HomeMy WebLinkAbout216-06 RESOLUTIONRESOLUTION NO. 216-06
A RESOLUTION ADOPTING THE 2007 ANNUAL BUDGET AND
WORK PROGRAM AS APPROVED AND AMENDED.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby adopts the 2007 Annual Budget & Work Program as approved and
amended. A copy of the Amended Budget, marked Exhibit "A" is attached
hereto and made a part hereof. ,.%`ti%%%%%%
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SONDRA SMITH, City Clerk/Treasurer
PASSED and APPROVED this 19th day of December, 2006.
APPRO ATTEST:
By:
DAN COODY, Mayor
City of Fayetteville, Arkansas
2007 Annual Budget
and
Work Program
City Council and Other Elected Officials
Robert Reynolds, Ward 1 - Position 1
Brenda Thiel, Ward 1 - Position 2
Kyle Cook, Ward 2 - Position 1
Nancy Allen, Ward 2 - Position 2
Robert Rhoads, Ward 3 Position 1
Bobby Ferrell, Ward 3 - Position 2
Shirley Lucas, Ward 4 - Position 1
Lioneld Jordan, Ward 4 - Position 2
Kit Williams, City Attorney
Sondra Smith, City Clerk/Treasurer
Rudy Moore, District Judge
Submitted by
Dan Coody, Mayor
Ray Boudreaux, Aviation & Economic Development Director
Louise Schaper, Library Director
Gary Dumas, Operations Director
Paul A. Becker, Finance Director
Greg Tabor, Police Chief
Tony Johnson, Fire Chief
Prepared by
Kevin Springer, Budget Manager
Barbara Fell, Senior Research Analyst
Stacey Kirk, Financial Analyst
Liz Hutchens, Budget Analyst
GD
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
PRESENTED TO
City of Fayetteville
Arkansas
For the Fiscal Year Beginning
January 1, 2006
Mfr. aessies_,.
President Executive Director
The Government Finance Officers Association of the United States and Canada
(GFOA) presented an award of Distinguished Budget Presentation to the City of
Fayetteville, Arkansas for its annual budget for the fiscal year beginning January
1, 2006.
In order to receive this award, a governmental unit must publish a budget
document that meets program criteria as a policy document, as an operations
guide, as a financial plan, and as a communications device.
The award is valid for a period of one year only. We believe our current budget
continues to conform to program requirements and we are submitting it to GFOA
to determine its eligibility for another award.
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.
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City of Fayetteville, Arkansas
Table of Contents
Budget Message:
Transmittal Memo from the Mayor to Council I-IV
2007 Proposed Budget Executive Summary V -XI
Budget Resolution XII
Community Overview XIII -XV
Miscellaneous Statistical Data XVI -XVII
Management Agenda:
Management Agenda introduction
2007 Management Agenda - Summary 2-6
Budget Process and Policies:
Budget Process 7-8
Budget Flowchart 9
Financial Policies:
Revenue Policy 10
Expenditure Policy 10-11
Debt Policy 11
Reserve Policy 11
Investment and Cash Management Policy 11-12
Capital Improvement Policy 12
Financial Reporting Policy 12
Administrative Procedures to Adjust the Approved Budget 13-15
Budget Organizational Structure 16
Consolidated Fund - Department - Program Structure 17
Fund Summaries:
Chart of Fund Types - Governmental 19
Combined Statement of Fund Position - Governmental (Shown by Department) 20
Chart of Fund Types - Proprietary & Fiduciary 21
Combined Statement of Fund Position - Proprietary & Fiduciary (Shown by Department) 22
Sources and Uses of Funds 23
Multi -Year Comparison - Adopted Budget Expenditures 24
Governmental Funds
General Fund:
Fund Description 26-31
Revenue & Expenditure Summary 32-33
General Fund Expenditures 34-36
Special Revenue Funds
Street Fund:
Fund Description 37-38
Revenue & Expenditure Summary 39
City Advertising & Promotion Fund:
Fund Description 40
Revenue & Expenditure Summary 41
City of Fayetteville, Arkansas
Table of Contents (continued)
Off Street Parking Fund:
Fund Description 42
Revenue & Expenditure Summary 43
Community Development Block Grant Fund:
Fund Description 44
Revenue & Expenditure Summary 45
Parks Development Fund:
Fund Description 46
Revenue & Expenditure Summary 47
Impact Fee Fund:
Fund Description 48
Revenue & Expenditure Summary 49
Drug Law Enforcement Fund:
Fund Description 50
Revenue & Expenditure Summary 51
Debt Service Funds
Arts Center Bond Fund:
Fund Description 52
