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HomeMy WebLinkAbout2014-11-18 - Agendas - Final City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville,AR 72701 479-575-8323 TDD 479-521-1316 Final Agenda Tuesday, November 18, 2014 5:30 PM City Hall Room 219 City Council: Adella Gray Ward 1 Sarah Marsh Ward 1 Mark Kinion Ward 2 Matthew Petty Ward 2 Justin Tennant Ward 3 Martin W. Schoppmeyer, Jr. Ward 3 Rhonda Adams Ward 4 Alan Long Ward 4 Elected Officials: Mayor Lioneld Jordan City Attorney Kit Williams City Clerk Sondra Smith City Council Final Agenda Tuesday,November 18, 2014 Call to Order Roll Call Pledge of Allegiance Mayor's Announcements,Proclamations and Recognitions City Council Meeting Presentations,Reports and Discussion Items: Agenda Additions: A. Consent: 1. 2014-0314 Approval of the November 6, 2014 City Council meeting minutes. APPROVED 2. 2014-0458 A resolution to approve the purchase of nine (9) modular desk systems from Norman Company of Fort Smith, Arkansas pursuant to the U.S. Communities Government Purchasing Alliance contract in the amount of$39,929.73. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 196-14 3. 2014-0463 A resolution to approve a budget adjustment recognizing hazmat service revenue received by the Fire Department from Washington County in 2014 in the amount of$3,310.00. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 197-14 4. 2014-0464 A resolution to approve a budget adjustment in the amount of$800.00 representing donation revenue from Pierce Manufacturing, Inc., Smith Two-Way Radio, Inc., and G&W Diesel Service for the Fayetteville Fire Department's annual employee service award banquet. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 198-14 5. 2014-0469 A resolution to authorize acceptance of an Arkansas Firewise Grant in the amount of$500.00 from the Arkansas Forestry Commission for use by the Fire Department, and to approve a budget adjustment. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 199-14 City of Fayetteville,Arkansas Page 2 Printed on 101912014 City Council Final Agenda Tuesday,November 18, 2014 6. 2014-0473 A resolution to approve Change Order No. 2 to the contract with Lose and Associates in the amount of$3,277.41 for additional geotechnical testing for the design of the Regional Park. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 200-14 7. 2014-0470 A resolution to authorize acceptance of a 2014 Arkansas Department of Environmental Quality grant through the Boston Mountain Solid Waste District in the amount of$10,000.00 for the purchase of public space recycling containers, and to approve a budget adjustment. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 201-14 8. 2014-0466 A resolution to authorize acceptance of a 2014 Arkansas Department of Environmental Quality grant through the Boston Mountain Solid Waste District in the amount of$5,000.00 for an update of the Code Compliance activity book, and to approve a budget adjustment. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 202-14 B. Unfinished Business: 1. 2014-0451 A resolution amending the Master Street Plan by removing the section of future collector street between Oakland Zion Road and Altus Drive, as described and depicted in the attached map. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 203-14 C. New Business: 1. 2014-0465 An ordinance to waive the requirements of formal competitive bidding and authorize a contract with Voice Print International, Inc. for the purchase of a digital voice recording system in the amount of$70,706.00, and to approve a budget adjustment. PASSED AND SHALL BE RECORDED AS ORDINANCE NO. 5721 2. 2014-0471 A resolution to authorize and adopt continuing disclosure compliance policies and procedures with respect to city debt issues and to authorize the mayor or designee to self-report and accept settlement terms under the U.S. Securities and Exchange Commission's Municipalities Continuing Disclosure Cooperation Initiative. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 204-14 City of Fayetteville,Arkansas Page 3 Printed on 101912014 City Council Final Agenda Tuesday,November 18, 2014 3. 2014-0479 A resolution to adopt the 2015 Annual Budget and Work Program. THIS RESOLUTION WAS TABLED TO THE DECEMBER 2, 2014 CITY COUNCIL MEETING 4. 2014-0525 A resolution to express the city council's intent to amend Chapter 119 Civil Rights Administration of the Fayetteville Code after its passage by Fayetteville voters. