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Ordinance 18-024 Adopts 2019 budget CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO. 18-024 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING A BUDGET FOR THE PERIOD JANUARY 1, 2019 THROUGH DECEMBER 31, 2019; 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 1,2019 and ending December 31,2019; 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 11, October 9, and November 13,2018. 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 25,2018; and WHEREAS, the City Council desires to adopt the 2019 budget, including all allowances, and an appropriation for each fund; and WHEREAS, the City of Spokane Valley property tax levy in 2018 for collection in 2019, will be $11,804,402,which represents a 0%increase in the 2019 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 2019 Budget. The budget for the City of Spokane Valley for the year 2019 is adopted at the fund level. The final budget for 2019 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 18-024 Adopting 2019 Budget Page 1 of 3 Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund 001 30,560,665 45,537,322 76,097,987 43,033,369 33,064,618 Street Fund 101 636,748 4,918,044 5,554,792 4,918,044 636,748 Paths&Trails Fund 103 5,024 9,200 14,224 0 14,224 Hotel/Motel Tax-Tourism Facilities Fund 104 1,857,095 397,000 2,254,095 0 2,254,095 Hotel/Motel Tax Fund 105 200,867 602,000 802,867 655,000 147,867 Solid Waste 106 190,682 1,726,300 1,916,982 1,726,300 190,682 PEG Fund 107 62,637 76,000 138,637 71,100 67,537 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,500,000 0 5,500,000 0 5,500,000 Winter Weather Reserve Fund 122 501,217 5,000 506,217 500,000 6,217 LTGO Bond Debt Service Fund 204 0 998,350 998,350 998,350 0 REET 1 Capital Projects Fund 301 1,778,693 1,022,000 2,800,693 1,370,947 1,429,746 REET 2 Capital Projects Fund 302 2,649,661 1,025,000 3,674,661 984,209 2,690,452 Street Capital Projects 303 66,692 5,432,987 5,499,679 5,432,987 66,692 Park Capital Projects Fund 309 43,502 1,907,096 1,950,598 1,812,095 138,503 Civic Facilities Capital Projects Fund 310 849,588 9,000 858,588 0 858,588 Pavement Preservation Fund 311 3,875,163 5,760,900 9,636,063 7,288,200 2,347,863 Capital Reserve Fund 312 6,990,056 50,000 7,040,056 1,239,332 5,800,724 City Hall Construction Fund 313 26,116 0 26,116 0 26,116 Railroad Grade Separation Projects Fund 314 901,612 3,800,000 4,701,612 4,700,000 1,612 56,996,018 73,276,199 130,272,217 74,729,933 55,542,284 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital StormwaterManagementFund 402 1,616,607 2,016,000 3,632,607 2,297,332 1,335,275 Aquifer Protection Area Fund 403 1,670,248 787,200 2,457,448 832,600 1,624,848 Equipment Rental&Replacement Fund 501 1,258,812 188,029 1,446,841 20,000 1,426,841 Risk Management Fund 502 244,261 390,000 634,261 390,000 244,261 4,789,928 3,381,229 8,171,157 3,539,932 4,631,225 Total of all Funds 61,785,946 76,657,428 138,443,374 78,269,865 60,173,509 The total balance of all funds appropriated for 2019 is $78,269,865. 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 18-024 Adopting 2019 Budget Page 2 of 3 PASSED by the City Council this 13th day of November,2018. L.R.Higgins, i ayo ATTES .' 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Sprague Avenue , y Spokane Valley,WA 99206 :: i www.SpokaneValley.org I 0000000000000000000000000000000000000000000000 O 0 O 0 O 0 O 0 O 0 O O 0 0 O 0 O o O 0 O 0 0o City of Spokane Valley, Washington o O 0 O 0 O o o Annual Budget o0 0 0 0 0 0 0 o For the Fiscal Year o 0o January 1 through December 31, 2019 0 o o 0 0 O 0 O 0 0 0 O 0 O 0 City Hall O O 10210 East Sprague Avenue 0 O Spokane Valley, WA 99206 O O Website: www.spokanevalley.org 0 0 Phone: (509) 720-5000 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 0 "A community of opportunity where individuals and families can grow and play, and businesses 0 0 0 will flourish and prosper." 0 O 0 O 0 O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 O 0 0 0 0000000000000000000000000000000000000000000000 This page left intentionally blank. Table of Contents City of Spokane Valley, WA Spokane County January 1, 2019 through December 31, 2019 Summary of Councilmembers III City Manager's Budget Message 1 Finance Director's Message-About the 2019 Budget and Budget Development Process 11 Budget Summary 27-39 Revenues by Fund and Type 40-47 Expenditures by Fund and Department 48-51 General Fund Department Changes from 2018 to 2019 52-54 #001-General Fund-Expenditures by Department by Type City Council 55 City Manager 56 City Attorney 57 Public Safety 58-60 Deputy City Manager 61 Finance 62 Human Resources 63 Public Works(history) 64 City Hall Operations and Maintenance 65 Community&Public Works 66-67 Community&Economic Development(history) 70-71 Parks &Recreation 72-76 General Government 77-78 Special Revenue Funds #101 - Street Fund 79-80 #103 -Paths&Trails Fund 81 #104-Hotel/Motel Tax—Tourism Facilities Fund 82 #105 -Hotel/Motel Tax Fund 82 #106 - Solid Waste Fund 83 #107 -PEG Fund 84 #120 -CenterPlace Operating Reserve Fund 84 #121 - Service Level Stabilization Reserve Fund 85 #122 -Winter Weather Reserve Fund 85 1 City of Spokane Valley 2019 Budget Debt Service Funds #204-Limited Tax General Obligation(LTGO)Fund 86 Capital Projects Funds #301 -REET 1 Capital Projects Fund 87 #302 -REET 2 Capital Projects Fund 88 #303 - Street Capital Projects Fund 89-90 #309-Parks Capital Projects Fund 91 #310-Civic Facilities Capital Projects Fund 92 #311 -Pavement Preservation Fund 93 #312-Capital Reserve Fund 94 #313 -City Hall Construction Fund 95 #314—Railroad Grade Separation Projects Fund 96 Enterprise Funds #402- Stormwater Management Fund 97-98 #403 -Aquifer Protection Area Fund 99 Internal Service Funds #501 -Equipment Rental &Replacement Fund 100-101 #502-Risk Management Fund 101 Total of Capital Expenditures for 2019 102 FTE Count by Year—2009 through 2019 103 Work Force Comparison 104 Appendix A, Employee Position Classification and Salary Schedule 105 Glossary of Budget Terms 106-108 Ordinance 18-024 Adopting the 2019 Budget 109 0000000000000000000000000000000000000000000000000000000000000 O 0 O 0 O 0 O 0 O 0 o o o SpTooan o o O o Va - o o0 - o o 00 O 71, 111p f 0 , , . ,4 411.4.4,,,,,,, , o o 11i, yiv o o 0 0 o _ __ o O 0 O From left Sam Wood,Ben Wick,Arne Woodard, O o Brandi Peetz,Rod Higgins,Linda Thompson,Pam Haley 0 O 0 o City Council Members 00 O 0 O 0 o Rod Higgins, Mayor o o Position#1 0 o Pam Haley, Deputy Mayor o o Position#5 0 O 0 O 0 o Brandi Peetz Arne Woodard G Position#2 Position#3 O O o G O 0 Ben Wick Sam Wood o O 0 O Position#4 Position#6 0 O O O 0 o Linda Thompson o O Position#7 0 o Staff o O 0 oo Mark Calhoun, City Manager O 0 o John Hohman, Deputy City Manager o O 0 o Chelsie Taylor, Finance Director o 0 O 0 o Mike Stone, Parks & Recreation Director o 0 O 0 oo Cary Driskell, City Attorney O 0 o William Helbig, City Engineer o 0 0 o Christine Bainbridge, City Clerk o 0 O 0 O 0 o O O 0 O 0 O 0 000000000000000000000000000•e0®♦00000000000000000000000000000 000000000000000000000000040000000000000000000000000400,0000000 O 0 O 0 O o O 0 0 0 O o O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 �► 11 1; f_>>(c;1�� _ i �1 1 ;� 1L 1 r,-_-, _) 1 i Spokan ems'' .0fValley= City Manager's Budget Message 2019 Annual Budget Dear Citizens, Mayor and City Council of Spokane Valley: It is with pleasure that I present the attached 2019 Budget for the City of Spokane Valley. The City remains financially strong and continues to benefit from a history of prudent financial decisions that have been made since our 2003 incorporation. Consistently responsible budgeting and restrained spending have again helped us achieve the key Fiscal Policies noted in the following pages. The City of Spokane Valley continues to be an excellent example of how a City provides key services to the community while holding down taxes, fees and other charges. Additionally, our per capita employee count and personnel expenses are among the lowest (if not the lowest) of comparable size cities in the state and around the U.S. We recognize that to ensure continued financial stability, it is imperative that we achieve two key goals within our General Fund: 1. Recurring annual revenues must be greater than or equal to recurring annual expenditures, and 2. The ending General Fund fund balance must be sufficient enough to meet cash flow needs which is no less than 50% of recurring expenditures and represents roughly six months of General Fund operations. I am pleased to report that each of these goals have again been achieved in the 2019 General Fund Budget. Beyond recurring operating activity, and due to our exceptionally strong financial position, we have been afforded the opportunity to use the portion of the General Fund fund balance that exceeds 50% for capital construction expenditures that are important to the City Council and Community. Since 2013, City Councils have made the decision to transfer$20.7 million of excess General Fund reserves to partially finance a variety of projects including each phase of the Appleway Trail, Sullivan Road West Bridge Replacement, Appleway Avenue Landscaping, construction of a new City Hall, the future Barker/BNSF Grade Separation Project, and beginning to set money aside for the Pines/BNSF Grade Separation Project, Barker Corridor Project and development of Balfour Park. Fiscal Policies Fiscal Health is at the Core of Providing a Good Public Service The Fiscal Policies adopted by the City Council are important for the long-range fiscal strength of Spokane Valley. These policies set a framework that the City will follow to responsibly manage resources and if necessary, under what circumstances we will utilize reserves to sustain operations during economic downturns. Financial Management The City will strive to: 1. Maintain basic service levels with minimal resources to achieve success. 2. Minimize personnel costs and overhead by continuing to contract for services when it makes financial sense to do so. 3. Continue the six-year Business Plan process. 4. Leverage City funds with grant opportunities. 5. Minimize City debt with a pay as you go philosophy. o The State of Washington sets the maximum level of allowable debt for cities based on assessed value of property. The City of Spokane Valley carries an exceptionally low debt burden and currently utilizes only 1.98% of its total debt capacity, and more importantly, only 9.88% of non-voted bond capacity. 6. Strive to prioritize spending in the annual budget process and minimize the mid-year addition of projects and appropriations. Financial Objectives The City's financial objectives are: 1. Adopt a General Fund Budget with recurring revenues equal to, or greater than recurring expenditures. 2. Maintain a minimum General Fund Ending Fund Balance of at least 50% of the recurring expenditure budget. This is adequate to meet cash flow needs and is the equivalent of six months of general fund operations. 3. If necessary, utilize a portion of the Service Level Stabilization Reserve Fund ($5.5 million) to maintain ending fund balance minimum. 4. Commitment to the strategy that the Service Level Stabilization Reserve Fund will not be reduced below $3.3 million (60% of$5.5 million). 5. Maintain the 2019 property tax assessment the same as 2018 with the exception of new construction. As in the previous nine 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 $11,804,400 plus estimated new construction of $250,000 for a total levy of$12,054,400. The allowable potential increase will be banked for future use as provided by law. This represents the tenth consecutive year that we have not increased our City property tax assessment. 6. Grow our economy so the existing tax base can support basic programs. Commitment—By committing to these policies and the checks and balances they afford, the City will ensure financial sustainability well into the future. 2 2019 Budget Highlights City Priorities The City's chief budget priorities are public safety, pavement preservation, transportation and infrastructure (including railroad grade separations and park related projects) and economic development. Ensuring that we've committed adequate resources to these activities accounts for much of the effort that Council and Staff collectively dedicate to the annual development of our Business Plan and Operating and Capital budgets. Moderate Growth in Recurring General Fund Expenditures Investing in essential core services identified by the Council and Community establishes the baseline expenditures we have included in this budget. Similar to the trend experienced in most jurisdictions, we find that the cost of providing these services often increases at a faster rate than the moderate growth we see in the underlying tax revenues that support these core services. With that said however, City staff and Council collectively strive to meet the challenge of continuing to provide historic levels of service and we will again meet this challenge in 2019 where we anticipate recurring revenues will increase over those of 2018 by 5.79%, while expenditures increase by just 1.93%. Increases at the point of budget adoption over the past 5-years have been: Recurring Revenues Expenditures 2019 compared to 2018 5.79%, _ 1.93% 2018 compared to 2017 3.73%9 _� 1.81% 2017 compared to 2016 4.38% J 0.87% 2016 compared to 2015 3.08%1 ] 2.79% 2015 compared to 2014 2.72%1 ] 3.90% 2014 compared to 2013 4.39%1 4.28% Public Safety Costs Over the years Council has consistently committed to the maintenance and at times enhancement of public safety service levels and this is again reflected in the 2019 Budget where public safety costs including law enforcement, courts, prosecution, public defense and jail related services total $25,927,304 which is an amount equal to 215% of anticipated property tax collections (_ $25,927,304/ $12,054,400). Staffing Levels The full time equivalent employee (FTE) count will increase by 4.50 from 89.25 in 2018 to 93.75 in 2019. This includes the reduction of a vacant administrative assistant position in the City Manager's office from 1.0 to 0.5 FTE, and the addition of 5.0 FTEs requested by the Community and Public Works Department that are necessary to meet project needs going into the future and of these, the wage related costs of 3.1 FTEs will be paid through capital project that are in large part financed with grant revenues dedicated to those projects. Of the 5 additional FTEs: • 2 will be engineers with wages allocated 20% each to the Engineering Division in the General Fund (for an increase of 0.4 FTEs) and 80% to the Street Capital Projects Fund #303 (for an increase of 1.6 FTEs). The primary responsibilities of these positions will be to focus on capital projects. • 3 will be construction inspectors with wages allocated 50%each to the Street Capital Projects Fund #303 (for an increase of 1.5 FTEs) and 50% each to the Street Fund #101 (for an 3 increase of 1.5 FTEs). During the construction season (April through October) the primary responsibility of these positions will be to focus on capital projects. During winter season operations (November to March) the primary responsibility of these positions will be snow operations and winter maintenance. • It is noteworthy that these 5.0 additional FTEs are largely necessary to meet capital construction needs that are in large part grant financed. If at some point in the future the number and/or magnitude of capital projects decreases due to reduced grant opportunities or some other currently unforeseen circumstance, we will begin to eliminate these positions. The FTE count is allocated among City funds as follows: Difference 2019 2019 2019 Between _ 2018 Staff City Mgr CPW 2019 2018 and Budget Reallocatior. Change Request Budget 2019 General Fund#001 � 74.63 (0.50) (0.50) 0.40 _ 74.03 (0.60) Street O&M Fund#101 ( 5.72 0.50 0.00 1.50 7.72 2.00 Street Capital Projects Fund#3034.50 0.50 0.00 3.10 _ 8.10 3.60 _ Stormwater Fund#402 4.40 (0.50) 0.00 0.00 3.90 (0.50) 89.25 0.00 (0.50) 5.00 93.75 4.50 Taking into consideration that we contract for police services and are served by Fire Districts and a Library District, for a major city we operate substantially below the normal employee count and consequently at a significantly reduced payroll cost relative to many cities across the country. The personnel costs for the 74.03 FTEs charged to the General Fund represent just 20.4% of expenditures. Spokane Valley staff levels average about one employee for every 1,044 citizens (= population of 97,847 per the Census Bureau/ 93.75 FTEs)while comparably sized cities in the State of Washington have a much higher ratio of employees to citizens. Since incorporation,the City has taken a conservative approach to adding new staff and continues to have the lowest per capita employee count of any Washington city with a population of 50,000 or greater. By all comparisons, the City of Spokane Valley is a lean, productive City government. Pavement Preservation Beginning in 2012, the City initiated spending of general fund, special revenue fund and capital project fund revenues and reserves for the purpose of financing our street preservation efforts. In 2019, our citizens will again see an aggressive program of repaving our roadways. Some may question paving roads that "don't look so bad" but the truth is the best time to repave is before a road deteriorates to the point that full reconstruction is necessary. Full reconstruction can cost substantially more than pavement preservation treatments such as crack sealing or grinding and repaving. This is why the City of Spokane Valley has committed critical financial resources to the preservation of our transportation infrastructure. We hope you are as proud of our fine road system as we are! For 2019, we project total revenues in Pavement Preservation Fund #311 of $5,760,900 that combined with $1,527,300 of fund reserves will be applied against $7,288,200 in projected expenditures. Sources of revenue in 2019 include $1,820,000 in grant proceeds, $1,500,000 from the Street Wear fee that was adopted by Council in 2018, and $2,440,900 in transfers from other City funds consisting of: • $972,300 from the General Fund 4 • $734,300 from REET 1 Capital Projects Fund #301 • $734,300 from REET 2 Capital Projects Fund #302 While Pavement Preservation is one of our critical service and budget priorities we find that sustaining adequate levels is a constant challenge and I address this in the portion of this budget message titled "Challenges". Transportation and Infrastructure The 2019 Budget includes $20,603,882 of capital expenditures that we anticipate will be in-part offset with $10,974,189 in grant revenues which results in 53.26% of capital projects being financed with State and Federal dollars. The projects we'll work on in 2019 include: • $5.4 million in Street Capital Projects Fund #303 • $1.8 million in Park Capital Projects Fund #309 • $7.2 million in Pavement Preservation Fund #311 • $4.7 million in Grade Separation Projects Fund #314 • $1.3 million in Stormwater Fund #402 and Aquifer Protection Area Fund #403 Challenges Beyond the annual challenge of balancing the General Fund budget, the City of Spokane Valley has a number of on-going financial challenges. 1. Declining revenues in Street O&M Fund #101 that will impact our future ability to deliver historic service levels This Fund depends upon a combination of gas and telephone tax receipts. • Because the gas tax is a flat amount per gallon, and because each generation of newer vehicles get better gas mileage, we find our gas tax revenues have recently hovered somewhere between either flat or declining. Due to the 2015 State Legislature's increase in the gas tax we've seen a bit of an increase in this revenue source with a 2019 revenue projection of $2,092,300 which represents an increase of $157,300 (or 8.1%) over 2015 revenues of$1,935,000. • The 6% telephone utility tax generated $3.1 million in the first year of collections in 2009. Since that time however we have experienced a decline averaging 5.18% per year and at this point are projecting 2019 revenues of just $1,700,000. We believe the decline is primarily due to the elimination of land lines by individual households. • At the June 12, 2018 Budget Workshop, Council discussed the fact that Street O&M Fund recurring revenues were substantially exceeded by recurring expenditures but were interested in continuing to deliver historic levels of service despite the fact that telephone utility tax revenues have continued to decline. Council asked Staff to prepare a budget that resolves this funding imbalance with a one-time transfer during 2019 of Capital Reserve Fund #312 money. The necessary transfer is $907,544 and this is reflected in both Fund numbers 101 and 312. • Determining "how" to fully finance Street O&M Fund#101 beyond 2019 will continue to be a Council conversation. 2. Balancing the cost of pavement preservation against other transportation and infrastructure needs 5 • Pavement preservation has historically been financed from a combination of sources including: o General Fund dollars, o Street O&M Fund dollars, o Civic Facility Replacement Fund #123 (Fund #123) reserves that were dedicated towards this purpose until their depletion in 2016. o Real estate excise tax (REET) revenues, o Grant revenues, and o Beginning in 2018, the addition of a street wear fee that was negotiated by the City as part of an updated solid waste collection contract that recognized the damage that heavily laden garbage trucks do to our road system. o Following is a table that reflects pavement preservation related revenues over the 9- year period 2011 through 2019: Fund 001 101 106 123 301/302 310 Street Civic Fac. Civic Fac. General Street O&M Wear Fee Replace. REET 1&2 Capital Grants Total Actual 2011 584,681 0 0 0 0 500,000 0 1,084,681 2012 2,045,203 0 0 0 0 0 0 2,045,203 2013 855,857 282,000 0 616,284 300,000 0 35,945 2,090,086 2014 888,823 282,000 0 616,284 368,944 0 2,042,665 4,198,716 2015 920,000 206,618 0 616,284 502,098 0 835,224 3,080,224 2016 943,800 67,342 0 559,808 730,572 0 1,654,698 3,956,220 2017 953,200 67,342 0 0 1,320,958 0 89,208 2,430,708 Budget 2018 962,700 67,342 1,000,000 0 1,370,658 0 1,572,500 4,973,200 2019 972,300 0 1,500,000 0 1,468,600 0 1,820,000 5,760,900 9,126,564 972,644 2,500,000 2,408,660 6,061,830 500,000 8,050,240 29,619,938 • The City used the Civic Facility Replacement Fund #123 reserves over the 4-year period 2013 through 2016 in order to give the City time to determine how best to finance the pavement preservation plan in 2017 and beyond. • Heavy reliance on REET revenues began in 2017 following the depletion of Fund #123 reserves. • Although we currently exist in a robust economy that includes near record REET collections, we realize that as the economy wanes in the future, so will REET revenues. As a consequence, overly relying on REET revenues may in the future limit the City's ability to provide the necessary match needed for State and Federal grants that are applied to other street construction and reconstruction projects. • Over the past 10-12 years Spokane Valley has struggled to develop a pavement management plan that clearly delineates the pavement condition index (PCI) that should be maintained throughout our road system and define the amount of money we should dedicate annually to achieve that plan. The first studies initially estimated the annual cost to be in excess of $10 million per year but as recently as 2016 the estimated cost was reduced to $6.8 million. • Even though the City's investment in our pavement preservation program has fallen short of$6.8 million per year we find that the PCI is not in a free fall and is in fact holding fairly steady at 71. 6 • The City is currently reevaluating our pavement preservation plan with the intent of refining the PCI across local access, collectors and arterials, and formulating a more realistic cost to maintain these. Staff plan to come before Council in early 2019 to report the results. • The desired outcome of the updated pavement preservation plan is to assist Council and Staff in determining the ideal PCI for the different street classifications and the cost to maintain each. Following that, Council and Staff will work collectively to determine how to finance the plan. 3. Railroad Grade Separation Projects (overpasses and underpasses) Bridging the Valley is a proposal to separate vehicle traffic from train traffic in the 42 mile corridor between Spokane and Athol, ID. The separation of railroad and roadway grades in this corridor is intended to promote future economic growth, traffic movement, traffic safety, aquifer protection in the event of an oil spill, and train whistle noise abatement. The underlying study outlined the need for a grade separation at four locations in Spokane Valley. The most recent estimates peg the total cost of these projects at $88.8 million including: • Barker and Trent Road Overpass (estimated cost of$19.0 to $24.7 million), • Pines and Trent Underpass (estimated cost of$29.0 million), • Sullivan Road Overpass improvements (estimated cost of$16.1 million), and • Park Road Overpass (estimated cost of$19.0 million) Because grade separation projects are exceptionally expensive endeavors and largely beyond our ability to finance solely through existing sources of internal revenue, the City has pursued grant funding from both the Federal and State Government over the past several years. Barker/Trent Grade Separation Project We reached the point of being fully funded for this project in early 2018 and the final design phase is underway. Design will continue through 2019 and right-of-way acquisition should begin in 2019. Construction will begin no later than 2020. Revenue sources are comprised of the following: Barker Grade Separation Project Financing Sources j City of Spokane Valley General Fund reserves $ 1,421,000 Real Estate Excise Tax (REET) 2,209,000 Total from Spokane Valley $ 3,630,000 Federal Earmark 721,000 2017 WA Legislature appropriation 1,500,000 National Highway Freight Program 6,000,000 TIGER 9 9,020,000 FMSIB (20% of total) (assume $19.0 million) 3,800,000 $ 24,671,000 Pines /Trent Grade Separation Project Progress to date includes: • The City has set aside $3,185,000 towards what we currently anticipate will be a $29.0 million project. Sources include the following: Pines Grade Separation Project Financing Sources City of Spokane Valley 2016 General Fund Property acquisition $ 500,000 2017 General Fund dedication 1,200,000 2017 General Fund allocation of fund balance > 50% 721,000 2018 General Fund allocation of fund balance > 50% 764,000 - I Total from Spokane Valley $ 1,485,000 • In late 2016 the City acquired property valued at approximately $500,000 that was applied to the acquisition of property that will in-part satisfy the right-of-way needs for this project. • On July 11, 2017 Council approved a Phase 1 contract with an engineering firm valued at $124,000 with a scope of services that calls for evaluating two potential sites, each of which includes a roundabout and signalized intersection alternative. The end result of the study will be a final recommended option with a revised cost estimate. Council will make the final choice of the alternative chosen. Following this, we will enter the second design phase where the City will contract with an engineering firm to take the Council adopted alternative to a 100% design. • Future property acquisitions will be necessary during the right-of-way phase of the project but this cannot be determined until the final phase of the design is well underway. • The City has applied for a variety of both state and federal grants including the TIGER, FASTLANE and INFRA programs. • Grant application currently outstanding include: o SRTC — application is for right-of-way in the amount of $3.8 million (90% of the estimated total cost of$4.2 million). o BUILD— application is for the $23.2 million which is 80% of the estimated project cost. o CRISI 1 — application is for design in the amount of$1.25 million (50% of the estimated total cost of$2.5 million). o CRISI 2 - application is for design in the amount of$1.25 million (50% of the estimated total cost of$2.5 million). • We will continue to apply for grant programs as they become available. We are hopeful that having a 100% design will make us more competitive as we will then have a "shovel ready" project. Economic Development To the best of our ability we focus on business retention and expansion of existing businesses and recruitment of new businesses. Examples of ongoing and future economic development efforts are as follows: 8 Comprehensive Plan — In the latter part of 2016 the City updated its Comprehensive Plan and included an economic development element. Contained within this element is a summary of the local economy; an assessment of strengths and weaknesses; and policies, programs and projects to foster economic growth. The plan also included implementation strategies to improve retail, enhance tourism, and grow businesses in the City. Among other things,the plan also streamlined land uses by consolidating many zones and reducing many development requirements. Additionally the plan was also designed to provide flexibility in an effort to encourage market driven growth. Retail Recruitment—In 2017 the City expanded into the area of Retail Recruitment by contracting with a firm specializing in this type of service. The services we are seeking in this effort include a review of the retail recruitment strategy; conducting a market and retail gap analysis; development of a recruitment plan; identification of a strategic retail prospect list; and recruitment of retail on behalf of the City. We have included money in the 2019 Budget to continue this effort. WA State Department of Commerce Environmental Permitting Grant — In the latter part of 2016 the City received a$114,200 grant from the Department of Commerce that with an additional investment of$55,000 from the City, will result in a streamlined environmental permitting process in the northeast industrial area of our community. This study will complete the environmental permitting requirements for the northeast industrial area, ultimately leading to the development of a Planned Action Ordinance (PAO) that will save industrial developers a minimum of 6 weeks permitting time while providing a predictable path to ensure that adequate infrastructure is in place to serve the expected developments. Completion of the PAO will allow the properties to be marketed as truly "shovel ready". The Budget for 2019 Strong but Guarded Recognizing that fiscal health is at the core of providing good public services, one of the most important tests of fiscal management is the ability of a municipal enterprise to maintain basic services during an economic downturn. The creation and ongoing maintenance of financial reserves since incorporation has served the intended purpose of providing Spokane Valley the means to sustain critical public services during turbulent economic conditions and this served the City well during the Great Recession that began in 2008. The 2019 budget again reflects a prudent and guarded increase in continuation of service delivery capabilities. These increases are carefully considered and well within the means of the City. Service delivery cannot grow faster than the economic development of the City. We are cognizant of the fact that we are now in the longest economic expansion in United States history and at this point, with each passing day we are closer to the next economic downturn. Given this, we will remain vigilant in our observance of local, state and national events and economic trends that may impact our own community and work towards capitalizing on our strengths, minimizing our weaknesses, and being ever watchful towards both threats and opportunities. 