Revenue & Expenditure Summary 53
Fire Bond Fund:
Fund Description 54
Revenue & Expenditure Summary 55
TIF Bond Fund:
Fund Description 56
Revenue & Expenditure Summary 57
Wastewater Improvements Sales Tax Bond Fund:
Fund Description 58
Revenue & Expenditure Summary 59
Capital Projects Funds
Library Constriction Fund:
Fund Description 60
Revenue & Expenditure Summary 61
Replacement & Disaster Recovery Fund:
Fund Description 62
Revenue & Expenditure Summary 63
Sales Tax Capital Improvements Fund:
Fund Description 64
Revenue & Expenditure Summary 65
Capital Project Detail 66-67
Wastewater System Improvements Project Fund:
Fund Description 68
Revenue & Expenditure Summary 69
TIF Capital Improvements Fund:
Fund Description 70
Revenue & Expenditure Summary 71
•
City of Fayetteville, Arkansas
Table of Contents
Enterprise Funds
Water & Sewer Fund:
Fund Description 73-75
Revenue & Expenditure Summary - Cash Basis 76
Revenue & Expenditure Summary - Accrual Basis 77
Solid Waste Fund:
Fund Description 78-79
Revenue & Expenditure Summary - Cash Basis 80
Revenue & Expenditure Summary - Accrual Basis 81
Airport Fund:
Fund Description 82-83
Revenue & Expenditure Summary - Cash Basis 84
Revenue & Expenditure Summary - Accmal Basis 85
Town Center and Parking Facility Fund:
Fund Description 86
Revenue & Expenditure Summary 87
Continuing Education Center and Parking Facility Fund:
Fund Description 88
Revenue & Expenditure Summary 89
Trust Funds
Police Pension Fund:
Fund Description 90
Revenue & Expenditure Summary 91
Fire Pension Fund:
Fund Description 92
Revenue & Expenditure Summary 93
Internal Service Funds
Shop Fund:
Fund Description 94
Revenue & Expenditure Summary - Cash Basis 95
Revenue & Expenditure Summary - Accrual Basis 96
Budget by Activity:
Summary of Activities 97
Airport Activity 98
Community Planning & Engineering Services Activity 99
Debt Service Activity 100
Finance & Internal Services Activity 101
Fire Activity 102
General Government Activity 103
Library Activity 104
Parks & Recreation Activity 105
Police, Courts, & Prosecutor Activity 106
Solid Waste Activity 107
Transportation & Parking Activity 108
Water & Wastewater Activity 109
Unallocated Activity 110
Schedule of Funding Sources by Department 111-113
City of Fayetteville, Arkansas
Table of Contents (continued)
General Government:
Organizational Structure 115
Overview 116
Program Expenditure Summary 117-120
Personnel Summary 121-122
Mayor's Administration 123
City Council 124
City Attorney 125
City Prosecutor 126
District Court - District Judge 127
Aviation & Economic Development - Economic Development 128
Public Information 129
130
131
132
133
134
135
136
Cable Administration
Internal Audit
City Clerk/Treasurer
District Court - Criminal Cases
District Court - Probation & Fine Collection
District Court - Small Claims & Civil Cases
Library
Miscellaneous
2005 Special Census
Aviation & Economic Development - Airport Administration
Aviation & Economic Development - Airport Maintenance
Aviation & Economic Development - Airport Operations
Aviation & Economic Development - Airport Capital Expenditures
137
138
139
140
141
142
Operations:
Organizational Structure 143
Overview 144
Program Expenditure Summary 145-154
Personnel Summary 155-160
Operations Director 161
Human Resources 162
Parking & Telecommunications - Utilities Management 163
Building Services - General Maintenance 164
Building Services - Janitorial 165
Parks & Recreation - Swimming Pool 166
Parks & Recreation - Administration/Recreation Programs 167
Parks & Recreation - Lake Maintenance 168
Parks & Recreation - Parks Maintenance 169
Operations Director - Yvonne Richardson Community Center 170
Parking & Telecommunications - Parking Management 171
Planning & Development Management 172
Engineering - Engineering Design Services I73
Engineering - Operations & Administration 174
Engineering - Right -of -Way Acquisition 175
Engineering - Public Construction 176
City of Fayetteville, Arkansas
Table of Contents (continued)
Current Planning 177
Planning Commission 178
Planning & Development Management - Long Range Planning 179
Building Safety 180
Community Resources - Community Code Enforcement 181
Transportation - Operations & Administration I82
Transportation - Right -of -Way Maintenance 183
