Waste Fund is budgeted to transfer$1,700,000 to the Pavement Preservation Fund #311 for the purpose of funding pavement preservation projects on local access streets. #301 — REET 1 Capital Projects Fund is budgeted to transfer out $1,507,722 including: • $80,600 to Fund #204— LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $385,967 to Fund #303 — Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $1,037,500 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. • $3,655 to Fund #314 — Railroad Grade Separation Projects Fund for the Pines Road Underpass project. #302 — REET 2 Capital Projects Fund is budgeted to transfer out $1,855,820 including: • $80,600 to Fund #204— LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $602,720 to Fund #303 — Street Capital Projects Fund that will be applied towards grant matches for street construction projects. 23 • $1,037,500 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. • $135,000 to Fund #314 — Railroad Grade Separation Projects Fund for the Sullivan Road Interchange project. #312 — Capital Reserve Fund is budgeted to transfer out $6,268,292 including: • $1,200,000 to Fund #001 — General Fund for the replacement of police vehicles. • $4,523,900 to Fund#309— Parks Capital Projects Fund that will be applied towards the water line at Sullivan Park, Balfour Park construction, and the preliminary design on the Spokane Valley River Loop Trail. • $544,392 to Fund #314 — Railroad Grade Separation Projects Fund that will be applied to grade separation projects at Barker and Pines Roads. #315 — Transportation Impact Fees Fund is budgeted to transfer $108,449 to the Fund #303 — Capital Projects Fund that will be applied toward street construction projects. SIGNIFICANT ASSUMPTIONS IN THE 2023 BUDGET Budget Summary for All Funds • Based upon funding levels anticipated in the 2023 budget, City staff will strive to maintain adequate levels of service. • Appropriations for all City Funds will total $111.4 million including $30 million in capital expenditures, comprised in-part of: o $2 million in Fund #001 — General Fund. o $9.2 million in Fund #303 — Street Capital Projects. o $4.8 million in Fund #309 — Park Capital Projects. o $7.8 million in Fund #311 — Pavement Preservation projects. o $3.9 million in Fund #314— Railroad Grade Separation Projects. o $200 thousand in Fund #402 — Stormwater Management projects. o $1.4 million in Fund #403—Aquifer Protection Area projects. o $513 thousand in Fund #501 — Equipment Rental and Replacement vehicles. • To partially offset the $30 million in capital costs, we anticipate $13.2 million in grant revenues which results in about 44% of capital expenditures being covered with State and Federal money. • Budgets will be adopted across 27 separate funds. • The full-time equivalent employee (FTE) count will increase in 2023 by 2 to 105.25 from 103.25. These increases include a Paralegal position in the City Attorney Department and a Traffic Signal Maintenance position in the Street Fund #101. • The 2023 Budget reflects the ninth 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 $3,086,800. • 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 sets 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. 24 2023 General Fund Revenues • Total recurring 2023 revenues are estimated at $56,418,900 as compared to $55,173,500 in 2022, which is an increase of$1,245,400 or 2.26%. • The two largest sources of revenue continue to be Sales Tax and Property Tax which are collectively estimated to account for 84.86% of 2023 General Fund recurring revenues. • The 2023 general sales tax estimate (excluding criminal justice and public safety sales taxes) is currently estimated at $30.6 million which reflects an increase of $555,000 or 1.85% over the 2022 amended estimate. • The Property Tax levy does not include the potential annual increase allowed by State law. o The 2023 levy is estimated at $13,569,200. o The levy assumes we start with the 2022 levy of$13,169,141, forgo the potential annual increase allowed by State law, and finally add taxes related to new construction which we estimate to be $400,000. • Franchise fees and business registrations are primarily based on projected receipts in 2022. • State shared revenues are based upon a combination of historical collections including 2022 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. 2023 General Fund Expenditures • Total 2023 recurring expenditures are budgeted at $53,030,555 as compared to $50,058,688 in 2022. This is an increase of$2,971,867 or 5.94%. • The City commitment of 6% of recurring General Fund expenditures to pavement preservation equals $3,086,800 and is computed by multiplying total recurring expenditures prior to adding the pavement preservation element ($3,086,800 I $52,018,755 = 6%). The $3,086,800 that is transferred to Pavement Preservation Fund #311 is comprised of the following: o $1,011,800 from General Fund #001 o $1,037,500 from REET 1 Capital Projects Fund #301 o $1,037,500 from REET 2 Capital Projects Fund #302 • 2023 Nonrecurring expenditures total $5,784,633 and include: o $151,000 for Information Technology expenditures including: ■ $15,000 to replace outdated copiers ■ $50,000 for server upgrades ■ $60,000 for network core hardware replacement ■ $26,000 for software upgrades o $8,500 for furniture for the new Paralegal position o $1,389,085 for various Public Safety items including: ■ $15,000 for access and fencing improvements to the White Elephant property ■ $4,000 to install gutters at the Precinct ■ $20,000 to install security cameras in the back lot at the Precinct ■ $1,350,085 for the replacement of police vehicles o $30,000 for a consultant contract for an event planner for the City's 20th anniversary ($50,000 spread over 2022 and 2023) o $26,000 to replace flooring at CenterPlace o $150,000 for improvements to the lobby and greenhouse at CenterPlace o $500,000 for Financial Software capital costs (carryover of costs from 2022) o $3,530,048 transfer out to the Street O&M Fund #101 to cover the deficit in recurring expenditures exceeding recurring revenues in that fund 25 General Fund Revenues Over (Under) Expenditures and Fund Balance • 2023 recurring revenues are anticipated to exceed recurring expenditures by $3,388,345. • Total 2023 expenditures are anticipated to exceed total revenues by $1,196,288. • The total unrestricted General Fund ending fund balance is anticipated to be $36,363,407 at the end of 2023 which is 68.57% of total recurring expenditures of $53,030,555. Our goal is to maintain an ending fund balance of at least 50.0%. Hicihlicghts 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 $2,071,300 according to per capita estimates provided by the Municipal Research and Services Center. Of this amount, $2,062,600 will be credited to the Street O&M Fund #101 and 0.42% or $8,700 to the Paths and Trails Fund #103. • Telephone taxes that are remitted to the City and support Street Fund operations and maintenance are anticipated at $857,000. • 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 2023 we estimate these revenues to be $1,500,000 per each 1/4% for a total of$3,000,000. • Hotel/Motel tax revenues are computed by the City and are dedicated to the promotion of visitors and tourism. In 2023 we estimate the tax will generate $1,500,000, which includes $900,000 in Fund #105 Hotel / Motel Tax Fund from the 2% tax and $600,000 in Fund #104 Hotel / Motel Tax—Tourism Facilities Fund from the 1.3% tax. • The City began receiving the affordable and supportive housing sales tax in 2020 and will receive these revenues as rebate of the State's sales taxes for 20 years. The amount received by the City is capped at 0.0146% of the taxable retail sales within the City for fiscal year 2019, and the revenues may only be used to support affordable housing or rental assistance within the City as outlined in RCW 82.14.540. These revenues are estimated at$200,000 in 2023 in the Affordable & Supportive Housing Sales Tax Fund #108. • The Stormwater Management Fee is based on an equivalent residential unit (ERU) that is equal to 3,160 square feet of impervious surface that is billed at a rate of$21 per single family residence and $21 per ERU for commercial properties (an ERU for a commercial property is computed as total square feet of impervious surface divided by 3,160). In 2023 we estimate this fee will generate $1,951,000. • 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 $13,219,062 in 2023. By fund we anticipate grant revenues as follows: o Fund #001 — General Fund - $120,000 o Fund #303— Street Capital Projects - $7,988,376 o Fund #309 — Parks Capital Projects - $126,100 o Fund #311 — Pavement Preservation - $1,760,000 o Fund #314 — Railroad Grade Separation Projects Fund - $2,827,086 o Fund #403 —Aquifer Protection Area Fund - $397,500 Expenditures • Fund #101 — Street Fund appropriations include: o $6,694,348 for maintenance of City streets, including $1,081,915 in snow operations and $1,000,000 in intergovernmental payments for services. 26 • Fund #105 — Hotel/Motel Tax Fund appropriations include: o a $871,000 for tourism promotion activities. • Fund #106 —Solid Waste Fund appropriations include: o a $1,700,000 transfer out to the Pavement Preservation Fund #311 for street preservation activities. • Fund #301 — REET 1 Capital Projects Fund includes a $1,507,722 appropriation to cover: o a $80,600 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 $385,967 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $1,037,500 transfer to Pavement Preservation Fund #311 for pavement preservation projects. o a $3,322 transfer to the Railroad Grade Separation Project Fund #314 for the Pines Road Underpass project. • Fund #302 — REET 2 Capital Projects Fund includes a $1,855,820 appropriation to cover: o a $80,600 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 $602,720 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $1,037,500 transfer to Pavement Preservation Fund #311 for pavement preservation projects o a $135,000 transfer to the Railroad Grade Separation Project Fund #314 for the Sullivan Road Interchange project. • Fund#303—Street Capital Projects Fund includes an appropriation of$9,157,127 for a variety of street construction projects. • Fund #309— Parks Capital Projects includes a $4,810,000 appropriation to cover a variety of City Park improvements that will be financed through a combination of a $160,000 transfer from the General Fund #001, a $4,523,900 transfer in from the Capital Reserve Fund #312, and $126,100 in grant proceeds. • Fund #311 — Pavement Preservation includes $7,855,121 of pavement preservation projects that will be financed through transfers from other City funds as outlined above under the heading of General Fund Recurring Expenditures. • Fund #312 — Capital Reserve includes $1,200,000 in transfers to Fund #001 — General Fund for the replacement of police vehicles, $4,523,900 in transfers to Fund #309 — Parks Capital Projects that will be applied toward Balfour Park construction, the water line at Sullivan Park, and design of the Spokane Valley River Loop Trail as well as $544,392 in transfers to Fund #314 — Grade Separation Projects for Barker and Pines Roads. • Fund #314 — Railroad Grade Separation Projects includes appropriations in the amount of $3,950,000 towards the Barker Road Grade Separation project, the Pines Road Grade Separation project, and the Sullivan Road Interchange project. 27 • Fund #402 — Stormwater Fund includes $350,000 for nonrecurring expenditures including in part: o $200,000 for various capital projects o $100,000 for the studies related to the City's Stormwater permit and the watershed o $50,000 for an update to the Stormwater Comprehensive Plan • Fund #403 — Aquifer Protection Area Fund includes a $1,421,100 appropriation to various capital projects. 28 CITY OF SPOKANE VALLEY,WA 2023 Budget Summary Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund 001 37,559,695 57,618,900 95,178,595 58,815,188 36,363,407 Street Fund 101 990,801 6,694,348 7,685,149 6,842,348 842,801 Paths&Trails Fund 103 37,658 8,800 46,458 0 46,458 Hotel/Motel Tax-Tourism Facilities Fund 104 5,347,694 605,000 5,952,694 0 5,952,694 Hotel/Motel Tax Fund 105 165,000 901,000 1,066,000 901,000 165,000 Solid Waste 106 879,600 1,929,000 2,808,600 1,929,000 879,600 PEG Fund 107 171,895 71,000 242,895 73,000 169,895 Affordable&Supportive Housing Sales Tax Func 108 560,327 200,000 760,327 0 760,327 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,500,000 0 5,500,000 0 5,500,000 Winter Weather Reserve Fund 122 525,492 1,100 526,592 500,000 26,592 LTGO Bond Debt Service Fund 204 0 1,089,550 1,089,550 1,089,550 0 REET 1 Capital Projects Fund 301 4,649,572 1,504,000 6,153,572 1,507,722 4,645,850 REET 2 Capital Projects Fund 302 5,177,713 1,506,000 6,683,713 1,855,820 4,827,893 Street Capital Projects 303 1,192,615 9,157,127 10,349,742 9,157,127 1,192,615 Park Capital Projects Fund 309 98,255 4,810,000 4,908,255 4,810,000 98,255 Civic Facilities Capital Projects Fund 310 281,356 1,000 282,356 0 282,356 Pavement Preservation Fund 311 5,517,363 6,546,800 12,064,163 7,855,121 4,209,042 Capital Reserve Fund 312 15,891,365 20,000 15,911,365 6,268,292 9,643,073 Railroad Grade Separation Projects Fund 314 360,377 3,697,644 4,058,021 3,950,000 108,021 Transportation Impact Fees Fund 315 453,056 200,000 653,056 108,449 544,607 Economic Development Capital Projects Fund 316 0 0 0 0 0 85,659,834 96,561,269 182,221,103 105,662,617 76,558,486 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Stormwater Management Fund 402 1,619,793 1,953,000 3,572,793 2,510,684 1,062,109 Aquifer Protection Area Fund 403 1,992,014 859,400 2,851,414 1,476,100 1,375,314 Equipment Rental&Replacement Fund 501 1,347,472 421,600 1,769,072 523,000 1,246,072 Risk Management Fund 502 392,820 600,000 992,820 600,000 392,820 Passthrough Fees&Taxes 632 0 591,000 591,000 591,000 0 5,352,099 4,425,000 9,777,099 5,700,784 4,076,315 Total of all Funds 91,011,933 100,986,269 191,998,202 111,363,401 80,634,801 29 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ 1 #001 -GENERAL FUND RECURRING ACTIVITY Revenues Property Tax 13,199,900 0 13,199,900 13,569,200 369,300 2.80% Sales Tax 27,720,000 2,280,000 30,000,000 30,555,000 555,000 1.85% Sales Tax-Public Safety 1,276,000 124,000 1,400,000 1,357,000 (43,000) (3.07%) Sales Tax-Criminal Justice 2,244,000 156,000 2,400,000 2,398,000 (2,000) (0.08%) Gambling Tax and Leasehold Excise Tax 365,000 0 365,000 383,000 18,000 4.93% Franchise Fees/Business Registration 1,215,000 0 1,215,000 1,215,000 0 0.00% State Shared Revenues 1,995,500 0 1,995,500 2,341,000 345,500 17.31% Fines and Forfeitures/Public Safety 529,200 0 529,200 518,600 (10,600) (2.00%) Community and Public Works 2,636,200 363,800 3,000,000 3,145,900 145,900 4.86% Recreation Program Revenues 652,400 (23,000) 629,400 625,500 (3,900) (0.62%) Grant Proceeds 260,000 (160,000) 100,000 120,000 20,000 20.00% Miscellaneous Department Revenue 21,000 0 21,000 2,500 (18,500) (88.10%) Miscellaneous&Investment Interest 288,500 0 288,500 158,200 (130,300) (45.16%) Transfers in-#105(h/m tax-CP advertising) 30,000 0 30,000 30,000 0 0.00% Total Recurring Revenues 52,432,700 2,740,800 55,173,500 56,418,900 1,245,400 2.26% Expenditures City Council 645,170 36,342 681,512 707,558 26,046 3.82% City Manager 1,466,305 (545,179) 921,126 965,890 44,764 4.86% City Attorney 747,890 63,099 810,989 903,110 92,121 11.36% Public Safety 29,804,434 810,000 30,614,434 32,771,515 2,157,081 7.05% Deputy City Manager 295,477 248,945 544,422 590,817 46,395 8.52% Finance 1,571,443 (323,463) 1,247,980 1,313,840 65,860 5.28% Human Resources 330,321 5,044 335,365 354,278 18,913 5.64% Information Technology 0 403,123 403,123 425,208 22,085 5.48% Facilities 400,020 70,000 470,020 469,652 (368) (0.08%) Community&Public Works-Administration 0 302,228 302,228 367,126 64,898 21.47% Community&Public Works-Engineering 2,440,282 (96,096) 2,344,186 2,305,213 (38,973) (1.66%) Community&Public Works-Building 2,631,423 (444,661) 2,186,762 2,075,542 (111,220) (5.09%) Community&Public Works-Planning 0 839,730 839,730 868,894 29,164 3.47% Economic Development 1,188,268 273,594 1,461,862 1,546,494 84,632 5.79% Parks&Rec-Administration 351,018 0 351,018 376,124 25,106 7.15% Parks&Rec-Maintenance 950,455 0 950,455 972,455 22,000 2.31% Parks&Rec-Recreation 330,687 0 330,687 348,356 17,669 5.34% Parks&Rec-Aquatics 538,700 0 538,700 565,700 27,000 5.01% Parks&Rec-Senior Center 36,801 0 36,801 38,112 1,311 3.56% Parks&Rec-CenterPlace 970,375 0 970,375 996,503 26,128 2.69% General Government 1,703,713 0 1,703,713 1,895,218 191,505 11.24% Transfers out-#204(2016 LTGO debt service) 401,400 0 401,400 401,150 (250) (0.06%) Transfers out-#309(park capital projects) 160,000 0 160,000 160,000 0 0.00% Transfers out-#311 (pavement preservation) 1,001,800 0 1,001,800 1,011,800 10,000 1.00% Transfers out-#502(insurance premium) 450,000 0 450,000 600,000 150,000 33.33% Total Recurring Expenditures 48,415,982 1,642,706 50,058,688 53,030,555 2,971,867 5.94% Recurring Revenues Over(Under) Recurring Expenditures 4,016,718 1,098,094 5,114,812 3,388,345 30 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ 1 #001 -GENERAL FUND-continued NONRECURRING ACTIVITY Revenues Grant Proceeds 0 11,000,000 11,000,000 0 (11,000,000) (100.00%) Transfers in-#312(police vehicle replacements) 1,400,000 (1,200,000) 200,000 1,200,000 1,000,000 500.00% Transfers in-#312(City Hall repair costs) 0 700,000 700,000 0 (700,000) (100.00%) Transfers in-#312(sculpture installation) 0 64,000 64,000 0 (64,000) (100.00%) Total Nonrecurring Revenues 1,400,000 10,564,000 11,964,000 1,200,000 (10,764,000) (89.97%) Expenditures General Government-IT capital replacements 136,000 0 136,000 151,000 15,000 11.03% City Manager(office furniture for Project Manager) 5,000 0 5,000 0 (5,000) (100.00%) City Attorney(office furniture for new Paralegal) 0 0 0 8,500 8,500 0.00% Public Safety(2 radar trailer) 24,000 0 24,000 0 (24,000) (100.00%) Public Safety(vehicle for homeless services officer) 55,000 0 55,000 0 (55,000) (100.00%) Public Safety(replace carpet at Precinct) 25,000 0 25,000 0 (25,000) (100.00%) Public Safety(repaint Precinct exterior) 50,000 0 50,000 0 (50,000) (100.00%) Public Safety(tree&debris removal from back lot) 8,000 0 8,000 0 (8,000) (100.00%) Public Safety(police vehicle replacements) 1,400,000 (1,200,000) 200,000 1,350,085 1,150,085 575.04% Public Safety(Access/fencing White Elephant) 0 0 0 15,000 15,000 0.00% Public Safety(Install Precinct gutters) 0 0 0 4,000 4,000 0.00% Public Safety(Install security cameras at Precinct) 0 0 0 20,000 20,000 0.00% Facilities(3rd floor office&furniture) 0 77,640 77,640 0 (77,640) (100.00%) Econ Dev(20th Anniversary event planner) 0 20,000 20,000 30,000 10,000 50.00% Parks&Rec(repaint portico at CenterPlace) 12,000 0 12,000 0 (12,000) (100.00%) Parks&Rec(replace carpet at CenterPlace) 26,700 0 26,700 0 (26,700) (100.00%) Parks&Rec(repair plumbing systems at pools) 30,000 0 30,000 0 (30,000) (100.00%) Parks&Rec(replace CenterPlace flooring) 0 0 0 26,000 26,000 0.00% Parks&Rec(CenterPlace lobby improvements) 0 0 0 150,000 150,000 0.00% Parks&Rec(sculpture installation) 0 79,000 79,000 0 (79,000) (100.00%) Financial Software Capital Costs 1,000,000 (500,000) 500,000 500,000 0 0.00% City Hall Repairs 0 700,000 700,000 0 (700,000) (100.00%) CLFR Project Expenditures 0 7,000,000 7,000,000 0 (7,000,000) (100.00%) Transfers out-#101 (Street Fund operations) 2,820,419 264,500 3,084,919 3,530,048 445,129 14.43% Transfers out-#122(replenish reserve) 0 89,805 89,805 0 (89,805) (100.00%) Transfers out-#312('20 fund bal>50%) 0 3,593,000 3,593,000 0 (3,593,000) (100.00%) Transfers out-#501 (vehicle for Code Enf.Supervisor 40,000 0 40,000 0 (40,000) (100.00%) Total Nonrecurring Expenditures 5,632,119 10,123,945 15,756,064 5,784,633 (9,971,431) (63.29%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (4,232,119) 440,055 (3,792,064) (4,584,633) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (215,401) 1,538,149 1,322,748 (1,196,288) Beginning unrestricted fund balance 36,236,947 36,236,947 37,559,695 Ending unrestricted fund balance 36,021,546 37,559,695 36,363,407 Fund balance as a percent of recurring expenditures 74.40% 75.03% 68.57% General Fund Summary Total revenues 53,832,700 13,304,800 67,137,500 57,618,900 Total expenditures 54,048,101 11,766,651 65,814,752 58,815,188 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (215,401) 1,538,149 1,322,748 (1,196,288) Beginning unrestricted fund balance 36,236,947 36,236,947 37,559,695 Ending unrestricted fund balance 36,021,546 37,559,695 36,363,407 31 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ SPECIAL REVENUE FUNDS #101 -STREET FUND RECURRING ACTIVITY Revenues Utility Tax 932,000 0 932,000 857,000 (75,000) (8.05%) Motor Vehicle Fuel(Gas)Tax 1,896,000 0 1,896,000 2,062,600 166,600 8.79% Multimodal Transportation Revenue 130,200 0 130,200 139,200 9,000 6.91% Right-of-Way Maintenance Fee 85,000 0 85,000 95,000 10,000 11.76% Investment Interest 500 0 500 500 0 0.00% Miscellaneous 10,000 150,000 160,000 10,000 (150,000) (93.75%) Transfers in-#106 0 271,000 271,000 0 (271,000) (100.00%) Total Recurring Revenues 3,053,700 421,000 3,474,700 3,164,300 (310,400) (8.93%) Expenditures Wages/Benefits/Payroll Taxes 1,128,523 0 1,128,523 1,314,394 185,871 16.47% Supplies 176,700 0 176,700 191,500 14,800 8.38% Services&Charges 2,698,644 471,000 3,169,644 2,803,789 (365,855) (11.54%) Snow Operations 890,502 0 890,502 1,081,915 191,413 21.49% Intergovernmental Payments 909,000 0 909,000 1,000,000 91,000 10.01% Vehicle rentals-#501 (non-plow vehicle rental) 10,250 0 10,250 27,750 17,500 170.73% Vehicle rentals-#501 (plow replace.) 