9 Balanced Budget Means exactly what it says—operating expenses have been balanced with known or reasonably predictable revenues with no increase in property tax or in sales tax rates for the City. The budget is designed to maintain the healthy, positive fund balance at year-end providing for the City's cash flow needs without costly borrowing. In pursuit of fiscal responsibility, special attention is given to limiting the growth in new programs and financial commitments. This approach allows available resources to be put toward sustaining services consistent with the City Council's priorities for 2019 and beyond. Acknowledgments I would like to acknowledge the Community, City Council and Staff for a long history of financially responsible spending and sensible fiscal planning. By saving and conserving the taxpayers' money, and by adopting and adhering to prudent long-term fiscal policies, the City can provide essential services and balance its budget for many years to come. The City Council continues to set a path to ensure the long-term financial sustainability of the City. The management staff and employees have worked together to develop the Business Plan and 2019 Budget recommendations to achieve the Council's ongoing goal of sustainability. I hope the Citizens of Spokane Valley are proud of the programs and strong financial condition of their City. We invite your examination and questions regarding the 2019 Budget. Respectfully, Mark Calhoun City Manager 10 FINANCE DEPARTMENT o Chelsie Taylor, Finance Director Spokane �.Ll.�. 10210 E Sprague Avenue♦ Spokane Valley WA 99206 Valley Phone: (509)720-5000 • Fax: (509)720-5075•www.spokanevalley.org TO: City Manager and Members of the City Council FROM: Chelsie Taylor, Finance Director SUBJECT: About the 2019 Budget and Budget Development Process The budget includes the financial planning and legal authority to obligate public funds. Additionally, the budget provides significant policy direction by the City Council to the staff and community. As a result, the City Council, staff and public are involved in establishing the budget for the City of Spokane Valley. The budget serves four functions: 1. It is a Policy Document The budget functions as a policy document in that the decisions made within the budget will reflect the general principles or plans that guide the actions taken for the future. As a policy document, the budget makes specific attempts to link desired goals and policy direction to the actual day-to- day activities of the City staff. 2. It is an Operational Guide The budget of the City reflects its operation. Activities of each City function and organization have been planned, debated, formalized, and described in the following sections. This process will help to maintain an understanding of the various operations of the City and how they relate to each other and to the attainment of the policy issues and goals of the City Council. 3. It is a Link with the General Public The budget provides a unique opportunity to allow and encourage public review of City operations. The budget describes the activities of the City, the reason or cause for those activities, future implications, and the direct relationship to the citizenry. 4. It is a Legally Required Financial Planning Tool The budget is a financial planning tool, which has been its most traditional use. In this light, preparing and adopting a budget is a State law requirement of all cities as stated in Title 35A of the Revised Code of Washington (RCW). The budget must be adopted as a balanced budget and must be in place prior to the beginning of the City's fiscal year. The budget is the legal authority to expend public monies and controls those expenditures by limiting the amount of the appropriation at the fund level. The revenues of the City are estimated, along with available cash carry-forward, to indicate funds available. The budget takes into account unforeseen contingencies and provides for the need for periodic adjustments. 2019 BUDGET DEVELOPMENT PROCESS Historically the City has utilized a budgeting approach that assumed for most functions of government that the current year's budget was indicative of the base required for the following year. However, with the volatility that was seen in the economy with the Great Recession, the City moved to a Budget development process that consciously reviews service levels in each department and determines the appropriate level of funding that meets Council goals relative to available resources. 11 The 2019 Budget development process began at the February 13, 2018 Council workshop where among other topics, Council and staff discussed the budget in general terms. In mid-April 2018 the Finance Department notified City Departments that their 2019 revenue and expenditure estimates were due by mid-May. Through the balance of May and early June, the City Manager's office and Finance Department worked to prepare budget worksheets that were communicated to the City Council at a Budget workshop held June 12, 2018. Following the workshop, the Finance Department continued work on the budget including refinements of revenue and expenditure estimates and through July and August, the Finance Department and City Manager reviewed updated budget projections. By the time the 2019 Budget is scheduled to be adopted on November 13, 2018, the Council will have had an opportunity to discuss it on eight separate occasions, including three public hearings to gather input from citizens: June 12 Council budget workshop August 21 Admin report: Estimated 2019 revenues and expenditures September 11 Public hearing #1 on 2019 revenues and expenditures September 25 City Manager's presentation of preliminary 2019 Budget October 9 Public hearing #2 on 2019 Budget October 23 First reading on ordinance adopting the 2019 Budget November 13 Public hearing #3 on the 2019 Budget November 13 Second reading on ordinance adopting the 2019 Budget Once adopted, the final operating budget is published, distributed, and made available to the public. After the budget is adopted, the City enters a budget implementation and monitoring stage. Throughout the year, expenditures are monitored by the Finance Department and department directors to ensure that actual expenditures are in compliance with the approved budget. The Finance Department provides the City Manager and City Council with monthly reports to keep them abreast of the City's financial condition and individual department compliance with approved appropriation levels. Any budget amendments made during the year are adopted by City Council ordinance following a public hearing. The City Manager is authorized to transfer budgeted amounts within a fund; however, any revisions that alter the total expenditures of a fund, or that affect the number of authorized employee positions, salary ranges or other conditions of employment must be approved by the City Council. When the City Council determines that it is in the best interest of the City to increase or decrease the appropriation for a particular fund, it may do so by ordinance adopted by Council after holding one public hearing. BUDGET PRINCIPLES • Department directors have primary responsibility for formulating budget proposals in line with City Council and City Manager priority direction, and for implementing them once they are approved. 12 • The Finance Department is responsible for coordinating the overall preparation and administration of the City's budget. This function is fulfilled in compliance with applicable State of Washington statutes governing local government budgeting practices. • The Finance Department assists department staff in identifying budget problems, formulating solutions and alternatives, and implementing any necessary corrective actions. • Interfund charges will be based on recovery of costs associated with providing those services. • Budget amendments requiring City Council approval will occur through the ordinance process at the fund level prior to fiscal year end. • The City's budget presentation will be directed at displaying the City's services plan in a Council/constituent friendly format. • No long term debt will be incurred without identification of a revenue source to repay the debt. Long term debt will be incurred for capital purposes only. • The City will strive to maintain equipment replacement funds in an amount necessary to replace the equipment at the end of its useful life. Life cycle assumptions and required contributions will be reviewed annually as part of the budget process. New operations in difficult economic times may make it difficult to fund this principle in some years. • The City will pursue an ending general fund balance at a level of no less than 50% of recurring expenditures. This figure is based upon an evaluation of both cash flow and operating needs. BASIS OF ACCOUNTING AND BUDGETING Accounting Accounting records for the City are maintained in accordance with methods prescribed by the State Auditor under the authority of the Revised Code of Washington (RCW), Chapter 43.09.20, and in compliance with generally accepted accounting principles as set forth by the Governmental Accounting Standards Board. Basis of Presentation - Fund Accounting The accounts of the City of Spokane Valley are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of double-entry accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. The City's resources are allocated to and accounted for in individual funds depending on their intended purpose. The following are the fund types used by the City of Spokane Valley: Governmental Fund Types Governmental funds are used to account for activities typically associated with state and local government operations. All governmental fund types are accounted for on a spending or"financial flows" measurement focus, which means that typically only current assets and current liabilities are included on related balance sheets. The operating statements of governmental funds measure changes in financial position, rather than net income. They present increases(revenues and other financing sources) and decreases(expenditures and other financing uses) in net current assets. There are four governmental fund types used by the City of Spokane Valley: 13 1. General Fund This fund is the primary fund of the City of Spokane Valley. It accounts for all financial resources except those required or elected to be accounted for in another fund. 2. Special Revenue Funds These funds account for revenues that are legally restricted or designated to finance particular activities of the City of Spokane Valley. Special Revenue funds include: • #101 — Street Fund • #103— Paths &Trails Fund • #104— Hotel / Motel Tax—Tourism Facilities Fund • #105— Hotel / Motel Tax Fund • #106—Solid Waste Fund • #107— PEG Fund • #120— CenterPlace Operating Reserve Fund • #121 —Service Level Stabilization Reserve Fund • #122—Winter Weather Reserve Fund 3. Debt Service Funds These funds account for financial resources which are designated for the retirement of debt. Debt Service Funds are comprised of the#204 — LTGO Debt Service Fund. 4. Capital Project Funds These funds account for financial resources, which are designated for the acquisition or construction of general government capital projects. Capital Project Funds include: • #301 — REET 1 Capital Projects Fund • #302— REET 2 Capital Projects Fund • #303—Streets Capital Projects Fund • #309 — Parks Capital Projects Fund • #310— Civic Facilities Capital Projects Fund • #311 — Pavement Preservation Fund • #312—Capital Reserve Fund • #313—City Hall Construction Fund • #314— Railroad Grade Separation Projects Fund Proprietary Fund Types A second type of fund classification is the Proprietary Funds that are used to account for activities similar to those found in the private sector where the intent of the governing body is to finance the full cost of providing services based on the commercial model which uses a flow of economic resources approach. Under this approach, the operating statements for the proprietary funds focus on a measurement of net income (revenues and expenses) and both current and non-current assets and liabilities are reported on related balance sheets. Their reported fund equity (total net assets) is segregated into restricted, unrestricted and invested in capital assets classifications. As described below, there are two generic fund types in this category: 1. Enterprise Funds These funds account for operations that provide goods or services to the general public and are supported primarily by user charges. This type of fund includes: • #402 — Stormwater Management Fund • #403—Aquifer Protection Area Fund 14 2. Internal Service Funds These funds account for operations that provide goods or services to other departments or funds of the City. This type of fund includes: • #501 — Equipment Rental and Replacement Fund • #502 — Risk Management Fund Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized, recorded in the accounting system and ultimately reported in the financial statements. • Modified Accrual Basis of Accounting is used for all governmental funds. Modified accrual recognizes revenues when they become both measurable and available to finance expenditures of the current period. • Accrual Basis of Accounting is used for enterprise and internal service funds. Under this system revenues and expenses are recognized in the period incurred rather than when cash is either received or disbursed. Budgets and Budgetary Accounting Annual appropriation budgets are adopted for all funds with Governmental Funds utilizing a modified cash basis of accounting for budget purposes and Proprietary Funds utilizing a working capital approach. Budgets are adopted at the fund level that constitutes the legal authority for expenditures, and annual appropriations for all funds lapse at the end of the fiscal period. EXPLANATION OF MAJOR REVENUE SOURCES General Fund #001 • Property Tax Property taxes play an essential role in the finances of the municipal budget. State law limits the City to a $3.60 levy per$1,000 assessed valuation, deducting from there the levy of up to $1.50 by the Spokane County Fire Districts #1 and #8, along with deducting up to $0.50 for the Library District, which leaves the City with the authority to levy up to $1.60 for its own purposes. The levy amount must be established by ordinance by November 30th prior to the levy year. • Retail Sales and Use Tax The sales tax rate for retail sales transacted within the boundaries of the City of Spokane Valley is 8.8%. The tax that is paid by a purchaser at the point of sale is remitted by the vendor to the Washington Department of Revenue who then remits the taxes back to the various agencies that have imposed the tax. The allocation of the 8.8% tax rate to the agencies is as follows: 15 State of Washington 6.50% City of Spokane Valley 0.85% Spokane County 0.15% Criminal Justice 0.10% Spokane Public Facilities District 0.10% * Public Safety 0.10% * 2.30% local tax Juvenile Jail 0.10% * Mental Health 0.10% * Law Enforcement Communications 0.10% * Spokane Transit Authority 0.70% * 8.80% *Indicates voter approved sales taxes. • Criminal Justice Sales Tax Local Sales Tax for Criminal Justice funding is to be used solely for criminal justice purposes, such as the City's law enforcement contract. This tax is authorized at 1/10 of 1% of retail sales transacted in the County. Of the total amount collected, the State distributes 10% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the County and cities within the County. • Public Safety Sales Tax Beginning in 2005, an additional 0.1% voter approved increase in sales tax was devoted to public safety purposes. This 0.1% was approved by the voters again in August 2009. Of the total amount collected, the State distributes 60% of the receipts to Spokane County, with the remainder allocated on a per capita basis to the cities within the County. • Gambling Tax Gambling tax revenues must be spent primarily on law enforcement purposes pertaining to gambling. Funds remaining after necessary expenditures for such enforcement purposes may be used for any general government purpose. Gambling taxes are to be paid quarterly to the City, no later than the last day of January, April, July and October. The City imposes a tax on the following forms of gambling at the following rates: Bingo (5% gross, less prizes); Raffles (5% gross, less prizes); Punchboards and Pull tabs (5% gross, less prizes); Amusement Games (2% gross, less prizes); Card playing (6% gross). • Leasehold Excise Tax Taxes on property owned by state or local governments and leased to private parties (City's share). • Franchise Fees Cable TV is the only franchise fee levied in the City at a rate of 5% of gross revenues. This is a fee levied on private utilities for the right to use city streets, alleys, and other public properties. 16 • State-Shared Revenues State-shared revenues are received from liquor sales, marijuana revenues, and motor vehicle excise taxes. These taxes are collected by the State of Washington and shared with local governments based on population. State-shared revenues are distributed on either a monthly or quarterly basis, although not all quarterly revenues are distributed in the same month of the quarter. The 2018 population figure used in the 2019 Budget is 95,810 as reported by the Office of Financial Management for Washington State on April 1, 2018. This figure is important when determining distribution of State shared revenues on a per capita basis. • Fines and Forfeitures/ Public Safety Fines and penalties are collected as a result of Municipal Court rulings, false alarm fees, and other miscellaneous rule infractions. All court fines and penalties are shared with the State, with the City, on average, retaining less than 50% of the amount collected. • Community Development Community Development revenues are largely composed of fees for building permits, plan reviews, and right-of-way permits. • Recreation Program Fees The Parks and Recreation Department charges fees for selected recreation programs. These fees offset direct costs related to providing the program. • CenterPlace Fees The Parks and Recreation Department charges fees for use of CenterPlace. Uses include regional meetings, weddings, receptions and banquets. Rental rooms include classrooms, the great room and dining rooms. • Investment Interest The City earns investment interest on sales tax money held by the State of Washington prior to the distribution of the taxes to the City, as well as on City initiated investments. Street Fund #101 • Motor Vehicle Fuel Excise Tax (gas tax) The State of Washington collects a $0.494 per gallon motor vehicle fuel tax at the pump. Of this amount, the State remits a portion of the tax back to cities on a per capita basis. For 2018 the Municipal Research and Services Center estimates the distribution back to cities will be $21.93 per person. Based upon a City of Spokane Valley population of 95,810 (per the Washington State Office of Financial Management on April 1, 2018)we anticipate the City will collect$2,101,100 in 2019. RCW 47.30.050 specifies that 0.42%of this tax must be expended for paths and trails activities and based upon the 2019 revenue estimate this computes to $8,800. The balance of$2,092,300 will be credited to Fund #101 for street maintenance and operations. 17 • Telephone Utility Tax The City of Spokane Valley levied a 6% telephone utility tax via Ordinance #08-014 with collections beginning in 2009. Telephone companies providing this service pay the tax to the City monthly. Telephone tax has been estimated at $1.7 million for 2019. Paths & Trails Fund #103 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 $8,800 in 2019. 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 $390,000 in 2019. 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 $600,000 in 2019. Solid Waste Fund #106 Under the City's contract for solid waste transfer, transport and disposal services with Sunshine Recyclers, Inc., Sunshine pays an annual contract administrative fee of$125,000 to the City. Also, under the City's contract for solid waste collection services with Waste Management of Washington, Inc., Waste Management pays an administrative fee of 12.5% of gross receipts. This fee shall be used by the City for costs related to solid waste services, including costs for contract administration, solid waste planning and management, and for a portion of the City's street preservation and maintenance programs. Of the amounts collected under the fee, no more than 1% of gross receipts may be used for contract administration. PEG Fund #107 Under the City's cable franchise, the franchise grantee remits to the City in a capital contribution in support of Public Education Government(PEG) capital requirements an amount equal to $0.35 per subscriber per month to be paid to the City on a quarterly basis for the life of the franchise. Capital contributions collected under this agreement are allocated to PEG capital uses exclusively. PEG capital uses include, in part, the set-up of equipment in the City Council Chambers that allows Spokane Valley to broadcast Council meetings both live and through subsequent reviews via digital recordings available on the City's website. 18 LTGO Debt Service Fund #204 This fund is used to account for the accumulation of resources for, and the payment of limited tax general obligation (LTGO) bonds also referred to as councilmanic or non-voted bonds. When LTGO bonds are issued the City irrevocably pledges the full faith, credit and resources necessary to make timely payments of principal and interest, within constitutional and statutory limitations pertaining to non-voted general obligations. In 2003 the City issued $9,430,000 in limited tax general obligation (LTGO) bonds the proceeds of which were used to finance both the construction of CenterPlace and road and street improvements surrounding the facility. In 2014 the City refunded the LTGO bonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond repayment (much like refinancing a home mortgage). At the completion of the bond refunding there remained $7,035,000 of LTGO bonds. Of this total: • $5,650,000 remained on the original debt used towards the construction of CenterPlace. These bonds will be paid off in annual installments over the 20-year period ending December 1, 2033. Annual debt service payments on these bonds are provided by the Spokane Public Facilities District. At January 1, 2019, the outstanding balance on this portion of the bond issue will be $4,645,000. • $1,385,000 remained on the original debt used towards the road and street improvements. These bonds will be paid off in annual installments over the 10-year period ending December 1, 2023. Annual debt service payments on these bonds are provided by equal distributions from the 1st and 2nd quarter percent real estate excise tax. At January 1, 2019 the outstanding balance on this portion of the bond issue will be $730,000. In 2016 the City issued $7,275,000 in LTGO bonds, the proceeds of which were used to finance the construction of a new City Hall along with $6.3 million of City cash that has been set aside for this purpose. These bonds will be paid off in annual installments over the 30-year period ending December 1, 2045. Annual debt service payments on these bonds are provided by transfers in from the General Fund. At January 1, 2019, the outstanding balance on the bond issue will be $6,895,000. REET 1 Capital Projects Fund #301 Under Washington State Law, RCW 82.46.010, the City is allowed to impose an excise tax on each sale of real property at the rate of one-quarter of one percent of the selling price. The revenue generated is used for financing capital projects as specified in the capital facilities plan under the Growth Management Act. REET 2 Capital Projects Fund #302 Under Washington State Law, RCW 82.46.010, the City is allowed to impose an additional excise tax on each sale of real property at the rate of one-quarter of one percent of the selling price. The revenue generated is used for financing public works capital projects as specified in the capital facilities plan under the Growth Management Act. Stormwater Management Fund #402 A stormwater fee is imposed upon every developed parcel within the City, which is an annual charge of$21 for each single family unit and $21 per 3,160 square feet of impervious surface for all other properties. These charges are uniform for the same class of customers and service facilities. These fees are estimated to generate $1,890,000 in 2019. 19 Aquifer Protection Area (APA) Fund #403 These are voter approved fees, the proceeds of which are applied to aquifer protection related capital construction projects. Fees are collected by Spokane County and remitted to the City twice each year. These fees are estimated to generate $460,000 in 2019. Fees include: • An annual fee of $15 per household for the withdrawal of water from properties within the APA. • An annual fee of$15 per household for on-site sewage disposal by properties within the APA. • For commercial properties an annual fee ranging from $15 to $960 depending upon water meter size. Interfund Transfers Many funds receive a portion of their revenues from other funds in the form of an interfund transfer. These transfers typically represent payments for either services rendered by one fund for another or a concentration of revenues for a specific project or purpose. The following interfund transfers are planned for 2019: Out: 001 105 106 301 302 312 Total In 001 0 30,000 40,422 0 0 0 70,422 _ 101 0 0 0 0 0 907,544 907,544 204 401,250 0 0 82,475 82,475 0 566,200 303 0 0 0 504,172 167,434 317,000 988,606 In: 309 1,320,000 0 0 0 0 14,788 1,334,788 311 972,300 0 1,500,000 734,300 734,300 0 3,940,900 314 0 0 0 50,000 0 0 50,000 501 36,600 0 0 0 0 0 36,600 502 390,000 0 0 0 0 0 390,000 8,285,060 Total in Total Out 3,120,150 30,000 1,540,422 1,370,947 984,209 1,239,332 8,285,060 Total out 0 #001 -General Fund is budgeted to transfer out$3,120,150 including: • $401,250 to Fund #204 - LTGO Debt Service Fund for bond payments on the 2016 LTGO Bonds for the City Hall construction. • $1,320,000 to Fund #309 - Park Capital Projects Fund for park related projects, including $160,000 for a restroom facility as Browns Park and $1,000,000 for additional improvements at Browns Park. • $972,300 to Fund #311 - Pavement Preservation Fund for pavement preservation projects. • $36,600 to Fund #501 - Equipment Rental and Replacement Fund to fund a CenterPlace kitchen equipment replacement reserve. • $390,000 to Fund#502-Risk Management Fund for the 2019 property and liability insurance premium. #105 - Hotel / Motel Tax Fund is budgeted to transfer $30,000 to Fund #001 - General Fund for the purpose of financing advertising at CenterPlace. 20 #106 — Solid Waste Fund is budgeted to transfer $40,422 to Fund #001 under a 5-year plan to reimburse the General Fund for expenditures made during 2013 and 2014 for the solid waste program. The final transfer for this reimbursement is in 2019. #301 — REET 1 Capital Projects Fund is budgeted to transfer out $1,357,058 including: • $82,475 to Fund #204— LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $504,172 to Fund #303 — Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $734,300 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. • $50,000 to Fund #314 — Railroad Grade Separation Projects Fund for the Barker Rd. grade separation project. #302 — REET 2 Capital Projects Fund is budgeted to transfer out $984,209 including: • $82,475 to Fund #204— LTGO Debt Service Fund to pay a portion of the annual payment on the 2014 LTGO bonds. • $167,434 to Fund #303 — Street Capital Projects Fund that will be applied towards grant matches for street construction projects. • $734,300 to Fund #311 — Pavement Preservation Fund for pavement preservation projects. #312 — Capital Reserve Fund is budgeted to transfer out $1,239,332 including: • $907,544 to Fund #101 — Street Fund as a one-time coverage of the estimated deficit in recurring activity for the 2019 Budget. • $317,000 to Fund#303—Street Capital Projects Fund that will be applied towards City funded street construction projects. • $14,788 to Fund #309— Parks Capital Projects Fund that will be applied towards the Sullivan to Corbin and Evergreen to Sullivan segments of the Appleway Trail. SIGNIFICANT ASSUMPTIONS IN THE 2019 BUDGET Budget Summary for All Funds • Based upon funding levels anticipated in the 2019 budget, City staff will strive to maintain adequate levels of service. • Appropriations for all City Funds will total $78.3 million including $20.6 million in capital expenditures, comprised in-part of: o $5.4 million in Fund #303 — Street Capital Projects. o $1.8 million in Fund #309 — Park Capital Projects. o $7.2 million in Fund #311 — Pavement Preservation projects. o $4.7 million in Fund #314— Railroad Grade Separation Projects. o $450 thousand in Fund #402 — Stormwater Management projects. o $833 thousand in Fund #403 —Aquifer Protection Area projects. • To partially offset the$20.6 million in capital costs, we anticipate $11 million in grant revenues which results in 53.26% of capital expenditures being covered with State and Federal money. • Budgets will be adopted across 24 separate funds. • The full time equivalent of employee (FTE) count will be 93.75 employees compared to 89.25 in the prior year as a result of the reduction of a vacant administrative assistant position in the City Manager's office from 1.0 to 0.5 FTE, and the addition of 5.0 FTEs requested by the Community and Public Works Department that are necessary to meet project needs going into the future. The 5 FTEs represent an increase of 0.4 FTE in Fund #001 — General Fund, 1.5 FTEs in Fund #101 — Street Operations & Maintenance, and 3.1 FTEs in Fund #303 — Street Capital Projects. 