Transportation - Street Maintenance 184
Transportation - Drainage Maintenance 185
Transportation - Traffic Control & Maintenance 186
Transportation - Street & Trail Construction 187
Transportation - Sidewalks 188
Parking & Telecommunications - Off -Street Parking 189
Community Resources - Administration & Planning 190
Community Resources - Housing Services 191
Community Resources - Redevelopment 192
Community Resources - Public Services 193
Community Resources - Public Facilities & Improvements 194
Parks & Recreation - Parks Development 195
Parks & Recreation - Parks Development Capital 196
Water & Wastewater Director 197
Water & Sewer Maintenance - Meter Reading 198
Water & Sewer Maintenance - Meter Maintenance & Backflow Prevention 199
Water & Sewer Maintenance - Meter Operations Capital 200
Water & Sewer Maintenance - Water Purchased 201
Water & Sewer Maintenance - Operations & Administration 202
Water & Sewer Maintenance - WSIP Project Management 203
Water & Sewer Maintenance - Water Distribution Maintenance 204
Water & Sewer Maintenance - Water Storage & Pump Maintenance 205
Water & Sewer Maintenance - Sewer Mains Maintenance 206
Wastewater Treatment Plant - Operations 207
Water & Sewer Maintenance - Capital Water Mains 208
Water & Sewer Maintenance - Capital Expenditures 209
Water & Sewer Maintenance - Water & Sewer Connections 210
Water & Sewer Maintenance - Sewer Mains Construction 211
Wastewater Treatment Plant - Capital 212
Water & Sewer Maintenance - Debt Service 213
Solid Waste & Recycling - Operations & Administration 214
Solid Waste & Recycling - Commercial Collections 215
Solid Waste & Recycling - Residential Collections 216
Solid Waste & Recycling - Commercial Drop Box Collections 217
Solid Waste & Recycling - Recycling 218
Solid Waste & Recycling - Composting 219
Fleet Operations - Vehicle Maintenance 220
Fleet Operations - Capital Expenditures 221
City of Fayetteville, Arkansas
Table of Contents (continued)
Finance:
•
Organizational Structure 223
Overview 224
Program Expenditure Smnmary 225
Personnel Summary 226-227
Finance Director 228
Accounting & Audit 229
Budget & Research 230
Purchasing 23I
Information Technology 232
Billing & Collections 233
Police Department:
Organizational Structure 235
Overview 236
Program Expenditure Summary 237-238
Personnel Summary 239
Central Dispatch 240
Animal Services - Patrol/Emergency Response 241
Animal Services - Animal Shelter 242
Animal Services - Veterinarian/Clinic 243
Police - Support Services 244
Police - Patrol 245
Police - Drug Enforcement 246
Fire Department:
Organizational Structure 247
Overview 248
Program Expenditure Summary 249
Personnel Summary 250
Fire - Prevention 251
Fire - Operations 252
Fire - Training 253
Capital and Debt:
Capital Improvements Program Introduction 255-258
Capital Improvements Program Directional Information 259-261
Capital Project Rating Criteria and Scoring Worksheet 262-263
Impact on Operations Cost 264-267
Summary of Project Requests & Project Resources 268
Capital Improvement Projects by Project Area - All Sources 269
Sales Tax Capital Improvements Funding - By Project Category 270
Capital Improvements Program Comprehensive Detail 271-274
2007 Capital Budget 275-284
Debt Position 285
Description of Outstanding Bonds 286-287
City of Fayetteville, Arkansas
Table of Contents (continued)
Schedule of Bonds Outstanding 288
Debt Service Payment Schedule 289
Legal Debt Margin Computation 290
Debt to Maturity Schedule 291
Appendix:
City of Fayetteville Organizational Chart 293
List of Elected Officials, Administrative Officials, & Management Staff 294
Personnel Summary 295
Personnel Variation Summary 296-298
Acronyms 299-300
Glossary 301-306
Index 307-311
CITY OF FAYETTEVILLE, ARKANSAS
THE BUDGET DOCUMENT
The City of Fayetteville's budget document is a eight -part presentation consisting of the
following sections:
Budget Message
Management Agenda
Budget Process and Policies
Fund Summaries
Budget by Activity
Department Summaries
Capital and Debt
Appendix
Budget Message
This section begins with a brief review setting forth the budgetary plan and objectives, as
proposed by the Mayor, for 2007. The budget message section gives the reader the synopsis of
the work program for the City in the next year and provides a guide to the budget document.