60,500 214,500 275,000 275,000 0 0.00% Total Recurring Expenditures 5,874,119 685,500 6,559,619 6,694,348 134,729 2.05% Recurring Revenues Over(Under) Recurring Expenditures (2,820,419) (264,500) (3,084,919) (3,530,048) NONRECURRING ACTIVITY Revenues Transfers in-#001 2,820,419 264,500 3,084,919 3,530,048 445,129 14.43% Total Nonrecurring Revenues 2,820,419 264,500 3,084,919 3,530,048 445,129 14.43% Expenditures Streetlight Replacement Program 35,500 0 35,500 40,000 4,500 12.68% Generator for Maintenance Shop(1/2 cost to#402) 50,000 0 50,000 0 (50,000) (100.00%) Bridge Replacement Program 0 0 0 10,000 Transfers out-#501 80,000 0 80,000 0 (80,000) (100.00%) Signal Maintenance Equipment 0 0 0 40,000 40,000 0.00% Transfers out-#501 (truck for Signal Technician) 0 0 0 58,000 58,000 0.00% Total Nonrecurring Expenditures 165,500 0 165,500 148,000 (17,500) (10.57%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures 2,654,919 264,500 2,919,419 3,382,048 Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (165,500) 0 (165,500) (148,000) Beginning fund balance 1,156,301 1,156,301 990,801 Ending fund balance 990,801 990,801 842,801 Street Fund Summary Total revenues 5,874,119 685,500 6,559,619 6,694,348 Total expenditures 6,039,619 685,500 6,725,119 6,842,348 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (165,500) 0 (165,500) (148,000) Beginning unrestricted fund balance 1,156,301 1,156,301 990,801 Ending unrestricted fund balance 990,801 990,801 842,801 32 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ 1 SPECIAL REVENUE FUNDS-continued #103-PATHS&TRAILS FUND Revenues Motor Vehicle Fuel(Gas)Tax 8,000 0 8,000 8,700 700 8.75% Investment Interest 100 0 100 100 0 0.00% Total revenues 8,100 0 8,100 8,800 700 8.64% Expenditures Transfers out-#309 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 8,100 8,100 8,800 Beginning fund balance 29,558 29,558 37,658 Ending fund balance 37,658 37,658 46,458 #104-HOTEL/MOTEL TAX-TOURISM FACILITIES FUND Revenues Hotel/Motel Tax 400,000 0 400,000 600,000 200,000 50.00% Investment Interest 2,500 0 2,500 5,000 2,500 100.00% Transfers in-#105 0 273,000 273,000 0 (273,000) (100.00%) Total revenues 402,500 273,000 675,500 605,000 (70,500) (10.44%) Expenditures Capital Outlay 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 402,500 675,500 605,000 Beginning fund balance 4,672,194 4,672,194 5,347,694 Ending fund balance 5,074,694 5,347,694 5,952,694 #105-HOTEL/MOTEL TAX FUND Revenues Hotel/Motel Tax 600,000 0 600,000 900,000 300,000 50.00% Investment Interest 1,000 0 1,000 1,000 0 0.00% Total revenues 601,000 0 601,000 901,000 300,000 49.92% Expenditures Transfers out-#001 30,000 0 30,000 30,000 0 0.00% Transfers out-#104 0 273,000 273,000 0 (273,000) (100.00%) Tourism Promotion 571,000 (273,000) 298,000 871,000 573,000 192.28% Total expenditures 601,000 0 601,000 901,000 300,000 49.92% Revenues over(under)expenditures 0 0 0 Beginning fund balance 165,000 165,000 165,000 Ending fund balance 165,000 165,000 165,000 33 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ 1 SPECIAL REVENUE FUNDS-continued #106-SOLID WASTE FUND Revenues Solid Waste Administrative Fee 225,000 0 225,000 225,000 0 0.00% Solid Waste Road Wear Fee 1,600,000 0 1,600,000 1,700,000 100,000 6.25% Investment Interest 7,000 0 7,000 4,000 (3,000) (42.86%) Total revenues 1,832,000 0 1,832,000 1,929,000 97,000 5.29% Expenditures Education&Contract Administration 232,000 0 232,000 229,000 (3,000) (1.29%) Transfers out-#101 0 271,000 271,000 0 (271,000) (100.00%) Transfers out-#311 1,600,000 (10,481) 1,589,519 1,700,000 110,481 6.95% Total expenditures 1,832,000 260,519 2,092,519 1,929,000 (163,519) (7.81%) Revenues over(under)expenditures 0 (260,519) 0 Beginning fund balance 1,140,119 1,140,119 879,600 Ending fund balance 1,140,119 879,600 879,600 #107-PEG FUND Revenues Comcast PEG Contribution 79,000 0 79,000 71,000 (8,000) (10.13%) Total revenues 79,000 0 79,000 71,000 (8,000) (10.13%) Expenditures PEG Reimbursement-CMTV 39,500 0 39,500 39,500 0 0.00% Capital Outlay 33,500 0 33,500 33,500 0 0.00% Total expenditures 73,000 0 73,000 73,000 0 0.00% Revenues over(under)expenditures 6,000 6,000 (2,000) Beginning fund balance 165,895 165,895 171,895 Ending fund balance 171,895 171,895 169,895 #108-AFFORDABLE&SUPPORTIVE HOUSING SALES TAX Revenues Affordable&Supportive Housing Sales Tax 193,000 0 193,000 200,000 7,000 3.63% Miscellaneous 0 0 0 0 0 0.00% Total revenues 193,000 0 193,000 200,000 7,000 3.63% Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 193,000 193,000 200,000 Beginning fund balance 367,327 367,327 560,327 Ending fund balance 560,327 560,327 760,327 34 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ 1 SPECIAL REVENUE FUNDS-continued #120-CENTER PLACE OPERATING RESERVE FUND Revenues Investment Interest 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total revenues 0 0 0 0 0 0.00% Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 0 0 0 Beginning fund balance 300,000 300,000 300,000 Ending fund balance 300,000 300,000 300,000 #121 -SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total revenues 0 0 0 0 0 0.00% Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 0 0 0 Beginning fund balance 5,500,000 5,500,000 5,500,000 Ending fund balance 5,500,000 5,500,000 5,500,000 #122-WINTER WEATHER RESERVE FUND Revenues Investment Interest 800 0 800 1,100 300 37.50% Transfers in-#001 0 89,805 89,805 0 (89,805) (100.00%) Subtotal revenues 800 89,805 90,605 1,100 (89,505) (98.79%) 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 (499,200) (409,395) (498,900) Beginning fund balance 434,887 434,887 525,492 Ending fund balance (64,313) 25,492 26,592 35 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ DEBT SERVICE FUNDS #204-LTGO BOND DEBT SERVICE FUND Revenues Spokane Public Facilities District 501,200 0 501,200 527,200 26,000 5.19% Transfers in-#001 401,400 0 401,400 401,150 (250) (0.06%) Transfers in-#301 81,100 0 81,100 80,600 (500) (0.62%) Transfers in-#302 81,100 0 81,100 80,600 (500) (0.62%) Total revenues 1,064,800 0 1,064,800 1,089,550 24,750 2.32% Expenditures Debt Service Payments-CenterPlace 501,200 0 501,200 527,200 26,000 5.19% Debt Service Payments-Roads 162,200 0 162,200 161,200 (1,000) (0.62%) 2016 LTGO Bond Principal&Interest 401,400 0 401,400 401,150 (250) (0.06%) Total expenditures 1,064,800 0 1,064,800 1,089,550 24,750 2.32% Revenues over(under)expenditures 0 0 0 Beginning fund balance 0 0 0 Ending fund balance 0 0 0 36 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ 1 CAPITAL PROJECTS FUNDS #301 -REET 1 CAPITAL PROJECTS FUND Revenues REET 1 -Taxes 1,500,000 500,000 2,000,000 1,500,000 (500,000) (25.00%) Investment Interest 2,000 0 2,000 4,000 2,000 100.00% Total revenues 1,502,000 500,000 2,002,000 1,504,000 (498,000) (24.88%) Expenditures Transfers out-#204 81,100 0 81,100 80,600 (500) (0.62%) Transfers out-#303 361,780 (49,926) 311,854 385,967 74,113 23.77% Transfers out-#311 (pavement preservation) 914,900 0 914,900 1,037,500 122,600 13.40% Transfers out-#314 0 3,322 3,322 3,655 333 10.02% Total expenditures 1,357,780 (46,604) 1,311,176 1,507,722 196,546 14.99% Revenues over(under)expenditures 144,220 690,824 (3,722) Beginning fund balance 3,958,748 3,958,748 4,649,572 Ending fund balance 4,102,968 4,649,572 4,645,850 #302-REET 2 CAPITAL PROJECTS FUND Revenues REET 2-Taxes 1,500,000 500,000 2,000,000 1,500,000 (500,000) (25.00%) Investment Interest 5,000 0 5,000 6,000 1,000 20.00% Total revenues 1,505,000 500,000 2,005,000 1,506,000 (499,000) (24.89%) Expenditures Transfers out-#204 81,100 0 81,100 80,600 (500) (0.62%) Transfers out-#303 1,113,649 (248,323) 865,326 602,720 (262,606) (30.35%) Transfers out-#309 0 196,817 196,817 0 (196,817) (100.00%) Transfers out-#311 (pavement preservation) 914,900 0 914,900 1,037,500 122,600 13.40% Transfers out-#314 0 0 0 135,000 135,000 0.00% Total expenditures 2,109,649 (51,506) 2,058,143 1,855,820 (202,323) (9.83%) Revenues over(under)expenditures (604,649) (53,143) (349,820) Beginning fund balance 5,230,856 5,230,856 5,177,713 Ending fund balance 4,626,207 5,177,713 4,827,893 37 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ 1 CAPITAL PROJECTS FUNDS-continued #303-STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds 6,956,322 (672,418) 6,283,904 7,988,376 1,704,472 27.12% Developer 1,164,399 148,411 1,312,810 71,615 (1,241,195) (94.54%) Transfers in-#301 361,780 (49,926) 311,854 385,967 74,113 23.77% Transfers in-#302 1,113,649 (248,323) 865,326 602,720 (262,606) (30.35%) Transfers in-#312 225,000 0 225,000 0 (225,000) (100.00%) Transfers in-#315 150,000 (108,449) 41,551 108,449 66,898 161.00% Total revenues 9,971,150 (930,705) 9,040,445 9,157,127 116,682 1.29% Expenditures 205 Sprague/Barker Intersections Improvement 1,871,500 0 1,871,500 19,766 (1,851,734) (98.94%) 249 Sullivan/Wellesley Intersection 1,903,176 0 1,903,176 0 (1,903,176) (100.00%) 293 2018 CSS Citywide Reflective Signal BP 8,250 0 8,250 0 (8,250) (100.00%) 294 Citywide Reflective Signal Post Panels 3,575 0 3,575 0 (3,575) (100.00%) 299 Argonne Rd Concrete Pvmt Indiana to Mont 130,017 0 130,017 0 (130,017) (100.00%) 300 Pines and Mission Intersection Improvement 1,746,643 (1,171,105) 575,538 1,294,831 719,293 124.98% 313 Barker Rd/Union Pacific Crossing 1,444,000 (1,044,000) 400,000 1,044,000 644,000 161.00% 318 Wilbur Sidewalk-Boone to Mission 572,909 0 572,909 0 (572,909) (100.00%) 320 Sullivan Preservation-Sprague to 8th 412,000 0 412,000 2,070,462 1,658,462 402.54% 321 Argonne Corridor Impry-North of Knox 0 0 0 10,000 10,000 0.00% 326 2020 Citywide Reetroreflective Post Plates 142,880 0 142,880 89,502 (53,378) (37.36%) 327 Sprague Stormwater&Crossing Project 0 100,000 100,000 1,557,410 1,457,410 1457.41% 329 Barker Road Imp-City Limits to Appleway 250,000 0 250,000 750,000 500,000 200.00% 332 NE Industrial Area-Sewer Extension 0 0 0 25,000 25,000 0.00% 335 Mission Ave over Evergreen Deck Repair 261,200 0 261,200 0 (261,200) (100.00%) 340 8th Ave Sidewalk-Coleman to Park 0 434,400 434,400 401,011 (33,389) (7.69%) 342 School zone beacons 225,000 0 225,000 0 (225,000) (100.00%) 343 Buckeye Ave Sewer Extenstion 0 750,000 750,000 0 (750,000) (100.00%) 344 Park Rd Sidewalk-Broadway to Cataldo 0 0 0 338,862 338,862 0.00% 345 Park Rd Sidewalk-Nora to Baldwin 0 0 0 311,600 311,600 0.00% 346 Bowdish Sidewalk 12th to 22nd 0 0 0 244,683 244,683 0.00% Contingency 1,000,000 0 1,000,000 1,000,000 0 0.00% Total expenditures 9,971,150 (930,705) 9,040,445 9,157,127 116,682 1.29% Revenues over(under)expenditures 0 0 0 Beginning fund balance 1,192,615 1,192,615 1,192,615 Ending fund balance 1,192,615 1,192,615 1,192,615 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. #309-PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds 126,100 (126,100) 0 126,100 126,100 0.00% Transfers in-#001 160,000 0 160,000 160,000 0 0.00% Transfers in-#302 0 196,817 196,817 0 (196,817) (100.00%) Transfers in-#312 4,522,420 (4,066,231) 456,189 4,523,900 4,067,711 891.67% Total revenues 4,808,520 (3,995,514) 813,006 4,810,000 3,996,994 491.63% Expenditures 314 Balfour Park frontage improvements 0 168,006 168,006 0 (168,006) (100.00%) 316 Balfour Park improvements Phase 1 3,507,520 (3,337,520) 170,000 3,400,000 3,230,000 1900.00% 328 Sullivan Park water line 441,000 (376,000) 65,000 500,000 435,000 669.23% 338 Spokane Valley River Loop Trail 700,000 (450,000) 250,000 750,000 500,000 200.00% Replace pond liner at Mirabeau 80,000 0 80,000 0 (80,000) (100.00%) Parking&Trail Design(Summerfield,Ponderosa,Flo) 0 0 0 136,900 136,900 0.00% West Lawn Shade Canopy for Stage 0 0 0 23,100 23,100 0.00% Total expenditures 4,728,520 (3,995,514) 733,006 4,810,000 4,076,994 556.20% Revenues over(under)expenditures 80,000 80,000 0 Beginning fund balance 18,255 18,255 98,255 Ending fund balance 98,255 98,255 98,255 38 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ 1 % CAPITAL PROJECTS FUNDS-continued #310-CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Investment Interest 1,300 0 1,300 1,000 (300) (23.08%) Total revenues 1,300 0 1,300 1,000 (300) (23.08%) Expenditures Payment to Library District 0 560,000 560,000 0 (560,000) (100.00%) Total expenditures 0 560,000 560,000 0 (560,000) (100.00%) Revenues over(under)expenditures 1,300 (558,700) 1,000 Beginning fund balance 840,056 840,056 281,356 Ending fund balance 841,356 281,356 282,356 Note: The fund balance in#310 includes$839,281.10 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 2022 then the City may repurchase this land at the original sale price of$839,285.10.Of this amount,$560,000 is anticipated to be paid out to the Library District for improvements during 2022. #311 -PAVEMENT PRESERVATION Revenues Transfers in-#001 1,001,800 0 1,001,800 1,011,800 10,000 1.00% Transfers in-#106 1,600,000 (10,481) 1,589,519 1,700,000 110,481 6.95% Transfers in-#301 914,900 0 914,900 1,037,500 122,600 13.40% Transfers in-#302 914,900 0 914,900 1,037,500 122,600 13.40% Grant Proceeds 1,029,000 0 1,029,000 1,760,000 731,000 71.04% Total revenues 5,460,600 (10,481) 5,450,119 6,546,800 1,096,681 20.12% Expenditures Pavement preservation 7,202,000 (1,775,156) 5,426,844 7,805,121 2,378,277 43.82% Pre-project GeoTech 50,000 0 50,000 50,000 0 0.00% Total expenditures 7,252,000 (1,775,156) 5,476,844 7,855,121 2,378,277 43.42% Revenues over(under)expenditures (1,791,400) (26,725) (1,308,321) Beginning fund balance 5,544,088 5,544,088 5,517,363 Ending fund balance 3,752,688 5,517,363 4,209,042 #312-CAPITAL RESERVE FUND Revenues Transfers in-#001('19 fund bal>50%) 0 3,593,000 3,593,000 0 (3,593,000) (100.00%) Grant Proceeds 0 1,000,000 1,000,000 0 (1,000,000) (100.00%) Investment Interest 10,000 0 10,000 20,000 10,000 100.00% Total revenues 10,000 4,593,000 4,603,000 20,000 (4,583,000) (99.57%) Expenditures Transfers out-#001 (police vehicle replacements) 1,400,000 (1,200,000) 200,000 1,200,000 1,000,000 500.00% Transfers out-#001 (City Hall repair costs) 0 700,000 700,000 0 (700,000) (100.00%) Transfers out-#001 (sculpture installation) 0 64,000 64,000 0 (64,000) (100.00%) Transfers out-#303(school zone beacons) 225,000 0 225,000 0 (225,000) (100.00%) Transfers out-#309(Balfour Park Improvements F 3,507,520 (3,366,331) 141,189 3,400,000 3,258,811 2308.12% Transfers out-#309(Sullivan Park water line) 314,900 (249,900) 65,000 373,900 308,900 475.23% Transfers out-#309(Spokane Valley River Loop T 700,000 (450,000) 250,000 750,000 500,000 200.00% Transfers out-#314(Barker Rd Overpass) 724,905 (376,907) 347,998 347,998 0 0.00% Transfers out-#314(Pines Rd Underpass) 0 178,540 178,540 196,394 17,854 10.00% Transfers out-#314(Sullivan Rd Interchange) 101,385 154,667 256,052 0 (256,052) (100.00%) Transfers out-#316(Fairgrounds Building) 750,000 (703,358) 46,642 0 (46,642) (100.00%) WSDOT Sullivan Park Property Acquisition 0 759,600 759,600 0 (759,600) (100.00%) Total expenditures 7,723,710 (4,489,689) 3,234,021 6,268,292 3,034,271 93.82% Revenues over(under)expenditures (7,713,710) 1,368,979 (6,248,292) Beginning fund balance 14,522,386 14,522,386 15,891,365 Ending fund balance 6,808,676 15,891,365 9,643,073 39 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ 1 CAPITAL PROJECTS FUNDS-continued #314-RAILROAD GRADE SEPARATION PROJECTS FUND Revenues Grant Proceeds 1,560,290 242,924 1,803,214 2,827,086 1,023,872 56.78% Developer Contributions 308,592 (121,081) 187,511 187,511 0 0.00% Transfers in-#301 0 3,322 3,322 3,655 333 10.02% Transfers in-#302 0 0 0 135,000 135,000 0.00% Transfers in-#312 826,290 (43,700) 782,590 544,392 (238,198) (30.44%) Total revenues 2,695,172 81,465 2,776,637 3,697,644 921,007 33.17% Expenditures 143 Barker BNSF Grade Separation 1,307,293 (557,293) 750,000 750,000 0 0.00% 223 Pines Rd Underpass 1,366,585 633,415 2,000,000 2,200,000 200,000 10.00% 311 Sullivan Rd Interchange 101,385 154,667 256,052 1,000,000 743,948 290.55% Total expenditures 2,775,263 230,789 3,006,052 3,950,000 943,948 31.40% Revenues over(under)expenditures (80,091) (229,415) (252,356) Beginning fund balance 589,792 589,792 360,377 Ending fund balance 509,701 360,377 108,021 #315-TRANSPORTATION IMPACT FEES FUND Revenues Transportation Impact Fees 200,000 0 200,000 200,000 0 0.00% Total revenues 200,000 0 200,000 200,000 0 0.00% Expenditures Transfers out-#303 150,000 (108,449) 41,551 108,449 66,898 161.00% Total expenditures 150,000 (108,449) 41,551 108,449 66,898 161.00% Revenues over(under)expenditures 50,000 158,449 91,551 Beginning fund balance 294,607 294,607 453,056 Ending fund balance 344,607 453,056 544,607 #316-ECONOMIC DEVELOPMENT CAPITAL PROJECTS FUND Revenues Transfers in-#312(Fairgrounds Building) 750,000 (703,358) 46,642 0 (46,642) (100.00%) Total revenues 750,000 (703,358) 46,642 0 (46,642) (100.00%) Expenditures Fairgrounds Building 750,000 (703,358) 46,642 0 (46,642) (100.00%) Total expenditures 750,000 (703,358) 46,642 0 (46,642) (100.00%) Revenues over(under)expenditures 0 0 0 Beginning fund balance 0 0 0 Ending fund balance 0 0 0 40 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ I % ENTERPRISE FUNDS #402-STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees 1,910,000 0 1,910,000 1,951,000 41,000 2.15% Investment Interest 2,000 0 2,000 2,000 0 0.00% Total Recurring Revenues 1,912,000 0 1,912,000 1,953,000 41,000 2.14% Expenditures Wages/Benefits/Payroll Taxes 560,631 0 560,631 635,392 74,761 13.34% Supplies 18,150 0 18,150 20,800 2,650 14.60% Services&Charges 1,248,395 50,000 1,298,395 1,449,742 151,347 11.66% Intergovernmental Payments 45,000 0 45,000 48,000 3,000 6.67% Vehicle rentals-#501 6,750 0 6,750 6,750 0 0.00% Total Recurring Expenditures 1,878,926 50,000 1,928,926 2,160,684 231,758 12.01% Recurring Revenues Over(Under) Recurring Expenditures 33,074 (50,000) (16,926) (207,684) NONRECURRING ACTIVITY Revenues Grant Proceeds 0 0 0 0 0 0.00% Total Nonrecurring Revenues 0 0 0 0 0 0.00% Expenditures Capital-various projects 315,000 0 315,000 200,000 (115,000) (36.51%) Watershed studies 100,000 0 100,000 100,000 0 0.00% Stormwater Comprehensive Plan Update 100,000 200,000 300,000 50,000 (250,000) (83.33%) Generator for Maintenance Shop(1/2 cost to#101) 50,000 0 50,000 0 Total Nonrecurring Expenditures 565,000 200,000 765,000 350,000 (415,000) (54.25%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (565,000) (200,000) (765,000) (350,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (531,926) (250,000) (781,926) (557,684) Beginning working capital 2,401,719 2,401,719 1,619,793 Ending working capital 1,869,793 1,619,793 1,062,109 Stormwater Fund Summary Total revenues 1,912,000 0 1,912,000 1,953,000 Total expenditures 2,443,926 250,000 2,693,926 2,510,684 Excess(Deficit)of Total Revenues Over(Under) Total Expenditures (531,926) (250,000) (781,926) (557,684) Beginning unrestricted fund balance 2,401,719 2,401,719 1,619,793 Ending unrestricted fund balance 1,869,793 1,619,793 1,062,109 #403-AQUIFER PROTECTION AREA Revenues Spokane County 460,000 0 460,000 460,000 0 0.00% Grant Proceeds 1,881,600 (730,353) 1,151,247 397,500 (753,747) (65.47%) Investment Interest 1,900 0 1,900 1,900 0 0.00% Total revenues 2,343,500 (730,353) 1,613,147 859,400 (753,747) (46.73%) Expenditures Capital-various projects 3,008,800 (2,322,828) 685,972 1,421,100 735,128 107.17% Effectiveness study 55,000 0 55,000 55,000 0 0.00% Total expenditures 3,063,800 (2,322,828) 740,972 1,476,100 735,128 99.21% Revenues over(under)expenditures (720,300) 872,175 (616,700) Beginning working capital 1,119,839 1,119,839 1,992,014 Ending working capital 399,539 1,992,014 1,375,314 41 CITY OF SPOKANE VALLEY,WA 11/8/2022 2023 Budget 2022 2023 Difference Between As As 2022 and 2023 Adopted Amendment Amended Budget $ 1 INTERNAL SERVICE FUNDS #501 -ER&R FUND Revenues Vehicle rentals-#001 31,300 0 31,300 52,100 20,800 66.45% Vehicle rentals-#101 10,250 0 10,250 27,750 17,500 170.73% Vehicle rentals-#101 (plow replace.) 