21 o See the City Manager's budget message for further details on FTE count for the City. • The 2019 Budget reflects the fifth consecutive year the City will set aside City monies in an amount equivalent to 6% of General Fund recurring expenditures for pavement preservation in Fund #311 — Pavement Preservation. This 6% equals $2,440,900. • Positions and salary ranges are based on the City's compensation and classification plan. • Payroll tax and benefit amounts are based on staff benefit plans. • Contract costs for public safety, park maintenance, aquatics and street maintenance are based on estimates by City staff. • The City is setting money aside in Fund #501 — Equipment Rental and Replacement for the eventual replacement of its vehicles as well as a reserve to replace equipment in the kitchen at CenterPlace. 2019 General Fund Revenues • Total recurring 2019 revenues are estimated at $45,496,900 as compared to $43,007,600 in 2018. This is an increase of$2,489,300 or 5.79%. • The two largest sources of revenue continue to be Sales Tax and Property Tax which are collectively estimated to account for 83.52% of 2019 General Fund recurring revenues. • The 2019 general sales tax estimate (excluding criminal justice and public safety sales taxes) is reflective of 2018 receipts to date and are currently estimated at$22.9 million which reflects an increase of$2,035,100 or 9.75% over the 2018 estimate. • The Property Tax levy does not include the potential annual increase allowed by Initiative #747 which was approved by the voters in November 2001 and the subsequent action by the State Legislature in November 2007. o The 2019 levy is estimated at $12,054,400. o The levy assumes we start with the 2018 levy of$11,804,400, forgo the potential annual increase allowed by State law, and finally add taxes related to new construction which we estimate to be $250,000. • Franchise fees and business registrations are primarily based on projected receipts in 2018. • State shared revenues are based upon a combination of historical collections including 2018 collections through July, and per capita distribution figures reported by the Municipal Research and Services Center. • Fines and forfeitures are estimated by Spokane Valley and based on historical collections. • Building permit and land use fees are estimated by Spokane Valley and based on historic collections. 2019 General Fund Expenditures • Total 2019 recurring expenditures are budgeted at $41,691,369 as compared to $40,901,919 in 2018. This is an increase of$789,450 or 1.93%. • The City commitment of 6% of recurring General Fund expenditures to pavement preservation equals $2,440,900 and is computed by multiplying total recurring expenditures prior to adding the pavement preservation element ($2,440,900 / $40,719,069 = 6%). The $2,440,900 that is transferred to Pavement Preservation Fund #311 is comprised of the following: o $972,300 from General Fund #001 o $734,300 from REET 1 Capital Projects Fund #301 o $734,300 from REET 2 Capital Projects Fund #302 • 2019 Nonrecurring expenditures total $1,342,000 and include: o $107,000 for Information Technology expenditures including: • $22,000 to replace outdated copiers • $50,000 to upgrade storage devices at CenterPlace • $30,000 for a whole room UPS for the server room at City Hall 22 o $50,000 for workstations and carpet replacement at the police precinct o $25,000 for retail recruitment services o $160,000 transfer out to the Parks Capital Projects Fund#309 to construct a new restroom at Browns Park o $1,000,000 transfer out to the Parks Capital Projects Fund #309 to complete additional improvements at Browns Park General Fund Revenues Over (Under) Expenditures and Fund Balance • 2019 recurring revenues are anticipated to exceed recurring expenditures by $3,805,531. • Total 2019 revenues are anticipated to exceed total expenditures by $2,503,953. • The total unrestricted General Fund ending fund balance is anticipated to be $33,064,618 at the end of 2019 which is 79.31% of total recurring expenditures of$41,691,369. Our goal is to maintain an ending fund balance of at least 50.0%. Highlights of Other Funds Revenues • Motor vehicle fuel tax (MVFT) revenue that is collected by the State and remitted to the City is estimated to be $2,101,100 according to per capita estimates provided by the Municipal Research and Services Center. Of this amount, $2,092,300 will be credited to the Street O&M Fund #101 and 0.42% or$8,800 to the Paths and Trails Fund #103. • Telephone taxes that are remitted to the City and support Street Fund operations and maintenance are anticipated at $1,700,000. • Real estate excise tax(REET) revenue is computed by the City and is primarily used to match grant funded street projects as well as pay a portion of the annual payment on the 2014 general obligation bonds. In 2019 we estimate these revenues to be $1,000,000 per each '/4% for a total of$2,000,000. • Hotel/Motel tax revenues are computed by the City and are dedicated to the promotion of visitors and tourism. In 2019 we estimate the tax will generate $990,000, which includes $600,000 in Fund #105 Hotel / Motel Tax Fund from the 2% tax and $390,000 in Fund #104 Hotel / Motel Tax—Tourism Facilities Fund from the 1.3% tax that was effective as of July 1, 2015. • The Stormwater Management Fee is based on an equivalent residential unit (ERU) that is equal to 3,160 square feet of impervious surface that is billed at a rate of$21 per single family residence and $21 per ERU for commercial properties (an ERU for a commercial property is computed as total square feet of impervious surface divided by 3,160). In 2019 we estimate this will fee will generate $1,890,000. • The Aquifer Protection Area Fund is expected to generate $460,000 in fees that are collected on the City's behalf by Spokane County and remitted in two installments during the year. • Grant revenues that will be applied to a variety of construction projects are estimated at $10,974,189 in 2019. By fund we anticipate grant revenues as follows: o Fund #303 —Street Capital Projects - $4,408,681 o Fund #309 — Parks Capital Projects - $572,308 o Fund #311 — Pavement Preservation - $1,820,000 o Fund #314— Railroad Grade Separation Projects Fund - $3,750,000 o Fund #402—Stormwater Fund - $106,000 o Fund #403—Aquifer Protection Area Fund - $317,200 Expenditures • Fund #101 —Street Fund appropriations include: 23 o $4,918,044 for maintenance of City streets, including $497,200 in snow operations and $855,000 in intergovernmental payments for services. • Fund #106—Solid Waste Fund appropriations include: o a $1,500,000 transfer out to the Pavement Preservation Fund#311 for street preservation activities • Fund #301 — REET 1 Capital Projects Fund includes a $1,370,947 appropriation to cover: o a $82,475 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 $504,172 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $734,300 transfer to Pavement Preservation Fund #311 for pavement preservation projects. o a $50,000 transfer to Railroad Grade Separation Projects Fund #314 for the Barker Road Grade Separation Project. • Fund #302— REET 2 Capital Projects Fund includes a $984,209 appropriation to cover: o a $82,475 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 $167,434 transfer to Street Capital Projects Fund #303 to partially offset the cost of street construction / reconstruction projects. o a $734,300 transfer to Pavement Preservation Fund #311 for pavement preservation projects • Fund#303—Street Capital Projects Fund includes an appropriation of$5,432,987 for a variety of street construction projects. Included in the projects are the Sullivan/Wellesley intersection project for which we are appropriating $1,167,287 in 2019 and the N. Sullivan Corridor ITS project for which we are appropriating $730,000 in 2019. • Fund #309 — Parks Capital Projects includes a $1,812,095 appropriation to cover a variety of City park improvements that will be financed through a combination of a $1,320,000 transfer from the General Fund #001, a $14,788 transfer in from the Capital Reserve Fund #312, and $572,308 in grant proceeds. • Fund #311 — Pavement Preservation includes $7,238,200 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 $906,544 in transfers to Fund #101 — Street O&M to cover the estimated deficit in recurring activity for 2019 and $317,000 in transfers to Fund #303 — Street Capital Projects that will be applied towards the removal and reconstruction of Euclid Ave. from Flora to Barker in the amount of $5,000, towards improvements at the intersection of 8th and Carnahan in the amount of $45,000, and towards the widening of the Barker Road corridor in the amount of$267,000. It also includes $14,788 in transfers to Fund #309—Parks Capital Projects that will be applied toward the Sullivan to Corbin and Evergreen to Sullivan segments of the Appleway Trail. 24 • Fund #314 — Railroad Grade Separation Protects includes appropriations in the amount of $4,700,000 towards the Barker Road Grade Separation project and the Pines Road Grade Separation project. • Fund #402 —Stormwater Fund includes $560,000 for nonrecurring expenditures including: o $450,000 for various capital projects o $110,000 for the studies related to the City's Stormwater permit and the watershed • Fund #403 — Aquifer Protection Area Fund includes a $832,600 appropriation to various capital projects. 25 This page left intentionally blank. 26 CITY OF SPOKANE VALLEY,WA 2019 Budget Summary Estimated Estimated Beginning Ending Fund Fund Total Fund Annual Appropriation Funds No. Balance Revenues Sources Appropriations Balance General Fund 001 30,560,665 45,537,322 76,097,987 43,033,369 33,064,618 Street Fund 101 636,748 4,918,044 5,554,792 4,918,044 636,748 Paths&Trails Fund 103 5,024 9,200 14,224 0 14,224 Hotel/Motel Tax-Tourism Facilities Fund 104 1,857,095 397,000 2,254,095 0 2,254,095 Hotel/Motel Tax Fund 105 200,867 602,000 802,867 655,000 147,867 Solid Waste 106 190,682 1,726,300 1,916,982 1,726,300 190,682 PEG Fund 107 62,637 76,000 138,637 71,100 67,537 CenterPlace Operating Reserve Fund 120 300,000 0 300,000 0 300,000 Service Level Stabilization Fund 121 5,500,000 0 5,500,000 0 5,500,000 Winter Weather Reserve Fund 122 501,217 5,000 506,217 500,000 6,217 LTGO Bond Debt Service Fund 204 0 998,350 998,350 998,350 0 REET 1 Capital Projects Fund 301 1,778,693 1,022,000 2,800,693 1,370,947 1,429,746 REET 2 Capital Projects Fund 302 2,649,661 1,025,000 3,674,661 984,209 2,690,452 Street Capital Projects 303 66,692 5,432,987 5,499,679 5,432,987 66,692 Park Capital Projects Fund 309 43,502 1,907,096 1,950,598 1,812,095 138,503 Civic Facilities Capital Projects Fund 310 849,588 9,000 858,588 0 858,588 Pavement Preservation Fund 311 3,875,163 5,760,900 9,636,063 7,288,200 2,347,863 Capital Reserve Fund 312 6,990,056 50,000 7,040,056 1,239,332 5,800,724 City Hall Construction Fund 313 26,116 0 26,116 0 26,116 Railroad Grade Separation Projects Fund 314 901,612 3,800,000 4,701,612 4,700,000 1,612 56,996,018 73,276,199 130,272,217 74,729,933 55,542,284 Estimated Estimated Beginning Ending Fund Working Total Working Working Capital Funds No. Capital Revenues Sources Appropriations Capital Stormwater Management Fund 402 1,616,607 2,016,000 3,632,607 2,297,332 1,335,275 Aquifer Protection Area Fund 403 1,670,248 787,200 2,457,448 832,600 1,624,848 Equipment Rental&Replacement Fund 501 1,258,812 188,029 1,446,841 20,000 1,426,841 Risk Management Fund 502 244,261 390,000 634,261 390,000 244,261 4,789,928 3,381,229 8,171,157 3,539,932 4,631,225 Total of all Funds 61,785,946 76,657,428 138,443,374 78,269,865 60,173,509 27 CITY OF SPOKANE VALLEY,WA 11/13/2018 2019 Budget 2018 2019 Difference Between As As Proposed 2018 and 2019 Adopted Amendment Amended Budget $ #001-GENERAL FUND RECURRING ACTIVITY Revenues Property Tax 11,796,100 0 11,796,100 12,054,400 258,300 2.19% Sales Tax 20,881,900 0 20,881,900 22,917,000 2,035,100 9.75% Sales Tax-Public Safety 967,800 0 967,800 1,081,900 114,100 11.79% Sales Tax-Criminal Justice 1,738,000 0 1,738,000 1,944,000 206,000 11.85% Gambling Tax and Leasehold Excise Tax 381,000 0 381,000 387,000 6,000 1.57% Franchise Fees/Business Registration 1,210,000 0 1,210,000 1,224,000 14,000 1.16% State Shared Revenues 2,109,600 0 2,109,600 1,909,800 (199,800) (9.47%) Fines and Forfeitures/Public Safety 1,319,900 0 1,319,900 1,078,500 (241,400) (18.29%) Community and Public Works 1,684,100 0 1,684,100 1,882,300 198,200 11.77% Recreation Program Revenues 633,300 0 633,300 628,800 (4,500) (0.71%) Miscellaneous Department Revenue 1,000 0 1,000 1,000 0 0.00% Miscellaneous&Investment Interest 201,800 0 201,800 358,200 156,400 77.50% Transfers in-#101(street admin) 39,700 0 39,700 0 (39,700) (100.00%) 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 0 (13,400) (100.00%) Total Recurring Revenues 43,007,600 0 43,007,600 45,496,900 2,489,300 5.79% Expenditures City Council 548,494 1,593 550,087 545,903 (4,184) (0.76%) City Manager 956,245 455 956,700 948,835 (7,865) (0.82%) City Attorney 594,752 7,455 602,207 610,549 8,342 1.39% Public Safety 25,464,251 0 25,464,251 25,927,304 463,053 1.82% Deputy City Manager 450,663 228 450,891 267,044 (183,847) (40.77%) Finance/IT 1,339,064 910 1,339,974 1,402,497 62,523 4.67% Human Resources 275,387 5,028 280,415 297,421 17,006 6.06% City Hall Operations and Maintenance 306,043 228 306,271 290,543 (15,728) (5.14%) Community&Public Works-Engineering 1,572,947 56,346 1,629,293 1,816,141 186,848 11.47% Community&Public Works-Economic Dev 970,642 228 970,870 1,018,772 47,902 4.93% Community&Public Works-Building&Plan 2,265,677 (55,890) 2,209,787 2,248,698 38,911 1.76% Parks&Rec-Administration 301,083 228 301,311 335,958 34,647 11.50% Parks&Rec-Maintenance 893,700 (29,725) 863,975 893,500 29,525 3.42% Parks&Rec-Recreation 260,574 228 260,802 253,622 (7,180) (2.75%) Parks&Rec-Aquatics 492,900 23,000 515,900 491,153 (24,747) (4.80%) Parks&Rec-Senior Center 98,229 0 98,229 101,215 2,986 3.04% Parks&Rec-CenterPlace 910,468 228 910,696 949,414 38,718 4.25% General Government 1,261,610 0 1,261,610 1,332,650 71,040 5.63% Transfers out-#204(2016 LTGO debt service) 399,350 0 399,350 401,250 1,900 0.48% Transfers out-#309(park capital projects) 160,000 0 160,000 160,000 0 0.00% Transfers out-#311 (pavement preservation) 962,700 0 962,700 972,300 9,600 1.00% Transfers out-#501 (CenterPlace kitchen reserve) 36,600 0 36,600 36,600 0 0.00% Transfers out-#502(insurance premium) 370,000 0 370,000 390,000 20,000 5.41% Total Recurring Expenditures 40,891,379 10,540 40,901,919 41,691,369 789,450 1.93% Recurring Revenues Over(Under) Recurring Expenditures 2,116,221 (10,540) 2,105,681 3,805,531 28 CITY OF SPOKANE VALLEY,WA 11/13/2018 2019 Budget 2018 2019 Difference Between As As Proposed 2018 and 2019 Adopted Amendment Amended Budget $ I % #001-GENERAL FUND-continued NONRECURRING ACTIVITY Revenues Transfers in-#106 (solid waste repayment) 40,425 0 40,425 40,422 (3) (0.01%) Total Nonrecurring Revenues 40,425 0 40,425 40,422 (3) (0.01%) Expenditures General Government-IT capital replacements 115,000 0 115,000 107,000 (8,000) (6.96%) City Attorney(part-time attorney furniture) 4,809 0 4,809 0 (4,809) (100.00%) Deputy City Manager(Q-Alert software) 11,700 0 11,700 0 (11,700) (100.00%) Economic Development(retail recruitment) 50,000 0 50,000 25,000 (25,000) (50.00%) Public Safety(full facility generator) 100,000 0 100,000 0 (100,000) (100.00%) Public Safety(carpet&workstation replacement) 0 0 0 50,000 50,000 0.00% Parks&Rec(Flooring in Great Room&Dining Room) 50,000 0 50,000 0 (50,000) (100.00%) Parks&Rec(CP reseal two restroom floors) 3,000 0 3,000 0 (3,000) (100.00%) General Government-City Hall generator 0 200,000 200,000 0 (200,000) (100.00%) Transfers out-#122(replenish reserve) 0 490,000 490,000 0 (490,000) (100.00%) Transfers out-#309(Browns Park lighting&path) 200,000 0 200,000 0 (200,000) (100.00%) Transfers out-#309(CP outdoor venue Phase 1) 200,000 0 200,000 0 (200,000) (100.00%) Transfers out-#309(Appleway Trail Amenities) 0 29,725 29,725 0 (29,725) (100.00%) Transfers out-#309(Browns Park restroom) 0 0 0 160,000 160,000 0.00% Transfers out-#309(Browns Park other) 0 0 0 1,000,000 1,000,000 0.00% Transfers out-#312('16 fund bal>50%) 0 2,795,429 2,795,429 0 (2,795,429) (100.00%) Transfers out-#312(misc capital projects) 1,000,000 0 1,000,000 0 (1,000,000) (100.00%) Total Nonrecurring Expenditures 1,734,509 3,515,154 5,249,663 1,342,000 (3,907,663) (74.44%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (1,694,084) (3,515,154) (5,209,238) (1,301,578) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures 422,137 (3,525,694) (3,103,557) 2,503,953 Beginning unrestricted fund balance 33,664,222 33,664,222 30,560,665 Ending unrestricted fund balance 34,086,359 30,560,665 33,064,618 Fund balance as a percent of recurring expenditures 83.36% 74.72% 79.31% General Fund Summary Total revenues 43,048,025 0 43,048,025 45,537,322 Total expenditures 42,625,888 3,525,694 46,151,582 43,033,369 Excess(Deficit)of Total Revenues Over(Under)Total Expenditures 422,137 (3,525,694) (3,103,557) 2,503,953 Beginning unrestricted fund balance 33,664,222 33,664,222 30,560,665 Ending unrestricted fund balance 34,086,359 30,560,665 33,064,618 29 CITY OF SPOKANE VALLEY,WA 11/13/2018 2019 Budget 2018 2019 Difference Between As As Proposed 2018 and 2019 Adopted Amendment Amended Budget $ SPECIAL REVENUE FUNDS #101-STREET FUND RECURRING ACTIVITY Revenues Utility Tax 1,900,000 0 1,900,000 1,700,000 (200,000) (10.53%) Motor Vehicle Fuel(Gas)Tax 2,052,400 0 2,052,400 2,092,300 39,900 1.94% Multimodal Transportation Revenue 133,800 0 133,800 132,200 (1,600) (1.20%) Right-of-Way Maintenance Fee 70,000 0 70,000 70,000 0 0.00% Investment Interest 6,000 0 6,000 6,000 0 0.00% Miscellaneous 10,000 0 10,000 10,000 0 0.00% Total Recurring Revenues 4,172,200 0 4,172,200 4,010,500 (161,700) (3.88%) Expenditures Wages/Benefits/Payroll Taxes 771,019 0 771,019 1,044,547 273,528 35.48% Supplies 112,500 0 112,500 113,300 800 0.71% Services&Charges 2,141,751 455 2,142,206 2,308,818 166,612 7.78% Snow Operations 504,800 0 504,800 497,200 (7,600) (1.51%) Intergovernmental Payments 851,000 0 851,000 855,000 4,000 0.47% Vehicle rentals-#501(non-plow vehicle rental) 21,250 0 21,250 21,250 0 0.00% Vehicle rentals-#501 (plow replace.) 77,929 0 77,929 77,929 0 0.00% Transfers out-#001 39,700 0 39,700 0 (39,700) (100.00%) Transfers out-#311 (pavement preservation) 67,342 0 67,342 0 (67,342) (100.00%) Total Recurring Expenditures 4,587,291 455 4,587,746 4,918,044 330,298 7.20% Recurring Revenues Over(Under) Recurring Expenditures (415,091) (455) (415,546) (907,544) NONRECURRING ACTIVITY Revenues Transfers in-#312 0 0 0 907,544 907,544 0.00% Total Nonrecurring Revenues 0 0 0 907,544 907,544 0.00% Expenditures Battery backups for intersections 15,000 0 15,000 0 (15,000) (100.00%) Total Nonrecurring Expenditures 15,000 0 15,000 0 (15,000) (100.00%) Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (15,000) 0 (15,000) 907,544 Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (430,091) (455) (430,546) 0 Beginning fund balance 1,067,294 1,067,294 636,748 Ending fund balance 637,203 636,748 636,748 Street Fund Summary Total revenues 4,172,200 0 4,172,200 4,918,044 Total expenditures 4,602,291 455 4,602,746 4,918,044 Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (430,091) (455) (430,546) 0 Beginning unrestricted fund balance 1,067,294 1,067,294 636,748 Ending unrestricted fund balance 637,203 636,748 636,748 30 CITY OF SPOKANE VALLEY,WA 11/13/2018 2019 Budget 2018 2019 Difference Between As As Proposed 2018 and 2019 Adopted Amendment Amended Budget $ I % SPECIAL REVENUE FUNDS-continued #103-PATHS&TRAILS FUND Revenues Motor Vehicle Fuel(Gas)Tax 8,700 0 8,700 8,800 100 1.15% Investment Interest 0 0 0 400 400 0.00% Total revenues 8,700 0 8,700 9,200 500 5.75% Expenditures Transfers out-#309(Appleway Trail-Sullivan to Corbin) 0 50,000 50,000 0 (50,000) (100.00%) Total expenditures 0 50,000 50,000 0 (50,000) (100.00%) Revenues over(under)expenditures 8,700 (41,300) 9,200 Beginning fund balance 46,324 46,324 5,024 Ending fund balance 55,024 5,024 14,224 #104-HOTEL/MOTEL TAX-TOURISM FACILITIES FUND Revenues Hotel/Motel Tax 377,000 0 377,000 390,000 13,000 3.45% Investment Interest 1,500 0 1,500 7,000 5,500 366.67% Transfers in-#105 0 250,000 250,000 0 (250,000) (100.00%) Total revenues 378,500 250,000 628,500 397,000 (231,500) (36.83%) Expenditures Capital Outlay 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 378,500 628,500 397,000 Beginning fund balance 1,228,595 1,228,595 1,857,095 Ending fund balance 1,607,095 1,857,095 2,254,095 #105-HOTEL/MOTEL TAX FUND Revenues Hotel/Motel Tax 580,000 0 580,000 600,000 20,000 3.45% Investment Interest 1,000 0 1,000 2,000 1,000 100.00% Total revenues 581,000 0 581,000 602,000 21,000 3.61% Expenditures Transfers out-#001 30,000 0 30,000 30,000 0 0.00% Transfers out-#104 0 250,000 250,000 0 (250,000) (100.00%) Tourism Promotion 572,000 (250,000) 322,000 625,000 303,000 94.10% Total expenditures 602,000 0 602,000 655,000 53,000 8.80% Revenues over(under)expenditures (21,000) (21,000) (53,000) Beginning fund balance 221,867 221,867 200,867 Ending fund balance 200,867 200,867 147,867 #106-SOLID WASTE FUND Revenues Sunshine Administrative Fee 225,000 0 225,000 225,000 0 0.00% Solid Waste Road Wear Fee 0 1,000,000 1,000,000 1,500,000 500,000 50.00% Investment Interest 0 0 0 1,300 1,300 0.00% Total revenues 225,000 1,000,000 1,225,000 1,726,300 501,300 40.92% Expenditures Education&Contract Administration 184,575 0 184,575 185,878 1,303 0.71% Transfers out-#001 40,425 0 40,425 40,422 (3) (0.01%) Transfersout-#311 0 1,000,000 1,000,000 1,500,000 500,000 50.00% Total expenditures 225,000 1,000,000 1,225,000 1,726,300 501,300 40.92% Revenues over(under)expenditures 0 0 0 Beginning fund balance 190,682 190,682 190,682 Ending fund balance 190,682 190,682 190,682 31 CITY OF SPOKANE VALLEY,WA 11/13/2018 2019 Budget 2018 2019 Difference Between As As Proposed 2018 and 2019 Adopted Amendment Amended Budget $ SPECIAL REVENUE FUNDS-continued #107-PEG FUND Revenues Comcast PEG Contribution 79,000 0 79,000 76,000 (3,000) (3.80%) Investment Interest 0 0 0 0 0 0.00% Total revenues 79,000 0 79,000 76,000 (3,000) (3.80%) Expenditures PEG Reimbursement-CMN 40,200 0 40,200 40,100 (100) (0.25%) Capital Outlay 31,000 0 31,000 31,000 0 0.00% Total expenditures 71,200 0 71,200 71,100 (100) (0.14%) Revenues over(under)expenditures 7,800 7,800 4,900 Beginning fund balance 54,837 54,837 62,637 Ending fund balance 62,637 62,637 67,537 #120-CENTER PLACE OPERATING RESERVE FUND Revenues Investment Interest 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total revenues 0 0 0 0 0 0.00% Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 0 0 0 Beginning fund balance 300,000 300,000 300,000 Ending fund balance 300,000 300,000 300,000 #121-SERVICE LEVEL STABILIZATION RESERVE FUND Revenues Investment Interest 0 0 0 0 0 0.00% Miscellaneous 0 0 0 0 0 0.00% Total revenues 0 0 0 0 0 0.00% Expenditures Operations 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 0 0 0 Beginning fund balance 5,500,000 5,500,000 5,500,000 Ending fund balance 5,500,000 5,500,000 5,500,000 #122-WINTER WEATHER RESERVE FUND Revenues Investment Interest 3,500 0 3,500 5,000 1,500 42.86% Transfers in-#001 0 490,000 490,000 0 (490,000) (100.00%) Subtotal revenues 3,500 490,000 493,500 5,000 (488,500) (98.99%) Expenditures Street maintenance expenditures 500,000 0 500,000 500,000 0 0.00% Total expenditures 500,000 0 500,000 500,000 0 0.00% Revenues over(under)expenditures (496,500) (6,500) (495,000) Beginning fund balance 7,717 7,717 501,217 Ending fund balance (488,783) 1,217 6,217 32 CITY OF SPOKANE VALLEY,WA 11/13/2018 2019 Budget 2018 2019 Difference Between As As Proposed 2018 and 2019 Adopted Amendment Amended Budget $ I yo DEBT SERVICE FUNDS #204-LTGO BOND DEBT SERVICE FUND Revenues Spokane Public Facilities District 414,050 0 414,050 432,150 18,100 4.37% Transfers in-#001 399,350 0 399,350 401,250 1,900 0.48% Transfers in-#301 82,000 0 82,000 82,475 475 0.58% Transfers in-#302 82,000 0 82,000 82,475 475 0.58% Total revenues 977,400 0 977,400 998,350 20,950 2.14% Expenditures Debt Service Payments-CenterPlace 414,050 0 414,050 432,150 18,100 4.37% Debt Service Payments-Roads 164,000 0 164,000 164,950 950 0.58% 2016 LTGO Bond Principal&Interest 399,350 0 399,350 401,250 1,900 0.48% Total expenditures 977,400 0 977,400 998,350 20,950 2.14% Revenues over(under)expenditures 0 0 0 Beginning fund balance 0 0 0 Ending fund balance 0 0 0 33 CITY OF SPOKANE VALLEY,WA 11/13/2018 2019 Budget 2018 2019 _ Difference Between As As Proposed 2018 and 2019 Adopted Amendment Amended Budget $ I yo CAPITAL PROJECTS FUNDS #301-REET 1 CAPITAL PROJECTS FUND Revenues REET 1 -Taxes 800,000 700,000 1,500,000 1,000,000 (500,000) (33.33%) Investment Interest 7,500 0 7,500 22,000 14,500 193.33% Total revenues 807,500 700,000 1,507,500 1,022,000 (485,500) (32.21%) Expenditures Transfers out-#204 82,000 0 82,000 82,475 475 0.58% Transfers out-#303 1,048,852 0 1,048,852 504,172 (544,680) (51.93%) Transfers out-#311 (pavement preservation) 685,329 0 685,329 734,300 48,971 7.15% Transfers out-#314(Barker Grade Separation) 0 38,000 38,000 50,000 12,000 31.58% Total expenditures 1,816,181 38,000 1,854,181 1,370,947 (483,234) (26.06%) Revenues over(under)expenditures (1,008,681) (346,681) (348,947) Beginning fund balance 2,125,374 2,125,374 1,778,693 Ending fund balance 1,116,693 1,778,693 1,429,746 #302-REET 2 CAPITAL PROJECTS FUND Revenues REET 2-Taxes 800,000 700,000 1,500,000 1,000,000 (500,000) (33.33%) Investment Interest 8,000 0 8,000 25,000 17,000 212.50% Total revenues 808,000 700,000 1,508,000 1,025,000 (483,000) (32.03%) Expenditures Transfers out-#204 82,000 0 82,000 82,475 475 0.58% Transfers out-#303 1,003,544 95,890 1,099,434 167,434 (932,000) (84.77%) Transfers out-#311 (pavement preservation) 685,329 0 685,329 734,300 48,971 7.15% Total expenditures 1,770,873 95,890 1,866,763 984,209 (882,554) (47.28%) Revenues over(under)expenditures (962,873) (358,763) 40,791 Beginning fund balance 3,008,424 3,008,424 2,649,661 Ending fund balance 2,045,551 2,649,661 2,690,452 34 CITY OF SPOKANE VALLEY,WA 11/13/2018 2019 Budget 2018 2019 Difference Between As As Proposed 2018 and 2019 _ Adopted Amendment Amended Budget - $ CAPITAL PROJECTS FUNDS-continued #303-STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds 8,919,182 (938,037) 7,981,145 4,408,681 (3,572,464) (44.76%) Developer 65,212 (32,180) 33,032 35,700 2,668 8.08% Transfers in-#301 1,048,852 0 1,048,852 504,172 (544,680) (51.93%) Transfers in-#302 1,003,544 95,890 1,099,434 167,434 (932,000) (84.77%) Transfers in-#312-Euclid Ave-Flora to Barker 5,000 410,839 415,839 5,000 (410,839) (98.80%) Transfers in-#312-8th&Carnahan Intersection 0 425,000 425,000 45,000 (380,000) (89.41%) Transfers in-#312-Indiana bus stops&crosswalks 110,000 (110,000) 0 0 0 0.00% Transfers in-#312-Barker Corridor 0 148,488 148,488 267,000 118,512 (20.19%) Total revenues 11,151,790 0 11,151,790 5,432,987 (5,718,803) (51.28%) Expenditures 123 Mission Ave.-Flora to Barker 3,625,716 136,412 3,762,128 5,000 (3,757,128) (99.87%) 141 Sullivan&Euclid PCC 0 25,000 25,000 0 (25,000) (100.00%) 142 Broadway @ Argonne/Mullan PCC intersection 2,250,000 91,799 2,341,799 12,500 (2,329,299) (99.47%) 166 Pines Rd(SR27)&Grace Ave.Intersect Safety 402,710 92,290 495,000 5,000 (490,000) (98.99%) 201 ITS Infill Project Phase 1 378,172 58,828 437,000 5,000 (432,000) (98.86%) 205 Sprague/Barker Intersections Improvement 35,700 0 35,700 35,700 0 0.00% 221 McDonald Rd Diet(16th to Mission) 1,000 0 1,000 0 (1,000) (100.00%) 222 Citywide Reflective Signal Backplates 17,000 25,645 42,645 0 (42,645) (100.00%) 239 Bowdish Sidewalk 8th to 12th 5,000 0 5,000 0 (5,000) (100.00%) 247 8th&Carnahan Intersection Improvements 0 425,000 425,000 45,000 (380,000) (89.41%) 249 Sullivan/Wellesley Intersection 268,000 0 268,000 1,167,287 899,287 335.55% 250 9th Ave.Sidewalk 2,000 0 2,000 0 (2,000) (100.00%) 251 Euclid Ave.