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2016, 11-08 Special Regular Meeting, 5:00 pmAGENDA SPOKANE VALLEY CITY COUNCIL SPECIAL MEETING FORMAL FORMAT MEETING Tuesday, November 8, 2016 5:00 p.m. Spokane Valley City Hall Council Chambers 11707 E Sprague Avenue Council Requests Please Silence Your Cell Phones During Council Meeting CALL TO ORDER INVOCATION: Pastor Sid Johnson, Spokane Valley Baptist Church PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA COMMITTEE, BOARD, LIAISON SUMMARY REPORTS MAYOR'S REPORT 1. CONSENT AGENDA: Consists of items considered routine which are approved as a group. Any member of Council may ask that an item be removed from the Consent Agenda to be considered separately. Proposed Motion: I move to approve the Consent Agenda. a. Approval of claim vouchers on Nov 8, 2016 Request for Council Action Form Totaling: $1,786,407.49 b. Approval of Payroll for Pay Period Ending October 31, 2016: $411,504.41 c. Approval of October 18, 2016 Council Meeting Minutes, Study Session Format d. Approval of October 21, 2016 Council Meeting Minutes, Special Meeting e. Approval of October 25, 2016 Council Meeting Minutes, Special Meeting f. Approval of October 25, 2016 Council Meeting Minutes, Regular Formal Meeting Format g. Approval of November 1, 2016 Council Meeting Minutes, Special Meeting h. Approval of City Hall Lease Extension NEW BUSINESS: 2. Second Reading Proposed Ordinance 16-016 Budget Amendment 2016— Chelsie Taylor [public comment] 3. Second Reading Proposed Ordinance 16-017 Adopting 2017 Budget — Chelsie Taylor [public comment] 4. Motion Consideration:Spokane Regional Transportation Mgmt Center Interlocal—Eric Guth[public comment] 5. Motion Consideration: City Manager Employment Agreement — Cary Driskell, John Whitehead[public comment] (a) Job description (b) Employment Agreement PUBLIC COMMENTS: This is an opportunity for the public to speak on any subject except those on this agenda as action items. (Action items include public hearings, and those items under NEW BUSINESS. Public Comments will be taken on those items at the time those items are discussed.) When you come to the podium, please state your name and city residence for the record and limit remarks to three minutes. ADMINISTRATIVE REPORTS: 6. Advance Agenda — Mayor Higgins INFORMATION ONLY (will not be reported or discussed): (7) 2016 TIGER and FASTLANE Debrief and (8) 2017 Fastlane Grant Opportunity CITY MANAGER COMMENTS ADJOURNMENT Council Agenda 11-08-2016 - 5 pm special meeting, Formal Format Meeting Page 1 of 1 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 8, 2016 Department Director Approval: IA Check all that apply: ® consent ❑ old business ❑ new business ❑ public hearing AGENDA ITEM TITLE: Approval of the Following Vouchers: VOUCHER LIST 10/20/2016 10/20/2016 10/26/2016 10/26/2016 10/27/2016 11/01/2016 VOUCHER NUMBERS 39619-39661 39662-39694 6960-6969 39695-39698 39699-39715; 964446; 1003436 39716-39737 GRA TOTAL AMOUNT $481,577.02 $134,736.93 $2,493.00 $420.00 $1,079,87891 $87,301.63 ND TOTAL: $1,786,407.49 #001- General Fund 001.011.000.511. 001.013.000.513. 001.013.015.515. 001.016.000. 001.018.013.513. 001.018.014.514. 001.018.016.518. 001.032.000. 001.058.050.558. 001.058.051.558. 001.058.055.558. 001.058.056.558. 001.058,057.558 001.076.000.576. 001.076.300.576. 001.076.301.571. 001.076.302.576. 001.076.304.575. 001.076.305.571. 001.090.000.511. 001.090.000.514. 001.090.000.517. 001.090.000.518. 001.090.000.519. 001.090.000.540. 001.090.000.550. 001.090.000.560. 001.090.000.594. 001.090.000.595, Explanation of Fund Numbers found City Council City Manager Legal Public Safety Deputy City Manager Finance Human Resources Public Works CED - Administration CED —Economic Development CED -- Development Services -Engineering CED — Developrnent Services -Planning CED — Building Parks & Rec—Administration Parks & Rec-Maintenance Parks & Rec-Recreation Parks & Rec- Aquatics Parks & Rec- Senior Center Parks & Rec-CenterPlace General Gov't- Council related General Gov't -Finance related General Gov't -Employee supply General Gov't- Centralized Services General Gov't -Other Services General Gov't -Transportation General Gov't -Natural & Economic General Gov't -Social Services General Gov't -Capital Outlay General Gov't -Pavement Preservation on Voucher Lists Other Funds 101 — Street Fund 103 — Paths & Trails 105 — Hotel/Motel Tax 106 — Solid Waste 120 - CenterPlace Operating Reserve 121— Service Level Stabilization Reserve 122 — Winter Weather Reserve 123 — Civil Facilities Replacement 204 — Debt Service 301 — REET 1 Capital Projects 302 - REET 2 Capital Projects 303 -- Street Capital Projects 309 — Parks Capital Grants 310 — Civic Bldg Capital Projects 311 — Pavement Preservation 312 — Capital Reserve 402 -- Stormwater Management 403 — Aquifer Protection Area 501 — Equipment Rental & Replacement 502 — Risk Management RECOMMENDED ACTION OR MOTION: Move to approve attached list of claim vouchers. [Approved as part of the Consent Agenda, or may be removed and discussed separately.] STAFF CONTACT: Chelsie Taylor, Finance Director ATTACHMENTS: Voucher Lists vch l ist 10/20/2016 12:00:14PM Voucher List Spokane Valley Page: 1 Bank code : apbank Voucher Date Vendor Invoice 39619 10/20/2016 000958 AAA SWEEPING LLC 39620 10/20/2016 004695 ABRASIVES SPOKANE LLC 39621 10/20/2016 001122 CAMERON-REILLY LLC 39622 10/20/2016 002572 C[NTAS CORPORATION 39623 10/20/2016 002604 DELL FINANCIAL SERVICES LLC 39624 10/20/2016 002920 DIRECTV INC 39625 10/20/2016 000278 DRISKELL, CARY 39626 10/20/2016 003697 ELECTRIC LIGHTWAVE LLC 39627 10/20/2016 001232 FASTENAL CO 39628 10/20/2016 001447 FREE PRESS PUBLISHING INC 56829 56830 18691 PAY APP 2 606212687 606212860 606213985 606215302 606215479 606216583 78720867 29644567265 EXPENSES 14183235 I DLEW 114276 WASPK122985 Fund/Dept 402.402.000.531 402.402.000.531 101.042.000.542 303.000.234.595 101.000.000.542 101.042.000.543 101.000.000.542 101.000.000.542 101.042.000.543 101.000.000.542 001.090.000.548 101.042.000.543 001.013.015.515 001.090.000,586 101.042.000.542 101.042.000.542 Description/Account Amount STORM DRAIN CLEANING STREET SWEEPING SERVICES Total : SUPPLIES FOR MAINTENANCE SH Total : 16-102: 0234 CONSTRUCTION CON Total : SERVICES AT MAINT. SERVICES AT MAINT. SERVICES AT MAINT. SERVICES AT MAINT, SERVICES AT MAINT. SERVICES AT MAINT. SHOP: CONT SHOP: CONT SHOP: CONT SHOP: CONT SHOP: CONT SHOP: CONT Total : COMPUTER LEASE: 001-8922117-0 Total : CABLE SERVICE FOR MAINTENAN Total : EXPENSE REIMBURSEMENT Total : INTERNET SERVICE Total: TOOLS FOR MAINTENANCE SHOP TOOLS FOR MAINTENANCE SHOP Total : 46361 106.000.000.537 LEGAL PUBLICATION Total : 24,106.27 26,865.94 50,972.21 291.44 291.44 2,164.21 2,164.21 105.13 318.19 117.10 105.13 275.76 105.13 1,026.44 1,049.27 1,049.27 57.99 57.99 993.69 993.69 235.52 235.52 15.53 165.58 181.11 92.80 92.80 Page: 1 vchlist 10/20/2016 12:00:14PM Voucher List Spokane Valley Page: 2 Bank code : apbank Voucher Date Vendor Invoice 39629 10/20/2016 003188 GENERAL FIRE EXTINGUISHER SERV 39630 10/20/2016 000007 GRAINGER 39631 10/20/2016 001728 HP FINANCIAL SERVICES CO 39632 10/20/2016 002538 HYDRAULICS PLUS INC 39633 10/20/2016 000313 INLAND ASPHALT COMPANY INC. 39634 10/20/2016 002466 KENWORTH SALES COMPANY 39635 10/20/2016 001944 LANCER LTD 39636 10/20/2016 004632 LEVEL 3 COMMUNICATIONS 39637 10/20/2016 004187 LKQ KC TRUCK PARTS 39638 10/20/2016 004819 MASTER GARDENER FOUNDATION 39639 10/20/2016 003251 MDI MARKETING 39640 10/20/2016 002259 MENKE JACKSON BEYER LLP 39641 10/20/2016 002203 NAPA AUTO PARTS 0060917 9249573933 600506866 20892 PAY APP 3 S PO I N2025903 0461505 46855285 18-33214 VALLEYFEST 2016 10588 439 078215 764050 Fund/Dept 101.042.000.543 101.000.000.542 311.000.221.595 101.000.000.542 106.000.000.537 001.076.305.575 101.000.000.542 106.000.230.537 106.000.230.537 001.013.015.515 101.000.000.542 101.000.000.542 Description/Account Amount FIRE EXTINGUISHER SERVICE Total : Total : Total : 101.042.000.542 TOOLS: STREET 001.090.000.548 SCHEDULE 572DD016 SUPPLIES FOR MAINTENANCE SH Total : 0221-MSDONALD RD DIET CONSTf Total : SUPPLIES FOR SNOWPLOW #211 Total : BROCHURES - SECURE YOUR LO/ Total : Total : Total : Total : Total : Total : TELECOM SERVICES SUPPLIES FOR#208 COMPOST DEMO 9-24-16 ADVERTISING PROFESSIONAL SERVICES SUPPLIES FOR SNOWPLOWS SUPPLIES FOR SNOWPLOWS 253.33 253.33 179.00 179.00 745.84 745.84 404.96 404.96 336,117.91 336,1 17.91 253.59 253.59 611.44 611.44 1,159.53 1,159.53 36.09 36.09 383.63 383.63 4,450.00 4,450.00 148.05 148.05 184.61 127.08 Page: 2 vchlist 10/2012016 12:00 :14P M Voucher List Spokane Valley Page: 3 Bank node : apbank Voucher Date Vendor Invoice 39641 10/20/2016 002203 NAPA AUTO PARTS 39642 39643 39644 39645 39646 39647 39648 39649 10/20/2016 000662 10/20/2016 004850 NATL BARRICADE & SIGN CO (Continued) 764051 764153 764277 764420 765422 986103 Fund/Dept 101.000.000.542 101.000.000.542 101.000.000.542 101.000.000.542 101.000.000.542 101.042.000.542 Description/Account Amount SUPPLIES FOR SNOWPLOWS SUPPLIES FOR SNOWPLOWS SUPPLIES FOR SNOWPLOWS SUPPLIES FOR SNOWPLOWS SUPPLIES FOR SNOWPLOWS OIL ABSORBENT 93014 101.042.000.542 SUPPLIES: STREET NAVIA BENEFIT SOLUTIONS, HRA PLAN 10062956 10/20/2016 002941 NORTHSTAR CLEAN CONCEPTS 10/20/2016 000239 NORTHWEST BUSINESS STAMP INC. 10/20/2016 000307 OFFICE OF THE STATE TREASURER 10/20/2016 001604 PACIFIC NW PAPER 10/20/2016 001 860 PLATT ELECTRICAL SUPPLY 10/20/2016 002520 RWC GROUP 39650 10/20/2016 004535 SHRED -IT USA LLC 24771 97816 SEPTEMBER 2016 174572 K460922 37865N 37901N 8120970112 39651 10/20/2016 000090 SPOKANE CO INFO SYSTEMS 50314883 001.018.016.518 101.000.000.542 001.018.016.518 001.016.000.586 001.090.000.519 402.402.000.531 101.000.000.542 101.000.000.542 001.090.000.518 001.058.056.558 Total : Total : FLEX SPENDING ADMINISTRATION Total: Total: Total: Tota! : Total : Total : SUPPLIES: PW NAME BADGE STATE REMITTANCE COPY PAPER SUPPLIES: STORMWATER SUPPLIES: MAINTENANCE SHOP SUPPLIES: MAINTENANCE SHOP Total : DOCUMENT DESTRUCTION Total : COUNTY IT SUPPORT SEPTEMBEF 14.66 9.95 93.40 9.14 6.84 36.61 482.29 126.27 126.27 380.00 380.00 171.21 171.21 16.85 16.85 47,375.75 47, 375.75 1,459.84 1,459.84 16.04 16.04 145.84 93.04 238.88 312.60 312.60 8,471.13 Page: 3 vchlist 10/20/2016 12:00:14PM Voucher List Spokane Valley Page: 4 Bank code : apbank Voucher Date Vendor Invoice 39651 10/20/2016 000090 000090 SPOKANE CO INFO SYSTEMS {Continued} 39652 10/20/2016 000308 SPOKANE CO PROSECUTING ATTY 39653 10/20/2016 000001 SPOKANE CO TREASURER 39654 10/20/2016 002540 SPOKANE HOUSE OF HOSE INC. Fund/Dept SEPTEMBER 2016 001.016.000.586 51503513 556947 557966 558238 39655 10/20/2016 000093 SPOKESMAN -REVIEW, THE 461675 39656 10/20/2016 002135 SPRAY CENTER ELECTRONICS INC 239182 39657 10/20/2016 000257 STATE AUDITOR'S OFFICE L117061 39658 10/20/2016 000419 SUMMIT LAW GROUP PLLC 81278 39659 10/20/2016 004740 THOMSON REUTERS -WEST 834822230 39660 10/20/2016 000335 TIRE-RAMA 8080045700 8080045843 39661 10/20/2016 001885 ZAYO GROUP LLC 43 Vouchers for bank code : apbank 43 Vouchers in this report OCTOBER 2016 402.402.000.531 101.000.000.542 101.000.000.542 101.000.000.542 106.000.230.537 101.000.000.542 001.090.000.514 001.018.016.518 001.013.015.515 001.032.000.543 001.076.000.576 001.090.000.518 Description/Account Amount Total : CRIME VICTIMS COMPENSATION F Total : SEPTEMBER 2016 WORK CREW IN Total : SUPPLIES: STREET SUPPLIES: STREET SUPPLIES: STREET Total : ADVERTISING ACCT 8001932 Total : SUPPLIES: MAINTENANCE SHOP Total : Total : Total : Total : SAO AUDIT OF 2015 PROFESSIONAL SERVICES SUBSCRIPTION SERVICES OIL CHANGE 2014 FORD ESCAPE OIL CHANGE 2004 TAURUS 06770E Total : INTERNET SERVICE Total : Bank total : Total vouchers : 8,471.13 689.43 689.43 4,031.40 4,031.40 48.79 59.00 4.08 111.87 412.50 412.50 81.59 81.59 13,433.42 13,433.42 541.50 541.50 781.32 781.32 36.36 37.99 74.35 560.73 560.73 481,577.02 481,577.02 Page: 4 vchlist '10/20/2016 2:39:46PM Voucher List Spokane Valley Page: ^I— Bank code : apbank Voucher Date Vendor Invoice 39662 10/20/2016 000150 ALLIED FIRE & SECURITY 39663 10/20/2016 001081 ALSCO 39664 10/20/2016 004046 AMERICAN ONSITE SERVICES 39665 10/20/2016 000334 ARGUS JANITORIAL LLC 39666 10/20/2016 000234 ARLT, SHANE 39667 10/20/2016 000030 AVISTA 39668 10/20/2016 002326 BATTERIES PLUS BULBS 39669 10/20/2016 000918 BLUE RIBBON LINEN SUPPLY INC 39670 10/20/2016 000840 CLARY, AARON RCB1217794 LSP01816922 LSP01822561 A-195143 A-195990 INV014017 Expenses Sept 2016 Sept 2016 248-320014 248-321393 9789450 9791473 S0146888 S0147447 S9787425 Expenses 39671 10/20/2016 003317 COEUR D' ALENE PRESS, SHOSHONE I\ 5318562 Fund/Dept 001.076.305.575 001.016.000.521 001.016.000.521 001.076.300.576 001.076.300.576 001.016.000.521 JANITORIAL SVC: SEPT 2016 Description/Account Amount SECURITY MONITORING AT CENTE Total : FLOOR MAT SERVICE AT PRECINC FLOOR MAT SERVICE AT PRECINC Total : PORTABLE RESTROOMS AT PARK: PORTABLE RESTROOMS AT PARK: Total: 101.042.000.542 101.042.000.542 001.076.300.576 001.016.000.521 001.076.305.575 001.076.305.575 001.076.305.575 001.076.305.575 001.076.305.575 001.076.305.575 402.402.000.531 001.076.305.575 115.50 115.50 20.39 21.00 41.39 144.00 390.00 534.00 2,501.87 Total : 2,501.87 EXPENSE REIMBURSEMENT Total : UTILITIES: PW MASTER AVISTA UTILITIES: PARKS MASTER AVISTA Total : SUPPLIES: PRECINCT SUPPLIES: CENTERPLACE Total : LINEN SERVICE AND SUPPLYATC LINEN SERVICE AND SUPPLY AT C LINEN SERVICE AND SUPPLY AT C LINEN SERVICE AND SUPPLY AT C LINEN SERVICE AND SUPPLY AT C Total : EXPENSE REIMBURSEMENT Total: 47.05 47.05 26, 549.78 14,404.86 40,954.64 14.64 102.99 117.63 299.11 299.11 137.72 195.23 194.98 1,126.15 30.19 30.19 NORTH IDAHO BUSINESS JOURNP 271.00 Page: vchlist 10/20/2016 2:39:46PM Voucher List Spokane Valley Page: Bank code : apbank Voucher Date Vendor Invoice 39671 10/20/2016 003317 003317 COEUR D' ALENE PRESS, SHOSHO (Continued) 39672 10/20/2016 005355 COMMERCIAL PUBLISHING INC 73890 39673 10/20/2016 000795 EARTHWORKS RECYCLING [NC. 39674 10/20/2016 002308 FINKE, MELISSA 39675 10/20/2016 000007 GRAINGER 352948 Oct 2016 Oct 2016 9236904059 39676 10/20/2016 005046 GRAPHIC ART PRODUCTIONS INC 540-8994 540-9004 39677 10/20/2016 003177 GUTH, ERIC 39678 10/20/2016 000441 HOME DEPOT CREDIT SERVICES 39679 10/20/2016 002607 HUB SPORTS CENTER 39680 10/20/2016 003718 INLAND PUBLICATIONS INC 39681 10/20/2016 000388 IRVIN WATER DIST. #6 39682 10/20/2016 001635 ISS FACILITY EVENT SERVICES Expenses Sept2016 October 2016 48329 Sept 2016 1089474 1094562 1094563 1097436 Fund/Dept 001.076.305.575 001.076.305.575 001.076.301.571 001.076.301.571 001.076.305.575 001.076.301.571 001.076.305.575 001.032.000.543 001.090.000.518 105.000.000.557 001.076.305.575 001.076.300.576 001.076.305.575 001.076.305.575 001.076.305.575 001.076.305.575 Description/Account Amount Total : ADVERTISING IN WEDDING RESOI Total : RECYCLING COLLECTION AT CP 9, Total : INSTRUCTOR PMT INSTRUCTOR PMT Total : SUPPLIES FOR CENTERPLACE Total : SIGNS FOR REC PROGRAMS SIGNS FOR CENTERPLACE Total : EXPENSE REIMBURSEMENT Total : SUPPLIES FOR GEN GOVAND CB Total : 2016 LODGING TAX GRANT REIMS Total : ADVERTISING FOR WEDDING PAG Total : UTILITIES: PARKS AND PW Total : EVENT SVCS AT CENTERPLACE EVENT SVCS FOR CENTERPLACE EVENT SERVICES FOR CENTERPL MONTHLY CLEANING AT CENTERP 271.00 1,100.00 1,100.00 25.00 25.00 1,170.75 190.75 1,361.50 113.58 113.58 192.40 64.14 256.54 30.32 3032 200.67 200.67 21,703.21 21,703.21 595.00 595.00 1,877.45 1,877.45 52.68 79.02 52.67 7,136.00 Page: —2� vchlist 10/20/2016 2:39:46PM Voucher List Spokane Valley Page: 2 Bank code : apbank Voucher Date Vendor Invoice 39682 10/20/2016 001635 001635 ISS FACILITY EVENT SERVICES (Continued) 39683 10/20/2016 004628 NORTHWEST ROOF CONSULTANTS INC 3506 39684 10/20/2016 001860 PLATT ELECTRICAL SUPPLY 39685 10/20/2016 000709 SENSKE LAWN &TREE CARE INC. 39686 10/20/2016 004943 SMARTLITE 39687 10/20/2016 000323 SPOKANE CO UTILITIES 39688 10/20/2016 000898 SPOKANE PROCARE INC K447636 K454086 6855812 6915640 7498754 160373 Oct 2016 540966 39689 10/20/2016 000451 SPOKANE REG SPORTS COMMISSION 3rd QTR 2016 39690 10/20/2016 000093 SPOKESMAN -REVIEW, THE 39691 10/20/2016 003649 TROPHIES UNLIMITED RENEWAL 484402 39692 10/20/2016 000038 WASTE MANAGEMENT OF SPOKANE 0365865-2681-0 0365866-2681-8 0365867-2681-6 39693 10/20/2016 000066 WCP SOLUTIONS 9794496 Fund/Dept 001.076.099.575 001.076.305.575 001.076.305.575 402.402.000.531 402.402.000.531 402.402.000.531 001.076.305.575 001.076.302.576 402.402.000.531 105.000.000.557 001.076.000.576 001.076.305.575 402.402.000,531 001.076.305.575 001.016.000.521 001.076.305.575 Description/Account Amount Total : 16163-R CENTERPLACE ROOF CO Total : SUPPLIES FOR CENTERPLACE SUPPLIES FOR CENTERPLACE Total : 2016 ROADWAY LANDSCAPING SE 895 CONTRACT MAINTENANCE FLAGGING SERVICES Total : ADVERTISING FOR CENTERPLACE Total : SPOKANE CO SEWER CHRGS: OC Total: 2016 ROADSIDE WEED SPRAYING Total: 2016 LODGING TAX GRANT REIMB Total : SUBSCRIPTION FOR ACCT 291646 Total : NAME TAGS FOR CP EMPLOYEES Total : WASTE MGMT: MAINT SHOP SEPT WASTE MGMT: CENTERPLACE WASTE MGMT: PRECINCT Total : 7,320.37 2,996.40 2,996.40 13.33 66.63 79.96 6,430.89 530.46 169.57 7,130.92 550.00 550.00 1,637.69 1,637.69 2,771.43 2,771.43 30,400.00 30,400.00 239.20 239.20 47.28 47.28 173.27 740.45 283.09 1,196.81 JANITORIAL SUPPLIES 1,020.18 Page: �-3� vchlist 10/20/2016 2:39:46PM Voucher List Spokane Valley Page: Bank code : apbank Voucher Date Vendor Invoice Fund/Dept Description/Account Amount 39693 10/20/2016 000066 000066 WCP SOLUTIONS (Continued) Total : 1,020.18 39694 10/20/2016 003876 ZBAARCHITECTURE PS 2114 001.016.099.521 PROJECT 1619 - PROFESSIONAL; 6,344.00 Total : 6,344.00 33 Vouchers for bank code : apbank Bank total : 134,736,93 33 Vouchers in this report Total vouchers : 134,736.93 I, the undersigned, do certify under penalty of perjury, that the materials have been furnished, the services rendered, or the labor performed as described herein and that the claim is just, due and an unpaid obligation against the City of Spokane Valley, and that I am authorized to authenticate and certify said claim. Finance Director Date Council member reviewed: Mayor Date Council Member Date Page: vchlist 10/26/2016 7:56:53AM Voucher List Spokane Valley 9i Page: Bank code : pk-ref Voucher Date Vendor Invoice Fund/Dept Description/Account Amount 6960 10/26/2016 002426 AARP ORGANIZATION PARKS REFUND 001.237.10.99 DEPOSIT REFUND: GREAT ROOM 210.00 Total : 210.00 6961 10/26/2016 005375 CHEBOTAREVA, DINA PARKS REFUND 001.237.10.99 DEPOSIT REFUND: GREAT ROOM 500.00 Total : 500.00 6962 10/26/2016 005376 GRAHAM, LEILA PARKS REFUND 001.237.10.99 DEPOSIT REFUND: FIRESIDE LOUI 500.00 Total : 500.00 6963 10/26/2016 005377 GRIFFING, KIRSTEN PARKS REFUND 001.237.10.99 DEPOSIT REFUND: GREAT ROOM 500.00 Total: 500.00 6964 10/26/2016 005374 MICRIST ENVIRONMENTAL PARKS REFUND 001.237.10.99 DEPOSIT REFUND: ROOM 108 52.00 Total: 52.00 6965 10/26/2016 004798 OLSON, CHERYL PARKS REFUND 001237.10.99 DEPOSIT REFUND: ROOM 110 52.00 Total: 52.00 6966 10/26/2016 005378 PIKULIK, ALAN PARKS REFUND 001.237.10.99 DEPOSIT REFUND: GREAT ROOM 500.00 Total : 500.00 6967 10/26/2016 005379 ROBINS, ERIN PARKS REFUND 001.237.10.99 DEPOSIT REFUND: DISCOVERY PL 75.00 Total : 75.00 6968 10/26/2016 005380 WA FESTIVALS & EVENTS ASSOC PARKS REFUND 001.237.10.99 DEPOSIT REFUND: ROOM 213 52.00 Total : 52.00 6969 10/26/2016 003547 WICKSTROM, BRIAN PARKS REFUND 001.237.10.99 DEPOSIT REFUND: ROOM 109 52.00 Total : 52.00 10 Vouchers for bank code : pk-ref Bank total : 2,493.00 10 Vouchers in this report Total vouchers : 2,493.00 vchlist 10/26/2016 9:13:07AM Voucher List Spokane Valley Page: t' Bank code : apbank Voucher Date Vendor Invoice 39695 10/26/2016 005384 GVD COMMERCIAL 39696 10/26/2016 005383 PEHA, TYLER 39697 10/26/2016 005381 PLANET TURF 39698 10/26/2016 005382 THE RESERVE AT SHELLEY LAKE 4 Vouchers for bank code : apbank 4 Vouchers in this report CRY WOLF REFUND CRY WOLF REFUND CRY WOLF REFUND CRY WOLF REFUND Fund/Dept 001.016.000.342 001.016.000.342 001.016.000.342 001.016.000.342 Description/Account Amount FALSE ALARM REFUND PERMIT Vi Total : FALSE ALARM REFUND PERMIT VE Total : FALSE ALARM REFUND PERMIT Vi Total : FALSE ALARM REFUND PERMIT Vi Total : Bank total : 25.00 25.00 20.00 20.00 250.00 250.00 125.00 125.00 420.00 Total vouchers : 420.00 Page: vchlist 10/27/2016 12:23:43PM Voucher List Spokane Valley >/ Page: Bank code : apbank Voucher Date Vendor Invoice 39699 10/27/2016 000394 AM LANDSHAPER INC 39700 10/27/2016 004278 ARCHITECTS WEST INC 39701 10/27/2016 001122 CAMERON-REILLY LLC 39702 10/27/2016 004437 COMMUNITY ATTRIBUTES INC 39703 10/27/2016 004950 EIGHT31 CONSULTING 39704 10/27/2016 000746 EMPLOYMENT SECURITY DEPT 39705 10/27/2016 001447 FREE PRESS PUBLISHING INC 39706 10/27/2016 002568 GRANICUS INC 39707 10/27/2016 002810 INLAND NW PARTNERS ASSOC 39708 10/27/2016 000864 JUB ENGINEERS INC. 39709 10/27/2016 003959 MAX J KUNEY CO PAY APP 1 8747 PAY APP 2 1853 1022 000-217156-00-2 46359 46382 46383 46385 46386 46387 81269 2016 WINTER 0103997 PAY APP 24 Fund/Dept 402.000.000.595 313.000.215.594 303.000.207.595 105.000.000.557 313.000.215.594 502.502.000.517 001.076.000.576 001.013.000.513 001.058.056.558 001.013.000.513 001.013.000.513 001.058.056.558 001.011.000.511 001.058.051.558 101.042.000.542 303.303.155.595 Description/Account Amount PROJECT 16-109 BATES/REGO ST( Total : 0215 -CITY HALL DESIGN & CN ADN Total : 0207 -CONSTRUCTION CONTRACT Total : SPOKANE VALLEY TOURISM ANAL' Total : PROFESSIONAL SERVICES 3RD QUARTER 2016 UI TAX LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION LEGAL PUBLICATION 78,241.94 78,241.94 13,134.90 13,134.90 3,261.50 3,261.50 11,385.00 11,385.00 4,500.00 Total : 4,500.00 Total : Total: MAINTENANCE FOR NOVEMBER 2 Total : WINTER 2016 CONFERENCE Total : 2016 TIP MAINTENANCE & UPDATE Total : 1,910.07 1,910.07 143.35 46.40 43.20 25.50 25.00 99.45 382.90 777.16 777.16 80.00 80.00 17,811.74 17,811.74 0155 - SULLIVAN RD WEST BRIDGE 41'1,512.18 Page: tech list 10/27/2016 12:23:43 PM Voucher List Spokane Valley Page: 2� Bank code : apbank Voucher Date Vendor Invoice 39709 10/27/2016 003959 003959 MAX J KUNEY CO 39710 10/27/2016 001089 POE ASPHALT PAVING INC. 39711 10/27/2016 004535 SHRED -IT USA LLC 39712 10/27/2016 000459 SPOKANE CO TITLE CO 39713 10/27/2016 000001 SPOKANE CO TREASURER 39714 10/27/2016 000100 WABO INC. 39715 10/27/2016 001885 ZAYO GROUP LLC 67340 10/28/2016 000409 DEPT OF REVENUE 964446 10/18/2016 000409 DEPT OF REVENUE 1003436 10/27/2016 002244 AOT PUBLIC SAFETY CORPORATION 20 Vouchers for bank code : apbank 20 Vouchers in this report (Continued) 45167 45168 45169 9408920701 5-S P7694 51503500 32974 32975 OCTOBER 2016 003 71-0914170 S PKVLY-82 Fund/Dept 101.042.000.542 101.042.000.542 101.042.000.542 001.090.000.518 001.013.000.513 001.016.000.523 001.058.057.558 001.058.057.558 Description/Account Amount Total : 2016 STREET & STORMWATER MA 2016 STREET & STORMWATER MA 2016 STREET & STORMWATER MA Total : DOCUMENT DESTRUCTION OWNER'S POLICY OCTOBER 2016 HOUSING Total : Total : Total : WABO SEMINAR: LUIS GARCIA WABO SEMINAR: TAMARA FAURO1 Total : 001.090.000.518 DARK FIBER 001.076.301.586 001.239.90.01 001.016.000.521 LEASEHOLD EXCISE TAX Total : Total: UNCLAIMED PROPERTY PAYMENT Total: SEPTEMBER 2016 REVENUE SPLIT Total : 444,512.18 156.04 5,171.55 372,443.42 377,771.01 156.30 156.30 860.90 860.90 110,241.18 110,241.18 300.00 300.00 600.00 253.01 253.01 3,518.79 3,518.79 6,856.17 6,856.17 3,624.16 3,624.16 Bank total : 1,079,878.91 Total vouchers : 1,079,878.91 vchlist ,1110112016 9:19:07AM Voucher List Spokane Valley Page: 1� Bank code : apbank Voucher Date Vendor Invoice 39716 11/1/2016 003076 AMSDEN, ERICA 39717 11/1/2016 000918 BLUE RIBBON LINEN SUPPLY INC 39718 11/1/2016 002226 CENTRAL PREMIX 39719 11/1/2016 001169 CITY OF SPOKANE VALLEY 39720 11/1/2016 000326 CONSOLIDATED IRRIGATION #19 39721 11/1/2016 000246 EAST SPOKANE WATER DIST #1 39722 11/1/2016 001993 FISCH, PETE 39723 11/1/2016 000011 GREATER SPOKANE VALLEY 39724 11/1/2016 000070 INLAND POWER & LIGHT CO 39725 11/1/2016 001635 ISS FACILITY EVENT SERVICES 39726 11/1/2016 001987 JENKINS, ART Expenses Expenses 9793484 S0148137 S0259416 2335816 Oct 2016 Oct 2016 Oct 2016 October 2016 Expenses 3rd QTR 2016 2301 1105057 1105789 Expenses Fund/Dept 001.032.000.543 001.032.000.543 001.076.305.575 001.076.305.575 001.076.305.575 001.016.000.521 001.058.056.558 402.402.000.531 001.076.300.576 402.402.000.531 001.032.000.543 001.090.000.550 101.042.000.542 001.076.305.575 001.076.305.575 402.000.193.531 Description/Account Amount EXPENSE REIMBURSEMENT EXPENSE REIMBURSEMENT Total : LINEN SERVICE AND SUPPLY AT C LINEN SERVICE AND SUPPLY AT C LINEN SERVICE AND SUPPLY AT C Total : CONCRETE BLOCKS FOR PRECIN, Total : PETTY CASH: 14796,97,98,99,800,8 Total : UTILITIES: PW UTILITIES: PARKS AND CENTERPL Total : WATER CHARGES: OCT 2016 Total: EXPENSE REIMBURSEMENT Total: 2016 ECO DEV GRANT REIMBURSI Total: UTILITIES: OCT 2016 Total' : EVENT SERVICES FOR CENTERPL EVENT SERVICES FOR CENTERPL Total : 21.60 15.12 36.72 240.04 52.72 75.63 368.39 282.62 282.62 23.91 23.91 342.23 713.92 1,056.15 3,669.59 3,669.59 488.24 488.24 6,676.00 6,676.00 440.37 440.37 73.75 173.83 247.58 EXPENSE REIMBURSEMENT 125.20 Page: vchlist 11/01/2016 9:19:07AM Voucher List Spokane Valley ,L/ Page: Bank code : apbank Voucher Date Vendor Invoice 39726 11/1/2016 001987 001987 JENKINS, ART 39727 11/1/2016 000252 LOWE'S BUSINESS ACCOUNT 39728 11/1/2016 004269 MILLER, WILLIAM (Continued) Oct 2016 Expenses 39729 11/1/2016 000193 NORTHWEST CHRISTIAN SCHOOL INC November 2016 39730 11/1/2016 000324 SPOKANE CO WATER DIST #3 39731 11/1/2016 000898 SPOKANE PROCARE INC Oct 2016 545480 39732 11/1/2016 003532 STERICYCLE COMMUNICATION SOLUT 8010450933 39733 11/1/2016 001791 STONE, MIKE 39734 11/1/2016 001969 SUNSHINE DISPOSAL 39735 11/1/2016 000295 VALLEYFEST 39736 11/1/2016 003175 VISIT SPOKANE Expenses 1081976 Oct 2016 Oct 2016 Oct 2016 Oct 2016 Oct 2016 Oct 2016 Oct 2016 Oct 2016 Fund/Dept 001.076.304.575 001.018.014.514 001.090.000.518 402.402.000.531 402.402.000.531 001.076.305.575 001.076.000.576 101.042.000.542 105.000.000.557 105.000.000.557 105.000.000.557 105.000.000.557 105.000.000.557 105.000.000.557 105.000.000.557 105.000.000.557 Sept 2016 105.000.000.557 Description/Account Amount Total : OPERATING SUPPLIES: SENIOR CI Total: EXPENSE REIMBURSEMENT Total : CITY HALL RENT: NOV 2016 Total: WATER CHARGES FOR OCT 2016 Total: 2016 ROADSIDE WEED SPRAYING Total: ANSWERING SERVICE FOR CENT! Total : EXPENSE REIMBURSEMENT Total : TRANSFER STATION 2016 LODGING TAX 2016 LODGING TAX 2016 LODGING TAX 2016 LODGING TAX 2016 LODGING TAX 2016 LODGING TAX 2016 LODGING TAX 2016 LODGING TAX Total : GRANT REIMB GRANT REIMS GRANT REIMS GRANT REIMB GRANT REIMS GRANT REIMB GRANT REIMB GRANT REIMB Total : 125.20 79.56 79.56 114.14 114.14 36,221.75 36,221.75 1,657.01 1,657.01 2,771.43 2,771.43 54.44 54.44 797.20 797.20 614.82 614.82 515.42 2,314.00 2,397.00 800.00 683.30 1,113.47 8,433.59 562.50 16,819.28 2016 LODGING TAX GRANT REIMB 13,637.50 Page: vchlist 11/01/2016 9:19:07AM /5- Voucher SVoucher List Page: Spokane Valley Bank code : apbank Voucher Date Vendor Invoice FundlDept Description/Account Amount 39736 11/1/2016 003175 003175 VISIT SPOKANE (Continued) Total : 13,637.50 39737 11/1/2016 000038 WASTE MANAGEMENT OF SPOKANE 0064'1114 1518-3 402.402.000.531 WASTE MGMT: PW SEPT 2016 1,119.73 Total : 1,119.73 22 Vouchers for bank code : apbank Bank total : 87,301.63 22 Vouchers in this report Total vouchers : 87,301.63 1, the undersigned, do certify under penalty of perjury, that the materials have been furnished, the services rendered, or the labor performed as described herein and that the claim is just, due and an unpaid obligation against the City of Spokane Valley, and that am authorized to authenticate and certify said claim. Finance Director Date Council member reviewed: Mayor Date Council Member Date Page: �3"r� CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 8, 2016 Department Director Approval : Item: Check all that apply: ® consent ❑ old business ['new business ['public hearing ['information ❑admin. report ❑ pending legislation AGENDA ITEM TITLE: Payroll for Pay Period Ending October 31, 2016 GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: Budget/Financial impacts: Employees Council Total Gross: $ 278,333.77 $ 5,475.00 $ 283,808.77 Benefits: $ 114,863.89 $ 12,831.75 $ 127,695.64 Total payroll $ 393,197.66 $ 18,306.75 $ 411,504.41 RECOMMENDED ACTION OR MOTION: Move to Approve above payroll. [Approved as part of the Consent Agenda, or may be removed and discussed separately.] STAFF CONTACT: Raba Nimri DRAFT Attendance: Councilmembers MINUTES SPOKANE VALLEY COUNCIL MEETING STUDY SESSION Spokane Valley City Hall Council Chambers Spokane Valley, Washington October 18, 2016 Staff Rod Higgins, Mayor Arne Woodard, Deputy Mayor Caleb Collier, Councilmember Pam Haley, Councilmember Mike Munch, Councilmember Ed Pace, Councilmember Sam Wood, Councilmember Mark Calhoun, Acting City Manager Cary Driskell, City Attorney Chelsie Taylor, Finance Director Erik Lamb, Deputy City Attorney Eric Guth, Public Works Director John Hohman, Comm & Eco. Dev. Director Morgan Koudelka, Sr. Admin. Analyst Sean Messner, Senior Traffic Engineer Chaz Bates, Economic Development Specialist Mark Werner, Police Chief Christine Bainbridge, City Clerk Mayor Higgins called the meeting to order at 6:00 p.m. ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present. ACTION ITEM: 1. PUBLIC HEARING: Trans -Pacific Partnership Trade Agreement After Mayor Higgins explained the procedure for giving public comment, Mr. Calhoun gave a brief explanation of the Trans -Pacific Partnership Trade Agreement, as noted on the Request for Council Action. Mayor Higgins invited public comments. Matt Shea: member of the Washington House of Representatives representing the 4th Legislative District; said he is strongly opposed to TPP and he urged Council to take up a resolution opposing this; said it is not affordable, or patriotic. Rob Chase, Liberty Lake: said he is also the Spokane County Treasurer; said the merits of opposing this are well established, and that he only knows of GSI (Greater Spokane, Inc.) who is in favor; and said he would like Council to make their view known to Cathy McMorris Rodgers. Kevin Person, Spokane Valley: said he is the CEO of Wagstaff, a manufacturer in Spokane Valley; said they employee 340 peopl in very good, well -paying jobs; said trade is very important for them; they are a world leader in aluminum casting technology; that it is a pleasure to be a leading company here and he looks forward to remaining competitive; said 40% of his jobs are tied to trade in Washington and we need to support and encourage international trade and help companies in world markets; that it will mean more jobs in the United States and at Wagstaff and he encouraged Council to pass a resolution of what they want, rather than what they don't want; and said they don't want to send an anti -business and anti -trade message. Jim McDonald, Spokane Valley: said he is the CEO of SCAFCO Grain Systems, located on East Broadway in Spokane Valley; said he has been in business in this area for 55 years and is very much dependent upon export trade; said they export to 84 countries and about 2/3' of his business is export related; said no trade Council Study Session: 10-18-2016 Page 1 of 5 Approved by Council: DRAFT pact is perfect but having a fair playing field is very important and there are some aspects to this agreement which are very beneficial to his company. Todd Mielke, Spokane: via the City Clerk, distributed a copy of his letter to Council, as well as a letter from the Washington Council on International Trade in support of the TPP; said this is more about people and jobs and selling world-wide; that Spokane Valley has prided itself on being very pro-business, and that he anticipated the agreement will be re -negotiated; said he strongly supports an alternate resolution to have the U.S. Congress negotiate a trade compact that is beneficial to companies in the U.S. that allows them to compete. Michael Poulin, Spokane: said he is the president of YAK Research in Spokane; said about 50% of their products are exported, but that TPP isn't much about trade as it will restrict or prohibit the ability to know what is in our food and where that food comes now; said the TPP even allows self -certification of food; and it prohibits preferential treatment of contractors so they may not hire local veterans when foreign labor is available for less; and said there are other trade restraints. Jennifer Calvert, Spokane Valley: she asked Spokane Valley to go on record as opposing the TPP; said it will have negative consequences for citizens; many people are concerned about jobs and making enough money to care for families; that it is being promoted as NAFTA was but that hasn't worked well; said it was created by corporations looking to benefit by many of the provisions, many of which have nothing to do with trade; said only six of the thirty chapters deal with trade; said it is a bad deal for Americans. Kyle England, Colbert, Wa: said he is with Kaiser Aluminum and supports GSI's effort for an alternative resolution asking Congress for a trade agreement, but not necessarily with the TPP; again said he supports GSI's approach and that he wishes to avoid unintended consequences. Ben Small, Spokane Valley: he urged further discussion on the issue; said he chairs the Greater Chamber of Commerce, and is the Central Valley School District Superintendent; said he desires to get more information before making a final decision or having a final resolution; feels we should pull together with regional partners to better understand this, and he urged Council to deliberate carefully on the topic and think of the impacts moving forward; said there are those who don't understand what would happen to their business and many who want more information. Patricia Mann, Otis Orchards: did not want to speak, but noted on the sign -in sheet that she is against the TPP. Chris Nerison, Spokane Valley said he has been a businessman for 36 years; he sold his business about a year ago and retired; that he had imported and exported products and found it surprisingly easy to do; said whether the TPP passes or not, Washington will still be the number one exporter and he expects this would not be a "make or break" deal; said he hasn't found studies proving that past trade agreements have helped the U.S. economy, but there is evidence they have raised the trade deficit. John Christine, Spokane: said the TPP is like NAFTA on steroids; there are 5,500 pages in the document and twenty deal with trade; he encouraged Council to pass a resolution; said this is not all about trade and he expressed concern about the national sovereignty which he said will be eroded. Bart Haggin, Spokane: said this is not a trade agreement; said much of what has been said tonight can be found on the Internet; that we should be concerned with what would happen between the election and a new congress and that this Council should be concerned as this will be brought up in a lame -duck congress; said this has been going on for years and can't be re -negotiated and he urged Council to oppose taking this issue during the lame duck congress. Council Study Session: 10-18-2016 Page 2 of 5 Approved by Council: DRAFT Stacy Cassey, Valleyford: said she is a Spokane Volunteer for initiative 735 and they are working to get big money out of the election; said she is opposed to the TPP as it is about corporate power and control and "corporate personhood;" and said it is important to take a stance against the TPP. Attorney Driskell reminded everyone that we cannot have public facilities used to promote any aspect of a public election. John Harding, Spokane Valley: said he feels a trade agreement should be done in the House and Senate; said if this goes into effect Cathy McMorris Rodgers won't have any input afterwards; said this is more like a treaty and we need to get back in focus with the Constitution that used to be the law and not an agreement done in secret for two years where our representatives weren't allowed to view it. There were no further public comments and Mayor Higgins closed the public hearing at 6:40 p.m. NON -ACTION ITEMS: 2. Community Development Block Grant (CDBG) 2017 Potential Projects — Chaz Bates Mr. Bates went through his PowerPoint presentation explaining about the three proposed projects and the CDBG process, and said he seeks Council consensus on which projects to bring forward for next week's public hearing. After brief discussion about matching funds, priority of projects and mention from Mr. Bates of the two phone calls in support of 8th Avenue, there was Council consensus to proceed next week with the three projects as noted. 3. Stn Avenue and McDonald — Eric Guth, Sean Messner Mr. Messner explained that this issue spurred from hearing from citizens about vehicular crashrs at 8th Avenue and McDonald; and via his PowerPoint, explained the current purpose and configuration of 8th Avenue as well as McDonald, mentioned the traffic volumes, historic crashes, travel speeds, and crash summary; mentioned some of the short-term changes already made to make the intersection safer, and described some of the potential improvements as well as cost. Mr. Messner said staff recommends replacing the existing 36" stop sign with a 48" stop sign, allow time to see if there is a difference with the current changes and improvements, and if people continue to failure to yield the right-of-way or disregard the stop sign, and suggested a flashing stop sign. There was some discussion about previous discussions concerning some members of the public wanting a four-way stop and of the cost. Councilmember Pace asked what the harm would be in putting in a four- way stop sign and see how the residents feel about it; and City Attorney Driskell said there is potential harm as it would be appropriate to gather the accident data then tailor the responses to those causes; said the data doesn't tell exactly what but will give some good indications; he cautioned against just saying we can put in a four-way stop sign as there would be negative consequences and other traffic accidents due to people's expectations of where stop signs will be or not be; said it is worth looking at the crash data and identify potential options about whether to have a signalized or four-way stop, but for the protection of the public, said we have to use the scientific data or we could have other potential accidents occur there. Councilmember Haley said that most accidents are not called into the Police Department and Mr. Driskell responded that we can only operate off the data and cannot rely on second or third -hand interpretation of what might have happened. There was some discussion about changing the speed limit, and some discussion about the use of rumble strips, and Mr. Messner cautioned that while the strips are very effective on rural highways, they are very noisy and in neighborhoods, extremely noisy, and he cautioned against using them in residential neighborhoods. It was ultimately decided to go with the larger stop sign, and include some stencil striping on the road like "stop ahead" even though it was mentioned that once the winter weather sets in, that painting will be difficult to see. Mr. Messner said he would also like to get the police reports, continue to monitor the area, use the stenciling when the weather is better, and conduct a speed limit study. Council agreed. Council Study Session: 10-18-2016 Page 3 of 5 Approved by Council: DRAFT Mayor Higgins called for a recess at 7:44 p.m.; he reconvened the meeting at 7:55 p.m. 4. Water District #3 Lease, Browns Park — Cary Driskell Councilmember Wood recused himself on this topic due to personal bias, and left the Council Chambers at 7:55 p.m. City Attorney Driskell explained the background of Browns Park and the previous 35 -year lease to Water District #3; he explained that city Staff and Water District 3 representatives discussed the grant of either a permanent easement, which is the District's preference, or a renewal lease, which is the City's preference; he went over the features in the proposed lease as noted on his October 18, 2016 Request for Council Action, and said that after speaking with the District, there is no willingness from them to enter into a lease, so they advised the City they would terminate the water use in the City park. Deputy Mayor Woodard asked about tendering a lease to them for their consideration, and said that it seems ill-advised they would take on an expense of $500,000 to move their well when they could have deferred those expenses; said he is very supportive of our water district, but he would like to see a lease approved by this Council and sent to them. After further discussion, including mention that the City would pay for any increase in park water use, Council agreed that staff should bring back for consideration next week, a lease to forward to the district. Mayor Higgins added that the letter from the Water District mentioned that we have not communicated with them, and said that is not true. There was no further discussion and Councilmember Wood returned to the dais. 5. False Alarms — Morgan Koudelka Senior Administrative Analyst Koudelka gave a brief history on the City's current false alarm reduction program, and spoke about Lt. Lyon's idea of having an internal program. Through his PowerPoint, Mr. Koudelka explained the intent of the current regulations, the Cry Wolf Program and its effectiveness over the years; the false alarm effectiveness, rate and cost over time; concerns with the current program, and explained some of the aspects of the proposed program, such as it would be run internally by the Sheriff s Office and the County, no registration information or fees, the alarm company would provide customer information when requesting police response, and unpaid bills would not be sent to collections. Mr. Koudelka said this program would be a cost recovery program, not a revenue program, and that the customer service aspect would be more in line with our overall City customer service expectations. After further brief discussion, Councilmembers indicated they like the proposal, it is simple, not so invasive, and appreciate the idea of it being cost recovery. Mr. Koudelka said staff will coordinate with Spokane County to develop and implement the program, and he will work to modify the City's false alarm Code regulations, do some further research, and bring back a program and ordinance revision for Council's future approval consideration. Mr. Koudelka mentioned he will also seek approval from the Board of County Commissioners. 6. Governance Manual — Chris Bainbridge City Clerk Bainbridge explained the proposed changes as noted in the Request for Council Action, which she explained have been discussed several times by the Governance Manual Committee members. Council expressed appreciation of the work and proposed changes, and agreed this item should be brought to Council for approval consideration at the November 1 Council meeting. 7. Advance Agenda — Mayor Higgins Mr. Calhoun noted since several upcoming meetings have full agendas, amd said that the November 8 meeting will be split into two meetings: one beginning at 5 p.m. with the regular formal format and regular business, and then a 6 p.m. meeting to handle the two public hearings and associated ordinances. Council concurred with the idea of having the two meetings as noted. There were no suggested changes to the Advance Agenda. 8. CenterPlace Catering. This was an information only item and was not reported or discussed. Council Study Session: 10-18-2016 Page 4 of 5 Approved by Council: DRAFT 9. Council Check-in — Mayor Higgins There were no further Council comments. 10. Acting City Manager Comments — Mark Calhoun There were no further City Manager comments. It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn. The meeting adjourned at 8:51 p.m. ATTEST: L.R. Higgins, Mayor Christine Bainbridge, City Clerk Council Study Session: 10-18-2016 Page 5 of 5 Approved by Council: DRAFT Attendance: Councilmembers: Rod Higgins, Mayor Arne Woodard, Deputy Mayor Caleb Collier, Councilmember Pam Haley, Councilmember Mike Munch, Councilmember Ed Pace, Councilmember Sam Wood, Councilmember MINUTES City of Spokane Valley City Council Special Meeting Tuesday, October 21, 2016 Staff: John Hohman, Comm & Eco. Dev Director Cary Driskell, City Attorney Erik Lamb, Deputy City Attorney Chelsie Taylor, Finance Director Mike Stone, Parks & Rec Director Eric Guth, Public Works Director Christine Bainbridge, City Clerk Mayor Higgins called the meeting to order at 9:30 a.m. ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present. EXECUTIVE SESSION: It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn into executive session until approximately 3:00 p.m. to evaluate the qualifications of applicants for public employment, and that no action will be taken upon return to open session. Council adjourned into executive session at 9:32 a.m. At 2: 57 p.m., Mayor Higgins declared Council out of executive session, at which time it was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn. L.R. Higgins, Mayor ATTEST: Christine Bainbridge, City Clerk Council Minutes: 10-21-2016 Page 1 of 1 Approved by Council: DRAFT Attendance: Councilmembers: Rod Higgins, Mayor Arne Woodard, Deputy Mayor Caleb Collier, Councilmember Mike Munch, Councilmember Ed Pace, Councilmember Sam Wood, Councilmember ABSENT: Pam Haley, Councilmember MINUTES City of Spokane Valley City Council Special Meeting Tuesday, October 25, 2016 Staff: John Hohman, Comm & Eco. Dev Director Cary Driskell, City Attorney Christine Bainbridge, City Clerk Mayor Higgins called the meeting to order at 4:30 p.m. ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present except Councilmember Haley. It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to excuse Councilmember Haley from this meeting. EXECUTIVE SESSION: It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn into executive session until approximately 5:45 p. m. to evaluate the qualifications of applicants for public employment and that no action is anticipated upon return to open session, although as a result of this meeting, action is anticipated during the regular 6:00 p.m. October 25, 2016 Council meeting. Council adjourned into executive session at 4:33 p.m. At 5:33 p.m. Mayor Higgins declared Council out of executive session, at which time it was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn. L.R. Higgins, Mayor ATTEST: Christine Bainbridge, City Clerk Council Minutes: 10-25-2016 Page 1 of 1 Approved by Council: DRAFT MINUTES City of Spokane Valley City Council Regular Meeting Formal Meeting Format Tuesday, October 25, 2016 Mayor Higgins called the meeting to order at 6:00 p.m. Attendance: Rod Higgins, Mayor Arne Woodard, Deputy Mayor Caleb Collier, Councilmember Pam Haley, Councilmember [arrived 6:51 p.m.] Mike Munch, Councilmember Ed Pace, Councilmember Sam Wood, Councilmember Staff Mark Calhoun, Acting City Manager Cary Driskell, City Attorney Mike Stone, Parks & Rec Director Erik Lamb, Deputy City Attorney Chelsie Taylor, Finance Director Eric Guth, Public Works Director John Hohman, Comm & Eco. Dev. Director John Whitehead, Human Resources Manager Mark Werner, Police Chief Mike Basinger, Economic Develop. Coordinator Chaz Bates, Economic Development Specialist Christine Bainbridge, City Clerk INVOCATION: Standing in for Pastor Hebden, Pastor Bryce Brewer from Refuge Church gave the invocation. PLEDGE OF ALLEGIANCE Council, staff and the audience stood for the Pledge of Allegiance. ROLL CALL City Clerk Bainbridge called the roll; all Councilmembers were present except Councilmember Haley. It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to excuse Councilmember Haley for about the next one and one-half hours. APPROVAL OF AGENDA It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to approve the agenda. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS COMMITTEE, BOARD, LIAISON SUMMARY REPORTS Councilmember Munch: said he met with Visit Spokane today and looks forward to working together. Councilmember Pace: said he attended an STA (Spokane Transit Authority) Board meeting and they are starting the process of negotiating a new contract with their CEO, said Commissioner O'Quinn wanted an evaluation process done by a paid consultant before that happened, but it ended up they will schedule that for after that happens. Councilmember Wood: said he chaired the Tourism Board meeting, it was a vigorous discussion, and a recommendation will be coming to Council in the near future. Councilmember Collier: said he met with the Arts Council to get a better understanding of their vision for Spokane Valley. Deputy Mayor Woodard: said he attended various Chamber of Commerce meetings on topics that could impact us, such as the recent Supreme Court decision concerning Whatcom County's water issue. MAYOR'S REPORT Mayor Higgins reported that he attended the DAR (Daughters of the American Revolution) 20th Anniversary; met with GSI (Greater Spokane, Inc.); attended the SCOPE Law Enforcement Awards Banquet; and also met with Visit Spokane. Minutes Regular Council Meeting: 10-25-2016 Page 1 of 7 Approved by Council: DRAFT PROCLAMATION n/a PUBLIC COMMENTS: After Mayor Higgins went over ground rules for public comments, he invited general public comments. Mr. Phillip Tyler, President Spokane NAACP: said he is Spokane's NAACP new President and he wanted to extend a hand in solidarity to build on shared values; he extended verbal support for the Sheriff and our new Police Chief, and said he hopes to discover ways to assist marginalized communities and communities of color; said he has reached out to the individual Councilmembers, and while he hasn't heard from everyone, will leave his business cards with the City Clerk. Ms. Laura Renz, Spokane County: spoke again concerning getting some awareness for service dogs in this city; said she and her service animal are attacked every time they go out in the community as many businesses allow dogs in public buildings; said the businesses are afraid to ask the dog owner that second question; said there is a need to be protected and not rushed by dogs jumping out of strollers and that it distracts the service animal; said she doesn't know how to start doing this, and maybe the best way is to train the businesses that it is okay to ask the questions of dog owners; and said she hopes to get some awareness through the business community. Mr. Robert Sampson, Checker Cab in Spokane Valley: said he has done a lot of good work to help with Coats for Kids in Spokane Valley, Spokane and Idaho; said he conducted an experiment with Uber and Lift; he took a car that was out of service and damaged and a driver who was a felon, and ran him through the process and he was approved as was the car, in about a minute; said the car's tires were bald; he asked that these companies be regulated the same way as in Pullman as it would help in the safety for all citizens; said his drivers are fingerprinted and get a background check; he suggested we have a $25 or $50 fee which would give us extra revenue. 1. PUBLIC HEARING: 2016 Budget Amendment — Chelsie Taylor Mayor Higgins opened the public hearing at 6:16 p.m. Finance Director Taylor went over the proposed amendments to the 2016 budget as outlined in her October 25, 2016 Request for Council Action, said since her last presentation to Council on October 4, 2016, there have been no changes. Mayor Higgins invited public comment. No comments were offered and Mayor Higgins closed the public hearing at 6:27 p.m. 2. PUBLIC HEARING: Community Development Block Grant Projects for 2017 — Chaz Bates Mayor Higgins opened the public hearing at 6:28 p.m. Economic Development Specialist Bates went over the information contained in his PowerPoint presentation, which he said is very similar to last week's report, but that some issues have been identified concerning the Indiana Avenue project with the former railroad right-of-way, so the recommendation is not to apply for that project this year. Mr. Bates also noted that a motion on this topic will be considered later this evening. Mayor Higgins invited public comment; no comments were offered and Mayor Higgins closed the public hearing at 6:33 p.m. 3. CONSENT AGENDA: Consists of items considered routine which are approved as a group. Any member of Council may ask that an item be removed from the Consent Agenda to be considered separately. Proposed Motion: I move to approve the Consent Agenda. a. Approval of claim vouchers on Oct. 25, 2016 Request for Council Action Form Totaling: $4,152,004.99 b. Approval of Payroll for Pay Period Ending October 15, 2016: $367,731.74 c. Approval of October 4, 2016 Council Meeting, Study Session Format d. Approval of October 11, 2016 Council Meeting, Formal Meeting Format It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to approve the Consent Agenda. Minutes Regular Council Meeting: 10-25-2016 Page 2 of 7 Approved by Council: DRAFT NEW BUSINESS: 4. Second Reading Proposed Ordinance 16-014 Aggressive Solicitation — Erik Lamb, Kristopher Morton After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Woodard and seconded to approve Ordinance 16-014 updating the City's prohibition on aggressive solicitation. Deputy City Attorney Lamb explained that in response to a U.S. Supreme Court Case as well as a Washington State Supreme Court case dealing with panhandling in the City of Lakewood, in which case the court struck down a "begging" ordinance as an unconstitutional restriction on First Amendment protected speech; and explained that as currently written, our Code may not be enforceable because it does not regulate aggressive solicitation generally, but rather regulates aggressive begging for a particular purpose, i.e. begging for money or goods as charity. Mr. Lamb noted that another section in our code prohibits solicitation from vehicle occupants, and because that is already generally applicable rather than content based, staff is not proposing any changes. Mr. Lamb stressed that this new amendment only regulates those issues where there is some kind of behavior issue, like an attempt or intent to intimidate people to comply, and that it would not affect people gathering signatures on a petition, provided there is no threat or intimidation, which he said would also protect those who lawfully gather signatures. Councilmember Collier asked about the idea of amending the motion to include a copy of the First Amendment in this ordinance so that this change does not infringe upon that right. Deputy City Attorney Lamb noted that the purpose of this ordinance is to regulate conduct and there is no intent to impinge on anyone's constitutional amendments. City Attorney Driskell also mentioned that the next -to -last Whereas clause states that the City seeks to balance its compelling government interest with protecting the rights of individuals to exercise their First Amendment rights safely, and that we want to maintain consistency with the other section of the Code; that we have a clear legislative record and we want to keep it as clean as possible, and therefore he recommends keeping the verbiage as is. Deputy Mayor Woodard agreed that this is being done to protect citizens from aggressive solicitation. Mayor Higgins invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Motion carried. 5. Second Reading Proposed Ordinance 16-015 Property Tax — Chelsie Taylor After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Woodard and seconded to approve Ordinance #16-015 levying regular property taxes for 2017. After Ms. Taylor explained that as in the past, this ordinance does not include an increase in the property tax levy rate, and went over the information contained in her October 25, 2016 Request for Council Action, Mayor Higgins invited public comment. No comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Motion carried. 6. First Reading Proposed Ordinance 16-016, Amending 2016 Budget — Chelsie Taylor After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Woodard and seconded to advance Ordinance #16-016 amending the 2016 Budget, to a second reading. Finance Director Taylor briefly went over the changes as proposed to the 2016 budget, after which Mayor Higgins invited public comment. No comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Motion carried. 7. First Reading Proposed Ordinance 16-017 Adopting 2017 Budget - Chelsie Taylor After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Woodard and seconded to advance Ordinance #16-017 adopting the 2017 Budget to a second reading. Finance Director Taylor went over the background of the materials contained in her October 25, 2016 Request for Action. Mayor Higgins invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Motion carried. 8. Motion Consideration: Fund Allocations to Social Service and Economic Development Agencies — Chelsie Taylor It was moved by Deputy Mayor Woodard and seconded to award 2017 Outside Agency funding as follows: Greater Spokane Valley Chamber of Commerce $17,143; Spokane Valley Arts Council $48, 601; Spokane Minutes Regular Council Meeting: 10-25-2016 Page 3 of 7 Approved by Council: DRAFT Valley Heritage Museum $3, 495; Valleyfest $22, 685; Arts Academy of Spokane $2, 500; Basket for Babies $784; Greater Spokane County Meals on Wheels $21,821; Greater Spokane Substance Abuse Council $4,132; Spokane Valley Partners $13,429; and Widows Might $15,399. Finance Director Taylor explained the process for allocating the funds, as well as a new rule #7 that in no event will any agency receive an allocation greater than their initial request, and she explained that without that rule, based on recommended funds to each agency and the awarding process, that the Museum would have actually received more money than requested. Mr. Calhoun added that we contract for services and therefore can give no more than requested or it would be a gifting of public funds. Mayor Higgins invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Motion carried. 