60,500 214,500 275,000 275,000 0 0.00% Vehicle rentals-#402 6,750 0 6,750 6,750 0 0.00% Transfer in-#001 (CenterPlace kitchen reserve) 0 0 0 0 0 0.00% Transfer in-#001 (Code Enforcement Vehicle) 40,000 0 40,000 0 (40,000) (100.00%) Transfer in-#101 (Additional dump bed truck) 80,000 0 80,000 58,000 (22,000) (27.50%) Investment Interest 1,200 0 1,200 2,000 800 66.67% Total revenues 230,000 214,500 444,500 421,600 (22,900) (5.15%) Expenditures Small tools&minor equipment 10,000 0 10,000 10,000 0 0.00% Vehicle purchase 262,500 0 262,500 238,000 (24,500) (9.33%) Snow plow purchase 250,000 0 250,000 275,000 25,000 10.00% Total expenditures 522,500 0 522,500 523,000 500 0.10% Revenues over(under)expenditures (292,500) (78,000) (101,400) Beginning working capital 1,425,472 1,425,472 1,347,472 Ending working capital 1,132,972 1,347,472 1,246,072 #502-RISK MANAGEMENT FUND Revenues Transfers in-#001 450,000 0 450,000 600,000 150,000 33.33% Total revenues 450,000 0 450,000 600,000 150,000 33.33% Expenditures Auto&Property Insurance 450,000 0 450,000 600,000 150,000 33.33% Total expenditures 450,000 0 450,000 600,000 150,000 33.33% Revenues over(under)expenditures 0 0 0 Beginning fund balance 392,820 392,820 392,820 Ending fund balance 392,820 392,820 392,820 FIDUCIARY FUNDS #632-PASSTHROUGH FEES&TAXES FUND Revenues Fees&taxes collected for other governments 400,000 191,000 591,000 591,000 0 0.00% Total revenues 400,000 191,000 591,000 591,000 0 0.00% Expenditures Fees&taxes remitted to other governments 400,000 191,000 591,000 591,000 0 0.00% Total expenditures 400,000 191,000 591,000 591,000 0 0.00% Revenues over(under)expenditures 0 0 0 Beginning fund balance 0 0 0 Ending fund balance 0 0 0 TOTAL OF ALL FUNDS Total of Revenues for all Funds 96,127,261 14,062,659 110,189,920 100,986,269 Total of Expenditures for all Funds 107,856,818 (479,350) 107,377,468 111,363,401 Total grant revenues(included in total revenues) 11,813,312 10,554,053 22,367,365 13,219,062 Total Capital expenditures(included in total expenditures) 32,082,233 (10,377,172) 21,645,061 30,029,433 42 CITY OF SPOKANE VALLEY,WA 2023 Budget Revenues by Fund General Fund Property Tax $ 13,569,200 Sales Tax 30,555,000 Sales Tax-Public Safety 1,357,000 Sales Tax-Criminal Justice 2,398,000 Gambling and Leasehold Excise Tax 383,000 Franchise Fees/Business Registration 1,215,000 State Shared Revenues 2,341,000 Service Revenues 3,145,900 Fines and Forfeitures 518,600 Recreation Program Fees 625,500 Miscellaneous, Investment Int., Transfers 1,510,700 Total General Fund $ 57,618,900 Other Funds 101 Street Fund $ 6,694,348 103 Paths&Trails Fund 8,800 104 Hotel/Motel Tax Tourism Facilities Fund 605,000 105 Hotel/Motel Tax Fund 901,000 106 Solid Waste Fund 1,929,000 107 PEG Fund 71,000 108 Affordable &Supportive Housing Sales Tax 200,000 122 Winter Weather Reserve Fund 1,100 204 LTGO Bond Debt Service Fund 1,089,550 301 REET 1 Capital Projects Fund 1,504,000 302 REET 2 Capital Projects Fund 1,506,000 303 Street Capital Projects Fund 9,157,127 309 Parks Capital Projects Fund 4,810,000 310 Civic Facilities Capital Projects Fund 1,000 311 Pavement Preservation Fund 6,546,800 312 Capital Reserve Fund 20,000 314 Railroad Grade Separation Projects Fund 3,697,644 315 Transportation Impact Fees Fund 200,000 402 Stormwater Management Fund 1,953,000 403 Aquifer Protection Area Fund 859,400 501 Equipment Rental & Replacement Fund 421,600 502 Risk Management Fund 600,000 632 Passthrough Fees&Taxes Fund 591,000 Total Other Funds $ 43,367,369 Total All Funds $ 100,986,269 43 CITY OF SPOKANE VALLEY, WA 2023 General Fund Revenues $57,618,900 Recreation Program Fees 1% Miscellaneous Fines& Forfeitures 3% Property Tax ° 1% 24% Service Revenues 5% State Shared Revenues 4% Franchise Fees/Business Registrations Gambling Taxes= = 1%Public Safety Sales Tax 2% Criminal Justice Sales Tax 4% Sales Tax 53% 44 CITY OF SPOKANE VALLEY, WA 2023 City Wide Revenues $ 100,986,269 Debt Service Fund 1% Capital Projects Funds 27°% Other Special Revenue Funds 4% [ Street Fund Stormwater Management 7°% Fund 2°% APA Fund 1% Internal Service Funds 1% General Fund 57% 45 CITY OF SPOKANE VALLEY,WA 2023 Budget-General Fund Detail Revenues by Type 2019 2020 2021 2022 2023 Amended Proposed Actual Actual Actual Budget Budget Property Tax Property Tax 11,977,663 11,958,296 12,526,709 13,199,900 13,569,200 Property Tax-Delinquent 187,462 127,001 423,445 0 0 12,165,125 12,085,297 12,950,154 13,199,900 13,569,200 Sales Taxes Sales Tax 24,204,763 25,238,481 31,499,534 30,000,000 30,555,000 Sales Tax-Public Safety 1,149,040 1,163,313 1,398,648 1,400,000 1,357,000 Sales Tax-Criminal Justice 2,028,789 2,049,075 2,472,016 2,400,000 2,398,000 27,382,592 28,450,869 35,370,198 33,800,000 34,310,000 Gambling and Leasehold Excise Tax Amusement Games 14,401 3,906 13,613 13,000 13,000 Card Games 326,721 210,466 386,758 280,000 290,000 Bingo&Raffles 2,101 421 688 1,000 1,000 Punch Boards&Pull Tabs 76,573 63,676 89,747 64,000 72,000 Leasehold Excise Tax 8,029 6,608 4,915 7,000 7,000 Leasehold Excise Tax(State) 13,790 0 0 0 0 441,615 285,077 495,721 365,000 383,000 Licenses&Permits General Business Licenses 115,235 114,652 209,835 115,000 115,000 Franchise Fees 1,100,597 1,126,185 1,166,509 1,100,000 1,100,000 1,215,832 1,240,837 1,376,344 1,215,000 1,215,000 State Shared Revenues City Assistance State Revenue 112,334 109,309 312,720 0 0 Streamline Mitigation of Sales Tax 2,004 0 0 0 0 Payment in Lieu of Taxes-DNR 3,630 7,347 3,320 4,000 4,000 CJ-High Crime 263,038 275,590 307,978 100,000 250,000 MVET Criminal Justice-Population 29,063 30,723 33,381 34,500 38,500 CJ Contracted Services 179,012 188,640 202,289 170,000 177,000 CJ Special Programs 104,438 109,811 118,733 122,000 136,000 Marijuana Excise Tax Distribution 187,547 184,812 212,580 147,000 167,000 DUI-Cities 13,038 14,712 16,689 14,000 14,500 Liquor Board Excise Tax 533,694 637,464 710,593 636,000 735,000 Liquor Board Profits 781,018 776,368 770,254 768,000 819,000 2,208,816 2,334,776 2,688,537 1,995,500 2,341,000 Service Revenues Accessory Dwelling 588 924 3,000 500 1,000 Building&Planning Fees 263,991 245,449 452,967 195,200 265,800 Planning Fees 909,688 918,230 1,365,855 661,000 825,000 Building Permits 1,508,693 1,705,159 2,536,834 1,739,800 1,600,000 Code Enforcement 10,734 18,339 17,928 11,000 12,000 Demolition Permits 4,553 4,147 4,952 4,000 4,000 Entertainment License 7,087 1,575 1,575 4,000 1,600 Grading Permits 26,286 26,366 40,115 16,000 22,000 Home Profession Fee 2,520 2,688 2,172 3,000 3,000 Mechanical Permits 147,879 158,269 183,608 129,000 145,000 Misc.Permits&Fees 23,968 33,558 55,940 16,000 24,000 Plumbing Permits 74,808 100,957 94,396 73,000 80,000 Right of Way Permits 197,026 164,560 183,037 145,000 160,000 Street Vacation Permits 4,095 2,730 2,279 2,000 2,000 Temporary Use Permit Fees 157 471 1,500 500 500 3,182,073 3,383,422 4,946,158 3,000,000 3,145,900 46 CITY OF SPOKANE VALLEY,WA 2023 Budget-General Fund Detail Revenues by Type 2019 2020 2021 2022 2023 Amended Proposed Actual Actual Actual Budget Budget Fines and Forfeitures Public Safety False Alarm Services 64,845 56,785 59,666 60,000 60,000 Public Safety Grants 0 0 100,934 50,000 50,000 LE&CJ One-Time City Assistance 0 0 389,399 0 0 Fines&Forfeits-Traffic 428,191 323,494 341,849 389,200 383,100 Other Criminal-Non Traffic Fines 459,460 22,065 25,128 28,500 25,500 952,496 402,344 916,976 527,700 518,600 Limited term employee-project Activity Fees(To use a recreational facility) 526,026 130,049 222,115 440,100 436,400 Program Fees(To participate in a program) 205,914 18,140 79,956 189,300 189,100 731,940 148,189 302,071 629,400 625,500 Miscellaneous AWC Health&Wellness 0 0 0 1,000 1,000 Investment Interest 916,684 254,636 70,407 200,000 65,000 Sales Tax Interest 46,720 32,590 18,321 30,000 25,000 Interest on Gambling Tax 138 355 112 300 200 Interest on Liens&Judgments 187 0 0 1,000 2,000 Police Precinct Rent 39,178 39,888 44,899 40,000 40,000 Police Precinct Maintenance 14,717 14,523 24,793 15,000 25,000 Judgments and Settlements 1,686 0 26 0 2,000 Miscellaneous Revenue&Grant Proceeds 28,458 59,562 165,582 121,000 117,000 COVID-19 Stimulus Funding 0 4,352,400 37,141 11,000,000 0 Copy Charges 1,520 856 651 1,500 1,500 Pass-Through Services 1,172 1,189 1,978 1,200 2,000 1,050,460 4,755,999 363,910 11,411,000 280,700 Transfers Transfers in-#105(h/m tax-CP advertising) 0 11,390 9,516 30,000 30,000 Transfers in-#106(solid waste repayment) 30,000 0 0 0 0 Transfers in-#312 40,422 0 0 964,000 1,200,000 70,422 11,390 9,516 994,000 1,230,000 Total General Fund Revenue 49,401,371 53,098,200 59,419,585 67,137,500 57,618,900 47 CITY OF SPOKANE VALLEY,WA 2023 Budget-Other Funds Detail Revenues by Type 2019 2020 2021 2022 2023 Amended Proposed Actual Actual Actual Budget Budget 101-Street Fund Utility tax 1,563,981 1,388,026 1,084,387 932,000 857,000 Motor Vehicle Fuel(Gas)Tax 2,018,186 1,737,864 1,901,926 1,896,000 2,062,600 Multimodal Transportation Revenue 132,637 131,847 132,334 130,200 139,200 Right-of-Way Maintenance Fee 84,704 93,033 115,307 85,000 95,000 Investment Interest 4,022 829 556 500 500 Other Miscellaneous Revenues&Grants 23,911 55,441 282,509 160,000 10,000 Nonrecurring Transfer in-#001 0 0 2,552,600 3,084,919 3,530,048 Nonrecurring Transfer in-#106 0 0 0 271,000 0 Nonrecurring Transfer in-#122 620,000 364,439 89,805 0 0 Nonrecurring Transfer in-#312 907,544 1,364,706 0 0 0 5,354,985 5,136,185 6,159,424 6,559,619 6,694,348 103-Paths&Trails Fund Motor Vehicle Fuel(Gas)Tax 8,512 7,330 8,022 8,000 8,700 Investment interest 186 71 21 100 100 8,698 7,401 8,043 8,100 8,800 104-Hotel/Motel Tax-Tourism Facilities Fund Hotel/Motel Tax 454,283 283,720 481,321 400,000 600,000 Transfers in-#105 275,000 0 1,201,684 273,000 0 Investment interest 43,589 11,908 2,617 2,500 5,000 772,872 295,628 1,685,622 675,500 605,000 105-Hotel/Motel Tax Fund Hotel/Motel Tax 743,852 443,244 744,435 600,000 900,000 Investment Interest 8,459 2,705 898 1,000 1,000 752,311 445,949 745,333 601,000 901,000 106-Solid Waste Solid Waste Administrative fee 252,396 219,943 232,310 225,000 225,000 Solid Waste Road Wear fee 1,513,532 1,537,776 1,760,519 1,600,000 1,700,000 Investment Interest 24,752 7,804 1,480 7,000 4,000 1,790,680 1,765,523 1,994,309 1,832,000 1,929,000 107-PEG Fund Comcast PEG contribution 79,498 76,541 71,252 79,000 71,000 Investment Interest 2,096 596 160 0 0 81,594 77,137 71,412 79,000 71,000 108-Affordable&Supportive Housing Sales Tax Affordable&Supportive Sales Tax 0 151,950 215,088 193,000 200,000 Investment Interest 0 83 205 0 0 0 152,033 215,293 193,000 200,000 122-Winter Weather Reserve Fund FEMA Grant Proceeds 10,366 0 0 0 0 Investment Interest 9,899 1,147 209 800 1,100 Transfer in-#001 120,000 500,000 364,440 89,805 0 140,265 501,147 364,649 90,605 1,100 204-Debt Service-LTGO 03 Fund Facilities District Revenue 432,150 459,500 480,800 501,200 527,200 Transfers in-#001 401,250 401,450 401,500 401,400 401,150 Transfers in-#301 82,475 80,375 80,775 81,100 80,600 Transfers in-#302 82,475 80,375 80,775 81,100 80,600 998,350 1,021,700 1,043,850 1,064,800 1,089,550 48 CITY OF SPOKANE VALLEY,WA 2023 Budget-Other Funds Detail Revenues by Type 2019 2020 2021 2022 2023 Amended Proposed Actual Actual Actual Budget Budget 301-REET 1 Capital Projects Fund REET 1 -1st Quarter Percent 1,695,344 1,754,320 3,109,113 2,000,000 1,500,000 Investment Interest 61,383 14,742 2,827 2,000 4,000 1,756,727 1,769,062 3,111,940 2,002,000 1,504,000 302-REET 2 Capital Projects Fund REET 2-2nd Quarter Percent 1,695,344 1,754,320 3,109,113 2,000,000 1,500,000 Investment Interest 80,784 22,425 5,137 5,000 6,000 1,776,128 1,776,745 3,114,250 2,005,000 1,506,000 303-Street Capital Projects Fund Grant Proceeds 2,783,332 2,813,485 4,174,243 6,283,904 7,988,376 Developer Contributions 228,953 540,325 1,271,759 1,312,810 71,615 Investment Interest 586 0 218 0 0 Transfers in-#301 517,107 330,295 293,208 311,854 385,967 Transfers in-#302 (192,297) 149,678 1,401,744 865,326 602,720 Transfers in-#312 1,999,130 916,837 (87,442) 225,000 0 Transfers in-#315 0 0 0 41,551 108,449 5,336,811 4,750,620 7,053,730 9,040,445 9,157,127 309-Parks Capital Projects Fund Grant Proceeds 1,114,049 1,334,842 593,260 0 126,100 Developer Contribution 0 0 17,896 0 0 Investment Interest 83 0 20 0 0 Transfers in-#001 1,334,369 2,941,166 178,813 160,000 160,000 Transfers in-#302 0 0 64,077 196,817 0 Transfers in-#312 262,599 131,985 604,511 456,189 4,523,900 2,711,100 4,407,993 1,458,577 813,006 4,810,000 310-Civic Facilities Capital Projects Fund Investment Interest 16,700 3,679 692 1,300 1,000 16,700 3,679 692 1,300 1,000 311-Pavement Preservation Fund Grants 3,665,905 98,281 0 1,029,000 1,760,000 Developer Contribution 0 0 29,011 0 0 Investment Interest 49,593 10,960 3,448 0 0 Transfers in-#001 972,300 982,023 991,843 1,001,800 1,011,800 Transfers in-#106 1,608,028 1,513,532 1,537,776 1,589,519 1,700,000 Transfers in-#301 734,300 772,639 827,278 914,900 1,037,500 Transfers in-#302 734,300 772,638 827,279 914,900 1,037,500 7,764,426 4,150,073 4,216,635 5,450,119 6,546,800 312-Capital Reserve Fund Sale of Land 0 0 109,403 0 0 Grant Proceeds 0 0 0 1,000,000 0 Investment Interest 225,908 58,187 8,303 10,000 20,000 Transfers in-#001 7,109,300 0 11,126,343 3,593,000 0 Transfers in-#309 0 200,000 0 0 0 Transfers in-#310 18,452 16,700 3,600 0 0 Transfers in-#313 88,589 0 0 0 0 7,442,249 274,887 11,247,649 4,603,000 20,000 313-City Hall Construction Fund Investment Interest 953 0 0 0 0 953 0 0 0 0 314-Railroad Grade Separation Projects Fund Grant Proceeds 1,447,398 3,394,512 280,718 1,803,214 2,827,086 Investment Interest 15,883 412 427 0 0 Developer Contribution 0 0 51,403 187,511 187,511 Rental Income 0 0 17,793 0 0 Transfers in-#301 104,918 1,335,879 0 3,322 3,655 Transfers in-#302 0 0 660,516 0 135,000 Transfers in-#312 0 198,701 602,272 782,590 544,392 1,568,199 4,929,504 1,613,129 2,776,637 3,697,644 315-Transportation Impact Fees Fund Transportation Impact Fees 0 0 294,477 200,000 200,000 Investment Interest 0 0 131 0 0 0 0 294,608 200,000 200,000 316-Economic Development Capital Projects Fund Transfer in-#312(fairgrounds building) 0 0 3,358 46,642 0 0 0 3,358 46,642 0 49 CITY OF SPOKANE VALLEY,WA 2023 Budget-Other Funds Detail Revenues by Type 2019 2020 2021 2022 2023 Amended Proposed Actual Actual Actual Budget Budget 402-Stormwater Management Fund Stormwater Management Fee 1,936,362 1,910,349 2,026,140 1,910,000 1,951,000 Grant Proceeds-Nonrecurring 58,746 304 95,000 0 0 Investment Interest 48,642 10,726 2,134 2,000 2,000 2,043,750 1,921,379 2,123,274 1,912,000 1,953,000 403-Aquifer Protection Area Fund Spokane County 469,429 426,234 522,357 460,000 460,000 Grant Proceeds 101,715 60,996 1,337,636 1,151,247 397,500 Developer Contribution 0 0 157,865 0 0 Investment Interest 37,329 9,135 1,221 1,900 1,900 Transfers in-#302 0 0 14,926 0 0 608,473 496,365 2,034,005 1,613,147 859,400 501-Equipment Rental&Replacement Fund Vehicle rentals-#001 30,000 28,000 31,300 31,300 52,100 Vehicle rentals-#101 21,250 14,500 10,250 10,250 27,750 Vehicle rentals-#101 (plow replace.) 77,929 48,500 60,500 275,000 275,000 Vehicle rentals-#402 12,750 14,000 6,750 6,750 6,750 Transfers in-#001 (CenterPlace kitchen reserve) 36,600 36,600 36,600 0 0 Transfers in-#001 (Additional vehicle) 0 27,472 0 40,000 0 Transfers in-#101 (Additional vehicle) 0 0 0 80,000 58,000 Investment Interest 26,715 6,074 1,147 1,200 2,000 205,244 175,146 146,547 444,500 421,600 502-Risk Management Fund Transfers in-#001 390,000 410,000 425,000 450,000 600,000 Investment Interest 2,124 248 117 0 0 392,124 410,248 425,117 450,000 600,000 632-Passthrough Fees&Taxes Fund Fees&Taxes collected for other governments 0 372,072 589,853 591,000 591,000 0 372,072 589,853 591,000 591,000 Total of"Other Fund"Revenues 41,522,639 34,840,476 49,721,299 43,052,420 43,367,369 General Fund Revenues 49,401,371 53,098,200 59,419,585 67,137,500 57,618,900 Total Revenues 90,924,010 87,938,676 109,140,884 110,189,920 100,986,269 50 CITY OF SPOKANE VALLEY,WA 2023 Budget Expenditures by Fund and Department General Fund Council $ 707,558 City Manager 965,890 City Attorney 911,610 Public Safety 34,160,600 Operations&Administrative Deputy City Manager 590,817 Finance 1,313,840 Human Resources 354,278 Information Technology 425,208 • Facilities 469,652 Community&Public Works Administration 367,126 Engineering 2,305,213 Building 2,075,542 Planning 868,894 Economic Development 1,576,494 Parks&Recreation Administration 376,124 Maintenance 972,455 Recreation 348,356 Aquatics 565,700 Senior Center 38,112 CenterPlace 1,172,503 General Government 8,249,216 Total General Fund $ 58,815,188 Other Funds 101 Street Fund $ 6,842,348 105 Hotel/Motel Tax Fund 901,000 106 Solid Waste Fund 1,929,000 107 PEG Fund 73,000 122 Winter Weather Reserve Fund 500,000 204 LTGO Bond Debt Service Fund 1,089,550 301 REET 1 Capital Projects Fund 1,507,722 302 REET 2 Capital Projects Fund 1,855,820 303 Street Capital Projects Fund 9,157,127 309 Parks Capital Projects Fund 4,810,000 311 Pavement Preservation Fund 7,855,121 312 Capital Reserve Fund 6,268,292 314 Railroad Grade Separation Projects 3,950,000 315 Transportation Impact Fees Fund 108,449 316 Economic Development Capital Projects Fund 0 402 Stormwater Management Fund 2,510,684 403 Aquifer Protection Area 1,476,100 501 Equipment Rental&Replacement(ER&R) 523,000 502 Risk Management Fund 600,000 632 Passthrough Fees&Taxes Fund 591,000 Total Other Funds $ 52,548,213 Total All Funds $ 111,363,401 51 CITY OF SPOKANE VALLEY, WA 2023 General Fund Expenditures $58,815,188 Public Safety 58% Community& Public Works 10% Facilities?., 1% Parks& Recreation Operations&Administrative 6% 5% Council& Executive 4% General Government 14% 52 CITY OF SPOKANE VALLEY, WA 2023 City Wide Expenditures $ 111,363,401 Capital Projects Funds 32% General Government 7°% Risk Management 7 1% -Debt Service 1% _________Stormwater&APA Funds Tourism Promotion- 4% 1% \ -Other Activities 3% Street Fund- 6% ISParks& Recreations 3% Community&Public Works 5% Council/Executive/Ops& Admin 5% Public Safety 31% 53 CITY OF SPOKANE VALLEY,WA 2023 Budget General Fund Expenditures by Department and Type Wages, Benefits Services& Capital &Payroll Taxes Supplies Charges Intergovernmental Interfund Expenditures Total City Council $ 359,978 $ 5,500 $ 342,080 $ 0 $ 0 $ 0 $ 707,558 City Manager 886,890 5,500 73,500 0 0 0 965,890 City Attorney 801,029 5,322 96,759 0 0 8,500 911,610 Public Safety 37,843 51,500 343,200 32,357,972 0 1,370,085 34,160,600 Operations&Administrative Deputy City Manager 537,517 600 52,700 0 0 0 590,817 Finance 1,292,840 2,900 18,100 0 0 0 1,313,840 Human Resources 322,468 1,200 30,610 0 0 0 354,278 Information Technology 412,308 500 12,400 0 0 0 425,208 Facilities 267,052 42,800 159,800 0 0 0 469,652 Community&Public Works Administration 308,526 1,200 57,400 0 0 0 367,126 Engineering 1,989,144 34,000 282,069 0 0 0 2,305,213 Building 1,658,382 42,500 374,660 0 0 0 2,075,542 Planning 689,349 5,530 174,015 0 0 0 868,894 Community Development Economic Development 938,604 7,900 629,990 0 0 0 1,576,494 Parks&Recreation Administration 297,799 2,900 75,425 0 0 0 376,124 Maintenance 0 2,000 970,455 0 0 0 972,455 Recreation 252,831 15,900 79,625 0 0 0 348,356 Aquatics 0 2,000 563,700 0 0 0 565,700 Senior Center 31,337 1,600 5,175 0 0 0 38,112 CenterPlace 562,648 96,924 512,931 0 0 0 1,172,503 General Government 0 169,650 1,310,450 400,118 5,702,998 666,000 8,249,216 Total $ 11,646,545 $ 497,926 $ 6,165,044 $ 32,758,090 $ 5,702,998 $ 2,044,585 $ 58,815,188 54 CITY OF SPOKANE VALLEY,WA 2023 Budget General Fund Department Changes from 2022 to 2023 Difference Between 2022 2023 2022 and 2023 Amended Proposed Increase Decrease) Budget Budget $ cyo City Council Wages, Payroll Taxes&Benefits 350,912 359,978 9,066 2.58% Supplies 5,500 5,500 0 0.00% Services&Charges 325,100 342,080 16,980 5.22% Total 681,512 707,558 26,046 3.82% City Manager Wages, Payroll Taxes&Benefits 846,026 886,890 40,864 4.83% Supplies 4,300 5,500 1,200 27.91% Services&Charges 70,800 73,500 2,700 3.81% Total 921,126 965,890 44,764 4.86% City Attorney Wages, Payroll Taxes&Benefits 643,833 801,029 157,196 24.42% Supplies 3,505 5,322 1,817 51.84% Services&Charges 163,651 96,759 (66,892) (40.87%) Total 810,989 903,110 92,121 11.36% Public Safety Wages/Payroll Taxes/Benefits 23,126 37,843 14,717 63.64% Supplies 42,100 51,500 9,400 22.33% Other Services and Charges 313,300 324,200 10,900 3.48% Intergovernmental Services 30,235,908 32,357,972 2,122,064 7.02% Total 30,614,434 32,771,515 2,157,081 7.05% Deputy City Manager Wages, Payroll Taxes&Benefits 503,822 537,517 33,695 6.69% Supplies 600 600 0 0.00% Services&Charges 40,000 52,700 12,700 31.75% Total 544,422 590,817 46,395 8.52% Finance/IT Wages, Payroll Taxes&Benefits 1,227,780 1,292,840 65,060 5.30% Supplies 3,900 2,900 (1,000) (25.64%) Services&Charges 16,300 18,100 1,800 11.04% Total 1,247,980 1,313,840 65,860 5.28% Human Resources Wages, Payroll Taxes&Benefits 307,605 322,468 14,863 4.83% Supplies 1,200 1,200 0 0.00% Services&Charges 26,560 30,610 4,050 15.25% Total 335,365 354,278 18,913 5.64% Information Technology Wages, Payroll Taxes&Benefits 390,423 412,308 21,885 5.61% Supplies 500 500 0 0.00% Services&Charges 12,200 12,400 200 1.64% Total 403,123 425,208 22,085 5.48% Facilities Wages, Payroll Taxes&Benefits 261,333 267,052 5,719 2.19% Supplies 27,000 42,800 15,800 58.52% Services&Charges 181,687 159,800 (21,887) (12.05%) Total 470,020 469,652 (368) (0.08%) Community&Public Works-Administration Wages, Payroll Taxes&Benefits 298,928 308,526 9,598 3.21% Supplies 700 1,200 500 71.43% Services&Charges 2,600 57,400 54,800 2107.69% Total 302,228 367,126 64,898 21.47% (Continued to next page) 55 CITY OF SPOKANE VALLEY,WA 2023 Budget General Fund Department Changes from 2022 to 2023 Difference Between 2022 2023 2022 and 2023 Amended Proposed Increase Decrease) Budget Budget $ % (Continued from previous page) Community&Public Works-Engineering Wages, Payroll Taxes&Benefits 2,047,008 1,989,144 (57,864) (2.83%) Supplies 29,800 34,000 4,200 14.09% Services&Charges 267,378 282,069 14,691 5.49% Total 2,344,186 2,305,213 (38,973) (1.66%) Community&Public Works-Building Wages, Payroll Taxes&Benefits 1,511,287 1,658,382 147,095 9.73% Supplies 29,050 42,500 13,450 46.30% Services&Charges 646,425 374,660 (271,765) (42.04%) Total 2,186,762 2,075,542 (111,220) (5.09%) Community&Public Works-Planning Wages, Payroll Taxes&Benefits 669,847 689,349 19,502 2.91% Supplies 8,800 5,530 (3,270) (37.16%) Services&Charges 161,083 174,015 12,932 8.03% Total 839,730 868,894 29,164 3.47% Economic Development Wages, Payroll Taxes&Benefits 903,817 938,604 34,787 3.85% Supplies 6,900 7,900 1,000 14.49% Services&Charges 551,145 599,990 48,845 8.86% Total 1,461,862 1,546,494 84,632 5.79% Parks&Rec-Admin Wages, Payroll Taxes&Benefits 290,768 297,799 7,031 2.42% Supplies 3,500 2,900 (600) (17.14%) Services&Charges 56,750 75,425 18,675 32.91% Total 351,018 376,124 25,106 7.15% Parks&Rec-Maintenance Supplies 2,500 2,000 (500) (20.00%) Services&Charges 947,955 970,455 22,500 2.37% Total 950,455 972,455 22,000 2.31% Parks&Rec-Recreation Wages, Payroll Taxes&Benefits 239,707 252,831 13,124 5.48% Supplies 12,400 15,900 3,500 28.23% Services&Charges 78,580 79,625 1,045 1.33% Total 330,687 348,356 17,669 5.34% Parks&Rec-Aquatics Supplies 2,000 2,000 0 0.00% Services&Charges 536,700 563,700 27,000 5.03% Total 538,700 565,700 27,000 5.01% Parks&Rec-Senior Center Wages, Payroll Taxes&Benefits 29,976 31,337 1,361 4.54% Supplies 1,600 1,600 0 0.00% Services&Charges 5,225 5,175 (50) (0.96%) Total 36,801 38,112 1,311 3.56% Parks&Rec-CenterPlace Wages, Payroll Taxes&Benefits 553,141 562,648 9,507 1.72% Supplies 83,774 96,924 13,150 15.70% Services&Charges 333,460 336,931 3,471 1.04% Total 970,375 996,503 26,128 2.69% (Continued to next page) 56 CITY OF SPOKANE VALLEY,WA 2023 Budget General Fund Department Changes from 2022 to 2023 Difference Between 2022 2023 2022 and 2023 Amended Proposed Increase Decrease) Budget Budget $ (Continued from previous page) General Government Supplies 159,413 169,650 10,237 6.42% Services&Charges 1,254,000 1,310,450 56,450 4.50% Intergovernmental Services 260,300 400,118 139,818 53.71% Capital outlays 30,000 15,000 (15,000) (50.00%) Total 1,703,713 1,895,218 191,505 11.24% Transfers out-#204 401,400 401,150 (250) (0.06%) Transfers out-#309 160,000 160,000 0 0.00% Transfers out-#311 Pavement Preservation 1,001,800 1,011,800 10,000 1.00% Transfers out-#501 0 0 0 0.00% Transfers out-#502 450,000 600,000 150,000 33.33% Total recurring expenditures 50,058,688 53,030,555 2,971,867 5.94% Summary by Category Wages, Payroll Taxes&Benefits 11,099,339 11,646,545 547,206 4.93% Supplies 429,042 497,926 68,884 16.06% Services&Charges 5,990,899 5,940,044 (50,855) (0.85%) Transfers out-#204 401,400 401,150 (250) (0.06%) Transfers out-#309 160,000 160,000 0 0.00% Transfers out-#311 1,001,800 1,011,800 10,000 1.00% Transfers out-#502 450,000 600,000 150,000 33.33% Intergovernmental Svc(public safety) 30,235,908 32,357,972 2,122,064 7.02% Intergovernmental Svc 260,300 400,118 139,818 53.71% Capital outlay 30,000 15,000 (15,000) (50.00%) 50,058,688 53,030,555 2,971,867 5.94% 57 Fund:001 General Fund Spokane Valley Dept: 011 Legislative Branch 2023 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 2022 • Updated and adopted a 2023 State Legislative Agenda. • Updated and adopted a Federal Legislative Agenda. • Worked with State and Federal Legislators and Lobbyists on behalf of City interests including virtual lobbying efforts. • Successfully lobbied for a$21.7 million federal RAISE infrastructure award for the Pines Grade Separation Project. • Successfully lobbied for design funding for the Sullivan/Trent Interchange project and the 190/Argonne Bridge Replacement. • Engaged on regional homeless discussions to investigate options for addressing this issue. • Adopted a balanced 2023 Budget that met our goals of 1)having recurring revenues exceed recurring expenditures, and 2)maintained an ending fund balance of at least 50%of recurring expenditures. • Allocated$16 million of American Rescue Plan Act(ARPA)funds into direct appropriations and expediture categories that are available to outside service providers through a Request for Proposal Process. Goals for 2023 1)As part of the original Bridging the Valley project,advance the Pines Road/BNSF Grade Separation project to construction and work with state and federal legislators towards advancing technical and financial assistance for the Sullivan/Trent Interchange and the Argonne/190 and Barker/190 Bridge Replacement Projects. 