Management Agenda
This section begins with a brief introduction of the City of Fayetteville's guiding principles and
goals. The management agenda lists for the reader the City's priorities in relationship to the
goals, a time frame for completion, and the workforce responsible for implementation.
Budget Process and Policies
The budget process and policies section gives the reader procedural insight into the preparation
of the Proposed 2007 Budget and Work Program and financial policies for the City. These
policies include: Budget Adjustment Policy, Revenue Policy, Expenditure Policy, Debt Policy,
Reserve Policy, Investment and Cash Management Policy, Capital Improvement Policy, and
Financial Reporting Policy.
Fund Summaries
The Fund Summaries section contains information concerning fund types and fund position that
depicts the financial activity projected for the City during the coming year for each fund.
Budget by Activity
This section provides the reader with a budget format by activity instead of by division.
Department Summaries
This section consists of the five major departments: General Government, Operations, Finance,
Police, and Fire. The Department Summaries section contains the following:
(1) Department Overview - This section provides a brief summary of total expenditures and
significant changes for each department.
(2) Division Expenditure Summaries - This section reflects expenditures by program in a
Department for Actual 2005, Budgeted 2006, Estimated 2006, and Budgeted 2007.
(3) Division Summaries - This section provides a comparison of program expenditures and
staffing levels during the past four years for each division.
Capital and Debt
This section contains a synopsis of the 2006-2010 Capital Improvements Program and planned
capital expenditures for 2007.
Appendix
The Appendix contains a City organization chart, a list of elected City officials, City
management staff, a personnel variation summary for all City departments, a glossary, and an
index. The glossary provides definitions of frequently used budgeting and accounting terms.
The index cross-references the budget document by division or activity/program.
lalettgle
THE CITY OF FAYETTEVILLE, ARKANSAS
December 19, 2006
Members of City Council and
Citizens of Fayetteville
1 am pleased to submit my Adopted Budget for 2007 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 for 2007 including
2007 capital projects set forth in the 2006-2010 Capital Improvements Program.
This Administration will continue to address the priorities that have been identified by the Strategic
Goal setting process as well as by the results of the 2005 Citizens' Survey. Each Department will be
focusing upon key action item(s) to facilitate attaining these goals while continuing to produce high
quality municipal services in a cost efficient and cost effective manner.
2007 Budgetary Goals
Some of my budgetary goals for 2007 are:
• To produce a balanced budget for the General Fund which includes a provision for
implementation of the compensation study plan over a two year period
• To limit the use of reserves to needed capital purchases within all other funds
• To continue implementing capital improvetnents as f coding is available
• To initiate a program to reduce future energy consumption which will result in short term
and long term cost savings
• To continue to provide community services which are responsive to the needs of the citizens
• To continue to provide quality municipal govermnent at the most reasonable cost possible
The focus of the City of Fayetteville's Adopted 2007 Budget is directed toward continued
implementation of the Goals 2008 statement developed from the Strategic Plan and the 2004
Strategic Retreat. This budget was developed to build on philosophies of enhanced customer
relations, cost-effective public service, and responsive forward -thinking government. With the
continued focus of the City Council, the Citizens of Fayetteville, and Staff, a number of projects,
programs, and initiatives will be accomplished.
113 WEST MOUNTAIN 72701 479-521-7700
FAX 479-575-8257
All budget discussions need to occur in the context of our revenue stream. Fayetteville has made
progress in stabilizing our revenue stream during 2006.