9. Motion Consideration: 2017 Community Development Block Grant Projects — Chaz Bates It was moved by Deputy Mayor Woodard and seconded to authorize staff to prepare CDBG applications for the proposed sidewalk project 8th Avenue from Dickey to Thierman (north side), and Mission Avenue from Bates to Union (north side). Mayor Higgins invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Motion carried. 10. Motion Consideration: Browns Park Lease — Cary Driskell As he had done in past conversations on this topic, Councilmember Wood excused himself from this topic and left the Council Chambers at 7:06 p.m. It was moved by Deputy Mayor Woodard and seconded to authorize Acting City Manager Mark Calhoun to finalize and execute the draft lease agreement and forward it to Water District 3 for their potential approval and execution. City Attorney Driskell went over the background of this issue as stated in the October 25, 2016 Request for Council Action (RCA); said that the Water District had expressed concern that the City did not get back to them in response to their request for an easement instead of the lease the City offered; and as shown in the RCA, there has been communication. Mayor Higgins invited public comment; no comments were offered. Mr. Driskell also mentioned the option of either a 35 or 50 -year lease, and after brief Council discussion, it was moved by Deputy Mayor Woodard and seconded, to amend the motion to include that the lease would be extended to water District #3 with a 50 year term. Mayor Higgins invited public comment; no comments were offered. Vote to amend the motion: In Favor: Unanimous. Opposed: None. Motion carried. Vote on the fully amended motion: In Favor: Unanimous. Opposed: None. Motion carried. Councilmember Wood returned to the dais at 7:14 p.m. 11. Motion Consideration: Selection of City Manager — John Whitehead Human Resources Manager Whitehead gave a brief explanation of the process leading to tonight's Council selection of a city manager; said the Consultant did a good job and initially forty-two people applied, leading to interviews last Friday by Council, the community group, and senior staff. It was then moved by Deputy Mayor Woodard and seconded, to authorize Mayor Higgins to offer the position of City Manager to Mark Calhoun and to begin negotiations of the Employment Agreement subject to approval of the Employment Agreement by a majority of Councilmembers at a subsequent meeting. Mayor Higgins invited public comment. Tony Lazanis said that Mark Calhoun is the best man for the job; and you can't find any better person than he is. There were no further public comments. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Motion carried. Congratulations were extended to Mr. Calhoun. PUBLIC COMMENTS: Mayor Higgins invited public comments. Dennis Crapo extended his congratulations to Mr. Calhoun, and his appreciation to Council for the process. There were no further comments. Mayor Higgins called for a recess at 7:20 p.m.; he reconvened the meeting at 7:31 p.m. Minutes Regular Council Meeting: 10-25-2016 Page 4 of 7 Approved by Council: DRAFT ADMINISTRATIVE REPORTS: 12. Periodic Review, Draft Comprehensive Plan, Planning Commission Findings — Mike Basinger Community and Economic Development Director Hohman noted that with him are Economic Development Coordinator Basinger, and Deputy City Attorney Lamb. Mr. Hohman said staff will be as brief as possible in tonight's overview of the process; that they will go into some details in the different sections, then go to each of the Planning Commission Recommendations for Council input; he noted the minutes from the Planning Commission are included in tonight's packet, and he thanked the Commission for all their work. Mr. Basinger said that the Planning Commission had productive and thoughtful deliberations; and he then went through his PowerPoint presentation; he said there were some dissenting votes and some discussion about transition requirements on zone -by -zone or use -by -use. Below is the summary of the proposed changes: 1. Add a policy in Parks and Open Space Goals and Policies for the Comprehensive Plan Update to support xeriscaping, water conservation, and sustainable park management methods. In response to staff's question on whether to include this, Councilmember Munch said he favors including this provided this isn't a "must" as he doesn't want to force having a park. Mr. Basinger said he didn't think the Commission's intent was that it be mandatory, but if there is an opportunity, it makes sense to show how things could be done differently. Council nodded in agreement. 2. Designate parcels 55173.1018, 55173.1019, 55173.1020, and 55173.1005 as Single Family Residential (SFR) and zone the same parcels as Single Family Residential Urban (R-3). After brief discussion, Council agreed with the Commission's findings. 3. Designate the parcels located in the area south of Bow Avenue, west of Barker Road, north of Sprague Avenue, and east of Greenacres Road as Single Family Residential (SFR) and zone the same parcels as Single Family Residential Urban (R-3). Council agreed with the Commission's findings. Slide 41: "Use the annual amendment process — proposal to change parcel 45091.9100 as Mixed Use (MU) and zone the same parcel as Mixed Use (MU)." Mr. Basinger said the parcel is a church, and they want to do storage or something similar on the remainder of the church property. Mr. Hohman explained that this is one of the incidents where the property owner came in to ask for these changes; he suggested the need to speak to the Attorney more to see how this fits into the process; and then can report back on the 8h. Mr. Basinger stated that the Commission was about the use of the CAR (citizen action request) process to allow people to come forward and recommend changes; but he explained that these came in after the fact; said the Commission feels the request should go through the annual process. Mr. Lamb further explained that the concern is we went through an extensive process over a year ago, that there was another opportunity to get comments; but there were some questions about fairness to simply allow that in. Councilmember Pace asked if we can legally make the change and Mr. Lamb said yes, but making that opens the door for more questions in the event we are challenged down the road. Councilmember Pace said he thinks we should make the change. Deputy Mayor Woodard said he thinks the change makes sense on this use; that whatever they'd do for storage, they will be limited on how close they can get to those residences; said he doesn't see that as a problem, and if there are no legal problems, would like to see the change. Councilmember Haley said she is against the change from a fairness standpoint, that it could open a "can of worms" for others to come in; and said she supports the Commission recommendation. Mayor Higgins said they have until November 1 to put in a request, but Mr. Hohman said we did not open the process this year since we are in the middle of this review; said they could apply for it but it would be for 2018. Councilmember Wood said since they were denied the right to do this, he agrees we should make that change now. Councilmember Munch also agreed since there is no process in place, it's not very fair for those who need to make a change. City Attorney Driskell said we need to have a cutoff date or we will have more of these. Mr. Hohman said it could be argued that the cut off was at the end of those public hearings, and Council nodded in agreement. Mr. Driskell also agreed. Councilmember Haley said she still disagrees. Mr. Basinger reminded Council Minutes Regular Council Meeting: 10-25-2016 Page 5 of 7 Approved by Council: DRAFT that we are looking at a zone change, that the individual wanted to do storage, so anything that is allowed in mixed use would be allowed. Slide 43: "Use the annual amendment process — proposal to allow greenhouse/nursey, commercial on the identified parcel." Mr. Hohman said staff would like to request more time to research this further; that we might be able to look at some amendments to the permitted use matrix to allow that specific use. Deputy Mayor Woodard said he would also like more information; and suggested maybe change the use matrix so it would not impede into the normal R2 zone. Mr. Hohman explained that there is a significant floodplain on this property so there aren't many ways this property could be developed unless there is an extensive floodplain modification processes. Councilmember Munch asked about the possibility of a conditional use permit and Mr. Hohman said he would like to examine that as well, but it would require amending the use matrix. Mr. Lamb said there are two ways to handle this: use Mr. Hohman's method, which can be done any time during the year provided the comp plan goals and policies support that; or through a change of the zoning designation, which would allow any of the uses allowed, and that staff could work on that immediately following adoption of the comp plan. Councilmember Collier said for a five -acre lot on a floodplain, allowing a nursery changes the feel of the Ponderosa and said although it would be against the residences' backyards, he is not sure he is comfortable with it. Councilmember Pace noted a floodplain will have limited use; that if someone has a use that's a good argument for change. Councilmember Wood said he would recommend further study and to deal with this next year. Mr. Hohman said staff could start right away and get this before the Commission in November or December; the change would be a code text amendment change not a zone change; so he would leave it in the current zone and we'd look for a way to provide a specific use; and putting this in the code text amendment process will allow the Commission to look at this further. Council agreed to hold off on this proposal. 4. Amend proposed SVMC 19.40.050 to require that industrial accessory dwelling units be inhabited by the employer, operator, or employee of the company at which the industrial accessory dwelling is located. Mr. Basinger explained that the Commission expressed concern that the industrial areas would be put into a position to become multifamily dwelling uses instead of industrial uses but they liked the idea of having the area for employees, owners, etc. to live. Mr. Hohman mentioned that this would be difficult to police and how does one go about obtaining proof of being the employer or employee; said he feels it would leave the door open for complaints; said it would follow the residential accessory dwelling units as either an extension or an apartment type like a hotel room, or even a stand-alone unit; and said there is some flexibility. It was noted the maximum number of units is ten and Councilmember Pace suggested leaving it alone and not try to police who lives there. Deputy Mayor Woodard agreed and said if someone wants to convert industrial to residential, it is kind of a stupid way to use industrial; he agreed to leave it alone; said we don't have a way to police it and again, if they want to waste their industrial zone for accessory dwelling units, it is an awfully stupid waste. Mayor Higgins suggested we would likely not encounter much of this and we should probably stay out of it. Councilmember Wood asked how many we have now and Mr. Basinger replied none that he is aware of; that he heard of some caretaker units on industrial properties; said it would also have to be stipulated that it needs to be on the upper level and no more than two bedrooms. There was consensus to take this out. 5. Remove SVMC 19.40.100 small residential dwellings and small residential dwellings supportive housing consider through a separate future code text amendment process. Mr. Basinger said as a code text amendment, this process could be done at any time. Mr. Hohman added that the Commission wanted more time to look at this as it can be very controversial depending on the type of dwelling; and again stated that this code text amendment could start in November or December. Mr. Lamb explained that our Code doesn't require any size home except for what the Building Code requires, so it becomes about the supportive housing issue and not the individual small home. Deputy Mayor Woodard said he would like to leave it in partly because of the flexibility. Councilmember Pace agreed and said this is a community and a Council goal, and has been out there for a long time, and said it would be letting a lot of people down if we removed this. Councilmember Haley said she would be interested in the vetting process; that you can't just Minutes Regular Council Meeting: 10-25-2016 Page 6 of 7 Approved by Council: DRAFT build and have it be trashed, yet you can find exactly that around Spokane Valley where people do not take care of their property; said she also would like to know more about this and tends to agree with the Planning Commission. Councilmember Wood added that this is not a new subject; that it does create flexibility and sometimes freedom can be ugly; said he is for it. Councilmember Collier said as a newer Councilmember, he would like more discussion on this and tends to agree with staff and the Commission. Councilmember Haley added that this is one of the things members of the public have voiced concern about; said she needs to be assured there will be some requirements, and needs to know more. Mr. Hohman said staff can bring back more information and criteria at the November 8th discussion. Council agreed. 6. Amend proposed SVMC 19.70.020 and Table 19.70-1, Residential Standards, to provide for a maximum density of 22 units per acre and a maximum building height of 50 feet in the Multifamily Residential (MFR) zone. Mr. Basinger said he will bring back what the existing code has for multi -family; said because we have multi -family abutting residential, having this density and height is appropriate. Mr. Hohman added that this would make an added buffer for multi -family yet still allow if someone wants a larger structure. Council nodded in agreement. 7. Amend proposed SVMC 22.70.070(D)(1) to provide that full screening is required when a multifamily or nonresidential project abuts a single family residential zoning district or single family residential use. Deputy Mayor Woodard said he would take out the single family residential use and change that to single family residential zone; said they are trying to encourage re -purposing some of those corridors into something productive; said it's not right to have to have all that screening. Mr. Hohman replied that we could look at eliminating the non-residential and just have it apply to single family zone; said the intent is zone to zone and not use to use; said the issue is the multi -family project and residential use next door; said staff needs to clarify that it is only in the multi -family zone. Mr. Basinger noted that we have not yet received comments from the Department of Commerce, but they have until November 15 to do so. 13. Advance Agenda — Mayor Higgins There were no suggested changes to the Advance Agenda. INFORMATION ONLY (will not be reported or discussed): The (14) Department Reports; (15) SRTMC (Spokane Regional Transportation Management Center) Interlocal Agreement; and (16) Sullivan Bridge Update were for information only and were not reported or discussed. CITY MANAGER COMMENTS Mr. Calhoun noted that item #16, Sullivan Bridge, is a nice summary of that project, and that we anticipate the project being finalized early December, barring no weather barriers. Mr. Calhoun also noted that we have several heavy upcoming agendas, and that the November 8 agenda items have been split into two meetings: one beginning at 5 p.m. to cover the regular routine items, and another meeting at 6 p.m. for the two public hearings and accompanying first reading of those ordinances. It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn. The meeting adjourned at 8:41 p.m. ATTEST: L.R. Higgins, Mayor Christine Bainbridge, City Clerk Minutes Regular Council Meeting: 10-25-2016 Page 7 of 7 Approved by Council: DRAFT Attendance: Councilmembers: Rod Higgins, Mayor Arne Woodard, Deputy Mayor Caleb Collier, Councilmember Pam Haley, Councilmember Mike Munch, Councilmember Ed Pace, Councilmember Sam Wood, Councilmember MINUTES City of Spokane Valley City Council Special Meeting Tuesday, November 1, 2016 Staff: Mark Calhoun, Acting City Manager Cary Driskell, City Attorney Erik Lamb, Deputy City Attorney Christine Bainbridge, City Clerk Mayor Higgins called the meeting to order at 5:30 p.m. ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present. EXECUTIVE SESSION: It was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn into executive session until approximately 5:50 p.m. to discuss potential land acquisition and pending/potential litigation, and that no action is anticipated upon return to open session. Council adjourned into executive session at approximately 5:32 p.m. At 5:50 p.m. Deputy City Attorney Lamb announced that the executive session has been extended until 5:55 p.m. At 5:55 p.m. Mayor Higgins declared Council out of executive session, at which time it was moved by Deputy Mayor Woodard, seconded and unanimously agreed to adjourn. L.R. Higgins, Mayor ATTEST: Christine Bainbridge, City Clerk Council Minutes: 11-01-2016 Page 1 of 1 Approved by Council: CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 8, 2016 Department Director Approval: Check all that apply: QX consent ❑ old business ❑ new business ❑ public hearing ❑ information ❑ admin. Report ❑ pending legislation ❑ executive session X AGENDA ITEM TITLE: Motion Consideration: City Hall Lease Extension for the Period April 1 through September 30, 2017. GOVERNING LEGISLATION: None. PREVIOUS COUNCIL ACTION TAKEN: Staff presented an Administrative Report to Council on the need for a lease extension at the November 1, 2016 Council meeting. Council's last formal action on the City's lease with Northwest Christian Schools for City Hall space occurred on November 4, 2014, when the lease was amended to provide for moving the Finance Department into the space formerly occupied by Wells Fargo, and moving the Permit Center from the wing to the west of the main building, into the space previously occupied by the Finance Department. BACKGROUND: The City entered into an initial lease with Northwest Christian Schools for City Hall space at the current site in January 2003 and the lease has been extended and/or revised several times, with the current extension running for the four-year period April 1, 2013 through March 31, 2017. We are currently in the final year of this four-year lease and will vacate the premises once the new City Hall building is complete. We anticipate the new City Hall building will be substantially complete by August 31, 2017 and that we will move into the structure during the month of September 2017. Consequently, we need to extend our lease with Northwest Christian Schools for a 6 -month period that extends through September 30, 2017. The City currently pays an annual lease amount of $434,661 and leases a total of 28,250 square feet of space including: • 25,950 square feet in the Clocktower Building where we currently pay $16.40 per square foot per year for an annual total of $425,650.44 • 2,300 square feet in the side building which serves as warehouse space where we currently pay $3.92 per square foot per year for an annual total of $9,010.56. • The annual cost of the existing lease for the past five -years is as follows: o April 1, 2012 through March 31, 2013 = $474,796 o April 1, 2013 through March 31, 2014 = $400,000 o April 1, 2014 through March 31, 2015 = $408,000 o April 1, 2015 through March 31, 2016 = $426,138 o April 1, 2016 through March 31, 2017 = $434,661 • An additional charge we incur is a quarterly common area maintenance (CAM) charge that totals approximately $1,000 to $3,000 per year. Northwest Christian Schools is willing to provide the lease extension we are seeking at a rate that reflects a 50% increase over our current monthly rate of $36,221.75. This calculates to a monthly increase of $18,110.88 or $54,332.63 per month for a total of $325.995.78 over the six- month extension. Over the six-month extension we are seeking, this will cost the City an additional $108,665.28 beyond our current lease rate. 1 If for some reason we were forced to extend the lease period beyond September 30, 2017, Northwest Christian Schools has advised us that they may incur substantial expenses and suffer significant economic harm due to conceivably having leased our existing space to new tenants. Consequently, the lease amendment also includes "Holdover" language that states the City would pay an amount equal to 200% of the rent applicable during the final month of the lease. This means that "if" we were not able to vacate the premises by September 30, 2017, the monthly lease beginning October 2017 would increase from $54,332.63 to $108,665.26. The lease further states that the City would also "...pay all costs, expenses, attorneys' fees and damages, including consequential damages sustained by Lessor, directly or indirectly, by reason of Lessee's failure to deliver possession of the Premises by September 30, 2017." Consequently, we must be certain to have vacated the space we are currently leasing by September 30, 2017, and according to our City Hall contractor (Meridian) architect (Architects West) and Staff, this will be done. OPTIONS: Extension of the lease is necessary to accommodate the City's office needs until the new City Hall structure is complete. RECOMMENDED ACTION OR MOTION: "I move to authorize the Acting City Manager to execute the lease amendment with Northwest Christian Schools that extends the lease period by six -months, from April 1, 2017 through September 30, 2017. BUDGET/FINANCIAL IMPACTS: The 50% increase in the lease rate for the six-month period beginning April 1, 2017 will total $108,665.28 and is included in the proposed 2017 Budget. STAFF CONTACT: Mark Calhoun, Acting City Manager ATTACHMENTS: Proposed lease amendment. 2 LEASE AMENDMENT THIS AGREEMENT made this day of , 2016, by and between the CITY OF SPOKANE VALLEY, which mailing address is 11707 East Sprague, Spokane Valley, Washington 99206, (hereinafter referred to as "Lessee"), and NORTHWEST CHRISTIAN SCHOOLS, INC. a nonprofit corporation, (hereinafter referred to as "Lessor"); WHEREAS, The City of Spokane Valley, as Lessee, and Northwest Christian Schools, Inc., as Lessor, entered into Lease Agreements and renewals all of which expire March 31, 2017 for Suites 101, 102, 103, 104, 105, 106, 304, and B-4 warehouse space as noted below, copies of which are attached hereto as Exhibit "A" (all hereafter referred to as the Lease); and WHEREAS, Lessee and Lessor desire herein to provide for a six-month extension and the terms thereof; NOW, THEREFORE, for and in consideration of the recitations set forth, the terms and provisions herein contained, and the mutual benefits to be derived here from, the parties do hereby contract, covenant and agree as follows: 1. Lease Extension. The Lease shall be modified to extend the Lease until September 30, 2017, according to the terms and conditions herein. The Lessee agrees to comply with all of the terms and conditions of the Lease, as amended by this Lease Amendment. 2. Premises Leased. Lessee leases 25,950 square feet within the Clocktower Building, noted as follows: Suites 101,102, 103, 104, 105, 106 and 304, as well as B-4, 2,300 square feet of warehouse space in the west wing building. All as shown on Exhibit "B" attached hereto (referred to as "Premises"). 3. Amendments to Lease. Lessee and Lessor hereby agree to amend certain provisions under the Lease as follows: a. Lease Expiration Date. The Lease shall be extended for a period of Six (6) Months, which extended Lease term shall expire on September 30, 2017. b. Rent. Monthly rent for the period of April 1, 2016 through March 31, 2017 shall be as follows: Clocktower Suites: $35,470.87 B-4 (base rate)*: $ 750.88 Total Monthly Rent: $36,221.75 Monthly rent for the period of April 1, 2017 through September 30, 2017 shall be as follows: Clocktower Suites: $53,206.31 B-4 (base rate)*: $ 1 126.32 Total Monthly Rent: $54,332.63 *NNN Charges for Suite B-4 shall also be paid according to the terms of the Lease c. Expiration of Lease and Termination of Possession. Lessee agrees and acknowledges that Lessor is relying upon Lessee's agreement to timely vacate the premises no later than the expiration of the term of the Lease, September 30, 2017. Lessee acknowledges that Lessor may incur substantial expenses and suffer significant economic harm in the event Lessee does not fully vacate the premises by that date. Accordingly, Lessee agrees and acknowledges that Lessee has no right to retain possession of the Premises, or any part thereof, beyond September 30, 2017. If Lessee fails to fully vacate the Premises by September 30, 2017: (a) Lessee shall be in default under the terms of the Lease; (b) Lessee shall have no right to continued possession of the Premises; (c) Lessee shall pay to Lessor an amount equal to 200% of the rent applicable during the month immediately following such default, and this amount shall be assessed for each month, or portion thereof following September 30, 2017 until Lessee vacates the Premises; (d) Lessee shall pay all costs, expenses, attorneys' fees and damages, including consequential damages sustained by Lessor, directly or indirectly, by reason of Lessee's failure to deliver possession of the Premises by September 30, 2017; (e) all of Lessee's obligations to Lessor under the terms of the Lease, including the obligation to pay rent and all other sums owing to Lessor, shall continue to apply: (f) Lessor shall have all other Lessor's rights and remedies provided under the terms and conditions of the Lease; and (e) there shall be no renewal or extension of the Leases by operation of any law. Nothing contained herein shall be construed as a consent by Lessor to any holding over by Lessee. Additionally, Lessee shall protect, indemnify, defend, and hold Lessor harmless from and against any and all claims, demands, actions, losses, damages, obligations, costs, and expenses, including, without limitation, attorneys' fees incurred or suffered by Lessor by reason of 1 Lessee's failure to surrender the Premises on the expiration or earlier termination of this Lease in accordance with the provisions of this Lease. d. Paragraphs 3(c) and 3(d) of the Lease Extension and Expansion Agreement dated March 22, 2013 and Paragraphs 3(c), 3(d) and 3(e) of the Lease Amendment dated November 11, 2014, shall all be stricken. 4. Waivers Modification or Amendment. No waiver, modification or further amendment of any term or condition of this Lease Amendment or the Lease shall be effective unless in writing, and no waiver or indulgence by either party or any deviation by the other party from full performance of this Agreement shall be a waiver of the right to subsequent or other full, strict, and timely performance. 5. Merger Clause. This Lease Amendment and the Lease attached as Exhibit A express the full and final purpose and agreement of the parties and will not be qualified, modified or supplemented by course of dealing, usage of trade, or course of performance. There are no verbal agreements which qualify, modify or supplement this Lease Amendment or the Lease. 6. Counterparts. This Agreement may be executed in two or more parts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Except as specifically modified by this Lease Amendment, the terms and conditions of the Lease remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have set their hands this day of 2016. LESSOR NORTHWEST CHRISTIAN SCHOOLS, INC. BY: LESSEE CITY OF SPOKANE VALLEY BY: ITS: ITS Executed On Executed On 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 8, 2016 Department Director Approval: Check all that apply: ❑ consent ❑ old business ® new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Second reading of proposed Ordinance #16-016 which amends the 2016 Budget. GOVERNING LEGISLATION: In order for the City to amend an adopted budget, State law requires the Council to approve an ordinance that appropriates additional funds. PREVIOUS COUNCIL ACTION TAKEN: The Council last took formal action on the 2016 Budget when it was amended on June 7, 2016. On October 4, 2016, an Administrative Report was delivered to Council regarding the need for a budget amendment. On October 25, 2016, a public hearing was held on this topic and Ordinance #16-016 was advanced to a second reading. BACKGROUND: Since the initial adoption of the 2016 Budget on November 10, 2015 and the subsequent amendment on June 7, 2016, a number of events have transpired in the normal course of operations that necessitate a 2016 Budget amendment. They include: #001 - General Fund Provide additional appropriations (expenditures) of $521,759 comprised of: • $15,000 increase in professional services for outside legal counsel due to a greater need for services during 2016 than was anticipated during the 2016 Budget development. • $30,000 reduction in the General Government professional services, and increase in the transfer out of $30,000 to the Parks Capital Projects Fund #309 to pay for the unanticipated water connection costs for the Browns Park splashpad construction. • Additional $453,116 related to the agreed upon severance costs for the former City Manager and related legal fees. • A $16,418 transfer to the Winter Weather Reserve Fund #122 to replenish the fund to $500,000. • An additional transfer of $37,225 to Parks Capital Projects Fund #309 to pay for the replacement of the play structure at Terrace View Park that was damaged during the windstorm in November 2015. Increase revenues by $36,400 as a result of grant proceeds from the Federal Emergency Management Agency (FEMA) in the wake of the windstorm in November 2015. #101 — Street Fund Increase expenditures by $46,000 due to the need to replace and rewire a traffic signal cabinet that was damaged during a traffic accident. Increase revenues by $96,000, including $50,000, reflecting the right-of-way maintenance fee from Sunshine Disposal for the amount of solid waste received at the transfer facility that exceeded 45,500 tons and $46,000 in insurance proceeds received following a claim to replace and rewire a traffic signal cabinet that was damaged during a traffic accident. 1 #103 — Trails and Paths Fund Increase expenditures by $9,300 to pay for additional unplanned expenditures related to the Appleway Trail — University to Pines closeout process. #104 — Hotel / Motel Tax — Tourism Facilities Fund Increase estimated revenues by $19,500 reflecting revised projected hotel/motel tax revenues in 2016 from the 1.3% hotel/motel tax. #105 - Hotel / Motel Tax Fund Increase estimated revenues by $30,000 reflecting revised projected hotel/motel tax revenues in 2016 from the 2% hotel/motel tax. #122 — Winter Weather Reserve Fund Revenues for the Winter Weather Reserve Fund are being increased by $54,928. These funds are a combination of FEMA grant proceeds in the amount of $38,510 and a transfer in from the General Fund of $16,418. These revenues are a result of the 2015 windstorm cleanup effort which resulted in the fund falling below its target fund balance of $500,000. With these additional revenues, it will be returned to fully funded status. #123 — Civic Facilities Replacement Fund Expenditures are increased by $22. This will complete the effort to reduce the fund balance to $0 by the end of 2016. #301 — REET 1 Capital Projects Fund Increase expenditures by $540,000 to reflect changes in project schedules for 2016 through: • An increase in transfers out to the Street Capital Projects Fund #303 by $520,000 to reflect a change in project schedules. • An addition of a transfer out to the proposed new Railroad Grade Separation Projects Fund #314 in the amount of $20,000 for funding design costs for the Barker Grade Separation Project. Real Estate Excise Tax (REET) revenue is increased by $200,000 based on revised revenue projections. #302 — REET 2 Capital Projects Fund Expenditures are decreased by $540,000 to reflect changes in project schedules and makeup for 2016. Real Estate Excise Tax (REET) revenue is increased by $200,000 based on revised revenue projections. #303 — Street Capital Projects Fund This fund is being amended to reflect estimated actual progress on a number of projects as well as updates to estimated project costs. Expenditures and revenues are decreased by $285,000. This includes a reduction in the contingency of $250,000 to bring the contingency from $1,000,000 to $750,000. As the Fund #303 budget is developed in July prior to the budget year, the City has historically included a $1,000,000 appropriation contingency to absorb changes in project timelines and costs that occur subsequent to the initial budget development process. This $1,000,000 appropriation contingency is then offset by a combination of assumed grant revenues and REET revenues transferred from Funds #301 and #302. Additional reductions include moving both the Barker Grade Separation and the Pines Grade Separation projects to the proposed new Railroad Grade Separation Projects Fund #314. 2 #309 — Park Capital Projects Fund This fund is being amended to reflect estimated actual progress on a number of projects. The increases seen in this fund are primarily a result of two segments of the Appleway Trail starting earlier than originally anticipated due to obligation of grant funds. Changes include increases in expenditures/ appropriations in the amount of $477,822. Expenditure changes include: • An increase of $9,300 to the Appleway Trail — University to Pines segment to complete the closeout of the project. • An increase of $400 to complete the closeout of phase 1 of the Pocket Dog Park. • An increase of $102,247 to the Appleway Trail — Pines to Evergreen segment to complete design work. • The addition of $276,775 for the Appleway Trail — Sullivan to Corbin segment to complete design work. • An increase of $30,000 to the Browns Park Splashpad project due to unforeseen water connection fees. • The addition of $59,100 for replacement of the Terrace View Playground Equipment due to damage during the 2015 windstorm. Revenues will increase by $477,422, including: • Grant proceeds of $320,132 for the Appleway Trail — Pines to Evergreen and Sullivan to Corbin segments. • Grant proceeds from FEMA for the replacement of the Terrace View Playground Equipment in the amount of $21,875. • An increase of $67,225 in the transfer in from the General Fund for the remaining amount of the Terrace View Playground Equipment replacement and the Browns Park Splashpad water connection costs. • A transfer in of $9,300 from Trails and Paths Fund #103 for the Appleway Trail — University to Pines segment. • A transfer in of $58,890 from Capital Reserve Fund #312 for the Appleway Trail — Pines to Evergreen and Sullivan to Corbin segments. #311 — Pavement Preservation Fund Expenditures increase by $1,500,000 to account for changes in the schedules of projects and related to grant funding. Revenues increase by $2,063,022 reflecting an increase in grant revenues related to preservation projects in the amount of $2,063,000 as well as an increase of $22 transferred in from the Civic Facilities Replacement Fund #123. #312 — Capital Reserve Fund • Expenditures/appropriations of $981,160 include: o An increase of $457,270 for the Sullivan Rd West Bridge. This is based on scheduling and is not an increase in total contribution to the fund. o A reclassification of $500,000 related to the Pines Rd Grade Separation project. This reduces the amount transferred to Fund #303, and creates the amount to be transferred to the proposed new Fund #314 for the same dollar amount. o An increase of $50,000 reflecting a transfer to Street Capital Projects Fund #303 for the Euclid Ave — Flora to Barker project. o An increase of $415,000 reflecting a transfer to the Street Capital Projects Fund #303 for the 8th and Carnahan Intersection Improvements project. o An increase of $13,800 reflecting an additional transfer to Parks Capital Projects Fund #309 for the Appleway Trail — Pines to Evergreen segment. 3 o An increase of $45,090 reflecting a transfer to Parks Capital Projects Fund #309 for the Appleway Trail — Sullivan to Corbin segment. #313 — City Hall Construction Fund Expenditures are decreased by $5,355,005 for construction on the new City Hall building to reflect expenditures for the project moving into 2017. #314 — Railroad Grade Separation Fund This is a proposed new fund for 2016. The intent of the fund is to account for the capital construction projects that are part of Bridging the Valley. Due to the anticipated size, scope, and duration of these projects, managing these projects in their own fund allows for the necessary monitoring without being obscured by the variety and quantity of the other projects in Street Capital Projects Fund #303 as well as keeping these projects from skewing the average volume of activity in Fund #303. Expenditures and revenues for this fund are proposed to be $750,000, which were previously budgeted in Fund #303, including: • $250,000 for preliminary design and engineering of the Barker Rd/BNSF Grade Separation project which is funded by a combination of $230,000 of grant proceeds and $30,000 in transfers in from the REET 1 Capital Projects Fund #301. • Expenditures of $500,000 for the purchase of land related to the Pines Rd Underpass at BNSF & Trent project which is funded by a transfer in from the Capital Reserve Fund #312. #402 — Stormwater Management Fund Expenditures/appropriations decreased by $375,000, including: • Capital Projects expenditures are decreased by $425,000 due to various capital projects being accounted for in the Aquifer Protection Area Fund #403. • An increase in street sweeping expenditures of $50,000 due to the 2015 windstorm. Revenues increase by $48,800 reflecting the receipt of FEMA grants to offset costs related to the 2015 windstorm. #403 — Aquifer Protection Area Fund Capital outlays in this fund have changed by a total reduction of $1,575,000 comprised of: • A reduction of $2,000,000 as the grant program that provided funding for the Sprague — Park to University LID has been delayed. • The addition of water quality related improvements related to road projects in the amount of $425,000 Revenues have been decreased by a total of $1,600,000: • A reduction of grant proceeds by $1,500,000 as the grant program that provided funding for the Sprague — Park to University LID has been delayed. • A reduction of the Spokane County APA Fee by $100,000 based on revised estimates. This budget amendment will create one new fund: • Fund #314 — Railroad Grade Separation Projects Fund 4 The 2016 Budget amendment reflects the changes noted above and will affect 17 funds resulting in total appropriation/expenditure decreases of $3,303,942 and revenue increases of $2,091,072. 001 General Fund 101 Street Fund 103 Trails and Paths Fund 104 Hotel / Motel Tax - Tourism Facilities Fund 105 Hotel / Motel Tax Fund 122 Winter Weather Reserve Fund 123 Civic Facilities Replacement Fund 301 REET 1 Capital Projects Fund 302 REET 2 Capital Projects Fund 303 Street Capital Projects Fund 309 Park Capital Projects Fund 311 Street Preservation Fund 312 Capital Reserve Fund 313 City Hall Construction Fund 314 Railroad Grade Separation Projects Fund 402 Stormwater Management Fund 403 Aquifer Protection Area Fund 36,400 521,759 96,000 46,000 0 9,300 19,500 0 30,000 0 54,928 0 0 22 200,000 540,000 200,000 (540,000) (285,000) (285,000) 477,422 477,822 2,063,022 1,500,000 0 981,160 0 (5,355,005) 750,000 750,000 48,800 (375,000) (1,600,000) (1,575,000) 2,091,072 (3,303,942) OPTIONS: Options are to accept the proposed amendments in whole or in -part. RECOMMENDED ACTION OR MOTION: Move to approve Ordinance #16-016 amending Ordinance #15-019 which adopted a budget for the period January 1, 2016 through December 31, 2016, as subsequently amended by Ordinance #16-008. BUDGET/FINANCIAL IMPACTS: This action amends the estimated revenues and appropriations for the 2016 Budget that was adopted on November 10, 2015 and subsequently amended on June 7, 2016. There are adequate funds available to pay for these amendments. STAFF CONTACT: Chelsie Taylor, Finance Director ATTACHMENTS: • Ordinance #16-016 • Fund level line -item detail of revenues and expenditures. 5 Revenue Expenditure Fund Fund Increase Increase No. Name (Decrease) (Decrease) 001 General Fund 101 Street Fund 103 Trails and Paths Fund 104 Hotel / Motel Tax - Tourism Facilities Fund 105 Hotel / Motel Tax Fund 122 Winter Weather Reserve Fund 123 Civic Facilities Replacement Fund 301 REET 1 Capital Projects Fund 302 REET 2 Capital Projects Fund 303 Street Capital Projects Fund 309 Park Capital Projects Fund 311 Street Preservation Fund 312 Capital Reserve Fund 313 City Hall Construction Fund 314 Railroad Grade Separation Projects Fund 402 Stormwater Management Fund 403 Aquifer Protection Area Fund 36,400 521,759 96,000 46,000 0 9,300 19,500 0 30,000 0 54,928 0 0 22 200,000 540,000 200,000 (540,000) (285,000) (285,000) 477,422 477,822 2,063,022 1,500,000 0 981,160 0 (5,355,005) 750,000 750,000 48,800 (375,000) (1,600,000) (1,575,000) 2,091,072 (3,303,942) OPTIONS: Options are to accept the proposed amendments in whole or in -part. RECOMMENDED ACTION OR MOTION: Move to approve Ordinance #16-016 amending Ordinance #15-019 which adopted a budget for the period January 1, 2016 through December 31, 2016, as subsequently amended by Ordinance #16-008. BUDGET/FINANCIAL IMPACTS: This action amends the estimated revenues and appropriations for the 2016 Budget that was adopted on November 10, 2015 and subsequently amended on June 7, 2016. There are adequate funds available to pay for these amendments. STAFF CONTACT: Chelsie Taylor, Finance Director ATTACHMENTS: • Ordinance #16-016 • Fund level line -item detail of revenues and expenditures. 5 DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 16-016 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, AMENDING ORDINANCE 15-019, WHICH ADOPTED A BUDGET FOR THE PERIOD JANUARY 1, 2016 THROUGH DECEMBER 31, 2016 AS SUBSEQUENTLY AMENDED BY ORDINANCE 16-008; CREATING NEW FUND (314) RAILROAD GRADE SEPARATION PROJECTS FUND; AND OTHER MATTERS RELATED THERETO. WHEREAS, the City Council passed Ordinance 15-019 on November 10, 2015, which adopted the 2016 annual budget; and WHEREAS, the City Council approved Ordinance 16-008 on June 7, 2016, which amended the 2016 annual budget, and WHEREAS, subsequent to the November 10, 2015 adoption and June 7, 2016 amendment of the 2016 annual budget, it has become necessary to make changes by adding new revenue, appropriations, amendments, and transferring funds in order to properly perform City functions, services and activities; and WHEREAS, it is necessary to create Fund 314 Railroad Grade Separation Projects Fund, which will be used to account for activities related to the design and construction of railroad grade separation projects within the City; and WHEREAS, the budget changes set forth in this Ordinance could not have been reasonably anticipated or known when the 2016 annual budget was passed by the City Council; and WHEREAS, the City Council has determined that the best interests of the City are served by amending the 2016 budget to reflect unanticipated revenue, expenditures, transfers, and appropriating the same as set forth herein. NOW THEREFORE, the City Council of the City of Spokane Valley, Washington do ordain as follows: Section 1. Amended Revenues and Appropriations. Ordinance No. 15-019 adopted a budget for the twelve months beginning January 1, 2015 and ending December 31, 2015 and Ordinance 16-008 amended the budget for the same period. Each item, revenue, appropriation, and fund contained in Section 1 of Ordinance 15-019, as subsequently amended by Ordinance 16-008, is hereby further amended as set forth in Attachment A to this Ordinance, which is incorporated herein. Section 2. Creating Fund 314. There is hereby created Fund 314 Railroad Grade Separation Projects Fund which will be used to account for activities related to the design and construction of railroad grade separation projects within the City. Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance should 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 publication of this Ordinance or a summary thereof in the official newspaper of the City as provided by law. Ordinance 16-016 amending the 2016 budget Page 1 of 3 Passed by the City Council of the City of Spokane Valley this day of November 2016. ATTEST: L.R. Higgins, Mayor Christine Bainbridge, City Clerk Approved as to form: Office of the City Attorney Date of Publication: Effective Date: Ordinance 16-016 amending the 2016 budget Page 2 of 3 ATTACHMENT A Sources Uses Fund No. Annual Appropriation Funds Beginning Fund Balance Revenues Total Sources Appropriations Estimated Ending Fund Balance Adopted via Ord. 15-019 Amended viaAmended Ord. 16-008 via Ord. 16-016 Total Revenues Adopted via Ord. 15-019 Amended viaAmended Ord. 16-008 via Ord. 16-016 Total Appropriations 001 General 26,045,444 39,478,853 481,734 36,400 39,996,987 66,042,431 39,974,480 2,243,357 521,759 42,739,596 23,302,835 101 Street O&M 1,443,077 4,357,900 0 96,000 4,453,900 5,896,977 4,382,900 0 46,000 4,428,900 1,468,077 103 Paths & Trails 38,054 8,500 0 0 8,500 46,554 0 0 9,300 9,300 37,254 104 Hotel/Motel Tax - Tourism Facilities 182,347 357,500 0 19,500 377,000 559,347 0 0 0 0 559,347 105 Hotel/Motel Tax 208,701 550,300 0 30,000 580,300 789,001 590,000 0 0 590,000 199,001 106 Solid Waste 42,874 178,500 0 0 178,500 221,374 178,500 0 0 178,500 42,874 107 PEG 301,182 90,000 0 0 90,000 391,182 24,500 130,000 0 154,500 236,682 120 CenterPlace Operating Reserve 300,000 0 0 0 0 300,000 0 0 0 0 300,000 121 Service Level Stabilization 5,461,789 6,500 0 0 6,500 5,468,289 0 0 0 0 5,468,289 122 Winter Weather Reserve M4,472 600 0 54,928 55,528 500,000 500,000 0 0 500,000 0 123 City Facilities Repair & Replacement 559,108 700 0 0 700 559,808 559,786 0 22 559,808 0 204 Debt Service LTGO 03 4,049 547,100 198,734 0 745,834 749,883 547,100 198,734 0 745,834 4,049 301 Capital Projects 1,594,088 801,000 0 200,000 1,001,000 2,595,088 671,189 0 540,000 1,211,189 1,383,899 302 Special Capital Projects 1,728,297 801,000 0 200,000 1,001,000 2,729,297 1,371,502 0 (540,000) 831,502 1,897,795 303 Street Capital Projects 75,538 11,767,791 0 (285,000) 11,482,791 11,558,329 11,767,791 0 (285,000) 11,482,791 75,538 309 Parks Capital Projects 98,461 264,550 100,950 477,422 842,922 941,383 352,050 100,950 477,822 930,822 10,561 310 Civic Facilities Capital Projects 1,182,548 345,400 0 0 345,400 1,527,948 0 198,734 0 198,734 1,329,214 311 Pavement Preservation 2,605,219 2,301,500 0 2,063,022 4,364,522 6,969,741 3,050,000 0 1,500,000 4,550,000 2,419,741 312 Capital Reserve 4,576,597 0 1,828,723 0 1,828,723 6,405,320 1,524,559 0 981,160 2,505,719 3,899,601 313 City Hall Construction 4,789,046 0 7,946,088 0 7,946,088 12,735,134 294,400 12,451,520 (5,355,005) 7,390,915 5,344,219 314 Railroad Grade Separation Projects 0 0 0 750,000 750,000 750,000 0 0 750,000 750,000 0 51,680,891 61,857,694 10,556,229 3,642,272 76,056,195 127,737,086 65,788,757 15,323,295 (1,353,942) 79,758,110 47,978,976 Sources Uses Revenues Appropriations Estimated Be ginning Ending Fund Working Adopted via Amended viaAmended via Total Total Adopted via Amended viaAmended via Total Working No. Working Capital Funds Capital Ord. 15-019 Ord. 16-008 Ord. 16-016 Revenues Sources Ord. 15-019 Ord. 16-008 Ord. 16-016 Appropriations Capital 402 Stormwater Management 1,896,925 1,871,500 175,000 48,800 2,095,300 3,992,225 2,240,115 251,100 (375,000) 2,116,215 1,876,010 403 Aquifer Protection Area 921,660 2,000,000 0 (1,600,000) 400,000 1,321,660 2,000,000 0 (1,575,000) 425,000 896,660 501 Equipment Rental & Replacement 1,248,997 102,333 4,667 0 107,000 1,355,997 330,000 0 0 330,000 1,025,997 502 Risk Management 194,383 325,000 0 0 325,000 519,383 325,000 0 0 325,000 194,383 4,261,965 4,298,833 179,667 (1,551,200) 2,927,300 7,189,265 4,895,115 251,100 (1,950,000) 3,196,215 3,993,050 Total of all Funds 55,942,856 66,156,527 10,735,896 2,091,072 78,983,495 134,926,351 70,683,872 15,574,395 (3,303,942) 82,954,325 51,972,026 Ordinance 16-016 amending the 2016 budget Page 3 of 3 \\svfsl\users\ctaylor\Budget\2016Wmendment #2\2016 11 08 Second Reading of Ordinance\amendment no 2 detail CITY OF SPOKANE VALLEY, WA 2016 Budget - Amendment #2 Line Item Detail 11/8/2016 Account Description Account Number Description / Justification Initial Budget Amendment No 2 Amended Budget #001 - General Fund Recurring Expenditures Professional Services - Legal Services Professional Services - Misc Studies Transfers out - #309 001.013.015.515.10.41.04 001.090.000.513.10.41.05 001.090.000.597.30.00.90 Nonrecurring Revenues FEMA Grant for Windstorm 001.090.000.331.97.03 Nonrecurring Expenditures City Manager's Severance Transfers out - #122 Transfers out - #309 001.090.000.597.10.00.70 - Outside Legal Counsel needed more during 2016 - Reduced for Browns Park Splashpad transfer - Browns Park Splashpad water connection Total recurring expenditures - FEMA Grant Proceeds (2015 Windstorm) Total nonrecurring revenues - City Manager's severance agreement & related legal costs 001.090.000.597.12.00.20 - Replenish Winter Weather Reserve Fund 001.090.000.597.30.00.90 - Parks & Rec Windstorm Damage Total nonrecurring expenditures #101 - Street Fund Recurring Revenues Street Maintenance & Repair Charges 101.042.000.344.10.00 Nonrecurring Revenues Insurance Proceeds 51,762 235,500 200,300 15,000 66,762 (30,000) 205,500 30,000 230,300 15,000 0 36,400 36,400 36,400 0 453,116 0 16,418 0 37,225 506,759 Total of all General Fund revenues Total of all General Fund expenditures 36,400 521,759 - Right of Way Maintenance Fee Total recurring revenues 101.042.000.395.20.00 - Insurance Proceeds Nonrecurring Expenditures Traffic Signal Cabinet Replacement 101.042.000.594.42.63.03 Total nonrecurring revenues - Accident at 16th/Sullivan - Signal Cabinet Replacement needed Total nonrecurring expenditures 0 50,000 50,000 0 46,000 46,000 0 46,000 46,000 Total of all Street Fund revenues 96,000 Total of all Street Fund expenditures 46,000 Page 1 of 6 453,116 16,418 37,225 50,000 46,000 46,000 \\svfsl\users\ctaylor\Budget\2016Wmendment #2\2016 11 08 Second Reading of Ordinance\amendment no 2 detail CITY OF SPOKANE VALLEY, WA 2016 Budget - Amendment #2 Line Item Detail 11/8/2016 Account Description Account Number Description / Justification Initial Budget Amendment No 2 Amended Budget #103 - Trails and Paths Fund Expenditures Transfers Out - #309 103.000.000.597.30.00.90 - Appleway Trail - University to Pines #104 - Hotel/Motel Tax- Tourism Facilities Fund Revenues Hotel / Motel Tax Total expenditures 104.000.000.313.30.01 - Revised estimate #105 - Hotel/Motel Tax Fund Revenues Hotel / Motel Tax Total revenues 105.105.000.313.30.00 - Revised estimate #122 - Winter Weather Reserve Fund Revenues FEMA Grant for Windstorm Transfers in - #001 Total revenues 122.000.000.331.97.03 - FEMA Grant Proceeds 122.000.000.397.00.10 - Replenish Winter Weather Reserve Fund #123 - Civic Facilities Replacement Fund Expenditures Transfer out - #311 0 357,500 550,000 9,300 9,300 9,300 19,500 377,000 19,500 30,000 580,000 30,000 0 38,510 38,510 0 16,418 16,418 Total revenues 54,928 123.000.000.597.31.00.10 - Pavement Preservation - deplete fund balance 559,786 22 559,808 Total Expenditures 22 Page 2 of 6 \\svfsl\users\ctaylor\Budget\2016Wmendment #2\2016 11 08 Second Reading of Ordinance\amendment no 2 detail CITY OF SPOKANE VALLEY, WA 2016 Budget - Amendment #2 Line Item Detail 11/8/2016 Account Description Account Number Description / Justification Initial Budget Amendment No 2 Amended Budget #301 - REET 1 Capital Projects Fund Expenditures Transfers out - #303 Transfers out - #314 Revenues REET 1 - 1st Quarter Percent 301.000.000.597.30.00.30 - Revised project schedules 301.000.000.597.31.00.40 - Barker Grade Separation - project design Total expenditures 301.301.000.318.34.00 - Revised estimate based on projections #302 - REET 2 Capital Projects Fund Expenditures Transfers out - #303 Revenues REET 1 - 1st Quarter Percent Total revenues 302.000.000.597.30.00.30 - Revised project schedules Total expenditures 301.301.000.318.34.00 - Revised estimate based on projections #303 - Street Capital Projects Fund Expenditures Capital outlay Capital outlay Capital outlay Capital outlay 303.000.223.595.xx.xx.xx 303.000.251.595.xx.xx.xx 303.000.247.595.xx.xx.xx 303.000.xxx.595.xx.xx.xx Total revenues - Pines Rd Underpass @ BNSF & Trent - Euclid Ave. - Flora to Barker - 8th & Carnahan Intersection Improvements - Contingency 222,503 520,000 742,503 0 20,000 20,000 540,000 800,000 200,000 1,000,000 200,000 922,816 (540,000) 382,816 (540,000) 800,000 200,000 1,000,000 500,000 0 0 1,000,000 200,000 (500,000) 50,000 415,000 (250,000) Total expenditures (285,000) Page 3 of 6 0 50,000 415,000 750,000 Mal \\svfsl\users\ctaylor\Budget\2016Wmendment #2\2016 11 08 Second Reading of Ordinance\amendment no 2 detail CITY OF SPOKANE VALLEY, WA 2016 Budget - Amendment #2 Line Item Detail 11/8/2016 Account Description Account Number Description / Justification Initial Budget Amendment No 2 Amended Budget #303 - Street Capital Projects Fund, continued Revenues Grant Proceeds Developer Fees Transfers in - #301 Transfers in - #302 Transfers in - #312 Transfers in - #312 Transfers in - #312 Transfers in - #312 303.000.xxx.330.00.00 303.000.xxx.367.12.01 303.000.xxx.397.30.10 303.000.xxx.397.30.20 303.303.155.397.31.20 303.000.223.397.31.20 303.000.251.397.31.20 303.000.247.397.31.20 #309 - Park Capital Projects Fund Expenditures Capital outlay Capital outlay Capital outlay Capital outlay Capital outlay Capital outlay Revenues Grant Proceeds Grant Proceeds FEMA Grant for Windstorm Transfer in - #001 Transfer in - #001 Transfer in - #103 Transfer in - #312 Transfer in - #312 309.000.176.595.xx.xx.xx 309.000.225.594.xx.xx.xx 309.000.227.595.xx.xx.xx 309.000.237.595.xx.xx.xx 309.000.249.595.xx.xx.xx 309.000.245.594.xx.xx.xx 309.000.227.333.20.20 309.000.237.334.02.70 309.000.245.331.97.03 309.000.245.397.00.10 309.000.249.397.00.10 309.000.176.397.10.30 309.000.227.397.31.20 309.000.237.397.31.20 - Revised project schedules - Revised project schedules - Revised project schedules - Revised project schedules - Sullivan Rd. W. Bridge Replacement - Pines Rd Underpass @ BNSF & Trent - Euclid Ave - Flora to Barker - 8th & Carnahan Intersection Improvements Total revenues - Appleway Trail - University to Pines - Pocket Dog Park - phase 1 - Appleway Trail - Pines to Evergreen - Appleway Trail - Sullivan to Corbin - Browns Park Splashpad - Terrace View Playground Equip. Replacement Total expenditures - Appleway Trail - Pines to Evergreen - Appleway Trail - Sullivan to Corbin - Grant Proceeds Terrace View Playground - Terrace View Playground - Browns Park Splashpad - Appleway Trail University to Pines - Appleway Trail - Pines to Evergreen - Appleway Trail - Sullivan to Corbin 8,797,263 314,700 222,503 922,816 1,010,509 500,000 0 0 0 0 104,050 0 116,500 0 90,000 0 0 200,300 116,500 0 14,050 0 (647,657) (39,613) 520,000 (540,000) 457,270 (500,000) 50,000 415,000 (285,000) 9,300 400 102,247 276,775 30,000 59,100 477,822 86,361 233,771 21,875 37,225 30,000 9,300 13,800 45,090 Total revenues 477,422 Page 4 of 6 8,149,606 275,087 742,503 382,816 1,467,779 0 50,000 415,000 9,300 400 206,297 276,775 146,500 59,100 176,361 233,771 21,875 237,525 146,500 9,300 27,850 45,090 \\svfsl\users\ctaylor\Budget\2016Wmendment #2\2016 11 08 Second Reading of Ordinance\amendment no 2 detail CITY OF SPOKANE VALLEY, WA 2016 Budget - Amendment #2 Line Item Detail 11/8/2016 Account Description Account Number Description / Justification Initial Budget Amendment No 2 Amended Budget #311 - Pavement Preservation Expenditures Pavement Preservation Revenues Transfers In - #123 Grant Proceeds 311.000.xxx.595.xx.xx.xx - Grant Funded Pavement Preservation Projects Total expenditures 311.000.000.397.12.30 - Transfer form Fund 123 311.000.xxx.33x.xx.xx - Various Grants for Projects #312 - Capital Reserve Fund Expenditures Transfer to - #303 Transfer to - #303 Transfer to - #303 Transfer to - #`C)` Transfer to - #309 Transfer to - #309 Transfer to - #314 312.000.000.597.30.00.30 312.000.000.597.30.00.30 312.000.000.597.30.00.30 312.000.000.597.30.00.30 312.000.000.597.30.00.90 312.000.000.597.30.00.90 312.000.000.597.31.00.40 #313 - City Hall Construction Fund Expenditures Capital Outlay - City Hall Total revenues - Sullivan Road West Bridge - Pines Rd Underpass @ BNSF & Trent - Euclid Ave - Flora to Barker - 8th & Carnah n Intersection Improvements - Appleway Trail - Pines to Evergreen - Appleway Trail - Sullivan to Corbin - Pines Rd Underpass @ BNSF & Trent Total expenditures 313.000.215.594.xx.xx.xx - City Hall Construction Costs 3,000,000 1,500,000 4,500,000 556,786 1,500,000 22 556,808 0 2,063,000 2,063,000 2,063,022 1,010,509 457,270 1,467,779 500,000 (500,000) 0 0 50,000 50,000 0 415,000 415,000 14,050 13,800 27,850 0 45,090 45,090 0 500,000 500,000 981,160 12,649,405 (5,355,005) 7,294,400 Total expenditures (5,355,005) Page 5 of 6 \\svfsl\users\ctaylor\Budget\2016Wmendment #2\2016 11 08 Second Reading of Ordinance\amendment no 2 detail CITY OF SPOKANE VALLEY, WA 2016 Budget - Amendment #2 Line Item Detail 11/8/2016 Account Description Account Number Description / Justification Initial Budget Amendment No 2 Amended Budget #314 - Railroad Grade Separation Projects Fund Expenditures Capital Outlays Capital Outlays Revenues FHWA Direct Earmark Funds Transfer in - #301 Transfer in - #312 314.000.143.595.xx.xx.xx - Barker Rd/BNSF Grade Separation 314.000.223.595.xx.xx.xx - Pines Rd Underpass @ BNSF & Trent 314.000.143.333.20.20 314.000.143.397.30.10 314.000.223.397.31.20 #402 - Stormwater Management Fund Expenditures Capital outlay Street Sweeping Revenues FEMA Grant Proceeds Total expenditures - Barker Rd/BNSF Grade Separation Grant - Barker Rd/BNSF Grade Separation REET - Pines Rd Underpass @ BNSF & Trent Total revenues 402.000.xxx.595.xx.xx.xx - Various Projects 402.402.000.531.36.47.06 - Windstorm -related street sweeping Total expenditures 402.402.000.374.97.03 - FEMA Grant for windstorm damage #403 - Aquifer Protection Area Fund Expenditures Capital Outlay Capital Outlay Revenues Spokane County APA Fee Dept of Ecology Grant Total revenues 403.000.198.595.xx.xx.xx - Sprague - Park to University LID 403.000.xxx.595.xx.xx.xx - Various capital projects Total expenditures 403.000.000.337.38.00 - Revised Estimate 403.000.198.334.03.10 - Grant program delayed Total revenues Totals Across all Funds Total revenues Total expenditures 0 250,000 250,000 0 500,000 500,000 750,000 0 230,000 230,000 0 20,000 20,000 0 500,000 500,000 750,000 576,100 (425,000) 151,100 0 50,000 50,000 (375,000) 0 48,800 48,800 48,800 2,000,000 (2,000,000) 0 0 425,000 425,000 (1,575,000) 500,000 (100,000) 400,000 1,500,000 (1,500,000) 0 (1,600,000) 2,091,072 (3,303,942) Page 6 of 6 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 8, 2016 Department Director Approval: Check all that apply: ❑ consent ❑ old business ® new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Second Reading of Proposed Ordinance #16-017 Adopting the 2017 Budget. GOVERNING LEGISLATION: State budget law. PREVIOUS COUNCIL ACTION TAKEN: To date the Council has heard presentations on the 2017 Budget on six previous occasions including two public hearings. At the meeting on October 25, 2016, Council advanced Ordinance #16-017 adopting the 2017 Budget to a second reading. BACKGROUND: This marks the seventh occasion where the Council will discuss the 2017 Budget including two public hearings. The 2017 Budget development calendar of Council meetings on this topic follows: • June 14 • August 9 • September 13 • September 27 • October 11 • October 25 • November 8 Council Budget Workshop Admin report: Estimated 2017 revenues and expenditures Public hearing #1 on 2017 revenues and expenditures City Manager's presentation of preliminary 2017 Budget Public hearing #2 on 2017 Budget First reading on ordinance adopting the 2017 Budget Second reading on ordinance adopting the 2017 Budget 2017 Budget Overview: • The 2017 Budget currently includes appropriations of $80,739,873 including $23,577,550 in capital expenditures, comprised in -part of: o $7,166,649 in Fund #303 Street Capital Projects o $3,904,182 in Fund #309 Park Capital Projects o $3,000,000 in Fund #311 Pavement Preservation including $953,200 financed by the General Fund o $5,344,219 related to the new City Hall building in Fund #313 City Hall Construction o $1,970,000 in Fund #314 Railroad Grade Separation Projects for the design phases of the Barker Road and Pines Road Grade Separation projects o $980,000 in Fund #402 Stormwater Management and Fund #403 Aquifer Protection Area projects • To partially offset the $23,577,550 in capital costs, we anticipate $8,041,108 in grant revenues which results in 34.1% of capital expenditures being covered with State and Federal money. • Budgets will be adopted across 25 separate funds. • The full time equivalent employee (FTE) count will be 88.4 employees compared to 87.4 in the prior year as a result of one FTE being added for the new City Hall Operations & Maintenance Department. 