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 205-14 D. City Council Agenda Session Presentations: E. City Council Tour: F. Announcements: G. Adjournment: 6:28 p.m. City of Fayetteville,Arkansas Page 4 Printed on 101912014 City Council Final Agenda Tuesday,November 18, 2014 NOTICE TO MEMBERS OF THE AUDIENCE All interested persons may address the City Council on agenda items of New and Old Business. Please wait for the Mayor to request public comment and then come to the podium, give your name, address, and comments about the agenda item. Please address only the Mayor. Questions are usually answered by the Mayor, Aldermen or Staff after the public comment period is over. Please keep your comments brief and respectful. Each person is only allowed one turn at the microphone for discussion of an agenda item. All cell phones must be silenced and may not be used within the City Council Chambers. Below is a portion of the Rules of Order and Procedure of the Fayetteville City Council pertaining to City Council meetings: Agenda additions. A new item which is requested to be added to the agenda at a City Council meeting should only be considered if it requires immediate City Council consideration and if the normal agenda setting process is not practical. The City Council may only place such new item on the City Council meeting's agenda by suspending the rules by two-thirds vote. Such agenda addition shall be heard prior to the Consent Agenda. Consent Agenda. Consent Agenda items shall be read by the Mayor and voted upon as a group without discussion by the City Council. If an Alderman wishes to comment upon or discuss a Consent Agenda item that item shall be removed and considered immediately after the Consent Agenda has been voted upon. Old business and new business. Presentations by staff and applicants. Agenda items shall be introduced by the Mayor and, if an ordinance, read by the City Attorney. City staff shall then present a report. An agenda applicant (city contractor, rezoning or development applicant, etc.) may present its proposal only during this presentation period,but may be recalled by an alderman later to answer questions. Staff and applicants may use electronic visual aids in a City Council meeting as part of their presentation. Public comments. Public comment shall be allowed for all members of the audience on all items of old and new business and subjects of public hearings. No electronic visual aid presentations shall be allowed, but the public may submit photos, petitions, etc. to be distributed to the City Council. If a member of the public wishes for the City Clerk to distribute materials to the City Council before its meeting, such materials should be supplied to the City Clerk office no later than 9:00 a.m. on the day of the City Council meeting. Any member of the public shall first state his or her name and address, followed by a concise statement of the person's position on the question under discussion. Repetitive comments should be avoided;this applies to comments made previously either to the City Council or to the Planning Commission when those Planning Commission minutes have been provided to the Aldermen. All remarks shall be addressed to the Mayor or the City Council as a whole and not to any particular member of the City Council. No person other than the Aldermen and the person having the floor shall be permitted to enter into any discussions without permission of the Mayor. No questions City of Fayetteville,Arkansas Page 5 Printed on 101912014 City Council Final Agenda Tuesday,November 18, 2014 shall be directed to an Alderman or city staff member except through the Mayor. Courtesy and respect. All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall leave the podium. Interpreters or TDD for hearing impaired are available for all City Council meetings, a 72 hour advance notice is required. For further information or to request an interpreter,please call 575-8330. A copy of the complete City Council agenda is available at www.fayetteville-ar.gov or in the office of the City Clerk, 113 W. Mountain, Fayetteville, Arkansas. City of Fayetteville,Arkansas Page 6 Printed on 101912014 City Council Meeting: November 18,2014 Adjourn: (o:a8 p,'" - Subject: Roll 0)Jt,,, , Gray f MaAdk Marsh Kinion ✓ ��urrKsfc^' Petty f Tennant ✓ P Schoppmeyer Adams Long �✓ Mayor Jordan +f Subject: Motion To: Motion By: Seconded: Gray Marsh Kinion Petty Tennant Schoppmeyer Adams Long Mayor Jordan City Council Meeting: November 18,2014 Subject: Consent Motion To: Motion By: P Seconded: Gray Marsh ,OaW-id Kinion Q/ Petty M rhea Tennant W/ bud r� Schoppmeyer ✓ �Q� I1�fl Adams ✓' Long Mayor Jordan 7,0 Subject: Motion To: Motion By: Seconded: Gray Marsh limon Petty Tennant Schoppmeyer Adams Long Mayor Jordan City Council Meeting: November 18,2014 Subject: PPL 14-4790 Master Plan Amendment UIVIIAJ d-0 Motion To: f cAJ f440 10k o a x 'WtOA 1�r Motion By: Seconded: AAt Q B. 1 Gray ✓ ,� Unfinished Marsh CI Kinion ✓ Business ✓ Petty Tennant ,� ✓ Schoppmeyer ✓ Adams Long Mayor Jordan �V 7-0 -7-0 Subject: Motion To: Motion By: Seconded: Gray Marsh Kinion Petty Tennant Schoppmeyer Adams Long Mayor Jordan City Council Meeting: November 18,2014 Subject: Voice Print International, Inc. Motion To: vn Motion By: P Seconded: Ad