-Flora to Barker 5,000 414,359 419,359 5,000 (414,359) (98.81%) 258 32nd Ave Sidewalk-SR27 to Evergreen 407,870 0 407,870 5,000 (402,870) (98.77%) 259 N.Sullivan Corridor ITS Project 808,723 (723,723) 85,000 730,000 645,000 758.82% 263 Citywide Signal Backplates 24,526 100,193 124,719 0 (124,719) (100.00%) 264 8th Ave Sidewalk 458,958 0 458,958 0 (458,958) (100.00%) 265 Wellesley Sidewalk Project 647,665 (609,665) 38,000 382,000 344,000 905.26% 267 Mission Ave Sidewalk 60,250 0 60,250 420,000 359,750 597.10% 273 Barker/I-90 Interchange 0 500,000 500,000 500,000 0 0.00% 275 Barker Rd Widening-River to Euclid 0 88,000 88,000 132,000 44,000 50.00% 276 Barker Rd Widening-Euclid to Garland 0 54,000 54,000 81,000 27,000 50.00% 277 Barker Rd Widening-Garland to Trent 0 36,000 36,000 54,000 18,000 50.00% 278 Wilbur Rd Sidewalk-Boone to Broadway 0 20,000 20,000 354,500 334,500 1672.50% 279 Knox Ave Sidewalk-Hutchinson to Sargent 0 20,000 20,000 294,000 274,000 1370.00% 281 Highland Estates Connector 0 0 0 200,000 200,000 0.00% Barker Road Widening 106,500 (106,500) 0 0 0 0.00% Coleman Sidewalk 25,000 (25,000) 0 0 0 0.00% Argonne Reconstruction-Indiana to Montgom 512,000 (512,000) 0 0 0 0.00% Indiana bus stops&crosswalks 110,000 (110,000) 0 0 0 0.00% Contingency 1,000,000 (638) 999,362 1,000,000 638 0.06% Total expenditures 11,151,790 0 11,151,790 5,432,987 (5,718,803) (51.28%) Revenues over(under)expenditures 0 0 0 Beginning fund balance 66,692 66,692 66,692 Ending fund balance 66,692 66,692 66,692 Note: Work performed for pavement preservation projects out of the Street Capital Projects Fund is for items such as sidewalk upgrades that were bid with the pavement preservation work. 35 CITY OF SPOKANE VALLEY,WA 11/13/2018 2019 Budget 2018 2019 Difference Between As As Proposed 2018 and 2019 Adopted Amendment Amended Budget $ CAPITAL PROJECTS FUNDS-continued #309-PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds 1,693,200 0 1,693,200 572,308 (1,120,892) (66.20%) Transfers in-#001 560,000 29,725 589,725 1,320,000 730,275 123.83% Transfers in-#103 0 50,000 50,000 0 (50,000) (100.00%) Transfers in-#312 324,100 0 324,100 14,788 (309,312) (95.44%) Investment Interest 0 0 0 0 0 0.00% Total revenues 2,577,300 79,725 2,657,025 1,907,096 (749,929) (28.22%) Expenditures 237 Appleway Trail(Sullivan to Corbin) 1,853,300 233,000 2,086,300 5,000 (2,081,300) (99.76%) 268 Appleway Trail(Evergreen to Sullivan) 164,000 0 164,000 72,500 (91,500) (55.79%) 270 CenterPlace outdoor venue-Phase 1 200,000 0 200,000 0 (200,000) (100.00%) 271 Browns Park lighting and pathway 200,000 (176,800) 23,200 0 (23,200) (100.00%) 274 Park signs(Sullivan,Park Rd,Balfour) 24,000 0 24,000 0 (24,000) (100.00%) 280 Appleway Trail Amenities(Univ-Pines) 0 29,725 29,725 509,595 479,870 1614.37% 282 Browns Park volleyball courts 0 176,800 176,800 0 (176,800) (100.00%) Browns Park restroom 0 0 0 160,000 160,000 0.00% Browns Park improvements 0 0 0 1,000,000 1,000,000 0.00% Swing sets 0 0 0 25,000 25,000 0.00% Resurface Discovery Park 0 0 0 40,000 40,000 0.00% Electrical Upgrade Mirabeau Point Park 0 7,700 7,700 0 (7,700) (100.00%) Heart of the Valley Sculpture Placement 0 28,000 28,000 0 (28,000) (100.00%) Total expenditures 2,441,300 298,425 2,739,725 1,812,095 (927,630) (33.86%) Revenues over(under)expenditures 136,000 (82,700) 95,001 Beginning fund balance 126,202 126,202 43,502 Ending fund balance 262,202 43,502 138,503 #310-CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Investment Interest 5,900 0 5,900 9,000 3,100 52.54% Total revenues 5,900 0 5,900 9,000 3,100 52.54% Expenditures Transfers out-#001 0 0 0 0 0 0.00% Total expenditures 0 0 0 0 0 0.00% Revenues over(under)expenditures 5,900 5,900 9,000 Beginning fund balance 843,688 843,688 849,588 Ending fund balance 849,588 849,588 858,588 Note: The fund balance in#310 includes$839,285.10 paid by the Library District for 2.82 acres at the Balfour Park site. If the District does not succeed in getting a voted bond approved by October 2017 then the City may repurchase this land at the original sale price of$839,285.10. #311-PAVEMENT PRESERVATION Revenues Transfers in-#001 962,700 0 962,700 972,300 9,600 1.00% Transfers in-#101 67,342 0 67,342 0 (67,342) (100.00%) Transfersin-#106 0 1,000,000 1,000,000 1,500,000 500,000 50.00% Transfers in-#301 685,329 0 685,329 734,300 48,971 7.15% Transfers in-#302 685,329 0 685,329 734,300 48,971 7.15% Grant Proceeds 2,572,500 (1,000,000) 1,572,500 1,820,000 247,500 15.74% Total revenues 4,973,200 0 4,973,200 5,760,900 787,700 15.84% Expenditures Pavement preservation 4,008,600 401,940 4,410,540 7,238,200 2,827,660 64.11% Pre-project GeoTech 50,000 0 50,000 50,000 0 0.00% Total expenditures 4,058,600 401,940 4,460,540 7,288,200 2,827,660 63.39% Revenues over(under)expenditures 914,600 512,660 (1,527,300) Beginning fund balance 3,362,503 3,362,503 3,875,163 Ending fund balance 4,277,103 3,875,163 2,347,863 36 CITY OF SPOKANE VALLEY,WA 11/13/2018 2019 Budget 2018 2019 Difference Between As As Proposed 2018 and 2019 Adopted Amendment Amended Budget $ I % CAPITAL PROJECTS FUNDS-continued #312-CAPITAL RESERVE FUND Revenues Transfers in-#001 1,000,000 2,795,429 3,795,429 0 (3,795,429) (100.00%) Transfers in-#313 74,960 0 74,960 0 (74,960) (100.00%) Investment Interest 16,000 0 16,000 50,000 34,000 212.50% Total revenues 1,090,960 2,795,429 3,886,389 50,000 (3,836,389) (98.71%) Expenditures City Hall Sculpture Siting 0 5,383 5,383 0 Transfers out-#101 0 0 0 907,544 Transfers out-#303(Euclid Ave-Flora to Bader) 5,000 410,839 415,839 5,000 (410,839) (98.80%) Transfers out-#303(8th&Camahan Intersection) 0 425,000 425,000 45,000 (380,000) (89.41%) Transfers out-#303(Indiana bus stops&crosswalks) 110,000 (110,000) 0 0 0 0.00% Transfers out-#303(Barker Road Corridor) 0 148,488 148,488 267,000 118,512 79.81% Transfers out-#309(Appleway Trail-Sullivan-Corbin) 301,900 0 301,900 5,000 (296,900) (98.34%) Transfers out-#309(Appleway Trail-Evergreen-Sullivai 22,200 0 22,200 9,788 (12,412) (55.91%) Transfers out-#314(Pines Rd Grade Separation) 0 4,809 4,809 0 (4,809) (100.00%) Total expenditures 439,100 884,519 1,323,619 1,239,332 (84,287) (6.37%) Revenues over(under)expenditures 651,860 2,562,770 (1,189,332) Beginning fund balance 4,427,286 4,427,286 6,990,056 Ending fund balance 5,079,146 6,990,056 5,800,724 #313-CITY HALL CONSTRUCTION FUND Revenues Investment Interest 0 0 0 0 0 0.00% Total revenues 0 0 0 0 0 0.00% Expenditures Transfers out-#312 74,960 0 74,960 0 (74,960) (100.00%) Total expenditures 74,960 0 74,960 0 (74,960) (100.00%) Revenues over(under)expenditures (74,960) (74,960) 0 Beginning fund balance 101,076 101,076 26,116 Ending fund balance 26,116 26,116 26,116 #314-RAILROAD GRADE SEPARATION PROJECTS FUND Revenues Grant Proceeds 1,919,921 (1,149,921) 770,000 3,750,000 2,980,000 387.01% Transfers in-#301 0 38,000 38,000 50,000 12,000 31.58% Transfers in-#312 0 4,809 4,809 0 (4,809) (100.00%) Total revenues 1,919,921 (1,107,112) 812,809 3,800,000 2,987,191 367.51% Expenditures 143 Barker BNSF Grade Separation 1,919,921 (1,019,921) 900,000 3,800,000 2,900,000 322.22% 223 Pines Rd Underpass 1,000,000 (920,000) 80,000 900,000 820,000 1025.00% Total expenditures 2,919,921 (1,939,921) 980,000 4,700,000 3,720,000 379.59% Revenues over(under)expenditures (1,000,000) (167,191) (900,000) Beginning fund balance 1,068,803 1,068,803 901,612 Ending fund balance 68,803 901,612 1,612 37 CITY OF SPOKANE VALLEY,WA 11/13/2018_ 2019 Budget 2018 2019 Difference Between As As Proposed 2018 and 2019 Adopted Amendment Amended Budget $ ENTERPRISE FUNDS #402-STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees 1,870,000 0 1,870,000 1,890,000 20,000 1.07% Investment Interest 7,500 0 7,500 20,000 12500 166.67% Total Recurring Revenues 1,877,500 0 1,877,500 1,910,000 32,500 1.73% Expenditures Wages/Benefits/Payroll Taxes 557,157 0 557,157 494,273 (62,884) (11.29%) Supplies 14,800 0 14,800 10,700 (4,100) (27.70%) Services&Charges 1,140,982 228 1,141,210 1,182,109 40,899 3.58% Intergovernmental Payments 35,000 0 35,000 37,500 2,500 7.14% Vehicle rentals-#501 12,750 0 12,750 12,750 0 0.00% Transfers out-#001 13,400 0 13,400 0 (13,400) (100.00%) Total Recurring Expenditures 1,774,089 228 1,774,317 1,737,332 (36,985) (2.08%) Recurring Revenues Over(Under) Recurring Expenditures 103,411 (228) 103,183 172,668 NONRECURRING ACTIVITY Revenues Grant Proceeds 65,000 0 65,000 106,000 41,000 63.08% Total Nonrecurring Revenues 65,000 0 65,000 106,000 41,000 63.08% Expenditures Capital-various projects 450,000 0 450,000 450,000 0 0.00% Effectiveness study 15,000 0 15,000 10,000 (5,000) (33.33%) Watershed studies 60,000 0 60,000 100,000 40,000 66.67% Total Nonrecurring Expenditures 525,000 0 525,000 560,000 35,000 6.67% Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (460,000) 0 (460,000) (454,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (356,589) (228) (356,817) (281,332) Beginning working capital 1,973,424 1,973,424 1,616,607 Ending working capital 1,616,835 1,616,607 1,335,275 Storm water Fund Summary Total revenues 1,942,500 0 1,942,500 2,016,000 Total expenditures 2,299,089 228 2,299,317 2,297,332 Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (356,589) (228) (356,817) (281,332) Beginning unrestricted fund balance 1,973,424 1,973,424 1,616,607 Ending unrestricted fund balance 1,616,835 1,616,607 1,335,275 #403-AQUIFER PROTECTION AREA Revenues Spokane County 460,000 0 460,000 460,000 0 0.00% Grant Proceeds 0 445,955 445,955 317,200 (128,755) (28.87%) Investment Interest 0 0 0 10,000 10,000 0.00% Total revenues 460,000 445,955 905,955 787,200 (118,755) (13.11%) Expenditures Capital-various projects 400,000 248,780 648,780 832,600 183,820 28.33% Total expenditures 400,000 248,780 648,780 832,600 183,820 28.33% Revenues over(under)expenditures 60,000 257,175 (45,400) Beginning working capital 1,413,073 1,413,073 1,670,248 Ending working capital 1,473,073 1,670,248 1,624,848 38 CITY OF SPOKANE VALLEY,WA 11/13/2018 2019 Budget 2018 2019 Difference Between As As Proposed 2018 and 2019 Adopted Amendment Amended Budget $ INTERNAL SERVICE FUNDS #501-ER&R FUND Revenues Vehicle rentals-#001 30,000 0 30,000 30,000 0 0.00% Vehicle rentals-#101 21,250 0 21,250 21,250 0 0.00% Vehicle rentals-#101(plow replace.) 77,929 0 77,929 77,929 0 0.00% Vehicle rentals-#402 12,750 0 12,750 12,750 0 0.00% Transfer in-#001 (CenterPlace kitchen reserve) 36,600 0 36,600 36,600 0 0.00% Investment Interest 4,000 0 4,000 9,500 5,500 137.50% Total revenues 182,529 0 182,529 188,029 5,500 3.01% Expenditures Small tools&minor equipment 20,000 0 20,000 20,000 0 0.00% Total expenditures 20,000 0 20,000 20,000 0 0.00% Revenues over(under)expenditures 162,529 162,529 168,029 Beginning working capital 1,096,283 1,096,283 1,258,812 Ending working capital 1,258,812 1,258,812 1,426,841 #502-RISK MANAGEMENT FUND Revenues Transfers in-#001 370,000 0 370,000 390,000 20,000 5.41% Total revenues 370,000 0 370,000 390,000 20,000 5.41% Expenditures Auto&Property Insurance 370,000 0 370,000 390,000 20,000 5.41% Total expenditures 370,000 0 370,000 390,000 20,000 5.41% Revenues over(under)expenditures 0 0 0 Beginning fund balance 244,261 244,261 244,261 Ending fund balance 244,261 244,261 244,261 TOTAL OF ALL FUNDS Total of Revenues for all Funds 75,762,925 5,353,997 81,116,922 76,657,428 Total of Expenditures for all Funds 77,365,593 4,604,010 81,969,603 78,269,865 Total grant revenues(included in total revenues) 15,169,803 (2,642,003) 12,527,800 10,974,189 Total Capital expenditures(included in total expenditures) 21,644,311 (785,393) 20,858,918 20,603,882 39 CITY OF SPOKANE VALLEY,WA 2019 Budget Revenues by Fund General Fund Property Tax $ 12,054,400 Sales Tax 22,917,000 Sales Tax-Public Safety 1,081,900 Sales Tax-Criminal Justice 1,944,000 Gambling and Leasehold Excise Tax 387,000 Franchise Fees/Business Registration 1,224,000 State Shared Revenues 1,909,800 Service Revenues 1,882,300 Fines and Forfeitures 1,078,500 Recreation Program Fees 628,800 Miscellaneous, Investment Int.,Transfers 429,622 Total General Fund $ 45,537,322 Other Funds 101 Street Fund $ 4,918,044 103 Paths&Trails Fund 9,200 104 Hotel/Motel Tax Tourism Facilities Fund 397,000 105 Hotel/Motel Tax Fund 602,000 106 Solid Waste Fund 1,726,300 107 PEG Fund 76,000 120 CenterPlace Operating Reserve Fund 0 121 Service Level Stabilization Reserve Fund 0 122 Winter Weather Reserve Fund 5,000 204 LTGO Bond Debt Service Fund 998,350 301 REET 1 Capital Projects Fund 1,022,000 302 REET 2 Capital Projects Fund 1,025,000 303 Street Capital Projects Fund 5,432,987 309 Parks Capital Projects Fund 1,907,096 310 Civic Facilities Capital Projects Fund 9,000 311 Pavement Preservation Fund 5,760,900 312 Capital Reserve Fund 50,000 313 City Hall Construction Fund 0 314 Railroad Grade Separation Projects Fund 3,800,000 402 Stormwater Management Fund 2,016,000 403 Aquifer Protection Area Fund 787,200 501 Equipment Rental& Replacement Fund 188,029 502 Risk Management Fund 390,000 Total Other Funds $ 31,120,106 Total All Funds $ 76,657,428 40 CITY OF SPOKANE VALLEY, WA 2019 General Fund Revenues $45,537,322 Recreation Program Fees 2% Miscellaneous Fines&Forfeitures / 1% 2% / Property Tax 27% Service Revenues 4% State Shared Revenues 4% Franchise Fees/Business Registrations 3% GamblingTax __ _ 1% Public Safety Sales Tax 2% Criminal Justice Sales Tax 4% Sales Tax 50% 41 CITY OF SPOKANE VALLEY, WA 2019 City Wide Revenues $ 76,657,428 Debt Service Fund 1% Other Special Revenue Funds Capital Projects Funds 25% 4% Street Fund 6% Stormwater Management Fund 3% APA Fund 1% Internal Service Funds 1% General Fund 59% 42 CITY OF SPOKANE VALLEY,WA 2019 Budget-General Fund Detail Revenues by Type 2015 2016 2017 2018 2019 Proposed Actual Actual Actual Budget Budget Property Tax Property Tax 11,095,009 11,250,832 11,433,071 11,796,100 12,054,400 Property Tax-Delinquent 185,138 163,275 179,986 0 0 11,280,147 11,414,107 11,613,056 11,796,100 12,054,400 Sales Taxes Sales Tax 18,209,568 19,887,049 21,089,134 20,881,900 22,917,000 Sales Tax-Public Safety 848,665 910,798 983,025 967,800 1,081,900 Sales Tax-Criminal Justice 1,523,588 1,642,804 1,765,040 1,738,000 1,944,000 20,581,821 22,440,652 23,837,199 23,587,700 25,942,900 Gambling and Leasehold Excise Tax Amusement Games 11,909 13,671 14,841 13,000 14,000 Card Games 336,960 288,199 279,611 288,000 280,000 Bingo&Raffles 950 839 1,060 1,000 1,000 Punch Boards&Pull Tabs 62,966 69,001 72,292 69,000 72,000 Leasehold Excise Tax 5,869 6,567 11,073 6,500 11,000 Leasehold Excise Tax(State) 770 3,514 9,175 3,500 9,000 419,424 381,790 388,052 381,000 387,000 Licenses&Permits General Business Licenses 109,076 111,906 124,006 110,000 124,000 Franchise Fees 1,111,616 1,145,319 1,152,203 1,100,000 1,100,000 1,220,692 1,257,225 1,276,209 1,210,000 1,224,000 State Shared Revenues Streamline Mitigation of Sales Tax 572,577 559,044 550,976 520,000 204,500 Payment in Lieu of Taxes-DNR 4,114 0 7,738 4,000 4,000 CJ-High Crime 0 0 190,802 0 0 MVET Criminal Justice-Population 24,869 25,940 26,834 29,400 31,600 CJ Contracted Services 157,282 159,936 165,647 155,000 165,000 CJ Special Programs 91,009 94,462 98,475 100,600 104,400 Marijuana Enforcement 37,912 54,213 34,147 33,200 0 Marijuana Excise Tax Distribution 0 0 41,164 0 112,100 DUI-Cities 13,571 14,472 14,187 14,000 14,000 Liquor Board Excise Tax 303,724 442,294 458,560 466,800 492,400 Liquor Board Profits 806,570 804,057 794,980 786,600 781,800 2,011,629 2,154,417 2,383,510 2,109,600 1,909,800 Service Revenues Accessory Dwelling 0 0 588 0 200 Building&Planning Fees 148,962 134,686 175,123 126,400 138,800 Building Permits 770,288 1,534,332 1,327,855 878,000 1,000,000 Code Enforcement 12,417 2,185 8,198 5,000 5,000 Demolition Permits 3,840 3,232 4,143 4,000 3,800 Developer Contributions 0 23,587 0 0 0 Entertainment License 18,374 17,548 11,649 17,000 15,700 Grading Permits 4,748 6,271 11,610 4,000 5,600 Home Profession Fee 2,856 3,780 5,124 3,200 3,600 Mechanical Permits 89,975 102,639 129,766 88,000 99,000 Misc.Permits&Fees 7,229 3,925 5,967 6,600 5,600 Planning Fees 379,143 721,851 475,409 402,500 448,000 Plumbing Permits 41,784 77,523 62,542 53,000 57,600 Right of Way Permits 91,124 97,037 123,067 95,000 97,700 Street Vacation Permits 0 0 1,365 1,000 1,300 Temporary Use Permit Fees 314 471 471 400 400 1,571,053 2,729,068 2,342,878 1,684,100 1,882,300 43 CITY OF SPOKANE VALLEY,WA 2019 Budget-General Fund Detail Revenues by Type 2015 2016 2017 2018 2019 Proposed Actual Actual Actual Budget Budget Fines and Forfeitures Public Safety False Alarm Services 201,638 150,058 5,534 151,000 151,000 Public Safety Grants 49,418 25,628 0 50,000 50,000 Fines&Forfeits-Traffic 601,189 477,743 421,240 483,600 414,800 Other Criminal-Non Traffic Fines 508,665 606,463 464,056 635,300 462,700 1,360,910 1,259,892 890,830 1,319,900 1,078,500 Recreation Program Charges Activity Fees(To use a recreational facility) 461,772 433,842 467,504 438,100 446,200 Program Fees(To participate in a program) 192,484 204,527 271,566 195,200 182,600 654,256 638,369 739,070 633,300 628,800 Miscellaneous AWC Health&Wellness 400 492 0 500 500 Copy Charges 708 262 595 500 500 Dept.of Commerce Tr.&Econ.Dev. 0 0 114,200 0 0 Insurance Recoveries 0 44,474 0 0 0 Interest on Gambling Tax 66 174 271 500 500 Investment Interest 73,378 136,810 309,826 136,000 300,000 Judgments and Settlements 0 25,000 44,490 0 0 Miscellaneous Revenue&Grants 5,326 87,065 39,061 2,000 2,000 Office of Public Def-Public Def Improvement 20,000 18,400 17,500 0 0 Police Precinct Maintenance 0 19,059 12,891 19,000 12,500 Police Precinct Rent 51,653 38,842 37,446 38,000 37,000 Sales Tax Interest 8,682 13,477 18,315 5,000 5,000 SCRAPS pass-through/nonrecurring 1,100 1,209 1,145 1,300 1,200 161,315 385,264 _ 595,738 202,800 359,200 Transfers Transfers in-#101(street admin) 39,700 39,700 39,700 39,700 0 Transfers in-#105(h/m tax-CP advertising) 30,000 30,000 15,778 30,000 30,000 Transfers in-#106(solid waste repayment) 40,425 40,425 40,425 40,425 40,422 Transfers in-#310 0 198,734 498,500 0 0 Transfers in-#402(storm admin) 13,400 13,400 13,400 13,400 0 Transfers in-#501 0 0 77,000 0 0 123,525 322,259 684,803 123,525 70,422 Total General Fund Revenue 39,384,771 42,983,042 44,751,345 43,048,025 45,537,322 44 CITY OF SPOKANE VALLEY,WA 2019 Budget-Other Funds Detail Revenues by Type 2015 2016 2017 2018 2019 Proposed Actual Actual Actual Budget Budget 101-Street Fund Utilities tax 2,257,184 2,069,309 1,982,391 1,900,000 1,700,000 Motor Vehicle Fuel(Gas)Tax 1,935,629 2,005,909 2,032,175 2,052,400 2,092,300 Multimodal Transportation Revenue 0 95,509 98,994 133,800 132,200 Right-of-Way Maintenance Fee 0 56,035 136,112 70,000 70,000 Investment Interest 3,212 5,886 7,843 6,000 6,000 Other Miscellaneous Revenues&Grants 25,167 71,679 135,826 10,000 10,000 Nonrecurring Transfer in-#312 0 0 0 0 907,544 4,221,192 4,304,327 4,393,340 4,172,200 4,918,044 103-Paths&Trails Fund Motor Vehicle Fuel(Gas)Tax 8,164 8,460 8,571 8,700 8,800 Investment interest 62 170 370 0 400 8,226 8,630 8,941 8,700 9,200 104-Hotel/Motel Tax-Tourism Facilities Fund Hotel/Motel Tax 182,236 387,333 400,509 377,000 390,000 Transfers in-#105 0 0 250,000 250,000 0 Investment interest 111 1,552 6,854 1,500 7,000 182,347 388,885 657,363 628,500 397,000 105-Hotel/Motel Tax Fund Hotel/Motel Tax 581,237 596,373 615,981 580,000 600,000 Investment Interest 484 1,274 3,549 1,000 2,000 581,721_ 597,647 619,529 581,000 602,000 106-Solid Waste Solid Waste Administrative fee 125,000 125,000 172,550 225,000 225,000 Solid Waste Road Wear fee 0 0 0 1,000,000 1,500,000 Grant Proceeds 0 17,677 59,389 0 0 Investment Interest 0 184 1,335 0 1,300 125,000 142,861 233,274 1,225,000 1,726,300 107-PEG Fund Comcast PEG contribution 81,806 79,427 76,471 79,000 76,000 Investment Interest 0 784 1,676 0 0 Transfers in-#001 267,333 0 0 0 0 349,139 80,211 78,147 79,000 76,000 120-CenterPlace Operating Reserve Fund Investment Interest 0 0 0 0 0 0 0 0 0 0 121-Service Level Stabilization Reserve Fund Investment Interest 8,590 21,636 16,575 0 0 8,590 21,636 16,575 0 0 122-Winter Weather Reserve Fund FEMA Grant Proceeds 0 38,804 3,170 0 0 Investment Interest 833 1,961 3,712 3,500 5,000 Transfer in-#001 0 15,043 258,000 490,000 0 833 55,808 264,882 493,500 5,000 123-Civic Facilities Replacement Fund Investment Interest 1,323 696 0 0 0 1,323 696 0 0 0 204-Debt Service-LTGO 03 Fund Facilities District Revenue 373,800 380,300 379,750 414,050 432,150 Transfers in-#001 0 198,734 397,350 399,350 401,250 Transfers in-#301 82,150 83,400 79,426 82,000 82,475 Transfers in-#302 82,150 83,400 79,425 82,000 82,475 538,100 745,834 935,951 977,400 998,350 45 CITY OF SPOKANE VALLEY,WA 2019 Budget-Other Funds Detail Revenues by Type 2015 2016 2017 2018 2019 Proposed Actual Actual Actual Budget Budget 301-REET 1 Capital Proiects Fund REET 1-1st Quarter Percent 1,065,789 1,176,911 1,503,787 1,500,000 1,000,000 Investment Interest 1,653 7,609 21,599 7,500 22,000 1,067,442 1,184,520 1,525,386 1,507,500 1,022,000 302-REET 2 Capital Projects Fund REET 2-2nd Quarter Percent 1,065,789 1,176,911 1,503,787 1,500,000 1,000,000 Investment Interest 1,662 8,189 25,594 8,000 25,000 1,067,451 1,185,100 1,529,381 1,508,000 1,025,000 303-Street Capital Proiects Fund Grant Proceeds 8,223,959 4,951,033 3,499,888 7,981,145 4,408,681 Developer Contributions 363,981 151,629 124,488 33,032 35,700 Transfers in-#101 123,955 0 0 0 0 Transfers in-#301 Capital Projects 567,113 579,636 294,558 1,048,852 504,172 Transfers in-#302 Special Capital Projects 331,099 164,151 81,613 1,099,434 167,434 Transfers in-#312 Sullivan Rd W Bridge 42,730 2,022,865 455,465 0 0 Transfers in-#312 Euclid Ave-Flora to Barker 0 26,326 1,464,381 415,839 5,000 Transfers in-#312 8th&Carnahan Improvements 0 11,687 218,299 425,000 45,000 Transfers in-#312 Barker Corridor 0 0 0 148,488 267,000 9,652,837 7,907,327 6,138,693 11,151,790 5,432,987 309-Parks Capital Proiects Fund Grant Proceeds 1,560 209,784 1,657,548 1,722,925 572,308 Contributions and Donations 0 0 0 0 0 Investment Interest 813 723 215 0 0 Transfers in-#001 115,575 230,300 160,000 560,000 1,320,000 Transfers in-#103 0 9,300 0 50,000 0 Transfers in-#105 68,000 58,388 0 0 0 Transfers in-#312 524,812 37,132 277,437 324,100 14,788 710,760 545,627 2,095,200 2,657,025 1,907,096 310-Civic Facilities Capital Projects Fund Investment Interest 2,113 5,145 9,029 5,900 9,000 Transfers in-#001 Future C.H.bond pmt>$424.6k lease pmt 67,600 67,600 0 0 0 Future C.H.o&m costs 271,700 276,600 0 0 0 Transfers in-#312 58,324 0 0 0 0 399,737 349,345 9,029 5,900 9,000 311-Pavement Preservation Fund Grants 835,224 1,654,698 89,209 1,572,500 1,820,000 Investment Interest 3,389 7,519 20,536 0 0 Transfers in-#001 920,000 943,800 953,200 962,700 972,300 Transfers in-#101 206,618 67,342 67,342 67,342 0 Transfers in-#106 0 0 0 1,000,000 1,500,000 Transfers in-#123 616,284 559,804 0 0 0 Transfers in-#301 251,049 365,286 660,479 685,329 734,300 Transfers in-#302 251,049 365,286 660,479 685,329 734,300 3,083,613 3,963,735 2,451,245 4,973,200 5,760,900 312-Capital Reserve Fund Investment Interest 0 16,028 52,170 16,000 50,000 Transfers in-#001 1,783,512 1,828,723 3,003,929 3,795,429 0 Transfers in-#313 0 0 0 74,960 0 1,783,512 1,844,751 3,056,099 3,886,389 50,000 313-City Hall Construction Fund Investment Interest 0 26,536 18,894 0 0 2016 LTGO Bond Issue Proceeds/Premium 0 7,946,088 0 0 0 Transfers in-#312 5,162,764 0 0 0 0 5,162,764 7,972,624 18,894 0 0 46 CITY OF SPOKANE VALLEY,WA 2019 Budget-Other Funds Detail Revenues by Type 2015 2016 2017 2018 2019 Proposed Actual Actual Actual Budget Budget 314-Railroad Grade Separation Proiects Fund Grant Proceeds 0 0 87,610 1,664,941 3,750,000 Investment Interest 0 0 4,072 0 0 Transfers in-#001 0 3,893 1,200,000 0 0 Transfers in-#301 0 12,975 111,941 463,836 50,000 Transfers in-#312 0 0 482,216 4,809 0 0 16,868 1,885,839 2,133,586 3,800,000 402-Stormwater Management Fund Stormwater Management Fee 1,861,368 1,898,210 1,895,033 1,870,000 1,890,000 Grant Proceeds-Nonrecurring 423,332 61,403 370,207 65,000 106,000 Investment Interest 2,455 7,690 20,564 7,500 20,000 Transfers in-#403 120,000 0 0 0 0 2,407,155 1,967,303 2285,804 1,942,500 2,016,000 403-Aquifer Protection Area Fund Spokane County 533,593 388,590 452,110 460,000 460,000 Grant Proceeds 1,036,603 0 58,722 445,955 317,200 Investment Interest 0 2,590 10,238 0 10,000 1,570,196 391,180 521,070 905,955 787,200 501-Equipment Rental&Replacement Fund Interfund Vehicle Lease 35,544 106,000 146,429 141,929 141,929 Transfers in-#001(CenterPlace kitchen reserve) 0 0 36,600 36,600 36,600 Investment Interest 1,449 4,395 9,651 4,000 9,500 36,993 110,395 192,680 182,529 188,029 502-Risk Management Fund Transfers in-#001 325,000 325,000 350,000 370,000 390,000 Investment Interest 8 423 1,107 0 0 325,008 325,423 351,107 370,000 390,000 Total of"Other Fund"Revenues 33,283,940 34,110,733 29,268,428 39,389,674 31,120,106 General Fund Revenues 39,384,771 42,983,042 44,751,345 43,048,025 45,537,322 Total Revenues 72,668,711 77,093,776 74,019,773 82,437,699 76,657,428 47 CITY OF SPOKANE VALLEY,WA 2019 Budget Expenditures by Fund and Department General Fund Council $ 545,903 City Manager 948,835 City Attorney 610,549 Public Safety 25,977,304 Operations&Administrative Deputy City Manager 267,044 Finance 1,402,497 Human Resources 297,421 City Hall Operations and Maintenance 290,543 Community&Public Works Engineering 1,816,141 Economic Development 1,043,772 Building and Planning 2,248,698 Parks&Recreation Administration 335,958 Maintenance 893,500 Recreation 253,622 Aquatics 491,153 Senior Center 101,215 CenterPlace 949,414 General Government 4,559,800 Total General Fund $ 43,033,369 Other Funds 101 Street Fund $ 4,918,044 103 Paths&Trails Fund 0 104 Hotel/Motel Tax-Tourism Facilities Fund 0 105 Hotel/Motel Tax Fund 655,000 106 Solid Waste 1,726,300 107 PEG Fund 71,100 120 CenterPlace Operating Reserve Fund 0 121 Service Level Stabilization Fund 0 122 Winter Weather Reserve Fund 500,000 204 LTGO Bond Debt Service Fund 998,350 301 REET 1 Capital Projects Fund 1,370,947 302 REET 2 Capital Projects Fund 984,209 303 Street Capital Projects Fund 5,432,987 309 Parks Capital Projects Fund 1,812,095 310 Civic Facilities Capital Projects Fund 0 311 Pavement Preservation 7,288,200 312 Capital Reserve Fund 1,239,332 313 City Hall Construction Fund 0 314 Railroad Grade Separation Projects 4,700,000 402 Stormwater Management Fund 2,297,332 403 Aquifer Protection Area 832,600 501 Equipment Rental&Replacement(ER&R) 20,000 502 Risk Management Fund 390,000 Total Other Funds $ 35,236,496 Total All Funds $ 78,269,865 48 CITY OF SPOKANE VALLEY, WA 2019 General Fund Expenditures $43,033,369 Public Safety 60% Community&Public Works 12% s% r:= City Hall Operations 1% Operation&Administrative 4% Parks&Recreation Council&Executive 7% 5% General Government 11% 49 CITY OF SPOKANE VALLEY, WA 2019 City Wide Expenditures $ 78,269,865 Capital Projects Funds 29% General Government 6% Risk Management 1% Tourism Promotion 1% -Debt Service 1% • &APA Funds Street Fund 4v3 Stormwater 6% z - 4 Other Activities 3% Parks&Recreation 4% Community&Public Works 7% Council/Executive/Ops& Admin 5% Public Safety 33% 50 CITY OF SPOKANE VALLEY,WA 2019 Budget General Fund Expenditures by Department and Type Wages,Benefits Services& Capital &Payroll Taxes Supplies Charges Intergovernmental Interfund Expenditures Total City Council $ 208,417 $ 4,950 $ 332,536 $ 0 $ 0 $ 0 $ 545,903 City Manager 871,845 4,300 72,690 0 0 0 948,835 City Attorney 521,744 2,351 86,454 0 0 0 610,549 Public Safety 12,000 25,750 758,266 25,141,288 0 40,000 25,977,304 Operations&Administrative Deputy City Manager 220,619 2,000 44,425 0 0 0 267,044 Finance 1,367,927 6,450 28,120 0 0 0 1,402,497 Human Resources 265,058 1,130 31,233 0 0 0 297,421 City Hall Operations and Maintenance 89,488 30,500 170,555 0 0 0 290,543 Community&Public Works Engineering 1,602,572 27,100 186,469 0 0 0 1,816,141 Economic Development 658,977 3,000 356,795 25,000 0 0 1,043,772 Building and Planning 1,893,743 44,200 285,755 25,000 0 0 2,248,698 Parks&Recreation Administration 267,703 4,750 63,505 0 0 0 335,958 Maintenance 0 4,000 889,500 0 0 0 893,500 Recreation 160,667 8,650 84,305 0 0 0 253,622 Aquatics 0 2,000 489,153 0 0 0 491,153 Senior Center 94,715 1,600 4,900 0 0 0 101,215 CenterPlace 534,355 70,774 344,285 0 0 0 949,414 General Government 0 86,350 841,900 339,400 3,120,150 172,000 4,559,800 Total $ 8,769,830 $ 329,855 $ 5,070,846 $ 25,530,688 $ 3,120,150 $ 212,000 $ 43,033,369 51 CITY OF SPOKANE VALLEY,WA 2019 Budget General Fund Department Changes from 2018 to 2019 _ Difference Between 2018 2019 2018 and 2019 Amended Increase Decrease) Budget Budget $ City Council Wages, Payroll Taxes&Benefits 233,194 208,417 (24,777) (10.63%) Supplies 4,950 4,950 0 0.00% Services&Charges 311,943 332,536 20,593 6.60% Total 550,087 545,903 (4,184) (0.76%) City Manager Wages,Payroll Taxes&Benefits 877,105 871,845 (5,260) (0.60%) Supplies 4,300 9,100 4,800 111.63% Services&Charges 75,295 67,890 (7,405) (9.83%) Total 956,700 948,835 (7,865) (0.82%) City Attorney Wages,Payroll Taxes&Benefits 506,481 521,744 15,263 3.01% Supplies 1,951 2,351 400 20.50% Services&Charges 93,775 86,454 (7,321) (7.81%) Total 602,207 610,549 8,342 1.39% Public Safety Non-Departmental(Fines&Forfeits) 579,750 589,150 9,400 1.62% Wages/Payroll Taxes/Benefits 3,000 12,000 9,000 300.00% Supplies 25,500 25,750 250 0.98% Other Services and Charges 296,715 748,266 451,551 152.18% Intergovernmental Services 24,559,286 24,552,138 (7,148) (0.03%) Total 25,464,251 25,927,304 463,053 1.82% Deputy City Manager Wages,Payroll Taxes&Benefits 358,493 220,619 (137,874) (38.46%) Supplies 2,000 2,000 0 0.00% Services&Charges 90,398 44,425 (45,973) (50.86%) Total 450,891 267,044 (183,847) (40.77%) Finance/IT Wages, Payroll Taxes&Benefits 1,308,614 1,367,927 59,313 4.53% Supplies 6,450 6,450 0 0.00% Services&Charges 24,910 28,120 3,210 12.89% Total 1,339,974 1,402,497 62,523 4.67% Human Resources Wages,Payroll Taxes&Benefits 254,577 265,058 10,481 4.12% Supplies 580 1,130 550 94.83% Services&Charges 25,258 31,233 5,975 23.66% Total 280,415 297,421 17,006 6.06% City Hall Operations&Maintenance Wages,Payroll Taxes&Benefits 100,943 89,488 (11,455) (11.35%) Supplies 30,000 30,500 500 1.67% Services&Charges 175,328 _ 170,555 (4,773) (2.72%) Total 306,271 290,543 (15,728) (5.14%) Community&Public Works-Engineering Wages,Payroll Taxes&Benefits 1,480,905 1,602,572 121,667 8.22% Supplies 27,750 27,100 (650) (2.34%) Services&Charges 120,638 186,469 65,831 54.57% Total 1,629,293 1,816,141 186,848 11.47% Community&Public Works-Economic Dev Wages, Payroll Taxes&Benefits 679,852 658,977 (20,875) (3.07%) Supplies 2,500 3,000 500 20.00% Services&Charges 288,518 356,795 68,277 23.66% Total 970,870 1,018,772 47,902 4.93% (Continued to next page) 52 CITY OF SPOKANE VALLEY,WA 2019 Budget General Fund Department Changes from 2018 to 2019 Difference Between 2018 2019 2018 and 2019 Amended Increase Decrease) Budget Budget $ ok (Continued from previous page) Community&Public Works-Building&Planning Wages,Payroll Taxes&Benefits 1,820,359 1,893,743 73,384 4.03% Supplies 44,200 44,200 0 0.00% Services&Charges 325,228 285,755 (39,473) (12.14%) Intergovernmental Services 20,000 25,000 5,000 25.00% Total 2,209,787 2,248,698 38,911 1.76% Parks&Rec-Admin Wages,Payroll Taxes&Benefits 254,133 267,703 13,570 5.34% Supplies 7,600 4,750 (2,850) (37.50%) Services&Charges 39,578 63,505 23,927 60.46% Total 301,311 335,958 34,647 11.50% Parks&Rec-Maintenance Wages,Payroll Taxes&Benefits 0 0 0 0.00% Supplies 7,500 4,000 (3,500) (46.67%) Services&Charges 856,475 889,500 33,025 3.86% Total 863,975 893,500 29,525 3.42% Parks&Rec-Recreation Wages,Payroll Taxes&Benefits 189,274 160,667 (28,607) (15.11%) Supplies 7,750 8,650 900 11.61% Services&Charges 63,778 84,305 20,527 32.19% Total 260,802 253,622 (7,180) (2.75%) Parks&Rec-Aquatics Wages,Payroll Taxes&Benefits 0 0 0 0.00% Supplies 3,300 2,000 (1,300) (39.39%) Services&Charges 512,600 489,153 (23,447) (4.57%) Total 515,900 491,153 (24,747) (4.80%) Parks&Rec-Senior Center Wages,Payroll Taxes&Benefits 91,729 94,715 2,986 3.26% Supplies 1,600 1,600 0 0.00% Services&Charges 4,900 4,900 0 0.00% Total 98,229 101,215 2,986 3.04% Parks&Rec-CenterPlace Wages,Payroll Taxes&Benefits 503,499 534,355 30,856 6.13% Supplies 73,524 70,774 (2,750) (3.74%) Services&Charges 333,673 344,285 10,612 3.18% Total 910,696 949,414 38,718 4.25% General Government Wages,Payroll Taxes&Benefits 0 0 0 0.00% Supplies 104,450 86,350 (18,100) (17.33%) Services&Charges 754,660 841,900 87,240 11.56% Intergovernmental Services 332,500 339,400 6,900 2.08% Capital outlays 70,000 65,000 (5,000) (7.14%) Total 1,261,610 1,332,650 71,040 5.63% Transfers out-#204 399,350 401,250 1,900 0.48% Transfers out-#309 160,000 160,000 0 0.00% Transfers out-#311 Pavement Preservation 962,700 972,300 9,600 1.00% Transfers out-#501 36,600 36,600 0 0.00% Transfers out-#502 370,000 390,000 20,000 5.41% Total recurring expenditures 40,901,919 41,691,369 789,450 1.93% I (Continued to next page)I 53 CITY OF SPOKANE VALLEY,WA 2019 Budget General Fund Department Changes from 2018 to 2019 Difference Between 2018 2019 2018 and 2019 Amended Increase f Decrease) Budget Budget $ % I(Continued from previous page) 'Summary by Category I Wages,Payroll Taxes&Benefits 8,662,158 8,769,830 107,672 1.24% Supplies 355,905 334,655 (21,250) (5.97%) Services&Charges 4,393,670 5,056,046 662,376 15.08% Transfers out-#204 399,350 401,250 1,900 0.48% Transfers out-#309 160,000 160,000 0 0.00% Transfers out-#311 962,700 972,300 9,600 1.00% Transfers out-#501 36,600 36,600 0 0.00% Transfers out-#502 370,000 390,000 20,000 5.41% Non-Departmental(fines&forfeits) 579,750 589,150 9,400 1.62% Intergovernmental Svc(public safety) 24,559,286 24,552,138 (7,148) (0.03%) Intergovernmental Svc 352,500 364,400 11,900 3.38% Capital outlay 70,000 65,000 (5,000) (7.14%) 40,901,919 41,691,369 789,450 1.93% • 54 Fund:001 General Fund Spokane Valley Dept: 011 Legislative Branch 2019 Budget This department accounts for the cost of providing effective elected representation of the citizenry in the governing body. The Council makes policy decisions for the City and is accountable to Spokane Valley citizens by making decisions regarding how resources are allocated,the appropriate levels of service,and establishing goals and policies for the organization. Accomplishments for 2018 • Continued to work with state and federal legislators towards obtaining financial assistance for the Barker Grade Separation Project and during 2018 reached the point of fully funding the project with the receipt of both a$6 million NHFP Grant and a$9 million TIGER grant. • Selected a specific design alternative for the Barker Grade Separation Project and contracted with a consultant to begin the final design. • Worked with Federal legislators and BNSF to determine the location and spacing of a second mainline track that impacts the Pines Grade Separation Project. • Continued discussions focused on developing a sustainable plan to finance the City's Pavement Preservation Program including Street O&M Fund#101 and Pavement Preservation Fund#311. • Adopted a 2019 Legislative Agenda. • Pursued state financial assistance to address transportation concerns on the Barker Corridor and received a FMSIB grant in the amount of 20%or$1,680,000 of the projected$8.4 million cost to complete the section stretching from the Spokane River to SR-290. • Accepted the final design for Appleway Trail Amenities between University and Pines. • Adopted a balanced 2019 Budget and for the tenth consecutive year did so without taking the 1%increase in property taxes that is allowed by State Law. Goals for 2019 • Work with state and federal legislators towards advancing the concepts outlined in the Bridging the Valley study including obtaining financial assistance for the Pines and Park Grade Separation Projects. • Continue to pursue a plan to sustain the City's Pavement Preservation Program,to include sustained financing in Street O&M Fund#101 and Pavement Preservation Fund#311. • Pursue state and federal financial assistance to address transportation concerns along the entire Barker Corridor. • Continue with,and expand where possible economic development efforts including the retention and expansion of existing businesses and recruitment of new businesses. • Continue to foster relationships with federal,state,county and local legislators. • Pursue financing for Browns Park,Balfour Park and Appleway Trail amenities,and continue acquisition of park land. • Update the Bike and Pedestrian Masterplan to include trail extensions from the Appleway Trail connections between the Appleway Trail,Balfour Park,Dishman Hills and the Centennial Trail to create a continuous loop for users. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Mayor 1.0 1.0 1.0 1.0 1.0 Council 6.0 6.0 6.0 6.0 6.0 Total FTEs 7.0 7.0 7.0 7.0 7.0 Budget Detail Wages,Payroll Taxes&Benefits $ 206,705 $ 204,931 $ 219,902 $ 233,194 $ 208,417 Supplies 2,908 4,535 1,974 4,950 4,950 Services&Charges 157,665 166,826 186,243 311,943 332,536 Total Legislative Branch $ 367,278 $ 376,292 $ 408,119 $ 550,087 $ 545,903 55 Fund:001 General Fund Spokane Valley Dept:013 Executive Branch 2019 Budget 013-City Manager Division This department is accountable to the City Council for the operational results of the organization,effective support of elected officials in achieving their goals,fulfillment of the statutory requirements of the City Manager,implementation of City Council policies,and provision of a communication linkage between citizens,the City Council,City departments, and other government agencies. Accomplishments for 2018 • Worked to support City Council's 2018 Goals as referenced in the Legislative Branch Budget. • Worked with all City departments to update the 2019 Business Plan that is a guide to the development of the 2019 Budget which is accomplished by linking community priorities,financial projections and City Council goals. • Prepared a 2019 Budget that maintains existing levels of service and provides modest program enhancements with an increase to General Fund recurring expenditures of just 1.90%. • Worked with Council to prepared a 2019 Council Legislative Agenda that was discussed by Council on three separate occasions. This was followed by a separate meeting with our 4th District Legislative Delegation where Councilmembers and Legislators discussed areas of common interest,including our legislative agenda. • Worked with State Legislators and Lobbyists on behalf of City interests. • Continued to work with state and federal legislators towards obtaining financial assistance for the Barker Grade Separation Project and during 2018 reached the point of fully funding the project with the receipt of both a$6 million NHFP Grant and a$9 million TIGER grant. • Worked with Council and Staff through a process that lead to the selection of a specific design alternative for the the Barker Grade Separation Project and lead to the development of a contract with a design consultant to begin the final design. • Worked with Council,Federal legislators and BNSF to determine the location and spacing of a second mainline track that impacts the Pines Grade Separation Project. • Continued discussions focused on developing a sustainable plan to finance the City's Pavement Preservation Program including Street O&M Fund#101 and Pavement Preservation Fund#311. • Worked with Council and Staff to pursue state financial assistance to address transportation concerns on the Barker Corridor which lead to a FMSIB grant in the amount of 20%or$1,680,000 of the projected$8.4 million cost to complete the section stretching from the Spokane River to SR-290. Goals for 2019 • Work to support City Council's 2019 Goals as referenced under the Legislative Branch Budget. • Present Council with a balanced 2020 Budget. • Work with Federal and State Legislators and Lobbyists on behalf of the interests of our City. • Prepare the 2020 Legislative Agenda for Council consideration. • Continue efforts to support economic development. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents City Manager 1.0 1.0 1.0 1.0 1.0 City Clerk 1.0 1.0 1.0 1.0 1.0 Deputy City Clerk 1.0 1.0 1.0 1.0 1.0 Administrative Analyst 0.0 0.0 0.0 1.0 1.0 Senior Administrative Analyst 0.0 0.0 0.0 1.0 1.0 Administrative Assistant(CC) 1.0 1.0 1.0 1.0 0.5 Executive Assistant(CM) 1.0 1.0 1.0 1.0 1.0 Total FTEs 5.0 5.0 5.0 7.0 6.5 Budget Detail Wages,Payroll Taxes&Benefits $ 604,629 $ 785,184 $ 580,529 $ 877,105 $ 871,845 Supplies 2,169 1,014 3,569 4,300 4,300 Services&Charges 58,210 30,803 26,059 74,840 72,690 Nonrecurring expenditures 3,160 242,561 0 0 0 Total City Manager Division $ 668,168 $ 1,059,562 $ 610,157 $ 956,245 $ 948,835 56 Fund:001 General Fund Spokane Valley Dept:013 Executive Branch 2019 Budget 015-City Attorney Division Accomplishments for 2018 • Continued to advise Community and Public Works regarding Painted Hills. • Assist in acquiring parcels at 8th and Carnahan regarding offset intersection. • Provide training to Council and staff on records,open meetings,and contracts. • Assisted in negotiating,drafting,and executing amended solid waste collection services agreement to implement city fee for street preservation and maintenance purposes. • Assisted in drafting,adopting,and implementing multiple small cell franchises and required small cell regulations. • Assisted in drafting,adoption,and implementation of criminal chronic nuisance regulations. • Hired new half-time attorney for Code Enforcement;significant progress on case backlog. • Assisted in adoption of 2018 Comprehensive Plan amendments,including winning SEPA appeal challenge. • Assisted with securing funding for Barker/Trent Grade Separation project. • Assisted in drafting and accomplishing goals on the 2018 and 2019 Legislative Agendas. • Assisted in updating park regulations in the City Code. • Participated on management team for 2019-2021 labor agreement. • Assisted in negotiations for agreement with Arts Council. • Assisted on numerous economic development,land use,and public work issues. Goals for 2019 • Have a fully operational office that proactively assists in program development,advises all departments on legal issues in a timely manner and manages all potential and existing litigation. • Work with Community and Public Works and Finance in identifying and implementing economic development options. • Assist other departments in analyzing and mapping existing processes to determine compliance with laws and whether higher levels of customer service can be achieved. • Assist Council and staff in accomplishing items on the 2018 Legislative Agenda. Budget Summary 2015 2016 2017 2018 2019 Actual _ Actual Actual Budget Budget Personnel-FTE Equivalents City Attorney 1.0 1.0 1.0 1.0 1.0 Deputy City Attorney 1.0 1.0 1.0 1.0 1.0 Attorney 0.0 0.0 0.0 0.5 0.5 Administrative Assistant-Legal 1.0 1.0 1.0 1.0 1.0 Total FTEs 3.0 3.0 3.0 3.5 3.5 Interns 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 374,113 $ 407,008 $ 411,988 $ 506,481 $ 521,744 Supplies 700 623 1,030 1,951 2,351 Services&Charges 83,954 80,362 66,130 93,775 86,454 Nonrecurring expenditures 0 0 0 4,809 0 Total City Attorney Division $ 458,767 $ 487,993 $ 479,148 $ 607,016 $ 610,549 57 Fund:001 General Fund Spokane Valley Dept:016 Public Safety 2019 Budget The Public Safety department budget provides funds for the protection of persons and property in the city. The City contracts with Spokane County for law enforcement,district court,prosecutor services, public defender services,probation services,jail and animal control services. See following page for detail information on each budgeted section. Recurring Expenditures: Judicial System-The Spokane County District Court is contracted $ 2,256,026 to provide municipal court services. The contract provides for the services of judge and court commissioner with related support staff.Budgeted amount also includes jury management fees. Law Enforcement- The Spokane County Sheriffs Office is 21,316,548 responsible for maintaining law and order and providing police services to the community under the direction of the Police Chief. The office provides for the preservation of life,protection of property,and reduction of crime. Jail System-Spokane County provides jail and probation 1,395,580 services for persons sentenced by any City of Spokane Valley Municipal Court Judge for violating laws of the city or state. Animal Control-Spokane County will provide animal control 350,000 services to include licensing,care and treatment of lost or stray animals, and response to potentially dangerous animal confrontations. Non-Departmental Fines and forfeitures to the State of Washington 589,150 Grant expenditures 20,000 Total Recurring Expenditures 25,927,304 Nonrecurring Expenditures: Building repair and office furniture 50,000 Total Recurring and Nonrecurring Expenditures $25,977,304 58 City of Spokane Valley 2019 Budget 016-Public Safety 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Recurring: Judicial System: District Court Contract $ 656,129 $ 658,049 $ 712,168 $ 679,191 $ 855,539 Public Defender Contract 710,289 703,665 697,986 785,359 816,167 Prosecutor Contract 479,782 535,121 464,250 558,234 463,968 Pretrial Services Contract 131,041 120,722 107,807 139,892 120,352 Subtotal Judicial System 1,977,241 2,017,557 1,982,211 2,162,676 2,256,026 Law Enforcement System: Sheriff Contract 18,205,133 18,812,096 17,792,178 20,408,504 20,444,845 Emergency Management Contract 88,070 87,718 97,094 99,629 105,687 Wages,Payroll Taxes&Benefits 2,617 2,376 2,819 3,000 12,000 Operating Supplies 2,144 3,092 3,509 3,500 3,750 Repair&Maintenance.Supplies 2,007 994 1,202 2,000 2,000 Professional Services 1,334 0 0 0 0 Postage 0 3,316 0 0 0 Electricity/Gas 18,953 16,976 18,283 20,000 20,000 Water 1,275 1,366 1,621 1,500 1,750 Sewer 995 2,307 2,102 2,500 2,200 Waste Disposal 3,372 3,400 3,442 3,500 3,600 Law Enf.Bldg Maintenance Contract 76,076 61,682 74,108 68,500 70,000 Taxes and Assessments 715 715 715 715 716 Miscellaneous Services/Contingency 550 132 0 200,000 650,000 False Alarm Charges&Fees 48,419 43,792 3,135 0 0 Bank Fees 9,418 8,789 2,333 0 0 Subtotal Law Enforcement System 18,461,078 19,048,751 18,002,541 20,813,348 21,316,548 Jail System: Jail Contract 1,213,502 1,437,784 1,331,721 1,588,841 1,395,580 Subtotal Jail System 1,213,502 1,437,784 1,331,721 1,588,841 1,395,580 Other: Fines&Forfeitures State Remittance 587,446 561,476 464,056 579,750 589,150 Animal Control Contract 290,228 291,209 293,425 299,636 350,000 Non-Capital Equipment for JAG Grant 4,579 0 0 20,000 20,000 Settle&Adjust (753,653) (441,761) (1,087,807) 0 0 Travel/Mileage/Meals 74 0 0 0 0 Drive Hammered-Get Nailed Grant 8,743 0 0 0 0 Office Furniture&Equipment 36,823 67,187 0 0 0 Distracted Driving 331 0 0 0 0 Click it or Ticket 714 0 0 0 0 TZT seatbelt patrols 724 0 0 0 0 Subtotal Other 176,009 478,111 (330,326) 899,386 959,150 Subtotal Recurring 21,827,830 22,982,203 20,986,147 25,464,251 25,927,304 Nonrecurring: Building Repair and Maintenance 8,863 49,004 0 0 10,000 Building&Structures 224,244 6,343 0 0 0 Office Furniture&Equipment 0 0 0 0 40,000 Equipment Repair and Maintenance 0 1,586 0 0 0 LEC Labor Contract Settlement 0 0 323,445 0 0 Full Facility Generator 0 0 0 100,000 0 Capital outlay-CAD/RMS 294,575 177,126 131,018 0 0 Subtotal Nonrecurring 527,682 234,059 454,463 100,000 50,000 Total Public Safety $22,355,512 $23,216,262 $21,440,610 $25,564,251 $25,977,304 59 City of Spokane Valley 2019 Budgeted Contract Expenditures $25,000,000 20,444,845 $20,000,000 $15,000,000 $10,000,000 $5,000,000 1,395,580 $855,539 a i _ )05,687. IMTM 350,000 $- District Court Public Defender Prosecutor Sheriff Contract Emergency Law Enf.Bldg Jail Contract Animal Control Contract Contract Contract Management Maintenance Contract Contract Contract 60 Fund:001 General Fund Spokane Valley Dept:018 Operation&Administrative Services 2019 Budget The Operations&Administrative Services Department is composed of three divisions,the Deputy City Manager Division, the Finance Division,and the Human Resources Division. 013-Deputy City Manager Division The Deputy City Manager(DCM)supervises the Community and Public Works Department,assists the City Manager in organizing and directing the other operations of the City,and assumes the duties of City Manager in his/her absence. Accomplishments for 2018 • Supported the 2018 Goals of the Legislative and Executive Branch. • Worked with the City Manager and Staff to develop the 2019 Business Plan. • Continued to improve staff communication and efficiency as part of the 2017 reorganization. • Completed the recruitment processes for ongoing large industrial projects. • Completed the designs for the Barker Grade Separation Projects. Goals for 2019 • Support the 2019 Goals of the Legislative and Executive Branch. • Continue work on acquiring funds and completing design for the Pines Road Grade Separation Project. • Complete the implementation of the Pavement Management Program. • Implement marketing strategies to attract and retain businesses and increase tourism. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Deputy City Manager 1.0 1.0 1.0 1.0 1.0 Senior Administrative Analyst 1.0 1.0 1.0 0.0 0.0 Public Information Officer 1.0 1.0 1.0 0.0 0.0 Administrative Analyst 1.0 1.0 1.0 0.0 0.0 Office AssistantI 1.0 1.0 1.0 1.0 0.0 Office Assistant II 1.0 1.0 1.0 1.0 0.0 Total FTEs 6.0 6.0 6.0 3.0 1.0 Intern 1.0 1.0 1.0 0.0 0.0 Budget Detail Wages,Payroll Taxes&Benefits $ 612,576 $ 518,914 $ 637,606 $ 358,493 $ 220,619 Supplies 1,089 1,137 1,277 2,000 2,000 Services&Charges 59,134 89,147 52,555 90,398 44,425 Nonrecurring Software Purchase(0-Alert) 0 0 0 11,700 0 Total Deputy City Manager Division $ 672,799 $ 609,198 $ 691,438 $ 462,591 $ 267,044 61 Fund:001 General Fund Spokane Valley Dept:018 Operation&Administrative Services 2019 Budget 014:Finance Division The Finance Division provides financial management services for all City departments. Programs include accounting and financial reporting,payroll,accounts payable,purchasing,budgeting and financial planning,treasury,information technology and investments.The division is also responsible for generating and analyzing financial data related to the City's operations. The department prepares Finance Activity Reports for review by the City Manager and City Council as well as the Comprehensive Annual Financial Report(CAFR)that is subject to an annual audit by the Washington State Auditor's Office. Accomplishments for 2018 • Implemented audit recommendations. • Completed the 2017 CAFR by May 30,2018,and received a"clean audit opinion". • Maintained consistent levels of service in payroll,accounts payable,budget development,periodic financial report preparation,and information technology services. • Continued with the ongoing process of refining the replacement program for IT resources. Goals for 2019 • Maintain a consistent level of service in payroll,accounts payable, budget development,periodic and annual financial report preparation and information technology services. • Work with Finance staff to cross-train position responsibilities and knowledge base where possible. The Finance department will implement further cross training procedures among department personnel to provide adequate coverage if or when unforeseeable circumstances arise. • Provide adequate training opportunities to allow staff members to remain current with changes in pronouncements by the Governmental Accounting Standards Board(GASB),changes in the Eden financial management system,and changes in the electronic technology that allows all City employees to be more efficient and effective. • Continue with the ongoing process of refining the replacement program for IT hardware resources including server hardware, network hardware,printers,and network-based appliances(firewalls,email backup, network switches, intrusion prevention hardware,etc.),desktop computers,and the phone system.This will continue to be the foundation for future budget developments and in large part dictate operational workload through the course of the next year. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Finance Director 1.00 1.00 1.00 1.00 1.00 Accounting Manager 1.00 1.00 1.00 1.00 1.00 Accountant/Budget Analyst 3.75 3.75 3.75 3.75 3.75 Accounting Technician 2.00 2.00 2.00 2.00 2.00 IT Specialist 2.00 2.00 3.00 3.00 3.00 GIS/Database Administrator 1.00 1.00 1.00 1.00 1.00 Help Desk Technician 1.00 1.00 0.00 0.00 0.00 Total FTEs 11.75 11.75 11.75 11.75 11.75 Budget Detail Wages,Payroll Taxes&Benefits $ 1,028,666 $ 1,149,070 $ 1,209,761 $ 1,308,614 $ 1,367,927 Supplies 2,826 5,147 3,507 6,450 6,450 Services&Charges 30,817 19,181 20,764 24,910 28,120 Total Finance Division $ 1,062,309 $ 1,173,398 $ 1,234,032 $ 1,339,974 $ 1,402,497 62 Fund:001 General Fund Spokane Valley Dept:018 Operation&Administrative Services 2019 Budget 016-Human Resources Division Human Resources(FIR)is administered through the City Manager. The HR operation provides services in compensation, benefits,training and organizational development,staffing,employee relations,and communications.The Human Resources Office also provides Risk Management services as well as Website and Mobile App design and maintenance Accomplishments for 2018 • Negotiate the successor bargaining agreement with the Labor Union representing City employees. • Respond to internal as well as external forces to recruit and maintain a high performing workforce. • Continue to support employee wellness through attainment of the AWC WellCity Award. • Support City departments in changes due to City Hall relocation. • Provide Employee Ethics training to City Staff. Goals for 2019 • Implement changes to personnel systems in response to collective bargaining. • Review employee policies for necessary changes. • Continue to review City practices for possible improvements and/or savings. • Continue to support employee wellness through attainment of the AWC WellCity Award. • Provide City-wide Harassment training to staff. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Human Resource Manager 1.0 1.0 1.0 1.0 1.0 Human Resource Technician 1.0 1.0 1.0 1.0 1.0 Total FTEs 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 216,518 $ 226,290 $ 235,127 $ 254,577 $ 265,058 Supplies 434 234 1,469 580 1,130 Services&Charges 18,648 15,710 15,947 25,258 31,233 Total Human Resources Division $ 235,600 $ 242,234 $ 252,543 $ 280,415 $ 297,421 63 Fund:001 General Fund Spokane Valley Dept:032 Public Works 2019 Budget The Public Works Department was consolidated into the new Community and Public Works Department during the City's reorganization effective April 1,2017.Historical information will be included here for comparison purposes until the prior years'activity drops off of the below Budget Summary. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Public Works Director 1.0 1.0 1.0 0 0 Administrative Assistant 2.0 2.0 2.0 0 0 Capital Improvements Program Manager 0.0 1.0 1.0 0 0 Engineer 1.0 1.0 1.0 0 0 Engineering Technician I 2.0 2.0 2.0 0 0 Engineering Technician II 1.0 1.0 1.0 0 0 Maint/Const Inspector 0.5 0.5 0.5 0 0 Planning Grants Engineer 0.375 0.375 0.375 0 0 Senior Engineer 1.0 0.0 0.0 0 0 Senior Engineer-Proj Mgmt 2.0 2.0 2.0 0 0 Total FTEs 10.875 10.875 10.875 0 0 Budget Detail Wages,Payroll Taxes&Benefits $ 684,666 $ 660,386 $ 658,439 $ 0 $ 0 Supplies 11,149 9,209 12,469 0 0 Services&Charges 42,913 102,733 88,179 0 0 Total Public Works $ 738,728 $ 772,328 $ 759,087 $ 0 $ 0 64 Fund:001 General Fund Spokane Valley Dept:033 City Hall Operations and Maintenance 2019 Budget The Community and Public Works Division provides management and oversight of the City Hall Operations and Maintenance Department.This department is responsible for the overall operations and maintenance of the new City Hall facility,the construction of which broke ground in June of 2016 and was completed in the Fall of 2017.The building is located on a 3.38 acre site at the southeast corner of Sprague Avenue and Dartmouth Road.The City Hall Operations and Maintenance Department will be responsible for,among other things,the grounds maintenance,janitorial services,and maintenance of the HVAC and other building systems.This department will also be responsible for the operations and maintenance of other City facilities,such as the Valley Precinct and the Street Maintenance Shop,as time allows. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Maintenance Worker-Facilities 0.0 0.0 1.0 1.0 1.0 Total FTEs 0.0 0.0 1.0 1.0 1.0 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 100,943 $ 89,488 Supplies 0 0 3,289 30,000 30,500 Services&Charges 0 0 55,159 175,328 170,555 Nonrecurring expenditures 0 0 36,509 0 0 Total Administrative Division $ 0 $ 0 $ 94,957 $ 306,271 $ 290,543 65 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2019 Budget The Community and Public Works Department is a new department as a result of the City's reorganization effective April 1,2017. This Department is a consolidation of the previous Public Works and Community and Economic Development Departments.It is comprised of three divisions:the Engineering Division,the Economic Development Division,and the Building and Planning Division. 041 -Engineering Division The Engineering Division combines Development Engineering from the previous Community&Economic Development Department with the engineering service provided by the previous Public Works Department.The Engineering Division includes the following functions: Capital Improvement Program(CIP)plans,designs,and constructs new facilities and maintains,preserves,and reconstructs existing facilities owned by the City of Spokane Valley. Development Engineering(DE)ensures that land actions and commercial building permits comply with the adopted codes for private infrastructure development through plan review and construction inspection. Traffic Management and Operations provides traffic engineering for safe and efficient multi-faceted transportation systems throughout the City(included in the Street Fund#101). Utilities oversees the City's surface and Stormwater Utility,manages the City's contracts for solid waste collection and disposal,and coordinates other utility issues on behalf of the City as assigned(included in the Stormwater Management Fund#402). Street Maintenance provides responsive maintenance and repairs for 461 center line miles of City streets. The City of Spokane Valley operates ten City-owned snow plows which are responsible for the clearing of the priority 1 and 2 roads along with selected hillsides(included in the Street Fund#101). Accomplishments for 2018 • Implemented approved capital projects. • Administered and manage state and federal funds received for capital projects. • Assisted with the preparation of grant applications for capital projects. • Continued work on the planning and alternatives evaluations for the Pines Road Grade Separation Project. • Received full funding for the Barker Road Grade Separation Project. • Selected preferred alternative and began design for the Barker Road Grade Separation Project. • Continued work on permit process and customer service improvement. • Continued to coordinate regional transportation issues with SRTC,adjoining municipalities,and WSDOT. • Implemented enhanced workflow procedures for following state and federal funding guidelines. Goals for 2019 • Implement approved capital projects. • Continue preliminary engineering,environmental review,and right-of-way acquisition for the Barker Road Grade Separation Project. • Continue work on acquiring funds and completing design for the Pines Road Grade Separation Project. • Administer and manage state and federal funds received for capital projects. • Assist in the preparation of grant applications for capital projects. • Continue to coordinate regional transportation issues with SRTC,WSDOT,and other agencies. • Maintain engineering and/or plan review times of less than two weeks. (continued on next page) 66 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2019 Budget (continued from prior page) Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget _ Budget Personnel-FTE Equivalents City Engineer 0.0 0.0 0.0 1.0 1.0 Engineering Manager 0.0 0.0 0.0 1.0 1.0 Administrative Assistant 0.0 0.0 0.0 2.0 2.0 Assistant Engineer 0.0 0.0 0.0 0.0 0.45 Engineer 0.0 0.0 0.0 1.0 0.5 Engineering Tech I 0.0 0.0 0.0 1.0 1.5 * Engineering Tech II 0.0 0.0 0.0 0.5 0.75 * Planning Grants Engineer 0.0 0.0 0.0 0.0 0.375 * Main/Construction Inspector 0.0 0.0 0.0 2.0 2.0 Senior Dev Engineer 0.0 0.0 0.0 1.0 1.0 Senior Engineer-Proj Mgmt. 0.0 0.0 0.0 1.5 1.7 * Water Resource Sr.Engineer 0.0 0.0 0.0 1.0 1.0 Total FTEs 0.0 0.0 0.0 12.0 13.275 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 1,480,905 $ 1,602,572 Supplies 0 0 0 27,750 27,100 Services&Charges 0 0 0 120,638 186,469 Total Engineering Division $ 0 $ 0 $ 0 $ 1,629,293 $ 1,816,141 * 50%of these positions are budgeted to the Engineering Division in the General Fund with the balance budgeted as a part of Capital Projects Funds.Planning Grants Engineer is budgeted 37.5%here in the General Fund,37.5%in the Street Fund#101, and 25%in the Stormwater Fund#402 67 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2019 Budget 042-Economic Development Division The Economic Development Division oversees the Comprehensive Plan,the Six-Year Transportation Improvement Plan(TIP),Community Development Block Grants and Public Relations. The Division works to build relationships with businesses,the community,and economic development partners to pursue economic development strategies ensuring long-term fiscal strength of the City. Accomplishments for 2018 • Implemented the retail recruitment strategy. • Developed a comprehensive prioritized Pavement Management Program. • Pursued infrastructure improvements to foster economic development. • Built and implemented strategies to promote business growth. • Continued to implement the strategic marketing plan. • Strengthened relationships with our economic development partners. • Found grants to support economic development initiatives. • Identified additional CDBG program opportunities. • Developed tools and programs to support small business retention and expansion. • Participated in regional economic,transportation,and planning committees. • Developed a long range capital improvement program that integrates transportation,water,stormwater,and other facility plans. • Found opportunities to implement the tourism strategy. • Partnered with and promoted events such as Valleyfest,the Bike Swap,Crave NW,and Cycle Celebration. • Found partnership opportunities with schools and workforce development agencies. •Continued to use strategic initiatives to recruit,expand,and retain businesses. Goals for 2019 • Implement the retail recruitment strategy. • Continue to evaluate and implement strategies in the Comprehensive Plan. • Pursue infrastructure improvements to foster economic development. • Develop and implement strategies to promote business growth,attraction,and retention. • Implement marketing strategies to attract and retain businesses and increase tourism. •Collaborate with economic development partners and related service providers. •Seek grants to support economic development initiatives. • Use CDBG funds to support economic vitality in low and moderate income areas. • Continue existing efforts and implement new methods and technologies to expand communications. • Participate in regional economic,transportation,and planning committees. • Develop and coordinate the transportation improvement program. •Assist in the evaluation of transportation and traffic impacts relating to development. •Seek opportunities to implement the tourism strategy. • Partner and promote events such as Valleyfest,Oktoberfest,Crave NW,and Cycle Celebration. •Seek partnership opportunities with schools and workforce development agencies. • Evaluate multimodal planning efforts focusing on pedestrian,bicycle and transit facilities. Budget Summary 2015 2016 2017 2018 2018 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Economic Development Manager 0.0 0.0 0.0 1.0 1.0 Economic Development Specialist 0.0 0.0 0.0 2.0 2.0 Planning Grants Engineer 0.0 0.0 0.0 0.375 0.0 Public Information Officer 0.0 0.0 0.0 1.0 1.0 Senior Transportation Planner 0.0 0.0 0.0 1.0 1.0 Office Assistant I 0.0 0.0 0.0 1.0 1.0 Total FTEs 0.0 0.0 0.0 6.375 6.0 Intern 0.0 0.0 0.0 1.0 1.0 Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 679,852 $ 658,977 Supplies 0 0 0 2,500 3,000 Services&Charges 0 0 0 288,518 356,795 Nonrecurring-Retail Recruiter 0 0 0 50,000 25,000 Total Engineering Division $ 0 $ 0 $ 0 $ 1,020,870 $ 1,043,772 68 Fund:001 General Fund Spokane Valley Dept:040 Community&Public Works 2019 Budget 043-Building and Planning Division The Building and Planning Division is responsible for implementing and enforcing the State Building Code as required by state law.The purpose of the International Codes,as adopted by the State of Washington and City of Spokane Valley,is to promote the health,safety,and welfare of the occupants or users of the building and structures and the general public by requiring minimum performance standard for structural strength,exit systems,stability sanitation,light,ventilation,energy conservation,and fire safety to ensure the City's comply with various codes. The Planning program's current primary responsibilities include processing revisions to the City's Municipal Code,reviewing land use applications to ensure compliance with adopted development regulations,with the State Environmental Policy Act (SEPA)(RCW 43.21 C),and with the state subdivision law(RWC 58.17). . Accomplishments for 2018 •Worked on permit processes and customer service improvement plan to enhance customer experience at the Permit Center. •Coordinate on central reporting function in SMARTGov System. •Expanded on-line permit system. •Incorporate data from SVFD records to facilitate re-use of existing vacant buildings and tenant spaces. •Increased efforts to establish and maintain relationships with regional jurisdictions and outside review agencies. •Provided cross training of staff to facilitate coverage during times of lean staffing. •Coordinated with regional partners on the Hazard Mitigation Plan. •Assisted in the finalization of Legislative Municipal Code updates. •Processed 2018 Comprehensive Plan amendments. Goals for 2019 •Implement electronic submittals and plan review. • •Continue to expand online permitting •Begin process for scanning commercial address files •Implement Code Enforcement educational awareness program to inform the public. •Continue to provide cross training of staff to facilitate coverage during times of lean staffing. •Maintain relationships with regional jurisdictions and outside review agencies. •Process 2019 Comprehensive Plan amendments. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Administrative Assistant 0.0 0.0 0.0 1.0 1.0 Assistant Building Official 0.0 0.0 0.0 1.0 1.0 Building Inspector II 0.0 0.0 0.0 3.0 3.0 Building Official 0.0 0.0 0.0 1.0 1.0 Code Enforcement Officer 0.0 0.0 0.0 1.0 1.0 Development Service Coordinator 0.0 0.0 0.0 1.0 1.0 Engineering Tech 0.0 0.0 0.0 1.0 1.0 Office Assistant I 0.0 0.0 0.0 2.0 3.0 Office Assistant II 0.0 0.0 0.0 0.0 1.0 Permit Facilitator 0.0 0.0 0.0 2.0 1.0 Permit Specialist/Facilitator 0.0 0.0 0.0 0.0 1.0 Planner 0.0 0.0 0.0 3.0 3.0 Plans Examiner 0.0 0.0 0.0 1.0 1.0 Senior Planner 0.0 0.0 0.0 1.0 1.0 Senior Plans Examiner 0.0 0.0 0.0 1.0 0.0 Total FTEs 0.0 0.0 0.0 19.0 20.0 -- Budget Detail Wages,Payroll Taxes&Benefits $ 0 $ 0 $ 0 $ 1,820,359 $ 1,893,743 Supplies 0 0 0 44,200 44,200 Services&Charges 0 0 0 325,228 285,755 Intergovernmental Payments 0 0 0 20,000 25,000 Total Building Division $ 0 $ 0 $ 0 $ 2,209,787 $ 2,248,698 69 Fund:001 General Fund Spokane Valley Dept:058 Community&Economic Development 2019 Budget The Community and Economic Development Department was consolidated into the new Community and Public Works Department during the City's reorganization effective April 1,2017.Historical information will be included here for comparison purposes until the prior years'activity drops off of the below Budget Summary. 050-Administration Division Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Community Development Director 1.0 1.0 1.0 0 0 Administrative Assistant 1.0 1.0 1.0 0 0 Total FTEs 2.0 2.0 2.0 0 0 Budget Detail Wages,Payroll Taxes&Benefits $ 237,232 $ 247,129 $ 77,974 $ 0 $ 0 Supplies 2,553 3,207 2,463 0 0 Services&Charges 10,785 11,381 9,484 0 0 Nonrecurring expenditures 206,704 335,204 0 0 0 Total Administrative Division $ 457,274 $ 596,921 $ 89,921 $ 0 $ 0 051 -Economic Development Division Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual _ Budget Budget Personnel-FTE Equivalents Engineer 0.5 0.65 0.65 0 0 Senior Planner-CD 1.0 1.0 1.0 0 0 E.D.Project Specialist 1.0 1.0 1.0 0 0 Total FTEs 2.5 2.65 2.65 0 0 Budget Detail Wages,Payroll Taxes&Benefits $ 234,966 $ 291,881 $ 439,185 $ 0 $ 0 Supplies 6 965 1,517 0 0 Services&Charges 3,930 191,615 231,253 0 0 Nonrecurring expenditures 0 0 144,200 0 0 Total Economic Development Division $ 238,902 $ 484,461 $ 816,155 $ 0 $ 0 70 Fund:001 General Fund Spokane Valley Dept:058 Community&Economic Development 2019 Budget 055/056-Development Services Division Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Development Services Manager 1.0 1.0 1.0 0 0 Engineer 2.0 2.0 2.0 0 0 Assistant Engineer 1.0 1.0 1.0 0 0 Senior Planner 1.0 1.0 1.0 0 0 Planner 2.0 2.0 2.0 0 0 Maint/Construction Inspector 1.0 1.0 1.0 0 0 Code Enforcement Officer 1.0 1.0 0.0 0 0 ROW Inspector 1.0 1.0 1.0 0 0 Office Assistant I 1.0 1.0 1.0 0 0 Senior Engineer 0.0 0.0 0.0 0 0 Engineering Technician 0.0 0.0 0.0 _ 0 0 Total FTEs 11.0 11.0 10.0 0 0 Budget Detail Wages,Payroll Taxes&Benefits $ 1,115,465 $ 1,158,836 $ 843,860 $ 0 $ 0 Supplies 10,058 10,657 10,374 0 0 Services&Charges 246,964 251,364 227,112 0 0 Intergovernmental Payments 0 21,662 39,546 0 0 Total Development Services Division $ 1,372,487 $ 1,442,519 $ 1,120,892 $ 0 $ 0 057-Building Division Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Building Official 1.0 1.0 1.0 0 0 Building Inspector II 3.0 3.0 3.0 0 0 Planner 2.0 2.0 1.0 0 0 Development Service Coordinator 1.0 1.0 1.0 0 0 Engineering Tech 1.0 1.0 1.0 0 0 Office Assistant 2.0 2.0 2.0 0 0 Permit Facilitator 2.0 2.0 2.0 0 0 Plans Examiner 1.0 1.0 1.0 0 0 Senior Plans Examiner 1.0 1.0 1.0 0 0 Code Enforcement Officer 0.0 0.0 1.0 0 0 Assistant Planner 0.0 0.0 0.0 0 0 Total FTEs 14.0 14.0 14.0 0 0 Budget Detail Wages,Payroll Taxes&Benefits $ 1,823,159 $ 1,900,828 $ 1,096,598 $ 0 $ 0 Supplies 13,479 25,894 10,413 0 0 Services&Charges 253,964 287,341 75,917 0 0 Total Building Division $ 2,090,602 $ 2,214,063 $ 1,182,928 $ 0 $ 0 71 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2019 Budget The Parks and Recreation Department is composed of six divisions including Administration,Maintenance, Recreation,Aquatics,Senior Center,and CenterPlace. The overall goal of the department is to provide quality recreation programs and acquisition,renovation,development,operation and maintenance of parks and maintenance of parks and recreation facilities. 000-Parks Administration Division The Administration Division provides direction and leadership for the Parks and Recreation Department in implementing the goals and objectives of the City Council and facilitates the general upkeep of parks and public areas of the City. Accomplishments for 2018 • Completed the design phase of the Appleway Trail University to Pines Park Amenities. • Completed construction the Sullivan to Corbin section of the Appleway Trail. • Completed the design and construction of new donated sculpture from Valley Arts Council. • Pursued land acquisitions for priority facilities such as disc golf,skateboard park,etc. • Installed new park signs at Sullivan, Park Road,Castle and Balfour Parks. • Completed the updating of park regulations/rules. Goals for 2019 • Construct new restroom at Browns Park. • Complete the Appleway Trail University to Pines Amenities project. • Add a swing set to Edgecliff Park. • Repair/replace poured in place surfacing at Discovery Playground. • Complete one land acquisition. • Begin the design of the Evergreen to Sullivan section of the Appleway Trail. • Continue to implement the Browns Park Master Plan. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Parks&Recreation Director 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 1.0 1.0 1.0 1.0 1.0 Total FTEs 2.0 2.0 2.0 2.0 2.0 Budget Detail Wages,Payroll Taxes&Benefits $ 230,394 $ 232,889 $ 242,763 $ 254,133 $ 267,703 Supplies 2,688 3,258 2,468 7,600 4,750 Services&Charges 28,433 22,803 42,953 39,578 63,505 Nonrecurring expenditures 78,659 83,951 364,346 0 0 Total Parks Administration Division $ 340,174 $ 342,901 $ 652,530 $ 301,311 $ 335,958 72 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2019 Budget 300-Maintenance Division The Parks Maintenance Division is responsible for the contracted maintenance and upkeep of our parks and public areas including the Centennial Trail. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Budget Detail Supplies $ 3,444 $ 13,809 $ 1,625 $ 7,500 $ 4,000 Services&Charges 830,640 876,115 845,108 856,475 889,500 Total Maintenance Division $ 834,084 $ 889,924 $ 846,733 $ 863,975 $ 893,500 301 -Recreation Division The Recreation Division coordinates and facilitates the delivery of recreation programs and service throughout the City and the City's Park system. Accomplishments for 2018 • Researched new recreation programs that serve the needs of the Community. • Continued to provide quality recreation programs for the Spokane Valley Community. • Partnered with Library District to offer weekly library resources as the Summer Park Program. • Offered affordable community events for families,teens,and the Community. Goals for 2019 • Provide a new summer camp for teens entering 6th-9th grades. • Provide a new walking program for community members. • Continue to provide quality recreation programs for the Spokane Valley Community. • Offer affordable community events for families,teens,and the Community. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Recreation Coordinator 1.0 1.0 1.0 1.0 1.0 Budget Detail Wages,Payroll Taxes&Benefits $ 164,092 $ 157,707 $ 95,062 $ 189,274 $ 160,667 Supplies 7,791 5,773 3,976 7,750 8,650 Services&Charges 62,052 72,052 54,312 _ 63,778 84,305 Total Recreation Division $ 233,935 $ 235,532 $ 153,350 $ 260,802 $ 253,622 73 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2019 Budget 302-Aquatics Division The City of Spokane Valley owns three pools: Park Road Pool,Terrace View Pool,and Valley Mission Pool. Services include open swim,swim lessons,swim team and facility rentals. In addition, the City leases a portion of Valley Mission Park to Splashdown Inc.for a water park.The City currently is contracting with the YMCA for all aquatic activities within the City. The YMCA provides the lifeguards and maintains the pools during the season. Accomplishments for 2018 • Maintained full summer swimming program. • Improved the summer pool schedule for better public understanding. • Maintained Paws in the Pool Program. • Expanded the water exercise program. • Replaced circulating pump at Park Road Pool. • Worked with Make A Splash to offer weekly free swim sessions at all pools. Goals for 2019 • Maintain full summer swimming program. • Maintain Paws in the Pool Program. • Continue to partner with Make A Splash to offer free swim sessions at all pools. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Budget Detail Supplies $ 351 $ 1,517 $ 42 $ 3,300 $ 2,000 Services&Charges 487,564 460,474 474,626 512,600 489,153 Total Aquatics Division $ 487,915 $ 461,991 $ 474,668 $ 515,900 $ 491,153 74 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2019 Budget 304-Senior Center Division The City of Spokane Valley Parks and Recreation Department assumed operational control of the Valley Senior Center in 2003. Accomplishments for 2018 • Obtained and categorized a referral guide for front desk volunteers of services and agencies. • Continued to work with the Board on providing board training classes. • Worked closely with the Parks&Recreation Director on programs being offered to seniors. • Conducted Resource and Referral Fair with 56 vendors and over 250 participants. Goals for 2019 • Continue to enhance the resource and referral information at the reception desk to be better equipped to handle calls. • Continue to work with the Board on providing board training classes. • Work closely with the Parks&Recreation Director on programs being offered to seniors. • Develop transition plan for retiring Senior Center Specialist. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Senior Center Specialist 1.0 1.0 1.0 1.0 1.0 Total FTEs 1.0 1.0 1.0 1.0 1.0 Budget Detail Wages,Payroll Taxes&Benefits $ 82,625 $ 85,521 $ 88,210 $ 91,729 $ 94,715 Supplies 454 1,170 592 1,600 1,600 Services&Charges 2,298 1,645 1,473 4,900 4,900 Total Senior Center Division $ 85,377 $ 88,336 $ 90,275 $ 98,229 $ 101,215 75 Fund:001 General Fund Spokane Valley Dept:076 Parks&Recreation 2019 Budget 305-CenterPlace Division Construction of Mirabeau Point CenterPlace began in late 2003 and was completed mid-year 2005.The project represented the culmination of eight years of planning and fundraising by Mirabeau Point Inc.and the joint involvement of the City and Spokane County. The approximately 54,000 square foot facility houses the City of Spokane Valley Senior Center,a great room/banquet facility,numerous meeting rooms,multi-purpose rooms and a high tech lecture hall. The facility combines with Mirabeau Meadows Parks and Mirabeau Springs to form a regional focal point for Northeastern Washington and Northern Idaho. Accomplishments for 2018 • Replaced flooring in the Great Room and Small Dining Room at CenterPlace. • Completed Phase 1 of improvement for an outdoor event venue space on west lawn. • Completed the addition of new video monitors in the Great Room. • Hosted Crave NW,Summer Nights and Oktoberfest events on new outdoor space. Goals for 2019 • Add a Farmer's Market event to CenterPlace • Seek funding opportunities to finish construction of the CenterPlace West Lawn Master Plan. • Update Business and Marketing plan for CenterPlace. • Develop a checklist of permits required for community events held on outdoor space to assist groups. • Develop plan to attract more community events to outdoor venue space. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Customer Relations/Facilities Coordinator 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 1.0 1.0 1.0 1.0 1.0 Office Assistant I 1.0 1.0 1.0 1.0 1.0 Maintenance Worker 2.0 2.0 2.0 2.0 2.0 Total FTEs 5.0 5.0 5.0 5.0 5.0 Budget Detail Wages,Payroll Taxes&Benefits $ 442,655 $ 467,950 $ 491,576 $ 503,499 $ 534,355 Supplies 53,919 59,418 81,169 73,524 70,774 Services&Charges 306,138 309,359 297,318 333,673 344,285 Nonrecurring Expenditures 0 21,420 1,000 53,000 0 Total CenterPlace Division $ 802,712 $ 858,147 $ 871,063 $ 963,696 $ 949,414 76 Fund:001 General Fund Spokane Valley Dept:090 General Government 2019 Budget The General Government Department accounts for those activities that are not specific to the functions of any particular General Fund Department or operation. Expenditures recorded here are composed of City Hall rent/bond payments;information technology equipment and services;capital costs that benefit more than one department;support of agencies external to the City that provide social service programs and economic development services;and transfers to other City funds for property/casualty insurance premiums(Fund#502),park capital projects(Fund#309)and the pavement preservation program(Fund#311). Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Supplies Employee Recognition-Operating Supplies $ 1,490 $ 599 $ 1,674 $ 1,500 $ 1,700 Office&Operating Supplies 187 41 552 0 0 Small Tools&Minor Equipment 7,443 5,825 3,030 6,900 6,900 Computer Hardware-Non Capital 38,277 54,773 46,050 66,050 42,250 Computer Software-Non Capital 5,093 20,859 11,249 20,300 25,800 Office&Operating Supplies 16,753 9,196 8,876 9,700 9,700 69,243 91,293 71,431 104,450 86,350 Other Services&Charges Professional Services-Misc Studies 22,907 99,509 81,667 200,000 245,000 Accounting&Auditing 77,474 82,775 83,684 90,000 95,000 Uncollectible Accounts Expense 2,095 0 0 0 0 Employee Recognition&Safety Program 299 917 0 1,500 1,000 Postage 10,428 82 0 2,500 2,500 Telephone Service 8,168 7,077 11,205 9,000 12,300 Cell Phones 949 1,680 1,649 1,700 5,700 Internet Service 11,458 8,114 7,696 8,500 9,000 Taxes and Assessments 0 0 912 0 1,000 City Wide Records Management 5,870 0 0 10,000 10,000 Sewer 0 0 523 0 500 City Hall Rent 426,964 437,864 0 0 0 Facility Repairs&Maintenance 8,897 1,595 4,003 5,000 0 Equip Repair&Maint-Hardware Support 40,450 34,611 35,959 46,400 36,800 IT Support 20,855 12,659 18,716 28,300 29,200 Software Licenses&Maintenance 65,353 82,967 88,525 88,000 91,900 Merchant Charges(Bankcard Fees) 231 287 186 500 500 Network Infrastructure Access 0 17,662 4,732 5,000 6,000 Equipment Rental 1,921 4,261 4,264 4,260 4,300 Interfund Vehicle Lease 0 500 1,000 500 500 Printing&Binding 536 589 0 600 600 Miscellaneous Services 5,256 5,378 4,919 5,400 5,400 General Operating Leases:Computer 45,347 46,480 57,556 60,000 65,000 Economic Development-Site Selector 8,542 9,041 9,373 10,000 10,000 Outside Agencies-Social Svc&Econ.Dev. 0 0 91,924 150,000 182,000 Professional Services-Economic Dev. 70,330 60,216 0 0 0 Contracted economic dev. 16,560 43,000 0 0 0 City Economic Development 153,350 0 0 0 0 Professional Services-Social Services 90,974 43,496 55,911 0 0 Alcohol Treatment:Liquor Excise Tax 5,012 8,710 9,077 0 9,000 Alcohol Treatment:Liquor Profits 16,131 16,081 15,900 25,000 16,000 $ 1,116,357 $ 1,025,551 $ 589,383 $ 752,160 $ 839,200 (continued to next page) 77 Fund:001 General Fund Spokane Valley Dept:090 General Government 2019 Budget (continued from previous page) Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Intergovernmental Services Election Costs $ 16,347 $ 0 $ 69,973 $ 90,000 $ 90,000 Voter Registration 97,091 85,893 86,932 100,000 100,000 Taxes and assessments 5,617 892 0 7,500 12,100 Spokane County Air Pollution Authority 115,915 116,432 130,928 135,000 137,300 234,970 203,217 287,834 332,500 339,400 Capital Outlays Computer Hardware-Capital 0 23,802 7,387 70,000 65,000 0 23,802 7,387 70,000 65,000 Debt Service:Principal Interest and Other Debt Service Costs 425 624 600 600 600 Interfund Payments for Service Transfer out-#204(City Hall bond payment) 0 198,734 397,350 399,350 401,250 Transfer out-#309(park capital proj) 115,575 260,122 160,000 160,000 160,000 Transfer out-#309(Appleway Trail Amenities) 0 0 0 29,725 0 Transfer out-#310(bond pmt>$434.6 lease) 67,600 72,500 0 0 0 Transfer out-#310(city hall o&m costs) 271,700 271,700 0 0 0 Transfer out-#311(pvmnt preservation) 920,000 943,800 953,200 962,700 972,300 Transfer out-#501(CenterPlace kitchen reserve) 0 0 36,600 36,600 36,600 Transfer out-#502(risk management) 325,000 325,000 350,000 370,000 390,000 1,699,875 2,071,856 1,897,150 1,958,375 1,960,150 Miscellaneous SCRAPS pass through 1,099 1,209 1,145 1,300 1,300 Leasehold Excise Tax Pass-Through 0 628 778 600 800 1,099 1,837 1,923 1,900 2,100 Subtotal Recurring Expenditures $ 3,121,969 $ 3,418,180 $ 2,855,707 $ 3,219,985 $ 3,292,800 Nonrecurrinq/Nonrecurrinq Capital City Hall lease payment(2017 final year) 0 0 438,565 0 0 IT capital replacement 21,145 0 26,386 0 0 Computer Hardware-Capital 65,610 76,119 111,451 110,000 102,000 Computer Software-Capital 18,931 10,870 0 5,000 5,000 City Hall Remodel 12,842 0 0 0 0 City Hall Generator 0 0 0 200,000 0 Transfer out-#122(Replenish Winter Weather Resen 0 15,043 258,000 490,000 0 Transfer out-#309(Park Capital) 0 0 0 400,000 1,160,000 Transfer out-#312(capital reserve fund) 1,783,512 1,828,723 3,003,929 3,795,429 0 Transfer out-#314(RR Grade Separation) 0 0 1,200,000 0 0 1,902,040 1,930,755 5,038,331 5,000,429 1,267,000 Total Governmental Division $ 5,024,009 $ 5,348,935 $ 7,894,039 $ 8,220,414 $ 4,559,800 78 Fund:101 Street Fund Spokane Valley 2019 Budget The Street Fund was established to account for the activities associated with the provision of efficient and safe movement of both motorized and non-motorized vehicles,as well as pedestrians within the limits of the City,and coordinate convenient interconnect to the regional transportation system. Maintenance work includes snow and ice control,street pavement repairs, traffic signals and signs,landscaping and vegetation control,and many other street maintenance and repair activities. Accomplishments for 2018 • Continued to develop and update the pavement management plan. • Renewed contracts with private contractors for street maintenance services. • Continued the evaluation of the traffic management system to keep in-house or integrate into SRTMC. • Developed a preliminary maintenance program for traffic signal components to address aging infrastructure. • Continued evaluations of traffic signal timings for improved traffic through the Argonne, Pines,and Sullivan Corridors. • Continued on-going roadway maintenance and repairs utilizing in-house and contracted services. Goals for 2019 • Finalize and begin the implementation of the Pavement Management Program. • Continue on-going roadway and bridge maintenance and repairs. • Finalize the 6-year Bridge Maintenance Program and begin its implementation. • Implement identified signal timing plans for the Argonne,Pines,and Sullivan Corridors. • Work to evaluate and implement an asset management system for all transportation facilities. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Senior Engineer-Traffic 1.0 1.0 1.0 1.0 1.0 Public Works Superintendent 1.0 1.0 1.0 1.0 1.0 Maintenance/Construction Inspector 2.4 2.35 2.35 2.35 2.35 Construction inspector 0.0 0.00 0.00 0.00 1.50 Traffic Engineer 0.0 0.00 0.00 0.00 1.00 Assistant Engineer 1.0 1.0 1.0 1.0 0.25 Engineering Tech II 0.0 0.0 0.0 0.0 0.25 Planning Grants Engineer 0.375 0.375 0.375 0.375 0.375 Total FTEs 5.725 5.725 5.725 5.725 7.725 Interns&Temp/Seasonal 2.0 2.0 2.0 2.0 2.0 (continued to next page) For 0.5 FTE of the 2 FTEs,only 50%is budgeted to the Street Fund with the balance budgeted as part of the capital project funds 79 Fund:101 Street Fund Spokane Valley 2019 Budget (continued from previous page) Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Utility Tax $ 2,257,184 $ 2,069,309 $ 1,982,391 $ 1,900,000 $ 1,700,000 Motor Vehicle Fuel Tax 1,935,629 2,005,870 2,032,175 2,052,400 2,092,300 Multimodal Transportation Revenue 0 95,509 98,994 133,800 132,200 Right-of-Way Maintenance Fee 0 56,035 136,112 70,000 70,000 Investment Interest 3,212 5,886 7,843 6,000 6,000 Grant Proceeds 0 12,066 1,341 0 0 Miscellaneous 25,167 226 49,411 10,000 10,000 Non recurring insurance proceeds 0 59,426 85,074 0 0 Total revenues 4,221,192 4,304,327 4,393,341 4,172,200 4,010,500 Nonrecurring Revenues Transfers in-#312 0 0 0 0 907,544 Total Nonrecurring Revenues 0 0 0 0 907,544 Expenditures Wages,Payroll Taxes&Benefits 738,144 728,627 811,264 771,019 1,044,547 Supplies 116,659 87,533 98,747 112,500 113,300 Services&Charges 2,041,767 2,122,931 2,125,091 2,141,751 2,308,818 Snow Operation 465,231 409,635 637,358 504,800 497,200 Intergovernmental Payments 707,315 836,101 748,291 851,000 855,000 Transfersout-#001 39,700 39,700 39,700 39,700 0 Transfers out-#311(pvmntpres) 206,618 67,342 67,342 67,342 0 Interfund Vehicle Lease -#501(non-plow) 12,077 31,000 23,250 21,250 21,250 Interfund Vehicle Lease-#501(plow replace) 0 40,000 77,929 77,929 77,929 Capital construction and equipment 155,849 0 0 0 0 Nonrecurring Expenditures Battery backups for intersections 0 0 15,579 15,000 0 Traffic Signal Cabinet Replacement 0 59,695 0 0 0 Maintenance facility storage unit 0 4,871 0 0 0 Transportation Mgmt Center 0 1,465 0 0 0 Total Nonrecurring expenditures 4,483,360 4,428,900 4,644,551 4,602,291 4,918,044 Revenues over(under)expenditures (262,168) (124,573) (251,210) (430,091) 0 Beginning fund balance 1,705,245 1,443,077 1,318,504 1,067,294 637,203 Ending fund balance $ 1,443,077 $ 1,318,504 $ 1,067,294 $ 637,203 _$ 637,203 80 Fund:103 Paths&Trails Fund Spokane Valley 2019 Budget The State of Washington collects a$0.494 per gallon motor vehicle fuel tax at the pump.Of this amount,the State remits a portion of the tax back to cities on a per capita basis. For 2019 the Municipal Research and Services Center estimates the distribution back to cities will be$21.72 per person. Based upon a City of Spokane Valley population of 95,810(per the Washington State Office of Financial Management on April 1,2018)we anticipate the City will collect$2,101,100 in 2019. RCW 47.030.050 specifies that 0.42%of this tax must be expended for the construction of paths and trails and based upon the 2019 revenue estimate this computes to$8,800. The balance or$2,092,300 will be credited to Fund#101 for Street maintenance and operations. The portion of the motor vehicle tax allocated to the Paths and Trails Fund is by State Law restricted for the construction and/or improvement of paths and trails within the City. Because the cost of such projects is typically much greater than the funds generated in a single year,we typically leave the fund balance untouched until an adequate fund balance is available. The City transferred$50,000 in 2014 and$9,300 in 2016 and is budgeted to transfer$50,000 in 2018 to the Parks Capital Projects Fund#309 to be applied towards the Appleway Trail projects. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Motor Vehicle Fuel(Gas)Tax $ 8,226 $ 8,460 $ 8,571 $ 8,700 $ 8,800 Investment Interest 0 170 369 0 400 Total revenues 8,226 8,630 8,940 8,700 9,200 Expenditures Capital Outlay 0 0 0 0 0 Transfers out-#309 0 9,300 0 50,000 _ 0 Total expenditures 0 9,300 0 50,000 0 Revenues over(under)expenditures 8,226 (670) 8,940 (41,300) 9,200 Beginning fund balance 29,828 38,054 37,384 46,324 5,024 Ending fund balance $ 38,054 $ 37,384 $ 46,324 $ 5,024 $ 14,224 81 Fund:104 Hotel/Motel Tax-Tourism Facilities Fund Spokane Valley 2019 Budget The Hotel/Motel Tax -Tourism Facilities Fund accounts for the receipt and expenditure of a special excise tax of 1.3%on the sale or charge made for the furnishing of lodging under RCW 82.08. These funds will be used solely for capital expenditures for acquiring,constructing,making improvements to or other related capital expenditures for large sporting venues,or venues for tourism-related facilities,which facilities generate overnight guests at lodging facilities subject to the taxes imposed. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Hotel/Motel Tax $ 182,236 $ 387,333 $ 400,509 $ 377,000 $ 390,000 Investment Interest 111 1,552 6,854 1,500 7,000 Transfers in-#105 0 0 250,000 250,000 0 Total revenues 182,347 388,885 657,363 628,500 397,000 Expenditures Capital Outlay 0 0 0 _ 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 182,347 388,885 657,363 628,500 397,000 Beginning fund balance 0 182,347 571,232 1,228,595 1,857,095 Ending fund balance $ 182,347 $ 571,232 $ 1,228,595 $ 1,857,095 $ 2,254,095 Fund:105 Hotel/Motel Tax Fund Spokane Valley 2019 Budget I The Hotel/Motel Fund accounts for the receipt and expenditure of a special excise tax of 2%on the sale or charge made for the furnishing of lodging under RCW 82.08. These funds will be used solely for the purpose of paying all or any part of the cost of tourism promotion,acquisition or operation of tourism-related facilities,and marketing of special events and festivals designed to attract tourists. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Hotel/Motel Tax $ 581,237 $ 596,373 $ 615,981 $ 580,000 $ 600,000 Investment Interest 484 1,275 3,549 1,000 2,000 Total revenues 581,721 597,648 619,529 581,000 602,000 Expenditures Tourism Promotion 484,968 498,172 351,674 322,000 625,000 Transfers out- #001 30,000 30,000 15,778 30,000 30,000 Transfers out- #104 0 0 250,000 250,000 0 Transfers out- #109 68,000 58,387 0 _ 0 0 Total expenditures 582,968 586,559 617,452 602,000 655,000 Revenues over(under)expenditures (1,247) 11,089 2,077 (21,000) (53,000) Beginning fund balance 209,948 208,701 219,790 221,867 200,867 Ending fund balance $ 208,701 $ 219,790 $ 221,867 _ $ 200,867 $ 147,867 82 Fund: 106 Solid Waste Fund Spokane Valley 2019 Budget In 2003,the City of Spokane Valley entered into an interlocal agreement with the City of Spokane and Spokane County to join the existing Spokane Regional Solid Waste Management System for a period of eight years. In 2011,that agreement was extended through November 16,2014. Committed to ensuring Spokane Valley citizens are provided with solid waste services that are affordable,sustainable, and environmentally responsible,in June 2014 the City of Spokane Valley opted to contract for solid waste transfer, transport and disposal services with Sunshine Recyclers,Inc.Services provided under the contract were effective November 17,2014,and continue for a period of ten years with options for two three-year extensions. Terms of the contract require Sunshine to pay the City an annual administrative fee of$125,000 that will be used by the City to offset contract administrative costs and solid waste management within the city,including solid waste public educational efforts. The contract also provides that a road maintenance fee will be paid by Sunshine at the rate of$1 per ton for each ton in excess of 45,500 tons in a single contract year. Payments will be made to the City by March 31 of the year following the calendar year being measured. In June 2017,the City entered a contract with Waste Management for the collection of garbage,recyclables,and compostables for the period of April 1,2018 through March 31,2028 with the option of two additional two-year extensions. Terms of the contract require Waste Management to pay the City a one-time fee of$47,500 upon contract execution to reimburse the City for the costs of procuring the contract.Waste Management is also required to pay the City an monthly administrative fee of 12.5%of gross receipts,which is estimated to be approximately$1,600,000 in 2019. During the years of 2013 and 2014,the General Fund#001 funded various studies and fees related to the solid waste program and transferred$60,000 to the Solid Waste Fund#106 for the purpose of providing information materials and marketing necessary to inform residents and businesses of the change in solid waste transfer,transport and disposal.The total amount paid out of the General Fund for these expenditures was$202,121.Beginning in 2015 the Solid Waste Fund will reimburse the General Fund for these costs over a 5-year period,which equates to a payment of annually of$40,422 in the years 2015 through 2019. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Administrative fees $ 125,000 $ 125,000 $ 172,550 $ 225,000 $ 225,000 Solid Waste Road Wear Fee 0 17,677 59,389 1,000,000 1,500,000 Investment interest 0 184 1,334 0 1,300 Total revenues 125,000 142,861 233,273 1,225,000 1,726,300 Expenditures Education&Contract Administration 49,040 66,188 81,288 184,575 185,878 Transfers out-#001 40,425 40,425 40,425 40,425 40,422 Transfersout-#311 0 0 0 1,000,000 1,500,000 Total expenditures 89,465 106,613 121,713 1,225,000 1,726,300 Revenues over(under)expenditures 35,535 36,248 111,560 0 0 Beginning fund balance 7,339_ 42,874 79,122 190,682 190,682_ Ending fund balance $ 42,874 $ 79,122 $ 190,682_ $ 190,682 $ 190,682 83 Fund:107 PEG Fund Spokane Valley 2019 Budget Under the City's cable franchise,the franchise grantee remits to the City as a capital contribution in support of Public Education Government(PEG)capital requirements an amount equal to$0.35 per subscriber per month to be paid to the City on a quarterly basis for the life of the franchise.Capital contributions collected under this agreement are allocated to PEG capital uses exclusively.PEG capital uses include in part the set up of equipment in the City Council Chambers that allows Spokane Valley to broadcast Council meetings both live and through subsequent reviews via digital recordings available on the City's website. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Comcast PEG contribution $ 81,806 $ 79,427 $ 76,471 $ 79,000 $ 76,000 Investment interest 0 784 1,676 0 0 Transfer in from fund#001 _ 267,333 0 0 _ 0 0 Total revenues 349,139 80,211 78,147 79,000 76,000 Expenditures PEG Reimbursement-GMTV 0 117,000 0 40,200 40,100 New City Hall Council Chambers 0 5,435 208,714 0 0 Capital Outlay 47,957 18,617 54,937 31,000 31,000 Total expenditures 47,957 141,052 263,651 71,200 71,100 Revenues over(under)expenditures 301,182 (60,841) (185,504) 7,800 4,900 Beginning fund balance 0 301,182 240,341 54,837 62,637 Ending fund balance $ 301,182 $ 240,341 $ 54,837 $ 62,637 $ 67,537 Fund:120 CenterPlace Operating Reserve Fund Spokane Valley 2019 Budget The CenterPlace Operating Reserve Fund was established as a result of a covenant related to the issuance of limited tax general obligation bonds initially issued in 2003 and refunded in 2014. The bonds were issued for the purpose of constructing the CenterPlace facility. As a part of the bond issuance the City agreed to establish a$300,000 operating reserve account that could be used to make debt service payments on the bonds and/or pay for operating expenses of CenterPlace. If at any time the City were to draw on these reserves it would have to prepare and follow a plan for reinstatement of those funds drawn. This reserve is required to be in place for the life of the bonds which run through December 1,2033. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Investment Interest $ 0 $ 0 $ 0 $ 0 $ 0 Transfers in 0 _ 0 0 0 0 Total revenues 0 0 0 0 0 Expenditures Operations 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 0 0 0 0 0 Beginning fund balance 300,000 300,000 300,000 300,000_ 300,000 Ending fund balance $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 84 Fund:121 Service Level Stabilization Reserve Fund Spokane Valley 2019 Budget The City has committed to maintaining an ending fund balance in the General Fund of at least 50%of recurring expenditures which is equivalent to 6-months of operations. The Service Level Stabilization Reserve Fund serves as an emergency source of temporary financing to the General Fund in the event a downturn in the local economy resulted in a reduction of revenues that would otherwise compromise either the General Fund's minimum 50%reserve balance or historical levels of service. If an event such as a downturn in the economy resulted in the General Fund reserves dropping below 50%of recurring expenditures,then the Service Level Stabilization Reserve Fund could be drawn against to maintain the fund balance minimum. In no event would the Service Level Stabilization Reserve Fund be reduced to less than 60%of the current $5.5 million balance or$3.3 million. During 2018,this reserve balance was capped at approximately$5.5 million and any additional interest earned was accumulated in the General Fund.This represents a Fiscal Policy of the City that is also stated in the City Manager's 2019 Budget Message located near the front of this budget document. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Investment Interest $ 8,590 $ 21,636 $ 16,575 $ 0 $ 0 Transfers in 0 0 0 0 0 Total revenues 8,590 21,636 16,575 0 0 Expenditures Operations 0 0 0 0 0 Total expenditures 0 0 0 0 0 Revenues over(under)expenditures 8,590 21,636 16,575 0 0 Beginning fund balance 5,453,199 5,461,789 5,483,425 5,500,000 5,500,000 Ending fund balance $ 5,461,789 $ 5,483,425 $ 5,500,000 $ 5,500,000 $ 5,500,000 Fund:122 Winter Weather Reserve Fund Spokane Valley 2019 Budget The Winter Weather Reserve Fund was established through Ordinance No.05-018 to provide an emergency reserve for use during unusually harsh winters and storms where the Street Fund#101 budget and fund balance are inadequate to accommodate the amount of related street maintenance,including but not limited to snow plowing,sanding,and deicing,that may be necessary. In the event the City draws against this fund in any given winter,we will strive to replenish the balance back to approximately$500,000 through subsequent years'transfers. Due to the uncertainty of when this fund might be drawn upon we actually budget the same$500,000 in both 2018 and 2019 even though we recognize there exists only$500,000 to address this issue if it should arise. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Investment Interest $ 833 $ 1,961 $ 3,712 $ 3,500 $ 5,000 Transfers in-#001 0 15,043 258,000 490,000 0 FEMA Grant Proceeds 0 38,804 3,170 0 0 Total revenues 833 55,808 264,882 493,500 5,000 Expenditures Street Maintenance Expenditures 60,381 257,445 500,000 500,000 500,000 Total expenditures 60,381 257,445 500,000 500,000 500,000 Revenues over(under)expenditures (59,548) (201,637) (235,118) (6,500) (495,000) Beginning fund balance 504,020 444,472 242,835 7,717 501,217 Ending fund balance $ 444,472 $ 242,835 $ 7,717 $ 1,217 $ 6,217 85 Fund:204 Limited Tax General Obligation(LTGO)Bond-Debt Service Fund Spokane Valley 2019 Budget This fund is used to account for the accumulation of resources for,and the payment of limited tax general obligation(LTGO) bonds also referred to as councilmanic or non-voted bonds. When LTGO bonds are issued the City irrevocably pledges the full faith,credit and resources necessary to make timely payments of principal and interest,within constitutional and statutory limitations pertaining to non-voted general obligations. In 2003 the City issued$9,430,000 in LTGO bonds,the proceeds of which were used to finance both the construction of CenterPlace and road and street improvements surrounding the facility. In 2014 the City refunded the LTGO bonds in order to take advantage of lower interest rates which resulted in a reduction in subsequent annual bond payments(much like refinancing a home mortgage). At the completion of the bond refunding there remained$7,035,000 of LTGO bonds. Of this total: • $5,650,000 remained on the original debt used towards the construction of CenterPlace. These bonds will be paid off in annual installments over the 20-year period ending December 1,2033. Annual debt service payments on these bonds are provided by the Spokane Public Facilities District. At January 1,2019,the outstanding balance on this portion of the bond issue will be$4,645,000. • $1,385,000 remained on the original debt used towards the road and street improvements. These bonds will be paid off in annual installments over the 10-year period ending December 1,2023. Annual debt service payments on these bonds are provided by equal distributions from the 1st and 2nd quarter percent real estate excise tax(Funds#301 and#302). At January 1,2019,the outstanding balance on this portion of the bond issue will be$730,000. In 2016 the City issued$7,275,000 in LTGO bonds,the proceeds of which will be used to finance the construction of a new City Hall building along with$6.3 million of City cash that has been set aside for this purpose.These bonds will be paid off in annual installments over the 30-year period ending December 1,2045.Annual debt service payments on these bonds are provided by transfers in from the General Fund.At January 1,2019,the outstanding balance on the bond issue will be $6,895,000. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget _ Budget Revenues Spokane Public Facilities District $ 373,800 $ 380,300 $ 379,750 $ 414,050 $ 432,150 Transfers in-#001 0 198,734 397,350 399,350 401,250 Transfers in-#301 82,150 83,400 79,426 82,000 82,475 Transfers in-#302 82,150 _ 83,400 79,425 82,000 82,475 Total revenues 538,100 745,834 935,951 977,400 998,350 Expenditures Debt Service Payment-CenterPlace 374,083 380,300 379,750 414,050 432,150 Debt Service Payment-Roads 164,017 166,800 162,900 164,000 164,950 Debt Service Payments-City Hall 0 198,734 397,350 399,350 401,250 Total expenditures 538,100 745,834 940,000 977,400 998,350 Revenues over(under)expenditures 0 0 (4,049) 0 0 Beginning fund balance 4,049 4,049 4,049 0 0 Ending fund balance $ 4,049 $ 4,049 $ 0 0 0 86 Fund:301 REET 1 Capital Projects Fund Spokane Valley 2019 Budget This fund is used to account for the collection and expenditures of the first one-quarter of one-percent real estate excise tax (REET 1)that is authorized through RCW 82.46. This quarter percent must be expended for purposes identified in the capital facilities plan element of our comprehensive plan. RCW 82.46.010(6),defines"capital projects"as: those public works projects of a local government for planning,acquisition,construction,reconstruction,repair, replacement,rehabilitation,or improvement of streets; roads;highways;sidewalks;street and road lighting systems; traffic signals;bridges;domestic water systems;storm and sanitary sewer systems;parks;recreational facilities;law enforcement facilities;fire protection facilities;trails;libraries;administrative and judicial facilities. Revenues recorded in this fund are typically used as a matching funds for street related construction projects that are accounted for in Street Capital Projects Fund#303, Pavement Preservation Fund#311,and to pay for a portion of the annual bond payment on the City's 2014 LTGO bonds that are accounted for in the LTGO Debt Service Fund#204. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues REET 1-Taxes $ 1,065,789 $ 1,176,911 $ 1,503,787 $ 1,500,000 $ 1,000,000 Investment Interest 1,654 7,609 21,598 7,500 22,000 Total revenues 1,067,443 1,184,520 1,525,385 1,507,500 1,022,000 Expenditures Transfersout-#204 82,150 83,400 79,426 82,000 82,475 Transfersout-#303 567,113 579,636 294,558 1,048,852 504,172 Transfers out-#311 (pavement preservation) 251,049 365,286 660,479 685,329 734,300 Transfers out-#314(Barker Grade Separation) 0 3,893 111,941 38,000 50,000 Total expenditures 900,312 1,032,215 1,146,404 1,854,181 1,370,947 Revenues over(under)expenditures 167,131 152,305 378,981 (346,681) (348,947) Beginning fund balance 1,426,957 1,594,088 1,746,393 2,125,374 1,778,693 Ending fund balance $ 1,594,088 $ 1,746,393 $ 2,125,374 $ 1,778,693 $ 1,429,746 87 Fund:302 REET 2 Capital Projects Fund Spokane Valley 2019 Budget This fund is used to account for the collection and expenditures of the second one-quarter of one-percent real estate excise tax(REET 2)that is authorized through RCW 82.46. This quarter percent may only be levied by cities that are planning under the Growth Management Act and may only be expended for purposes identified in the capital facilities plan element of their comprehensive plan. RCW 82.46.035(5)defines"capital projects"as: public works projects of a local government for planning,acquisition,construction, reconstruction,repair,replacement, rehabilitation,or improvement of streets, roads,highways,sidewalks,street and road lighting systems,traffic signals, bridges,domestic water systems,storm and sanitary sewer systems,and planning,construction,reconstruction, repair,rehabilitation,or improvement of parks. Noteworthy here is that acquisition of land for parks is not a permitted use of REET 2 receipts,although it is a permitted use for street,water and sewer projects. Revenues recorded in this fund are typically used as a matching funds for street related construction projects that are accounted for in Street Capital Projects Fund#303, Pavement Preservation Fund#311,and to pay for a portion of the annual bond payment on the City's 2014 LTGO bonds that are accounted for in the LTGO Debt Service Fund#204. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues REET2-Taxes $ 1,065,789 $ 1,176,911 $ 1,503,787 $ 1,500,000 $ 1,000,000 Investment Interest 1,661 8,189 25,594 8,000 25,000 Total revenues 1,067,450 1,185,100 1,529,381 1,508,000 1,025,000 Expenditures Transfers out-#204 82,150 83,400 79,425 82,000 82,475 Transfers out-#303 331,099 164,151 81,613 1,099,434 167,434 Transfers out-#311(pavement preservation) 251,049 365,286 660,479 685,329 734,300 664,298 612,837 821,517 1,866,763 984,209 Revenues over(under)expenditures 403,152 572,263 707,864 (358,763) 40,791 Beginning fund balance 1,325,145 1,728,297 2,300,560 3,008,424 2,649,661 Ending fund balance $ 1,728,297 $ 2,300,560 $ 3,008,424 $ 2,649,661 $ 2,690,452 88 Fund:303 Street Capital Projects Fund Spokane Valley 2019 Budget The Street Capital Projects Fund accounts for monies used to finance street construction and reconstruction projects adopted in the City's 6-year Transportation Improvement Plan(TIP). Revenues to finance the projects comes from a combination of State and Federal Grants,which typically cover upwards of 80%of projects costs,with the City match portion coming from transfers from the REET 1 Capital Projects Fund#301,REET 2 Capital Projects Fund#302,and sometimes Stormwater Management Fund#402. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 8,223,959 $ 4,951,033 $ 3,561,989 $ 7,981,145 $ 4,408,681 Developer Contribution 363,894 151,600 62,244 33,032 35,700 Miscellaneous 87 29 0 0 0 Transfers in-#101 123,955 0 0 0 0 Transfersin-#301 567,113 579,636 294,701 1,048,852 504,172 Transfers in-#302 331,099 164,151 81,613 1,099,434 167,434 Transfers in-#312 Sullivan Rd W Bridge 42,730 2,022,865 455,465 0 0 Transfers in-#312 Euclid Ave-Flora to Barker 0 26,326 1,464,381 415,839 5,000 Transfers in-#312 8th&Carnahan lmprovemenl 0 11,687 218,299 425,000 45,000 Transfers in-#312 Indiana bus stops&crosswal 0 0 0 0 0 Transfers in-#312 Barker Corridor 0 0 0 148,488 267,000 Total revenues 9,652,837 7,907,327 6,138,693 11,151,790 5,432,987 Expenditures 060 Argonne Rd Corridor Upgrade SRTC 06-31 1,248,474 4,355 0 0 0 123 Mission Ave-Flora to Barker 37,956 72,909 250,119 3,762,128 5,000 141 Sullivan&Euclid PCC 9,848 62,939 1,512,193 25,000 0 142 Broadway @ Argonne/Mullan 17,771 29,030 3,702 2,341,799 12,500 149 In-House Design-Sidewalk Infill 8,177 105 0 0 0 155 Sullivan Rd W Bridge Replacement 6,482,244 5,538,823 722,384 0 0 156 Mansfield Ave.Connection 712,689 738 0 0 0 159 University Rd/1-90 Overpass Study 2,842 0 0 0 0 166 Pines Rd(SR27)&Grace Ave.Intersect study 47,322 115,820 60,574 495,000 5,000 167 City wide safety improvements 315,032 89,158 3,055 0 0 177 Sullivan Road Corridor Traffic Study 19,332 0 0 0 0 191 Vista Rd BNSF Xing Safety 190 0 0 0 0 196 8th Avenue-McKinnon to Fancher 396 0 0 0 0 201 ITS Infill Project Phase 1 37,884 47,756 7,006 437,000 5,000 205 Sprague/Barker Intersection Improvement 13,132 0 0 35,700 35,700 206 Sprague/Long Sidewalk Project 304,933 235 0 0 0 207 Indiana&Evergreen Transit Access Improv. 3,345 102,684 0 0 0 211 Sullivan Trent to Wellesley 100,649 0 (17,811) 0 0 220 Houk-Sinto-Maxwell St Preservation 15,555 0 0 0 0 221 McDonald Rd Diet(16th to Mission) 7,229 436,143 675 1,000 0 222 Citywide Reflective Signal Backplates 0 0 38,355 42,645 0 223 Pines Rd Underpass @ BNSF&Trent 2,000 0 0 0 0 (continued to next page) 89 Fund:303 Street Capital Projects Fund Spokane Valley 2019 Budget (continued from previous page) 2015 2016 2017 2018 2018 Actual Actual Actual Budget Budget Expenditures,continued 224 MuIlan Rd Street Preservation Project $ 133,069 $ 0 $ 0 $ 0 $ 0 229 32nd Ave Preservation Project 0 434,801 0 0 0 233 Broadway Ave Street Pres-Sullivan to Moore 0 56,085 0 0 0 234 Seth Woodard Sidewalk Improvements 6,204 393,046 0 0 0 238 Mirabeau Pkwy&Pines(SR-27)Traffic Signal 0 410,454 (21) 0 0 239 Bowdish Sidewalk-8th to 12th 0 63,282 389,898 5,000 0 247 8th&Carnahan Intersection Improvements 0 11,687 218,299 425,000 45,000 249 Sullivan/WellesleyIntersection 0 400 15,112 268,000 1,167,287 250 9th Ave.Sidewalk 0 10,523 181,053 2,000 0 251 Euclid Ave.-Flora to Barker 0 26,326 2,601,774 419,359 5,000 258 32nd Ave Sidewalk-SR27 to Evergreen 0 0 32,157 407,870 5,000 259 N.Sullivan Corridor ITS Projects(PE start 201 0 0 96,567 85,000 730,000 263 Citywide Signal Backplates 0 0 143 124,719 0 264 8th Ave Sidewalk 0 0 11,606 458,958 0 265 Wellesley Sidewalk Project 0 0 20,727 38,000 382,000 267 Mission Ave Sidewalk 0 0 0 60,250 420,000 273 Barker/l-90 Interchange 0 0 0 500,000 500,000 275 Barker Rd Widening-River to Euclid 0 0 0 88,000 132,000 276 Barker Rd Widening-Euclid to Garland 0 0 0 54,000 81,000 277 Barker Rd Widening-Garland to Trent 0 0 0 36,000 54,000 278 Wilbur Rd Sidewalk-Boone to Broadway 0 0 0 20,000 354,500 279 Knox Ave Sidewalk-Hutchinson to Sargent 0 0 0 20,000 294,000 281 Highland Estates Connector 0 0 0 0 200,000 Argonne Rd.Preservation 123,955 0 0 0 0 Contingency 0 0 0 999,362 1,000,000 Total expenditures 9,650,228 7,907,299 6,147,567 11,151,790 5,432,987 Revenues over(under)expenditures 2,608 28 (8,874) 0 0 Beginning fund balance 72,929 75,538 75,566 66,692 66,692 Ending fund balance $ 75,538 $ 75,566 $ 66,692 $ 66,692 $ 66,692 90 Fund:309 Park Capital Projects Fund Spokane Valley 2019 Budget The Park Capital Projects Fund was created to account for park related capital improvements. The source of financing typically consists of an annual transfer from the General Fund#001;however,in some years the City will utilize money set aside for capital projects in other funds. This has occurred with transfers in from the Paths and Trails Fund#103 and the Capital Reserve Fund#312,which have been applied towards various sections of the Appleway Trail project. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual _ Budget Budget Revenues Grant Proceeds $ 1,560 $ 150,230 $ 1,657,548 $ 1,693,200 $ 572,308 FEMA Grant Proceeds-Windstorm 0 21,875 0 0 0 Transfers in-#001(General Fund) 115,575 260,122 160,000 589,725 1,320,000 Transfers in-#103(Paths&Trails) 0 9,300 0 50,000 0 Transfers in-#105 68,000 58,388 0 0 0 Transfers in-#312(Capital Reserve) 524,812 37,132 277,437 324,100 14,788 Investment Interest 813 722 215 0 0 Insurance Proceeds 0 7,857 0 0 0 Total revenues 710,760 545,626 2,095,200 2,657,025 1,907,096 Expenditures 176 Appleway Trail(Univ.to Pines) 524,569 25,325 0 0 0 203 5 sand volleyball courts at Browns Park 241,480 0 0 0 0 208 Old Mission Trailhead 68 0 0 0 0 217 Edgecliff picnic shelter 104,257 0 0 0 0 225 Pocket dog park-phase 1 108,436 0 0 0 0 227 Appleway Trail(Pines to Evergreen) 1,803 137,063 1,816,928 0 0 231 Old Mission Trailhead Landscaping 47,066 0 0 0 0 232 Shade Structure:Discovery Park 36,340 0 0 0 0 237 Appleway Trail(Sullivan to Corbin) 0 41,123 129,986 2,086,300 5,000 241 Pocket dog park-phase 2 0 81,064 0 0 0 242 Browns Park Splashpad 0 121,959 11,222 0 0 243 Browns Park championship volleyball 0 58,388 0 0 0 244 Park signs(3) 0 7,898 0 0 0 245 Terrace View playground equip(lMndstorm) 0 59,553 0 0 0 261 Edgecliff Park Splashpad 0 0 122,577 0 0 268 Appleway Trail(Evergreen to Sullivan) 0 0 0 164,000 72,500 270 CenterPlace outdoor venue-Phase 1 0 0 0 200,000 0 271 Browns Park lighting and pathway 0 0 0 23,200 0 274 Park signs (Sullivan,Park Rd,Balfour) 0 0 0 24,000 0 280 Appleway Trail Amenities(Univ-Pines) 0 0 0 29,725 509,595 282 Browns Park volleyball courts 0 0 0 176,800 0 Browns Park restroom 0 0 0 0 160,000 Browns Park improvements 0 0 0 0 1,000,000 Swing sets 0 0 0 0 25,000 Resurface Discovery Park 0 0 0 0 40,000 Electrical Upgrade Mirabeau Point Park 0 0 0 7,700 0 Heart of the Valley Sculpture Placement 0 0 0 28,000 0 Total expenditures 1,064,019 532,373 2,080,712 2,739,725 1,812,095 Revenues over(under)expenditures (353,259) 13,253 14,488 (82,700) 95,001 Beginning fund balance 451,720 98,461 111,714 126,202 43,502 Ending fund balance $ 98,461 $ 111,714 $ 126,202 $ 43,502 $ 138,503 91 Fund:310 Civic Facility Capital Projects Fund Spokane Valley 2019 Budget The Civic Building Capital Projects Fund was initially set-up to accumulate resources to ultimately acquire or construct a City Hall building. The initial sources of revenue to set-up the fund reserves were transfers from the General Fund during 2005 through 2007,and as recently as December 31,2009,this fund had a fund balance of$5,828,600. During 2010 and 2011 the City determined that street repairs and reconstruction represented a more immediate City need and opted to expend nearly$2,000,000 of the fund balance for these projects. The projects themselves were part of a septic tank elimination program(STEP)initiated by Spokane County that resulted in the installation of sewer lines down many City streets. At that time the City decided to completely reconstruct the effected streets rather than patch them. In 2012 the City used this fund to finance a variety street related capital projects as well as the$2.5 million acquisition of an 8.4 acre parcel of land on Sprague Avenue that is adjacent to Balfour Park. Partially offsetting the cost of the land acquisition was the subsequent sale of 2.82 acres of this parcel to the Spokane County Library District who had planned to construct a library building consisting of no less than 30,000 square feet. In order for the Library District to actually construct a new building on this site they first had to have a successful voted bond issue to provide the necessary financing. In the event the Library District is unable to pass a bond by October 2017,they may sell the 2.82 acres parcel back to the City for the original purchase price of$839,285. In 2015 the General Fund began to make two annual transfers to this fund that were each related to the eventual construction of a new City Hall facility.These transfers ended after 2016: • The first transfer in the amount of$72,500,when added to the City's$434,600 annual lease payment for space in its current space totals$507,100 which was the amount we anticipated our annual bond repayment would be if we were to issue approximately$8,000,000 of limited tax general obligation bonds with a 2%issue cost over 30-years at 4.50%. • The second transfer was our estimate of the annual operating costs of a City Hall facility including utilities,janitorial, grounds maintenance and snow removal,and operating and maintenance supplies. The purpose behind making these transfers beginning in 2015 was to"create"this appropriation capacity within the General Fund. These amounts were transferred out to the General Fund in 2016 and 2017 in order to cover lease payments for the prior City Hall location in years in which the City had both a lease payment and a bond payment for the new City Hall building. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Investment Interest $ 2,113 $ 5,144 $ 9,029 $ 5,900 $ 9,000 Transfers in-#001: -Future C.H.bond pmt>$434.6k lease pmt 67,600 0 0 0 0 -Future C.H.o&m costs 271,700 344,200 0 0 0 Transfers in-#312 58,324 0 0 0 0 Total revenues 399,737 349,344 9,029 5,900 9,000 Expenditures Transfersout-#001: 0 198,734 498,500 0 0 Professional services 0 0 0 0 0 Capital Outlay-City Hall 1,136,738 0 0 0 0 Total expenditures 1,136,738 198,734 498,500 0 0 Revenues over(under)expenditures (737,001) 150,610 (489,471) 5,900 9,000 Beginning fund balance 1,919,550 1,182,549 1,333,159 843,688 849,588 Ending fund balance $ 1,182,549 $ 1,333,159 $ 843,688 $ 849,588 $ 858,588 92 Fund:311 Pavement Preservation Fund Spokane Valley 2019 Budget This fund was created during the 2011 Budget development process for the purpose of setting money aside for yet to be determined street capital improvement projects. Since inception,the pavement preservation program has been funded through a series of transfers from other City funds as well as grant proceeds.Below is a table summarizing the funding sources for Fund#311,including actuals for 2011 through 2017 and budgeted amounts for 2018 and 2019: Fund 001 101 106 123 301/302 310 Street Civic Fac. Citic Fac. General Street O&M Wear Fee Replace. REET 1&2 Capital Grants I I Total Actual 2011 584,681 0 0 0 0 500,000 0 1,084,681 2012 2,045,203 0 0 0 0 0 0 2,045,203 2013 855,857 282,000 0 616,284 300,000 0 35,945 2,090,086 2014 888,823 282,000 0 616,284 368,944 0 2,042,665 4,198,716 2015 920,000 206,618 0 616,284 502,098 0 835,224 3,080,224 2016 943,800 67,342 0 559,808 730,572 0 1,654,698 3,956,220 2017 953,200 67,342 0 0 1,320,958 0 89,208 2,430,708 8udaet 2018 962,700 67,342 1,000,000 0 1,370,658 0 1,572,500 4,973,200 2019 972,300 0 1,500,000 0 1,468,600 0 1,820,000 5,760,900 9,126,564 972,644 2,500,000 2,408,660 6,061,830 500,000 8,050,240 29,619,938 Beginning in 2013,the City committed to finance pavement preservation at a level equivalent to 6%of General Fund recurring expenditures,which has continued from that year through the 2019 budget development.Because this is a Capital Project Fund whose sole purpose is to provide for Pavement Preservation projects,any money not expended in a given year will remain in the fund and will be available for re-appropriation in subsequent years. The fund balance of Fund#123 was exhausted with the 2016 transfer of$559,808 as a consequence of following this funding strategy.In order to maintain the City's practice of setting aside funds for pavement preservation in an amount equivalent to 6%of General Fund recurring expenditures,the City will have to rely more heavily on the REET funds going forward.We have determined that the 2019 funding level of$2,440,900 is sustainable through 2023 assuming a General Fund contribution of $972,300 and a collective contribution of$1,468,600 from the REET 1 Capital Projects Fund#301 and the REET 2 Capital Projects Fund#302.The City will take advantage of grant programs directed at pavement preservation as they become available. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Transfers in-#001 $ 920,000 $ 943,800 $ 953,200 $ 962,700 $ 972,300 Transfersin-#101 206,618 67,342 67,342 67,342 0 Transfersin-#106 0 0 0 1,000,000 1,500,000 Transfers in-#123 616,284 559,804 0 0 0 Transfers in-#301 251,049 365,286 660,479 685,329 734,300 Transfers in-#302 251,049 365,286 660,479 685,329 734,300 Investment Interest 3,389 7,519 20,535 0 0 Grant Proceeds 835,224 1,654,698 89,209 1,572,500 1,820,000 Miscellaneous 0 0 0 0 0 Total revenues 3,083,613 3,963,735 2,451,244 4,973,200 5,760,900 Expenditures Pavement preservation 2,358,976 3,615,389 2,042,305 4,410,540 7,238,200 Pre-projectGeoTech 41,432 0 0 50,000 50,000 Total expenditures 2,400,408 3,615,389 2,042,305 4,460,540 7,288,200 Revenues over(under)expenditures 683,205 348,346 408,939 512,660 (1,527,300) Beginning fund balance 1,922,013 2,605,218 2,953,564 3,362,503 3,875,163 • Ending fund balance $ 2,605,218 $ 2,953,564 $ 3,362,503 $ 3,875,163 $ 2,347,863 93 Fund:312 Capital Reserve Fund Spokane Valley 2019 Budget This fund was created in 2013 to be used to account for the accumulation of resources for yet to be determined capital projects. The initial source of funds was a 2013 General Fund transfer of$7,826,207 which was followed by additional transfers from the General Fund from 2014 through 2018 in the amount of$10,059,671. Projects approved by City Council from this fund include in part: • $1,583,361 for the City's share of the$15.5 million Sullivan Road West Bridge Replacement • $2,410,573 for construction of various sections of the Appleway Trail. • $5,199,664 for construction of a new City Hall building. • $1,800,000 to remove and reconstruct Euclid Ave.from Flora to Barker after County installation of sewer. • $500,000 towards a Pines Road/BNSF Grade Separation project right-of-way acquisition. Commitments to future projects include: • $1,421,321 towards a Barker Road/BNSF Grade Separation project. • $1,485,417 towards a Pines Road/BNSF Grade Separation project. • $1,485,417 towards Barker Road corridor improvements. • $1,485,417 towards Balfour Park development. • $460,715 towards improvements at the Spokane County Library's proposed Balfour site. Future projects are yet to be determined. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Transfersin-#001 $ 1,783,512 $ 1,828,723 $ 3,003,929 $ 3,795,429 $ 0 Transfers in-#313 0 0 0 74,960 0 Investment Interest 0 16,027 52,170 16,000 50,000 Total revenues 1,783,512 1,844,750 3,056,099 3,886,389 50,000 Expenditures City Hall Sculpture Siting 0 0 41,376 5,383 0 Transfers out-#101 0 0 0 0 907,544 Transfers out-#303-Sullivan Rd W Bridge 42,730 2,060,878 455,465 0 0 Transfers out-#303-Euclid Ave-Flora to Barker 0 0 1,464,381 415,839 5,000 Transfers out-#303-8th&Carnahan Intersection 0 0 218,300 425,000 45,000 Transfers out-#303-Barker Road Corridor 0 0 0 148,488 267,000 Transfers out-#309-Appleway Trail-Univ to Pi 524,812 0 0 0 0 Transfers out-#309-Appleway Trail-Pines-Eve 0 37,132 277,437 0 0 Transfers out-#309-Appleway Trail-Corbin 0 0 0 301,900 5,000 Transfers out-#309-Appleway Trail-Evergreen 0 0 0 22,200 9,788 Transfers out-#310-City Hall 58,324 0 0 0 0 Transfers out-#313-City Hall 5,162,764 0 0 0 0 Transfers out-#314-Pines Grade Separation 0 12,975 482,216 4,809 0 Total expenditures 5,788,630 2,110,985 2,939,175 1,323,619 1,239,332 Revenues over(under)expenditures (4,005,118) (266,235) 116,924 2,562,770 (1,189,332) Beginning fund balance 8,581,715 4,576,597 4,310,362 4,427,286 6,990,056 Ending fund balance $ 4,576,597 $ 4,310,362 $ 4,427,286 $ 6,990,056 $ 5,800,724 94 Fund:313 City Hall Construction Fund Spokane Valley 2019 Budget This fund was created to account for the architectural and construction costs for a City Hall building.The building was completed in Fall of 2017. Funding for the construction came from a combination of an interfund transfer from the Capital Reserve Fund#312 in the amount of$5,162,764 and bond proceeds in the amount of$7.9 million.Land for the building site was acquired in 2015 through a purchase in the Civic Facilities Fund#310. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Transfers in-#312 $ 5,162,764 $ 0 $ 0 $ 0 $ 0 2016 LTGO Bond Proceeds 0 7,946,088 0 0 0 Investment Interest 0 26,536 18,894 0 0 Total revenues 5,162,764 7,972,624 18,894 0 0 Expenditures Capital Outlay-City Hall 373,718 6,517,094 6,065,879 0 0 Transfers out-#312 0 0 0 74,960 0 2016 LTGO Bond Issue Costs 0 96,515 0 0 0 Total expenditures 373,718 6,613,609 6,065,879 74,960 0 Revenues over(under)expenditures 4,789,046 1,359,015 (6,046,985) (74,960) 0 Beginning fund balance 0 4,789,046 6,148,061 101,076 26,116 Ending fund balance $ 4,789,046 $ 6,148,061 $ 101,076 $ 26,116 $ 26,116 95 Fund:314 Railroad Grade Separation Projects Fund Spokane Valley 2019 Budget This fund was created to account for the design and construction costs of various railroad grade separation projects that are included in the Bridging the Valley concept.Due to the anticipated size,scope,and duration of these projects,managing them in a separate fund allows for the necessary monitoring without being obscured by the variety and quantity of the other projects in the Street Capital Projects Fund#303 as well as keeping these projects from skewing the average volume of activity in Fund#303.Revenues for this fund consist of grant proceeds and transfers in from other City funds,such as the General Fund#001,the REET 1 Capital Project Fund#301 and the Capital Reserve Fund#312. Expenditures in the years of 2018 and 2019 are related to design costs for the Pines Road Underpass project and the Barker Road Overpass project. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Grant Proceeds $ 0 $ 0 $ 87,611 $ 770,000 $ 3,750,000 Investment Interest 0 0 4,072 0 0 Transfers in-#001 0 0 1,200,000 0 50,000 Transfers in-#301 0 3,893 111,941 38,000 0 Transfers in-#312 0 12,975 482,216 4,809 0 Total revenues 0 16,868 1,885,840 812,809 3,800,000 Expenditures Barker BNSF Grade Separation 0 3,893 199,552 900,000 3,800,000 Pines Rd Underpass 0 12,975 617,484 80,000 900,000 Total expenditures 0 16,868 817,036 980,000 4,700,000 Revenues over(under)expenditures 0 0 1,068,804 (167,191) (900,000) Beginning fund balance 0 0 0 1,068,803 901,612 Ending fund balance $ 0 $ 0 $ 1,068,804 $ 901,612 $ 1,612 96 Fund:402 Stormwater Management Fund Spokane Valley 2019 Budget The purpose of the Stormwater Management Fund is to account for the funds related to the cleaning,maintenance, and improvement of the City's storm drainage system. The revenue for this fund originates from a stormwater fee collected by Spokane County on behalf of the City. The annual fee is$21 for each single family unit,and for other property types a fee of$21 per each 3,160 square feet of parcel impervious surfacing is collected. Accomplishments for 2018 • Lead and participated with eastern Washington jurisdictions to meet requirements to perform effectiveness studies. • Managed State grants for storm drain cleaning and effectiveness studies. • Participated in City-led capital improvement projects with stormwater improvements. • Coordinated the update of the stormwater capital improvements program with the Economic Development Division. • Started the multi-year work on Glenrose and Central Basins Floodplain Delineation Project(FEMA Mapping). • Continued design work to disconnect piping to creeks,streams,and drainages. • Continued decreasing backlog of stormwater small-works and maintenance projects. • Started field-testing GIS-driven maintenance management program for the stormwater inspection program. Goals for 2019 • Begin the evaluation efforts for the Glenrose and Central Floodplain mapping for FEMA. • Work to evaluate and implement an asset management system for all stormwater facilities. • Continue collaboration efforts with local,State,and Federal stormwater regulatory bodies. • Continue the inventorying and mapping of all City stormwater facilities. • Continue on-going stormwater maintenance and repairs utilizing in-house and contracted services. • Coordinate stormwater system improvements,integrating with other capital projects for efficiency. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Personnel-FTE Equivalents Engineer 1.0 1.0 1.0 1.0 1.0 Engineering Technician II 1.0 1.0 1.0 1.0 1.0 Assistant Engineer 1.0 1.0 1.0 1.0 0.5 Maintenance/Construction Inspector 1.2 1.15 1.15 1.15 1.15 Planning Grants Engineer 0.25 0.25 0.25 0.25 0.25 4.40 4.40 4.40 4.40 3.90 Interns 2.0 2.0 3.0 2.0 2.0 (continued to next page) 97 Fund:402 Stormwater Management Fund Spokane Valley 2019 Budget (continued from previous page) Budget Summary Recurring Activity 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues StormwaterManagementfees $ 1,861,368 $ 1,898,210 $ 1,895,033 $ 1,870,000 $ 1,890,000 Investment Interest 2,455 7,690 20,564 7,500 20,000 Miscellaneous&Grants Proceeds 543,332 61,403 25,000 0 0 2,407,155 1,967,303 1,940,597 1,877,500 1,910,000 • Expenditures Wages,Payroll Taxes&Benefits 396,799 465,790 465,102 557,157 494,273 Supplies 30,222 12,286 11,064 14,800 10,700 Services&Charges 1,080,038 1,106,429 997,893 1,141,210 1,182,109 Intergovernmental Services 30,176 31,764 32,661 35,000 37,500 Transfers out-#001 13,400 13,400 13,400 13,400 0 Interfund Vehicle Lease-#501 0 0 12,750 12,750 12,750 1,550,635 1,629,669 1,532,870 1,774,317 1,737,332 Recurring revenues over(under) Recurring Expenditures 856,520 337,634 407,727 103,183 172,668 Nonrecurring Activity Revenues Grant Proceeds 0 0 338,384 65,000 106,000 FEMA Grant Proceeds-Windstorm 0 0 6,823 0 0 0 0 345,207 65,000 106,000 Expenditures Capital-Various Projects 700,521 94,451 331,953 450,000 450,000 Effectiveness study 192,638 110,055 196,480 15,000 10,000 Watershed studies 0 0 0 60,000 100,000 893,159 204,506 528,433 525,000 560,000 Nonrecurring revenues over(under) Nonrecurring Expenditures (893,159) (204,506) (183,226) (460,000) (454,000) Excess(Deficit)of Total Revenues Over(Under)Total Expenditures (36,639) 133,128 224,501 (356,817) (281,332) Beginning working capital 1,933,564 1,639,975 1,761,416 1,973,424 1,616,607 Ending working capital $ 1,896,925 $ 1,773,103 $ 1,985,917 $ 1,616,607 $ 1,335,275 98 Fund:403 Aquifer Protection Area Fund Spokane Valley 2019 Budget In 1985 voters of Spokane County approved a ballot proposition to create the Spokane Aquifer Protection Area(APA) as well as corresponding aquifer protection area fees with both sunsetting December 31,2005. Boundaries of the APA included portions of unincorporated areas(including what is now Spokane Valley)and the cities of Liberty Lake, Millwood and Spokane. In 2004 the City of Spokane Valley approved a resolution authorizing the inclusion of its municipal boundaries within the APA. The APA program was subsequently reauthorized through 2025 with voter approval. All fees are collected by Spokane County and include: • An annual fee of$15 per household for the withdrawal of water from properties within the APA. • An annual fee of$15 per household for on-site sewage disposal within the APA. • For commercial properties an annual fee ranging from$15 to$960 depending upon water meter size. In 2004 the City of Spokane Valley(City)entered into an interlocal agreement with Spokane County(County)that authorized the County to collect and retain APA fees through 2010 for a variety of projects including: • up to$100,000 annually through 2010 to the Spokane Regional Health District to provide for data base management related to monitoring of septic tanks and their potential impact on water quality in the Spokane Valley Rathdrum Prairie Aquifer. • a septic tank elimination program(STEP)designed to replace septic tanks with sanitary sewer systems. In the 2004 interlocal agreement the City and County also agreed that for the years 2011 through 2025 the APA fees remaining after the payment of reasonable administration and billing fees incurred by the County would be distributed annually between the County,City and City of Spokane on a proportional basis relative to the amount generated in unincorporated areas,the City and City of Spokane. The fees collected on the City's behalf by Spokane County are expended entirely on stormwater related projects that are designed to protect the aquifer. These fees plus grant monies received from a number of granting agencies finance a variety of capital projects. Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Spokane County $ 533,593 $ 391,180 $ 521,070 $ 460,000 $ 460,000 Grant Proceeds 1,036,603 0 0 445,955 317,200 Investment Interest 0 0 0 0 10,000 Total Revenues 1,570,196_ 391,180 521,070 905,955 787,200 Expenditures Capital-Various projects 530,309 362,115 58,722 648,780 832,600 Transfersout-#402 120,000 0 0 0 0 Total Expenditures 650,309 362,115 58,722 648,780 832,600 Revenues over(under)expenditures 919,887 29,065 462,348 257,175 (45,400) Beginning working capital 1,773 921,660 950,725 _ 1,413,073 1,670,248 Ending working capital $ 921,660 $ 950,725 $ 1,413,073 $ 1,670,248 $ 1,624,848 99 Fund:501 Equipment Rental&Replacement Fund Spokane Valley 2019 Budget The Equipment Rental&Replacement Fund(ER&R)is an Internal Service Fund that is designed to provide the funds necessary to purchase new vehicles and equipment at predetermined life cycles. This fund operates by charging each City department a monthly rental rate for the vehicles they use. The fee is based upon the estimated useful life of the vehicle and its replacement cost. The theory behind this program is that it allows City departments to budget vehicle replacement costs as a reoccurring expense over an extended period of time rather than as an intermittent capital expense that may be difficult to afford in any single year. In the event a City department requires an additional vehicle that actually adds to the fleet rather than simply replaces an existing vehicle,then that department must budget for the initial purchase price and transfer the necessary funds to the ER&R Fund to make the acquisition. In subsequent years the department will then begin paying a replacement fee spread out over the estimated useful life of the new vehicle. Beginning in 2017 a CenterPlace Kitchen Reserve was established through a transfer in from the General Fund in the amount of$36,600 per year for 5 years to build a total reserve of$183,000,which is the estimated replacement cost of the significant kitchen appliances and equipment at CenterPlace. Snow Plow Replacement Program The snow plow fleet currently consists of nine plow trucks.Six of the trucks are equipped with sanders and three of the trucks are equipped with 1,000-gallon tanks for placement of liquid deicer.Over the past five years the City has continued to improve the snow removal operations and has updated the snow plan accordingly.These improvements in snow operations have dictated that operating nine plows is a very efficient way to remove snow from the arterial and hillside roadways.Operating nine plows allows the performance of a full city arterial and designated hillsides plow in approximately 12 hours. In the future new plows will be purchased to replace the aging fleet as noted below and older plows will serve as backups and eventually be retired from the fleet beginning in 2022.The recommended snow plow fleet consists of eleven plows with two serving as backup plows.The two backup plows ensure that arterial roadways and hillside priority roadways can be cleared of snow per the snow plan.Having backup plows provides the City with additional plows that can be deployed in case of a mechanical breakdown or an accident during a winter storm event. The 2016 Budget included the purchase of a tandem axle plow truck with a sander for approximately$225,000.Future replacements will be single axle plows with an estimated cost of$200,000 per plow. Snow Plow Fleet Truck# Model Year YR Acquired Age at Retirement Replacement Yr Notes 206 1996 2009 26 2022 207 1997 2009 28 2025 204 1995 2009 33 2028 203 1995 2009 36 2031 205 1996 2009 38 2034 Existing Fleet (9)Snow Plows 208 1997 2009 40 2037 209 1998 2011 42 2040 211 2000 2012 43 2043 210 2010 2011 36 2046 212 2016 2016 33 2049 Truck 206 becomes a backup 213 2019 2019 33 2052 Truck 207 becomes a backup 214 2022 2022 33 2055 Truck 204 becomes a backup/206 is retired 215 2025 2025 33 2058 Truck 203 becomes a backup/207 Is retired 216 2028 2028 33 2061 Truck 205 becomes a backup/204 is retired 217 2031 2031 33 2064 Truck 208 becomes a backup/203 is retired 218 2034 2034 33 2067 Truck 209 becomes a backup/205 is retired 219 2037 2037 33 2070 Truck 211 becomes a backup/208 is retired 220 2040 2040 33 2073 Truck 210 becomes a backup/209 is retired 221 2043 2043 33 2076 Truck 212 becomes a backup/211 is retired (continued to next page) 100 Fund:501 Equipment Rental&Replacement Fund Spokane Valley 2019 Budget (continued from previous page) Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Vehicle rentals-#001 $ 19,300 $ 24,000 $ 32,500 $ 30,000 $ 30,000 Vehicle rentals-#101 12,077 31,000 23,250 21,250 21,250 Vehicle rentals-#101(plow replace.) 0 40,000 77,929 77,929 77,929 Vehicle rentals-#402 4,167 11,000 12,750 12,750 12,750 Transfers in-#001(CenterPlace kitchen reserve) 0 0 36,600 36,600 36,600 Investment Interest 1,449 4,394 9,651 4,000 9,500 Total Revenues 36,993 110,394 192,680 182,529 188,029 Expenditures Vehicle maintenance equipment 0 0 46,039 20,000 20,000 Snow plow replacement 0 134,761 110,309 0 0 Vehicle Replacement 23,790 87,679 0 0 0 Transfer out-#001 (networking equipment) 0 0 77,000 0 0 Total Expenditures 23,790 222,440 233,348 20,000 20,000 Revenues over(under)expenditures 13,203 (112,046) (40,668) 162,529 168,029 Beginning working capital 1,235,794 1,248,997 1,136,951 1,096,283 1,258,812 Ending working capital $ 1,248,997 $ 1,136,951 $ 1,096,283 $ 1,258,812 $ 1,426,841 Fund:502 Risk Management Fund Spokane Valley 2019 Budget The City of Spokane Valley is exposed to risks of loss related to a number of sources including tort;theft of,damage to,and destruction of assets;errors and omissions;injuries to employees;natural disasters;and unemployment claims filed by former employees through the State of Washington. The Risk Management Fund was established to account for all such related revenues and expenses. Revenues for this fund are comprised almost entirely from an annual transfer of money from the General Fund and the single largest expense is typically the insurance premium the City pays to our insurance provider,the Washington Cities Insurance Authority(WCIA). Budget Summary 2015 2016 2017 2018 2019 Actual Actual Actual Budget Budget Revenues Transfers in-#001 $ 325,000 $ 325,000 $ 350,000 $ 370,000 $ 390,000 Investment Interest 8 422 1,107 0 0 Total Revenues 325,008 325,422 351,107 370,000 390,000 Expenditures Auto&Property insurance 284,112 277,298 311,467 370,000 390,000 Unemployment Claims 14,722 8,820 29,066 0 0 Miscellaneous 0 0 _ 0 0 0 Total Expenditures 298,834 _ 286,118 340,533 370,000 390,000 Revenues over(under)expenditures 26,174 39,304 10,574 0 0 Beginning working capital 168,209 194,383 233,687 244,261 244,261 Ending working capital $ 194,383 _$ 233,687 $ 244,261 $ 244,261 $ 244,261 101 CITY OF SPOKANE VALLEY,WA Capital Expenditures for2019 SOURCE OF FUNDS #001 0106 #107 1001 #302 0309 #311 #312 #314 #402 #403 2019 REE71 REET2 Park Aquifer Expenditure Sold Capital Capital Capital Pavement Caplan Grade Stormwater Profession Developer Capital Outlay Description Budget General Waste PEG Projects Projects Projects Preservation Reserve Separation Management Area Grants Contributions #001 General Fund -ITcapdai replacements 107,000 107,000 Subtotal 107,000 107,000 I 1 0 I 01 01 0 l o f 01 o1 o f of o f 0 -- #107 PEG Fund -- - ---- - -- ----- - - - •PEG Capital outlay 31.000 31,000 Subtotal 31,080 e j 01 31,000 1 01 01 of of of o f 01 01 01 0 1303 Street Capital Prolects Fund 123 AOsslon Ave-Flora to barker 5.000 5.000 142 Broadway @ Argonne.IMulan FCC Irlersection 12,500 2,500 10,000 166 Pines Rd(SR27)8 Grace Ave.Intersection Safety 5,000 5,003 201 ITS Infill Project Phase 1 5,000 5000 205 Sprague/Barker InlerseoSon Improvements 35,700 35.700 247 8th 8 Carnahan Intersection Improvements 45.000 45.000 249 SndlvanoWeeesleylntersection 1,187,287 157.552 1.009,735 251 Euclid Ave.-Flora to Barker 5,000 5000 258 32nd Ave Sidewalk-SR27 to Evergreen 5.000 5,000 259 N.Sullivan Corridor ITS Project(PE start 2017) 730.000 95,550 631.4.0` 265 Wellesley Sidewall Project 382,000 51,570 330,430 267 Mission Ave Sidewalk 420000 84.000 330000 273 BarkerA-901nterrlarge 500.000 500.000 275 Barker Rd WdenIng-River to Euclid 132,000 132000 276 Barker Rd VAdening-Euclid to Garland 81.00 81.000 277 Barker Rd Widerdng-Garland to Trent 54.000 54,000 278 Wilbur Rd Sidewalk-Scone to Broadway 354.500 31.265 323,235 279 Knox Ave Sidewalk-Hutchinson to Sargent 294.000 26,169 267,831 281 Highland 0013105 Connector 200.000 2000 00 ConiOt9erey' 1.000.000 100.000 100,000 800,00 Subtotal 5.432.987 01 01 0 1 504.172 1 167,434 1 0 1 0 1 317,000 1 01 01 o I 4.408,681 1 35.700 jt309 Parks Capital Protects Fund 237 Appleway Trail Sullivan to Corbin 5.000 5,000 260 Appleway Tal-Evergreen to SWlvan 72000 9,788 62.712 200 Appleway Tag Amenities University to Pines 509.595 509.595 Ka Browns Park Restroom 160000 160000 dor Browns Pads Improvements 1,000000 1003,000 ow Swing sets 25,030 26,000 xxx Resurface Discevery Park 40,000 44000 Subtotal _ 1012.095 1.160000 I 0 1 01 01 0 1 66,000 I 01 14,788 1 01 0 1 01 572.3071 0 #311 Pavement Preservation Fund -Pavement preservation 7,230,200 972.300 1,500,000 734,300 734,300 1,477,300 1,8.23.000 Subtotal 7238.255 9723001 1,503,0001 01 734.3001 734.3001 01 1,477,300 1 01 01 D 1 01 1.82),0001 0 --.., #314 Grade Separation Fund143 Barker BNSF Grade Separation 3,600000 50,000 3,750,000 223 Pines Rd Underpass BNSF 8 Trent 900.000 500,000 4,700,000 01 61 01 50.0101 of of of 01 904000 I 0 I 01 3.793.0031 0 #402 St rmwaler Management Fund --- _ --_----+--`� -Capital-various projects 450.000 404000 50.000 Subtotal 450,000 01 u 1 of 01 of 01 01 ol 01 404000 I 01 50.0001 0 1203 Aquifer Protection Area Fund -Capital-variousproiects 832.603 614400 317,200 Subtotal 832.600 0 0 01 01 01 01 of 01 01 01 515,400 I 317,200 I 0 Total Capital Expenditures and Related Financing 20003082 2239,300 1.500.003 31,000 1,288.472 901.734 65000 1.477.300 331.788 500,000 400.000 515.400 10910188 35700 1 Contingency amount Is to cover unforeseen overruns.cods related to projects that were expected to complete In 2016 and the costs of projects that have not yet had funding sources dented. -Solar figures In Itallclaed Bold font are paid from a combination of existing fund balance and fund revenue that is not attributable to a drgk:project. 102 CITY OF SPOKANE VALLEY,WA Full Time Equivalent Employees Difference from Adopted Proposed 2018 to 2019 2009 I 2010 I 2011 I 2012 I 2013 I 2014 I 2015 I 2016 I 2017 I 2018 2019 _ +(-) #001-General Fund (1) (2) City Manager/City Cleric 5 5 5 5 5 5 5 5 5 7 6.5 (0.500) (3) City Attorney 3 3 3 3 3 3 3 3 3 3.5 3.5 0.000 Public Safety 0 0 0 0 0 0 0 0 0 0 0.12 0.120 (4) Deputy City Manager 8 8 7 7 6 6 6 6 6 3 1 (2.000) (5) Finance 10 12 11 11 10.75 11.75 11.75 11.75 11.75 11.75 11.75 0.000 Human Resources 2 2 2 2 2 2 2 2 2 2 2 0.000 Public Works 7.5 7.5 7.5 7.5 7 7.375 7.375 7.375 6.375 0 0 0.000 City Hall Operations&Maintenance 0 0 0 0 0 0 0 0 1 1 0.88 (0.120) (4) CPW-Engineering 0 0 0 0 0 0 0 0 0 12.5 13.275 0.775 (6)(7) CPW-Economic Development 0 0 0 0 0 0 0 0 0 6.375 6 (0.375) (6) CPW-Building and Planning 0 0 0 0 0 0 0 0 0 18 20 2.000 (5) CED-Administration 3 3 3 3 2 2 2 2 1 0 0 0.000 CED-Economic Development 0 0 0 0 0 0 2.5 2.65 4 0 0 0.000 CED-Development Services 0 0 0 0 0 0 11 11 10 0 0 0.000 CED-Engineering 8 8 6 6 8 7 0 0 0 0 0 0.000 CED-Planning 9 9 8.5 8.5 8 8 0 0 0 0 0 0.000 CED-Building 14.75 14.75 12.75 12.75 11.5 12.5 14 14 15 0 0 0.000 Parks&Rec-Admin 2 2 2 2 2 2 2 2 2 2 2 0.000 Parks&Rec-Recreation 1 1 1 1 1 1 1 1 1 1 1 0.000 Parks&Rec-Senior Center 1 1 1 1 1 1 1 1 1 1 1 0.000 Parks&Rec-CenterPlace 7 7 5 5 5 5 5 5 5 5 5 0.000 Total General Fund 81.25 83.25 74.75 74.75 72.25 73.625 73.625 73.775 74.125 74.125 74.025 -0.100 #101-Street Fund 5 5 5 4.5 5 5.375 5.725 5.725 5.725 5.725 7.725 2.000 (7) #303-Street Capital Project Fund 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 5 8.1 3.100 (7) #402-Stormwater Fund 4 4 4 4.5 4.5 4.75 4.4 4.4 4.4 4.4 3.9 (0.500) (7) Total FTEs 93.75 95.75 87.25 87.25 85.25 87.25 87.25 87.4 87.75 89.25 93.75 4.500 (1) FTEs for 2017 reflect the reorganization that was effective in Apri12017. The original 2017 Budget had FTEs of 88.4. (2) FTEs for 2018 reflect the budget amendment approved on May 29,2018. (3) Vacant Administrative Assistant position reduced to 50%. (4) The Maintenance Worker position was split part time with the Precinct and City Hall. (5) Two Office Assistant positions were moved from DCM to Building. (6) For the General Fund portion of the Planning Grants Engineer position(0.375 FTE),position was moved from Economic Development to Engineering. (7) Supplemental budget request for 5 FTEs,including one Senior Engineer,one Assistant Engineer, and three Construction Inspectors. 103 2018 Work Force Comparison The 30 Washington Communities with a Population of 30,000 to 100,000 CITY POPULATION FULL-TIME PART-TIME Auburn 78,960 436 1 Bothell 44,370 322 6 Bremerton 40,630 307 13 Burien 50,680 73 5 Des Moines 30,860 125 7 Edmonds 41 ,260 215 5 Federal Way 96,350 315 8 Issaquah 36,030 237 11 Kennewick 80,280 360 7 Kirkland 86,080 718 16 Lacey 48,700 262 1 Lake Stevens 31 ,740 90 3 Lakewood 59,280 202 5 Longview 37,510 309 5 Lynnwood* 36,950 342 8 Marysville 65,900 269 8 Mount Vernon 34,360 210 50 Olympia 52,160 591 16 Pasco 71 ,680 356 0 Pullman 33,280 203 34 Puyallup 40,500 260 9 Redmond 62,110 624 18 Richland 54,150 475 23 Sammamish* 62,240 106 7 Shoreline 55,060 165 11 Spokane Valley 95,810 89 2 University Place 32,610 50 7 Walla Walla 33,840 272 12 Wenatchee 34,070 160 5 Yakima 93,900 757 20 AVERAGE 297 11 Source: Association of Washington Cities Survey: 2018 Participant Data - Cities and Towns *2018 data not reported. Numbers from 2017. 104 Appendix A EMPLOYEE POSITION CLASSIFICATION MONTHLY SALARY SCHEDULE Effective January 1,2019 Position Title Grade 2019 Range City Manager Unclassified Deputy City Manager 21-22 9,066.16 - 15,576.80 City Attorney 21 9,066.16 - 14,019.24 Finance Director 21 9,066.16 - 14,019.24 Parks and Recreation Director 20 8,159.44 - 12,618.24 City Engineer 19 7,343.36 - 11,356.54 Deputy City Attorney 19 7,343.36 - 11,356.54 Human Resources Manager 19 7,343.36 - 11,356.54 Planning Manager 18 6,609.87 - 10,220.38 Building Official 18 6,609.87 - 10,220.38 Engineering Manager 18 6,609.87 - 10,220.38 Economic Development Manager 18 6,609.87 - 10,220.38 Senior Engineer 17 5,948.55 - 9,197.96 Accounting Manager 17 5,948.55 - 9,197.96 Assistant Building Official 17 5,948.55 - 9,197.96 Public Works Superintendent 17 5,948.55 - 9,197.96 Attorney 16 5,353.16 - 8,277.64 City Clerk 16 5,353.16 - 8,277.64 Engineer 16 5,353.16 - 8,277.64 Senior Administrative Analyst 16 5,353.16 - 8,277.64 Senior Planner 16 5,353.16 - 8,277.64 Development Services Coordinator 16 5,353.16 - 8,277.64 GIS/Database Administrator 16 5,353.16 - 8,277.64 Accountant/Budget Analyst 16 5,353.16 - 8,277.64 Associate Planner 15 4,818.50 - 7,450.38 Assistant Engineer 15 4,818.50 - 7,450.38 IT Specialist 15 4,818.50 - 7,450.38 Engineering Technician II 15 4,818.50 - 7,450.38 Economic Development Project Specialist 15 4,818.50 - 7,450.38 Senior Plans Examiner 15 4,818.50 - 7,450.38 Public Information Officer 15 4,818.50 - 7,450.38 Human Resource Analyst 14 4,336.92 - 6,705.86 Administrative Analyst 14 4,336.92 - 6,705.86 CenterPlace Coordinator 14 4,336.92 - 6,705.86 Planner 14 4,336.92 - 6,705.86 Building Inspector II 14 4,336.92 - 6,705.86 Plans Examiner 14 4,336.92 - 6,705.86 Engineering Technician I 14 4,336.92 - 6,705.86 Senior Permit Specialist 14 4,336.92 - 6,705.86 Code Enforcement Officer 14 4,336.92 - 6,705.86 Deputy City Clerk 14 4,336.92 - 6,705.86 Maintenance/Construction Inspector 13-14 3,902.91 - 6,705.86 Recreation Coordinator 13-14 3,902.91 - 6,705.86 Customer Relations/Facilities Coordinator 13 3,902.91 - 6,035.04 Building Inspector I 13 3,902.91 - 6,035.04 Executive Assistant 13 3,902.91 - 6,035.04 Planning Technician 13 3,902.91 - 6,035.04 Senior Center Specialist 12-13 3,513.90 - 6,035.04 Human Resources Technician 12-13 3,513.90 - 6,035.04 Permit Facilitator 12 3,513.90 - 5,431.40 Help Desk Technician 12 3,513.90 - 5,431.40 Accounting Technician 12 3,513.90 - 5,431.40 Administrative Assistant 12 3,513.90 - 5,431.40 Permit Specialist 11-12 3,161.54 - 5,431.40 Maintenance Worker 11-12 3,161.54 - 5,431.40 Office Assistant II 10-11 2,845.20 - 4,888.50 Custodian 10 2,845.20 - 4,398.62 Office Assistant I 9-10 2,561.00 - 4,398.62 Note: Slight rounding differences may exist between the figures reflected on this page and the actual payroll rates computed by the Eden Payroll System. 105 CITY OF SPOKANE VALLEY,WA Glossary of Budget Terms Accrual Basis—A basis of accounting in Capital Improvement — Expenditures which revenues and expenditures are related to acquisition, expansion or recorded at the time they occur as rehabilitation of an element of the opposed to when cash is actually received government's physical plant; sometimes or spent. referred to as infrastructure. Appropriation — A legal authorization Capital Outlay—Fixed assets that have granted by the City Council to make general value of$5,000 or more and have expenditures and to incur obligations for a useful economic lifetime of more than a specific purpose. one year. Assessed Valuation — The valuation set Capital Project — Major construction, upon real estate and certain personal acquisition, or renovation activities property by the County Assessor as a which add value to government's basis for levying property taxes. physical assets or significantly increase their useful life, also called capital Authorized Positions — Employee improvements. positions, which are authorized in the adopted budget, to be filled during the Capital Projects Fund—A fund created year. to account for all resources and expenditures used for the acquisition of Bond — A long-term promise to repay a fixed assets except those financed by specified amount (the face amount of the enterprise funds. bond) on a particular date (the maturity date). The most common types of bonds Contingency — A budgetary reserve set are general obligation revenue bonds. aside for emergencies or unforeseen Bonds are primarily used to finance expenditures not otherwise budgeted. capital projects. Contractual Services — Services Budget—A plan of financial activity for rendered to a government by private a specified period of time (fiscal year or firms, individuals, or other governmental biennium) indicating all planned agencies. revenues and expenses for the budget period. Debt Service — Payment of interest and principal on borrowed money according Budget Message — The opening section to a predetermined payment schedule. of the budget that provides the City Council and the public with a general Department—The basic unit of service summary of the most important aspects of responsibility, encompassing a broad the budget, changes from the current and mandate of related service previous years, and the views and responsibilities. recommendations of the Mayor. 106 Division — Can be a subunit of a department which encompasses a GASB — The Governmental Accounting substantial portion of the duties assigned Standards Board, established in 1985, is to a department(e.g.Building Division in the current standard-setting board for the Planning and Community governmental GAAP. Development Department). General Fund—The principal operating Encumbrance — The commitment of fund of the City used for general appropriated funds to purchase an item or governmental operations. Taxes and fees service. To encumber funds means to set that generally have no restriction on their aside or commit funds for a specified use support it. future expenditure. General Obligation (G.O.) Bonds — Expense — Charges incurred (whether This type of bond is backed by the full paid immediately or unpaid) for faith, credit and taxing power of the operations,maintenance, interest or other government issuing it. charges. Indirect Cost—A cost necessary for the Face Value — The amount of principal functioning of the organization as a that must be paid at maturity for a bond whole, but which cannot be identified issue. with a specific product, function or activity. Fiscal Year — A twelve-month period designated as the operating year for Infrastructure—The physical assets of a accounting and budgeting purposes in an government (e.g. streets, water, sewer, organization. public buildings, and parks). Full-time Equivalent Position (FTE) — Interfund Transfers—The movement of A full-time or part-time position monies between funds of the same converted to the decimal equivalent of a governmental entity. full-time position based on 2,080 hours per year. For example,a part-time person Levy—To impose taxes for the support of working 20 hours per week would be the governmental activities. equivalent of 0.5 of a full-time position. Long-term Debt—Debt with a maturity Fund—A fiscal entity with revenues and of more than one year after the date of expenses that are segregated for the issuance. purpose of carrying out a specific purpose or activity. Mission Statement—A broad statement of the intended accomplishment or basic GAAP—Generally Accepted Accounting purpose of a program. Principles. Uniform minimum standards for financial accounting and recording, Modified Accrual Accounting—A basis encompassing the conventions,rules,and of accounting in which expenditures are procedures that define accepted accrued but revenues are accounted for accounting principles. when they become measurable and 107 available. Since this type of accounting Taxes—Compulsory charges levied by a basis is a conservative financial government for the purpose of financing approach, it is recommended as the services performed for the common standard for most governmental funds. benefit. This term does not include specific charges made against particular Operating Budget—The portion of the persons or property for current or budget that pertains to daily operations permanent benefits such as special that provide basic governmental services. assessments. Neither does the term include charges for services rendered Ordinance — A formal legislative only to those who pay, for example, enactment by the City Council. If it is not sewer service charges. in conflict with any higher form of law, such as a statute or constitutional Unreserved Fund Balance—The portion provision, it has the full force and effect of a fund's balance that is not restricted of law within the boundaries of the for a specific purpose and is available for municipality to which it applies. general appropriation. Program — The smallest organization User Charges—The payment of a fee for that delivers a specific set of services. A direct receipt of a public service by the program may be an entire department; or party who benefits from the service. if a department encompasses significantly diverse responsibilities or Vision Statement — A short statement large work forces, a single department that conveys the big picture of the may be divided into two or more organization. It is general in scope, not programs. restricting. It answers the question "Why?" Reserve— An account used to either set aside budgeted revenues that are not required for expenditure in the current budget year or to earmark revenues for a specific future purpose. Resolution — A special or temporary order of a legislative body—an order of a legislative body requiring less legal formality than an ordinance or statute. Resources—Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. Revenue— Sources of income financing the operations of government. 108