1 Pertaining Specifically to the General Fund: • The 2017 recurring revenue estimate of $41,462,500 is $1,741,072 or 4.38% greater than the proposed 2016 amended budget of $39,721,428. • The 2017 recurring expenditure proposal of $40,053,822 is $346,389 or 0.87% greater than the proposed 2016 amended appropriation of $39,707,433. • General Fund recurring expenditures have been held to an increase of no greater than 1%, as was directed by Council. • Recurring revenues currently exceed recurring expenditures by $1,408,678 or 3.40% of recurring revenues. • Nonrecurring revenues total $530,925 and include: o $40,425 as a transfer in from the Solid Waste Fund #106 as a repayment to the General Fund for various studies and fees related to the Solid Waste program paid out of the General Fund in the years of 2013 and 2014. The repayment will occur over five years beginning in 2015 at an annual amount of $40,425. o $490,500 as a transfer in from the Civic Facilities Capital Projects Fund #310, which represents amounts that were set aside in Fund #310 in prior years for years in which the City would have both a lease payment and bond payment for the new City Hall building. • Nonrecurring expenditures total $2,389,850 and include: o $100,000 for Information Technology expenditures including: ■ $20,000 for four copiers to replace those that have reached end of life ■ $80,000 for IT capital items for technology set-up at the new City Hall o $513,100 for the last year of the lease at the current City Hall location o $145,000 for the Police Department CAD / RMS o $50,000 for retail recruitment services o $12,000 for repair of drain pipes and gutter lines at the pools o $345,000 for replacement of the Great Room audio/visual equipment at CenterPlace o $24,750 for carpet replacement in various rooms at CenterPlace o $1,200,000 transfer out to the Railroad Grade Separation Projects Fund #314 to fund the design of the Pines Road Grade Separation project. • The total of 2017 recurring and nonrecurring expenditures exceeds total revenues by $450,247 — and this is entirely a result of the one-time/nonrecurring expenditures. • The projected ending fund balance of the General Fund at the end of 2017 is currently $22,852,588 or 57.05% of recurring expenditures. 2 Other Funds: 2017 Budget appropriations (expenditures) in the other funds total $38,296,201 as follows: Fund Number Fund Name 2017 Appropriation 101 Street Fund 103 Paths and Trails Fund 104 Hotel / Motel Tax - Tourism Facilities Fund 105 Hotel / Motel Tax Fund 106 Solid Waste Fund 107 PEG Fund 120 CenterPlace Operating Reserve Fund 121 Service Level Stabilization Reserve Fund 122 Winter Weather Reserve Fund 123 Civic Facilities Replacement Fund 204 Debt Service Fund 301 REET 1 Capital Projects Fund 302 REET 2 Capital Projects Fund 303 Street Capital Projects Fund 309 Parks Capital Projects Fund 310 Civic Facilities Capital Projects Fund 311 Pavement Preservation Fund 312 Capital Reserve Fund 313 City Hall Construction Fund 314 Railroad Grade Separation Projects Fund 402 Stormwater Management Fund 403 Aquifer Protection Area Fund 501 Equipment Rental and Replacement Fund 502 Risk Management Fund 4,851,244 0 0 634, 000 151,800 262,500 0 0 500, 000 0 940, 000 1,456,986 1,913,134 7,166, 649 3,904,182 490,500 3,050,000 2,321,915 5,344,219 1,970,000 2,459,072 530, 000 0 350, 000 38, 296, 201 Primary sources of revenues in these other funds include: • Motor Vehicle Fuel Tax revenue that is collected by the State and remitted to the Street Fund is anticipated to be $2,040,300. • Telephone Tax revenues remitted to the City that supports Street Fund operations and maintenance are anticipated to be $2,200,000. • Real Estate Excise Tax (REET) revenues that are in large part used to match grant financed street projects are anticipated to total $1,600,000. • Hotel / Motel Tax revenues that are dedicated to the promotion of visitors and tourism are anticipated to be $957,000 ($580,000 in Fund #105 and $377,000 in Fund #104). • Stormwater Management Fees are estimated at $1,860,000. • Aquifer Protection Area Fees are estimated at $460,000. • Grant Revenues offsetting capital project costs are estimated at $8,041,108 o Fund #106 — Solid Waste Fund - $26,800 o Fund #303 — Street Capital Projects - $3,756,320 o Fund #309 — Parks Capital Projects - $3,217,267 o Fund #311 — Pavement Preservation - $340,800 o Fund #314 — Railroad Grade Separation Projects - $489,921 o Fund #402 — Stormwater Fund - $210,000 3 The City's 2017 Budget is adopted at a fund level as follows: General Fund Street Fund Paths & Trails Fund Hotel/Motel Tax - Tourism Facilities Fund Hotel/Motel Tax Fund Solid Waste PEG Fund CenterPlace Operating Reserve Fund Service Level Stabilization Fund Winter Weather Reserve Fund City Facilities Repair & Replacement LTGO Bond Debt Service Fund REET 1 Capital Projects Fund REET 2 Capital Projects Fund Street Capital Projects Park Capital Projects Fund Civic Facilities Capital Projects Fund Pavement Preservation Fund Capital Reserve Fund City Hall Construction Fund Railroad Grade Separation Projects Fund 001 101 103 104 105 106 107 120 121 122 123 204 301 302 303 309 310 311 312 313 314 23, 302, 835 1,468, 077 37,254 559,347 199,001 42,874 236,682 300,000 5,468,289 500,000 0 4,049 1,383,899 1,897,795 75,538 10,561 1,329,214 2,419,741 3,899,601 5,344,219 0 41, 993,425 4,403,168 8,600 377,000 580,500 151,800 80,000 0 21,900 600 0 935,951 801,700 801,700 7,166,649 3,939,982 1,200 2,682,300 1,000 0 1,970,000 65,296,260 5,871,245 45,854 936,347 779,501 194,674 316,682 300,000 5,490,189 500,600 0 940,000 2,185, 599 2,699,495 7,242,187 3,950,543 1,330,414 5,102, 041 3,900,601 5,344,219 1,970,000 42,443,672 4,851,244 0 0 634,000 151,800 262,500 0 0 500,000 0 940,000 1,456, 986 1,913,134 7,166,649 3,904,182 490,500 3,050,000 2,321,915 5,344,219 1,970,000 22, 852, 588 1,020,001 45,854 936,347 145,501 42,874 54,182 300,000 5,490,189 600 0 0 728,613 786,361 75,538 46,361 839,914 2,052,041 1,578,686 0 0 48, 478, 976 65, 917, 475 114, 396, 451 77, 400, 801 36, 995, 650 Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund Street Fund Paths & Trails Fund Hotel/Motel Tax - Tourism Facilities Fund Hotel/Motel Tax Fund Solid Waste PEG Fund CenterPlace Operating Reserve Fund Service Level Stabilization Fund Winter Weather Reserve Fund City Facilities Repair & Replacement LTGO Bond Debt Service Fund REET 1 Capital Projects Fund REET 2 Capital Projects Fund Street Capital Projects Park Capital Projects Fund Civic Facilities Capital Projects Fund Pavement Preservation Fund Capital Reserve Fund City Hall Construction Fund Railroad Grade Separation Projects Fund 001 101 103 104 105 106 107 120 121 122 123 204 301 302 303 309 310 311 312 313 314 23, 302, 835 1,468, 077 37,254 559,347 199,001 42,874 236,682 300,000 5,468,289 500,000 0 4,049 1,383,899 1,897,795 75,538 10,561 1,329,214 2,419,741 3,899,601 5,344,219 0 41, 993,425 4,403,168 8,600 377,000 580,500 151,800 80,000 0 21,900 600 0 935,951 801,700 801,700 7,166,649 3,939,982 1,200 2,682,300 1,000 0 1,970,000 65,296,260 5,871,245 45,854 936,347 779,501 194,674 316,682 300,000 5,490,189 500,600 0 940,000 2,185, 599 2,699,495 7,242,187 3,950,543 1,330,414 5,102, 041 3,900,601 5,344,219 1,970,000 42,443,672 4,851,244 0 0 634,000 151,800 262,500 0 0 500,000 0 940,000 1,456, 986 1,913,134 7,166,649 3,904,182 490,500 3,050,000 2,321,915 5,344,219 1,970,000 22, 852, 588 1,020,001 45,854 936,347 145,501 42,874 54,182 300,000 5,490,189 600 0 0 728,613 786,361 75,538 46,361 839,914 2,052,041 1,578,686 0 0 48, 478, 976 65, 917, 475 114, 396, 451 77, 400, 801 36, 995, 650 Storm water Management Fund Aquifer Protection Area Fund Equipment Rental & Replacement Fund Risk Management Fund Total of all Funds 402 403 501 502 1,876,010 896,660 1,025,997 194,383 2,072,500 460,000 185,029 350,000 3,948,510 1,356,660 1,211,026 544,383 2,459,072 530,000 0 350,000 1,489,438 826,660 1,211,026 194,383 3,993,050 52,472,026 3,067,529 68, 985, 004 7,060,579 121,457,030 3,339,072 80, 739, 873 3,721,507 40, 717,157 OPTIONS: State law requires the City to adopt a budget prior to December 31. adopt the budget as presented or alter it as they deem necessary. RECOMMENDED ACTION OR MOTION: Move to approve Ordinance #16-017 2017 Budget. BUDGET/FINANCIAL IMPACTS: Adoption of Ordinance #16-017 concludes the development process and establishes the final budget including estimated r appropriations. STAFF CONTACT: Chelsie Taylor, Finance Director ATTACHMENTS: • Ordinance #16-017 • 2017 Budget Council may adopting the 2017 Budget evenues and 4 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Storm water Management Fund Aquifer Protection Area Fund Equipment Rental & Replacement Fund Risk Management Fund Total of all Funds 402 403 501 502 1,876,010 896,660 1,025,997 194,383 2,072,500 460,000 185,029 350,000 3,948,510 1,356,660 1,211,026 544,383 2,459,072 530,000 0 350,000 1,489,438 826,660 1,211,026 194,383 3,993,050 52,472,026 3,067,529 68, 985, 004 7,060,579 121,457,030 3,339,072 80, 739, 873 3,721,507 40, 717,157 OPTIONS: State law requires the City to adopt a budget prior to December 31. adopt the budget as presented or alter it as they deem necessary. RECOMMENDED ACTION OR MOTION: Move to approve Ordinance #16-017 2017 Budget. BUDGET/FINANCIAL IMPACTS: Adoption of Ordinance #16-017 concludes the development process and establishes the final budget including estimated r appropriations. STAFF CONTACT: Chelsie Taylor, Finance Director ATTACHMENTS: • Ordinance #16-017 • 2017 Budget Council may adopting the 2017 Budget evenues and 4 DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 16-017 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING A BUDGET FOR THE PERIOD JANUARY 1, 2017 THROUGH DECEMBER 31, 2017; APPROPRIATING FUNDS; ESTABLISHING SALARY SCHEDULES FOR ESTABLISHED POSITIONS; AND OTHER MATTERS RELATING THERETO. WHEREAS, State law requires the City Manager to prepare a preliminary budget for the City of Spokane Valley at least 60 days before the beginning of the City fiscal year beginning January 1, 2017 and ending December 31, 2017; and 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 and October 11, 2016. The City Council met and invited public comment in the City Council Chambers during each public hearing; and WHEREAS, proper notice was given and the preliminary budget was filed with the City Clerk September 27, 2016; and WHEREAS, the City Council desires to adopt the 2017 budget, including all allowances, and an appropriation for each fund; and WHEREAS, the City of Spokane Valley property tax levy in 2016 for collection in 2017, will be $11,489,517.62, which represents a 0% increase in the 2017 levy. This levy is exclusive of additional revenue resulting from new construction, improvements to property, any increase in the value of State assessed property, any annexations that have occurred, and refunds made. NOW, THEREFORE, the City Council of the City of Spokane Valley do ordain as follows: Section 1. Adoption of 2017 Budget. The budget for the City of Spokane Valley for the year 2017 is adopted at the fund level. The final budget for 2017 is attached hereto, and by this reference is incorporated herein pursuant to RCW 35A.33.075. For summary purposes, the total estimated appropriations for each separate fund, plus the aggregate total for all such funds, is set forth as follows: Ordinance 16-017 Adopting 2017 Budget Page 1 of 3 DRAFT General Fund 001 Street Fund 101 Paths & Trails Fund 103 Hotel/Motel Tax - Tourism Facilities Fund 104 Hotel/Motel Tax Fund 105 Solid Waste 106 PEG Fund 107 CenterPlace Operating Reserve Fund 120 Service Level Stabilization Fund 121 Winter Weather Reserve Fund 122 City Facilities Repair & Replacement 123 LTGO Bond Debt Service Fund 204 REET 1 Capital Projects Fund 301 REET 2 Capital Projects Fund 302 Street Capital Projects 303 Park Capital Projects Fund 309 Civic Facilities Capital Projects Fund 310 Pavement Preservation Fund 311 Capital Reserve Fund 312 City Hall Construction Fund 313 Railroad Grade Separation Projects Fund 314 23,302,835 41,993,425 65,296,260 1,468,077 4,403,168 5,871,245 37,254 8,600 45,854 559,347 377,000 936,347 199,001 580,500 779,501 42,874 151,800 194,674 236,682 80,000 316,682 300,000 0 300,000 5,468,289 21,900 5,490,189 500,000 600 500,600 0 0 0 4,049 935,951 940,000 1,383,899 801,700 2,185,599 1,897,795 801,700 2,699,495 75,538 7,166,649 7,242,187 10,561 3,939,982 3,950,543 1,329,214 1,200 1,330,414 2,419,741 2,682,300 5,102,041 3,899,601 1,000 3,900,601 5,344,219 0 5,344,219 0 1,970,000 1,970,000 42,443,672 22,852,588 4,851,244 1,020,001 0 45,854 0 936,347 634,000 145,501 151,800 42,874 262,500 54,182 0 300,000 0 5,490,189 500,000 600 0 0 940,000 0 1,456,986 728,613 1,913,134 786,361 7,166,649 75,538 3,904,182 46,361 490,500 839,914 3,050,000 2,052,041 2,321,915 1,578,686 5,344,219 0 1,970,000 0 48,478,976 65,917,475 114,396,451 77,400,801 36,995,650 Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund 001 Street Fund 101 Paths & Trails Fund 103 Hotel/Motel Tax - Tourism Facilities Fund 104 Hotel/Motel Tax Fund 105 Solid Waste 106 PEG Fund 107 CenterPlace Operating Reserve Fund 120 Service Level Stabilization Fund 121 Winter Weather Reserve Fund 122 City Facilities Repair & Replacement 123 LTGO Bond Debt Service Fund 204 REET 1 Capital Projects Fund 301 REET 2 Capital Projects Fund 302 Street Capital Projects 303 Park Capital Projects Fund 309 Civic Facilities Capital Projects Fund 310 Pavement Preservation Fund 311 Capital Reserve Fund 312 City Hall Construction Fund 313 Railroad Grade Separation Projects Fund 314 23,302,835 41,993,425 65,296,260 1,468,077 4,403,168 5,871,245 37,254 8,600 45,854 559,347 377,000 936,347 199,001 580,500 779,501 42,874 151,800 194,674 236,682 80,000 316,682 300,000 0 300,000 5,468,289 21,900 5,490,189 500,000 600 500,600 0 0 0 4,049 935,951 940,000 1,383,899 801,700 2,185,599 1,897,795 801,700 2,699,495 75,538 7,166,649 7,242,187 10,561 3,939,982 3,950,543 1,329,214 1,200 1,330,414 2,419,741 2,682,300 5,102,041 3,899,601 1,000 3,900,601 5,344,219 0 5,344,219 0 1,970,000 1,970,000 42,443,672 22,852,588 4,851,244 1,020,001 0 45,854 0 936,347 634,000 145,501 151,800 42,874 262,500 54,182 0 300,000 0 5,490,189 500,000 600 0 0 940,000 0 1,456,986 728,613 1,913,134 786,361 7,166,649 75,538 3,904,182 46,361 490,500 839,914 3,050,000 2,052,041 2,321,915 1,578,686 5,344,219 0 1,970,000 0 48,478,976 65,917,475 114,396,451 77,400,801 36,995,650 Storm water Management Fund 402 1,876,010 2,072,500 3,948,510 Aquifer Protection Area Fund 403 896,660 460,000 1,356,660 Equipment Rental & Replacement Fund 501 1,025,997 185,029 1,211,026 Risk Management Fund 502 194,383 350,000 544,383 Total of all Funds 2,459, 072 1,489,438 530,000 826,660 0 1,211,026 350,000 194,383 3,993,050 52,472,026 3,067,529 68, 985, 004 7,060,579 121,457, 030 3,339,072 80, 739, 873 3,721,507 40, 717,157 The total balance of all funds appropriated for 2017 is $80,739,873. Section 2. Transmittal of Budget. A complete copy of the budget as adopted, together with a copy of this Ordinance, shall be transmitted by the City Clerk to the Division of Municipal Corporations in the Office of the State Auditor and to the Association of Washington Cities. Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 4. Effective Date. This Ordinance shall be in full force and effect five days after the date of publication of this Ordinance or a summary thereof in the official newspaper of the City. Ordinance 16-017 Adopting 2017 Budget Page 2 of 3 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Storm water Management Fund 402 1,876,010 2,072,500 3,948,510 Aquifer Protection Area Fund 403 896,660 460,000 1,356,660 Equipment Rental & Replacement Fund 501 1,025,997 185,029 1,211,026 Risk Management Fund 502 194,383 350,000 544,383 Total of all Funds 2,459, 072 1,489,438 530,000 826,660 0 1,211,026 350,000 194,383 3,993,050 52,472,026 3,067,529 68, 985, 004 7,060,579 121,457, 030 3,339,072 80, 739, 873 3,721,507 40, 717,157 The total balance of all funds appropriated for 2017 is $80,739,873. Section 2. Transmittal of Budget. A complete copy of the budget as adopted, together with a copy of this Ordinance, shall be transmitted by the City Clerk to the Division of Municipal Corporations in the Office of the State Auditor and to the Association of Washington Cities. Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 4. Effective Date. This Ordinance shall be in full force and effect five days after the date of publication of this Ordinance or a summary thereof in the official newspaper of the City. Ordinance 16-017 Adopting 2017 Budget Page 2 of 3 DRAFT PASSED by the City Council this day of November, 2016. ATTEST: L.R. Higgins, Mayor Christine Bainbridge, City Clerk Approved As To Form: Office of the City Attorney Date of Publication: Effective Date: Ordinance 16-017 Adopting 2017 Budget Page 3 of 3 Spke� jUalley° 2017 Annual Budget ♦••••••••••••••••••••••••••••••••••••••••••••♦ • • • • • City of Spokane Valley, Washington • • Annual Budget • For the Fiscal Year • • • • 1 1 1 1 1 1 1 1 1 1 1 1 • • • • • • • January 1 through December 31, 2017 City Hall 11707 East Sprague Avenue Spokane Valley, WA 99206 Website: www.spokanevalley.org Phone: (509) 921-1000 "A community of opportunity where individuals and families can grow and play, and businesses will flourish and prosper." • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • This page left intentionally blank. Table of Contents City of Spokane Valley, WA Spokane County January 1, 2017 through December 31, 2017 Summary of Councilmembers III City Manager's Budget Message 1 Finance Director's Message - About the 2017 Budget and Budget Development Process 9 Budget Summary 25-40 Revenues by Fund and Type 41-48 Expenditures by Fund and Department 49-52 General Fund Department Changes from 2016 to 2017 53-55 #001- General Fund- Expenditures by Department by Type City Council 56 City Manager 57 Public Safety 59 Deputy City Manager 62 Finance 63 Human Resources 64 Public Works 65 City Hall Operations and Maintenance 66 Community & Economic Development 67 Parks & Recreation 71 General Government 77 Special Revenue Funds #101 - Street Fund 79 #103 - Paths & Trails Fund 81 #104 - Hotel / Motel Tax —Tourism Facilities Fund 82 #105 - Hotel / Motel Tax Fund 82 #106 - Solid Waste Fund 83 #107 - PEG Fund 84 #120 - CenterPlace Operating Reserve Fund 85 #121 - Service Level Stabilization Reserve Fund 85 #122 - Winter Weather Reserve Fund 86 #123 - Civic Facility Replacement Fund 86 City of Spokane Valley 2017 Budget Debt Service Funds #204 - Limited Tax General Obligation (LTGO) Fund 87 Capital Projects Funds #301 - REET 1 Capital Projects Fund 88 #302 - REET 2 Capital Projects Fund 89 #303 - Street Capital Projects Fund 90 #309 - Parks Capital Projects Fund 92 #310 - Civic Facilities Capital Projects Fund 93 #311 - Pavement Preservation Fund 94 #312 - Capital Reserve Fund 97 #313 - City Hall Construction Fund 98 #314 — Railroad Grade Separation Projects Fund 99 Enterprise Funds #402 - Stormwater Management Fund 100 #403 - Aquifer Protection Area Fund 102 Internal Service Funds #501 - Equipment Rental & Replacement Fund 103 #502 - Risk Management Fund 105 Total of Capital Expenditures for 2017 106 FTE Count by Year — 2011 through 2017 107 Work Force Comparison 108 Appendix A, Employee Position Classification and Salary Schedule 109 Glossary of Budget Terms 110 11 City Council Members Rod Higgins, Mayor Position #1 Arne Woodard, Deputy Mayor Position #3 Caleb Collier Position #2 Pam Haley Position #5 Michael Munch Position #7 Ed Pace Position #4 Sam Wood Position #6 Staff Mark Calhoun, Acting City Manager Chelsie Taylor, Finance Director John Hohman, Community and Economic Development Director Mike Stone, Parks & Recreation Director Eric Guth, Public Works Director Cary Driskell, City Attorney Christine Bainbridge, City Clerk •.....••••••••••••••••••••••••••••••••••••••••••••••••••••••♦ This page left intentionally blank. Spokane flValley City Manager's Budget Message 2017 Annual Budget Dear Citizens, Mayor and City Council of Spokane Valley: Sound Financial Position It is with pleasure that I present the attached 2017 Budget for the City of Spokane Valley. The City remains financially strong and continues to benefit from a history of prudent financial decisions that have been made since our 2003 incorporation. Consistently responsible budgeting and restrained spending has helped us achieve key Fiscal Policies and maintain an ending General Fund Balance equivalent to six -months of general fund operations. The City of Spokane Valley is an excellent example of how a City provides key services to the community while holding down taxes, fees and other charges. Additionally, our per capita employee count and personnel expenses are among the lowest (if not the lowest) of comparable size cities in the state and around the U.S. The City's chief budget priorities are public safety, pavement preservation, transportation and infrastructure (including railroad grade separations) and economic development. Ensuring that we've committed adequate resources to these activities accounts for much of the effort that staff collectively dedicates to the annual development of both our Business Plan and this budget document. We recognize that to ensure continued financial stability, it is imperative that recurring annual revenues be greater than or equal to recurring annual expenditures and this goal has again been achieved in the 2017 General Fund Budget. Beyond recurring operating activity however, due to our excellent financial condition, we are afforded the opportunity to use the portion of the General Fund balance that exceeds 50% for nonrecurring expenditures in pursuit of programs important to the City Council and community. Recent examples include General Fund contributions to each phase of the Appleway Trail project, Sullivan Road West Bridge Replacement project, Appleway road landscaping, a cash "down payment" for construction of a new City Hall and beginning to set money aside for future railroad grade separation projects. Fiscal Policies The Fiscal Policies adopted by the City Council are important for the long-range fiscal strength of Spokane Valley. These policies appropriately dictate if the economic conditions deteriorate, future budget reductions may be triggered. 1 Financial Management — The City proposes to: 1. Maintain basic service levels with minimal resources to achieve success. 2. Minimize personnel costs/overhead by continuing to contract for many services. 3. Continue the six-year Business Plan process. 4. Leverage City funds with grant opportunities. 5. Minimize City debt with a pay as you go philosophy. o The State of Washington sets the maximum level of allowable debt for cities based on assessed value of property. The City of Spokane Valley currently utilizes only 2.35% of its total debt capacity, and more importantly, only 11.74% of non -voted bond capacity. This reflects an exceptionally low debt burden. 6. Strive to prioritize spending in the annual budget process and minimize mid -year addition of projects and appropriations. Financial Objectives - The City's financial objectives are: 1. Adopt a General Fund Budget with recurring revenues equal to, or greater than recurring expenditures. 2. Maintain a minimum General Fund Ending Balance of at least 50% of recurring expenditures, which is the equivalent of six months of general fund operations. 3. If necessary, utilize the Service Level Stabilization Reserve Fund ($5.5 million) to maintain ending fund balance minimum. 4. Commitment to the strategy the Service Level Stabilization Reserve Fund will not reduce below $3.3 million (60% of $5.5 million). 5. Maintain the 2017 property tax assessment the same as 2016 with the exception of new construction. As in the previous seven years, the City will forego the one -percent annual increase to property tax allowable by RCW 84.52.050. We anticipate this will result in a levy of $11,489,500 plus estimated new construction of $125,000 for a total levy of $11,614,500. The allowable potential increase will be banked for future use as provided by law. This effectively makes the eighth year in a row that we have not increased our City property tax assessment. 6. Grow our economy so the existing tax base can support basic programs. Commitment — By committing to these policies and the checks and balances they afford, the City will ensure financial sustainability well into the future. 2017 Budget Highlights Moderate Growth in Recurring General Fund Expenditures: Investing in essential core services identified by the Council and community establishes the baseline costs we have included in this budget. Similar to the trend experienced in most jurisdictions, we find that the cost of providing these services typically increases at a faster rate than the moderate growth we see in the underlying tax revenues that support essential core services. With that said however, City staff have met the challenge posed by Council to prepare a recurring General Fund budget with no greater than 1% growth, and in fact, the proposed 2017 Budget reflects expenditure growth of just 0.87% while at the same time maintaining historic levels of service. Public Safety Costs: Over the years Council has consistently committed to the maintenance and at times enhancement of public safety service levels and this is again reflected in the 2017 Budget where public safety costs including law enforcement, courts and jail related services 2 total $24,950,372 which is an amount equal to 215% of anticipated property tax collections (= $24,950,372 / $11,614,500). City Hall Construction Project: Since incorporation in 2003 the City has leased City Hall space from Northwest Christian Schools and over that time frame the City, like many of our residents, has debated whether we were better off to continue renting space or owning our own home. In 2015, the City made the decision to construct a new City Hall at a then estimated cost of $14.4 million. Through the balance of 2015 and into 2016 the City acquired land, contracted with an architect for design services, and finally in June 2016 began construction. With all costs for the facility finally committed, we now know the actual cost will be $14.15 million or $250,000 less than our initial target. We are financing the project with a combination of $6.30 million in cash we set aside for this project and $7.85 million in net LTGO bond proceeds. Repayment of the bonds will take place over the 30 -year period of 2016 through 2045 at a fixed average annual payment of $399,888 which is $34,712 less per year than the City's current annual lease payment of $434,600. We recognize that occupying a building we own will result in a number of costs we haven't historically borne as a tenant. This will include a variety of facility maintenance expenses including the possibility of hiring an additional employee (more fully articulated in the following discussion). In acknowledgment of this, the 2017 General Fund Recurring Budget includes a new department titled "City Hall Operations and Maintenance" that will account for the variety of costs we anticipate we will incur. The budget amount of $303,918 is included in the budget and is part of the 0.87% increase noted above. Staffing Levels: Staffing levels in 2017 are currently anticipated to increase by 1.0 full-time equivalent employee (FTE) to 88.4 FTEs from the 87.4 FTEs included in the 2016 Budget. The addition of the single FTE is directly related to the fact that in 2017 we will be in a City Hall structure that we own and operate as opposed to the space we have leased from Northwest Christian Schools since the City's incorporation in 2003. While in the leased space, we have been the tenant and relied upon the lessor/landlord to address all facility maintenance issues including snow removal from parking lots and sidewalks; janitorial services; heating and cooling system maintenance and repairs; grounds maintenance; and general facility maintenance. Once in our own facility we will be responsible for all of these services, so between now and our anticipated September 2017 occupancy we will need to determine whether we can best address our needs by either hiring an employee or contracting out the variety of services. Beyond maintenance at City Hall we believe this position could also be utilized at the City's Police Precinct, CenterPlace and our maintenance shop. At this point we consider the expenditure appropriation as a "holding -place" for the necessary budgetary authority but rest assured we will hire an additional employee only if we believe we can keep them meaningfully engaged in meeting the City's maintenance needs. Taking into consideration that we contract for police services and are served by Fire Districts and a Library District, for a major city we are operating substantially below the normal employee count at a significantly reduced cost. Spokane Valley personnel costs are approximately 20% of the total General Fund recurring expenditures. Spokane Valley staff levels average about one employee for every 1,065 citizens while comparable cities in the State of Washington with populations between 30,000 and 100,000 average one employee for every 262 citizens. While the survey is not scientific, the low employee per citizen ratio indicates the City of Spokane Valley is operating at a low, yet effective staffing level. Since incorporation, the City has taken a conservative approach to adding new staff and 3 continues to have the lowest employee count of any Washington city with a population of 50,000 or greater. By all comparisons, the City of Spokane Valley is a lean, productive City government. Pavement Preservation Fund: Beginning in 2012, the City initiated spending of general fund, special revenue fund and capital project fund revenues and reserves for the purpose of financing our street preservation efforts. In 2017, our citizens will again see an aggressive program of repaving our roadways. Some may question paving roads that "don't look so bad" but the truth is the best time to repave is before a road deteriorates to the point that full reconstruction is necessary. Full reconstruction can cost substantially more than pavement preservation treatments such as crack sealing or grinding and repaving. This is why the City of Spokane Valley has committed critical financial resources to the preservation of our transportation infrastructure. We hope you are as proud of our fine road system as we are! For 2017, projected expenditures for preservation are $3,000,000 and we will pay for this with a combination of $340,800 in grants, $367,700 in Pavement Preservation Fund #311 reserves and $2,341,500 in transfers from other City funds consisting of: • $953,200 from the General Fund • $ 67,342 from Street O&M Fund #101 • $660,479 from REET 1 Capital Projects Fund #301 • $660,479 from REET 2 Capital Projects Fund #302 While Pavement Preservation is one of our highest service and budget priorities we find that sustaining historic levels of service is becoming more of a challenge with each passing year. The following section titled "Challenges" articulates the issues we are currently facing. Challenges Beyond the annual challenge of balancing the General Fund budget, the City of Spokane Valley has a number of on-going financial challenges. 1. Declining revenues in Street O&M Fund #101 that will impact our future ability to deliver historic service levels This Fund depends upon a combination of gas and telephone tax receipts. • Because the gas tax is a flat amount per gallon, and because each generation of newer vehicles get better gas mileage, we find our gas tax revenues have recently hovered somewhere between either flat or declining. Due to the State Legislature's increase in the gas tax we are seeing a bit of an increase in 2016 and this is projected to continue into 2017. • The 6% telephone utility tax generated $3.1 million in the first year of implementation in 2009. Since that time however we have experienced a steady decline and at this point are projecting 2017 revenues of just $2,200,000. 2. Balancing the cost of pavement preservation against other transportation and infrastructure needs • Pavement preservation has historically been financed from a combination of sources including: o General Fund dollars, o Street Fund money, o real estate excise tax (REET) receipts, 4 o grants, and o Civic Facility Replacement Fund #123 (Fund #123) reserves that were dedicated towards this purpose. Because Fund #123 reserves will be fully depleted in 2016, beginning in 2017 the City will be forced to dedicate more REET receipts towards pavement preservation if we wish to maintain historic levels of funding. • Street construction and reconstruction projects are typically financed through a combination of state and federal grants plus a City match that normally comes from REET receipts. The more we apply REET dollars towards pavement preservation projects, the less able we are to leverage this revenue source towards street construction and reconstruction projects. If one assumes we are able to obtain street construction grants requiring a 20% City match, then every $1 of REET money we set aside for this purpose leverages a $5 project. 3. Railroad Grade Separation and Quiet Zone Proiects (overpasses and underpasses) Bridging the Valley is a proposal to separate vehicle traffic from train traffic in the 42 mile corridor between Spokane and Athol, ID. The separation of railroad and roadway grades in this corridor is intended to promote future economic growth, traffic movement, traffic safety, aquifer protection in the event of an oil spill, and train whistle noise abatement. The underlying study outlined the need for a grade separation at four locations in Spokane Valley including: • Barker and Trent Road Overpass (estimated cost of $36.0 million), • Pines and Trent Underpass (estimated cost of $19.8 million), • Sullivan Road Overpass improvements (estimated cost of $16.1 million), and • Park Road Overpass (estimated cost of $19.0 million) Because grade separation projects are exceptionally expensive endeavors (totaling $90.9 million) and largely beyond our ability to finance through existing sources of internal revenue, the City has pursued grant funding from both the Federal and State Government over the past several years. We anticipate this is a discussion that will continue well into the future. 4. Grants and Declining Matching Funds City staff actively pursue funding commitments from other sources to help pay the cost of needed capital improvements related to pavement preservation; transportation including street construction and reconstruction; bridges; stormwater facilities; parks that benefit the community; and railroad grade separation projects. In 2017, a total of $23.58 million is budgeted to address capital projects and of this amount we anticipate $8.04 million (or 34.1%) of these costs will be offset with grant revenues. This figure is quite low in comparison to previous years and this is largely due to the City Hall project which is being financed with a combination of cash we set aside for this project and LTGO bond proceeds. If we exclude the $5.34 million budgeted for the City Hall project in 2017, the remaining capital projects total $18.24 million, of which $8.04 million (or 44.1 %) is offset by grant revenues. Following is a history of the percentage of capital projects we have been able to cover with grant revenues: • 2017 Budget = 44.1% • 2016 Budget = 56.6% • 2015 Budget = 66.2% • 2014 Budget = 70.2% • 2013 Budget = 83.0% • 2012 Budget = 65.0% • 2011 Budget = 48.0% 5 Much of the deviation from year to year revolves around the amount of cash the City applies towards projects but we are always on the lookout for grant revenues to offset our costs. The City has historically maintained a fairly aggressive capital construction program and we will strive to do so in the future. The Budget for 2017 Strong but Guarded. Recognizing that fiscal health is at the core of providing good public services, one of the most important tests of fiscal management is the ability of a municipal enterprise to maintain basic services during an economic downturn. The creation and ongoing maintenance of financial reserves since incorporation has served its intended purpose of providing Spokane Valley the means to sustain critical public services during the turbulent economic conditions that began in 2008 and only recently subsided. The 2017 budget again reflects a prudent and guarded increase in continuation of service delivery capabilities. These increases are carefully considered and well within the means of the City. Service delivery cannot grow faster than the economic development of the City. Balanced Budget: Means exactly what it says - expenses have been balanced with known or reasonably predictable revenues with no increase in property tax or in sales tax rates for the City (lodging tax rates are generally not paid by residents). The budget is designed to maintain the healthy, positive fund balance at year-end providing the City's cash flow needs without costly borrowing. In pursuit of fiscal responsibility, special attention is given to limiting the growth in new programs and financial commitments. This approach allows available resources to be put toward sustaining services consistent with the City Council's priorities for 2017 and beyond. Future Concepts: The budget process is not static and Council, the citizens, and staff must collectively remain vigilant in our observance of economic trends that may impact current and future forecasts. Even as the 2017 Budget is adopted, we must remain mindful of the future economic opportunities and threats that might influence our multi-year forecast. Examples of potential impacts and adaptive future concepts are as follows: Retail Improvement Strategy - The City is actively engaged in growing our economy and in 2016 completed a retail improvement study. The analysis provides us with a better understanding of our retail trade area, retail demand, and demographics, and it is a tool that we believe we can leverage to attract businesses and facilitate growth in the City. The plan provides the City with retail strategies to support both existing retail and encourage new retail in an effort to retain local dollars and attract spending from outside our city limits. Tourism Enhancement Study — The previously noted Retail Improvement Study indicated that tourism related spending in Spokane Valley is underperforming. In order to address that finding the City commissioned a tourism enhancement study whose purpose will ultimately be to improve tourism and lodging activity by increasing overnight stays and tourism related spending, including dining and shopping sectors. This study was split into two phases and the first phase, which was completed in the March of 2016, focused on developing strategies. The second phase, which is anticipated to be complete in the latter part of 2016, will consider the potential feasibility and return on investment of those strategies identified in the first phase. 6 Comprehensive Plan — The City is currently engaged in the process of updating its Comprehensive Plan which contains an economic development element. Included in this element will be a summary of the local economy; an assessment of strengths and weaknesses; and policies, programs and projects to foster economic growth. Additionally, strategies from the previously mentioned Retail Improvement and Tourism Enhancement studies are incorporated into the comp plan. Among other things, the plan also streamlines land uses by consolidating many zones and reducing many development requirements. Additionally the plan is also designed to provide flexibility in an effort to encourage market driven growth. Acknowledgments I would like to acknowledge the citizens, City Council and staff for a long history of conservative spending and prudent fiscal planning. By saving and conserving the taxpayers' money, and by adopting prudent long-term fiscal policies, the City can provide essential services and balance its budget for many years to come. The City Council has set a path to ensure the long-term financial sustainability of the City. The management staff and employees have worked together to develop Business Plans and 2017 budget recommendations to achieve the Council's goal of sustainability. The Citizens of Spokane Valley should be proud of the strong financial condition of their City. We invite your examination and questions regarding the 2017 Budget. Respectfully, AiA,LCAEL9i,„,- Mark Calhoun Acting City Manager This page left intentionally blank. Sjibkan•••■\ft.„ jValley 11707 E Sprague Ave Suite 106 • Spokane Valley WA 99206 509.921.1000 ♦ Fax: 509.921.1008 • cityhall@spokanevalley.org TO: City Manager and Members of the City Council FROM: Chelsie Taylor, Finance Director SUBJECT: About the 2017 Budget and Budget Development Process The budget includes the financial planning and legal authority to obligate public funds. Additionally, the budget provides significant policy direction by the City Council to the staff and community. As a result, the City Council, staff and public are involved in establishing the budget for the City of Spokane Valley. The budget serves four functions: 1. It is a Policy Document The budget functions as a policy document in that the decisions made within the budget will reflect the general principles or plans that guide the actions taken for the future. As a policy document, the budget makes specific attempts to link desired goals and policy direction to the actual day-to-day activities of the City staff. 2. It is an Operational Guide The budget of the City reflects its operation. Activities of each City function and organization have been planned, debated, formalized, and described in the following sections. This process will help to maintain an understanding of the various operations of the City and how they relate to each other and to the attainment of the policy issues and goals of the City Council. 3. It is a Link with the General Public The budget provides a unique opportunity to allow and encourage public review of City operations. The budget describes the activities of the City, the reason or cause for those activities, future implications, and the direct relationship to the citizenry. 4. It is a Legally Required Financial Planning Tool The budget is a financial planning tool, which has been its most traditional use. In this light, preparing and adopting a budget is a State law requirement of all cities as stated in Title 35A of the Revised Code of Washington (RCW). The budget must be adopted as a balanced budget and must be in place prior to the beginning of the City's fiscal year. The budget is the legal authority to expend public moneys and controls those expenditures by limiting the amount of the appropriation at the fund level. The revenues of the City are estimated, along with available cash carry -forward, to indicate funds available. The budget takes into account unforeseen contingencies and provides for the need for periodic adjustments. 9 2017 BUDGET DEVELOPMENT PROCESS Historically the City has utilized a budgeting approach that assumed for most functions of government that the current year's budget was indicative of the base required for the following year. However, with the recent volatility seen in the economy with the Great Recession, the City has moved to a Budget development process that consciously reviews service levels in each department and determines the appropriate level of funding that meets Council goals relative to available resources. The 2017 Budget development process began at the March 15, 2016 Council workshop where among other topics, Council and staff discussed the budget in general terms. In mid-April 2016 the Finance Department notified City Departments that their 2017 revenue and expenditure estimates were due by mid-May. Through the balance of May and early June, the City Manager's office and Finance Department worked to prepare budget worksheets that were communicated to the City Council at a Budget workshop held June 14, 2016. Following the workshop, the Finance Department continued work on the budget including refinements of revenue and expenditure estimates and through July and August, the Finance Department and City Manager reviewed updated budget projections. By the time the 2017 Budget is scheduled to be adopted on November 8, 2016, the Council will have had an opportunity to discuss it on seven separate occasions, including two public hearings to gather input from citizens: June 14 August 9 September 13 September 25 October 11 October 25 November 8 Council budget workshop Admin report: Estimated 2017 revenues and expenditures Public hearing #1 on 2017 revenues and expenditures City Manager's presentation of preliminary 2017 Budget Public hearing #2 on 2017 Budget First reading on ordinance adopting the 2017 Budget Second reading on ordinance adopting the 2017 Budget Once adopted, the final operating budget is published, distributed, and made available to the public. After the budget is adopted, the City enters a budget implementation and monitoring stage. Throughout the year, expenditures are monitored by the Finance Department and department directors to ensure that actual expenditures are in compliance with the approved budget. The Finance Department provides the City Manager and City Council with monthly reports to keep them abreast of the City's financial condition and individual department compliance with approved appropriation levels. Any budget amendments made during the year are adopted by City Council ordinance. The City Manager is authorized to transfer budgeted amounts within a fund; however, any revisions that alter the total expenditures of a fund, or that affect the number of authorized employee positions, salary ranges or other conditions of employment must be approved by the City Council. When the City Council determines that it is in the best interest of the City to increase or decrease the appropriation for a particular fund, it may do so by ordinance adopted by Council after holding one public hearing. 10 BUDGET PRINCIPLES • Department directors have primary responsibility for formulating budget proposals in line with City Council and City Manager priority direction, and for implementing them once they are approved. • The Finance Department is responsible for coordinating the overall preparation and administration of the City's budget. This function is fulfilled in compliance with applicable State of Washington statutes governing local government budgeting practices. • The Finance Department assists department staff in identifying budget problems, formulating solutions and alternatives, and implementing any necessary corrective actions. • Interfund charges will be based on recovery of costs associated with providing those services. • Budget amendments requiring City Council approval will occur through the ordinance process at the fund level prior to fiscal year end. • The City's budget presentation will be directed at displaying the City's services plan in a Council/constituent friendly format. • No long term debt will be incurred without identification of a revenue source to repay the debt. Long term debt will be incurred for capital purposes only. • The City will strive to maintain equipment replacement funds in an amount necessary to replace the equipment at the end of its useful life. Life cycle assumptions and required contributions will be reviewed annually as part of the budget process. New operations in difficult economic times may make it difficult to fund this principle in some years. • The City will pursue an ending general fund balance at a level of no less than 50% of recurring expenditures. This figure is based upon an evaluation of both cash flow and operating needs. BASIS OF ACCOUNTING AND BUDGETING Accounting Accounting records for the City are maintained in accordance with methods prescribed by the State Auditor under the authority of the Revised Code of Washington (RCW), Chapter 43.09.20, and in compliance with generally accepted accounting principles as set forth by the Governmental Accounting Standards Board. Basis of Presentation - Fund Accounting The accounts of the City of Spokane Valley are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of double - entry accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. The City's resources are allocated to and accounted for in individual funds depending on their intended purpose. The following are the fund types used by the City of Spokane Valley: 11 Governmental Fund Types Governmental funds are used to account for activities typically associated with state and local government operations. All governmental fund types are accounted for on a spending or "financial flows" measurement focus, which means that typically only current assets and current liabilities are included on related balance sheets. The operating statements of governmental funds measure changes in financial position, rather than net income. They present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. There are four governmental fund types used by the City of Spokane Valley: 1. General Fund This fund is the primary fund of the City of Spokane Valley. It accounts for all financial resources except those required or elected to be accounted for in another fund. 2. Special Revenue Funds These funds account for revenues that are legally restricted or designated to finance particular activities of the City of Spokane Valley. Special Revenue funds include: • #101 — Street Fund • #103 — Paths & Trails Fund • #104 — Hotel / Motel Tax — Tourism Facilities Fund • #105 — Hotel / Motel Tax Fund • #106 — Solid Waste Fund • #107 — PEG Fund • #120 — CenterPlace Operating Reserve Fund • #121 — Service Level Stabilization Reserve Fund • #122 — Winter Weather Reserve Fund • #123 — Civic Facilities Replacement Fund 3. Debt Service Funds These funds account for financial resources which are designated for the retirement of debt. Debt Service Funds are comprised of the #204 — LTGO Debt Service Fund. 4. Capital Proiect Funds These funds account for financial resources, which are designated for the acquisition or construction of general government capital projects. Capital Project Funds include: • #301 — REET 1 Capital Projects Fund • #302 — REET 2 Capital Projects Fund • #303 — Streets Capital Projects Fund • #309 — Parks Capital Projects Fund • #310 — Civic Facilities Capital Projects Fund • #311 — Pavement Preservation Fund • #312 — Capital Reserve Fund • #313 — City Hall Construction Fund • #314 — Railroad Grade Separation Projects Fund 12 Proprietary Fund Types A fifth type of fund classification are the Proprietary Funds that are used to account for activities similar to those found in the private sector where the intent of the governing body is to finance the full cost of providing services based on the commercial model which uses a flow of economic resources approach. Under this approach, the operating statements for the proprietary funds focus on a measurement of net income (revenues and expenses) and both current and non-current assets and liabilities are reported on related balance sheets. Their reported fund equity (total net assets) is segregated into restricted, unrestricted and invested in capital assets classifications. As described below, there are two generic fund types in this category: 1. Enterprise Funds These funds account for operations that provide goods or services to the general public and are supported primarily by user charges. This type of fund includes: • #402 — Stormwater Management Fund • #403 — Aquifer Protection Area Fund 2. Internal Service Funds These funds account for operations that provide goods or services to other departments or funds of the City. This type of fund includes: • #501 — Equipment Rental and Replacement Fund • #502 — Risk Management Fund Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized, recorded in the accounting system and ultimately reported in the financial statements. • Modified Accrual Basis of Accounting is used for all governmental funds. Modified accrual recognizes revenues when they become both measurable and available to finance expenditures of the current period. • Accrual Basis of Accounting is used for enterprise and internal service funds. Under this system revenues and expenses are recognized in the period incurred rather than when cash is either received or disbursed. Budgets and Budgetary Accounting Annual appropriation budgets are adopted for all funds with Governmental Funds utilizing a modified cash basis of accounting for budget purposes, and Proprietary Funds utilizing a working capital approach. Budgets are adopted at the fund level that constitutes the legal authority for expenditures and annual appropriations for all funds lapse at the end of the fiscal period. EXPLANATION OF MAJOR REVENUE SOURCES General Fund #001 • Property Tax Property taxes play an essential role in the finances of the municipal budget. State law limits the City to a $3.60 levy per $1,000 assessed valuation, deducting from there the levy of up to $1.50 by the Spokane County Fire Districts #1 and #8, along with deducting up to $0.50 for the Library District, which leaves the City with the authority to levy up to $1.60 for its own purposes. The levy amount must be established by ordinance by November 30th prior to the levy year. 13 • Retail Sales and Use Tax The sales tax rate for retail sales transacted within the boundaries of the City of Spokane Valley is 8.7%. The tax that is paid by a purchaser at the point of sale is remitted by the vendor to the Washington Department of Revenue who then remits the taxes back to the various agencies that have imposed the tax. The allocation of the 8.7% tax rate to the agencies is as follows: State of Washington City of Spokane Valley Spokane County Criminal Justice Spokane Public Facilities District Public Safety Juvenile Jail Mental Health Law Enforcement Communications Spokane Transit Authority 6.50% 0.85% 0.15% 0.10% 0.10% * 0.10% * 0.10% * 0.10% * 0.10% * 0.60% * 8.70% 2.20% local tax * Indicates voter approved sales taxes. • Criminal Justice Sales Tax Local Sales Tax for Criminal Justice funding is to be used solely for criminal justice purposes, such as the City's law enforcement contract. This tax is authorized at 1/10 of 1% of retail sales transacted in the County. Of the total amount collected, the State distributes 10% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the County and cities within the County. • Public Safety Sales Tax Beginning in 2005, an additional 0.1% voter approved increase in sales tax was devoted to public safety purposes. This 0.1% was approved by the voters again in August 2009. Of the total amount collected, the State distributes 60% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the cities within the County. • Gambling Tax Gambling tax revenues must be spent primarily on law enforcement purposes pertaining to gambling. Funds remaining after necessary expenditures for such enforcement purposes may be used for any general government purpose. Gambling taxes are to be paid quarterly to the City, no later than the last day of January, April, July and October. The City imposes a tax on the following forms of gambling at the following rates: Bingo (5% gross, less prizes); Raffles (5% gross, less prizes); Punchboards and Pulltabs (5% gross, less prizes); Amusement Games (2% gross, less prizes); Card playing (6% gross). • Leasehold Excise Tax Taxes on property owned by state or local governments and leased to private parties (City's share). • Franchise Fees Cable TV is the only franchise fee levied in the City at a rate of 5% of gross revenues. This is a fee levied on private utilities for the right to use city streets, alleys, and other public properties. 