• The City Council approved a cost of services policy that provides guidance to Staff for the
adjustment of user fees. City Council implemented police and fire impact fees for facilities
and equipment, authorized a contract to update our impact fees for water and wastewater,
and is considering implementation of impact fees for street improvements.
• City Council approved a consulting contract that has proved effective in Fayetteville's ability
to obtain federal grants for critical capital needs. This program resulted in significant federal
funds for transportation improvements and sewer collection system rehabilitation. This
budget contains funding to continue this effort.
• City Council also approved funding for a special census in 2005. The results of the special
census were received in September 2006 and will provide significant additional operational
revenue in the form of state tumback.
• A 1.3 millage was enacted for the 2006 Budget and will be continued in 2007 to enable the
City to provide needed services. We arc the lowest property taxing entity in Northwest
Arkansas and one of the lowest in the State.
2006 Financial Highlights
The following financial events, which occurred in 2006, have a direct impact on the fiscal 2007
budget.
2006 Bond Referendum
In September 2006, the voters of Fayetteville approved, by referendum, an additional '/a cent
sales tax and the extension of a 3/4 cent existing sales tax which will provide for the issuance of
bonds not to exceed $1 10,000,000 as follows:
Wastewater System Improvements
Street Improvements
Trail Improvements
$ 42,000,000
$ 65,900,000
$ 2,100,000
This will provide funding for the completion of the Wastewater System Improvement Project
and also provide for Phase I of the Transportation Improvement Plan. In addition to these
infrastructure programs, $2,100,000 is provided for trail construction.
Local Government Bond Issue
In July of 2006, $3,570,000 in Amendment #78 bonds were issued for the relocation of Fire
Station #5 and the construction of Fire Station #3.
11
Public Safety Impact Fees
During 2006, the full effect of the newly instituted public safety impact fees were realized. This
will result in an estimated $315,000 in revenue for 2006.
Major Federal Grants
Water & Sewer Fund - During 2006, a federal STAG grant was received for the 2006/2007
fiscal year in the amount of 5469,000. This award will be used for Sewer System
Rehabilitation.
Fire Department - The Fayetteville Fire Department applied for and received an award of
S283 360 for the purchase and implementation of a Fire/EMS Information System grant.
Guiding Principles
Goals have been established by the Administration and City Council for 2008. This budget was
developed within the framework of the defined Guiding Principles for the City. Certain principles
are specifically addressed.
Principle: Maintain Reputation as a "Safe Community"
Fire Station #3 is being constructed on property owned by the City at 1851 East Huntsville Road.
This station will serve South and Southeast Fayetteville. Fire Station #5 is being relocated to Old
Missouri Road at Highway 265 (Routh Park).
The 2007 budget contains funding to construct both fire stations and fund an apparatus for Fire
Station #3. An additional four (4) fire fighter positions will be added in early 2007 to complete
staffing needs. No additional staffing will be needed due to relocating Fire Station #5.
The Sales Tax Capital Improvements Fund contains funds from the Amendment 78 bond issue to
pay for the construction of the fire stations and for equipping Fire Station #3.
Principle: Well -Maintained City Infrastructure and Facilities
The final budget will include capital budgets for $50,788,400 in Sales and Use Tax Capital
Improvement Bonds issued in the fourth quarter of 2006. This issue reflects the first portion of the
bonds approved by the 2006 referendum. This initial issue is estimated to generate funds as follows:
Wastewater System Improvements Project
Street Projects
Trail Projects
111
S 25,394,200
S 24,581,600
$ 812,600
Principle: A Financially Sustainable City Government Providing Top-quality Responsive Services
The scope of the overall budget is predicated on addressing this principle. The General Fund is
developed to be balanced on a current revenue to current expenditure basis and is designed to
provide delivery of services at a sustainable level in view of available revenues. The non -general
fund's budgets have been developed to ensure current operating costs are accommodated by current
revenues. Fund balances or retained earnings are used to finance capital needs when necessary.
The only fund in which current operating costs exceed operating revenues is the Airport Fund and
this disparity has been reduced in 2006 and 2007 as compared to prior years.
Conclusion
The City s annual budget is the authorization to fund operation and capital improvements and is the
primary financial plan for the City. The City must continue to make operational adjustments to
provide superior municipal services for our Citizens. This would not be possible without the hard
work of an excellent Staff and the continued involvement of each member of the City Council.
The City's accomplishments and our future plans require that this City Council and Administration
make informed decisions on the allocation of available resources to deliver the necessary services to
our Citizens. The primary purpose the City collects taxes, fees, and other revenue is to provide these
services. There are numerous policy decisions that City Council must make over the coming year
that will determine, in part, how our City will fare in the future.
Through the combined efforts of this Administration and City Council, 1 am confident we can
continue to meet the challenges facing the City. We will continue to keep Fayetteville one of the
most attractive cities in the United States to work and live.
Dan Coody, Mayor
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THE CITY OF FAYETTEVILLE, ARKANSAS
December 19, 2006
Mayor Dan Coody, Members of the City Council and
Citizens of Fayetteville:
The purpose of this section of the 2007 Adopted Budget is to provide a general overview of the
budget in total, as well as an overview of the major funds. The current adopted budget does not
include rebudgets which will be added in February 2007. The impact of the S50 million 2006 bond
issue is also absent from the total budget, as the bond sale will not be finalized until late November
2006. Therefore, the capital project fund for this issue will not be created until the bond issue has
been completed.
2007 ADOPTED BUDGET EXECUTIVE SUMMARY
The 2007 Adopted Budget includes approximately S129 million in expenditures. This can be
allocated by category as displayed in the following table:
Summary of Fund Expenditures (In Dollars)
Category
Personnel
Materials & Supplies
Services & Charges
Maintenance
Internal Charges
Purchased Water
W.W.T.P. Operations
Total Operating Expenses
Transfers
Debt Service
Capital
Depreciation
Total Expenses
Adopted 2006 Adopted 2007 % Change
S 38,413,063
5,678,767
16,81 1,499
1,210,307
4,138,848
6,300,000
5,043,593
S 41,799,464
5,853,480
16,879,588
1,225,334
4,234,590
6,500,000
5,917,521
77,596,077 82,409,977
1,71 1,383
10,607,006
17,959,520
10,325,518
3,512,635
18,322,864
16,281,475
8,894,660
S 118,199,504 S
V
129,421,611
8.82%
3.08%
0.41%
1.24%
2.31%
3.17%
17.33%
6.20%
105.25%
72.74%
-9.34%
-13.86%
9.49%
Summary of Fund Expenditures (% of Total Budget)
Category
Adopted 2006 Adopted 2007 % Change
Personnel 32.6% 32.3% -0.92%
Materials & Supplies 4.8% 4.5% -6.25%
Services & Charges 14.2% 13.0% -8.45%
Maintenance L0% 0.9% -10.00%
Internal Charges 3.5% 3.3% -5.71%
Purchased Water 5.3% 5.0% -5.66%
W.W.T.P. Operations 4.3% 4.6% 6.98%
Total Operating Expenses 65.7%
63.6% -3.20%
Transfers 1.4% 2.7% 92.86%
Debt Service 9.0% 14.2% 57.78%
Capital 15.2% 12.6% -17.11%
Depreciation 8.7% 6.9% -20.69%
Total Expenses 100.0% 100.0% 0.00%
The 2007 adopted budget is in excess of $129 million. This is an increase of approximately $11.2
million when compared to the Adopted 2006 Annual Budget & Work Program, or a 9.5% increase.
The majority of the increase in expenditures can be attributed to an increase in Debt Service ($7.7
million) due to the Transportation Bonds issued in 2006, increased Personnel Expenses due to on-
going raises ($3,386,401), and an increase in the operational contract of the Wastewater Treatment
Plant ($874,000).
It should be noted that total percentage of budget spent on personnel and debt service categories are
increasing in 2007 as compared to 2006.
All City funds arc budgeted to comply with the City's policy of maintaining a minimum of 10% of
budgeted operating expenditures in unrestricted fund balance or cash and investments with the
exception of General Fund, which must maintain a minimum reserve or sixty (60) days of annual
regular general fund operating expenditures, which is calculated to be $5.057 million.
Overview of City's Major Funds:
General Fund is the major operating fund of the City. The general fund is comprised of activities
not accounted for specifically in other funds. The adopted budget balances current revenues to
current expenditures.
VI