C. 1 Gray �/ ✓ r/ New Marsh "Awe ,( Business I{inion ✓ ,/ Petty ✓ ✓ Tennant Schoppmeyer ✓ "� Adams +� Long ✓ °� "� Mayor Jordan 7-0 Subject: Municipalities Continuing Disclosure Cooperative Initiative Motion To: /) ht rma�G Motion By: Seconded: C.2 Gray New Marsh M Business Kinion ✓ Petty ✓ Tennant ✓� —' Schoppmeyer Adams Long Mayor Jordan 7-® City Council Meeting: November 18,2014 Subject: 2015 Annual Budget and Work Program Motion To: Motion By: Seconded: C. 3 Gray New Marsh W1 Ateot Business I{inion ,/ -�---- Petty ✓ Tennant 'FO jq_ R Schoppmeyer CAI pv iAdams ✓ Long Mayor Jordan 7-0 Subject: City Council Intent to Amend Chapter 119 Motion To: Motion By: Seconded: C. 4 Gray r/ New Marsh W aW16Wt Business Kinion Petty f -- Tennant Schoppmeyer ✓ Adams a✓" Long Mayor Jordan 'f-D City Council Meeting: Subject: Motion To: 1" Motion By: Seconded: , Gray Marsh Kinion Al Petty Tennant � Schoppmeyer Adams Long Mayor Jordan C2 -s- Subject:Subject: Motion To: Motion By: Seconded: Gray Marsh Kinion Petty Tennant Schoppmeyer Adams Long Mayor Jordan Ll DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY Kit Williams City Attorney Blake Pennington Assistant City Attorney TO: Mayor Jordan Patti Mulford Paralegal THRU: Sondra Smith, City Clerk FROM: Kit Williams, City Attorney DATE: November 19,2014 RE: Resolutions and Ordinances prepared by the City Attorney's Office and passed at the City Council meeting of November 18,2014 1. A resolution to approve the purchase of nine (9) modular desk systems from Norman Company of Fort Smith, Arkansas pursuant to the U.S. Communities Government purchasing alliance contract in the amount of$39,929.73. 2. A resolution to approve a budget adjustment recognizing hazmat services revenue received by the Fire Department from Washington County in 2014 in the amount of$3,310.00. 3. A resolution to approve a budget adjustment in the amount of $800.00 representing donation revenue from Pierce Manufacturing, Inc., Smith Two-Way Radio, Inc., and G&W Diesel Service for the Fayetteville Fire Department's annual employee service award banquet. 4. A resolution to authorize acceptance of an Arkansas Firewise Grant in the amount of $500.00 from the Arkansas Forestry Commission for use by the Fire Department, and to approve a budget adjustment. 5. A resolution to approve change order no. 2 to the contract with Lose And Associates in the amount of$3,277.41 for additional geotechnical testing for the design of the regional park. 6. A resolution to authorize acceptance of a 2014 Arkansas Department of Environmental Quality Grant through the Boston Mountain Solid Waste District in the amount of$10,000.00 for the purchase of public space recycling containers, and to approve a budget adjustment. 7. A resolution to authorize acceptance of a 2014 Arkansas Department Of Environmental Quality Grant through the Boston Mountain Solid Waste District in the amount of$5,000.00 for an update of the code compliance activity book, and to approve a budget adjustment. 8. An ordinance to waive the requirements of formal competitive bidding and authorize a contract with Voice Print International, Inc. for the purchase of a digital voice recording system in the amount of$70,706.00, and to approve a budget adjustment. 9. A resolution to authorize and adopt continuing disclosure compliance policies and procedures with respect to city debt issues and to authorize the Mayor or designee to self-report and accept settlement terms under the U.S. Securities And Exchange Commission's Municipalities Continuing Disclosure Cooperation Initiative. 10. A resolution to express the City Council's intent to amend Chapter 119 Civil Rights Administration of the Fayetteville Code after its passage by Fayetteville voters. 2 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 479-575-8323 TDD-479-521-1316 Meeting Agenda - Final Tuesday, November 18, 2014 5:30 PM City Hall--Room 219 City Council Adella Gray Ward 1 Sarah Marsh Ward 1 Mark Kinion Ward 2 Matthew Petty Ward 2 Justin Tennant Ward 3 Martin W. Schoppmeyer, Jr. Ward 3 Rhonda Adams Ward 4 Alan Long Ward 4 ELECTED OFFICIALS: Mayor Lioneld Jordan City Attorney Kit Williams City Clerk Sondra Smith City Council Meeting Agenda-Final November 18,2014 Call To Order Roll Call Pledge of Allegiance Mayor's Announcements, Proclamations and Recognitions City Council Meeting Presentations, Reports and Discussion Items: 1. 