14 • State -Shared Revenues State -shared revenues are received from liquor sales, marijuana revenues, and motor vehicle excise taxes. These taxes are collected by the State of Washington and shared with local governments based on population. State -shared revenues are distributed on either a monthly or quarterly basis, although not all quarterly revenues are distributed in the same month of the quarter. The 2016 population figure used in the 2017 Budget is 94,160 as reported by the Office of Financial Management for Washington State on April 1, 2016. This figure is important when determining distribution of State shared revenues on a per capita basis. • Fines and Forfeitures / Public Safety Fines and penalties are collected as a result of Municipal Court rulings, false alarm fees, and other miscellaneous rule infractions. All court fines and penalties are shared with the State, with the City, on average, retaining less than 50% of the amount collected. • Community Development Community Development revenues are largely composed of fees for building permits, plan reviews, and right of way permits. • Recreation Program Fees The Parks and Recreation Department charges fees for selected recreation programs. These fees offset direct costs related to providing the program. • CenterPlace Fees The Parks and Recreation Department charges fees for use of CenterPlace. Uses include regional meetings, weddings, receptions and banquets. Rental rooms include classrooms, the great room and dining rooms. • Investment Interest The City earns investment interest on sales tax money held by the State of Washington prior to the distribution of the taxes to the City, as well as on City initiated investments. Street Fund #101 • Motor Vehicle Fuel Excise Tax (gas tax) The State of Washington collects a $0.4940 per gallon motor vehicle fuel tax at the pump. Of this amount, the State remits a portion of the tax back to cities on a per capita basis. For 2017 the Municipal Research and Services Center estimates the distribution back to cities will be $21.76 per person. Based upon a City of Spokane Valley population of 94,160 (per the Washington State Office of Financial Management on April 1, 2016) we anticipate the City will collect $2,048,900 in 2017. RCW 47.30.050 specifies that 0.42% of this tax must be expended for paths and trails activities and based upon the 2017 revenue estimate this computes to $8,600. The balance of $2,040,300 will be credited to Fund #101 for Street maintenance and operations. • Telephone Utility Tax The City of Spokane Valley levied a 6% telephone utility tax via Ordinance #08-014 with collections beginning in 2009. Telephone companies providing this service pay the tax to the City monthly. Telephone tax has been estimated at $2.2 million for 2017. 15 Paths & Trails Fund #103 Cities are required to spend 0.42% of the motor vehicle fuel tax receipts on paths and trails (please see the explanation for Street Fund #101) which we anticipate will be $8,600 in 2017. Because the amount collected in any given year is relatively small, it is typical to accumulate State distributions for several years until adequate dollars are available for a project. Hotel / Motel Tax — Tourism Facilities Fund #104 The City imposes a 1.3% tax under RCW 67.28.181 on all charges made for the furnishing of lodging at hotels, motels, and similar establishments (including bed and breakfasts and RV parks) for a continuous period of less than one month. The revenues generated by this tax may only be used for capital expenditures for acquiring, constructing, making improvements to or other related capital expenditures for large sporting venues, or venues for tourism -related facilities. This tax is estimated to generate $377,000 in 2017. Hotel / Motel Tax Fund #105 The City imposes a 2% tax under RCW 67.28.180 on all charges made for the furnishing of lodging at hotels, motels, and similar establishments (including bed and breakfasts and RV parks) for a continuous period of less than one month. The tax is taken as a credit against the 6.5% state sales tax, so that the total tax that a patron pays in retail sales tax and hotel/motel tax combined is equal to the retail sales tax in the jurisdiction. The revenues generated by this tax may be used solely for paying for tourism promotion and for the acquisition and/or operation of tourism -related facilities. This tax is estimated to generate $580,000 in 2017. Solid Waste Fund #106 Under the City's contract for solid waste transfer, transport and disposal services with Sunshine Recyclers, Inc., Sunshine pays an annual contract administrative fee of $125,000 to the City. This fee is used by the City to offset contract administrative costs and solid waste management within the City, including solid waste public educational efforts. PEG Fund #107 Under the City's cable franchise, the franchise grantee remits to the City as a capital contribution in support of Public Education Government (PEG) capital requirements an amount equal to $0.35 per subscriber per month to be paid to the City on a quarterly basis for the life of the franchise. Capital contributions collected under this agreement are allocated to PEG capital uses exclusively. PEG capital uses include, in part, the set-up of equipment in the City Council Chambers that allows Spokane Valley to broadcast Council meetings both live and through subsequent reviews via digital recordings available on the City's website. LTGO Debt Service Fund #204 This fund is used to account for the accumulation of resources for, and the payment of limited tax general obligation (LTGO) bonds also referred to as councilmanic or non -voted bonds. When LTGO bonds are issued the City irrevocably pledges the full faith, credit and resources necessary to make timely payments of principal and interest, within constitutional and statutory limitations pertaining to non -voted general obligations. In 2003 the City issued $9,430,000 in limited tax general obligation (LTGO) bonds the proceeds of which were used to finance both the construction of CenterPlace and road and street improvements surrounding the facility. In 2014 the City refunded the LTGO bonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond repayment (much like refinancing a home mortgage). At the completion of the bond refunding there remained $7,035,000 of LTGO bonds. Of this total: 16 • $5,650,000 remained on the original debt used towards the construction of CenterPlace. These bonds will be paid off in annual installments over the 20 -year period ending December 1, 2033. Annual debt service payments on these bonds are provided by the Spokane Public Facilities District. At January 1, 2017, the outstanding balance on this portion of the bond issue will be $5,065,000. • $1,385,000 remained on the original debt used towards the road and street improvements. These bonds will be paid off in annual installments over the 10 -year period ending December 1, 2023. Annual debt service payments on these bonds are provided by equal distributions from the 1st and 2nd quarter percent real estate excise tax. At January 1, 2016, the outstanding balance on this portion of the bond issue will be $995,000. In 2016 the City issued $7,275,000 in LTGO bonds, the proceeds of which will be used to finance the construction of a new City Hall building along with $6.3 million of City cash that has been set aside for this purpose. These bonds will be paid off in annual installments over the 30 -year period ending December 1, 2045. Annual debt service payments on these bonds are provided by transfers in from the General Fund. At January 1, 2017, the outstanding balance on the bond issue will be $7,200,000. REET 1 Capital Projects Fund #301 Under Washington State Law, RCW 82.46.010, the City is allowed to impose an excise tax on each sale of real property at the rate of one-quarter of one percent of the selling price. The revenue generated is used for financing capital projects as specified in the capital facilities plan under the Growth Management Act. REET 2 Capital Projects Fund #302 Under Washington State Law, RCW 82.46.010, the City is allowed to impose an additional excise tax on each sale of real property at the rate of one-quarter of one percent of the selling price. The revenue generated is used for financing public works capital projects as specified in the capital facilities plan under the Growth Management Act. Stormwater Management Fund #402 A stormwater fee is imposed upon every developed parcel within the City, which is an annual charge of $21 for each single family unit and $21 per 3,160 square feet of impervious surface for all other properties. These charges are uniform for the same class of customers and service facilities. These fees are estimated to generate $1,860,000 in 2017. Aquifer Protection Area (APA) Fund #403 These are voter approved fees, the proceeds of which are applied to aquifer protection related capital construction projects. Fees are collected by Spokane County and remitted to the City twice each year. These fees are estimated to generate $460,000 in 2017. Fees include: • An annual fee of $15 per household for the withdrawal of water from properties within the APA. • An annual fee of $15 per household for on-site sewage disposal by properties within the APA. • For commercial properties an annual fee ranging from $15 to $960 depending upon water meter size. 17 Interfund Transfers Many funds receive a portion of their revenues from other funds in the form of an interfund transfer. These transfers typically represent payments for either services rendered by one fund for another or a concentration of revenues for a specific project or purpose. The following interfund transfers are planned for 2017: In. 001 204 303 309 311 314 501 502 Total Out Out: 001 101 105 106 301 302 310 312 402 0 39,700 30,000 40,425 397,350 0 0 0 160,000 0 953,200 67,342 1,200,000 36,600 350,000 0 0 0 0 0 0 0 0 0 0 0 0 490,500 0 79,426 79,425 0 437,002 1,173,230 0 0 0 0 660,479 660,479 0 280,079 0 0 0 0 0 0 0 Total In 0 13,400 614,025 0 0 0 556,201 0 1,760,000 0 3,370,232 0 561,915 0 721,915 0 0 0 2,341,500 0 0 0 1,480,079 0 0 0 36,600 0 0 0 350,000 9,470,552 Total in 3,097,150 107,042 30,000 40,425 1,456,986 1,913,134 490,500 2,321,915 13,400 9,470,552 Total out 0 #001 - General Fund is budgeted to transfer out $3,097,150 including: • $397,350 to Fund #204 - LTGO Debt Service Fund for bond payments on the 2016 LTGO Bonds for the City Hall construction. • $160,000 to Fund #309 - Park Capital Projects Fund for park related projects. • $953,200 to Fund #311 - Pavement Preservation Fund for pavement preservation projects. • $1,200,000 to Fund #314 - Railroad Grade Separation Projects Fund for the design of the Pines Road Grade Separation Project. • $36,600 to Fund #501 - Equipment Rental and Replacement Fund to fund a CenterPlace kitchen equipment replacement reserve. • $350,000 to Fund #502 - Risk Management Fund for the 2017 property and liability insurance premium. #101 - Street Fund is budgeted to transfer out $107,042 including: • $39,700 to Fund #001 - General Fund to cover administrative costs. • $67,342 to Fund #311 - Pavement Preservation Fund for pavement preservation projects. #105 - Hotel / Motel Tax Fund is budgeted to transfer $30,000 to Fund #001 - General Fund for the purpose of financing advertising at CenterPlace. #106 - Solid Waste Fund is budgeted to transfer $40,425 to Fund #001 under a 5 -year plan to reimburse the General Fund for expenditures made during 2013 and 2014 for the solid waste program. #301 - REET 1 Capital Projects Fund is budgeted to transfer out $1,456,986 including: • $79,426 to Fund #204 - LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $437,002 to Fund #303 - Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $660,479 to Fund #311 - Pavement Preservation Fund for pavement preservation projects. • $280,079 to Fund #314 - Railroad Grade Separation Projects Fund for design services for the Barker Road Grade Separation project. 18 #302 — REET 2 Capital Projects Fund is budgeted to transfer out $1,913,134 including: • $79,425 to Fund #204 — LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $1,173,230 to Fund #303 — Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $660,479 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. #310 — Civic Facility Capital Projects Fund is budgeted to transfer $490,500 to Fund #001 — General Fund to cover lease payments for the current City Hall location in years in which the City has both a lease payment and a bond payment for the new City Hall building. #312 — Capital Reserve Fund is budgeted to transfer $1,760,000 to Fund #303 — Street Capital Projects Fund that will be applied towards the Sullivan Road West Bridge Replacement project and removal and reconstruction of Euclid Ave. (Flora to Barker) after the County's installation of the sewer system and $561,915 to Fund #309 — Parks Capital Projects Fund for the Pines to Evergreen and Sullivan to Corbin segments of the Appleway trail. #402 — Stormwater Fund is budgeted to transfer $13,400 to Fund #001 — General Fund to cover administrative costs. SIGNIFICANT ASSUMPTIONS IN THE 2017 BUDGET Budget Summary for All Funds • Based upon funding levels anticipated in the 2017 budget, City staff will strive to maintain adequate levels of service. • Appropriations for all City Funds will total $80.7 million including $23.6 million in capital expenditures, comprised in -part of: o $7.2 million in Fund #303 Street Capital Projects. o $3.9 million in Fund #309 Park Capital Projects. o $3 million in Fund #311 Pavement Preservation projects. o $5.3 million in Fund #313 City Hall Construction. o $2 million in Fund #314 Railroad Grade Separation Projects. o $450,000 in Fund #402 Stormwater Management projects. o $530,000 in Fund #403 Aquifer Protection Area projects. • To partially offset the $23.6 million in capital costs, we anticipate $8 million in grant revenues which results in 34.1% of capital expenditures being covered with State and Federal money. • Budgets will be adopted across 25 separate funds. • The full time equivalent employee (FTE) count will be 88.4 employees compared to 87.4 in the prior year as a result of one FTE being added for the new City Hall Operations & Maintenance Department. • The 2017 Budget reflects the fourth consecutive year the City will set aside City monies in an amount equivalent to 6% of General Fund recurring expenditures for pavement preservation in Fund #311 — Pavement Preservation. This 6% equals $2,341,500. • Positions and salary ranges are based on the City's compensation and classification plan. • Payroll tax and benefit amounts are based on staff benefit plans. • Contract costs for public safety, park maintenance, aquatics and street maintenance are based on estimates by City staff. • The City is setting money aside in Fund #501 — Equipment Rental and Replacement for the eventual replacement of its vehicles as well as a reserve to replace equipment in the kitchen at CenterPlace. 19 2017 General Fund Revenues • Total recurring 2017 revenues are estimated at $41,462,500 as compared to $39,721,428 in 2016. This is an increase of $1,741,072 or 4.38%. • The two largest sources of revenue continue to be Sales Tax and Property Tax which are collectively estimated to account for 82.1% of 2017 General Fund recurring revenues. • The 2017 general sales tax estimate (excluding criminal justice and public safety sales taxes) is reflective of 2016 receipts to date and are currently estimated at $19.9 million which reflects an increase of $1,371,600 or 7.42% over the 2016 estimate. • The Property Tax levy does not include the potential annual increase allowed by Initiative #747 which was approved by the voters in November 2001 through their approval of Initiative #747 and the subsequent action by the State Legislature in November 2007. o The 2017 levy is estimated at $11,614,500. o The levy assumes we start with the 2016 levy of $11,489,518, forgo the potential annual increase allowed by State law, and finally add taxes related to new construction which we estimate to be $125,000. • Franchise fees and business registrations are primarily based on projected receipts in 2016. • State shared revenues are based upon a combination of historical collections including 2016 collections through July, and per capita distribution figures reported by the Municipal Research and Services Center. • Fines and forfeitures are estimated by Spokane Valley and based on historical collections. • Building permit and land use fees are estimated by Spokane Valley and based on historic collections. 2017 General Fund Expenditures • Total 2017 recurring expenditures are budgeted at $40,053,822 as compared to $39,707,433 in 2016. This is an increase of $346,389 or 0.87%. • The City commitment of 6% of recurring General Fund expenditures to pavement preservation equals $2,341,500 and is computed by multiplying total recurring expenditures prior to adding the pavement preservation element ($2,341,500 / $39,100,622 = 6%). The $2,341,500 that is transferred to Pavement Preservation Fund #311 is comprised of the following: o $953,200 from General Fund #001 o $67,342 from Street Fund #101 o $660,479 from REET 1 Capital Projects Fund #301 o $660,479 from REET 2 Capital Projects Fund #302 • 2017 Nonrecurring expenditures total $2,389,850 and include: o $100,000 for Information Technology expenditures including: ■ $20,000 for four copiers to replace those that have reached end of life ■ $80,000 for IT capital items for technology set-up at the new City Hall o $513,100 for the last year of the lease at the current City Hall location o $145,000 for the Police Department CAD / RMS o $50,000 for retail recruitment services o $12,000 for repair of drain pipes and gutter lines at the pools o $345,000 for replacement of the Great Room audio/visual equipment at CenterPlace o $24,750 for carpet replacement in various rooms at CenterPlace o $1,200,000 transfer out to the Railroad Grade Separation Projects Fund #314 to fund the design of the Pines Road Grade Separation project. 20 General Fund Revenues Over (Under) Expenditures and Fund Balance • 2017 recurring revenues are anticipated to exceed recurring expenditures by $1,408,678. • Total 2017 expenditures are anticipated to exceed total revenues by $450,247. o This is entirely due to the nonrecurring expenditures previously discussed which equal $2,389,850 and is not a result of ongoing operating costs overwhelming revenues. In fact it is because of the City's strong financial position that we're able to make these acquisitions. • The total unrestricted General Fund ending fund balance is anticipated to be $22,852,588 at the end of 2017 which is 57.05% of total recurring expenditures of $40,053,822. Our goal is to maintain an ending fund balance of at least 50.0%. Highlights of Other Funds Revenues • Motor vehicle fuel tax (MVFT) revenue that is collected by the State and remitted to the City is estimated to be $2,048,900 according to per capita estimates provided by the Municipal Research and Services Center. Of this amount, $2,040,300 will be credited to the Street O&M Fund and 0.42% or $8,600 to the Paths and Trails Fund. • Telephone taxes that are remitted to the City and support Street Fund operations and maintenance are anticipated at $2,200,000. • Real estate excise tax (REET) revenue is computed by the City and is primarily used to match grant funded street projects as well as pay a portion of the annual payment on the 2014 general obligation bonds. In 2017 we estimate these revenues to be $800,000 per each 1/4% for a total of $1,600,000. • Hotel/Motel tax revenues are computed by the City and are dedicated to the promotion of visitors and tourism. In 2017 we estimate the tax will generate $957,000, which includes $580,000 in Fund #105 Hotel / Motel Tax Fund from the 2% tax and $377,000 in Fund #104 Hotel / Motel Tax — Tourism Facilities Fund from the 1.3% tax that was effective as of July 1, 2015. • The Stormwater Management Fee is based on an equivalent residential unit (ERU) that is equal to 3,160 square feet of impervious surface that is billed at a rate of $21 per single family residence and $21 per ERU for commercial properties (an ERU for a commercial property is computed as total square feet of impervious surface divided by 3,160). In 2017 we estimate this will fee will generate $1,860,000. • The Aquifer Protection Area Fund is expected to generate $460,000 in fees that are collected on the City's behalf by Spokane County and remitted in two installments during the year. • Grant revenues that will be applied to a variety of construction projects are estimated at $8,041,108 in 2017. By fund we anticipate grant revenues as follows: o Fund #106 — Solid Waste Fund - $26,800 o Fund #303 — Street Capital Projects - $3,756,320 o Fund #309 — Parks Capital Projects - $3,217,267 o Fund #311 — Pavement Preservation - $340,800 o Fund #314 — Railroad Grade Separation Projects Fund - $489,921 o Fund #402 — Stormwater Fund - $210,000 Expenditures • Fund #101 — Street Fund appropriations include: o a $67,342 transfer to Pavement Preservation Fund #311 for pavement preservation projects o $75,000 for installation of durable striping at Trent and Argonne o $30,000 for spare traffic signal equipment o $15,000 for battery backups for intersections 21 • Fund #301 — REET 1 Capital Projects Fund includes a $1,456,986 appropriation to cover: o a $79,426 transfer to LTGO Bond Debt Service Fund #204 to pay one-half of the City's annual repayment of the 2014 LTGO Bonds. o a $437,002 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $660,479 transfer to Pavement Preservation Fund #311 for pavement preservation projects o a $280,079 transfer to Railroad Grade Separation Projects Fund #314 for design of the Barker Road Grade Separation project. • Fund #302 — REET 2 Capital Projects Fund includes a $1,913,134 appropriation to cover: o a $79,425 transfer to LTGO Bond Debt Service Fund #204 to pay one-half of the City's annual repayment of the 2014 LTGO Bonds. o a $1,173,230 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $660,479 transfer to Pavement Preservation Fund #311 for pavement preservation projects • Fund #303 — Street Capital Projects Fund includes an appropriation of $7,166,649 for a variety of street construction projects. Included in the projects are the Sullivan and Euclid PCC for which we are appropriating $2,150,000 in 2017 and the removal and reconstruction of Euclid Ave. from Flora to Barker after the County installs sewer for which we are appropriating $1,750,000 in 2017. • Fund #309 — Parks Capital Projects includes a $3,904,182 appropriation to cover a variety of City park improvements that will be financed through a combination of a $160,000 transfer from the General Fund #001, a $561,915 transfer in from the Capital Reserve Fund #312, and $3,217,267 in grant proceeds. • Fund #311 — Pavement Preservation includes $3,000,000 of pavement preservation projects that will be financed through transfers from other City funds as outlined above under the heading of General Fund Recurring Expenditures. • Fund #312 — Capital Reserve includes $1,760,000 in transfers to Fund #303 — Street Capital Projects that will be applied towards the Sullivan Road West Bridge Replacement project in the amount of $10,000 and towards the removal and reconstruction of Euclid Ave. from Flora to Barker after the County installs sewer in the amount of $1,750,000. It also includes $561,915 in transfers to Fund #309 — Parks Capital Projects that will be applied toward the Pines to Evergreen and Sullivan to Corbin segments of the Appleway trail. • Fund #313 — Civic Facilities Capital Projects includes a $5,344,219 appropriation to cover professional service fees related to the construction of the new City Hall building. • Fund #314 — Railroad Grade Separation Projects includes appropriations in the amount of $1,970,000 which consists of $770,000 towards the design of the Barker Road Grade Separation project and $1,200,000 towards the design of the Pines Road Grade Separation project. 22 • Fund #402 - Stormwater Fund includes $710,000 for nonrecurring expenditures including: o $450,000 for various capital projects o $260,000 for the studies related to the City's Stormwater permit and the watershed • Fund #403 - Aquifer Protection Area Fund includes a $530,000 appropriation various capital projects. 23 This page left intentionally blank. CITY OF SPOKANE VALLEY, WA 2017 Budget Summary General Fund 001 Street Fund 101 Paths & Trails Fund 103 Hotel/Motel Tax - Tourism Facilities Fund 104 Hotel/Motel Tax Fund 105 Solid Waste 106 PEG Fund 107 CenterPlace Operating Reserve Fund 120 Service Level Stabilization Fund 121 Winter Weather Reserve Fund 122 City Facilities Repair & Replacement 123 LTGO Bond Debt Service Fund 204 REET 1 Capital Projects Fund 301 REET 2 Capital Projects Fund 302 Street Capital Projects 303 Park Capital Projects Fund 309 Civic Facilities Capital Projects Fund 310 Pavement Preservation Fund 311 Capital Reserve Fund 312 City Hall Construction Fund 313 Railroad Grade Separation Projects Fund 314 23,302,835 1,468,077 37,254 559,347 199,001 42,874 236,682 300,000 5,468,289 500,000 0 4,049 1,383,899 1,897,795 75,538 10,561 1,329,214 2,419,741 3,899,601 5,344,219 0 41,993,425 4,403,168 8,600 377,000 580,500 151,800 80,000 0 21,900 600 0 935,951 801,700 801,700 7,166,649 3,939,982 1,200 2,682,300 1,000 0 1,970,000 65,296,260 5,871,245 45,854 936,347 779,501 194,674 316,682 300,000 5,490,189 500,600 0 940,000 2,185,599 2,699,495 7,242,187 3,950,543 1,330,414 5,102,041 3,900,601 5,344,219 1,970,000 42,443,672 4,851,244 0 0 634,000 151,800 262,500 0 0 500,000 0 940,000 1,456,986 1,913,134 7,166,649 3,904,182 490,500 3,050,000 2,321,915 5,344,219 1,970,000 22,852,588 1,020,001 45,854 936,347 145,501 42,874 54,182 300,000 5,490,189 600 0 0 728,613 786,361 75,538 46,361 839,914 2,052,041 1,578,686 0 0 48,478,976 65,917,475 114,396,451 77,400,801 36,995,650 Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund 001 Street Fund 101 Paths & Trails Fund 103 Hotel/Motel Tax - Tourism Facilities Fund 104 Hotel/Motel Tax Fund 105 Solid Waste 106 PEG Fund 107 CenterPlace Operating Reserve Fund 120 Service Level Stabilization Fund 121 Winter Weather Reserve Fund 122 City Facilities Repair & Replacement 123 LTGO Bond Debt Service Fund 204 REET 1 Capital Projects Fund 301 REET 2 Capital Projects Fund 302 Street Capital Projects 303 Park Capital Projects Fund 309 Civic Facilities Capital Projects Fund 310 Pavement Preservation Fund 311 Capital Reserve Fund 312 City Hall Construction Fund 313 Railroad Grade Separation Projects Fund 314 23,302,835 1,468,077 37,254 559,347 199,001 42,874 236,682 300,000 5,468,289 500,000 0 4,049 1,383,899 1,897,795 75,538 10,561 1,329,214 2,419,741 3,899,601 5,344,219 0 41,993,425 4,403,168 8,600 377,000 580,500 151,800 80,000 0 21,900 600 0 935,951 801,700 801,700 7,166,649 3,939,982 1,200 2,682,300 1,000 0 1,970,000 65,296,260 5,871,245 45,854 936,347 779,501 194,674 316,682 300,000 5,490,189 500,600 0 940,000 2,185,599 2,699,495 7,242,187 3,950,543 1,330,414 5,102,041 3,900,601 5,344,219 1,970,000 42,443,672 4,851,244 0 0 634,000 151,800 262,500 0 0 500,000 0 940,000 1,456,986 1,913,134 7,166,649 3,904,182 490,500 3,050,000 2,321,915 5,344,219 1,970,000 22,852,588 1,020,001 45,854 936,347 145,501 42,874 54,182 300,000 5,490,189 600 0 0 728,613 786,361 75,538 46,361 839,914 2,052,041 1,578,686 0 0 48,478,976 65,917,475 114,396,451 77,400,801 36,995,650 Stormwater Management Fund 402 1,876,010 2,072,500 3,948,510 2,459,072 1,489,438 Aquifer Protection Area Fund 403 896,660 460,000 1,356,660 530,000 826,660 Equipment Rental & Replacement Fund 501 1,025,997 185,029 1,211,026 0 1,211,026 Risk Management Fund 502 194,383 350,000 544,383 350,000 194,383 Total of all Funds 3,993,050 52,472,026 3,067,529 68,985,004 7,060,579 121,457,030 3,339,072 80,739,873 3,721,507 40, 717,157 25 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Stormwater Management Fund 402 1,876,010 2,072,500 3,948,510 2,459,072 1,489,438 Aquifer Protection Area Fund 403 896,660 460,000 1,356,660 530,000 826,660 Equipment Rental & Replacement Fund 501 1,025,997 185,029 1,211,026 0 1,211,026 Risk Management Fund 502 194,383 350,000 544,383 350,000 194,383 Total of all Funds 3,993,050 52,472,026 3,067,529 68,985,004 7,060,579 121,457,030 3,339,072 80,739,873 3,721,507 40, 717,157 25 CITY OF SPOKANE VALLEY, WA 2017 Budget 2016 As Adopted Amendment As Amended #001 - GENERAL FUND RECURRING ACTIVITY 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I Revenues Property Tax 11,479,200 0 11,479,200 11,614,500 135,300 1.18% Sales Tax 18,210,500 270,000 18,480,500 19,852,100 1,371,600 7.42% Sales Tax - Public Safety 867,400 0 867,400 919,000 51,600 5.95% Sales Tax - Criminal Justice 1,556,400 0 1,556,400 1,669,000 112,600 7.23% Gambling Tax and Leasehold Excise Tax 333,700 0 333,700 341,500 7,800 2.34% Franchise Fees/Business Registration 1,154,000 0 1,154,000 1,200,000 46,000 3.99% State Shared Revenues 2,024,528 0 2,024,528 2,104,600 80,072 3.96% Fines and Forfeitures/Public Safety 1,443,500 0 1,443,500 1,361,000 (82,500) (5.72%) Community Development 1,491,500 0 1,491,500 1,449,300 (42,200) (2.83%) Recreation Program Revenues 595,200 13,000 608,200 640,900 32,700 5.38% Miscellaneous Department Revenue 95,900 0 95,900 94,000 (1,900) (1.98%) Miscellaneous & Investment Interest 103,500 0 103,500 133,500 30,000 28.99% Transfers in - #101 (street admin) 39,700 0 39,700 39,700 0 0.00% Transfers in - #105 (h/m tax -CP advertising) 30,000 0 30,000 30,000 0 0.00% Transfers in - #402 (storm admin) 13,400 0 13,400 13,400 0 0.00% Total Recurring Revenues 39,438,428 283,000 39,721,428 41,462,500 1,741,072 4.38% Expenditures City Council 506,869 0 506,869 542,872 36,003 7.10% City Manager 717,303 0 717,303 724,435 7,132 0.99% Legal 479,951 15,000 494,951 509,694 14,743 2.98% Public Safety 24,703,749 0 24,703,749 24,950,372 246,623 1.00% Deputy City Manager 737,002 0 737,002 750,277 13,275 1.80% Finance / IT 1,253,080 0 1,253,080 1,282,460 29,380 2.34% Human Resources 255,694 0 255,694 262,417 6,723 2.63% Public Works 966,870 0 966,870 981,932 15,062 1.56% City Hall Operations and Maintenance 0 0 0 303,918 303,918 0.00% Community & Economic Dvlpmnt - Admin 272,107 0 272,107 282,962 10,855 3.99% Community & Economic Dvlpmnt - Econ Dev 545,157 0 545,157 683,632 138,475 25.40% Community & Economic Dvlpmnt - Dev Svc 1,486,637 0 1,486,637 1,418,984 (67,653) (4.55%) Community & Economic Dvlpmnt - Building 1,344,165 0 1,344,165 1,390,834 46,669 3.47% Parks & Rec - Administration 281,871 0 281,871 288,964 7,093 2.52% Parks & Rec - Maintenance 838,343 (6,300) 832,043 861,350 29,307 3.52% Parks & Rec - Recreation 228,197 13,000 241,197 235,995 (5,202) (2.16%) Parks & Rec - Aquatics 461,200 0 461,200 457,350 (3,850) (0.83%) Parks & Rec - Senior Center 95,781 0 95,781 95,916 135 0.14% Parks & Rec - CenterPlace 882,223 0 882,223 891,458 9,235 1.05% General Government 1,532,000 55,500 1,587,500 1,240,850 (346,650) (21.84%) Transfers out - #204 (2016 LTGO debt srv) 0 198,734 198,734 397,350 198,616 99.94% Transfers out - #309 (park capital projects) 160,000 70,300 230,300 160,000 (70,300) (30.53%) Transfers out - #310 (bond pmt) 72,500 0 72,500 0 (72,500) (100.00%) Transfers out -#310 (city hall o&m costs) 271,700 0 271,700 0 (271,700) (100.00%) Transfers out - #311 (pavement preservation) 943,800 0 943,800 953,200 9,400 1.00% Transfers out - #501 (CenterPlace kitchen reserve) 0 0 0 36,600 36,600 0.00% Transfers out - #502 (insurance premium) 325,000 0 325,000 350,000 25,000 7.69% Total Recurring Expenditures 39,361,199 346,234 39,707,433 40,053,822 346,389 0.87% Recurring Revenues Over (Under) Recurring Expenditures 77,229 (63,234) 13,995 1,408,678 26 CITY OF SPOKANE VALLEY, WA 2017 Budget 2016 As Adopted Amendment As Amended #001 - GENERAL FUND - continued NONRECURRING ACTIVITY 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I Revenues Transfers in - #106 (solid waste repayment) 40,425 0 40,425 40,425 0 0.00% Transfers in - #310 Civic Facilities 0 198,734 198,734 490,500 291,766 146.81% FEMA Grant Proceeds 0 36,400 36,400 0 (36,400) (100.00%) Total Nonrecurring Revenues 40,425 235,134 275,559 530,925 255,366 92.67% Expenditures General Govemment - IT capital replacements 108,000 0 108,000 100,000 (8,000) (7.41%) City Hall lease payment (2017 final year) 0 0 0 513,100 513,100 0.00% Public Safety (const offices for unit supervisors) 0 25,000 25,000 0 (25,000) (100.00%) Community & Econ Dev (comp plan update) 350,000 0 350,000 0 (350,000) (100.00%) Parks & Rec (upgrade dial-up modem at pools) 15,000 0 15,000 0 (15,000) (100.00%) Police Department - CAD / RMS 140,281 0 140,281 145,000 4,719 3.36% Police Department (security camera upgrade) 0 6,400 6,400 0 (6,400) (100.00%) CenterPlace roof repairs 0 52,000 52,000 0 (52,000) (100.00%) City Manager Severance 0 453,116 453,116 0 (453,116) (100.00%) Community & Econ Dev (retail recruitment) 0 0 0 50,000 50,000 0.00% Parks & Rec (pool drain pipe & gutter line repairs) 0 0 0 12,000 12,000 0.00% Parks & Rec (replace Great Room audio/video) 0 0 0 345,000 345,000 0.00% Parks & Rec (replace carpet at CenterPlace) 0 0 0 24,750 24,750 0.00% Transfers out - #122 (Replenish after Windstorm) 0 16,418 16,418 0 (16,418) (100.00%) Transfers out - #309 (P&R Windstorm damage) 0 37,225 37,225 0 (37,225) (100.00%) Transfers out - #312 ('14 fund bal > 50%) 0 1,828,723 1,828,723 0 (1,828,723) (100.00%) Transfers out - #314 (Pines Underpass Design) 0 0 0 1,200,000 1,200,000 0.00% Total Nonrecurring Expenditures 613,281 2,418,882 3,032,163 2,389,850 (642,313) (21.18%) Nonrecurring Revenues Over (Under) Nonrecurring Expenditures Excess (Deficit) of Total Revenues Over (Under) Total Expenditures Beginning unrestricted fund balance Ending unrestricted fund balance Fund balance as a percent of recurring expenditures General Fund Summary Total revenues Total expenditures Excess (Deficit) of Total Revenues (572,856) (2,183,748) (2,756,604) (1,858,925) (495,627) (2,246,982) (2,742,609) (450,247) 26,045,444 26,045,444 23,302,835 25,549,817 23,302,835 64.91% 5&69% 22, 852, 588 57.05% 39, 478, 853 518,134 39, 996, 987 41, 993, 425 39, 974, 480 2,765,116 42, 739, 596 42, 443, 672 Over (Under) Total Expenditures (495,627) (2,246,982) (2,742,609) (450,247) Beginning unrestricted fund balance 26,045,444 26,045,444 23,302,835 Ending unrestricted fund balance 25,549,817 23,302,835 22,852,588 27 CITY OF SPOKANE VALLEY, WA 2017 Budget 2016 As Adopted Amendment As Amended SPECIAL REVENUE FUNDS #101 - STREET FUND RECURRING ACTIVITY 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I Revenues Utility Tax 2,340,000 0 2,340,000 2,200,000 (140,000) (5.98%) Motor Vehicle Fuel (Gas) Tax 2,004,900 0 2,004,900 2,040,300 35,400 1.77% Multimodal Transportation Revenue 0 0 0 98,868 98,868 0.00% Right -of -Way Maintenance Fee 0 50,000 50,000 50,000 0 0.00% Investment Interest 3,000 0 3,000 4,000 1,000 33.33% Miscellaneous 10,000 0 10,000 10,000 0 0.00% Total Recurring Revenues 4,357,900 50,000 4,407,900 4,403,168 (4,732) (0.11%) Expenditures Wages / Benefits / Payroll Taxes 734,604 0 734,604 746,872 12,268 1.67% Supplies 111,500 0 111,500 105,000 (6,500) (5.83%) Services & Charges 2,132,754 0 2,132,754 2,168,151 35,397 1.66% Snow Operations 430,000 0 430,000 468,000 38,000 8.84% Intergovernmental Payments 771,000 0 771,000 795,000 24,000 3.11% Vehicle rentals - #501 (non -plow vehicle rental) 31,000 0 31,000 23,250 (7,750) (25.00%) Vehicle rentals - #501 (plow replace.) 40,000 0 40,000 77,929 37,929 94.82% Transfers out - #001 39,700 0 39,700 39,700 0 0.00% Transfers out - #311 (pavement preservation) 67,342 0 67,342 67,342 0 0.00% Signal Detection Replacement Program 0 0 0 40,000 40,000 0.00% Traffic Signal Replacement Program 0 0 0 200,000 200,000 0.00% Total Recurring Expenditures 4,357,900 0 4,357,900 4,731,244 373,344 8.57% Recurring Revenues Over (Under) Recurring Expenditures 0 50,000 50,000 (328,076) NONRECURRING ACTIVITY Revenues Grants 0 0 0 0 0 0.00% Insurance proceeds (traffic signal cabinet) 0 46,000 46,000 0 (46,000) (100.00%) Total Nonrecurring Revenues 0 46,000 46,000 0 (46,000) (100.00%) Expenditures Durable striping at Trent & Argonne 0 0 0 75,000 75,000 0.00% Spare traffic signal equipment 0 0 0 30,000 30,000 0.00% Battery backups for intersections 0 0 0 15,000 15,000 0.00% Traffic Signal Cabinet Replacement 0 46,000 46,000 0 (46,000) (100.00%) Maintenance facility storage unit 5,000 0 5,000 0 (5,000) (100.00%) Signal detection equipment upgrades 20,000 0 20,000 0 (20,000) (100.00%) Total Nonrecurring Expenditures 25,000 46,000 71,000 120,000 49,000 69.01% Nonrecurring Revenues Over (Under) Nonrecurring Expenditures (25,000) 0 (25,000) (120,000) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures (25,000) 50,000 25,000 (448,076) Beginning fund balance 1,443,077 1,443,077 1,468,077 Ending fund balance 1,418,077 1,468,077 1,020,001 Street Fund Summary Total revenues 4,357,900 96,000 4,453,900 4,403,168 Total expenditures 4,382,900 46,000 4,428,900 4,851,244 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures (25,000) 50,000 25,000 (448,076) Beginning unrestricted fund balance 1,443,077 1,443,077 1,468,077 Ending unrestricted fund balance 1,418,077 1,468,077 1,020,001 28 CITY OF SPOKANE VALLEY, WA 2017 Budget SPECIAL REVENUE FUNDS - continued #103 - PATHS & TRAILS FUND Revenues Motor Vehicle Fuel (Gas) Tax Investment Interest Total revenues 2016 As Adopted Amendment As Amended 2017 Proposed Budget 8,500 0 8,500 8,600 11/8/2016 Difference Between 2016 and 2017 $ I 100 1.18% 0 0 0 0 0 0.00% 8,500 0 8,500 8,600 100 1.18% Expenditures Capital Outlay 0 0 0 0 0 0.00% Transfers out - #309 (Appleway Trail - Univ -Pines) 0 9,300 9,300 0 (9,300) (100.00%) Total expenditures 0 9,300 9,300 0 (9,300) (100.00%) Revenues over (under) expenditures 8,500 (800) 8,600 Beginning fund balance 38,054 38,054 37,254 Ending fund balance 46,554 37,254 45,854 #104 - HOTEL / MOTEL TAX - TOURISM FACILITIES FUND Revenues Hotel/Motel Tax 357,500 19,500 377,000 377,000 0 0.00% Investment Interest 0 0 0 0 0 0.00% Total revenues 357,500 19,500 377,000 377,000 0 0.00% Expenditures Capital Outlay 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over (under) expenditures 357,500 377,000 377,000 Beginning fund balance 182,347 182,347 559,347 Ending fund balance 539,847 559,347 936,347 #105 - HOTEL / MOTEL TAX FUND Revenues Hotel/Motel Tax 550,000 30,000 580,000 580,000 0 0.00% Investment Interest 300 0 300 500 200 66.67% Total revenues 550,300 30,000 580,300 580,500 200 0.03% Expenditures Transfers out - #001 30,000 0 30,000 30,000 0 0.00% Tourism Promotion 560,000 (60,650) 499,350 604,000 104,650 20.96% Transfers out - #309 (volleyball court award) 0 60,650 60,650 0 (60,650) (100.00%) Total expenditures 590,000 0 590,000 634,000 44,000 7.46% Revenues over (under) expenditures (39,700) (9,700) (53,500) Beginning fund balance 208,701 208,701 199,001 Ending fund balance 169,001 199,001 145,501 29 CITY OF SPOKANE VALLEY, WA 2017 Budget SPECIAL REVENUE FUNDS - continued #106 - SOLID WASTE FUND Revenues Sunshine administrative fee Road maintenance fee Investment Interest Grant Proceeds Total revenues Expenditures Education & Contract Administration Transfers out - #001 Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance #107 - PEG FUND Revenues Comcast PEG contribution Investment Interest 2016 As Adopted Amendment As Amended 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I 125,000 0 125,000 125,000 0 0.00% 0 0 0 0 0 0.00% 0 0 0 0 0 0.00% 53,500 0 53,500 26,800 (26,700) (49.91%) 178,500 0 178,500 151,800 (26,700) (14.96%) 138,075 0 138,075 111,375 (26,700) (19.34%) 40,425 0 40,425 40,425 0 0.00% 178,500 0 178,500 151,800 (26,700) (14.96%) 0 42,874 42,874 0 0 42,874 42,874 42,874 42,874 90,000 0 90,000 80,000 (10,000) (11.11%) 0 0 0 0 0 0.00% Total revenues 90,000 0 90,000 80,000 (10,000) (11.11%) Expenditures PEG Reimbursement - CMTV 12,000 105,000 117,000 0 (117,000) (100.00%) Capital Outlay 12,500 0 12,500 12,500 0 0.00% New City Hall Council Chambers 0 25,000 25,000 250,000 225,000 900.00% Total expenditures 24,500 130,000 154,500 262,500 108,000 69.90% Revenues over (under) expenditures 65,500 (64,500) (182,500) Beginning fund balance 301,182 301,182 236,682 Ending fund balance 366,682 236,682 54,182 #120 - CENTER PLACE OPERATING RESERVE FUND Revenues Investment Interest 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total revenues 0 0 0 0 0 0.00% Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over (under) expenditures 0 0 0 Beginning fund balance 300,000 300,000 300,000 Ending fund balance 300,000 300,000 300,000 30 CITY OF SPOKANE VALLEY, WA 2017 Budget 2016 As Adopted Amendment As Amended SPECIAL REVENUE FUNDS - continued #121 -SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest 6,500 Miscellaneous Total revenues Expenditures Operations Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 0 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I 0 6,500 21,900 15,400 236.92% 0 0 0 0 0.00% 6,500 0 6,500 21,900 15,400 236.92% 0 0 0 0 0 0.00% 0 0 0 0 0 0.00% 6,500 5,461,789 5,468,289 6,500 21,900 5,461,789 5,468,289 5,468,289 5,490,189 #122 - WINTER WEATHER RESERVE FUND Revenues Investment Interest 600 0 600 600 0 0.00% FEMA Grant Proceeds 0 38,510 38,510 0 (38,510) (100.00%) Transfer in - #001 0 16,418 16,418 0 (16,418) (100.00%) Subtotal revenues Expenditures Snow removal expenses Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 600 54,928 55,528 600 (54,928) (98.92%) 500,000 0 500,000 500,000 0 0.00% 500,000 0 500,000 500,000 0 0.00% (499,400) 444,472 (54,928) (444,472) (499,400) 444,472 500,000 0 600 #123 - CIVIC FACILITIES REPLACEMENT FUND Revenues Investment Interest 700 0 700 0 (700) (100.00%) Miscellaneous 0 0 0 0 0 0.00% Total revenues 700 0 700 0 (700) (100.00%) Expenditures Transfers out - #311 (pavement preservation) 559,786 22 559,808 0 (559,808) (100.00%) Total expenditures 559,786 22 559,808 0 (559,808) (100.00%) Revenues over (under) expenditures (559,086) (559,108) 0 Beginning fund balance 559,108 559,108 0 Ending fund balance 22 0 0 31 CITY OF SPOKANE VALLEY, WA 2017 Budget DEBT SERVICE FUNDS #204 - LTGO BOND DEBT SERVICE FUND Revenues Spokane Public Facilities District Transfers in - #001 Transfers in - #301 Transfers in - #302 Total revenues 2016 As Adopted Amendment As Amended 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I 380,300 0 380,300 379,750 (550) (0.14%) 0 198,734 198,734 397,350 198,616 99.94% 83,400 0 83,400 79,426 (3,974) (4.76%) 83,400 0 83,400 79,425 (3,975) (4.77%) 547,100 198,734 745,834 935,951 190,117 25.49% Expenditures Debt Service Payments - CenterPlace 380,300 0 380,300 379,750 (550) (0.14%) Debt Service Payments - Roads 166,800 0 166,800 162,900 (3,900) (2.34%) 2016 LTGO Bond Principal & Interest 0 198,734 198,734 397,350 198,616 99.94% Total expenditures 547,100 198,734 745,834 940,000 194,166 26.03% Revenues over (under) expenditures 0 0 (4,049) Beginning fund balance 4,049 4,049 4,049 Ending fund balance 4,049 4,049 0 32 CITY OF SPOKANE VALLEY, WA 2017 Budget CAPITAL PROJECTS FUNDS #301 - REET 1 CAPITAL PROJECTS FUND Revenues REET 1 - Taxes Investment Interest Total revenues 2016 As Adopted Amendment As Amended 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I 800,000 200,000 1,000,000 800,000 (200,000) (20.00%) 1,000 0 1,000 1,700 700 70.00% 801,000 200,000 1,001,000 801,700 (199,300) (19.91%) Expenditures Transfers out - #204 83,400 0 83,400 79,426 (3,974) (4.76%) Transfers out - #303 222,503 520,000 742,503 437,002 (305,501) (41.14%) Transfers out - #311 (pavement preservation) 365,286 0 365,286 660,479 295,193 80.81% Transfers out - #314 (Barker Grade Separation) 0 20,000 20,000 280,079 260,079 1300.40% Total expenditures 671,189 540,000 1,211,189 1,456,986 245,797 20.29% Revenues over (under) expenditures 129,811 (210,189) (655,286) Beginning fund balance 1,594,088 1,594,088 1,383,899 Ending fund balance 1,723,899 1,383,899 728,613 #302 - REET 2 CAPITAL PROJECTS FUND Revenues REET 2 - Taxes 800,000 200,000 1,000,000 800,000 (200,000) (20.00%) Investment Interest 1,000 0 1,000 1,700 700 70.00% Total revenues 801,000 200,000 1,001,000 801,700 (199,300) (19.91%) Expenditures Transfers out - #204 83,400 0 83,400 79,425 (3,975) (4.77%) Transfers out - #303 922,816 (540,000) 382,816 1,173,230 790,414 206.47% Transfers out - #311 (pavement preservation) 365,286 0 365,286 660,479 295,193 80.81% Total expenditures 1,371,502 (540,000) 831,502 1,913,134 1,081,632 130.08% Revenues over (under) expenditures (570,502) 169,498 (1,111,434) Beginning fund balance 1,728,297 1,728,297 1,897,795 Ending fund balance 1,157,795 1,897,795 786,361 33 CITY OF SPOKANE VALLEY, WA 2017 Budget 2016 As Adopted Amendment As Amended CAPITAL PROJECTS FUNDS - continued 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I #303 - STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds 8,797,263 (647,657) 8,149,606 3,756,320 (4,393,286) (53.91%) Developer 314,700 (39,613) 275,087 40,097 (234,990) (85.42%) Transfers in - #301 222,503 520,000 742,503 437,002 (305,501) (41.14%) Transfers in - #302 922,816 (540,000) 382,816 1,173,230 790,414 206.47% Transfers in - #312 - Pines Underpass Pinecroft 500,000 (500,000) 0 0 0 0.00% Transfers in - #312 - Euclid Ave - Flora to Barker 0 50,000 50,000 1,750,000 1,700,000 3400.00% Transfers in - #312 - Sullivan RdWBridge 1,010,509 457,270 1,467,779 10,000 (1,457,779) (99.32%) Transfers in - #312 - 8th & Carnahan Intersection 0 415,000 415,000 0 (415,000) (100.00%) Total revenues 11,767,791 (285,000) 11,482,791 7,166,649 (4,316,142) (37.59%) Expenditures 123 Mission Ave. - Flora to Barker 332,566 0 332,566 500,000 167,434 50.35% 141 Sullivan & Euclid PCC (PE & RW) 1,981,060 0 1,981,060 2,150,000 168,940 8.53% 149 Sidewalk Infill 5,000 0 5,000 0 (5,000) (100.00%) 155 Sullivan Rd W Bridge Replacement 5,237,650 0 5,237,650 10,000 (5,227,650) (99.81%) 156 Mansfield Ave. Connection 5,000 0 5,000 0 (5,000) (100.00%) 166 Pines Rd (SR27) & Grace Ave. Intersect Safety 491,331 0 491,331 333,224 (158,107) (32.18%) 167 Citywide Safety Improvements (bike/ped) 228,127 0 228,127 5,000 (223,127) (97.81%) 201 ITS Infill Project Phase 1 (PE START 2014) 271,357 0 271,357 300,000 28,643 10.56% 205 Sprague/Barker Intersections Improvement 0 0 0 40,097 40,097 0.00% 206 Sprague/Long Sidewalk Project 5,000 0 5,000 0 (5,000) (100.00%) 207 Indiana & Evergreen Transit Access Imp 0 0 0 5,000 5,000 0.00% 221 McDonald Rd Diet (16th to Mission) 559,200 0 559,200 5,000 (554,200) (99.11%) 222 Citywide Reflective Signal Backplates 40,500 0 40,500 36,000 (4,500) (11.11%) 223 Pines Rd Underpass @ BNSF & Trent 500,000 (500,000) 0 0 0 0.00% 229 32nd Ave Preservation Project 0 0 0 2,500 2,500 0.00% 234 Seth Woodward Elem Sidewalk Improvement 361,000 0 361,000 5,000 (356,000) (98.61%) 238 Mirabeau Pkway & Pines (SR -27) Traffic Signal 350,000 0 350,000 5,000 (345,000) (98.57%) 239 Bowdish Sidewalk 8th to 12th 400,000 0 400,000 471,342 71,342 17.84% 247 8th & Carnahan Intersection Improvements 0 415,000 415,000 0 (415,000) (100.00%) xxx N. Sullivan Corridor ITS Project (PE start 2ot7) 0 0 0 110,486 110,486 0.00% xxx Euclid Ave. - Flora to Barker 0 50,000 50,000 1,750,000 1,700,000 3400.00% xxx 9th Ave. Sidewalk 0 0 0 240,000 240,000 0.00% xxx Sullivan/Wellesley Intersection 0 0 0 198,000 198,000 0.00% Contingency 1,000,000 (250,000) 750,000 1,000,000 250,000 33.33% Total expenditures 11,767,791 (285,000) 11,482,791 7,166,649 (4,316,142) (37.59%) Revenues over (under) expenditures 0 0 0 Beginning fund balance 75,538 75,538 75,538 Ending fund balance 75,538 75,538 75,538 Note: Work performed for pavement preservation projects out of the Street Capital Projects Fund is for items such as sidewalk upgrades that were bid with the pavement preservation work. 34 CITY OF SPOKANE VALLEY, WA 2017 Budget 2016 As Adopted Amendment As Amended CAPITAL PROJECTS FUNDS - continued 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I #309 - PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds 90,000 320,132 410,132 3,217,267 2,807,135 684.45% FEMA Grant Proceeds - Windstorm 0 21,875 21,875 0 (21,875) (100.00%) Transfers in - #001 160,000 77,525 237,525 160,000 (77,525) (32.64%) Transfers in - #001 (Browns Park Splashpad water) 0 30,000 30,000 0 (30,000) (100.00%) Transfers in - #103 (Appleway Trail - Univ -Pines) 0 9,300 9,300 0 (9,300) (100.00%) Transfers in - #105 0 60,650 60,650 0 (60,650) (100.00%) Transfers in - #312 - Appleway (Pines -Evergreen) 14,050 58,890 72,940 561,915 488,975 670.38% Investment Interest 500 0 500 800 300 60.00% Total revenues 264,550 578,372 842,922 3,939,982 3,097,060 367.42% Expenditures City entry sign 70,000 0 70,000 0 (70,000) (100.00%) 176 Appleway Trail (Univ. - Pines) 0 9,300 9,300 0 (9,300) (100.00%) 225 Pocket dog park - phase 1 0 400 400 0 (400) (100.00%) 227 Appleway Trail (Pines to Evergreen) 104,050 102,247 206,297 1,925,957 1,719,660 833.58% 237 Appleway Trail (Sullivan to Corbin) 0 276,775 276,775 1,853,225 1,576,450 569.58% 241 Pocket dog park - phase 2 75,000 6,300 81,300 0 (81,300) (100.00%) 242 Browns Park Splashpad 82,500 64,000 146,500 0 (146,500) (100.00%) 243 Browns Park championship volleyball court 0 60,650 60,650 0 (60,650) (100.00%) 244 Park signs (3) 20,500 0 20,500 0 (20,500) (100.00%) 245 Terrace View playground equip - Windstorm 0 59,100 59,100 0 (59,100) (100.00%) Edgecliff Park Splashpad 0 0 0 125,000 125,000 0.00% Total expenditures 352,050 578,772 930,822 3,904,182 2,973,360 319.43% Revenues over (under) expenditures (87,500) (87,900) 35,800 Beginning fund balance 98,461 98,461 10,561 Ending fund balance 10,961 10,561 46,361 #310 - CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Investment Interest Transfers in - #001 Future C.H. bond pmt > $434.6k lease pmt Future C.H. o&m costs 1,200 0 1,200 1,200 0 0.00% 72,500 0 72,500 0 (72,500) (100.00%) 271,700 0 271,700 0 (271,700) (100.00%) Total revenues 345,400 0 345,400 1,200 (344,200) (99.65%) Expenditures Transferout-#001 0 198,734 198,734 490,500 291,766 146.81% Total expenditures 0 198,734 198,734 490,500 291,766 146.81% Revenues over (under) expenditures 345,400 146,666 (489,300) Beginning fund balance 1,182,548 1,182,548 1,329,214 Ending fund balance 1,527,948 1,329,214 839,914 Note: The fund balance in #310 includes $839, 285.10 paid by the Library District for 2.82 acres at the Balfour Park site. If the District does not succeed in getting a voted bond approved by October 2017 then the City may repurchase this land at the original sale price of $839,285.10. 35 CITY OF SPOKANE VALLEY, WA 2017 Budget CAPITAL PROJECTS FUNDS - continued #311 - PAVEMENT PRESERVATION Revenues Transfers in - #001 Transfers in - #101 Transfers in - #123 Transfers in - #301 Transfers in - #302 Grants Total revenues 2016 As Adopted Amendment As Amended 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I 943,800 0 943,800 953,200 9,400 1.00% 67,342 0 67,342 67,342 0 0.00% 559,786 22 559,808 0 (559,808) (100.00%) 365,286 0 365,286 660,479 295,193 80.81% 365,286 0 365,286 660,479 295,193 80.81% O 2,063,000 2,063,000 340,800 (1,722,200) (83.48%) 2,301,500 2,063,022 4,364,522 2,682,300 (1,682,222) (38.54%) Expenditures Pavement preservation 3,000,000 1,500,000 4,500,000 3,000,000 (1,500,000) (33.33%) Pre -project GeoTech 50,000 0 50,000 50,000 0 0.00% Total expenditures 3,050,000 1,500,000 4,550,000 3,050,000 (1,500,000) (32.97%) Revenues over (under) expenditures (748,500) (185,478) (367,700) Beginning fund balance 2,605,219 2,605,219 2,419,741 Ending fund balance 1,856,719 2,419,741 2,052,041 #312 - CAPITAL RESERVE FUND Revenues Transfers in - #001 0 1,828,723 1,828,723 0 (1,828,723) (100.00%) Investment Interest 0 0 0 1,000 1,000 0.00% Total revenues O 1,828,723 1,828,723 1,000 (1,827,723) (99.95%) Expenditures Transfers out #303 (Sullivan Rd WBridge) 1,010,509 457,270 1,467,779 10,000 (1,457,779) (99.32%) Transfers out #303 (Pines Rd Underpass) 500,000 (500,000) 0 0 0 0.00% Transfers out #303 (Euclid Ave - Flora to Barker) 0 50,000 50,000 1,750,000 1,700,000 3400.00% Transfers out #303 (8th & Carnahan Intersection) 0 415,000 415,000 0 (415,000) (100.00%) Transfers out #309 (Appleway Trail - Pines-Evergre 14,050 13,800 27,850 260,005 232,155 833.59% Transfers out #309 (Appleway Trail - Sullivan - Cort 0 45,090 45,090 301,910 256,820 569.57% Transfers out #314 (Pines Grade Separation) 0 500,000 500,000 0 (500,000) (100.00%) Total expenditures 1,524,559 981,160 2,505,719 2,321,915 (183,804) (7.34%) Revenues over (under) expenditures (1,524,559) (676,996) (2,320,915) Beginning fund balance 4,576,597 4,576,597 3,899,601 Ending fund balance 3,052,038 3,899,601 1,578,686 #313 - CITY HALL CONSTRUCTION FUND Revenues 2016 LTGO bond issue (par+premium) 0 7,946,088 7,946,088 0 (7,946,088) (100.00%) Investment Interest 0 0 0 0 0 0.00% Total revenues O 7,946,088 7,946,088 0 (7,946,088) (100.00%) Expenditures Capital Outlay - City Hall 294,400 7,000,000 7,294,400 5,344,219 (1,950,181) (26.74%) 2016 LTGO bond issue costs 0 96,515 96,515 0 (96,515) (100.00%) Total expenditures 294,400 7,096,515 7,390,915 5,344,219 (2,046,696) (27.69%) Revenues over (under) expenditures (294,400) 555,173 (5,344,219) Beginning fund balance 4,789,046 4,789,046 5,344,219 Ending fund balance 4,494,646 5,344,219 0 36 CITY OF SPOKANE VALLEY, WA 2017 Budget 2016 As Adopted Amendment As Amended CAPITAL PROJECTS FUNDS - continued 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I #314 - RAILROAD GRADE SEPARATION PROJECTS FUND Revenues Grant Proceeds 0 230,000 230,000 489,921 259,921 113.01% Transfers in #001 (Pines underpass design) 0 0 0 1,200,000 1,200,000 0.00% Transfers in #301 (Barker overpass design) 0 20,000 20,000 280,079 260,079 1300.40% Transfers in #312 (Pines land acquisition) 0 500,000 500,000 0 (500,000) (100.00%) Total revenues 0 750,000 750,000 1,970,000 1,220,000 162.67% Expenditures 143 Barker BNSF Grade Separation 0 250,000 250,000 770,000 520,000 208.00% 223 Pines Rd Underpass 0 500,000 500,000 1,200,000 700,000 140.00% Total expenditures 0 750,000 750,000 1,970,000 1,220,000 162.67% Revenues over (under) expenditures 0 0 0 Beginning fund balance 0 0 0 Ending fund balance 0 0 0 37 CITY OF SPOKANE VALLEY, WA 2017 Budget ENTERPRISE FUNDS #402 - STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees Investment Interest 2016 As Adopted Amendment As Amended 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I 1,870,000 0 1,870,000 1,860,000 (10,000) (0.53%) 1,500 0 1,500 2,500 1,000 66.67% Total Recurring Revenues 1,871,500 0 1,871,500 1,862,500 (9,000) (0.48%) Expenditures Wages / Benefits / Payroll Taxes 514,132 0 514,132 546,421 32,289 6.28% Supplies 15,900 0 15,900 15,425 (475) (2.99%) Services & Charges 1,113,683 0 1,113,683 1,111,076 (2,607) (0.23%) Intergovernmental Payments 67,000 0 67,000 50,000 (17,000) (25.37%) Vehicle rentals - #501 11,000 0 11,000 12,750 1,750 15.91 % Transfers out - #001 13,400 0 13,400 13,400 0 0.00% Total Recurring Expenditures 1,735,115 0 1,735,115 1,749,072 13,957 0.80% Recurring Revenues Over (Under) Recurring Expenditures 136,385 0 136,385 113,428 NONRECURRING ACTIVITY Revenues Grant Proceeds 0 175,000 175,000 210,000 35,000 20.00% FEMA Grant Proceeds - Windstorm 0 48,800 48,800 0 (48,800) (100.00%) Miscellaneous 0 0 0 0 0 0.00% Total Nonrecurring Revenues 0 223,800 223,800 210,000 (13,800) (6.17%) Expenditures Capital -various projects 500,000 (348,900) 151,100 450,000 298,900 197.82% Effectiveness study 0 175,000 175,000 210,000 35,000 20.00% Watershed studies 0 0 0 50,000 50,000 0.00% Storm -related sweeping 0 50,000 50,000 0 (50,000) (100.00%) Maintenance facility storage unit 5,000 0 5,000 0 (5,000) (100.00%) Total Nonrecurring Expenditures 505,000 (123,900) 381,100 710,000 328,900 86.30% Nonrecurring Revenues Over (Under) Nonrecurring Expenditures (505,000) 347,700 (157,300) (500,000) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures (368,615) 347,700 (20,915) (386,572) Beginning working capital 1,896,925 1,896,925 1,876,010 Ending working capital 1,528,310 1,876,010 1,489,438 Stormwater Fund Summary Total revenues 1,871,500 223,800 2,095,300 2,072,500 Total expenditures 2,240,115 (123,900) 2,116,215 2,459,072 Excess (Deficit) of Total Revenues Over (Under) Total Expenditures (368,615) 347,700 (20,915) (386,572) Beginning unrestricted fund balance 1,896,925 1,896,925 1,876,010 Ending unrestricted fund balance 1,528,310 1,876,010 1,489,438 38 CITY OF SPOKANE VALLEY, WA 2017 Budget 2016 As Adopted Amendment As Amended ENTERPRISE FUNDS - continued 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I #403 -AQUIFER PROTECTION AREA Revenues Spokane County 500,000 (100,000) 400,000 460,000 60,000 15.00% Grant DOE - Broadway SD Retrofit 0 0 0 0 0 0.00% Grant DOE - Sprague Park to University LID 1,500,000 (1,500,000) 0 0 0 0.00% Total revenues 2,000,000 (1,600,000) 400,000 460,000 60,000 15.00% Expenditures 198 Sprague Park to University LID 2,000,000 (2,000,000) 0 0 0 0.00% Capital - various projects 0 425,000 425,000 530,000 105,000 24.71 % Total expenditures 2,000,000 (1,575,000) 425,000 530,000 105,000 24.71% Revenues over (under) expenditures 0 (25,000) (70,000) Beginning working capital 921,660 921,660 896,660 Ending working capital 921,660 896,660 826,660 39 CITY OF SPOKANE VALLEY, WA 2017 Budget 2016 As Adopted Amendment As Amended INTERNAL SERVICE FUNDS 2017 Proposed Budget 11/8/2016 Difference Between 2016 and 2017 $ I #501 - ER&R FUND Revenues Vehicle rentals - #001 23,500 0 23,500 32,500 9,000 38.30% Vehicle rentals - #101 31,000 0 31,000 23,250 (7,750) (25.00%) Vehicle rentals - #101 (plow replace.) 