2)Actively pursue a plan to sustain the City's Pavement Management Program,to include dedicated funding for the Street Fund#101 and Pavement Preservation Fund#311 that will allow the City's streets to remain in their overall good rating. 3)Pursue state and federal financial assistance to address transportation concerns along the entire Barker Corridor. 4)Sustain and expand where possible,economic development efforts including the retention and expansion of existing businesses and recruitment of new businesses. Actively work with local,state and national partners to support the economic and community recovery from the impact of the COVID-19 pandemic. 5)Continue to foster relationships with federal,state,county,local legislators,municipalities,and agencies. 6)Execute an extension to the law enforcement contract to continue providing robust police services from the Spokane Valley Police Department.Study appropriate staffing levels per industry standards and determine the future needs for the public safety campus. 7)Prioritize involvement in regional public safety issues,in particular discussions regarding the jail,emergency communications,and the criminal justice system to develop options to control costs. 8)Pursue financing for Balfour Park,Appleway Trail amenities,the Spokane Valley River Loop Trail,and Greenacres Park improvements. 9)Pursue financing for design and construction of connections between the Appleway Trail, Balfour Park, Dishman Hills, the Centennial Trail,and Spokane Valley River Loop Trail,creating where possible,continuous loops for users. 10)Increase community interactions,share information,and obtain feedback on current and future projects and priorities. Budget Summary 2019 2020 2021 2022 2023 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 $ 262,268 $ 274,379 $ 282,793 $ 350,912 $ 359,978 Supplies 5,489 1,716 798 5,500 5,500 Services&Charges 295,366 252,247 228,037 325,100 342,080 Total Legislative Branch $ 563,123 $ 622,187 $ 511,628 $ 681,512 $ 707,558 58 Fund:001 General Fund Spokane Valley Dept:013 Executive Branch 2023 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 2022 • Focus staff efforts on the City's budget priorities that are composed of public safety,pavement preservation, transportation and infrastructure and economic development. • Work to support City Council's 2022 Goals as referenced under the Legislative Branch Budget. • Present Council with a balanced 2023 Budget that includes General Fund recurring revenues exceeding recurring expenditures and an ending fund balance that is at least 50%of recurring expenditures. • Worked with Federal and State Legislators and Lobbyists on behalf of the interests of our City. • Prepared the 2023 State and Federal Legislative Agendas for Council consideration. • Received several funding awards for the Pines Grade Separation Project that will lead to construction commencing in 2024 Goals for 2023 • Provide direction and oversight on staff efforts to accomplish budget priorities in the areas of public safety,pavement preservation,transportation and infrastructure,and ecomomic development • Work to support City Council's 2023 Goals as referenced under the Legislative Branch Budget. • Present Council with a balanced 2024 Budget that includes General Fund recurring revenues exceeding recurring expenditures and an ending fund balance that is at least 50%of recurring expenditures. • Worked with Federal and State Legislators and Lobbyists on behalf of the interests of our City. • Prepare the 2024 State and Federal Legislative Agendas for Council consideration. Budget Summary 2019 2020 2021 2022 2023 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 1.0 1.0 1.0 0.0 0.0 Senior Administrative Analyst 1.0 1.0 1.0 0.0 0.0 Administrative Assistant 0.5 0.5 0.5 0.5 0.5 Executive Assistant(CM) 1.0 1.0 1.0 1.0 1.0 Legislative Coordinator 0.0 0.0 0.0 1.0 1.0 Total FTEs 6.5 6.5 6.5 5.5 5.5 Budget Detail Wages,Payroll Taxes&Benefits $ 830,903 $ 856,945 $ 1,050,295 $ 846,026 $ 886,890 Supplies 3,750 3,026 7,027 4,300 5,500 Services&Charges 53,604 22,352 58,496 70,800 73,500 Nonrecurring expenditures 0 0 9,796 5,000 0 Total City Manager Division $ 888,257 $ 882,323 $ 1,125,614 $ 926,126 $ 965,890 59 Fund:001 General Fund Spokane Valley Dept:013 2023 Budget Executive Branch 015-City Attorney Division Accomplishments for 2022 • Assisted and advised on numerous significant development and land use issues at the permitting and legislative level,including conducting administrative appeals. Continued advising Community&Public Works regarding large development projects,including litigation in Superior Court and the Court of Appeals related to property acquisitions. • Assisted finance in contracting for new organization-wide finance software package. • Adopted new HEX rules of procedure for clear requirements of hearing recommendations. • Hired a new Senior Deputy City Attorney. • Assisted Council and other staff in establishing a process for distributing$16 million in ARPA/CLFR funding to individuals,businesses,and organizations in substantial need. • Assisted in addressing issues relating to homelessness,including camping regulations,contracting for homeless shelter reservation slots for City homeless,assisting with issues related to funding options for affordable housing and homeless shelters,and regional collaboration. A portion of this work involved working with and training new City personnel and outreach Deputy. Assisted in drafting permanent community services regulations in chapter 19.45 SVMC. • Work with Department of Natural Resources and Attorney Generl on cleaning up 100 acres of DNR property and authorizing City Police to enforce no entry. • Drafted comprehensive street vacation manual and flow chart for staff use. • Drafted City procedure for trespassing someone from City property. • Assisted in drafting and accomplishing goals on the 2022 state and federal legislative agendas. • Assisted in responding to numerous Public Record requests. • Continued assisting in how the City implemented Governor Inslee's orders relating to operation of City facilities in in the COVID-19 pandemic,including appropriate measures and timing for lifting of restrictions of use of City facilities. • Drafted no parking codes and implementation with City Police and SCOPE. • Collaborated with regional partners to oppose Spokane's proposed imposition of a wastewater utility tax on County facilities that would be passed on largely to Spokane Valley residents. • Assisted in drafting code enforcement changes regarding parking on private property. • Advised Council regarding opioid litigation. • Prevailed against Union Pacific Railroad on crossing maintenance fee issue on Barker path. • Assisted in identifying scope of construction defect issues,potential remedies for City Hall,preparing for mediation. • Resolved and successfully abated six nuisance properties to date. • Assisted Code Compliance and outside agencies to successfully resolve 30 repeat and long outstanding nuisance properties,which are now fully cleaned up and in compliance. • Assisted Council and staff regarding potential formation of a City-only Tourism Promotion Area. Goals for 2023 • To have a fully-operational City Attorney's office. - Review processes. - Monitor workload and workload changes. - Track response times. - Identify deficient areas. • To assist other departments in analyzing and mapping existing processes to determine compliance with the law. - Maintain and update all form contracts used by all departments. - Attend internal planning meetings to identify and resolve potential issues. - Review and revise administrative policies and procedures as appropriate. • Provide legal support to other departments and to the City Council to develop,adopt,and enfoce development regulations to implement the Comprehensive Plan. • Negotiate and draft utility franchise agreements on an as-needed basis with utility providers. - Finalize and begin negotiations to establish and update franchise agreements. • Assist Economic Development to identify options for economic development. - Assist with development of functional economic development tools. • Assist other departments in identifying and purchasing properties having long-term strategic benefit for the City. • Assist in implementing internal proceses for allocating ARPA funds. • Fully support code enforcement in requiring non-compliant properties to follow City nuisance codes. (continued on next page) 60 Fund:001 General Fund Spokane Valley Dept:013 2023 Budget Executive Branch (continued from prior page) 015-City Attorney Division Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents City Attorney 1.0 1.0 1.0 1.0 1.0 Senior Deputy City Attorney 0.0 0.0 0.0 1.0 1.0 Deputy City Attorney 1.0 1.0 1.0 1.0 1.0 Attorney 0.5 1.0 1.0 0.0 0.0 Paralegal 0.0 0.0 0.0 0.0 1.0 Administrative Assistant-Legal 1.0 1.0 1.0 1.0 1.0 Total FTEs 3.5 4.0 4.0 4.0 5.0 Interns 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 510,618 $ 593,161 $ 613,097 $ 643,833 $ 801,029 Supplies 1,220 1,573 1,354 3,505 5,322 Services&Charges 53,911 41,973 82,534 163,651 96,759 Nonrecurring expenditures 0 0 0 0 8,500 Total City Attorney Division $ 565,749 $ 636,707 $ 696,985 $ 810,989 $ 911,610 61 Fund:001 General Fund Spokane Valley Dept:016 Public Safety 2023 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 $ 2,794,617 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 27,624,700 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 1,972,198 services for persons sentenced by any City of Spokane Valley Municipal Court Judge for violating laws of the city or state. Animal Control-Spokane County will provide animal control 350,000 services to include licensing,care and treatment of lost or stray animals,and response to potentially dangerous animal confrontations. Non-Departmental Grant expenditures 30,000 Total Recurring Expenditures 32,771,515 Nonrecurring Expenditures: Public Safety(police vehicle replacements) 1,350,085 Public Safety(Access/fencing White Elephant) 15,000 Public Safety(Install Precinct gutters) 4,000 Public Safety(Install security cameras at Precinct) 20,000 Total Nonrecurring Expenditures 1,389,085 Total Recurring and Nonrecurring Expenditures $34,160,600 62 City of Spokane Valley 2023 Budget 016-Public Safety 2019 2020 2021 2022 2023 Amended Actual Actual Actual Budget Budget Recurring: Judicial System: District Court Contract $ 888,965 $ 766,207 $ 1,077,846 $ 1,304,823 $ 1,358,296 Public Defender Contract 745,088 656,464 761,681 805,915 855,426 Prosecutor Contract 424,896 354,499 380,513 399,000 400,000 Pretrial Services Contract 109,783 111,666 159,505 193,062 180,895 Subtotal Judicial System 2,168,732 1,888,836 2,379,545 2,702,800 2,794,617 Law Enforcement System: Sheriff Contract 20,272,826 21,650,792 22,659,251 25,333,601 27,151,157 Emergency Management 89,425 90,324 86,659 94,000 90,000 Wages,Payroll Taxes&Benefits 16,164 22,077 32,785 23,126 37,843 Operating Supplies 72 1,240 0 1,200 1,200 Clothing&Uniform 636 0 0 500 500 Repair&Maintenance Supplies 11,207 8,534 18,591 10,000 17,000 Janitorial Supplies 0 0 2,591 0 2,400 Fuel 0 0 0 400 400 Small Tools and Minor Equipment 0 0 475 0 0 Professional Services 3,773 0 0 0 0 Cell Phone 469 0 0 0 0 Registration 70 0 29 0 0 Law Enforcement Building R&M 16,706 19,997 45,729 22,000 22,000 Electricity/Gas 16,579 19,164 20,970 20,000 20,000 Water 1,762 1,683 1,677 2,000 2,000 Sewer 1,079 777 819 1,000 1,000 Waste Disposal 0 38 0 0 0 Janitorial Services 28,631 35,366 33,602 36,500 47,400 Law Enf.Bldg Repair&Maint 0 26,240 785 30,000 30,000 Taxes and Assessments 715 795 795 800 800 Equipment Rental 767 0 0 0 0 Miscellaneous Service 0 0 238 0 200,000 False Alarm Bank Fees 809 744 967 1,000 1,000 Subtotal Law Enforcement)Syster 20,461,690 21,877,771 22,905,963 25,576,127 27,624,700 Jail System: Jail Contract 1,493,325 1,282,843 1,982,271 1,975,507 1,972,198 Subtotal Jail System 1,493,325 1,282,843 1,982,271 1,975,507 1,972,198 Other: Fines&Forfeitures State Remittance 441,880 0 0 0 0 Animal Control Contract 306,509 313,046 317,603 330,000 350,000 Non-Capital Equipment for JAG Grant 0 30,309 11,168 30,000 30,000 Subtotal Other 748,389 343,356 328,771 360,000 380,000 Subtotal Recurring 24,872,136 25,392,805 27,596,550 30,614,434 32,771,515 Public Safety(police vehicle replacements) 0 0 0 200,000 1,350,085 Public Safety(Access/fencing White Elephai 0 0 0 0 15,000 Public Safety(Install Precinct gutters) 0 0 0 0 4,000 Public Safety(Install security cameras at PrE 0 0 0 0 20,000 Public Safety(vehicle for homeless services 0 0 0 55,000 0 COVID JAG PPE Supplies 0 14,873 0 0 0 COVID JAG Law Enforcement srvs 0 55,648 0 0 0 Office&Operating Supplies 4,069 1,263 0 0 0 Small Tools&Minor Equipment 17,305 0 4,976 0 0 Building and Structures 37,181 0 0 0 0 Heavy Duty Machinery&Equipment 141,690 86,109 0 24,000 0 Carpet and workstation replacement 0 0 0 25,000 0 Building Repair and Maintenance 4,786 0 0 58,000 0 HVAC Units 0 0 67,695 0 0 Subtotal Nonrecurring 205,031 157,893 72,671 362,000 1,389,085 Total Public Safety $25,077,167 $25,550,698 $27,669,221 $30,976,434 $34,160,600 63 City of Spokane Valley 2023 Budgeted Contract Expenditures $30,000,000 Sheriff Contract, 27,151,157 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 District Court Public Law Enf. Jail Contract, Defender Bldg Emergency Contract, Animal Contract, Prosecutor 1,972,198 Control $1,358,296 Contract, Maintenance Management 855,426 Contract, Contract, Contract, ■ 400,000 350,000 30,000 90,000 64 Fund:001 General Fund Spokane Valley Dept:018 Operation&Administrative Services 2023 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 Parks&Recreation and Facilities Department,Office of the City Attorney, Finance Department, IT Department,and oversees the City's Public Safety contracts. The Deputy City Manager 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 2022 NOTE: In 2022,the Deputy City Manager position was modified as part of a reorganization. The accomplishments listed below were completed by both the former and current Deputy City Manager. • Support the 2022 Goals of the Legislative and Executive Branch • Work with the City Manager and Staff to develop the 2023 Budget and Business Plan • Continue construction of the Barker Grade Separation Project • Continue to seek funding of the Pines Grade Separation Project • Continue design for the Pines Grade Separtion Project • Continue to oversee the repairs to City Hall • Expand the implementation of traffic impact fees within the City • Identify annexation areas to allow continued growth • Assist City Council with negotiating and renewing Law Enforcement Agreement Goals for 2023 • Support the 2023 Goals of the Legislative and Executive Branch • Work with the City Manager and Staff to develop the 2024 Budget and Business Plan • Work with City Council,City Manager,Staff,and Spokane Valley Police Department to study,develop,and implement • updated levels of service for Police,including staffing. • Study and develop plan for maximizing CenterPlace operations • Pursue identified annexation areas to allow continued growth • Continue to seek funding of the Pines Grade Separation Project Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Deputy City Manager 1.0 1.0 1.0 1.0 1.0 Senior Admin Analyst 0.0 0.0 0.0 1.0 1.0 Administrative Analyst 0.0 0.0 0.0 1.0 1.0 Total FTEs 1.0 1.0 1.0 3.0 3.0 Budget Detail Wages,Payroll Taxes&Benefits $ 222,070 $ 231,245 $ 240,970 $ 503,822 $ 537,517 Supplies 0 0 0 600 600 Services&Charges 37,162 37,933 43,718 40,000 52,700 Total Deputy City Manager Division $ 259,232 $ 269,178 $ 284,688 $ 544,422 $ 590,817 65 Fund:001 General Fund Spokane Valley Dept:018 Operation&Administrative Services 2023 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,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 2022 • Completed the proposal,demonstrations,and contract negotiations for a new financial software to replace the Eden Financial System,which has reached end of life. Initial implementation of the Munis Financial System started in the fall of 2022. • Completed the 2021 Comprehensive Annual Financial Report by the deadline of May 30,2022. • Maintained a consistent level of service in payroll,accounts payable,budget development,periodic and annual financial report preparation. • Provided 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. • Worked with the City Attorney's Office and Deputy City Manager to lead Council through the initial allocation process for the City's$16 million allocation of Coronavirus Local Recovery Funds(CLFR).Began the process of contracting for organizations to meet the Council's allocations. Goals for 2023 • Begin implementation of the Munis Financial System. • Maintain a consistent level of service in payroll,accounts payable,budget development,periodic and annual financial report preparation and information technology services. • Continue to provide adequate training opportunities to allow staff members to remain current with changes in pronouncements by the Governmental Accounting Standards Board(GASB),and changes in the electronic technology that allows all City employees to be more efficient and effective. • Complete the 2022 Annual Financial Report by May 30,2023 and receive a"clean audit opinion"from the Washington State Auditor's Office. • Continue to work with Community and Public Works to provide educational materials for the Street Sustainability and potential options for the Pavement Management Program. • Work with other City Departments and Council to obligate and expend the remaining$16 million in CLFR funds. Budget Summary 2019 2020 2021 2022 2023 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 Office Assistant II 0.00 0.00 0.00 1.00 1.00 IT Manager 0.00 1.00 1.00 0.00 0.00 IT Specialist 3.00 2.00 2.00 0.00 0.00 GIS/Database Administrator 1.00 1.00 1.00 1.00 1.00 Total FTEs 11.75 11.75 11.75 9.75 9.75 Budget Detail Wages,Payroll Taxes&Benefits $ 1,275,580 $ 1,300,812 $ 1,307,686 $ 1,227,780 $ 1,292,840 Supplies 2,798 3,089 3,258 3,900 2,900 Services&Charges 18,113 18,131 13,055 16,300 18,100 Total Finance Division $ 1,296,491 $ 1,322,032 $ 1,323,999 $ 1,247,980 $ 1,313,840 66 Fund:001 General Fund Spokane Valley Dept:018 Operation&Administrative Services 2023 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 2022 • Implemented personnel changes related to 2021 Collective Bargaining. • Attained the AWC WellCity Award for 2022. • Reassessed City fleet valuation for Washington Cities Insurance Authority coverage. • Recruited qualified employees in support of City goals and priorities. • Exploreed opportunities to reduce employee turnover and decrease the time to fill vacancies. • Supported City management&employees in the restructuring of City departments and divisions. Goals for 2023 • Support managers and supervisors in the prioritization of employee retention. • Assist WCIA in assessing the valuation of City facilities to allow for proper insurance coverage. • Support employee wellness by attaining the AWC WellCity Award for 2023. • Provide City-Wide anti-harrassment training to Employees. • Implement a new financial reporting(Personnel)system supporting employees through the transition. • Assist in the implementation of a new City-wide website design. Budget Summary 2019 2020 2021 2022 2023 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 $ 268,140 $ 278,542 $ 284,878 $ 307,605 $ 322,468 Supplies 1,888 1,482 1,179 1,200 1,200 Services&Charges 23,302 20,951 17,121 26,560 30,610 Total Human Resources Division $ 293,330 $ 300,975 $ 303,178 $ 335,365 $ 354,278 67 Fund:001 General Fund Spokane Valley Dept:018 Operation&Administrative Services 2023 Budget 017-Information Technology Division IT Division is responsible for the design,maintaince and support of the City's data network. This division maintain all primary computer applications including the financial management and permitting systems. Accomplishments for 2022 • Closed 1,033 helpdesk cases to date with 3.84 hour average first response rate. • Maintain computer hardware,software,network and cyber security systems. • Provide 99.999%Internet Uptime. • Began supporting Planning Commission remote(Zoom)meetings twice a month while maintaining City Council remote meetings. • Maintain computer hardware,software,network and cyber security systems. • Support staff knowledge of Cybersecurity threats by offering training curriculum. • Improve security at City Hall and Centerplace by installing higher quality security cameras. • Replace card access at Centerplace and Maintenance shop to integrate with City Hall. Goals for 2023 • Deploy Multi-Factor Authentication solution. • Offer secure password manager solution and eliminate insecure password storage options. • Assist in deployment and support of finance software replacement. • Support staff in development and implementation of software solutions. • Upgrade network and server core hardware infrastructure to maintain stability and improved performance. • Deploy security information and event management solution. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents IT Manager 0.00 1.00 1.00 1.00 1.00 IT Specialist 2.00 2.00 2.00 2.00 2.00 Total FTEs 2.00 3.00 3.00 3.00 3.00 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 390,423 $ 412,308 Supplies 0 0 0 500 500 Services&Charges 0 0 0 12,200 12,400 Total Finance Division $ 0 $ 0 $ 0 $ 403,123 $ 425,208 68 Fund:001 General Fund Spokane Valley Dept:033 Facilities 2023 Budget 033-Facilities The Parks, Recreation&Facilities Director provides management and oversight of the City's facilities.This department is responsible for the overall operations and maintenance of the City Hall facility,the City's Valley Precinct facility, CenterPlace and the Street Maintenance Shop. The Facilities Department is resposible for,among other things,grounds maintenance,jaitorial services,lighting,and maintenance of the HVAC and other building systems. Accomplishments for 2022 • Migrated janitorial services for City Hall in-house for improved level of service. • Continued to monitor maintenance tracking system in order to prioritize work. • Continued to coordinate maintenace activities with City Hall staff. • Continued to coordinate maintenance activities with SVPD Precinct staff. • Continued to coordinate maintenance activities with Street Maintenance Shop staff. • Continued to coordinate maintenance activites with CenterPlace staff. • Coordinated emergency preparedness drills with affected staff and coordinating agencies. • Continued to coordinate City Hall repairs. Goals for 2023 • Improve coordination and utilization of Facilities Work Group across all City Facilities. • Increase utilization of maintenance tracking system in order to prioritize work. • Continue to coordinate maintenace activities with City Hall staff. • Continue to coordinate maintenance activities with SVPD Precinct staff. • Continued to coordinate maintenance activities with Street Maintenance Shop staff. • Continue to coordinate maintenance activites with CenterPlace staff. • Coordinate emergency preparedness drills with affected staff and coordinating agencies. • Continue to coordinate City Hall repairs. • Coordinate maintenance and operation of new City Facilities. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Maintenance Worker Lead-Facilities 1.0 1.0 2.0 1.0 0.8 Administrative Assistant 0.0 0.0 0.0 1.0 1.0 Custodian 0.0 0.0 0.0 1.0 1.0 Total FTEs 1.0 1.0 2.0 3.0 2.8 Budget Detail Wages,Payroll Taxes&Benefits $ 86,434 $ 101,631 $ 169,671 $ 261,333 $ 267,052 Supplies 32,920 27,611 33,920 27,000 42,800 Services&Charges 156,699 183,508 179,255 181,687 159,800 Nonrecurring expenditures 174,807 295,923 353,224 777,640 0 Total Administrative Division $ 450,860 $ 608,673 $ 736,070 $ 1,247,660 $ 469,652 69 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2023 Budget Community&Public Works The Community and Public Works Department is comprised of four divisions:the Administration Division,the Engineering Division,the Building Division,and the Planning Division. 040-Administration Division The Administration Division is responsible for the management and direction of the Community&Public Works Department within the City of Spokane Valley. In addition to managing the four operational divisions,the Administration Division is responsible for setting department goals,objectives,and policies. Accomplishments for 2022 • In February 2022,the CPW Department was reorganized and the Administration Division was created. • Established management guidelines for monitoring various Community&Public Works divisions. Goals for 2023 • Begin the process of developing a city-wide,comprehensive Asset Management Program. • Evaluate and select a Community Development permitting and code enforcement software. • Work with Fleet Services Manager to finalize a Snow Plow Fleet Management Program. • Work with Fleet Services Manager to finalize a Vehicle Fleet Management Program. • Coordinate efforts between Building and Planning Divisions in the evaluation replacement permit software systems. • Continue to coordinate City planning and operations with other local,regional,and state entities. • Coordinate the City's comprehensive Pavement Preservation Program. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Community&Public Works Director 0.0 0.0 0.0 1.0 1.0 Administrative Assistant 0.0 0.0 0.0 1.0 1.0 Total FTEs 0.0 0.0 0.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 298,928 $ 308,526 Supplies 0 0 0 700 1,200 Services&Charges 0 0 0 2,600 57,400 Total Engineering Division $ 0 $ 0 $ 0 $ 302,228 $ 367,126 70 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2023 Budget 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 2022 • Succesfully Implemented approved capital projects and administered state and federal grants. • Successfully passed a federal audit with no findings. • Completed the construction of the Barker Road Grade Separation Project. • Advanced the preliminary engineering and right-of-way phase of the Pines Road Grade Separation Project. • Continued pursuing opportunities to fund the construction of the Pines Road Grade Separation Project. • Completed an alternative analysis for the Sullivan/Trent Interchange Project. • Secured funding for the preliminary engineering of the Sullivan/Trent Interchange Project. • Prepared and applied for over 40 grant applications to support capital projects. • Continued to coordinate regional transportation issues with SRTC,WSDOT,and other agencies. • Completed a stormwater comprehensive plan update and rate study for the Stormwater Utility. • Started the Ecology-observed update for the Solid Waste Management Plan. • Processed record number of engineering permits and land use applications in accordance with City codes. • Implemented automated traffic signal performance measures(ASTMS)and reduced travel times on the Pines Road and Sullivan Road corridors. Goals for 2023 • Implement approved capital projects. • Administer state and federal funds received for capital projects. • Prepare and apply for grant applications for capital projects. • Advance the preliminary engineering and right-of-way phase of the Pines Road Grade Separation Project. • Continue pursuing opportunities to fund the construction of the Pines Road Grade Separation Project. • Advance the preliminary engineering phase of the Sullivan/Trent Interchange Project. • Continue to coordinate regional transportation issues with SRTC,WSDOT,and other agencies. • Evaluate the potential to implement traffic impact fees citywide • Implement UIC and MS4 progam • Finalize the update of the Solid Waste Management Plan. • Process engineering permits and land use applications in a professional and timely manner and ensure consistency with City codes. • Implement ATSPMs across a wider range of the signal network using existing software. (continued on next page) 71 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2023 Budget (continued from prior page) 041 -Engineering Division Budget Summary 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Personnel-FTE Equivalents Administrative Assistant 2.0 2.0 2.0 1.0 1.0 Assistant Engineer 0.45 0.20 0.70 2.20 2.2 CAD Manager 0.0 0.0 0.0 0.5 0.0 * City Engineer 1.0 1.0 1.0 1.0 1.0 Engineer 0.5 1.0 1.0 0.5 0.5 * Engineering Manager-CIP 1.0 1.0 1.0 1.0 1.0 Engineering Manager-Utility 0.0 0.0 0.0 0.0 0.250 Engineering Tech I 1.5 1.5 1.5 1.5 0.9 * Engineering Tech II 0.75 0.75 0.75 0.95 0.65 * Engineering Tech Supervisor 0.0 0.0 0.0 0.0 0.5 Main/Construction Inspector 2.0 2.0 2.0 2.0 2.0 Senior Dev Engineer 1.0 1.0 1.0 1.0 1.0 Senior Engineer-Proj Mgmt. 1.7 1.7 1.7 1.7 1.7 * Senior Planning Grants Engineer 0.375 0.375 0.375 0.375 0.0 * Water Resource Sr.Engineer 1.0 1.0 1.0 1.0 1.0 Total FTEs 13.275 13.525 14.025 14.725 13.700 Interns 0.0 0.0 0.0 0.0 0.4 Budget Detail Wages,Payroll Taxes&Benefits $ 1,472,750 $ 1,381,989 $ 1,552,400 $ 2,048,523 $ 1,989,144 Supplies 22,534 18,187 21,912 30,500 34,000 Services&Charges 200,147 207,293 149,404 265,163 282,069 Total Engineering Division $ 1,695,431 $ 1,607,469 $ 1,723,716 $ 2,344,186 $ 2,305,213 * These positions are budgeted partially to the Engineering Division in the General Fund with the balance budgeted as a part of Capital Projects Funds,the Street Fund#101,and the Storm water Fund#402. 72 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2023 Budget 043-Building and Code Enforcement Division The Building 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. Accomplishments for 2022 • In February 2022,the CPW department was reorganized to create separate Building and Planning Divisions. • Implemented enhanced monthy reporting resulting in more informative permit reports. • Expanded online permit portal options to simplify process for various permit types such as Adult Family Home inspections. • Implemented Code Enforcement program improvements to improve communication and response to customers. • Participated in regional Code groups such as SHBA Spokane Regional Code Group and Inland Fire&Life Safety Council. • Held multiple meetings with staff of other agencies such as Labor&Industries to share information and successful post-pandemic strategies. Goals for 2023 • Actively coordinate with staff of other CPW divisions to ensure continued high level of Permit Center customer service following reorganization. • Strategize process for scanning commercial address files. • Continue to explore options for enhancement or replacement of permit system software applications. • Further expand online permitting options and streamline permitting options for common project types. • Continue to improve Code Enforcement program and public outreach/education. • Partner with regional permitting agencies towards creation of local/in-house training program for code professionals. • Implement continual schedule of mini-training presentations by staff for staff to support mutual understanding of various Divisions'processes. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Building Official 1.0 1.0 1.0 1.0 1.0 Assistant Building Official 1.0 1.0 1.0 1.0 1.0 Development Service Coordinator 1.0 1.0 1.0 1.0 1.0 Senior Permit Specialist 0.0 0.0 0.0 0.0 1.0 Engineering Tech 1.0 1.0 1.0 1.0 0.0 Permit Facilitator 1.0 0.0 0.0 0.0 0.0 Plans Examiner 1.0 1.0 1.0 1.0 1.0 Building Inspector II 3.0 3.0 3.0 3.0 3.0 Office Assistant II 1.0 1.0 1.0 1.0 0.0 Office Assistant I 3.0 3.0 3.0 2.0 2.0 Permit Specialist/Facilitator 1.0 2.0 2.0 2.0 2.0 Administrative Assistant 1.0 1.0 0.0 0.0 1.0 Senior Planner 1.0 1.0 1.0 0.0 0.0 Associate Planner 0.0 0.0 2.0 0.0 0.0 Planner 3.0 3.0 3.0 0.0 0.0 Code Enforcement Officer 1.0 2.0 2.0 2.0 2.0 Total FTEs 20.0 21.0 22.0 15.0 15.0 Budget Detail Wages,Payroll Taxes&Benefits $ 1,860,223 $ 1,950,262 $ 1,965,489 $ 1,983,212 $ 1,658,382 Supplies 17,305 19,271 23,037 31,450 42,500 Services&Charges 299,929 314,903 353,850 172,100 374,660 Non Capital Office Furniture-Nonrecurring 0 0 0 0 0 Total Building Division $ 2,177,457 $ 2,284,436 $ 2,342,376 $ 2,186,762 $ 2,075,542 73 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2023 Budget 044-Planning Division 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 2022 • In February 2022,the CPW department was reorganized and the Planning Division was separated from the Building Division. • Reviewed and processed City and privately initiated amendments to the Comprehensive Plan. • Collaborated with regional partners in long range planning efforts including updates to County Wide Planning Policies. • Developed and processed the City-initiated amendments to the Municipal Code. • Reviewed and processed various land use development applications such as preliminary and final subdivisions, accessory dwelling units,street vacations,and boundary line adjustments. • Hired a new Planner to replace vacated Associate Planner position. Goals for 2023 • Identify and develop implementation strategies from the Housing Action Plan. • Review and process City and privately initiated amendments to the Comprehensive Plan. • Collaborate with regional partners in long range planning efforts including updates to the Land Quantity Analysis, • population and housing allocations. • Continue to process land use development applications in a timely and efficient manner. • Increase cross-training and expansion of training related housing and long-range planning techniques. • Seek grants to support City planning initiatives. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Planning Manager 0.0 0.0 0.0 1.0 1.0 Senior Planner 0.0 0.0 0.0 1.0 1.0 Associate Planner 0.0 0.0 0.0 0.0 2.0 Planner 0.0 0.0 0.0 3.0 1.0 Total FTEs 0.0 0.0 0.0 5.0 5.0 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 662,230 $ 689,349 Supplies 0 0 0 7,600 5,530 Services&Charges 0 0 0 169,900 174,015 Total Building Division $ 0 $ 0 $ 0 $ 839,730 $ 868,894 74 Fund:001 General Fund Spokane Valley Dept:040 Economic Development 2023 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 2022 • Implement marketing campaigns to promote 2022 city events to engage citizens and attract visitors. • Research and utilize new and existing social media platforms to increase citizen engagement and public awareness. • Continue producing the semi-annual newsletter informing citizens of current projects,services and events. • Partner with Spokane Valley Chamber of Commerce to develop and co-market workshops&State of the City event. • Implement the retail recruitment strategy. • Launched a new website to promote and market CenterPlace Regional Event Center. • Publish comprehensive homeless&housing content on website/print for businesses and residents. • Work with hoteliers to draft a City Tourism Promotion Area petition and establish City TPA. • Developed and launched data tracking apps for homeless outreach and camp clean-up. • Facilitated the clean-up of 68,400 pounds of trash in first 7 months of 2022. • Developed Pavement Condition Index Map Series for portraying the streets with the most need for repair. • Analyzed and modified scripts for Land Capacity Analysis to support Urban Growth Area expansion. Goals for 2023 • Implement marketing campaigns to promote city events to improve citizen participation and enhance tourism. • Continue utilizing city's social media platforms to increase citizen engagement. • Maintain the production of semi-annual newsletters informing citizens of current projects,services and events. • Partner with the Parks&Recreation Department to assist in promoting its programs and events. • Continue to partner with Spokane Valley Chamber to develop and co-market the State of the City and workshops. • Plan and host the general public,business leaders and dignitaries at 20th Anniversary celebration event(s). • Continue partnership with Spokane Arts to install signal box art wraps. • Complete design and development of new City website;launch spring 2023. • Work with appropriate community partners to ensure LTAC and TPA funding is promoted&utilized. • Complete tourism study to identify key projects and marketing approach. • Manage Retail Strategies contractor to recruit new,interesting and unique retail businesses to the Spokane Valley. • Identify innovative approaches to grow and leverage existing or new plans for tourism and business development. • Develop an outward facing GIS application for the general public. 042-Economic Development Division Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Economic Development Director 1.0 1.0 1.0 1.0 1.0 Economic Development Specialist 2.0 2.0 1.0 1.0 1.0 Communication&Marketing Officer 0.0 0.0 0.0 0.0 1.0 Public Information Officer 1.0 1.0 1.0 1.0 1.0 Senior Transportation Planner 1.0 1.0 1.0 1.0 0.0 GIS Analyst 0.0 0.0 0.0 0.77 0.77 * Housing&Homeless Services Coordinator 0.0 0.0 0.0 1.0 1.0 Administrative Assistant 1.0 1.0 1.0 1.0 1.0 Total FTEs 6.0 6.0 5.0 6.77 6.77 Interns 1.0 1.0 1.0 1.0 1.0 Budget Detail Wages,Payroll Taxes&Benefits $ 582,027 $ 609,137 $ 662,067 $ 903,817 $ 938,604 Supplies 1,954 12 1,320 6,900 7,900 Services&Charges 333,157 350,716 317,709 551,145 599,990 Nonrecurring Expenditures 25,000 104,915 55,577 20,000 30,000 Total Engineering Division $ 942,138 $ 1,064,780 $ 1,036,673 $ 1,481,862 $ 1,576,494 • This position is budgeted partially to the Economic Development Division in the General Fund with the balance budgeted as a part of the Storm water Fund#402. 75 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2023 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. 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 2022 • Delayed Phase 1 construction(Park Infrastructure)at Balfour Park due to bids exceeding engineers estimate. • Established a cooperative effort with DNR regarding the 100 acre natrual area adjacent to Mirabeau Park. • Apply for two RCO Park Development Grants for Phase 2 Greenacres Park. • Advanced the Spokane Valley River Loop Trail concept through local meetings and presentations. • Acquired three additional park properties for future park development at Summerfield, Ponderosa,and Flora-south. • Commenced development of 6-year Parks Capital Improvement Program. • Completed much-needed repairs at Spokane Valley Pools. Goals for 2023 • Construct Phase 1 (Park Infrastructure)at Balfour Park • Design&Develop Summerfield Property Parking&Trail • Design&Develop Ponderosa Property Parking&Trail • Design&Develop Flora Property Parking&Trail • Continue to work on cooperative management of DNR 100-acre Natural Area Preserve at Mirabeau Point Park • Continue to advance Spokane Valley River Loop Trail project • Commence Parks, Recreation&Master Plan 2024 update Budget Summary 2019 2020 2021 2022 2023 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 $ 266,534 $ 273,466 $ 278,378 $ 290,768 $ 297,799 Supplies 2,778 2,400 3,531 3,500 2,900 Services&Charges 56,899 50,672 24,609 56,750 75,425 Total Parks Administration Division $ 326,211 $ 326,538 $ 306,518 $ 351,018 $ 376,124 76 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2023 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Budget Detail Supplies $ 381 $ 8,171 $ 5,126 $ 2,500 $ 2,000 Services&Charges 935,374 899,732 932,010 947,955 970,455 Nonrecurring expenditures 0 0 31,984 0 0 Total Maintenance Division $ 935,755 $ 907,903 $ 969,120 $ 950,455 $ 972,455 301 -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 2022 • Restored summer day camp at full capacity with ten weekly sessions. • Provided walking program for community members. • Continued to offer free summer meal program at 3 parks. • Offered community celebration on the West Lawn Plaza in celebration of July being Parks and Rereation Month • Continued to foster relationships with community partners. • Planned and executed an Arbor Day Celebration on the West Lawn Plaza. • Expand outdoor movie events from two to three,including a Movie on the West Lawn Plaza. • Partnered with the Spokane County Library District to offer Storytime in the Park and live music at three parks Goals for 2023 • Seek funding through No Child Left Inside program to enhance summer teen programming • Establish at least one new off season recreational program offering • Continue to publish and distribute Spring/Summer and Fall/Winter Recreation Guides • Enhance summer day camp staff training to include youth mental health awareness and skillsets • Continue to offer free summer meal program and library partnership in 3 parks • Continue to foster relationshiops with community partners through sponsorships of recreaion programs • Hold annual Arbor Day Celebration on the West Lawn Plaza • Contniue to offer outdoor movie events on the West Lawn Plaza and at Mirabeau Meadows Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Recreation Coordinator 1.0 1.0 1.0 1.0 1.0 0.0 0.6 0.6 0.6 0.6 Recreation Coordinator 1.0 1.6 1.6 1.6 1.6 Budget Detail Wages,Payroll Taxes&Benefits $ 152,492 $ 139,368 $ 165,498 $ 239,707 $ 252,831 Supplies 6,368 6,069 3,283 12,400 15,900 Services&Charges 68,726 21,792 14,587 78,580 79,625 Total Recreation Division $ 227,586 $ 167,228 $ 183,368 $ 330,687 $ 348,356 77 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2023 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 2022 • Maintain partial summer