2014-0477 Quarterly Financial Report- 3rd Quarter 2014, Paul Becker, Finance Director Agenda Additions: A. Consent: A. 1 2014-0314 Approval of the November 6, 2014 City Council Meeting Minutes A. 2 2014-0458 A RESOLUTION TO APPROVE THE PURCHASE OF NINE (9) MODULAR DESK SYSTEMS FROM NORMAN COMPANY OF FORT SMITH, ARKANSAS PURSUANT TO THE U.S. COMMUNITIES GOVERNMENT PURCHASING ALLIANCE CONTRACT IN THE AMOUNT OF $39,929.73 Attachments: 2014-0458 Norman Company A. 3 2014-0463 A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT RECOGNIZING HAZMAT SERVICES REVENUE RECEIVED BY THE FIRE DEPARTMENT FROM WASHINGTON COUNTY IN 2014 IN THE AMOUNT OF $3,310.00 Attachments: SRF &SRM Hazmat Revenue BA BUDGET ADJUSTMENT FORM Hazmat Revenue Murphy Oil Response A. 4 2014-0464 A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $800.00 REPRESENTING DONATION REVENUE FROM PIERCE MANUFACTURING, INC., SMITH TWO-WAY RADIO, INC., AND G&W DIESEL SERVICE FOR THE FAYETTEVILLE FIRE DEPARTMENT'S ANNUAL EMPLOYEE SERVICE AWARD BANQUET Attachments: SRF &SRM Donation Revenue Recognized BA BUDGET ADJUSTMENT FORM Donation Revenue Nov 14 City of Fayetteville,Arkansas Page 2 Printed on 1111412014 City Council Meeting Agenda-Final November 18,2014 A. 5 2014-0469 A RESOLUTION TO AUTHORIZE ACCEPTANCE OF AN ARKANSAS FIREWISE GRANT IN THE AMOUNT OF $500.00 FROM THE ARKANSAS FORESTRY COMMISSION FOR USE BY THE FIRE DEPARTMENT, AND TO APPROVE A BUDGET ADJUSTMENT Attachments: SRF and SRM for Firewise Grant Acceptance 2014 BA BUDGET ADJUSTMENT FORM Firewise Grant 2014 A. 6 2014-0473 A RESOLUTION TO APPROVE CHANGE ORDER NO. 2 TO THE CONTRACT WITH LOSE AND ASSOCIATES IN THE AMOUNT OF $3,277.41 FOR ADDITIONAL GEOTECHNICAL TESTING FOR THE DESIGN OF THE REGIONAL PARK Attachments: 2014-0473 CO#2 with Lose &Assoc for Regional Park A. 7 2014-0470 A RESOLUTION TO AUTHORIZE ACCEPTANCE OF A 2014 ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY GRANT THROUGH THE BOSTON MOUNTAIN SOLID WASTE DISTRICT IN THE AMOUNT OF $10,000.00 FOR THE PURCHASE OF PUBLIC SPACE RECYCLING CONTAINERS, AND TO APPROVE A BUDGET ADJUSTMENT Attachments: Boston Mountain Recycling Grant Public Space Recycling Containers BA Public Space Recycling Containers BM A. 8 2014-0466 A RESOLUTION TO AUTHORIZE ACCEPTANCE OF A 2014 ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY GRANT THROUGH THE BOSTON MOUNTAIN SOLID WASTE DISTRICT IN THE AMOUNT OF $5,000.00 FOR AN UPDATE OF THE CODE COMPLIANCE ACTIVITY BOOK, AND TO APPROVE A BUDGET ADJUSTMENT Attachments: Boston Mountain Recycling Grant Code Compliance Activity Book BA Code Compliance Activity Book.xlsm B. Unfinished Business: B. 1 2014-0451 A RESOLUTION AMENDING THE MASTER STREET PLAN BY REMOVING THE SECTION OF FUTURE COLLECTOR STREET BETWEEN OAKLAND ZION ROAD AND ALTUS DRIVE, AS DESCRIBED AND DEPICTED IN THE ATTACHED MAP. Attachments: 2014-0451 PPL 14-4790 Master Plan Amendment C. New Business: City of Fayetteville,Arkansas Page 3 Printed on 1111412014 City Council Meeting Agenda-Final November 18,2014 C. 1 2014-0465 AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE A CONTRACT WITH VOICE PRINT INTERNATIONAL, INC. FOR THE PURCHASE OF A DIGITAL VOICE RECORDING SYSTEM IN THE AMOUNT OF $70,706.00, AND TO APPROVE A BUDGET ADJUSTMENT Attachments: Voice Print International Inc BA-Telephone Recording System .xlsm C. 2 2014-0471 A RESOLUTION TO AUTHORIZE AND ADOPT CONTINUING DISCLOSURE COMPLIANCE POLICIES AND PROCEDURES WITH RESPECT TO CITY DEBT ISSUES AND TO AUTHORIZE THE MAYOR OR DESIGNEE TO SELF-REPORT AND ACCEPT SETTLEMENT TERMS UNDER THE U.S. SECURITIES AND EXCHANGE COMMISSION'S MUNICIPALITIES CONTINUING DISCLOSURE COOPERATION INITIATIVE Attachments: Self-Report under the Municipalities Continuing Disclosuree Exhibit A Disclose Compliance Policies & Procedure C. 3 2014-0479 A RESOLUTION TO ADOPT THE 2015 ANNUAL BUDGET AND WORK PROGRAM Attachments: 2014-0479 2015 Annual Budget and Work Program Additional 2015 Proposed Budget 11 12 2014 2 C. 4 2014-0525 A RESOLUTION TO EXPRESS THE CITY COUNCIL'S INTENT TO AMEND CHAPTER 119 CIVIL RIGHTS ADMINISTRATION OF THE FAYETTEVILLE CODE AFTER ITS PASSAGE BY FAYETTEVILLE VOTERS Attachments: Agenda Packet Intent to Amend Civil Rights Ord D. City Council Agenda Session Presentations: E. City Council Tour: F. Announcements: G. Adjournment NOTICE TO MEMBERS OF THE AUDIENCE City of Fayetteville,Arkansas Page 4 Printed on 1111412014 City Council Meeting Agenda-Final November 18,2014 All interested persons may address the City Council on agenda items of New and Old Business. Please wait for the Mayor to request public comment and then come to the podium, give your name, address, and comments about the agenda item. Please address only the Mayor. Questions are usually answered by the Mayor, Aldermen or Staff after the public comment period is over. Please keep your comments brief and respectful. Each person is only allowed one turn at the microphone for discussion of an agenda item. All cell phones must be silenced and may not be used within the City Council Chambers. Below is a portion of the Rules of Order and Procedure of the Fayetteville City Council pertaining to City Council meetings: Agenda additions. A new item which is requested to be added to the agenda at a City Council meeting should only be considered if it requires immediate City Council consideration and if the normal agenda