40,000 0 40,000 77,929 37,929 94.82% Vehicle rentals - #402 6,833 4,667 11,500 12,750 1,250 10.87% Transfer in - #001 (CenterPlace kitchen reserve) 0 0 0 36,600 36,600 0.00% Investment Interest 1,000 0 1,000 2,000 1,000 100.00% Total revenues 102,333 4,667 107,000 185,029 78,029 72.92% Expenditures Vehicle Replacement 105,000 0 105,000 0 (105,000) (100.00%) Snow Plow Replacement 225,000 0 225,000 0 (225,000) (100.00%) Total expenditures 330,000 0 330,000 0 (330,000) (100.00%) Revenues over (under) expenditures (227,667) (223,000) 185,029 Beginning working capital 1,248,997 1,248,997 1,025,997 Ending working capital 1,021,330 1,025,997 1,211,026 #502 - RISK MANAGEMENT FUND Revenues Investment Interest Transfers in - #001 0 0 0 0 0 0.00% 325,000 0 325,000 350,000 25,000 7.69% Total revenues 325,000 0 325,000 350,000 25,000 7.69% Expenditures Auto & Property Insurance 325,000 0 325,000 350,000 25,000 7.69% Unemployment Claims 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total expenditures 325,000 0 325,000 350,000 25,000 7.69% Revenues over (under) expenditures 0 0 0 Beginning fund balance 194,383 194,383 194,383 Ending fund balance 194,383 194,383 194,383 TOTAL OF ALL FUNDS Total of Revenues for all Funds Total of Expenditures for all Funds 66,156,527 12,826,968 78,983,495 68,985,004 70,683,872 12,270,453 82,954,325 80,739,873 Total grant revenues (included in total revenues) 10,440,763 786,060 11,226,823 8,041,108 Total Capital expenditures (included in total expenditures) 18,535,022 7,697,272 26,232,294 23,577,550 40 CITY OF SPOKANE VALLEY, WA 2017 Budget Revenues by Fund General Fund Property Tax $ 11,614,500 Sales Tax 19,852,100 Sales Tax - Public Safety 919,000 Sales Tax - Criminal Justice 1,669,000 Gambling and Leasehold Excise Tax 341,500 Franchise Fees/Business Registration 1,200,000 State Shared Revenues 2,104,600 Service Revenues 1,543,300 Fines and Forfeitures 1,361,000 Recreation Program Fees 640,900 Miscellaneous, Investment Int., Transfers 747,525 Total General Fund $ 41,993,425 Other Funds 101 Street Fund $ 4,403,168 103 Paths & Trails Fund 8,600 104 Hotel/Motel Tax Tourism Facilities Fund 377,000 105 Hotel/Motel Tax Fund 580,500 106 Solid Waste Fund 151,800 107 PEG Fund 80,000 120 CenterPlace Operating Reserve Fund 0 121 Service Level Stabilization Reserve Fund 21,900 122 Winter Weather Reserve Fund 600 123 Civic Facilities Replacement Fund 0 204 LTGO Bond Debt Service Fund 935,951 301 REET 1 Capital Projects Fund 801,700 302 REET 2 Capital Projects Fund 801,700 303 Street Capital Projects Fund 7,166,649 309 Parks Capital Projects Fund 3,939,982 310 Civic Facilities Capital Projects Fund 1,200 311 Pavement Preservation Fund 2,682,300 312 Capital Reserve Fund 1,000 313 City Hall Construction Fund 0 314 Railroad Grade Separation Projects Fund 1,970,000 402 Stormwater Management Fund 2,072,500 403 Aquifer Protection Area Fund 460,000 501 Equipment Rental & Replacement Fund 185,029 502 Risk Management Fund 350,000 Total Other Funds $ 26,991,579 Total All Funds $ 68,985,004 41 CITY OF SPOKANE VALLEY, WA 2017 General Fund Revenues $41,993,425 Recreation Program Fees 1% Fines & Forfeitures 3% Service Revenues 4% State Shared Revenues 5% Franchise Fees/Business Registrations 3% Miscellaneous 2% Property Tax 28% Gambling Taxes 1% Public Safety Sales Tax 2% Criminal Justice Sales Tax 4% Sales Tax 47% Other Special Revenue Funds 2% Street Fund 6% CITY OF SPOKANE VALLEY, WA 2017 City Wide Revenues $ 68,985,004 Debt Service Fund Capital Projects Funds 25% Stormwater Management Fund 3% APA Fund General Fund 61% 43 Internal Service Funds 1% Property Tax Property Tax Property Tax - Delinquent Sales Taxes Sales Tax Sales Tax - Public Safety Sales Tax - Criminal Justice CITY OF SPOKANE VALLEY, WA 2017 Budget - General Fund Detail Revenues by Type 2013 Actual 2014 Actual 2015 Actual 2016 Budget 10,841,559 11,129, 377 11,095,009 11,479,200 0 0 185,138 0 10,841,559 16,587,617 759,889 1,358,956 18,706,461 11,129, 377 11,280,147 17,440,083 812,280 1,455,313 18,209,568 848,665 1,523,588 19,707,676 20,581,821 2017 Proposed Budget 11,614,500 0 11,479,200 11,614, 500 18,480,500 867,400 1,556,400 19,852,100 919,000 1,669,000 20,904,300 22,440,100 Gambling and Leasehold Excise Tax Amusement Games 10,799 11,063 11,909 11,000 11,000 Card Games 382,651 429,376 336,960 249,000 260,000 Bingo & Raffles 638 1,227 950 1,200 1,000 Punch Boards & Pull Tabs 134,350 64,585 62,966 65,000 63,000 Leasehold Excise Tax 6,139 6,932 5,869 6,800 5,800 Leasehold Excise Tax (State) 770 770 770 700 700 535,347 513,954 419,424 333,700 341,500 Licenses & Permits General Business Licenses 97,889 106,741 109,076 100,000 100,000 Comcast PEG Contribution 92,642 89,121 0 0 0 Franchise Fees 1,048,803 1,053,986 1,111,616 1,054,000 1,100,000 1,239,335 1,249,848 1,220,692 1,154,000 1,200,000 State Shared Revenues Streamline Mitigation of Sales Tax 571,806 575,269 572,577 520,000 520,000 Payment in Lieu of Taxes - DNR 0 8,528 4,114 4,400 4,000 CJ - High Crime 49,505 0 0 0 0 MVET Criminal Justice - Population 22,282 23,837 24,869 26,135 29,200 CJ Contracted Services 142,180 152,133 157,282 150,000 150,000 CJ Special Programs 82,689 88,168 91,009 90,540 97,900 Marijuana Enforcement 0 0 37,912 0 54,600 DUI - Cities 16,604 16,273 13,571 16,300 13,600 Liquor Board Excise Tax 121,297 157,068 303,724 413,496 439,700 Liquor Board Profits 813,952 812,922 806,570 803,657 795,600 1,820,317 1,834,198 2,011,629 2,024,528 2,104,600 Service Revenues Airway Heights Bldg. Plan Rev. 471 0 0 0 0 Building Permits 920,921 819,234 770,288 800,000 770,000 Demolition Permits 3,860 4,836 3,840 4,000 4,000 Building & Planning Fees 001.058.059.345.83 103,645 381,282 148,962 126,400 125,500 Entertainment License 18,335 15,823 18,374 16,000 17,000 Grading Permits 3,551 4,049 4,748 3,500 3,500 Home Profession Fee 3,612 3,108 2,856 3,100 2,800 Mechanical Permits 80,927 108,759 89,975 85,000 90,000 Misc. Permits & Fees 5,203 8,168 7,229 6,100 6,600 Planning Fees 437,287 145,218 379,143 380,500 380,500 Plumbing Permits 49,688 63,667 41,784 60,000 42,000 Street Vacation Permits 0 0 0 1,000 1,000 Right of Way Permits 98,265 94,512 91,124 95,000 94,000 Code Enforcement (13,423) 6,189 12,417 6,000 6,000 Temporary Use Permit Fees 942 471 314 800 400 1,713,284 1,655,315 1,571,053 1,587,400 1,543, 300 Fines and Forfeitures Public Safety False Alarm Services 183,032 0 201,638 195,000 200,000 Public Safety Grants 66,846 59,265 49,418 50,000 50,000 Fines & Forfeits - Traffic 558,378 761,179 601,189 566,000 523,600 Other Criminal- Non Traffic Fines 688,201 639,820 508,665 632,500 587,400 1,496,458 1,460,263 1,360,910 1,443,500 1,361,000 44 CITY OF SPOKANE VALLEY, WA 2017 Budget - General Fund Detail Revenues by Type Recreation Program Charges Activity Fees (To use a recreational facility) Program Fees (To participate in a program) Miscellaneous Investment Interest Sales Tax Interest SCRAPS pass-through/nonrecurring Interest on Gambling Tax Dept. of Ecology Grant Office of Public Def- Public Def Impr Police Precinct Rent & Maint. Miscellaneous Revenue & Grants 2013 Actual 78,065 452,000 2014 Actual 197,482 401,920 2015 Actual 143,283 510,971 2016 Budget 136,200 472,000 2017 Proposed Budget 140,700 500,200 530,065 599,402 654,254 608,200 640,900 61,206 41,910 73,378 45,000 73,000 3,120 3,978 8,682 5,000 5,000 0 57,259 1,100 1,000 1,300 1,937 256 66 2,000 500 62,101 6,290 0 0 0 0 0 20,000 0 0 51,530 48,558 51,653 48,500 51,700 12,265 5,343 6,434 38,400 2,000 192,158 163,594 161,315 139,900 133,500 Transfers Transfers in - #101 (street admin) 39,700 39,700 39,700 39,700 39,700 Transfers in - #120 50,787 0 0 0 0 Transfers in - #105 (h/m tax -CP advertising) 30,000 30,000 30,000 30,000 30,000 Transfers in - #106 (solid waste repayment) 0 0 40,425 40,425 40,425 Transfers in - #310 0 0 0 198,734 490,500 Transfers in - #402 (storm admin) 13,400 13,400 13,400 13,400 13,400 133,887 83,100 123,525 322,259 614,025 Total General Fund Revenue 37,208,871 45 38,396,726 39,384,769 39,996,987 41,993,425 CITY OF SPOKANE VALLEY, WA 2017 Budget - Other Funds Detail Revenues by Type 101 Street Fund Utilities tax Motor Vehicle Fuel (Gas) Tax Multimodal Transportation Revenue Right -of -Way Maintenance Fee Investment Interest Street Maintenance & Repair Charges Other Miscellaneous Revenues & Grants Transfers in - #302 2013 Actual 2014 Actual 2015 Actual 2016 Amended Budget 2017 Proposed Budget 2,562,722 2,461,060 2,257,184 2,340,000 2,200,000 1,868,055 1,878,476 1,935,629 2,004,900 2,040,300 O 0 0 0 98,868 O 0 0 50,000 50,000 O 2,037 3,212 3,000 4,000 7,774 0 0 0 0 182,378 24,587 25,167 56,000 10,000 27,375 0 0 0 0 4,648,304 4,366,160 4,221,192 4,453,900 4,403,168 103 Paths & Trails Fund Motor Vehicle Fuel (Gas) Tax 7,879 7,923 8,164 8,500 8,600 Investment interest 51 34 62 0 0 7,930 7,957 8,226 8,500 8,600 104 Hotel/Motel Tax - Tourism Facilities Fund Hotel/Motel Tax 0 0 182,236 377,000 377,000 Investment interest 0 0 111 0 0 O 0 182,347 377,000 377,000 105 Hotel/Motel Tax Fund Hotel/Motel Tax Investment Interest 518,672 549,267 581,237 580,000 580,000 387 299 484 300 500 519,059 549,566 581,721 580,300 580,500 106 Solid Waste Sunshine administrative fee 0 0 125,000 125,000 125,000 Grant Proceeds 0 0 0 53,500 26,800 Transfers in - #001 (marketing/education) 0 60,000 0 0 0 O 60,000 125,000 178,500 151,800 107 PEG Fund Comcast PEG contribution 0 0 81,806 90,000 80,000 Investment Interest 0 0 0 0 0 Transfers in - #001 0 0 267,333 0 0 O 0 349,139 90,000 80,000 120 CenterPlace Operating Reserve Fund Investment Interest 0 0 0 0 0 0 0 0 0 0 121 Service Level Stabilization Reserve Fund Investment Interest 6,971 4,697 8,590 6,500 21,900 Transfers in 0 0 0 0 0 6,971 4,697 8,590 6,500 21,900 122 Winter Weather Reserve Fund FEMA Grant Proceeds 0 0 0 38,510 0 Investment Interest 676 456 833 600 600 Transfer in - #001 0 0 0 16,418 0 676 456 833 55,528 600 123 City Facilities Repair & Replacement Fund Investment Interest 1,607 1,083 1,323 700 0 Transfers in 0 0 0 0 0 1,607 1,083 1,323 700 0 204 Debt Service - LTGO 03 Fund 2014 LTGO Bond issue proceeds 0 7,660,694 0 0 0 Facilities District Revenue 437,120 423,844 373,800 380,300 379,750 Transfers in - #001 0 0 0 198,734 397,350 Transfers in -#301 92,951 89,559 82,150 83,400 79,426 Transfers in -#302 92,952 89,559 82,150 83,400 79,425 623,023 8,263,656 538,100 46 745,834 935,951 301 REET 1 Capital Projects Fund REET 1 - 1st Quarter Percent Investment Interest 302 REET 2 Capital Projects Fund REET 2 - 2nd Quarter Percent Investment Interest CITY OF SPOKANE VALLEY, WA 2017 Budget - Other Funds Detail Revenues by Type 2013 Actual 707,104 1,138 708,242 614,929 2014 Actual 2015 Actual 790,781 1,065,789 793 1,653 791,574 1,067,442 776,648 1,065,789 2016 Amended Budget 2017 Proposed Budget 1,000,000 800,000 1,000 1,700 1,001,000 801,700 1,000,000 800,000 1,349 909 1,662 1,000 1,700 616,278 777,557 1,067,451 1,001,000 801,700 303 Street Capital Projects Fund Grant Proceeds 3,475,351 1,825,974 8,223,959 8,149,606 3,756,320 Developer Contributions 0 541 363,894 275,087 40,097 Transfers in - #101 138 5,038 123,955 0 0 Transfers in -#301 Capital Projects 589,534 58,607 567,113 742,503 437,002 Transfers in -#302 Special Capital Projects 153,243 501,736 331,099 382,816 1,173,230 Transfers in - #311 77,720 0 0 0 0 Transfers in - #312 Appleway Landscaping 8,348 253,645 0 0 0 Transfers in -#312 Sullivan Rd W Bridge 0 443,688 42,730 1,467,779 10,000 Transfers in - #312 Pines Underpass Pinecroft 0 0 0 0 0 Transfers in -#312 Euclid Ave - Flora to Barker 0 0 0 50,000 1,750,000 Transfers in - #312 8th & Carnahan Intersectior 0 0 0 415,000 0 Miscellaneous 77 21 87 0 0 4,304,412 3,089,249 9,652,837 11,482,791 7,166,649 309 Parks Capital Protects Fund Grant Proceeds 0 0 1,560 432,007 3,217,267 Contributions and Donations 25,000 7,850 0 0 0 Investment Interest 660 444 813 500 800 Transfers in - #001 50,000 242,298 115,575 267,525 160,000 Transfers in - #103 0 50,000 0 9,300 0 Transfers in - #105 0 0 68,000 60,650 0 Transfers in -#312 0 911,433 524,812 72,940 561,915 75,660 1,212,025 710,760 842,922 3,939,982 310 Civic Facilities Capital Projects Fund Sale of land 0 839,285 0 0 0 Investment Interest 1,771 1,193 2,113 1,200 1,200 Transfers in - #001 Future C.H. bond pmt > $424.6k lease pmt 0 0 67,600 72,500 0 Future C.H. o&m costs 0 0 271,700 271,700 0 Transfers in - #312 0 0 58,324 0 0 1,771 840,478 399,737 345,400 1,200 311 Pavement Preservation Fund Grants 35,995 2,042,715 835,224 2,063,000 340,800 Investment Interest 2,751 1,853 3,389 0 0 Transfers in - #001 0 888,823 920,000 943,800 953,200 Transfers in - #101 282,000 282,000 206,618 67,342 67,342 Transfers in - #123 616,284 616,284 616,284 559,808 0 Transfers in -#301 150,000 184,472 251,049 365,286 660,479 Transfers in -#302 150,000 184,472 251,049 365,286 660,479 1,237,030 4,200,619 3,083,613 4,364,522 2,682,300 312 Capital Reserve Fund Developer Contributions 3,180 4,675 0 0 0 Investment Interest 0 0 0 0 1,000 Transfers in -#001 7,826,207 2,443,507 1,783,512 1,828,723 0 7,829,387 2,448,182 1,783,512 1,828,723 1,000 313 City Hall Construction Fund Investment Interest 0 0 0 0 0 Transfers in -#312 0 0 5,162,764 7,946,088 0 0 0 5,162,764 7,946,088 0 47 CITY OF SPOKANE VALLEY, WA 2017 Budget - Other Funds Detail Revenues by Type 2013 Actual 314 Railroad Grade Separation Projects Fund Grant Proceeds 0 Transfers in - #001 0 Transfers in - #301 0 Transfers in - #312 0 0 2014 Actual 0 0 0 0 0 2015 Actual 2016 Amended Budget O 230,000 O 0 O 20,000 O 500,000 2017 Proposed Budget 489,921 1,200,000 280,079 0 O 750,000 1,970,000 402 Stormwater Management Fund Stormwater Management Fee 1,869,081 1,865,413 1,861,368 1,870,000 1,860,000 Grant Proceeds 233,165 76,097 423,332 223,800 210,000 Developer Contributions 0 51,492 0 0 0 Miscellaneous Revenue 4,143 1,500 0 0 0 Investment Interest 1,992 1,342 2,455 1,500 2,500 Transfers in - #403 0 0 120,000 0 0 2,108,381 1,995,844 2,407,155 2,095,300 2,072,500 403 Aquifer Protection Area Fund Spokane County 484,343 461,828 533,593 400,000 460,000 Grant Proceeds 859,310 699,913 1,036,603 0 0 Investment Interest 0 0 0 0 0 Transfers in - #402 (DOE for Decant Proj) 0 50,125 0 0 0 1,343,653 1,211,866 1,570,196 400,000 460,000 501 Equipment Rental & Replacement Fund Investment Interest 1,176 792 1,449 1,000 2,000 Interfund Equip & Vehicle Lease 177,744 102,744 35,544 106,000 146,429 Transfers in - #001 (CenterPlace kitchen reser 0 0 0 0 36,600 Transfers in - #101 0 25,849 0 0 0 Transfers in - #402 0 25,843 0 0 0 178,920 155,228 36,993 107,000 185,029 502 Risk Management Fund Transfers in - #001 Investment Interest 319,000 7 319,007 325,000 325,000 325,000 350,000 5 8 0 0 325,005 325,008 325,000 350,000 Total of"Other Fund" Revenues 24,530,311 30,301,203 33,283,940 38,986,508 26,991,579 General Fund Revenues 37,208,871 38,396,726 39,384,769 39,996,987 41,993,425 Total Revenues 61,739,182 68,697,929 72,668,709 78,983,495 68,985,004 48 CITY OF SPOKANE VALLEY, WA 2017 Budget Expenditures by Fund and Department General Fund Council $ 542,872 City Manager 1,234,129 Public Safety 25,095,372 Operations & Administrative Deputy City Manager 750,277 Finance 1,282,460 Human Resources 262,417 Public Works 981,932 City Hall Operations and Maintenance 303,918 Community & Economic Development Administration 282,962 Economic Development 733,632 Development Services 1,418,984 Building 1,390,834 Parks & Recreation Administration 288,964 Maintenance 861,350 Recreation 235,995 Aquatics 469,350 Senior Center 95,916 CenterPlace 1,261,208 General Government 4,951,100 Total General Fund $ 42,443,672 Other Funds Street Fund $ 4,851,244 Paths & Trails Fund 0 Hotel/Motel Tax - Tourism Facilities Fund 0 Hotel/Motel Tax Fund 634,000 Solid Waste 151,800 PEG Fund 262,500 CenterPlace Operating Reserve Fund 0 Service Level Stabilization Fund 0 Winter Weather Reserve Fund 500,000 Civic Facility Replacement Fund 0 LTGO Bond Debt Service Fund 940,000 REET 1 Capital Projects Fund 1,456,986 REET 2 Capital Projects Fund 1,913,134 Street Capital Projects Fund 7,166,649 Parks Capital Projects Fund 3,904,182 Civic Facilities Capital Projects Fund 490,500 Pavement Preservation 3,050,000 Capital Reserve Fund 2,321,915 City Hall Construction Fund 5,344,219 Railroad Grade Separation Projects 1,970,000 Stormwater Management Fund 2,459,072 Aquifer Protection Area 530,000 Equipment Rental & Replacement (ER&R) 0 Risk Management Fund 350,000 Total Other Funds $ 38,296,201 Total All Funds $ 80,739,873 49 Community & Economic Development 9°% CITY OF SPOKANE VALLEY, WA 2017 General Fund Expenditures $ 42,443,672 Public Safety 59% Public Works 3% Operation & Administrative 5% Council & Executive 4% 50 General Government 12% Parks & Recreations 8% Tourism Promotion 1% Street Fund 6% CITY OF SPOKANE VALLEY, WA 2017 City Wide Expenditures $ 80,739,873 Capital Projects Funds 34% General Government 6% Risk Management 00/ Debt Service Parks & Recreation —` 4% Community & Economic Development 5% Council / Executive/ Ops & Admin 7% 1% �Stormwater & APA Funds 4% Other Activities Public Safety 31% 1% 51 City Council City Manager and City Attorney Public Safety Operations & Administrative Deputy City Manager Finance Human Resources Wages, Benefits & Payroll Taxes CITY OF SPOKANE VALLEY, WA 2017 Budget General Fund Expenditures by Department and Type Supplies Services & Charges Intergovernmental Interfund $ 230,922 $ 4,550 $ 307,400 $ 0 $ 1,083,066 5,405 145,658 0 3,000 26,500 340,315 24,580,557 Capital Expenditures 0 $ 0 0 Total 0 $ 542,872 0 1,234,129 145,000 25,095,372 670,977 2,000 77,300 0 0 0 750,277 1,252,460 6,000 24,000 0 0 0 1,282,460 237,356 730 24,331 0 0 0 262,417 Public Works 905,382 14,750 61,800 0 0 0 981,932 City Hall Operation and Maintenance 98,818 30,000 175,100 0 0 0 303,918 Planning & Community Development Admin 261,262 3,100 18,600 0 0 0 282,962 Economic Development 411,232 1,100 321,300 0 0 0 733,632 Development Services 1,119,084 16,550 263,350 20,000 0 0 1,418,984 Building 1,279,834 32,700 78,300 0 0 0 1,390,834 Parks & Recreation Administration 242,414 7,400 39,150 0 0 0 288,964 Maintenance 0 5,500 855,850 0 0 0 861,350 Recreation 168,645 8,200 59,150 0 0 0 235,995 Aquatics 0 3,200 466,150 0 0 0 469,350 Senior Center 89,416 1,600 4,900 0 0 0 95,916 CenterPlace 491,639 73,524 351,045 0 0 345,000 1,261,208 General Government 0 145,450 1,270,000 328,500 3,097,150 110,000 4,951,100 Total $ 8,545,507 $ 388,259 $ 4,883,699 $ 24,929,057 $ 3,097,150 $ 600,000 $ 42,443,672 52 CITY OF SPOKANE VALLEY, WA 2017 Budget General Fund Department Changes from 2016 to 2017 City Council Wages, Payroll Taxes & Benefits Supplies Services & Charges Total City Manager Wages, Payroll Taxes & Benefits 651,463 Supplies 3,350 Services & Charges 62,490 Total 2016 Budget 220,634 4,550 281,685 506,869 717,303 2017 Budget Difference Between 2016 and 2017 Increase Decrease) $ 11 230,922 10,288 4.66% 4,550 0 0.00% 307,400 25,715 9.13% 542,872 36,003 7.10% 655,325 3,862 0.59% 3,300 (50) (1.49%) 65,810 3,320 5.31% 724,435 7,132 0.99% Legal Wages, Payroll Taxes & Benefits 397,206 427,741 30,535 7.69% Supplies 2,010 2,105 95 4.73% Services & Charges 95,735 79,848 (15,887) (16.59%) Total 494,951 509,694 14,743 2.98% Public Safety Non -Departmental (Fines & Forfeits) 649,500 602,250 (47,250) (7.27%) Wages/Payroll Taxes/Benefits 6,500 3,000 (3,500) (53.85%) Supplies 27,500 26,500 (1,000) (3.64%) Other Services and Charges 394,750 340,315 (54,435) (13.79%) Intergovernmental Services 23,625,499 23,978,307 352,808 1.49% Total 24,703,749 24,950,372 246,623 1.00% Deputy City Manager Wages, Payroll Taxes & Benefits 660,102 670,977 10,875 1.65% Supplies 2,500 2,000 (500) (20.00%) Services & Charges 74,400 77,300 2,900 3.90% Total 737,002 750,277 13,275 1.80% Finance/IT Wages, Payroll Taxes & Benefits 1,222,580 1,252,460 29,880 2.44% Supplies 6,000 6,000 0 0.00% Services & Charges 24,500 24,000 (500) (2.04%) Total 1,253,080 1,282,460 29,380 2.34% Human Resources Wages, Payroll Taxes & Benefits 230,698 237,356 6,658 2.89% Supplies 700 730 30 4.29% Services & Charges 24,296 24,331 35 0.14% Total 255,694 262,417 6,723 2.63% Public Works Wages, Payroll Taxes & Benefits 876,364 905,382 29,018 3.31% Supplies 18,000 14,750 (3,250) (18.06%) Services & Charges 72,506 61,800 (10,706) (14.77%) Total 966,870 981,932 15,062 1.56% City Hall Operations & Maintenance Wages, Payroll Taxes & Benefits 0 98,818 Supplies 0 30,000 Services & Charges 0 175,100 Total 0 303,918 98,818 30,000 174,600 303,418 0.00% 0.00% 0.00% 0.00% (Continued to next page) CITY OF SPOKANE VALLEY, WA 2017 Budget General Fund Department Changes from 2016 to 2017 (Continued from previous page) 2016 Budget 2017 Budget Difference Between 2016 and 2017 Increase Decrease) Community Dev.-Admin Wages, Payroll Taxes & Benefits 250,407 261,262 10,855 4.33% Supplies 3,100 3,100 0 0.00% Services & Charges 18,600 18,600 0 0.00% Total 272,107 282,962 10,855 3.99% Community Dev.-Economic Development Wages, Payroll Taxes & Benefits 317,257 411,232 93,975 29.62% Supplies 1,100 1,100 0 0.00% Services & Charges 226,800 271,300 44,500 19.62% Total 545,157 683,632 138,475 25.40% Community Dev.-Dev. Sery Wages, Payroll Taxes & Benefits 1,173,837 1,119,084 (54,753) (4.66%) Supplies 21,050 16,550 (4,500) (21.38%) Services & Charges 271,750 263,350 (8,400) (3.09%) Intergovernmental Services 20,000 20,000 0 0.00% Total 1,486,637 1,418,984 (67,653) (4.55%) Community Dev.-Building Wages, Payroll Taxes & Benefits 1,256,565 1,279,834 23,269 1.85% Supplies 28,200 32,700 4,500 15.96% Services & Charges 59,400 78,300 18,900 31.82% Total 1,344,165 1,390,834 46,669 3.47% Parks & Rec- Admin Wages, Payroll Taxes & Benefits 246,821 242,414 (4,407) (1.79%) Supplies 5,900 7,400 1,500 25.42% Services & Charges 29,150 39,150 10,000 34.31% Total 281,871 288,964 7,093 2.52% Parks & Rec- Maintenance Wages, Payroll Taxes & Benefits 0 0 0 0.00% Supplies 5,500 5,500 0 0.00% Services & Charges 826,543 855,850 29,307 3.55% Total 832,043 861,350 29,307 3.52% Parks & Rec- Recreation Wages, Payroll Taxes & Benefits 161,397 168,645 7,248 4.49% Supplies 7,600 8,200 600 7.89% Services & Charges 72,200 59,150 (13,050) (18.07%) Total 241,197 235,995 (5,202) (2.16%) Parks & Rec- Aquatics Wages, Payroll Taxes & Benefits 0 0 0 0.00% Supplies 14,000 3,200 (10,800) (77.14%) Services & Charges 447,200 454,150 6,950 1.55% Total 461,200 457,350 (3,850) (0.83%) Parks & Rec- Senior Center Wages, Payroll Taxes & Benefits 88,481 Supplies 1,600 Services & Charges 5,700 Total 95,781 89,416 935 1.06% 1,600 0 0.00% 4,900 (800) (14.04%) 95,916 135 0.14% (Continued to next page) CITY OF SPOKANE VALLEY, WA 2017 Budget General Fund Department Changes from 2016 to 2017 (Continued from previous page) 2016 Budget 2017 Budget Difference Between 2016 and 2017 Increase Decrease) Parks & Rec- CenterPlace Wages, Payroll Taxes & Benefits 475,925 491,639 15,714 3.30% Supplies 76,024 73,524 (2,500) (3.29%) Services & Charges 330,274 326,295 (3,979) (1.20%) Total 882,223 891,458 9,235 1.05% General Government Wages, Payroll Taxes & Benefits 0 0 0 0.00% Supplies 87,600 145,450 57,850 66.04% Services & Charges 1,161,800 756,900 (404,900) (34.85%) Intergovernmental Services 295,100 328,500 33,400 11.32% Capital outlays 43,000 10,000 (33,000) (76.74%) Total 1,587,500 1,240,850 (346,650) (21.84%) Transfers out - #204 198,734 397,350 198,616 99.94% Transfers out - #309 230,300 160,000 (70,300) (30.53%) Transfers out - #310 Bond pmt > $434,600 lease pmt 72,500 0 (72,500) (100.00%) Estimated City Hall O&M costs 271,700 0 (271,700) (100.00%) Total 344,200 0 (344,200) (100.00%) Transfers out - #311 Pavement Preservation 943,800 953,200 9,400 1.00% Total 943,800 953,200 9,400 1.00% Transfers out - #501 0 36,600 36,600 0.00% Transfers out - #502 325,000 350,000 25,000 7.69% Total recurring expenditures 39,707,433 40,053,822 346,389 0.87% Summary by Category Wages, Payroll Taxes & Benefits 8,236,237 8,545,507 309,270 3.75% Supplies 316,284 388,259 71,975 22.76% Services & Charges 4,479,779 4,283,849 (195,930) (4.37%) Transfers out - #204 198,734 397,350 198,616 99.94% Transfers out - #309 230,300 160,000 (70,300) (30.53%) Transfers out - #310 344,200 0 (344,200) (100.00%) Transfers out - #311 943,800 953,200 9,400 1.00% Transfers out - #501 0 36,600 36,600 0.00% Transfers out - #502 325,000 350,000 25,000 7.69% Non -Departmental (fines & forfeits) 649,500 602,250 (47,250) (7.27%) Intergovernmental Svc (public safety) 23,625,499 23,978,307 352,808 1.49% Intergovernmental Svc 315,100 348,500 33,400 10.60% Capital outlay 43,000 10,000 (33,000) (76.74%) 39,707,433 40,053,822 346,389 0.87% Fund: 001 Dept: 011 General Fund Legislative Branch Spokane Valley 2017 Budget This department accounts for the cost of providing effective elected representation of the citizenry in the governing body. The Council makes policy decisions for the City and is accountable to Spokane Valley citizens by making decisions regarding how resources are allocated, the appropriate levels of service, and establishing goals and policies for the organization. Accomplishments for 2016 • Continued to work with state and federal legislators for possible financial assistance for the Barker and Pines Road Grade Separation Projects. • Worked with Council and Staff to develop a strategic plan for funding all grade separation projects. • Continued to expand, where possible, economic development efforts. This included completing the design for a new City Hall structure, developing the necessary financing including the issuance of LTGO Bonds, and award of the construction contract; and completion of the retail improvement study and phase 1 of a tourism enhancement study. • Worked with Council and Staff to develop a strategic plan to address structural funding deficits in Street Fund #101 and Pavement Preservation Fund #311. • Evaluated and discussed increasing costs of public safety, including law enforcement. Continued to seek long-term solutions to control costs while at the same time better serving the community. This in -part involved beginning negotiations with Spokane County for Law Enforcement Services and continuing to analyze costs of all public safety related contracts. • Worked with the Community, Planning Commission and Staff to complete the Comprehensive Plan update. Goals for 2017 • Continue to work with state and federal legislators towards financial assistance for both the Barker and Pines Road Grade Separation Projects. • Develop a strategic plan for financing and completion of all grade separation projects. • Continue and expand where possible, economic development efforts. Complete the development of implementation strategies for the retail and tourism studies that were completed in 2016. • Pursue a sustainability plan in connection with the City's Street Preservation program, to include sustained funding in the Street Fund #101 and Pavement Preservation Fund #311, to address concerns beyond the year 2021. • Evaluate and discuss increasing costs of public safety, including law enforcement. Continue the ongoing process to develop long-term solutions to controlling costs while better serving the community. • Pursue financing for Browns Park, Balfour Park and Appleway Trail amenities. Personnel - FTE Equivalents Mayor Council Total FTEs Budget Summary 2013 Actual 1.0 6.0 7.0 2014 Actual 1.0 6.0 7.0 2015 Actual 1.0 6.0 7.0 2016 Budget 1.0 6.0 7.0 2017 Budget 1.0 6.0 7.0 Budget Detail Wages, Payroll Taxes & Benefits $ 174,891 $ 191,856 $ 206,705 $ 220,634 $ 230,922 Supplies 3,577 2,379 2,908 4,550 4,550 Services&Charges 161,333 211,573 157,665 281,685 307,400 Total Legislative Branch $ 339,801 $ 405,808 $ 367,278 $ 506,869 $ 542,872 56 Fund: 001 Dept: 013 General Fund Executive Branch Spokane Valley 2017 Budget 013 - City Manager This department is accountable to the City Council for the operational results of the organization, effective support of elected officials in achieving their goals; fulfillment of the statutory requirements of the City Manager, implementation of City Council policies, and provision of a communication linkage between citizens, the City Council, City departments, and other govemment agencies. Accomplishments for 2016 • Worked to support the City Council's 2016 Goals as referenced under the Legislative Budget. • Prepared a balanced 2017 Budget that met City Council's goal to reflect recurring expenditure growth at less than 1%. • Worked with State Lobbyists on behalf of the interests of our City. • Prepared a proposed 2017 Council Legislative Agenda that was specifically discussed by Council on three separate occasions including their September 6, 2016 adoption of the agenda itself. This was followed by an October 18, 2016 meeting with our local legislative delegation where the Councilmembers and Legislators discussed areas of common interest including our legislative agenda. • Continued efforts to strengthen economic development including working with the Community and Economic Development Department to complete the Retail Enhancement Study, Phase 1 of the Tourism Enhancement a strategic economic development plan and the recruitment of an Economic Development Specialist to our City. Study and the Comp Plan. • Worked with Staff and Council on a City Hall construction project that included --completion of the design --developing the necessary financing including the issuance of LTGO Bonds --award of the construction contract Noteworthy is that this resulted in our fixed annual bond payment over the next 30 -years of $399,900 is $34,700 less than our current annual lease payment of $434,600. • Provided leadership support for the strengthening and promoting of Spokane Valley's core values and fiscal policies. Goals for 2017 • Work to support City Council's 2017 Goals as referenced under the Legislative Budget. • Present Council with a balanced 2018 Budget. • Work with Federal and State Lobbyists on behalf of the interests of our City. • Prepare the Legislative Agenda for Council consideration. • Strengthen economic development. • Lead the City through a seamless move to the new City Hall building. 015 - Legal Accomplishments for 2016 • Assisted in review of the Comprehensive Plan Update. • Finalized major revisions to purchasing laws and procedures. • Assisted in transition to new City Manager. • Assisted in amending state law on nuisance abatement cost recovery. • Assisted in contracting process for new solid waste collection agreement. • Led development and adoption of permanent marijuana regulations. • Assisted in major review of law enforcement contractual issues. Goals for 2017 • Have a fully operational office that proactively assists in program development, advises all departments on legal issues in a timely manner and manages all potential and existing litigation. • Work with Community and Economic Development and Finance in identifying and implementing economic development options. • Assist other departments in analyzing and mapping existing processes to determine compliance with laws and whether higher levels of customer service can be achieved. • Assist Council and staff in accomplishing items on the 2017 Legislative Agenda. (continued to next page) 57 Fund: 001 Dept: 013 General Fund Executive Branch Spokane Valley 2017 Budget Personnel - FTE Equivalents City Manager City Attorney City Clerk Deputy City Attorney Deputy City Clerk Administrative Assistant - Legal Administrative Assistant (CC) Executive Assistant (CM) Total FTEs Intems Budget Summary 2013 Actual 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 8.0 2014 Actual 2015 Actual 2016 Budget 2017 Budget 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 8.0 8.0 8.0 8.0 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages, Payroll Taxes & Benefits $ 922,074 $ 953,434 $ 978,742 $ 1,048,669 $ 1,083,066 Supplies 1,811 2,787 2,869 5,360 5,405 Services & Charges 159,747 126,171 142,165 158,225 145,658 Nonrecurring expenses 0 0 3,161 453,116 0 Total Executive & Legislative Support $ 1,083,632 $ 1,082,392 $ 1,126,937 $ 1,665,370 $ 1,234,129 58 Fund: 001 Dept: 016 General Fund Public Safety Spokane Valley 2017 Budget The Public Safety department budget provides funds for the protection of persons and property in the city. The City contracts with Spokane County for law enforcement, district court, prosecutor services, public defender services, probation services, jail and animal control services. See following page for detail information on each budgeted section. Judicial System - The Spokane County District Court is contracted 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 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 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 services to include licensing, care and treatment of lost or stray animals, and response to potentially dangerous animal confrontations. Non -Departmental Fines and forfeitures to the State of Washington Grant expenditures Capital outlay - CAD / RMS - Nonrecurring Total $ 2,168,892 20,476,070 1,389,039 294,121 602,250 20,000 145,000 $ 25,095,372 59 Judicial System: District Court Contract Public Defender Contract Prosecutor Contract Pretrial Services Contract Subtotal Judicial System Law Enforcement System: City of Spokane Valley 2017 Budget 016 - Public Safety 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 868,861 $ 820,628 $ 656,129 $ 822,076 $ 769,083 617,999 649,831 710,289 832,182 721,630 406,875 410,196 479,782 448,722 542,747 108,655 117,048 131,041 122,372 135,432 2,002,390 1,997,703 1,977,241 2,225,352 2,168,892 Sheriff Contract 17,701,607 17,731,187 18,205,133 19,713,401 20,036,884 Emergency Management Contract 80,428 82,237 88,070 90,558 89,371 Wages, Payroll Taxes & Benefits 3,642 6,506 2,617 6,500 3,000 Operating Supplies 3,980 3,388 2,144 4,000 4,000 Repair & Maintenance. Supplies 2,343 3,343 2,007 3,500 2,500 Professional Services 0 0 1,334 0 0 Electricity/Gas 21,865 20,887 18,953 22,000 22,000 Water 1,210 1,497 1,275 1,600 1,600 Sewer 851 850 995 900 2,500 Waste Disposal 3,460 3,462 3,372 3,500 3,500 Law Enf. Bldg Maintenance Contract 80,283 58,331 76,076 60,000 70,000 Taxes and Assessments 715 715 715 750 715 Miscellaneous Services/Contingency 0 250 550 250,000 180,000 Crywolf Charges & Fees 44,412 48,348 48,419 50,000 50,000 Umpqua Bank Fees 5,111 5,726 9,418 6,000 10,000 Subtotal Law Enforcement System: 17,949,907 17,966,727 18,461,078 20,212,709 20,476,070 Jail System: Jail Contract 713,292 996,557 1,213,502 1,301,055 1,389,039 Work Release (Geiger) 508,704 151,158 0 0 0 Subtotal Jail System: 1,221,996 1,147,715 1,213,502 1,301,055 1,389,039 Other: Fines & Forfeitures State Remittance 664,681 637,014 587,446 649,500 602,250 Animal Control Contract 295,556 287,081 290,228 295,133 294,121 Non -Capital Equipment for JAG Grant 3,272 0 4,579 20,000 20,000 Non -Capital Equip for ARRA JAG Grant 203 0 0 0 0 LEC Labor Contract Settlement 0 0 224,244 0 0 Settle & Adjust 118,273 0 (753,653) 0 0 Small Tools & Minor Equipment 0 0 4,610 0 0 Non -Capital Equipment for 2011 JAG Grant 9,297 8,010 0 0 0 Non -Capital Equipment for 2012 JAG Grant 23,978 0 0 0 0 Non -Capital Equipment for 2013 JAG Grant 0 20,495 0 0 0 Non -Capital Equipment for WASPC Grant 4,771 6,020 0 0 0 JAG - Wireless Cards 10,119 3,979 0 0 0 SVPD Wireless Cards 0 434 0 0 0 Travel/Mileage/Meals 0 0 74 0 0 Nighttime Seatbelt Patrol Overtime 1,611 1,647 0 0 0 Maintenance 0 7,468 4,253 0 0 Drive Hammered - Get Nailed Grant 10,811 19,802 8,743 0 0 Building Repair & Maintenance 0 7,679 0 0 0 Office Furniture & Equipment 0 14,480 36,823 0 0 Distracted Driving 0 0 331 0 0 Click it or Ticket 0 0 714 0 0 TZT seatbelt patrols 0 0 724 0 0 Capital outlay - CAD / RMS 0 0 294,575 140,281 145,000 Subtotal Other: 1,142,572 1,014,109 703,691 1,104,914 1,061,371 Total Public Safety $ 22,316,865 $ 22,126,254 $ 22,355,512 $ 24,844,030 $ 25,095,372 60 $25,000,000 - $20,000,000 - $15,000,000 - $10,000,000 - $5,000,000 - $- City of Spokane Valley 2017 Budgeted Contract Expenditures District Court Public Defender Prosecutor Sheriff Contract Emergency Law Enf. Bldg Jail Contract Animal Control Management Maintenance Contract Contract Contract Contract Contract Contract 61 Fund: 001 Dept: 018 General Fund Operation & Administrative Services Spokane Valley 2017 Budget The Operations & Administrative Services Department is composed of three divisions, the Deputy City Manager Division, the Finance Division, and the Human Resources Division. 013 - Deputy City Manager Division The Deputy City Manager (DCM) supervises the Operations & Administrative Services Department, assists the City Manager in organizing and directing the other operations of the City, and assumes the duties of City Manager in his/her absence. Accomplishments for 2016 • Worked to support the 2016 Goals of the Legislative and Executive Branch. • Continued to evaluate the Spokane Valley police department Power Shift that was implemented in 2015, including: - Response times for specific priority calls compared in days with the power shift implemented to non -power shift days. - Percentage of deputy initiated incidents including the development of trendline comparisons between power shift and non -power shift areas. - Percentage of property crime cases solved compared to unincorporated areas where changes have not taken place. • Worked towards the development of a 2017 Business Plan that is a guide to the preparation of the 2017 Budget by linking together community priorities, financial projections and City Council goals. • In conjunction with the Finance and Legal Departments, lead the effort to issue limited tax general obligation (LTGO) bonds, the proceeds of which are being used towards the construction of a new City Hall building. • Continued public information support that informed and the community about the status of various projects including: - a variety of construction projects - Sullivan Road Bridge Replacement Project - City Hall design, bond issue and construction --Comp Plan development • In conjunction with the Legal and Public Works departments, developed a Request for Proposals for solid waste collection services within the City. Goals for 2017 • Support the 2017 Goals of the Legislative and Executive Branch. • Work with the City Manager and Staff to develop the 2018 Business Plan. • Continue with the annual process of evaluating public safety contracts to ensure the City is receiving services in the most efficient, effective and cost contained manner possible. • Continue to provide public information support. • In conjunction with the Legal and Public Works departments, by the Spring of 2017, complete the process leading to the selection of a solid waste collection provider. • Coordinate the efforts of the City Hall construction and moving teams. Personnel - FTE Equivalents Deputy City Manager Senior Administrative Analyst Public Information Officer Administrative Analyst Office Assistant II Office Assistant I Total FTEs Budget Summary 2013 Actual 1.0 1.0 1.0 1.0 1.0 1.0 6.0 2014 Actual 1.0 1.0 1.0 1.0 1.0 1.0 6.0 2015 Actual 1.0 1.0 1.0 1.0 1.0 1.0 6.0 2016 Budget 1.0 1.0 1.0 1.0 1.0 1.0 6.0 2017 Budget 1.0 1.0 1.0 1.0 1.0 1.0 6.0 Intern 1.0 1.0 1.0 1.0 1.0 Budget Detail Wages, Payroll Taxes & Benefits $ 402,012 $ 496,278 $ 612,576 $ 660,102 $ 670,977 Supplies 1,153 2,519 1,089 2,500 2,000 Services&Charges 56,162 36,663 59,134 74,400 77,300 Total Deputy City Manager Division $ 459,327 $ 535,460 $ 672,799 $ 737,002 $ 750,277 62 Fund: 001 Dept: 018 General Fund Operation & Administrative Services Spokane Valley 2017 Budget 014 - Finance Division The Finance Division provides financial management services for all City departments. Programs include accounting and financial reporting, payroll, accounts payable, purchasing, budgeting and financial planning, treasury, information technology and investments. The division is also responsible for generating and analyzing financial data related to the City's operations. The department prepares Finance Activity Reports for review by the City Manager and City Council as well as the Comprehensive Annual Financial Report (CAFR) that is subject to an annual audit by the Washington State Auditor's Office. Accomplishments for 2016 • Implemented State Auditor recommendations. • Improved financial statement preparation process and accuracy. • Completed the 2015 CAFR by May 30, 2016. • Acquired four vehicles included in the 2016 budget, including one small SUV for Community and Economic Development, one car and one small truck for Parks and Recreation, and one truck split half-time between the Street Fund and Stormwater Fund. • Completed the process of virtualizing servers using VMware. • Worked with all City departments to implement new purchasing procedures. • Implemented new reporting standards for pensions for preparation of the 2015 CAFR. • Replaced approximately 36 desktop computers that were at the end of their life cycle. • Completed the third and final phase of a network switch replacement project. • Worked with Parks and Recreation to upgrade the cash registers and point of sales system at the three City pools. • In conjunction with the City's Deputy City Manager and Legal departments, worked with a financial advisor and bond underwriter to issue limited tax general obligation (LTGO) bonds, the proceeds of which are being used towards the construction of a new City Hall building. • Began planning for the physical and technological transfer of operations to the new City Hall building. Goals for 2017 • Implement 2015 audit recommendations. • Work towards continued improvement and accuracy in the financial statement preparation process. • Complete the 2016 CAFR by May 30, 2017, and receive a "clean audit opinion". • Maintain consistent levels of service in payroll, accounts payable, budget development, periodic financial report preparation, and information technology services. • Continue with the ongoing process of refining the replacement program for IT resources. • Work with all City departments for a seamless physical and technological transfer of operations to the new City Hall building. • Acquire and install equipment necessary for the broadcast of City Council meetings in the Council Chambers of the new City Hall building. Personnel - FTE Equivalents Finance Director Accounting Manager Accountant/Budget Analyst Accounting Technician IT Specialist GIS/Database Administrator Help Desk Technician Total FTEs Budget Summary 2013 Actual 1.00 1.00 3.75 2.00 2.00 1.00 0.00 10.75 2014 Actual 1.00 1.00 3.75 2.00 2.00 1.00 1.00 11.75 2015 Actual 1.00 1.00 3.75 2.00 2.00 1.00 1.00 11.75 2016 Budget 1.00 1.00 3.75 2.00 2.00 1.00 1.00 11.75 2017 Budget 1.00 1.00 3.75 2.00 2.00 1.00 1.00 11.75 Budget Detail Wages, Payroll Taxes & Benefits $ 1,008,218 $ 1,057,271 $ 1,028,666 $ 1,222,580 $ 1,252,460 Supplies 2,791 4,946 2,826 6,000 6,000 Services & Charges 21,218 36,520 30,817 24,500 24,000 Total Finance Division $ 1,032,227 $ 1,098,737 $ 1,062,309 $ 1,253,080 $ 1,282,460 63 Fund: 001 Dept: 018 General Fund Operation & Administrative Services Spokane Valley 2017 Budget 016 - Human Resources Division Human Resources (HR) is administered through the City Manager. The HR operation provides services in compensation, benefits, training and organizational development, staffing, employee relations, and communications. The Human Resources Office also provides Risk Management services as well as Website and Mobile App design and maintenance Accomplishments for 2016 • Redesigned recruitment materials to improve the quality of applicants considered for City positions. • Continued to build the foundation for a lasting Wellness Program through management support and employee involvement. • Redesigned the City's Mobile App to be consistent with the City's website. • Provided support to the Council in their selection of the City Manager. • Continued to provide guidance to City officials through the implementation of the Affordable Care Act. Goals for 2017 • Review City employee policies for compliance with regulations and efficiencies. • Review and archive records maintained by the Human Resources office. • Continue to support employee wellness through attainment of the AWC WellCity Award. • Support Economic Development through Mobile App and Website Support. • Provide Employee Ethics training to City Staff. Personnel - FTE Equivalents Human Resource Manager Human Resources Technician Total FTEs Budget Summary 2013 Actual 1.0 1.0 2.0 2014 Actual 1.0 1.0 2.0 2015 Actual 1.0 1.0 2.0 2016 Budget 1.0 1.0 2.0 2017 Budget 1.0 1.0 2.0 Budget Detail Wages, Payroll Taxes & Benefits $ 197,822 $ 208,063 $ 216,518 $ 230,698 $ 237,356 Supplies 640 679 434 700 730 Services & Charges 13,645 20,941 18,648 24,296 24,331 Total Human Resources Division $ 212,107 $ 229,683 $ 235,600 $ 255,694 $ 262,417 64 Spokane Valley 2017 Budget Fund: 001 Dept: 032 General Fund Public Works The Public Works Department oversees the City's transportation system, which includes construction and maintenance of streets and stormwater systems, operations and maintenance of traffic signs and signals and transportation planning. Accomplishments for 2016 • Implemented the approved capital projects. • Provided planning for development of the updated Transportation Improvement Plan. • Prepared and submitted grant applications for capital projects. • Completed the 2016 Pavement Preservation Projects as approved. Goals for 2017 • Prepare final design for Barker Road Grade Separation Project. • Manage the construction of a new City Hall building. • Implement approved capital projects. • Prepare and submit grant applications for capital projects. Personnel - FTE Equivalents Public Works Director Administrative Assistant Capital Improvements Program Manager Engineer Engineering Technician 1 Engineering Technician 11 Maint/Const Inspector Planning Grants Engineer Senior Engineer Senior Engineer-Proj Mgmt Total FTEs Budget Summary 2013 Actual 1.0 2.0 0.0 1.0 2.0 1.0 0.5 0.0 2.0 1.0 10.500 2014 Actual 1.0 2.0 0.0 1.0 2.0 1.0 0.5 0.375 2.0 1.0 10.875 2015 Actual 1.0 2.0 0.0 1.0 2.0 1.0 0.5 0.375 1.0 2.0 10.875 2016 Budget 1.0 2.0 1.0 1.0 2.0 1.0 0.5 0.375 0.0 2.0 10.875 2017 Budget 1.0 2.0 1.0 1.0 (1) 2.0 (1) 1.0 (1) 0.5 (2) 0.375 (3) 0.0 2.0 (1) 10.875 Budget Detail Wages, Payroll Taxes & Benefits $ 557,708 $ 647,097 $ 684,666 $ 876,364 $ 905,382 Supplies 12,975 10,481 11,149 18,000 14,750 Services & Charges 88,004 51,768 42,913 72,506 61,800 Nonrecurring expenses 0 9,540 0 0 0 Total Public Works $ 658,687 $ 718,886 $ 738,728 $ 966,870 $ 981,932 (1) Only 50% is budgeted to the public works department in the General Fund with the balance budgeted as a part of Capital Projects Funds. (2) This position is budgeted 50% as a part of Capital Projects Funds and 50% Street Fund. (3) This position is budgeted 37.5% to Public Works, 37.5% to Street Fund, and 25% to Stormwater fund. 65 Fund: 001 Dept: 033 General Fund City Hall Operations and Maintenance Spokane Valley 2017 Budget The Public Works Division provides management and oversight of the City Hall Operations and Maintenance Department. This department will be responsible for the overall operations and maintenance of the new City Hall facility, the construction of which broke ground in June of 2016 and is anticipated to be completed in the Fall of 2017. The building is located on a 3.38 acre site at the southeast corner of Sprague Avenue and Dartmouth Road. The City Hall Operations and Maintenance Department will be responsible for, among other things, the grounds maintenance, janitorial services, and maintenance of the HVAC and other building systems. This department will also be responsible for the operations and maintenance of other City facilities, such as the Valley Precinct and the Street Maintenance Shop, as time allows. Personnel - FTE Equivalents Maint Worker - Facilities Total FTEs Budget Summary 2013 Actual 0.0 0.0 2014 Actual 0.0 0.0 2015 Actual 0.0 0.0 2016 Budget 0.0 0.0 2017 Budget 1.0 1.0 Budget Detail Wages, Payroll Taxes & Benefits $ 0 $ 0 $ 0 $ 0 $ 98,818 Supplies 0 0 0 0 30,000 Services & Charges 0 0 0 0 175,100 Total Administrative Division $ 0 $ 0 $ 0 $ 0 $ 303,918 66 Fund: 001 Dept: 050 General Fund Community & Economic Development Administrative Division Spokane Valley 2017 Budget The Administrative Division provides overall management and oversight of the Community Development Department including the permitting operation, long-range planning, development engineering, and code compliance and provides staff support through administration of the department's budget, provides administrative support and department training. Accomplishments for 2016 • Oversaw completion of draft Comprehensive Plan, Retail Study, and Tourism Study. • Continued to implement a document control system for documents and forms. • Assisted in the selection process for the 2016 marketing consultant. • Assisted in the City Hall project. Goals for 2017 • Oversee the adoption process of development regulations. • Oversee completion of economic development strategic plan. • Oversee economic development marketing efforts. • Ensure customer service expectations are met. Personnel - FTE Equivalents Community Development Director Administrative Assistant Total FTEs Budget Summary 2013 Actual 1.0 1.0 2.0 2014 Actual 1.0 1.0 2.0 2015 Actual 1.0 1.0 2.0 2016 Budget 1.0 1.0 2.0 2017 Budget 1.0 1.0 2.0 Budget Detail Wages, Payroll Taxes & Benefits $ 215,537 $ 227,397 $ 237,232 $ 250,407 $ 261,262 Supplies 2,399 3,582 2,553 3,100 3,100 Services & Charges 12,449 12,022 10,785 18,600 18,600 Nonrecurring Professional Services 0 32,410 206,704 350,000 0 Total Administrative Division $ 230,385 $ 275,410 $ 457,274 $ 622,107 $ 282,962 67 Fund: 001 Dept: 051 General Fund Community & Economic Development Economic Development Division Spokane Valley 2017 Budget The Economic Development Division will work closely with the City Manager to pursue economic development strategies which attract and retain businesses within the City. Staff develop collaborative relationships with businesses and economic development partners, use technology to support ED programs, building marketing plans, pursue infrastructure improvements and promote the City to businesses and visitors. Accomplishments for 2016 • Prepared draft Comprehensive Plan. • Developed a retail recruitment strategy. • Completed the Tourism Study. • Continued to collaborate with economic development partners. • Developed a GIS system to promote economic development applications. • Developed tools and programs to support small business retention and expansion. • Worked with Spokane County to extend sewer to the industrial areas. • Conducted selection process for a marketing consultant. • Researched Community Development Block Grant (CDBG) program opportunities. Goals for 2017 • Develop strategic plan for economic development. • Implement the retail recruitment strategy. • Continue to pursue infrastructure improvements to foster economic development. • Continue to implement strategies to promote business growth. • Implement the strategic marketing plan. • Continue to foster relationships with our economic development partners. • Refine the online GIS system to promote economic development. • Identify grant opportunities to support economic development initiatives. • Continue to research CDBG program opportunities. • Develop tools and programs to support small business retention and expansion. Personnel - FTE Equivalents Engineer Senior Planner - CD E.D. Project Specialist Total FTEs Budget Summary 2013 Actual 0.0 0.0 0.0 0.0 2014 Actual 0.0 0.0 0.0 0.0 2015 Actual 0.5 1.0 1.0 2.5 2016 Budget 0.65 1.0 1.0 2.65 2017 Budget 0.65 1.0 1.0 2.65 Budget Detail Wages, Payroll Taxes & Benefits $ 0 $ 0 $ 234,966 $ 317,257 $ 411,232 Supplies 0 0 6 1,100 1,100 Services & Charges 0 0 3,930 226,800 271,300 Nonrecurring Services & Charges 0 0 0 0 50,000 Total Administrative Division $ 0 $ 0 $ 238,902 $ 545,157 $ 733,632 68 Fund: 001 Dept:055/056 General Fund Community & Economic Development Development Services Division Spokane Valley 2017 Budget The Development Services Division reflects the consolidation of the Engineering and Planning Divisions of the Community and Economic Development Department. The Development Services Division is responsible for providing professional policy guidance to the City Council and Planning Commission on such issues as land use, access management, Shoreline Management Act, annexation, growth targets, water quality, public works issues and more. Staff is responsible for processing land use and home business permits, reviewing environmentally sensitive areas, for the review and inspection of stormwater management in private development, reviewing access management and other public works improvements in private development applications, administering the State Environmental Protection Act (SEPA). The right of way (ROW) inspection program provides inspection services to assure the compliance with the RPCP and the durability and safety of work done in the public ROW. Accomplishments for 2016 • Submitted final Forker Draw Floodplain Application to FEMA. • Completed Water District Research. • Participated in Regional Water Resource meetings. • Provided high quality customer service by maintaining engineering/planning review times of less than 2 weeks. • Completed research for regional mineral resources. • Participated in the creation of a City GIS system. • Completed the 2016 Annual Comprehensive Plan amendments. • Participated in the review of the Municipal Code for updates. • Completed marijuana regulations update. Goals for 2017 • Continue work on permit process and customer service improvement. • Continue work on Regional Low Impact Development Standards. • Continue to work on unstudied flood zones within the City. • Stay up to date with Regional Water right issues. • Assist in the finalization of Municipal Code updates. • Process the 2017 Comprehensive Plan amendments. Personnel - FTE Equivalents Development Services Manager Engineer Assistant Engineer Senior Planner Planner Maint/Construction Inspector Code Enforcement Officer ROW Inspector Office Assistant I Senior Engineer Engineering Technician Total FTEs Budget Summary 2013 Actual 0.0 1.5 1.0 0.0 0.0 2.0 0.0 0.0 1.0 1.0 1.5 8.00 2014 Actual 0.0 1.5 1.0 0.0 0.0 1.0 0.0 1.0 1.0 1.0 0.5 7.00 2015 Actual 1.0 2.0 1.0 1.0 2.0 1.0 1.0 1.0 1.0 0.0 0.0 11.00 2016 Budget 1.0 2.0 1.0 1.0 2.0 1.0 1.0 1.0 1.0 0.0 0.0 11.00 2017 Budget 1.0 2.0 1.0 1.0 2.0 1.0 0.0 1.0 1.0 0.0 0.0 10.00 Budget Detail Wages, Payroll Taxes & Benefits $ 1,488,269 $ 1,278,597 $ 1,115,465 $ 1,173,837 $ 1,119,084 Supplies 15,830 7,862 10,058 21,050 16,550 Services&Charges 246,181 257,861 246,964 271,750 263,350 Intergovernmental Payments 8,287 0 0 20,000 20,000 Total Engineering Division $ 1,758,567 $ 1,544,319 $ 1,372,487 $ 1,486,637 $ 1,418,984 69 Fund: 001 Dept: 057 General Fund Community & Economic Development Building Division Spokane Valley 2017 Budget The Building Division implements the Washington State Building Code. This Division is responsible for ensuring that buildings and structures comply with adopted building codes through technical plan review and inspection services. The Permit Center receives applications and coordinates the review and processing of permits. The Code Enforcement staff enforce zoning and building regulations on a complaint -driven basis. Accomplishments for 2016 • Created and implemented customer service survey. • Improved residential building review at the Permit Center Counter with increased counter reviews performed by Permit Facilitators and creation of a Multiple Use Plan Program. • Developed Swimming Pool, ROW Process & Submittal Guide as informational bulletins for public assistance. • Maintained and enhanced partnerships with Spokane, Spokane County and outside review agencies. • Implemented Code Enforcement process changes to incorporate Office Assistant and Building Inspector. • Residential Approach Inspection shifted to Building Inspectors. • Created and implemented a Regional Special Inspection and Fabricator program involvement in case creation and field investigation. • Coordinated progress reports on the Regional Hazard Mitigation Plan. • Created custom reports in the permitting system to meet the needs of outside reporting agencies. Goals for 2017 • Work on permit processes and customer service improvement plan to enhance the customer experience at the Permit Center. • Develop Performance Measures. • Coordinate on central reporting function in SMARTGov System. • Expand on-line permit system. • Incorporate data from SVFD records to facilitate re -use of existing vacant buildings and tenant spaces. • Increase efforts to establish and maintain relationships with regional jurisdictions and outside review agencies. • Implement Code Enforcement educational awareness program to inform the public. • Provide cross training of staff to facilitate coverage during times of lean staffing. • Coordinate with regional partners on the Hazard Mitigation Plan. Personnel - FTE Equivalents Building Official Building Inspector II Planner Development Service Coordinator Engineering Tech Office Assistant I Permit Facilitator Plans Examiner Senior Plans Examiner Code Enforcement Officer Assistant Planner Total FTEs Budget Summary 2013 Actual 1.0 3.0 0.0 1.0 0.0 1.0 2.0 0.5 1.0 0.0 2.0 11.50 2014 Actual 1.0 3.0 2.0 1.0 1.0 1.0 2.0 0.5 1.0 0.0 0.0 12.50 2015 Actual 1.0 3.0 2.0 1.0 1.0 2.0 2.0 1.0 1.0 0.0 0.0 14.00 2016 Budget 1.0 3.0 2.0 1.0 1.0 2.0 2.0 1.0 1.0 0.0 0.0 14.00 2017 Budget 1.0 3.0 1.0 1.0 1.0 2.0 2.0 1.0 1.0 1.0 0.0 14.00 Budget Detail Wages, Payroll Taxes & Benefits $ 932,662 $ 1,098,561 $ 1,126,106 $ 1,256,565 $ 1,279,834 Supplies 20,139 14,196 7,230 28,200 32,700 Services & Charges 55,966 65,457 60,112 59,400 78,300 Intergovernmental Payments 0 0 0 0 0 Capital Outlays 0 0 0 0 0 Inter -fund Charges 0 0 0 0 0 Total Building Division $ 1,008,767 $ 1,178,214 $ 1,193,448 $ 1,344,165 $ 1,390,834 70 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2017 Budget The Parks and Recreation Department is composed of six divisions including Administration, Maintenance, Recreation, Aquatics, Senior Center, and CenterPlace. The overall goal of the department is to provide quality recreation programs and acquisition, renovation, development, operation and maintenance of parks and maintenance of parks and recreation facilities. 