swimming programming* • Maintained Paws in the Pool Event • Continued to foster community partnerships and sponsorships • Partnered with Pool World to offer free swim sessions at one pool • Continue to partner with Make a Splash to offer free water safety clinics at one pools* • Partnered with Spokane Parks Foundation to offer swim lesson and swim team scholarships *began season with limited programming due to staffing shortages;expanded programs throughout the season Goals for 2023 • Return to full summer aquatics programming • Expand Paws in the Pool Event to include local dog-related vendors • Contnue to foster community partnerships • Continue to partner with Pool World to offer free swim sessions at all three pools • Continue to partner with Make a Splash to offer free water safety clinics • Continue to partner with Spokane Parks Foundation to offer swim lesson and swim team scholarships Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Budget Detail Supplies $ 37 $ 0 $ 497 $ 2,000 $ 2,000 Services&Charges 515,370 117,023 304,750 536,700 563,700 Nonrecurring expenditures 0 0 0 30,000 0 Total Aquatics Division $ 515,407 $ 117,023 $ 305,247 $ 568,700 $ 565,700 78 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2023 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 2022 • Worked with the Senior Center Board and Recreation Staff to create new programs for seniors. • Improved resources to assist with the Senior Center website and newsletter. • Enhanced existing Senior Center programs. • Fostered relationships with Communtiy partners. Goals for 2023 • Continue to work with the Senior Center Board and Recreaiton Staff to track utilization and create new programs. • Assist in planning and coordinating an annual senior resource fair with local vendors and service providers. • Continue to provide support and assistance with the Senior Center website and newsletter. • Continue to coordinate and health and wellness informational programs for Senior Center members Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Senior Center Specialist 1.0 0.4 0.4 0.4 0.4 Total FTEs 1.0 0.4 0.4 0.4 0.4 Budget Detail Wages,Payroll Taxes&Benefits $ 17,716 $ 27,369 $ 28,278 $ 29,976 $ 31,337 Supplies 0 843 501 1,600 1,600 Services&Charges 781 477 1,076 5,225 5,175 Total Senior Center Division $ 18,497 $ 28,689 $ 29,855 $ 36,801 $ 38,112 79 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2023 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 2022 • Replaced carpet in Senior Center card room, Executive conference room and classroom 205 • Painted Senior Center exterior portico • Worked with IT to complete security camera upgrades • Implemented new West Lawn Plaza events including two youth dance parties attended by over 800 spectators • Utilized new CenterPlace website to enhance programming Goals for 2023 • Reconfigure CenterPlace entrance lobby&Greenhouse area for improved security and useability • Replace tread in CenterPlace stairwells and upgrade flooring in 2nd level hallways • Add a shade sail canopy to West Lawn Plaza Stage • Implement additional new marketing and community events on the West Lawn Plaza • Upgrade capabilities in the Great Room&Auditorium for improved online meeting functionality • Secure additional equipment for expanded use of the West Lawn Plaza • Increase number of reservations,events,occupancy,utiliziation and cost recovery at CenterPlace Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Centerplace Coordinator 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 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 0.0 0.0 0.0 0.0 1.0 Maintenance Worker-Facilities 2.0 2.0 2.0 2.0 1.84 Total FTEs 5.0 5.0 5.0 5.0 4.84 Budget Detail Wages,Payroll Taxes&Benefits $ 466,281 $ 412,779 $ 424,755 $ 553,141 $ 562,648 Supplies 98,232 56,302 63,848 83,774 96,924 Services&Charges 321,020 237,671 247,826 333,460 336,931 Nonrecurring Expenditures 0 17,086 5,000 38,700 176,000 Total CenterPlace Division $ 885,533 $ 723,838 $ 741,429 $ 1,009,075 $ 1,172,503 80 Fund:001 General Fund Spokane Valley Dept:090 General Government 2023 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 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Supplies Employee Recognition-Operating Supplies $ 3,156 $ 2,281 $ 725 $ 3,500 $ 3,500 Office&Operating Supplies 0 599 2,357 0 0 Vehicle Maintenance Supplies 0 2,196 152 1,000 1,000 Small Tools&Minor Equipment 1,746 2,977 1,670 6,000 7,000 Security Hardware 0 0 152 2,000 2,000 Network Hardware-Non Capital 0 0 633 51,213 33,000 Computer Hardware-Non Capital 36,414 13,972 7,760 15,500 15,500 Computer Software-Non Capital 2,979 1,519 21,677 30,800 36,000 Server Hardware 0 0 5,981 5,000 5,000 Security Software Licensing 0 0 30,419 33,000 52,950 Network Software Licensing 0 0 3,447 1,700 3,500 Server Software Licensing 0 0 4,524 6,000 6,500 Office&Operating Supplies 4,309 3,648 1,732 3,700 3,700 48,604 27,192 81,229 159,413 169,650 Other Services&Charges Professional Services-Misc.Studies 72,359 97,892 109,802 243,000 243,000 Accounting&Auditing 92,353 105,162 117,493 108,000 120,000 Postage 2,974 17 55 1,000 1,000 Telephone Service 12,801 13,927 24,485 28,700 16,500 Cell Phones 1,561 1,480 1,338 2,000 2,000 Internet Service 8,793 9,006 9,750 10,200 10,200 Taxes and Assessments 0 0 0 1,000 1,000 Sewer 91 0 0 0 0 Professional Services 762 0 0 1,500 1,500 Equip Repair&Maint-Hardware Support 27,859 17,154 0 0 0 IT Support 37,474 15,517 1,498 15,500 30,500 Equip Repair&Maint-Hardware Support 0 0 306 4,600 10,600 Software Licenses&Maintenance 122,478 134,072 81,917 516,350 546,600 Security Infrastructure Maintenance 0 0 0 1,000 1,000 Network Infrastructure Maintenance 0 0 14,604 14,550 14,650 Merchant Charges(Bankcard Fees) 300 532 1,816 500 1,900 Network Infrastructure Access 5,184 5,155 5,210 6,000 6,600 Network Infrastructure Access-SCRAPS 0 0 1,199 0 1,200 Equipment Rental 4,267 4,169 3,869 4,200 4,000 Interfund Vehicle Lease 500 500 500 500 3,000 Printing&Binding 623 0 1,587 500 500 Miscellaneous Services 7,859 2,171 3,144 5,000 5,000 General Operating Leases:Computer 67,179 67,452 62,179 70,000 70,000 Economic Development-Site Selector 0 8,195 0 0 0 Outside Agencies-Social Svc&Econ.Dev. 174,664 168,331 171,872 182,000 182,000 County Data Sharing Passthrough Costs 0 0 0 0 1,000 Professional Services-Economic Dev. 765 0 0 1,000 1,000 Alcohol Treatment:Liquor Excise Tax 10,477 15,597 10,412 15,600 15,600 Alcohol Treatment:Liquor Profits 15,620 19,409 11,523 19,500 19,500 Homelessness Response Service-Park 0 420 0 0 0 $ 666,943 $ 686,158 $ 634,559 $ 1,252,200 $ 1,309,850 (continued to next page) 81 Fund:001 General Fund Spokane Valley Dept:090 General Government 2023 Budget (continued from previous page) Budget Summary 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Intergovernmental Services Election Costs $ 75,433 $ 0 $ 145,911 $ 0 $ 110,000 Voter Registration 94,787 100,871 85,815 100,000 100,000 Taxes and assessments 12,020 12,020 12,020 12,100 12,100 Spokane County Air Pollution Authority 137,219 140,411 150,830 148,200 178,018 319,459 253,302 394,576 260,300 400,118 Capital Outlays Computer Hardware-Capital 0 40,516 (63) 30,000 15,000 0 40,516 (63) 30,000 15,000 Debt Service:Principal Interest and Other Debt Service Costs 600 0 600 600 600 Interfund Payments for Service Transfer out-#204(City Hall bond payment) 401,250 401,450 401,500 401,400 401,150 Transfer out-#309(park capital projects) 160,000 160,000 160,000 160,000 160,000 Transfer out-#311 (pavement preservation) 972,300 982,023 991,843 1,001,800 1,011,800 Transfer out-#501 (CenterPlace kitchen reserve) 36,600 36,600 36,600 0 0 Transfer out-#502(risk management) 390,000 410,000 425,000 450,000 600,000 1,960,150 1,990,073 2,014,943 2,013,200 2,172,950 Miscellaneous SCRAPS pass through 1,172 1,189 0 1,200 0 Leasehold Excise Tax Pass-Through 530 0 0 0 0 1,702 1,189 0 1,200 0 Subtotal Recurring Expenditures $ 2,997,458 $ 2,998,430 $ 3,125,844 $ 3,716,913 $ 4,068,168 Nonrecurring/Nonrecurring Capital IT capital replacement 0 15,075 0 136,000 151,000 Heavy Duty Mach.&Equip.-City Hall Generator 158,007 13,590 0 0 0 Computer Hardware-Capital 106,517 71,177 115,986 0 0 Computer Software-Capital 0 16,335 0 500,000 500,000 COVID-19 related expenditures 0 4,255,977 37,141 7,000,000 0 Land Acquisition 0 0 27,397 0 0 Transfer out-#101 0 0 2,552,600 3,084,919 3,530,048 Transfer out-#122(Replenish Winter Weather Resery 120,000 500,000 364,440 89,805 0 Transfer out-#309(Park Capital) 1,174,368 2,781,166 18,813 0 0 Transfer out-#312(capital reserve fund) 7,109,300 0 11,126,343 3,593,000 0 Transfer out-#501 (new code enf.vehicle) 0 27,472 0 40,000 0 8,668,192 7,680,792 14,242,720 14,443,724 4,181,048 Total Governmental Division $11,665,650 $10,679,222 $17,368,564 $18,160,637 $ 8,249,216 82 Fund:101 Street Fund Spokane Valley 2023 Budget 101 -Street Fund The Street Fund provides responsive maintenance and repairs for approximately 461 center line miles of City streets. Most services provided by the Street Fund are contracted services,under the oversight of City staff. These contracted services include street and stormwater maintenance,roadway landscape maintenance,street sweeping,and stormwater facilites cleaning. Additionally,during winter months,the Street Fund is also responsible for managing snow and ice services utilizing both City owned and operated equipment,as well as contracted equipment and labor services. Accomplishments for 2022 • Continue on-going roadway and bridge maintenance and repairs. • Completed the Evergreen Bridge Deck Repair project. • Implemented automated traffic signal performance measures(ASTMS)and reduced travel times on the Pines Road and Sullivan Road corridors. • Continued implementation of a comprehensive Pavement Preservation Program,including funding source identification. • Continued annual roadway maintenance and repair projects,including resurfacing several local and collector streets. • Continued winter roadway operations,including full-city plows during significant snow events. Goals for 2023 • Continue on-going roadway and bridge maintenance and repairs. • Implement ATSPMs across a wider range of the signal network using existing software. • Continue annual roadway maintenance and repair efforts. • Continue winter operations. • Continue implementation of a comprehensive Pavement Preservation Program,including funding source implementation. • Work with other departments in developing a city-wide,comprehensive Asset Management Program,which will include transportation operations facilities. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Assistant Engineer 0.3 0.00 0.0 0.0 0.0 Construction Inspector 1.5 1.50 1.50 1.50 1.50 * Engineering Tech II 0.3 0.25 0.25 0.25 0.25 * Maintenance/Construction Inspector 2.35 2.35 2.35 0.50 0.50 * Mechanic 0.00 0.00 0.00 0.75 0.75 * Planning Grants Engineer 0.375 0.375 0.375 0.375 0.25 * Public Works Superintendent 1.0 1.0 1.0 1.0 1.0 Senior Engineer-Traffic 1.0 1.0 1.0 0.0 0.0 Stomrwater Foreman 0.0 0.0 0.0 0.1 0.1 * Streets Foreman 0.0 0.0 0.0 1.0 1.0 Traffic Signal Technician 0.0 0.0 0.0 0.0 1.0 Traffic Engineer 1.0 1.0 1.0 1.0 1.0 Traffic Engineering Manager 0.0 0.0 0.0 1.0 1.0 Total FTEs 7.725 7.475 7.475 7.475 8.350 (continued to next page) • These positions are budgeted partially to the Street Fund with the balance budgeted as a part of the General Fund, Capital Projects Funds,and the Stormwater Fund#402. 83 Fund:101 Street Fund Spokane Valley 2023 Budget (continued from previous page) Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Utility Tax $ 1,563,981 $ 1,388,026 $ 1,033,915 $ 932,000 $ 857,000 Motor Vehicle Fuel Tax 2,018,186 1,737,864 1,901,926 1,896,000 2,062,600 Multimodal Transportation Revenue 132,637 131,847 132,334 130,200 139,200 Right-of-Way Maintenance Fee 84,704 93,033 115,307 85,000 95,000 Investment Interest 4,022 823 555 500 500 Miscellaneous 8,063 55,441 222,890 160,000 10,000 Transfers in-#106 0 0 0 271,000 0 Total revenues 3,811,593 3,407,034 3,406,927 3,474,700 3,164,300 Nonrecurring Revenues Utility Tax Recovery 0 0 50,472 0 0 Insurance proceeds 15,848 0 59,619 0 0 Transfers in-#001 0 0 2,552,600 3,084,919 3,530,048 Transfers in-#122 620,000 364,439 89,805 0 0 Transfers in-#312 907,544 1,364,706 0 0 0 Total Nonrecurring Revenues 1,543,392 1,729,145 2,752,496 3,084,919 3,530,048 Expenditures Wages,Payroll Taxes&Benefits 943,237 954,269 1,129,580 1,128,523 1,314,394 Supplies 100,504 128,210 139,886 176,700 191,500 Services&Charges 2,508,323 1,998,067 2,553,702 3,169,644 2,803,789 Snow Operation 1,034,064 939,416 900,233 890,502 1,081,915 Intergovernmental Payments 724,162 753,654 928,557 909,000 1,000,000 Interfund Vehicle Lease -#501 (non-plow) 99,179 14,500 10,250 10,250 27,750 Interfund Vehicle Lease-#501 (plow replace) 0 48,500 60,500 275,000 275,000 Nonrecurring Expenditures 0 Streetlight Replacement Program 0 0 0 35,500 40,000 Bridge Replacement Program 0 0 0 0 10,000 Traffic control improvements 80,596 74,710 9,406 0 0 Capital Equipment 10,115 6,178 17,228 50,000 0 Signal Maintenance Equipment 0 0 0 0 40,000 Traffic Control Devices-Repair&Maint 83,512 15,647 13,079 0 0 Transfers out-#501 (truck for Signal Techniciar 0 0 0 80,000 58,000 Total Nonrecurring expenditures 5,583,692 4,933,151 5,762,421 6,725,119 6,842,348 Revenues over(under)expenditures (228,707) 203,028 397,002 (165,500) (148,000) Beginning fund balance 784,978 556,271 759,299 1,156,301 990,801 Ending fund balance $ 556,271 $ 759,299 $ 1,156,301 $ 990,801 $ 842,801 84 Fund:103 Paths&Trails Fund Spokane Valley 2023 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 2023 the Municipal Research and Services Center estimates the distribution back to cities will be$19.34 per person. Based upon a City of Spokane Valley population of 107,100(per the Washington State Office of Financial Management on April 1,2022)we anticipate the City will collect$2,071,300 in 2023. 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 2023 revenue estimate this computes to$8,700. The balance or$2,062,600 will be credited to Fund#101 for Street maintenance and operations. The portion of the motor vehicle tax allocated to the Paths and Trails Fund is by State Law restricted for the construction and/or improvement of paths and trails within the City. Because the cost of such projects is typically much greater than the funds generated in a single year,we typically leave the fund balance untouched until an adequate fund balance is available. The City transferred$50,000 in 2014 and$9,300 in 2016 and$50,000 in 2018 to Parks Capital Projects Fund#309 to be applied towards the Appleway Trail projects. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Motor Vehicle Fuel(Gas)Tax $ 8,512 $ 7,330 $ 8,022 $ 8,000 $ 8,700 Investment Interest 186 71 21 100 100 Total revenues 8,698 7,400 8,043 8,100 8,800 Expenditures Capital Outlay 0 0 0 0 0 Transfers out- #309 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 8,698 7,400 8,043 8,100 8,800 Beginning fund balance 5,417 14,115 21,515 29,558 37,658 Ending fund balance $ 14,115 $ 21,515 $ 29,558 $ 37,658 $ 46,458 85 Fund:104 Hotel/Motel Tax-Tourism Facilities Fund Spokane Valley 2023 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Hotel/Motel Tax $ 454,283 $ 283,720 $ 481,320 $ 400,000 $ 600,000 Investment Interest 43,590 11,908 2,617 2,500 5,000 Transfers in-#105 275,000 0 1,201,684 273,000 0 Total revenues 772,873 295,628 1,685,621 675,500 605,000 Expenditures Capital Outlay 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 772,873 295,628 1,685,621 675,500 605,000 Beginning fund balance 1,918,072 2,690,945 2,986,573 4,672,194 5,347,694 Ending fund balance $ 2,690,945 $ 2,986,573 $ 4,672,194 $ 5,347,694 $ 5,952,694 Fund:105 Hotel/Motel Tax Fund Spokane Valley 2023 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Hotel/Motel Tax $ 743,852 $ 443,244 $ 744,435 $ 600,000 $ 900,000 Investment Interest 8,459 2,705 898 1,000 1,000 Total revenues 752,311 445,949 745,333 601,000 901,000 Expenditures Tourism Promotion 207,000 154,082 167,850 298,000 871,000 Transfers out- #001 30,000 11,390 9,515 30,000 30,000 Transfers out- #104 275,000 0 1,201,684 273,000 0 Total expenditures 512,000 165,472 1,379,049 601,000 901,000 Revenues over(under)expenditures 240,311 280,477 (633,716) 0 0 Beginning fund balance 277,928 518,239 798,716 165,000 165,000 Ending fund balance $ 518,239 $ 798,716 $ 165,000 $ 165,000 $ 165,000 86 Fund:106 Solid Waste Fund Spokane Valley 2023 Budget In 2003,the City of Spokane Valley entered into an interlocal agreement with the City of Spokane and Spokane County to join the existing Spokane Regional Solid Waste Management System for a period of eight years. In 2011,that agreement was extended through November 16,2014. Committed to ensuring Spokane Valley citizens are provided with solid waste services that are affordable,sustainable, and environmentally responsible,in June 2014 the City of Spokane Valley opted to contract for solid waste transfer, transport and disposal services with Sunshine Recyclers, Inc.Services provided under the contract were effective November 17,2014,and continue for a period of ten years with options for two three-year extensions. Terms of the contract require Sunshine to pay the City an annual administrative fee of$125,000 that will be used by the City to offset contract administrative costs and solid waste management within the city,including solid waste public educational efforts. The contract also provides that a road maintenance fee will be paid by Sunshine at the rate of$1 per ton for each ton in excess of 45,500 tons in a single contract year. Payments will be made to the City by March 31 of the year following the calendar year being measured. In June 2017,the City entered a contract with Waste Management for the collection of garbage,recyclables,and compostables for the period of April 1,2018 through March 31,2028 with the option of two additional two-year extensions. Terms of the contract require Waste Management to pay the City a one-time fee of$47,500 upon contract execution to reimburse the City for the costs of procuring the contract.Waste Management is also required to pay the City an monthly administrative fee of 12.5%of gross receipts,which is estimated to be approximately$1,600,000 in 2022. 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 equated to an annual payment of$40,425 in the years 2015 through 2018,and a final payment of$40,422 in 2019. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Administrative fees $ 252,396 $ 219,943 $ 232,310 $ 225,000 $ 225,000 Solid Waste Road Wear Fee 1,513,532 1,537,776 1,760,519 1,600,000 1,700,000 Investment interest 24,752 7,804 1,481 7,000 4,000 Total revenues 1,790,680 1,765,523 1,994,310 1,832,000 1,929,000 Expenditures Education&Contract Administration 33,407 65,385 43,203 232,000 229,000 Transfers out-#001 40,422 0 0 0 0 Transfers out-#101 0 0 0 271,000 0 Transfers out-#311 1,608,028 1,513,532 1,537,776 1,589,519 1,700,000 Total expenditures 1,681,857 1,578,917 1,580,979 2,092,519 1,929,000 Revenues over(under)expenditures 108,823 186,606 413,331 (260,519) 0 Beginning fund balance 431,359 540,182 726,788 1,140,119 879,600 Ending fund balance $ 540,182 $ 726,788 $ 1,140,119 $ 879,600 $ 879,600 87 Fund:107 PEG Fund Spokane Valley 2023 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Comcast PEG contribution $ 79,498 $ 76,541 $ 71,252 $ 79,000 $ 71,000 Investment interest 2,097 596 160 0 0 Total revenues 81,595 77,137 71,412 79,000 71,000 Expenditures PEG Reimbursement-CMTV 37,256 22,288 38,519 39,500 39,500 Capital Outlay 915 1,331 48,771 33,500 33,500 Total expenditures 38,171 23,619 87,290 73,000 73,000 Revenues over(under)expenditures 43,424 53,518 (15,878) 6,000 (2,000) Beginning fund balance 84,831 128,255 181,773 165,895 171,895 Ending fund balance $ 128,255 $ 181,773 $ 165,895 $ 171,895 $ 169,895 Fund:108 Affordable&Supportive Housing Sales Tax Spokane Valley 2023 Budget In the year 2020,the Council authorized the City to collect the affordable and supportive sales tax,which is a rebate of the State sales tax to cities and counties.The amount received by the City is up to 0.0146%of the taxable retail sales within the City capped at the 2019 fiscal year taxable retail sales.The Department of Revenue has estimated this capped distribution to be $200,000 for the City.The City will receive these revenues for 20 years,and the revenues may only be used to support affordable housing within the City or for rental assistance as outlined in RCW 82.14.540. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Affordable&Supportive Housing Sales Tax $ 0 $ 151,950 $ 215,089 $ 193,000 $ 200,000 Investment Interest 0 83 205 0 0 Total revenues 0 152,033 215,294 193,000 200,000 Expenditures Professional Services 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 0 152,033 215,294 193,000 200,000 Beginning fund balance 0 0 152,033 367,327 560,327 Ending fund balance $ 0 $ 152,033 $ 367,327 $ 560,327 $ 760,327 88 Fund:120 CenterPlace Operating Reserve Fund Spokane Valley 2023 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Investment Interest $ 0 $ 0 $ 0 $ 0 $ 0 Transfers in 0 0 0 0 0 Total revenues 0 0 0 0 0 Expenditures Operations 0 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 89 Fund: 121 Service Level Stabilization Reserve Fund Spokane Valley 2023 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.The Service Level Stabilization Reserve Fund will not be reduced to less than 60%of the current$5.5 million balance, or$3.3 million,without Council approval. If Coucil should deem this necessary,the City will then first replenish Fund#121 to at least$3.3 million before any annual General Fund transfers are made to the Capital Reserve Fund#312.During 2018,this reserve balance was capped at$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 2023 Budget Message located near the front of this budget document. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Investment Interest $ 0 $ 0 $ 0 $ 0 $ 0 Transfers in 0 0 0 0 0 Total revenues 0 0 0 0 0 Expenditures Operations 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 0 0 0 0 0 Beginning fund balance 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 Ending fund balance $ 5,500,000 $ 5,500,000 $ 5,500,000 $ 5,500,000 $ 5,500,000 Fund: 122 Winter Weather Reserve Fund Spokane Valley 2023 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 2022 and 2023 even though we recognize there exists only$500,000 to address this issue if it should arise. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Investment Interest $ 9,899 $ 1,147 $ 209 $ 800 $ 1,100 Transfers in-#001 120,000 500,000 364,440 89,805 0 FEMA Grant Proceeds 10,367 0 0 0 0 Total revenues 140,266 501,147 364,649 90,605 1,100 Expenditures Transfer out-#101 620,000 364,439 0 0 0 Street Maintenance Expenditures 0 0 89,805 500,000 500,000 Total expenditures 620,000 364,439 89,805 500,000 500,000 Revenues over(under)expenditures (479,734) 136,708 274,844 (409,395) (498,900) Beginning fund balance 503,069 23,335 160,043 434,887 525,492 Ending fund balance $ 23,335 $ 160,043 $ 434,887 $ 25,492 $ 26,592 90 Fund:204 Limited Tax General Obligation(LTGO)Bond-Debt Service Fund Spokane Valley 2023 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 1,2023,the outstanding balance on this portion of the bond issue will be$3,430,000. • $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 1,2023,the outstanding balance on this portion of the bond issue will be$155,000. 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 1,2023,the outstanding balance on the bond issue will be $6,225,000. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Spokane Public Facilities District $ 432,150 $ 459,500 $ 480,800 $ 501,200 $ 527,200 Transfers in-#001 401,250 401,450 401,500 401,400 401,150 Transfers in-#301 82,475 80,375 80,775 81,100 80,600 Transfers in-#302 82,475 80,375 80,775 81,100 80,600 Total revenues 998,350 1,021,700 1,043,850 1,064,800 1,089,550 Expenditures Debt Service Payment-CenterPlace 432,150 459,500 480,800 501,200 527,200 Debt Service Payment-Roads 164,950 160,750 161,550 162,200 161,200 Debt Service Payments-City Hall/LTGO'16 401,250 401,450 401,500 401,400 401,150 Total expenditures 998,350 1,021,700 1,043,850 1,064,800 1,089,550 Revenues over(under)expenditures 0 0 0 0 0 Beginning fund balance 0 0 0 0 0 Ending fund balance $ 0 $ 0 $ 0 $ 0 $ 0 91 Fund:301 REET 1 Capital Projects Fund Spokane Valley 2023 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues REET 1-Taxes $ 1,695,344 $ 1,754,320 $ 3,109,113 $ 2,000,000 $ 1,500,000 Investment Interest 61,382 14,742 2,828 2,000 4,000 Total revenues 1,756,726 1,769,062 3,111,941 2,002,000 1,504,000 Expenditures Transfers out-#204 82,475 80,375 80,775 81,100 80,600 Transfers out-#303 517,107 330,295 293,208 311,854 385,967 Transfers out-#311 (pavement preservation) 734,300 772,639 827,278 914,900 1,037,500 Transfers out-#314(Barker Grade Separation) 104,918 1,335,879 0 3,322 3,655 Total expenditures 1,438,800 2,519,188 1,201,261 1,311,176 1,507,722 Revenues over(under)expenditures 317,926 (750,126) 1,910,680 690,824 (3,722) Beginning fund balance 2,480,268 2,798,194 2,048,068 3,958,748 4,649,572 Ending fund balance $ 2,798,194 $ 2,048,068 $ 3,958,748 $ 4,649,572 $ 4,645,850 92 Fund:302 REET 2 Capital Projects Fund Spokane Valley 2023 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues REET2-Taxes $ 1,695,344 $ 1,754,320 $ 3,109,113 $ 2,000,000 $ 1,500,000 Investment Interest 80,784 22,425 5,137 5,000 6,000 Total revenues 1,776,128 1,776,745 3,114,250 2,005,000 1,506,000 Expenditures Transfers out-#204 82,475 80,375 80,775 81,100 80,600 Transfers out-#303 (192,297) 149,678 1,401,744 865,326 602,720 Transfers out-#309 0 0 64,077 196,817 0 Transfers out-#311 (pavement preservation) 734,300 772,638 827,279 914,900 1,037,500 Transfers out-#314 0 0 660,516 0 135,000 Transfers out-#403 0 0 14,927 0 0 624,478 1,002,691 3,049,318 2,058,143 1,855,820 Revenues over(under)expenditures 1,151,650 774,054 64,932 (53,143) (349,820) Beginning fund balance 3,240,220 4,391,870 5,165,924 5,230,856 5,177,713 Ending fund balance $ 4,391,870 $ 5,165,924 $ 5,230,856 $ 5,177,713 $ 4,827,893 93 Fund:303 Street Capital Projects Fund Spokane Valley 2023 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 2,783,332 $ 2,813,485 $ 4,174,243 $ 6,283,904 $ 7,988,376 Developer Contribution 228,953 540,325 1,271,759 1,312,810 71,615 Miscellaneous 586 0 218 0 0 Transfers in-#301 517,107 330,295 293,208 311,854 385,967 Transfers in-#302 (192,297) 149,678 1,401,744 865,326 602,720 Transfers in-#312-Euclid Ave-Flora to Barker 5,111 0 0 0 0 Transfers in-#312-8th&Carnahan Intersection (155) 0 0 0 0 Transfers in-#312-Barker Corridor 1,718,874 320,254 (87,442) 0 0 Transfers in-#312-Garland Ave 203,814 596,582 0 0 0 Transfers in-#312-Crosswalk on Indiana 71,486 0 0 0 0 Transfers in-#312-School Beacons 0 0 0 225,000 0 Transfers in-#315 0 0 0 41,551 108,449 Total revenues 5,336,811 4,750,619 7,053,730 9,040,445 9,157,127 Expenditures 000 Construction-Street Lighting 71,486 0 0 0 0 069 Park Rd Reconstruction(Repay grant) 285,164 0 0 0 0 123 Mission Ave-Flora to Barker 30,696 0 0 0 0 142 Broadway @ Argonne/Mullan 14,544 0 0 0 0 166 Pines Rd(SR27)&Grace Ave.Intersect study 1,444 0 0 0 0 201 ITS Infill Project Phase 1 1,397 0 0 0 0 205 Sprague/Barker Intersection Improvement 24,770 121,294 159,026 1,871,500 19,766 (continued to next page) 94 Fund:303 Street Capital Projects Fund Spokane Valley 2023 Budget (continued from previous page) 2019 2020 2021 2022 2023 Expenditures,continued Actual Actual Actual Budget Budget 247 8th&Carnahan Intersection Improvements (155) 0 0 0 0 249 Sullivan/Wellesley Intersection 93,804 102,051 92,731 1,903,176 0 251 Euclid Ave.-Flora to Barker 5,111 0 0 0 0 259 N.Sullivan Corridor ITS Projects(PE start 201 27,581 740,384 2,150 0 0 265 Wellesley Sidewalk Project 542,277 0 0 0 0 267 Mission Ave Sidewalk 279,348 1,434 0 0 0 273 Barker/I-90 Interchange 331,345 77,865 0 0 0 275 Barker Rd Widening-River to Euclid 50,942 1,193,099 1,679,017 0 0 276 Barker Rd Widening-Euclid to Garland 2,210,790 36,176 0 0 0 278 Wilbur Rd Sidewalk-Boone to Broadway 400,578 0 0 0 0 279 Knox Ave Sidewalk-Hutchinson to Sargent 339,689 0 0 0 0 281 Highland Estates Connector 17,396 0 0 0 0 285 Indiana Ave Pres-Evergreen to Sullivan 0 235,135 0 0 0 287 University Pres-Dishman-Mica to 16th 80,908 0 0 0 0 291 Adams Sidewalk Infill 22,666 279,947 0 0 0 292 MuIlan preservation:Broadway-Mission 3,667 4,822 508,213 0 0 293 2018 CSS Citywide Reflective Signal BP 6,849 114,526 8,144 8,250 0 294 Citywide Reflective Signal Post Panels 3,661 64,703 3,169 3,575 0 295 Garland Avenue Extension 407,628 1,067,612 0 0 0 299 Argonne Rd Concrete Pvmt Indiana to Mont 33,512 78,931 2,205,438 130,017 0 300 Pines&Mission Intersection Improvement 11,993 57,617 63,816 575,538 1,294,831 301 Park&Mission Intersection Improvement 508 45,780 360,002 0 0 302 Ella Sidewalk-Broadway to Alki 21,901 325,308 0 0 0 303 S.Conklin Sidewalk 14,950 110,388 162 0 0 310 Sullivan Rd Overcrossing UP RR Deck Repl 0 16,241 241,954 0 0 313 Barker Rd/Union Pacific Crossing 0 52,030 61,642 400,000 1,044,000 318 Wilbur Sidewalk-Boone to Mission 0 24,023 46,916 572,909 0 320 Sullivan Preservation-Sprague to 8th 0 187 13,537 412,000 2,070,462 321 Argonne Corridor Improvement-North of Knox 0 1,067 1,916 0 10,000 323 Evergreen Road Preservation 0 0 258,659 0 0 326 2020 Citywide Retroreflective Post Plates 0 0 5,639 142,880 89,502 327 Sprague Stormwater&Crossing Project 0 0 0 100,000 1,557,410 329 Barker Rd Imp-City Limits to Appleway 0 0 109,443 250,000 750,000 330 WTSC 2021 School Zone Beacons 0 0 41,780 0 0 332 NE Industrial Area-Sewer Extension 0 0 65,163 0 25,000 335 Mission Ave over Evergreen Deck Repair 0 0 0 261,200 0 340 8th Ave Sidewalk-Coleman to Park 0 0 0 434,400 401,011 342 School zone beacons 0 0 0 225,000 0 343 Buckeye Ave Sewer Extenstion 0 0 0 750,000 0 344 Park Rd Sidewalk-Broadway to cataldo 0 0 0 0 338,862 345 Park Rd Sidewalk-Nora to Baldwin 0 0 0 0 311,600 346 Bowdish Sidewalk 12th to 22nd 0 0 0 0 244,683 Contingency 0 0 0 1,000,000 1,000,000 Total expenditures 5,336,450 4,750,620 5,928,517 9,040,445 9,157,127 Revenues over(under)expenditures 361 0 1,125,213 0 0 Beginning fund balance 67,041 67,402 67,402 1,192,615 1,192,615 Ending fund balance $ 67,402 $ 67,402 $ 1,192,615 $ 1,192,615 $ 1,192,615 95 Fund:309 Park Capital Projects Fund Spokane Valley 2023 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 and frontage improvements at Balfour Park. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 1,114,049 $ 1,334,842 $ 593,260 $ 0 $ 126,100 Developer Contribution 0 0 17,896 0 Transfers in-#001 1,334,369 2,941,166 178,813 160,000 160,000 Transfers in-#302 0 0 64,077 196,817 0 Transfers in-#312 262,599 131,985 604,512 456,189 4,523,900 Investment Interest 85 0 20 0 0 Total revenues 2,711,102 4,407,993 1,458,578 813,006 4,810,000 Expenditures 237 Appleway Trail(Sullivan to Corbin) 16,791 0 0 0 0 268 Appleway Trail(Evergreen to Sullivan) 756,028 1,433,833 2,165 0 0 280 Appleway Trail Amenities(Univ-Pines) 679,259 0 0 0 0 282 Browns Park volleyball courts 1,249 0 0 0 0 296 Browns Park improvements 1,038,701 22,765 0 0 0 304 CenterPlace west lawn improvements-Ph.2 113,419 1,887,746 19,930 0 0 305 CenterPlace roof 9,288 795,656 (1,117) 0 0 306 Discovery Playground Surface Repair 20,061 0 0 0 0 307 Edgecliff Park Swing sets 36,973 0 0 0 0 314 Balfour Park frontage improvements 0 22,048 342,760 168,006 0 315 Browns Park improvements 2020 0 38,049 698,664 0 0 316 Balfour Park improvements-Ph 1 0 10,947 305,134 170,000 3,400,000 328 Sullivan Park Waterline 0 0 32,276 65,000 500,000 337 Reprogram Great Room AN System 0 0 36,951 0 0 338 Spokane Valley River Loop Trail 0 0 79,136 250,000 750,000 Parking&Trail Design(Summerfield,Ponder( 0 0 0 0 136,900 Replace pond liner at Mirabeau 0 0 0 80,000 0 West Lawn Shade Canopy for Stage 0 0 0 0 23,100 Transfers out-#312(park land acquisition) 0 200,000 0 0 0 Total expenditures 2,671,769 4,411,044 1,515,899 733,006 4,810,000 Revenues over(under)expenditures 39,333 (3,051) (57,321) 80,000 0 Beginning fund balance 39,294 78,627 75,576 18,255 98,255 Ending fund balance $ 78,627 $ 75,576 $ 18,255 $ 98,255 $ 98,255 96 Fund:310 Civic Facility Capital Projects Fund Spokane Valley - 2023 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,they may sell the 2.82 acres parcel back to the City for the original purchase price of$839,285. An amendment was made to the interlocal agreement in October 2017 which extended the agreement through October 2022 with the option to extend through October 2024. Through this amendments,the City also agreed to contribute$1.3 million,of which the$839,285 would be part,in frontage and/or joint site improvements on the Library site.Construction on the frontage improvements occurred in 2021 and 2022 and the construction of the new library began in 2022. 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Investment Interest $ 16,700 $ 3,679 $ 692 $ 1,300 $ 1,000 Total revenues 16,700 3,679 692 1,300 1,000 Expenditures Transfers out-#312 18,452 16,700 3,600 0 0 Payment to Library District 0 0 0 560,000 0 Total expenditures 18,452 16,700 3,600 560,000 0 Revenues over(under)expenditures (1,752) (13,021) (2,908) (558,700) 1,000 Beginning fund balance 857,737 855,985 842,964 840,056 281,356 Ending fund balance $ 855,985 $ 842,964 $ 840,056 $ 281,356 $ 282,356 97 Fund:311 Pavement Preservation Fund Spokane Valley 2023 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 2021 and budgeted amounts for 2022 and 2023: Fund 001 101 106 123 301/302 310 Street Civic Fac. Civic Fac. General Street O&M Wear Fee Replace. REET 1&2 Capital Grants I I Total j Actual 2011 584,681 0 0 0 0 500,000 0 1,084,681 2012 2,045,203 0 0 0 0 0 0 2,045,203 2013 855,857 282,000 0 616,284 300,000 0 35,945 2,090,086 2014 888,823 282,000 0 616,284 368,944 0 2,042,665 4,198,716 2015 920,000 206,618 0 616,284 502,098 0 835,224 3,080,224 2016 943,800 67,342 0 559,808 730,572 0 1,654,698 3,956,220 2017 953,200 67,342 0 0 1,320,958 0 89,208 2,430,708 2018 962,700 67,342 1,000,000 0 1,370,658 0 1,422,404 4,823,104 2019 972,300 0 1,608,028 0 1,468,600 0 2,398,330 6,447,258 2020 982,023 0 1,513,532 0 1,545,277 0 98,281 4,139,113 2021 991,843 0 1,537,776 0 1,654,557 0 0 4,184,176 Budget 2022 1,001,800 0 1,860,519 0 1,829,800 0 1,029,000 5,721,119 2023 1,011,800 0 1,700,000 0 2,075,000 0 1,760,000 6,546,800 13,114,030 972,644 9,219,855 2,408,660 13,166,464 500,000 11,365,755 50,747,408 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 2021 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 began to rely more heavily on REET funds.We have determined that the 2023 funding level representing approximately 6%of General Fund recurring expenditures is$3,086,800 and that this level of funding is sustainable through 2026 assuming a General Fund contribution of$1,011,800 and a collective contribution of $2,075,000 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Transfers in-#001 $ 972,300 $ 982,023 $ 991,843 $ 1,001,800 $ 1,011,800 Transfers in-#106 1,608,028 1,513,532 1,537,776 1,589,519 1,700,000 Transfers in-#301 734,300 772,639 827,278 914,900 1,037,500 Transfers in-#302 734,300 772,638 827,279 914,900 1,037,500 Investment Interest 49,593 10,960 3,448 0 0 Grant Proceeds 2,398,330 98,281 0 1,029,000 1,760,000 Developer Contributions 1,267,575 0 29,011 0 0 Total revenues 7,764,426 4,150,073 4,216,635 5,450,119 6,546,800 Expenditures Pavement preservation 7,954,415 2,783,129 4,464,692 5,426,844 7,805,121 Pre-projectGeoTech 22,125 0 0 50,000 50,000 Total expenditures 7,976,540 2,783,129 4,464,692 5,476,844 7,855,121 Revenues over(under)expenditures (212,114) 1,366,944 (248,057) (26,725) (1,308,321) Beginning fund balance 4,637,315 4,425,201 5,792,145 5,544,088 5,517,363 Ending fund balance $ 4,425,201 $ 5,792,145 $ 5,544,088 $ 5,517,363 $ 4,209,042 98 Fund:312 Capital Reserve Fund Spokane Valley 2023 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 2022 in the amount of$42,509,950. Projects approved by City Council from this fund include in part: • $2,396,813 for construction of various sections of the Appleway Trail. • $1,800,000 to remove and reconstruct Euclid Ave.from Flora to Barker after County installation of sewer. • $1,421,321 towards a Barker Road/BNSF Grade Separation project. • $3,485,417 towards a Pines Road/BNSF Grade Separation project. • $2,567,741 towards Barker Road corridor improvements. • $4,839,710 for park land acquisitions. • $460,715 towards improvements at the Spokane County Library's proposed Balfour site. • $225,000 towards school zone beacons Commitments to future projects include: • $500,000 towards Sullivan Road/BNSF Interchange project. • $3,875,023 towards Balfour Park construction. • $1,750,000 towards the Spokane Valley River Loop Trail. • $1,400,000 towards the replacement of police vehicles. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Transfers in-#001 $ 7,109,300 $ 0 $11,126,343 $ 3,593,000 $ 0 Transfers in-#309 0 200,000 0 0 0 Transfers in-#310 18,452 0 3,600 0 0 Transfers in-#313 88,590 16,700 0 0 0 Grant Proceeds 0 0 0 1,000,000 0 Proceeds from sale of land 0 0 109,403 0 0 Investment Interest 225,907 58,188 8,304 10,000 20,000 Total revenues 7,442,249 274,888 11,247,650 4,603,000 20,000 Expenditures Transfers out-#001-police vehicle replacement 0 0 0 200,000 1,200,000 Transfers out-#001-City Hall repairs 0 0 0 700,000 0 Transfers out-#001-sculpture installation 0 0 0 64,000 0 Transfers out-#101 907,544 1,364,706 0 0 0 Transfers out-#303-Euclid Ave-Flora to Barker 5,111 0 0 0 0 Transfers out-#303-School Beacons 0 0 0 225,000 0 Transfers out-#303-Barker Road Corridor 1,718,874 916,837 (87,442) 0 0 Transfers out-#303- Garland Ave 203,814 0 0 0 0 Transfers out-#303- Crosswalk lighting on India 71,486 0 0 0 0 Transfers out-#303- 8th&Carnahan Intersectioi (155) 0 0 0 0 Transfers out-#309-Appleway Trail 262,599 98,991 (65,815) 0 0 Transfers out-#309-Balfour Park frontage impro, 0 22,048 260,788 0 0 Transfers out-#309-Balfour Park improvements 0 10,947 305,133 141,189 3,400,000 Transfers out-#309-Sullivan Park water line 0 0 25,269 65,000 373,900 Transfers out-#309-Spokane Valley River Loop 0 0 79,136 250,000 750,000 Transfers out-#314-Pines Grade Separation 0 125,086 (6,684) 178,540 196,394 Transfers out-#314-Barker Rd Overpass 0 0 438,623 347,998 347,998 Transfers out-#314-Sullivan Rd Interchange 0 73,615 170,333 256,052 0 Transfers out-#316-Fairground Building 0 0 0 46,642 0 WSDOT Sullivan Park Property Acquisition 0 0 3,357 759,600 0 Precinct property acquisition 226,700 0 2,230,449 0 0 Park property acquisition 84,380 2,095,710 1,875,881 0 0 Total expenditures 3,480,353 4,707,940 5,229,028 3,234,021 6,268,292 Revenues over(under)expenditures 3,961,896 (4,433,052) 6,018,622 1,368,979 (6,248,292) Beginning fund balance 8,974,920 12,936,816 8,503,764 14,522,386 15,891,365 Ending fund balance $12,936,816 $ 8,503,764 $14,522,386 $15,891,365 $ 9,643,073 99 Fund:313 City Hall Construction Fund Spokane Valley 2023 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Investment Interest $ 953 $ 0 $ 0 $ 0 $ 0 Total revenues 953 0 0 0 0 Expenditures Capital Outlay-City Hall 0 0 0 0 0 Services&Charges 0 0 0 0 0 Transfers out-#312 88,589 0 0 0 0 Total expenditures 88,589 0 0 0 0 Revenues over(under)expenditures (87,636) 0 0 0 0 Beginning fund balance 87,636 0 0 0 0 Ending fund balance $ 0 $ 0 $ 0 $ 0 $ 0 Fund:314 Railroad Grade Separation Projects Fund Spokane Valley 2023 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 2022 and 2023 are related to design and right of way costs for the Pines Road Underpass project and the right of way and construction costs for the Barker Road Overpass project. Design work is also beginning for the Sullivan Road Interchange. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 1,447,398 $ 3,394,512 $ 280,718 $ 1,803,214 $ 2,827,086 Investment Interest 15,883 411 426 0 0 Developer Contributions 0 0 51,403 187,511 187,511 Rental Income 0 0 17,793 0 0 Transfers in-#301 104,918 1,335,879 0 3,322 3,655 Transfers in-#302 0 0 660,516 0 135,000 Transfers in-#312 0 198,701 602,272 782,590 544,392 Total revenues 1,568,199 4,929,503 1,613,128 2,776,637 3,697,644 Expenditures Barker BNSF Grade Separation 1,552,316 3,792,655 1,150,542 750,000 750,000 Pines Rd Underpass 43,717 1,278,344 495,989 2,000,000 2,200,000 Sullivan Rd Interchange 0 73,615 170,333 256,052 1,000,000 Total expenditures 1,596,033 5,144,614 1,816,864 3,006,052 3,950,000 Revenues over(under)expenditures (27,834) (215,111) (203,736) (229,415) (252,356) Beginning fund balance 1,036,473 1,008,639 793,528 589,792 360,377 Ending fund balance $ 1,008,639 $ 793,528 $ 589,792 $ 360,377 $ 108,021 100 Fund:315 Transportation Impact Fees Fund Spokane Valley 2023 Budget Beginning in 2021,the City began collecting transportation impact fees allowed pursuant to RCW 82.02.050-82.02.110 and SVMC 22.100.These are fees specifically allowed to address impacts from new development and they may be imposed on all developments within a designated area.The City has performed several studies to determine the impact areas on which the fees are being imposed. All fees collected must be applied to transportation system improvements identified in the corresponding study. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Transportation Impact Fees $ 0 $ 0 $ 294,477 $ 200,000 $ 200,000 Investment Earnings 0 0 130 0 0 Total revenues 0 0 294,607 200,000 200,000 Expenditures Transfers out-#303 0 0 0 41,551 108,449 Total expenditures 0 0 0 41,551 108,449 Revenues over(under)expenditures 0 0 294,607 158,449 91,551 Beginning fund balance 0 0 0 294,607 453,056 Ending fund balance $ 0 $ 0 $ 294,607 $ 453,056 $ 544,607 Fund:316 Economic Development Capital Projects Fund Spokane Valley 2023 Budget In 2015,the City contracted with Community Attributes Inc.to develop a Retail Improvement Strategy and Action Plan. This plan led to another study with Community Attributes in 2016 to further explore tourism as an economic driver. The resulting 2016 Tourism Plan identified nine projects,including an expanded mixed-use facility around the Fairground and Avista Stadium,for future development. These projects would likely boost tourism and help anchor the City's leisure and retail community. Over the next several years,the City continued more in-depth analysis of some of the projects identified in the Tourism Plan and moved forward on several smaller projects. In 2020,the City began discussions with Spokane County regarding the concept of expanding the Expo Center to create additional space and versatility to attract and support multiple conferences and special events. The new Expo Center at the County Fairgrounds was estimated to cost$10 million;however,after doing some preliminary design work,the cost was estimated to be much greater than that amount.As such,the project has been put on hold and funding has been reallocated.The 2022 budget reflects actual costs incurred for preliminary design. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Transfers in-#312 $ 0 $ 0 $ 3,358 $ 46,642 $ 0 Total revenues 0 0 3,358 46,642 0 Expenditures Fairgrounds Building 0 0 3,358 46,642 0 Total expenditures 0 0 3,358 46,642 0 Revenues over(under)expenditures 0 0 0 0 0 Beginning fund balance 0 0 0 0 0 Ending fund balance $ 0 $ 0 $ 0 $ 0 $ 0 101 Fund:402 Stormwater Management Fund Spokane Valley 2023 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 2022 • Continued the evaluation efforts for the Glenrose and Central Floodplain mapping for FEMA. • Continued collaboration efforts with local,State,and Federal stormwater regulatory bodies. • Continue the inventory and mapping of all City stormwater facilities. • Continue on-going stormwater maintenance and repairs utilizing in-house and contracted services. • Integrated stormwater facility improvements with the City's various capital projects. • Finalized the development of a Comprehensive Stormwater Management Plan for the City. • Finalized and adopted a Stormwater Utility Rate Study. Goals for 2023 • Continue the evaluation efforts for the Glenrose and Central Floodplain mapping for FEMA. • Continue collaboration efforts with local,State,and Federal stormwater regulatory bodies. • Continue the inventory and mapping of all City stormwater facilities. • Continue on-going stormwater maintenance and repairs utilizing in-house and contracted services. • Implement stormwater system improvements,integrating with other capital projects for efficiency. • Adopt the 2022 Comprehensive Stormwater Management Plan for the City. • Work with other departments in developing a city-wide,comprehensive Asset Management Program,which will include stormwater facilities. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Engineer 1.0 1.0 1.0 1.0 1.0 Engineering Technician I 0.0 0.0 0.5 0.5 0.5 Engineering Technician II 1.0 1.0 1.0 1.0 1.0 Engineering Manager-Utility 0.0 0.0 0.0 0.0 0.5 Communication&Marketing Officer 0.0 0.0 0.0 0.0 0.23 Stormwater Forman 0.0 0.0 0.9 0.9 0.9 Assistant Engineer 0.5 0.5 0.0 0.0 0.0 Mechanic 0.0 0.0 0.0 0.25 0.25 Maintenance/Construction Inspector 1.15 1.15 0.25 0.0 0.0 Senior Planning Grants Engineer 0.25 0.25 0.25 0.25 0.0 GIS Analyst 0.00 0.00 0.23 0.23 0.0 3.90 3.90 4.13 4.13 4.38 Interns 2.0 2.0 2.0 2.0 2.0 (continued to next page) 102 Fund:402 Stormwater Management Fund Spokane Valley 2023 Budget (continued from previous page) Budget Summary Recurring Activity 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Stormwater Management fees $ 1,936,362 $ 1,910,349 $ 2,026,140 $ 1,910,000 $ 1,951,000 Investment Interest 48,642 10,244 2,134 2,000 2,000 Miscellaneous&Grants Proceeds 58,746 482 0 0 0 Total revenues 2,043,750 1,921,075 2,028,274 1,912,000 1,953,000 Expenditures Wages,Payroll Taxes&Benefits 436,421 412,173 331,944 560,631 635,392 Supplies 16,956 49,228 14,922 18,150 20,800 Services&Charges 1,135,846 1,180,534 1,153,820 1,298,395 1,449,742 Intergovernmental Services 37,983 40,452 42,222 45,000 48,000 Interfund vehicle lease-#501 0 14,000 6,750 6,750 6,750 Total expenditures 1,627,206 1,696,387 1,549,658 1,928,926 2,160,684 Recurring revenues over(under) Recurring Expenditures 416,544 224,688 478,616 (16,926) (207,684) Nonrecurring Activity Revenues Grant Proceeds 106,000 304 95,000 0 0 Total Nonrecurring revenues 106,000 304 95,000 0 0 Expenditures Capital-Various Projects 423,585 227,770 383,412 315,000 200,000 Stormwater Comprehensive Plan 0 0 0 300,000 50,000 Watershed studies 48,576 48,336 37,242 100,000 100,000 Generator for Maintenance Shop 0 0 0 50,000 0 Total Nonrecurring expenditures 472,161 276,106 420,654 765,000 350,000 Nonrecurring revenues over(under) Nonrecurring Expenditures (366,161) (275,802) (325,654) (765,000) (350,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures 50,383 (51,114) 152,962 (781,926) (557,684) Beginning working capital 2,216,210 2,180,773 2,159,796 2,401,719 1,619,793 Ending working capital $ 2,266,593 $ 2,129,659 $ 2,312,758 $ 1,619,793 $ 1,062,109 103 Fund:403 Aquifer Protection Area Fund Spokane Valley 2023 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Spokane County $ 469,429 $ 426,234 $ 522,357 $ 460,000 $ 460,000 Grant Proceeds 101,715 60,996 1,434,700 1,151,247 397,500 Investment Interest 37,329 9,135 1,220 1,900 1,900 Transfer in-#302 0 0 14,926 0 0 Miscellaneous 0 0 60,801 0 0 Total Revenues 608,473 496,365 2,034,004 1,613,147 859,400 Expenditures Capital-Various projects 329,829 494,300 2,989,076 685,972 1,421,100 Effectiveness study 0 0 45,454 55,000 55,000 Total Expenditures 329,829 494,300 3,034,530 740,972 1,476,100 Revenues over(under)expenditures 278,644 2,065 (1,000,526) 872,175 (616,700) Beginning working capital 1,840,005 2,118,299 2,120,365 1,119,839 1,992,014 Ending working capital $ 2,118,649 $ 2,120,364 $ 1,119,839 $ 1,992,014 $ 1,375,314 104 Fund:501 Equipment Rental&Replacement Fund Spokane Valley 2023 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. Snow Plow Fleet Truck# Model Year YR Acquired Age at Retirement Replacement Yr Notes 207 1997 2009 25 2022 203 1995 2009 28 2023 204 1995 2009 29 2024 208 1997 2009 28 2025 Existing Fleet 209 1998 2011 28 2026 (11)Snow Plows 211 2000 2012 27 2027 206 1996 2009 32 2028 205 1996 2009 33 2029 210 2010 2011 22 2032 218 2016 2015 22 2037 219 2021 2020 22 2043 225 2023 2022 22 2045 207 is retired ** 2024 2024 22 2046 203 is retired ** 2025 2025 22 2047 204 is retired ** 2026 2026 22 2048 208 is retired ** 2027 2027 22 2049 209 is retired ** 2028 2028 22 2050 211 is retired ** 2029 2029 22 2051 206 is retired ** 2030 2030 22 2052 205 is retired (continued to next page) 105 Fund:501 Equipment Rental&Replacement Fund Spokane Valley 2023 Budget (continued from previous page) Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Vehicle rentals-#001 $ 30,000 $ 28,000 $ 31,300 $ 31,300 $ 52,100 Vehicle rentals-#101 21,250 14,500 10,250 10,250 27,750 Vehicle rentals-#101 (plow replace.) 77,929 48,500 60,500 275,000 275,000 Vehicle rentals-#402 12,750 14,000 6,750 6,750 6,750 Transfers in-#001 (CenterPlace kitchen reserve) 36,600 36,600 36,600 0 0 Transfers in-#001 (Code Enforcement Vehicle) 0 27,472 0 40,000 0 Transfers in-#001 (Additional dump bed truck) 0 0 0 80,000 58,000 Investment Interest 26,715 6,074 1,147 1,200 2,000 Total Revenues 205,244 175,146 146,547 444,500 421,600 Expenditures Wages,Payroll Taxes&Benefits 0 0 0 0 0 Small tools&minor equipment 122 0 275 10,000 10,000 Vehicle Purchase 0 27,472 108,762 262,500 238,000 Snow plow purchase 0 255,806 0 250,000 275,000 Depreciation Expense-Machinery&Equipment 0 0 0 0 0 Total Expenditures 122 283,278 109,037 522,500 523,000 Revenues over(under)expenditures 205,122 (108,132) 37,510 (78,000) (101,400) Beginning working capital 1,290,971 1,496,093 1,387,962 1,425,472 1,347,472 Ending working capital $ 1,496,093 $ 1,387,962 $ 1,425,472 $ 1,347,472 $ 1,246,072 Fund:502 Risk Management Fund Spokane Valley 2023 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 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Transfers in-#001 $ 390,000 $ 410,000 $ 425,000 $ 450,000 $ 600,000 Investment Interest 2,124 248 117 0 0 Total Revenues 392,124 410,248 425,117 450,000 600,000 Expenditures Auto&Property insurance 348,794 337,987 365,384 450,000 600,000 Unemployment Claims 31,104 7,781 7,397 0 0 Total Expenditures 379,898 345,768 372,781 450,000 600,000 Revenues over(under)expenditures 12,226 64,480 52,336 0 0 Beginning working capital 263,778 276,004 340,484 392,820 392,820 Ending working capital $ 276,004 $ 340,484 $ 392,820 $ 392,820 $ 392,820 106 Fund:632 Passthrough Fees&Taxes Fund Spokane Valley 2023 Budget This fund was created during the 2022 Budget development process to account for State assessed District Court fees collected by Spokane County and remitted to the City as well as passthrough tax revenues such as leasehold excise and sales taxes. The City then remits the funds to the State Treasurer and County Prosecutor. These are fuduciary activities according to GASB accounting pronouncements. Budget Summary 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Fees&Taxes collected for other governments $ 0 $ 372,072 $ 589,853 $ 591,000 $ 591,000 Total Revenues 0 372,072 589,853 591,000 591,000 Expenditures Fees&Taxes remitted to other governments 0 371,759 590,166 591,000 591,000 Total Expenditures 0 371,759 590,166 591,000 591,000 Revenues over(under)expenditures 0 313 (313) 0 0 Beginning working capital 0 0 313 0 0 Ending working capital $ 0 $ 313 $ 0 $ 0 $ 0 107 CITY OF SPOKANE VALLEY,WA Capital Expenditures for 2023 SOURCE OF FUNDS #001 101 #106 #107 #301 #302 #309 #311 #312 #314 #315 #402 #403 #501 2023 REET 1 REET 2 Park Aquifer Equipment Expenditure Street Solid Capital Capital Capital Pavement Capital Grade Transportation Stormwater Protection Rental& Developer Capital Outlay Description Budget General O&M Waste PEG Projects Projects Projects Preservation Reserve Separation Impact Fees Management Area Replacement Grants Contributions #001 General Fund -IT capital replacements 181,000 181,000 -Office furniture for Paralegal 8,500 8,500 -Precinct security installation 20,000 20,000 -Police Vehicles 1,350,085 150,085 1,200,000 -Finacial software capital costs 500,000 500,000 Subtotal 2,059,585 859,585 I I 0 I 0 I 0 I 0 I o I o I 1,200,000 I 0 I 0 I 0 I 0 I 0 I 0 I 0 #101 Street Fund -Streetlight replacement program 40,000 40,000 -Signal maintenance equipment 40,000 40,000 Subtotal 80,000 0I 80,000 I oI oI oI oI oI oI oI oI oI oI oI oI oI o #107 PEG Fund -PEG Capital outlay 33,500 33,500 Subtotal 33,500 01 01 0I 33,500 I 0I oI 0I 0I 0I 0I 0I oI oI 0I 0I 0 #303 Street Capital Projects Fund 205 Sprague/Barker Intersection Improvement 19,766 19,740 26 300 Pines and Mission Intersection Improvement 1,294,831 59,364 1,233,878 1,589 313 Barker Road/Union Pacific Crossing 1,044,000 307,371 108,449 628,180 320 Sullivan Preservation:Sprague-8th 2,070,462 2,070,462 321 Argonne Corridor Imprv-North of Knox 10,000 10,000 326 2020 Citywide Retroreflective Post Plates 89,502 89,502 327 Sprague Stormwater&Crossing Project 1,557,410 90,396 1,467,014 329 Barker Road Imp-City Limits to Appleway 750,000 31,250 648,750 70,000 332 NE Industrial Area-Sewer Extension 25,000 25,000 340 8th Ave Sidewalk(Coleman to Park) 401,011 160,349 240,662 344 Park Rd Sidewalk-Broadway to cataldo 338,862 16,577 322,285 345 Park Rd Sidewalk-Nora to Baldwin 311,600 60,000 251,600 346 Bowdish Sidewalk 12th to 22nd 244,683 28,380 216,303 Contingency 1,000,000 100,000 100,000 800,000 Subtotal 9,157,127. 0 I 0 I 0 I 0 I 385,967 I 602,720 I 0 I 0 I 0 108,449 I 0 I 0 I 0 I 7,988,376 I 71,615 #309 Parks Capital Proiects Fund 316 Balfour Park Improvements-ph.1 3,400,000 3,400,000 328 Sullivan Park water line 500,000 500,000 338 Spokane River Loop Trail 750,000 750,000 Parking&Trail Design 136,900 136,900 CenterPlace West Lawn Shade Canopy for Stage 23,100 23,100 Subtotal 4,810,000 160,000 I 0 I 0 I 0 I 0 I o I 0 I 0 I 4,650,000 I 0 I o I 0 I 0 I 0 I 0 I 0 --#311 Pavement Preservation Fund -Pavement preservation 7,805,121 1,011,800 1,700,000 1,037,500 1,037,500 1,258,321 1,760,000 Subtotal 7,805,121 1,011,800 I 0 I 1,700,000 I 0 I 1,037,500 I 1,037,500 I 0 I 1,258,321 I 0 1 O I O I 0 I 0 I 0 I 1,760,000 ® #314 Grade Separation Fund 143 Barker BNSF Grade Separation 750,000 347,998 214,491 187,511 223 Pines Rd Underpass @ BNSF&Trent' 2,200,000 3,655 196,394 252,356 1,747,595 311 Sullivan Rd Interchange @ Trent 1,000,000 135,000 865,000 3,950,000 0 I 0 I 0 0 I 3,655 i 135,000 i 0 I 01..244,392 , 252,356 I 01 Si 0 I 0 I 2,827,086 1 187,511 #402 Stormwater Management Fund -Capital-various projects 200,000 200,000 Subtotal 200,000 Si Si Si Si Si Si Si Si Si Si Si 200,000I Si Si Si o #403 Aquifer Protection Area Fund _ -Capital-various projects 1,421,100 1,023,600 397,500 Subtotal 1,421,100 0I 0I 0I 0I 0I 0I 0I 0I 0I 0I 0I 0I 1,023,600 I 0I 397,500 I 0 #501 Equipment Rental and Replacement Fund -Vehicle purchase 238,000 58,000 180,000 -Snow plow purchase 275,000 275,000 Subtotal 513,000 0I 58,000 I 0I 0I 0I 0I 0I 0I 0I 0I 0I 0I 0I 455,000 I 0I 0 .11 Total Capital Expenditures and Related Financing 30,029,433 2,031,385 138,000 1,700,000 33,500 1,427,122 1,775,220 0 1,258,321 6,394,392 252,356 108,449 200,000 1,023,600 455,000 12,972,962 259,126 1 Contingency amount is to cover unforseen overruns,costs related to projects that were expected to complete in 2021 and the costs of projects that have not yet had funding sources identified. 2 Use of Fund Balance for CIP 0223-Pines Rd Underpass @ BNSF&Trent is a portion of the$1,200,000 transferred from the General Fund in 2017. -Dollar figures in Italicized Bold font are paid from a combination of existing fund balance and fund revenue that is not attributable to a single project. 108 P:\Finance\2023 Budget\Budget Book\Budget Book 2023 approved CITY OF SPOKANE VALLEY,WA Full Time Equivalent Employees Difference from Adopted Amended Proposed 2022 to 2023 2013 I 2014 I 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 2022 2023 +(-) #001 -General Fund (1) (2) (3) City Manager/City Clerk 5 5 5 5 5 7 6.5 7.5 7.5 5.5 5.5 0.000 City Attorney 3 3 3 3 3 3.5 3.5 4 4 4 5 1.000 (4) Public Safety 0 0 0 0 0 0 0.12 0.12 0.12 0.36 0.36 0.000 Deputy City Manager 6 6 6 6 6 3 1 1 1 3 3 0.000 Finance 10.75 11.75 11.75 11.75 11.75 11.75 11.75 11.75 11.75 9.75 9.75 0.000 Human Resources 2 2 2 2 2 2 2 2 2 2 2 0.000 Information Technology 0 0 0 0 0 0 0 0 0 3 3 0.000 Public Works 7 7.375 7.375 7.375 6.375 0 0 0 0 0 0 0.000 Facilities 0 0 0 0 1 1 0.88 0.88 1.88 2.8 2.8 0.000 CPW-Administration 0 0 0 0 0 0 0 0 0 2 2 0.000 CPW-Engineering 0 0 0 0 0 12.5 13.275 13.025 14.025 13.825 13.825 0.000 CPW-Building 0 0 0 0 0 18 20 21 20 15 15 0.000 CPW-Planning 0 0 0 0 0 0 0 0 0 5 5 0.000 Economic Development 0 0 0 0 0 6.375 6 6 5.77 6.77 6.77 0.000 CED-Administration 2 2 2 2 1 0 0 0 0 0 0 0.000 CED-Economic Development 0 0 2.5 2.65 4 0 0 0 0 0 0 0.000 CED-Development Services 0 0 11 11 10 0 0 0 0 0 0 0.000 CED-Engineering 8 7 0 0 0 0 0 0 0 0 0 0.000 CED-Planning 8 8 0 0 0 0 0 0 0 0 0 0.000 CED-Building 11.5 12.5 14 14 15 0 0 0 0 0 0 0.000 Parks&Rec-Admin 2 2 2 2 2 2 2 2 2 2 2 0.000 Parks&Rec-Recreation 1 1 1 1 1 1 1 1.6 1.6 1.6 1.6 0.000 Parks&Rec-Senior Center 1 1 1 1 1 1 1 0.4 0.4 0.4 0.4 0.000 Parks&Rec-CenterPlace 5 5 5 5 5 5 5 5 5 4.84 4.84 0.000 Total General Fund 72.25 73.625 73.625 73.775 74.125 74.125 74.025 76.275 77.045 81.845 82.845 1.000 #101 -Street Fund 5 5.375 5.725 5.725 5.725 5.725 7.725 7.475 7.475 7.475 8.475 1.000 (4) #303-Street Capital Project Fund 3.5 3.5 3.5 3.5 3.5 5 8.1 7.6 7.6 9.8 9.8 0.000 #402-Stormwater Fund 4.5 4.75 4.4 4.4 4.4 4.4 3.9 3.9 4.13 4.13 4.13 0.000 Total FTEs 85.25 87.25 87.25 87.4 87.75 89.25 93.75 95.25 96.25 103.25 105.25 2.000 (1) FTEs for 2017 reflect the reorganization that was effective in April 2017. The original 2017 Budget had FTEs of 88.4. (2) FTEs for 2018 reflect the budget amendment approved on May 29, 2018. (3) The 2022 Budget was amended to to reflect the City's reorganization, which added 1 FTE as the Community and Public Works Director and 1 FTE for a Custodian. (4) Proposed 2023 includes a new Paralegal position in City Attorney and a new Traffic Signal Technician in#101-Street Fund. 109 Appendix A EMPLOYEE POSITION CLASSIFICATION MONTHLY SALARY SCHEDULE Effective January 1,2023 Position Title Grade 2023 Range City Manager Unclassified Deputy City Manager 22 11,920.14 - 17,709.69 City Attorney 21 10,738.86 - 15,938.85 Finance Director 21 10,738.86 - 15,938.85 Community&Public Works Director 21 10,738.86 - 15,938.85 Parks,Recreation,and Facilities Director 20 9,664.85 - 14,346.02 City Engineer 20 9,664.85 - 14,346.02 Economic Development Director 20 9,664.85 - 14,346.02 Human Resources Director 20 9,664.85 - 14,346.02 Senior Deputy City Attorney 19 8,698.21 - 12,911.56 Building Official 19 8,698.21 - 12,911.56 Engineering Manager 19 8,698.21 - 12,911.56 Planning Manager 18 7,829.40 - 11,619.83 Senior Engineer 18 7,829.40 - 11,619.83 Public Works Superintendent 18 7,829.40 - 11,619.83 Accounting Manager 17 7,046.06 - 10,457.42 Assistant Building Official 17 7,046.06 - 10,457.42 Senior Administrative Analyst 17 7,046.06 - 10,457.42 IT Manager 17 7,046.06 - 10,457.42 Legislative Coordinator 17 7,046.06 - 10,457.42 Deputy City Attorney 16 6,340.81 - 9,411.07 City Clerk 16 6,340.81 - 9,411.07 Engineer 16 6,340.81 - 9,411.07 Senior Planner 16 6,340.81 - 9,411.07 Development Services Coordinator 16 6,340.81 - 9,411.07 Database Administrator 16 6,340.81 - 9,411.07 Accountant/Budget Analyst 16 6,340.81 - 9,411.07 Housing and Homeless Services Coordinator 16 6,340.81 - 9,411.07 Project Manager 16 6,340.81 - 9,411.07 CAD Manager 16 6,340.81 - 9,411.07 Code Enforcement Supervisor 16 6,340.81 - 9,411.07 Associate Planner 15 5,707.52 - 8,470.55 Assistant Engineer 15 5,707.52 - 8,470.55 IT Specialist 15 5,707.52 - 8,470.55 Engineering Technician II 15 5,707.52 - 8,470.55 Communications and Marketing Officer 15 5,707.52 - 8,470.55 Economic Development Project Specialist 15 5,707.52 - 8,470.55 Senior Plans Examiner 15 5,707.52 - 8,470.55 Public Information Officer 15 5,707.52 - 8,470.55 Administrative Analyst 15 5,707.52 - 8,470.55 Maintenance/Construction Foreman 15 5,707.52 - 8,470.55 GIS Analyst 15 5,707.52 8,470.55 Signal Technician 15 5,707.52 8,470.55 Mechanic 14 5,137.08 - 7,624.08 Human Resource Analyst 14 5,137.08 - 7,624.08 CenterPlace Coordinator 14 5,137.08 - 7,624.08 Planner 14 5,137.08 - 7,624.08 Building Inspector II 14 5,137.08 - 7,624.08 Plans Examiner 14 5,137.08 - 7,624.08 Engineering Technician I 14 5,137.08 - 7,624.08 Senior Permit Specialist 14 5,137.08 - 7,624.08 Code Enforcement Officer 14 5,137.08 - 7,624.08 Maintenance/Construction Inspector 14 5,137.08 - 7,624.08 Recreation Coordinator 13 4,623.00 - 6,861.41 Deputy City Clerk 13 4,623.00 - 6,861.41 Customer Relations/Facilities Coordinator 13 4,623.00 - 6,861.41 Building Inspector I 13 4,623.00 - 6,861.41 Executive Assistant 13 4,623.00 - 6,861.41 Planning Technician 13 4,623.00 - 6,861.41 Human Resources Technician 13 4,623.00 - 6,861.41 Maintenance Lead 13 4,623.00 - 6,861.41 Senior Center Specialist 12 4,162.22 - 6,175.11 Permit Facilitator 12 4,162.22 - 6,175.11 Help Desk Technician 12 4,162.22 - 6,175.11 Accounting Technician 12 4,162.22 - 6,175.11 Administrative Assistant 12 4,162.22 - 6,175.11 Recreation Specialist 12 4,162.22 - 6,175.11 Paralegal 12 4,162.22 - 6,175.11 Maintenance Worker II 12 4,162.22 - 6,175.11 Maintenance Worker I 11 3,744.85 - 5,557.87 Permit Specialist 11 3,744.85 - 5,557.87 Office Assistant II 10-11 3,370.14 - 5,557.87 Custodian 10 3,370.14 - 5,000.91 Office Assistant I 9-10 3,033.50 - 5,000.91 Note: Slight rounding differences may exist between the figures reflected on this page and the actual payroll rates computed by the Eden Payroll System. 110 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. 111 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 112 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. 113 CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO.22-023 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING A BUDGET FOR THE PERIOD JANUARY 1, 2023 THROUGH DECEMBER 31, 2023; 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, 2023 and ending December 31,2023; 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 13, October 11, and November 8, 2022. 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 October 4, 2022; and WHEREAS, the City Council desires to adopt the 2023 budget, including all allowances, and an appropriation for each fund; and WHEREAS, the City of Spokane Valley property tax levy in 2022 for collection in 2023, will be $13,569,200, which represents a 0% increase in the 2023 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 2023 Budget. The budget for the City of Spokane Valley for the year 2023 is adopted at the fund level. The final budget for 2023 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: 114 Ordinance 22-023 Adopting 2023 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 37,559,695 57,618,900 95,178,595 58,815,188 36,363,407 Street Fund 101 990,801 6,694,348 7,685,149 6,842,348 842,801 Paths&Trails Fund 103 37,658 8,800 46,458 0 46,458 Hotel/Motel Tax-Tourism Facilities Fund 104 5,347,694 605,000 5,952,694 0 5,952,694 Hotel/Motel Tax Fund 105 165,000 901,000 1,086,000 901,000 165,000 Solid Waste 106 879,600 1,929,000 2,808,600 1,929,000 879,600 PEG Fund 107 171,895 71,000 242,895 73,000 169,895 Affordable&Supportive Housing Sales Tax Fui 108 560,327 200,000 760,327 0 760,327 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,500,000 0 5,500,000 0 5,500,000 Winter Weather Reserve Fund 122 525,492 1,100 526,592 500,000 26,592 LTGO Bond Debt Service Fund 204 0 1,089,550 1,089,550 1,089,550 0 REET 1 Capital Projects Fund 301 4,649,572 1,504,000 6,153,572 1,507,722 4,645,850 REET 2 Capital Projects Fund 302 5,177,713 1,506,000 6,683,713 1,855,820 4,827,893 Street Capital Projects 303 1,192,615 9,157,127 10,349,742 9,157,127 1,192,615 Park Capital Projects Fund 309 98,255 4,810,000 4,908,255 4,810,000 98,255 Civic Facilities Capital Projects Fund 310 281,356 1,000 282,356 0 282,356 Pavement Preservation Fund 311 5,517,363 6,546,800 12,064,163 7,855,121 4,209,042 Capital Reserve Fund 312 15,891,365 20,000 15,911,365 6,268,292 9,643,073 Railroad Grade Separation Projects Fund 314 360,377 3,697,644 4,058,021 3,950,000 108,021 Transportation Impact Fees Fund 315 453,056 200,000 653,056 108,449 544,607 Economic Development Capital Projects Fund 316 0 0 0 0 0 85,659,834 96,561,269 182,221,103 105,662,617 76,558,486 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Stormwater Management Fund 402 1,619,793 1,953,000 3,572,793 2,510,684 1,062,109 Aquifer Protection Area Fund 403 1,992,014 859,400 2,851,414 1,476,100 1,375,314 Equipment Rental&Replacement Fund 501 1,347,472 421,600 1,769,072 523,000 1,246,072 Risk Management Fund 502 392,820 600,000 992,820 600,000 392,820 Passthrough Fees&Taxes 632 0 591,000 591,000 591,000 0 5,352,099 4,425,000 9,777,099 5,700,784 4,076,315 Total of ail Funds 91,011,933 100,986,269 191,998,202 111,363,401 80,634,801 The total balance of all funds appropriated for 2023 is$111,363,401. 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. 115 Ordinance 22-023 Adopting 2023 Budget Page 2 of 3 PASSED by the City Council this 8'h' day of November, 2022. Gsw— \ Pam Haley,Mayor AT S Christine Bainbridge, City Clerk Approved As To Form: Office of e City Attorney Date of Publication: /7- Effective Date: //--f , 116 Ordinance 22-023 Adopting 2023 Budget Page 3 of 3