setting process is not practical. The City Council may only place such new item on the City Council meeting's agenda by suspending the rules by two-thirds vote. Such agenda addition shall be heard prior to the Consent Agenda. Consent Agenda. Consent Agenda items shall be read by the Mayor and voted upon as a group without discussion by the City Council. If an Alderman wishes to comment upon or discuss a Consent Agenda item, that item shall be removed and considered immediately after the Consent Agenda has been voted upon. Old business and new business. Presentations by staff and applicants. Agenda items shall be introduced by the Mayor and, if an ordinance, read by the City Attorney. City staff shall then present a report. An agenda applicant(city contractor, rezoning or development applicant, etc.)may present its proposal only during this presentation period, but may be recalled by an alderman later to answer questions. Staff and applicants may use electronic visual aids in a City Council meeting as part of their presentation. Public comments. Public comment shall be allowed for all members of the audience on all items of old and new business and subjects of public hearings. No electronic visual aid presentations shall be allowed, but the public may submit photos,petitions, etc. to be distributed to the City Council. If a member of the public wishes for the City Clerk to distribute materials to the City Council before its meeting, such materials should be supplied to the City Clerk office no later than 9:00 a.m. on the day of the City Council meeting.Any member of the public shall first state his or her name and address, followed by a concise statement of the person's position on the question under discussion. Repetitive comments should be avoided,this applies to comments made previously either to the City Council or to the Planning Commission when those Planning Commission minutes have been provided to the Aldermen. All remarks shall be addressed to the Mayor or the City Council as a whole and not to any particular member of the City Council. No person other than the Aldermen and the person having the floor shall be permitted to enter into any discussions without permission of the Mayor. No questions shall be directed to an Alderman or city staff member except through the Mayor. City of Fayetteville,Arkansas Page 5 Printed on 1111412014 City Council Meeting Agenda-Final November 18,2014 Courtesy and respect. All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall leave the podium. Interpreters or TDD for hearing impaired are available for all City Council meetings, a 72 hour advance notice is required. For further information or to request an interpreter,please call 575-8330. A copy of the complete City Council agenda is available at accessfayetteville.org or in the office of the City Clerk, 113 W. Mountain, Fayetteville, Arkansas. City of Fayetteville,Arkansas Page 6 Printed on 1111412014 City of Fayetteville, Arkansas 2015 Annual Budget and Work Program City Council and Other Elected Officials Adella Gray, Ward 1 - Position 1 Sarah Marsh, Ward 1 - Position 2 Mark Kinion, Ward 2 - Position 1 Matthew Petty, Ward 2 - Position 2 Justin Tennant, Ward 3 - Position 1 Martin W. Schoppmeyer, Jr., Ward 3 - Position 2 Rhonda Adams, Ward 4 - Position 1 Alan Long, Ward 4 - Position 2 Kit Williams, City Attorney Sondra Smith, City Clerk/Treasurer David Stewart, District Judge Submitted by Lioneld Jordan, Mayor Don Marr, Chief of Staff Paul A. Becker, Chief Financial Officer Greg Tabor, Police Chief David Dayringer, Fire Chief Prepared by Kevin Springer, Budget Director Barbara Fell, Senior Financial Analyst Liz Hutchens, Financial Analyst 17ayel eville ARKANSAS MISSION STATEMENT The City of Fayetteville's mission statement is a direct result of a volunteer team of employees charged with creating a mission statement that expressed the service core of City operations, reflected our beliefs concerning City services, and was easy to remember. All City employees were given an opportunity to provide input for the mission statement. The mission statement was then adopted by the City Council and is as follows: To protect and improve our quality of life by listening to and serving the people with pride and fairness. City of Fayetteville, Arkansas Table of contents Budget Message• Transmittal Memo from the Mayor to council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I-II Budget Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .III-xi Budget Resolution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .XII Budget Process and Policies: Budget Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-2 Budget Flowchart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Financial Policies: Revenue Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Expenditure Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 