000 - Parks Administration Division The Administration Division provides direction and leadership for the Parks and Recreation Department in implementing the goals and objectives of the City Council and facilitates the general upkeep of parks and public areas of the City. Accomplishments for 2016 • Completed construction of a championship sand volleyball court and splashpad at Browns Park. • Completed construction of Phase 2 of the Pocket Dog Park at Valley Mission Park. • Installed new park signs at Edgecliff, Valley Mission and Valley Mission Dog Park. • Developed Request for Proposals for the Park Maintenance Contract. • Completed Discovery Splashpad activator renovation. • Completed all Park repairs related to the damage caused by Windstorm 2015. Goals for 2017 • Construct new splashpad and ADA pathway at Edgecliff Park. • Construct the Sullivan to Corbin section of the Appleway Trail. • Add amenities to the Valley Mission Dog Park. • Pursue land acquisitions for priority facilities such as disc golf, skateboard park, etc. Personnel - FTE Equivalents Parks & Recreation Director Administrative Assistant Total FTEs Budget Summary 2013 Actual 1.0 1.0 2.0 2014 Actual 1.0 1.0 2.0 2015 Actual 1.0 1.0 2.0 2016 Budget 1.0 1.0 2.0 2017 Budget 1.0 1.0 2.0 Budget Detail Wages, Payroll Taxes & Benefits $ 212,067 $ 224,275 $ 230,394 $ 246,821 $ 242,414 Supplies 6,427 2,493 2,688 5,900 7,400 Services&Charges 29,288 28,366 28,433 29,150 39,150 Nonrecurring Expenses 62,087 11,192 78,659 67,000 0 Total Parks Administration $ 309,869 $ 266,326 $ 340,174 $ 348,871 $ 288,964 71 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2017 Budget 300 - Maintenance Division The Parks Maintenance Division is responsible for the contracted maintenance and upkeep of our parks and public areas including the Centennial Trail. Budget Detail Supplies Services & Charges Total Parks Maintenance Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 1,568 $ 2,903 $ 3,444 $ 5,500 $ 5,500 762,614 791,348 830,641 826,543 855,850 $ 764,182 $ 794,251 $ 834,085 $ 832,043 $ 861,350 72 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2017 Budget 301 - Recreation Division The Recreation Division coordinates and facilitates the delivery of recreation programs and service throughout the City and the City's Park system. Accomplishments for 2016 • Continued to provide quality recreation programs for the Spokane Valley community. • Designed Recreation Brochure in house utilizing Adobe Creative Suite software. • Actively looked for sponsorship opportunities within the community in regards to the Summer Outdoor Movies. • Continued to foster relationships with community partners. Goals for 2017 • Research and offer new recreation programs that serve the needs of the community. • Continue to provide quality recreation programs for the Spokane Valley community. • Foster relationships with community partners. • Offer affordable community events for families, teens, and the community. Budget Summary 2013 Actual Personnel - FTE Equivalents Recreation Coordinator 1.0 2014 Actual 1.0 2015 Actual 1.0 2016 Budget 1.0 2017 Budget 1.0 Budget Detail Wages, Payroll Taxes & Benefits $ 151,084 $ 142,074 $ 164,092 $ 161,397 $ 168,645 Supplies 5,760 6,740 7,791 7,600 8,200 Services & Charges 54,381 50,350 65,832 72,200 59,150 Total Recreation Division $ 211,225 $ 199,164 $ 237,715 $ 241,197 $ 235,995 73 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2017 Budget 302 -Aquatics Division The City of Spokane Valley owns three pools: Park Road Pool, Terrace View Pool, and Valley Mission Pool. Services include open swim, swim lessons, swim team and facility rentals. In addition, the City leases a portion of Valley Mission Park to Splashdown Inc. for a water park. The City currently is contracting with the YMCA for all aquatic activities within the City. The YMCA provides the lifeguards and maintains the pools during the season. Accomplishments for 2016 • Maintained a full summer swimming program. • Researched and re-evaluated our pool rental pricing structure. • Installed pool stairs at Valley Mission Pool. • Researched marketing opportunities to more effectively promote the outdoor pools. • Updated the cash register systems at all three pools. Goals for 2017 • Maintain a full summer swimming program. • Replace main drain piping from the drain boxes at Terrace View and Park Road Pools. • Replace the gutter line running to the outdoor drain pit at Valley Mission Pool. • Explore options to the Terrace View Pool tank paint peeling problem. • Improve coordination and communication among teams for the summer swim meet season. Budget Detail Supplies Services & Charges Nonrecurring Services & Charges Total Aquatics Division Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 9,081 $ 424 $ 351 $ 14,000 $ 3,200 469,765 436,604 487,564 447,200 454,150 0 0 0 0 12,000 $ 478,846 $ 437,028 $ 487,915 $ 461,200 $ 469,350 74 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2017 Budget 304 - Senior Center Division The City of Spokane Valley Parks and Recreation Department assumed operational control of the Valley Senior Center in 2003. Accomplishments for 2016 • Offered more Tuesday evening classes in the Senior Wing of CenterPlace. • Continued relationship with YMCA to offer reduced daily rates for Senior Center members. • Developed and fostered relationship with Walgreens to bring pharmacy students to counsel seniors on medications, provide blood pressure checks and offer flu shots. • Researched and developed class for seniors needing help with IT issues. • Worked closely with the Parks & Recreation Director on programs being offered to seniors. Goals for 2017 • Continue to enhance the resource and referral information at the reception desk to be better equipped to handle calls. • Offer "Get Acquainted Open House" to allow the public to visit the CenterPlace and the Senior Center to leam about programs and activities offered by the Senior Center and the ACT 2 Community Colleges. • Continue to work with the Board on providing board training classes. • Work closely with the Parks & Recreation Director on programs being offered to seniors. • Offer more Tuesday evening classes in the Senior Wing of CenterPlace. Personnel - FTE Equivalents Senior Center Specialist Total FTEs Budget Summary 2013 Actual 1.0 1.0 2014 Actual 1.0 1.0 2015 Actual 1.0 1.0 2016 Budget 1.0 1.0 2017 Budget 1.0 1.0 Intern 1.0 1.0 0.0 0.0 0.0 Budget Detail Wages, Payroll Taxes & Benefits $ 77,018 $ 79,872 $ 82,625 $ 88,481 $ 89,416 Supplies 2,157 1,460 454 1,600 1,600 Services & Charges 1,897 2,514 2,298 5,700 4,900 Capital Outlay 0 0 0 0 0 Total Senior Center Division $ 81,072 $ 83,846 $ 85,377 $ 95,781 $ 95,916 75 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2017 Budget 305 - CenterPlace Division Construction of Mirabeau Point CenterPlace began in late 2003 and was completed mid -year 2005. The project represented the culmination of eight years of planning and fundraising by Mirabeau Point Inc. and the joint involvement of the City and Spokane County. The approximately 54,000 square foot facility houses the City of Spokane Valley Senior Center, a great room/banquet facility, numerous meeting rooms, multi-purpose rooms and a high tech lecture hall. The facility combines with Mirabeau Meadows Parks and Mirabeau Springs to form a regional focal point for Northeastem Washington and Northem Idaho. Accomplishments for 2016 • Increased rental space on second floor by adding two large meeting rooms. • Ensured a long-term catering contract. • Increased events by 10% over 2015. • Negotiated renewal lease with the Community Colleges of Spokane. • Increased number of part-time staff to cover the increasing number of events. Goals for 2017 • Upgrade the audio and visual systems and equipment in the Great Room and Small Dining Room. • Replace carpeting in Rooms 109, 110 and 213. • Update existing Business and Marketing Plan. Personnel - FTE Equivalents Customer Relations/Facilities Coordinator Administrative Assistant Office Assistant I Maintenance Worker Total FTEs Budget Summary 2013 Actual 1.0 1.0 1.0 2.0 5.0 2014 Actual 1.0 1.0 1.0 2.0 5.0 2015 Actual 1.0 1.0 1.0 2.0 5.0 2016 Budget 1.0 1.0 1.0 2.0 5.0 2017 Budget 1.0 1.0 1.0 2.0 5.0 Budget Detail Wages, Payroll Taxes & Benefits $ 393,283 $ 402,329 $ 442,655 $ 475,925 $ 491,639 Supplies 60,011 63,834 53,919 76,024 73,524 Services & Charges 319,699 335,273 306,138 330,274 326,295 Nonrecurring Services & Charges 0 0 0 0 24,750 Nonrecurring Capital Outlays 0 0 0 0 345,000 Total CenterPlace Division $ 772,993 $ 801,436 $ 802,712 $ 882,223 $ 1,261,208 76 Fund: 001 Dept: 090 General Fund General Government Spokane Valley 2017 Budget The General Govemment Department accounts for those activities that are not specific to the functions of any particular General Fund Department or operation. Expenditures recorded here are composed of City Hall rent/bond payments and and related utilities; information technology equipment and services; capital costs that benefit more than one department; support of agencies external to the City that provide social service programs and economic development services; and transfers to other City funds for property/casualty insurance premiums (Fund #502), park capital projects (Fund #309) and the pavement preservation program (Fund #311). Supplies PEG COSV Small tools & Minor Equip Business Registrations Employee Recognition -Operating Supplies Employee Recognition & Safety Program Office & Operating Supplies Small Tools & Minor Equipment Computer Hardware - Non Capital Computer Software - Non Capital Fuel Office & Operating Supplies Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 336 $ 0 S 0 $ 3,700 $ 0 293 0 0 500 0 13 2,667 1,490 3,000 3,000 1,925 0 299 0 0 937 0 187 0 0 4,114 3,738 7,443 4,000 7,250 35,165 30,671 38,277 26,900 107,700 6,519 32,631 5,093 34,500 12,500 3 104 0 0 0 10,313 8,418 16,753 15,000 15,000 59,618 78,229 69,542 87,600 145,450 Other Services & Charges Professional Services - Misc Studies 87,229 117,149 22,907 205,500 200,000 Accounting & Auditing 70,119 66,714 77,474 80,000 90,000 Uncollectible Accounts Expense 0 0 2,095 0 0 Postage 1,168 316 10,428 1,500 2,500 Telephone Service 9,088 8,790 8,168 9,000 9,000 Cell Phones 1,561 1,335 949 1,600 1,500 Internet Service 13,994 10,404 11,458 11,000 11,800 City Wide Records Management 0 3,610 5,870 10,000 10,000 City Hall Rent 425,246 412,681 426,964 439,000 0 Facility Repairs & Maintenance 1,430 1,318 8,897 5,000 5,000 Interfund Vehicle Lease 0 0 0 500 1,000 Equip Repair& Maint-Hardware Support 23,457 51,617 40,450 42,000 31,400 IT Support 71,221 13,323 20,855 28,300 72,700 Software Licenses & Maintenance 90,502 66,369 65,353 73,100 70,940 Merchant Charges (Bankcard Fees) 1,347 1,765 231 2,000 2,000 Equip Rental 3,300 3,300 1,921 3,300 4,260 Printing & Binding 432 0 536 0 500 Miscellaneous Services 5,938 2,143 5,256 10,000 10,000 Vehicle Rental 1,559 0 0 1,500 0 General Operating Leases: Computer 41,039 49,645 45,347 51,000 51,000 Economic Development -Site Selector 8,813 9,139 8,542 10,000 10,000 Professional Services - Economic Devel. 89,041 87,498 70,330 0 0 Contracted economic dev. 0 0 16,560 43,000 0 City Economic Development 202,430 196,877 153,350 0 0 Professional Services - Social Services 55,809 61,724 90,974 0 0 Alcohol Treatment: Liquor Excise Tax 1,213 3,439 5,012 0 0 Alcohol Treatment: Liquor Profits 16,279 16,258 16,131 20,000 22,000 Outside Agencies- Social Svc & Econ. Dev. 0 0 0 107,000 150,000 $ 1,222,215 $ 1,185,414 $ 1,116,058 $ 1,154,300 $ 755,600 (continued to next page) 77 Fund: 001 Dept: 090 General Fund General Government Spokane Valley 2017 Budget Intergovernmental Services Election Costs Voter Registration Taxes and assessments Spokane County Air Pollution Authority Budget Summary, continued 2013 Actual 2014 Actual 2015 Actual $ 85,304 $ 0 $ 16,347 87,964 84,764 97,091 7,278 6,909 5,617 115,720 115,915 115,915 296,266 207,588 234,970 2016 Budget 2017 Budget 87,000 $ 90,000 90,000 $ 100,000 7,500 $ 7,500 117,000 $ 131,000 301,500 328,500 Capital Outlays PEG COSV Broadcast -Office Fum. 2,131 0 0 0 0 PEG COSV Broadcast-Software/hardware 24,936 30,596 0 0 0 Copy Machine 0 0 21,145 3,500 0 Computer Software/Hardware 0 0 0 39,500 0 Compuer Hardware - Capital 15,035 68,956 0 0 10,000 Construction - Pavement Preservation 855,857 0 0 0 0 897,959 99,552 21,145 43,000 10,000 Debt Service: Principal Interest and Other Debt Service Costs 301 435 425 0 0 Interfund Payments for Service Transfer out - #106 (solid waste educ.) 0 60,000 0 0 0 Transfer out - #122 (Replenish Winter Weather Rese 0 0 0 16,418 0 Transfer out - #204 (City Hall bond payment) 0 0 0 198,734 397,350 Transfer out - #309 (park capital prof) 50,000 242,298 115,575 230,300 160,000 Transfer out - #309 (Parks & Rec Windstorm Damag 0 0 0 37,225 0 Transfer out - #310 (bond pmt > $434.6 lease) 0 0 67,600 72,500 0 Transfer out - #310 (city hall o&m costs) 0 0 271,700 271,700 0 Transfer out - #311 (pvmnt preservation) 0 888,823 920,000 943,800 953,200 Transfer out - #312 (capital reserve fund) 7,826,207 2,443,507 1,783,512 1,828,723 0 Transfer out - #501 (CenterPlace kitchen reserve) 0 0 0 0 36,600 Transfer out - #502 (risk management) 319,000 325,000 325,000 325,000 350,000 8,195,207 3,959,628 3,483,387 3,924,400 1,897,150 Miscellaneous SCRAPS passthrough 0 57,259 1,099 1,100 1,300 Supplies - 10th Anniversary 3,818 0 0 0 0 Advertising - 10th Anniversary 12,030 0 0 0 0 City Hall Remodel 0 0 12,842 0 0 15,848 57,259 13,941 1,100 1,300 Nonrecurring/Nonrecurring Capital City Hall lease payment (2017 final year) 0 0 0 0 513,100 Transfer out - #303 (pines underpass design) 0 0 0 0 1,200,000 Copy Machine 0 0 0 0 20,000 Computer Hardware - Capital 0 0 65,610 95,000 80,000 Computer Software - Capital 0 20,789 18,931 13,000 0 0 20,789 84,541 108,000 1,813,100 Total Governmental Division $ 10,687,414 $ 5,608,894 $ 5,024,009 $ 5,619,900 $ 4,951,100 78 Fund: 101 Street Fund Spokane Valley 2017 Budget The Street Fund was established to account for the activities associated with the provision of efficient and safe movement of both motorized and non -motorized vehicles, as well as pedestrians within the limits of the City, and coordinate convenient coordinate convenient interconnect to the regional transportation system. Maintenance work includes snow and ice control, street pavement repairs, traffic signals and signs, landscaping and vegetation control and many other street maintenance and repair activities. Accomplishments for 2016 • Optimized traffic signals on selected corridors. • Applied for grants and worked with various schools to install flashing beacons at crosswalks. • Renewed contracts with private contractors for street maintenance services. • Continued to define and implement a fleet maintenance program. • Developed non -intrusive traffic signal detection replacement plan. • Replaced over 2,000 signs throughout the City. • Upgraded pedestrian indicators at all City traffic signals. • Upgraded traffic signal software at all City traffic signals. • Assisted with TAP/CMAW/STP/CDBG and TIB grant applications. Goals for 2017 • Update and implement the pavement management plan. • Implement and renew contracts with private contractors for street maintenance services. • Optimize traffic signal timings on selected corridors. • Enhance safety at selected traffic signals. • Use traffic signal software to obtain traffic counts on arterial roadways. • Develop a maintenance program for traffic signal components to address aging infrastructure. Personnel - FTE Equivalents Senior Engineer - Traffic Public Works Superintendent Maintenance/Construction Inspector Assistant Engineer - Traffic/Planning Planning Grants Engineer Total FTEs Interns Budget Summary 2013 Actual 1.0 1.0 2.0 1.0 0.0 5.0 2014 Actual 1.0 1.0 2.0 1.0 0.375 5.375 2015 Actual 1.0 1.0 2.35 1.0 0.375 5.725 1.0 2.0 2.0 2016 Budget 1.0 1.0 2.35 1.0 0.375 5.725 2017 Budget 1.0 1.0 2.35 * 1.0 0.375 5.725 2.0 2.0 For 0.5 FTE of the 2 FTEs, only 50% is budgeted to the Street Fund with the balance budgeted as part of the capital project funds (continued to next page) 79 Fund: 101 Street Fund Spokane Valley 2017 Budget Revenues Utility Tax Motor Vehicle Fuel Tax Multimodal Transportation Revenue Right -of -Way Maintenance Fee Investment Interest Grants Transfers in Miscellaneous Non recurring insurance proceeds Total revenues Budget Summary, continued 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 2,562,722 $ 2,461,060 $ 2,257,184 $ 2,340,000 $ 2,200,000 1,868,055 1,878,476 1,935,629 2,004,900 2,040,300 O 0 0 0 98,868 O 0 0 50,000 50,000 2,920 2,037 3,212 3,000 4,000 172,530 15,150 0 0 0 27,375 23 0 0 0 14,702 9,414 25,167 10,000 10,000 O 0 0 46,000 0 4,648,304 4,366,160 4,221,192 4,453,900 4,403,168 Expenditures Wages, Payroll Taxes & Benefits 582,013 681,165 738,144 734,604 746,872 Supplies 108,110 119,742 116,659 111,500 105,000 Services & Charges 2,152,294 2,030,250 2,041,934 2,133,754 2,168,151 Snow Operation 485,717 508,353 465,064 430,000 468,000 Intergovernmental Payments 797,275 876,268 707,315 770,000 795,000 Transfers out - #001 39,700 39,700 39,700 39,700 39,700 Transfers out - #311 (pvmnt pres) 282,000 282,000 206,618 67,342 67,342 Transfers out - #501 (non -plow) 10,777 10,777 12,077 31,000 23,250 Transfers out - #501 (plow replace) 150,000 75,000 0 40,000 77,929 Signal Detection Replacement Program 0 0 0 0 40,000 Traffic Signal Replacement Program 0 0 0 0 200,000 Capital construction and equipment 205,621 100,894 155,849 0 0 Nonrecurring Expenditures Durable striping at Trent & Argonne 0 0 0 0 75,000 Spare traffic signal equipment 0 0 0 0 30,000 Battery backups for intersections 0 0 0 0 15,000 Traffic Signal Cabinet Replacement 0 0 0 46,000 0 Maintenance facility storage unit 0 0 0 5,000 0 Signal detection equipment upgrades 0 0 0 20,000 0 Total expenditures 4,813,507 4,724,149 4,483,360 4,428,900 4,851,244 Revenues over (under) expenditures (165,203) (357,989) (262,168) 25,000 (448,076) Beginning fund balance 2,228,437 2,063,234 1,705,245 1,443,077 1,468,077 Ending fund balance $ 2,063,234 $ 1,705,245 $ 1,443,077 $ 1,468,077 $ 1,020,001 80 Fund: 103 Paths & Trails Fund Spokane Valley 2017 Budget The State of Washington collects a $0.494 per gallon motor vehicle fuel tax at the pump. Of this amount, the State remits a portion of the tax back to cities on a per capita basis. For 2017 the Municipal Research and Services Center estimates the distribution back to cities will be $21.76 per person. Based upon a City of Spokane Valley population of 94,160 (per the Washington State Office of Financial Management on April 1, 2016) we anticipate the City will collect $2,048,900 in 2017. RCW 47.030.050 specifies that 0.42% of this tax must be expended for the construction of paths and trails and based upon the 2017 revenue estimate this computes to $8,600. The balance or $2,040,300 will be credited to Fund #101 for Street maintenance and operations. The portion of the motor vehicle tax allocated to the Paths and Trails Fund is by State Law restricted for the construction and/or improvement of paths and trails within the City. Because the cost of such projects is typically much greater than the funds generated in a single year, we typically leave the fund balance untouched until an adequate fund balance is available. The City transferred $50,000 in 2014 and $9,300 in 2016 to the Parks Capital Projects Fund #309 to be applied towards the Phase 2 Appleway Trail Project from University to Pines. Revenues Motor Vehicle Fuel (Gas) Tax Investment Interest Total revenues Expenditures Capital Outlay Transfers out- #309 Total expenditures Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 7,879 $ 7,923 $ 8,226 $ 8,500 $ 8,600 51 34 0 0 0 7,930 7,957 8,226 8,500 8,600 0 0 0 0 0 0 50,000 0 9,300 0 0 50,000 0 9,300 0 Revenues over (under) expenditures 7,930 (42,043) 8,226 (800) 8,600 Beginning fund balance 63,941 71,871 29,828 38,054 37,254 Ending fund balance $ 71,871 $ 29,828 $ 38,054 $ 37,254 $ 45,854 81 Fund: 104 Hotel/Motel Tax - Tourism Facilities Fund Spokane Valley 2017 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. Revenues Hotel/Motel Tax Investment Interest Total revenues Expenditures Capital Outlay Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance Budget Summary 2013 Actual 2014 Actual 0 $ 0 0 2015 Actual 2016 Budget 2017 Budget O $ 182,236 $ 377,000 $ 377,000 O 111 0 0 O 182,347 377,000 377,000 0 0 0 0 0 0 0 0 0 0 0 0 O 182,347 377,000 377,000 O 0 182,347 559,347 0 $ 0 $ 182,347 $ 559,347 $ 936,347 Fund: 105 Hotel/Motel Tax Fund Spokane Valley 2017 Budget The Hotel/Motel Fund accounts for the receipt and expenditure of a special excise tax of 2% on the sale or charge made for the fumishing 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. Revenues Hotel/Motel Tax Investment Interest Total revenues Expenditures Tourism Promotion Transfers out- #001 Transfers out- #309 Total expenditures Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 518,672 $ 549,267 $ 581,237 $ 580,000 $ 580,000 387 299 484 300 500 519,059 549,566 581,721 580,300 580,500 458,904 546,545 484,968 499,350 604,000 30,000 30,000 30,000 30,000 30,000 0 0 68,000 60,650 0 488,904 576,545 582,968 590,000 634,000 Revenues over (under) expenditures 30,155 (26,979) (1,247) (9,700) (53,500) Beginning fund balance 206,772 236,927 209,948 208,701 199,001 Ending fund balance $ 236,927 $ 209,948 $ 208,701 $ 199,001 $ 145,501 82 Fund: 106 Solid Waste Fund Spokane Valley 2017 Budget In 2003, the City of Spokane Valley entered into an interlocal agreement with the City of Spokane and Spokane County to join the existing Spokane Regional Solid Waste Management System for a period of eight years. In 2011, that agreement was extended through November 16, 2014. Committed to ensuring Spokane Valley citizens are provided with solid waste services that are affordable, sustainable, and environmentally responsible, in June 2014 the City of Spokane Valley opted to contract for solid waste transfer, transport and disposal services with Sunshine Recyclers, Inc. Services provided under the contract were effective November 17, 2014, and continue for a period of ten years with options for two three-year extensions. Terms of the contract require Sunshine to pay the City an annual administrative fee of $125,000 that will be used by the City to offset contract administrative costs and solid waste management within the city, including solid waste public educational efforts. The contract also provides that a road maintenance fee will be paid by Sunshine at the rate of $1 per ton for each ton in excess of 45,500 tons in a single contract year. Payments will be made to the City by March 31 of the year following the calendar year being measured. During 2016, the City received a payment in the amount of $56,035, which was receipted in the Street Fund #101 to offset road maintenance costs. The contract with Sunshine Recyclers does not include curbside pickup which remains optional for citizens and is available by subscription through Waste Management and Sunshine Disposal, Inc. During the years of 2013 and 2014, the General Fund #001 funded various studies and fees related to the solid waste program and transferred $60,000 to the Solid Waste Fund #106 for the purpose of providing information materials and marketing necessary to inform residents and businesses of the change in solid waste transfer, transport and disposal. The total amount paid out of the General Fund for these expenditures was $202,121. Beginning in 2015 the Solid Waste Fund will reimburse the General Fund for these costs over a 5 -year period, which equates to a payment of annually of $40,425 in the years 2015 through 2019. Revenues Sunshine administrative fee Investment interest Grant Proceeds Transfer in - #001 Total revenues Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget 0 $ 0 $ 125,000 $ 125,000 $ 125,000 0 0 0 0 0 0 0 0 53,500 26,800 0 60,000 0 0 0 0 60,000 125,000 178,500 151,800 Expenditures Education & Contract Administration 0 52,661 49,040 138,075 111,375 Transfers out - #001 (reimbursement) 0 0 40,425 40,425 40,425 Total expenditures 0 52,661 89,465 178,500 151,800 Revenues over (under) expenditures 0 7,339 35,535 0 0 Beginning fund balance 0 0 7,339 42,874 42,874 Ending fund balance $ 0 $ 7,339 $ 42,874 $ 42,874 $ 42,874 83 Fund: 107 PEG Fund Spokane Valley 2017 Budget Under the City's cable franchise, the franchise grantee remits to the City as a capital contribution in support of Public Education Government (PEG) capital requirements an amount equal to $0.35 per subscriber per month to be paid to the City on a quarterly basis for the life of the franchise. Capital contributions collected under this agreement are allocated to PEG capital uses exclusively. PEG capital uses include in part the set up of equipment in the City Council Chambers that allows Spokane Valley to broadcast Council meetings both live and through subsequent reviews via digital recordings available on the City's website. Revenues Comcast PEG contribution Investment interest Transfer in from fund #001 Total revenues Expenditures PEG Reimbursement - CMTV New City Hall Council Chambers Capital Outlay Total expenditures Budget Summary 2013 Actual 2014 Actual O $ 0 0 0 2015 Actual 2016 Budget 2017 Budget 0 $ 81,806 $ 90,000 $ 80,000 O 0 0 0 O 267,333 0 0 O 349,139 90,000 80,000 O 0 0 117,000 0 O 0 0 25,000 250,000 O 0 47,957 12,500 12,500 O 0 47,957 154,500 262,500 Revenues over (under) expenditures 0 0 301,182 (64,500) (182,500) Beginning fund balance 0 0 0 301,182 236,682 Ending fund balance $ 0 $ 0 $ 301,182 $ 236,682 $ 54,182 84 Fund: 120 CenterPlace Operating Reserve Fund Spokane Valley 2017 Budget The CenterPlace Operating Reserve Fund was established as a result of a covenant related to the issuance of limited tax general obligation bonds initially issued in 2003 and refunded in 2014. The bonds were issued for the purpose of constructing the CenterPlace facility. As a part of the bond issuance the City agreed to establish a $300,000 operating reserve account that could be used to make debt service payments on the bonds and/or pay for operating expenses of CenterPlace. If at any time the City were to draw on these reserves it would have to prepare and follow a plan for reinstatement of those funds drawn. This reserve is required to be in place for the life of the bonds which run through December 1, 2033. Revenues Investment Interest Transfers -in Total revenues Expenditures Operations Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance Budget Summary 2013 Actual 2014 Actual 0 $ 0 0 50,787 50,787 (50,787) 2015 Actual O $ 0 0 2016 Budget 0 $ 0 0 2017 Budget 0 $ 0 0 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 350,787 300,000 300,000 300,000 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Fund: 121 Service Level Stabilization Reserve Fund Spokane Valley 2017 Budget The City has committed to maintaining an ending fund balance in the General Fund of at least 50% of recurring expenditures which is equivalent to 6 -months of operations. The Service Level Stabilization Reserve Fund serves as an emergency source of temporary financing to the General Fund in the event a downturn in the local economy resulted in a reduction of revenues that would otherwise compromise either the General Fund's minimum 50% reserve balance or historical levels of service. If an event such as a downturn in the economy resulted in the General Fund reserves dropping below 50% of recurring expenditures, then the Service Level Stabilization Reserve Fund could be drawn against to maintain the fund balance minimum. In no event would the Service Level Stabilization Reserve Fund be reduced to less than 60% of the current $5.5 million balance or $3.29 million. This represents a Fiscal Policy of the City that is also stated in the City Manager's 2017 Budget Message located near the front of this budget document. Revenues Investment Interest Transfer -in Total revenues Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 6,971 $ 4,697 $ 8,590 $ 6,500 $ 21,900 0 0 0 0 0 6,971 4,697 8,590 6,500 21,900 Expenditures Operations 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over (under) expenditures 6,971 4,697 8,590 6,500 21,900 Beginning fund balance 5,441,531 5,448,502 5,453,199 5,461,789 5,468,289 Ending fund balance $ 5,448,502 $ 5,453,199 $ 5,461,789 $ 5,468,289 $ 5,490,189 85 Fund: 122 Winter Weather Reserve Fund Spokane Valley 2017 Budget The Winter Weather Reserve Fund was established through Ordinance No. 05-018 to provide an emergency reserve for use during unusually harsh winters and storms where the Street Fund #101 budget and fund balance are inadequate to accommodate the amount of related street maintenance, including but not limited to snow plowing, sanding, and deicing, that may be necessary. In the event the City draws against this fund in any given winter, we will strive to replenish the balance back to approximately $500,000 through subsequent years' transfers. Due to the uncertainty of when this fund might be drawn upon we actually budget the same $500,000 in both 2016 and 2017 even though we recognize there exists only $500,000 to address this issue if it should arise. Revenues Investment Interest Transfer -in #001 FEMA Grant Proceeds Total revenues Expenditures Snow removal Total expenditures Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 677 $ 455 $ 833 $ 600 $ 600 0 0 0 16,418 0 0 0 0 38,510 0 677 455 833 55,528 600 O 0 60,381 500,000 500,000 O 0 60,381 500,000 500,000 Revenues over (under) expenditures 677 455 (59,548) (444,472) (499,400) Beginning fund balance 502,888 503,565 504,020 444,472 500,000 Ending fund balance $ 503,565 $ 504,020 $ 444,472 $ 0 $ 600 Fund: 123 Civic Facility Replacement Fund Spokane Valley 2017 Budget This fund was initially created to set aside money for the eventual replacement of CenterPlace and the police precinct building located on East Sprague Avenue, and the source of funds had in prior years been an annual transfer from the General Fund. Beginning in 2013, however, the City made the decision to no longer set money aside in this fund for future building replacements and instead decided to commit the entire fund balance of Fund #123 to a pavement preservation program that is operated through Pavement Preservation Fund #311. This is in recognition of the fact that addressing deteriorating streets in a timely manner is a much higher priority in the present than setting money aside for buildings that will need replaced in the distant future. It was the City's conclusion that to both set money aside for the replacement of CenterPlace now while at the same time repaying the 2014 LTGO bonds (see Fund #204 discussion) that were issued to finance the construction of CenterPlace is essentially asking the same generation of taxpayers/citizens to pay for the same structure twice - the initial construction and the replacement. The $2.4 million fund balance that existed at the end of 2012 will be completely depleted due to transfers for pavement preservation in 2016. Revenues Investment Interest Transfers in- #001 Total revenues Expenditures Transfers out- #311 Total expenditures Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 1,608 $ 1,083 $ 1,323 $ 700 $ O 0 0 0 1,608 1,083 1,323 700 0 0 0 616,285 616,284 616,284 559,808 0 616,285 616,284 616,284 559,808 0 Revenues over(under)expenditures (614,677) (615,201) (614,961) (559,108) 0 Beginning fund balance 2,403,947 1,789,270 1,174,069 559,108 0 Ending fund balance $ 1,789,270 $ 1,174,069 $ 559,108 $ 0 $ 0 86 Fund: 204 Limited Tax General Obligation (LTGO) Bond - Debt Service Fund Spokane Valley 2017 Budget This fund is used to account for the accumulation of resources for, and the payment of limited tax general obligation (LTGO) bonds also referred to as councilmanic or non -voted bonds. When LTGO bonds are issued the City irrevocably pledges the full faith, credit and resources necessary to make timely payments of principal and interest, within constitutional and statutory limitations pertaining to non -voted general obligations. In 2003 the City issued $9,430,000 in LTGO bonds, the proceeds of which were used to finance both the construction of CenterPlace and road and street improvements surrounding the facility. In 2014 the City refunded the LTGO bonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond payments (much like refinancing a home mortgage). At the completion of the bond refunding there remained $7,035,000 of LTGO bonds. Of this total: • $5,650,000 remained on the original debt used towards the construction of CenterPlace. These bonds will be paid off in annual installments over the 20 -year period ending December 1, 2033. Annual debt service payments on these bonds are provided by the Spokane Public Facilities District. At January 1, 2017, the outstanding balance on this portion of the bond issue will be $5,065,000. • $1,385,000 remained on the original debt used towards the road and street improvements. These bonds will be paid off in annual installments over the 10 -year period ending December 1, 2023. Annual debt service payments on these bonds are provided by equal distributions from the 1st and 2nd quarter percent real estate excise tax (Funds #301 and #302). At January 1, 2017, the outstanding balance on this portion of the bond issue will be $995,000. In 2016 the City issued $7,275,000 in LTGO bonds, the proceeds of which will be used to finance the construction of a new City Hall building along with $6.3 million of City cash that has been set aside for this purpose. These bonds will be paid off in annual installments over the 30 -year period ending December 1, 2045. Annual debt service payments on these bonds are provided by transfers in from the General Fund. At January 1, 2017, the outstanding balance on the bond issue will be $7,200,000. Revenues Spokane Public Facilities District 2014 LTGO Bond issue proceeds Transfers in - #001 Transfers in - #301 Transfers in - #302 Total revenues Expenditures Debt Service Payment - CenterPlace Debt Service Payment - Roads Debt Service Payments - City Hall 2003 LTGO Bond retirement 2014 LTGO Bond issue costs Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance Budget Summary 2013 Actual $ 437,120 0 0 92,951 92,952 2014 Actual $ 441,520 7,661,000 0 93,152 93,151 2015 Actual 2016 Budget 2017 Budget $ 373,800 $ 380,300 $ 379,750 0 0 0 0 198,734 397,350 82,150 83,400 79,426 82,150 83,400 79,425 623,023 8,288,823 538,100 745,834 935,951 437,120 441,520 374,083 380,300 379,750 185,903 186,303 164,017 166,800 162,900 O 0 0 198,734 397,350 O 7,549,000 0 0 0 O 112,000 0 0 0 623,023 8,288,823 538,100 745,834 940,000 0 0 0 0 (4,049) 4,049 4,049 4,049 4,049 4,049 $ 4,049 $ 4,049 $ 4,049 $ 4,049 $ 0 87 Fund: 301 REET 1 Capital Projects Fund Spokane Valley 2017 Budget This fund is used to account for the collection and expenditures of the first one-quarter of one -percent real estate excise tax (REET 1) that is authorized through RCW 82.46. This quarter percent must be expended for purposes identified in the capital facilities plan element of our comprehensive plan. RCW 82.46.010(6), defines "capital projects" as: those public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets; roads; highways; sidewalks; street and road lighting systems; traffic signals; bridges; domestic water systems; storm and sanitary sewer systems; parks; recreational facilities; law enforcement facilities; fire protection facilities; trails; libraries; administrative and judicial facilities. Revenues recorded in this fund are typically used as a matching funds for street related construction projects that are accounted for in Street Capital Projects Fund #303, Pavement Preservation Fund #311, and to pay for a portion of the annual bond payment on the City's 2014 LTGO bonds that are accounted for in the LTGO Debt Service Fund #204. Revenues REET 1 - Taxes Investment Interest Total revenues Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 707,104 $ 790,781 $ 1,065,789 $ 1,000,000 $ 800,000 1,138 793 1,654 1,000 1,700 708,242 791,574 1,067,443 1,001,000 801,700 Expenditures Transfers out - #204 92,951 89,559 82,150 83,400 79,426 Transfers out - #303 589,534 58,607 567,113 742,503 437,002 Transfers out - #311 (pavement preservation) 150,000 184,472 251,049 365,286 660,479 Transfers out - #314 (Barker Grade Separation) 0 0 0 20,000 280,079 Total expenditures 832,485 332,638 900,312 1,211,189 1,456,986 Revenues over (under) expenditures (124,243) 458,936 167,131 (210,189) (655,286) Beginning fund balance 1,092,264 968,021 1,426,957 1,594,088 1,383,899 Ending fund balance $ 968,021 $ 1,426,957 $ 1,594,088 $ 1,383,899 $ 728,613 88 Fund: 302 REET 2 Capital Projects Fund Spokane Valley 2017 Budget This fund is used to account for the collection and expenditures of the second one-quarter of one -percent real estate excise tax (REET 2) that is authorized through RCW 82.46. This quarter percent may only be levied by cities that are planning under the Growth Management Act and may only be expended for purposes identified in the capital facilities plan element of their comprehensive plan. RCW 82.46.035(5) defines "capital projects" as: public works projects of a local govemment 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. Revenues REET 2 - Taxes Investment Interest Total revenues Expenditures Transfers out - #101 Transfers out - #204 Transfers out - #303 Transfers out - #311 (pavement preservation) Revenues over (under) expenditures Beginning fund balance Ending fund balance Budget Summary 2013 Actual $ 614,929 1,349 616,278 2014 Actual $ 776,648 909 777,557 2015 Actual $ 1,065,789 1,661 1,067,450 2016 Budget $ 1,000,000 1,000 1,001,000 2017 Budget $ 800,000 1,700 801,700 27,376 23 0 0 0 92,951 89,559 82,150 83,400 79,425 153,243 501,736 331,099 382,816 1,173,230 150,000 184,472 251,049 365,286 660,479 423,570 775,790 664,298 831,502 1,913,134 192,708 1,767 403,152 169,498 (1,111,434) 1,130,670 1,323,378 1,325,145 1,728,297 1,897,795 $ 1,323,378 $ 1,325,145 $ 1,728,297 $ 1,897,795 $ 786,361 89 Fund: 303 Street Capital Projects Fund Spokane Valley 2017 Budget The Street Capital Projects Fund accounts for monies used to finance street construction and reconstruction projects adopted in the City's 6 -year Transportation Improvement Plan (TIP). Revenues to finance the projects comes from a combination of State and Federal Grants, which typically cover upwards of 80% of projects costs, with the City match portion coming from transfers from the REET 1 Capital Projects Fund #301, REET 2 Capital Projects Fund #302, and sometimes Stormwater Management Fund #402. Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget Revenues Grant Proceeds $ 2,870,539 $ 1,825,974 $ 8,223,959 $ 8,149,606 $ 3,756,320 Developer Contribution 0 541 363,894 275,087 40,097 Miscellaneous 78 21 87 0 0 WSDOT - Safe Routes 604,811 0 0 0 0 Transfers in - #101 138 5,038 123,955 0 0 Transfers in -#301 589,535 29,647 567,113 742,503 437,002 Transfersin-#302 153,243 530,695 331,099 382,816 1,173,230 Transfers in - #311 77,720 0 0 0 0 Transfers in - #312 Appleway Landscaping 8,348 253,645 0 0 0 Transfers in - #312 Sullivan Rd W Bridge 0 443,688 42,730 1,467,779 10,000 Transfers in - #312 Pines Underpass Pinecroft 0 0 0 0 0 Transfers in - #312 Euclid Ave - Flora to Barker 0 0 0 50,000 1,750,000 Transfers in - #312 8th & Carnahan Intersection 0 0 0 415,000 0 Total revenues 4,304,412 3,089,249 9,652,837 11,482,791 7,166,649 Expenditures 005 Pines/Mansfield, Wilbur Rd. to Pines 228,275 0 0 0 0 060 Argonne Rd Corridor Upgrade SRTC 06-31 33,665 206,188 1,248,474 0 0 061 Pines (SR27) ITS Improvement SRTC 06-26 1,000,462 67 0 0 0 112 Indiana Ave. Extension - 3600 3,877 0 0 0 0 113 Indiana /Sullivan Intersection PCC 96,313 113 0 0 0 115 Sprague Ave Resurfacing -Evergreen to Sulliva 11,799 0 0 0 0 123 Mission Ave -Flora to Barker 5,647 40,012 37,956 332,566 500,000 141 Sullivan & Euclid PCC 0 49,556 9,848 1,981,060 2,150,000 142 Broadway @ Argonne/Mullan 73,792 3,564 17,771 0 0 145 Spokane Valley -Millwood Trail 429 1,924 0 0 0 146 24th Ave Sidewalk - Adams to Sullivan 270,962 0 0 0 0 149 In -House Design - Sidewalk Infill 187,148 288,304 8,177 5,000 0 154 Sidewalk & Transit Stop Accessibility 4,991 435 0 0 0 155 Sullivan Rd W Bridge Replacement 819,702 925,421 6,482,244 5,237,650 10,000 156 Mansfield Ave. Connection 137,578 669,533 712,689 5,000 0 159 University Rd / 1-90 Overpass Study 170,805 32,716 2,842 0 0 160 Evergreen - 16th to 32nd reconstruction 1,069 0 0 0 0 166 Pines Rd (SR27) & Grace Ave. Intersect study 28,093 50,516 47,322 491,331 333,224 167 City wide safety improvements 1,722 12,159 315,032 228,127 5,000 168 Wellesley Ave & Adams rd. sidewalk 638,773 3,318 0 0 0 169 Argonne/Mullan corridor safety - Indiana to Bro 53,463 558 0 0 0 (continued to next page) 90 Fund: 303 Street Capital Projects Fund Spokane Valley 2017 Budget 2013 Actual 2014 Actual 2015 Actual Expenditures, continued 170 Argonne Rd - Empire to Knox 118,990 0 0 171 Sprague aver ADA sdwlk improvement (Havar 100,316 0 0 175 Sullivan UP Tracks UC (SB) Resurfacing 175,955 0 0 176 Appleway Trail Design 103,303 0 0 177 Sullivan Road Corridor Traffic Study 38,139 106,305 19,332 181 Citywide Traffic Sign Upgrade 100,956 96,561 0 185 Appleway Landscaping - Phase 1 8,348 253,695 0 191 Vista Rd BNSF Xing Safety 4,880 48,501 190 196 8th Avenue - McKinnon to Fancher 0 264,439 396 201 ITS Infill Project Phase 1 (PE START 2014) 0 149 37,884 205 Sprague/Barker Intersection Improvement 0 191 13,132 206 Sprague/Long Sidewalk Project 0 7,513 304,933 207 Indiana & Evergreen Transit Access Improv. 0 0 3,345 210 Alcazar Driveway Reconstruction 0 7,902 0 211 Sullivan Trent to Wellesley 0 3,465 100,649 213 Sprague / Thierman Intersection 0 5,038 0 220 Houk-Sinto-Maxwell St Preservation 0 0 15,555 221 McDonald Rd Diet (16th to Mission) 0 0 7,229 222 Citywide Reflective Signal Backplates 0 0 0 223 Pines Rd Underpass @ BNSF & Trent 0 0 2,000 224 Mullan Rd Street Preservation Project 0 0 133,069 229 32nd Ave Preservation Project 0 0 0 234 Seth Woodard Sidewalk Improvements 0 0 6,204 238 Mirabeau Pkwy & Pines (SR -27) Traffic Signal 0 0 0 239 Bowdish Sidewalk - 8th to 12th 0 0 0 247 8th & Camahan Intersection Improvements 0 0 0 xxx N. Sullivan Corridor ITS Projects (PE start 201 0 0 0 249 Sullivan/Wellesley Intersection 0 0 0 250 9th Ave. Sidewalk 0 0 0 251 Euclid Ave. - Flora to Barker 0 0 0 xxx Contingency 0 0 0 xxx Argonne Rd. Preservation 0 0 123,955 STEP Projects (106,129,130,131,151,152) 236 0 0 Misc. Road Projects 814 0 0 Total expenditures 4,420,503 3,078,147 9,650,228 11,482,791 7,166,649 2016 Budget 0 0 0 0 0 0 0 0 0 271,357 0 5,000 0 0 0 0 0 559,200 40,500 0 0 0 361,000 350,000 400,000 415,000 0 0 0 50,000 750,000 0 0 0 2017 Budget 0 0 0 0 0 0 0 0 0 300,000 40,097 0 5,000 0 0 0 0 5,000 36,000 0 0 2,500 5,000 5,000 471,342 0 110,486 198,000 240,000 1,750,000 1,000,000 0 0 0 Revenues over (under) expenditures (116,091) 11,102 2,608 0 0 Beginning fund balance 177,918 61,827 72,930 75,538 75,538 Ending fund balance $ 61,827 $ 72,930 $ 75,538 $ 75,538 $ 75,538 91 Fund: 309 Park Capital Projects Fund Spokane Valley 2017 Budget The Park Capital Projects Fund was created to account for park related capital improvements. The source of financing typically consists of an annual transfer from the General Fund #001; however in some years the City will utilize money set aside for capital projects in other funds. This has occurred with transfers in from the Paths and Trails Fund #103 and the Capital Reserve Fund #312, which have been applied towards various sections of the Appleway Trail project. Revenues Grant Proceeds FEMA Grant Proceeds - Windstorm Transfers in - #001 (General Fund) Transfers in - #103 (Paths & Trails) Transfers in - #105 Transfers in - #312 (Capital Reserve) Investment Interest Contributions and Donations Total revenues Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 0 $ 0 $ 1,560 $ 410,132 $ 3,217,267 O 0 0 21,875 0 50,000 242,298 115,575 267,525 160,000 O 50,000 0 9,300 0 O 0 68,000 60,650 0 O 911,433 524,812 72,940 561,915 660 444 813 500 800 25,000 7,850 0 0 0 75,660 1,212,025 710,760 842,922 3,939,982 Expenditures City entry sign 172 CenterPlace S. Landscape Development 176 Appleway Trail -Phase 1 (Univ. to Pines) 195 Discovery Playground equipment 203 5 Sand volleyball courts at Browns Park 208 Old Mission Trailhead 209 Park signs (3) 216 Edgecliff sewer connection 217 Edgecliff picnic shelter 225 Pocket dog park - phase 1 227 Appleway Trail (Pines to Evergreen) 231 Old Mission Trailhead Landscaping 232 Shade Structure: Discovery Park 237 Appleway Trail (Sullivan to Corbin) 241 Pocket dog park - phase 2 242 Browns Park Splashpad 243 Browns Park championship volleyball 244 Park signs (3) 245 Terrace View playground equip (Windstorm Edgecliff Park Splashpad Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance 0 0 0 70,000 0 9,131 0 0 0 0 0 961,482 524,569 9,300 0 16,172 51,280 0 0 0 0 14,390 241,480 0 0 0 49,798 68 0 0 0 19,319 0 0 0 0 9,518 0 0 0 0 7,297 104,257 0 0 0 0 108,436 400 0 0 0 1,803 206,297 1,925,957 0 0 47,066 0 0 0 0 36,340 0 0 0 0 0 276,775 1,853,225 0 0 0 81,300 0 0 0 0 146,500 0 0 0 0 60,650 0 0 0 0 20,500 0 O 0 0 59,100 0 O 0 0 0 125,000 25,303 1,113, 084 1,064,019 930,822 3,904,182 50,357 98,941 (353,259) (87,900) 35,800 302,422 352,779 451,720 98,461 10,561 $ 352,779 $ 451,720 $ 98,461 $ 10,561 $ 46,361 92 Fund: 310 Civic Facility Capital Projects Fund Spokane Valley 2017 Budget The Civic Building Capital Projects Fund was initially set-up to accumulate resources to ultimately acquire or construct a City Hall building. The initial sources of revenue to set-up the fund reserves were transfers from the General Fund during 2005 through 2007, and as recently as December 31, 2009, this fund had a fund balance of $5,828,600. During 2010 and 2011 the City determined that street repairs and reconstruction represented a more immediate City need and opted to expend nearly $2,000,000 of the fund balance for these projects. The projects themselves were part of a septic tank elimination program (STEP) initiated by Spokane County that resulted in the installation of sewer lines down many City streets. At that time the City decided to completely reconstruct the effected streets rather than patch them. In 2012 the City used this fund to finance a variety street related capital projects as well as the $2.5 million acquisition of an 8.4 acre parcel of land on Sprague Avenue that is adjacent to Balfour Park. Partially offsetting the cost of the land acquisition was the subsequent sale of 2.82 acres of this parcel to the Spokane County Library District who had planned to construct a library building consisting of no less than 30,000 square feet. In order for the Library District to actually construct a new building on this site they first had to have a successful voted bond issue to provide the necessary financing. In the event the Library District is unable to pass a bond by October 2017, they may sell the 2.82 acres parcel back to the City for the original purchase price of $839,285. In 2015 the General Fund began to make two annual transfers to this fund that were each related to the eventual construction of a new City Hall facility. These transfers continued in 2016: • The first transfer in the amount of $72,500, when added to the City's $434,600 annual lease payment for space in its current space totals $507,100 which was the amount we anticipated our annual bond repayment would be if we were to issue approximately $8,000,000 of limited tax general obligation bonds with a 2% issue cost over 30 -years at 4.50%. • The second transfer was our estimate of the annual operating costs of a City Hall facility including utilities, janitorial, grounds maintenance and snow removal, and operating and maintenance supplies. The purpose behind making these transfers beginning in 2015 was to "create" this appropriation capacity within the General Fund. These amounts will be transferred out to the General Fund in 2016 and 2017 in order to cover lease payments for the current City Hall location in years in which the City has both a lease payment and a bond payment for the new City Hall building. Budget Summary 2013 Actual Revenues Investment Interest $ 1,771 Sale of Land 0 Miscellaneous 0 Transfers in- #001: 2014 Actual $ 1,193 839,285 0 2015 Actual 2016 Budget 2017 Budget $ 2,113 $ 1,200 $ 1,200 0 0 0 0 0 0 -Future C.H. bond pmt> $434.6k lease pmt 0 0 67,600 72,500 0 -Future C.H. o&m costs 0 0 271,700 271,700 0 Transfers in- #312 0 0 58,324 0 0 Total revenues 1,771 840,478 399,737 345,400 1,200 Expenditures West Gateway at Thierman 9,942 0 0 0 0 Transfers out- #001: 0 0 0 198,734 490,500 Professional services 0 22,831 0 0 0 Capital Outlay - City Hall 0 0 1,136,738 0 0 Total expenditures 9,942 22,831 1,136,738 198,734 490,500 Revenues over (under) expenditures (8,171) 817,647 (737,001) 146,666 (489,300) Beginning fund balance 1,110,074 1,101,903 1,919,550 1,182,548 1,329,214 Ending fund balance $ 1,101,903 $ 1,919,550 $ 1,182,548 $ 1,329,214 $ 839,914 93 Fund: 311 Pavement Preservation Fund Spokane Valley 2017 Budget This fund was created during the 2011 Budget development process for the purpose of setting money aside for yet to be determined street capital improvement projects. During the 2011 Budget the City Council opted to: • Make an initial transfer of $500,000 from the Civic Facilities Capital Projects Fund #310, and additionally transfer an amount equivalent to 40% of the General Fund's audited fund balance that exceeded $26,000,000 as of December 31, 2010. The 2010 ending fund balance was $27,461,703 which resulted in an additional 2011 transfer of $584,681 ((=$27,461,703 - $26,000,000) x 40%) bringing the total transfers to $1,084,681. there were no pavement preservation expenditures from this fund in 2011. • In the 2012 Budget the City Council opted to transfer 100% of the General Fund unreserved fund balance in excess of $26,000,000 to Fund #311 which computed out to $2,045,203 (_ $28,045,203 - $26,000,000). Pavement preservation expenditures in 2012 totaled $2,181,451. • In the 2013 Budget development process the City committed to finance pavement preservation at a level equivalent to 6% of 2013 General Fund recurring expenditures which computed out to $2,054,141 (_ $34,235,677 x 6%). This was funded with an appropriation of $855,857 directly from the General Fund plus an additional appropriation of $1,198,284 in Fund #311. Sources of financing for the fund #311 appropriation included transfers -in from Fund #101 of $282,000; #123 of $616,284; #301 of $150,000 and #302 of $150,000. With an additional $35,945 in grant revenue this brought total 2013 pavement preservation revenues to $2,092,886, which financed $2,243,010 in projects in 2013 (=$855,857 in Fund #001 and $1,387,153 in Fund #311). • In the 2014 Budget development process the City again committed to finance pavement preservation at a level equivalent to 6% of General Fund recurring expenditures which computed out to $2,156,051 (=$35,934,187 x 6%). This was financed with transfers from a number of City funds including $888,823 from the General Fund #001; $282,000 from Fund #101; $616,284 from Fund #123; $184,472 from Fund #301 and $184,472 from Fund #302. With an additional $2,042,665 in grant revenue this brought total 2014 pavement preservation revenues to $4,200,619, which helped finance $3,077,215 of projects in 2014. • In the 2015 Budget development process the City again committed to finance pavement preservation at a level equivalent to 6% of General Fund recurring expenditures which computed out to $2,245,133 (=$37,418,882 x 6%). This was financed with transfers from a number of City funds including $920,000 from the General Fund #001; $206,618 from Fund #101; $616,284 from Fund #123; $251,049 from Fund #301 and $251,049 from Fund #302. With an additional $835,224 of grant revenue this brought total 2015 pavement preservation revenues to $3,083,613, which helped finance $2,400,407 of projects in 2015. • In the 2016 Budget development process the City again committed to finance pavement preservation at a level equivalent to 6% of General Fund recurring expenditures which computed out to $2,301,500 (=$38,357,999 x 6%). This was financed with transfers from a number of City funds including $943,800 from the General Fund #001; $67,342 from Fund #101; $559,808 from Fund #123; $365,286 from Fund #301 and $365,286 from Fund #302. With an additional $2,063,000 of grant revenue this brings anticipated 2016 pavement preservation revenues to $4,364,522, which are anticipated to finance $4,500,000 of projects in 2016. • The 2017 Budget is again being developed to set aside City funds equivalent to 6% of General Fund recurring expenditures which computes out to $2,341,500 (=$39,039,477 x 6%). This is being financed with transfers from a number of City funds including $953,200 from the General Fund #001; $67,342 from Fund #101; $660,479 from Fund #301 and $660,479 from Fund #302. With an additional $340,800 of grant revenue this brings anticipated 2017 pavement preservation revenues to $2,682,300. The 2017 Budget is anticipated to finance $3,000,000 of projects in 2017. The fund balance of Fund #123 was exhausted with the 2016 transfer of $559,808. In order to maintain the City's practice of setting aside funds for pavement preservation in an amount equivalent to 6% of General Fund recurring expenditures, the City will have to rely more heavily on the REET funds going forward. We have determined that the 2017 funding level of $2,341,500 is sustainable through 2021 assuming a General Fund contribution of $953,200, a Street Fund contribution of $67,342, and a collective contribution of $1,320,958 from the REET 1 Capital Projects Fund #301 and the REET 2 Capital Projects Fund #302. The City will take advantage of grant programs directed at pavement preservation as they become available. Because this is a Capital Project Fund whose sole purpose is to provide for Pavement Preservation projects, any money not expended in a given year will remain in the fund and will be available for re -appropriation in subsequent years. (continued to next page) 94 Fund: 311 Pavement Preservation Fund Spokane Valley 2017 Budget Please see the following page for a list of proposed / potential projects in 2017. Revenues Transfers in - #001 Transfers in - #101 Transfers in - #123 Transfers in - #301 Transfers in - #302 Investment Interest Grants Miscellaneous Total revenues Expenditures Pavement preservation Pre -project GeoTech Total expenditures Revenues over (under) expenditures Beginning fund balance Ending fund balance Budget Summary 2013 Actual $ 0 282,000 616,284 150,000 150,000 2,750 35,945 50 2014 Actual $ 888,823 282,000 616,284 184,472 184,472 1,853 2,042,715 0 1,237,029 4,200,619 1,387,153 3,021,922 0 55,293 1,387,153 3,077,215 (150,124) 1,123,404 948,733 798,609 $ 798,609 $ 1,922,013 2015 Actual $ 920,000 206,618 616,284 251,049 251,049 3,389 835,224 0 2016 Budget $ 943,800 67,342 559,808 365,286 365,286 0 2,063,000 0 2017 Budget $ 953,200 67,342 0 660,479 660,479 0 340,800 0 3,083,613 4,364,522 2,682,300 2,358,976 4,500,000 3,000,000 41,432 50,000 50,000 2,400,407 4,550,000 3,050,000 683,206 (185,478) (367,700) 1,922,013 2,605,219 2,419,741 $ 2,605,219 $ 2,419,741 $ 2,052,041 (continued to next page) 95 Fund: 311 Pavement Preservation Fund Spokane Valley 2017 Budget Based upon recommendations in the Pavement Management Plan Update along with field verification by Public Works staff we are recommending the following preliminary project list of pavement preservation projects in 2017: ARTERIAL STREETS FROM TO Dishman Mica (NB Lanes) 8th Appleway Blvd 8th Ave Havana Dearborn 8th Ave Carnahan McKinnon Mission Pines Evergreen Indiana Mirabeau Evergreen RESIDENTIAL STREETS FROM TO Saltese Road Houk Road McDonald Road Saltese Road McDonald Road 24th Ave Fox, Fox Ct 37th 35th 2nd Ave, Best to End Best Road East of Adam, End Contingency Prosect List ARTERIAL STREETS FROM TO University Road 16th Ave 24th Ave University Road 24th Ave Dishman Mica RESIDENTIAL STREETS FROM TO 28th Ave Dishman Mica Bowdish Road Skipworth Rd 24th Ave 16th Ave Walnut Rd 16th Ave 8th Ave Please note: Further investigation, testing and evaluation will be necessary to finalize these lists. 96 Fund: 312 Capital Reserve Fund Spokane Valley 2017 Budget This fund was created in 2013 to be used to account for the accumulation of resources for yet to be determined capital projects. The initial source of funds was a 2013 General Fund transfer of $7,826,207 and this was followed with a 2014 General Fund transfer of $2,443,507, 2015 General Fund transfer of $1,783,512, and 2016 General Fund transfer of $1,828,723. Projects approved by City Council from this fund thus far have included: • $21,139 for business route signage in 2013 • $57,601 for Balfour Park / Library site development • $261,993 for Appleway Landscaping • $2,320,000 for the City's share of the $15.3 million Sullivan Road West Bridge Replacement • $2,410,573 for construction of various sections of the Appleway Trail. • $5,199,664 for construction of a new City Hall building. Commitments to future projects include: • $700,000 towards a Barker Road / BNSF Grade Separation project. • $500,000 towards a Pines Road / BNSF Grade Separation project. • $1,800,000 to remove and reconstruct Euclid Ave. from Flora to Barker after County installation of sewer. Future projects are yet to be determined. Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget Revenues Transfers in #001 $ 7,826,207 $ 2,443,507 $ 1,783,512 $ 1,828,723 $ 0 Developer Contribution 3,180 4,675 0 0 0 Investment Interest 0 0 0 0 1,000 Total revenues 7,829,387 2,448,182 1,783,512 1,828,723 1,000 Expenditures Business Route Signage 21,139 0 0 0 0 Balfour Park / Library site development 57,601 0 0 0 0 Transfers out #303 - Appleway Landscaping 8,348 253,645 0 0 0 Transfers out #303 - Pines Rd Underpass 0 0 0 0 0 Transfers out #303 - Sullivan Rd W Bridge 0 443,688 42,730 1,467,779 10,000 Transfers out #303 - Euclid Ave - Flora to Bat 0 0 0 50,000 1,750,000 Transfers out #303 - 8th & Camahan Intersec 0 0 0 415,000 0 Transfers out #309 - Appleway Trail -Univ to I 0 911,433 524,812 0 0 Transfers out #309 - Appleway Trail -Pines-E 0 0 0 27,850 260,005 Transfers out #309 - Appleway Trail -Sullivan. 0 0 0 45,090 301,910 Transfers out #310 - City Hall 0 0 58,324 0 0 Transfers out #313 - City Hall 0 0 5,162,764 0 0 Transfers out #314 - Pines Grade Separation 0 0 0 500,000 0 Total expenditures 87,088 1,608,766 5,788,630 2,505,719 2,321,915 Revenues over (under) expenditures 7,742,299 839,416 (4,005,118) (676,996) (2,320,915) Beginning fund balance 0 7,742,299 8,581,715 4,576,597 3,899,601 Ending fund balance $ 7,742,299 $ 8,581,715 $ 4,576,597 $ 3,899,601 $ 1,578,686 97 Fund: 313 City Hall Construction Fund Spokane Valley 2017 Budget This fund was created to account for the architectural and construction costs for a City Hall building. The building is anticipated to be completed in Fall of 2017. Funding for the construction will come from a combination of an interfund transfer from the Capital Reserve Fund #312 in the amount of $5,162,764 and bond proceeds in the amount of $7.9 million. Land for the building site was acquired in 2015 through a purchase in the Civic Facilities Fund #310. Revenues Transfers in #312 Investment Interest Budget Summary 2013 Actual $ 2014 Actual 2015 Actual 2016 Budget 2017 Budget 0 $ 0 $ 5,162,764 $ 7,946,088 $ 0 0 0 0 Total revenues 0 0 5,162,764 7,946,088 0 0 0 Expenditures Capital Outlay - City Hall 0 0 373,718 7,294,400 5,344,219 2016 LTGO Bond Issue Costs 0 0 0 96,515 Total expenditures 0 0 373,718 7,390,915 5,344,219 Revenues over (under) expenditures 0 0 4,789,046 555,173 (5,344,219) Beginning fund balance 0 0 0 4,789,046 5,344,219 Ending fund balance $ 0 $ 0 $ 4,789,046 $ 5,344,219 $ 0 98 Fund: 314 Railroad Grade Separation Projects Fund Spokane Valley 2017 Budget This fund was created to account for the design and construction costs of various railroad grade separation projects that are included in the Bridging the Valley concept. Due to the anticipated size, scope, and duration of these projects, managing them in a separate fund allows for the necessary monitoring without being obscured by the variety and quantity of the other projects in the Street Capital Projects Fund #303 as well as keeping these projects from skewing the average volume of activity in Fund #303. Revenues for this fund consist of grant proceeds and transfers in from other City funds, such as the General Fund #001, the REET 1 Capital Project Fund #301 and the Capital Reserve Fund #312. Expenditures in the years of 2016 and 2017 are related to right-of-way acquisition and design costs for the Pines Road Underpass project and the Barker Road Overpass project. Revenues Grant Proceeds Transfers in #001 Transfers in #301 Transfers in #312 Total revenues Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget 0 $ 0 $ 0 $ 230,000 $ 489,921 0 0 0 0 1,200,000 0 0 0 20,000 280,079 0 0 0 500,000 0 0 0 0 750,000 1,970,000 Expenditures Barker BNSF Grade Separation 0 0 0 250,000 770,000 Pines Rd Underpass 0 0 0 500,000 1,200,000 Total expenditures 0 0 0 750,000 1,970,000 Revenues over (under) expenditures 0 0 0 0 0 Beginning fund balance 0 0 0 0 0 Ending fund balance $ 0 $ 0 $ 0 $ 0 $ 0 99 Fund: 402 Stormwater Management Fund Spokane Valley 2017 Budget The purpose of the Stormwater Management Fund is to account for the funds related to the maintenance, improvement and expansion of the City's storm sewer system. The revenue for this fund originates from a Stormwater fee collected on behalf of the City by Spokane County. The annual fee is $21 for each single family unit and $21 per each 3,160 square feet of impervious surface for all other properties. Each increment of 3,160 square feet is know as an equivalent residential unit (ERU). Accomplishments for 2016 • Completed small works projects per the Stormwater CIP. • Completed design and construction of stormwater capital projects in the current CIP. • Started an evaluation of the Stormwater Management Program Plan to meet permit requirements. • Worked with State agencies to provide a canopy for Spokane Valley Regional Decant Facility for year-round operations. • Led and participated with Eastern Washington jurisdictions to meet effectiveness study requirements. • Coordinated public education and outreach for stormwater quality awareness with other area agencies. • Monitored the Spokane River Toxics Task Force and the Idaho Washington Aquifer Collaborative for stormwater impacts. Goals for 2017 • Continue to work on applying for appropriate and applicable stormwater grants that will help the City keep costs low. • Provide planning and design efforts for continued disconnection of stormwater piping to creeks, streams, and drainages. • Continue work on possible stormwater upgrades and swale design along Appleway near University. • Continue to lead a coordinated effort to complete permit required effectiveness studies with the best return on investment. • Evaluate the storm drain cleaning program, recommend cost saving improvements, and bid new contract for 2018. • Complete small works project per the Stormwater CIP. • Initiate field testing of a GIS -driven maintenance management program to lower risk of mistakes and increase efficiencies. Personnel - FTE Equivalents Engineer Engineering Technician II Assistant Engineer Maintenance/Construction Inspector Planning Grants Engineer Interns Budget Summary 2013 Actual 1.0 1.0 1.0 1.5 0.0 4.50 2014 Actual 1.0 1.0 1.0 1.5 0.25 4.75 2015 Actual 1.0 1.0 1.0 1.15 0.25 4.40 2.0 2.0 2.0 2016 Budget 1.0 1.0 1.0 1.15 0.25 4.40 2017 Budget 1.0 1.0 1.0 1.15 0.25 4.40 2.0 2.0 (continued to next page) 100 Fund: 402 Stormwater Management Fund Spokane Valley 2017 Budget Budget Summary, continued Recurring Activity 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget Revenues StormwaterManagementfees $ 1,869,081 $ 1,918,404 $ 1,861,368 $ 1,870,000 $ 1,860,000 Investment Interest 1,992 1,342 2,455 1,500 2,500 Miscellaneous & Grants Revenue 4,144 0 543,332 0 0 1,875,217 1,919,746 2,407,155 1,871,500 1,862,500 Expenditures Wages, Payroll Taxes & Benefits 429,853 347,503 409,709 514,132 546,421 Supplies 10,954 8,388 30,222 15,900 15,425 Services & Charges 1,169,168 985,446 1,259,766 1,113,683 1,111,076 Intergovernmental Services 25,726 204,256 241,852 67,000 50,000 Transfers out - #001 13,400 13,400 13,400 13,400 13,400 Transfers out - #501 0 0 0 11,000 12,750 1,649,101 1,558,993 1,954,949 1,735,115 1,749,072 Recurring revenues over (under) Recurring Expenditures 226,116 360,753 452,206 136,385 113,428 Nonrecurring Activity Revenues Grant proceeds 233,165 76,097 0 175,000 210,000 FEMA Grant Proceeds - Windstorm 0 0 0 48,800 0 233,165 76,097 0 223,800 210,000 Expenditures Capital - Various Projects 834,941 103,307 0 151,100 450,000 Effectiveness study 0 0 0 175,000 210,000 Watershed studies 0 0 0 0 50,000 Maintenance facility storage unit 0 0 0 5,000 0 Storm -related street sweeping 0 0 0 50,000 0 Transfers out - #303 423 0 0 0 0 Transfers out - #403 (DOE for Decant Prop 0 50,125 0 0 0 Transfers out - #403 0 120,000 0 0 0 Transfers out - #501 (new pickup) 0 25,843 0 0 0 835,364 299,275 0 381,100 710,000 Nonrecurring revenues over (under) Nonrecurring Expenditures (602,199) (223,178) 0 (157,300) (500,000) Excess (Deficit) of Total Revenues Over (Under) Total Expenditures $ (376,083) $ 137,575 452,206 (20,915) (386,572) Beginning working capital 1,444,719 1,896,925 1,876,010 Ending working capital $ 1,896,925 $ 1,876,010 $ 1,489,438 101 Fund: 403 Aquifer Protection Area Fund Spokane Valley 2017 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. Revenues Spokane County Grant DOE - Decant Facility Grant DOT - Decant Facility Grant DOE - Broadway Retrofits Grant DOE - Sprague UIC Elimination Miscellaneous Transfers in - #402 (Stormwater) Total Revenues Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 484,343 $ 461,828 $ 533,593 $ 400,000 $ 460,000 203,609 550,710 0 0 0 85,221 100,000 0 0 0 O 49,203 0 0 0 570,331 0 1,036,603 0 0 150 0 0 0 0 O 170,125 0 0 0 1,343,654 1,331,866 1,570,196 400,000 460,000 Expenditures Broadway Retrofit 0 41,114 0 0 0 Construction- Decant Facility 299,319 893,514 0 0 0 SE Yardley Retrofits 7,109 728,565 0 0 0 Capital - Various projects 0 0 0 425,000 530,000 Sprague Swales 0 510 0 0 0 Depreciation Expense - Cap Imp 0 0 125,599 0 0 Transfers out - #402 0 0 120,000 0 0 Total Expenditures 306,428 1,663,703 245,599 425,000 530,000 Revenues over (under) expenditures $ 1,037,226 $ (331,837) 1,324,597 (25,000) (70,000) Beginning working capital (402,937) 921,660 896,660 Ending working capital $ 921,660 $ 896,660 $ 826,660 102 Fund: 501 Equipment Rental & Replacement Fund Spokane Valley 2017 Budget The Equipment Rental & Replacement Fund (ER&R) is an Internal Service Fund that is designed to provide the funds necessary to purchase new vehicles and equipment at predetermined life cycles. This fund operates by charging each City department a monthly rental rate for the vehicles they use. The fee is based upon the estimated useful life of the vehicle and its replacement cost. The theory behind this program is that it allows City departments to budget vehicle replacement costs as a reoccurring expense over an extended period of time rather than as an intermittent capital expense that may be difficult to afford in any single year. In the event a City department requires an additional vehicle that actually adds to the fleet rather than simply replaces an existing vehicle, then that department must budget for the initial purchase price and transfer the necessary funds to the ER&R Fund to make the acquisition. In subsequent years the department will then begin paying a replacement fee spread out over the estimated useful life of the new vehicle. The 2017 Budget includes a new CenterPlace Kitchen Reserve that will be established through a transfer in from the General Fund in the amount of $36,600 per year for 5 years to build a total reserve of $183,000, which is the estimated replacement cost of the significant kitchen appliances and equipment at CenterPlace. Snow Plow Replacement Program The snow plow fleet currently consists of nine plow trucks. Six of the trucks are equipped with sanders and three of the trucks are equipped with 1,000 -gallon tanks for placement of liquid deicer. Over the past five years the City has continued to improve the snow removal operations and has updated the snow plan accordingly. These improvements in snow operations have dictated that operating nine plows is a very efficient way to remove snow from the arterial and hillside roadways. Operating nine plows allows the performance of a full city arterial and designated hillsides plow in approximately 12 hours. In the future new plows will be purchased to replace the aging fleet as noted below and older plows will serve as backups and eventually be retired from the fleet beginning in 2022. The recommended snow plow fleet consists of eleven plows with two serving as backup plows. The two backup plows ensure that arterial roadways and hillside priority roadways can be cleared of snow per the snow plan. Having backup plows provides the City with additional plows that can be deployed in case of a mechanical breakdown or an accident during a winter storm event. The 2016 Budget included the purchase of a tandem axle plow truck with a sander for approximately $225,000. Future replacements will be single axle plows with an estimated cost of $200,000 per plow. Snow Plow Fleet Truck# Model Year YR Acquired Age at Retirement Replacement Yr Notes 206 1996 2009 26 2022 Existing Fleet (9) Snow Plows 207 1997 2009 28 2025 204 1995 2009 33 2028 203 1995 2009 36 2031 205 1996 2009 38 2034 208 1997 2009 40 2037 209 1998 2011 42 2040 211 2000 2012 43 2043 210 2010 2011 36 2046 212 2016 2016 33 2049 Truck 206 becomes a backup 213 2019 2019 33 2052 Truck 207 becomes a backup 214 2022 2022 33 2055 Truck 204 becomes a backup / 206 is retired 215 2025 2025 33 2058 Truck 203 becomes a backup / 207 is retired 216 2028 2028 33 2061 Truck 205 becomes a backup / 204 is retired 217 2031 2031 33 2064 Truck 208 becomes a backup / 203 is retired 218 2034 2034 33 2067 Truck 209 becomes a backup / 205 is retired 219 2037 2037 33 2070 Truck 211 becomes a backup / 208 is retired 220 2040 2040 33 2073 Truck 210 becomes a backup / 209 is retired 221 2043 2043 33 2076 Truck 212 becomes a backup / 211 is retired (continued to next page) 103 Fund: 501 Equipment Rental & Replacement Fund Spokane Valley 2017 Budget Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget Revenues Interfund Equip & Vehicle Lease $ 177,744 $ 102,744 $ 35,544 $ 106,000 $ 146,429 Transfers in - #001 (CenterPlace kitchen re 0 0 0 0 36,600 Transfers in - #101 (replacements) 0 25,849 0 0 0 Transfers in - #402 (addtl' pickup) 0 25,843 0 0 0 Investment Interest 1,176 792 1,449 1,000 2,000 Total Revenues 178,920 155,228 36,993 107,000 185,029 Expenditures Computer replacement lease 0 0 0 0 0 Software/Hardware replacement 0 0 0 0 0 Snow plow replacement 0 0 0 225,000 0 Vehicle Replacement 48,750 9,799 16,144 105,000 0 Total Expenditures 48,750 9,799 16,144 330,000 0 Revenues over (under) expenditures $ 130,170 145,429 20,849 (223,000) 185,029 Beginning working capital 1,082,719 1,228,148 1,248,997 1,025,997 Ending working capital $ 1,228,148 $ 1,248,997 $ 1,025,997 $ 1,211,026 104 Fund: 502 Risk Management Fund Spokane Valley 2017 Budget The City of Spokane Valley is exposed to risks of loss related to a number of sources including tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; natural disasters; and unemployment claims filed by former employees through the State of Washington. The Risk Management Fund was established to account for all such related revenues and expenses. Revenues for this fund are comprised almost entirely from an annual transfer of money from the General Fund and the single largest expense is typically the insurance premium the City pays to our insurance provider, the Washington Cities Insurance Authority (VVCIA). Revenues Transfers in - #001 Investment Interest Total Revenues Expenditures Auto & Property insurance Unemployment Claims Miscellaneous Total Expenditures Budget Summary 2013 Actual 2014 Actual 2015 Actual 2016 Budget 2017 Budget $ 319,000 $ 325,000 $ 325,000 $ 325,000 $ 350,000 7 5 8 0 0 319,007 325,005 325,008 325,000 350,000 263,922 272,435 284,112 325,000 350,000 14,126 8,532 14,722 0 0 0 0 0 0 0 278,048 280,967 298,834 325,000 350,000 Revenues over (under) expenditures 40,959 44,038 26,174 0 0 Beginning working capital 83,212 124,171 168,209 194,383 194,383 Ending working capital $ 124,171 $ 168,209 $ 194,383 $ 194,383 $ 194,383 105 CITY OF SPOKANE VALLEY, WA Capital Expenditures for 2017 Total Capital Expenditures and Related Financing 23,577,550 1,790,000 360,000 262,500 717,081 1,173,230 125,000 3,000,000 2,321,915 5,344,219 450,000 530,000 0 7,463,508 40,097 1 Contingency amount is to cover unforseen overruns, costs related to projects that were expected to complete in 2016 and the costs of projects that have not yet had funding sources identified. - Dollar figures in Italicized Bold font are paid from a combination of existing fund balance and fund revenue that is not attributable to a single project. 106 SOURCE OF FUNDS #001 #101 #107 #301 #302 #309 #311 #312 #313 #402 #403 #501 2017 REET1 REET2 Park City Aquifer Equipment Expenditure Capital Capital Capital Pavement Capital Hall Stormwater Protection Rental & Developer Capital Outlay Description Budget General Street PEG Projects Projects Projects Preservatior Reserve Construction Management Area Replacemen Grants Contributions #001 General Fund 100,000 100,000 - IT capital replacements - CAD / RMS System - Police Dept. 145,000 145,000 - CenterPlace Great Room audioNisual equip. 345,000 345,000 Subtotal 590,000 590,0001 01 1 01 01 01 01 01 01 01 01 01 01 0 #101 Street Fund 40,000 40,000 - Signal detection replacement - Traffic signal replacement 200,000 200,000 - Durable striping at Trent & Argonne 75,000 75,000 - Spare traffic signal equipment 30,000 30,000 - Battery backups for intersections 15,000 15,000 Subtotal 360,000 0 1 360,0001 0 1 0 00 01 0 1 0 1 0 1 0 1 0 1 0 I 0 #107 PEG Fund 12,500 12,500 - PEG Capital outlay - New City Hall Council Chambers 250,000 250,000 Subtotal 262,500 01 0 L 262,500 1 01 01 01 OJ 01 0 L 01 01 01 01 0 #303 Street Capital Projects Fund 500,000 67,500 432,500 123 Mission Ave - Flora to barker 141 Sullivan Rd/Euclid PCC (PE/RW) 2,150,000 951,730 1,198,270 155 Sullivan Rd W Bridge Replacement 10,000 10,000 166 Pines Rd (SR27) & Grace Ave. Intersection Safety 333,224 333,224 167 Citywide Safety Improvements 5,000 5,000 201 ITS Infill Project Phase 1 300,000 74,614 225,386 205 Sprague/Barker Intersection Improvements 40,097 40,097 207 Indiana & Evergreen Transit Access Imp 5,000 5,000 221 McDonald Rd Diet (16th to Mission) 5,000 5,000 222 Citywide Reflective Signal Backplates 36,000 900 35,100 229 32nd Ave Preservation Project 2,500 2,500 234 Seth Woodard Elem Sidewalk Improvement 5,000 5,000 238 Mirabeau Pkwy & Pines (SR -27) Traffic Signal 5,000 1,000 4,000 239 Bowdish Sidewalk - 8th to 12th 471,342 207,342 264,000 xxx N. Sullivan Corridor ITS Project 110,486 14,916 95,570 xxx Euclid Ave - Flora to Barker 1,750,000 1,750,000 xxx 9th Ave. Sidewalk 240,000 48,000 192,000 xxx Sullivan/Wellesley Intersection 198,000 26,730 171,270 Contingency 1 1,000,000 100,000 100,000 800,000 Subtotal 7,166,649 01 01 01 437,0021 1,173,2301 01 0 1,760,000 01 01 01 01 3,756,3201 40,097 #309 Parks Capital Projects Fund 1,925,957 260,005 1,665,952 227 Appleway Trail - Pines to Evergreen 237 Appleway Trail - Sullivan to Corbin 1,853,225 301,910 1,551,315 - Edgecliff Park Splashpad 125,000 125,000 Subtotal 3,904,182■ 01 01 01 01 01 125,0001 01 561,9151 01 01 01 01 3,217,2671 0 #311 Pavement Preservation Fund 3,000,000 3,000,000 - Pavement preservation Subtotal 3,000,000 01 01 01 01 01 01 3,000,000 01 01 01 01 01 01 0 #313 City Hall Construction Fund 5,344,219 5,344,219 215 City Hall 5,344,219 0 I 01 01 01 01 01 01 01 5,344,219 1 01 01 01 01 0 #314 Grade Separation Fund 770,000 280,079 489,921 143 Barker BNSF Grade Separation 223 Pines Rd Underpass @ BNSF & Trent 1,200,000 1,200,000 1,970,000 1,200,000 1 01 01 280,079 1 01 01 0 01 0 1 01 01 01 489,921 1 0 #402 Stormwater Management Fund 450,000 450,000 - Capital - various projects Subtotal 450,000 01 01 01 01 01 01 0 01 01 450,0001 01 01 01 0 #403 Aquifer Protection Area Fund 530,000 530,000 - Capital - various projects Subtotal 530,000 01 01 01 01 01 01 0 01 01 01 530,0001 01 01 0 Total Capital Expenditures and Related Financing 23,577,550 1,790,000 360,000 262,500 717,081 1,173,230 125,000 3,000,000 2,321,915 5,344,219 450,000 530,000 0 7,463,508 40,097 1 Contingency amount is to cover unforseen overruns, costs related to projects that were expected to complete in 2016 and the costs of projects that have not yet had funding sources identified. - Dollar figures in Italicized Bold font are paid from a combination of existing fund balance and fund revenue that is not attributable to a single project. 106 #001 - General Fund City Manager / City Clerk Legal Deputy City Manager Finance Human Resources Public Works City Hall Operations & Maintenance CED - Administration CED - Economic Development CED - Development Services CED - Engineering CED - Planning CED - Building Parks & Rec - Admin Parks & Rec - Recreation Parks & Rec - Senior Center Parks & Rec - CenterPlace CITY OF SPOKANE VALLEY, WA Full Time Equivalent Employees 2011 2012 Adopted 2013 I 2014 2015 2016 Proposed 2017 Difference from 2016 to 2017 + (-) 5 5 5 5 5 5 5 0.000 3 3 3 3 3 3 3 0.000 6 7 6 6 6 6 6 0.000 11 11 10.75 11.75 11.75 11.75 11.75 0.000 2 2 2 2 2 2 2 0.000 7.5 7 7 7.375 7.375 7.375 7.375 0.000 0 0 0 0 0 0 1 1.000 (1) 3 3 2 2 2 2 2 0.000 0 0 0 0 2.5 2.65 3.65 1.000 (2) 0 0 0 0 11 11 10 (1.000) (2) 6 6 8 7 0 0 0 0.000 8.5 8.5 8 8 0 0 0 0.000 12.75 12.75 11.5 12.5 14 14 14 0.000 2 2 2 2 2 2 2 0.000 1 1 1 1 1 1 1 0.000 1 1 1 1 1 1 1 0.000 5 5 5 5 5 5 5 0.000 Total General Fund 73.750 74.250 72.250 73.625 73.625 73.775 74.775 1.000 #101 - Street Fund 4.5 5 5 5.375 5.725 5.725 5.725 0.000 #303 - Street Capital Project Fund 3.5 3.5 3.5 3.5 3.5 3.5 3.5 0.000 #402 - Stormwater Fund 4.5 4.5 4.5 4.75 4.4 4.4 4.4 0.000 Total FTEs 86.250 87.250 85.250 87.250 87.250 87.400 88.400 1.000 (1) Reflects increase of one FTE for operations and maintenance of the new City Hall building. (2) Reflects the transfer of an employee from one division to another. 107 2016 Work Force Comparison The 31 Washington Communities with a Population of 30,000 to 100,000 CITY POPULATION FULL-TIME PART-TIME Bellingham 84,850 741 47 Yakima 93,410 694 17 Redmond 60,560 608 19 Kirkland 84,680 583 24 Olympia 51,600 547 14 Richland 53,410 454 26 Auburn 77,060 425 1 Kennewick 79,120 369 4 Lynnwood 36,590 339 6 Pasco 70,560 337 2 Federal Way 93,670 308 8 Bothell 43,980 299 7 Bremerton 40,500 296 19 Longview 37,230 296 8 Marysville 64,940 261 9 Walla Walla 33,340 260 14 Lacey 47,540 260 1 Puyallup 39,850 253 10 Issaquah 34,590 235 8 Edmonds 40,900 220 5 Lakewood 58,800 203 7 Mount Vernon 33,730 200 29 Pullman 32,650 199 34 Wenatchee 33,510 145 3 Shoreline 54,990 127 10 Des Moines 30,570 116 12 Sammamish 61,250 86 5 Spokane Valley 94,160 85 2 Burien 50,000 63 5 Lake Stevens 30,900 63 2 University Place 32,230 44 8 AVE RAGE 294 12 Source: Association of Washington Cities Survey: 2016 Participant Data - Cities and Towns (1) Did not respond in 2016. Employee counts are 2015 statistics. 108 EMPLOYEE POSITION CLASSIFICATION MONTHLY SALARY SCHEDULE Salary Schedule Effective January 1, 2017 Position Title Grade 2017 Range City Manager Unclassified Deputy City Manager 21-22 8,888.39 - 14,535.51 City Attorney 21 8,888.39 - 13,082.08 Community Development Director 21 8,888.39 - 13,082.08 Finance Director 21 8,888.39 - 13,082.08 Public Works Director 21 8,888.39 - 13,082.08 Parks and Recreation Director 19 7,199.37 - 10,597.37 Human Resources Manager 18 6,480.26 - 9,537.16 Planning Manager 18 6,480.26 - 9,537.16 Building Official 18 6,480.26 - 9,537.16 Capital Improvements Program Manager 18 6,480.26 - 9,537.16 Development Services Manager 18 6,480.26 - 9,537.16 Deputy City Attorney 18 6,480.26 - 9,537.16 Senior Engineer - Traffic and CIP 17 5,831.91 - 8,583.09 Accounting Manager 17 5,831.91 - 8,583.09 City Clerk 16 5,248.20 - 7,724.29 Engineer 16 5,248.20 - 7,724.29 Senior Plans Examiner 16 5,248.20 - 7,724.29 Public Works Superintendent 16 5,248.20 - 7,724.29 Senior Administrative Analyst 16 5,248.20 - 7,724.29 Senior Planner 16 5,248.20 - 7,724.29 Development Services Coordinator 16 5,248.20 - 7,724.29 GIS/Database Administrator 16 5,248.20 - 7,724.29 Associate Planner 15 4,724.02 - 6,952.33 Assistant Engineer 15 4,724.02 - 6,952.33 IT Specialist 15 4,724.02 - 6,952.33 Engineering Technician II 15 4,724.02 - 6,952.33 Economic Development Project Specialist 15 4,724.02 - 6,952.33 Human Resource Analyst 14 4,251.88 - 6,257.58 Accountant/Budget Analyst 14 4,251.88 - 6,257.58 Administrative Analyst 14 4,251.88 - 6,257.58 CenterPlace Coordinator 14 4,251.88 - 6,257.58 Planner 14 4,251.88 - 6,257.58 Building Inspector II 14 4,251.88 - 6,257.58 Plans Examiner 14 4,251.88 - 6,257.58 Public Information Officer 14 4,251.88 - 6,257.58 Engineering Technician I 14 4,251.88 - 6,257.58 Senior Permit Specialist 14 4,251.88 - 6,257.58 Code Enforcement Officer 14 4,251.88 - 6,257.58 Maintenance/Construction Inspector 13-14 3,826.38 - 6,257.58 Recreation Coordinator 13-14 3,826.38 - 6,257.58 Customer Relations/Facilities Coordinator 13 3,826.38 - 5,631.60 Building Inspector I 13 3,826.38 - 5,631.60 Executive Assistant 13 3,826.38 - 5,631.60 Planning Technician 13 3,826.38 - 5,631.60 Deputy City Clerk 12-13 3,445.00 - 5,631.60 Senior Center Specialist 12-13 3,445.00 - 5,631.60 Human Resources Technician 12-13 3,445.00 - 5,631.60 Permit Facilitator 12 3,445.00 - 5,068.32 Help Desk Technician 12 3,445.00 - 5,068.32 Administrative Assistant 11-12 3,099.55 - 5,068.32 Permit Specialist 11-12 3,099.55 - 5,068.32 Accounting Technician 11-12 3,099.55 - 5,068.32 Maintenance Worker 11-12 3,099.55 - 5,068.32 Office Assistant II 10-11 2,789.41 - 4,561.71 Custodian 10 2,789.41 - 4,104.59 Office Assistant I 9-10 2,510.78 - 4,104.59 Note: Slight rounding differences may exist between the figures reflected on this page and the actual payroll rates computed by the Eden Payroll System. 109 CITY OF SPOKANE VALLEY, WA Glossary of Budget Terms Accrual Basis — A basis of accounting in which revenues and expenditures are recorded at the time they occur as opposed to when cash is actually received or spent. Appropriation — A legal authorization granted by the City Council to make expenditures and to incur obligations for a specific purpose. Assessed Valuation — The valuation set upon real estate and certain personal property by the County Assessor as a basis for levying property taxes. Authorized Positions — Employee positions, which are authorized in the adopted budget, to be filled during the year. Bond — A long-term promise to repay a specified amount (the face amount of the bond) on a particular date (the maturity date). The most common types of bonds are general obligation revenue bonds. Bonds are primarily used to finance capital projects. Budget — A plan of financial activity for a specified period of time (fiscal year or biennium) indicating all planned revenues and expenses for the budget period. Budget Message — The opening section of the budget that provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous years, and the views and recommendations of the Mayor. 110 Capital Improvement — Expenditures related to acquisition, expansion or rehabilitation of an element of the government's physical plant; sometimes referred to as infrastructure. Capital Outlay — Fixed assets that have general value of $5,000 or more and have a useful economic lifetime of more than one year. Capital Project — Major construction, acquisition, or renovation activities which add value to government's physical assets or significantly increase their useful life, also called capital improvements. Capital Projects Fund — A fund created to account for all resources and expenditures used for the acquisition of fixed assets except those financed by enterprise funds. Contingency — A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contractual Services — Services rendered to a government by private firms, individuals, or other governmental agencies. Debt Service — Payment of interest and principal on borrowed money according to a predetermined payment schedule. Department — The basic unit of service responsibility, encompassing a broad mandate of related service responsibilities. Division — Can be a subunit of a department which encompasses a substantial portion of the duties assigned to a department (e.g. Building Division in the Planning and Community Development Department). Encumbrance — The commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a specified future expenditure. Expense — Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest or other charges. Face Value — The amount of principal that must be paid at maturity for a bond issue. Fiscal Year — A twelve-month period designated as the operating year for accounting and budgeting purposes in an organization. Full-time Equivalent Position (FTE) — A full-time or part-time position converted to the decimal equivalent of a full-time position based on 2,080 hours per year. For example, a part-time person working 20 hours per week would be equivalent of 0.5 of a full-time position. Fund — A fiscal entity with revenues and expenses that are segregated for the purpose of carrying out a specific purpose or activity. GAAP — Generally Accepted Accounting Principles. Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures 111 that define accepted accounting principles. GASB — The Governmental Accounting Standards Board, established in 1985, is the current standard-setting board for governmental GAAP. General Fund — The principal operating fund of the City used for general governmental operations. Taxes and fees that generally have no restriction on their use support it. General Obligation (G.O.) Bonds — This type of bond is backed by the full faith, credit and taxing power of the government issuing it. Indirect Cost — A cost necessary for the functioning of the organization as a whole, but which cannot be identified with a specific product, function or activity. Infrastructure — The physical assets of a government (e.g. streets, water, sewer, public buildings, and parks). Interfund Transfers — The movement of monies between funds of the same governmental entity. Levy — To impose taxes for the support of the governmental activities. Long-term Debt — Debt with a maturity of more than one year after the date of issuance. Mission Statement — A broad statement of the intended accomplishment or basic purpose of a program. Modified Accrual Accounting — A basis of accounting in which expenditures are accrued but revenues are accounted for when they become measurable and available. Since this type of accounting basis is a conservative financial approach, it is recommended as the standard for most governmental funds. Operating Budget — The portion of the budget that pertains to daily operations that provide basic governmental services. Ordinance — A formal legislative enactment by the City Council. If it is not in conflict with any higher form of law, such as a statute or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies. Program — The smallest organization that delivers a specific set of services. A program may be an entire department; or if a department encompasses significantly diverse responsibilities or large work forces, a single department may be divided into two or more programs. Reserve — An account used to either set aside budgeted revenues that are not required for expenditure in the current budget year or to earmark revenues for a specific future purpose. Resolution — A special or temporary order of a legislative body—an order of a legislative body requiring less legal formality than an ordinance or statute. Resources — Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. 112 Revenue — Sources of income financing the operations of government. Taxes — Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those who pay, for example, sewer service charges. Unreserved Fund Balance — The portion of a fund's balance that is not restricted for a specific purpose and is available for general appropriation. User Charges — The payment of a fee for direct receipt of a public service by the party who benefits from the service. Vision Statement — A short statement that conveys the big picture of the organization. It is general in scope, not restricting. It answers the question "Why?" CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 8, 2016 Department Director Approval: Check all that apply: ❑ consent ❑ old business ® new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Motion Consideration: Spokane Regional Transportation Management Center Interlocal Agreement GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: Informational memorandum on SRTMC Interlocal Agreement, March 24, 2015; Administrative report on SRTMC Interlocal Agreement, March 31, 2015; Motion for consideration on SRTMC Interlocal Agreement, April 14, 2015; Administrative Report on SRTMC Interlocal Agreement Amendment No. 2, December 1, 2015; Motion for consideration on SRTMC Interlocal Agreement Amendment No. 2, December 8, 2015; Informational memorandum on SRTMC Interlocal Agreement, July 5, 2016; Administrative Report on SRTMC Interlocal Agreement, July 12, 2016; Motion passed July 26, 2016, to continue with the SRTMC through calendar year 2017 and once the Interlocal Agreement is finalized, to bring the document back to Council for approval as part of a future Council agenda item; Informational memorandum on SRTMC Interlocal Agreement, October 25, 2016; Administrative Report on SRTMC Interlocal Agreement, November 1, 2016. BACKGROUND: Planning for the Spokane Regional Transportation Management Center (SRTMC) began in 1998 and led to the development of an interlocal agreement between the Washington State Department of Transportation (WSDOT), Spokane County, Spokane Transit Authority (STA), City of Spokane, and the Spokane Regional Transportation Council (SRTC). The intent of the SRTMC is to provide a multi -jurisdictional control facility for the partnering agencies to enhance and support advanced transportation management capabilities. The SRTMC was originally intended to serve as a hub for regional transportation communications and to provide a seamless coordination of intelligent transportation system (ITS) devices, including traffic signals across agency boundary lines. The center operates twenty-four hours a day, seven days a week for 365 days a year, and has done so since 2003. The SRTMC relies on federal grant funding, yearly member contributions, and WSDOT directed funds. The federal grants and member contributions fund the SRTMC Manager, the IT Manager, two operators, software maintenance contracts, operation of the website, and daily hardware maintenance and functions for the center. The City's contribution historically has been $15,000 per year. However, the member agency contributions have been waved in 2015 and 2016, and are likely to be waved in 2017 pending the 2017 SRTMC budget. The SRTMC has an Operating Board that consists of technical members from each of the partner agencies. The Operating Board is responsible for reviewing and approving SRTMC activities and has monthly board meetings. These board meetings are generally technical in nature and involve discussion of future ITS planning and implementation projects and strategies as well as the reviewing of previous monthly activities, invoices, and billings. As of today, the City of Spokane Valley has 45 traffic signals, 12 cameras, and one dynamic message sign on the City's ITS network. The City provides limited access of our system to the SRTMC, including access to the 12 cameras. Later this year the City will be collecting traffic count data from our traffic signals via the ITS network, and can provide this data to the SRTMC for regional use. The SRTMC has made great headways this year by utilizing federal funds that have been allocated to the center. The SRTMC manager has undergone a very rigorous request for proposals for a new advance transportation management system (ATMS), which is the heart of the SRTMC. The SRTMC now has a very well defined work plan and budget, and has gained positive momentum in the region to provide ITS connectivity. Another recent accomplishment is the SRTMC's recent website upgrade, which is open to the general public and located at www.srtmc.orq. The website contains information about specific corridors and has real-time video feeds from cameras throughout the Spokane region. The website also identifies travel impacts from construction activities throughout the region. Two previous amendments to the 1998 interlocal occurred in 2015. The first amendment set a trial period, added the City of Spokane Valley as an official partner, and identified WSDOT as the lead agency of the SRTMC. City Council agreed to this and approved the first amendment in April of 2015. The second amendment included a sunset clause, and established the termination date of December 31, 2017, unless terminated sooner or extended as provided within the agreement. City Council agreed to this amendment in December of 2015. The SRTMC staff is being proactive in beginning preparation of an updated interlocal agreement with intent to have approvals in 2016, well before the December 31, 2017 termination date. The City currently operates a traffic signal management software that is common to the region. The annual maintenance fee for this software is approximately $10,000 per year, and includes support from the software developer. The cost for the software annual maintenance is currently and has been historically funded through the SRTMC, which would essentially come out of our member contribution of $15,000; therefore our total annual contribution to continue our status as a regional partner in the SRTMC nets to $5,000. If the City were not part of the SRTMC, we would need to pay the annual maintenance fee for the traffic signal management software to maintain operational management of our traffic signal system. Additionally, the services performed at the SRTMC benefit the City of Spokane Valley citizens traveling on regional roadways, such as 1-90, Division Street, SR 195 and SR 395. The benefits include incident response activities, which reduced delay during a collision; accessing and transmitting messages to the variable message signs (VMS) along each roadway, allowing drivers to make decisions regarding alternate routes to avoid delays; and accessing regional cameras to view traffic on the regional roadways. As technology continues to improve, and with the deployment of new systems in the region, the SRTMC will provide more benefit to the region and to our citizens. The City of Spokane Valley is an integral piece in the continuing ITS development within the region, which benefits our citizens by improving their commute throughout the City and region. It is staff's recommendation to continue with the SRTMC while monitoring the SRTMC's annual workplan and budget. The SRTMC interlocal has an opt -out clause, which requires written notification by August 1st to be withdrawn on January 1st of the subsequent year. Staff will immediately notify Council should any changes to the SRTMC workplan or budget result in potential changes in our member contribution. The member contributions for 2017 are expected to be $0. The SRTMC management has finalized the new interlocal agreement, which is enclosed with this RCA. Please note that the City's legal counsel has reviewed and provided comments which are incorporated into the enclosed agreement. The agreement as presented has been approved and signed by the WSDOT, Spokane County, and the City of Spokane and is pending signatures from the STA and SRTC in November. OPTIONS: 1) Approve the SRTMC Interlocal Agreement, or 2) provide additional direction for staff. RECOMMENDED ACTION OR MOTION: Move to authorize the Acting City Manager to execute the SRTMC Interlocal Agreement as presented. BUDGET/FINANCIAL IMPACTS: No change to 2016 or 2017 budget. STAFF CONTACT: Sean Messner, Senior Traffic Engineer Eric Guth, Public Works Director ATTACHMENTS: SRTMC Interlocal Agreement INTERLOCAL AGREEMENT REGARDING THE CREATION, OPERATIONS AND MANAGEMENT OF THE SPOKANE REGIONAL TRANSPORTATION MANAGEMENT CENTER WSDOT NO. GCB 2457 This Interlocal Agreement (Agreement) is made and entered into among the Washington State Department of Transportation (WSDOT); Spokane County, Washington; the City of Spokane, Washington (COS); the Spokane Transit Authority (STA); the City of Spokane Valley, Washington (COSV); and the Spokane Regional Transportation Council (SRTC), collectively referred to as the Members and individually referred to as a Member, for the purposes of formalizing the creation, operations and management of the Spokane Regional Transportation Management Center (SRTMC). RECITALS A. Pursuant to the provisions of chapter 39.34 RCW, two or more public entities may jointly cooperate with one another to perform functions that each may individually perform. B. The SRTC is the federally designated Metropolitan Planning Organization and the State designated Regional Transportation Planning Organization for Spokane County that plays a critical role in the regional transportation planning process. C. The Members, other than the SRTC, operate transportation facilities in the Spokane region that are necessarily interwoven and interdependent. The interest of the traveling public will best be served by coordinating the Members' transportation systems as a whole. D. The Members have been operating and maintaining the Spokane Regional Transportation Management Center (SRTMC) pursuant to WSDOT contract number GCA 1450, dated October 1, 1998, as amended by Amendment No. 1, with an effective date of April 30, 2015, and Amendment No. 2, with an effective date of December 22, 2015 (collectively referred to as GCA 1450). E. The SRTMC is a regional transportation management system that provides traveler information and traffic management services on the Spokane regional transportation system to allow a seamless multi -modal commute across the jurisdictional boundaries of the participating Members. F. The SRTMC also allows the Members to individually or collectively pursue federal and state funding for the regional transportation system, including but not limited to the funding of the SRTMC itself. G. The Members desire to continue to operate and maintain the SRTMC under this Agreement, which will replace and supersede GCA 1450. NOW, THEREFORE, in consideration of the terms, conditions, covenants and performances contained herein, IT IS MUTUALLY AGREED AS FOLLOWS: SRTMC Interlocal Page 1 of 12 AGREEMENT Section 1: Purpose; SRTMC Regional Area 1.1 Purpose. The purpose of this Agreement is to create and establish the framework to manage and operate the SRTMC to: 1.1.1 Continue the coordinated system management of transportation facilities of Spokane County, COS, COSV, WSDOT and STA; 1.1.2 Establish a transportation management center for the Spokane County area that complies with applicable federal and state transportation legislation; 1.1.3 Facilitate the storage and distribution of regional traffic data amongst the Members; and 1.1.4 Facilitate the solicitation of funding for the SRTMC. 1.2 SRTMC Regional Area 1.2.1 The regional area covered by this Agreement shall consist of all incorporated and unincorporated areas of Spokane County, Washington and may include contiguous areas across the county or state of Washington (State) boundaries, as deemed appropriate by the Operating Board, and which meet the criteria of State and/or federal transportation legislation (Regional Area). 1.2.2 WSDOT may further utilize the SRTMC for traffic operations management through the entire WSDOT Eastern Region and may coordinate with other transportation management centers that may have operational areas extending outside the Regional Area. This work shall be funded solely by WSDOT and not through use of Member funds or grants associated with the SRTMC. Section 2: Term, Termination, Withdrawal 2.1 Term. The duration of this Agreement shall be indefinite, subject to termination as provided elsewhere herein. 2.2 Termination. This Agreement may be terminated in whole or in part by written agreement executed by the then existing Members. If the Agreement is so terminated, the Members shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. 2.3 Member Withdrawal. Any Member may withdraw from this Agreement by giving written notice to the Operating Board Chair prior to August 1st of any year. The withdrawal shall be effective January 1st of the subsequent year. If a Member so withdraws, the withdrawing SRTMC Interlocal Page 2 of 12 Member shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of withdrawal. Section 3: Organization 3.1 Voluntary Association. The Members intend with this Agreement to create a voluntary association known as SRTMC amongst themselves that will be governed by a joint board comprised of professional representatives from each Member. 3.2 SRTMC Operating Board. 3.2.1 The Members hereby create the SRTMC Operating Board (Operating Board) that will govern the operations of the SRTMC as provided herein. 3.2.2 It is the intent of the Members in creating the Operating Board to meet the prerequisites of federal transportation legislation requiring the development of an integrated congestion management system to manage existing traffic congestion and help to prevent new congestion from occurring. As such, the Operating Board shall direct the functions of the transportation management center for the Regional Area, including but not limited to, those functions set forth in applicable federal transportation legislation. 3.2.3 Each Member shall appoint a professional representative to the Operating Board who holds a position within its organization that has authority to make decisions related to transportation operations for their respective agency/jurisdiction. 3.2.4 Alternate Operating Board representatives may serve in the absence of the designated representative so long as the alternate representative has similar authori ty to act on behalf of the appointing Member's parent agency. 3.2.5 The Operating Board shall adopt rules regarding the election of officers that shall include, at a minimum, a chair and vice -chair. 3.2.6 The SRTC board member shall serve in an ex officio, non-voting Member capacity. All other Members shall be voting Members. 3.3 SRTMC Executive Board. 3.3.1 The Members hereby create the SRTMC Executive Board (Executive Board) that will govern the Operating Board of the SRTMC as provided herein. 3.3.2 It is the intent of the Members in creating the Executive Board to provide oversight of the Operating Board and their duties and provide approvals of the annual budget and work plan. SRTMC Interlocal Page 3 of 12 3.3.3 Each Member shall appoint a representative to the Executive Board who holds a position within its organization that has signing authority to approve decisions on behalf of each Member agency. 3.3.4 Alternate Executive Board representatives may serve in the absence of the designated representative so long as the alternate representative has similar signing authority to act on behalf of the appointing Member agency. 3.4 Limitations. The Operating Board is not authorized, in any way, to supersede the legal authority vested in the SRTC, Spokane County, COS, COSV, WSDOT, STA, or any future entity that becomes a Member to this Agreement. 3.5 Adding new members to the Operating Board. The Operating Board with concurrence from the Executive Board may add Members to SRTMC by at least a 75% vote. Upon receiving at least a 75% vote, the new Members shall enter into this Agreement. Section 4: Operating Board Powers and Functions The functions, responsibilities, and powers of Operating Board shall be as follows: 4.1 Meetings 4.1.1 The Operating Board shall hold regular meetings. The chair of the Operating Board may call special meetings or executive sessions or shall call a special meeting at the request of a majority of the Operating Board. 4.1.2 The Operating Board shall adopt rules for the conduct of its business consistent with this Agreement and such rules shall prescribe, among other matters, the place of meetings, the methods of providing reasonable notice to Members thereof, and what constitutes a quorum for the purpose of transacting business. Such rules shall be adopted and may be amended by ratification of at least 75% of the then total number of voting Members of the Operating Board or by amendment to this Agreement as provided elsewhere herein. 4.1.3 All meetings of the Operating Board shall be open to the public as required by chapter 42.30 RCW. 4.2 The Operating Board shall direct the functions of the transportation management center for the Regional Area that are required to comply with applicable federal and state transportation legislation. 4.3 The Operating Board shall oversee the preparation and updating of the regional intelligent transportation plans, including but not limited to, the Regional Transportation Incident Management Program, and the Regional Intelligent Transportation System Architecture Plan. SRTMC Interlocal Page 4 of 12 4.4 The Operating Board shall administer approved regional transportation projects and programs that facilitate operations of the SRTMC. 4.5 The Operating Board shall direct such other transportation systems management related function as the Operating Board may hereinafter determine to be in the best interest of the SRTMC. 4.6 Funding 4.6.1 The Operating Board may utilize funding from federal and state governmental grants-in-aid and donations in accordance with the terms and conditions of such funding and to the extent such funds further the regional transportation management systems. 4.6.2 The Operating Board shall consider and approve, as appropriate, applications for or acceptance of any grants to carry out those functions of the SRTMC. 4.6.3 The SRTMC shall be funded by Grants except for those operations which occur outside the Regional Area. These operations shall be funded wholly by WSDOT. In the event grants are not available or obtained, Members shall have a choice of determining a funding solution at that time or opting out of the Agreement. 4.6.4 Each voting Member will pay dues in the sum of up to $15,000 per year. The dues for voting Members may be modified by at least a 75% vote of the Executive Board. 4.7 Work Plan and Annual Budget 4.7.1 The Operating Board, in conjunction with the SRTMC Manager, will develop detailed work and financial plans/budget with measurable milestones for the operation and maintenance of the SRTMC. 4.7.2 The Operating Board shall recommend approval of the work plan and budget for approval by the Executive Board by November 1 of the preceding year. 4.7.3 The Operating Board may amend the SRTMC work program and financial plans/budget by a majority vote, provided such an amendment is approved by the Executive Board and is within the funding authorized for use of the SRTMC. 4.8 The Operating Board shall authorize payment of costs incurred by a Member for authorized SRTMC activities. 4.9 The Operating Board may contract for legal counsel for the SRTMC and the Operating Board, as needed. Section 5: Executive Board Powers and Functions The functions, responsibilities, and powers of the Executive Board shall be as follows: SRTMC Interlocal Page 5 of 12 5.1 The Executive Board shall hold regular meetings. The chair of the Operating Board may call special meetings or executive sessions or shall call a special meeting at the request of a majority of the Executive Board. 5.2 All meetings of the Executive Board shall be open to the public as required by chapter 42.30 RCW. 5.3 The Executive Board shall oversee the functions of the Operating Board. 5.4 The Executive Board shall approve any Member dues that the Operating Board recommends. 5.5 The Executive Board will evaluate the performance of the Operating Board and the SRTMC Manager against the work plan, budget and measurable milestones. Section 6: SRTMC Staffing and Operations 6.1 Staff necessary to perform the SRTMC work, as identified in the approved work plans and as consistent with this Agreement, shall be Member employees as designated by the respective Member. Member employees assigned to the SRTMC staff shall be hired and discharged by their respective Member. In addition, insurance will be provided for employees by their respective Member. 6.2 The SRTMC manager shall serve under the general guidance of the Operating Board and shall be responsible for conducting activities necessary to carry out the work program as approved by the Operating Board. 6.3 The Operating Board shall have input to the SRTMC Manager's evaluation. If the Operating Board is not satisfied with the performance of the SRTMC Manager, they may direct a letter of concern to the Member that employs the SRTMC Manager. That Member shall have 90 days to resolve the Operating Board's concerns. If after 90 days the concerns are not resolved, the concerns shall be raised to the SRTMC Executive Board for resolution. The performance issue shall be included in the SRTMC Manager's evaluation, but the 90 day resolution period will not delay evaluation closeout. 6.4 SRTMC staff performing work within the Regional Area shall be funded in accordance with the budget adopted by the SRTMC. SRTMC staff that also performs work duties for WSDOT outside the Regional Area shall be funded solely by WSDOT. 6.5 WSDOT is hereby authorized to make expenditures in accordance with the approved SRTMC budget and work plan as approved by the SRTMC Operating Board. WSDOT shall maintain records of expenditures, and shall report regularly to the Operating Board on budget activity. SRTMC Interlocal Page 6 of 12 Section 7: Treatment of Assets 7.1 Title to all property furnished by a Member shall remain with that Member, unless otherwise agreed to in writing. 7.2 All property that Members have installed in the field shall remain the property of that Member. 7.3 In the event the Members determine to disband SRTMC, all property that has been installed at the SRTMC may be transferred to the entity that continues to operate the SRTMC for the region. If no entity continues to operate the SRTMC for the region, all property that has been installed at the SRTMC shall be divided equally amongst the Members that have paid for equipment installation. Section 8: Maintenance of Records 8.1 The Members to this Agreement shall each maintain books, records, documents and other evidence that sufficiently and properly reflect all direct and indirect costs expended by each Member in the performance of the service(s) described herein. These records shall be subject to inspection, review or audit by personnel of each Member, other personnel duly authorized by each Member, the Office of the State Auditor, and federal officials so authorized by law. All books, records, documents, and other material relevant to this Agreement shall be retained for six years after expiration of Agreement. The Office of the State Auditor, federal auditors, and any persons duly authorized by the Members shall have full access and the right to examine any of these materials during this period. 8.2 If any litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained for either one (1) year following the termination of litigation, including all appeals, or six (6) years from the date of expiration or termination of this Agreement, whichever is later. 8.3 Records and other documents, in any medium, furnished by one Member to this Agreement to another Member, will remain the property of the furnishing Member, unless otherwise agreed. The receiving Member shall not disclose or make available any confidential information to any third party without first giving notice to the furnishing Member and giving it a reasonable opportunity to respond. Each Member shall utilize reasonable security procedures and protections to assure that records and documents provided by the other Member are not erroneously disclosed to third parties. However, the Members acknowledge that the Members are subject to chapter 42.56 RCW, the Public Records Act. Section 9: Legal Relations 9.1 Individually, each Member shall protect, defend, indemnify, and save harmless each other Member, its officers, officials, employees, and agents from any and all costs, claims, judgment, and/or awards of damages resulting from the negligent acts or omissions of its SRTMC Interlocal Page 7 of 12 officers, officials, employees, and agents acting within the scope of their employment and arising out of or in connection with the performance of this Agreement. 9.2 In the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of more than one Member, their officers, officials, employees, and agents, an individual Member's liability hereunder shall be only to the extent of that Member's negligence. 9.3 It is further specifically and expressly understood that the indemnification provided herein constitutes a Member's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purpose of this indemnification provision. This limited waiver has been mutually negotiated by the Members. The provisions of this section shall survive the expiration or termination of this Agreement. Section 10: General 10.1 Recitals, Exhibits and Attachments. The recitals of this Agreement are hereby incorporated into this Agreement. All exhibits, attachments, and documents referenced in this Agreement are hereby incorporated into this Agreement. 10.2 Independent Capacity. The employees or agents of each Member who are engaged in the performance of this Agreement shall continue to be employees or agents of the Member and shall not be considered for any purpose to be employees or agents of the other Member. 10.3 Assignment. Neither this Agreement, nor any rights created by it, may be assigned or transferred. 10.4 Assurances. The Members agree that all activity pursuant to this Agreement shall be in accordance with all applicable federal, state and local laws, rules, and regulations as they currently exist or as amended. 10.5 Interpretation. This Agreement shall be interpreted in accordance with the laws of the state of Washington. The titles to paragraphs and sections of this Agreement are for convenience only and shall have no effect on the construction or interpretation of any part hereof. 10.6 Amendments. This Agreement may be amended by the mutual written agreement of the Members executed by personnel authorized to bind each of the Members. 10.7 Waiver. A failure by any Member to exercise its rights under this Agreement shall not preclude that Member from subsequent exercise of such rights and shall not constitute a waiver of any other rights under this Agreement unless stated to be such in writing signed by an authorized representative of the Member and attached to the original Agreement. 10.8 All Writings Contained Herein. This Agreement contains all the terms and conditions agreed upon by the Members. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the Members. SRTMC Interlocal Page 8 of 12 10.9 Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington. Venue of any action brought under this Agreement shall be in Superior Court for Spokane County. 10.10 Severability. If any term or condition of this Agreement is held invalid, such invalidity shall not affect the validity of the other terms or conditions of this Agreement. 10.11 Nondiscrimination. No individual shall be excluded from participation in, denied the benefit of, subjected to discrimination under, or denied employment in the administration of or in connection with this Agreement because of age, sex, race, color, religion, creed, marital status, familial status, sexual orientation including gender expression or gender identity, national origin, honorably discharged veteran or military status, the presence of any sensory, mental or physical disability, or use of a service animal by a person with disabilities. The Members agree to comply with, and to require that all subcontractors comply with, federal, state and local nondiscrimination laws, including but not limited to: the Civil Rights Act of 1964, the Rehabilitation Act of 1973, the Age Discrimination in Employment Act, and the American's With Disabilities Act, to the extent those laws are applicable to the subject matter of this Agreement 10.12 Anti -kickback. No officer or employee of the Members, having the power or duty to perform an official act or action related to this Agreement shall have or acquire any interest in the Agreement, or have solicited, accepted or granted a present or future gift, favor, service or other thing of value from or to any person involved in this Agreement. Section 11: Contract Execution 11.1 Authority to Bind. The signatories to this Agreement represent that they have the authority to bind their respective organizations to this Agreement. 