DebtPolicy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Reserve Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Investment and cash Management Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Capital Improvement Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Financial Reporting Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Administrative Procedures to Adjust the Approved Budget. . . . . . . . . . . . . . . . . . . . . . .7-8 Budget Organizational Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-10 Consolidated Fund - Department - Program Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Fund Summaries• Chart of Fund Types - Governmental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Chart of Fund Types - Proprietary & Fiduciary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Sources and uses of Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Multi-Year Comparison - Adopted Budget Expenditures. . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Governmental Funds: General Fund (1010) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17-25 Fundsummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27-37 special Revenue Funds: Street Fund (2100) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39-40 Fundsummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42-43 Parking Fund (2130) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 FundSummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 community Development Block Grant Fund (2180) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 Fundsummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 Special State Grants Fund (2230) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Fundsummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 City of Fayetteville, Arkansas Table of contents Energy Block Grant Fund (2240) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57 FundSummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 Parks Development Fund (2250) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 FundSummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Impact Fee Fund (2300) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Fundsummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 Drug Law Enforcement Fund (2930) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69 FundSummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 Debt service Funds: TIF Bond Fund (3370) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73 Fundsummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 Parking Deck Bond Fund (3380) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77 FundSummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79 sales Tax Bond Fund (3440) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81 FundSummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82 category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83 Capital Projects Funds: Replacement & Disaster Recovery Fund (4270) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85 FundSummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86 category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87 sales Tax capital Improvements Fund (4470) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89 Fundsummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90 category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91 Capital Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92-93 wastewater system Improvements Project Fund (4480) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95 FundSummary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96 Category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97 sales Tax construction Bond Fund (4520) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99 Fund summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100 category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101 Parking Deck Project Fund (4560) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 Fund summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105 City of Fayetteville, Arkansas Table of contents Enterprise Funds: water & sewer Fund (5400) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107-109 Operating Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110-111 Category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112-115 Solid waste Fund (5500) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117-118 operating Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119-120 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121-122 Airport Fund (5550) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123-124 Operating Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125-126 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127 Town center and Parking Facility Fund (5600) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128 Operating Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129 category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130 Trust Funds: Police Pension Fund (6800) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133 Operating Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134 category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135 Fire Pension Fund (6810) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137 operating Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138 Category Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139 Internal service Funds: shop Fund (9700) : Fund Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141 operating Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142-143 category summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .144 Personnel summary: Personnel summary by organization chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145 Personnel Summary by Funding Source (FTE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146 Personnel History by Funding source (2005-2014) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147 Personnel summary by Funding source (Program) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148-150 Personnel variation Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151 Personnel summary by Activity (FTE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152 Personnel History by Activity (2005-2014) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153 Personnel Summary by Activity (Program) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154-155 Personnel Detail by Activity & Division. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156-168 Frozen Positions by Activity & Division. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169-170 City of Fayetteville, Arkansas Table of contents Capital & Debt• capital Improvements Program Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171-173 Capital Improvements Program Directional Information. . . . . . . . . . . . . . . . . . . . . .174-176 Capital Projects Summary (2014) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177 capital Projects comprehensive Detail (2014) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178-181 Capital Budget (2014) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182-193 Debt Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .194 Description of outstanding Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195-196 Schedule of Bonds Outstanding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197 Debt Service Payment Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198 Legal Debt Margin computation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199 Debt to Maturity Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200 Appendix• Organizational Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .201 List of Elected officials, Administrative officials, & Management Staff. . . . . . .202 outside Agency Funding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203 Acronyms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204-206 Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207-212 Index• Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213-215 November b, 2014 Members of City Council and Citizens of Fayetteville I am pleased to submit my proposed budget for 2015 for the City of Fayetteville. This budget has been prepared in accordance with the Arkansas Statutes and City Ordinances that require the Mayor, under the aldermanic form of government, to submit to the City Council the annual budget for approval. This budget allocates necessary funding for all municipal operations as well as necessary adjustments to the Capital Improvements Program for 2015. Once again, the current budget was formulated in the context of my primary budget goals considering current economic conditions. 2015 Budgetary Goals My primary goals for 2015 are as follows: To provide the same level of services to the public To retain the work force at the current level To avoid increases in taxes to the citizen by keeping the millage rate the same as 2009 To continue to provide services to the citizen in the most efficient and effective manner possible To fund needed Capital Improvements to the greatest extent possible To present a General Fund operating budget that is balanced with operating revenue estimates Financial Environment The local economic conditions in Fayetteville continued to improve in fiscal 2014 but at a slower pace than 2013. City sales taxes are up approximately 1 .4% compared to prior year through the end of the third quarter of fiscal 2014. We have also seen continuing activity in large scale development as the University of Arkansas expands student enrollment. Unemployment is at 4.1%, which does compare favorably to the rest of the State and Nation. The worldwide economic problems continue to exist. For these reasons, this budget has been formulated on conservative revenue and expenditure estimates. However, I am presenting a balanced budget for the General Fund. For 2015, we have forecasted revenue sources to be equal to 2014 projections except for sales tax for which we estimate a 2.0% increase over expected collections. The budget continues to have authorized positions unfunded (frozen). Many of the cuts made during previous years will remain in force. I have not included a salary increase in my proposed budget. At the close of the 2014 fiscal year, I intend to analyze the City's financial position and if at all possible recommend a salary package for employees to the Council as well as an additional step for fire personnel. Conclusion This budget is based on realistic revenue and expenditure estimates. I believe that it continues to provide for the best possible level of services while still guarding against possible weakening economic conditions. 2014 has been a very busy year for the City. With your continued support we have accomplished many things. With the combined efforts of this Administration and City Council support, I am confident that we will again meet the challenges facing the City while continuing to provide our citizens superior service levels. Lioneld Jordan, Mayor November 4, 2014 Mayor Lioneld Jordan, Members of the City Council and Citizens of Fayetteville: The budget being presented is a 2015 operating budget. It does not include re- budgets that represent programs approved and appropriated in prior years which as of the end of fiscal 2014 remain uncompleted. Re-budgets also include amounts generated by previous bond issues in the Capital Project Funds which remain unspent as of December 31, 2014. Total rebudgets are likely to be $60,000,000 or more. These re-budgets will be presented for addition to the 2015 operating budget early in the first quarter of 2015. In 2014, City and County Sales Taxes increased compared to 2013. By year end, total sales taxes are expected to be approximately 2.04% over prior year. Residential and commercial building has begun to increase but fees associated with permitting and construction will still be below 2013 levels and will probably level off in 2015. Water and Sewer revenue collections have decreased in fiscal 2014 compared to 2013 due to normal weather conditions during the summer months. Water and Sewer revenues should approximate 2013 amount in 2015. Fuel and rent revenues at the airport are over 2013 collections. Revenue projections for HMR tax collections are estimated to be over 2013 actuals. Other fund operations are relatively stable when compared to the prior year. The 2015 General Fund budget represents a net expenditure increase from 2014 budget of $706,000 (see page VII for details). This was due to required increases due to pension obligations, insurance increases, maintenance contracts, utilities and telephone, and vehicle replacement charges. Salary increases were also approved in 2014. For 2015, the General Fund budget has been formulated on the assumption that revenues in 2015 will be slightly lower compared to current 2014 estimates except for a 2% increase in sales taxes (compared to 2014 estimates) which has been incorporated in the revenue estimates. 2015 PROPOSED BUDGET EXECUTIVE SUMMARY This budget is formulated with the Enterprise Funds being budgeted on an accrual basis except for depreciation, which is not included in the budget, and both capital expenditures and bond principal payments which are included in the expenditure budgets. Governmental funds are budgeted on the modified accrual basis. The total budget allocated by expenditure category is displayed in the following table. Summary of Fund Expenditures by Category (In Dollars) 2015 Adopted Adopted Change In %of Total 2014 2015 Dollars Budget Category Personnel Services $ 46,901,669 $ 47,771,036 $ 869,367 33.0% Materials &Supplies 5,459,483 5,556,478 96,995 3.8% Services & Charges 18,442,219 18,569,657 127,438 12.8% Maintenance 4,286,397 4,102,102 (184,295) 2.8% Fuel 3,617,698 4,562,067 944,369 3.1% Internal Charges 5,043,244 5,377,269 334,025 3.7% Purchased Water 6,600,000 6,600,000 0 4.5% WWTP Operations 8,537,994 8,999,209 461,215 6.2% Total Operating Expenses 98,888,704 101,537,818 2,649,114 69.9% Transfers Out 1,433,000 1,433,000 0 1.0% Debt Service 21,716,596 21,533,182 (183,414) 14.8% Capital 13,561,700 20,701,000 7,139,300 14.3% Total Expenses $ 135,600,000 $ 145,205,000 $ 9,605,000 100.0% The 2015 Proposed Budget is $145,205,000 million. This is an increase when compared to 2014 of $9,605,000 or 6.6%. Some of that increase is due to changes in operating costs primarily personnel costs associated with salary, pension, and insurance increases. However, the primary cause of the increase is due to the expansion of the capital improvement program.