11.2 Counterparts. This Agreement may be executed in counterparts or in duplicate originals. Each counterpart or each duplicate shall be deemed an original copy of this Agreement signed by each Member, for all purposes. Section 12: RCW 39.34 Required Clauses 12.1 Purpose: See Section 1.1 of this Agreement. 12.2 Duration: See Section 2.1 of this Agreement. 12.3 Separate Legal Entity: See Sections 3.1 and 10.2 of this Agreement. 12.4 Responsibilities of the Parties: See Sections 3 — 6 of this Agreement. 12.5 Agreement to be Filed: The Members shall each file this Agreement with their respective clerks and/or place it on its web site or another electronically retrievable public source, provided this Agreement shall be immediately effective upon the filing and publication SRTMC Interlocal Page 9 of 12 by any one Member and the failure of any Member to comply with this requirement shall not invalidate this Agreement. 12.6 Financing: Each Member shall be responsible for the financing of its contractual obligations under its normal budgetary process, and in accordance with Sections 4.6 and 4.7 of this Agreement. 12.7 Termination: See Section 2.2 of this Agreement. 12.8 Disposal of Property Upon Termination: See Section 7.3 of this Agreement. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK SRTMC Interlocal Page 10 of 12 IN WITNESS WHEREOF, the Members have executed this Agreement as of the date last signed below. This Agreement may be executed in counterparts. STATE OF WASHINGTON DEPARTMENT OF TRANSPORTATION APPROVED AS TO FORM By: By: Michael R. Gribner, P.E. Acting Regional Administrator, Eastern Region Patricia Nightingale Assistant Attorney General SPOKANE COUNTY, BOARD OF COUNTY COMMISSIONERS ADOPTED this day of , 2016 ATTEST: Shelly O' Quinn, Chair By: Clerk of the Board Al French, Vice -Chair Date: Nancy McLaughlin, Commissioner CITY OF SPOKANE ATTEST: By: By: Date: City Clerk Date: APPROVED AS TO FORM Office of the City Attorney CITY OF SPOKANE VALLEY ATTEST: By: By: Date: City Clerk Date: APPROVED AS TO FORM Office of the City Attorney SRTMC Interlocal Page 11 of 12 SPOKANE TRANSIT AUTHORITY ATTEST: By: By: Date: Clerk of the Authority Date: APPROVED AS TO FORM STA Legal Counsel SPOKANE REGIONAL TRANSPORTATION COUNCIL ATTEST: By: By: Date: Date: APPROVED AS TO FORM SRTC Legal Counsel SRTMC Interlocal Page 12 of 12 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 8, 2016 Check all that apply: ❑ consent ❑ old business ❑ information ❑ admin. report Department Director Approval: ® new business ❑ public hearing ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Motion consideration — Approval of Job Description for position of City Manager. GOVERNING LEGISLATION: None. PREVIOUS COUNCIL ACTION TAKEN: Motion consideration on October 25, 2016 to appoint Mark Calhoun as City Manager and authorize the Mayor to negotiate the terms of an employment agreement, subject to final approval by the City Council. BACKGROUND: As part of the process for recruitment of a new City Manager, the Council authorized the Mayor to appoint a committee comprised of the Mayor, Councilmember Ed Pace, Human Resources Manager John Whitehead, and City Attorney Cary Driskell, to conduct the day-to-day management of the recruitment process, including hiring of an outside executive recruitment firm. One of the tasks for the committee was to draft an updated job description for the position of City Manager, with the stated goal of presenting it to the Council for motion consideration to adopt the job description. Following numerous discussions by the committee, the attached job description was tentatively finalized in July, 2016 for presentation to Council for its consideration in conjunction with consideration of the proposed Employment Agreement. OPTIONS: Consider approval of the City Manager job description as drafted or amended. RECOMMENDED ACTION OR MOTION: I move we approve the job description for the position of City Manager for the City of Spokane Valley, as drafted. BUDGET/FINANCIAL IMPACTS: NA. STAFF CONTACT: Cary Driskell, City Attorney; John Whitehead, Human Resources Manager. ATTACHMENTS: Proposed job description for the position of City Manager. Class Title: City Manager Department: City Manager Division: NA Date: July 18, 2016 GENERAL PURPOSE: CITY OF SPOKANE VALLEY POSITION DESCRIPTION Job Code Number: 100 Grade Number: NA FLSA Status: Exempt Location: City Hall The City Manager is a professional administrator, and is the administrative manager of all City departments. He or she is directly accountable to the City Council for the execution of the City Council's policy directives pursuant to RCW 35A.13.080 or chapter 2.15 SVMC. SUPERVISION RECEIVED: Works under the broad policy guidance and at the pleasure of the City Council. SUPERVISION EXERCISED: As chief executive officer, exercises supervision over all municipal employees and City contracts, either directly or through subordinate supervisors. ESSENTIAL DUTIES AND RESPONSIBILITIES: Manages and supervises all departments, agencies and offices of the City to achieve goals within available resources; plans and organizes workloads and staff assignments; trains, motivates and evaluates assigned staff; reviews progress and directs changes as needed. Provides leadership and direction in the development of short and long-range plans; gathers, interprets, and prepares data for studies, reports and recommendations; coordinates department activities with other departments and agencies as needed. Provides professional advice to the City Council and department heads; makes presentations to councils, boards, commissions, civic groups and the general public. Communicates official plans, policies and procedures to staff and the general public. Resolves complaints from citizens and keeps Council informed of such complaints as appropriate. Ensures that assigned areas of responsibility are performed within budget; performs cost control activities; monitors revenues and expenditures in assigned areas to ensure sound fiscal control; prepares annual budget requests; ensures effective and efficient use of budgeted funds, personnel, materials, facilities, and time. Determines work procedures, prepares work schedules, and expedites workflow; studies and standardizes procedures to improve efficiency and effectiveness of operations. Leads and City Manager 1 institutionalizes the City's values of quality/continuous improvement. Issues written and oral instructions; assigns duties and examines work for exactness, neatness, and conformance to adopted policies and procedures. Maintains harmony among workers and resolves grievances. Prepares a variety of studies, reports and related information for decision-making purposes. Appoints and removes all department heads, officers, employees of the City, and municipal judges as applicable. This does not include members of the Council. Ensures that laws and ordinances are faithfully performed. Enforces and negotiates contracts the City has with other parties. Prepares and submits a preliminary annual City budget. Administers the adopted budget of the City. Advises the Council of financial conditions and current and future City needs. Attends all meetings of the Council at which attendance may be required by the Council or by state law. Prepares Business Plans for all departments. Works with department heads to set internal goals and measurements for each department. Works with Spokane County Sheriff's Department, Spokane County, and other entities to resolve mutual problems and increase efficiency and effectiveness of the City. Assists Council in preparing external goals and measurements for the City. Supervises the labor negotiation process for the City through subordinates as appropriate. Keeps Council informed of state and national issues that could affect the City. Advocates for City concerns in accordance with Council directives. PERIPHERAL DUTIES: Recommends for adoption by the Council such measures as the City Manager may deem necessary or expedient. Prepares and submits to the Council such reports as may be required by that body or as the City Manager may deem advisable to submit. May serve as the head of one or more departments of City government. City Manager 2 DESIRED MINIMUM QUALIFICATIONS: Education and Experience: (A) The City Manager shall be chosen by the Council solely on the basis of his or her executive and administrative qualifications, with special reference to his or her actual experience in, or his or her knowledge of, accepted practices with respect to the duties of his or her office. Demonstrated ability, experience, education and performance in similar organizations may be considered. (B) Graduation from an accredited four-year college or university with a degree in public administration, political science, business management or a closely related field. Experience may be considered in lieu of education. (C) MPA/MBA desired but not required; working toward an MPA/MBA is considered advantageous. (D) ICMA credential preferred but not required; working toward credential is considered advantageous. Necessary Knowledge, Skills and Abilities: (A) Substantial knowledge of modem policies and practices of municipal public administration; working knowledge of municipal operating and capital budgets, finance, administrative law, human resources, public works, public safety, and community and economic development, including land use, and knowledge of Open Public Meetings Act requirements. Demonstrated ability to learn complex administrative procedures such as those found in municipal government. (B) Skill in preparing, administering and directing the implementation of multi -department budgets, administering municipal programs; skill in operating the listed tools and equipment. (C) Ability to prepare and analyze comprehensive reports; ability to carry out assigned projects to their completion; ability to communicate effectively verbally and in writing; ability to establish and maintain effective working relationships with employees, City officials and the public; ability to efficiently and effectively administer a municipal government. (D) A key value of the City is customer service. This position requires considerable knowledge, ability and skill in the principles and practices of excellent customer service as practiced in both the private and public sectors. It requires the ability to effectively meet and deal with the public; the ability to handle stressful situations; the ability to greet and respond to customers in a friendly, pleasant and professional manner; the ability to establish and maintain effective working relationships with employees, supervisors, and the general public; the ability to maintain a professional, courteous, and pleasant demeanor in difficult and stressful situations; and the ability to diplomatically deal with difficult people. A willingness to expend extra effort to help the public find answers or information relative to their inquiry or complaint is expected. City Manager 3 (E) Ability to positively and professionally represent the City and its core values. SPECIAL REQUIREMENTS: Shall be bondable. Valid Washington Driver's license or ability to obtain one by the start of employment. TOOLS AND EQUIPMENT USED: Requires frequent use of personal computer, including e-mail, electronic scheduling, word processing and spreadsheet programs; calculator, telephone, and copy machine. PHYSICAL AND MENTAL DEMANDS : The physical and mental demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. While performing the duties of this job, the employee will frequently be required to sit and talk or hear. The employee will occasionally be required to walk; use hands to finger, handle, or feel objects, tools, or controls; and reach with hands and arms. The employee must occasionally lift and/or move up to 10 pounds. Specific vision abilities required by this job include close vision and the ability to adjust focus. The employee must frequently use cognitive ability to analyze, synthesize, and communicate complex information and data to various audiences. WORK ENVIRONMENT: The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. The noise level in the work environment is usually moderately quiet. SELECTION GUIDELINES: Formal application, rating of education and experience; oral interview and reference check; job related tests may be required. The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position. City Manager 4 The job description does not constitute an employment agreement between the employer and employee and is subject to change by the employer as the needs of the employer and requirements of the job change. Selected employee shall be required to enter into a separate employment agreement post job offer for an employment relationship to exist. Effective Date: November 8, 2016 Revision History: Established May 13, 2003 Revised: May 4, 2010 Revised: July 18, 2016 City Manager 5 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 8, 2016 Check all that apply: ❑ consent ❑ old business ❑ information ❑ admin. report Department Director Approval: ® new business ❑ public hearing ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Motion consideration — Approval of Employment Agreement between Spokane Valley and Mark Calhoun, City Manager. GOVERNING LEGISLATION: None. PREVIOUS COUNCIL ACTION TAKEN: Motion consideration on October 25, 2016 to appoint Mark Calhoun as City Manager and authorize the Mayor to negotiate the terms of an employment agreement, subject to final approval by the City Council. BACKGROUND: On October 25, 2016, the Council appointed Mark Calhoun as City Manager. That appointment is contingent on successful contract negotiations between the Council and Mr. Calhoun. The Mayor was authorized by that motion to negotiate the terms of an employment agreement with Mr. Calhoun, which would be subject to approval by the entire Council. A copy of the employment agreement negotiated by Mr. Calhoun and the Mayor is attached. OPTIONS: approve the employment agreement as drafted or amended. RECOMMENDED ACTION OR MOTION: I move we approve the employment agreement between the City of Spokane Valley and Mark Calhoun, City Manager, and authorize the Mayor to finalize and execute the same. BUDGET/FINANCIAL IMPACTS: $170,000 per year annual salary, plus benefits, which are calculated into the existing 2016 Budget, as well as being within the range contemplated in the 2017 Budget. STAFF CONTACT: Cary Driskell, City Attorney; John Whitehead, Human Resources Manager. ATTACHMENTS: Draft Employment Agreement between Spokane Valley and Mark Calhoun, City Manager. EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SPOKANE VALLEY AND MARK CALHOUN, CITY MANAGER Introduction and Recital This Employment Agreement ("Agreement"), made and entered into this day of , 2016, by and between the City of Spokane Valley, Washington ("City"), a municipal corporation, and Mark Calhoun ("Employee"), an individual who has the desire, education, training, and experience in local government management to be the City Manager of the City of Spokane Valley, Washington. Both the City and Employee desire to establish terms and conditions which provide a clear understanding as to expectations, compensation, benefits, and other matters pertinent to a mutually productive and positive employment relationship. The City Manager carries out the policy decisions serving at the pleasure of the City Council, and is an at - will employee of the City. The determination of whether to hire, retain, or remove the City Manager rests solely with the City Council. This appointment is for an indefinite period of time but may be terminated by either the City or Employee with or without cause. In consideration of the mutual covenants herein, the parties agree as follows: Section 1: Term This Agreement shall be in full force and effect from , 2016, and remain in effect until terminated by the City or Employee as provided for in this Agreement. Section 2: Duties and Authority The City shall employ Mark Calhoun as City Manager to perform the functions and duties specified in chapter 2.15 of the Spokane Valley Municipal Code ("SVMC"), chapter 35A.13 RCW, and to perform other legally permissible and proper duties and functions. Section 3: Residency Pursuant to SVMC 2.15.070 Residency, the City Manager is not required to be a resident of the City on the date of City Council appointment but shall reside in Spokane County within six months of such appointment unless otherwise waived by the City Council. Section 4: Compensation 1. Base Salary. The City shall pay Employee a base annual salary of $170,000. City shall not, at any time during the term of Employee's tenure in office, reduce the salary, compensation, or other financial benefits to Employee, except to the same degree if such a reduction occurs across-the-board for all employees of the City. Employee's salary shall be paid in installments at the same time that the other management employees of the City are paid and pursuant to the City's regular payroll practices for employees. 2. Social Security Replacement Account. The City has elected to utilize the ICMA 401(a) Money Purchase Plan in lieu of participation in the Social Security Administration Program. City and Employee shall each make a required payment of 6.2% of the Employee's base annual salary into said replacement plan toward Social Security replacement, as well as the required contributions at the federally -determined percentage for Medicare Program participation. 3. Annual Performance Evaluation and Salary Adjustments. The City shall consider an increase to Employee's base salary and/or benefits on an annual basis compatible with Employee's performance and also consistent with the City's range of percentage increases applicable City Manager Employment Agreement — Mark Calhoun Page 1 of 8 to City exempt employees at the time of the annual evaluation. (For example, currently the City provides increases to exempt employees based on their performance in a range of 0% to 4% of their salary. The City agrees that it will consider the same range of percentage increases when determining the amount of Employee's annual increase, if any.) City and Employee shall evaluate the performance of the Employee at least once annually to coincide with Employee's anniversary date of November 1, and prior to development of the annual Preliminary Budget. This review and evaluation shall be pursuant to specific criteria developed jointly by the City and the Employee. An evaluation committee of three Councilmembers shall be chosen each year to evaluate the performance of the Employee. This committee shall be comprised of the Mayor and two additional Councilmembers chosen by the City Council. At a minimum, this process shall include the opportunity for the Employee and the committee to: (1) prepare a written evaluation, (2) meet and discuss the evaluation at least once, and (3) present a written summary of the evaluation results. The final written evaluation should be completed and delivered to the Employee within 30 days of the evaluation meeting. As part of the evaluation process, both parties shall define the goals and performance objectives which they consider important to City and Employee. Approval of the final annual performance evaluation shall be subject to comment by the full City Council in executive session. Employee and City may mutually agree on a different process for conducting the annual performance evaluation after the first year in the event both parties agree a different process would be of more value for accomplishing this task. This Agreement shall be automatically amended to reflect any salary adjustments that are provided or required by the City's compensation policies, which will be reflected on the applicable personnel forms regularly utilized by the City to reflect salary adjustments for employees. Section 5: Health, Disability and Life Insurance Benefits 1. During the term of Employee's employment pursuant to this Agreement, and pursuant to the terms and conditions of the City's insurance benefit plan documents, the City shall provide to Employee, his/her spouse, and his/her dependents, to the extent eligible, health, life, dental, and vision insurance coverage under existing programs and cost allocation methods applicable to all City employees and subject to the applicable plan documents. These programs and plans may change from time to time, and to the extent that any conflict exists between this Agreement and the applicable plan documents, the plan documents will prevail. 2. During the term of Employee's employment pursuant to this Agreement, the City shall execute all necessary agreements provided by ICMA for Employee's participation, at Employee's own expense, in the ICMA Retirement Health Savings Plan, pursuant to the voluntary opt -in regulations of a non-discriminatory plan. 3. During the term of Employee's employment pursuant to this Agreement, the City shall provide Employee with long-term disability coverage, and shall make all required premium payments for such coverage for the Employee, consistent with the terms of the City's long term disability plan. City Manager Employment Agreement — Mark Calhoun Page 2 of 8 Section 6: Vacation, Sick, and Military Leave 1. Employee shall maintain any existing accrued but unused vacation time, administrative leave, and sick leave. 2. Beginning with the effective date of this Agreement, Employee shall accrue 144 hours of vacation annually, with no cap on accrued vacation hours. Vacation shall be credited equally on each pay period and available to Employee as it accrues. 3. Beginning with the effective date of this Agreement, sick leave shall accrue at 96 hours annually up to a maximum cumulative accrual of 720 hours. Sick leave shall be credited equally on each pay period and available to Employee as it accrues. Employee shall be allowed to cash out up to 96 hours per year of sick leave upon reaching 720 accrued hours, and such cash out shall be for 25% of the dollar value for each hour (for example, if 100% value for a sick leave hour is $100, then the cash out value for one hour of sick leave under this provision is $25). 4. Beginning with the effective date of this Agreement, Employee shall accrue a pro -rata amount of administrative leave at an accrual rate of 6.68 hours per month of employment remaining in the year of hire. On January 1 of each year thereafter, Employee shall automatically accrue 80 hours of administrative leave annually as provided to other overtime exempt employees of the City (with the exception of 80 hours instead of 40 hours), which shall immediately be available to Employee for use. In the event the City determines that exempt employees at the City will no longer accrue administrative leave, Employee will also no longer continue to accrue administrative leave. Administrative leave for Employee shall be used in the calendar year in which it accrues, and shall not be carried over to any subsequent calendar year (for example, if Employee has 11 hours of accrued administrative leave on December 31, none of those hours would roll over to the next day January 1, but Employee would then have the benefit of the new bank of 80 hours for the subsequent year). 5. In the event Employee's employment is terminated, either voluntarily or involuntarily, Employee shall be compensated for accrued but unused paid leave as follows: a. 100% of Employee's accrued but unused vacation leave up to a maximum of 360 hours, and 50% of Employees additional accrued but unused vacation leave which exceeds 360 hours upon termination (for example, if Employee has 380 accrued but unused hours of vacation leave upon termination, Employee shall be paid for all of the first 360 hours, and 10 out of 20 hours for the balance of vacation leave); b. 0% of Employee's accrued but unused administrative leave (for example, if Employee has 5 hours of accrued but unused administrative leave upon termination, Employee will be paid for 0 hours of time for that administrative leave); and c. 50% of Employee's accrued but unused sick leave (for example, if Employee has 50 accrued but unused hours of sick leave upon termination, Employee will be paid for 25 hours of time for that sick leave). 6. Notwithstanding Employee's actual accrual of sick leave, Employee shall have access to a bank of 90 days of paid medical leave time (special medical leave) which may be used because of medical conditions that qualify for either short-term and/or long-term disability under the City's short-term and/or long-term disability benefits plans, to the extent such plans exist at the time of the qualifying medical condition. This additional medical leave may only be used to provide coverage during the waiting period between the onset of the qualifying medical condition and the point at which short-term or long-term disability coverage takes effect. In the event Employee uses regular sick leave before determining that the qualifying medical City Manager Employment Agreement — Mark Calhoun Page 3 of 8 condition will result in either short-term and/or long-term disability, City shall credit back Employee's regular sick leave bank for any sick leave later determined to appropriately be chargeable toward the special medical leave bank. This special medical leave bank pursuant to this Section 6.6 is not subject to any payout upon Employee's termination from employment, whether voluntary or involuntary. Section 7: Automobile — Monthly Vehicle Allowance The City shall pay to the Employee, during the term of this Agreement and in addition to other salary and benefits herein provided, $0 per month to be credited at the first of each month as a vehicle allowance to be used to compensate the Employee for use of his or her personal vehicle for City -related purposes. The Employer shall also reimburse the Employee at the IRS standard mileage rate for any business use of the vehicle beyond Spokane County or Kootenai County. Section 8: Retirement 1. The Employee shall participate in Washington Public Employees Retirement System (PERS), and the City and Employee shall make all the appropriate contributions to maintain this plan. 2. The City shall contribute, on Employee's behalf, beginning on the first pay period after the execution of this Agreement, as follows: a. up to 9% of base annual salary into the International City/County Management Association Retirement Corporation (ICMA-RC) 401A Executive Plan, until Employee reaches the ICMA-RC 401A Plan limits as set by the IRS each year. This is in addition to the Social Security replacement account discussed in Section 4.2, above; and b. up to 9% of base annual salary into ICMA-RC 457 Plan, until Employee reaches the ICMA-RC 457 Plan limit as set by the IRS each year. 3. Employee shall immediately be fully vested in these plans/contributions and the City agrees to transfer ownership/holdings to succeeding employers as may be requested by Employee at cessation of employment and as allowed by plan documents. In the event any conflict exists between the plan documents and this Section 8, the plan documents shall govern. Nothing in this Section 8 is intended to nor does it create any additional right or benefit to Employee other than what is set out in this Section 8 and the plan documents. Section 9: General Business Expenses 1. The City shall pay for professional dues and subscriptions of the Employee reasonably necessary for continuation and full participation in national, regional, state, and local associations and organizations necessary and desirable for the Employee's continued professional participation, growth, and advancement, and for the good of the City. 2. The City shall budget and pay for reasonable travel expenses and subsistence expenses of Employee for professional and official travel, meetings, and occasions to adequately continue the professional development of Employee and to pursue necessary official functions for Employer. These include, but are not limited to the ICMA Annual Conference, Association of Washington Cities, and such other national, regional, state, and local governmental groups and committees in which Employee serves as a member. 3. The City acknowledges the value of having Employee participate and be directly involved in local civic clubs or organizations. Accordingly, Employer shall pay for the reasonable membership fees and/or dues to enable the Employee to become an active member in local civic clubs or organizations. City Manager Employment Agreement — Mark Calhoun Page 4 of 8 4. The City shall provide Employee with a lap -top computer if requested, software, fax/modem, cell phone (or allowance for same), and portable wi-fi required for Employee to perform Employee's professional work duties and to maintain appropriate levels of communication. 5. Employee shall provide the City will all required receipts and appropriate documentation consistent with the City's policies as required to justify and support all expenses identified in this Section 9. Section 10: Termination by the City Employee's employment with the City is at -will, and Employee's employment may be terminated for any lawful reason and with or without cause. For the purpose of this Agreement, termination of Employee's employment by the City occurs when: 1. A majority of the governing body votes at a duly -authorized public meeting to request the resignation of the Employee and Employee voluntarily accepts and tenders his/her resignation within 30 days of the vote. The City may place Employee on paid administrative leave while Employee considers resignation pursuant to this Section 10.1. Employee and City agree that this Section 10.1 is the strongly preferred method for termination of this Agreement. 2. A majority of the governing body for the City votes at a duly -authorized public meeting to invoke the statutory provisions in RCW 35A.13.130-140 for removal of Employee. 3. If the City or its citizens act to amend any provisions of the Municipal Code pertaining to the role, powers, duties, authority or responsibilities of the Employee's position that substantially changes the form of government, the Employee shall have the right to declare that such amendments constitute termination of Employee's employment and this Agreement. If the Legislature acts to amend any provisions of Title 35A RCW pertaining to the role, powers, duties, authority, responsibilities of the Employee's position that substantially changes the form of government, the Employee shall have the right to declare that such amendments constitute termination of Employee's employment and this Agreement. 4. Breach of contract is declared by either party with a 30 -day cure period for either Employee or the City. Written notice of a breach of contract shall be provided to the City and to Employee pursuant to Section 20. Section 11: Severance Severance shall be paid to the Employee when employment is terminated pursuant to Section 10, under the following conditions: 1. If the Employee is terminated pursuant to Section 10, the City shall provide a severance payment equal to six months' base salary at the current rate of pay. This severance shall be paid in a lump sum unless otherwise agreed to by the City and the Employee. The Employee shall also be compensated for accrued unused leave pursuant to Section 6. For a period of six months following termination, the City shall also pay COBRA coverage for Employee and any dependents as provided in Section 5. 2. If Employee's termination occurs pursuant to Section 10.1, in addition to severance pursuant to Section 11.1, the City shall also pay Employee an additional three months of base salary at the current rate of pay and three additional months of COBRA coverage for Employee and any dependents as provided in Section 5, from the date of the adoption of the motion requesting resignation. 3. Employee understands and agrees that the City is not obligated to pay Employee any severance under this Section 11 if Employee's employment is terminated under Section 10 because of any conviction of or plea or nolo contendere or the equivalent in respect to any felony offense or crime involving dishonesty or City Manager Employment Agreement — Mark Calhoun Page 5 of 8 moral turpitude by Employee. Employee also understands and agrees that the City is not obligated to pay Employee any severance under this Section 11 if Employee's employment is terminated under Section 10 because Employee is arrested due to a charge of any felony offense or a crime involving dishonesty or moral turpitude. Section 12: Resignation In the event that the Employee voluntarily resigns his/her position with the City, but not at the request of the City, the Employee shall provide a minimum of 30 days' notice unless the parties agree otherwise. A resignation by the Employee shall not result in the severance provisions of Section 11, except for a resignation requested by the City pursuant to Section 10.1. Section 13: Hours of Work It is recognized that the Employee must devote a great deal of time outside the normal office hours on business for the City. Employee shall be allowed to establish a work schedule that allows him/her to balance their personal life while ensuring the operation of the City is properly managed and Employee is meeting obligations outlined in the SVMC for Employee's position. To properly manage the City, Employee must efficiently and effectively oversee the operation of all City functions, but it is left to the Employee's discretion to determine what hours are necessary to accomplish those obligations. Employee shall communicate his/her work schedule to the City Council in a mutually agreed manner. Section 14: Outside Activities The employment provided for by this Agreement shall be the Employee's primary employment. Recognizing that certain outside teaching or other business opportunities may occur which the Employee wishes to participate in, such activities may be permitted as long as Employee obtains approval from the City to engage in such activities. Such activities, if any, shall not constitute interference of any degree nor a conflict of interest with his or her responsibilities under this Agreement, nor shall such activities create the appearance or perception of a conflict of interest with City policy or his or her responsibilities under this Agreement. Section 15: Moving and Relocation Expenses Not applicable to this Agreement. Section 16: Home Sale and Purchase Expenses Not applicable to this Agreement. Section 17: Indemnification Except as set out below, the City shall defend, hold harmless, and indemnify Employee against any tort, professional liability claim or demand, or other legal action, arising out of an alleged act or omission occurring in the performance of Employee's duties as City Manager or resulting from the exercise of judgment or discretion in connection with the performance of program duties or responsibilities, except for (1) any dishonest, fraudulent, criminal or malicious act or course of conduct by Employee, (2) any act or course of conduct by Employee which is not performed on behalf of the City, (3) any act or course of conduct which is outside the scope of Employee's service or employment with the City, (4) any lawsuit brought against the Employee on behalf of the City, and (5) an act or conduct that is willful or wanton (the "Excluded Conduct"). The Employee may request and the City shall not unreasonably refuse to provide independent legal representation at the City's expense, and the City may not unreasonably withhold approval. Legal representation, provided by the City for Employee, shall extend until final determination of the legal action, including any appeals brought by either party. Employee shall cooperate fully with the City Attorney or an attorney designated by the City, and upon request, assist in the defense or settlement of any suit and in enforcing any claim for any right of subrogation against any persons or organizations that City Manager Employment Agreement — Mark Calhoun Page 6 of 8 may be liable to the City. Employee shall not settle any claim without the prior written approval of the City in order for the indemnification provisions to be applied, as provided in this Section. The indemnification provisions of this Agreement do not constitute a policy of insurance, and nothing contained in this Agreement shall be construed to modify or amend any provision of any policy of insurance where Employee is an insured under that policy. This Section 17 shall have no force or effect with respect to any accident, occurrence or circumstance for which the City or the Employee is insured against loss or damages, provided that the City shall, under the provisions of this Section 17, provide protection, subject to the terms and limitations in this Section, above any loss limit of such insurance policy. Employee understands and agrees that this Section 17 is intended to be secondary to any contract or policy of insurance owned or applicable to Employee. In the event of any conflict between this Section 17 and the provisions of any such policy of insurance, the policy provisions shall be controlling. Section 18: Bonding The City shall bear the full cost of any fidelity or other bonds required of the Employee under any RCW or the SVMC. Section 19: Other Terms and Conditions of Employment The City, only upon agreement with Employee, may fix any such other terms and conditions of employment, as it may determine from time -to -time, relating to the performance of the Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the SVMC, or any other applicable law. Section 20: Notices Notice pursuant to this Agreement shall be given by depositing in the custody of the United States Postal Service, postage prepaid, addressed as follows: (1) CITY: City of Spokane Valley, Attn. Mayor 11707 East Sprague Avenue, Suite 106, Spokane Valley, WA 99206. (After September 1, 2017, 10210 East Sprague, Spokane Valley, WA 99206); and to: City of Spokane Valley, Attn. City Attorney 11707 East Sprague Avenue, Suite 103, Spokane Valley, WA 99206. (After September 1, 2017, 10210 East Sprague, Spokane Valley, WA 99206); (2) EMPLOYEE: Mark Calhoun 11707 East Sprague Avenue, Suite 106, Spokane Valley, WA 99206. (After September 1, 2017, 10210 East Sprague, Spokane Valley, WA 99206) Alternatively, notice required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as the date of deposit of such written notice in the course of transmission in the United States Postal Service. Section 21: Disclosure Example: If Employee or spouse owns a business or property in the City. City Manager Employment Agreement — Mark Calhoun Page 7 of 8 Section 22: General Provisions 1. Integration. This Agreement sets forth and establishes the entire understanding between the City and the Employee relating to the Employee's employment as the City Manager. Any prior discussions or representations by or between the parties are merged into and rendered null and void by this Agreement. The parties, by mutual written agreement, may amend any provision of this Agreement during the life of the Agreement. Such amendments shall be incorporated and made a part of this Agreement. 2. Binding Effect. This Agreement shall be binding on the City and the Employee as well as their heirs, assigns, executors, personal representatives, and successors in interest. 3. Effective Date. This Agreement shall become effective on November 9, 2016. 4. Severability. The invalidity or partial invalidity of any provision of this Agreement shall not affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the remaining provisions shall be deemed to be in full force and effect as if they have been executed by both parties subsequent to the expungement or judicial modification of the invalid provision. Mark Calhoun L.R. Higgins, Mayor ATTEST: Christine Bainbridge, City Clerk City Manager Employment Agreement — Mark Calhoun Page 8 of 8 DRAFT ADVANCE AGENDA as of November 3, 2016; 8:30 a.m. Please note this is a work in progress; items are tentative To: Council & Staff From: City Clerk, by direction of City Manager Re: Draft Schedule for Upcoming Council Meetings Nov 15, 2016, Study Session Format, 6:00 p.m. Proclamation: World Pancreatic Cancer Day ACTION ITEMS: 1. Second Reading Proposed Ordinance 16-018 Transportation & Infrastructure Utility Tax NON -ACTION ITEMS: 2. Marketing Study Update — John Hohman, Atlas Advertising 3. Parks Maintenance Contract — Mike Stone 4. CenterPlace Catering — Mike Stone 5. Lodging Tax Advisory Committee Recommendations to Council — Chelsie Taylor 6. Barker Overpass Design — Eric Guth, Steve Worley 7. 2017 FASTLANE Grant Opportunity - Eric Guth 8. Advance Agenda — Mayor Higgins [due Tue, Nov 81 (20 minutes) (60 minutes) (15 minutes) (10 minutes) (20 minutes) (15 minutes) (15 minutes) (5 minutes) [*estimated meeting: 160 minutes] Nov 17, 2016, Special Meeting, 8:30 a.m. — 11:30 a.m.. Council Chambers Joint Mtg with Water Districts Tentative Topics include: (1) In -stream flow rules from Ecology (2) Recent Supreme Court decision in the Whatcom County v. Hirst case (3) Support legislation clarifying Valley water provider's water rights: Support Senator Padden's efforts to adopt legislation that clarifies that the water rights held by water providers serving the Spokane Valley region can be changed from irrigation to municipal water supply purposes without going through the change of use permitting process that is currently required (4) City of Spokane Valley utility tax proposal (5) City of Spokane Valley proposal regarding abandoned utility infrastructure located in City rights-of-way. Nov 22, 2016, Special Meeting, 3:30 -5 p.m., 2nd Floor Conf Room, City Hall Council meets with Lobbyists and 4th District Legislators Nov 22, 2016, Formal Meeting Format, 6:00 p.m. Proclamation: In Support of Small Business Saturday 1. Consent Agenda (claims, payroll, minutes) 2. Second Reading Proposed Ordinance 16-019 Comp Plan — Mike Basinger 3. Motion Consideration: Parks Maintenance Contract — Mike Stone 4. Motion Consideration: CenterPlace Catering Contract — Mike Stone 5. Motion Consideration: 2017 FASTLANE Grant Opportunity — Eric Guth [due Tue, Nov 15] (5 minutes) (20 minutes) (10 minutes) (10 minutes) (10 minutes) 6. Admin Report: State Supreme Court Decision: Whatcom Co. vs. Hirst — J. Hohman, Tadas Kisielius(30 mins) 7. Admin Report: Advance Agenda — Mayor Higgins (5 minutes) 8. Info Only: (a) Dept Reports; (b) St. Maint Contract Renewal; (c) Street Sweeping Contract Renewal [*estimated meeting: 90 minutes] Nov 29, 2016 — No Meeting — Thanksgiving Holiday Draft Advance Agenda 11/3/2016 3:01:18 PM Page 1 of 2 Dec 6, 2016, Study Session Format, 6:00 p.m. 1. District Court Presentation — Mark Calhoun, Judge Walker, Court Admin. John Witter 2. Property Crimes, Wa. Assoc. of Sheriffs & Police Chiefs (WASPC) — Mike Werner 3. Myrtle Point Cleanup — Cary Driskell 4. Street Maintenance Contract Renewal — Eric Guth 5. Street Sweeping Contract Renewal — Eric Guth 6. City Hall Update — Eric Guth 7. Advance Agenda — Mayor Higgins [due Tue, Nov 29] (30 minutes) (15 minutes) (20 minutes) (10 minutes (10 minutes (10 minutes) (5 minutes) [*estimated meeting: 100 minutes] Dec 13, 2016, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Motion Consideration: Funding Allocation, Lodging Tax — Chelsie Taylor 3. Motion Consideration: Street Maintenance Contract Renewal — Eric Guth 4. Motion Consideration: Street Sweeping Contract Renewal — Eric Guth 5. Admin Report: Advance Agenda — Mayor Higgins Dec 20, 2016, Study Session Format, 6:00 p.m. 1. Advance Agenda 2. Info Only: Department Reports (normally due for Dec 27 mtg) Dec 27, 2016 — No Meeting — Christmas Holiday [due Tue, Dec 6] (5 minutes) (25 minutes) (10 minutes) (10 minutes) (5 minutes) [*estimated meeting: 55 minutes] [due Tue, Dec 13] (5 minutes) [*estimated meeting: minutes] January 3, 2017, Study Session Format, 6:00 p.m. [due Tue, Dec 27] 1. Mayoral Appointment: Two Planning Commissioners (3 -yr. terms) (5 minutes) 2. Mayoral Appointment: Two Members for Lodging Tax Advisory Committee (1 or 2 yr. terms) (5 minutes) 3. Mayoral Appointment: Councilmembers to Various Board and Committees for 2017 (10 minutes) 4. Advance Agenda — Mayor Higgins (5 minutes) January 10, 2017, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Higgins [due Tue, Jan 3] (5 minutes) (5 minutes) January 17, 2017, Study Session Format, 6:00 p.m. [due Tue, Jan 10] 1. Advance Agenda January 24, 2017, Formal Meeting Format, 6:00 p.m. 1. Consent Agenda (claims, payroll, minutes) 2. Admin Report: Advance Agenda — Mayor Higgins 3. Info Only: Department Reports *time for public or Council comments not included OTHER PENDING AND/OR UPCOMING ISSUES/MEETINGS: 8th & McDonald follow-up (April, 2017) AWC Citizen Action Days (Feb 15-16, 2017) Consultant Agreement Design Barker Rd/BNSF Separation Project Oath of Office SCRAPS Update Second Amendment Sanctuary City Term Limits Undergrounding Utility Facilities in ROW [due Tue, Jan 17] (5 minutes) (5 minutes) Draft Advance Agenda 11/3/2016 3:01:18 PM Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 8, 2016 Check all that apply: ❑ consent ❑ old business ® information ❑ admin. report AGENDA ITEM TITLE: TIGER VIII and 2016 Department Of Transportation (USDOT) GOVERNING LEGISLATION: Department Director Approval: ❑ new business ❑ public hearing ❑ pending legislation ❑ executive session FASTLANE Grant Debrief with U.S. PREVIOUS COUNCIL ACTION TAKEN: Adoption of 2016-2021 Six -Year Transportation Improvement Plan (TIP), Resolution No. 15-005, on June 23, 2015; Consensus to move ahead with this grant opportunity and with consultant assistance at the March 15, 2016 Council Workshop; Consensus at the March 29, 2016 meeting to apply for, with consultant assistance, TIGER VIII and FASTLANE grants on the Barker Rd/BNSF Grade Separation and the Barker Road and Pines Road BNSF Grade Separation projects. BACKGROUND: TIGER VIII On April 29, 2016, the City submitted a TIGER VIII grant application for the Barker Rd/BNSF Grade Separation project. The City contracted with DKS Associates to assist with the preparation of the grant application and provide the required benefit/cost analysis for the project. On July 29, 2016 the grant awards were announced by USDOT on the Transportation.pov website. Unfortunately, the City's project was not selected. Staff contacted USDOT and scheduled a debriefing for October 20, 2016. Following are notes from the debriefing. Attendees: • USDOT: Robert Mariner (Deputy Director, Office of Infrastructure Finance and Innovation, P-40) • City of Spokane Valley: Eric Guth, Steve Worley and Ray Wright • DKS Associates: Renee Hurtado, Richard Hutchinson Demand for the 2016 TIGER grant program continued to far exceed available funds; the DOT received 585 eligible applications from all 50 States, and several U.S. territories, tribal communities, cities, and towns throughout the United States, collectively requesting over $9.3 billion in funding. The application review process consisted of three levels: Tier 1 review, Tier 2 review, and USDOT Secretary final review and selection. The initial Tier 1 analysis included 12 USDOT evaluation teams that were comprised of three to four people who rated the grant applications into one of four categories: • Highly Recommended • Recommended • Acceptable • Not Recommended Of the 585 eligible applications, only 230 (including the City's) moved on to the Tier 2 review. The Tier 2 review teams evaluated all 230 applications that made it to the `Highly Recommended' category. The review teams at this level consisted of senior staff from the Federal Highways (FHWA), the Federal Railroad Administration (FRA), Federal Transit Authority (FTA), Federal Aviation Administration (FAA) and the US Maritime Administration (MARAD). The review teams considered the economic benefit/cost analysis and other grant criteria. At the end of the Tier 2 level, 80 applications (including the City's) moved on to the US Transportation Secretary's desk (Secretary Foxx) for consideration. These applications were evaluated by the Secretary and his staff. Only 40 grant applications were selected for funding. Unfortunately, Spokane Valley's project was not selected. Of the 40 grant recipients, nearly two-thirds were repeat applications. Mr. Mariner stated that our project application was very good. It was not selected only because there were limited funds available. Mr. Mariner gave no specific suggestions that could have strengthened the City's application. Staff asked a number of questions throughout the conference call: 1) Is there scoring associated with these applications and could the City have access to the scores and scoring criteria? "No, there are no scores. At the end of the day, there are applications selected for funding and those that are not." 2) Would it have made a difference if the City had combined this project with another similar project? "Not necessarily. It does often help to have an application that includes discrete segments because USDOT often will fund one segment of an application and not necessarily the whole thing." 3) Are there other federal funding opportunities for this type of project that the City might pursue? "No, there are no other major funding opportunities for surface transportation other than TIGER or FASTLANE for this type of project." 4) Based on the rating of the application, does it still stand a chance for future TIGER funding? "Yes, if the TIGER grant continues/" Mr. Mariner encouraged the City to continue to submit their application. "Keep in mind there will be an administration change after the upcoming election so the program may be eliminated or the selection criteria may change." 5) Would the City's application have been more competitive with a larger match? "Cost share is something that is always looked at. It's not necessarily a negative thing if the local agency match only meets the minimum requirements." 6) Was there a favorite type of project or selection criteria for this particular round of TIGER VIII? "The projects selected covered a wide range of project types and various selection criteria. Some of the rail and port projects had a harder time competing under the Ladders of Opportunity criteria." 21Page Mr. Mariner also provided these general comments: "The City should consider contacting their federal legislative representatives next year after the elections to introduce the project to any new political leadership. This is especially helpful if local and state representatives make these phone calls. Phone calls don't guarantee selection but phone calls raise project awareness." "Moving this project ahead by completing preconstruction phases for design and right-of-way will make it more attractive in future rounds. USDOT wants to minimize its risk by awarding projects to agencies that can complete the work applied for. Completing preconstruction activities before a funding obligation generally score better when evaluated by the project readiness team." FASTLANE On February 26, 2016, USDOT announced a call for projects for the first round of the new FASTLANE grant program. The FASTLANE program was established in the Fixing America's Surface Transportation (FAST) Act to fund critical freight and highway projects across the country. The FAST Act authorized the program at $4.5 billion for fiscal years 2016 through 2020, including $800 million for FY 2016 to be awarded by the US Secretary of Transportation. On April 14, 2016, the City submitted a FASTLANE grant application for its Barker Road and Pines Road BNSF Grade Separation project. On September 7, 2016 the grant awards were announced by USDOT on the Transportation.qov website. Unfortunately, the City's project was not selected. Staff contacted USDOT and scheduled a debriefing for October 31, 2016. Following are notes from the debrief conference call: Attendees: • USDOT: Robert Mariner • City of Spokane Valley: Eric Guth, Steve Worley and Ray Wright • DKS Associates: Richard Hutchinson In this first call for FASTLANE grants, USDOT received 212 applications requesting a total of nearly $9.8 billion. This is over 13 times more funding than was available through FASTLANE — underscoring the continuing need for infrastructure investment across the country. Of the 212 applications received, 136 represented projects in urban areas, while the remaining 76 supported rural projects. Out of the 212 applications, 94 were large projects (with a total project cost over $100M) and 118 small projects ($5M -$100M total project cost). The initial Tier 1 analysis rated the grant applications into one of three categories: • Recommended • Acceptable • Not recommended The City's application was among 147 projects rated as Recommended and advanced to the Tier 2 evaluation level. At the Tier 2 level, the benefit/cost analysis and project readiness criteria were evaluated in detail. At the end of the Tier 2 evaluation, the City's application was among 123 project applications making it to the US Transportation Secretary's desk for review and selection. 31Page The Transportation Secretary and his staff selected final projects for funding. There were a total of eighteen projects selected for funding; twelve were large projects and six were small projects. Unfortunately, the City's project was not selected. Mr. Robert Mariner said that the City's project application was excellent; the project Benefits exceeded Costs, which is good and the risk rating was low (good) related to being able to move the project to completion. Mr. Mariner addressed most of the City's questions ten days earlier during the TIGER VIII debriefing. The one other question the City team wanted an answer to was whether or not combining the two projects into one application was a deterrent. Mr. Mariner responded by saying "not necessarily. But if the City chose to submit this project again for the second FASTLANE grant program, the application should identify phases such that if the whole project could not be funded, one phase of it could and the project could be completed in steps." Mr. Mariner said that the City's application made it all the way to the US Transportation Secretary's desk, that the projects the City submitted were great candidates, but unfortunately, because funding was insufficient, most projects submitted were not selected for funding. He encouraged the City to continue to try and that the City should consider resubmitting for the upcoming FASTLANE II call for projects. OPTIONS: None RECOMMENDED ACTION OR MOTION: None BUDGET/FINANCIAL IMPACTS: None STAFF CONTACT: Eric Guth, PE — Public Works Director Steve Worley, PE — Capital Programs ATTACHMENTS: 41Page CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 8, 2016 Department Director Approval: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ® information ❑ admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: USDOT FASTLANE II Call for Projects GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: Adoption of the 2017-2022 Six -Year Transportation Improvement Plan (TIP), Resolution No. 16-009, June 28, 2016. BACKGROUND: On October 28, 2016, USDOT announced it is conducting a call for projects for FASTLANE II grants. This is the second year of the FASTLANE grant program which was established in the Fixing America's Surface Transportation (FAST) Act to fund critical freight and highway projects across the country. The FAST Act authorized the program at $4.5 billion for fiscal years 2016 through 2020, including $850 million for FY 2017 to be awarded by the Secretary of Transportation. The City applied for the 2016 FASTLANE grants earlier this year seeking funds to design, purchase right-of-way, and build both the Barker Road and Pines Road (SR27) BNSF Grade Separation projects. The City's application made it to the final round; but the City's project was not selected. City staff, on October 31, 2016, conducted a conference call with USDOT to debrief the City's 2016 FASTLANE application to determine how the application ranked and how best to make future applications stronger. After the debrief with the USDOT and knowing that there is a new call for projects for the FASTLANE II, staff strategized on how best to apply for FASTLANE grants this round. From that discussion, staff's conclusion was that it appeared that the City, by combining both the Barker Road and Pine Road grade separation projects, may have been too ambitious and that we may have been successful had applications for each of the projects been submitted separately. This round, staff recommends that grant applications be submitted again for the Barker Road and Pines Road Grade Separation projects. Because of what was discussed with the USDOT during the debrief, staff may recommend that applications be submitted separately for each project or if the City Council elects to submit the grant applications for these projects together, that there be a phasing scheme whereby USDOT can select a phase to fund in lieu of the entire project. FASTLANE grants provide 60% of all funding to design, purchase right-of-way, and build a project. If successful, FASTLANE II grant funds are expected to be obligated by September 30, 2020 and construction must begin by March 30, 2022. Per statute, at the very latest FASTLANE grant funds must be obligated by September 30, 2020 and construction must begin by March 30, 2022. However, a project schedule that shows obligations and construction close to those deadlines will have more risk in meeting the statutory requirements. In other words, the Department will evaluate the readiness of projects, and a project with obligation and construction schedules before the September 30, 2020, deadline presents less risk. The deadline for submitting applications is 8:OOPM EST on December 15, 2016. OPTIONS: Information RECOMMENDED ACTION OR MOTION: Information BUDGET/FINANCIAL IMPACTS: STAFF CONTACT: Eric Guth, PE — Public Works Director Steve Worley, PE — Capital Programs ATTACHMENTS: